[DOCID: f:publ375.108]

[[Page 118 STAT. 1811]]

Public Law 108-375
108th Congress

                                 An Act


 
To authorize appropriations for fiscal year 2005 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
        for such fiscal year for the Armed Forces, and for other 
            purposes. <<NOTE: Oct. 28, 2004 -  [H.R. 4200]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005.>> 

SECTION 1. SHORT TITLE.

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

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

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

Sec. 131. Prohibition of retirement of KC-135E aircraft.

[[Page 118 STAT. 1812]]

Sec. 132. Prohibition of retirement of F-117 aircraft.
Sec. 133. Aerial refueling aircraft acquisition program.

                        Subtitle E--Other Matters

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Missile Defense Programs

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

                        Subtitle D--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Simplification of annual reporting requirements concerning 
           funds expended for depot maintenance and repair workloads.

[[Page 118 STAT. 1813]]

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

                   Subtitle D--Information Technology

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

              Subtitle E--Extensions of Program Authorities

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

                        Subtitle F--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Transition of active-duty list officer force to a force of all 
           regular officers.
Sec. 502. Repeal of requirement that Deputy Chiefs and Assistant Chiefs 
           of Naval Operations be selected from officers in the line of 
           the Navy.
Sec. 503. Limitation on number of officers frocked to major general and 
           rear admiral.

[[Page 118 STAT. 1814]]

Sec. 504. Distribution in grade of Marine Corps reserve officers in an 
           active status in grades below brigadier general
Sec. 505. Authority for Federal recognition of National Guard 
           commissioned officers appointed from former Coast Guard 
           personnel.
Sec. 506. Study regarding promotion eligibility of retired officers 
           recalled to active duty.
Sec. 507. Succession for office of Chief, National Guard Bureau.
Sec. 508. Redesignation of Vice Chief of the National Guard Bureau as 
           Director of the Joint Staff of the National Guard Bureau.

              Subtitle B--Reserve Component Policy Matters

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

             Subtitle C--Reserve Component Personnel Matters

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

Subtitle D--Joint Officer Management and Professional Military Education

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

                 Subtitle E--Military Service Academies

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

            Subtitle F--Other Education and Training Matters

Sec. 551. College First delayed enlistment program.

[[Page 118 STAT. 1815]]

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

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

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

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

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

                       Subtitle I--Military Voting

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

                  Subtitle J--Military Justice Matters

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

             Subtitle K--Sexual Assault in the Armed Forces

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

            Subtitle L--Management and Administrative Matters

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

[[Page 118 STAT. 1816]]

                        Subtitle M--Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Computation of high-36 month average for reserve component 
           members retired for disability while on active duty or dying 
           while on active duty.

[[Page 118 STAT. 1817]]

Sec. 642. Repeal of phase-in of concurrent receipt of retired pay and 
           veterans' disability compensation for military retirees with 
           service-connected disabilities rated as 100 percent.
Sec. 643. Death benefits enhancement.
Sec. 644. Phased elimination of two-tier annuity computation for 
           surviving spouses under Survivor Benefit Plan.
Sec. 645. One-year open enrollment period for Survivor Benefit Plan 
           commencing October 1, 2005.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

            Subtitle C--Planning, Programming, and Management

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

[[Page 118 STAT. 1818]]

Sec. 727. TRICARE program regional directors.

     Subtitle D--Medical Readiness Tracking and Health Surveillance

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

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

              Subtitle A--Acquisition Policy and Management

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

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

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

      Subtitle C--United States Defense Industrial Base Provisions

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

         Subtitle D--Extensions of Temporary Program Authorities

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

[[Page 118 STAT. 1819]]

                  Subtitle E--Other Acquisition Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

        Subtitle A--Duties and Functions of Department of Defense

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

                      Subtitle B--Space Activities

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

                Subtitle C--Intelligence-Related Matters

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

                        Subtitle D--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                     Subtitle C--Counterdrug Matters

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

       Subtitle D--Matters Relating to Museums and Commemorations

Sec. 1031. Recognition of the Liberty Memorial Museum, Kansas City, 
           Missouri, as America's National World War I Museum.

[[Page 118 STAT. 1820]]

Sec. 1032. Program to commemorate 60th anniversary of World War II.
Sec. 1033. Annual report on Department of Defense operation and 
           financial support for military museums.

                           Subtitle E--Reports

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

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

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

                 Subtitle G--Personnel Security Matters

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

               Subtitle H--Transportation-Related Matters

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

                        Subtitle I--Other Matters

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Payment of Federal employee health benefit premiums for 
           mobilized Federal employees.

[[Page 118 STAT. 1821]]

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

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

                Subtitle B--Counterproliferation Matters

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

                        Subtitle C--Other Matters

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

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

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

                    TITLE XIV--SUNKEN MILITARY CRAFT

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

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

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Defense-wide activities procurement.

[[Page 118 STAT. 1822]]

Sec. 1505. Operation and maintenance.
Sec. 1506. Defense working capital funds.
Sec. 1507. Iraq Freedom Fund.
Sec. 1508. Defense health program.
Sec. 1509. Military personnel.
Sec. 1510. Treatment as additional authorizations.
Sec. 1511. Transfer authority.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
           2004 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
           2003 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.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Modification of approval and notice requirements for facility 
           repair projects.
Sec. 2802. Reporting requirements regarding military family housing 
           requirements for general officers and flag officers.
Sec. 2803. Congressional notification of deviations from authorized cost 
           variations for military construction projects and military 
           family housing projects.
Sec. 2804. Assessment of vulnerability of military installations to 
           terrorist attack and annual report on military construction 
           requirements related to antiterrorism and force protection.

[[Page 118 STAT. 1823]]

Sec. 2805. Repeal of limitations on use of alternative authority for 
           acquisition and improvement of military housing.
Sec. 2806. Additional reporting requirements relating to alternative 
           authority for acquisition and improvement of military 
           housing.
Sec. 2807. Temporary authority to accelerate design efforts for military 
           construction projects carried out using design-build 
           selection procedures.
Sec. 2808. Notification thresholds and requirements for expenditures or 
           contributions for acquisition of facilities for reserve 
           components.
Sec. 2809. Authority to exchange reserve component facilities to acquire 
           replacement facilities.
Sec. 2810. One-year extension of temporary, limited authority to use 
           operation and maintenance funds for construction projects 
           outside the United States.
Sec. 2811. Consideration of combination of military medical treatment 
           facilities and health care facilities of Department of 
           Veterans Affairs.

         Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

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

[[Page 118 STAT. 1824]]

                        Subtitle E--Other Matters

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

    Subtitle B--Program Authorizations, Restrictions, and Limitations

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

                    Subtitle C--Proliferation Matters

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

                        Subtitle D--Other Matters

Sec. 3141. Indemnification of Department of Energy contractors.
Sec. 3142. Report on maintenance of retirement benefits for certain 
           workers at 2006 closure sites after closure of sites.
Sec. 3143. Report on efforts of National Nuclear Security Administration 
           to understand plutonium aging.
Sec. 3144. Support for public education in the vicinity of Los Alamos 
           National Laboratory, New Mexico.
Sec. 3145. Review of Waste Isolation Pilot Plant, New Mexico, pursuant 
           to competitive contract.
Sec. 3146. National Academy of Sciences study on management by 
           Department of Energy of certain radioactive waste streams.

[[Page 118 STAT. 1825]]

Sec. 3147. Compensation of Pajarito Plateau, New Mexico, homesteaders 
           for acquisition of lands for Manhattan Project in World War 
           II.
Sec. 3148. Modification of requirements relating to conveyances and 
           transfer of certain land at Los Alamos National Laboratory, 
           New Mexico.

 Subtitle E--Energy Employees Occupational Illness Compensation Program

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

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

                 TITLE XXXVI--ASSISTANCE TO FIREFIGHTERS

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for the light weight 155-
           millimeter howitzer program.

[[Page 118 STAT. 1826]]

Sec. 112. Light utility helicopter program.

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 2005 for procurement for the Navy as follows:
            (1) For aircraft, $8,814,442,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,067,520,000.
            (3) For shipbuilding and conversion, $10,116,827,000.
            (4) For other procurement, $4,633,886,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2005 for procurement for the Marine Corps in the amount 
of $1,268,453,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2005 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $878,140,000.

SEC. 103. AIR FORCE.

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

[[Page 118 STAT. 1827]]

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

                        Subtitle B--Army Programs

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

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

SEC. 112. LIGHT UTILITY HELICOPTER PROGRAM.

    (a) Limitation.--None of the funds authorized to be appropriated 
under section 101(1) for the procurement of light utility helicopters 
may be obligated or expended until 30 days after the date on which the 
Secretary of the Army submits to the congressional defense committees a 
report that contains--
            (1) the Secretary's certification that all required 
        documentation for the acquisition of light utility helicopters 
        has been completed and approved; and
            (2) an Army aviation modernization plan described in 
        subsection (b).

    (b) Army Aviation Modernization Plan.--The Army aviation 
modernization plan referred to in subsection (a)(2) is an updated 
modernization plan for Army aviation that contains, at a minimum, the 
following:
            (1) The analysis on which the plan is based.
            (2) A discussion of the Secretary's decision to terminate 
        the Comanche helicopter program and to restructure the aviation 
        force of the Army.
            (3) The actions taken or to be taken to accelerate the 
        procurement and development of aircraft survivability equipment 
        for Army aircraft, together with a detailed list of aircraft 
        survivability equipment that specifies such equipment by 
        platform and by the related programmatic funding for 
        procurement.
            (4) A discussion of the conversion of Apache helicopters to 
        block III configuration, including (A) the rationale for 
        converting only 501 Apache helicopters to that configuration, 
        and (B) the costs associated with a conversion of all Apache 
        helicopters to the block III configuration.
            (5) A discussion of the procurement of light armed 
        reconnaissance helicopters, including (A) the rationale for the 
        requirement for light armed reconnaissance helicopters, and (B) 
        a discussion of the costs associated with upgrading the light 
        armed reconnaissance helicopter to meet Army requirements.
            (6) The rationale for the Army's requirement for light 
        utility helicopters, together with a summary and copy of the 
        analysis of the alternative means for meeting such requirement 
        that the Secretary considered in the determination to procure 
        light utility helicopters, including, at a minimum, the analysis 
        of the alternative of using light armed reconnaissance 
        helicopters

[[Page 118 STAT. 1828]]

        and UH-60 Black Hawk helicopters instead of light utility 
        helicopters to meet such requirement.
            (7) The rationale for the procurement of cargo fixed-wing 
        aircraft.
            (8) The rationale for the initiation of a joint multi-role 
        helicopter program.
            (9) A description of the operational employment of the 
        Army's restructured aviation force.

                        Subtitle C--Navy Programs

SEC. 121. DDG-51 MODERNIZATION PROGRAM.

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

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

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

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

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

                     Subtitle D--Air Force Programs

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

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

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

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

[[Page 118 STAT. 1829]]

SEC. 133. AERIAL REFUELING AIRCRAFT ACQUISITION PROGRAM.

    (a) Termination of Leasing Authority.--Subsection (a) of section 135 
of the National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108-136; 117 Stat. 1413; 10 U.S.C. 2401a note) is amended by 
striking ``may lease no more than 20 tanker aircraft'' and inserting 
``shall lease no tanker aircraft''.
    (b) Multiyear Procurement Authority.--Subsection (b) of such section 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Beginning with the fiscal year 
                2004 program year, the Secretary'' and inserting ``The 
                Secretary''; and
                    (B) by striking ``necessary to meet'' and all that 
                follows through ``is insufficient'';
            (2) in paragraph (2), by striking ``80'' and inserting 
        ``100''; and
            (3) by striking paragraph (4).

    (c) Study.--Subsection (c)(1) of such section is amended by striking 
``leased under the multiyear aircraft lease pilot program or'' in 
subparagraphs (A) and (B).
    (d) Relationship to Previous Law.--Such section is further amended 
by adding at the end the following new subsection:
    ``(f) Relationship to Previous Law.--The multiyear procurement 
authority in subsection (b) may not be executed under section 8159 of 
the Department of Defense Appropriations Act, 2002 (division A of Public 
Law 107-117).''.

                        Subtitle E--Other Matters

SEC. 141. <<NOTE: 10 USC 2302 note.>> DEVELOPMENT OF DEPLOYABLE SYSTEMS 
            TO INCLUDE CONSIDERATION OF FORCE PROTECTION IN ASYMMETRIC 
            THREAT ENVIRONMENTS.

    (a) <<NOTE: Regulations.>> Requirement for Systems Development.--The 
Secretary of Defense shall require that the Department of Defense 
regulations, directives, and guidance governing the acquisition of 
covered systems be revised to require that--
            (1) an assessment of warfighter survivability and of system 
        suitability against asymmetric threats shall be performed as 
        part of the development of system requirements for any such 
        system; and
            (2) requirements for key performance parameters for force 
        protection and survivability shall be included as part of the 
        documentation of system requirements for any such system.

    (b) Covered Systems.--In this section, the term ``covered system'' 
means any of the following systems that is expected to be deployed in an 
asymmetric threat environment:
            (1) Any manned system.
            (2) Any equipment intended to enhance personnel 
        survivability.

    (c) Inapplicability of Development Requirement to Systems Already 
Through Development.--The revisions pursuant subsection (a) to 
Department of Defense regulations, directives, and guidance shall not 
apply to a system that entered low-rate initial production before the 
date of the enactment of this Act.
    (d) Deadline for Policy Revisions.--The revisions required by 
subsection (a) to Department of Defense regulations, directives,

[[Page 118 STAT. 1830]]

and guidance shall be made not later than 120 days after the date of the 
enactment of this Act.

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

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

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

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Future Combat Systems program strategy.
Sec. 212. Collaborative program for research and development of vacuum 
           electronics technologies.
Sec. 213. Annual Comptroller General report on Joint Strike Fighter 
           program.
Sec. 214. Amounts for United States Joint Forces Command to be derived 
           only from Defense-wide amounts.
Sec. 215. Global Positioning System III satellite.

[[Page 118 STAT. 1831]]

Sec. 216. Initiation of concept demonstration of Global Hawk high 
           altitude endurance unmanned aerial vehicle.
Sec. 217. Joint Unmanned Combat Air Systems program.

                  Subtitle C--Missile Defense Programs

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

                        Subtitle D--Other Matters

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

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. FUTURE COMBAT SYSTEMS PROGRAM STRATEGY.

    (a) Program Strategy Required.--The Secretary of the Army shall 
establish and implement a program strategy for the Future Combat Systems 
acquisition program of the Army. The purpose of the program strategy 
shall be to provide an effective, affordable, producible, and 
supportable military capability with a realistic schedule and a robust 
cost estimate.
    (b) Elements of Program Strategy.--The program strategy shall--
            (1) require the release, at the design readiness review, of 
        not less than 90 percent of engineering drawings for the 
        building of prototypes;

[[Page 118 STAT. 1832]]

            (2) require, before facilitating production or contracting 
        for items with long lead times, that an acceptable demonstration 
        be carried out of the performance of the information network, 
        including the performance of the Joint Tactical Radio System and 
        the Warfighter Information Network-Tactical; and
            (3) require, before the initial production decision, that an 
        acceptable demonstration be carried out of the collective 
        capability of each system to meet system-of-systems requirements 
        when integrated with the information network.

    (c) Required Submissions to Congress.--Before convening the 
Milestone B update for the Future Combat Systems acquisition program 
required by the Future Combat Systems acquisition decision memorandum, 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics shall submit to Congress each of the following documents:
            (1) The cost estimate of the Army with respect to the Future 
        Combat Systems program.
            (2) <<NOTE: Reports.>> 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) <<NOTE: Reports.>> 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) <<NOTE: Reports.>> 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) <<NOTE: Deadline.>> Independent Cost Estimate.--The Under 
Secretary of Defense for Acquisition, Technology, and Logistics shall 
submit to Congress not later than March 1, 2005, an independent cost 
estimate, prepared by the cost analysis improvement group of the Office 
of the Secretary of Defense, with respect to the Future Combat Systems 
program.

    (e) Limitation on Funding.--(1) Except as provided in paragraph (2), 
the Secretary of the Army may not obligate, from amounts made available 
for fiscal year 2005, more than $2,200,000,000 for the Future Combat 
Systems acquisition program.
    (2) The limitation in paragraph (1) shall not apply after the 
Secretary of the Army submits to Congress--
            (A) the Secretary's certification that the Secretary has 
        established and implemented the program strategy required by 
        subsection (a); and
            (B) each of the documents specified in subsection (c).

SEC. 212. <<NOTE: 10 USC 2358 note.>> COLLABORATIVE PROGRAM FOR RESEARCH 
            AND DEVELOPMENT OF VACUUM ELECTRONICS TECHNOLOGIES.

    (a) Program Required.--The Secretary of Defense shall establish a 
program for research and development in advanced vacuum electronics to 
meet the requirements of Department of Defense systems.

[[Page 118 STAT. 1833]]

    (b) Description of Program.--The program under subsection (a) shall 
be carried out collaboratively by the Director of Defense Research and 
Engineering, the Secretary of the Navy, the Secretary of the Air Force, 
the Secretary of the Army, and other appropriate elements of the 
Department of Defense. The program shall include the following 
activities:
            (1) Activities needed for development and maturation of 
        advanced vacuum electronics technologies needed to meet the 
        requirements of the Department of Defense.
            (2) Identification of legacy and developmental Department of 
        Defense systems which may make use of advanced vacuum 
        electronics under the program.

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

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

    (a) Annual GAO Review.--The Comptroller General shall conduct an 
annual review of the Joint Strike Fighter aircraft program and shall, 
not later than March 15 of each year, submit to the congressional 
defense committees a report on the results of the most recent review. 
With each such report, the Comptroller General shall submit a 
certification as to whether the Comptroller General has had access to 
sufficient information to enable the Comptroller General to make 
informed judgments on the matters covered by the report.
    (b) Matters to Be Included.--Each report on the Joint Strike Fighter 
aircraft program under subsection (a) shall include the following with 
respect to system development and demonstration under the program:
            (1) The extent to which such system development and 
        demonstration is meeting established goals, including the goals 
        established for performance, cost, and schedule.
            (2) The plan for such system development and demonstration 
        (leading to production) for the fiscal year that begins in the 
        year in which the report is submitted.

[[Page 118 STAT. 1834]]

            (3) The Comptroller General's conclusion regarding whether 
        such system development and demonstration (leading to 
        production) is likely to be completed at a total cost not in 
        excess of the amount specified (or to be specified) for such 
        purpose in the Selected Acquisition report for the Joint Strike 
        Fighter aircraft program under section 2432 of title 10, United 
        States Code, for the first quarter of the fiscal year during 
        which the report of the Comptroller General is submitted.

    (c) Requirement to Support Annual GAO Review.--The Secretary of 
Defense and the prime contractor for the Joint Strike Fighter aircraft 
program shall provide to the Comptroller General such information on 
that program as the Comptroller General considers necessary to carry out 
the responsibilities of the Comptroller General under this section, 
including such information as is necessary for the purposes of 
subsection (b)(3).
    (d) Termination.--No report is required under this section after the 
report that, under subsection (a), is required to be submitted not later 
than March 15, 2009.

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

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

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

    ``(a) Requirement.--Amounts for research, development, test, and 
evaluation for the United States Joint Forces Command shall be derived 
only from amounts made available to the Department of Defense for 
Defense-wide research, development, test, and evaluation.
    ``(b) Separate Display in Budget.--Any amount in the budget 
submitted to Congress under section 1105 of title 31 for any fiscal year 
for research, development, test, and evaluation for the United States 
Joint Forces Command shall be set forth under the account of the 
Department of Defense for Defense-wide research, development, test, and 
evaluation.''.

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

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

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

SEC. 215. GLOBAL POSITIONING SYSTEM III SATELLITE.

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

[[Page 118 STAT. 1835]]

            (2) submits to the congressional defense committees a report 
        on the results of the analysis, including an assessment of the 
        results of the analysis.

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

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

SEC. 217. JOINT UNMANNED COMBAT AIR SYSTEMS PROGRAM.

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

    (b) Applicability Only to DARPA-Managed Program.--The requirements 
of subsection (a) apply with respect to the Joint Unmanned Combat Air 
Systems program only while the program is managed by the Defense 
Advanced Research Projects Agency.

                  Subtitle C--Missile Defense Programs

SEC. 231. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

SEC. 232. <<NOTE: 10 USC 2431 note.>> INTEGRATION OF PATRIOT ADVANCED 
            CAPABILITY-3 AND MEDIUM EXTENDED AIR DEFENSE SYSTEM INTO 
            BALLISTIC MISSILE DEFENSE SYSTEM.

    (a) Relationship to Ballistic Missile Defense System.--The combined 
program of the Department of the Army known as the Patriot Advanced 
Capability-3/Medium Extended Air Defense System air and missile defense 
program (hereinafter in this section

[[Page 118 STAT. 1836]]

referred to as the ``PAC-3/MEADS program'') is an element of the 
Ballistic Missile Defense System.
    (b) Management of Configuration Changes.--The Director of the 
Missile Defense Agency, in consultation with the Secretary of the Army 
(acting through the Assistant Secretary of the Army for Acquisition, 
Logistics and Technology) shall ensure that any configuration change for 
the PAC-3/MEADS program is subject to the configuration control board 
processes of the Missile Defense Agency so as to ensure integration of 
the PAC-3/MEADS element with appropriate elements of the Ballistic 
Missile Defense System.

    (c) Required Procedures.--(1) Except as otherwise directed by the 
Secretary of Defense, the Secretary of the Army (acting through the 
Assistant Secretary of the Army for Acquisition, Logistics and 
Technology) may make a significant change to the baseline technical 
specifications or the baseline schedule for the PAC-3/MEADS program only 
with the concurrence of the Director of the Missile Defense Agency.
    (2) With respect to a proposal by the Secretary of the Army to make 
a significant change to the procurement quantity (including any quantity 
in any future block procurement) that, as of the date of such proposal, 
is planned for the PAC-3/MEADS program, the Secretary of Defense shall 
establish--
            (A) procedures for a determination of the effect of such 
        change on Ballistic Missile Defense System capabilities and on 
        the cost of the PAC-3/MEADS program; and
            (B) procedures for review of the proposed change by all 
        relevant commands and agencies of the Department of Defense, 
        including determination of the concurrence or nonconcurrence of 
        each such command and agency with respect to such proposed 
        change.

    (d) Report.--Not later than February 1, 2005, the Secretary of 
Defense shall submit to the congressional defense committees a report 
describing the procedures developed pursuant to subsection (c)(2).
    (e) Definitions.--For purpose of this section:
            (1) The term ``significant change'' means, with respect to 
        the PAC-3/MEADS program, a change that would substantially alter 
        the role or contribution of that program in the Ballistic 
        Missile Defense System.
            (2) The term ``baseline technical specifications'' means, 
        with respect to the PAC-3/MEADS program, those technical 
        specifications for that program that have been approved by the 
        configuration control board of the Missile Defense Agency and 
        are in effect as of the date of the review.
            (3) The term ``baseline schedule'' means, with respect to 
        the PAC-3/MEADS program, the development and production schedule 
        for the PAC-3/MEADS program in effect at the time of a review of 
        such program conducted pursuant to subsection (b) or (c)(2)(B).

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

    Section 232(g) of the National Defense Authorization Act for Fiscal 
Year 2002 (10 U.S.C. 2431 note) is amended to read as follows:
    ``(g) Comptroller General Assessment.--(1) At the conclusion of each 
of fiscal years 2002 through 2006, the Comptroller

[[Page 118 STAT. 1837]]

General of the United States shall carry out an assessment of the extent 
to which the Missile Defense Agency achieved the goals established under 
subsection (c) for that fiscal year for each ballistic missile defense 
program of the Department of Defense.
    ``(2) <<NOTE: Deadline.>> Not later than February 15 of each of 2003 
through 2007, the Comptroller General shall submit to the congressional 
defense committees a report on the Comptroller General's assessment 
under paragraph (1) with respect to the preceding fiscal year.''.

SEC. 234. <<NOTE: 10 USC 2431 note.>> BASELINES AND OPERATIONAL TEST AND 
            EVALUATION FOR BALLISTIC MISSILE DEFENSE SYSTEM.

    (a) <<NOTE: Deadline.>> Testing Criteria.--Not later than February 
1, 2005, the Secretary of Defense, in consultation with the Director of 
Operational Test and Evaluation, shall prescribe appropriate criteria 
for operationally realistic testing of fieldable prototypes developed 
under the ballistic missile defense spiral development program. The 
Secretary shall submit a copy of the prescribed criteria to the 
congressional defense committees.

    (b) <<NOTE: Deadline.>> Use of Criteria.--(1) The Secretary of 
Defense shall ensure that, not later than October 1, 2005, a test of the 
ballistic missile defense system is conducted consistent with the 
criteria prescribed under subsection (a).

    (2) The Secretary of Defense shall ensure that each block 
configuration of the ballistic missile defense system is tested 
consistent with the criteria prescribed under subsection (a).
    (c) Relationship to Other Law.--Nothing in this section shall be 
construed to exempt any spiral development program of the Department of 
Defense, after completion of the spiral development, from the 
applicability of any provision of chapter 144 of title 10, United States 
Code, or section 139, 181, 2366, 2399, or 2400 of such title in 
accordance with the terms and conditions of such provision.
    (d) Evaluation.--(1) The Director of Operational Test and Evaluation 
shall evaluate the results of each test conducted under subsection (a) 
as soon as practicable after the completion of such test.
    (2) <<NOTE: Reports.>> The Director shall submit to the Secretary of 
Defense and the congressional defense committees a report on the 
evaluation of each test conducted under subsection (a) upon completion 
of the evaluation of such test under paragraph (1).

    (e) Cost, Schedule, and Performance Baselines.--(1) The Director of 
the Missile Defense Agency shall establish cost, schedule, and 
performance baselines for each block configuration of the Ballistic 
Missile Defense System being fielded. The cost baseline for a block 
configuration shall include full life cycle costs for the block 
configuration.
    (2) The Director shall include the baselines established under 
paragraph (1) in the first Selected Acquisition Report for the Ballistic 
Missile Defense System that is submitted to Congress under section 2432 
of title 10, United States Code, after the establishment of such 
baselines.
    (3) The Director shall also include in the Selected Acquisition 
Report submitted to Congress under paragraph (2) the significant 
assumptions used in determining the performance baseline under paragraph 
(1), including any assumptions regarding threat missile countermeasures 
and decoys.

[[Page 118 STAT. 1838]]

    (f) Variations Against Baselines.--In the event the cost, schedule, 
or performance of any block configuration of the Ballistic Missile 
Defense System varies significantly (as determined by the Director of 
the Ballistic Missile Defense Agency) from the applicable baseline 
established under subsection (d), the Director shall include such 
variation, and the reasons for such variation, in the Selected 
Acquisition Report submitted to Congress under section 2432 of title 10, 
United States Code.
    (g) Modifications of Baselines.--In the event the Director of the 
Missile Defense Agency elects to undertake any modification of a 
baseline established under subsection (d), the Director shall submit to 
the congressional defense committees a report setting forth the reasons 
for such modification.

                        Subtitle D--Other Matters

SEC. 241. ANNUAL REPORT ON SUBMARINE TECHNOLOGY INSERTION.

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

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

    (a) Findings.--Congress makes the following findings:
            (1) The budget for fiscal year 2005, as submitted to 
        Congress by the President, provides $10,300,000 for the Advanced 
        Shipbuilding Enterprise under the National Shipbuilding Research 
        Program of the Navy.
            (2) The Advanced Shipbuilding Enterprise is an innovative 
        program to encourage greater efficiency in the national 
        technology and industrial base.
            (3) The leaders of the United States shipbuilding industry 
        have embraced the Advanced Shipbuilding Enterprise as a

[[Page 118 STAT. 1839]]

        method for exploring and collaborating on innovation in 
        shipbuilding and ship repair that collectively benefits all 
        components of the industry.

    (b) Sense of Congress.--It is the sense of Congress--
            (1) that Congress--
                    (A) strongly supports the innovative Advanced 
                Shipbuilding Enterprise under the National Shipbuilding 
                Research Program as an enterprise between the Navy and 
                industry that has yielded new processes and techniques 
                that reduce the cost of building and repairing ships in 
                the United States; and
                    (B) is concerned that the future-years defense 
                program of the Department of Defense that was submitted 
                to Congress for fiscal year 2005 does not reflect any 
                funding for the Advanced Shipbuilding Enterprise after 
                fiscal year 2005; and
            (2) that the Secretary of Defense should continue to provide 
        in the future-years defense program for funding the Advanced 
        Shipbuilding Enterprise at a sustaining level in order to 
        support additional research to further reduce the cost of 
        designing, building, and repairing ships.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

                  Subtitle B--Environmental Provisions

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

                 Subtitle C--Workplace and Depot Issues

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

[[Page 118 STAT. 1840]]

Sec. 328. Competitive sourcing reporting requirement.

                   Subtitle D--Information Technology

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

              Subtitle E--Extensions of Program Authorities

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

                        Subtitle F--Other Matters

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

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

[[Page 118 STAT. 1841]]

            (20) For the Overseas Contingency Operations Transfer Fund, 
        $10,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2005 for 
expenses, not otherwise provided for, for the Defense Health Program, in 
the amount of $17,657,386,000, of which--
            (1) $17,219,844,000 is for Operation and Maintenance;
            (2) $72,907,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $364,635,000 is for Procurement.

    (b) Chemical Agents and Munitions Destruction, Defense.--(1) Funds 
are hereby authorized to be appropriated for the Department of Defense 
for fiscal year 2005 for expenses, not otherwise provided for, for 
Chemical Agents and Munitions Destruction, Defense, in the amount of 
$1,371,990,000, of which--
            (A) $1,088,801,000 is for Operation and Maintenance;
            (B) $204,209,000 is for Research, Development, Test, and 
        Evaluation; and
            (C) $78,980,000 is for Procurement.

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

    (c) Drug Interdiction and Counter-Drug Activities, Defense-wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2005 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, in the 
amount of $852,947,000.
    (d) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2005 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, in the amount of $204,562,000, of 
which--
            (1) $202,362,000 is for Operation and Maintenance;
            (2) $2,100,000 is for Procurement; and
            (3) $100,000 is for Research, Development, Test, and 
        Evaluation.

[[Page 118 STAT. 1842]]

                  Subtitle B--Environmental Provisions

SEC. 311. <<NOTE: 42 USC 9611 note.>> SATISFACTION OF SUPERFUND AUDIT 
            REQUIREMENTS BY INSPECTOR GENERAL OF THE DEPARTMENT OF 
            DEFENSE.

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

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

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

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

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

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

    The <<NOTE: Deadline.>> Secretary of the Army shall carry out the 
small boat harbor project in Unalaska, Alaska, at a total estimated cost 
of $23,200,000, with an estimated Federal cost of $11,500,000 and an 
estimated non-Federal cost of $11,700,000, substantially in accordance 
with the plans, and subject to the conditions, recommended in a final 
report of the Chief of Engineers if a favorable

[[Page 118 STAT. 1843]]

final report of the Chief for the project is completed not later than 
December 31, 2004.

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

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

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

    (a) Comptroller General Study.--The Comptroller General shall 
conduct a study to determine whether cost-effective technologies are 
available to the Department of Defense for the cleanup of groundwater 
contamination at Department installations in lieu of traditional 
methods, such as pump and treat, used to respond to groundwater 
contamination.
    (b) Elements of Study.--In conducting the study under subsection 
(a), the Comptroller General shall--
            (1) identify current technologies being used or field tested 
        by the Department of Defense to treat groundwater at Department 
        installations;
            (2) identify cost-effective technologies for the cleanup of 
        groundwater contamination that--
                    (A) are being researched, are under development by 
                commercial vendors, or are available commercially and 
                being used outside the Department; and
                    (B) have potential for use by the Department to 
                address groundwater contamination;
            (3) evaluate the potential benefits and limitations of using 
        the technologies identified under paragraphs (1) and (2); and
            (4) consider the barriers, such as cost, capability, or 
        legal restrictions, to using the technologies identified under 
        paragraph (2).

[[Page 118 STAT. 1844]]

    (c) Report Required.--Not later than April 1, 2005, the Comptroller 
General shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives a 
report containing the results of the study, including information 
regarding the matters specified in subsection (b) and any 
recommendations, including recommendations for administrative or 
legislative action, that the Comptroller General considers appropriate.

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

    (a) Study.--The Comptroller General shall conduct a study on 
drinking water contamination and related health effects at Camp Lejeune, 
North Carolina. The study shall consist of the following:
            (1) A study of the history of drinking water contamination 
        at Camp Lejeune to determine, to the extent practical--
                    (A) what contamination has been found in the 
                drinking water;
                    (B) the source of such contamination and when it may 
                have begun; and
                    (C) what actions have been taken to address such 
                contamination.
            (2) An assessment of the study on the possible health 
        effects associated with the drinking of contaminated drinking 
        water at Camp Lejeune as proposed by the Agency for Toxic 
        Substances and Disease Registry of the Department of Health and 
        Human Services, including whether the proposed study--
                    (A) will address the appropriate at-risk 
                populations;
                    (B) will encompass an appropriate timeframe;
                    (C) will consider all relevant health effects; and
                    (D) can be completed on an expedited basis without 
                compromising its quality.

    (b) Authority To Use Experts.--The Comptroller General may use 
experts in conducting the study required by subsection (a). Any such 
experts shall be independent, highly qualified, and knowledgeable in the 
matters covered by the study.
    (c) Participation by Other Interested Parties.--In conducting the 
study required by subsection (a), the Comptroller General shall ensure 
that interested parties, including individuals who lived or worked at 
Camp Lejeune during the period when the drinking water may have been 
contaminated, have the opportunity to submit information and views on 
the matters covered by the study.
    (d) Construction With ATSDR Study.--The requirement under subsection 
(a)(2) that the Comptroller General conduct an assessment of the study 
proposed by the Agency for Toxic Substances and Disease Registry, as 
described in such subsection, may not be construed as a basis for the 
delay of that study. The assessment is intended to provide an 
independent review of the appropriateness and credibility of the study 
proposed by the Agency and to identify possible improvements in the plan 
or implementation of the study proposed by the Agency.
    (e) Report.--(1) Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
congressional defense committees a report on the study required by 
subsection (a), including such recommendations as the

[[Page 118 STAT. 1845]]

Comptroller General considers appropriate for further study or for 
legislative or other action.
    (2) Recommendations under paragraph (1) may include recommendations 
for modifications or additions to the study proposed by the Agency for 
Toxic Substances and Disease Registry, as described in subsection 
(a)(2), in order to improve the study.

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

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

                 Subtitle C--Workplace and Depot Issues

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

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

[[Page 118 STAT. 1846]]

            ``(A) the Department of Defense complied with the 
        requirements of subsection (a) during the preceding fiscal year 
        covered by the report; and
            ``(B) the expenditure projections for the current fiscal 
        year and the ensuing fiscal year are reasonable.''.

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

    (a) Repeal.--Section 2472 of title 10, United States Code, is 
amended--
            (1) by striking ``(a) Prohibition on Management by End 
        Strength.--''; and
            (2) by striking subsection (b).

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

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

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

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

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

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

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

    (a) Conditional Extension of Authority.--Subsection (c) of section 
332 of the Bob Stump National Defense Authorization Act for Fiscal Year 
2003 (Public Law 107-314; 116 Stat. 2513) is amended--
            (1) by inserting ``(1)'' after ``Authority.--''; and
            (2) by striking ``at the end of the three-year period'' and 
        all that follows through the period at the end of the subsection 
        and inserting the following: ``at the end of September 30, 2006, 
        except that such authority shall not be in effect after December 
        1, 2005, if the Secretary fails to submit to Congress the plan 
        required by subsection (d)(4), until the date on which the 
        Secretary submits the plan.

    ``(2) No security-guard functions may be performed under any 
contract entered into using the authority provided under this section 
during any period in which the authority for contractor performance of 
security-guard functions under this section is not in effect under 
paragraph (1). The term of any contract entered into using such 
authority may not extend beyond September 30, 2006.''.
    (b) Reaffirmation and Revision of Reporting Requirement.--Subsection 
(d) of such section is amended to read as follows:
    ``(d) Report and Plan Required.--Not later than December 1, 2005, 
the Secretary of Defense shall submit to the congressional defense 
committees a report that--
            ``(1) identifies each contract for the performance of 
        security-guard functions entered into on or before September 30, 
        2004,

[[Page 118 STAT. 1847]]

        pursuant to the authority provided by subsection (a), including 
        information regarding--
                    ``(A) each installation at which such security-guard 
                functions are performed or are to be performed;
                    ``(B) the period and amount of such contract;
                    ``(C) the number of security guards employed or to 
                be employed under such contract;
                    ``(D) whether the contract was awarded pursuant to 
                full and open competition; and
                    ``(E) the actions taken or to be taken within the 
                Department of Defense to ensure that the conditions 
                applicable under paragraph (1) of subsection (a) or 
                determined under paragraph (2) of such subsection are 
                satisfied;
            ``(2) identifies, for each military installation at which 
        such authority was used or is expected to be used, any 
        requirements for the performance of security-guard functions 
        described in subsection (a) that are expected to continue after 
        the date on which such authority expires;
            ``(3) identifies any limitation or constraint on the end 
        strength of the civilian workforce of the Department of Defense 
        that makes it difficult to meet requirements identified under 
        paragraph (2) by hiring personnel as civilian employees of the 
        Department of Defense; and
            ``(4) includes a plan for meeting such requirements, in a 
        manner consistent with applicable law, on a long-term basis.''.

SEC. 325. <<NOTE: 10 USC 2461 note.>> PILOT PROGRAM FOR PURCHASE OF 
            CERTAIN MUNICIPAL SERVICES FOR ARMY INSTALLATIONS.

    (a) Pilot Program Authorized.--The Secretary of Army may carry out a 
pilot program to procure one or more of the municipal services specified 
in subsection (b) for an Army installation from a county or municipality 
in which the installation is located for the purpose of evaluating the 
efficacy of procuring such services rather than providing them directly.
    (b) Services Authorized for Procurement.--Only the following 
services may be procured for a military installation participating in 
the pilot program:
            (1) Refuse collection.
            (2) Refuse disposal.
            (3) Library services.
            (4) Recreation services.
            (5) Facility maintenance and repair.
            (6) Utilities.

    (c) Participating Installations.--Not more than two Army 
installations may be selected to participate in the pilot program, and 
only installations located in the United States are eligible for 
selection.
    (d) Congressional Notification.--The Secretary may not enter into a 
contract under the pilot program for the procurement of municipal 
services until the Secretary notifies the congressional defense 
committees of the proposed contract and a period of 14 days elapses from 
the date the notification is received by the committees.
    (e) Implementation Report.--(1) Not later than February 1, 2007, the 
Secretary shall submit to the congressional defense committees and the 
Comptroller General a report describing the implementation of the pilot 
program, evaluating the efficacy of

[[Page 118 STAT. 1848]]

procuring municipal services for participating installations from local 
counties or municipalities, and containing any recommendations that the 
Secretary considers appropriate regarding expansion or alteration of the 
program.
    (2) The Comptroller General shall submit to the congressional 
defense committees an assessment of the findings and recommendations 
contained in the report submitted under paragraph (1).
    (f) Termination of Pilot Program.--The pilot program shall terminate 
on September 30, 2010. Any contract entered into under the pilot program 
shall terminate not later than that date.

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

    (a) Treatment of Agency Tender Official as Interested Party.--
Section 3551(2) of title 31, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following new subparagraph:
            ``(B) The term includes the official responsible for 
        submitting the Federal agency tender in a public-private 
        competition conducted under Office of Management and Budget 
        Circular A-76 regarding an activity or function of a Federal 
        agency performed by more than 65 full-time equivalent employees 
        of the Federal agency.''.

    (b) Filing of Protest on Behalf of Federal Employees.--Section 3552 
of such title is amended--
            (1) by inserting ``(a)'' before ``A protest''; and
            (2) by adding at the end the following new subsection:

    ``(b)(1) In the case of an agency tender official who is an 
interested party under section 3551(2)(B) of this title, the official 
may file a protest in connection with the public-private competition for 
which the official is an interested party. At the request of a majority 
of the employees of the Federal agency who are engaged in the 
performance of the activity or function subject to such public-private 
competition, the official shall file a protest in connection with such 
public-private competition unless the official determines that there is 
no reasonable basis for the protest.
    ``(2) The determination of an agency tender official under paragraph 
(1) whether or not to file a protest is not subject to administrative or 
judicial review. An agency tender official shall provide written 
notification to Congress whenever the official makes a determination 
under paragraph (1) that there is no reasonable basis for a protest.''.

    (c) Intervention in Protest.--Section 3553 of such title is amended 
by adding at the end the following new subsection:
    ``(g) If an interested party files a protest in connection with a 
public-private competition described in section 3551(2)(B) of this 
title, a person representing a majority of the employees of the Federal 
agency who are engaged in the performance of the activity or function 
subject to the public-private competition may intervene in protest.''.
    (d) <<NOTE: 31 USC 3551 note.>> Applicability.--The amendments made 
by this section shall apply to protests filed under subchapter V of 
chapter 35 of title 31, United States Code, that relate to studies 
initiated under Office of Management and Budget Circular A-76 on or 
after the end of the 90-day period beginning on the date of the 
enactment of this Act.

[[Page 118 STAT. 1849]]

    (e) <<NOTE: 31 USC 3551 note.>> Rule of Construction.--The 
amendments made by this section shall not be construed to authorize the 
use of a protest under subchapter V of chapter 35 of title 31, United 
States Code, with regard to a decision made by an agency tender 
official.

SEC. 327. <<NOTE: 10 USC 2461 note.>> LIMITATIONS ON CONVERSION OF WORK 
            PERFORMED BY DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES TO 
            CONTRACTOR PERFORMANCE.

    (a) Required Cost-Savings Threshold for Conversion.--If a public-
private competition conducted under the Office of Management and Budget 
Circular A-76 dated May 29, 2003 (68 Fed. Reg. 32134), regarding an 
activity or function performed by civilian employees of the Department 
of Defense is required to include a formal comparison of the cost of 
civilian employee performance of the activity or function with the cost 
of contractor performance, the Secretary of Defense shall maintain the 
continued performance of the activity or function by civilian employees 
unless the competitive sourcing official determines that, over all 
performance periods stated in the solicitation of offers for performance 
of the activity or function, the cost of performance of the activity or 
function by a contractor would be less costly to the Department of 
Defense by an amount that equals or exceeds the lesser of the following:
            (1) $10,000,000.
            (2) 10 percent of the most efficient organization's 
        personnel-related costs for performance of the activity or 
        function by civilian employees.

    (b) Prohibition on Modification of Functions to Permit Streamlined 
A-76 Study.--The Secretary of Defense shall ensure that no organization, 
function, or activity of the Department of Defense is consolidated, 
restructured, reengineered, or otherwise modified in any way for the 
purpose of exempting any public-private competition conducted under the 
Office of Management and Budget Circular A-76 dated May 29, 2003 (68 
Fed. Reg. 32134), regarding a commercial or industrial type function of 
the Department of Defense from the requirement to formally compare, in 
accordance with such Circular, the cost of civilian employee performance 
of the function with the cost of contractor performance.
    (c) Exception.--Subsection (a) does not apply in the case of a 
public-private competition conducted as part of the best-value source 
selection pilot program authorized by section 336 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 10 
U.S.C. 2461 note).

SEC. 328. COMPETITIVE SOURCING REPORTING REQUIREMENT.

    Not later than February 1, 2005, the Inspector General of the 
Department of Defense shall submit to Congress a report addressing 
whether the Department of Defense--
            (1) employs a sufficient number of adequately trained 
        civilian employees--
                    (A) to conduct satisfactorily, taking into account 
                equity, efficiency and expeditiousness, all of the 
                public-private competitions that are scheduled to be 
                undertaken by the Department of Defense during the next 
                fiscal year (including a sufficient number of employees 
                to formulate satisfactorily the performance work 
                statements and most efficient organization plans for the 
                purposes of such competitions); and

[[Page 118 STAT. 1850]]

                    (B) to administer any resulting contracts; and
            (2) has implemented a comprehensive and reliable system to 
        track and assess the cost and quality of the performance of 
        functions of the Department of Defense by service contractors.

                   Subtitle D--Information Technology

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

    (a) Transition Plan Required.--The Secretary of Defense shall 
prepare a plan detailing the Department of Defense strategy to provide 
for the transition of the Department's information technology systems to 
Internet Protocol version 6 from the present use of Internet Protocol 
version 4 and other network protocols. In preparing the transition plan, 
the Secretary shall compare private industry plans for the transition to 
Internet Protocol version 6.
    (b) Elements of Plan.--The transition plan required by subsection 
(a) shall include the following:
            (1) An outline of the networking and security system 
        equipment that will need to be replaced in the transition, 
        including the timing and costs of such replacement.
            (2) An assessment of how the current and new networks and 
        security systems will be managed.
            (3) An assessment of the potential impact of the transition, 
        including an overall cost estimate for the transition and an 
        estimate of the costs to be incurred by each of the military 
        departments and the Defense Agencies.
            (4) Any measures proposed to alleviate any adverse effects 
        of the transition.

    (c) Testing and Evaluation for Internet Protocol.--To determine 
whether a change to the use of Internet Protocol version 6 will support 
Department of Defense requirements, the Secretary of Defense shall 
provide for rigorous, real-world, end-to-end testing of Internet 
Protocol version 6, as proposed for use by the Department, to evaluate 
the following:
            (1) The ability of Internet Protocol version 6, with its 
        ``best effort'' quality of service, to satisfactory support the 
        Department's multiple applications and other information 
        technology systems, including the use of Internet Protocol 
        version 6 over bandwidth-constrained tactical circuits.
            (2) The ability of the Department's networks using Internet 
        Protocol version 6 to respond to, and perform under, heavy 
        loading of the core networks.

    (d) Reports on Plan and Test Results.--(1) Not later than March 31, 
2005, the Secretary of Defense shall submit to the congressional defense 
committees a report containing the transition plan prepared under 
subsection (a).
    (2) Not later than September 30, 2005, the Director of Operational 
Test and Evaluation shall submit to the congressional defense committees 
a report containing an update on the continuing test program and any 
test results.

[[Page 118 STAT. 1851]]

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 <<NOTE: Effective date.>> October 1, 2005, 
funds appropriated to the Department of Defense may not be obligated for 
a defense business system modernization that will have a total cost in 
excess of $1,000,000 unless--
            ``(1) the approval authority designated for the defense 
        business system certifies to the Defense Business Systems 
        Management Committee established by section 186 of this title 
        that the defense business system modernization--
                    ``(A) is in compliance with the enterprise 
                architecture developed under subsection (c);
                    ``(B) is necessary to achieve a critical national 
                security capability or address a critical requirement in 
                an area such as safety or security; or
                    ``(C) is necessary to prevent a significant adverse 
                effect on a project that is needed to achieve an 
                essential capability, taking into consideration the 
                alternative solutions for preventing such adverse 
                effect; and
            ``(2) the certification by the approval authority is 
        approved by the Defense Business Systems Management Committee.

    ``(b) Obligation of Funds in Violation of Requirements.--The 
obligation of Department of Defense funds for a business system 
modernization in excess of the amount specified in subsection (a) that 
has not been certified and approved in accordance with such subsection 
is a violation of section 1341(a)(1)(A) of title 31.
    ``(c) Enterprise Architecture for Defense Business Systems.--Not 
later than <<NOTE: Deadline.>> September 30, 2005, the Secretary of 
Defense, acting through the Defense Business Systems Management 
Committee, shall develop--
            ``(1) an enterprise architecture to cover all defense 
        business systems, and the functions and activities supported by 
        defense business systems, which shall be sufficiently defined to 
        effectively guide, constrain, and permit implementation of 
        interoperable defense business system solutions and consistent 
        with the policies and procedures established by the Director of 
        the Office of Management and Budget, and
            ``(2) a transition plan for implementing the enterprise 
        architecture for defense business systems.

    ``(d) Composition of Enterprise Architecture.--The defense business 
enterprise architecture developed under subsection (c)(1) shall include 
the following:
            ``(1) An information infrastructure that, at a minimum, 
        would enable the Department of Defense to--
                    ``(A) comply with all Federal accounting, financial 
                management, and reporting requirements;
                    ``(B) routinely produce timely, accurate, and 
                reliable financial information for management purposes;

[[Page 118 STAT. 1852]]

                    ``(C) integrate budget, accounting, and program 
                information and systems; and
                    ``(D) provide for the systematic measurement of 
                performance, including the ability to produce timely, 
                relevant, and reliable cost information.
            ``(2) Policies, procedures, data standards, and system 
        interface requirements that are to apply uniformly throughout 
        the Department of Defense.

    ``(e) Composition of Transition Plan.--(1) The transition plan 
developed under subsection (c)(2) shall include the following:
            ``(A) The acquisition strategy for new systems that are 
        expected to be needed to complete the defense business 
        enterprise architecture.
            ``(B) A listing of the defense business systems as of 
        December 2, 2002 (known as `legacy systems'), that will not be 
        part of the objective defense business enterprise architecture, 
        together with the schedule for terminating those legacy systems 
        that provides for reducing the use of those legacy systems in 
        phases.
            ``(C) A listing of the legacy systems (referred to in 
        subparagraph (B)) that will be a part of the objective defense 
        business system, together with a strategy for making the 
        modifications to those systems that will be needed to ensure 
        that such systems comply with the defense business enterprise 
        architecture.

    ``(2) Each of the strategies under paragraph (1) shall include 
specific time-phased milestones, performance metrics, and a statement of 
the financial and nonfinancial resource needs.
    ``(f) Approval Authorities and Accountability for Defense Business 
Systems.--The Secretary of Defense shall delegate responsibility for 
review, approval, and oversight of the planning, design, acquisition, 
deployment, operation, maintenance, and modernization of defense 
business systems as follows:
            ``(1) The Under Secretary of Defense for Acquisition, 
        Technology and Logistics shall be responsible and accountable 
        for any defense business system the primary purpose of which is 
        to support acquisition activities, logistics activities, or 
        installations and environment activities of the Department of 
        Defense.
            ``(2) The Under Secretary of Defense (Comptroller) shall be 
        responsible and accountable for any defense business system the 
        primary purpose of which is to support financial management 
        activities or strategic planning and budgeting activities of the 
        Department of Defense.
            ``(3) The Under Secretary of Defense for Personnel and 
        Readiness shall be responsible and accountable for any defense 
        business system the primary purpose of which is to support human 
        resource management activities of the Department of Defense.
            ``(4) The Assistant Secretary of Defense for Networks and 
        Information Integration and the Chief Information Officer of the 
        Department of Defense shall be responsible and accountable for 
        any defense business system the primary purpose of which is to 
        support information technology infrastructure or information 
        assurance activities of the Department of Defense.
            ``(5) The Deputy Secretary of Defense or an Under Secretary 
        of Defense, as designated by the Secretary of Defense, shall be 
        responsible for any defense business system the primary

[[Page 118 STAT. 1853]]

        purpose of which is to support any activity of the Department of 
        Defense not covered by paragraphs (1) through (4).

    ``(g) Defense Business System Investment Review.--(1) The Secretary 
of Defense shall require each approval authority designated under 
subsection (f) to establish, not later than March 15, 2005, an 
investment review process, consistent with section 11312 of title 40, to 
review the planning, design, acquisition, development, deployment, 
operation, maintenance, modernization, and project cost benefits and 
risks of all defense business systems for which the approval authority 
is responsible. The investment review process so established shall 
specifically address the responsibilities of approval authorities under 
subsection (a).
    ``(2) The review of defense business systems under the investment 
review process shall include the following:
            ``(A) Review and approval by an investment review board of 
        each defense business system as an investment before the 
        obligation of funds on the system.
            ``(B) Periodic review, but not less than annually, of every 
        defense business system investment.
            ``(C) Representation on each investment review board by 
        appropriate officials from among the armed forces, combatant 
        commands, the Joint Chiefs of Staff, and Defense Agencies.
            ``(D) Use of threshold criteria to ensure an appropriate 
        level of review within the Department of Defense of, and 
        accountability for, defense business system investments 
        depending on scope, complexity, and cost.
            ``(E) Use of procedures for making certifications in 
        accordance with the requirements of subsection (a).
            ``(F) Use of procedures for ensuring consistency with the 
        guidance issued by the Secretary of Defense and the Defense 
        Business Systems Management Committee, as required by section 
        186(c) of this title, and incorporation of common decision 
        criteria, including standards, requirements, and priorities that 
        result in the integration of defense business systems.

    ``(h) Budget Information.--In the materials that the Secretary 
submits to Congress in support of the budget submitted to Congress under 
section 1105 of title 31 for fiscal year 2006 and fiscal years 
thereafter, the Secretary of Defense shall include the following 
information:
            ``(1) Identification of each defense business system for 
        which funding is proposed in that budget.
            ``(2) Identification of all funds, by appropriation, 
        proposed in that budget for each such system, including--
                    ``(A) funds for current services (to operate and 
                maintain the system); and
                    ``(B) funds for business systems modernization, 
                identified for each specific appropriation.
            ``(3) For each such system, identification of the official 
        to whom authority for such system is delegated under subsection 
        (f).
            ``(4) For each such system, a description of each 
        certification made under subsection (d) with regard to such 
        system.

    ``(i) Congressional Reports.--Not later than March 15 of each year 
from 2005 through 2009, the Secretary of Defense shall submit to the 
congressional defense committees a report on Department of Defense 
compliance with the requirements of this section. The first report shall 
define plans and commitments for meeting

[[Page 118 STAT. 1854]]

the requirements of subsection (a), including specific milestones and 
performance measures. Subsequent reports shall--
            ``(1) describe actions taken and planned for meeting the 
        requirements of subsection (a), including--
                    ``(A) specific milestones and actual performance 
                against specified performance measures, and any revision 
                of such milestones and performance measures; and
                    ``(B) specific actions on the defense business 
                system modernizations submitted for certification under 
                such subsection;
            ``(2) identify the number of defense business system 
        modernizations so certified;
            ``(3) identify any defense business system modernization 
        with an obligation in excess of $1,000,000 during the preceding 
        fiscal year that was not certified under subsection (a), and the 
        reasons for the waiver; and
            ``(4) discuss specific improvements in business operations 
        and cost savings resulting from successful defense business 
        systems modernization efforts.

    ``(j) Definitions.--In this section:
            ``(1) The term `approval authority', with respect to a 
        defense business system, means the Department of Defense 
        official responsible for the defense business system, as 
        designated by subsection (f).
            ``(2) The term `defense business system' means an 
        information system, other than a national security system, 
        operated by, for, or on behalf of the Department of Defense, 
        including financial systems, mixed systems, financial data 
        feeder systems, and information technology and information 
        assurance infrastructure, used to support business activities, 
        such as acquisition, financial management, logistics, strategic 
        planning and budgeting, installations and environment, and human 
        resource management.
            ``(3) The term `defense business system modernization' 
        means--
                    ``(A) the acquisition or development of a new 
                defense business system; or
                    ``(B) any significant modification or enhancement of 
                an existing defense business system (other than 
                necessary to maintain current services).
            ``(4) The term `enterprise architecture' has the meaning 
        given that term in section 3601(4) of title 44.
            ``(5) The terms `information system' and `information 
        technology' have the meanings given those terms in section 11101 
        of title 40.
            ``(6) The term `national security system' has the meaning 
        given that term in section 2315 of this title.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 2223 the 
following new item:

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

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

[[Page 118 STAT. 1855]]

``Sec. 186. Defense Business System Management Committee

    ``(a) Establishment.--The Secretary of Defense shall establish a 
Defense Business Systems Management Committee, to be composed of the 
following persons:
            ``(1) The Deputy Secretary of Defense.
            ``(2) The Under Secretary of Defense for Acquisition, 
        Logistics, and Technology.
            ``(3) The Under Secretary of Defense for Personnel and 
        Readiness.
            ``(4) The Under Secretary of Defense (Comptroller).
            ``(5) The Assistant Secretary of Defense for Networks and 
        Information Integration.
            ``(6) The Secretaries of the military departments and the 
        heads of the Defense Agencies.
            ``(7) Such additional personnel of the Department of Defense 
        (including personnel assigned to the Joint Chiefs of Staff and 
        combatant commands) as are designated by the Secretary of 
        Defense.

    ``(b) Chairman and Vice Chairman.--The Deputy Secretary of Defense 
shall serve as the chairman of the Committee. The Secretary of Defense 
shall designate one of the officials specified in paragraphs (2) through 
(5) of subsection (a) as the vice chairman of the Committee, who shall 
act as chairman in the absence of the Deputy Secretary of Defense.
    ``(c) Duties.--(1) In addition to any other matters assigned to the 
Committee by the Secretary of Defense, the Committee shall--
            ``(A) recommend to the Secretary of Defense policies and 
        procedures necessary to effectively integrate the requirements 
        of section 2222 of this title into all business activities and 
        any transformation, reform, reorganization, or process 
        improvement initiatives undertaken within the Department of 
        Defense;
            ``(B) review and approve any major update of the defense 
        business enterprise architecture developed under subsection (b) 
        of section 2222 of this title, including evolving the 
        architecture, and of defense business systems modernization 
        plans; and
            ``(C) manage cross-domain integration consistent with such 
        enterprise architecture.

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

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

    (c) Implementation Requirements.--Not <<NOTE: Deadline. 10 USC 186 
note.>> later than 60 days after the date of the enactment of this Act, 
the Secretary of Defense shall--

[[Page 118 STAT. 1856]]

            (1) complete the delegation of responsibility for the 
        review, approval, and oversight of the planning, design, 
        acquisition, deployment, operation, maintenance, and 
        modernization of defense business systems required by subsection 
        (f) of section 2222 of title 10, United States Code, as added by 
        subsection (a)(1); and
            (2) designate a vice chairman of the Defense Business System 
        Management Committee, as required by subsection (b) of section 
        186 of such title, as added by subsection (b)(1).

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

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

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

[[Page 118 STAT. 1857]]

              Subtitle E--Extensions of Program Authorities

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

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

SEC. 342. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

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

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

    Section 391 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 2304 note) is amended--
            (1) in subsection (f), by striking ``September 30, 2004'' 
        and inserting ``September 30, 2006''; and
            (2) by adding at the end the following new subsection:

    ``(g) Reporting Requirement.--Not later than February 1, 2006, the 
Secretary of Defense shall submit to Congress a report on the pilot 
program, including--
            ``(1) a description of the extent to which commercial firms 
        have been used to provide the services specified in subsection 
        (b) and the type of services procured;
            ``(2) a description of any problems that have limited the 
        ability of the Secretary to utilize the pilot program to procure 
        such services; and
            ``(3) the recommendation of the Secretary regarding whether 
        the pilot program should be made permanent or extended beyond 
        September 30, 2006.''.

                        Subtitle F--Other Matters

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

    (a) Reimbursement Required.--The Secretary of Defense shall 
reimburse a member of the Armed Forces for the cost (including any 
shipping cost) of any protective, safety, or health equipment that was 
purchased by the member or by another person on behalf of the member for 
the personal use of the member in anticipation of, or during, the 
deployment of the member in connection with

[[Page 118 STAT. 1858]]

Operation Noble Eagle, Operation Enduring Freedom, or Operation Iraqi 
Freedom, but only if--
            (1) the Secretary of Defense certifies that the protective, 
        safety, or health equipment was critical to the protection, 
        safety, or health of the member;
            (2) the member was not issued the protective, safety, or 
        health equipment before the member became engaged in operations 
        in areas or situations described in section 310(a)(2) of title 
        37, United States Code; and
            (3) the protective, safety, or health equipment was 
        purchased by the member during the period beginning on September 
        11, 2001, and ending on July 31, 2004.

    (b) Amount of Reimbursement.--The amount of reimbursement provided 
under subsection (a) per item of protective, safety, or health equipment 
purchased by a member of the Armed Forces may not exceed $1,100.
    (c) Submission of Reimbursement Claims.--Claims for reimbursement 
for the cost of protective, safety, or health equipment purchased by a 
member of the Armed Forces shall be submitted to the Secretary of 
Defense under this section not later than one year after the date on 
which the implementing rules required by subsection (d) take effect.
    (d) <<NOTE: Deadline.>> Rulemaking.--Not later than 120 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
issue rules to expedite the provision of reimbursement under subsection 
(a). In conducting such rulemaking, the Secretary shall address the 
circumstances under which the United States will assume title or 
ownership of any protective, safety, or health equipment for which 
reimbursement is made.

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

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

[[Page 118 STAT. 1859]]

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

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

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

    ``(a) Cooperative Arrangements Authorized.--A working-capital funded 
Army industrial facility may enter into a contract or other cooperative 
arrangement with a non-Army entity to carry out with the non-Army entity 
a military or commercial project described in subsection (b), subject to 
the conditions prescribed in subsection (c).
    ``(b) Authorized Activities.--A cooperative arrangement entered into 
by an Army industrial facility under subsection (a) may provide for any 
of the following activities:
            ``(1) The sale of articles manufactured by the facility or 
        services performed by the facility to persons outside the 
        Department of the Army.
            ``(2) The performance of work by a non-Army entity at the 
        facility.
            ``(3) The performance of work by the facility for a non-Army 
        entity.
            ``(4) The sharing of work by the facility and a non-Army 
        entity.
            ``(5) The leasing, or use under a facilities use contract or 
        otherwise, of the facility (including excess capacity) or 
        equipment (including excess equipment) of the facility by a non-
        Army entity.
            ``(6) The preparation and submission of joint offers by the 
        facility and a non-Army entity for competitive procurements 
        entered into with Federal agency.

    ``(c) Conditions.--An activity authorized by subsection (b) may be 
carried out at an Army industrial facility under a cooperative 
arrangement entered into under subsection (a) only under the following 
conditions:
            ``(1) In the case of an article to be manufactured or 
        services to be performed by the facility, the articles can be 
        substantially manufactured, or the services can be substantially 
        performed, by the facility without subcontracting for more than 
        incidental performance.
            ``(2) The activity does not interfere with performance of--
                    ``(A) work by the facility for the Department of 
                Defense; or
                    ``(B) a military mission of the facility.
            ``(3) The activity meets one of the following objectives:
                    ``(A) Maximized utilization of the capacity of the 
                facility.
                    ``(B) Reduction or elimination of the cost of 
                ownership of the facility.
                    ``(C) Reduction in the cost of manufacturing or 
                maintaining Department of Defense products at the 
                facility.
                    ``(D) Preservation of skills or equipment related to 
                a core competency of the facility.

[[Page 118 STAT. 1860]]

            ``(4) The non-Army entity agrees to hold harmless and 
        indemnify the United States from any liability or claim for 
        damages or injury to any person or property arising out of the 
        activity, including any damages or injury arising out of a 
        decision by the Secretary of the Army or the Secretary of 
        Defense to suspend or terminate an activity, or any portion 
        thereof, during a war or national emergency or to require the 
        facility to perform other work or provide other services on a 
        priority basis, except--
                    ``(A) in any case of willful misconduct or gross 
                negligence; and
                    ``(B) in the case of a claim by a purchaser of 
                articles or services under this section that damages or 
                injury arose from the failure of the United States to 
                comply with quality, schedule, or cost performance 
                requirements in the contract to carry out the activity.

    ``(d) Arangement Methods and Authorities.--To establish a 
cooperative arrangement under subsection (a) with a non-Army entity, the 
approval authority described in subsection (e) for an Army industrial 
facility may--
            ``(1) enter into a firm, fixed-price contract (or, if agreed 
        to by the non-Army entity, a cost reimbursement contract) for a 
        sale of articles or services or use of equipment or facilities;
            ``(2) enter into a multiyear contract for a period not to 
        exceed five years, unless a longer period is specifically 
        authorized by law;
            ``(3) charge the non-Army entity the amounts necessary to 
        recover the full costs of the articles or services provided, 
        including capital improvement costs, and equipment depreciation 
        costs associated with providing the articles, services, 
        equipment, or facilities;
            ``(4) authorize the non-Army entity to use incremental 
        funding to pay for the articles, services, or use of equipment 
        or facilities; and
            ``(5) accept payment-in-kind.

    ``(e) Approval Authority.--The authority of an Army industrial 
facility to enter into a cooperative arrangement under subsection (a) 
shall be exercised at the level of the commander of the major 
subordinate command of the Army that has responsibility for the 
facility. The commander may approve such an arrangement on a case-by-
case basis or a class basis.
    ``(f) Commercial Sales.--Except in the case of work performed for 
the Department of Defense, for a contract of the Department of Defense, 
for foreign military sales, or for authorized foreign direct commercial 
sales (defense articles or defense services sold to a foreign government 
or international organization under export controls), a sale of articles 
or services may be made under this section only if the approval 
authority described in subsection (e) determines that the articles or 
services are not available from a commercial source located in the 
United States in the required quantity or quality, or within the time 
required.
    ``(g) Exclusion From Depot-Level Maintenance and Repair Percentage 
Limitation.--Amounts expended for the performance of a depot-level 
maintenance and repair workload by non-Federal Government personnel at 
an Army industrial facility shall not be counted for purposes of 
applying the percentage limitation in section 2466(a) of this title if 
the personnel are provided by a

[[Page 118 STAT. 1861]]

non-Army entity pursuant to a cooperative arrangement entered into under 
subsection (a).
    ``(h) Relationship to Other Laws.--Nothing in this section shall be 
construed to affect the application of--
            ``(1) foreign military sales and the export controls 
        provided for in sections 30 and 38 of the Arms Export Control 
        Act (22 U.S.C. 2770 and 2778) to activities of a cooperative 
        arrangement entered into under subsection (a); and
            ``(2) section 2667 of this title to leases of non-excess 
        property in the administration of such an arrangement.

    ``(i) Definitions.--In this section:
            ``(1) The term `Army industrial facility' includes an 
        ammunition plant, an arsenal, a depot, and a manufacturing 
        plant.
            ``(2) The term `non-Army entity' includes the following:
                    ``(A) A Federal agency (other than the Department of 
                the Army).
                    ``(B) An entity in industry or commercial sales.
                    ``(C) A State or political subdivision of a State.
                    ``(D) An institution of higher education or 
                vocational training institution.
            ``(3) The term `incremental funding' means a series of 
        partial payments that--
                    ``(A) are made as the work on manufacture or 
                articles is being performed or services are being 
                performed or equipment or facilities are used, as the 
                case may be; and
                    ``(B) result in full payment being completed as the 
                required work is being completed.
            ``(4) The term `full costs', with respect to articles or 
        services provided under a cooperative arrangement entered into 
        under subsection (a), means the variable costs and the fixed 
        costs that are directly related to the production of the 
        articles or the provision of the services.
            ``(5) The term `variable costs' means the costs that are 
        expected to fluctuate directly with the volume of sales or 
        services provided or the use of equipment or facilities.

    ``(j) Expiration of Authority.--The authority to enter into a 
cooperative arrangement under subsection (a) expires September 30, 2009, 
and arrangements entered into under such subsection shall terminate not 
later than that date.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

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

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

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

[[Page 118 STAT. 1862]]

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

              Subtitle C--Authorizations of Appropriations

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

                        Subtitle A--Active Forces

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

    (a) In General.--The Armed Forces are authorized strengths for 
active duty personnel as of September 30, 2005, as follows:
            (1) The Army, 502,400.
            (2) The Navy, 365,900.
            (3) The Marine Corps, 178,000.
            (4) The Air Force, 359,700.

    (b) Limitation.--(1) The authorized strength for the Army provided 
in paragraph (1) of subsection (a) for active duty personnel for fiscal 
year 2005 is subject to the condition that costs of active duty 
personnel of the Army for that fiscal year in excess of 482,400 shall be 
paid out of funds authorized to be appropriated for that fiscal year for 
a contingent emergency reserve fund or as an emergency supplemental 
appropriation.
    (2) The authorized strength for the Marine Corps provided in 
paragraph (3) of subsection (a) for active duty personnel for fiscal 
year 2005 is subject to the condition that costs of active duty 
personnel of the Marine Corps for that fiscal year in excess of 175,000 
shall be paid out of funds authorized to be appropriated for that fiscal 
year for a contingent emergency reserve fund or as an emergency 
supplemental appropriation.

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

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

[[Page 118 STAT. 1863]]

SEC. 403. <<NOTE: 10 USC 115 note.>> ADDITIONAL AUTHORITY FOR INCREASES 
            OF ARMY ACTIVE DUTY PERSONNEL END STRENGTHS FOR FISCAL YEARS 
            2005 THROUGH 2009.

    (a) Authority.--During fiscal years 2005 through 2009, the Secretary 
of Defense is authorized to increase by up to 30,000 the end strength 
authorized for the Army, and by up to 9,000 the end strength authorized 
for the Marine Corps, above the levels authorized for those services in 
the National Defense Authorization Act for Fiscal Year 2004, as 
necessary--
                    (1) to support the operational mission of the Army 
                and Marine Corps in Iraq and Afghanistan; and
                    (2) with respect to end strengths for the Army, to 
                achieve transformational reorganization objectives of 
                the Army, including objectives for increased numbers of 
                combat brigades, unit manning, force stabilization and 
                shaping, and rebalancing of the active and reserve 
                component forces of the Army.

    (b) Relationship to Presidential Waiver Authority.--Nothing in this 
section shall be construed to limit the President's authority under 
section 123a of title 10, United States Code, to waive any statutory end 
strength in a time of war or national emergency.
    (c) Relationship to Other Variance Authority.--The authority under 
subsection (a) is in addition to the authority to vary authorized end 
strengths that is provided in subsections (e) and (f) of section 115 of 
title 10, United States Code.
    (d) Budget Treatment.--(1) If the Secretary of Defense plans to 
increase the Army or Marine Corps active duty end strength for a fiscal 
year under subsection (a) of this section or pursuant to a suspension of 
end-strength limitation under section 123a of title 10, United States 
Code, then the budget for the Department of Defense for such fiscal year 
as submitted to Congress shall specify the amounts necessary for funding 
the active duty end strength of the Army in excess of 482,400 and the 
Marine Corps in excess of 175,000 (the end strengths authorized for 
active duty personnel of the Army and Marine Corps, respectively, for 
fiscal year 2004 in paragraphs (1) and (3) of section 401 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136; 117 Stat. 1450)).
    (2) If the amount proposed for the Department of Defense for fiscal 
year 2006 within budget function 050 (National Defense) includes amounts 
necessary for funding an active duty end strength of the Army in excess 
of 482,400, or an active duty end strength of the Marine Corps in excess 
of 175,000, for that fiscal year, the specification of amounts necessary 
for funding such end strength (as required under paragraph (1)) shall 
include the following additional information:
            (A) A display of the following amounts:
                    (i) The amount that is to be funded out of the 
                amounts proposed for the Department of Defense within 
                budget function 050 (National Defense) other than out of 
                amounts for the Army and Marine Corps.
                    (ii) The amount that is to be funded out of the 
                amounts proposed for the Army and Marine Corps within 
                budget function 050 (National Defense).

[[Page 118 STAT. 1864]]

                    (iii) The estimated amounts that are to be funded 
                out of emergency reserve funds and supplemental 
                appropriations for fiscal year 2006.
            (B) A detailed justification for reliance on each funding 
        source described in subparagraph (A).
            (C) A detailed discussion of which programs and plans of the 
        Army and Marine Corps funded in the proposed budget for fiscal 
        year 2006 must be modified if the funding sources relied on, as 
        presented under subparagraph (A), must be changed.
            (D) The projected Army and Marine Corps active duty end 
        strengths for each of fiscal years 2006 through 2010, together 
        with a detailed enumeration of the component costs of the 
        projected end strengths for each such fiscal year.

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

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

                       Subtitle B--Reserve Forces

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

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
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

[[Page 118 STAT. 1865]]

strengths of such units and by the total number of such individual 
members.

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

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

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

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

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

    (a) Limitations.--(1) Within the limitation provided in section 
10217(c)(2) of title 10, United States Code, the number of non-dual 
status technicians employed by the National Guard as of September 30, 
2005, may not exceed the following:
            (A) For the Army National Guard of the United States, 1,600.
            (B) For the Air National Guard of the United States, 350.

    (2) The number of non-dual status technicians employed by the Army 
Reserve as of September 30, 2005, may not exceed 795.
    (3) The number of non-dual status technicians employed by the Air 
Force Reserve as of September 30, 2005, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given that term in 
section 10217(a) of title 10, United States Code.

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

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

[[Page 118 STAT. 1866]]

            (5) The Air National Guard of the United States, 10,100.
            (6) The Air Force Reserve, 3,600.

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

    (a) Strength Authorizations.--Section 115 of title 10, United States 
Code, is amended--
            (1) in subsection (a)(1)(A), by inserting ``unless on active 
        duty pursuant to subsection (b)'' after ``active-duty 
        personnel'';
            (2) in subsection (a)(1)(B), by inserting ``unless on active 
        duty or full-time National Guard duty pursuant to subsection 
        (b)'' after ``reserve personnel'';
            (3) by redesignating subsections (b), (c), (d), (e), (f), 
        (g) and (h) as subsections (c), (d), (e), (f), (g), (h) and (i), 
        respectively; and
            (4) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Certain Reserves on Active Duty To Be Authorized by Law.--(1) 
Congress shall annually authorize the maximum number of members of a 
reserve component permitted to be on active duty or full-time National 
Guard duty at any given time who are called or ordered to--
            ``(A) active duty under section 12301(d) of this title for 
        the purpose of providing operational support, as prescribed in 
        regulation issued by the Secretary of Defense;
            ``(B) full-time National Guard duty under section 502(f)(2) 
        of title 32 for the purpose of providing operational support 
        when authorized by the Secretary of Defense;
            ``(C) active duty under section 12301(d) of this title or 
        full-time National Guard duty under section 502(f)(2) of title 
        32 for the purpose of preparing for and performing funeral 
        honors functions for funerals of veterans under section 1491 of 
        this title;
            ``(D) active duty or retained on active duty under sections 
        12301(g) of this title while in a captive status; or
            ``(E) active duty or retained on active duty under 12301(h) 
        or 12322 of this title for the purpose of medical evaluation or 
        treatment.

    ``(2) A member of a reserve component who exceeds either of the 
following limits shall be included in the strength authorized under 
subparagraph (A) or subparagraph (B), as appropriate, of subsection 
(a)(1):
            ``(A) A call or order to active duty or full-time National 
        Guard duty that specifies a period greater than three years.
            ``(B) The cumulative periods of active duty and full-time 
        National Guard duty performed by the member exceed 1095 days in 
        the previous 1460 days.

    ``(3) In determining the period of active service under paragraph 
(2), the following periods of active service performed by a member shall 
not be included:
            ``(A) All periods of active duty performed by a member who 
        has not previously served in the Selected Reserve of the Ready 
        Reserve.
            ``(B) All periods of active duty or full-time National Guard 
        duty for which the member is exempt from strength accounting 
        under paragraphs (1) through (8) of subsection (i).''.

[[Page 118 STAT. 1867]]

    (b) Limitation on Appropriations.--Subsection (c) of such section 
(as redesignated by subsection (a)(3)) is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; or''; and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the use of reserve component personnel to perform 
        active duty or full-time National Guard duty under subsection 
        (b) unless the strength for such personnel for that reserve 
        component for that fiscal year has been authorized by law.''.

    (c) Authority for Secretary of Defense Variances in Maximum 
Strengths.--Subsection (f) of such section (as redesignated by 
subsection (a)(3)) is amended--
            (1) by striking ``End'' in the heading;
            (2) by striking ``and'' at the end of paragraph (2);
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) increase the maximum strength authorized pursuant to 
        subsection (b)(1) for a fiscal year for certain reserves on 
        active duty for any of the reserve components by a number equal 
        to not more than 10 percent of that strength.''.

    (d) Conforming Amendments to Section 115.--Such section is further 
amended as follows:
            (1) Subsection (e) (as redesignated by subsection (a)(3)) is 
        amended--
                    (A) in paragraph (1), by striking ``subsection (a) 
                or (c)'' and inserting ``subsection (a) or (d)''; and
                    (B) in paragraph (2)--
                          (i) by striking ``subsections (a) and (c)''; 
                      and inserting ``subsections (a) and (d)''; and
                          (ii) by striking ``pursuant to subsection (e)) 
                      and subsection (c)'' and inserting ``pursuant to 
                      subsection (f)) and subsection (d)'' each place it 
                      appears.
            (2) Subsection (g) (as redesignated by subsection (a)(3)) is 
        amended by striking ``subsection (e)(1)'' in paragraph (2) and 
        inserting ``subsection (f)(1)''.
            (3) Subsection (i) (as redesignated by subsection (a)(3)) is 
        amended to read as follows:

    ``(i) Certain Personnel Excluded From Counting for Active-Duty End 
Strengths.--In counting personnel for the purpose of the end strengths 
authorized pursuant to subsection (a)(1), persons in the following 
categories shall be excluded:
            ``(1) Members of a reserve component ordered to active duty 
        under section 12301(a) of this title.
            ``(2) Members of a reserve component in an active status 
        ordered to active duty under section 12301(b) of this title.
            ``(3) Members of the Ready Reserve ordered to active duty 
        under section 12302 of this title.
            ``(4) Members of the Selected Reserve of the Ready Reserve 
        or members of the Individual Ready Reserve mobilization category 
        described in section 10144(b) of this title ordered to active 
        duty under section 12304 of this title.
            ``(5) Members of the National Guard called into Federal 
        service under section 12406 of this title.

[[Page 118 STAT. 1868]]

            ``(6) Members of the militia called into Federal service 
        under chapter 15 of this title.
            ``(7) Members of the National Guard on full-time National 
        Guard duty under section 502(f)(1) of title 32.
            ``(8) Members of reserve components on active duty for 
        training or full-time National Guard duty for training.
            ``(9) Members of the Selected Reserve of the Ready Reserve 
        on active duty to support programs described in section 1203(b) 
        of the Cooperative Threat Reduction Act of 1993 (22 U.S.C. 
        5952(b)).
            ``(10) Members of the National Guard on active duty or full-
        time National Guard duty for the purpose of carrying out drug 
        interdiction and counter-drug activities under section 112 of 
        title 32.
            ``(11) Members of a reserve component on active duty under 
        section 10(b)(2) of the Military Selective Service Act (50 
        U.S.C. App. 460(b)(2)) for the administration of the Selective 
        Service System.
            ``(12) Members of the National Guard on full-time National 
        Guard duty for the purpose of providing command, administrative, 
        training, or support services for the National Guard Challenge 
        Program authorized by section 509 of title 32.''.

    (e) Military to Military Contact Strength Accounting.--Subsection 
(f) of section 168 of such title is amended to read as follows:
    ``(f) Active Duty End Strengths.--A member of a reserve component 
who is engaged in activities authorized under this section shall not be 
counted for purposes of the following personnel strength limitations:
            ``(1) The end strength for active-duty personnel authorized 
        pursuant to section 115(a)(1) of this title for the fiscal year 
        in which the member carries out the activities referred to under 
        this section.
            ``(2) The authorized daily average for members in pay grades 
        E-8 and E-9 under section 517 of this title for the calendar 
        year in which the member carries out such activities.
            ``(3) The authorized strengths for commissioned officers 
        under section 523 of this title for the fiscal year in which the 
        member carries out such activities.''.

    (f) E-8 and E-9 Strength Accounting.--Subsection (a) of section 517 
of such title is amended by striking ``(other than for training) in 
connection with organizing, administering, recruiting, instructing, or 
training the reserve component of an armed force.'' and inserting ``as 
authorized under section 115(a)(1)(B) or 115(b) of this title, or 
excluded from counting for active duty end strengths under section 
115(i) of this title.''.
    (g) Field Grade Officer Strength Accounting.--(1) Paragraph (1) of 
section 523(b) of such title is amended to read as follows:
            (1) Reserve officers--
                    ``(A) on active duty as authorized under section 
                115(a)(1)(B) or 115(b)(1) of this title, or excluded 
                from counting for active duty end strengths under 
                section 115(i) of this title;
                    ``(B) on active duty under section 10211, 10302 
                through 10305, or 12402 of this title or under section 
                708 of title 32; or

[[Page 118 STAT. 1869]]

                    ``(C) on full-time National Guard duty.''.

    (2) Paragraph (7) of such section is amended by striking ``Reserve 
or retired officers'' and inserting ``Retired officers''.
    (h) Active Guard and Reserve Field Grade Officer Strength 
Accounting.--Paragraph (2) of section 12011(e) of such title is amended 
to read as follows:
            ``(2) Full-time National Guard duty (other than for 
        training) under section 502(f) of title 32, except for duty 
        under section 115(b)(1)(B) and (C) of this title and section 
        115(i)(9) of this title.''.

    (i) Warrant Officer Active-Duty List Exclusion.--Paragraph (1) of 
section 582 of such title is amended to read as follows:
            ``(1) Reserve warrant officers--
                    ``(A) on active duty as authorized under section 
                115(a)(1)(B) or 115(b)(1) of this title, or excluded 
                from counting for active duty end strengths under 
                section 115(i) of this title; or
                    ``(B) on full-time National Guard duty.''.

    (j) Officer Active-Duty List, Applicability of Chapter.--Paragraph 
(1) of section 641 of such title is amended to read as follows:
            ``(1) Reserve officers--
                    ``(A) on active duty authorized under section 
                115(a)(1)(B) or 115(b)(1) of this title, or excluded 
                from counting for active duty end strengths under 
                section 115(i) of this title;
                    ``(B) on active duty under section 3038, 5143, 5144, 
                8038, 10211, 10301 through 10305, 10502, 10505, 
                10506(a), 10506(b), 10507, or 12402 of this title or 
                section 708 of title 32; or
                    ``(C) on full-time National Guard duty.''.

    (k) Strength Accounting for Members Performing Drug Interdiction and 
Counter-Drug Activities.--Section 112 of title 32, United States Code, 
is amended--
            (1) by striking subsection (e);
            (2) by redesignating subsections (f), (g), (h) and (i) as 
        subsections (e), (f), (g) and (h) respectively; and
            (3) in paragraph (1) of subsection (e), as redesignated by 
        paragraph (2), by striking ``for a period of more than 180 
        days'' each place it appears.

    (l) Report.--Not later than June 1, 2005, the Secretary of Defense 
shall report to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives the 
Secretary's recommendations regarding the exemptions provided in 
paragraphs (8) through (11) by section 115(i) of title 10, United States 
Code, as amended by this section. The recommendations shall address the 
manner in personnel covered by those exemptions shall be accounted for 
in authorizations provided by section 115 of such title. The objective 
of the analysis should be to terminate the need for such exemptions 
after September 30, 2006.
    (m) <<NOTE: 10 USC 115 note.>> 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).

[[Page 118 STAT. 1870]]

              Subtitle C--Authorizations of Appropriations

SEC. 421. MILITARY PERSONNEL.

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

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

              Subtitle B--Reserve Component Policy Matters

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

             Subtitle C--Reserve Component Personnel Matters

Sec. 521. Status under disability retirement system for reserve members 
           released from active duty due to inability to perform within 
           30 days of call to active duty.
Sec. 522. Requirement for retention of Reserves on active duty to 
           qualify for retired pay not applicable to nonregular service 
           retirement system.
Sec. 523. Federal civil service military leave for Reserve and National 
           Guard civilian technicians.
Sec. 524. Expanded educational assistance authority for officers 
           commissioned through ROTC program at military junior 
           colleges.
Sec. 525. Repeal of sunset provision for financial assistance program 
           for students not eligible for advanced training.

[[Page 118 STAT. 1871]]

Sec. 526. Effect of appointment or commission as officer on eligibility 
           for Selected Reserve education loan repayment program for 
           enlisted members.
Sec. 527. Educational assistance for certain reserve component members 
           who perform active service.
Sec. 528. Sense of Congress on guidance concerning treatment of 
           employer-provided compensation and other benefits voluntarily 
           provided to employees who are activated Reservists.

Subtitle D--Joint Officer Management and Professional Military Education

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

                 Subtitle E--Military Service Academies

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

            Subtitle F--Other Education and Training Matters

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

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

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

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

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

                       Subtitle I--Military Voting

Sec. 566. Federal write-in ballots for absentee military voters located 
           in the United States.
Sec. 567. Repeal of requirement to conduct electronic voting 
           demonstration project for the Federal election to be held in 
           November 2004.

[[Page 118 STAT. 1872]]

Sec. 568. Reports on operation of Federal voting assistance program and 
           military postal system.

                  Subtitle J--Military Justice Matters

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

             Subtitle K--Sexual Assault in the Armed Forces

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

            Subtitle L--Management and Administrative Matters

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

                        Subtitle M--Other Matters

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

                  Subtitle A--Officer Personnel Policy

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

    (a) Original Appointments as Commissioned Officers.--(1) Section 532 
of title 10, United States Code, is amended by striking subsection (e).
    (2) Subsection (a)(2) of such section is amended by striking 
``fifty-fifth birthday'' and inserting ``sixty-second birthday''.
    (3)(A) Such section is further amended by adding at the end the 
following new subsection:

[[Page 118 STAT. 1873]]

    ``(f) The Secretary of Defense may waive the requirement of 
paragraph (1) of subsection (a) with respect to a person who has been 
lawfully admitted to the United States for permanent residence when the 
Secretary determines that the national security so requires, but only 
for an original appointment in a grade below the grade of major or 
lieutenant commander.''.
    (B) Section 619(d) of such title is amended by adding at the end the 
following new paragraph:
            ``(5) An officer in the grade of captain or, in the case of 
        the Navy, lieutenant who is not a citizen of the United 
        States.''.

    (4) Section 531(a) of such title is amended to read as follows:
    ``(a)(1) Original appointments in the grades of second lieutenant, 
first lieutenant, and captain in the Regular Army, Regular Air Force, 
and Regular Marine Corps and in the grades of ensign, lieutenant (junior 
grade), and lieutenant in the Regular Navy shall be made by the 
President alone.
    ``(2) Original appointments in the grades of major, lieutenant 
colonel, and colonel in the Regular Army, Regular Air Force, and Regular 
Marine Corps and in the grades of lieutenant commander, commander, and 
captain in the Regular Navy shall be made by the President, by and with 
the advice and consent of the Senate.''.
    (b) Repeal of Total Strength Limitations for Active-Duty Regular 
Commissioned Officers.--(1) Section 522 of such title is repealed.
    (2) The table of sections at the beginning of chapter 32 of such 
title is amended by striking the item relating to section 522.
    (c) Force Shaping Authority.--(1)(A) Subchapter V of chapter 36 of 
such title is amended by adding at the end the following new section:

``Sec. 647. Force shaping authority

    ``(a) Authority.--The Secretary concerned may, solely for the 
purpose of restructuring an armed force under the jurisdiction of that 
Secretary--
            ``(1) discharge an officer described in subsection (b); or
            ``(2) transfer such an officer from the active-duty list of 
        that armed force to the reserve active-status list of a reserve 
        component of that armed force.

    ``(b) Covered Officers.--(1) The authority under this section may be 
exercised in the case of an officer who--
            ``(A) has completed not more than 5 years of service as a 
        commissioned officer in the armed forces; or
            ``(B) has completed more than 5 years of service as a 
        commissioned officer in the armed forces, but has not completed 
        a minimum service obligation applicable to that member.

    ``(2) In this subsection, the term `minimum service obligation' 
means the initial period of required active duty service together with 
any additional period of required active duty service incurred during 
the initial period of required active duty service.
    ``(c) Appointment of Transferred Officers.--An officer of the 
Regular Army, Regular Air Force, Regular Navy, or Regular Marine Corps 
who is transferred to a reserve active-status list under this section 
shall be discharged from the regular component concerned and appointed 
as a reserve commissioned officer under section 12203 of this title.

[[Page 118 STAT. 1874]]

    ``(d) Regulations.--The Secretary concerned shall prescribe 
regulations for the exercise of the Secretary's authority under this 
section.''.
    (B) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``647. Force shaping authority.''.

    (2) Section 1174(e)(2)(B) of such title is amended by inserting 
after ``obligated service'' the following: ``, unless the member is an 
officer discharged or released under the authority of section 647 of 
this title''.
    (3) Section 12201(a) of such title is amended--
            (A) by inserting ``(1)'' after ``(a)'';
            (B) in the first sentence, by inserting ``, except as 
        provided in paragraph (2),'' after ``the armed force concerned 
        and''; and
            (C) by adding at the end the following new paragraph:

    ``(2) An officer transferred from the active-duty list of an armed 
force to a reserve active-status list of an armed force under section 
647 of this title is not required to subscribe to the oath referred to 
in paragraph (1) in order to qualify for an appointment under that 
paragraph.''.
    (4) Section 12203 of such title is amended--
            (A) by redesignating subsection (b) as subsection (c); and
            (B) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Subject to the authority, direction, and control of the 
President, the Secretary concerned may appoint as a reserve commissioned 
officer any regular officer transferred from the active-duty list of an 
armed force to the reserve active-status list of a reserve component 
under section 647 of this title, notwithstanding the requirements of 
subsection (a).''.
    (5) Section 531 of such title is amended by adding at the end the 
following new subsection:
    ``(c) Subject to the authority, direction, and control of the 
President, an original appointment as a commissioned officer in the 
Regular Army, Regular Air Force, Regular Navy, or Regular Marine Corps 
may be made by the Secretary concerned in the case of a reserve 
commissioned officer upon the transfer of such officer from the reserve 
active-status list of a reserve component of the armed forces to the 
active-duty list of an armed force, notwithstanding the requirements of 
subsection (a).''.
    (d) Active-Duty Ready Reserve Officers Not on Active-Duty List.--
Section 641(1)(F) of such title is amended by striking ``section 12304'' 
and inserting ``sections 12302 and 12304''.
    (e) All Regular Officer Appointments for Students of the University 
of Health Sciences.--Section 2114(b) of such title is amended by 
striking ``Notwithstanding any other provision of law, they shall 
serve'' in the second sentence and all that follows through ``if 
qualified,'' in the third sentence and inserting ``They shall be 
appointed as regular officers in the grade of second lieutenant or 
ensign and shall serve on active duty in that grade. Upon graduation 
they shall be required to serve on active duty''.
    (f) Termination of Requirement of 6 Years Service in a Reserve 
Component for Nonregular Service Retirement Eligibility.--Section 
12731(a)(3) of such title is amended by inserting after ``(3)'' the 
following: ``in the case of a person who completed the service 
requirements of paragraph (2) before the

[[Page 118 STAT. 1875]]

end of the 180-day period beginning on the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2005,''.
    (g) <<NOTE: 10 USC 531 note.>> Effective Date.--(1) Except as 
provided in paragraph (2), the amendments made by this section shall 
take effect on the first day of the first month beginning more than 180 
days after the date of the enactment of this Act.

    (2) The amendment made by subsection (a)(1) shall take effect on May 
1, 2005.

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

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

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

    Section 777(d) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (2) by striking ``(d) Limitation on Number of Officers 
        Frocked to Specified Grades.--'' and inserting the following:

    ``(d) Limitation on Number of Officers Frocked to Specified 
Grades.--(1) The total number of brigadier generals and Navy rear 
admirals (lower half) on the active-duty list who are authorized as 
described in subsection (a) to wear the insignia for the grade of major 
general or rear admiral, as the case may be, may not exceed 30.''.

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

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

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

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

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

[[Page 118 STAT. 1876]]

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

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

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

    (a) Designation of Senior Officer in National Guard Bureau.--Section 
10502 of title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(e) Succession.--(1) Unless otherwise directed by the President or 
the Secretary of Defense, the senior of the two officers specified in 
paragraph (2) shall serve as the acting Chief of the National Guard 
Bureau during any period that--
            ``(A) there is a vacancy in the position of Chief of the 
        National Guard Bureau; or
            ``(B) the Chief is unable to perform the duties of that 
        office.

    ``(2) The officers specified in this paragraph are the following:
            ``(A) The senior officer of the Army National Guard of the 
        United States on duty with the National Guard Bureau.
            ``(B) The senior officer of the Air National Guard of the 
        United States on duty with the National Guard Bureau.''.

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

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

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

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

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

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

    (a) Redesignation of Position.--Subsection (a)(1) of section 10505 
of title 10, United States Code, is amended by striking ``Vice Chief of 
the National Guard Bureau'' and inserting ``Director of the Joint Staff 
of the National Guard Bureau''.

[[Page 118 STAT. 1877]]

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

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

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

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

    (d) <<NOTE: 10 USC 10505 note.>> Other References.--Any reference in 
any law, regulation, document, paper, or other record of the United 
States to the Vice Chief of the National Guard Bureau shall be deemed to 
be a reference to the Director of the Joint Staff of the National Guard 
Bureau.

              Subtitle B--Reserve Component Policy Matters

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

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

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

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

                ``CHAPTER 9--HOMELAND DEFENSE ACTIVITIES

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


[[Page 118 STAT. 1878]]



``Sec. 901. Definitions

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

``Sec. 902. Homeland defense activities: funds

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

``Sec. 903. Regulations

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

``Sec. 904. Homeland defense duty

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

[[Page 118 STAT. 1879]]

            ``(2) The performance of the activities is not to degrade 
        the military skills of the members of the National Guard 
        performing those activities.

``Sec. 905. Funding assistance

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

``Sec. 906. Requests for funding assistance

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

``Sec. 907. Relationship to State duty

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

``Sec. 908. Annual report

    ``(a) Requirement for Report.--After the end of each fiscal year, 
the Secretary of Defense shall submit to the congressional defense 
committees a report regarding any assistance provided and activities 
carried out under this chapter during that fiscal year. The report for a 
fiscal year shall be submitted not later than March 31 of the year 
following the year in which such fiscal year ended.
    ``(b) Content.--The report for a fiscal year shall include the 
following matters:
            ``(1) The numbers of members of the National Guard excluded 
        under subsection (i) of section 115 of title 10 from being 
        counted for the purpose of end-strengths authorized pursuant to 
        subsection (a)(1) of such section.

[[Page 118 STAT. 1880]]

            ``(2) A description of the homeland defense activities 
        conducted with funds provided under this chapter.
            ``(3) An accounting of the amount of the funds provided to 
        each State.
            ``(4) A description of the effect on military training and 
        readiness of using units and personnel of the National Guard to 
        perform homeland defense activities under this chapter.''.

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

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

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

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

    (a) Establishment.--There is established a commission to be known as 
the ``Commission on the National Guard and Reserves''.
    (b) Composition.--(1) The Commission shall be composed of 13 members 
appointed as follows:
            (A) Three members appointed by the chairman of the Committee 
        on Armed Services of the Senate.
            (B) Three members appointed by the chairman of the Committee 
        on Armed Services of the House of Representatives.
            (C) Two members appointed by the ranking minority member of 
        the Committee on Armed Services of the Senate.
            (D) Two members appointed by the ranking minority member of 
        the Committee on Armed Service of the House of Representatives.
            (E) Three members appointed by the Secretary of Defense.

    (2) The members of the Commission shall be appointed from among 
persons who have knowledge and expertise in the following areas:
            (A) National security.
            (B) Roles and missions of any of the Armed Forces.
            (C) The mission, operations, and organization of the 
        National Guard of the United States.
            (D) The mission, operations, and organization of the other 
        reserve components of the Armed Forces.
            (E) Military readiness of the Armed Forces.
            (F) Personnel pay and other forms of compensation.
            (G) Other personnel benefits, including health care.

    (3) Members of the Commission shall be appointed for the life of the 
Commission. A vacancy in the membership of the Commission shall not 
affect the powers of the Commission, but shall be filled in the same 
manner as the original appointment.
    (4) The Secretary of Defense shall designate a member of the 
Commission to be chairman of the Commission.
    (c) Duties.--(1) The Commission shall carry out a study of the 
following matters:
            (A) The roles and missions of the National Guard and the 
        other reserve components of the Armed Forces.

[[Page 118 STAT. 1881]]

            (B) The compensation and other benefits, including health 
        care benefits, that are provided for members of the reserve 
        components under the laws of the United States.

    (2) In carrying out the study under paragraph (1), the Commission 
shall do the following:
            (A) Assess the current roles and missions of the reserve 
        components and identify appropriate potential future roles and 
        missions for the reserve components.
            (B) Assess the capabilities of the reserve components and 
        determine how the units and personnel of the reserve components 
        may be best used to support the military operations of the Armed 
        Forces and the achievement of national security objectives, 
        including homeland defense, of the United States.
            (C) Assess the Department of Defense plan for implementation 
        of section 115(b) of title 10, United States Code, as added by 
        section 404(a)(4).
            (D) Assess--
                    (i) the current organization and structure of the 
                National Guard and the other reserve components; and
                    (ii) the plans of the Department of Defense and the 
                Armed Forces for future organization and structure of 
                the National Guard and the other reserve components.
            (E) Assess the manner in which the National Guard and the 
        other reserve components are currently organized and funded for 
        training and identify an organizational and funding structure 
        for training that best supports the achievement of training 
        objectives and operational readiness.
            (F) Assess the effectiveness of the policies and programs of 
        the National Guard and the other reserve components for 
        achieving operational readiness and personnel readiness, 
        including medical and personal readiness.
            (G) Assess--
                    (i) the adequacy and appropriateness of the 
                compensation and benefits currently provided for the 
                members of the National Guard and the other reserve 
                components, including the availability of health care 
                benefits and health insurance; and
                    (ii) the effects of proposed changes in compensation 
                and benefits on military careers in both the regular and 
                the reserve components of the Armed Forces.
            (H) Identify various feasible options for improving the 
        compensation and other benefits available to the members of the 
        National Guard and the members of the other reserve components 
        and assess--
                    (i) the cost-effectiveness of such options; and
                    (ii) the foreseeable effects of such options on 
                readiness, recruitment, and retention of personnel for 
                careers in the regular and reserve components the Armed 
                Forces.
            (I) Assess the traditional military career paths for members 
        of the National Guard and the other reserve components and 
        identify alternative career paths that could enhance 
        professional development.
            (J) Assess the adequacy of the funding provided for the 
        National Guard and the other reserve components for several 
        previous fiscal years, including the funding provided for 
        National Guard and reserve component equipment and the

[[Page 118 STAT. 1882]]

        funding provided for National Guard and other reserve component 
        personnel in active duty military personnel accounts and reserve 
        military personnel accounts.

    (d) <<NOTE: Deadline.>> First Meeting.--The Commission shall hold 
its first meeting not later than 30 days after the date on which all 
members of the Commission have been appointed.

    (e) Administrative and Procedural Authorities.--(1) Sections 955, 
956, 957 (other than subsection (f)), 958, and 959 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 
U.S.C 111 note) shall apply to the Commission, except that in applying 
section 957(a) of such Act to the Commission, ``level IV of the 
Executive Schedule'' shall be substituted for ``level V of the Executive 
Schedule''.
    (2) The following provisions of law do not apply to the Commission:
            (A) Section 3161 of title 5, United States Code.
            (B) The Federal Advisory Committee Act (5 U.S.C. App.).

    (f) Reports.--(1) Not later than three months after the first 
meeting of the Commission, the Commission shall submit to the Committees 
on Armed Services of the Senate and the House of Representatives a 
report setting forth--
            (A) a strategic plan for the work of the Commission;
            (B) a discussion of the activities of the Commission; and
            (C) any initial findings of the Commission.

    (2) Not later than one year after the first meeting of the 
Commission, the Commission shall submit a final report to the committees 
of Congress referred to in paragraph (1) and to the Secretary of 
Defense. The final report shall include any recommendations that the 
Commission determines appropriate, including any recommended 
legislation, policies, regulations, directives, and practices.
    (g) Termination.--The Commission shall terminate 90 days after the 
date on which the final report is submitted under subsection (f)(2).
    (h) <<NOTE: 10 USC 10101 note.>> Annual Review.--(1) The Secretary 
of Defense shall annually review the reserve components of the Armed 
Forces with regard to--
            (A) the roles and missions of the reserve components; and
            (B) the compensation and other benefits, including health 
        care benefits, that are provided for members of the reserve 
        components under the laws of the United States.

    (2) The Secretary shall submit a report of the annual review, 
together with any comments and recommendations that the Secretary 
considers appropriate, to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives.
    (3) The first review under paragraph (1) shall take place during 
fiscal year 2006.

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

    (a) General Authority To Order Reserves to Active Duty.--Section 
12301 of title 10, United States Code, is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``(other than for training)'';
            (2) in subsection (c)--

[[Page 118 STAT. 1883]]

                    (A) in the first sentence, by striking ``(other than 
                for training)'' and inserting ``as provided in 
                subsection (a)''; and
                    (B) in the second sentence, by striking ``ordered to 
                active duty (other than for training)'' and inserting 
                ``so ordered to active duty''; and
            (3) in subsection (e), by striking ``(other than for 
        training)'' and inserting ``as provided in subsection (a)''.

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

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

    (a) Change in Minimum Number Required to be Assigned.--Section 
414(c)(1) of the National Defense Authorization Act for Fiscal Years 
1992 and 1993 (10 U.S.C. 12001 note) is amended by striking ``5,000'' 
and inserting ``3,500''.
    (b) <<NOTE: 10 USC 12001 note.>> 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

[[Page 118 STAT. 1884]]

        order to meet emerging training requirements in the Army reserve 
        components in connection with unit and force structure 
        conversions and preparations for wartime deployment.
            (3) The nature and effectiveness of efforts by the Army to 
        reallocate the 3,500 personnel assigned as active component 
        Reserve support personnel to higher priority requirements and to 
        expand the use of reservists on active duty to meet reserve 
        component training needs.
            (4) Whether the Army is planning further reductions in the 
        number of active component Reserve support personnel and, if so, 
        the scope and rationale for those reductions.
            (5) Whether an increase in Army reserve component full-time 
        support personnel will be required to replace the loss of active 
        component Reserve support personnel.

    (d) Definition.--In this section, the term ``active component 
Reserve support personnel'' means the active component Army personnel 
assigned as advisers to units of the Selected Reserve of the Ready 
Reserve of the Army pursuant to section 414 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note).

SEC. 516. AUTHORITY TO ACCEPT CERTAIN VOLUNTARY SERVICES.

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

SEC. 517. <<NOTE: 10 USC 10101 note.>> AUTHORITY TO REDESIGNATE THE 
            NAVAL RESERVE AS THE NAVY RESERVE.

    (a) Authority of Secretary of the Navy.--The Secretary of the Navy 
may, with the approval of the President, redesignate the reserve 
component known as the Naval Reserve as the ``Navy 
Reserve''. <<NOTE: Effective date.>> Any such redesignation shall be 
effective on a date specified by the Secretary, which date may not be 
earlier than the date that is 180 days after the date on which the 
Secretary submits recommended legislation under subsection (c).

    (b) <<NOTE: Federal Register, publication.>> Publication of 
Redesignation.--If the Secretary of the Navy exercises the authority to 
redesignate the Naval Reserve under subsection (a), the Secretary shall 
promptly publish in the Federal Register and submit to the Congress 
notice of the redesignation, including the effective date of the 
redesignation.

    (c) Conforming Legislation.--If the Secretary of the Navy exercises 
the authority to redesignate the Naval Reserve under subsection (a), the 
Secretary shall submit to the Congress recommended legislation that 
identifies each specific provision of law that refers to the Naval 
Reserve and sets forth an amendment to that specific provision of law to 
conform the reference to the new designation.
    (d) References.--If the Secretary of the Navy exercises the 
authority to redesignate the Naval Reserve under subsection (a), then on 
and after the effective date of the redesignation, any reference in any 
law, map, regulation, document, paper, or other record of the United 
States to the Naval Reserve shall be deemed to be a reference to the 
Navy Reserve.

[[Page 118 STAT. 1885]]

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

    (a) Assessment.--The Comptroller General shall review the plan of 
the Secretary of the Navy for, and implementation by the Secretary of, 
initiatives undertaken within the Navy to improve the integration of the 
active and reserve components of the Navy in peacetime and wartime 
operations resulting from--
            (1) the Naval Reserve Redesign Study carried out by the 
        Navy; and
            (2) the zero-based review of reserve component force 
        structure undertaken by the commander of the Fleet Forces 
        Command of the Navy during fiscal year 2004.

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

[[Page 118 STAT. 1886]]

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

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

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

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

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

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

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

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

[[Page 118 STAT. 1887]]

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

    ``(a) <<NOTE: Regulations.>> Expenditures for Recognition Items.--
Under regulations prescribed by the Secretary of the Army and the 
Secretary of the Air Force, funds appropriated for the Army National 
Guard or Air National Guard for the purpose of recruitment and retention 
of military personnel may be expended to procure recognition items of 
nominal or modest value for retention purposes and to present such items 
to members of the National Guard and to members of their families and 
other individuals recognized as providing support that substantially 
facilitates service in the National Guard.

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

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

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

             Subtitle C--Reserve Component Personnel Matters

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

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

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

    ``(a) Members Released From Active Duty Within 30 Days.--A member of 
a reserve component who is ordered to active duty for a period of more 
than 30 days and is released from active duty within 30 days of 
commencing such period of active duty for a reason stated in subsection 
(b) shall be considered for all

[[Page 118 STAT. 1888]]

purposes under this chapter to have been serving under an order to 
active duty for a period of 30 days or less.
    ``(b) Applicable Reasons for Release.--Subsection (a) applies in the 
case of a member released from active duty because of a failure to 
meet--
            ``(1) physical standards for retention due to a preexisting 
        condition not aggravated during the period of active duty; or
            ``(2) medical or dental standards for deployment due to a 
        preexisting condition not aggravated during the period of active 
        duty.

    ``(c) Savings Provision for Medical Care Provided While on Active 
Duty.--Notwithstanding subsection (a), any benefit under chapter 55 of 
this title received by a member described in subsection (a) or a 
dependent of such member before or during the period of active duty 
shall not be subject to recoupment or otherwise affected.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1206 the following new item:

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

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

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

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

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

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

    (a) Financial Assistance Program for Service on Active Duty.--
Section 2107(c) of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
    ``(5)(A) The <<NOTE: Regulations.>> Secretary of the Army, under 
regulations and criteria established by the Secretary, may provide an 
individual who received a commission as a Reserve officer in the Army 
from a military junior college through a program under this chapter and 
who does not have a baccalaureate degree with financial assistance for 
pursuit of a baccalaureate degree.

    ``(B) Such assistance is in addition to any financial assistance 
provided under paragraph (1), (3), or (4).
    ``(C) The agreement and reimbursement requirements established in 
section 2005 of this title are applicable to financial assistance under 
this paragraph.
    ``(D) An officer receiving financial assistance under this paragraph 
shall be attached to a unit of the Army as determined by the Secretary 
and shall be considered to be a member of the Senior Reserve Officers' 
Training Corps on inactive duty for training, as defined in section 
101(23) of title 38.

[[Page 118 STAT. 1889]]

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

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

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

[[Page 118 STAT. 1890]]

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

    Section 16301(a) of title 10, United States Code, is amended--
            (1) in paragraph (2), by striking ``The Secretary'' in the 
        first sentence and inserting ``Except as provided in paragraph 
        (3), the Secretary of Defense''; and
            (2) by adding at the end the following new paragraph:

    ``(3) In the case of a commitment made by the Secretary of Defense 
after the date of the enactment of this paragraph to repay a loan under 
paragraph (1) conditioned upon the performance by the borrower of 
service as an enlisted member under paragraph (2), the Secretary may 
repay the loan for service performed by the borrower as an officer 
(rather than as an enlisted member) in the case of a borrower who, after 
such commitment is entered into and while performing service as an 
enlisted member, accepts an appointment or commission as a warrant 
officer or commissioned officer of the Selected Reserve.''.

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

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

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

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

``Sec. 16161. Purpose

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

``Sec. 16162. Educational assistance program

    ``(a) <<NOTE: Regulations.>> Program Establishment.--The Secretary 
of each military department, under regulations prescribed by the 
Secretary of Defense, and the Secretary of Homeland Security with 
respect to the Coast Guard when it is not operating as a service in the 
Navy, shall establish and maintain a program as prescribed in this 
chapter to provide educational assistance to members of the Ready 
Reserve of the armed forces under the jurisdiction of the Secretary 
concerned.

    ``(b) Authorized Education Programs.--Educational assistance may be 
provided under this chapter for pursuit of any program of education that 
is an approved program of education for purposes of chapter 30 of title 
38.

[[Page 118 STAT. 1891]]

    ``(c) Benefit Amount.--(1) The educational assistance program 
established under subsection (a) shall provide for payment by the 
Secretary concerned, through the Secretary of Veterans Affairs, an 
educational assistance allowance to each member entitled to educational 
assistance under this chapter who is pursuing a program of education 
authorized under subsection (b).
    ``(2) The educational assistance allowance provided under this 
chapter shall be based on the applicable percent under paragraph (4) to 
the applicable rate provided under section 3015 of title 38 for a member 
whose entitlement is based on completion of an obligated period of 
active duty of three years.
    ``(3) The educational assistance allowance provided under this 
section for a person who is undertaking a program for which a reduced 
rate is specified in chapter 30 of title 38, that rate shall be further 
adjusted by the applicable percent specified in paragraph (4).
    ``(4) The adjusted educational assistance allowance under paragraph 
(2) or (3), as applicable, shall be--
            ``(A) 40 percent in the case of a member of a reserve 
        component who performed active service for 90 consecutive days 
        but less than one continuous year;
            ``(B) 60 percent in the case of a member of a reserve 
        component who performed active service for one continuous year 
        but less than two continuous years; or
            ``(C) 80 percent in the case of a member of a reserve 
        component who performed active service for two continuous years 
        or more.

    ``(d) Maximum Months of Assistance.--(1) Subject to section 3695 of 
title 38, the maximum number of months of educational assistance that 
may be provided to any member under this chapter is 36 (or the 
equivalent thereof in part-time educational assistance).
    ``(2)(A) Notwithstanding any other provision of this chapter or 
chapter 36 of title 38, any payment of an educational assistance 
allowance described in subparagraph (B) shall not--
            ``(i) be charged against the entitlement of any individual 
        under this chapter; or
            ``(ii) be counted toward the aggregate period for which 
        section 3695 of title 38 limits an individual's receipt of 
        assistance.

    ``(B) The payment of the educational assistance allowance referred 
to in subparagraph (A) is the payment of such an allowance to the 
individual for pursuit of a course or courses under this chapter if the 
Secretary of Veterans Affairs finds that the individual--
            ``(i) had to discontinue such course pursuit as a result of 
        being ordered to serve on active duty under section 12301(a), 
        12301(d), 12301(g), 12302, or 12304 of this title; and
            ``(ii) failed to receive credit or training time toward 
        completion of the individual's approved educational, 
        professional, or vocational objective as a result of having to 
        discontinue, as described in clause (i), the individual's course 
        pursuit.

    ``(C) The period for which, by reason of this subsection, an 
educational assistance allowance is not charged against entitlement or 
counted toward the applicable aggregate period under section 3695 of 
title 38 shall not exceed the portion of the period of enrollment in the 
course or courses for which the individual failed to

[[Page 118 STAT. 1892]]

receive credit or with respect to which the individual lost training 
time, as determined under subparagraph (B)(ii).

``Sec. 16163. Eligibility for educational assistance

    ``(a) Eligibility.--On or after September 11, 2001, a member of a 
reserve component is entitled to educational assistance under this 
chapter if the member--
            ``(1) served on active duty in support of a contingency 
        operation for 90 consecutive days or more; or
            ``(2) in the case of a member of the Army National Guard of 
        the United States or Air National Guard of the United States, 
        performed full time National Guard duty under section 502(f) of 
        title 32 for 90 consecutive days or more when authorized by the 
        President or Secretary of Defense for the purpose of responding 
        to a national emergency declared by the President and supported 
        by Federal funds.

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

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

    ``(a) Duration of Entitlement.--Except as provided in subsection 
(b), a member remains entitled to educational assistance under this 
chapter while serving--

[[Page 118 STAT. 1893]]

            ``(1) in the Selected Reserve of the Ready Reserve, in the 
        case of a member called or ordered to active service while 
        serving in the Selected Reserve; or
            ``(2) in the Ready Reserve, in the case of a member ordered 
        to active duty while serving in the Ready Reserve (other than 
        the Selected Reserve).

    ``(b) Duration of Entitlement for Disabled Members.--(1) In the case 
of a person who is separated from the Ready Reserve because of a 
disability which was not the result of the individual's own willful 
misconduct incurred on or after the date on which such person became 
entitled to educational assistance under this chapter, such person's 
entitlement to educational assistance expires at the end of the 10-year 
period beginning on the date on which such person became entitled to 
such assistance.
    ``(2) The <<NOTE: Applicability.>> provisions of subsections (d) and 
(f) of section 3031 of title 38 shall apply to the period of entitlement 
prescribed by paragraph (1).

``Sec. 16165. Termination of assistance

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

``Sec. 16166. Administration of program

    ``(a) Administration.--Educational assistance under this chapter 
shall be provided through the Department of Veterans Affairs, under 
agreements to be entered into by the Secretary of Defense, and by the 
Secretary of Homeland Security, with the Secretary of Veterans Affairs. 
Such agreements shall include administrative procedures to ensure the 
prompt and timely transfer of funds from the Secretary concerned to the 
Department of Veterans Affairs for the making of payments under this 
chapter.
    ``(b) Program Management.--Except as otherwise provided in this 
chapter, the provisions of sections 503, 511, 3470, 3471, 3474, 3476, 
3482(g), 3483, and 3485 of title 38 and the provisions of subchapters I 
and II of chapter 36 of such title (with the exception of sections 
3686(a), 3687, and 3692) shall be applicable to the provision of 
educational assistance under this chapter. The term `eligible veteran' 
and the term `person', as used in those provisions, shall be deemed for 
the purpose of the application of those provisions to this chapter to 
refer to a person eligible for educational assistance under this 
chapter.
    ``(c) Flight Training.--The Secretary of Veterans Affairs may 
approve the pursuit of flight training (in addition to a course of 
flight training that may be approved under section 3680A(b) of title 38) 
by an individual entitled to educational assistance under this chapter 
if--
            ``(1) such training is generally accepted as necessary for 
        the attainment of a recognized vocational objective in the field 
        of aviation;

[[Page 118 STAT. 1894]]

            ``(2) the individual possesses a valid private pilot 
        certificate and meets, on the day the member begins a course of 
        flight training, the medical requirements necessary for a 
        commercial pilot certificate; and
            ``(3) the flight school courses meet Federal Aviation 
        Administration standards for such courses and are approved by 
        the Federal Aviation Administration and the State approving 
        agency.

    ``(d) Trust Fund.--Amounts for payments for benefits under this 
chapter shall be derived from the Department of Defense Education 
Benefits Fund under section 2006 of this title.''.
    (b) Conforming Amendments.--(1) Section 2006(b) of such title is 
amended--
            (A) in paragraph (1), by striking ``chapter 1606'' and 
        inserting ``chapters 1606 and 1607, including funds provided by 
        the Secretary of Homeland Security for education liabilities for 
        the Coast Guard when it is not operating as a service in the 
        Department of the Navy''; and
            (B) in paragraph (2)(C), by striking ``for educational 
        assistance under chapter 1606'' and inserting ``(including funds 
        from the Department in which the Coast Guard is operating) for 
        educational assistance under chapters 1606 and 1607''.

    (2) Section 3695(a)(5) of title 38, United States Code, is amended 
by inserting ``1607,'' after ``1606,''.
    (c) Clerical Amendment.--The tables of chapters at the beginning of 
subtitle E of title 10, United States Code, and at the beginning of part 
IV of such subtitle, are amended by inserting after the item relating to 
chapter 1606 the following new item:

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

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

    (a) Sense of Congress.--It is the sense of Congress--
            (1) that the Secretary of the Treasury should provide 
        guidance with respect to treatment under the internal revenue 
        laws of payments made by employers to activated Reservist 
        employees under voluntary Reserve-employee differential pay 
        arrangements, benefits provided by employers to such employees, 
        and contributions by employers to employer-provided retirement 
        savings plans related thereto; and
            (2) that the guidance provided under paragraph (1) should, 
        to the extent possible within the Secretary's authority, be 
        consistent with the goal of promoting and ensuring the validity 
        of voluntary differential pay arrangements, benefits, and 
        contributions referred to in that paragraph.

    (b) Definitions.--For purposes of this section:
            (1) Voluntary reserve-employee differential pay 
        arrangement.--The term ``voluntary Reserve-employee differential 
        pay arrangement'' means an arrangement by which an employer of 
        an activated Reservist employee voluntarily agrees to pay, and 
        pays, to that employee, while on active duty, amounts equivalent 
        to the difference (or some portion of the difference) between 
        (A) the compensation of that employee paid by the employer at 
        the time of the employee's

[[Page 118 STAT. 1895]]

        activation for such active duty, and (B) that employee's 
        military compensation.
            (2) Activated reservist employee.--The term ``activated 
        Reservist employee'' means a member of a reserve component of 
        the Armed Forces who is on active duty under a call or order to 
        active duty (other than for training) and who at the time of 
        such call or order is employed in a position subject to chapter 
        43 of title 38, United States Code (referred to as the Uniformed 
        Services Employment and Reemployment Rights Act of 1994 
        (USERRA)).

Subtitle D--Joint Officer Management and Professional Military Education

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

    (a) Plan Required.--(1) The Secretary of Defense shall develop a 
strategic plan for joint officer management and joint professional 
military education that links joint officer development to the 
accomplishment of the overall missions and goals of the Department of 
Defense, as set forth in the most recent national military strategy 
under section 153(d) of title 10, United States Code. Such plan shall be 
developed for the purpose of ensuring that sufficient numbers of 
officers fully qualified in occupational specialties involving combat 
operations are available as necessary to meet the needs of the 
Department for qualified officers who are operationally effective in the 
joint environment.
    (2) The Secretary shall develop the strategic plan with the advice 
of the Chairman of the Joint Chiefs of Staff.
    (b) Matters to be Included.--As part of the strategic plan under 
subsection (a), the Secretary shall include the following:
            (1) A statement of the levels of joint officer resources 
        needed to be available to properly support the overall missions 
        of the Department of Defense, with such resources to be 
        specified by the number of officers with the joint specialty, 
        the number of officers required for service in joint duty 
        assignment positions, and the training and education resources 
        required.
            (2) An assessment of the available and projected joint 
        officer development resources (including officers, educational 
        and training resources, and availability of joint duty 
        assignment positions and tours of duty) necessary to achieve the 
        levels specified under paragraph (1).
            (3) Identification of any problems or issues arising from 
        linking resources for joint officer development to 
        accomplishment of the objective of meeting the levels specified 
        under paragraph (1) to resolve those problems and issues and 
        plans.
            (4) A description of the process for identification of the 
        present and future requirements for joint specialty officers.
            (5) A description of the career development and management 
        of joint specialty officers and of any changes to be made to 
        facilitate achievement of the levels of resources specified in 
        paragraph (1), including additional education requirements, 
        promotion opportunities, and assignments to fill joint 
        assignments.

[[Page 118 STAT. 1896]]

            (6) An assessment of any problems or issues (and proposed 
        solutions for any such problems and issues) arising from linking 
        promotion eligibility to completion of joint professional 
        military education.
            (7) An assessment of any problems or issues (and proposed 
        solutions for any such problems and issues) arising from linking 
        prescribed lengths of joint duty assignments to qualification as 
        joint specialty officers.
            (8) An assessment of any problems or issues (and proposed 
        solutions for any such problems and issues) arising from current 
        law regarding expected rates of promotion for joint specialty 
        officers and officers who are serving in, or have served in, 
        joint duty assignments (other than those serving in, or who have 
        served in, the Joint Staff and joint specialty officers).
            (9) An assessment of any problems or issues (and proposed 
        solutions for any such problems and issues) arising from current 
        applicability of scientific and technical qualification waivers 
        for designation as joint specialty officers.
            (10) An assessment of the viability of the use of incentives 
        (such as awarding ribbons) to any person who successfully 
        completes a joint professional military education program of 
        instruction.
            (11) An assessment of the feasibility and utility of a 
        comprehensive written examination as part of the evaluation 
        criteria for selection of officers for full-time attendance at 
        an intermediate or senior level service school.
            (12) An assessment of the effects on the overall educational 
        experience at the National Defense University of a small 
        increase in the number of private-sector civilians eligible to 
        enroll in instruction at the National Defense University.
            (13) An assessment of the propriety and implications in 
        providing joint specialty officer qualification to all 
        qualifying reserve offices who have achieved the statutory 
        prerequisites.

    (c) Inclusion of Reserve Component Officers.--In developing the 
strategic plan required by subsection (a), the Secretary shall include 
joint officer development for officers on the reserve active-status list 
in the plan.
    (d) Report.--The Secretary shall submit the plan developed under 
this section to the Committees on Armed Services of the Senate and House 
of Representatives not later than January 15, 2006.
    (e) <<NOTE: Deadline.>> Additional Assessment.--Not later than 
January 15, 2007, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Representatives, 
as a follow-on to the report under subsection (d), a report providing an 
assessment of, and initiatives to improve, the performance in joint 
matters of the following:
            (1) Senior civilian officers and employees in the Office of 
        the Secretary of Defense, the Defense Agencies, and the military 
        departments.
            (2) Senior noncommissioned officers.
            (3) Senior leadership in the reserve components.

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

    (a) In General.--Part III of subtitle A of title 10, United States 
Code, is amended--

[[Page 118 STAT. 1897]]

            (1) by redesignating chapter 107 as chapter 106A; and
            (2) by inserting before chapter 108 the following new 
        chapter:

             ``CHAPTER 107--PROFESSIONAL MILITARY EDUCATION

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

``Sec. 2151. Definitions

    ``(a) Joint Professional Military Education.--Joint professional 
military education consists of the rigorous and thorough instruction and 
examination of officers of the armed forces in an environment designed 
to promote a theoretical and practical in-depth understanding of joint 
matters and, specifically, of the subject matter covered. The subject 
matter to be covered by joint professional military education shall 
include at least the following:
                    ``(1) National Military Strategy.
                    ``(2) Joint planning at all levels of war.
                    ``(3) Joint doctrine.
                    ``(4) Joint command and control.
                    ``(5) Joint force and joint requirements 
                development.

    ``(b) Other Definitions.--In this chapter:
            ``(1) The term `senior level service school' means any of 
        the following:
                    ``(A) The Army War College.
                    ``(B) The College of Naval Warfare.
                    ``(C) The Air War College.
                    ``(D) The Marine Corps War College.
            ``(2) The term `intermediate level service school' means any 
        of the following:
                    ``(A) The United States Army Command and General 
                Staff College.
                    ``(B) The College of Naval Command and Staff.
                    ``(C) The Air Command and Staff College.
                    ``(D) The Marine Corps Command and Staff College.

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

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

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

    ``(a) Requirement.--Each officer selected for promotion to the grade 
of brigadier general or, in the case of the Navy, rear admiral (lower 
half) shall be required, after such selection, to attend a military 
education course designed specifically to prepare new general and flag 
officers to work with the other armed forces.
    ``(b) Waiver Authority.--(1) Subject to paragraph (2), the Secretary 
of Defense may waive subsection (a)--

[[Page 118 STAT. 1898]]

            ``(A) in the case of an officer whose immediately previous 
        assignment was in a joint duty assignment and who is thoroughly 
        familiar with joint matters;
            ``(B) when necessary for the good of the service;
            ``(C) in the case of an officer whose proposed selection for 
        promotion is based primarily upon scientific and technical 
        qualifications for which joint requirements do not exist (as 
        determined under regulations prescribed under section 619(e)(4) 
        of this title); and
            ``(D) in the case of a medical officer, dental officer, 
        veterinary officer, medical service officer, nurse, biomedical 
        science officer, or chaplain.

    ``(2) The authority of the Secretary of Defense to grant a waiver 
under paragraph (1) may only be delegated to the Deputy Secretary of 
Defense, an Under Secretary of Defense, or an Assistant Secretary of 
Defense. Such a waiver may be granted only on a case-by-case basis in 
the case of an individual officer.

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

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

    ``(b) Sequenced Approach.--The Secretary shall require the 
sequencing of joint professional military education so that the standard 
sequence of assignments for such education requires an officer to 
complete Phase I instruction before proceeding to Phase II instruction, 
as provided in section 2155(a) of this title.

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

    ``(a) Prerequisite of Completion of Joint Professional Military 
Education I Program of Instruction.--(1) After September 30, 2009, an 
officer of the armed forces may not be accepted

[[Page 118 STAT. 1899]]

for, or assigned to, a program of instruction designated by the 
Secretary of Defense as joint professional military education Phase II 
unless the officer has successfully completed a program of instruction 
designated by the Secretary of Defense as joint professional military 
education Phase I.
    ``(2) The Chairman of the Joint Chiefs of Staff may grant exceptions 
to the requirement under paragraph (1). Such an exception may be granted 
only on a case-by-case basis under exceptional circumstances, as 
determined by the Chairman. An officer selected to receive such an 
exception shall have knowledge of joint matters and other aspects of the 
Phase I curriculum that, to the satisfaction of the Chairman, qualifies 
the officer to meet the minimum requirements established for entry into 
Phase II instruction without first completing Phase I instruction. The 
number of officers selected to attend an offering of the principal 
course of instruction at the Joint Forces Staff College or a senior 
level service school designated by the Secretary of Defense as a joint 
professional military education institution who have not completed Phase 
I instruction should comprise no more than 10 percent of the total 
number of officers selected.
    ``(b) Phase II Requirements.--The Secretary shall require that the 
curriculum for Phase II joint professional military education at any 
school--
            ``(1) focus on developing joint operational expertise and 
        perspectives and honing joint warfighting skills; and
            ``(2) be structured --
                    ``(A) so as to adequately prepare students to 
                perform effectively in an assignment to a joint, 
                multiservice organization; and
                    ``(B) so that students progress from a basic 
                knowledge of joint matters learned in Phase I 
                instruction to the level of expertise necessary for 
                successful performance in the joint arena.

    ``(c) Curriculum Content.--In addition to the subjects specified in 
section 2151(a) of this title, the curriculum for Phase II joint 
professional military education shall include the following:
            ``(1) National security strategy.
            ``(2) Theater strategy and campaigning.
            ``(3) Joint planning processes and systems.
            ``(4) Joint, interagency, and multinational capabilities and 
        the integration of those capabilities.

    ``(d) <<NOTE: Deadline.>> Student Ratio; Faculty Ratio.--Not later 
than September 30, 2009, for courses of instruction in a Phase II 
program of instruction that is offered at senior level service school 
that has been designated by the Secretary of Defense as a joint 
professional military education institution--
            ``(1) the percentage of students enrolled in any such course 
        who are officers of the armed force that administers the school 
        may not exceed 60 percent, with the remaining services 
        proportionally represented; and
            ``(2) of the faculty at the school who are active-duty 
        officers who provide instruction in such courses, the percentage 
        who are officers of the armed force that administers the school 
        may not exceed 60 percent, with the remaining services 
        proportionally represented.

[[Page 118 STAT. 1900]]

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

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

``Sec. 2157. Annual report to Congress

    ``The Secretary of Defense shall include in the annual report of the 
Secretary to Congress under section 113(c) of this title, for the period 
covered by the report, the following information (which shall be shown 
for the Department of Defense as a whole and separately for the Army, 
Navy, Air Force, and Marine Corps and each reserve component):
            ``(1) The number of officers who successfully completed a 
        joint professional military education phase II course and were 
        not selected for promotion.
            ``(2) The number of officer students and faculty members 
        assigned by each service to the professional military schools of 
        the other services and to the joint schools.''.

    (b) Transfer of Other Provisions.--Subsections (b) and (c) of 
section 663 of title 10, United States Code, are transferred to section 
2152 of such title, as added by subsection (a), and added at the end 
thereof.
    (c) Conforming Amendments.--(1) Section 663 of such title, as 
amended by subsection (b), is further amended--
            (A) by striking subsections (a) and (e); and
            (B) by striking ``(d) Post-Education Joint Duty 
        Assignments.--(1) The'' and inserting ``(a) Joint Specialty 
        Officers.--The'';
            (C) by striking ``(2)(A) The Secretary'' and inserting ``(b) 
        Other Officers.--(1) The Secretary'';
            (D) by striking ``in subparagraph (B)'' and inserting ``in 
        paragraph (2)'';
            (E) by striking ``(B) The Secretary'' and inserting ``(2) 
        The Secretary''; and
            (F) by striking ``in subparagraph (A)'' and inserting ``in 
        paragraph (1)''.

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

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

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

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

    (d) Conforming Repeal.--Section 1123(b) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
103 Stat. 1556) is repealed.
    (e) Clerical Amendment.--The tables of chapters at the beginning of 
subtitle A, and at the beginning of part III of subtitle

[[Page 118 STAT. 1901]]

A, of title 10, United States Code, are amended by striking the item 
relating to chapter 107 and inserting the following:

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

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

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

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

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

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

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

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

    (a) Extension.--Sections 3038(b)(4), 5143(b)(4), 5144(b)(4), 
8038(b)(4), and 10506(a)(3)(D) of title 10, United States Code, are 
amended by striking ``December 31, 2004,'' and inserting ``December 31, 
2006,''.
    (b) <<NOTE: Deadline.>> 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.

[[Page 118 STAT. 1902]]

                 Subtitle E--Military Service Academies

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

    (a) Authority to Waive Requirement That Officers Retire After 
Service as Superintendent.--Title 10, United States Code, is amended as 
follows:
            (1) Military academy.--Section 3921 is amended--
                    (A) by inserting ``(a) Mandatory Retirement.--'' 
                before ``Upon the''; and
                    (B) by adding at the end the following:

    ``(b) Waiver Authority.--The Secretary of Defense may waive the 
requirement in subsection (a) for good cause. In each case in which such 
a waiver is granted for an officer, the Secretary shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a written notification of the waiver, with a statement 
of the reasons supporting the decision that the officer not retire, and 
a written notification of the intent of the President to nominate the 
officer for reassignment.''.
            (2) Naval academy.--Section 6371 is amended--
                    (A) by inserting ``(a) Mandatory Retirement.--'' 
                before ``Upon the''; and
                    (B) by adding at the end the following:

    ``(b) Waiver Authority.--The Secretary of Defense may waive the 
requirement in subsection (a) for good cause. In each case in which such 
a waiver is granted for an officer, the Secretary shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a written notification of the waiver, with a statement 
of the reasons supporting the decision that the officer not retire, and 
a written notification of the intent of the President to nominate the 
officer for reassignment.''.
            (3) Air Force Academy.--Section 8921 is amended--
                    (A) by inserting ``(a) Mandatory Retirement.--'' 
                before ``Upon the''; and
                    (B) by adding at the end the following:

    ``(b) Waiver Authority.--The Secretary of Defense may waive the 
requirement in subsection (a) for good cause. In each case in which such 
a waiver is granted for an officer, the Secretary shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a written notification of the waiver, with a statement 
of the reasons supporting the decision that the officer not retire, and 
a written notification of the intent of the President to nominate the 
officer for reassignment.''.
    (b) Minimum Three-Year Tour of Duty as Superintendent.--Title 10, 
United States Code, is amended as follows:
            (1) Military academy.--Section 4333a is amended--
                    (A) by inserting ``(a) Retirement.--'' before ``As 
                a'';
                    (B) by inserting before the period at the end the 
                following: ``pursuant to section 3921(a) of this title, 
                unless such retirement is waived under section 3921(b) 
                of this title''; and
                    (C) by adding at the end the following:

    ``(b) Minimum Tour of Duty.--An officer who is detailed to the 
position of Superintendent of the Academy shall be so detailed for a 
period of not less than three years. In any case in which an officer 
serving as Superintendent is reassigned or retires before

[[Page 118 STAT. 1903]]

having completed three years service as Superintendent, or otherwise 
leaves that position (other than due to death) without having completed 
three years service in that position, the Secretary of the Army shall 
submit to Congress notice that such officer left the position of 
Superintendent without having completed three years service in that 
position, together with a statement of the reasons why that officer did 
not complete three years service in that position.''.
            (2) Naval academy.--Section 6951a is amended--
                    (A) by inserting before the period at the end of 
                subsection (b) the following: ``pursuant to section 
                6371(a) of this title, unless such retirement is waived 
                under section 6371(b) of this title''; and
                    (B) by adding at the end the following new 
                subsection:

    ``(c) An officer who is detailed to the position of Superintendent 
shall be so detailed for a period of not less than three years. In any 
case in which an officer serving as Superintendent is reassigned or 
retires before having completed three years service as Superintendent, 
or otherwise leaves that position (other than due to death) without 
having completed three years service in that position, the Secretary of 
the Navy shall submit to Congress notice that such officer left the 
position of Superintendent without having completed three years service 
in that position, together with a statement of the reasons why that 
officer did not complete three years service in that position.''.
            (3) Air force academy.--Section 9333a is amended--
                    (A) by inserting ``(a) Retirement.--'' before ``As 
                a'';
                    (B) by inserting before the period at the end the 
                following: ``pursuant to section 8921(a) of this title, 
                unless such retirement is waived under section 8921(b) 
                of this title''; and
                    (C) by adding at the end the following:

    ``(b) Minimum Tour of Duty.--An officer who is detailed to the 
position of Superintendent of the Academy shall be so detailed for a 
period of not less than three years. In any case in which an officer 
serving as Superintendent is reassigned or retires before having 
completed three years service as Superintendent, or otherwise leaves 
that position (other than due to death) without having completed three 
years service in that position, the Secretary of the Air Force shall 
submit to Congress notice that such officer left the position of 
Superintendent without having completed three years service in that 
position, together with a statement of the reasons why that officer did 
not complete three years service in that position.''.
    (c) Clerical Amendments.--Title 10, United States Code, is amended 
as follows:
            (1)(A) The heading for section 3921 is amended to read as 
        follows:

[[Page 118 STAT. 1904]]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

``Sec. 9355. Board of Visitors

    ``(a) A Board of Visitors to the Academy is constituted annually. 
The Board consists of the following members:
            ``(1) Six persons designated by the President.
            ``(2) The chairman of the Committee on Armed Services of the 
        House of Representatives, or his designee.
            ``(3) Four persons designated by the Speaker of the House of 
        Representatives, three of whom shall be members of the House of 
        Representatives and the fourth of whom may not be a member of 
        the House of Representatives.
            ``(4) The chairman of the Committee on Armed Services of the 
        Senate, or his designee.
            ``(5) Three other members of the Senate designated by the 
        Vice President or the President pro tempore of the Senate, two 
        of whom are members of the Committee on Appropriations of the 
        Senate.

    ``(b)(1) The persons designated by the President serve for three 
years each except that any member whose term of office has expired

[[Page 118 STAT. 1905]]

shall continue to serve until his successor is designated. The President 
shall designate persons each year to succeed the members designated by 
the President whose terms expire that year.
    ``(2) At least two of the members designated by the President shall 
be graduates of the Academy.
    ``(c)(1) If a member of the Board dies or resigns or is terminated 
as a member of the board under paragraph (2), a successor shall be 
designated for the unexpired portion of the term by the official who 
designated the member.
    ``(2)(A) If a member of the Board fails to attend two successive 
Board meetings, except in a case in which an absence is approved in 
advance, for good cause, by the Board chairman, such failure shall be 
grounds for termination from membership on the Board. A person 
designated for membership on the Board shall be provided notice of the 
provisions of this paragraph at the time of such designation.
    ``(B) Termination of membership on the Board under subparagraph 
(A)--
            ``(i) in the case of a member of the Board who is not a 
        member of Congress, may be made by the Board chairman; and
            ``(ii) in the case of a member of the Board who is a member 
        of Congress, may be made only by the official who designated the 
        member.

    ``(C) When a member of the Board is subject to termination from 
membership on the Board under subparagraph (A), the Board chairman shall 
notify the official who designated the member. Upon receipt of such a 
notification with respect to a member of the Board who is a member of 
Congress, the official who designated the member shall take such action 
as that official considers appropriate.
    ``(d) The Board should meet at least four times a year, with at 
least two of those meetings at the Academy. The Board or its members may 
make other visits to the Academy in connection with the duties of the 
Board. Board meetings should last at least one full day. Board members 
shall have access to the Academy grounds and the cadets, faculty, staff, 
and other personnel of the Academy for the purposes of the duties of the 
Board.
    ``(e)(1) The Board shall inquire into the morale, discipline, and 
social climate, the curriculum, instruction, physical equipment, fiscal 
affairs, academic methods, and other matters relating to the Academy 
that the Board decides to consider.
    ``(2) The Secretary of the Air Force and the Superintendent of the 
Academy shall provide the Board candid and complete disclosure, 
consistent with applicable laws concerning disclosure of information, 
with respect to institutional problems.
    ``(3) The Board shall recommend appropriate action.
    ``(f) The Board shall prepare a semiannual report containing its 
views and recommendations pertaining to the Academy, based on its 
meeting since the last such report and any other considerations it 
determines relevant. Each such report shall be submitted concurrently to 
the Secretary of Defense, through the Secretary of the Air Force, and to 
the Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives.
    ``(g) Upon approval by the Secretary, the Board may call in advisers 
for consultation.

[[Page 118 STAT. 1906]]

    ``(h) While performing duties as a member of the Board, each member 
of the Board and each adviser shall be reimbursed under Government 
travel regulations for travel expenses.''.

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

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

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

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

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

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

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

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

    ``(a) Authority.--In the case of a Naval Academy mixed-funded 
athletic or recreational extracurricular program, the Secretary of the 
Navy may designate funds appropriated to the Department of the Navy and 
available for that program to be treated as nonappropriated funds and 
expended for that program in accordance with laws applicable to the 
expenditure of nonappropriated funds.

[[Page 118 STAT. 1907]]

Appropriated funds so designated shall be considered to be 
nonappropriated funds for all purposes and shall remain available until 
expended.
    ``(b) Covered Programs.--In this section, the term `Naval Academy 
mixed-funded athletic or recreational extracurricular program' means an 
athletic or recreational extracurricular program of the Naval Academy to 
which each of the following applies:
            ``(1) The program is not considered a morale, welfare, or 
        recreation program.
            ``(2) The program is supported through appropriated funds.
            ``(3) The program is supported by a nonappropriated fund 
        instrumentality.
            ``(4) The program is not a private organization and is not 
        operated by a private organization.''.

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

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

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

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

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

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

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

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

[[Page 118 STAT. 1908]]

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

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

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

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

    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item added by section 544(a)(2) the 
following new item:

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

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

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

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

    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item added by section 544(b)(2) the 
following new item:

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

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

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

    ``(a) Prohibition.--Except as provided in subsection (b), no charge 
or fee for tuition, room, or board for attendance at the Academy may be 
imposed unless the charge or fee is specifically authorized by a law 
enacted after October 5, 1994.
    ``(b) Exception.--The prohibition specified in subsection (a) does 
not apply with respect to any item or service provided to cadets for 
which a charge or fee is imposed as of October 5, 1994. The Secretary of 
Defense shall <<NOTE: Notification.>> notify Congress of any change made

[[Page 118 STAT. 1909]]

by the Academy in the amount of a charge or fee authorized under this 
subsection.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item added by section 544(c)(2) the 
following new item:

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

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

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

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

    (f) Repeal of Codified Provision.--Section 553 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 
U.S.C. 4331 note) is repealed.

            Subtitle F--Other Education and Training Matters

SEC. 551. COLLEGE FIRST DELAYED ENLISTMENT PROGRAM.

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

``Sec. 511. College First Program

    ``(a) Program Authority.--The Secretary of each military department 
may establish a program to increase the number of, and the level of the 
qualifications of, persons entering the armed

[[Page 118 STAT. 1910]]

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

[[Page 118 STAT. 1911]]

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

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

    (a) Equal Treatment of Military Recruiters With Other Recruiters.--
Subsection (b)(1) of section 983 of title 10, United States Code, is 
amended--
            (1) by striking ``entry to campuses'' and inserting ``access 
        to campuses''; and
            (2) by inserting before the semicolon at the end the 
        following: ``in a manner that is at least equal in quality and 
        scope to the access to campuses and to students that is provided 
        to any other employer''.

    (b) Prohibition of Funding for Post-secondary Schools That Prevent 
ROTC Access or Military Recruiting.--(1) Subsection (d) of such section 
is amended--
            (A) in paragraph (1)--
                    (i) by striking ``limitation established in 
                subsection (a) applies'' and inserting ``limitations 
                established in subsections (a) and (b) apply'';
                    (ii) in subparagraph (B), by inserting ``for any 
                department or agency for which regular appropriations 
                are made'' after ``made available''; and
                    (iii) by adding at the end the following new 
                subparagraphs:

[[Page 118 STAT. 1912]]

            ``(C) Any funds made available for the Department of 
        Homeland Security.
            ``(D) Any funds made available for the National Nuclear 
        Security Administration of the Department of Energy.
            ``(E) Any funds made available for the Department of 
        Transportation.
            ``(F) Any funds made available for the Central Intelligence 
        Agency.''; and
            (B) by striking paragraph (2).

    (2)(A) Subsection (b) of such section is amended by striking 
``subsection (d)(2)'' and inserting ``subsection (d)(1)''.
    (B) Subsection (e) of such section is amended by inserting ``, to 
the head of each other department and agency the funds of which are 
subject to the determination,'' after ``Secretary of Education''.
    (c) Codification and Extension of Exclusion Of Amounts to Cover 
Individual Payments.--Subsection (d) of such section, as amended by 
subsection (b)(1), is further amended--
            (1) by striking ``The'' after ``(1)'' and inserting ``Except 
        as provided in paragraph (2), the''; and
            (2) by adding at the end the following new paragraph:

    ``(2) Any Federal funding specified in paragraph (1) that is 
provided to an institution of higher education, or to an individual, to 
be available solely for student financial assistance, related 
administrative costs, or costs associated with attendance, may be used 
for the purpose for which the funding is provided.''.
    (d) Conforming Amendments.--Subsections (a) and (b) of such section 
are amended by striking ``(including a grant of funds to be available 
for student aid)''.
    (e) Conforming Repeal of Codified Provision.--Section 8120 of the 
Department of Defense Appropriations Act, 2000 (Public Law 106-79; 10 
U.S.C. 983 note), is repealed.
    (f) <<NOTE: 10 USC 983 note.>> Effective Date.--The amendments made 
by this section shall apply with respect to funds appropriated for 
fiscal year 2005 and thereafter.

SEC. 553. TUITION ASSISTANCE FOR OFFICERS.

    (a) Authority To Reduce or Waive Active Duty Service Obligation.--
Subsection (b) of section 2007 of title 10, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by inserting ``or full-time National Guard duty'' after 
        ``active duty'' each place it appears; and
            (2) by adding at the end the following new paragraph:

    ``(2) Notwithstanding paragraph (1), the Secretary of the military 
department may reduce or waive the active duty service obligation--
            ``(A) in the case of a commissioned officer who is subject 
        to mandatory separation;
            ``(B) in the case of a commissioned officer who has 
        completed the period of active duty service in support of a 
        contingency operation; or
            ``(C) in other exigent circumstances as determined by the 
        Secretary.''.

    (b) Increase in Tuition Assistance Authorized for Army Officers in 
the Selected Reserve.--Paragraph (1) of section

[[Page 118 STAT. 1913]]

2007(c) of title 10, United States Code, is amended to read as follows:
    ``(1) Subject to paragraphs (2) and (3), the Secretary of the Army 
may pay the charges of an educational institution for the tuition or 
expenses of an officer in the Selected Reserve of the Army National 
Guard or the Army Reserve for education or training of such officer.''.
    (c) <<NOTE: 10 USC 2007 note.>> Effective Date.--The amendment made 
by subsection (a) may, at the discretion of the Secretary concerned, be 
applied to a service obligation incurred by an officer serving on active 
duty as of the date of the enactment of this Act.

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

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

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

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

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

    ``(a) Eligibility.--Under joint regulations prescribed by the 
administering Secretaries, the following persons are, except as provided 
in subsection (c), entitled to the benefits described in subsection (b):
            ``(1) A cadet at the United States Military Academy, the 
        United States Air Force Academy, or the Coast Guard Academy, and 
        a midshipman at the United States Naval Academy, who incurs or 
        aggravates an injury, illness, or disease in the line of duty.
            ``(2) A member of, and a designated applicant for membership 
        in, the Senior Reserve Officers' Training Corps who incurs or 
        aggravates an injury, illness, or disease--
                    ``(A) in the line of duty while performing duties 
                under section 2109 of this title;
                    ``(B) while traveling directly to or from the place 
                at which that member or applicant is to perform or has 
                performed duties pursuant to section 2109 of this title; 
                or
                    ``(C) in the line of duty while remaining overnight 
                immediately before the commencement of duties performed 
                pursuant to section 2109 of this title or, while 
                remaining overnight, between successive periods of 
                performing duties pursuant to section 2109 of this 
                title, at or in the vicinity of the site of the duties 
                performed pursuant to section

[[Page 118 STAT. 1914]]

                2109 of this title, if the site is outside reasonable 
                commuting distance from the residence of the member or 
                designated applicant.

    ``(b) Benefits.--A person eligible for benefits under subsection (a) 
for an injury, illness, or disease is entitled to--
            ``(1) the medical and dental care under this chapter that is 
        appropriate for the treatment of the injury, illness, or disease 
        until the injury, illness, disease, or any resulting disability 
        cannot be materially improved by further hospitalization or 
        treatment; and
            ``(2) meals during hospitalization.

    ``(c) Exception for Gross Negligence or Misconduct.--A person is not 
entitled to benefits under subsection (b) for an injury, illness, or 
disease, or the aggravation of an injury, illness, or disease that is a 
result of the gross negligence or the misconduct of that person.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1074a the 
following new item:

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

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

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

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

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

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

    (a) Transfer to Commander of Air University.--Subsection (a) of 
section 9317 of title 10, United States Code, is amended--
            (1) by striking ``may confer--'' and inserting ``may confer 
        academic degrees as follows:'';
            (2) by striking ``the'' in paragraphs (1), (2), and (3) 
        after the paragraph designation and inserting ``The'';
            (3) by striking the semicolon at the end of paragraph (1) 
        and inserting a period;
            (4) by striking ``; and'' at the end of paragraph (2) and 
        inserting a period; and

[[Page 118 STAT. 1915]]

            (5) by adding at the end the following new paragraph:
            ``(4) An academic degree at the level of associate upon 
        graduates of the Community College of the Air Force who fulfill 
        the requirements for that degree.''.

    (b) Conforming Amendment.--Subsection (c) of section 9315 of such 
title is amended to read as follows:
    ``(c) Associate Degrees.--(1) Subject to paragraph (2), an academic 
degree at the level of associate may be conferred under section 9317 of 
this title upon any enlisted member who has completed a program 
prescribed by the Community College of the Air Force.
    ``(2) No degree may be conferred upon any enlisted member under this 
section unless the Secretary of Education determines that the standards 
for the award of academic degrees in agencies of the United States have 
been met.''.
    (c) Clerical Amendments.--(1) The heading of section 9317 of such 
title is amended to read as follows:

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

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

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

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

    (a) <<NOTE: 10 USC 7042 note.>> Designation of President.--(1) The 
position of Superintendent of the Naval Postgraduate School is 
redesignated as President of the Naval Postgraduate School.

    (2) <<NOTE: 10 USC 7042 note; 37 USC 414.>> Any reference to the 
Superintendent of the Naval Postgraduate School in any law, rule, 
regulation, document, record, or other paper of the United States shall 
be deemed to be a reference to the President of the Naval Postgraduate 
School.

    (3)(A) Section 7042 of title 10, United States Code, is amended by 
striking ``Superintendent'' each place it appears in the text and 
inserting ``President''.
    (B) The heading of such section is amended to read as follows:

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

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

[[Page 118 STAT. 1916]]

five years, by the Secretary of the Navy. Before making an appointment 
to the position of Provost and Academic Dean, the Secretary shall 
consult with the Board of Advisors for the Naval Postgraduate School and 
shall consider any recommendation of the leadership and faculty of the 
Naval Postgraduate School regarding an appointment to that position.''.
    (B) The heading of such section is amended to read as follows:

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

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

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

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

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

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

    (b) Termination.--The special rule provided under subsection (a) 
applies only so long as the children covered by such subsection remain 
in average daily attendance at a school in the same local educational 
agency they attended before their change in eligibility status.

[[Page 118 STAT. 1917]]

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

    (a) Continuation of Department of Defense Program for Fiscal Year 
2005.--Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$30,000,000 shall be available only for the purpose of providing 
educational agencies assistance to local educational agencies.
    (b) <<NOTE: Deadline.>> Notification.--Not later than June 30, 2005, 
the Secretary of Defense shall notify each local educational agency that 
is eligible for educational agencies assistance for fiscal year 2005 
of--
            (1) that agency's eligibility for the assistance; and
            (2) the amount of the assistance for which that agency is 
        eligible.

    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
            (3) The term ``basic support payment'' means a payment 
        authorized under section 8003(b)(1) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7703(b)(1)).

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

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

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

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

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

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

    ``The medal of honor awarded posthumously to a deceased member of 
the armed forces who, as an unidentified casualty of a particular war or 
other armed conflict, is interred in the Tomb of the Unknowns at 
Arlington National Cemetery, Virginia, is

[[Page 118 STAT. 1918]]

awarded to the member as the representative of the members of the armed 
forces who died in such war or other armed conflict and whose remains 
have not been identified, and not to the individual personally.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

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

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

    (a) <<NOTE: Deadline.>> Requirement for Plan.--Not later than 90 
days after the date of the enactment of this Act, the Secretary of the 
Army shall submit to the Committees on Armed Services of the Senate and 
the House of Representatives a plan for revising the Army's criteria and 
eligibility requirements for award of the Combat Infantryman Badge and 
the Combat Medical Badge for service in the Republic of Korea after July 
28, 1953, to fulfill the purpose stated in subsection (b).

    (b) Purpose of Revised Criteria and Eligibility Requirements.--The 
purpose for revising the criteria and eligibility requirements for award 
of the Combat Infantryman Badge and the Combat Medical Badge for service 
in the Republic of Korea after July 28, 1953, is to ensure fairness in 
the standards applied to Army personnel in the awarding of such badges 
for Army service in the Republic of Korea in comparison to the standards 
applied to Army personnel in the awarding of such badges for Army 
service in other areas of operations.

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

    The <<NOTE: President.>> 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) <<NOTE: President.>> 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.

[[Page 118 STAT. 1919]]

                       Subtitle I--Military Voting

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

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

    (d) Conforming Amendments.--(1) The heading of section 103 of such 
Act is amended to read as follows:

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

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

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

    The first sentence of section 1604(a)(2) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115

[[Page 118 STAT. 1920]]

Stat. 1277; 42 U.S.C. 1977ff note) is amended by striking ``until the 
regularly scheduled general election for Federal office for November 
2004'' and inserting the following: ``until the first regularly 
scheduled general election for Federal office which occurs after the 
Election Assistance Commission notifies the Secretary that the 
Commission has established electronic absentee voting guidelines and 
certifies that it will assist the Secretary in carrying out the 
project''.

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

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

                  Subtitle J--Military Justice Matters

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

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

[[Page 118 STAT. 1921]]

to the Uniform Code of Military Justice and, for each such revision, the 
rationale behind that revision.

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

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

SEC. 573. <<NOTE: 10 USC 113 note.>> PROCESSING OF FORENSIC EVIDENCE 
            COLLECTION KITS AND ACQUISITION OF SUFFICIENT STOCKS OF SUCH 
            KITS.

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

    (b) Training.--The Secretary shall take such measures as the 
Secretary considers appropriate to ensure that personnel are 
appropriately trained--
            (1) in the use of forensic evidence collection kits; and
            (2) in the prescribed procedures to ensure protection of the 
        chain of custody of such kits once used.

SEC. 574. AUTHORITIES OF THE JUDGE ADVOCATES GENERAL.

    (a) Department of the Army.--Section 3037 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by striking the second and third 
        sentences and inserting ``The term of office of the Judge 
        Advocate General and the Assistant Judge Advocate General is 
        four years.''; and
            (2) by adding at the end the following new subsection:

[[Page 118 STAT. 1922]]

    ``(e) No officer or employee of the Department of Defense may 
interfere with--
            ``(1) the ability of the Judge Advocate General to give 
        independent legal advice to the Secretary of the Army or the 
        Chief of Staff of the Army; or
            ``(2) the ability of judge advocates of the Army assigned or 
        attached to, or performing duty with, military units to give 
        independent legal advice to commanders.''.

    (b) Department of the Navy.--(1) Section 5148 of such title is 
amended by adding at the end the following new subsection:
    ``(e) No officer or employee of the Department of Defense may 
interfere with--
            ``(1) the ability of the Judge Advocate General to give 
        independent legal advice to the Secretary of the Navy or the 
        Chief of Naval Operations; or
            ``(2) the ability of judge advocates of the Navy assigned or 
        attached to, or performing duty with, military units to give 
        independent legal advice to commanders.''.

    (2) Section 5046 of such title is amended by adding at the end the 
following new subsection:
    ``(c) No officer or employee of the Department of Defense may 
interfere with--
            ``(1) the ability of the Staff Judge Advocate to the 
        Commandant of the Marine Corps to give independent legal advice 
        to the Commandant of the Marine Corps; or
            ``(2) the ability of judge advocates of the Marine Corps 
        assigned or attached to, or performing duty with, military units 
        to give independent legal advice to commanders.''.

    (c) Department of the Air Force.--Section 8037 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking ``, but may be'' in the 
        second sentence and all that follows in that sentence through 
        ``President'';
            (2) in subsection (c)--
                    (A) by striking ``shall'' in the matter preceding 
                paragraph (1);
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraph (1) as paragraph (3) 
                and in that paragraph--
                          (i) inserting ``shall'' before ``receive,''; 
                      and
                          (ii) by striking ``; and'' at the end and 
                      inserting a period; and
                    (D) by inserting before paragraph (3), as so 
                redesignated, the following new paragraphs:
            ``(1) is the legal adviser of the Secretary of the Air Force 
        and of all officers and agencies of the Department of the Air 
        Force;
            ``(2) shall direct the officers of the Air Force designated 
        as judge advocates in the performance of their duties; and'';
            (3) in subsection (d)(1), by striking ``, but may be'' in 
        the second sentence and all that follows in that sentence 
        through ``President''; and
            (4) by adding at the end the following new subsection:

    ``(f) No officer or employee of the Department of Defense may 
interfere with--

[[Page 118 STAT. 1923]]

            ``(1) the ability of the Judge Advocate General to give 
        independent legal advice to the Secretary of the Air Force or 
        the Chief of Staff of the Air Force; or
            ``(2) the ability of officers of the Air Force who are 
        designated as judge advocates who are assigned or attached to, 
        or performing duty with, military units to give independent 
        legal advice to commanders.''.

    (d) <<NOTE: Establishment.>> Independent Review.--(1) The Secretary 
of Defense shall establish an independent panel of outside experts to 
conduct a study and review of the relationships between the legal 
elements of each of the military departments and to prepare a report 
setting forth the panel's recommendations as to statutory, regulatory, 
and policy changes that the panel considers to be desirable to improve 
the effectiveness of those relationships and to enhance the legal 
support provided to the leadership of each military department and each 
of the Armed Forces.

    (2) The panel shall be composed of seven members, appointed by the 
Secretary of Defense from among private United States citizens who have 
substantial expertise in military law and the organization and 
functioning of the military departments. No more than one member of the 
panel may have served as the Judge Advocate General of an Armed Force, 
and no more than one member of the panel may have served as the General 
Counsel of a military department.
    (3) The Secretary of Defense shall designate the chairman of the 
panel from among the members of the panel other than a member who has 
served as a Judge Advocate General or as a military department General 
Counsel.
    (4) Members shall be appointed for the life of the panel. Any 
vacancy in the panel shall be filled in the same manner as the original 
appointment.
    (5) The panel shall meet at the call of the chairman.
    (6) All original appointments to the panel shall be made by January 
15, 2005. The chairman shall convene the first meeting of the panel not 
later than February 1, 2005.
    (7) In carrying out the study and review required by paragraph (1), 
the panel shall--
            (A) review the history of relationships between the 
        uniformed and civilian legal elements of each of the Armed 
        Forces;
            (B) analyze the division of duties and responsibilities 
        between those elements in each of the Armed Forces;
            (C) review the situation with respect to civilian attorneys 
        outside the offices of the service general counsels and their 
        relationships to the Judge Advocates General and the General 
        Counsels;
            (D) consider whether the ability of judge advocates to give 
        independent, professional legal advice to their service staffs 
        and to commanders at all levels in the field is adequately 
        provided for by policy and law; and
            (E) consider whether the Judge Advocates General and General 
        Counsels possess the necessary authority to exercise 
        professional supervision over judge advocates, civilian 
        attorneys, and other legal personnel practicing under their 
        cognizance in the performance of their duties.

    (8) <<NOTE: Deadline. Reports.>> Not later than April 15, 2005, the 
panel shall submit a report on the study and review required by 
paragraph (1) to the Secretary of Defense. The report shall include the 
findings and

[[Page 118 STAT. 1924]]

conclusions of the panel as a result of the study and review, together 
with any recommendations for legislative or administrative action that 
the panel considers appropriate. The Secretary of Defense shall transmit 
the report, together with any comments the Secretary wishes to provide, 
to the Committees on Armed Services of the Senate and House of 
Representatives not later than May 1, 2005.

    (9) In this section, the term ``Armed Forces'' does not include the 
Coast Guard.

             Subtitle K--Sexual Assault in the Armed Forces

SEC. 576. <<NOTE: 10 USC 4331 note.>> EXAMINATION OF SEXUAL ASSAULT IN 
            THE ARMED FORCES BY THE DEFENSE TASK FORCE ESTABLISHED TO 
            EXAMINE SEXUAL HARASSMENT AND VIOLENCE AT THE MILITARY 
            SERVICE ACADEMIES.

    (a) Extension of Task Force.--(1) The task force in the Department 
of Defense established by the Secretary of Defense pursuant to section 
526 of the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136; 117 Stat. 1466) to examine matters relating to 
sexual harassment and violence at the United States Military Academy and 
United States Naval Academy shall continue in existence for a period of 
at least 18 months after the date as of which the task force would 
otherwise be terminated pursuant to subsection (i) of that section.
    (2) Upon the completion of the functions of the task force referred 
to in paragraph (1) pursuant to section 526 of the National Defense 
Authorization Act for Fiscal Year 2004, the name of the task force shall 
be changed to the Defense Task Force on Sexual Assault in the Military 
Services, and the task force shall then carry out the functions 
specified in this section. The task force shall not begin to carry out 
the functions specified in this section until it has completed its 
functions under such section 526.
    (3) Before the task force extended under this subsection begins to 
carry out the functions specified in this section, the Secretary of 
Defense may, consistent with the qualifications required by section 
526(f) of Public Law 108-136, change the composition of the task force 
as the Secretary considers appropriate for the effective performance of 
such functions, except that--
            (A) any change initiated by the Secretary in the membership 
        of the task force under this paragraph may not take effect 
        before the task force has completed its functions under section 
        526 of Public Law 108-136; and
            (B) the total number of members of the task force may not 
        exceed 14.

    (b) Examination of Matters Relating to Sexual Assault in the Armed 
Forces.--The task force shall conduct an examination of matters relating 
to sexual assault in cases in which members of the Armed Forces are 
either victims or commit acts of sexual assault.
    (c) Recommendations.--The Task Force shall include in its report 
under subsection (e) recommendations of ways by which civilian officials 
within the Department of Defense and leadership within the Armed Forces 
may more effectively address matters relating to sexual assault. That 
report shall include an assessment of, and recommendations (including 
any recommendations for

[[Page 118 STAT. 1925]]

changes in law) for measures to improve, with respect to sexual assault, 
the following:
            (1) Victim care and advocacy programs.
            (2) Effective prevention.
            (3) Collaboration among military investigative organizations 
        with responsibility or jurisdiction.
            (4) Coordination and resource sharing between military and 
        civilian communities, including local support organizations.
            (5) Reporting procedures, data collection, tracking of 
        cases, and use of data on sexual assault by senior military and 
        civilian leaders.
            (6) Oversight of sexual assault programs, including 
        development of measures of the effectiveness of those programs 
        in responding to victim needs.
            (7) Military justice issues.
            (8) Progress in developing means to investigate and 
        prosecute assailants who are foreign nationals.
            (9) Adequacy of resources supporting sexual assault 
        prevention and victim advocacy programs, particularly for 
        deployed units and personnel.
            (10) Training of military and civilian personnel responsible 
        for implementation of sexual assault policies.
            (11) Programs and policies, including those related to 
        confidentiality, designed to encourage victims to seek services 
        and report offenses.
            (12) Other issues identified by the task force relating to 
        sexual assault.

    (d) Methodology.--In carrying out its examination under subsection 
(b) and in formulating its recommendations under subsection (c), the 
task force shall consider the findings and recommendations of previous 
reviews and investigations of sexual assault conducted by the Department 
of Defense and the Armed Forces.
    (e) Report.--(1) Not later than one year after the initiation of its 
examination under subsection (b), the task force shall submit to the 
Secretary of Defense and the Secretaries of the Army, Navy, and Air 
Force a report on the activities of the task force and on the activities 
of the Department of Defense and the Armed Forces to respond to sexual 
assault.
    (2) The report shall include the following:
            (A) A description of any barrier to implementation of 
        improvements as a result of previous efforts to address sexual 
        assault.
            (B) Other areas of concern not previously addressed in prior 
        reports.
            (C) The findings and conclusions of the task force.
            (D) Any recommendations for changes to policy and law that 
        the task force considers appropriate.

    (3) Within 90 days after receipt of the report under paragraph (1), 
the Secretary of Defense shall submit the report, together with the 
Secretary's evaluation of the report, to the Committees on Armed 
Services of the Senate and House of Representatives.
    (f) Termination.--The task force shall terminate 90 days after the 
date on which the report of the task force is submitted to the 
Committees on Armed Services of the Senate and House of Representatives 
pursuant to subsection (e)(3).

[[Page 118 STAT. 1926]]

SEC. 577. <<NOTE: 10 USC 113 note.>> DEPARTMENT OF DEFENSE POLICY AND 
            PROCEDURES ON PREVENTION AND RESPONSE TO SEXUAL ASSAULTS 
            INVOLVING MEMBERS OF THE ARMED FORCES.

    (a) Comprehensive Policy on Prevention and Response to Sexual 
Assaults.--(1) Not later than January 1, 2005, the Secretary of Defense 
shall develop a comprehensive policy for the Department of Defense on 
the prevention of and response to sexual assaults involving members of 
the Armed Forces.
    (2) The policy shall be based on the recommendations of the 
Department of Defense Task Force on Care for Victims of Sexual Assaults 
and on such other matters as the Secretary considers appropriate.
    (3) Before developing the comprehensive policy required by paragraph 
(1), the Secretary of Defense shall develop a definition of sexual 
assault. The definition so developed shall be used in the comprehensive 
policy under paragraph (1) and otherwise within the Department of 
Defense and Coast Guard in matters involving members of the Armed 
Forces. The definition shall be uniform for all the Armed Forces and 
shall be developed in consultation with the Secretaries of the military 
departments and the Secretary of Homeland Security with respect to the 
Coast Guard.
    (b) Elements of Comprehensive Policy.--The comprehensive policy 
developed under subsection (a) shall, at a minimum, address the 
following matters:
            (1) Prevention measures.
            (2) Education and training on prevention and response.
            (3) Investigation of complaints by command and law 
        enforcement personnel.
            (4) Medical treatment of victims.
            (5) Confidential reporting of incidents.
            (6) Victim advocacy and intervention.
            (7) Oversight by commanders of administrative and 
        disciplinary actions in response to substantiated incidents of 
        sexual assault.
            (8) Disposition of victims of sexual assault, including 
        review by appropriate authority of administrative separation 
        actions involving victims of sexual assault.
            (9) Disposition of members of the Armed Forces accused of 
        sexual assault.
            (10) Liaison and collaboration with civilian agencies on the 
        provision of services to victims of sexual assault.
            (11) Uniform collection of data on the incidence of sexual 
        assaults and on disciplinary actions taken in substantiated 
        cases of sexual assault.

    (c) Report on Improvement of Capability To Respond to Sexual 
Assaults.--Not later than March 1, 2005, the Secretary of Defense shall 
submit to Congress a proposal for such legislation as the Secretary 
considers necessary to enhance the capability of the Department of 
Defense to address matters relating to sexual assaults involving members 
of the Armed Forces.
    (d) Application of Comprehensive Policy To Military Departments.--
The Secretary of Defense shall ensure that, to the maximum extent 
practicable, the policy developed under subsection (a) is implemented 
uniformly by the military departments.
    (e) Policies and <<NOTE: Deadline. Regulations.>> Procedures of 
Military Departments.--(1) Not later than March 1, 2005, the Secretaries 
of the military

[[Page 118 STAT. 1927]]

departments shall prescribe regulations, or modify current regulations, 
on the policies and procedures of the military departments on the 
prevention of and response to sexual assaults involving members of the 
Armed Forces in order--
            (A) to conform such policies and procedures to the policy 
        developed under subsection (a); and
            (B) to ensure that such policies and procedures include the 
        elements specified in paragraph (2).

    (2) The elements specified in this paragraph are as follows:
            (A) A program to promote awareness of the incidence of 
        sexual assaults involving members of the Armed Forces.
            (B) A program to provide victim advocacy and intervention 
        for members of the Armed Force concerned who are victims of 
        sexual assault, which program shall make available, at home 
        stations and in deployed locations, trained advocates who are 
        readily available to intervene on behalf of such victims.
            (C) Procedures for members of the Armed Force concerned to 
        follow in the case of an incident of sexual assault involving a 
        member of such Armed Force, including--
                    (i) specification of the person or persons to whom 
                the alleged offense should be reported;
                    (ii) specification of any other person whom the 
                victim should contact;
                    (iii) procedures for the preservation of evidence; 
                and
                    (iv) procedures for confidential reporting and for 
                contacting victim advocates.
            (D) Procedures for disciplinary action in cases of sexual 
        assault by members of the Armed Force concerned.
            (E) Other sanctions authorized to be imposed in 
        substantiated cases of sexual assault, whether forcible or 
        nonforcible, by members of the Armed Force concerned.
            (F) Training on the policies and procedures for all members 
        of the Armed Force concerned, including specific training for 
        members of the Armed Force concerned who process allegations of 
        sexual assault against members of such Armed Force.
            (G) Any other matters that the Secretary of Defense 
        considers appropriate.

    (f) Annual Report on Sexual Assaults.--(1) Not later than January 15 
of each year, the Secretary of each military department shall submit to 
the Secretary of Defense a report on the sexual assaults involving 
members of the Armed Forces under the jurisdiction of that Secretary 
during the preceding year. In the case of the Secretary of the Navy, 
separate reports shall be prepared for the Navy and for the Marine 
Corps.
    (2) Each report on an Armed Force under paragraph (1) shall contain 
the following:
            (A) The number of sexual assaults against members of the 
        Armed Force, and the number of sexual assaults by members of the 
        Armed Force, that were reported to military officials during the 
        year covered by such report, and the number of the cases so 
        reported that were substantiated.
            (B) A synopsis of, and the disciplinary action taken in, 
        each substantiated case.
            (C) The policies, procedures, and processes implemented by 
        the Secretary concerned during the year covered by such report 
        in response to incidents of sexual assault involving members of 
        the Armed Force concerned.

[[Page 118 STAT. 1928]]

            (D) A plan for the actions that are to be taken in the year 
        following the year covered by such report on the prevention of 
        and response to sexual assault involving members of the Armed 
        Forces concerned.

    (3) Each report under paragraph (1) for any year after 2005 shall 
include an assessment by the Secretary of the military department 
submitting the report of the implementation during the preceding fiscal 
year of the policies and procedures of such department on the prevention 
of and response to sexual assaults involving members of the Armed Forces 
in order to determine the effectiveness of such policies and procedures 
during such fiscal year in providing an appropriate response to such 
sexual assaults.
    (4) The Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and House of Representatives each report 
submitted to the Secretary under this subsection, together with the 
comments of the Secretary on the report. The Secretary shall submit each 
such report not later than March 15 of the year following the year 
covered by the report.
    (5) For the report under this subsection covering 2004, the 
applicable date under paragraph (1) is April 1, 2005, and the applicable 
date under paragraph (4) is May 1, 2005.

            Subtitle L--Management and Administrative Matters

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

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

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

    (a) Report When Staffing is Below Prescribed Level.--Subparagraph 
(B) of section 1501(a)(5) of title 10, United States Code, is amended--
            (1) by inserting ``(i)'' after ``(B)'';
            (2) by inserting ``, whether temporary or permanent,'' after 
        ``civilian personnel''; and
            (3) by adding at the end the following:

    ``(ii) <<NOTE: Notice.>> If for any reason the number of military 
and civilian personnel assigned or detailed to the office should fall 
below the required level under clause (i), the Secretary of Defense 
shall promptly notify the Committees on Armed Services of the Senate and 
House of Representatives of the number of personnel so assigned or 
detailed and of the Secretary's plan to restore the staffing level of 
the office to at least the required minimum number under clause 
(i). <<NOTE: Federal Register, publication.>> The Secretary shall 
publish such notice and plan in the Federal Register.''.

    (b) GAO Study.--Not <<NOTE: Deadline. Reports.>> later than 180 days 
after the date of the enactment of this Act, the Comptroller General 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report 
providing an assessment of staffing and funding levels for the

[[Page 118 STAT. 1929]]

Defense Prisoner of War/Missing Personnel Office. The report shall 
include--
            (1) a description of changes, over the period from the 
        inception of the office to the time of the submission of the 
        report, in the missions and mission requirements of the office, 
        together with a comparison of personnel and funding requirements 
        of the office over that period with actual manning and funding 
        levels over that period; and
            (2) the Comptroller General's assessment of the adequacy of 
        current manning and funding levels for that office in light of 
        current mission requirements.

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

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

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

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

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

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

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

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

    (a) Authority.--Section 1047 of title 10, United States Code, is 
amended--
            (1) by inserting ``(b) Certain Enlisted Members.--'' before 
        ``The Secretary''; and
            (2) by inserting after the section heading the following:

    ``(a) Members Traveling In Connection With Medical Evacuation.--The 
Secretary of the military department concerned may furnish civilian 
clothing to a member at a cost not to exceed

[[Page 118 STAT. 1930]]

$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) <<NOTE: 10 USC 1047 note.>> of 
section 1047 of title 10, United States Code, as added by subsection 
(a), shall take effect as of October 1, 2004, and (subject to subsection 
(c)) shall apply with respect to clothing furnished, and reimbursement 
for clothing purchased, on or after that date.

    (c) Retroactive Application.--With respect to the period beginning 
on October 1, 2004, and ending on the date of the enactment of this Act, 
the Secretary of Defense shall provide for subsection (a) of section 
1047 of title 10, United States Code, as added by subsection (a), to be 
applied as a continuation of the authority provided in section 1319 of 
the Emergency Wartime Supplemental Appropriations Act, 2003 (Public Law 
108-11; 117 Stat. 571), as continued in effect during fiscal year 2004 
by section 1103 of the Emergency Supplemental Appropriations Act for 
Defense and for the Reconstruction of Iraq and Afghanistan, 2004 (Public 
Law 108-106; 117 Stat. 1214).

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

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

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

    ``(a) Authority to Accept Donation of Travel Benefits.--Subject to 
subsection (c), the Secretary of Defense may accept from any person or 
government agency the donation of travel benefits for the purposes of 
use under subsection (d).
    ``(b) Travel Benefit Defined.--In the section, the term `travel 
benefit' means frequent traveler miles, credits for tickets, or tickets 
for air or surface transportation issued by an air carrier or a surface 
carrier, respectively, that serves the public.
    ``(c) Condition on Authority to Accept Donation.--The Secretary may 
accept a donation of a travel benefit under this section only if the air 
or surface carrier that is the source of the benefit consents to such 
donation. Any such donation shall be under such terms and conditions as 
the surface carrier may specify, and the travel benefit so donated may 
be used only in accordance with the rules established by the carrier.
    ``(d) Use of Donated Travel Benefits.--A travel benefit accepted 
under this section may be used only for the purpose of--
            ``(1) facilitating the travel of a member of the armed 
        forces who--

[[Page 118 STAT. 1931]]

                    ``(A) is deployed on active duty outside the United 
                States away from the permanent duty station of the 
                member in support of a contingency operation; and
                    ``(B) is granted, during such deployment, rest and 
                recuperative leave, emergency leave, convalescent leave, 
                or another form of leave authorized for the member; or
            ``(2) in the case of a member of the armed forces 
        recuperating from an injury or illness incurred or aggravated in 
        the line of duty during such a deployment, facilitating the 
        travel of family members of the member in order to be reunited 
        with the member.

    ``(e) Administration.--(1) The Secretary shall designate a single 
office in the Department of Defense to carry out this section. That 
office shall develop rules and procedures to facilitate the acceptance 
and distribution of travel benefits under this section.
    ``(2) For the use of travel benefits under subsection (d)(2) by 
family members of a member of the armed forces, the Secretary may, as 
the Secretary determines appropriate, limit--
            ``(A) eligibility to family members who, by reason of 
        affinity, degree of consanguinity, or otherwise, are 
        sufficiently close in relationship to the member of the armed 
        forces to justify the travel assistance;
            ``(B) the number of family members who may travel; and
            ``(C) the number of trips that family members may take.

    ``(3) The Secretary of Defense may, in an exceptional case, 
authorize a person not described in subsection (d)(2) to use a travel 
benefit accepted under this subsection to visit a member of the armed 
forces described in subsection (d)(1) if that person has a notably close 
relationship with the member. The travel benefit may be used by such 
person only in accordance with such conditions and restrictions as the 
Secretary determines appropriate and the rules established by the air 
carrier or surface carrier that is the source of the travel benefit.
    ``(f) Services of Nonprofit Organization.--The Secretary of Defense 
may enter into an agreement with a nonprofit organization to use the 
services of the organization--
            ``(1) to promote the donation of travel benefits under this 
        section, except that amounts appropriated to the Department of 
        Defense may not be expended for this purpose; and
            ``(2) to assist in administering the collection, 
        distribution, and use of travel benefits under this section.

    ``(g) Family Member Defined.--In this section, the term `family 
member' has the meaning given that term in section 411h(b)(1) of title 
37.''.

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

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

    (b) Tax Treatment of Travel Benefits Donated for Operation Hero 
Miles.--
            (1) Exclusion from gross income.--Subsection (b) of section 
        134 of the Internal Revenue Code of 1986 (defining qualified 
        military benefit) is amended by adding at the end the following 
        new paragraph:
            ``(5) Travel benefits under operation hero miles.--The term 
        `qualified military benefit' includes a travel benefit

[[Page 118 STAT. 1932]]

        provided under section 2613 of title 10, United States Code (as 
        in effect on the date of the enactment of this paragraph).''.
            (2) Conforming amendments.--
                    (A) Section 134(b)(3)(A) of such Code is amended by 
                striking ``paragraph (4)'' and inserting ``paragraphs 
                (4) and (5)''.
                    (B) Section 3121(a)(18) of such Code is amended by 
                striking ``or 134(b)(4)'' and inserting ``134(b)(4), or 
                134(b)(5)''.
                    (C) Section 3306(b)(13) of such Code is amended by 
                striking ``or 134(b)(4)'' and inserting ``134(b)(4), or 
                134(b)(5)''.
                    (D) Section 3401(a)(18) of such Code is amended by 
                striking ``or 134(b)(4)'' and inserting ``134(b)(4), or 
                134(b)(5)''.
            (3) Effective date.--The <<NOTE: 26 USC 134 
        note.>> amendments made by this subsection shall apply to travel 
        benefits provided after the date of the enactment of this Act.

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

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

    (c) Use of Generic Separation Codes.--In preparing the reports under 
this section, the Secretary shall use a generic interservice separation 
code that provides similar, and consistent, data across the services.

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

    (a) Study Required.--Not <<NOTE: Deadline. Reports.>> 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.

[[Page 118 STAT. 1933]]

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

    (a) Findings.--Congress makes the following findings:
            (1) The generation of young people currently serving on 
        active duty in the Armed Forces, which history will record as 
        being among the greatest, has shown in remarkable numbers an 
        individual resolve to recover from injuries incurred in such 
        service and to return to active service in the Armed Forces.
            (2) Since September 11, 2001, numerous brave soldiers, 
        sailors, airmen, and Marines have incurred serious combat 
        injuries, including (as of June 2004) approximately 100 members 
        of the Armed Forces who have been fitted with artificial limbs 
        as a result of devastating injuries sustained in combat 
        overseas.
            (3) In cases involving combat-related injuries and other 
        service-related injuries, it is possible, as a result of 
        advances in technology and extensive rehabilitative services, to 
        restore to members of the Armed Forces sustaining such injuries 
        the capability to resume the performance of active military 
        service, including, in a few cases, the capability to 
        participate directly in the performance of combat missions.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) a member of the Armed Forces who on the member's own 
        initiative is highly motivated to return to active duty service 
        following rehabilitation from injuries incurred in service in 
        the Armed Forces should, after appropriate medical review and 
        physical disability evaluation, be given the opportunity to 
        present the member's case for continuing to serve on active duty 
        in varied military capacities;
            (2) other than appropriate medical review and physical 
        disability evaluation, there should be no barrier in policy or 
        law to such a member having the option to return to military 
        service on active duty; and
            (3) the Secretary of Defense should develop specific 
        protocols that include options for such members to return to 
        active duty service and to be retrained to perform military 
        missions for which they are fully capable.

                        Subtitle M--Other Matters

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

    (a) Protected Communications.--Section 1034(b)(1)(B) of title 10, 
United States Code, is amended--
            (1) by striking ``or'' at the end of clause (iii)''; and
            (2) by striking clause (iv) and inserting the following:
                    ``(iv) any person or organization in the chain of 
                command; or
                    ``(v) any other person or organization designated 
                pursuant to regulations or other established 
                administrative procedures for such communications.''.

    (b) Effective Date.--The <<NOTE: 10 USC 1034 note.>> amendments made 
by this section apply with respect to any unfavorable personnel action 
taken or threatened, and any withholding of or threat to withhold a 
favorable

[[Page 118 STAT. 1934]]

personnel action, on or after the date of the enactment of this Act.

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

    (a) Plan for Accession of Persons With Specialized Skills.--(1) Not 
later than <<NOTE: Reports.>> 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a plan 
for implementation of authority, if subsequently provided by law, to 
allow for accession into the Armed Forces, on a special or lateral-entry 
basis, of persons with specialized skills, for duty involving the use of 
such skills.

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

    (2) <<NOTE: Reports. Deadline.>> The Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the results of the 
study under paragraph (1) not later than March 31, 2005.

SEC. 593. <<NOTE: 10 USC 503 note.>> ENHANCED SCREENING METHODS AND 
            PROCESS IMPROVEMENTS FOR RECRUITMENT OF HOME SCHOOLED AND 
            NATIONAL GUARD CHALLENGE PROGRAM GED RECIPIENTS.

    (a) Enhanced Screeing Methods and Process Improvements.--(1) The 
Secretary of the Army shall carry out an initiative--
            (A) to develop screening methods and process improvements 
        for recruiting specified GED recipients so as to achieve 
        attrition patterns, among the GED recipients so recruited, that 
        match attrition patterns for Army recruits who are high school 
        diploma graduates; and

[[Page 118 STAT. 1935]]

            (B) subject to subsection (b), to implement such screening 
        methods and process improvements on a test basis.

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

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

    (a) Redesignation.--Section 509 of title 32, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``National Guard Challenge Program'' 
                the first place it appears and inserting ``National 
                Guard Youth Challenge Program''; and

[[Page 118 STAT. 1936]]

                    (B) by striking ``National Guard Challenge Program'' 
                the second place it appears and inserting ``Program'';
            (2) by striking ``National Guard Challenge Program'' each 
        place it appears in subsections (b) through (k) and subsection 
        (m) and inserting ``Program'';
            (3) by striking ``program'' each place it appears in 
        subsections (b), (g), (i)(2)(A), (j), (k), and (m) and inserting 
        ``Program''; and
            (4) in subsection (l), by adding at the end the following 
        new paragraph:
            ``(3) The term `Program' means the National Guard Youth 
        Challenge Program carried out pursuant to this section.''.

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

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

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

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

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

    (a) Military-to-Civilian Conversions.--Not later than January 31, 
2005, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives a report providing information as to the number of 
positions in the Department of Defense that were converted during fiscal 
year 2004 from performance by military personnel to performance by 
civilian personnel of the Department of Defense or contractor personnel. 
The report shall include the following:
            (1) A description of the skill sets of the military 
        positions converted.
            (2) Specification of the total cost of the conversions and 
        how that cost is being met.
            (3) The number of positions in the Department of Defense 
        projected for such conversion during the period from March 1, 
        2005, through January 31, 2006.

    (b) Military-to-Military Conversions.--Not later than March 31 of 
each of 2005, 2006, and 2007, the Secretary of Defense shall submit to 
the Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on--
            (1) the number of units, by type, converted from one primary 
        military capability to another during the previous fiscal year 
        and, for each such unit, what the new unit designation and new 
        military capabilities are;
            (2) the number of military personnel, by military skill, who 
        have converted during the previous fiscal year from one primary 
        military skill to another, with a listing of the military skills 
        to which the individuals converted;
            (3) a description of the military unit and military 
        personnel conversions planned for the upcoming fiscal year; and
            (4) a statement of whether the overall unit and military 
        personnel conversions planned for the previous fiscal year were

[[Page 118 STAT. 1937]]

        met, and for each such planned conversion, the reasons why the 
        planned conversion was or was not met.

    (c) Army Transformation to <<NOTE: 10 USC 3013 note.>> Brigade 
Structure.--The Secretary of the Army shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives an annual report on the status of the internal 
transformation of the Army from a division-orientated force to a 
brigade-orientated force. Such report shall be submitted not later than 
March 31 of each year, except that the requirement to submit such annual 
report shall terminate when the Secretary of the Army submits to those 
committees the Secretary's certification that the transformation of the 
Army to a brigade-orientated force has been completed. <<NOTE: Federal 
Register, publication.>> Upon the submission of such certification, the 
Secretary shall publish in the Federal Register notice of that 
certification and that the statutory requirement to submit an annual 
report under this subsection has terminated.

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

    (a) Study.--The Secretary of the Army shall examine the issues 
relating to requests for disinterment of remains of persons buried in 
United States overseas military cemeteries. The examination shall 
include the following:
            (1) A review of the historical facts involved in 
        establishing the United States overseas military cemeteries and 
        in determining the criteria for interment in those cemeteries.
            (2) An examination of the processes for ensuring that the 
        initial disposition decision with respect to the remains of any 
        decedent was carried out, together with a review and explanation 
        of the existing policy and procedures regarding request for 
        disinterment and any exceptions that have been made.
            (3) An analysis of the potential reasons for justifying 
        disinterment of remains from those cemeteries, including error, 
        misunderstanding, and change of decision by the original 
        responsible next of kin or other family member or group of 
        family members.
            (4) An analysis of the potential impact on the operation of 
        United States overseas military cemeteries of permitting 
        disinterment of remains from those cemeteries.

    (b) Report.--Not later than September 30, 2005, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
the results of the examination under subsection (a). The report shall 
include the following:
            (1) The matters specified in paragraphs (1), (2), (3), and 
        (4) of subsection (a).
            (2) A description of the changes to policy criteria and 
        procedures that would be necessary to support a system for 
        requesting and authorizing disinterment of such remains.
            (3) The recommendations of the Secretary of the Army and the 
        American Battle Monuments Commission for changing current policy 
        and procedures with respect to such disinterments.

    (c) Consultation With ABMC.--The Secretary shall carry out the 
examination under subsection (a) and prepare the report

[[Page 118 STAT. 1938]]

under subsection (b) in consultation with the American Battle Monuments 
Commission.
    (d) ABMC Assistance.--The American Battle Monuments Commission shall 
provide the Secretary of the Army such assistance as the Secretary may 
require in carrying out this section.
    (e) Definitions.--For purposes of this section:
            (1) The term ``United States overseas military cemetery'' 
        means a cemetery located in a foreign country that is 
        administered by the Secretary of a military department or the 
        American Battle Monuments Commission.
            (2) The term ``initial disposition decision'', with respect 
        to the remains of a person who died outside the United States 
        and was interred in a United States overseas military cemetery, 
        means a decision by a family member (or other designated person) 
        as to the disposition (in accordance with laws and regulations 
        in effect at the time) of the remains of the deceased person, 
        such decision being to have the remains interred in a United 
        States overseas military cemetery (rather than to have those 
        remains transported to the United States for interment or other 
        disposition in the United States).

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

    (a) Report on Defense Dependent Schools.--The Comptroller General 
shall prepare a report containing--
            (1) an assessment by the Comptroller General of the policy 
        of the Department of Defense, and the criteria utilized by the 
        Department, regarding the closure of Department of Defense 
        dependent elementary and secondary schools, including whether or 
        not such policy and criteria are consistent with Department 
        policies and procedures on the preservation of the quality of 
        life of members of the Armed Forces and their dependents; and
            (2) an assessment by the Comptroller General of any current 
        or on-going studies or assessments of the Department with 
        respect to any of the schools.

    (b) Report on Commissary Stores.--The Comptroller General shall 
prepare a report containing--
            (1) an assessment by the Comptroller General of the policy 
        of the Department of Defense, and the criteria utilized by the 
        Department, regarding the closure of commissary stores, 
        including whether or not such policy and criteria are consistent 
        with Department policies and procedures on the preservation of 
        the quality of life of members of the Armed Forces and their 
        dependents; and
            (2) an assessment by the Comptroller General of any current 
        or on-going studies or assessments of the Department with 
        respect to any of the commissary stores.

    (c) Submission of Reports.--The Comptroller General shall submit the 
reports required by this section to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives not later than 180 days after the date of the enactment 
of this Act.

[[Page 118 STAT. 1939]]

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

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall submit to Congress 
a report evaluating the programs of the Department of Defense and other 
Federal agencies under which transition assistance is provided to 
members of the Armed Forces who are separating from active duty service.
    (b) Elements of Report.--(1) With regard to the transition 
assistance programs under section 1142 and 1144 of title 10, United 
States Code, the report required by subsection (a) shall include--
            (A) an analysis of the extent to which such programs are 
        meeting the current needs of members of the Armed Forces as they 
        are discharged or released from active duty;
            (B) a discussion of the original purposes of the programs;
            (C) a discussion of how the programs are currently being 
        administered in relationship to those purposes;
            (D) an assessment of whether the programs are adequate to 
        meet the current needs of members of the reserve components; and
            (E) such recommendations as the Comptroller General 
        considers appropriate for improving such programs, including any 
        recommendation regarding whether participation by members of the 
        Armed Forces in such programs should be required.

    (2) The report shall include an analysis of any differences among 
the Armed Forces and among the commands of military installations of the 
Armed Forces regarding how transition assistance is being provided under 
the transition assistance programs and such recommendations as the 
Comptroller General considers appropriate--
            (A) to achieve uniformity in the provision of assistance 
        under such programs; and
            (B) to ensure that the transition assistance is provided 
        under such programs to members of the Armed Forces who are being 
        separated at medical facilities of the uniformed services or 
        Department of Veterans Affairs medical centers and to Armed 
        Forces personnel on a temporary disability retired list under 
        section 1202 or 1205 of title 10, United States Code.

    (3) The report shall include--
            (A) an analysis of the relationship between the Department 
        of Defense transition assistance programs and the transition 
        assistance programs of the Department of Veterans Affairs and 
        the Department of Labor, including the relationship between the 
        benefits delivery at discharge program carried out jointly by 
        the Department of Defense and the Department of Veterans Affairs 
        and the other transition assistance programs; and
            (B) an assessment of the quality and thoroughness of 
        information being provided during preseparation briefings under 
        such transition assistance programs regarding the full range of 
        benefits available to qualified members of the Armed Forces 
        under programs operated by the Department of Veterans Affairs 
        and the requirements for qualifying for those benefits.

    (4) The report shall specify the rates of participation of members 
of the Armed Forces in the transition assistance programs and include 
such recommendations as the Comptroller General considers

[[Page 118 STAT. 1940]]

appropriate to increase such participation rates, including any 
recommendations regarding revisions of such programs that could result 
in increased participation by members.
    (5) The report shall include--
            (A) an assessment of whether the transition assistance 
        information provided to members of the Armed Forces omits any 
        transition information that would be beneficial to members;
            (B) an assessment of the extent to which information is 
        provided under the transition assistance programs regarding 
        participation in Federal procurement opportunities available at 
        prime contract and subcontract levels to veterans with service-
        connected disabilities and other veterans; and
            (C) such recommendations as the Comptroller General 
        considers appropriate regarding additional information that 
        should be provided and any other recommendations that the 
        Comptroller General considers appropriate for enhancing the 
        provision of counseling on such procurement opportunities.

    (6) The report shall include--
            (A) an assessment of the extent to which representatives of 
        military service organizations and veterans' service 
        organizations are afforded opportunities to participate, and do 
        participate, in preseparation briefings under transition 
        assistance programs;
            (B) an assessment of the effectiveness and usefulness of the 
        role that military service organizations and veterans' service 
        organizations are playing in the preseparation briefing process; 
        and
            (C) such recommendations as the Comptroller General 
        considers appropriate regarding whether such organizations 
        should be given a more formal role in the preseparation briefing 
        process and how representatives of such organizations could 
        better be used to disseminate transition assistance information 
        and provide preseparation counseling to members of the Armed 
        Forces, including members who are being released from active 
        duty for continuation of service in a reserve component.

    (7) The report shall include an analysis of the use of post-
deployment and predischarge health screenings and such recommendations 
as the Comptroller General considers appropriate regarding whether and 
how to integrate the health screening process and the transition 
assistance programs into a single, coordinated preseparation program for 
members of the Armed Forces being discharged or released from active 
duty.
    (8) The report shall include an analysis of the processes of the 
Armed Forces for conducting physical examinations of members of the 
Armed Forces in connection with discharge and release from active duty, 
including--
            (A) how post-deployment questionnaires are used;
            (B) the extent to which members of the Armed Forces waive 
        the physical examinations; and
            (C) how, and the extent to which, members of the Armed 
        Forces are referred for follow-up health care.

    (9) The report shall include a discussion of the current process by 
which mental health screenings are conducted, follow-up mental health 
care is provided for, and services are provided in cases of post-
traumatic stress disorder and related conditions for members of the 
Armed Forces in connection with discharge and release from active duty, 
together with--

[[Page 118 STAT. 1941]]

            (A) for each of the Armed Forces, the programs that are in 
        place to identify and treat cases of post-traumatic stress 
        disorder and related conditions; and
            (B) for persons returning from deployments in connection 
        with Operation Enduring Freedom and Operation Iraqi Freedom--
                    (i) the number of persons treated as a result of 
                such screenings; and
                    (ii) the types of interventions.

    (c) Acquisition of Supporting Information.--In preparing the report 
under subsection (a), the Comptroller General shall seek to obtain views 
from the following persons:
            (1) The Secretary of Defense and the Secretaries of the 
        military departments.
            (2) The Secretary of Veterans Affairs.
            (3) The Secretary of Labor.
            (4) Members of the Armed Forces who have received transition 
        assistance under the programs covered by the report and members 
        of the Armed Forces who have declined to accept transition 
        assistance offered under such programs.
            (5) Representatives of military service organizations and 
        representatives of veterans' service organizations.
            (6) Persons having expertise in health care (including 
        mental health care) provided under the Defense Health Program, 
        including Department of Defense personnel, Department of 
        Veterans Affairs personnel, and persons in the private sector.

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

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

[[Page 118 STAT. 1942]]

Sec. 607. Repeal of requirement that members entitled to basic allowance 
           for subsistence pay subsistence charges while hospitalized.

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

              Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

                        Subtitle F--Other Matters

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

[[Page 118 STAT. 1943]]

                     Subtitle A--Pay and Allowances

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

    (a) Waiver of <<NOTE: 37 USC 1009 note.>> Section 1009 Adjustment.--
The adjustment to become effective during fiscal year 2005 required by 
section 1009 of title 37, United States Code, in the rates of monthly 
basic pay authorized members of the uniformed services shall not be 
made.

    (b) Increase in Basic Pay.--Effective on January 1, 2005, the rates 
of monthly basic pay for members of the uniformed services are increased 
by 3.5 percent.

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

    (a) Entitlement Not Affected by Receipt of Imminent Danger Pay and 
Family Separation Allowance.--Subsection (b) of section 402a of title 
37, United States Code, is amended--
            (1) in paragraph (2), by striking ``the Secretary--'' and 
        all that follows through ``shall take into consideration'' and 
        inserting ``the Secretary concerned shall take into 
        consideration''; and
            (2) by adding at the end the following new paragraph:

    ``(3) In determining whether a member meets the eligibility criteria 
under paragraph (1), the Secretary concerned shall not take into 
consideration--
            ``(A) the amount of the supplemental subsistence allowance 
        that is payable under this section;
            ``(B) the amount of any special pay that is payable to the 
        member under section 310 of this section, relating to duty 
        subject to hostile fire or imminent danger; or
            ``(C) the amount of any family separation allowance that is 
        payable to the member under section 427 of this title.''.

    (b) Relation to Other Federal Assistance.--Such section is further 
amended--
            (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following new 
        subsection (g):

    ``(g) Eligibility for Other Federal Assistance.--(1) A child or 
spouse of a member of the armed forces receiving the supplemental 
subsistence allowance under this section who, except on account of the 
receipt of such allowance, would be eligible to receive a benefit 
described in paragraph (2) shall be considered to be eligible for that 
benefit notwithstanding the receipt of such allowance.
    ``(2) The benefits referred to in paragraph (1) are as follows:
            ``(A) Assistance provided under the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1751 et seq.).
            ``(B) Assistance provided under the Child Nutrition Act of 
        1966 (42 U.S.C. 1771 et seq.).
            ``(C) A service provided under the Head Start Act (42 U.S.C. 
        9831 et seq.).
            ``(D) Assistance under the Child Care and Development Block 
        Grant Act of 1990 (42 U.S.C. 9858 et seq.).

[[Page 118 STAT. 1944]]

    ``(3) A household that includes a member of the armed forces 
receiving the supplemental subsistence allowance under this section and 
that, except on account of the receipt of such allowance, would be 
eligible to receive a benefit under the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621 et seq.) shall be considered to 
be eligible for that benefit notwithstanding the receipt of such 
allowance.''.
    (c) Effective Date.--The <<NOTE: 37 USC 402a note.>> amendments made 
by this section shall apply in determining, on or after the date of the 
enactment of this Act, the eligibility of a person for a supplemental 
subsistence allowance under section 402a of title 37, United States 
Code, or for Federal assistance under a law specified in subsection (g) 
of such section, as so amended.

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

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

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

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

[[Page 118 STAT. 1945]]

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

    (a) Eligibility for Reimbursement.--Section 405 of title 37, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Nonrecurring Expenses.--(1) The Secretary concerned may 
reimburse a member of the uniformed services on duty as described in 
subsection (a) for a nonrecurring expense incurred by the member 
incident to such duty that--
            ``(A) is directly related to the conditions or location of 
        the duty;
            ``(B) is of a nature or a magnitude not normally incurred by 
        members of the uniformed services on duty inside the continental 
        United States; and
            ``(C) is not included in the per diem determined under 
        subsection (b) as payable to the member under subsection (a).

    ``(2) Any reimbursement provided to a member under paragraph (1) is 
in addition to a per diem payable to that member under subsection 
(a).''.
    (b) Use of Defined Term Continental United States.--(1) Subsection 
(a) of such section is amended by striking ``outside of the United 
States or in Hawaii or Alaska'' and inserting ``outside of the 
continental United States''.
    (2) The heading of such section is amended to read as follows:

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

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

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

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

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

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

    ``(a) Eligibility; Amount Advanced.--If a member of the armed forces 
is assigned to duty in an area for which special pay under section 310 
of this title is available and the assignment is pursuant to orders 
specifying an assignment of one year or more (or the assignment is 
extended beyond one year), the member may request, during the period of 
the assignment, the advanced payment of not more than three months of 
the basic pay of the member.
    ``(b) Consideration of Request.--A request by a member described in 
subsection (a) for the advanced payment of a single month of basic pay 
shall be granted. The Secretary concerned may grant a member's request 
for a second or third month of advanced basic pay during the assignment 
upon a showing of financial hardship.

[[Page 118 STAT. 1946]]

    ``(c) Recoupment of Advanced Pay.--The Secretary concerned shall 
recoup an advance made on the basic pay of a member under this section 
in equal installments over a one-year period beginning as provided in 
subsection (d). If the member is serving on active duty for any month 
during the recoupment period, the amount of the installment for the 
month shall be deducted from the basic pay of the member for that month. 
The estate of a deceased member shall not be required to repay any 
portion of the advanced pay paid to the member and not repaid before the 
death of the member.
    ``(d) Commencement of Recoupment.--The recoupment period for an 
advancement of basic pay to a member under this section shall commence 
on the first day of the first month beginning on or after the date on 
which the member receives the advanced pay.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

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

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

[[Page 118 STAT. 1947]]

    (e) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.
    (f) Prior Service Enlistment Bonus.--Section 308i(f ) of such title 
is amended by striking ``December 31, 2004'' and inserting ``December 
31, 2005''.

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

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

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

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

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

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.
    (b) Assignment Incentive Pay.--Section 307a(f) of such title is 
amended by striking ``December 31, 2005'' and inserting ``December 31, 
2006''.

[[Page 118 STAT. 1948]]

    (c) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (d) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (e) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2004'' and inserting ``December 31, 2005''.
    (f) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.

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

    Section 301 of title 37, United States Code, is amended--
            (1) in subsection (d), by inserting ``(1)'' after ``(d)'';
            (2) by redesignating subsection (e) as paragraph (2) of 
        subsection (d); and
            (3) by inserting after subsection (d) the following new 
        subsection (e):

    ``(e) A member of a uniformed service who is entitled to basic pay 
may be paid incentive pay under this subsection, at a monthly rate not 
to exceed $150, for any month during which the member performs duty 
involving regular participation as a firefighting crew member, as 
determined by the Secretary concerned.''.

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

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

SEC. 617. ASSIGNMENT INCENTIVE PAY.

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

[[Page 118 STAT. 1949]]

    (c) Effective Date.--Paragraph (2) of <<NOTE: 37 USC 307a 
note.>> section 307a(e) of title 37, United States Code, as added by 
subsection (b), shall apply with respect to authorized leave occurring 
on or after the date of the enactment of this Act.

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

    (a) Active-Duty Reenlistment Bonus.--(1) Paragraph (1) of subsection 
(a) of section 308 of title 37, United States Code, is amended--
            (A) in the matter preceding subparagraph (A), by striking 
        ``A member'' and inserting ``The Secretary concerned may pay a 
        bonus under paragraph (2) to a member'';
            (B) in subparagraph (A), by striking ``fourteen years'' and 
        inserting ``16 years'';
            (C) in subparagraph (D), by striking the semicolon at the 
        end and inserting a period; and
            (D) by striking ``may be paid a bonus as provided in 
        paragraph (2).''.

    (2) Paragraph (3) of such subsection is amended by striking ``16 
years'' and inserting ``18 years''.
    (b) Selected Reserve Reenlistment Bonus.--(1) Subsection (a) of 
section 308b of title 37, United States Code, is amended--
            (A) in the matter preceding paragraph (1), by striking ``An 
        enlisted member'' and inserting ``The Secretary concerned may 
        pay a bonus under subsection (b) to an enlisted member'';
            (B) in paragraph (1), by striking ``less than 14 years'' and 
        inserting ``not more than 16 years'';
            (C) in paragraph (2), by striking the semicolon at the end 
        and inserting a period; and
            (D) by striking ``may be paid a bonus as provided in 
        subsection (b).''.

    (2) Subsection (b)(1) of such section is amended--
            (A) in subparagraph (A), by striking ``$5,000'' and 
        inserting ``$15,000'';
            (B) in subparagraph (B), by striking ``$2,500'' and 
        inserting ``$7,500''; and
            (C) in subparagraph (C), by striking ``$2,000'' and 
        inserting ``$6,000''.

    (3) Paragraph (2) of subsection (b) of such section is amended to 
read as follows:
    ``(2) Bonus payments authorized under this section may be paid in 
either a lump sum or in installments. If the bonus is paid in 
installments, the initial payment shall be not less than 50 percent of 
the total bonus amount. The Secretary concerned shall prescribe the 
amount of each subsequent installment payment and the schedule for 
making the installment payments.''.
    (4) Subsection (c) of such section is amended--
            (A) in the subsection heading, by striking ``; Limitation on 
        Number of Bonuses''; and
            (B) by striking paragraph (2) and redesignating paragraph 
        (3) as paragraph (2).

    (c) Selected Reserve Enlistment Bonus.--(1) Subsection (b) of 
section 308c of title 37, United States Code, is amended by striking 
``$8,000'' and inserting ``$10,000''.
    (2) Subsection (f) of such section is amended to read as follows:

[[Page 118 STAT. 1950]]

    ``(f) A member entitled to a bonus under this section who is called 
or ordered to active duty shall be paid, during that period of active 
duty, any amount of the bonus that becomes payable to the member during 
that period of active duty.''.
    (d) Ready Reserve Enlistment Bonus for Persons Without Prior 
Service.--Section 308g(b) of title 37, United States Code, is amended--
            (1) by striking ``$1,000'' and inserting ``$3,000''; and
            (2) by adding at the end the following new sentence: ``A 
        person entitled to a bonus under this section who is called or 
        ordered to active duty shall be paid, during that period of 
        active duty, any amount of the bonus that becomes payable to the 
        member during that period of active duty.''.

    (e) Prior Service Ready Reserve Bonus.--Section 308h(b) of title 37, 
United States Code, is amended--
            (1) in paragraph (2)(A), by striking ``$1,500'' and 
        inserting ``$3,000'';
            (2) in paragraph (2)(B), by striking ``$750'' and inserting 
        ``$1,500''; and
            (3) by adding at the end the following new paragraph:

    ``(4) A person entitled to a bonus under this section who is called 
or ordered to active duty shall be paid, during that period of active 
duty, any amount of the bonus that becomes payable to the member during 
that period of active duty.''.
    (f) Prior Service Enlistment Bonus for Selected Reserve.--(1) 
Subsection (a)(2)(A) of section 308i of title 37, United States Code, is 
amended by striking ``less than 14 years'' and inserting ``not more than 
16 years''.
    (2) Paragraph (1) of subsection (b) of such section is amended--
            (A) in subparagraph (A), by striking ``$8,000'' and 
        inserting ``$15,000'';
            (B) in subparagraph (B), by striking ``$4,000'' and 
        inserting ``$7,500''; and
            (C) in subparagraph (C), by striking ``$3,500'' and 
        inserting ``$6,000''.

    (3) Such subsection is further amended by adding at the end the 
following new paragraph:
    ``(3) A person entitled to a bonus under this section who is called 
or ordered to active duty shall be paid, during that period of active 
duty, any amount of the bonus that becomes payable to the member during 
that period of active duty.''.
    (g) Effective Date.--The <<NOTE: 37 USC 308 note.>> amendment made 
by subsection (a)(2) shall apply only with respect to the computation of 
a bonus under section 308(a)(2)(A) of title 37, United States Code, made 
on or after the date of the enactment of this Act.

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

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

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

    ``(a) Affiliation Bonus.--(1) The Secretary concerned may pay an 
affiliation bonus under this section to an eligible officer in any of 
the armed forces who enters into an agreement with the Secretary to 
serve, for the period specified in the agreement, in

[[Page 118 STAT. 1951]]

the Selected Reserve of the Ready Reserve of an armed force under the 
Secretary's jurisdiction--
            ``(A) in a critical officer skill designated under paragraph 
        (3); or
            ``(B) to meet a manpower shortage in--
                    ``(i) a unit of that Selected Reserve; or
                    ``(ii) a particular pay grade in that armed force.

    ``(2) An officer is eligible for an affiliation bonus under this 
section if the officer--
            ``(A) either--
                    ``(i) is serving on active duty for a period of more 
                than 30 days; or
                    ``(ii) is a member of a reserve component not on 
                active duty and, if the member formerly served on active 
                duty, was released from active duty under honorable 
                conditions;
            ``(B) has not previously served in the Selected Reserve of 
        the Ready Reserve; and
            ``(C) is not entitled to receive retired or retainer pay.

    ``(3)(A) The Secretary concerned shall designate for an armed force 
under the Secretary's jurisdiction the critical officer skills to which 
the bonus authority under this subsection is to be applied.
    ``(B) A skill may be designated as a critical officer skill for an 
armed force under subparagraph (A) if, to meet requirements of that 
armed force, it is critical for that armed force to have a sufficient 
number of officers who are qualified in that skill.
    ``(4) An affiliation bonus payable pursuant to an agreement under 
this section to an eligible officer accrues on the date on which the 
person is assigned to a unit or position in the Selected Reserve 
pursuant to such agreement.
    ``(b) Accession Bonus.--(1) The Secretary concerned may pay an 
accession bonus under this section to an eligible person who enters into 
an agreement with the Secretary--
            ``(A) to accept an appointment as an officer in the armed 
        forces; and
            ``(B) to serve in the Selected Reserve of the Ready Reserve 
        in a skill designated under paragraph (2) for a period specified 
        in the agreement.

    ``(2)(A) The Secretary concerned shall designate for an armed force 
under the Secretary's jurisdiction the officer skills to which the 
authority under this subsection is to be applied.
    ``(B) A skill may be designated for an armed force under 
subparagraph (A) if, to mitigate a current or projected significant 
shortage of personnel in that armed force who are qualified in that 
skill, it is critical to increase the number of persons accessed into 
that armed force who are qualified in that skill or are to be trained in 
that skill.
    ``(3) An accession bonus payable to a person pursuant to an 
agreement under this section accrues on the date on which that agreement 
is accepted by the Secretary concerned.
    ``(c) Period of Obligated Service.--An agreement entered into with 
the Secretary concerned under this section shall require the person 
entering into that agreement to serve in the Selected Reserve for a 
specified period. The period specified in the agreement shall be any 
period not less than three years that the Secretary concerned determines 
appropriate to meet the needs of the reserve component in which the 
service is to be performed.

[[Page 118 STAT. 1952]]

    ``(d) Amount.--The amount of a bonus under this section may be any 
amount not in excess of $6,000 that the Secretary concerned determines 
appropriate.
    ``(e) Payment.--(1) Upon acceptance of a written agreement by the 
Secretary concerned under this section, the total amount of the bonus 
payable under the agreement becomes fixed. The agreement shall specify 
whether the bonus is to be paid in one lump sum or in installments.
    ``(2) A person entitled to a bonus under this section who is called 
or ordered to active duty shall be paid, during that period of active 
duty, any amount of the bonus that becomes payable to the member during 
that period of active duty.
    ``(f) Relation to Other Accession Bonus Authority.--A person may not 
receive an affiliation bonus or accession bonus under this section and 
financial assistance under chapter 1608, 1609, or 1611 of title 10, or 
under section 302g of this title, for the same period of service.
    ``(g) Repayment for Failure To Commence or Complete Obligated 
Service.--(1) A person who, after receiving all or part of the bonus 
under an agreement entered into by that person under this section, does 
not accept a commission or an appointment as an officer or does not 
commence to participate or does not satisfactorily participate in the 
Selected Reserve for the total period of service specified in the 
agreement shall repay to the United States such compensation or benefit, 
except under conditions prescribed by the Secretary concerned.
    ``(2) The Secretary concerned shall include in each agreement 
entered into by the Secretary under this section the requirements that 
apply for any repayment under this subsection, including the method for 
computing the amount of the repayment and any exceptions.
    ``(3) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States. A 
discharge in bankruptcy under title 11 that is entered less than five 
years after the termination of an agreement entered into under this 
section does not discharge a person from a debt arising under an 
agreement entered into under this subsection or a debt arising under 
paragraph (1).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
308i the following new item:

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

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

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

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

    ``(a) Availability of Special Pay.--Subject to subsection (c), the 
Secretary concerned may pay monthly special pay under this section to a 
member of the uniformed services who is entitled to basic pay under 
section 204 of this title and who--
            ``(1) is qualified in a uniformed services specialty 
        requiring proficiency in a foreign language identified by the 
        Secretary

[[Page 118 STAT. 1953]]

        concerned as a foreign language in which it is necessary to have 
        personnel proficient because of national defense or public 
        health considerations;
            ``(2) received training, under regulations prescribed by the 
        Secretary concerned, designed to develop a proficiency in such a 
        foreign language;
            ``(3) is assigned to duties requiring a proficiency in such 
        a foreign language; or
            ``(4) is proficient in a foreign language for which the 
        uniformed service may have a critical need, as determined by the 
        Secretary concerned.

    ``(b) Availability of Bonus.--Subject to subsection (c), the 
Secretary concerned may pay an annual bonus under this section to a 
member of a reserve component who satisfies the eligibility requirements 
specified in paragraph (1), (2), (3), or (4) of subsection (a).
    ``(c) Certification of Proficiency.--To be eligible to receive 
special pay or a bonus under this section, a member described in 
subsection (a) or (b) must be certified by the Secretary concerned as 
being proficient in the foreign language for which the special pay or 
bonus is offered. The certification of the member shall expire at the 
end of the one-year period beginning on the first day of the first month 
beginning on or after the certification date.
    ``(d) Special Pay and Bonus Amounts.--(1) The monthly rate for 
special pay paid under subsection (a) may not exceed $1,000.
    ``(2) The maximum amount of the bonus paid to a member under 
subsection (b) may not exceed $6,000 for the one-year period covered by 
the certification of the member. The Secretary concerned may pay the 
bonus in a single lump sum at the beginning of the certification period 
or in installments during the certification period.
    ``(e) Relationship to Other Pay or Allowance.--(1) Except as 
provided in paragraph (2), special pay or a bonus paid under this 
section is in addition to any other pay or allowance payable to a member 
under any other provision of law.
    ``(2) If a member of a reserve component serving on active duty 
receives special pay under subsection (a) for any month occurring during 
a certification period in which the member received, or is receiving, a 
bonus under subsection (b), the amount of the special pay paid to the 
member for the month shall be reduced by an amount equal to \1/12\ of 
the bonus amount.
    ``(f) Certification Interrupted by Contingency Operation.--(1) 
Notwithstanding subsection (c), the Secretary concerned may waive the 
certification requirement under such subsection and pay monthly special 
pay or a bonus under this section to a member who--
            ``(A) is assigned to duty in connection with a contingency 
        operation;
            ``(B) is unable to schedule or complete the certification 
        required by subsection (c) because of that assignment; and
            ``(C) except for the lack of such certification, satisfies 
        the eligibility requirements for receipt of special pay under 
        subsection (a) or a bonus under subsection (b), whichever 
        applies to the member.

    ``(2) For purposes of providing an annual bonus to a member under 
the authority of this subsection, the Secretary concerned may treat the 
date on which the member was assigned to duty

[[Page 118 STAT. 1954]]

in connection with the contingency operation as equivalent to a 
certification date. In the case of a member whose certification will 
expire during such a duty assignment, the Secretary shall commence the 
next one-year certification period on the date on which the prior 
certification period expires.
    ``(3) A member who is paid special pay or a bonus under the 
authority of this subsection shall complete the certification required 
by subsection (c) for the foreign language for which the special pay or 
bonus was paid not later than the end of the 180-day period beginning on 
the date on which the member is released from the assignment in 
connection with the contingency operation. The Secretary concerned may 
extend that period for a member in accordance with regulations 
prescribed under subsection (h).
    ``(4) If a member fails to obtain the required certification under 
subsection (c) before the end of the period provided under paragraph 
(3), the Secretary concerned may require the member to repay all or a 
portion of the bonus in the manner provided in subsection (g).
    ``(g) Repayment of Bonus.--(1) The Secretary concerned may require a 
member who receives a bonus under this section, but who does not satisfy 
an eligibility requirement specified in paragraph (1), (2), (3), or (4) 
of subsection (a) for the entire certification period, to repay to the 
United States an amount which bears the same ratio to the total amount 
of the bonus paid to the member as the unsatisfied portion of the 
certification period bears to the entire certification period.
    ``(2) An obligation to repay the United States imposed under 
paragraph (1) or subsection (f)(4) is for all purposes a debt owed to 
the United States. A discharge in bankruptcy under title 11 that is 
entered for the member less than five years after the expiration of the 
certification period does not discharge the member from a debt arising 
under this paragraph. This paragraph applies to any case commenced under 
title 11 after the date of the enactment of this section.
    ``(h) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the armed forces 
under the jurisdiction of the Secretary, by the Secretary of Homeland 
Security for the Coast Guard when the Coast Guard is not operating as a 
service in the Navy, by the Secretary of Health and Human Services for 
the Commissioned Corps of the Public Health Service, and by the 
Secretary of Commerce for the National Oceanic and Atmospheric 
Administration.''.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by striking the item relating to section 316 and 
inserting the following new item:

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

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

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

    Section 323(a) of title 37, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (1);

[[Page 118 STAT. 1955]]

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

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

    (a) Eligibility.--Section 326 of title 37, United States Code, is 
amended--
            (1) in subsection (a), by inserting ``of a regular or 
        reserve component'' after ``an eligible member'';
            (2) in subsection (b)--
                    (A) by striking ``if--'' and all that follows 
                through ``at the time'' and inserting ``if, at the 
                time''; and
                    (B) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively; and
            (3) in subsection (c)(2), by inserting ``regular or reserve 
        component of the'' after ``chief personnel officer of the''.

    (b) Amount of Bonus.--Subsection (c)(1) of such section is amended 
by inserting before the period at the end the following: ``, in the case 
of a member of a regular component of the armed forces, and $2,000, in 
the case of a member of a reserve component of the armed forces''.

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

    (a) Imminent Danger Pay.--(1) <<NOTE: Effective dates.>> 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).

[[Page 118 STAT. 1956]]

            Subtitle C--Travel and Transportation Allowances

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

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

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

    (a) Removal of Limitation on Number of Family Members.--Subsection 
(a)(1) of section 411h of title 37, United States Code, is amended--
            (1) by striking ``two family members'' and inserting ``three 
        family members''; and
            (2) by adding at the end the following new sentence: ``In 
        circumstances determined to be appropriate by the Secretary 
        concerned, the Secretary may waive the limitation on the number 
        of family members provided travel and transportation under this 
        section.''.

    (b) Availability of Per Diem.--Such section is further amended--
            (1) in subsection (a)(1), by inserting ``travel and'' before 
        ``transportation''; and
            (2) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)''; and
                    (B) by adding at the end the following new 
                paragraph:

    ``(2) In addition to the transportation authorized by subsection 
(a), the Secretary concerned may provide a per diem allowance or 
reimbursement for the actual and necessary expenses of the travel, or a 
combination thereof, but not to exceed the rates established under 
section 404(d) of this title.''.
    (c) Effective Date.--Section <<NOTE: 37 USC 411h note.>> 411h of 
title 37, United States Code, as amended by this section, shall apply to 
travel and transportation authorized under such section that is provided 
on or after October 1, 2004, to family members of a member of the Armed 
Forces who is ill or injured as described in such section.

[[Page 118 STAT. 1957]]

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

    Section 430(b) of title 37, United States Code, is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) The allowance authorized under paragraph (1) for the travel of 
an eligible dependent may include reimbursement for costs incurred by or 
on behalf of the dependent for lodging of the dependent that is 
necessitated by an interruption in the travel caused by extraordinary 
circumstances prescribed in the regulations under subsection (a). The 
amount of the reimbursement shall be determined using the rate 
applicable to such circumstances.''.

              Subtitle D--Retired Pay and Survivor Benefits

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

    (a) Computation of High-36 Month Average.--Subsection (c) of section 
1407 of title 10, United States Code, is amended by adding at the end 
the following new paragraph:
            ``(3) Special Rule for Reserve Component Members.--In the 
        case of a member of a reserve component who is entitled to 
        retired pay under section 1201 or 1202 of this title, the 
        member's high-three average (notwithstanding paragraphs (1) and 
        (2)) is computed in the same manner as prescribed in paragraphs 
        (2) and (3) of subsection (d) for a member entitled to retired 
        pay under section 1204 or 1205 of this title.''.

    (b) Effective Date.--Paragraph (3) of <<NOTE: 10 USC 1407 
note.>> section 1407(c) of title 10, United States Code, as added by 
subsection (a), shall take effect--
            (1) for purposes of determining an annuity under subchapter 
        II or III of chapter 73 of that title, with respect to deaths on 
        active duty on or after September 10, 2001; and
            (2) for purposes of determining the amount of retired pay of 
        a member of a reserve component entitled to retired pay under 
        section 1201 or 1202 of such title, with respect to such 
        entitlement that becomes effective on or after the date of the 
        enactment of this Act.

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

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

[[Page 118 STAT. 1958]]

    (b) Conforming Amendment.--Subsection (c) of such section is amended 
in the matter preceding paragraph (1) by inserting ``that pursuant to 
the second sentence of subsection (a)(1) is subject to this subsection'' 
after ``a qualified retiree''.

SEC. 643. DEATH BENEFITS ENHANCEMENT.

    (a) Actions on Fiscal Year 2004 Death Benefits Study.--(1) The 
Secretary of Defense shall expedite the completion and submission of the 
report, which was due on March 1, 2004, of the results of the study of 
the Federal death benefits for survivors of deceased members of the 
Armed Forces required by section 647(b) of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 
1520).
    (2) The President <<NOTE: President.>> should promptly transmit to 
Congress any recommendation for legislation, together with a request for 
appropriations, that the President determines necessary to implement any 
death benefits enhancements that are recommended in the report referred 
to in paragraph(1).

    (b) Increases of Death Gratuity Consistent With Increases of Rates 
of Basic Pay.--Section 1478 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by inserting ``(as adjusted under 
        subsection (c))'' before the period at the end of the first 
        sentence; and
            (2) by adding at the end the following new subsection:

    ``(c) Effective on the date on which rates of basic pay under 
section 204 of title 37 are increased under section 1009 of that title 
or any other provision of law, the amount of the death gratuity in 
effect under subsection (a) shall be increased by the same overall 
average percentage of the increase in the rates of basic pay taking 
effect on that date.''.
    (c) Fiscal Year 2005 Actions.--At the same time that the President 
transmits to Congress the budget for fiscal year 2006 under section 
1105(a) of title 31, United States Code, the President shall transmit to 
Congress assessments and recommendations regarding legislation on 
proposals that would provide enhanced death benefits for survivors of 
deceased members of the uniformed services. Those assessments and 
recommendations regarding legislation shall include provisions for the 
following:
            (1) Revision of the Servicemembers' Group Life Insurance 
        program under chapter 19 of title 38, United States Code, to 
        provide for--
                    (A) an increase in the maximum benefit amount 
                provided under that program from $250,000 to $350,000;
                    (B) an increase, each fiscal year, in that maximum 
                benefit amount by the same overall average percentage 
                increase that takes effect during such fiscal year in 
                the rates of basic pay under section 204 of title 37, 
                United States Code; and
                    (C) a minimum benefit amount of $100,000 at no cost 
                to the insured members of the uniformed services who 
                elect the maximum coverage, together with an increase in 
                such minimum benefit each fiscal year by the same 
                percentage increase as is described in subparagraph (B).
            (2) An additional set of death benefits for each member of 
        the uniformed services who dies in the line of duty while

[[Page 118 STAT. 1959]]

        on active duty that includes, at a minimum, an additional death 
        gratuity in the amount that--
                    (A) in the case of a member not described in 
                subparagraph (B), is equal to the sum of--
                          (i) the total amount of the basic pay to which 
                      the deceased member would have been entitled under 
                      section 204 of title 37, United States Code, if 
                      the member had not died and had continued to serve 
                      on active duty for an additional year; and
                          (ii) the total amount of all allowances and 
                      special pays that the member would have been 
                      entitled to receive under title 37, United States 
                      Code, over the one-year period beginning on the 
                      member's date of death as if the member had not 
                      died and had continued to serve on active duty for 
                      an additional year with the unit to which the 
                      member was assigned or detailed on such date; and
                    (B) in the case of a member who dies as a result of 
                an injury caused by or incurred while exposed to hostile 
                action (including any hostile fire or explosion and any 
                hostile action from a terrorist source), is equal to 
                twice the amount calculated under subparagraph (A).
            (3) Any other new death benefits or enhancement of existing 
        death benefits that the President recommends.
            (4) Retroactive applicability of the benefits referred to in 
        paragraph (2) and, as appropriate, the benefits recommended 
        under paragraph (3) so as to provide the benefits--
                    (A) for members of the uniformed services who die in 
                line of duty on or after October 7, 2001, of a cause 
                incurred or aggravated while deployed in support of 
                Operation Enduring Freedom; and
                    (B) for members of the uniformed services who die in 
                line of duty on or after March 19, 2003, of a cause 
                incurred or aggravated while deployed in support of 
                Operation Iraqi Freedom.

    (d) Consultation.--The President <<NOTE: President.>> shall consult 
with the Secretary of Defense and the Secretary of Veterans Affairs in 
developing the assessments and recommendations required under subsection 
(c).

    (e) Fiscal Year 2006 Budget Submission.--The budget for fiscal year 
2006 that is transmitted to Congress under section 1105(a) of title 31, 
United States Code, shall include assessments and recommendations on 
legislation (other than draft appropriations) that includes provisions 
that, on the basis of the assumption that any draft legislation 
transmitted under subsection (c) would be enacted and would take effect 
in fiscal year 2006--
            (1) would offset fully the increased outlays that would 
        result from enactment of the provisions of any draft legislation 
        transmitted under subsection (c), for fiscal year 2006 and each 
        of the succeeding nine fiscal years;
            (2) expressly state that they are proposed for the purpose 
        of the offset described in paragraph (1); and
            (3) are included in full in the estimates that are made by 
        the Director of the Congressional Budget Office and the Director 
        of the Office of Management and Budget under section 252(d) of 
        the Balanced Budget and Emergency Deficit Control

[[Page 118 STAT. 1960]]

        Act of 1985 (2 U.S.C. 902(d)) with respect to the fiscal years 
        referred to in paragraph (1).

    (f) Early Submission of Proposal for Additional Death Benefits.--
Congress urges the President to transmit any draft of legislation for 
the additional set of death benefits under paragraph (2) of subsection 
(c) before the time for submission required under that subsection and as 
soon as is practicable after the date of the enactment of this Act.

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

    (a) Phased Increase in Basic Annuity.--
            (1) Standard annuity.--
                    (A) Increase to 55 percent.--Clause (i) of 
                subsection (a)(1)(B) of section 1451 of title 10, United 
                States Code, is amended by striking ``35 percent of the 
                base amount.'' and inserting ``the product of the base 
                amount and the percent applicable to the month, as 
                follows:
                          ``(I) For a month before October 2005, the 
                      applicable percent is 35 percent.
                          ``(II) For months after September 2005 and 
                      before April 2006, the applicable percent is 40 
                      percent.
                          ``(III) For months after March 2006 and before 
                      April 2007, the applicable percent is 45 percent.
                          ``(IV) For months after March 2007 and before 
                      April 2008, the applicable percent is 50 percent.
                          ``(V) For months after March 2008, the 
                      applicable percent is 55 percent.''.
                    (B) Coordination with savings provision under prior 
                law.--Clause (ii) of such subsection is amended by 
                striking ``, at the time the beneficiary becomes 
                entitled to the annuity,''.
            (2) Reserve-component annuity.--Subsection (a)(2)(B)(i)(I) 
        of such section is amended by striking ``35 percent'' and 
        inserting ``the percent specified under subsection (a)(1)(B)(i) 
        as being applicable for the month''.
            (3) Survivors of eligible persons dying on active duty, 
        etc.--
                    (A) Increase to 55 percent.--Clause (i) of 
                subsection (c)(1)(B) of such section is amended--
                          (i) by striking ``35 percent'' and inserting 
                      ``the applicable percent''; and
                          (ii) by adding at the end the following: ``The 
                      percent applicable for a month under the preceding 
                      sentence is the percent specified under subsection 
                      (a)(1)(B)(i) as being applicable for that 
                      month.''.
                    (B) Coordination with savings provision under prior 
                law.--Clause (ii) of such subsection is amended by 
                striking ``, at the time the beneficiary becomes 
                entitled to the annuity,''.
            (4) Clerical amendment.--The heading for subsection 
        (d)(2)(A) of such section is amended to read as follows: 
        ``Computation of annuity.--''.

    (b) Corresponding Phased Elimination of Supplemental Annuity.--

[[Page 118 STAT. 1961]]

            (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 <<NOTE: Effective date.>> April 1, 2008, chapter 73 
        of such title is amended--
                    (A) <<NOTE: 10 USC 1456-1460, 1460a, 1460b.>> 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 <<NOTE: 10 USC 1450 note. Effective 
date.>> Annuities.--
            (1) Periodic recomputation required.--Effective on the first 
        day of each month specified in paragraph (2)--
                    (A) each annuity under section 1450 of title 10, 
                United States Code, that commenced before that month, is 
                computed under a provision of section 1451 of that title 
                amended by subsection (a), and is payable for that month 
                shall be recomputed so as to be equal to the amount that 
                would be in effect if the percent applicable for that 
                month under that provision, as so amended, had been used 
                for the initial computation of the annuity; and
                    (B) each supplemental survivor annuity under section 
                1457 of such title that commenced before that month and 
                is payable for that month shall be recomputed so as to 
                be equal to the amount that would be in effect if the 
                percent applicable for that month under that section, as 
                amended by this section, had been used for the initial 
                computation of the supplemental survivor annuity.
            (2) Time for recomputation.--The requirement under paragraph 
        (1) for recomputation of certain annuities applies with respect 
        to the following months:
                    (A) October 2005.
                    (B) April 2006.
                    (C) April 2007.
                    (D) April 2008.

    (d) Termination of <<NOTE: 10 USC 1460 note.>> Retired Pay 
Reductions for Supplemental Survivor Annuities.--(1) Except as provided 
in paragraph (2), there shall be no reduction in retired pay under 
section 1460 of title 10, United States Code, for any month beginning 
after the date of the enactment of this Act.

    (2) Reductions in retired pay under section 1460 of title 10, United 
States Code, shall be made for months after September 2005 in the case 
of coverage under subchapter III of chapter 73 of title 10, United 
States Code, that is provided (for new coverage or increased coverage) 
through an election under the open season provided by section 645. The 
Secretary of Defense shall take such actions as are necessitated by the 
amendments made by subsection (b) and the requirements of subsection 
(c)(1)(B) to ensure that reductions in retired pay under section 1460 of 
title 10, United

[[Page 118 STAT. 1962]]

States Code, pursuant to the preceding sentence are adjusted to achieve 
the objectives set forth in subsection (b) of that section.

SEC. 645. <<NOTE: 10 USC 1448 note.>> ONE-YEAR OPEN ENROLLMENT PERIOD 
            FOR SURVIVOR BENEFIT PLAN COMMENCING OCTOBER 1, 2005.

    (a) Persons Not Currently Participating in Survivor Benefit Plan.--
            (1) Election of sbp coverage.--An eligible retired or former 
        member may elect to participate in the Survivor Benefit Plan 
        during the open enrollment period specified in subsection (f).
            (2) Election of supplemental annuity coverage.--An eligible 
        retired or former member who elects under paragraph (1) to 
        participate in the Survivor Benefit Plan at the maximum level 
        may also elect during the open enrollment period to participate 
        in the Supplemental Survivor Benefit Plan.
            (3) Eligible retired or former member.--For purposes of 
        paragraphs (1) and (2), an eligible retired or former member is 
        a member or former member of the uniformed services who on the 
        day before the first day of the open enrollment period is not a 
        participant in the Survivor Benefit Plan and--
                    (A) is entitled to retired pay; or
                    (B) would be entitled to retired pay under chapter 
                1223 of title 10, United States Code, but for the fact 
                that such member or former member is under 60 years of 
                age.
            (4) Status under sbp of persons making elections.--
                    (A) Standard annuity.--A person making an election 
                under paragraph (1) by reason of eligibility under 
                paragraph (3)(A) shall be treated for all purposes as 
                providing a standard annuity under the Survivor Benefit 
                Plan.
                    (B) Reserve-component annuity.--A person making an 
                election under paragraph (1) by reason of eligibility 
                under paragraph (3)(B) shall be treated for all purposes 
                as providing a reserve-component annuity under the 
                Survivor Benefit Plan.

    (b) Election To Increase Coverage Under SBP.--A person who on the 
day before the first day of the open enrollment period is a participant 
in the Survivor Benefit Plan but is not participating at the maximum 
base amount or is providing coverage under the Plan for a dependent 
child and not for the person's spouse or former spouse may, during the 
open enrollment period, elect to--
            (1) participate in the Plan at a higher base amount (not in 
        excess of the participant's retired pay); or
            (2) provide annuity coverage under the Plan for the person's 
        spouse or former spouse at a base amount not less than the base 
        amount provided for the dependent child.

    (c) Election for Current SBP Participants To Participate in 
Supplemental SBP.--
            (1) Election.--A person who is eligible to make an election 
        under this paragraph may elect during the open enrollment period 
        to participate in the Supplemental Survivor Benefit Plan.
            (2) Persons eligible.--Except as provided in paragraph (3), 
        a person is eligible to make an election under paragraph (1) if 
        on the day before the first day of the open enrollment period 
        the person is a participant in the Survivor Benefit Plan at the 
        maximum level, or during the open enrollment period the person 
        increases the level of such participation to the

[[Page 118 STAT. 1963]]

        maximum level under subsection (b) of this section, and under 
        that Plan is providing annuity coverage for the person's spouse 
        or a former spouse.
            (3) Limitation on eligibility for certain sbp participants 
        not affected by two-tier annuity computation.--A person is not 
        eligible to make an election under paragraph (1) if (as 
        determined by the Secretary concerned) the annuity of a spouse 
        or former spouse beneficiary of that person under the Survivor 
        Benefit Plan is to be computed under section 1451(e) of title 
        10, United States Code. However, such a person may during the 
        open enrollment period waive the right to have that annuity 
        computed under such section 1451(e). Any such election is 
        irrevocable. A person making such a waiver may make an election 
        under paragraph (1) as in the case of any other participant in 
        the Survivor Benefit Plan.

    (d) Manner of Making Elections.--An election under this section 
shall be made in writing, signed by the person making the election, and 
received by the Secretary concerned before the end of the open 
enrollment period. Any such election shall be made subject to the same 
conditions, and with the same opportunities for designation of 
beneficiaries and specification of base amount, that apply under the 
Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
case may be. A person making an election under subsection (a) to provide 
a reserve-component annuity shall make a designation described in 
section 1448(e) of title 10, United States Code.
    (e) Effective Date for Elections.--Any such election shall be 
effective as of the first day of the first calendar month following the 
month in which the election is received by the Secretary concerned.
    (f) Open Enrollment Period.--The open enrollment period under this 
section is the one-year period beginning on October 1, 2005.
    (g) Effect of Death of Person Making Election Within Two Years of 
Making Election.--If a person making an election under this section dies 
before the end of the two-year period beginning on the effective date of 
the election, the election is void and the amount of any reduction in 
retired pay of the person that is attributable to the election shall be 
paid in a lump sum to the person who would have been the deceased 
person's beneficiary under the voided election if the deceased person 
had died after the end of such two-year period.
    (h) Applicability of Certain Provisions of Law.--The provisions of 
sections 1449, 1453, and 1454 of title 10, United States Code, are 
applicable to a person making an election, and to an election, under 
this section in the same manner as if the election were made under the 
Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
case may be.
    (i) Premium for Open Enrollment Election.--
            (1) Premiums to be charged.--The Secretary of Defense shall 
        prescribe in regulations premiums which a person electing under 
        this section shall be required to pay for participating in the 
        Survivor Benefit Plan pursuant to the election. The total amount 
        of the premiums to be paid by a person under the regulations 
        shall be equal to the sum of--
                    (A) the total amount by which the retired pay of the 
                person would have been reduced before the effective date

[[Page 118 STAT. 1964]]

                of the election if the person had elected to participate 
                in the Survivor Benefit Plan (for the same base amount 
                specified in the election) at the first opportunity that 
                was afforded the member to participate under chapter 73 
                of title 10, United States Code;
                    (B) interest on the amounts by which the retired pay 
                of the person would have been so reduced, computed from 
                the dates on which the retired pay would have been so 
                reduced at such rate or rates and according to such 
                methodology as the Secretary of Defense determines 
                reasonable; and
                    (C) any additional amount that the Secretary 
                determines necessary to protect the actuarial soundness 
                of the Department of Defense Military Retirement Fund 
                against any increased risk for the fund that is 
                associated with the election.
            (2) Premiums to be credited to retirement fund.--Premiums 
        paid under the regulations under paragraph (1) shall be credited 
        to the Department of Defense Military Retirement Fund.

    (h) Definitions.--In this section:
            (1) The term ``Survivor Benefit Plan'' means the program 
        established under subchapter II of chapter 73 of title 10, 
        United States Code.
            (2) The term ``Supplemental Survivor Benefit Plan'' means 
        the program established under subchapter III of chapter 73 of 
        title 10, United States Code.
            (3) The term ``retired pay'' includes retainer pay paid 
        under section 6330 of title 10, United States Code.
            (4) The terms ``uniformed services'' and ``Secretary 
        concerned'' have the meanings given those terms in section 101 
        of title 37, United States Code.
            (5) The term ``Department of Defense Military Retirement 
        Fund'' means the Department of Defense Military Retirement Fund 
        established under section 1461(a) of title 10, United States 
        Code.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

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

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

``Subchapter                                                        Sec.
``I. Defense Commissary and Exchange Systems......................  2481

[[Page 118 STAT. 1965]]

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

         ``SUBCHAPTER I--DEFENSE COMMISSARY AND EXCHANGE SYSTEMS

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

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

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

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

    ``(a) Primary Consideration for Establishment.--The needs of members 
of the armed forces on active duty and the needs of dependents of such 
members shall be the primary consideration whenever the Secretary of 
Defense--
            ``(1) assesses the need to establish a commissary store; and
            ``(2) selects the actual location for the store.

    ``(b) Store Size.--In determining the size of a commissary store, 
the Secretary of Defense shall take into consideration the number of all 
authorized patrons of the defense commissary system who are likely to 
use the store.

[[Page 118 STAT. 1966]]

    ``(c) Closure Considerations.--(1) Whenever assessing whether to 
close a commissary store, the effect of the closure on the quality of 
life of members and dependents referred to in subsection (a) who use the 
store and on the welfare and security of the military community in which 
the commissary is located shall be a primary consideration.
    ``(2) Whenever assessing whether to close a commissary store, the 
Secretary of Defense shall also consider the effect of the closure on 
the quality of life of members of the reserve components of the armed 
forces.
    ``(d) Congressional Notification.--(1) The closure of a commissary 
store shall not take effect until the end of the 90-day period beginning 
on the date on which the Secretary of Defense submits to Congress 
written notice of the reasons supporting the closure. The written notice 
shall include an assessment of the impact closure will have on the 
quality of life for military patrons and the welfare and security of the 
military community in which the commissary is located.
    ``(2) Paragraph (1) shall not apply in the case of the closure of a 
commissary store as part of the closure of a military installation under 
a base closure law.'';
            (4) by inserting sections 2483 and 2484, as redesignated by 
        paragraph (2), after section 2482, as added by paragraph (3);
            (5) in section 2484, as redesignated by paragraph (2)--
                    (A) by striking subsections (a), (b), (c), and (g);
                    (B) by redesignating subsections (d), (e), and (f) 
                as subsections (e), (f), and (g), respectively;
                    (C) by inserting before subsection (f), as so 
                redesignated, the following new subsections:

    ``(a) In General.--As provided in section 2481(a) of this title, 
commissary stores are intended to be similar to commercial grocery 
stores and may sell merchandise similar to that sold in commercial 
grocery stores.

    ``(b) Authorized Commissary Merchandise Categories.--Merchandise 
sold in, at, or by commissary stores may include items in the following 
categories:
            ``(1) Meat, poultry, seafood, and fresh-water fish.
            ``(2) Nonalcoholic beverages.
            ``(3) Produce.
            ``(4) Grocery food, whether stored chilled, frozen, or at 
        room temperature.
            ``(5) Dairy products.
            ``(6) Bakery and delicatessen items.
            ``(7) Nonfood grocery items.
            ``(8) Tobacco products.
            ``(9) Health and beauty aids.
            ``(10) Magazines and periodicals.

    ``(c) Inclusion of Other Merchandise Items.--(1) The Secretary of 
Defense may authorize the sale in, at, or by commissary stores of 
merchandise not covered by a category specified in subsection 
(b). <<NOTE: Notification.>> The Secretary shall notify Congress of all 
merchandise authorized for sale pursuant to this paragraph, as well as 
the removal of any such authorization.

    ``(2) Notwithstanding paragraph (1), the Department of Defense 
military resale system shall continue to maintain the exclusive

[[Page 118 STAT. 1967]]

right to operate convenience stores, shopettes, and troop stores, 
including such stores established to support contingency operations.
    ``(3) A military exchange shall be the vendor for the sale of 
tobacco products in commissary stores and may be the vendor for such 
merchandise as may be authorized for sale in commissary stores under 
paragraph (1). Subsections (d) and (e) shall not apply to the pricing of 
such an item when a military exchange serves as the vendor of the item. 
Commissary store and exchange prices shall be comparable for such an 
item.
    ``(d) Uniform Sales Price Surcharge.--The Secretary of Defense shall 
apply a uniform surcharge equal to five percent on the sales prices 
established under subsection (e) for each item of merchandise sold in, 
at, or by commissary stores.'';
                    (D) in subsection (e), as so redesignated, by 
                striking ``(consistent with this section and section 
                2685 of this title)'' in paragraph (1);
                    (E) in subsection (g), as so redesignated, by 
                striking ``Subsections (c) and (d)'' and inserting 
                ``Subsections (d) and (e)''; and
                    (F) by adding at the end the following new 
                subsection:

    ``(h) Use of Surcharge for Construction, Repair, Improvement, and 
Maintenance.--(1)(A) The Secretary of Defense may use the proceeds from 
the surcharges imposed under subsection (d) only--
            ``(i) to acquire (including acquisition by lease), 
        construct, convert, expand, improve, repair, maintain, and equip 
        the physical infrastructure of commissary stores and central 
        product processing facilities of the defense commissary system; 
        and
            ``(ii) to cover environmental evaluation and construction 
        costs related to activities described in clause (i), including 
        costs for surveys, administration, overhead, planning, and 
        design.

    ``(B) In subparagraph (A), the term `physical infrastructure' 
includes real property, utilities, and equipment (installed and free 
standing and including computer equipment), necessary to provide a 
complete and usable commissary store or central product processing 
facility.
    ``(2)(A) The Secretary of Defense may authorize a nonappropriated 
fund instrumentality of the United States to enter into a contract for 
construction of a shopping mall or similar facility for a commissary 
store and one or more nonappropriated fund instrumentality activities. 
The Secretary may use the proceeds of surcharges under subsection (d) to 
reimburse the nonappropriated fund instrumentality for the portion of 
the cost of the contract that is attributable to construction of the 
commissary store or to pay the contractor directly for that portion of 
such cost.
    ``(B) In subparagraph (A), the term `construction', with respect to 
a facility, includes acquisition, conversion, expansion, installation, 
or other improvement of the facility.
    ``(3) The Secretary of Defense, with the approval of the Director of 
the Office of Management and Budget, may obligate anticipated proceeds 
from the surcharges under subsection (d) for any use specified in 
paragraph (1) or (2), without regard to fiscal year limitations, if the 
Secretary determines that such obligation is necessary to carry out any 
use of such adjustments or surcharges specified in such paragraph.
    ``(4) Revenues received by the Secretary of Defense from the 
following sources or activities of commissary store facilities shall

[[Page 118 STAT. 1968]]

be available for the purposes set forth in paragraphs (1), (2), and (3):
            ``(A) Sale of recyclable materials.
            ``(B) Sale of excess and surplus property.
            ``(C) License fees.
            ``(D) Royalties.
            ``(E) Fees paid by sources of products in order to obtain 
        favorable display of the products for resale, known as business 
        related management fees.'';
            (6) by inserting section 2485, as redesignated by paragraph 
        (2), after section 2484, as amended by paragraph (5); and
            (7) in section 2485, as redesignated by paragraph (2)--
                    (A) in subsection (b)(2), by striking ``section 
                2484'' and inserting ``section 2483'';
                    (B) in subsection (c)(2), by adding at the end the 
                following new sentences: ``The chairman of the governing 
                board shall be a commissioned officer or member of the 
                senior executive service who has demonstrated experience 
                or knowledge relevant to the management of the defense 
                commissary system. In selecting other members of the 
                governing board, the Secretary shall give priority to 
                persons with experience related to logistics, military 
                personnel, military entitlements or other experiences of 
                value of management of commissaries.''; and
                    (C) by adding at the end the following new 
                subsections:

    ``(d) Assignment of Active Duty Members.--(1) Except as provided in 
paragraph (2), members of the armed forces on active duty may not be 
assigned to the operation of a commissary store.
    ``(2)(A) The Secretary of Defense may assign an officer on the 
active-duty list to serve as the Director of the Defense Commissary 
Agency.
    ``(B) Not more than 18 members (in addition to the officer referred 
to in subparagraph (A)) of the armed forces on active duty may be 
assigned to the Defense Commissary Agency. Members who may be assigned 
under this subparagraph to regional headquarters of the agency shall be 
limited to enlisted members assigned to duty as advisers in the regional 
headquarters responsible for overseas commissaries and to veterinary 
specialists.
    ``(e) Reimbursement for Use of Commissary Facilities by Military 
Departments.--(1) The Secretary of a military department shall pay the 
Defense Commissary Agency the amount determined under paragraph (2) for 
any use of a commissary facility by the military department for a 
purpose other than commissary sales or operations in support of 
commissary sales.
    ``(2) The amount payable under paragraph (1) for use of a commissary 
facility by a military department shall be equal to the share of 
depreciation of the facility that is attributable to that use, as 
determined under regulations prescribed by the Secretary of Defense.
    ``(3) The Director of the Defense Commissary Agency shall credit 
amounts paid under paragraph (1) for use of a facility to an appropriate 
account to which proceeds of a surcharge applied under section 2484(d) 
of this title are credited.
    ``(4) This subsection applies with respect to a commissary facility 
that is acquired, constructed, converted, expanded, installed, or 
otherwise improved (in whole or in part) with the proceeds of a 
surcharge applied under section 2484(d) of this title.

[[Page 118 STAT. 1969]]

    ``(f) Donation of Unusable Food.--(1) The Secretary of Defense may 
donate food described in paragraph (2) to any of the following entities:
            ``(A) A charitable nonprofit food bank that is designated by 
        the Secretary of Defense or the Secretary of Health and Human 
        Services as authorized to receive such donations.
            ``(B) A State or local agency that is designated by the 
        Secretary of Defense or the Secretary of Health and Human 
        Services as authorized to receive such donations.
            ``(C) A chapter or other local unit of a recognized national 
        veterans organization that provides services to persons without 
        adequate shelter and is designated by the Secretary of Veterans 
        Affairs as authorized to receive such donations.
            ``(D) A not-for-profit organization that provides care for 
        homeless veterans and is designated by the Secretary of Veterans 
        Affairs as authorized to receive such donations.

    ``(2) Food that may be donated under this subsection is commissary 
store food, mess food, meals ready-to-eat (MREs), rations known as 
humanitarian daily rations (HDRs), and other food available to the 
Secretary of Defense that--
            ``(A) is certified as edible by appropriate food inspection 
        technicians;
            ``(B) would otherwise be destroyed as unusable; and
            ``(C) in the case of commissary store food, is unmarketable 
        and unsaleable.

    ``(3) In the case of commissary store food, a donation under this 
subsection shall take place at the site of the commissary store that is 
donating the food.
    ``(4) This subsection does not authorize any service (including 
transportation) to be provided in connection with a donation under this 
subsection.
    ``(g) Collection of Dishonored Checks.--(1) The Secretary of Defense 
may impose a charge for the collection of a check accepted at a 
commissary store that is not honored by the financial institution on 
which the check is drawn. The imposition and amounts of charges shall be 
consistent with practices of commercial grocery stores regarding 
dishonored checks.
    ``(2)(A) The following persons are liable to the United States for 
the amount of a check referred to in paragraph (1) that is returned 
unpaid to the United States, together with any charge imposed under that 
paragraph:
            ``(i) The person who presented the check.
            ``(ii) Any person whose status and relationship to the 
        person who presented the check provide the basis for that 
        person's eligibility to make purchases at a commissary store.

    ``(B) Any amount for which a person is liable under subparagraph (A) 
may be collected by deducting and withholding such amount from any 
amounts payable to that person by the United States.
    ``(3) Amounts collected as charges imposed under paragraph (1) shall 
be credited to the commissary trust revolving fund.
    ``(4) Appropriated funds may be used to pay any costs incurred in 
the collection of checks and charges referred to in paragraph (1). An 
appropriation account charged a cost under the preceding sentence shall 
be reimbursed the amount of that cost out of funds in the commissary 
trust revolving fund.

[[Page 118 STAT. 1970]]

    ``(5) In this subsection, the term `commissary trust revolving fund' 
means the trust revolving fund maintained by the Department of Defense 
for surcharge collections and proceeds of sales of commissary stores.
    ``(h) Release of Certain Commercially Valuable Information to 
Public.--(1) The Secretary of Defense may limit the release to the 
public of any information described in paragraph (2) if the Secretary 
determines that it is in the best interest of the Department of Defense 
to limit the release of such information. If the Secretary determines to 
limit the release of any such information, the Secretary may provide for 
limited release of such information in accordance with paragraph (3).
    ``(2) Paragraph (1) applies to the following:
            ``(A) Information contained in the computerized business 
        systems of commissary stores or the Defense Commissary Agency 
        that is collected through or in connection with the use of 
        electronic scanners in commissary stores, including the 
        following information:
                    ``(i) Data relating to sales of goods or services.
                    ``(ii) Demographic information on customers.
                    ``(iii) Any other information pertaining to 
                commissary transactions and operations.
            ``(B) Business programs, systems, and applications 
        (including software) relating to commissary operations that were 
        developed with funding derived from commissary surcharges.

    ``(3)(A) The Secretary of Defense may, using competitive procedures, 
enter into a contract to sell information described in paragraph (2).
    ``(B) The Secretary of Defense may release, without charge, 
information on an item sold in commissary stores to the manufacturer or 
producer of that item or an agent of the manufacturer or producer.
    ``(C) The Secretary of Defense shall establish performance 
benchmarks and shall submit information on customer satisfaction and 
performance data to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Representatives.
    ``(D) The Secretary of Defense may, by contract entered into with a 
business, grant to the business a license to use business programs 
referred to in paragraph (2)(B), including software used in or 
comprising any such program. The fee charged for the license shall be 
based on the costs of similar programs developed and marketed by 
businesses in the private sector, determined by means of surveys.
    ``(E) Each contract entered into under this paragraph shall specify 
the amount to be paid for information released or a license granted 
under the contract, as the case may be.
    ``(4) Information described in paragraph (2) may not be released, 
under paragraph (3) or otherwise, in a form that identifies any customer 
or that provides information making it possible to identify any 
customer.
    ``(5) Amounts received by the Secretary under this section shall be 
credited to funds derived from commissary surcharges applied under 
section 2484(e) of this title, shall be merged with those funds, and 
shall be available for the same purposes as the funds with which 
merged.''.

[[Page 118 STAT. 1971]]

    (b) Relation Between Defense Commissary and Exchange Systems.--
Chapter 147 of title 10, United States Code, is further amended--
            (1) by inserting after section 2485, as amended by 
        subsection (a)(7), the following:

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

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

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

    ``(a) Separate Operation of Systems.--(1) Except as provided in 
paragraph (2), the defense commissary system and the exchange stores 
system shall be operated as separate systems of the Department of 
Defense.
    ``(2) Paragraph (1) does not apply to the following:
            ``(A) Combined exchange and commissary stores operated under 
        the authority provided by section 2489 of this title.
            ``(B) NEXMART stores of the Navy Exchange Service Command 
        established before October 1, 2003.

    ``(b) Consolidation or Other Organizational Changes of Defense 
Retail Systems.--(1) The operation and administration of the defense 
retail systems may not be consolidated or otherwise merged unless the 
consolidation or merger is specifically authorized by an Act of 
Congress.
    ``(2) In this subsection, the term `defense retail systems' means 
the defense commissary system and exchange stores system and other 
revenue-generating facilities operated by nonappropriated fund 
instrumentalities of the Department of Defense for the morale, welfare, 
and recreation of members of the armed forces.'';
            (2) by redesignating sections 2488, 2489, 2489a as sections 
        2495, 2495a, and 2495b, respectively; and
            (3) by redesignating sections 2490a and 2492 as sections 
        2488 and 2489, respectively, and inserting such sections after 
        section 2487, as added by paragraph (1).

    (c) MWR Programs and Nonappropriated Fund Instrumentalities.--
Chapter 147 of title 10, United States Code, is further amended--
            (1) by inserting after section 2489, as redesignated and 
        moved by subsection (b)(3), the following:

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

``Sec.
``2491. Uniform funding and management of morale, welfare, and 
           recreation programs.
``2491a. Department of Defense golf courses: limitation on use of 
           appropriated funds.
``2491b. Use of appropriated funds for operation of Armed Forces 
           Recreation Center, Europe: limitation.
``2491c. Retention of morale, welfare, and recreation funds by military 
           installations: limitation.

[[Page 118 STAT. 1972]]

``2492. Nonappropriated fund instrumentalities: contracts with other 
           agencies and instrumentalities to provide and obtain goods 
           and services.
``2493. Fisher Houses: administration as nonappropriated fund 
           instrumentality.
``2494. Nonappropriated fund instrumentalities: furnishing utility 
           services for morale, welfare, and recreation purposes.
``2495. Nonappropriated fund instrumentalities: purchase of alcoholic 
           beverages.
``2495a. Overseas package stores: treatment of United States wines.
``2495b. Sale or rental of sexually explicit material prohibited.'';

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

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

    ``Appropriations for the Department of Defense may be used to 
provide utility services for--
            ``(1) buildings on military installations authorized by 
        regulation to be used for morale, welfare, and recreation 
        purposes; and
            ``(2) other morale, welfare, and recreation activities for 
        members of the armed forces.''; and
            (5) by inserting sections 2495, 2495a, and 2495b, as 
        redesignated by subsection (b)(2), after section 2494, as added 
        by paragraph (4).

    (d) Inclusion of Other Title 10 Provisions.--Sections 2246, 2247, 
and 2219 of title 10, United States Code, are--
            (1) transferred to chapter 147 of such title;
            (2) inserted after section 2491, as redesignated and moved 
        by subsection (c)(2); and
            (3) redesignated as sections 2491a, 2491b, and 2491c, 
        respectively.

    (e) Conforming Amendments.--(1) Section 977 of title 10, United 
States Code, is repealed.
    (2) Section 2868 of such title is amended by striking ``for--'' and 
all that follows through the period at the end and inserting ``for 
buildings constructed at private cost, as authorized by law.''.
    (3) Section 367 of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 1987; 10 U.S.C. 
2482 note) is repealed.
    (f) Clerical Amendments.--(1) The table of sections at the beginning 
of chapter 49 of title 10, United States Code, is amended by striking 
the item relating to section 977.
    (2) The table of sections at the beginning of chapter 131 of such 
title is amended by striking the item relating to section 2219.
    (3) The table of sections at the beginning of subchapter I of 
chapter 134 of such title is amended by striking the items relating to 
sections 2246 and 2247.
    (g) Test Program of <<NOTE: 10 USC 2484 note.>> Sale of Certain 
Items in Commissary Stores.--(1) The Secretary of Defense may conduct a 
test program involving the sale of telephone cards, film, and one-time 
use cameras in not less than 10 commissary stores for a period selected 
by the Secretary, but not less than six months.

    (2) <<NOTE: Deadlines. Reports.>> Within 90 days after the 
completion of the first year of the test program or within 90 days after 
the completion of the test program, whichever occurs first, the 
Secretary shall submit

[[Page 118 STAT. 1973]]

to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report containing the 
results of the test program. The report shall include an analysis of the 
impact of the sale of such items on the exchange dividend and such 
recommendations as the Secretary considers appropriate regarding 
legislative changes necessary to expand the sale of such items in 
commissary stores.
    (h) Comptroller General Study.--(1) The Comptroller General shall 
conduct a study evaluating the impact that the expansion of the 
categories of merchandise authorized for sale in commissary stores has 
on the exchange dividend. The Comptroller General shall determine the 
amounts derived from exchange sales and allocated as exchange dividends 
during the five-year period ending on September 30, 2004, and the 
morale, welfare, and recreation programs supported using such dividends.
    (2) <<NOTE: Deadline.>> The Secretary shall submit the results of 
the study to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives not later 
than March 31, 2006.

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

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

[[Page 118 STAT. 1974]]

                        Subtitle F--Other Matters

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

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

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

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

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

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

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

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

``SEC. 332. <<NOTE: 7 USC 1982.>> RELIEF FOR MOBILIZED MILITARY 
            RESERVISTS FROM CERTAIN AGRICULTURAL LOAN OBLIGATIONS.

    ``(a) Definition of Mobilized Military Reservist.--In this section, 
the term `mobilized military reservist' means an individual who--
            ``(1) is on active duty under section 688, 12301(a), 
        12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of title 
        10, United States Code, or any other provision of law during a 
        war or during a national emergency declared by the President or 
        Congress, regardless of the location at which the active duty 
        service is performed; or

[[Page 118 STAT. 1975]]

            ``(2) in the case of a member of the National Guard, is on 
        full-time National Guard duty (as defined in section 101(d)(5) 
        of title 10, United States Code) under a call to active service 
        authorized by the President or the Secretary of Defense for a 
        period of more than 30 consecutive days under section 502(f) of 
        title 32, United States Code, for purposes of responding to a 
        national emergency declared by the President and supported by 
        Federal funds.

    ``(b) Forgiveness of Interest Payments Due While Borrower Is a 
Mobilized Military Reservist.--Any requirement that a borrower of a 
direct loan made under this title make any interest payment on the loan 
that would otherwise be required to be made while the borrower is a 
mobilized military reservist is rescinded.
    ``(c) Deferral of Principal Payments Due While or After Borrower Is 
a Mobilized Military Reservist.--The due date of any payment of 
principal on a direct loan made to a borrower under this title that 
would otherwise be required to be made while or after the borrower is a 
mobilized military reservist is deferred for a period equal in length to 
the period for which the borrower is a mobilized military reservist.
    ``(d) Nonaccrual of Interest.--Interest on a direct loan made to a 
borrower described in this section shall not accrue during the period 
the borrower is a mobilized military reservist.
    ``(e) Borrower Not Considered To Be Delinquent or Receiving Debt 
Forgiveness.--Notwithstanding section 373 or any other provision of this 
title, a borrower who receives assistance under this section shall not, 
as a result of the assistance, be considered to be delinquent or 
receiving debt forgiveness for purposes of receiving a direct or 
guaranteed loan under this title.''.

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

    (a) Survey of Mobilized Reservists to Determine Differential Between 
Private Sector Income and Military Compensation.--(1) The Secretary of 
Defense shall conduct a survey involving members of the reserve 
components who serve, or have served, on active duty in support of a 
contingency operation at any time during the period beginning on 
September 11, 2001, and ending on September 30, 2005, to determine the 
extent to which such members sustained a reduction in monthly income 
during their period of active duty service compared to their average 
monthly civilian income during the 12 months preceding their 
mobilization.
    (2) To the extent practicable, at least 50 percent of the total 
number of members of the reserve components who have served on active 
duty in support of a contingency operation at any time during the period 
specified in paragraph (1) should be included in the survey. To 
participate in the survey, a member shall agree to make available to the 
Secretary such information as the Secretary may require to accurately 
calculate the average monthly civilian income of the member.
    (b) Calculation of Income Differential.--In the case of each member 
participating in the survey under subsection (a) whose total monthly 
military compensation during the active duty service of the member was 
less, or appeared to be less, than the average monthly civilian income 
of the member, the Secretary of Defense,

[[Page 118 STAT. 1976]]

in cooperation with the member, shall calculate the monthly active-duty 
income differential for the member.
    (c) Collection of Demographic Data.--The Secretary of Defense shall 
collect demographic data regarding each member of a reserve component 
who participates in the survey under subsection (a), including, at a 
minimum, data on the following:
            (1) Reserve component.
            (2) Unit of assignment.
            (3) Grade.
            (4) Age.
            (5) Years of service.
            (6) Sex.
            (7) Marital status.
            (8) Number of dependents.
            (9) General category of private-sector employment, as 
        determined by the Secretary, but to include an employment 
        category to cover members who are self-employed.
            (10) Military occupational specialty, including specifying 
        all surveyed members who are serving in a critical wartime 
        specialty.
            (11) Length of service on active duty during the most recent 
        mobilization.
            (12) Number of times mobilized since September 11, 2001.

    (d) Consideration of Average Monthly Reserve Service Income.--The 
Secretary of Defense shall collect data to calculate the average monthly 
reserve service income of members of the reserve components before their 
mobilization, and consider such data by grade, general category of 
military occupational specialty, and years of service. The Secretary 
shall also consider the effect that the receipt of average monthly 
reserve service income by reserve component members before mobilization 
should have on any obligation of the United States to eliminate or at 
least reduce the monthly active-duty income differential suffered by 
members serving on active duty in support of a contingency operation.
    (e) Effect of Income Loss on Retention.--The Secretary of Defense 
shall include in the survey under subsection (a) a question intended to 
solicit information from members of the reserve components participating 
in the survey regarding the likely effect that a reoccurring monthly 
active-duty income differential while serving on active duty would have 
on their decision to remain in Armed Forces.
    (f) Analysis of Survey Data.--(1) At a minimum, the Secretary of 
Defense shall determine, for each variable listed in paragraphs (2) 
through (12) of subsection (c), the number of members of the reserve 
components surveyed under subsection (a) who sustained a monthly active-
duty income differential for any month during their active duty service 
and compare and contrast that number with the number of members who did 
not experience a monthly active-duty income differential.
    (2) The Secretary shall also determine the average amount of the 
active-duty income differential by reserve component for each variable 
within the characteristics listed in paragraphs (2) through (12) of 
subsection (c).
    (g) Submission of <<NOTE: Deadlines. Reports.>> Survey Results and 
Recommendations.--(1) Not later than January 31, 2006, the Secretary of 
Defense shall submit to Congress and the Comptroller General a report 
containing the results of the surveys conducted under subsection

[[Page 118 STAT. 1977]]

(a), including the results of the analysis of survey data required by 
subsection (f). The Secretary shall include such recommendations as the 
Secretary considers appropriate regarding alternatives for restoring 
income lost by members of the reserve components who sustained a monthly 
active-duty income differential during their active duty service.
    (2) Not later than 90 days after receiving the report of the 
Secretary of Defense submitted under paragraph (1), the Comptroller 
General shall submit to Congress an assessment of the findings and 
recommendations of the Secretary contained in the report.
    (h) Definitions Used in Conducting Survey and Calculations.--In this 
section:
            (1) The term ``monthly active-duty income differential'', 
        with respect to a member of a reserve component who participates 
        in the survey under subsection (a), means the difference 
        between--
                    (A) the average monthly civilian income of the 
                member; and
                    (B) the total monthly military compensation of the 
                member during the active duty service of the member.
            (2) The term ``total monthly military compensation'', with 
        respect to a member of a reserve component who participates in 
        the survey, means the amount, computed on a monthly basis, of 
        the sum of--
                    (A) the amount of the regular military compensation 
                (RMC), as defined in section 101(25) of title 37, United 
                States Code, of the member during the period specified 
                in subsection (a)(1); and
                    (B) any amount of special pay or incentive pay and 
                any allowance (other than an allowance included in 
                regular military compensation) that is paid to the 
                member on a monthly basis during the period specified in 
                subsection (a)(1).
            (3) The term ``average monthly civilian income'', with 
        respect to a member of a reserve component who participates in 
        the survey, means the amount, determined by the Secretary of 
        Defense, of the earned income of the member for the 12 months 
        preceding the first mobilization of the member for active duty 
        service in support of a contingency operation during the period 
        specified in subsection (a)(1), divided by 12.
            (4) The term ``average monthly reserve service income'', 
        with respect to a member of a reserve component who participates 
        in the survey, means the amount, determined by the Secretary of 
        Defense, of the regular military compensation, compensation 
        under section 206 of title 37, United States Code, and any 
        special pays and allowances referred to in paragraph (3)(B) 
        received by the member during the 12 months preceding the first 
        mobilization of the member for active duty service in support of 
        a contingency operation during the period specified in 
        subsection (a)(1), divided by 12.

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

    (a) Requirement for Study.--(1) The Secretary of Defense shall 
conduct a study of the totality of all current and projected

[[Page 118 STAT. 1978]]

disability benefits that are available to disabled members and former 
members of the Armed Forces for service-connected disabilities and, on 
the basis of the results of such study, determine the adequacy of those 
benefits.
    (2) In carrying out the study, the Secretary shall--
            (A) compare the disability benefits for members of the Armed 
        Forces with commercial and other private-sector disability 
        benefits plans that are provided for other persons in the United 
        States who are disabled by causes other than service in the 
        Armed Forces; and
            (B) identify and assess the changes to Department of Defense 
        personnel policies needed to enhance the financial and 
        nonfinancial benefits that are provided to members and former 
        members of the Armed Forces for service-connected disabilities.

    (b) Coordination.--In carrying out the study under subsection (a) 
and preparing the report under subsection (c), the Secretary of Defense 
shall--
            (1) consult with the Secretary of Veterans Affairs and take 
        into consideration the veterans disability benefits programs 
        that are administered by the Secretary of Veterans Affairs; and
            (2) consult with, and obtain the assistance of, the 
        Veterans' Disability Benefits Commission established under title 
        XV of the National Defense Authorization Act for Fiscal Year 
        2004 (Public Law 108-136; 117 Stat. 1676).

    (c) Report.--Not later than 150 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit a report on the 
results of the study under this section to the committees of Congress 
specified in subsection (e). The report shall include the following:
            (1) The Secretary's assessments, analyses, and conclusions 
        resulting from the study.
            (2) Recommended legislation to address the deficiencies in 
        the system of Federal Government disability benefits for 
        disabled members and former members of the Armed Forces that are 
        identified in the course of the study.
            (3) An estimate of the costs of improvements in the system 
        of disability benefits that are provided for in the recommended 
        legislation.

    (d) GAO Study.--(1) The Comptroller General shall conduct a study to 
identify the disability benefits that are payable under Federal, State, 
and local laws for employees of the Federal Government, State 
governments, and local governments. In carrying out the study, the 
Comptroller General shall, to the extent feasible, pay particular 
attention to the disability benefits that are provided for disabilities 
incurred in the performance of jobs in which employees perform tasks 
with risks that are analogous to the risks associated with the 
performance of military tasks by members of the Armed Forces.
    (2) <<NOTE: Deadline.>> Not later than November 1, 2005, the 
Comptroller General shall submit a report on the results of the study 
under paragraph (1) to the committees of Congress specified in 
subsection (e).

    (e) Recipients of Report.--The committees of Congress to which the 
reports under subsections (d) and (e) are to be submitted are as 
follows:
            (1) The Committee on Armed Services and the Committee on 
        Veterans' Affairs of the Senate.

[[Page 118 STAT. 1979]]

            (2) The Committee on Armed Services and the Committee on 
        Veterans' Affairs of the House of Representatives.

                    TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

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

                 Subtitle B--Other Benefits Improvements

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

            Subtitle C--Planning, Programming, and Management

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

     Subtitle D--Medical Readiness Tracking and Health Surveillance

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

[[Page 118 STAT. 1980]]

               Subtitle A--Enhanced Benefits for Reserves

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

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

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

    ``(a) Eligibility.--A member of the Selected Reserve of the Ready 
Reserve of a reserve component of the armed forces is eligible for 
health benefits under TRICARE Standard as provided in this section after 
the member completes service on active duty to which the member was 
called or ordered for a period of more than 30 days on or after 
September 11, 2001, under a provision of law referred to in section 
101(a)(13)(B), if the member--
            ``(1) served continuously on active duty for 90 or more days 
        pursuant to such call or order; and
            ``(2) on or before the date of the release from such active-
        duty service, entered into an agreement with the Secretary 
        concerned to serve continuously in the Selected Reserve for a 
        period of one or more whole years following such date.

    ``(b) Period of Coverage.--(1) TRICARE Standard coverage of a member 
under this section, on the basis of active-duty service performed as 
described in subsection (a), begins upon the expiration of the member's 
entitlement to care and benefits under section 1145(a) of this title 
that is based on the same active-duty service.
    ``(2) Unless earlier terminated under paragraph (3), the period for 
TRICARE Standard coverage of a member under this section shall be equal 
to the lesser of--
            ``(A) one year, in the case of a member who is otherwise 
        eligible but does not serve continuously on active duty for 90 
        days as described in subsection (a) because of an injury, 
        illness, or disease incurred or aggravated while deployed;
            ``(B) one year for each consecutive period of 90 days of 
        continuous active-duty service described in subsection (a); or
            ``(C) the number of whole years for which the member agrees 
        under paragraph (2) of such subsection to continue to serve in 
        the Selected Reserve after the coverage begins.

    ``(3) Eligibility for TRICARE Standard coverage of a member under 
this section shall terminate upon the termination of the member's 
service in the Selected Reserve.
    ``(c) Family Members.--While a member of a reserve component is 
covered by TRICARE Standard under the section, the members of the 
immediate family of such member are eligible for TRICARE Standard 
coverage as dependents of the member.
    ``(d) Premiums.--(1) A member of a reserve component covered by 
TRICARE Standard under this section shall pay a premium for that 
coverage.

[[Page 118 STAT. 1981]]

    ``(2) The Secretary of Defense shall prescribe for the purposes of 
this section one premium for TRICARE Standard coverage of members 
without dependents and one premium for TRICARE Standard coverage of 
members with dependents referred to in subsection (f)(1). The premium 
prescribed for a coverage shall apply uniformly to all covered members 
of the reserve components.
    ``(3) The monthly amount of the premium in effect for a month for 
TRICARE Standard coverage under this section shall be the amount equal 
to 28 percent of the total monthly amount that the Secretary determines 
on an appropriate actuarial basis as being reasonable for that coverage.
    ``(4) The premiums payable by a member of a reserve component under 
this subsection may be deducted and withheld from basic pay payable to 
the member under section 204 of title 37 or from compensation payable to 
the member under section 206 of such title. The Secretary shall 
prescribe the requirements and procedures applicable to the payment of 
premiums.
    ``(5) Amounts collected as premiums under this subsection shall be 
credited to the appropriation available for the Defense Health Program 
Account under section 1100 of this title, shall be merged with sums in 
such Account that are available for the fiscal year in which collected, 
and shall be available under subsection (b) of such section for such 
fiscal year.
    ``(e) Relationship of Service Agreement to Other Service 
Commitments.--The service agreement required of a member of a reserve 
component under subsection (a)(2) is separate from any other form of 
commitment of the member to a period of obligated service in that 
reserve component and may cover any part or all of the same period that 
is covered by another commitment of the member to a period of obligated 
service in that reserve component.
    ``(f) Definitions.--In this section:
            ``(1) The term `immediate family', with respect to a member 
        of a reserve component, means all of the member's dependents 
        described in subparagraphs (A), (D), and (I) of section 1072(2) 
        of this title.
            ``(2) The term `TRICARE Standard' means the Civilian Health 
        and Medical Program of the Uniformed Services option under the 
        TRICARE program.

    ``(g) Regulations.--The Secretary of Defense, in consultation with 
the other administering Secretaries, shall prescribe regulations for the 
administration of this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1076c the 
following new item:

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

    (b) Implementation.--(1) The <<NOTE: Deadline. 10 USC 1076d 
note.>> Secretary of Defense shall implement section 1076d of title 10, 
United States Code, not later than 180 days after the date of the 
enactment of this Act.

    (2)(A) A member of a reserve component of the Armed Forces who 
performed active-duty service described in subsection (a) of section 
1076d of title 10, United States Code, for a period beginning on or 
after September 11, 2001, and was released from that active-duty service 
before the date of the enactment of this Act, or is released from that 
active-duty service on or within 180 days after

[[Page 118 STAT. 1982]]

the date of the enactment of this Act, may, for the purpose of paragraph 
(2) of such subsection, enter into an agreement described in such 
paragraph not later than one year after the date of the enactment of 
this Act. TRICARE Standard coverage (under such section 1076d) of a 
member who enters into such an agreement under this paragraph shall 
begin on the later of--
            (i) the date applicable to the member under subsection (b) 
        of such section; or
            (ii) the date of the agreement.

    (B) The Secretary of Defense shall take such action as is necessary 
to ensure, to the maximum extent practicable, that members of the 
reserve components eligible to enter into an agreement as provided in 
subparagraph (A) actually receive information on the opportunity and 
procedures for entering into such an agreement together with a clear 
explanation of the benefits that the members are eligible to receive as 
a result of entering into such an agreement under section 1076d of title 
10, United States Code.

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

    (a) Study Required.--The Comptroller General shall conduct a study 
on the cost and feasibility of providing a stipend to members of the 
Ready Reserves to offset the cost of continuing private health insurance 
coverage for the members' dependents when the members are on active duty 
for periods of more than 30 days, with the dependents being ineligible 
to enroll in the TRICARE program and payment of the stipend ending when 
the members are no longer on active duty.
    (b) Matters Covered.--The study shall include the following matters:
            (1) Recommendation for a benefit amount and cost to the 
        Department of Defense.
            (2) Potential effects on medical readiness, recruitment, and 
        retention.
            (3) The extent to which the Reserves and members of their 
        families might participate under the stipend program.
            (4) Administrative and management considerations for the 
        Department of Defense.
            (5) Impact of pre-existing conditions on continuity of care 
        for dependents.
            (6) Possible implications for employers.

    (c) Report.--Not later than March 31, 2005, the Comptroller General 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report 
containing the results of the study under this section.

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

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

[[Page 118 STAT. 1983]]

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

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

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

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

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

    (a) Permanent Requirement.--(1) Paragraph (3) of section 1145(a) of 
title 10, United States Code, is amended to read as follows:
    ``(3) Transitional health care for a member under subsection (a) 
shall be available for 180 days beginning on the date on which the 
member is separated from active duty.''.
    (2) The following provisions of law are repealed:
            (A) Section 704 of the National Defense Authorization Act 
        for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1527; 10 
        U.S.C. 1145 note).
            (B) Section 1117 of the Emergency Supplemental 
        Appropriations Act for Defense and for the Reconstruction of 
        Iraq and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1218; 
        10 U.S.C. 1145 note).

    (3) Paragraph (1) of such section 1145(a) is amended by striking 
``applicable''.
    (b) Requirement for Physical Examination.--Such section 1145(a), as 
amended by subsection (a), is further amended by adding at the end the 
following new paragraph:

    ``(4)(A) The Secretary concerned shall require a member of the armed 
forces scheduled to be separated from active duty as described in 
paragraph (2) to undergo a physical examination immediately before that 
separation. <<NOTE: Regulations.>> The physical examination shall be 
conducted in accordance with regulations prescribed by the Secretary of 
Defense.

    ``(B) Notwithstanding subparagraph (A), if a member of the armed 
forces scheduled to be separated from active duty as described in 
paragraph (2) has otherwise undergone a physical examination within 12 
months before the scheduled date of separation from active duty, the 
requirement for a physical examination

[[Page 118 STAT. 1984]]

under subparagraph (A) may be waived in accordance with regulations 
prescribed under this paragraph. Such regulations shall require that 
such a waiver may be granted only with the consent of the member and 
with the concurrence of the member's unit commander.''.

                 Subtitle B--Other Benefits Improvements

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

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

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

    (a) Evaluation Requirement.--The Comptroller General shall evaluate 
the effect of the Exceptional Family Member Program (in this section 
referred to as ``EFMP'') on health, education, and support services in 
selected civilian communities near military installations with a high 
concentration of EFMP enrollees.
    (b) Matters Covered.--The evaluation under subsection (a) shall 
include a discussion of the following:
            (1) Communities that have high concentrations of EFMP 
        enrollees that use State and local health, education, and 
        support services.
            (2) Needs of EFMP enrollees, if any, that are not met by 
        State and local health, education, and support services.
            (3) The burdens, financial and otherwise, placed on State 
        and local health, education, and support services by EFMP 
        enrollees and their families.
            (4) The ability of the TRICARE program to meet the needs of 
        EFMP enrollees and their families.
            (5) Reasons for any limitations of the TRICARE program, the 
        EFMP, and State and local health, education, and support 
        services in providing assistance to EFMP enrollees and their 
        families.
            (6) Recommendations for more effectively meeting the needs 
        of EFMP enrollees and their families.

    (c) Communities Covered.--The evaluation under subsection (a) shall 
examine no fewer than four civilian communities, as determined by the 
Comptroller General, that have high concentrations of EFMP enrollees and 
that are near several military installations, including at least two 
military installations with tenants from more than one of the Armed 
Forces.
    (d) Definitions.--In this section:
            (1) The term ``health, education, and support services'' 
        means services provided to children and other dependents with 
        special needs, including specialized day care, mental health

[[Page 118 STAT. 1985]]

        day treatment services, respite services, counseling, early 
        childhood intervention, special education, and other such 
        services provided for children and other dependents with special 
        needs.
            (2) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.

    (e) Report.--Not later than one year after the date of the enactment 
of this Act, the Comptroller General shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
on the results of the evaluation required under subsection (a), 
including findings and recommendations.

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

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

SEC. 714. IMPROVEMENTS TO PHARMACY BENEFITS PROGRAM.

    (a) Requirement Relating to Prescription Drug Benefits for Medicare-
Eligible Enrollees.--Section 1074g(a)(6) of title 10, United States 
Code, is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following:

    ``(B) For a medicare-eligible beneficiary, the cost-sharing 
requirements may not be in excess of the cost-sharing requirements 
applicable to all other beneficiaries covered by section 1086 of this 
title. For purposes of the preceding sentence, a medicare-eligible 
beneficiary is a beneficiary eligible for health benefits under section 
1086 of this title pursuant to subsection (d)(2) of such section.''.
    (b) Improvement to Uniform Formulary Process.--Section 
1074g(a)(2)(E)(i) of such title is amended by inserting before the 
semicolon the following: ``and additional determinations by the Pharmacy 
and Therapeutics Committee of the relative clinical and cost 
effectiveness of the agents''.

SEC. 715. PROFESSIONAL ACCREDITATION OF MILITARY DENTISTS.

    Section 1077(c) of title 10, United States Code, is amended--
            (1) by striking ``A'' and inserting ``(1) Except as 
        specified in paragraph (2), a''; and
            (2) by adding at the end the following new paragraph:

    ``(2)(A) Dependents who are 12 years of age or younger and are 
covered by a dental plan established under section 1076a of this title 
may be treated by postgraduate dental residents in a dental treatment 
facility of the uniformed services under a graduate dental education 
program accredited by the American Dental Association if--
            ``(i) treatment of pediatric dental patients is necessary in 
        order to satisfy an accreditation standard of the American 
        Dental Association that is applicable to such program, or 
        training in pediatric dental care is necessary for the residents

[[Page 118 STAT. 1986]]

        to be professionally qualified to provide dental care for 
        dependent children accompanying members of the uniformed 
        services outside the United States; and
            ``(ii) the number of pediatric patients at such facility is 
        insufficient to support satisfaction of the accreditation or 
        professional requirements in pediatric dental care that apply to 
        such program or students.

    ``(B) The total number of dependents treated in all facilities of 
the uniformed services under subparagraph (A) in a fiscal year may not 
exceed 2,000.''.

SEC. 716. <<NOTE: 10 USC 1086 note.>> TEMPORARY AUTHORITY FOR WAIVER OF 
            COLLECTION OF PAYMENTS DUE FOR CHAMPUS BENEFITS RECEIVED BY 
            DISABLED PERSONS UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

    (a) Authority To Waive Debt.--(1) The Secretary of Defense, in 
consultation with the other administering Secretaries, may waive (in 
whole or in part) the collection of payments otherwise due from a person 
described in subsection (b) for health benefits received by such person 
under section 1086 of title 10, United States Code, after the 
termination of that person's eligibility for such benefits.
    (2) If the Secretary of Defense waives collection of payments from a 
person under paragraph (1), the Secretary may also authorize a 
continuation of benefits for such person under such section 1086 for a 
period ending not later than the end of the period specified in 
subsection (c) of this section.
    (b) Eligible Persons.--A person is eligible for relief under 
subsection (a)(1) if--
            (1) the person is described in paragraph (1) of subsection 
        (d) of section 1086 of title 10, United States Code;
            (2) except for such paragraph, the person would have been 
        eligible for the health benefits under such section; and
            (3) at the time of the receipt of such benefits--
                    (A) the person satisfied the criteria specified in 
                paragraph (2)(B) of such subsection (d); and
                    (B) the person was unaware of the loss of 
                eligibility to receive the health benefits.

    (c) Period of Applicability.--The authority provided under this 
section to waive collection of payments and to continue benefits shall 
apply, under terms and conditions prescribed by the Secretary of 
Defense, to health benefits provided under section 1086 of title 10, 
United States Code, during the period beginning on July 1, 1999, and 
ending at the end of December 31, 2004.
    (d) Administering Secretaries.--In this subsection, the term 
``administering Secretaries'' has the meaning given such term in section 
1072(3) of title 10, United States Code.

SEC. 717. SERVICES OF MARRIAGE AND FAMILY THERAPISTS.

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

[[Page 118 STAT. 1987]]

Code, is amended by inserting ``marriage and family therapist certified 
as such by a certification recognized by the Secretary of Defense,'' 
after ``psychologist,''.

SEC. 718. <<NOTE: 10 USC 1092 note.>> CHIROPRACTIC HEALTH CARE BENEFITS 
            ADVISORY COMMITTEE.

    (a) Establishment.--Not <<NOTE: Deadline.>> later than 120 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall establish an oversight advisory committee to provide the Secretary 
with advice and recommendations regarding the continued development and 
implementation of an effective program of chiropractic health care 
benefits for members of the uniformed services on active duty.

    (b) Membership.--The advisory committee shall be composed of members 
selected from among persons who, by reason of education, training, and 
experience, are experts in chiropractic health care, as follows:
            (1) Members appointed by the Secretary of Defense in such 
        number as the Secretary determines appropriate for carrying out 
        the duties of the advisory committee effectively, including not 
        fewer than three practicing representatives of the chiropractic 
        health care profession.
            (2) A representative of each of the uniformed services, as 
        designated by the administering Secretary concerned.

    (c) Chairman.--The Secretary of Defense shall designate one member 
of the advisory committee to serve as the Chairman of the advisory 
committee.
    (d) Meetings.--The advisory committee shall meet at the call of the 
Chairman, but not fewer than three times each fiscal year, beginning in 
fiscal year 2005.
    (e) Duties.--The advisory committee shall have the following duties:
            (1) Review and evaluate the program of chiropractic health 
        care benefits provided to members of the uniformed services on 
        active duty under chapter 55 of title 10, United States Code.
            (2) Provide the Secretary of Defense with advice and 
        recommendations as described in subsection (a).
            (3) Upon the Secretary's determination that the program of 
        chiropractic health care benefits referred to in paragraph (1) 
        has been fully implemented, prepare and submit to the Secretary 
        a report containing the advisory committee's evaluation of the 
        implementation of such program.

    (f) Report.--The Secretary of Defense, following receipt of the 
report by the advisory committee under subsection (e)(3), shall submit 
to the Committees on Armed Services of the Senate and of the House of 
Representatives a report containing the following:
            (1) A copy of the advisory committee report, together with 
        the Secretary's comments on the report.
            (2) An explanation of the criteria and rationale that the 
        Secretary used to determine that the program of chiropractic 
        health care benefits was fully implemented.
            (3) The Secretary's views with regard to the future 
        implementation of the program of chiropractic health care 
        benefits.

    (g) Applicability of Temporary Organizations Law.--(1) Section 3161 
of title 5, United States Code, shall apply to the advisory committee 
under this section.

[[Page 118 STAT. 1988]]

    (2) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the oversight advisory committee under this section.
    (h) Termination.--The advisory committee shall terminate 90 days 
after the date on which the Secretary submits the report under 
subsection (f).

            Subtitle C--Planning, Programming, and Management

SEC. 721. <<NOTE: 10 USC 1092 note.>> PILOT PROGRAM FOR HEALTH CARE 
            DELIVERY.

    (a) Pilot Program.--The Secretary of Defense may conduct a pilot 
program at two or more military installations for purposes of testing 
initiatives that build cooperative health care arrangements and 
agreements between military installations and local and regional non-
military health care systems.
    (b) Requirements of Pilot Program.--In conducting the pilot program, 
the Secretary of Defense shall--
            (1) identify and analyze health care delivery options 
        involving the private sector and health care services in 
        military facilities located on the installation;
            (2) determine the cost avoidance or savings resulting from 
        innovative partnerships between the Department of Defense and 
        the private sector;
            (3) study the potential, viability, cost efficiency, and 
        health care effectiveness of Department of Defense health care 
        providers delivering health care in civilian community 
        hospitals; and
            (4) determine the opportunities for and barriers to 
        coordinating and leveraging the use of existing health care 
        resources, including Federal, State, local, and contractor 
        assets.

    (c) Consultation Requirements.--The Secretary of Defense shall 
develop the pilot program in consultation with the Secretaries of the 
military departments, representatives from the military installation 
selected for the pilot program, Federal, State, and local entities, and 
the TRICARE managed care support contractor with responsibility for that 
installation.
    (d) Selection of Military Installation.--The pilot program may be 
implemented at two or more military installations selected by the 
Secretary of Defense. At least one of the selected military 
installations shall meet the following criteria:
            (1) The military installation has members of the Armed 
        Forces on active duty and members of reserve components of the 
        Armed Forces that use the installation as a training and 
        operational base, with members routinely deploying in support of 
        the global war on terrorism.
            (2) The number of members of the Armed Forces on active duty 
        permanently assigned to the military installation is expected to 
        increase over the next five years.
            (3) One or more cooperative arrangements exist at the 
        military installation with civilian health care entities in the 
        form of specialty care services in the military medical 
        treatment facility on the installation.
            (4) There is a military treatment facility on the 
        installation that does not have inpatient or trauma center care 
        capabilities.
            (5) There is a civilian community hospital near the military 
        installation with--

[[Page 118 STAT. 1989]]

                    (A) limited capability to expand inpatient care 
                beds, intensive care, and specialty services; and
                    (B) limited or no capability to provide trauma care.

    (e) Duration of Pilot Program.--Implementation of the pilot program 
developed under this section shall begin not later than May 1, 2005, and 
shall be conducted during fiscal years 2005, 2006, and 2007.
    (f) Reports.--With respect to any pilot program conducted under this 
section, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and of the House of Representatives--
            (1) an interim report on the program, not later than 60 days 
        after commencement of the program; and
            (2) a final report describing the results of the program 
        with recommendations for a model health care delivery system for 
        other military installations, not later than July 1, 2007.

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

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

SEC. 723. STUDY OF MENTAL HEALTH SERVICES.

    (a) Study Required.--The Comptroller General shall conduct a study 
of mental health services available to members of the Armed Forces.
    (b) Persons Covered.--The study shall evaluate the availability and 
effectiveness of existing mental health treatment and screening 
resources--
            (1) for members of the Armed Forces during a deployment to a 
        combat theater;
            (2) for members of the Armed Forces returning from a 
        deployment to a combat theater, both--
                    (A) in the short-term, post-deployment period; and
                    (B) in the long-term, following the post-deployment 
                period;
            (3) for the families of members of the Armed Forces who have 
        been deployed to a combat theater during the time of the 
        deployment;
            (4) for the families of members of the Armed Forces who have 
        been deployed to a combat theater after the member has returned 
        from the deployment; and

[[Page 118 STAT. 1990]]

            (5) for members of the Armed Forces and their families 
        described in this subsection who are members of reserve 
        components.

    (c) Assessment of Obstacles.--The study shall provide an assessment 
of existing obstacles that prevent members of the Armed Forces and 
military families in need of mental health services from obtaining these 
services, including--
            (1) the extent to which existing confidentiality 
        regulations, or lack thereof, inhibit members of the Armed 
        Forces from seeking mental health treatment;
            (2) the implications that a decision to seek mental health 
        services can have on a military career;
            (3) the extent to which a social stigma exists within the 
        Armed Forces that prevents members of the Armed Forces and 
        military families from seeking mental health treatment within 
        the Department of Defense and the individual Armed Forces;
            (4) the extent to which logistical obstacles, particularly 
        with respect to members of the Armed Forces and families 
        residing in rural areas, deter members in need of mental health 
        services from obtaining them; and
            (5) the extent to which members of the Armed Forces and 
        their families are prevented or hampered from obtaining mental 
        health treatment due to the cost of such services.

    (d) Identification of Problems Unique to Reserves.--The study shall 
identify potential problems in obtaining mental health treatment that 
are unique to members of Reserve components.
    (e) Report.--The Comptroller General shall submit to Congress a 
report on the study conducted under this section not later than March 
31, 2005. The report shall contain the results of the study and make 
specific recommendations--
            (1) for improving the effectiveness and accessibility of 
        mental health services provided by Department of Defense to the 
        persons listed in subsection (b), including recommendations to 
        ensure appropriate referrals and a seamless transition to the 
        care of the Department of Veterans Affairs following separation 
        from the Armed Forces; and
            (2) for removing or mitigating any obstacles identified 
        under subsection (c) and problems identified under subsection 
        (d).

SEC. 724. <<NOTE: 10 USC 113 note.>> POLICY FOR TIMELY NOTIFICATION OF 
            NEXT OF KIN OF MEMBERS SERIOUSLY ILL OR INJURED IN COMBAT 
            ZONES.

    (a) Policy Required.--The Secretary of Defense shall prescribe the 
policy of the Department of Defense for providing, in the case of the 
serious illness or injury of a member of the Armed Forces in a combat 
zone, timely notification to the next of kin of the member regarding the 
illness or injury, including information on the condition of the member 
and the location at which the member is receiving treatment. In 
prescribing the policy, the Secretary shall ensure respect for the 
expressed desires of individual members of the Armed Forces regarding 
the notification of next of kin and shall include standards of 
timeliness for both the initial notification of next of kin under the 
policy and subsequent updates regarding the condition and location of 
the member.

[[Page 118 STAT. 1991]]

    (b) Submission of Policy.--Not <<NOTE: Deadline.>> later than 120 
days after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a copy of the policy.

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

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

``Sec. 1116. Payments into the Fund

    ``(a) At the beginning of each fiscal year after September 30, 2005, 
the Secretary of the Treasury shall promptly pay into the Fund from the 
General Fund of the Treasury--
            ``(1) the amount certified to the Secretary by the Secretary 
        of Defense under subsection (c), which shall be the contribution 
        to the Fund for that fiscal year required by section 1115; and
            ``(2) the amount determined by each administering Secretary 
        under section 1111(c) as the contribution to the Fund on behalf 
        of the members of the uniformed services under the jurisdiction 
        of that Secretary.

    ``(b) At the beginning of each fiscal year, the Secretary of Defense 
shall determine the sum of the following:
            ``(1) The amount of the payment for that year under the 
        amortization schedule determined by the Board of Actuaries under 
        section 1115(a) of this title for the amortization of the 
        original unfunded liability of the Fund.
            ``(2) The amount (including any negative amount) of the 
        Department of Defense contribution for that year as determined 
        by the Secretary of Defense under section 1115(b) of this title.
            ``(3) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 1115(c)(2) of this title 
        for the amortization of any cumulative unfunded liability (or 
        any gain) to the Fund resulting from changes in benefits.
            `(4) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 1115(c)(3) of this title 
        for the amortization of any cumulative actuarial gain or loss to 
        the Fund resulting from actuarial assumption changes.
            ``(5) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 1115(c)(4) of this title 
        for the amortization of any cumulative actuarial gain or loss to 
        the Fund resulting from actuarial experience.

    ``(c) The Secretary of Defense shall promptly certify the amount 
determined under subsection (b) each year to the Secretary of the 
Treasury.
    ``(d) At the same time as the Secretary of Defense makes the 
certification under subsection (c), the Secretary shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives the information provided to the Secretary of the 
Treasury under that subsection.''.
    (b) Sense of Congress.--It is the sense of Congress that any 
unsubscribed discretionary budget authority that accrues within the 
national defense budget function as a result of the

[[Page 118 STAT. 1992]]

amendments made by this section shall be applied to cover the unbudgeted 
costs of--
            (1) increases in Army end strengths and modularization;
            (2) increases in Marine Corps end strengths and necessary 
        equipment; and
            (3) Navy shipbuilding requirements.

    (c) Conforming Amendments.--(1) Section 1111(c) of title 10, United 
States Code, is amended in the last sentence by striking ``1116'' and 
all that follows through the end of the sentence and inserting ``1115(b) 
of this title, and such contributions shall be paid into the Fund as 
provided in section 1116(a).''.
    (2) Section 1115(a) of such title is amended by striking ``1116(c)'' 
and inserting ``1116''.
    (3) Section 1115(b) of such title is amended--
            (A) by striking ``(1) The Secretary of Defense'' and all 
        that follows through ``of this title.'' and inserting ``The 
        Secretary of Defense shall determine, before the beginning of 
        each fiscal year after September 30, 2005, the total amount of 
        the Department of Defense contribution to be made to the Fund 
        for that fiscal year for purposes of section 1116(b)(2).'';
            (B) by striking paragraph (2);
            (C) by redesignating subparagraphs (A) and (B) as paragraphs 
        (1) and (2), respectively;
            (D) in each of paragraphs (1) and (2), as so redesignated, 
        by redesignating clauses (i) and (ii) as subparagraphs (A) and 
        (B), respectively; and
            (E) in paragraph (2)(B), as so redesignated, by striking 
        ``subparagraph (A)(ii)'' and inserting ``paragraph (1)(B)''.

    (4) Section 1115(c)(1) of such title is amended by striking ``and 
section 1116(a) of this title''.
    (5) Section 1115(c)(5) of such title is amended by striking 
``1116(c)'' and inserting ``1116''.
    (d) Effective Date.--The <<NOTE: 10 USC 1111 note.>> amendments made 
by this section shall take effect on October 1, 2005.

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

    (a) Investigational New Drugs.--Section 1107(f) of title 10, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``obtaining consent--'' 
        and all that follows through ``(C) is'' and inserting 
        ``obtaining consent is''; and
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:

    ``(2) The waiver authority provided in paragraph (1) shall not be 
construed to apply to any case other than a case in which prior consent 
for administration of a particular drug is required by reason of a 
determination by the Secretary of Health and Human Services that such 
drug is subject to the investigational new drug requirements of section 
505(i) of the Federal Food, Drug, and Cosmetic Act.''.
    (b) Emergency Use Drugs.--Section 1107a(a) of such title is 
amended--
            (1) by inserting ``(A)'' after ``President.--(1)'';

[[Page 118 STAT. 1993]]

            (2) by striking ``is not feasible,'' and all that follows 
        through ``members affected, or''; and
            (3) by adding at the end the following new subparagraph:

    ``(B) The waiver authority provided in subparagraph (A) shall not be 
construed to apply to any case other than a case in which an individual 
is required to be informed of an option to accept or refuse 
administration of a particular product by reason of a determination by 
the Secretary of Health and Human Services that emergency use of such 
product is authorized under section 564 of the Federal Food, Drug, and 
Cosmetic Act.''.

SEC. 727. TRICARE PROGRAM REGIONAL DIRECTORS.

    (a) Recommendations for Selection Process for TRICARE Program 
Regional Directors.--(1) The Secretary of Defense shall develop 
recommendations for a process for the selection of regional directors 
for TRICARE program administrative regions from among nominees and 
applicants for the position in accordance with this section.
    (2) The recommendations developed under paragraph (1) shall provide 
for a process for--
            (A) the Secretary of each military department to nominate, 
        for each regional director position, one commissioned officer in 
        a grade above colonel, or, in the case of the Navy, captain, or 
        member of the Senior Executive Service under the jurisdiction of 
        that Secretary; and
            (B) the Secretary of Defense to accept applications for 
        assignment or appointment to each such position from any other 
        qualified person.

    (3) The recommendations developed under paragraph (1) shall also 
include recommendations with respect to--
            (A) the qualifications for regional directors;
            (B) the period of assignment of a commissioned officer as a 
        regional director;
            (C) procedures for ensuring that fair consideration is given 
        to each nominee and each applicant; and
            (D) such other requirements as considered appropriate by the 
        Secretary.

    (b) Report.--Not later than March 1, 2005, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate and House 
of Representatives a report containing the recommendations developed by 
the Secretary under subsection (a).

     Subtitle D--Medical Readiness Tracking and Health Surveillance

SEC. 731. <<NOTE: 10 USC 1074 note.>> MEDICAL READINESS PLAN AND JOINT 
            MEDICAL READINESS OVERSIGHT COMMITTEE.

    (a) Requirement for Plan.--The Secretary of Defense shall develop a 
comprehensive plan to improve medical readiness, and Department of 
Defense tracking of the health status, of members of the Armed Forces 
throughout their service in the Armed Forces, and to strengthen medical 
readiness and tracking before, during, and after deployment of members 
of the Armed Forces overseas. The matters covered by the comprehensive 
plan shall include all elements that are described in this title and the 
amendments made by this title and shall comply with requirements in law.

[[Page 118 STAT. 1994]]

    (b) Joint Medical Readiness Oversight Committee.--
            (1) Establishment.--The Secretary of Defense shall establish 
        a Joint Medical Readiness Oversight Committee.
            (2) Composition.--The members of the Committee are as 
        follows:
                    (A) The Under Secretary of Defense for Personnel and 
                Readiness, who shall chair the Committee.
                    (B) The Vice Chief of Staff of the Army, the Vice 
                Chief of Naval Operations, the Vice Chief of Staff of 
                the Air Force, and the Assistant Commandant of the 
                Marine Corp.
                    (C) The Assistant Secretary of Defense for Health 
                Affairs.
                    (D) The Assistant Secretary of Defense for Reserve 
                Affairs.
                    (E) The Surgeon General of each of the Army, the 
                Navy, and the Air Force.
                    (F) The Assistant Secretary of the Army for Manpower 
                and Reserve Affairs.
                    (G) The Assistant Secretary of the Navy for Manpower 
                and Reserve Affairs.
                    (H) The Assistant Secretary of the Air Force for 
                Manpower, Reserve Affairs, Installations, and 
                Environment.
                    (I) The Chief of the National Guard Bureau.
                    (J) The Chief of Army Reserve.
                    (K) The Chief of Naval Reserve.
                    (L) The Chief of Air Force Reserve.
                    (M) The Commander, Marine Corps Reserve.
                    (N) The Director of the Defense Manpower Data 
                Center.
                    (O) A representative of the Department of Veterans 
                Affairs designated by the Secretary of Veterans Affairs.
            (3) Duties.--The duties of the Committee are as follows:
                    (A) To advise the Secretary of Defense on the 
                medical readiness and health status of the members of 
                the active and reserve components of the Armed Forces.
                    (B) To advise the Secretary of Defense on the 
                compliance of the Armed Forces with the medical 
                readiness tracking and health surveillance policies of 
                the Department of Defense.
                    (C) To oversee the development and implementation of 
                the comprehensive plan required by subsection (a) and 
                the actions required by this title and the amendments 
                made by this title, including with respect to matters 
                relating to--
                          (i) the health status of the members of the 
                      reserve components of the Armed Forces;
                          (ii) accountability for medical readiness;
                          (iii) medical tracking and health 
                      surveillance;
                          (iv) declassification of information on 
                      environmental hazards;
                          (v) postdeployment health care for members of 
                      the Armed Forces; and
                          (vi) compliance with Department of Defense and 
                      other applicable policies on blood serum 
                      repositories.
                    (D) To ensure unity and integration of efforts 
                across functional and organizational lines within the 
                Department

[[Page 118 STAT. 1995]]

                of Defense with regard to medical readiness tracking and 
                health surveillance of members of the Armed Forces.
                    (E) To establish and monitor compliance with the 
                medical readiness standards that are applicable to 
                members and those that are applicable to units.
                    (F) To improve continuity of care in coordination 
                with the Secretary of Veterans Affairs, for members of 
                the Armed Forces separating from active service with 
                service-connected medical conditions.
            (4) First meeting.--The <<NOTE: Deadline.>> first meeting of 
        the Committee shall be held not later than 120 days after the 
        date of the enactment of this Act.

    (c) Annual Report.--
            (1) In general.--In addition to the duties described in 
        subsection (b)(3), the Committee shall prepare and submit to the 
        Secretary of Defense and to the Committees on Armed Services of 
        the Senate and the House of Representatives, not later than 
        February 1 of each year, a report on--
                    (A) the health status and medical readiness of the 
                members of the Armed Forces, including the members of 
                reserve components, based on the comprehensive plan 
                required under subsection (a) and the actions required 
                by this title and the amendments made by this title; and
                    (B) compliance with Department of Defense policies 
                on medical readiness tracking and health surveillance.
            (2) Opportunity for comment.--Each year, before the 
        Committee submits to Congress the report required under 
        paragraph (1), the Secretary of Defense shall provide an 
        opportunity for representatives of veterans and military health 
        advocacy organizations, and others the Secretary of Defense 
        considers appropriate, to comment on the report. The report 
        submitted to Congress shall include a summary of the comments 
        received and the Secretary's response to them.

SEC. 732. MEDICAL READINESS OF RESERVES.

    (a) Comptroller General Study of Health of Reserves Ordered to 
Active Duty for Operations Enduring Freedom and Iraqi Freedom.--
            (1) Requirement for study.--The Comptroller General shall 
        carry out a study of the health of the members of the reserve 
        components of the Armed Forces who have been called or ordered 
        to active duty for a period of more than 30 days in support of 
        Operation Enduring Freedom and Operation Iraqi 
        Freedom. <<NOTE: Deadline.>> The Comptroller General shall 
        commence the study not later than 180 days after the date of the 
        enactment of this Act.
            (2) Purposes.--The purposes of the study under this 
        subsection are as follows:
                    (A) To review the health status and medical fitness 
                of the activated Reserves when they were called or 
                ordered to active duty.
                    (B) To review the effects, if any, on logistics 
                planning and the deployment schedules for the operations 
                referred to in paragraph (1) that resulted from 
                deficiencies in the health or medical fitness of 
                activated Reserves.
                    (C) To review compliance of military personnel with 
                Department of Defense policies on medical and physical

[[Page 118 STAT. 1996]]

                fitness examinations and assessments that are applicable 
                to the reserve components of the Armed Forces.
            (3) Report.--The Comptroller General shall, not later than 
        one year after the date of the enactment of this Act, submit a 
        report on the results of the study under this subsection to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives. The report shall include the following matters:
                    (A) With respect to the matters reviewed under 
                subparagraph (A) of paragraph (2)--
                          (i) the percentage of activated Reserves who 
                      were determined to be medically unfit for 
                      deployment, together with an analysis of the 
                      reasons why the member was unfit, including 
                      medical illnesses or conditions most commonly 
                      found among the activated Reserves that were 
                      grounds for determinations of medical unfitness 
                      for deployment; and
                          (ii) the percentage of the activated Reserves 
                      who, before being deployed, needed medical care 
                      for health conditions identified when called or 
                      ordered to active duty, together with an analysis 
                      of the types of care that were provided for such 
                      conditions and the reasons why such care was 
                      necessary.
                    (B) With respect to the matters reviewed under 
                subparagraph (B) of paragraph (2)--
                          (i) the delays and other disruptions in 
                      deployment schedules that resulted from 
                      deficiencies in the health status or medical 
                      fitness of activated Reserves; and
                          (ii) an analysis of the extent to which it was 
                      necessary to merge units or otherwise alter the 
                      composition of units, and the extent to which it 
                      was necessary to merge or otherwise alter 
                      objectives, in order to compensate for limitations 
                      on the deployability of activated Reserves 
                      resulting from deficiencies in the health status 
                      or medical fitness of activated Reserves.
                    (C) With respect to the matters reviewed under 
                subparagraph (C) of paragraph (2), an assessment of the 
                extent of the compliance of reserve component personnel 
                with Department of Defense policies on routine medical 
                and physical fitness examinations that are applicable to 
                the reserve components of the Armed Forces.
                    (D) An analysis of the extent to which the medical 
                care, if any, provided to activated Reserves in each 
                theater of operations referred to in paragraph (1) 
                related to preexisting conditions that were not 
                adequately addressed before the deployment of such 
                personnel to the theater.
            (4) Definitions.--In this subsection:
                    (A) The term ``activated Reserves'' means the 
                members of the Armed Forces referred to in paragraph 
                (1).
                    (B) The term ``active duty for a period of more than 
                30 days'' has the meaning given such term in section 
                101(d) of title 10, United States Code.
                    (C) The term ``health condition'' includes a mental 
                health condition and a dental condition.
                    (D) The term ``reserve components of the Armed 
                Forces'' means the reserve components listed in section 
                10101 of title 10, United States Code.

[[Page 118 STAT. 1997]]

    (b) Accountability for <<NOTE: 10 USC 1074 note.>> Medical Readiness 
of Individuals and Units of the Reserve Components.--
            (1) Policy.--The Secretary of Defense shall take measures, 
        in addition to those required by section 1074f of title 10, 
        United States Code, to ensure that individual members and 
        commanders of reserve component units fulfill their 
        responsibilities and meet the requirements for medical and 
        dental readiness of members of the units. Such measures may 
        include--
                    (A) requiring more frequent health assessments of 
                members than is required by section 1074f(b) of title 
                10, United States Code, with an objective of having 
                every member of the Selected Reserve receive a health 
                assessment as specified in section 1074f of such title 
                not less frequently than once every two years; and
                    (B) providing additional support and information to 
                commanders to assist them in improving the health status 
                of members of their units.
            (2) Review and followup care.--The measures under this 
        subsection shall provide for review of the health assessments 
        under paragraph (1) by a medical professional and for any 
        followup care and treatment that is otherwise authorized for 
        medical or dental readiness.
            (3) Modification of predeployment health assessment 
        survey.--In carrying out paragraph (1), the Secretary shall--
                    (A) to the extent practicable, modify the 
                predeployment health assessment survey to bring such 
                survey into conformity with the detailed postdeployment 
                health assessment survey in use as of October 1, 2004; 
                and
                    (B) ensure the use of the predeployment health 
                assessment survey, as so modified, for predeployment 
                health assessments after that date.

    (c) Uniform Policy on <<NOTE: 10 USC 1074 note.>> Deferral of 
Medical Treatment Pending Deployment to Theaters of Operations.--
            (1) Requirement for policy.--The Secretary of Defense shall 
        prescribe, for uniform applicability throughout the Armed 
        Forces, a policy on deferral of medical treatment of members 
        pending deployment.
            (2) Content.--The policy prescribed under paragraph (1) may 
        specify the following matters:
                    (A) The circumstances under which treatment for 
                medical conditions may be deferred to be provided within 
                a theater of operations in order to prevent delay or 
                other disruption of a deployment to that theater.
                    (B) The circumstances under which medical conditions 
                are to be treated before deployment to that theater.

SEC. 733. BASELINE HEALTH DATA COLLECTION PROGRAM.

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

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

    ``(a) Program Required.--The Secretary of Defense shall carry out a 
program--

[[Page 118 STAT. 1998]]

            ``(1) to collect baseline health data from each person 
        entering the armed forces, at the time of entry into the armed 
        forces; and
            ``(2) to provide for computerized compilation and 
        maintenance of the baseline health data.

    ``(b) Purposes.--The program under this section shall be designed to 
achieve the following purposes:
            ``(1) To facilitate understanding of how subsequent 
        exposures related to service in the armed forces affect health.
            ``(2) To facilitate development of early intervention and 
        prevention programs to protect health and readiness.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the item 
        relating to section 1092 the following new item:

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

            (3) Time for implementation.--The <<NOTE: 10 USC 1092a 
        note.>> Secretary of Defense shall implement the program 
        required under section 1092a of title 10, United States Code (as 
        added by paragraph (1)), not later than two years after the date 
        of the enactment of this Act.

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

SEC. 734. <<NOTE: 10 USC 1074 note.>> MEDICAL CARE AND TRACKING AND 
            HEALTH SURVEILLANCE IN THE THEATER OF OPERATIONS.

    (a) Recordkeeping Policy.--The Secretary of Defense shall prescribe 
a policy that requires the records of all medical care provided to a 
member of the Armed Forces in a theater of operations to be maintained 
as part of a complete health record for the member.
    (b) In-Theater Medical Tracking and Health Surveillance.--
            (1) Requirement for evaluation.--The Secretary of Defense 
        shall evaluate the system for the medical tracking and health 
        surveillance of members of the Armed Forces in theaters of 
        operations and take such actions as may be necessary to improve 
        the medical tracking and health surveillance.
            (2) Report.--Not later than one year after the date of the 
        enactment of this Act, the Secretary of Defense shall submit a 
        report on the actions taken under paragraph (1) to the 
        Committees on Armed Services of the Senate and the House

[[Page 118 STAT. 1999]]

        of Representatives. The report shall include the following 
        matters:
                    (A) An analysis of the strengths and weaknesses of 
                the medical tracking system administered under section 
                1074f of title 10, United States Code.
                    (B) An analysis of the efficacy of health 
                surveillance systems as a means of detecting--
                          (i) any health problems (including mental 
                      health conditions) of members of the Armed Forces 
                      contemporaneous with the performance of the 
                      assessment under the system; and
                          (ii) exposures of the assessed members to 
                      environmental hazards that potentially lead to 
                      future health problems.
                    (C) An analysis of the strengths and weaknesses of 
                such medical tracking and surveillance systems as a 
                means for supporting future research on health issues.
                    (D) Recommended changes to such medical tracking and 
                health surveillance systems.
                    (E) A summary of scientific literature on blood 
                sampling procedures used for detecting and identifying 
                exposures to environmental hazards.
                    (F) An assessment of whether there is a need for 
                changes to regulations and standards for drawing blood 
                samples for effective tracking and health surveillance 
                of the medical conditions of personnel before 
                deployment, upon the end of a deployment, and for a 
                followup period of appropriate length.

    (c) Plan To Obtain Health Care Records From Allies.--The Secretary 
of Defense shall develop a plan for obtaining all records of medical 
treatment provided to members of the Armed Forces by allies of the 
United States in Operation Enduring Freedom and Operation Iraqi Freedom. 
The plan shall specify the actions that are to be taken to obtain all 
such records.
    (d) Policy on <<NOTE: Deadline.>> In-Theater Personnel Locator 
Data.--Not later than one year after the date of the enactment of this 
Act, the Secretary of Defense shall prescribe a Department of Defense 
policy on the collection and dissemination of in-theater individual 
personnel location data.

SEC. 735. <<NOTE: 10 USC 1074 note.>> DECLASSIFICATION OF INFORMATION ON 
            EXPOSURES TO ENVIRONMENTAL HAZARDS.

    (a) Requirement for Review.--The Secretary of Defense shall review 
and, as determined appropriate, revise the classification policies of 
the Department of Defense with a view to facilitating the 
declassification of data that is potentially useful for the monitoring 
and assessment of the health of members of the Armed Forces who have 
been exposed to environmental hazards during deployments overseas, 
including the following data:
            (1) In-theater injury rates.
            (2) Data derived from environmental surveillance.
            (3) Health tracking and surveillance data.

    (b) Consultation With Commanders of Theater Combatant Commands.--The 
Secretary shall, to the extent that the Secretary considers appropriate, 
consult with the senior commanders of the in-theater forces of the 
combatant commands in carrying out the review and revising policies 
under subsection (a).

[[Page 118 STAT. 2000]]

SEC. 736. REPORT ON TRAINING ON ENVIRONMENTAL HAZARDS.

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

SEC. 737. <<NOTE: 10 USC 1074 note.>> UNIFORM POLICY FOR MEETING 
            MOBILIZATION-RELATED MEDICAL CARE NEEDS AT MILITARY 
            INSTALLATIONS.

    (a) Health Care at Mobilization Installations.--The Secretary of 
Defense shall take such steps as necessary, including through the 
uniform policy established under subsection (c), to ensure that 
anticipated health care needs of members of the Armed Forces at 
mobilization installations can be met at those installations. Such steps 
may, within authority otherwise available to the Secretary, include the 
following with respect to any such installation:
            (1) Arrangements for health care to be provided by the 
        Secretary of Veterans Affairs.
            (2) Procurement of services from local health care 
        providers.
            (3) Temporary employment of health care personnel to provide 
        services at such installation.

    (b) Mobilization Installations.--For purposes of this section, the 
term ``mobilization installation'' means a military installation at 
which members of the Armed Forces, in connection with a contingency 
operation or during a national emergency--
            (1) are mobilized;
            (2) are deployed; or
            (3) are redeployed from a deployment location.

    (c) Requirement for Regulations.--
            (1) Policy on implementation.--The Secretary of Defense 
        shall by regulation establish a policy for the implementation of 
        subsection (a) throughout the Department of Defense.
            (2) Identification and analysis of needs.--As part of the 
        policy prescribed under paragraph (1), the Secretary shall 
        require the Secretary of each military department, with respect 
        to each mobilization installation under the jurisdiction of that 
        Secretary, to identify and analyze the anticipated health care 
        needs at that installation with respect to members of the Armed 
        Forces who may be expected to mobilize or deploy or redeploy at 
        that installation as described in subsection (b)(1). Such 
        identification and analysis shall be carried out so as to be 
        completed before the arrival of such members at the 
        installation.

[[Page 118 STAT. 2001]]

            (3) Response to needs.--The policy established by the 
        Secretary of Defense under paragraph (1) shall require that, 
        based on the results of the identification and analysis under 
        paragraph (2), the Secretary of the military department 
        concerned shall determine how to expeditiously and effectively 
        respond to those anticipated health care needs that cannot be 
        met within the resources otherwise available at that 
        installation, in accordance with subsection (a).
            (4) Implementation of authority.--In implementing the policy 
        established under paragraph (1) at any installation, the 
        Secretary of the military department concerned shall ensure that 
        the commander of the installation, and the officers and other 
        personnel superior to that commander in that commander's chain 
        of command, have appropriate authority and responsibility for 
        such implementation.

    (d) Policy.--The Secretary of Defense shall ensure--
            (1) that the policy prescribed under subsection (c) is 
        carried out with respect to any mobilization installation with 
        the involvement of all agencies of the Department of Defense 
        that have responsibility for management of the installation and 
        all organizations of the Department that have command authority 
        over any activity at the installation; and
            (2) that such policy is implemented on a uniform basis 
        throughout the Department of Defense.

SEC. 738. <<NOTE: 10 USC 1074 note.>> FULL IMPLEMENTATION OF MEDICAL 
            READINESS TRACKING AND HEALTH SURVEILLANCE PROGRAM AND FORCE 
            HEALTH PROTECTION AND READINESS PROGRAM.

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

    (b) Action Official.--The Secretary of Defense may act through the 
Under Secretary of Defense for Personnel and Readiness in carrying out 
subsection (a).

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

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

``Sec. 1073b. Recurring reports

    ``(a) Annual Report on Health Protection Quality.--(1) The Secretary 
of Defense shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives each year a report on the Force 
Health Protection Quality Assurance Program of the Department of 
Defense. The report shall cover

[[Page 118 STAT. 2002]]

the calendar year preceding the year in which the report is submitted 
and include the following matters:
            ``(A) The results of an audit conducted during the calendar 
        year covered by the report of the extent to which the blood 
        samples required to be obtained as described in section 733(b) 
        of the Ronald W. Reagan National Defense Authorization Act for 
        Fiscal Year 2005 from members of the armed forces before and 
        after a deployment are stored in the blood serum repository of 
        the Department of Defense.
            ``(B) The results of an audit conducted during the calendar 
        year covered by the report of the extent to which the records of 
        the health assessments required under section 1074f of this 
        title for members of the armed forces before and after a 
        deployment are being maintained in the electronic database of 
        the Defense Medical Surveillance System.
            ``(C) An analysis of the actions taken by Department of 
        Defense personnel to respond to health concerns expressed by 
        members of the armed forces upon return from a deployment.
            ``(D) An analysis of the actions taken by Department of 
        Defense personnel to evaluate or treat members of the armed 
        forces who are confirmed to have been exposed to occupational or 
        environmental hazards deleterious to their health during a 
        deployment.

    ``(2) The Secretary of Defense shall act through the Assistant 
Secretary of Defense for Health Affairs in carrying out this subsection.
    ``(b) Annual Report on Recording of Health Assessment Data in 
Military Health Records.--The Secretary of Defense shall issue each year 
a report on the compliance by the military departments with applicable 
law and policies on the recording of health assessment data in military 
health records, including compliance with section 1074f(c) of this 
title. The report shall cover the calendar year preceding the year in 
which the report is submitted and include a discussion of the extent to 
which immunization status and predeployment and postdeployment health 
care data are being recorded in such records.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the item 
        relating to section 1073a the following new item:

``1073b. Recurring reports.''.

            (3) Initial reports.--The <<NOTE: 10 USC 1073b note.>> first 
        reports under section 1073b of title 10, United States Code (as 
        added by paragraph (1)), shall be completed not later than 180 
        days after the date of the enactment of this Act.

    (b) Internet <<NOTE: 10 USC 1074 note.>> Accessibility of Health 
Assessment Information for Members of the Armed Forces.--Not later than 
one year after the date of the enactment of this Act, the Chief 
Information Officer of each military department shall ensure that the 
online portal website of that military department includes the following 
information relating to health assessments:
            (1) Information on the policies of the Department of Defense 
        and the military department concerned regarding predeployment 
        and postdeployment health assessments, including policies on the 
        following matters:
                    (A) Health surveys.
                    (B) Physical examinations.

[[Page 118 STAT. 2003]]

                    (C) Collection of blood samples and other tissue 
                samples.
            (2) Procedural information on compliance with such policies, 
        including the following information:
                    (A) Information for determining whether a member is 
                in compliance.
                    (B) Information on how to comply.
            (3) Health assessment surveys that are either--
                    (A) web-based; or
                    (B) accessible (with instructions) in printer-ready 
                form by download.

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

              Subtitle A--Acquisition Policy and Management

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


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

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

      Subtitle C--United States Defense Industrial Base Provisions

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

         Subtitle D--Extensions of Temporary Program Authorities

Sec. 841. Extension of mentor-protege program. 
Sec. 842. Amendment to mentor-protege program.
Sec. 843. Extension of test program for negotiation of comprehensive 
           small business subcontracting plans.

[[Page 118 STAT. 2004]]

Sec. 844. Extension of pilot program on sales of manufactured articles 
           and services of certain Army industrial facilities.

                  Subtitle E--Other Acquisition Matters

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

              Subtitle A--Acquisition Policy and Management

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

    (a) Content of Quarterly Unit Cost Report.--Subsection (b) of 
section 2433 of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
            ``(5) Any significant changes in the total program cost for 
        development and procurement of the software component of the 
        program, schedule milestones for the software component of the 
        program, or expected performance for the software component of 
        the program that are known, expected, or anticipated by the 
        program manager.''.

    (b) Content of Selected Acquisition Report.--(1) Subsection (g)(1) 
of such section is amended by adding at the end the following new 
subparagraph:
            ``(Q) In any case in which one or more problems with the 
        software component of the program significantly contributed to 
        the increase in program unit costs, the action taken and 
        proposed to be taken to solve such problems.''.

    (2) Section 2432(e) of title 10, United States Code, is amended--
            (A) by redesignating paragraphs (7), (8), and (9) as 
        paragraphs (8), (9), and (10), respectively; and
            (B) by inserting after paragraph (6) the following new 
        paragraph (7):
            ``(7) The reasons for any significant changes (from the 
        previous Selected Acquisition Report) in the total program cost 
        for development and procurement of the software component of the 
        program, schedule milestones for the software component of the 
        program, or expected performance for the software component of 
        the program that are known, expected, or anticipated by the 
        program manager.''.

    (c) Effective Date.--The <<NOTE: 10 USC 2432 note.>> amendments made 
by this section shall take effect on the date occurring 60 days after 
the date of the enactment of this Act, and shall apply with respect to 
reports due to be submitted to Congress on or after such date.

SEC. 802. <<NOTE: 10 USC 2302 note.>> INTERNAL CONTROLS FOR DEPARTMENT 
            OF DEFENSE PROCUREMENTS THROUGH GSA CLIENT SUPPORT CENTERS.

    (a) Initial Inspector General Review and Determination.--(1) Not 
later than March 15, 2005, the <<NOTE: Deadline.>> Inspector General of 
the Department of Defense and the Inspector General of the General 
Services Administration shall jointly--
            (A) review--

[[Page 118 STAT. 2005]]

                    (i) the policies, procedures, and internal controls 
                of each GSA Client Support Center; and
                    (ii) the administration of those policies, 
                procedures, and internal controls; and
            (B) for each such Center, determine in writing whether--
                    (i) the Center is compliant with defense procurement 
                requirements;
                    (ii) the Center is not compliant with defense 
                procurement requirements, but the Center made 
                significant progress during 2004 toward becoming 
                compliant with defense procurement requirements; or
                    (iii) neither of the conclusions stated in clauses 
                (i) and (ii) is correct.

    (2) <<NOTE: Deadline.>> If the Inspectors General determine under 
paragraph (1) that the conclusion stated in clause (ii) or (iii) of 
subparagraph (B) of such paragraph is correct in the case of a GSA 
Client Support Center, those Inspectors General shall, not later than 
March 15, 2006, jointly--
            (A) conduct a second review regarding that GSA Client 
        Support Center as described in paragraph (1)(A); and
            (B) determine in writing whether that GSA Client Support 
        Center is or is not compliant with defense procurement 
        requirements.

    (b) Compliance With Defense Procurement Requirements.--For the 
purposes of this section, a GSA Client Support Center is compliant with 
defense procurement requirements if the GSA Client Support Center's 
policies, procedures, and internal controls, and the manner in which 
they are administered, are adequate to ensure compliance of that Center 
with the requirements of laws and regulations that apply to procurements 
of property and services made directly by the Department of Defense.
    (c) Limitations on Procurements Through GSA Client Support 
Centers.--(1) After March 15, 2005, and before March 16, 2006, no 
official of the Department of Defense may, except as provided in 
subsection (d) or (e), order, purchase, or otherwise procure property or 
services in an amount in excess of $100,000 through any GSA Client 
Support Center for which a determination described in paragraph 
(1)(B)(iii) of subsection (a) has been made under that subsection.
    (2) After March 15, 2006, no official of the Department of Defense 
may, except as provided in subsection (d) or (e), order, purchase, or 
otherwise procure property or services in an amount in excess of 
$100,000 through any GSA Client Support Center that has not been 
determined under this section as being compliant with defense 
procurement requirements.
    (d) Exception From Applicability of Limitations.--(1) No limitation 
applies under subsection (c) with respect to the procurement of property 
and services from a particular GSA Client Support Center during any 
period that there is in effect a determination of the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, made in writing, 
that it is necessary in the interest of the Department of Defense to 
continue to procure property and services through that GSA Client 
Support Center.
    (2) A written determination with respect to a GSA Client Support 
Center under paragraph (1) is in effect for the period, not in excess of 
one year, that the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall specify in the written

[[Page 118 STAT. 2006]]

determination. The Under Secretary may extend from time to time, for up 
to one year at a time, the period for which the written determination 
remains in effect.
    (e) Termination of Applicability of Limitations.--Subsection (c) 
shall cease to apply to a GSA Client Support Center on the date on which 
the Inspector General of the Department of Defense and the Inspector 
General of the General Services Administration jointly determine that 
such Center is compliant with defense procurement requirements and 
notify the Secretary of Defense of that determination.
    (f) GSA Client Support Center Defined.--In this section, the term 
``GSA Client Support Center'' means a Client Support Center of the 
Federal Technology Service of the General Services Administration.

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

    (a) Requirement for Determination.--The Secretary of Defense shall 
review all potential mechanisms for procuring commercial communications 
satellite services and provide guidance to the Director of the Defense 
Information Systems Agency and the Secretaries of the military 
departments on how such procurements should be conducted. The 
alternative procurement mechanisms reviewed by the Secretary of Defense 
shall, at a minimum, include the following:
            (1) Procurement under indefinite delivery, indefinite 
        quantity contracts of other departments and agencies of the 
        Federal Government, including the Federal Technology Service of 
        the General Services Administration.
            (2) Procurement directly from commercial sources that are 
        qualified as described in subsection (b), using full and open 
        competition (as defined in section 4(6) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(6))).
            (3) Procurement by any other means that has been used by the 
        Director of the Defense Information Systems Agency or the 
        Secretary of a military department to enter into a contract for 
        the procurement of commercial communications satellite services 
        that is in force on the date of the enactment of this Act, 
        including through commercial communications satellite service 
        integrators and resellers.
            (4) Procurement under the method used as of the date of the 
        enactment of this Act, modified with streamlined processes to 
        ensure increased efficiency and cost effectiveness.

    (b) Qualified Sources.--A source of commercial communications 
satellite services referred to in paragraph (2) of subsection (a) is a 
qualified source if the source is incorporated under the laws of a State 
of the United States and is either--
            (1) a source of commercial communications satellite services 
        under a Federal Technology Service contract for the procurement 
        of commercial communications satellite services described in 
        paragraph (1) of such subsection that is in force on the date of 
        the enactment of this Act; or
            (2) a source of commercial communications satellite services 
        that meets qualification requirements (as defined in section 
        2319 of title 10, United States Code, and established in 
        accordance with that section) to enter into a Federal Technology

[[Page 118 STAT. 2007]]

        Service contract for the procurement of commercial 
        communications satellite services.

    (c) Report.--Not later than April 30, 2005, the Secretary of Defense 
shall submit to Congress a report setting forth the conclusions 
resulting from the Secretary's review under subsection (a). The report 
shall include--
            (1) the guidance provided under such subsection; and
            (2) a discussion of the rationale for that guidance and how 
        the guidance will address each recommendation made in the 
        December 2003 report of the General Accounting Office titled 
        ``Satellite Communications: Strategic Approach Needed for DOD's 
        Procurement of Commercial Satellite BandWidth'' (GAO-04-206).

    (d) Effective Date.--(1) The Secretary may not enter into a contract 
for commercial communications satellite services (using any mechanism 
reviewed under subsection (a) or otherwise) until the expiration of 30 
days after the date on which the report described in subsection (c) has 
been received by Congress, unless the Secretary determines that such a 
contract is required to meet urgent national security requirements.
    (2) Notwithstanding paragraph (1), the Secretary may issue a task 
order or delivery order under a contract for commercial communications 
satellite services that was awarded before the date of the enactment of 
this Act.

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

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

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

    ``(a) Limitation.--The head of an agency may enter into a contract 
for the performance of acquisition functions closely associated with 
inherently governmental functions only if the contracting officer for 
the contract ensures that--
            ``(1) appropriate military or civilian personnel of the 
        Department of Defense cannot reasonably be made available to 
        perform the functions;
            ``(2) appropriate military or civilian personnel of the 
        Department of Defense are--
                    ``(A) to supervise contractor performance of the 
                contract; and
                    ``(B) to perform all inherently governmental 
                functions associated with the functions to be performed 
                under the contract; and
            ``(3) the agency addresses any potential organizational 
        conflict of interest of the contractor in the performance of the 
        functions under the contract, consistent with subpart 9.5 of 
        part 9 of the Federal Acquisition Regulation and the best 
        interests of the Department of Defense.

    ``(b) Definitions.--In this section:
            ``(1) The term `head of an agency' has the meaning given 
        such term in section 2302(1) of this title, except that such

[[Page 118 STAT. 2008]]

        term does not include the Secretary of Homeland Security or the 
        Administrator of the National Oceanic and Atmospheric 
        Administration.
            ``(2) The term `inherently governmental functions' has the 
        meaning given such term in subpart 7.5 of part 7 of the Federal 
        Acquisition Regulation.
            ``(3) The term `functions closely associated with inherently 
        governmental functions' means the functions described in section 
        7.503(d) of the Federal Acquisition Regulation.
            ``(4) The term `organizational conflict of interest' has the 
        meaning given such term in subpart 9.5 of part 9 of the Federal 
        Acquisition Regulation.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2382 the 
following new item:

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

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

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

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

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

    ``(a) Requirement for Sustaining Existing Forces.--(1) The Secretary 
of Defense shall require that, whenever a new major defense acquisition 
program begins development, the defense acquisition authority 
responsible for that program shall develop a plan (to be known as a 
`sustainment plan') for the existing system that the system under 
development is intended to replace. Any such sustainment plan shall 
provide for an appropriate level of budgeting for sustaining the 
existing system until the replacement system to be developed under the 
major defense acquisition program is fielded and assumes the majority of 
responsibility for the mission of the existing system. This section does 
not apply to a major defense acquisition that reaches initial 
operational capability before October 1, 2008.
    ``(2) In this section, the term `defense acquisition authority' 
means the Secretary of a military department or the commander of the 
United States Special Operations Command.
    ``(b) Sustainment Plan.--The Secretary of Defense shall require that 
each sustainment plan under this section include, at a minimum, the 
following:
            ``(1) The milestone schedule for the development of the 
        major defense acquisition program, including the scheduled dates 
        for low-rate initial production, initial operational capability, 
        full-rate production, and full operational capability and the 
        date as of when the replacement system is scheduled to assume 
        the majority of responsibility for the mission of the existing 
        system.

[[Page 118 STAT. 2009]]

            ``(2) An analysis of the existing system to assess the 
        following:
                    ``(A) Anticipated funding levels necessary to--
                          ``(i) ensure acceptable reliability and 
                      availability rates for the existing system; and
                          ``(ii) maintain mission capability of the 
                      existing system against the relevant threats.
                    ``(B) The extent to which it is necessary and 
                appropriate to--
                          ``(i) transfer mature technologies from the 
                      new system or other systems to enhance the mission 
                      capability of the existing system against relevant 
                      threats; and
                          ``(ii) provide interoperability with the new 
                      system during the period from initial fielding 
                      until the new system assumes the majority of 
                      responsibility for the mission of the existing 
                      system.

    ``(c) Exceptions.--Subsection (a) shall not apply to a major defense 
acquisition program if the Secretary of Defense determines that--
            ``(1) the existing system is no longer relevant to the 
        mission;
            ``(2) the mission has been eliminated;
            ``(3) the mission has been consolidated with another mission 
        in such a manner that another existing system can adequately 
        meet the mission requirements; or
            ``(4) the duration of time until the new system assumes the 
        majority of responsibility for the existing system's mission is 
        sufficiently short so that mission availability, capability, 
        interoperability, and force protection requirements are 
        maintained.

    ``(d) Waiver.--The Secretary of Defense may waive the applicability 
of subsection (a) to a major defense acquisition program if the 
Secretary determines that, but for such a waiver, the Department would 
be unable to meet national security objectives. Whenever the Secretary 
makes such a determination and authorizes such a waiver, the Secretary 
shall submit notice of such waiver and of the Secretary's determination 
and the reasons therefor in writing to the congressional defense 
committees.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2436 the 
following new item:

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

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

[[Page 118 STAT. 2010]]

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

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

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

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

``SEC. 35A. <<NOTE: 41 USC 431a.>> INFLATION ADJUSTMENT OF ACQUISITION-
            RELATED DOLLAR THRESHOLDS.

    ``(a) Requirement for Periodic Adjustment.--(1) On October 1 of each 
year that is evenly divisible by five, the Federal Acquisition 
Regulatory Council shall adjust each acquisition-related dollar 
threshold provided by law, as described in subsection (c), to the 
baseline constant dollar value of that threshold.
    ``(2) For the purposes of paragraph (1), the baseline constant 
dollar value--
            ``(A) for a dollar threshold in effect on October 1, 2000, 
        that was first specified in a law that took effect on or before 
        such date shall be the October 1, 2000, constant dollar value of 
        that dollar threshold; and
            ``(B) for a dollar threshold specified in a law that takes 
        effect after October 1, 2000, shall be the constant dollar value 
        of that threshold as of the effective date of that dollar 
        threshold pursuant to such law.

    ``(b) Adjustments Effective <<NOTE: Federal 
Register, publication.>> Upon Publication.--The Federal Acquisition 
Regulatory Council shall publish a notice of the adjusted dollar 
thresholds under this section in the Federal Register. The adjusted 
dollar thresholds shall take effect on the date of publication.

    ``(c) Acquisition-Related Dollar Thresholds.--Except as provided in 
subsection (d), the requirement for adjustment under subsection (a) 
applies to a dollar threshold that is specified in law as a factor in 
defining the scope of the applicability of a policy, procedure, 
requirement, or restriction provided in that law to the procurement of 
property or services by an executive agency, as determined by the 
Federal Acquisition Regulatory Council.
    ``(d) Excluded Thresholds.--Subsection (a) does not apply to--
            ``(1) dollar thresholds in sections 3141 through 3144, 3146, 
        and 3147 of title 40, United States Code;
            ``(2) dollar thresholds in the Service Contract Act of 1965 
        (41 U.S.C. 351, et seq.); or
            ``(3) dollar thresholds established by the United States 
        Trade Representative pursuant to title III of the Trade 
        Agreements Act of 1979 (19 U.S.C. 2511 et seq.).

    ``(e) Calculation of Adjustments.--An adjustment under this section 
shall--
            ``(1) be calculated on the basis of changes in the Consumer 
        Price Index for all-urban consumers published monthly by the 
        Department of Labor; and
            ``(2) be rounded--

[[Page 118 STAT. 2011]]

                    ``(A) in the case of a dollar threshold that (as in 
                effect on the day before the adjustment) is less than 
                $10,000, to the nearest $500;
                    ``(B) in the case of a dollar threshold that (as in 
                effect on the day before the adjustment) is not less 
                than $10,000, but is less than $100,000, to the nearest 
                $5,000;
                    ``(C) in the case of a dollar threshold that (as in 
                effect on the day before the adjustment) is not less 
                than $100,000, but is less than $1,000,000, to the 
                nearest $50,000; and
                    ``(D) in the case of a dollar threshold that (as in 
                effect on the day before the adjustment) is $1,000,000 
                or more, to the nearest $500,000.

    ``(f) Petition for Inclusion of Omitted Threshold.--(1) If a dollar 
threshold adjustable under this section is not included in a notice of 
adjustment published under subsection (b), any person may request 
adjustment of that dollar threshold by submitting a petition for 
adjustment to the Administrator for Federal Procurement Policy.
    ``(2) Upon receipt of a petition for adjustment of a dollar 
threshold under paragraph (1), the Administrator shall--
            ``(A) determine, in writing, whether that dollar threshold 
        is required to be adjusted under this section; and
            ``(B) if so, shall publish in the Federal Register a revised 
        notice of the adjusted dollar thresholds under this section that 
        includes the adjustment of the dollar threshold covered by the 
        petition.

    ``(3) The adjustment of a dollar threshold pursuant to a petition 
under this subsection shall take effect on the date of the publication 
of the revised notice adding the adjustment of that dollar threshold 
under paragraph (2)(B).''.
    (2) The table of contents in section 1(b) of such Act is amended by 
inserting after the item relating to section 35 the following new item:

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

    (b) Definition of Federal Acquisition Regulatory Council.--Section 4 
of such <<NOTE: 41 USC 403.>> Act is amended by adding at the end the 
following new paragraph:
            ``(17) The term `Federal Acquisition Regulatory Council' 
        means the Federal Acquisition Regulatory Council established 
        under section 25.''.

    (c) Relationship to Other Inflation Adjustment Authorities.--(1) 
Section 35A of the Office of Federal Procurement Policy Act, as added by 
subsection (a), <<NOTE: 41 USC 431a note.>> supersedes the applicability 
of any other provision of law that provides for the adjustment of a 
dollar threshold that is adjustable under such section.

    (2) After the date of the enactment of this Act, a dollar threshold 
adjustable under section 35A of the Office of Federal Procurement Policy 
Act, as added by subsection (a), shall be adjusted only as provided 
under that section.

[[Page 118 STAT. 2012]]

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

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

    Section 806 of the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (10 U.S.C. 2302 note) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsections (c) and (d):

    ``(c) Response to Combat Emergencies.--(1) In the case of any 
equipment that, as determined in writing by the Secretary of Defense 
without delegation, is urgently needed to eliminate a combat capability 
deficiency that has resulted in combat fatalities, the Secretary shall 
use the procedures developed under this section in order to accomplish 
the rapid acquisition and deployment of the needed equipment.
    ``(2)(A) Whenever the Secretary makes a determination under 
paragraph (1) that certain equipment is urgently needed to eliminate a 
combat capability deficiency that has resulted in combat fatalities, the 
Secretary shall designate a senior official of the Department of Defense 
to ensure that the needed equipment is acquired and deployed as quickly 
as possible, with a goal of awarding a contract for the acquisition of 
the equipment within 15 days.
    ``(B) Upon designation of a senior official under subparagraph (A), 
the Secretary shall authorize that official to waive any provision of 
law, policy, directive, or regulation described in subsection (d) that 
such official determines in writing would unnecessarily impede the rapid 
acquisition and deployment of the needed equipment. In a case in which 
the needed equipment cannot be acquired without an extensive delay, the 
senior official shall require that an interim solution be implemented 
and deployed using the procedures developed under this section to 
minimize the combat capability deficiency and combat fatalities.
    ``(3) The authority of this section may not be used to acquire 
equipment in an amount aggregating more than $100,000,000 during any 
fiscal year. For acquisitions of equipment under this section during the 
fiscal year in which the Secretary makes the determination described in 
paragraph (1) with respect to such equipment, the Secretary may use any 
funds available to the Department of Defense for that fiscal year.
    ``(4) The <<NOTE: Notification. Deadline.>> Secretary of Defense 
shall notify the congressional defense committees within 15 days after 
each determination made under paragraph (1). Each such notice shall 
identify--
            ``(A) the equipment to be acquired;
            ``(B) the amount anticipated to be expended for the 
        acquisition; and
            ``(C) the source of funds for the acquisition.

    ``(5) Any acquisition initiated under this subsection shall 
transition to the normal acquisition system not later than two years 
after the date on which the Secretary makes the determination described 
in paragraph (1) with respect to that equipment.

[[Page 118 STAT. 2013]]

    ``(d) Waiver of Certain Statues and Regulations.--(1) Upon a 
determination described in subsection (c)(1), the senior official 
designated in accordance with subsection (c)(2) with respect to that 
designation is authorized to waive any provision of law, policy, 
directive or regulation addressing--
            ``(A) the establishment of the requirement for the 
        equipment;
            ``(B) the research, development, test, and evaluation of the 
        equipment; or
            ``(C) the solicitation and selection of sources, and the 
        award of the contract, for procurement of the equipment.

    ``(2) Nothing in this subsection authorizes the waiver of--
            ``(A) the requirements of this section or the regulations 
        implementing this section; or
            ``(B) any provision of law imposing civil or criminal 
        penalties.''.

SEC. 812. DEFENSE ACQUISITION WORKFORCE IMPROVEMENTS.

    (a) Selection Criteria for Acquisition Corps and for Critical 
Acquisition Positions.--(1) Section 1732(b) of title 10, United States 
Code, is amended by striking paragraph (1) and redesignating paragraphs 
(2), (3), and (4) as paragraphs (1), (2), and (3), respectively.
    (2) Section 1733(b)(1) of title 10, United States Code, is amended 
in subparagraph (A) by striking ``in a position within grade GS-14 or 
above of the General Schedule,'' and inserting ``in a senior position in 
the National Security Personnel System, as determined in accordance with 
guidelines prescribed by the Secretary,''.
    (b) Scholarship Program Requirements.--Section 1742 of such title is 
amended--
            (1) by inserting ``(a) Programs.--'' at the beginning of the 
        text; and
            (2) by adding at the end the following new subsection:

    ``(b) Scholarship Program Requirements.--Each recipient of a 
scholarship under a program conducted under subsection (a)(3) shall be 
required to sign a written agreement that sets forth the terms and 
conditions of the scholarship. The agreement shall be in a form 
prescribed by the Secretary and shall include terms and conditions, 
including terms and conditions addressing reimbursement in the event 
that a recipient fails to fulfill the requirements of the agreement, 
that are comparable to those set forth as a condition for providing 
advanced education assistance under section 2005. The obligation to 
reimburse the United States under an agreement under this subsection is, 
for all purposes, a debt owing the United States.''.
    (c) Authority to Establish Minimum Requirements.--(1) Section 
1764(b) of such title is amended--
            (A) by redesignating paragraph (5) as paragraph (6); and
            (B) by inserting after paragraph (4) the following new 
        paragraph (5):
            ``(5) Deputy program manager.''.

    (2) Paragraph (1) of such section is amended by striking ``in 
paragraph (5)'' and inserting ``in paragraph (6)''.

[[Page 118 STAT. 2014]]

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

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

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

    (a) Multiyear Contracts Relating to Property.--Section 2306b(g) of 
title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Before any'';
            (2) by striking ``Committee'' through ``House of 
        Representatives'' and inserting ``congressional defense 
        committees''; and
            (3) by adding at the end the following new paragraph:

    ``(2) In the case of a contract described in subsection (a) with a 
cancellation ceiling described in paragraph (1), if the budget for the 
contract does not include proposed funding for the costs of contract 
cancellation up to the cancellation ceiling established in the contract, 
the head of the agency concerned shall, as part of the certification 
required by subsection (i)(1)(A), give written notification to the 
congressional defense committees of--
            ``(A) the cancellation ceiling amounts planned for each 
        program year in the proposed multiyear procurement contract, 
        together with the reasons for the amounts planned;
            ``(B) the extent to which costs of contract cancellation are 
        not included in the budget for the contract; and
            ``(C) a financial risk assessment of not including budgeting 
        for costs of contract cancellation.''.

    (b) Multiyear Contracts Relating to Services.--Section 2306c(d) of 
title 10, United States Code, is amended--
            (1) in paragraphs (1), (3), and (4), by striking 
        ``committees of Congress named in paragraph (5)'' and inserting 
        ``congressional defense committees'' each place it appears; and
            (2) by amending paragraph (5) to read as follows:

    ``(5) In the case of a contract described in subsection (a) with a 
cancellation ceiling described in paragraph (4), if the budget for the 
contract does not include proposed funding for the costs of contract 
cancellation up to the cancellation ceiling established

[[Page 118 STAT. 2015]]

in the contract, the head of the agency concerned shall give written 
notification to the congressional defense committees of--
            ``(A) the cancellation ceiling amounts planned for each 
        program year in the proposed multiyear procurement contract, 
        together with the reasons for the amounts planned;
            ``(B) the extent to which costs of contract cancellation are 
        not included in the budget for the contract; and
            ``(C) a financial risk assessment of not including budgeting 
        for costs of contract cancellation.''.

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

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

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

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

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

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

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

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

[[Page 118 STAT. 2016]]

    (b) Effective <<NOTE: 10 USC 2306a note.>> Date and Applicability.--
Paragraph (3) of section 2306a of title 10, United States Code (as added 
by subsection (a)), shall take effect on June 1, 2005, and shall apply 
with respect to offers submitted, and to modifications of contracts or 
subcontracts made, on or after that date.

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

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

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

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

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

    (a) In General.--Subsection (a) of section 717 of the Small Business 
Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note) 
is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(5) landscaping and pest control services.''.

    (b) Landscaping and Pest Control Services.--Section 717 of the Small 
Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 
644 note) is amended--
            (1) by redesignating subsection (e) as subsection (f), and
            (2) by inserting after subsection (d) the following new 
        subsection:

    ``(e) Landscaping and Pest Control Services.--Landscaping and pest 
control services shall include contract awards assigned to North 
American Industrial Classification Code 561710 (relating to 
exterminating and pest control services) or 561730 (relating to 
landscaping services).''.

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

    Section 32A(b) of the Office of Federal Procurement Policy Act (41 
U.S.C. 428a(b)) is amended--

[[Page 118 STAT. 2017]]

            (1) by striking paragraph (1) and inserting the following:
            ``(1) the amount specified in subsections (c), (d), and (f) 
        of section 32 shall be deemed to be--
                    ``(A) $15,000 in the case of any contract to be 
                awarded and performed, or purchase to be made, inside 
                the United States; and
                    ``(B) $25,000 in the case of any contract to be 
                awarded and performed, or purchase to be made, outside 
                the United States; and''; and
            (2) in paragraph (2)(B), by striking ``$500,000'' and 
        inserting ``$1,000,000''.

      Subtitle C--United States Defense Industrial Base Provisions

SEC. 831. <<NOTE: 10 USC 2531 note.>> DEFENSE TRADE RECIPROCITY.

    (a) Policy.--It is the policy of Congress that procurement 
regulations used in the conduct of trade in defense articles and defense 
services should be based on the principle of fair trade and reciprocity 
consistent with United States national security, including the need to 
ensure comprehensive manufacturing capability in the United States 
defense industrial base.
    (b) Requirement.--The Secretary of Defense shall make every effort 
to ensure that the policies and practices of the Department of Defense 
reflect the goal of establishing an equitable trading relationship 
between the United States and its foreign defense trade partners, 
including ensuring that United States firms and United States employment 
in the defense sector are not disadvantaged by unilateral procurement 
practices by foreign governments, such as the imposition of offset 
agreements in a manner that undermines the United States defense 
industrial base. In pursuing this goal, the Secretary shall--
            (1) develop a comprehensive defense acquisition trade policy 
        that provides the necessary guidance and incentives for the 
        elimination of any adverse effects of offset agreements in 
        defense trade; and
            (2) review and make necessary modifications to existing 
        acquisition policies and strategies, and review and seek to make 
        necessary modifications to existing memoranda of understanding, 
        cooperative project agreements, or related agreements with 
        foreign defense trade partners, to reflect this goal.

    (c) Regulations.--The Secretary shall prescribe regulations to 
implement this section in the Department of Defense supplement to the 
Federal Acquisition Regulation.
    (d) Definitions.--In this section:
            (1) The term ``foreign defense trade partner'' means a 
        foreign country with respect to which there is--
                    (A) a memorandum of understanding or related 
                agreement described in section 2531(a) of title 10, 
                United States Code; or
                    (B) a cooperative project agreement described in 
                section 27 of the Arms Export Control Act (22 U.S.C. 
                2767).
            (2) The term ``offset agreement'' has the meaning provided 
        that term by section 36(e) of the Arms Export Control Act (22 
        U.S.C. 2776(e)).

[[Page 118 STAT. 2018]]

            (3) The terms ``defense article'' and ``defense service'' 
        have the meanings provided those terms by section 47(7) of the 
        Arms Export Control Act (22 U.S.C. 2794(7)).

SEC. 832. ASSESSMENT AND REPORT ON THE ACQUISITION OF POLYACRYLONITRILE 
            (PAN) CARBON FIBER FROM FOREIGN SOURCES.

    (a) Requirement.--The Secretary of Defense shall delay the phase-out 
of the restriction on acquisition of polyacrylonitrile (PAN) carbon 
fiber from foreign sources (described in subpart 225.7103 of the 
Department of Defense supplement to the Federal Acquisition Regulation) 
until an assessment of PAN carbon fiber industry is completed and 30 
days have passed after submission of the report required under 
subsection (c).
    (b) Assessment.--The Secretary of Defense shall perform a assessment 
of the domestic and international industrial structure that produces PAN 
carbon fibers, current and anticipated market trends for the product, 
and how the trends compare to the assessment as reported by the 
Secretary of Defense in January 2001.
    (c) Report required.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the assessment performed under subsection 
(b) and on any decision made to maintain or discontinue the phase-out of 
procurement restrictions on foreign acquisition of PAN carbon fibers in 
the Department of Defense supplement to the Federal Acquisition 
Regulation.

         Subtitle D--Extensions of Temporary Program Authorities

SEC. 841. EXTENSION OF MENTOR-PROTEGE PROGRAM.

    (a) Extension of Program.--Subsection (j) of section 831 of the 
National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-
510; 10 U.S.C. 2302 note) is amended--
            (1) in paragraph (1), by striking ``September 30, 2005'' and 
        inserting ``September 30, 2010''; and
            (2) in paragraph (2), by striking ``September 30, 2008'' and 
        inserting ``September 30, 2013''.

    (b) Extension of Requirement for Annual Report.--Subsection (l)(3) 
of such section is amended by striking ``2007'' and inserting ``2010''.
    (c) Additional Feasibility Review of Transition to Other Financing 
Methods.--(1) The Secretary of Defense shall conduct an additional 
review of the Mentor-Protege Program under section 811(d)(2) of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 708).
    (2) <<NOTE: Deadline.>> Not later than September 30, 2005, the 
Secretary shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives--
            (A) <<NOTE: Reports.>> a report on the results of the review 
        conducted under paragraph (1); and
            (B) any recommendations of the Secretary for legislative 
        action.

    (d) Additional Study of Program Implementation.--(1) The Comptroller 
General shall conduct an additional study of the

[[Page 118 STAT. 2019]]

Mentor-Protege Program under section 811(d)(3) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 
709).
    (2) Not later than <<NOTE: Deadline. Reports.>> September 30, 2006, 
the Comptroller General shall submit a report on the results of the 
study conducted under paragraph (1) to the Committees on Armed Services 
of the Senate and the House of Representatives.

SEC. 842. AMENDMENT TO MENTOR-PROTEGE PROGRAM.

    Section 831(m)(2) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) is amended--
            (1) in subparagraph (D), by striking ``or'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(F) a small business concern owned and controlled 
                by service-disabled veterans (as defined in section 
                8(d)(3) of the Small Business Act); and
                    ``(G) a qualified HUBZone small business concern (as 
                defined in section 3(p) of the Small Business Act).''.

SEC. 843. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
            SMALL BUSINESS SUBCONTRACTING PLANS.

    Section 834(e) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637 note) is amended 
by striking ``September 30, 2005'' and inserting ``September 30, 2010''.

SEC. 844. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES 
            AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES.

    Section 141(a) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note) is amended by 
striking ``through 2004'' in the first sentence and inserting ``through 
2009''.

                  Subtitle E--Other Acquisition Matters

SEC. 851. <<NOTE: 10 USC 2304 note.>> 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

[[Page 118 STAT. 2020]]

            (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) <<NOTE: Deadline.>> The review under this subsection shall be 
completed not later than 180 days after the date of the enactment of 
this Act.

    (b) Demonstration Project.--The Secretary of Defense shall conduct a 
demonstration project in accordance with this section, in one or more 
regions selected by the Secretary, for purposes of promoting greater 
contracting opportunities for contractors offering effective, reliable 
staffing plans to perform defense contracts that ensure all contract 
personnel employed for such projects, including management employees, 
professional employees, craft labor personnel, and administrative 
personnel, are lawful residents or persons properly authorized to be 
employed in the United States and properly qualified to perform services 
required under the contract. The demonstration project shall focus on 
contracts for construction, renovation, maintenance, and repair services 
for military installations.
    (c) Demonstration Project Procurement Procedures.--As part of the 
demonstration project under subsection (b), the Secretary of Defense may 
conduct a competition in which there is a provision in contract 
solicitations and request for proposal documents to require significant 
weight or credit be allocated to--
            (1) reliable, effective workforce programs offered by 
        prospective contractors that provide background checks and other 
        measures to ensure the contractor is in compliance with the 
        Immigration and Nationality Act; and
            (2) reliable, effective project staffing plans offered by 
        prospective contractors that specify for all contract employees 
        (including management employees, professionals, and craft labor 
        personnel) the skills, training, and qualifications of such 
        persons and the labor supply sources and hiring plans or 
        procedures used for employing such persons.

    (d) Implementation of Demonstration Project.--The Secretary of 
Defense shall begin operation of the demonstration project required 
under this section after completion of the review under subsection (a), 
but in no event later than 270 days after the date of the enactment of 
this Act.
    (e) Report on Demonstration Project.--Not later than six months 
after award of a contract under the demonstration project, the Secretary 
of Defense shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a report setting forth a review of 
the demonstration project and recommendations on the actions, if any, 
that can be implemented to ensure compliance by the Department of 
Defense with Executive Order No. 12989.
    (f) Definition.--In this section, the term ``military installation'' 
means a base, camp, post, station, yard, center, homeport facility for 
any ship, or other activity under the jurisdiction of the Department of 
Defense, including any leased facility, which is located within any of 
the several States, the District of Columbia, the Commonwealth of Puerto 
Rico, American Samoa, the Virgin Islands, or Guam. Such term does not 
include any facility used primarily for civil works, rivers and harbors 
projects, or flood control projects.

[[Page 118 STAT. 2021]]

SEC. 852. INAPPLICABILITY OF CERTAIN FISCAL LAWS TO SETTLEMENTS UNDER 
            SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

    Section 804(a) of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1541) is amended--
            (1) by inserting ``(1)'' after ``(a) Authority.--''; and
            (2) by adding at the end the following new paragraph:

    ``(2) Under regulations which the Secretary of Defense may 
prescribe, a settlement of a financial account for a contract for the 
procurement of property or services under paragraph (1) may be made 
without regard to--
            ``(A) section 1301 of title 31, United States Code; and
            ``(B) any other provision of law that would preclude the 
        Secretary from charging payments under the contract--
                    ``(i) to an unobligated balance in an appropriation 
                available for funding that contract; or
                    ``(ii) if and to the extent that the unobligated 
                balance (if any) in such appropriation is insufficient 
                for funding such payments, to any current appropriation 
                that is available to the Department of Defense for 
                funding contracts for the procurement of the same or 
                similar property or services.''.

SEC. 853. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

    (a) Inapplicability of Randolph-Sheppard Act to Mess Hall Services 
Under Existing Javits-Wagner-O'Day Act Contracts.--(1) The Randolph-
Sheppard Act (20 U.S.C. 107 et seq.) does not apply to any contract 
described in paragraph (2) for so long as the contract is in effect, 
including for any period for which the contract is extended pursuant to 
an option provided in the contract.
    (2) Paragraph (1) applies to any contract for the operation of all 
or any part of a military mess hall, military troop dining facility, or 
any similar dining facility operated for the purpose of providing meals 
to members of the Armed Forces that--
            (A) was entered into before September 30, 2005, with a 
        qualified nonprofit agency for the blind or a qualified 
        nonprofit agency for other severely handicapped in compliance 
        with section 3 of the Javits-Wagner-O'Day Act (41 U.S.C. 48); 
        and
            (B) either--
                    (i) is in effect on such date; or
                    (ii) was in effect on November 24, 2003.

    (b) Inapplicability of Javits-Wagner-O'Day Act to Mess Hall Services 
Under Existing Randolph-Sheppard Act Contracts.--(1) The Javits-Wagner-
O'Day Act (41 U.S.C. 46 et seq.) does not apply to any contract 
described in paragraph (2) for so long as the contract is in effect, 
including for any period for which the contract is extended pursuant to 
an option provided in the contract.
    (2) Paragraph (1) applies to any contract for the operation of all 
or any part of a military mess hall, military troop dining facility, or 
any similar dining facility operated for the purpose of providing meals 
to members of the Armed Forces that--
            (A) was entered into before September 30, 2005, with a State 
        licensing agency under the Randolph-Sheppard Act (20 U.S.C. 107 
        et seq.); and

[[Page 118 STAT. 2022]]

            (B) either--
                    (i) is in effect on such date; or
                    (ii) was in effect on November 24, 2003.

    (3) In this subsection, the term ``State licensing agency'' means an 
agency designated under section 2(a)(5) of the Randolph-Sheppard Act (20 
U.S.C. 107a(a)(5)).
    (c) Repeal of Superseded Law.--Subsections (a) and (b) of section 
852 of the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136; 117 Stat. 1556) are repealed.

SEC. 854. <<NOTE: 10 USC 2304 note.>> DEFENSE PROCUREMENTS MADE THROUGH 
            CONTRACTS OF OTHER AGENCIES.

    (a) Limitation.--The head of an agency may not procure goods or 
services (under section 1535 of title 31, United States Code, pursuant 
to a designation under section 11302(e) of title 40, United States Code, 
or otherwise) through a contract entered into by an agency outside the 
Department of Defense for an amount greater than the simplified 
acquisition threshold referred to in section 2304(g) of title 10, United 
States Code, unless the procurement is done in accordance with 
procedures prescribed by that head of an agency for reviewing and 
approving the use of such contracts.
    (b) Effective Date.--The limitation in subsection (a) shall apply 
only with respect to orders for goods or services that are issued by the 
head of an agency to an agency outside the Department of Defense on or 
after the date that is 180 days after the date of the enactment of this 
Act.
    (c) Inapplicability to Contracts for Certain Services.--This section 
does not apply to procurements of the following services:
            (1) Printing, binding, or blank-book work to which section 
        502 of title 44, United States Code, applies.
            (2) Services available under programs pursuant to section 
        103 of the Library of Congress Fiscal Operations Improvement Act 
        of 2000 (Public Law 106-481; 114 Stat. 2187; 2 U.S.C. 182c).

    (d) Annual Report.--(1) For each of fiscal years 2005 and 2006, each 
head of an agency shall submit to the Secretary of Defense a report on 
the service charges imposed on purchases made for an amount greater than 
the simplified acquisition threshold during such fiscal year through a 
contract entered into by an agency outside the Department of Defense.
    (2) In the case of procurements made on orders issued by the head of 
a Defense Agency, Department of Defense Field Activity, or any other 
organization within the Department of Defense (other than a military 
department) under the authority of the Secretary of Defense as the head 
of an agency, the report under paragraph (1) shall be submitted by the 
head of that Defense Agency, Department of Defense Field Activity, or 
other organization, respectively.
    (3) The report for a fiscal year under this subsection shall be 
submitted not later than December 31 of the calendar year in which such 
fiscal year ends.
    (e) Definitions.--In this section:
            (1) The term ``head of an agency'' means the Secretary of 
        Defense, the Secretary of the Army, the Secretary of the Navy, 
        the Secretary of the Air Force.
            (2) The term ``Defense Agency'' has the meaning given such 
        term in section 101(a)(11) of title 10, United States Code.

[[Page 118 STAT. 2023]]

            (3) The term ``Department of Defense Field Activity'' has 
        the meaning given such term in section 101(a)(12) of such title.

SEC. 855. REQUIREMENTS RELATING TO SOURCE SELECTION FOR INTEGRATED 
            SUPPORT OF AERIAL REFUELING AIRCRAFT FLEET FOR THE AIR 
            FORCE.

    For the selection of a provider of integrated support for the aerial 
refueling aircraft fleet in any acquisition of aerial refueling aircraft 
for the Air Force, the Secretary of the Air Force shall--
            (1) before selecting the provider, perform all analyses 
        required by law of--
                    (A) the costs and benefits of--
                          (i) the alternative of using Federal 
                      Government personnel to provide such support; and
                          (ii) the alternative of using contractor 
                      personnel to provide such support;
                    (B) the core logistics requirements;
                    (C) use of performance-based logistics; and
                    (D) the length of contract period; and
            (2) select the provider in accordance with the procedures 
        under the provisions of law referred to as the Competition in 
        Contracting Act.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

        Subtitle A--Duties and Functions of Department of Defense

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

                      Subtitle B--Space Activities

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

                Subtitle C--Intelligence-Related Matters

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

                        Subtitle D--Other Matters

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

        Subtitle A--Duties and Functions of Department of Defense

SEC. 901. STUDY OF ROLES AND AUTHORITIES OF THE DIRECTOR OF DEFENSE 
            RESEARCH AND ENGINEERING.

    (a) Study Required.--The Secretary of Defense shall carry out a 
study of the roles and authorities of the Director of Defense Research 
and Engineering.
    (b) Content of Study.--The study under subsection (a) shall include 
the following:

[[Page 118 STAT. 2024]]

            (1) An examination of the past and current roles and 
        authorities of the Director of Defense Research and Engineering.
            (2) An analysis to determine appropriate future roles and 
        authorities for the Director, including an analysis of the 
        following matters:
                    (A) The relationship of the Director to other senior 
                science and technology and acquisition officials of the 
                military departments and the Defense Agencies
                    (B) The relationship of the Director to the 
                performance of the following functions:
                          (i) The planning, programming, and budgeting 
                      of the science and technology programs of the 
                      Department of Defense, including those of the 
                      military departments and the Defense Agencies.
                          (ii) The management of Department of Defense 
                      laboratories and technical centers, including the 
                      management of the Federal Government scientific 
                      and technical workforce for such laboratories and 
                      centers.
                          (iii) The promotion of the rapid transition of 
                      technologies to acquisition programs within the 
                      Department of Defense.
                          (iv) The promotion of the transfer of 
                      technologies into and from the commercial sector.
                          (v) The coordination of Department of Defense 
                      science and technology activities with 
                      organizations outside the Department of Defense, 
                      including other Federal Government agencies, 
                      international research organizations, industry, 
                      and academia.
                          (vi) The technical review of Department of 
                      Defense acquisition programs and policies.
                          (vii) The training and educational activities 
                      for the national scientific and technical 
                      workforce.
                          (viii) The development of science and 
                      technology policies and programs relating to the 
                      maintenance of the national technology and 
                      industrial base.
                          (ix) The development of new technologies in 
                      support of the transformation of the Armed Forces.
            (3) An examination of the duties of the Director as the 
        Chief Technology Officer of the Department of Defense as 
        prescribed by Department of Defense Directive 5134.3, dated 
        November 3, 2003, especially in comparison to the duties of 
        similar positions in the Federal Government and industry.
            (4) An examination of any other matter that the Secretary 
        considers appropriate for the study.

    (c) Report.--(1) Not later than February 1, 2006, the Secretary 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
the results of the study under this section.
    (2) The report shall include recommendations regarding the 
appropriate roles and authorities that should be assigned and resources 
that should be provided to the Director of Defense Research and 
Engineering.
    (d) Role of Defense Science Board in Study and Report.--The 
Secretary shall act through the Defense Science Board in carrying out 
the study under subsection (a) and in preparing the report under 
subsection (c).

[[Page 118 STAT. 2025]]

SEC. 902. CHANGE OF MEMBERSHIP OF SPECIFIED COUNCIL.

    (a) Membership of Council Under Section 179.--Subsection (a) of 
section 179 of title 10, United States Code, is amended by adding at the 
end the following new paragraph:
            ``(4) The Under Secretary of Defense for Policy.''.

    (b) Conforming and Clarifying Amendments.--Such subsection is 
further amended in the matter preceding paragraph (1)--
            (1) by striking ``Joint''; and
            (2) by striking ``composed of three members as follows:'' 
        and inserting ``operated as a joint activity of the Department 
        of Defense and the Department of Energy. The membership of the 
        Council is comprised of the following officers of those 
        departments:''.

    (c) Other Technical and Clarifying Amendments.--Such section is 
further amended as follows:
            (1) Subsection (c)(3)(B) is amended by striking 
        ``appointed'' and inserting ``designated''.
            (2) Subsection (e) is amended by striking ``In addition'' 
        and all that follows through ``also'' and inserting ``The 
        Council shall''.
            (3) Subsection (f) is amended by striking ``Committee on'' 
        the first place it appears and all that follows through 
        ``Representatives'' and inserting ``congressional defense 
        committees''.

    (d) Stylistic Amendments.--Such section is further amended as 
follows:
            (1) Subsection (a) is amended by inserting ``Establishment; 
        Membership.--'' after ``(a)''.
            (2) Subsection (b) is amended by inserting ``Chairman; 
        Meetings.--'' after ``(b)''.
            (3) Subsection (c) is amended by inserting ``Staff and 
        Administrative Services; Staff Director.--'' after ``(c)''.
            (4) Subsection (d) is amended by inserting 
        ``Responsibilities.--'' after ``(d)''.
            (5) Subsection (e) is amended by inserting ``Report on 
        Difficulties Relating to Safety or Reliability.--'' after 
        ``(e)''.
            (6) Subsection (f) is amended by inserting ``Annual 
        Report.--'' after ``(f)''.

    (e) Further Conforming Amendments.--Section 3212(e) of the National 
Nuclear Security Administration Act (50 U.S.C. 2402(e)) is amended--
            (1) by striking ``Joint'' in the subsection heading; and
            (2) by striking ``Joint''.

                      Subtitle B--Space Activities

SEC. 911. SPACE POSTURE REVIEW.

    (a) Requirement for Comprehensive Review.--In order to clarify the 
national security space policy and strategy of the United States for the 
near term, the Secretary of Defense shall conduct a comprehensive review 
of the space posture of the United States over the posture review 
period.
    (b) Elements of Review.--The review conducted under subsection (a) 
shall include, for the posture review period, the following:
            (1) The definition, policy, requirements, and objectives for 
        each of the following:
                    (A) Space situational awareness.

[[Page 118 STAT. 2026]]

                    (B) Space control.
                    (C) Space superiority, including defensive and 
                offensive counterspace.
                    (D) Force enhancement and force application.
                    (E) Space-based intelligence, surveillance, and 
                reconnaissance from space.
                    (F) Any other matter the Secretary considers 
                relevant to understanding the United States space 
                posture.
            (2) Current and planned space acquisition programs that are 
        in acquisition categories 1 and 2, including how each such 
        program will address the policy, requirements, and objectives 
        described under each of subparagraphs (A) through (F) of 
        paragraph (1).
            (3) Future space systems and technology development (other 
        than those in development as of the date of the enactment of 
        this Act) necessary to address the policy, requirements, and 
        objectives described under each of subparagraphs (A) through (F) 
        of paragraph (1).
            (4) The relationship among--
                    (A) United States military space policy;
                    (B) national security space policy;
                    (C) national security space objectives; and
                    (D) arms control policy.
            (5) Effect of United States military and national security 
        space policy on the proliferation of weapons capable of 
        targeting objects in space or objects on Earth from space.

    (c) Reports.--(1) Not later than March 15, 2005, the Secretary of 
Defense shall submit to the congressional committees specified in 
paragraph (4) an interim report on the review conducted under subsection 
(a).
    (2) Not later than December 31, 2005, the Secretary shall submit to 
those committees a final report on that review.
    (3) Each report under this subsection shall be submitted in 
unclassified form, but may include a classified annex.
    (4) The reports under this subsection shall be submitted to the 
Committee on Armed Services and the Select Committee on Intelligence of 
the Senate and the Committee on Armed Services and the Permanent Select 
Committee on Intelligence of the House of Representatives.
    (d) Joint Undertaking With the Director of Central Intelligence (or 
Successor).--The Secretary of Defense shall conduct the review under 
this section, and shall submit the reports under subsection (c), jointly 
with the Director of Central Intelligence (or any successor official who 
has responsibility for management of the intelligence community).
    (e) Posture Review Period.--In this section, the term ``posture 
review period'' means the 10-year period beginning on the first day of 
the first month beginning more than one year after the date of the 
enactment of this Act.

SEC. 912. PANEL ON THE FUTURE OF NATIONAL SECURITY SPACE LAUNCH.

    (a) In General.--(1) The <<NOTE: Contracts.>> Secretary of Defense 
shall enter into a contract with a federally funded research and 
development center to establish a panel on the future national security 
space launch requirements of the United States, including means of 
meeting those requirements.

[[Page 118 STAT. 2027]]

    (2) <<NOTE: Deadline.>> The Secretary shall enter into the contract 
not later than 60 days after the date of the enactment of this Act.

    (b) Membership and Administration of Panel.--(1) The panel shall 
consist of individuals selected by the federally funded research and 
development center from among private citizens of the United States with 
knowledge and expertise in one or more of the following areas:
            (A) Space launch operations.
            (B) Space launch technologies.
            (C) Satellite and satellite payloads.
            (D) State and national launch complexes.
            (E) Space launch economics.

    (2) The federally funded research and development center shall 
establish appropriate procedures for the administration of the panel, 
including designation of the chairman of the panel from among its 
members.
    (3) All panel members shall hold security clearances appropriate for 
the work of the panel.
    (4) The panel shall convene its first meeting not later than 30 days 
after the date on which all members of the panel have been selected.
    (c) Duties.--(1) The panel shall conduct a review and assessment of 
the future national security space launch requirements of the United 
States, including the means of meeting those requirements.
    (2) The review and assessment shall take into account the following 
matters:
            (A) Launch economics.
            (B) Operational concepts and architectures.
            (C) Launch technologies, including--
                    (i) reusable launch vehicles;
                    (ii) expendable launch vehicles;
                    (iii) low cost options; and
                    (iv) revolutionary approaches.
            (D) Payloads, including the implications of payloads for 
        launch requirements.
            (E) Launch infrastructure.
            (F) Launch industrial base.
            (G) Relationships among military, civilian, and commercial 
        launch requirements.

    (3) The review and assessment shall address national security space 
launch requirements over each of the 5-year, 10-year, and 15-year 
periods beginning with 2005.
    (d) Information From Federal and State Agencies.--(1) The panel may 
secure directly from the Department of Defense, from any other 
department or agency of the Federal Government, and any State government 
any information that the panel considers necessary to carry out its 
duties.
    (2) The Secretary of Defense shall designate at least one senior 
civilian employee of the Department of Defense and at least one general 
or flag officer of an Armed Force to serve as liaison between the 
Department, the Armed Forces, and the panel.
    (e) Report.--Not later than one year after the date of the first 
meeting of the panel under subsection (b)(4), the panel shall submit to 
the Secretary of Defense, the congressional defense committees, the 
Select Committee on Intelligence of the Senate, and the Permanent Select 
Committee on Intelligence of the House

[[Page 118 STAT. 2028]]

of Representatives a report on the results of the review and assessment 
under subsection (c). The report shall include--
            (1) the findings and conclusions of the panel on the future 
        national security space launch requirements of the United 
        States, including means of meeting such requirements;
            (2) the assessment of panel, and any recommendations of the 
        panel, on--
                    (A) launch operational concepts and architectures;
                    (B) launch technologies;
                    (C) launch enabling technologies; and
                    (D) priorities for funding; and
            (3) the assessment of the panel as to the best means of 
        meeting the future national security space launch requirements 
        of the United States.

    (f) Termination.--The panel shall terminate 16 months after the date 
of the first meeting of the panel under subsection (b)(4).
    (g) Funding.--Amounts authorized to be appropriated to the 
Department of Defense shall be available to the Secretary of Defense for 
purposes of the contract required by subsection (a).

SEC. 913. OPERATIONALLY RESPONSIVE NATIONAL SECURITY SATELLITES.

    (a) Planning, Programming, and Management.--(1) Chapter 135 of title 
10, United States Code, is amended by inserting after section 2273 the 
following new section:

``Sec. 2273a. Operationally responsive national security payloads and 
                        buses: separate program element required

    ``(a) Requirement for Program Element.--The Secretary of Defense 
shall ensure that, within budget program elements for space programs of 
the Department of Defense, there is a separate, dedicated program 
element for operationally responsive national security payloads and 
buses of the Department of Defense for space satellites and that 
programs and activities for such payloads and buses are planned, 
programmed, and budgeted for through that program element.
    ``(b) Management Authority.--The Secretary of Defense shall assign 
management authority for the program element required under subsection 
(a) to the Director of the Office of Force Transformation of the 
Department of Defense.
    ``(c) Definition of Operationally Responsive.--In this section, the 
term `operationally responsive', with respect to a national security 
payload and bus for a space satellite, means an experimental or 
operational payload and bus with a weight not in excess of 5,000 pounds 
that--
            ``(1) can be developed and acquired within 18 months after 
        authority to proceed with development is granted; and
            ``(2) is responsive to requirements for capabilities at the 
        operational and tactical levels of warfare.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2273 the 
following new item:

``2273a. Operationally responsive national security payloads and buses: 
           separate program element required.''.

    (b) Time for Implementation.--Subsection (a) <<NOTE: 10 USC 2273a 
note.>> of section 2273a of title 10, United States Code, as added by 
subsection (a), shall apply with respect to fiscal years after fiscal 
year 2005.

[[Page 118 STAT. 2029]]

SEC. 914. <<NOTE: 5 USC 552 note.>> NONDISCLOSURE OF CERTAIN PRODUCTS OF 
            COMMERCIAL SATELLITE OPERATIONS.

    (a) Mandatory Disclosure Requirements Inapplicable.--The 
requirements to make information available under section 552 of title 5, 
United States Code, shall not apply to land remote sensing information.
    (b) Land Remote Sensing Information Defined.--In this section, the 
term ``land remote sensing information''--
            (1) means any data that--
                    (A) are collected by land remote sensing; and
                    (B) are prohibited from sale to customers other than 
                the United States Government and United States 
                Government-approved customers for reasons of national 
                security pursuant to the terms of an operating license 
                issued pursuant to the Land Remote Sensing Policy Act of 
                1992 (15 U.S.C. 5601 et seq.); and
            (2) includes any imagery and other product that is derived 
        from such data and which is prohibited from sale to customers 
        other than the United States Government and United States 
        Government-approved customers for reasons of national security 
        pursuant to the terms of an operating license described in 
        paragraph (1)(B).

    (c) State or Local Government Disclosures.--Land remote sensing 
information provided by the head of a department or agency of the United 
States to a State, local, or tribal government may not be made available 
to the general public under any State, local, or tribal law relating to 
the disclosure of information or records.
    (d) Safeguarding Information.--The head of each department or agency 
of the United States having land remote sensing information within that 
department or agency or providing such information to a State, local, or 
tribal government shall take such actions, commensurate with the 
sensitivity of that information, as are necessary to protect that 
information from disclosure other than in accordance with this section 
and other applicable law.
    (e) Additional Definition.--In this section, the term ``land remote 
sensing'' has the meaning given such term in section 3 of the Land 
Remote Sensing Policy Act of 1992 (15 U.S.C. 5602).
    (f) Disclosure to Congress.--Nothing in this section shall be 
construed to authorize the withholding of information from the 
appropriate committees of Congress.

                Subtitle C--Intelligence-Related Matters

SEC. 921. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF DEFENSE TO 
            ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR INTELLIGENCE 
            COLLECTION ACTIVITIES ABROAD.

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

SEC. 922. <<NOTE: 50 USC 402 note.>> PILOT PROGRAM ON CRYPTOLOGIC 
            SERVICE TRAINING.

    (a) Program Authorized.--The Director of the National Security 
Agency may carry out a pilot program on cryptologic service training for 
the intelligence community.
    (b) Objective of Program.--The objective of the pilot program is to 
increase the number of qualified entry-level language analysts

[[Page 118 STAT. 2030]]

and intelligence analysts available to the National Security Agency and 
the other elements of the intelligence community through the directed 
preparation and recruitment of qualified entry-level language analysts 
and intelligence analysts who commit to a period of service or a career 
in the intelligence community.
    (c) Program Scope.--The pilot program shall be national in scope.
    (d) Program Participants.--(1) Subject to the provisions of this 
subsection, the Director shall select the participants in the pilot 
program from among individuals qualified to participate in the pilot 
program utilizing such procedures as the Director considers appropriate 
for purposes of the pilot program.
    (2) Each individual who receives financial assistance under the 
pilot program shall perform one year of obligated service with the 
National Security Agency, or another element of the intelligence 
community approved by the Director, for each academic year for which 
such individual receives such financial assistance upon such 
individual's completion of post-secondary education.
    (3) Each individual selected to participate in the pilot program 
shall be qualified for a security clearance appropriate for the 
individual under the pilot program.
    (4) The total number of participants in the pilot program at any one 
time may not exceed 400 individuals.
    (e) Program Management.--In carrying out the pilot program, the 
Director shall--
            (1) identify individuals interested in working in the 
        intelligence community, and committed to taking college-level 
        courses that will better prepare them for a career in the 
        intelligence community as a language analyst or intelligence 
        analyst;
            (2) provide each individual selected for participation in 
        the pilot program--
                    (A) financial assistance for the pursuit of courses 
                at institutions of higher education selected by the 
                Director in fields of study that will qualify such 
                individual for employment by an element of the 
                intelligence community as a language analyst or 
                intelligence analyst; and
                    (B) educational counseling on the selection of 
                courses to be so pursued; and
            (3) provide each individual so selected information on the 
        opportunities available for employment in the intelligence 
        community.

    (f) Duration of Program.--(1) The Director shall terminate the pilot 
program not later than six years after the date of the enactment of this 
Act.
    (2) The termination of the pilot program under paragraph (1) shall 
not prevent the Director from continuing to provide assistance, 
counseling, and information under subsection (e) to individuals who are 
participating in the pilot program on the date of termination of the 
pilot program throughout the academic year in progress as of that date.

[[Page 118 STAT. 2031]]

                        Subtitle D--Other Matters

SEC. 931. STRATEGIC PLAN FOR DESTRUCTION OF LETHAL CHEMICAL AGENTS AND 
            MUNITIONS STOCKPILE.

    Subsection (d) of section 1412 of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521), is amended to read as follows:
    ``(d) Requirement for Strategic Plan.--(1) The Under Secretary of 
Defense for Acquisition, Technology, and Logistics and the Secretary of 
the Army shall jointly prepare, and from time to time shall update as 
appropriate, a strategic plan for future activities for destruction of 
the United States' stockpile of lethal chemical agents and munitions.
    ``(2) The plan shall include, at a minimum, the following 
considerations:
            ``(A) Realistic budgeting for stockpile destruction and 
        related support programs.
            ``(B) Contingency planning for foreseeable or anticipated 
        problems.
            ``(C) A management approach and associated actions that 
        address compliance with the obligations of the United States 
        under the Chemical Weapons Convention treaty and that take full 
        advantage of opportunities to accelerate destruction of the 
        stockpile.

    ``(3) The Secretary of Defense shall each year submit to the 
Committee on the Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives the strategic plan as most 
recently prepared and updated under paragraph (1). Such submission shall 
be made each year at the time of the submission to the Congress that 
year of the President's budget for the next fiscal year.''.

SEC. 932. <<NOTE: 10 USC 113 note.>> SECRETARY OF DEFENSE CRITERIA FOR 
            AND GUIDANCE ON IDENTIFICATION AND INTERNAL TRANSMISSION OF 
            CRITICAL INFORMATION.

    (a) Criteria for Critical Information.--(1) The Secretary of Defense 
shall establish criteria for determining categories of critical 
information that should be made known expeditiously to senior civilian 
and military officials in the Department of Defense. Those categories 
should be limited to matters of extraordinary significance and strategic 
impact to which rapid access by those officials is essential to the 
successful accomplishment of the national security strategy or a major 
military mission. The Secretary may from time to time modify the list to 
suit the current strategic situation.
    (2) The Secretary shall provide the criteria established under 
paragraph (1) to the Chairman of the Joint Chiefs of Staff, the 
Secretaries of the military departments, the commanders of the unified 
and specified commands, the commanders of deployed forces, and such 
other elements of the Department of Defense as the Secretary considers 
necessary.
    (b) Matters To Be Included.--The criteria established under 
subsection (a) shall include, at a minimum, requirement for 
identification of the following:
            (1) Any incident that may result in a contingency operation, 
        based on the incident's nature, gravity, or potential for 
        significant adverse consequences to United States citizens, 
        military

[[Page 118 STAT. 2032]]

        personnel, interests, or assets, including an incident that 
        could result in significant adverse publicity having a major 
        strategic impact.
            (2) Any event, development, or situation that could be 
        reasonably assumed to escalate into an incident described in 
        paragraph (1).
            (3) Any deficiency or error in policy, standards, or 
        training that could be reasonably assumed to have the effects 
        described in paragraph (1).

    (c) Requirements for Transmission of Critical Information.--The 
criteria under subsection (a) shall include such requirements for 
transmission of such critical information to such senior civilian and 
military officials of the Department of Defense as the Secretary of 
Defense considers appropriate.
    (d) Time for Issuance of Criteria.--The Secretary of Defense shall 
establish the criteria required by subsection (a) not later than 120 
days after the date of the enactment of this Act.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                     Subtitle C--Counterdrug Matters

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

       Subtitle D--Matters Relating to Museums and Commemorations

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

                           Subtitle E--Reports

Sec. 1041. Quarterly detailed accounting for operations conducted as 
           part of the Global War on Terrorism.
Sec. 1042. Report on post-major combat operations phase of Operation 
           Iraqi Freedom.
Sec. 1043. Report on training provided to members of the Armed Forces to 
           prepare for post-conflict operations.

[[Page 118 STAT. 2033]]

Sec. 1044. Report on establishing National Centers of Excellence for 
           unmanned aerial and ground vehicles.
Sec. 1045. Study of continued requirement for two-crew manning for 
           ballistic missile submarines.
Sec. 1046. Report on Department of Defense programs for prepositioning 
           of materiel and equipment.
Sec. 1047. Report on al Quaeda and associated groups in Latin America 
           and the Caribbean.

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

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

                 Subtitle G--Personnel Security Matters

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

               Subtitle H--Transportation-Related Matters

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

                        Subtitle I--Other Matters

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

                      Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination by 
the Secretary of Defense that such action is necessary in the national 
interest, the Secretary may transfer amounts of authorizations made 
available to the Department of Defense in this division for fiscal year 
2005 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.

[[Page 118 STAT. 2034]]

    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$3,500,000,000.
    (b) Limitations.--The authority provided by this section to transfer 
authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.

    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
            FISCAL YEAR 2005.

    (a) Fiscal Year 2005 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2005 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2004, of funds appropriated for fiscal years before 
        fiscal year 2005 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.

    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $756,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $222,492,000 
        for the Military Budget.

    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-funded 
        budgets of NATO'' means the Military Budget, the Security 
        Investment Program, and the Civil Budget of the North Atlantic 
        Treaty Organization (and any successor or additional account or 
        program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term ``fiscal 
        year 1998 baseline limitation'' means the maximum annual amount 
        of Department of Defense contributions for common-funded budgets 
        of NATO that is set forth as the annual limitation in section 
        3(2)(C)(ii) of the resolution of the Senate giving the advice 
        and consent of the Senate to the ratification of the Protocols 
        to the North Atlantic Treaty of 1949 on the Accession of Poland, 
        Hungary, and the Czech Republic (as

[[Page 118 STAT. 2035]]

        defined in section 4(7) of that resolution), approved by the 
        Senate on April 30, 1998.

SEC. 1003. BUDGET JUSTIFICATION DOCUMENTS FOR OPERATION AND MAINTENANCE.

    (a) In General.--(1) Chapter 9 of title 10, United States Code, is 
amended by adding after section 232, as added by section 214(a), the 
following new section:

``Sec. 233. Operation and maintenance budget presentation

    ``(a) Identification of Baseline Amounts in O&M Justification 
Documents.--In any case in which the amount requested in the President's 
budget for a fiscal year for a Department of Defense operation and 
maintenance program, project, or activity is different from the amount 
appropriated for that program, project, or activity for the current 
year, the O&M justification documents supporting that budget shall 
identify that appropriated amount and the difference between that amount 
and the amount requested in the budget, stated as an amount and as a 
percentage.
    ``(b) Navy for Ship Depot Maintenance and for Intermediate Ship 
Maintenance.--In the O&M justification documents for the Navy for any 
fiscal year, amounts requested for ship depot maintenance and amounts 
requested for intermediate ship maintenance shall be identified and 
distinguished.
    ``(c) Definitions.--In this section:
            ``(1) The term `O&M justification documents' means 
        Department of Defense budget justification documents with 
        respect to accounts for operation and maintenance submitted to 
        the congressional defense committees in support of the 
        Department of Defense component of the President's budget for 
        any fiscal year.
            ``(2) The term `President's budget' means the budget of the 
        President submitted to Congress under section 1105 of title 31 
        for any fiscal year.
            ``(3) The term `current year' means the fiscal year during 
        which the President's budget is submitted in any year.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 232, as added by 
section 214(b), the following new item:

``233. Operation and maintenance budget presentation.''.

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

SEC. 1004. LICENSING OF INTELLECTUAL PROPERTY.

    (a) Authority.--Subchapter II of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 2260. Licensing of intellectual property: retention of fees

    ``(a) Authority.--Under <<NOTE: Regulations.>> regulations 
prescribed by the Secretary of Defense, the Secretary concerned may 
license trademarks, service

[[Page 118 STAT. 2036]]

marks, certification marks, and collective marks owned or controlled by 
the Secretary concerned and may retain and expend fees received from 
such licensing in accordance with this section.
    ``(b) Designated Marks.--The Secretary concerned shall designate the 
trademarks, service marks, certification marks, and collective marks 
regarding which the Secretary will exercise the authority to retain 
licensing fees under this section.
    ``(c) Use of Fees.--The Secretary concerned shall use fees retained 
under this section for the following purposes:
            ``(1) For payment of the following costs incurred by the 
        Secretary:
                    ``(A) Costs of securing trademark registrations.
                    ``(B) Costs of operating the licensing program under 
                this section.
            ``(2) For morale, welfare, and recreation activities under 
        the jurisdiction of the Secretary, to the extent (if any) that 
        the total amount of the licensing fees available under this 
        section for a fiscal year exceed the total amount needed for 
        such fiscal year under paragraph (1).

    ``(d) Availability.--Fees received in a fiscal year and retained 
under this section shall be available for obligation in such fiscal year 
and the following two fiscal years.
    ``(e) Definitions.--In this section, the terms `trademark', `service 
mark', `certification mark', and `collective mark' have the meanings 
given such terms in section 45 of the Act of July 5, 1946 (commonly 
referred to as the Trademark Act of 1946; 15 U.S.C. 1127).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2260. Licensing of intellectual property: retention of fees.''.

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

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

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

    (a) Secretary of Defense Report.--(1) Not later than December 1, 
2004, the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives a report on the foreign currency exchange rate 
projection used in annual Department of Defense budget presentations.
    (2) In the report under paragraph (1), the Secretary shall--
            (A) identify alternative approaches for selecting foreign 
        currency exchange rates that would produce more realistic 
        estimates of amounts required to be appropriated or otherwise 
        made available for the Department of Defense to accommodate 
        foreign currency exchange rate fluctuations;
            (B) discuss the advantages and disadvantages of each 
        approach identified pursuant to subparagraph (A); and

[[Page 118 STAT. 2037]]

            (C) identify the Secretary's preferred approach among the 
        alternatives identified pursuant to subparagraph (A) and provide 
        the Secretary's rationale for preferring that approach.

    (3) In identifying alternative approaches pursuant to paragraph 
(2)(A), the Secretary shall examine--
            (A) approaches used by other Federal departments and 
        agencies; and
            (B) the feasibility of using private economic forecasting.

    (b) Comptroller General Review and Report.--The Comptroller General 
shall review the report under subsection (a), including the basis for 
the Secretary's conclusions stated in the report, and shall submit, not 
later than January 15, 2005, to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report containing the results of that review.

SEC. 1007. FISCAL YEAR 2004 TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1582) is amended by 
striking ``$2,500,000,000'' and inserting ``$2,800,000,000''.

SEC. 1008. CLARIFICATION OF FISCAL YEAR 2004 FUNDING LEVEL FOR A 
            NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACCOUNT.

    For the purposes of applying sections 204 and 605 of the Departments 
of Commerce, Justice, and State, the Judiciary, and Related Agencies 
Appropriations Act, 2004 (division B of Public Law 108-199) to matters 
in title II of such Act under the heading ``National Institute of 
Standards and Technology'' (118 Stat. 69), in the account under the 
heading ``industrial technology services'', the Secretary of Commerce 
shall make all determinations based on the Industrial Technology 
Services funding level of $218,782,000 for reprogramming and 
transferring of funds for the Manufacturing Extension Partnership 
program and may submit such a reprogramming or transfer, as the case may 
be, to the appropriate committees within 30 days after the date of the 
enactment of this Act.

SEC. 1009. NOTIFICATION OF FUND TRANSFERS FROM WORKING-CAPITAL FUNDS.

    Section 2208 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(r) Notification of Transfers.--(1) Notwithstanding any authority 
provided in this section to transfer funds, the transfer of funds from a 
working-capital fund, including a transfer to another working-capital 
fund, shall not be made under such authority unless the Secretary of 
Defense submits, in advance, a notification of the proposed transfer to 
the congressional defense committees in accordance with customary 
procedures.
    ``(2) The amount of a transfer covered by a notification under 
paragraph (1) that is made in a fiscal year does not count toward any 
limitation on the total amount of transfers that may be made for that 
fiscal year under authority provided to the Secretary of Defense in a 
law authorizing appropriations for a fiscal year for military activities 
of the Department of Defense or a law making appropriations for the 
Department of Defense.''.

[[Page 118 STAT. 2038]]

SEC. 1010. CHARGES FOR DEFENSE LOGISTICS INFORMATION SERVICES MATERIALS.

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

``Sec. 197. Defense Logistics Agency: fees charged for logistics 
                        information

    ``(a) Authority.--The Secretary of Defense may charge fees for 
providing information in the Federal Logistics Information System 
through Defense Logistics Information Services to a department or agency 
of the executive branch outside the Department of Defense, or to a 
State, a political subdivision of a State, or any person.
    ``(b) Amount.--The fee or fees prescribed under subsection (a) shall 
be such amount or amounts as the Secretary of Defense determines 
appropriate for recovering the costs of providing information as 
described in such subsection.
    ``(c) Retention of Fees.--Fees collected under this section shall be 
credited to the appropriation available for Defense Logistics 
Information Services for the fiscal year in which collected, shall be 
merged with other sums in such appropriation, and shall be available for 
the same purposes and period as the appropriation with which merged.
    ``(d) Defense Logistics Information Services Defined.--In this 
section, the term `Defense Logistics Information Services' means the 
organization within the Defense Logistics Agency that is known as 
Defense Logistics Information Services.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``197. Defense Logistics Agency: fees charged for logistics 
           information.''.

                 Subtitle B--Naval Vessels and Shipyards

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

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

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

    ``(a) Authority for Net-Cost Basis Contracts.--When the Secretary of 
the Navy awards a contract for the dismantling of a vessel stricken from 
the Naval Vessel Register, the Secretary may award the contract on a 
net-cost basis.
    ``(b) Retention by Contractor of Proceeds of Sale of Scrap and 
Reusable Items.--When the Secretary awards a contract on a net-cost 
basis under subsection (a), the Secretary shall provide in the contract 
that the contractor may retain the proceeds from the sale of scrap and 
reusable items removed from the vessel dismantled under the contract.
    ``(c) Definitions.--In this section:
            ``(1) The term `net-cost basis', with respect to a contract 
        for the dismantling of a vessel, means that the amount to be 
        paid to the contractor under the contract for dismantling

[[Page 118 STAT. 2039]]

        and for removal and disposal of hazardous waste material is 
        discounted by the offeror's estimate of the value of scrap and 
        reusable items that the contractor will remove from the vessel 
        during performance of the contract.
            ``(2) The term `scrap' means personal property that has no 
        value except for its basic material content.
            ``(3) The term `reusable item' means a demilitarized 
        component or a removable portion of a vessel or equipment that 
        the Secretary of the Navy has identified as excess to the needs 
        of the Navy but which has potential resale value on the open 
        market.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7305 the following new item:

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

SEC. 1012. USE OF PROCEEDS FROM EXCHANGE AND SALE OF OBSOLETE NAVY 
            SERVICE CRAFT AND BOATS.

    (a) Costs of Preparation for Disposal.--(1) Chapter 633 of title 10, 
United States Code, is amended by inserting after section 7311 the 
following new section:

``Sec. 7312. Service craft stricken from Naval Vessel Register; obsolete 
                        boats: use of proceeds from exchange or sale

    ``(a) Exchange or Sale of Similar Items.--When the Secretary of the 
Navy sells an obsolete service craft or an obsolete boat, or exchanges 
such a craft or boat in a transaction for which a similar craft or boat 
is acquired, the Secretary may retain the proceeds of the sale or the 
exchange allowance from the exchange, as the case may be, and apply the 
proceeds of sale or the exchange allowance for any of the following 
purposes:
            ``(1) For payment, in whole or in part, for a similar 
        service craft or boat acquired as a replacement, as authorized 
        by section 503 of title 40.
            ``(2) For reimbursement, to the extent practicable, of the 
        appropriate accounts of the Navy for the full costs of 
        preparation of such obsolete craft or boat for such sale or 
        exchange.
            ``(3) For deposit to the special account established under 
        subsection (b), to be available in accordance with that 
        subsection.

    ``(b) Special Account.--Amounts retained under subsection (a) that 
are not applied as provided in paragraph (1) or (2) of that subsection 
shall be deposited into a special account. Amounts in the account shall 
be available under subsection (c) without regard to fiscal year 
limitation. Amounts in the account that the Secretary of the Navy 
determines are not needed for the purpose stated in subsection (c) shall 
be transferred at least annually to the General Fund of the Treasury.
    ``(c) Costs of Preparation of Obsolete Service Craft and Boats for 
Future Sale or Exchange.--The Secretary may use amounts in the account 
under subsection (b) for payment, in whole or in part, for the full 
costs of preparation of obsolete service craft and obsolete boats for 
future sale or exchange.
    ``(d) Costs of Preparation for Sale or Exchange.--In this section, 
the term `full costs of preparation' means the full costs

[[Page 118 STAT. 2040]]

(direct and indirect) incurred by the Navy in preparing an obsolete 
service craft or an obsolete boat for exchange or sale, including the 
cost of the following:
            ``(1) Towing.
            ``(2) Storage.
            ``(3) Defueling.
            ``(4) Removal and disposal of hazardous wastes.
            ``(5) Environmental surveys to determine the presence of 
        regulated materials containing polychlorinated biphenyl (PCB) 
        and, if such materials are found, the removal and disposal of 
        such materials.
            ``(6) Other costs related to such preparation.

    ``(e) Obsolete Service Craft.--For purposes of this section, an 
obsolete service craft is a service craft that has been stricken from 
the Naval Vessel Register.
    ``(f) Inapplicability of Advertising Requirement.--Section 3709 of 
the Revised Statutes (41 U.S.C. 5) does not apply to sales of service 
craft and boats described in subsection (a).
    ``(g) Regulations.--The Secretary of the Navy shall prescribe 
regulations for the purposes of this section.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 7311 the 
following new item:

``7312. Service craft stricken from Naval Vessel Register; obsolete 
           boats: use of proceeds from exchange or sale.''.

    (b) Applicability.--Section 7312 <<NOTE: 10 USC 7312 note.>> of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to amounts received on or after the date of the enactment 
of this Act and to amounts received before the date of the enactment of 
this Act and not obligated as of that date.

SEC. 1013. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN RECIPIENTS.

    (a) Transfers by Grant.--The <<NOTE: President.>> President is 
authorized to transfer vessels to foreign recipients on a grant basis 
under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j), as follows:
            (1) Chile.--To the Government of Chile, the SPRUANCE class 
        destroyer USS O'BANNON (DD-987).
            (2) Portugal.--To the Government of Portugal, the OLIVER 
        HAZARD PERRY class guided missile frigates GEORGE PHILIP (FFG-
        12) and SIDES (FFG-14).

    (b) Transfers by Sale.--The President is authorized to transfer 
vessels to foreign recipients on a sale basis under section 21 of the 
Arms Export Control Act (22 U.S.C. 2761), as follows:
            (1) Chile.--To the Government of Chile, the SPRUANCE class 
        destroyer FLETCHER (DD-992).
            (2) Taiwan.--To the Taipei Economic and Cultural 
        Representative Office of the United States (which is the Taiwan 
        instrumentality designated pursuant to section 10(a) of the 
        Taiwan Relations Act (22 U.S.C. 3309(a))), the ANCHORAGE class 
        dock landing ship ANCHORAGE (LSD-36).

    (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 pursuant to authority provided by subsection (a) shall not 
be counted against the aggregate value of excess defense articles 
transferred to countries in any fiscal

[[Page 118 STAT. 2041]]

year under section 516(g) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j(g)).
    (d) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized under subsection (a) or (b) 
shall be charged to the recipient.
    (e) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the <<NOTE: President.>> 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. INDEPENDENT STUDY TO ASSESS COST EFFECTIVENESS OF THE NAVY 
            SHIP CONSTRUCTION PROGRAM.

    (a) Study.--The Secretary of Defense shall provide for a study of 
the cost effectiveness of the ship construction program of the Navy. The 
study shall be conducted by a group of industrial experts independent of 
the Department of Defense. The study shall 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 enhance its health and viability.

    (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 persons conducting the study to--
            (1) determine the potential cost savings on an annual basis, 
        with an estimate of return on investment, from implementation of 
        each approach examined; and
            (2) establish priorities for potential implementation of the 
        approaches examined.

    (c) United States Shipbuilding Infrastructure Modernization Plan.--
With respect to the examination under subsection (a)(2) of approaches by 
which the United States shipbuilding industry might enhance its health 
and viability through a nationally integrated effort over the next 
decade, the Secretary shall provide for the persons conducting the study 
to--
            (1) propose a plan incorporating a variety of approaches 
        that would modernize the United States shipbuilding 
        infrastructure within the next decade, resulting in a healthier 
        and more viable shipbuilding industrial base;
            (2) establish priorities for potential implementation of the 
        approaches examined; and
            (3) estimate the resources required to implement each of the 
        approaches examined.

    (d) Report.--Not later than October 1, 2005, the Secretary of 
Defense shall submit a report to the congressional defense committees 
providing the results of the study under subsection

[[Page 118 STAT. 2042]]

(a). The report shall include the matters specified in subsections (b) 
and (c).

SEC. 1015. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

    The Secretary of the Navy may not dispose of the decommissioned 
destroyer ex-Edson (DD-946) before October 1, 2007, to an entity that is 
not a nonprofit organization unless the Secretary first determines that 
there is no nonprofit organization that meets the criteria for donation 
of that vessel under section 7306(a)(3) of title 10, United States Code.

                     Subtitle C--Counterdrug Matters

SEC. 1021. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND COUNTERTERRORISM 
            CAMPAIGN IN COLOMBIA.

    (a) Authority.--(1) In fiscal years 2005 and 2006, funds available 
to the Department of Defense to provide assistance to the Government of 
Colombia may be used by the Secretary of Defense to support a unified 
campaign by the Government of Colombia against narcotics trafficking and 
against activities by organizations designated as terrorist 
organizations, such as the Revolutionary Armed Forces of Colombia 
(FARC), the National Liberation Army (ELN), and the United Self-Defense 
Forces of Colombia (AUC).
    (2) The authority to provide assistance for a campaign under this 
subsection includes authority to take actions to protect human health 
and welfare in emergency circumstances, including the undertaking of 
rescue operations.
    (b) Applicability of Certain Laws and Limitations.--The use of funds 
pursuant to the authority in subsection (a) shall be subject to the 
following:
            (1) Sections 556, 567, and 568 of the Foreign Operations, 
        Export Financing, and Related Programs Appropriations Act, 2002 
        (Public Law 107-115; 115 Stat. 2160, 2165, and 2166).
            (2) Section 8076 of the Department of Defense Appropriations 
        Act, 2005 (Public Law 108-287; 118 Stat. 988).

    (c) Numerical Limitation on Assignment of United States Personnel.--
Notwithstanding section 3204(b) of the Emergency Supplemental Act, 2000 
(Division B of Public Law 106-246; 114 Stat. 575), as amended by the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 2131), the 
number of United States personnel assigned to conduct activities in 
Colombia in connection with support of Plan Colombia under subsection 
(a) in fiscal years 2005 and 2006 shall be subject to the following 
limitations:
            (1) The number of United States military personnel assigned 
        for temporary or permanent duty in Colombia in connection with 
        support of Plan Colombia may not exceed 800.
            (2) The number of United States individual citizens retained 
        as contractors in Colombia in connection with support of Plan 
        Colombia who are funded by Federal funds may not exceed 600.

    (d) Limitation on Participation of United States Personnel.--No 
United States Armed Forces personnel, United States civilian employees, 
or United States civilian contractor personnel employed by the United 
States may participate in any combat operation in connection with 
assistance using funds pursuant to

[[Page 118 STAT. 2043]]

the authority in subsection (a), except for the purpose of acting in 
self defense or of rescuing any United States citizen, including any 
United States Armed Forces personnel, United States civilian employee, 
or civilian contractor employed by the United States.
    (e) Relation to Other Authority.--The authority provided by 
subsection (a) is in addition to any other authority in law to provide 
assistance to the Government of Colombia.
    (f) Report on Relationships Between Terrorist Organizations in 
Colombia and Foreign Governments and Organizations.--(1) Not later than 
60 days after the date of the enactment of this Act, the Secretary of 
State, in consultation with the Secretary of Defense and the Director of 
Central Intelligence, shall submit to the congressional defense 
committees and the Committee on Foreign Relations of the Senate and the 
Committee on International Relations of the House of Representatives a 
report that describes--
            (A) any relationships between foreign governments or 
        organizations and organizations based in Colombia that have been 
        designated as foreign terrorist organizations under United 
        States law, including the provision of any direct or indirect 
        assistance to such organizations; and
            (B) United States policies that are designed to address such 
        relationships.

    (2) The report under paragraph (1) shall be submitted in 
unclassified form, but may include a classified annex.

SEC. 1022. SENSE OF CONGRESS AND REPORT REGARDING COUNTER-DRUG EFFORTS 
            IN AFGHANISTAN.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the President should make the substantial reduction of 
        illegal drug trafficking in Afghanistan a priority in the Global 
        War on Terrorism;
            (2) the Secretary of Defense, in coordination with the 
        Secretary of State and the heads of other appropriate Federal 
        agencies, should expand cooperation with the Government of 
        Afghanistan and international organizations involved in counter-
        drug activities to assist in providing a secure environment for 
        counter-drug personnel in Afghanistan; and
            (3) the United States, in conjunction with the Government of 
        Afghanistan and coalition partners, should undertake additional 
        efforts to reduce illegal drug trafficking and related 
        activities that provide financial support for terrorist 
        organizations in Afghanistan and neighboring countries.

    (b) Report Required.--(1) The Secretary of Defense and the Secretary 
of State shall jointly prepare a report that describes--
            (A) the progress made towards substantially reducing poppy 
        cultivation and heroin production capabilities in Afghanistan; 
        and
            (B) the extent to which profits from illegal drug activity 
        in Afghanistan are used to financially support terrorist 
        organizations and groups seeking to undermine the Government of 
        Afghanistan.

    (2) The report required by this subsection shall be submitted to 
Congress not later than 120 days after the date of the enactment of this 
Act.

[[Page 118 STAT. 2044]]

       Subtitle D--Matters Relating to Museums and Commemorations

SEC. 1031. RECOGNITION OF THE LIBERTY MEMORIAL MUSEUM, KANSAS CITY, 
            MISSOURI, AS AMERICA'S NATIONAL WORLD WAR I MUSEUM.

    (a) Findings.--Congress makes the following findings:
            (1) The Liberty Memorial Museum in Kansas City, Missouri, 
        was built in honor of those individuals who served in World War 
        I in defense of liberty and the United States.
            (2) The Liberty Memorial Association, the nonprofit 
        organization that 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 United States 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 of the Kansas City 
        metropolitan area, including veterans of World War I. 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 in 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 collections of the Liberty Memorial Museum. 
        The new core exhibition is scheduled to open on Veterans Day in 
        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 first build and later restore 
        the Liberty Memorial Museum. The Liberty Memorial Museum 
        continues to receive the strong support of residents from the 
        States of Missouri and Kansas and across the United States.
            (8) Since its restoration and rededication in 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

[[Page 118 STAT. 2045]]

        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 schoolchildren in the United States through on-
        site visits, classroom curriculum development, distance-learning 
        activities, and other educational initiatives.
            (12) The Liberty Memorial Museum should remain the foremost 
        museum in the United States regarding the national experience in 
        the World War I years, which people can visit to learn about 
        World War I and where the history of this monumental struggle 
        will be preserved so that current and future generations 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) The work of the Liberty Memorial Museum to recognize 
        and preserve the history of the Nation's sacrifices in World War 
        I will take on added significance as the centennial observance 
        of the war approaches.
            (14) It is fitting and proper to refer to the Liberty 
        Memorial Museum as ``America's National World War I Museum''.

    (b) Congressional Recognition.--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 will 
        enhance the knowledge and understanding of 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;
            (3) commends the ongoing development and visibility of the 
        ``Lessons of Liberty'' educational outreach programs prepared by 
        the Liberty Memorial Museum for teachers and students throughout 
        the United States; and
            (4) encourages present generations of Americans to 
        understand the magnitude of World War I, how it shaped the 
        United States, other countries, and later world events, and how 
        the sacrifices made by Americans then helped preserve liberty, 
        democracy, and other founding principles of the United States 
        for generations to come.

SEC. 1032. <<NOTE: 10 USC 113 note.>> PROGRAM TO COMMEMORATE 60TH 
            ANNIVERSARY OF WORLD WAR II.

    (a) In General.--For fiscal year 2005, the Secretary of Defense may 
conduct a program--
            (1) to commemorate the 60th anniversary of World War II; and

[[Page 118 STAT. 2046]]

            (2) to coordinate, support, and facilitate other such 
        commemoration programs and activities of the Federal Government, 
        State and local governments, and other persons.

    (b) Program Activities.--The program referred to in subsection (a) 
may include activities and ceremonies--
            (1) to provide the people of the United States with a clear 
        understanding and appreciation of the lessons and history of 
        World War II;
            (2) to thank and honor veterans of World War II and their 
        families;
            (3) to pay tribute to the sacrifices and contributions made 
        on the home front by the people of the United States;
            (4) to foster an awareness in the people of the United 
        States that World War II was the central event of the 20th 
        century that defined the postwar world;
            (5) to highlight advances in technology, science, and 
        medicine related to military research conducted during World War 
        II;
            (6) to inform wartime and postwar generations of the 
        contributions of the Armed Forces of the United States to the 
        United States;
            (7) to recognize the contributions and sacrifices made by 
        World War II allies of the United States; and
            (8) to highlight the role of the Armed Forces of the United 
        States, then and now, in maintaining world peace through 
        strength.

    (c) Establishment of Account.--(1) There is established in the 
Treasury of the United States an account to be known as the ``Department 
of Defense 60th Anniversary of World War II Commemoration Account'' 
which shall be administered by the Secretary as a single account.
    (2) There shall be deposited in the account, from amounts 
appropriated to the Department of Defense for operation and maintenance 
of Defense Agencies, such amounts as the Secretary considers appropriate 
to conduct the program referred to in subsection (a).
    (3) The Secretary may use the funds in the account established in 
paragraph (1) only for the purpose of conducting the program referred to 
in subsection (a).
    (4) <<NOTE: Deadline. Reports.>> Not later than 60 days after the 
termination of the authority of the Secretary to conduct the program 
referred to in subsection (a), the Secretary shall transmit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report containing an 
accounting of all the funds deposited into and expended from the account 
or otherwise expended under this section, and of any amount remaining in 
the account. Unobligated funds which remain in the account after 
termination of the authority of the Secretary under this section shall 
be held in the account until transferred by law after the Committees 
receive the report.

    (d) Acceptance of Voluntary Services.--(1) Notwithstanding section 
1342 of title 31, United States Code, the Secretary may accept from any 
person voluntary services to be provided in furtherance of the program 
referred to in subsection (a).
    (2) A person providing voluntary services under this subsection 
shall be considered to be an employee for the purposes of chapter 81 of 
title 5, United States Code, relating to compensation for

[[Page 118 STAT. 2047]]

work-related injuries. Such a person who is not otherwise employed by 
the Federal Government shall not be considered to be a Federal employee 
for any other purposes by reason of the provision of such service.
    (3) The Secretary may reimburse a person providing voluntary 
services under this subsection for incidental expenses incurred by such 
person in providing such services. The Secretary shall determine which 
expenses are eligible for reimbursement under this paragraph.

SEC. 1033. 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 military museums that, during the most recently 
completed fiscal year--
            ``(1) were operated by the Secretary of Defense or the 
        Secretary of a military department;
            ``(2) were otherwise supported using funds appropriated to 
        the Department of Defense; or
            ``(3) were located on property under the jurisdiction of the 
        Department of Defense, although neither operated by the 
        Department of Defense nor supported using funds appropriated to 
        the Department of Defense.

    ``(b) Information on Individual Museums.--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, including the location, size, and type of facilities and 
        whether the facilities are included or eligible for inclusion on 
        the National Register of Historic Places.
            ``(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 and a description 
        of the process used to determine the annual allocation of 
        Department of Defense funds for the museum.
            ``(4) An itemized listing of 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.
            ``(5) The management structure of the museum, including 
        identification of the persons responsible for preparing the 
        budget for the museum and for making acquisition and management 
        decisions for the museum.
            ``(6) The number of civilian employees of the Department of 
        Defense and members of the armed forces who served full-

[[Page 118 STAT. 2048]]

        time or part-time at the museum and their role in the management 
        structure of the museum.

    ``(c) Information on Support Priorities.--Each report under this 
section shall also include a separate description of the procedures used 
by the Secretary of Defense, in the case of museums identified in the 
report that are operated or supported by the Secretary of Defense, and 
the Secretary of a military department, in the case of museums 
identified in the report that are operated or supported by that 
Secretary, to prioritize funding and personnel support to the museums. 
The Secretary of Defense shall include a description of any such 
procedures applicable to the entire Department 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:

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

                           Subtitle E--Reports

SEC. 1041. <<NOTE: 10 USC 229 note.>> QUARTERLY DETAILED ACCOUNTING FOR 
            OPERATIONS CONDUCTED AS PART OF THE GLOBAL WAR ON TERRORISM.

    (a) Quarterly Accounting.--Not later than 45 days after the end of 
each quarter of a year, the Secretary of Defense shall submit to the 
congressional defense committees, for each operation specified in 
subsection (b)--
            (1) a full accounting of all costs incurred for such 
        operation during such quarter and all amounts expended during 
        such quarter for such operation; and
            (2) a description of the purposes for which those costs were 
        incurred and those amounts were expended.

    (b) Operations Covered.--The operations referred to in subsection 
(a) are the following:
            (1) Operation Iraqi Freedom.
            (2) Operation Enduring Freedom.
            (3) Operation Noble Eagle.
            (4) Any other operation that the President designates as 
        being an operation of the Global War on Terrorism.

    (c) Requirement for Comprehensiveness.--For the purpose of providing 
a full and complete accounting of the costs and expenditures under 
subsection (a) for an operation specified in subsection (b), the 
Secretary shall account in the quarterly submission under subsection (a) 
for all costs and expenditures that are reasonably attributable to that 
operation, including personnel costs.

SEC. 1042. REPORT ON POST-MAJOR COMBAT OPERATIONS PHASE OF OPERATION 
            IRAQI FREEDOM.

    (a) Report Required.--(1) Not later than June 1, 2005, the Secretary 
of Defense shall submit to the congressional defense committees a report 
on the conduct of military operations during the post-major combat 
operations phase of Operation Iraqi Freedom.
    (2) The report shall be prepared in consultation with the Chairman 
of the Joint Chiefs of Staff, the commander of the United States Central 
Command, and such other officials as the Secretary considers 
appropriate.

[[Page 118 STAT. 2049]]

    (b) Content.--(1) The report shall include a discussion of the 
matters described in paragraph (2), with a particular emphasis on 
accomplishments and shortcomings and on near-term and long-term 
corrective actions to address such shortcomings.
    (2) The matters to be discussed in the report are as follows:
            (A) The military and political objectives of the 
        international coalition conducting the post-major combat 
        operations phase of Operation Iraqi Freedom, and the military 
        strategy selected to achieve such objectives, together with an 
        assessment of the execution of the military strategy.
            (B) The mobilization process for the reserve components of 
        the Armed Forces, including the timeliness of notification, 
        training and certification, and subsequent demobilization.
            (C) The use and performance of major items of United States 
        military equipment, weapon systems, and munitions (including 
        non-lethal weapons and munitions, items classified under special 
        access procedures, and items drawn from prepositioned stocks) 
        and any expected effects of the experience with the use and 
        performance of such items on the doctrinal and tactical 
        employment of such items and on plans for continuing the 
        acquisition of such items.
            (D) Any additional requirements for military equipment, 
        weapon systems, munitions, force structure, or other capability 
        identified during the post-major combat operations phase of 
        Operation Iraqi Freedom, including changes in type or quantity 
        for future operations.
            (E) The effectiveness of joint air operations, together with 
        an assessment of the effectiveness of--
                    (i) the employment of close air support; and
                    (ii) attack helicopter operations.
            (F) The use of special operations forces, including 
        operational and intelligence uses.
            (G) The scope of logistics support, including support to and 
        from other nations and from international organizations and 
        organizations and individuals from the private sector in Iraq.
            (H) The incidents of accidental fratricide, including a 
        discussion of the effectiveness of the tracking of friendly 
        forces and the use of the combat identification systems in 
        mitigating friendly fire incidents.
            (I) The adequacy of spectrum and bandwidth to transmit 
        information to operational forces and assets, including unmanned 
        aerial vehicles, ground vehicles, and individual soldiers.
            (J) The effectiveness of strategic, operational, and 
        tactical information operations, including psychological 
        operations and assets, organization, and doctrine related to 
        civil affairs, in achieving established objectives, together 
        with a description of technological and other restrictions on 
        the use of information operations capabilities.
            (K) The readiness of the reserve component forces used in 
        the post-major combat operations phase of Operation Iraqi 
        Freedom, including an assessment of the success of the reserve 
        component forces in accomplishing their missions.
            (L) The adequacy of intelligence support during the post-
        major combat operations phase of Operation Iraqi Freedom,

[[Page 118 STAT. 2050]]

        including the adequacy of such support in searches for weapons 
        of mass destruction.
            (M) The rapid insertion and integration, if any, of 
        developmental but mission-essential equipment, organizations, or 
        procedures during the post-major combat operations phase of 
        Operation Iraqi Freedom.
            (N) A description of the coordination, communication, and 
        unity of effort between the Armed Forces, the Coalition 
        Provisional Authority, other United States government agencies 
        and organizations, nongovernmental organizations, and political, 
        security, and nongovernmental organizations of Iraq, including 
        an assessment of the effectiveness of such efforts.
            (O) The adequacy of training for military units once 
        deployed to the area of operations of the United States Central 
        Command, including training for changes in unit mission and 
        continuation training for high-intensity conflict missions.
            (P) An estimate of the funding required to return or replace 
        equipment used through the period covered by the report in 
        Operation Iraqi Freedom, including equipment in prepositioned 
        stocks, to mission-ready condition.
            (Q) A description of military civil affairs and 
        reconstruction efforts, including efforts through the Commanders 
        Emergency Response Program, and an assessment of the 
        effectiveness of such efforts and programs.
            (R) The adequacy of the requirements determination and 
        acquisition processes, acquisition, and distribution of force 
        protection equipment, including personal gear, vehicles, 
        helicopters, and defense devices.
            (S) The most critical lessons learned that could lead to 
        long-term doctrinal, organizational, and technological changes, 
        and the probable effects that an implementation of those changes 
        would have on current visions, goals, and plans for 
        transformation of the Armed Forces or the Department of Defense.
            (T) The planning for and implementation of morale, welfare, 
        and recreation programs for deployed forces and support to 
        dependents, including rest and recuperation programs and 
        personal communication benefits such as telephone, mail, and 
        email services, including an assessment of the effectiveness of 
        such programs.
            (U) An analysis of force rotation plans, including 
        individual personnel and unit rotations, differing deployment 
        lengths, and in-theater equipment repair and leave behinds.
            (V) The organization of United States Central Command to 
        conduct post-conflict operations and lessons for other combatant 
        commands to conduct other such operations in the future.

    (c) Form of Report.--The report shall be submitted in unclassified 
form, but may include a classified annex.
    (d) Post-Major Combat Operations Phase of Operation Iraqi Freedom 
Defined.--In this section, the term ``post-major combat operations phase 
of Operation Iraqi Freedom'' means the period of Operation Iraqi Freedom 
beginning on May 2, 2003, and ending on December 31, 2004.

[[Page 118 STAT. 2051]]

SEC. 1043. REPORT ON TRAINING PROVIDED TO MEMBERS OF THE ARMED FORCES TO 
            PREPARE FOR POST-CONFLICT OPERATIONS.

    (a) Study on Training.--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 To Be 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 the curricula at military educational 
        facilities to ensure that the Armed Forces has a cadre of 
        members skilled in post-conflict duties, including a familiarity 
        with applicable foreign languages and foreign cultures.
            (3) The training time and resources available to members and 
        units of the Armed Forces to develop awareness about ethnic 
        backgrounds, religious beliefs, and political structures of the 
        people living in areas in which the Armed Forces operate and 
        areas in which post-conflict operations are likely to occur.
            (4) The adequacy of training transformation to emphasize 
        post-conflict operations, including interagency coordination in 
        support of commanders of combatant commands.

    (c) Report on Study.--Not later than May 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 result of the study conducted under this section.

SEC. 1044. REPORT ON ESTABLISHING NATIONAL CENTERS OF EXCELLENCE FOR 
            UNMANNED AERIAL AND GROUND VEHICLES.

    (a) Report Required.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the need for one or more 
national centers of excellence for unmanned aerial and ground vehicles.
    (b) Goal of Centers.--The goal of the centers covered by the report 
is to promote interservice cooperation and coordination in the following 
areas:
            (1) Development of joint doctrine for the organization, 
        training, and use of unmanned aerial and ground vehicles.
            (2) Joint research, development, test, and evaluation, and 
        joint procurement of unmanned aerial and ground vehicles.
            (3) Identification and coordination, in conjunction with the 
        private sector and academia, of the future development of 
        unmanned aerial and ground vehicles.
            (4) Monitoring of the development and utilization of 
        unmanned aerial and ground vehicles in other nations for both 
        military and non-military purposes.
            (5) The providing of joint training and professional 
        development opportunities in the use and operation of unmanned 
        aerial and ground vehicles to military personnel of all ranks 
        and levels of responsibility.

[[Page 118 STAT. 2052]]

    (c) Report Requirements.--The report shall include, at a minimum, 
the following:
            (1) A list of facilities at which the Department of Defense 
        currently conducts or plans to conduct research, development, 
        and testing activities on unmanned aerial and ground vehicles.
            (2) A list of facilities at which the Department of Defense 
        currently deploys or has committed to deploying unmanned aerial 
        or ground vehicles.
            (3) The extent to which existing facilities described in 
        paragraphs (1) and (2) have sufficient unused capacity and 
        expertise to research, develop, test, and deploy the current and 
        next generations of unmanned aerial and ground vehicles and to 
        provide for the development of doctrine on the use and training 
        of operators of such vehicles.
            (4) The extent to which efficiencies with respect to 
        research, development, testing, and deployment of existing or 
        future unmanned aerial and ground vehicles can be achieved 
        through consolidation at one or more national centers of 
        excellence for unmanned aerial and ground vehicles.
            (5) A list of potential locations for the national centers 
        of excellence under this section.

    (d) Considerations.--In determining the potential locations for the 
national centers of excellence under this section, the Secretary of 
Defense shall take into consideration existing military facilities that 
have--
            (1) a workforce of skilled personnel;
            (2) existing capacity of runways and other facilities to 
        accommodate the research, development, testing, and deployment 
        of current and future unmanned aerial vehicles; and
            (3) minimal restrictions on the research, development, 
        testing, and deployment of unmanned aerial vehicles resulting 
        from proximity to large population centers or airspace heavily 
        utilized by commercial flights.

SEC. 1045. 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. 1046. REPORT ON DEPARTMENT OF DEFENSE PROGRAMS FOR PREPOSITIONING 
            OF MATERIEL AND EQUIPMENT.

    (a) Secretary of Defense Assessment and Report.--(1) The Secretary 
of Defense shall conduct an assessment of the programs of the Armed 
Forces for the prepositioning of materiel and equipment. Such assessment 
shall focus on how those programs will support the goal of the Secretary 
to have the capability, from the onset of a contingency situation, to--

[[Page 118 STAT. 2053]]

            (A) deploy forces to a distant theater within 10 days;
            (B) defeat an enemy within 30 days; and
            (C) be 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 following:
            (1) A review of the prepositioning of materiel and equipment 
        used in Operation Iraqi Freedom and Operation Enduring Freedom, 
        including identification of challenges and potential solutions.
            (2) A description of changes to doctrine, strategy, and 
        transportation plans that could be necessary to support the goal 
        of the Secretary described in subsection (a).
            (3) A description of modifications to prepositioning 
        programs that could be required in order to incorporate 
        modularity concepts, future force structure changes, and sea-
        basing concepts.
            (4) A discussion of joint operations and training that 
        support force projection requirements, including--
                    (A) theater opening requirements at potential aerial 
                and sea ports of debarkation;
                    (B) joint force reception capabilities;
                    (C) joint theater distribution operations; and
                    (D) use of joint prepositioned stocks, materiel, and 
                systems.

SEC. 1047 REPORT ON AL QAEDA AND ASSOCIATED GROUPS IN LATIN AMERICA AND 
            THE CARIBBEAN.

    (a) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall, in consultation with the 
Secretary of State, submit to the Committees on Armed Services of the 
Senate and House of Representatives a report on the activities of al 
Qaeda and associated groups in Latin America and the Caribbean, 
including--
            (1) an assessment of the extent to which such groups have 
        established a presence in the area;
            (2) a description of the activities of such groups in the 
        area, including fundraising, money laundering, narcotrafficking, 
        and associations with criminal groups;
            (3) an assessment of the threat posed by such groups to the 
        peace and stability of the nations in the area and to United 
        States interests; and
            (4) a description of United States policies intended to deal 
        with such a threat.

    (b) Form of Report.--The report shall be submitted in unclassified 
form, but may include a classified annex.

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

SEC. 1051. ACCEPTANCE OF COMMUNICATIONS EQUIPMENT PROVIDED BY LOCAL 
            PUBLIC SAFETY AGENCIES.

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

[[Page 118 STAT. 2054]]

``Sec. 2613. Emergency communications equipment: acceptance from local 
                        public safety agencies for temporary use related 
                        to disasters

    ``(a) Authority to Accept Equipment.--(1) Subject to subsection (c), 
the Secretary concerned--
            ``(1) may accept communications equipment for use in 
        coordinating joint response and recovery operations with public 
        safety agencies in the event of a disaster; and
            ``(2) may accept services related to the operation and 
        maintenance of such equipment.

    ``(b) Regulations.--The authority under subsection (a) shall be 
exercised under regulations prescribed by the Secretary of Defense.
    ``(c) Limitations.--(1) Equipment may be accepted under subsection 
(a)(1) only to the extent that communications equipment under the 
control of the Secretary concerned at the potential disaster response 
site is inadequate to meet military requirements for communicating with 
public safety agencies during the period of response to the disaster.
    ``(2) Services may be accepted under subsection (a)(2) related to 
the operation and maintenance of communications equipment only to the 
extent that the necessary capabilities are not available to the military 
commander having custody of the equipment.
    ``(c) Liability.--A person providing services accepted under this 
section may not be considered, by reason of the provision of such 
services, to be an officer, employee, or agent of the United States for 
any purpose.''.
    (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. Emergency communications equipment: acceptance from local public 
           safety agencies for temporary use related to disasters.''.

SEC. 1052. DETERMINATION AND REPORT ON FULL-TIME AIRLIFT SUPPORT FOR 
            HOMELAND DEFENSE OPERATIONS.

    (a) Determination Required.--(1) The Secretary of Defense shall 
determine the feasibility and advisability of dedicating an airlift 
capability of the Armed Forces to the support of homeland defense 
operations, including operations in support of contingent requirements 
for transportation of any of the following in response to a disaster:
            (A) Weapons of Mass Destruction Civil Support Teams.
            (B) National Guard Chemical, Biological, Radiological, 
        Nuclear, High Explosive Enhanced Response Force Packages.
            (C) Air Force expeditionary medical teams.
            (D) Department of Energy emergency response teams.

    (2) In making the determination under paragraph (1), the Secretary 
shall take into consideration the results of the study required under 
subsection (b).
    (b) Requirement for Study and Plan.--(1) The Secretary of Defense 
shall conduct a study of the plans and capabilities of the Department of 
Defense for meeting contingent requirements for transporting teams and 
packages specified in subsection (a)(1) in response to disasters.
    (2) The Secretary shall prepare a plan for resolving any 
deficiencies in the plans and capabilities for meeting the 
transportation requirements described in paragraph (1).

[[Page 118 STAT. 2055]]

    (3) The Secretary of Defense shall require the commander of the 
United States Northern Command and the commander of the United States 
Transportation Command to carry out jointly the study required under 
paragraph (1) and to prepare jointly the plan required under paragraph 
(2).
    (c) Report.--Not later than April 1, 2005, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the results of the study under subsection 
(b). The report shall include the following matters:
            (1) The Secretary's determination under subsection (a).
            (2) An assessment and discussion of the adequacy of existing 
        plans and capabilities of the Department of Defense for meeting 
        the transportation requirements described in subsection (b)(1).
            (3) The plan required under subsection (b)(2).

    (d) Definition.--In this section, the term ``Weapons of Mass 
Destruction Civil Support Team'' has the meaning given that term in 
section 305b(e) of title 37, United States Code.

SEC. 1053. SURVIVABILITY OF CRITICAL SYSTEMS EXPOSED TO CHEMICAL OR 
            BIOLOGICAL CONTAMINATION.

    (a) Requirement for Implementation Plan.--
Not <<NOTE: Deadline.>> later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a plan, for implementation by 
the Department of Defense, that sets forth a systematic approach for 
ensuring the survivability of defense critical systems upon 
contamination of any such system by chemical or biological agents.

    (b) Content.--At a minimum, the plan under subsection (a) shall 
include the following:
            (1) Policies for ensuring that the survivability of defense 
        critical systems in the event of contamination by chemical or 
        biological agents is adequately addressed throughout the 
        Department of Defense.
            (2) A systematic process for identifying those systems which 
        are defense critical systems.
            (3) Specific testing procedures to be used during the design 
        and development of new defense critical systems.
            (4) A centralized database that--
                    (A) contains comprehensive information on the 
                effects of chemical and biological agents and 
                decontaminants on materials used in defense critical 
                systems; and
                    (B) is easily accessible to personnel who have 
                duties to ensure the survivability of defense critical 
                systems upon contamination of such systems by chemical 
                and biological agents.

    (c) Defense Critical System Defined.--In this section, the term 
``defense critical system'' means a Department of Defense system that, 
as determined by the Secretary of Defense, is vital to an essential 
defense mission.

[[Page 118 STAT. 2056]]

                 Subtitle G--Personnel Security Matters

SEC. 1061. 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 No. 12968, or any 
successor Executive order, or an individual who is being investigated 
for Federal employment under authority of Executive Order No. 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 in a position 
requiring access to national security information. A Federal department 
or agency that receives information about an individual under the 
preceding sentence may use such information only for purposes of the 
authorized investigation and only in accordance with applicable law.''.

SEC. 1062. 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) by 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 H--Transportation-Related Matters

SEC. 1071. 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

[[Page 118 STAT. 2057]]

                    (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:
            ``(1) The term `military aircraft' means an aircraft owned, 
        operated, or chartered by the Department of Defense.
            ``(2) The term `United States air carrier' has the meaning 
        given the term `air carrier' in section 40102 of title 49.''.

SEC. 1072. 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--
            (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'';
            (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 in 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:

[[Page 118 STAT. 2058]]

``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. 1073. EVALUATION OF PROCUREMENT PRACTICES RELATING TO 
            TRANSPORTATION OF SECURITY-SENSITIVE CARGO.

    (a) Evaluation Requirement.--The Secretary of Defense shall evaluate 
the procurement practices of the Department of Defense in the award of 
service contracts for domestic freight transportation for security-
sensitive cargo (such as arms, ammunitions, explosives, and classified 
material) to determine whether such practices are in the best interests 
of the Department of Defense.
    (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).

[[Page 118 STAT. 2059]]

                        Subtitle I--Other Matters

SEC. 1081. LIABILITY PROTECTION FOR DEPARTMENT OF DEFENSE VOLUNTEERS 
            WORKING IN MARITIME ENVIRONMENT.

    Section 1588(d)(1)(B) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``and the Act of 
March 9, 1920, commonly known as the `Suits in Admiralty Act' (41 Stat. 
525; 46 U.S.C. App. 741 et seq.) and the Act of March 3, 1925, commonly 
known as the `Public Vessels Act' (43 Stat. 1112; 46 U.S.C. App. 781 et 
seq.) (relating to claims for damages or loss on navigable waters)''.

SEC. 1082. SENSE OF CONGRESS CONCERNING MEDIA COVERAGE OF THE RETURN TO 
            THE UNITED STATES OF THE REMAINS OF DECEASED MEMBERS OF THE 
            ARMED FORCES FROM OVERSEAS.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense, since 1991, has relied on a 
        policy of no media coverage of the transfers of the remains of 
        deceased members of the Armed Forces--
                    (A) at Ramstein Air Force Base, Germany;
                    (B) at Dover Air Force Base, Delaware, and the Port 
                Mortuary Facility at Dover Air Force Base; and
                    (C) at interim stops en route to the point of final 
                destination in the transfer of the remains.
            (2) The principal focus and purpose of the policy is to 
        protect the wishes and the privacy of families of deceased 
        members of the Armed Forces during their time of great loss and 
        grief and to give families and friends of the dead the privilege 
        to decide whether to allow media coverage at the member's duty 
        or home station, at the interment site, or at or in connection 
        with funeral and memorial services.
            (3) In a 1991 legal challenge to the Department of Defense 
        policy, as applied during Operation Desert Storm, the policy was 
        upheld by the United States District Court for the District of 
        Columbia, and on appeal, by the United States Court of Appeals 
        for the District of Columbia in the case of JB Pictures, Inc. v. 
        Department of Defense and Donald B. Rice, Secretary of the Air 
        Force on the basis that denying the media the right to view the 
        return of remains at Dover Air Force Base does not violate the 
        first amendment guarantees of freedom of speech and of the 
        press.
            (4) The United States Court of Appeals for the District of 
        Columbia in that case cited the following two key Government 
        interests that are served by the Department of Defense policy:
                    (A) Reducing the hardship on the families and 
                friends of the war dead, who may feel obligated to 
                travel great distances to attend arrival ceremonies at 
                Dover Air Force Base if such ceremonies were held.
                    (B) Protecting the privacy of families and friends 
                of the dead, who may not want media coverage of the 
                unloading of caskets at Dover Air Force Base.
            (5) The Court also noted, in that case, that the bereaved 
        may be upset at the public display of the caskets of their loved 
        ones and that the policy gives the family the right to

[[Page 118 STAT. 2060]]

        grant or deny access to the media at memorial or funeral 
        services at the home base and that the policy is consistent in 
        its concern for families.

    (b) Sense of Congress.--It is the sense of Congress that the 
Department of Defense policy regarding no media coverage of the transfer 
of the remains of deceased members of the Armed Forces--
            (1) appropriately protects the privacy of the families and 
        friends of the deceased; and
            (2) is consistent with United States constitutional 
        guarantees of freedom of speech and freedom of the press.

SEC. 1083. 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.

SEC. 1084. 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.--Title 10, United States Code, is amended as follows:
            (1) 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).
            (2) 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''.
            (3) 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).

[[Page 118 STAT. 2061]]

            (4) Section 2676(d) is amended by striking ``appropriate 
        committees of Congress'' at the end of the first sentence and 
        inserting ``congressional defense committees''.

    (c) Amendments Relating to Change of Name of GAO.--Title 10, United 
States Code, is amended as follows:
            (1) Section 1084 is amended by striking ``General Accounting 
        Office'' and inserting ``Comptroller General''.
            (2) Section 1102(d)(2) is amended by striking ``General 
        Accounting Office'' and inserting ``Comptroller General''.
            (3) Section 2014(g) is amended by striking ``General 
        Accounting Office'' and inserting ``Government Accountability 
        Office''.

    (d) 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 striking ``Officers Act of 2002'' and 
                inserting ``Officer Corps Act of 2002 (33 U.S.C. 
                3045)''.
            (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,''.

[[Page 118 STAT. 2062]]

            (11) Sections 1463(a)(1), 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 by striking ``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 2474(f)(2) is amended by striking ``section 
        2466(e)'' and inserting ``section 2466(d)''.
            (21) Section 2540(b)(2) is amended by inserting ``, as in 
        effect on that date'' before the period at the end.
            (22) 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)''.
            (23) 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)''.
            (24) Section 2701 is amended--

[[Page 118 STAT. 2063]]

                    (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''.
            (25) 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.
            (26) 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''.
            (27) Section 2704 is amended by inserting ``(42 U.S.C. 
        9604(i))'' in subsections (c), (e), and (f) after ``CERCLA''.
            (28) 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.
            (29) Section 4689 is amended by striking ``Building'' after 
        ``Capitol''.
            (30) 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.
            (31) 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 ``subsections (a), (b), and 
                (c)''.
            (32) Section 8084 is amended by striking ``capabilty'' and 
        inserting ``capability''.
            (33) 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.
            (34) The table in section 12012(a) is amended by inserting a 
        colon after ``Air National Guard''.

    (e) Title 37, United States Code.--Title 37, United States Code, is 
amended as follows:

[[Page 118 STAT. 2064]]

            (1) Section 301a(b)(4) is amended by striking ``section 
        301(a)(11)'' and inserting ``section 301(a)(13)''.
            (2) Section 323(h) is amended by striking ``Secretary of 
        Transportation'' and inserting ``Secretary of Homeland 
        Security''.

    (f) 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 <<NOTE: 10 USC 1725, 
        1742.>> inserting ``title 10, United States Code,''.
            (2) Section 931(a)(1) (117 Stat. 1580) <<NOTE: 10 USC 
        2611.>> 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)''.

    (g) 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''.
    (h) Public Law 107-107.--Effective as of December 28, 2001, and as 
if included therein as enacted, the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107) is amended as follows:
            (1) Section 824(a)(1)(C) (115 Stat. 1183) <<NOTE: 10 USC 
        1724.>> is amended by striking ``(3)(A)'' and inserting 
        ``(3)(B)''.
            (2) Section 1048(e)(4) (115 Stat. 1227) <<NOTE: 10 USC 
        1732.>> is amended by striking ``Subsection'' and inserting 
        ``Section''.
            (3) Section 1111(c) (115 Stat. 1238) <<NOTE: 5 USC 5949 
        note.>> is amended by striking ``This provision'' and inserting 
        ``Section 5949 of title 5, United States Code, as added by 
        subsection (a),''.

    (i) Public Law 101-510.--Section 2902(e)(2)(B) <<NOTE: 10 USC 2687 
note.>> 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 <<NOTE: 50 USC 432, 432a, 432b.>> 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--

[[Page 118 STAT. 2065]]

                    (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''.

SEC. 1085. <<NOTE: 10 USC 113 note.>> PRESERVATION OF SEARCH AND RESCUE 
            CAPABILITIES OF THE FEDERAL GOVERNMENT.

    The Secretary of Defense may not reduce or eliminate search and 
rescue capabilities at any military installation in the United States 
unless the Secretary first certifies to the Committees on Armed Services 
of the Senate and the House of Representatives that equivalent search 
and rescue capabilities will be provided, without interruption and 
consistent with the policies and objectives set forth in the United 
States National Search and Rescue Plan entered into force on January 1, 
1999, by--
            (1) the Department of Interior, the Department of Commerce, 
        the Department of Homeland Security, the Department of 
        Transportation, the Federal Communications Commission, or the 
        National Aeronautics and Space Administration; or
            (2) the Department of Defense, either directly or through a 
        Department of Defense contract with an emergency medical service 
        provider or other private entity to provide such capabilities.

SEC. 1086. ACQUISITION OF AERIAL FIREFIGHTING EQUIPMENT FOR NATIONAL 
            INTERAGENCY FIRE CENTER.

    (a) Findings.--Congress makes the following findings:
            (1) The National Interagency Fire Center does not possess an 
        adequate number of aircraft for use in aerial firefighting, and 
        personnel at the Center rely on military aircraft to provide 
        such firefighting services.
            (2) It is in the national security interest of the United 
        States for the National Interagency Fire Center to acquire 
        aircraft for use in aerial firefighting so that the military 
        aircraft made available for aerial firefighting will instead be 
        available for use by the Armed Forces.

    (b) Authority To Purchase Aerial Firefighting Equipment.--(1) The 
Secretary of Agriculture is authorized to purchase 10 aircraft, as 
described in paragraph (2), for the National Interagency Fire Center for 
use in aerial firefighting.
    (2) The aircraft referred to in paragraph (1) shall be aircraft that 
are--
            (A) specifically designed and built for aerial firefighting;
            (B) certified by the Chief of the Forest Service as suited 
        for conditions commonly experienced in aerial firefighting 
        operations carried out in the United States, including Alaska; 
        and

[[Page 118 STAT. 2066]]

            (C) manufactured in a manner that is consistent with the 
        recommendations for aircraft used in aerial firefighting 
        contained in--
                    (i) the Blue Ribbon Panel Report to the Chief of the 
                Forest Service and the Director of the Bureau of Land 
                Management dated December 2002; and
                    (ii) the Safety Recommendation of the Chairman of 
                the National Transportation Safety Board related to 
                aircraft used in aerial firefighting dated April 23, 
                2004.

    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Agriculture for fiscal year 2005 such 
funds as may be necessary to purchase the 10 aircraft described in 
subsection (b).

SEC. 1087. REVISION TO REQUIREMENTS FOR RECOGNITION OF INSTITUTIONS OF 
            HIGHER EDUCATION AS HISPANIC-SERVING INSTITUTIONS FOR 
            PURPOSES OF CERTAIN GRANTS AND CONTRACTS.

    Section 502(a)(5)(C) of the Higher Education Act of 1965 (20 U.S.C. 
1101a(a)(5)(C)) is amended by inserting before the period the following: 
``, which assurances--
                          ``(i) may employ statistical extrapolation 
                      using appropriate data from the Bureau of the 
                      Census or other appropriate Federal or State 
                      sources; and
                          ``(ii) the Secretary shall consider as meeting 
                      the requirements of this subparagraph, unless the 
                      Secretary determines, based on a preponderance of 
                      the evidence, that the assurances do not meet the 
                      requirements''.

SEC. 1088. MILITARY EXTRATERRITORIAL JURISDICTION OVER CONTRACTORS 
            SUPPORTING DEFENSE MISSIONS OVERSEAS.

    Section 3267(1)(A) of title 18, United States Code, is amended to 
read as follows:
                    ``(A) employed as--
                          ``(i) a civilian employee of--
                                    ``(I) the Department of Defense 
                                (including a nonappropriated fund 
                                instrumentality of the Department); or
                                    ``(II) any other Federal agency, or 
                                any provisional authority, to the extent 
                                such employment relates to supporting 
                                the mission of the Department of Defense 
                                overseas;
                          ``(ii) a contractor (including a subcontractor 
                      at any tier) of--
                                    ``(I) the Department of Defense 
                                (including a nonappropriated fund 
                                instrumentality of the Department); or
                                    ``(II) any other Federal agency, or 
                                any provisional authority, to the extent 
                                such employment relates to supporting 
                                the mission of the Department of Defense 
                                overseas; or
                          ``(iii) an employee of a contractor (or 
                      subcontractor at any tier) of--
                                    ``(I) the Department of Defense 
                                (including a nonappropriated fund 
                                instrumentality of the Department); or

[[Page 118 STAT. 2067]]

                                    ``(II) any other Federal agency, or 
                                any provisional authority, to the extent 
                                such employment relates to supporting 
                                the mission of the Department of Defense 
                                overseas;''.

SEC. 1089. DEFINITION OF UNITED STATES FOR PURPOSES OF FEDERAL CRIME OF 
            TORTURE.

    Section 2340(3) of title 18, United States Code, is amended to read 
as follows:
            ``(3) `United States' means the several States of the United 
        States, the District of Columbia, and the commonwealths, 
        territories, and possessions of the United States.''.

SEC. 1090. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) In General.--Section 801(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8287(c)) is amended by striking ``2003'' and 
inserting ``2006''.
    (b) Payment of Costs.--Section 802 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287a) is amended by inserting ``, 
water, or wastewater treatment'' after ``payment of energy''.
    (c) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as 
follows:
            ``(2) The term `energy savings' means a reduction in the 
        cost of energy, water, or wastewater treatment, from a base cost 
        established through a methodology set forth in the contract, 
        used in an existing federally owned building or buildings or 
        other federally owned facilities as a result of--
                    ``(A) the lease or purchase of operating equipment, 
                improvements, altered operation and maintenance, or 
                technical services;
                    ``(B) the increased efficient use of existing energy 
                sources by cogeneration or heat recovery, excluding any 
                cogeneration process for other than a federally owned 
                building or buildings or other federally owned 
                facilities; or
                    ``(C) the increased efficient use of existing water 
                sources in either interior or exterior applications.''.

    (d) Energy Savings Contract.--Section 804(3) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as 
follows:
            ``(3) The terms `energy savings contract' and `energy 
        savings performance contract' mean a contract that provides for 
        the performance of services for the design, acquisition, 
        installation, testing, and, where appropriate, operation, 
        maintenance, and repair, of an identified energy or water 
        conservation measure or series of measures at 1 or more 
        locations. Such contracts shall, with respect to an agency 
        facility that is a public building (as such term is defined in 
        section 3301 of title 40, United States Code), be in compliance 
        with the prospectus requirements and procedures of section 3307 
        of title 40, United States Code.''.

    (e) Energy or Water Conservation Measure.--Section 804(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended 
to read as follows:
            ``(4) The term `energy or water conservation measure' 
        means--

[[Page 118 STAT. 2068]]

                    ``(A) an energy conservation measure, as defined in 
                section 551; or
                    ``(B) a water conservation measure that improves the 
                efficiency of water use, is life-cycle cost-effective, 
                and involves water conservation, water recycling or 
                reuse, more efficient treatment of wastewater or 
                stormwater, improvements in operation or maintenance 
                efficiencies, retrofit activities, or other related 
                activities, not at a Federal hydroelectric facility.''.

    (f) Review.--Not later than <<NOTE: Deadline. 42 USC 8287 
note.>> 180 days after the date of the enactment of this Act, the 
Secretary of Energy shall complete a review of the Energy Savings 
Performance Contract program to identify statutory, regulatory, and 
administrative obstacles that prevent Federal agencies from fully 
utilizing the program. In addition, this review shall identify all areas 
for increasing program flexibility and effectiveness, including audit 
and measurement verification requirements, accounting for energy use in 
determining savings, contracting requirements, including the 
identification of additional qualified contractors, and energy 
efficiency services covered. The Secretary shall report these findings 
to Congress and shall implement identified administrative and regulatory 
changes to increase program flexibility and effectiveness to the extent 
that such changes are consistent with statutory authority.

    (g) Extension of Authority.--Any <<NOTE: 42 USC 8287 note.>> energy 
savings performance contract entered into under section 801 of the 
National Energy Conservation Policy Act (42 U.S.C. 8287) after October 
1, 2003, and before the date of enactment of this Act, shall be deemed 
to have been entered into pursuant to such section 801 as amended by 
subsection (a) of this section.

SEC. 1091. <<NOTE: 10 USC 801 note.>> SENSE OF CONGRESS AND POLICY 
            CONCERNING PERSONS DETAINED BY THE UNITED STATES.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the abuses inflicted upon detainees at the Abu Ghraib 
        prison in Baghdad, Iraq, are inconsistent with the 
        professionalism, dedication, standards, and training required of 
        individuals who serve in the United States Armed Forces;
            (2) the vast majority of members of the Armed Forces have 
        upheld the highest possible standards of professionalism and 
        morality in the face of illegal tactics and terrorist attacks 
        and attempts on their lives;
            (3) the abuse of persons in United States custody in Iraq is 
        appropriately condemned and deplored by the American people;
            (4) the Armed Forces are moving swiftly and decisively to 
        identify, try, and, if found guilty, punish persons who 
        perpetrated such abuse;
            (5) the Department of Defense and appropriate military 
        authorities must continue to undertake corrective action, as 
        appropriate, to address chain-of-command deficiencies and the 
        systemic deficiencies identified in the incidents in question;
            (6) the Constitution, laws, and treaties of the United 
        States and the applicable guidance and regulations of the United 
        States Government prohibit the torture or cruel, inhuman, or 
        degrading treatment of foreign prisoners held in custody by the 
        United States;

[[Page 118 STAT. 2069]]

            (7) the alleged crimes of a handful of individuals should 
        not detract from the commendable sacrifices of over 300,000 
        members of the Armed Forces who have served, or who are serving, 
        in Operation Iraqi Freedom; and
            (8) no detainee shall be subject to torture or cruel, 
        inhuman, or degrading treatment or punishment that is prohibited 
        by the Constitution, laws, or treaties of United States.

    (b) Policy.--It is the policy of the United States to--
            (1) ensure that no detainee shall be subject to torture or 
        cruel, inhuman, or degrading treatment or punishment that is 
        prohibited by the Constitution, laws, or treaties of the United 
        States;
            (2) investigate and prosecute, as appropriate, all alleged 
        instances of unlawful treatment of detainees in a manner 
        consistent with the international obligations, laws, or policies 
        of the United States;
            (3) ensure that all personnel of the United States 
        Government understand their obligations in both wartime and 
        peacetime to comply with the legal prohibitions against torture, 
        cruel, inhuman, or degrading treatment of detainees in the 
        custody of the United States;
            (4) ensure that, in a case in which there is doubt as to 
        whether a detainee is entitled to prisoner of war status under 
        the Geneva Conventions, such detainee receives the protections 
        accorded to prisoners of war until the detainee's status is 
        determined by a competent tribunal; and
            (5) expeditiously process and, if appropriate, prosecute 
        detainees in the custody of the United States, including those 
        in the custody of the United States Armed Forces at Guantanamo 
        Bay, Cuba.

    (c) Detainees.--For purposes of this section, the term ``detainee'' 
means a person in the custody or under the physical control of the 
United States as a result of armed conflict.

SEC. 1092. <<NOTE: 10 USC 801 note.>> ACTIONS TO PREVENT THE ABUSE OF 
            DETAINEES.

    (a) Policies Required.--The Secretary of Defense shall ensure that 
policies are prescribed not later than 150 days after the date of the 
enactment of this Act regarding procedures for Department of Defense 
personnel and contractor personnel of the Department of Defense intended 
to ensure that members of the Armed Forces, and all persons acting on 
behalf of the Armed Forces or within facilities of the Armed Forces, 
treat persons detained by the United States Government in a humane 
manner consistent with the international obligations and laws of the 
United States and the policies set forth in section 1091(b).
    (b) Matters to Be Included.--In order to achieve the objective 
stated in subsection (a), the policies under that subsection shall 
specify, at a minimum, procedures for the following:
            (1) Ensuring that each commander of a Department of Defense 
        detention facility or interrogation facility--
                    (A) provides all assigned personnel with training, 
                and documented acknowledgment of receiving training, 
                regarding the law of war, including the Geneva 
                Conventions; and
                    (B) establishes standard operating procedures for 
                the treatment of detainees.

[[Page 118 STAT. 2070]]

            (2) Ensuring that each Department of Defense contract in 
        which contract personnel in the course of their duties interact 
        with individuals detained by the Department of Defense on behalf 
        of the United States Government include a requirement that such 
        contract personnel have received training, and documented 
        acknowledgment of receiving training, regarding the 
        international obligations and laws of the United States 
        applicable to the detention of personnel.
            (3) Providing all detainees with information, in their own 
        language, of the applicable protections afforded under the 
        Geneva Conventions.
            (4) Conducting periodic unannounced and announced 
        inspections of detention facilities in order to provide 
        continued oversight of interrogation and detention operations.
            (5) Ensuring that, to the maximum extent practicable, 
        detainees and detention facility personnel of a different gender 
        are not alone together.

    (c) Secretary of Defense Certification.--The Secretary of Defense 
shall certify that all Federal employees and civilian contractors 
engaged in the handling or interrogation of individuals detained by the 
Department of Defense on behalf of the United States Government have 
fulfilled an annual training requirement on the law of war, the Geneva 
Conventions, and the obligations of the United States under 
international law.

SEC. 1093. REPORTING REQUIREMENTS.

    (a) Transmission of Regulations, Etc.--Not later than 30 days after 
the date on which regulations, policies, and orders are first prescribed 
under section 1092(a), the Secretary of Defense shall transmit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives copies of such regulations, 
policies, or orders, together with a report on steps taken to the date 
of the report to implement section 1092.
    (b) One-Year Implementation Report.--Not later than one year after 
the date on which regulations, policies, and orders are first prescribed 
under section 1092(a), the Secretary shall submit to such committees a 
report on further steps taken to implement section 1092 to the date of 
such report.
    (c) Annual Report.--Nine months after the date of the enactment of 
this Act and annually thereafter, 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 for the preceding 12-
months containing the following:
            (1) Notice of any investigation into any violation of 
        international obligations or laws of the United States regarding 
        the treatment of individuals detained by the United States Armed 
        Forces or by a person providing services to the Department of 
        Defense on a contractual basis, if the notice will not 
        compromise any ongoing criminal or administrative investigation 
        or prosecution.
            (2) General information on the foreign national detainees in 
        the custody of the Department of Defense during the 12-month 
        period covered by the report, including the following:
                    (A) The best estimate of the Secretary of Defense of 
                the total number of detainees in the custody of the 
                Department as of the date of the report.

[[Page 118 STAT. 2071]]

                    (B) The best estimate of the Secretary of Defense of 
                the total number of detainees released from the custody 
                of the Department during the period covered by the 
                report.
                    (C) An aggregate summary of the number of persons 
                detained as enemy prisoners of war, civilian internees, 
                and unlawful combatants, including information regarding 
                the average length of detention for persons in each 
                category.
                    (D) An aggregate summary of the nationality of 
                persons detained.
                    (E) Aggregate information as to the transfer of 
                detainees to the jurisdiction of other countries, and 
                the countries to which transferred.

    (d) Classification of Reports.--Reports submitted under this section 
shall be submitted, to the extent practicable, in unclassified form, but 
may include a classified annex as necessary to protect the national 
security of the United States.
    (e) Termination.--The requirements of this section shall cease to be 
in effect on December 31, 2007.

SEC. 1094. 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 investigates 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.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

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

[[Page 118 STAT. 2072]]

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 <<NOTE: 5 USC 8905a note.>> 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.

    (a) Eligibility for Service Not Related to Contingency Operations.--
Section 1596a(a)(2) of title 10, United States Code, is amended by 
striking ``during a contingency operation supported by the armed 
forces''.
    (b) Effective Date.--The <<NOTE: 10 USC 1596a note.>> amendment by 
this section shall take effect on the first day of the first month that 
begins after the date of the enactment of this Act.

SEC. 1103. PAY AND PERFORMANCE APPRAISAL PARITY FOR CIVILIAN 
            INTELLIGENCE PERSONNEL.

    (a) Pay Rates.--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

[[Page 118 STAT. 2073]]

        rates of pay provided for comparable positions in the Department 
        of Defense and subject to the same limitations on maximum rates 
        of pay established for employees of the Department of Defense by 
        law or regulation'';
            (2) by striking subsection (b); and
            (3) by redesignating subsection (c) as subsection (b).

    (b) Performance Appraisal System.--Section 1606 of such title is 
amended by adding at the end the following new subsection:
    ``(d) Performance Appraisals.--(1) The Defense Intelligence Senior 
Executive Service shall be subject to a performance appraisal system 
which, as designed and applied, is certified by the Secretary of Defense 
under section 5307 of title 5 as making meaningful distinctions based on 
relative performance.
    ``(2) The performance appraisal system applicable to the Defense 
Intelligence Senior Executive Service under paragraph (1) may be the 
same performance appraisal system that is established and implemented 
within the Department of Defense for members of the Senior Executive 
Service.''.

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

    (a) Authority.--Chapter 81 of title 10, United States Code, is 
amended by inserting after section 1587 the following new section:

``Sec. 1587a. Employees of nonappropriated fund instrumentalities: 
                        senior executive pay levels

    ``(a) Authority.--To achieve the objective stated in subsection (b), 
the Secretary of Defense may regulate the amount of total compensation 
that is provided for senior executives of nonappropriated fund 
instrumentalities who, for the fixing of pay by administrative action, 
are under the jurisdiction of the Secretary of Defense or the Secretary 
of a military department.
    ``(b) Pay Parity.--The objective of an action taken with respect to 
the compensation of senior executives under subsection (a) is to provide 
for parity between the total compensation provided for such senior 
executives and total compensation that is provided for Department of 
Defense employees in Senior Executive Service positions or other senior 
executive positions.
    ``(c) Standards of Comparability.--Subject to subsection (d), the 
Secretary of Defense shall prescribe the standards of comparison that 
are to apply in the making of the determinations necessary to achieve 
the objective stated in subsection (b).
    ``(d) Establishment of Pay Rates.--The Secretary of Defense shall 
apply subsections (a) and (b) of section 5382 of title 5 in the 
regulation of compensation under this section.
    ``(e) Relationship to Pay Limitation.--The Secretary of Defense may 
exercise the authority provided in subsection (a) without regard to 
section 5373 of title 5.
    ``(f) Definitions.--In this section:
            ``(1) The term `compensation' includes rate of basic pay.
            ``(2) The term `Senior Executive Service position' has the 
        meaning given such term in section 3132 of title 5.''.

[[Page 118 STAT. 2074]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1587 the following new item:

``1587a. Employees of nonappropriated fund instrumentalities: senior 
           executive pay levels.''.

SEC. 1105. <<NOTE: 10 USC 2192 note.>> SCIENCE, MATHEMATICS, AND 
            RESEARCH FOR TRANSFORMATION (SMART) DEFENSE SCHOLARSHIP 
            PILOT PROGRAM.

    (a) Requirement for Program.--(1) The Secretary of Defense shall 
carry out a pilot program to provide financial assistance for education 
in science, mathematics, engineering, and technology skills and 
disciplines that, as determined by the Secretary, are critical to the 
national security functions of the Department of Defense and are needed 
in the Department of Defense workforce.
    (2) The pilot program under this section shall be carried out for 
three years beginning on the date of the enactment of this Act.
    (b) Scholarships.--(1) Under the pilot program, the Secretary of 
Defense may award a scholarship in accordance with this section to a 
person who--
            (A) is a citizen of the United States;
            (B) is pursuing an undergraduate or advanced degree in a 
        critical skill or discipline described in subsection (a) at an 
        institution of higher education; and
            (C) enters into a service agreement with the Secretary of 
        Defense as described in subsection (c).

    (2) The amount of the financial assistance provided under a 
scholarship awarded to a person under this subsection shall be the 
amount determined by the Secretary of Defense as being necessary to pay 
all educational expenses incurred by that person, including tuition, 
fees, cost of books, laboratory expenses, and expenses of room and 
board. The expenses paid, however, shall be limited to those educational 
expenses normally incurred by students at the institution of higher 
education involved.
    (c) Service Agreement for Recipients of Assistance.--(1) To receive 
financial assistance under this section--
            (A) in the case of an employee of the Department of Defense, 
        the employee shall enter into a written agreement to continue in 
        the employment of the department for the period of obligated 
        service determined under paragraph (2); and
            (B) in the case of a person not an employee of the 
        Department of Defense, the person shall enter into a written 
        agreement to accept and continue employment in the Department of 
        Defense for the period of obligated service determined under 
        paragraph (2).

    (2) For the purposes of this subsection, the period of obligated 
service for a recipient of a scholarship under this section shall be the 
period determined by the Secretary of Defense as being appropriate to 
obtain adequate service in exchange for the financial assistance 
provided under the scholarship. In no event may the period of service 
required of a recipient be less than the total period of pursuit of a 
degree that is covered by the scholarship. The period of obligated 
service is in addition to any other period for which the recipient is 
obligated to serve in the civil service of the United States.

[[Page 118 STAT. 2075]]

    (3) An agreement entered into under this subsection by a person 
pursuing an academic degree shall include any terms and conditions that 
the Secretary of Defense determines necessary to protect the interests 
of the United States or otherwise appropriate for carrying out this 
section.
    (d) Refund for Period of Unserved Obligated Service.--(1) A person 
who voluntarily terminates service before the end of the period of 
obligated service required under an agreement entered into under 
subsection (c) shall refund to the United States an amount determined by 
the Secretary of Defense as being appropriate to obtain adequate service 
in exchange for financial assistance.
    (2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    (3) The Secretary of Defense may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary determines that 
recovery would be against equity and good conscience or would be 
contrary to the best interests of the United States.
    (4) A discharge in bankruptcy under title 11, United States Code, 
that is entered less than five years after the termination of an 
agreement under this section does not discharge the person signing such 
agreement from a debt arising under such agreement or under this 
subsection.
    (e) Relationship to Other Programs.--The pilot program under this 
section is in addition to the authorities provided in chapter 111 of 
title 10, United States Code. The Secretary of Defense shall coordinate 
the provision of financial assistance under the authority of this 
section with the provision of financial assistance under the authorities 
provided in such chapter in order to maximize the benefits derived by 
the Department of Defense from the exercise of all such authorities.
    (f) Recommendation on Pilot Program.--Not <<NOTE: Deadline.>> later 
than February 1, 2007, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives, the Committee on Governmental Affairs of the Senate, 
and the Committee on Government Reform of the House of Representatives a 
plan for expanding and improving the national defense science and 
engineering workforce educational assistance pilot program carried out 
under this section as appropriate to improve recruitment and retention 
to meet the requirements of the Department of Defense for its science 
and engineering workforce on a short-term basis and on a long-term 
basis.

    (g) Critical Hiring Need.--Section 3304(a)(3) of title 5, United 
States Code, is amended by striking subparagraph (B) and inserting the 
following:
                    ``(B)(i) the Office of Personnel Management has 
                determined that there exists a severe shortage of 
                candidates or there is a critical hiring need; or
                    ``(ii) the candidate is a participant in the 
                Science, Mathematics, and Research for Transformation 
                (SMART) Defense Scholarship Pilot Program under section 
                1105 of the Ronald W. Reagan National Defense 
                Authorization Act for Fiscal Year 2005.''.

    (h) Institution of Higher Education Defined.--In this section, the 
term ``institution of higher education'' has the meaning given such term 
in section 101 of the Higher Education Act of 1965 (21 U.S.C. 1001).

[[Page 118 STAT. 2076]]

SEC. 1106. REPORT ON HOW TO RECRUIT AND RETAIN INDIVIDUALS WITH FOREIGN 
            LANGUAGE SKILLS.

    Not later than March 31, 2005, the Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives and the Select Committee on Intelligence of the Senate 
and the Permanent Select Committee on Intelligence of the House of 
Representatives, a plan for expanding and improving the national 
security foreign language workforce of the Department of Defense as 
appropriate to improve recruitment and retention to meet the 
requirements of the Department for its foreign language workforce on a 
short-term basis and on a long-term basis.

SEC. 1107. PLAN ON IMPLEMENTATION AND UTILIZATION OF FLEXIBLE PERSONNEL 
            MANAGEMENT AUTHORITIES IN DEPARTMENT OF DEFENSE 
            LABORATORIES.

    (a) Plan Required.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Under Secretary of Defense for 
Personnel and Readiness shall jointly develop a plan for the effective 
utilization of the personnel management authorities referred to in 
subsection (b) in order to increase the mission responsiveness, 
efficiency, and effectiveness of Department of Defense laboratories.
    (b) Covered Authorities.--The personnel management authorities 
referred to in this subsection are the personnel management authorities 
granted to the Secretary of Defense by the provisions of law as follows:
            (1) Section 342(b) of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2721), as 
        amended by section 1114 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into law by 
        Public Law 106-398 (114 Stat. 1654A-315)).
            (2) Section 1101 of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (Public Law 105-261; 5 
        U.S.C. 3104 note).
            (3) Section 9902(c) of title 5, United States Code.
            (4) Such other provisions of law as the Under Secretaries 
        jointly consider appropriate for purposes of this section.

    (c) Plan Elements.--The plan under subsection (a) shall--
            (1) include such elements as the Under Secretaries jointly 
        consider appropriate to provide for the effective utilization of 
        the personnel management authorities referred to in subsection 
        (b) as described in subsection (a), including the 
        recommendations of the Under Secretaries for such additional 
        authorities, including authorities for demonstration programs or 
        projects, as are necessary to achieve the effective utilization 
        of such personnel management authorities; and
            (2) include procedures, including a schedule for review and 
        decisions, on proposals to modify current demonstration programs 
        or projects, or to initiate new demonstration programs or 
        projects, on flexible personnel management at Department 
        laboratories

    (d) Submittal to Congress.--The <<NOTE: Deadline.>> Under 
Secretaries shall jointly submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives the plan under subsection (a) not later than December 1, 
2005.

[[Page 118 STAT. 2077]]

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

                Subtitle B--Counterproliferation Matters

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

                        Subtitle C--Other Matters

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

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

SEC. 1201. 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, not to exceed $300,000,000 may be used 
to provide funds--
            (1) for the Commanders' Emergency Response Program, 
        established by the Administrator of the Coalition Provisional 
        Authority for the purpose of enabling United States 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
            (2) for a similar program to assist the people of 
        Afghanistan.

    (b) Quarterly Reports.--Not later than 15 days after the end of each 
fiscal-year quarter (beginning with the first quarter of fiscal year 
2005), the Secretary of Defense shall submit to the congressional 
defense committees a report regarding the source of funds and the 
allocation and use of funds during that quarter that were made available 
pursuant to the authority provided in this section or under any other 
provision of law for the purposes stated in subsection (a).

[[Page 118 STAT. 2078]]

    (c) Waiver Authority.--For purposes of the exercise of the authority 
provided by this section or any other provision of law making funding 
available for the Commanders' Emergency Response Program referred to in 
subsection (a) (including a program referred to in paragraph (2) of that 
subsection), the Secretary may waive any provision of law not contained 
in this section that would (but for the waiver) prohibit, restrict, 
limit, or otherwise constrain the exercise of that authority.
    (d) Review of Laws.--Not <<NOTE: Deadline.>> later than 120 days 
after the date of the enactment of this Act, 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 identifying all 
provisions of law that (if not waived) would prohibit, restrict, limit, 
or otherwise constrain the exercise of the authority provided in this 
section or any other provision of law using funds available for the 
purposes stated in subsection (a).

SEC. 1202. ASSISTANCE TO IRAQ AND AFGHANISTAN MILITARY AND SECURITY 
            FORCES.

    (a) Authority.--The Secretary of Defense may provide assistance 
under this section to Iraq and Afghanistan military and security forces. 
Such assistance shall be provided, subject to the provisions of this 
section, solely to enhance the ability of such forces to combat 
terrorism and support United States or coalition military operations in 
Iraq and Afghanistan, respectively.
    (b) Type of Assistance.--Assistance provided under subsection (a) 
may include equipment, supplies, services, and training.
    (c) Limitations.--Assistance under this section or under any other 
provision of law for the purpose described in subsection (a) may be 
provided only from funds available to the Department of Defense for 
fiscal year 2005 for operation and maintenance under title XV. The total 
amount of such assistance may not exceed $500,000,000.
    (d) Congressional Notification.--Before any provision of assistance 
under this section or any other provision of law for the purpose 
described in subsection (a), the Secretary of Defense shall submit to 
the congressional defense committees a notification of the assistance 
proposed to be provided. Any such notification shall be submitted not 
less than 15 days before the provision of such assistance.
    (e) Military and Security Forces Defined.--For purposes of this 
section, the term ``military and security forces'' means national 
armies, national guard forces, border security forces, civil defense 
forces, infrastructure protection forces, and police.

SEC. 1203. REDESIGNATION AND MODIFICATION OF AUTHORITIES RELATING TO 
            INSPECTOR GENERAL OF THE COALITION PROVISIONAL AUTHORITY.

    (a) Redesignation.--(1) Subsections (b) and (c)(1) of section 3001 
of the Emergency Supplemental Appropriations Act for Defense and for the 
Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 117 
Stat. 1234; 5 U.S.C. App. 3 section 8G note) are each amended by 
striking ``Office of the Inspector General of the Coalition Provisional 
Authority'' and inserting ``Office of the Special Inspector General for 
Iraq Reconstruction''.
    (2) Subsection (c)(1) of such section is further amended by striking 
``Inspector General of the Coalition Provisional Authority''

[[Page 118 STAT. 2079]]

and inserting ``Special Inspector General for Iraq Reconstruction (in 
this section referred to as the `Inspector General')''.
    (3)(A) The heading of such section is amended to read as follows:

``SEC. 3001. SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION.''.

    (B) The heading of title III of such Act is amended to read as 
follows:

    ``TITLE III--SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION''.

    (b) Continuation in Office.--The <<NOTE: 5 USC app. 8G 
note.>> individual serving as the Inspector General of the Coalition 
Provisional Authority as of the date of the enactment of this Act may 
continue to serve in that position after that date without reappointment 
under paragraph (1) of section 3001(c) of the Emergency Supplemental 
Appropriations Act for Defense and for the Reconstruction of Iraq and 
Afghanistan, 2004, but remaining subject to removal as specified in 
paragraph (4) of that section.

    (c) Purposes.--Subsection (a) <<NOTE: 5 USC app. 8G note.>> of such 
section is amended--
            (1) in paragraph (1), by striking ``of the Coalition 
        Provisional Authority (CPA)'' and inserting ``funded with 
        amounts appropriated or otherwise made available to the Iraq 
        Relief and Reconstruction Fund'';
            (2) in paragraph (2)(B), by striking ``fraud'' and inserting 
        ``waste, fraud,''; and
            (3) in paragraph (3), by striking ``the head of the 
        Coalition Provisional Authority'' and inserting ``the Secretary 
        of State and the Secretary of Defense''.

    (d) Responsibilities of Assistant Inspector General for Auditing.--
Subsection (d)(1) of such section is amended by striking ``of the 
Coalition Provisional Authority'' and inserting ``supported by the Iraq 
Relief and Reconstruction Fund''.
    (e) Supervision.--Such section is further amended--
            (1) in subsection (e)--
                    (A) in paragraph (1), by striking ``the head of the 
                Coalition Provisional Authority'' and inserting ``the 
                Secretary of State and the Secretary of Defense''; and
                    (B) in paragraph (2)--
                          (i) by striking ``Neither the head of the 
                      Coalition Provisional Authority,'' and all that 
                      follows through ``nor any other officer'' and 
                      inserting ``No officer''; and
                          (ii) by striking ``investigation,'' and all 
                      that follows through ``course of any'' and 
                      inserting ``investigation related to the Iraq 
                      Relief and Reconstruction Fund or from issuing any 
                      subpoena during the course of any such'';
            (2) in subsection (h)--
                    (A) in paragraphs (4)(B) and (5), by striking ``head 
                of the Coalition Provisional Authority'' and inserting 
                ``Secretary of State or Secretary of Defense, as 
                appropriate,''; and
                    (B) in paragraph (5), by striking ``at the central 
                and field locations of the Coalition Provisional 
                Authority'' and

[[Page 118 STAT. 2080]]

                inserting ``within the Department of Defense or at 
                appropriate locations of the Department of State in 
                Iraq'';
            (3) in subsection (j)--
                    (A) in paragraph (1), by striking ``the head of the 
                Coalition Provisional Authority'' and inserting ``the 
                Secretary of State and the Secretary of Defense''; and
                    (B) in paragraph (2)--
                          (i) in subparagraph (A)--
                                    (I) by striking ``the head of the 
                                Coalition Provisional Authority'' the 
                                first place it appears and inserting 
                                ``the Secretary of State or the 
                                Secretary of Defense''; and
                                    (II) by striking ``the head of the 
                                Coalition Provisional Authority'' the 
                                second place it appears and inserting 
                                ``the Secretary of State or the 
                                Secretary of Defense, as the case may 
                                be,''; and
                          (ii) in subparagraph (B), by striking ``the 
                      head of the Coalition Provisional Authority'' and 
                      inserting ``the Secretary of State or the 
                      Secretary of Defense, as the case may be,''; and
            (4) in subsection (k), by striking ``the head of the 
        Coalition Provisional Authority shall'' both places it appears 
        and inserting ``the Secretary of State and the Secretary of 
        Defense shall jointly''.

    (f) Duties.--Subsection (f)(1) of such section is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``appropriated funds by the Coalition Provisional Authority in 
        Iraq'' and inserting ``amounts appropriated or otherwise made 
        available to the Iraq Relief and Reconstruction Fund''; and
            (2) in subparagraph (D), by striking ``the Coalition 
        Provisional Authority,'' and all that follows through 
        ``Government, and'' and inserting ``departments, agencies, and 
        entities of the United States and''.

    (g) Interagency Coordination.--Subsection (f) of such section is 
further amended by striking paragraphs (4) and (5) and inserting the 
following new paragraph (4):
    ``(4) In carrying out the duties, responsibilities, and authorities 
of the Inspector General under this section, the Inspector General shall 
coordinate with, and receive the cooperation of, each of the following:
            ``(A) The Inspector General of the Department of State.
            ``(B) The Inspector General of the Department of Defense.
            ``(C) The Inspector General of the United States Agency for 
        International Development.''.

    (h) Powers and Authorities.--Subsection (g)(1) of such section is 
amended by inserting before the period the following: ``, including the 
authorities under subsection (e) of such section''.
    (i) Reports.--Subsection (i) of such section is amended--
            (1) in paragraph (1)--
                    (A) by striking the first sentence and inserting the 
                following: ``Not later than 30 days after the end of 
                each fiscal-year quarter, the Inspector General shall 
                submit to the appropriate committees of Congress a 
                report summarizing, for the period of that quarter and, 
                to the extent possible, the period from the end of such 
                quarter to the time of the submission of the report, the 
                activities during such period of the Inspector General 
                and the activities

[[Page 118 STAT. 2081]]

                under programs and operations funded with amounts 
                appropriated or otherwise made available to the Iraq 
                Relief and Reconstruction Fund.'';
                    (B) in subparagraph (B), by striking ``the Coalition 
                Provisional Authority'' and inserting ``the Department 
                of Defense, the Department of State, and the United 
                States Agency for International Development, as 
                applicable,'';
                    (C) in subparagraph (E)--
                          (i) by striking ``the Coalition Provisional 
                      Authority and of any other''; and
                          (ii) by striking ``appropriated funds'' and 
                      inserting ``amounts appropriated or otherwise made 
                      available to the Iraq Relief and Reconstruction 
                      Fund''; and
                    (D) in subparagraph (F)(iii), by striking ``the 
                Coalition Provisional Authority'' and inserting ``the 
                contracting department or agency'';
            (2) in paragraph (2), by striking ``by the Coalition 
        Provisional Authority'' and inserting ``by any department or 
        agency of the United States Government that involves the use of 
        amounts appropriated or otherwise made available to the Iraq 
        Relief and Reconstruction Fund'';
            (3) in paragraph (3)--
                    (A) by striking ``Not later than June 30, 2004, and 
                semiannually thereafter, the'' and inserting ``The'';
                    (B) by striking ``a report'' and inserting 
                ``semiannual reports''; and
                    (C) and by adding at the end the following new 
                sentence: ``The first such report for a year, covering 
                the first six months of the year, shall be submitted not 
                later than July 31 of that year, and the second such 
                report, covering the second six months of the year, 
                shall be submitted not later than January 31 of the 
                following year.''; and
            (4) in paragraph (4), by striking ``of the Coalition 
        Provisional Authority'' and inserting ``of the Department of 
        State and of the Department of Defense''.

    (j) Termination.--Subsection (o) of such section is amended to read 
as follows:
    ``(o) Termination.--The Office of the Inspector General shall 
terminate on the date that is 10 months after the date, as determined by 
the Secretary of State and the Secretary of Defense, on which 80 percent 
of the amounts appropriated or otherwise made available to the Iraq 
Relief and Reconstruction Fund by chapter 2 of title II of this Act have 
been obligated.''.

SEC. 1204. PRESIDENTIAL REPORT ON STRATEGY FOR STABILIZATION OF IRAQ.

    (a) Stabilization Strategy.--Not later than 120 days after the date 
of the enactment of this Act, the President shall submit to Congress an 
unclassified report (with classified annex, if necessary) on the 
strategy of the United States and coalition forces for stabilizing Iraq. 
The report shall contain a detailed explanation of the strategy, 
together with the following:
            (1) A description of the efforts of the President to work 
        with the United Nations to provide support for, and assistance 
        to, the transitional government in Iraq and, in particular, the 
        efforts of the President to negotiate and secure adoption by the 
        United Nations Security Council of Resolution 1546.

[[Page 118 STAT. 2082]]

            (2) A description of the efforts of the President to 
        continue to work with North Atlantic Treaty Organization (NATO) 
        member states and non-NATO member states to provide support for 
        and augment coalition forces, including--
                    (A) the current military forces of coalition 
                countries deployed to Iraq;
                    (B) the current police forces of coalition countries 
                deployed to Iraq;
                    (C) the current financial resources of coalition 
                countries pledged and provided for the stabilization and 
                reconstruction of Iraq; and
                    (D) a list of countries that have pledged to deploy 
                military or police forces, including the schedule and 
                level of such deployments.
            (3) The strategic plan referred to in subsection (b) 
        relating to Iraqi security forces.
            (4) A description of the efforts of the United States and 
        coalition forces to assist in the reconstruction of essential 
        infrastructure of Iraq, including the oil industry, electricity 
        generation, roads, schools, and hospitals.
            (5) A description of the efforts of the United States, 
        coalition partners, and relevant international agencies to 
        assist in the development of political institutions and prepare 
        for democratic elections in Iraq.
            (6) A description of the obstacles, including financial, 
        technical, logistic, personnel, political, and other obstacles, 
        faced by NATO in generating and deploying military forces out of 
        theater to locations such as Iraq.

    (b) Iraqi Security Forces.--The President shall include in the 
report under subsection (a) a strategic plan setting forth the manner in 
which the coaltion will achieve the goal of establishing viable and 
professional Iraqi security forces able to provide for the long-term 
security of the Iraqi people. That strategic plan 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) Quarterly Reports.--Not later than 30 days after the end of each 
quarter of calendar year 2005, the Secretary of Defense shall submit to 
the Congress a report on the actions taken under

[[Page 118 STAT. 2083]]

the strategic plan set forth pursuant to subsection (b) since the date 
of the enactment of this Act. Each such report shall be prepared in 
conjunction with the Secretary of State.

SEC. 1205. GUIDANCE ON CONTRACTORS SUPPORTING DEPLOYED FORCES IN IRAQ.

    (a) Guidance.--Not <<NOTE: Deadline.>> later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall issue 
guidance on how the Department of Defense shall manage contractor 
personnel who support deployed forces and shall direct the Secretaries 
of the military departments to develop procedures to ensure 
implementation of that 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 contractor personnel 
        who 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) Issues to be Addressed.--The guidance issued under subsection 
(a) shall address at least the following matters:
            (1) Warning contractor security personnel of potentially 
        hazardous situations.
            (2) Coordinating the movement of contractor security 
        personnel, especially through areas of increased risk or planned 
        or ongoing military operations.
            (3) Rapidly identifying contractor security personnel by 
        members of the Armed Forces.
            (4) Sharing relevant threat information with contractor 
        security personnel and receiving information gathered by 
        contractor security personnel for use by United States and 
        coalition forces.
            (5) Providing appropriate assistance to contractor personnel 
        who become engaged in hostile situations.
            (6) Providing medical assistance for, and evacuation of, 
        contractor personnel who become casualties as a result of enemy 
        actions.
            (7) Investigating background and qualifications of 
        contractor security personnel and organizations.
            (8) Establishing rules of engagement for armed contractor 
        security personnel, and ensuring proper training and compliance 
        with the rules of engagement.
            (9) Establishing categories of security, intelligence, law 
        enforcement, and criminal justice functions that are--
                    (A) inherently governmental functions under Subpart 
                7.5 of the Federal Acquisition Regulation; or
                    (B) although not inherently governmental functions, 
                should not ordinarily be performed by contractors in 
                areas of operations.
            (10) Establishing procedures for making and documenting 
        determinations about which security, intelligence, law 
        enforcement, and criminal justice functions will be performed by 
        military personnel and which will be performed by private 
        companies.

[[Page 118 STAT. 2084]]

    (c) 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 Senate and House of 
Representatives a report on the guidance issued under subsection (a).

SEC. 1206. REPORT ON CONTRACTORS SUPPORTING DEPLOYED FORCES AND 
            RECONSTRUCTION EFFORTS IN IRAQ.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on contractors 
supporting deployed forces and reconstruction efforts in Iraq.
    (b) Matters To Be Included.--The report required by subsection (a) 
shall include, at a minimum, the following matters with respect to 
contractors, and employees of contractors, described in subsection (a):
            (1) A description of the overall chain of command and 
        oversight mechanisms that are in place to ensure adequate 
        command and supervision of such contractor employees in critical 
        security roles.
            (2) A description of sanctions that are available to be 
        imposed on such a contractor employee who--
                    (A) fails to comply with a requirement of law or 
                regulation that applies to such employee; or
                    (B) engages in other misconduct.
            (3) A description of disciplinary and criminal actions 
        brought against contractor employees during the period beginning 
        on May 1, 2003, and ending on the date of the enactment of this 
        Act.
            (4) An explanation of the legal status of contractor 
        employees engaged in the performance of security functions in 
        Iraq after the transfer of sovereign power to Iraq on June 28, 
        2004.
            (5) A specification of casualty and fatality figures for 
        contractor employees supporting deployed forces and 
        reconstruction efforts in Iraq, shown, to the extent 
        practicable, in the following categories:
                    (A) Total casualties and total fatalities.
                    (B) Casualties and fatalities among--
                          (i) nationals of the United States;
                          (ii) nationals of Iraq; and
                          (iii) nationals of states other than the 
                      United States and Iraq.
            (6) A description, to the maximum extent practicable, of 
        incidents in which contractor employees supporting deployed 
        forces and reconstruction efforts in Iraq have been engaged in 
        hostile fire or other incidents of note during the period 
        beginning on May 1, 2003, and ending on the date of the 
        enactment of this Act.

    (c) Plans.--The Secretary shall include with the report under 
subsection (a) the following plans:
            (1) A plan for establishing and implementing a process for 
        collecting data on individual contractors, the value of the 
        contracts, the number of casualties incurred, and the number

[[Page 118 STAT. 2085]]

        of personnel in Iraq performing the following services for the 
        Department of Defense and other Federal agencies:
                    (A) Personal security details.
                    (B) Nonmilitary site security.
                    (C) Nonmilitary convoy security.
                    (D) Interrogation services at interrogation centers 
                operated by the Department of Defense.
            (2) A plan for ensuring that military commanders in the 
        theater of operations have accurate information on the number, 
        types, and sources of weapons and other critical equipment (such 
        as body armor, armored vehicles, secure communications and 
        friend-foe identification) that contractor personnel performing 
        services specified in paragraph (1) are authorized to possess.

    (d) Coordination.--In the preparation of the report under this 
section (including the plans under subsection (c)), the Secretary of 
Defense shall coordinate, as appropriate, with the head of any Federal 
agency that is involved in the procurement of services from contractors 
supporting deployed forces and reconstruction efforts in Iraq. The head 
of any such agency shall provide to the Secretary of Defense such 
information as the Secretary may require about such contractors to 
complete the report.

SEC. 1207. UNITED NATIONS OIL-FOR-FOOD PROGRAM.

    (a) Access to Documents.--It is the sense of Congress that the 
Secretary of State should seek to conclude a memorandum of understanding 
with the Interim Government of Iraq to ensure that the United States 
will have access to all documents in the possession of that Government 
related to the United Nations Oil-for-Food Program.
    (b) Information From the United Nations.--(1) The Secretary of State 
shall use the voice and vote of the United States in the United Nations 
to urge the Secretary General of the United Nations to provide to the 
United States copies of all audits and core documents related to the 
United Nations Oil-for-Food Program, including all audits, examinations, 
studies, reviews, or similar documents prepared by the United Nations 
Office of Internal Oversight Services and all responses to such 
documents.
    (2) It is the sense of Congress that, pursuant to section 941(b)(6) 
of the United Nations Reform Act of 1999 (title IX of division A of H.R. 
3427 of the 106th Congress, as enacted into law by section 1000(a)(7) of 
Public Law 106-113; 113 Stat. 1501A-483), the Comptroller General should 
have full and complete access to financial information relating to the 
United Nations, including information related to the financial 
transactions, organization, and activities of the United Nations Oil-
for-Food Program.
    (3) The Secretary of State shall facilitate access by the 
Comptroller General to the financial information described in paragraph 
(2).
    (c) Cooperation in Investigations.--The head of any Executive agency 
(including the Secretary of State, the Secretary of Defense, the 
Secretary of the Treasury, and the Director of the Central Intelligence 
Agency) shall, upon a request in connection with an investigation of the 
United Nations Oil-for-Food Program made by a committee of jurisdiction 
of the Senate or House of Representatives, promptly provide to the 
chairman of that committee--

[[Page 118 STAT. 2086]]

            (1) access to any information or document described in 
        subsection (a) or (b) that is under the control of such agency 
        and responsive to the request; and
            (2) cooperation in gaining access to information and 
        documents described in subsections (a) and (b) that are not 
        under the control of such agency, as appropriate.

    (d) Review of Oil-for-Food Program by Comptroller General.--(1) The 
Comptroller General shall conduct a review of the United Nations Oil-
for-Food Program, including the role of the United States in that 
program. The review--
            (A) in accordance with generally accepted government 
        auditing standards, should not interfere with any ongoing 
        criminal investigation or inquiry related to that program; and
            (B) may take into account the results of any investigation 
        or inquiry related to that program.

    (2) The head of each Executive agency shall fully cooperate with the 
review of the Comptroller General under paragraph (1).
    (e) Executive Agency Defined.--In this section, the term ``Executive 
agency'' has the meaning given that term in section 105 of title 5, 
United States Code.

SEC. 1208 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) Procedures.--The Secretary of Defense shall establish procedures 
for the exercise of the authority under subsection (a). The Secretary 
shall notify the congressional defense committees of those procedures 
before any exercise of that authority.
    (c) Notification.--Upon using the authority provided in subsection 
(a) to make funds available for support of an approved military 
operation, the Secretary of Defense shall notify the congressional 
defense committees expeditiously, and in any event in not less than 48 
hours, of the use of such authority with respect to that operation. Such 
a notification need be provided only once with respect to any such 
operation. Any such notification shall be in writing.
    (d) Limitation on Delegation.--The authority of the Secretary of 
Defense to make funds available under subsection (a) for support of a 
military operation may not be delegated.
    (e) 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)).
    (f) 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 that subsection 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.
    (g) Fiscal Year 2005 Limitation.--Support may be provided under 
subsection (a) during fiscal year 2005 only from funds made

[[Page 118 STAT. 2087]]

available for operations and maintenance pursuant to title XV of this 
Act.
    (h) Period of Authority.--The authority under subsection (a) is in 
effect during each of fiscal years 2005 through 2007.

                Subtitle B--Counterproliferation Matters

SEC. 1211. 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. 1212. <<NOTE: 22 USC 2797 note.>> POLICY AND SENSE OF CONGRESS ON 
            NONPROLIFERATION OF BALLISTIC MISSILES.

    (a) Findings.--Congress makes the following findings:
            (1) Certain countries are seeking to acquire ballistic 
        missiles and related technologies that could be used to attack 
        the United States or place at risk United States interests, 
        deployed members of the Armed Forces, and allies of the United 
        States and other friendly foreign countries.
            (2) Certain countries continue to actively transfer or sell 
        ballistic missile technologies in contravention of standards of 
        behavior established by the United States and allies of the 
        United States and other friendly foreign countries.
            (3) The spread of ballistic missiles and related 
        technologies worldwide has been slowed by a combination of 
        national and international export controls, forward-looking 
        diplomacy, and multilateral interdiction activities to restrict 
        the development and transfer of such missiles and technologies.

    (b) Policy.--It is the policy of the United States to develop, 
support, and strengthen international accords and other cooperative 
efforts to curtail the proliferation of ballistic missiles and related 
technologies which could threaten the territory of the United States, 
allies of the United States and other friendly foreign countries,

[[Page 118 STAT. 2088]]

and deployed members of the Armed Forces of the United States with 
weapons of mass destruction.
    (c) Sense of Congress.--It is the sense of Congress that--
            (1) the United States should vigorously pursue foreign 
        policy initiatives aimed at eliminating, reducing, or retarding 
        the proliferation of ballistic missiles and related 
        technologies; and
            (2) the United States and the international community should 
        continue to support and strengthen established international 
        accords and other cooperative efforts, including United Nations 
        Security Council Resolution 1540 (April 28, 2004) and the 
        Missile Technology Control Regime, that are designed to 
        eliminate, reduce, or retard the proliferation of ballistic 
        missiles and related technologies.

SEC. 1213. SENSE OF CONGRESS ON THE GLOBAL PARTNERSHIP AGAINST THE 
            SPREAD OF WEAPONS OF MASS DESTRUCTION.

    (a) Commendation of President.--Congress commends the President for 
the steps taken at the G-8 summit at Sea Island, Georgia, on June 8-10, 
2004--
            (1) to demonstrate continued support for the Global 
        Partnership against the Spread of Nuclear Weapons and Materials 
        of Mass Destruction; and
            (2) to expand the Partnership (A) by welcoming new members, 
        and (B) by using the Partnership to coordinate nonproliferation 
        projects in Libya, Iraq, and other countries.

    (b) Future Actions.--It is the sense of Congress that the President 
should seek to--
            (1) expand the membership of donor nations to the Global 
        Partnership against the Spread of Nuclear Weapons and Materials 
        of Mass Destruction;
            (2) ensure that the Russian Federation remains the primary 
        focus of the Partnership, but also seek to fund, through the 
        Partnership, efforts in other countries that need assistance to 
        secure or dismantle their own potentially vulnerable weapons or 
        materials;
            (3) develop for the Partnership clear program goals;
            (4) develop for the Partnership transparent project 
        prioritization and planning;
            (5) develop for the Partnership project implementation 
        milestones under periodic review;
            (6) develop under the Partnership agreements between 
        partners for project implementation; and
            (7) give high priority and senior-level attention to 
        resolving disagreements on site access and worker liability 
        under the Partnership.

SEC. 1214. REPORT ON COLLABORATIVE MEASURES TO REDUCE THE RISKS OF A 
            LAUNCH OF RUSSIAN NUCLEAR WEAPONS.

    Not later than November 1, 2005, the Secretary of Defense shall 
submit to Congress a report on collaborative measures between the United 
States and the Russian Federation to reduce the risks of a launch of a 
nuclear-armed ballistic missile as a result of accident, misinformation, 
miscalculation, or unauthorized use. The report shall provide--
            (1) a description and assessment of the collaborative 
        measures that are currently in effect;

[[Page 118 STAT. 2089]]

            (2) a description and assessment of other collaborative 
        measures that could be pursued in the future;
            (3) an assessment of the potential contributions of such 
        collaborative measures to the national security of the United 
        States;
            (4) an assessment of the effect of such collaborative 
        measures on relations between the United States and the Russian 
        Federation;
            (5) a description of the obstacles and opportunities 
        associated with pursuing such collaborative measures; and
            (6) an assessment of the future of the Joint Data Exchange 
        Center.

                        Subtitle C--Other Matters

SEC. 1221. AUTHORITY FOR HUMANITARIAN ASSISTANCE FOR THE DETECTION AND 
            CLEARANCE OF LANDMINES EXTENDED TO INCLUDE OTHER EXPLOSIVE 
            REMNANTS OF WAR.

    (a) Extension of Authority.--Subsection (e)(5) of section 401 of 
title 10, United States Code, is amended by inserting ``and other 
explosive remnants of war'' after ``landmines'' both places it appears.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (a)(4)(A), by inserting ``or other 
        explosive remnants of war'' after ``landmines''; and
            (2) in subsection (c)(2)(B), by striking ``landmine clearing 
        equipment or supplies'' and inserting ``equipment or supplies 
        for clearing landmines or other explosive remnants of war''.

SEC. 1222. EXPANSION OF ENTITIES OF THE PEOPLE'S REPUBLIC OF CHINA 
            SUBJECT TO CERTAIN PRESIDENTIAL AUTHORITIES WHEN OPERATING 
            IN THE UNITED STATES.

    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--
            (1) by inserting ``, or affiliated with,'' after ``or 
        controlled by''; and
            (2) by inserting after ``the People's Liberation Army'' the 
        following: ``or a ministry of the government of the People's 
        Republic of China or that is owned or controlled by an entity 
        affiliated with the defense industrial base of the People's 
        Republic of China''.

SEC. 1223. ASSIGNMENT OF NATO 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 NATO 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 may be assigned

[[Page 118 STAT. 2090]]

to United States commands to work on such systems and procedures.
    ``(b) Reciprocity Not Required.--The authority under subsection (a) 
is not an exchange program. Reciprocal assignments of members of the 
Navy to the naval service of a foreign country is not a condition for 
the exercise of such authority.
    ``(c) 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 Secretary 
        of the Navy or an officer of the Navy authorized to do so.
            ``(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 
        Navy in the performance of assigned duties.

    ``(d) Relationship to Other Authority.--The provisions 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 Navy submarine safety program. The Secretary of the 
Navy may prescribe regulations for the application of this section in 
the exercise of such authority.
    ``(e) Termination of Authority.--The Secretary of the Navy may not 
accept the assignment of a member of the naval service of a foreign 
country under this section after September 30, 2008.''.
    (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 NATO naval 
           personnel.''.

SEC. 1224. AVAILABILITY OF WARSAW INITIATIVE FUNDS FOR NEW NATO MEMBERS.

    (a) Availability of Funds.--Of the amount authorized to be 
appropriated by section 301(5) for operation and maintenance, defense-
wide activities, and available for the Defense Security Cooperation 
Agency for the Warsaw Initiative Funds (WIF), $4,000,000 may be 
available only in fiscal year 2005 for the participation of the North 
Atlantic Treaty Organization (NATO) members set forth in subsection (b) 
in the exercises and programs of the Partnership for Peace program of 
the North Atlantic Treaty Organization.
    (b) NATO Members.--The North Atlantic Treaty Organization members 
set forth in this subsection are as follows:
            (1) Bulgaria.
            (2) Estonia.
            (3) Latvia.

[[Page 118 STAT. 2091]]

            (4) Lithuania.
            (5) Romania.
            (6) Slovakia.
            (7) Slovenia.

SEC. 1225. <<NOTE: 22 USC 2751 note.>> BILATERAL EXCHANGES AND TRADE IN 
            DEFENSE ARTICLES AND DEFENSE SERVICES BETWEEN THE UNITED 
            STATES AND THE UNITED KINGDOM AND AUSTRALIA.

    (a) Policy.--It is the policy of Congress that bilateral exchanges 
and trade in defense articles and defense services between the United 
States and the United Kingdom and Australia are in the national security 
interest of the United States and that such exchanges and trade should 
be subjected to accelerated review and processing consistent with 
national security and the requirements of the Arms Export Control Act 
(22 U.S.C. 2751 et seq.).
    (b) Requirement.--The Secretary of State shall ensure that any 
license application submitted for the export of defense articles or 
defense services to Australia or the United Kingdom is expeditiously 
processed by the Department of State, in consultation with the 
Department of Defense, without referral to any other Federal department 
or agency, except where the item is classified or exceptional 
circumstances apply.
    (c) Regulations.--The <<NOTE: President.>> President shall ensure 
that regulations are prescribed to implement this section.

SEC. 1226. STUDY ON MISSILE DEFENSE COOPERATION.

    (a) Requirement for Study.--The Secretary of Defense, in 
consultation with the Secretary of State, shall carry out a study to 
determine the advisability of authorizing or requiring--
            (1) the Secretary of State to establish procedures for 
        considering technical assistance agreements and related 
        amendments and munitions license applications for the export of 
        defense items related to missile defense not later than 30 days 
        after receiving such agreements, amendments, and munitions 
        license applications, except in cases in which the Secretary of 
        State determines that additional time is required to complete a 
        review of a technical assistance agreement or related amendment 
        or a munitions license application for foreign policy or 
        national security reasons, including concerns regarding the 
        proliferation of ballistic missile technology; and
            (2) the Secretary of Defense to establish procedures to 
        increase the efficiency and transparency of the practices used 
        by the Department of Defense to review technical assistance 
        agreements and related amendments and munitions license 
        applications related to international cooperation on missile 
        defense that are referred to the Department.

    (b) Feasibility of Requiring Comprehensive Authorizations for 
Missile Defense.--In carrying out the study under subsection (a), the 
Secretary of Defense, in consultation with the Secretary of State, shall 
examine the feasibility of providing major project authorizations for 
programs related to missile defense similar to the comprehensive export 
authorization specified in section 126.14 of the International Traffic 
in Arms Regulations (section 126.14 of title 22, Code of Federal 
Regulations).
    (c) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall, in consultation with the 
Secretary of State, submit to the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate

[[Page 118 STAT. 2092]]

and the Committee on Armed Services and the Committee on International 
Relations of the House of Representatives a report on the results of the 
study under subsection (a). The report shall include--
            (1) the determinations resulting from the study, including a 
        determination on the feasibility of providing the major project 
        authorization for projects related to missile defense described 
        in subsection (b); and
            (2) a discussion of the justification for each such 
        determination.

    (d) Definition of Defense Items.--In this section, the term 
``defense items'' has the meaning given that term in section 38(j)(4)(A) 
of the Arms Export Control Act (22 U.S.C. 2778(j)(4)(A)).

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

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

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 $409,200,000 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 storage security in Russia, 
        $48,672,000.
            (3) For nuclear weapons transportation security in Russia, 
        $26,300,000.
            (4) For weapons of mass destruction proliferation prevention 
        in the states of the former Soviet Union, $40,030,000.

[[Page 118 STAT. 2093]]

            (5) For chemical weapons destruction in Russia, 
        $158,400,000.
            (6) For biological weapons proliferation prevention in the 
        former Soviet Union, $54,959,000.
            (7) For defense and military contacts, $8,000,000.
            (8) For activities designated as Other Assessments/
        Administrative Support, $14,317,000.

    (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. <<NOTE: 22 USC 5952 note.>> 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 for a calendar year for which 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.

[[Page 118 STAT. 2094]]

    (b) Expiration.--The authority in subsection (a) shall expire on 
December 31, 2006, and no waiver shall remain in effect after that date.

SEC. 1304. INCLUSION OF DESCRIPTIVE SUMMARIES IN ANNUAL COOPERATIVE 
            THREAT REDUCTION REPORTS AND BUDGET JUSTIFICATION MATERIALS.

    Section 1307 of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2165; 22 U.S.C. 
5952 note) is amended--
            (1) in subsection (a), by striking ``as part of the 
        Secretary's annual budget request to Congress'' in the matter 
        preceding paragraph (1) and inserting ``in the materials and 
        manner specified in subsection (c)''; and
            (2) by adding at the end the following new subsection:

    ``(c) Inclusion in Certain Materials Submitted to Congress.--The 
summary required to be submitted to Congress in a fiscal year under 
subsection (a) shall be set forth by project category, and by amounts 
specified in paragraphs (1) and (2) of that subsection in connection 
with such project category, in each of the following:
            ``(1) The annual report on activities and assistance under 
        Cooperative Threat Reduction programs required in such fiscal 
        year under section 1308 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into law by 
        Public Law 106-398).
            ``(2) The budget justification materials submitted to 
        Congress in support of the Department of Defense budget for the 
        fiscal year succeeding such fiscal year (as submitted with the 
        budget of the President under section 1105(a) of title 31, 
        United States Code).''.

                    TITLE XIV--SUNKEN MILITARY CRAFT

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

SEC. 1401. <<NOTE: 10 USC 113 note.>> 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--
            (1) shall not be extinguished except by an express 
        divestiture of title by the United States; and
            (2) shall not be extinguished by the passage of time, 
        regardless of when the sunken military craft sank.

SEC. 1402. <<NOTE: 10 USC 113 note.>> 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 title;

[[Page 118 STAT. 2095]]

            (2) as authorized by regulations issued under this title; 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 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. 1403. <<NOTE: 10 USC 113 note.>> PERMITS.

    (a) In General.--The Secretary concerned may issue a permit 
authorizing a person to engage in an activity otherwise prohibited by 
section 1402 with respect to a United States sunken 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.
    (d) Application to Foreign Craft.--At the request of any foreign 
State, the Secretary of the Navy, in consultation with the Secretary of 
State, may carry out this section (including regulations promulgated 
pursuant to this section) with respect to any foreign sunken military 
craft of that foreign State located in United States waters.

SEC. 1404. <<NOTE: 10 USC 113 note.>> PENALTIES.

    (a) In General.--Any person who violates this title, or any 
regulation or permit issued under this title, shall be liable to the 
United States for a civil penalty under this section.

[[Page 118 STAT. 2096]]

    (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 title or a regulation or permit issued under this title shall 
constitute a separate violation for purposes of this section.
    (d) In Rem Liability.--A vessel used to violate this title shall be 
liable in rem for a penalty under this section for such violation.
    (e) Other Relief.--If the Secretary concerned determines that there 
is an imminent risk of disturbance of, removal of, or injury to any 
sunken military craft, or that there has been actual disturbance of, 
removal of, or injury to a sunken military craft, the Attorney General, 
upon request of the Secretary concerned, may seek such relief as may be 
necessary to abate such risk or actual disturbance, removal, or injury 
and to return or restore the sunken military craft. The district courts 
of the United States shall have jurisdiction in such a case to order 
such relief as the public interest and the equities of the case may 
require.
    (f) Limitations.--An action to enforce a violation of section 1402 
or any regulation or permit issued under this title may not be brought 
more than 8 years after the date on which--
            (1) all facts material to the right of action are known or 
        should have been known by the Secretary concerned; and
            (2) the defendant is subject to the jurisdiction of the 
        appropriate district court of the United States or 
        administrative forum.

SEC. 1405. <<NOTE: 10 USC 113 note.>> LIABILITY FOR DAMAGES.

    (a) In General.--Any person who engages in an activity in violation 
of section 1402 or any regulation or permit issued under this title 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 1402 or any regulation or permit issued 
        under this title; 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. 1406. <<NOTE: 10 USC 113 note.>> RELATIONSHIP TO OTHER LAWS.

    (a) In General.--Except to the extent that an activity is undertaken 
as a subterfuge for activities prohibited by this title, nothing in this 
title 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.

[[Page 118 STAT. 2097]]

    (b) International Law.--This title and any regulations implementing 
this title 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--
            (1) any United States sunken military craft, wherever 
        located; or
            (2) any foreign sunken military craft located in United 
        States waters.

    (d) Law of Salvage.--No salvage rights or awards shall be granted 
with respect to--
            (1) any United States sunken military craft without the 
        express permission of the United States; or
            (2) any foreign sunken military craft located in United 
        States waters without the express permission of the relevant 
        foreign state.

    (e) Law of Capture or Prize.--Nothing in this title 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 title 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 title shall invalidate any prior delegation, 
authorization, or related regulation that is consistent with this title.
    (i) Criminal Law.--Nothing in this title 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. 1407. <<NOTE: 10 USC 113 note.>> 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 title.

SEC. 1408. <<NOTE: 10 USC 113 note.>> DEFINITIONS.

    In this title:
            (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 concerned.--The term ``Secretary concerned'' 
        means--
                    (A) subject to subparagraph (B), the Secretary of a 
                military department; and

[[Page 118 STAT. 2098]]

                    (B) in the case of a Coast Guard vessel, the 
                Secretary of the Department in which the Coast Guard is 
                operating.
            (3) Sunken military craft.--The term ``sunken military 
        craft'' means all or any portion of--
                    (A) any sunken warship, naval auxiliary, or other 
                vessel that was owned or operated by a government on 
                military noncommercial service when it sank;
                    (B) any sunken military aircraft or military 
                spacecraft that was owned or operated by a government 
                when it sank; and
                    (C) the associated contents of a craft referred to 
                in subparagraph (A) or (B),
        if title thereto has not been abandoned or transferred by the 
        government concerned.
            (4) 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.
            (5) 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.
            (6) 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.
            (7) United states waters.--The term ``United States waters'' 
        means United States internal waters, the United States 
        territorial sea, and the United States contiguous zone.

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

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

SEC. 1501. PURPOSE.

    The purpose of this title is to authorize emergency appropriations 
for the Department of Defense for fiscal year 2005 to provide funds for 
additional costs due to Operation Iraqi Freedom and Operation Enduring 
Freedom. Funds in this title are available upon the enactment of this 
Act.

SEC. 1502. ARMY PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for procurement accounts of the Army in amounts as follows:

[[Page 118 STAT. 2099]]

            (1) For weapons and tracked combat vehicles, $50,000,000.
            (2) For ammunition, $110,000,000.
            (3) For other procurement, $755,000,000.
            (4) For National Guard and Reserve equipment, $50,000,000.

SEC. 1503. 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 $150,000,000.
    (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 
$30,000,000.

SEC. 1504. 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 $50,000,000.

SEC. 1505. 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, operation and maintenance, in amounts as follows:
            (1) For the Army, $13,550,000,000.
            (2) For the Navy, $367,000,000.
            (3) For the Marine Corps, $1,665,000,000.
            (4) For the Air Force, $419,000,000.
            (5) For Defense-wide, $404,000,000.

SEC. 1506. DEFENSE WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for Defense Working Capital Program in the amount of $1,478,000,000.

SEC. 1507. IRAQ FREEDOM FUND.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal year 2005 for the account of the Iraq Freedom Fund in amount of 
$3,892,000,000, to remain available for transfer to other accounts in 
this title until September 30, 2006. Amounts of authorization so 
transferred shall be merged with and be made available for the same 
purposes as the authorization to which transferred. Of the amounts 
provided in this section $1,800,000,000 shall only be used for 
classified programs.
    (b) Notice to Congress.--A transfer may be made from the Iraq 
Freedom Fund only after the Secretary of Defense notifies the 
congressional defense committees with respect to the proposed transfer 
in writing not less than five days before the transfer is made.

SEC. 1508. 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, 
the Defense Health Program, in the amount of $780,000,000, for Operation 
and Maintenance.

[[Page 118 STAT. 2100]]

SEC. 1509. 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 
$1,250,000,000.

SEC. 1510. 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. 1511. 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 
$1,500,000,000. 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.--A transfer may be made under the authority 
of this section only after the Secretary of Defense--
            (1) consults with the chairmen and ranking members of the 
        congressional defense committees with respect to the proposed 
        transfer; and
            (2) after such consultation, notifies those committees in 
        writing of the proposed transfer not less than five days before 
        the transfer is made.

DIVISION B--MILITARY <<NOTE: Military Construction Authorization Act for 
Fiscal Year 2005.>> CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2005''.

[[Page 118 STAT. 2101]]

                             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.

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
                                                  Fort Rucker.................................       $16,000,000
Alaska..........................................  Fort Richardson.............................       $24,300,000
                                                  Fort Wainwright.............................       $92,459,000
Arizona.........................................  Fort Huachuca...............................       $18,000,000
California......................................  Fort Irwin..................................       $38,100,000
                                                  Sierra Army Depot...........................       $12,600,000
Colorado........................................  Fort Carson.................................       $59,508,000
Florida.........................................  Camp Rudder.................................        $1,850,000
Georgia.........................................  Fort Benning................................       $71,777,000
                                                  Fort Gillem.................................        $5,800,000
                                                  Fort McPherson..............................        $4,900,000
                                                  Fort Stewart/Hunter Army Air Field..........       $65,495,000
Hawaii..........................................  Helemano Military Reservation...............       $75,300,000
                                                  Hickam Air Force Base.......................       $11,200,000
                                                  Schofield Barracks..........................      $249,792,000
Kansas..........................................  Fort Riley..................................       $59,550,000
Kentucky........................................  Fort Campbell...............................       $89,600,000
                                                  Fort Knox...................................       $75,750,000
Louisiana.......................................  Fort Polk...................................       $70,953,000
Maryland........................................  Aberdeen Proving Ground.....................       $13,000,000
                                                  Fort Detrick................................        $4,000,000
Missouri........................................  Fort Leonard Wood...........................       $31,850,000
New Jersey......................................  Picatinny Arsenal...........................        $9,900,000
New Mexico......................................  White Sands Missile Range...................       $33,000,000
New York........................................  Fort Drum...................................       $13,650,000
                                                  Fort Hamilton...............................        $7,600,000
                                                  Hancock Field...............................        $6,000,000
                                                  Military Entrance Processing Station,               $6,200,000
                                                   Buffalo....................................
                                                  United States Military Academy, West Point..       $60,000,000
North Carolina..................................  Fort Bragg..................................      $111,687,000
Oklahoma........................................  Fort Sill...................................       $17,800,000
Pennsylvania....................................  Letterkenny Depot...........................        $5,400,000
Texas...........................................  Fort Bliss..................................       $19,400,000
                                                  Fort Hood...................................       $85,188,000
                                                  Fort Sam Houston............................       $11,400,000
Virginia........................................  Fort A.P. Hill..............................       $10,775,000
                                                  Fort Lee....................................        $4,250,000
                                                  Fort Myer...................................       $49,526,000
Washington......................................  Fort Lewis..................................       $56,200,000
                                                                                               -----------------
                                                      Total...................................    $1,623,450,000
----------------------------------------------------------------------------------------------------------------


[[Page 118 STAT. 2102]]

    (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

[[Page 118 STAT. 2103]]

military family housing functions of the Department of the Army in the 
total amount of $3,537,141,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $1,453,950,000.
            (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, $151,335,000.
            (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), as amended by section 2105 of the Military 
        Construction 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:

[[Page 118 STAT. 2104]]

            (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).
            (4) $25,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a barracks complex, Fort 
        Campbell, Kentucky).
            (5) $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).
            (6) $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).
            (7) $31,000,000 (the balance of the amount authorized under 
        section 2101(a) for a barracks complex renewal project, Fort 
        Bragg, North Carolina).

    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (11) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$5,550,000, which represents prior year savings.

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 118 STAT. 2105]]

            (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.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, 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.
                               Recruit Depot San Diego..      $8,110,000
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         $12,600,000
                                Center, Crane...........
Maine........................  Naval Air Station,             $6,220,000
                                Brunswick...............
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.................
                               Navy Outlying Landing        $136,900,000
                                Field, Washington County
Nevada.......................  Naval Air Station, Fallon      $4,980,000
Rhode Island.................  Naval Air Station,             $5,490,000
                                Newport.................
South Carolina...............  Marine Corps Air Station,      $5,480,000
                                Beaufort................
                               Naval Weapons Station,        $12,209,000
                                Charleston..............

[[Page 118 STAT. 2106]]

 
Virginia.....................  Camp Elmore Marine Corps      $13,500,000
                                Detachment..............
                               Marine Corps Air              $73,838,000
                                Facility, Quantico......
                               Marine Corps Combat           $25,090,000
                                Development Command,
                                Quantico................
                               Naval Air Station, Oceana      $2,770,000
                               Naval Amphibious Base,         $9,220,000
                                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         $20,305,000
                                Sound...................
                               Naval Station, Bremerton.     $74,125,000
                               Strategic Weapons            $138,060,000
                                Facility Pacific, Bangor
                                                         ---------------
                                   Total................    $952,055,000
------------------------------------------------------------------------

    (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
------------------------------------------------------------------------
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................    $105,950,000
------------------------------------------------------------------------

    (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 unspecified installations or locations in the 
amount set forth in the following table:

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Unspecified Worldwide....    $105,982,000
                                                         ---------------
                                   Total................    $105,982,000
------------------------------------------------------------------------

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 installation, for the purpose, and in 
the amount set forth in the following table:

[[Page 118 STAT. 2107]]



                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   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 
$1,897,245,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $712,927,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $94,950,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2201(c), $40,000,000.
            (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, $87,067,000.
            (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 for 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 
        for 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

[[Page 118 STAT. 2108]]

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) $116,750,000 (the balance of the amount authorized under 
        section 2201(a) for land acquisition for an outlying landing 
        field in Washington County, North Carolina).
            (4) $34,098,000 (the balance of the amount authorized under 
        section 2201(a) for construction of a White Side complex, Marine 
        Corps Air Facility, Quantico, Virginia).
            (5) $40,000,000 (the balance of the amount authorized under 
        section 2201(a) for construction of bachelor enlisted quarters, 
        Naval Station, Bremerton, Washington).
            (6) $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).
            (7) $65,982,000 (the balance of the amount authorized under 
        section 2201(c) for construction of a presidential helicopter 
        programs support facility at an unspecified location).

    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (9) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$5,549,000, which represents prior year savings.

                         TITLE XXIII--AIR FORCE

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

SEC. 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.     $52,057,000
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
Delaware.....................  Dover Air Force Base.....      $9,500,000
Florida......................  Tyndall Air Force Base...     $27,614,000

[[Page 118 STAT. 2109]]

 
                               Patrick Air Force Base...      $8,800,000
Georgia......................  Moody Air Force Base.....      $9,600,000
                               Robins Air Force Base....     $21,900,000
Hawaii.......................  Hickam Air Force Base....     $30,900,000
                               Maui Site................      $7,500,000
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
Montana......................  Malmstrom Air Force Base.      $5,600,000
Nebraska.....................  Offutt Air Force Base....      $6,221,000
New Mexico...................  Cannon Air Force Base....      $9,500,000
                               Kirtland Air Force Base..      $9,200,000
North Carolina...............  Pope Air Force Base......     $15,150,000
North Dakota.................  Minot Air Force Base.....      $8,900,000
Ohio.........................  Wright-Patterson Air           $9,904,000
                                Force Base.
Oklahoma.....................  Altus Air Force Base.....      $7,000,000
                               Tinker Air Force Base....      $8,000,000
South Carolina...............  Shaw Air Force Base......      $7,000,000
South Dakota.................  Ellsworth Air Force Base.      $9,867,000
Tennessee....................  Arnold Air Force Base....     $24,500,000
Texas........................  Dyess Air Force Base.....     $14,300,000
                               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......     $25,713,000
Wyoming......................  F.E. Warren Air Force          $5,500,000
                                Base.
                                                         ---------------
                                   Total................    $535,358,000
------------------------------------------------------------------------

    (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
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................    $152,599,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(3), the Secretary 
of the Air Force may acquire real property and carry out military 
construction projects for the unspecified installations or locations, 
and in the amounts, set forth in the following table:

[[Page 118 STAT. 2110]]



                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Classified Locations.....     $26,121,000
                               Unspecified Worldwide....     $28,090,000
                                                         ---------------
                                   Total................     $54,211,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations 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.

[[Page 118 STAT. 2111]]

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 
$2,559,768,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $525,358,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $142,771,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $54,211,000.
            (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, $124,085,000.
            (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), $853,384,000.

    (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 sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a).
            (2) $10,000,000 (the balance of the amount authorized under 
        section 2301(a) for construction of a hanger for an aircraft 
        maintenance unit, Tyndall Air Force Base, Florida).

    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$5,550,000, which represents prior year savings.

                      TITLE XXIV--DEFENSE AGENCIES

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

[[Page 118 STAT. 2112]]

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................
                               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.......  Redstone Arsenal, 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 Campbell, Kentucky..      $3,500,000
                               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..
                               Niland, California.......      $1,000,000
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................    $468,782,000
------------------------------------------------------------------------

    (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:

[[Page 118 STAT. 2113]]



               Defense Agencies: Outside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Education Activity...  Grafenwoehr, Germany.....     $36,247,000
                               Naval Station, Guam......     $26,964,000
                               Vilseck, Germany.........      $9,011,000
Defense Logistics Agency.....  Defense Fuel Support          $19,113,000
                                Point, Lajes Field,
                                Portugal................
Special Operations Command...  Naval Station, Guam,           $2,200,000
                                Mariana Islands.........
TRICARE Management Activity..  Diego Garcia.............      $3,800,000
                               Grafenwoehr, Germany.....     $13,000,000
                                                         ---------------
                                   Total................    $110,335,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using the amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(3), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations, and in the 
amounts, set forth in the following table:

                 Defense Agencies: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Special Operations Command...  Classified Locations.....      $7,400,000
                               Unspecified Worldwide....      $2,900,000
                                                         ---------------
                                   Total................     $10,300,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2404(a)(9)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $49,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(7), the Secretary of Defense may carry 
out energy conservation projects under section 2865 of title 10, United 
States Code, in the amount of $50,000,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2004, for military 
construction, land acquisition, and military family housing functions of 
the Department of Defense (other than the military departments) in the 
total amount of $1,055,663,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $411,782,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $110,335,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2401(c), $10,300,000.
            (4) For unspecified minor military construction projects 
        under section 2805 of title 10, United States Code, $20,938,000.

[[Page 118 STAT. 2114]]

            (5) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $10,000,000.
            (6) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $62,182,000.
            (7) For energy conservation projects authorized by section 
        2403 of this Act, $50,000,000.
            (8) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note), $246,116,000.
            (9) For military family housing functions:
                    (A) For improvement of military family housing and 
                facilities, $49,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $49,575,000.
                    (C) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $2,500,000.
            (10) For the construction of phase 6 of an ammunition 
        demilitarization facility at Pueblo Depot Activity, Colorado, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1997 (division B of Public Law 
        104-201; 110 Stat. 2775), as amended by section 2406 of the 
        Military Construction Authorization Act for Fiscal Year 2000 
        (division B of Public Law 106-65; 113 Stat. 839) and section 
        2407 of the Military Construction Authorization Act for Fiscal 
        Year 2003 (division B of Public Law 107-314; 116 Stat. 2698), 
        $44,792,000.
            (11) For the construction of phase 5 of an ammunition 
        demilitarization facility at Blue Grass Army Depot, Kentucky, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 2000 (division B of Public Law 
        106-65; 113 Stat. 835), as amended by section 2405 of the 
        Military Construction Authorization Act of 2002 (division B of 
        Public Law 107-107; 115 Stat. 1298) and section 2405 of the 
        Military Construction Authorization Act for Fiscal Year 2003 
        (division B of Public Law 107-314; 116 Stat. 2698), $37,094,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2401 of this 
Act may not exceed the sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1), (2) and (3) of subsection (a).
            (2) $57,000,000 (the balance of the amount authorized under 
        section 2401(a) for hospital replacement, Fort Belvoir, 
        Virginia).

[[Page 118 STAT. 2115]]

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment program as provided in 
section 2806 of title 10, United States Code, in an amount not to exceed 
the sum of the amount authorized to be appropriated for this purpose in 
section 2502 and the amount collected from the North Atlantic Treaty 
Organization as a result of construction previously financed by the 
United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2004, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment program authorized by 
section 2501, in the amount of $160,800,000.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
            ACQUISITION PROJECTS.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2004, for the costs of acquisition, 
architectural and engineering services, and construction of facilities 
for the Guard and Reserve Forces, and for contributions therefor, under 
chapter 1803 of title 10, United States Code (including the cost of 
acquisition of land for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $434,363,000; and
                    (B) for the Army Reserve, $90,310,000.
            (2) For the Department of the Navy, for the Naval and Marine 
        Corps Reserve, $48,185,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United States, 
                $233,518,000; and
                    (B) for the Air Force Reserve, $122,756,000.

[[Page 118 STAT. 2116]]

         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. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
            SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
            (1) October 1, 2007; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 2008.

    (b) Exception.--Subsection (a) shall not apply to authorizations for 
military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic Treaty 
Organization Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2007; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 2008 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization Security 
        Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2002 
            PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1301), authorizations set forth in the 
tables in subsection (b), as provided in section 2101, 2302, or 2601 of 
that Act, shall remain in effect until October 1, 2005, or the date of 
the enactment of an Act authorizing funds for military construction for 
fiscal year 2006, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

                                 Army: Extension of 2002 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright...........  Power plant cooling tower.     $23,000,000
Hawaii..................................  Pohakuloa Training          Parker Ranch land               $1,500,000
                                           Facility.................   acquisition..............
----------------------------------------------------------------------------------------------------------------


[[Page 118 STAT. 2117]]


                               Air Force: Extension of 2002 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Colorado................................  Buckley Air Force Base....  Family housing (55 Units).     $11,400,000
Louisiana...............................  Barksdale Air Force Base..  Family housing (56 Units).      $7,300,000
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 2002 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Lancaster.................  Readiness Center..........      $4,530,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION AND RENEWAL OF AUTHORIZATIONS OF CERTAIN FISCAL 
            YEAR 2001 PROJECTS.

    (a) Extension and Renewal.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 2001 (division B 
of the Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-
407)), authorizations set forth in the tables in subsection (b), as 
provided in section 2102 or 2401 of that Act and, in the case of the 
authorization set forth in the first table in subsection (b), extended 
by section 2702 of the Military Construction Authorization Act for 
Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 1716), 
shall remain in effect until October 1, 2005, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2006, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

                                  Army: Extension of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
South Carolina..........................  Fort Jackson..............  Family housing (1 unit)...        $250,000
----------------------------------------------------------------------------------------------------------------


                             Defense Agencies: Renewal of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 Agency                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Defense Education Activity..............  Osan Air Base, Korea......  Osan Elementary School            $843,000
                                                                       addition.................
----------------------------------------------------------------------------------------------------------------


[[Page 118 STAT. 2118]]

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

                Subtitle C--Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

Sec. 2861. Land exchange, former Richmond Naval Air Station, Florida.

[[Page 118 STAT. 2119]]

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

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

                        Subtitle E--Other Matters

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

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

SEC. 2801. MODIFICATION OF APPROVAL AND NOTICE REQUIREMENTS FOR FACILITY 
            REPAIR PROJECTS.

    (a) Increase in Threshold for Approval Requirement.--Subsection (b) 
of section 2811 of title 10, United States Code, is amended by striking 
``$5,000,000'' and inserting ``$7,500,000''.
    (b) Decrease in Threshold for Congressional Notification.--
Subsection (d) of such section is amended by striking ``$10,000,000'' 
and inserting ``$7,500,000''.
    (c) Information Required in Cost Estimate for Multi-Year Projects.--
Subsection (d)(1) of such section is amended by inserting before the 
semicolon the following: ``, including, in the case of a multi-year 
repair project to a single facility, the total cost of all phases of the 
project''.

SEC. 2802. REPORTING REQUIREMENTS REGARDING MILITARY FAMILY HOUSING 
            REQUIREMENTS FOR GENERAL OFFICERS AND FLAG OFFICERS.

    (a) Reports on Cost of General and Flag Officers Quarters.--Section 
2831 of title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(e) Reports on Cost of General Officers and Flag Officers 
Quarters.--(1) 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, the Secretary of Defense shall submit a 
report--

[[Page 118 STAT. 2120]]

            ``(A) identifying each family housing unit used, or intended 
        for use, as quarters for a general officer or flag officer for 
        which the total operation, maintenance, and repair costs for the 
        unit are anticipated to exceed $35,000 in the next fiscal year; 
        and
            ``(B) for each family housing unit so identified, specifying 
        the total of such anticipated operation, maintenance, and repair 
        costs for the unit.

    ``(2) Not later than 120 days after the end of each fiscal year, the 
Secretary of Defense shall submit to the congressional defense 
committees a report specifying, for each family housing unit used as 
quarters for a general officer or flag officer at any time during that 
fiscal year, the total expenditures for operation and maintenance, 
utilities, lease, and repairs of the unit during that fiscal year.''.
    (b) Notice and Wait Requirement.--Such section is further amended by 
inserting after subsection (e), as added by subsection (a), the 
following new subsection:
    ``(f) Notice and Wait Requirement.--(1) Except as provided in 
paragraphs (2) and (3), the Secretary concerned may not carry out a 
maintenance or repair project for a family housing unit used, or 
intended for use, as quarters for a general officer or flag officer if 
the project will or may result in the total operation, maintenance, and 
repair costs for the unit for the fiscal year to exceed $35,000, until--
            ``(A) the Secretary concerned submits to the congressional 
        defense committees, in writing, a justification of the need for 
        the maintenance or repair project and an estimate of the cost of 
        the project; and
            ``(B) a period of 21 days has expired following the date on 
        which the justification and estimate are received by the 
        committees or, if over sooner, a period of 14 days has expired 
        following the date on which a copy of the justification and 
        estimate are provided in an electronic medium pursuant to 
        section 480 of this title.

    ``(2) The project justification and cost estimate required by 
paragraph (1)(A) may be submitted after the commencement of a 
maintenance or repair project for a family housing unit used, or 
intended for use, as quarters for a general officer or flag officer if 
the project is a necessary enviromental remediation project for the unit 
or is necessary for occupant safety or security, and the need for the 
project arose after the submission of the most recent report under 
subsection (e).
    ``(3) Paragraph (1) shall not apply in the case of a family housing 
unit used, or intended for use, as quarters for a general officer or 
flag officer if the unit was identified in the most recent report 
submitted under subsection (e) and the cost of the maintenance or repair 
project was included in the total of anticipated operation, maintenance, 
and repair costs for the unit specified in the report.''.
    (c) Report on Need for General and Flag Officers Quarters in 
National Capital Region.--Not later than March 30, 2005, the Secretary 
of Defense shall submit to the congressional defense committees a report 
containing an analysis of anticipated needs in the National Capital 
Region for family housing units for general officers and flag officers. 
In conducting the analysis, the Secretary shall consider the extent of 
available housing in

[[Page 118 STAT. 2121]]

the National Capital Region and the necessity of providing housing for 
general officers and flag officers in secure locations.
    (d) Report on Current World-Wide Inventory of General and Flag 
Officers Quarters.--Not later than March 30, 2005, the Secretary of 
Defense shall submit to the congressional defense committees a report--
            (1) containing a worldwide inventory of family housing units 
        used, or intended for use, for general officers and flag 
        officers; and
            (2) identifying annual expenditures for fiscal years 2002, 
        2003, and 2004 for operation and maintenance, utilities, leases, 
        and repairs of each unit.

    (e) Definitions.--In this section:
            (1) The terms ``general officer'' and ``flag officer'' have 
        the meanings given such terms in section 101(b) of title 10, 
        United States Code.
            (2) The term ``National Capital Region'' has the meaning 
        given such term in section 2674(f) of such title.

SEC. 2803. CONGRESSIONAL NOTIFICATION OF DEVIATIONS FROM AUTHORIZED COST 
            VARIATIONS FOR MILITARY CONSTRUCTION PROJECTS AND MILITARY 
            FAMILY HOUSING PROJECTS.

    Section 2853(c)(3) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``or, if over 
sooner, a period of 14 days has elapsed after the date on which a copy 
of the notification is provided in an electronic medium pursuant to 
section 480 of this title''.

SEC. 2804. ASSESSMENT OF VULNERABILITY OF MILITARY INSTALLATIONS TO 
            TERRORIST ATTACK AND ANNUAL REPORT ON MILITARY CONSTRUCTION 
            REQUIREMENTS RELATED TO ANTITERRORISM AND FORCE PROTECTION.

    (a) Annual Assessment and Report.--(1) Chapter 169 of title 10, 
United States Code, is amended by inserting after section 2858 the 
following new section:

``Sec. 2859. Construction requirements related to antiterrorism and 
                        force protection

    ``(a) Antiterrorism and Force Protection Guidance and Criteria.--The 
Secretary of Defense shall develop common guidance and criteria to be 
used by each Secretary concerned--
            ``(1) to assess the vulnerability of military installations 
        located inside and outside of the United States to terrorist 
        attack;
            ``(2) to develop construction standards designed to reduce 
        the vulnerability of structures to terrorist attack and improve 
        the security of the occupants of such structures;
            ``(3) to prepare and carry out military construction 
        projects, such as gate and fenceline construction, to improve 
        the physical security of military installations; and
            ``(4) to assist in prioritizing such projects within the 
        military construction budget of each of the armed forces.

    ``(b) Vulnerability Assessments.--The Secretary of Defense shall 
require vulnerability assessments of military installations to be 
conducted, at regular intervals, using the criteria developed under 
subsection (a).

[[Page 118 STAT. 2122]]

    ``(c) Military Construction Requirements.--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, in both classified and unclassified form, describing--
            ``(1) the location and results of the vulnerability 
        assessments conducted under subsection (b) during the most 
        recently completed fiscal year;
            ``(2) the military construction requirements anticipated to 
        be necessary during the period covered by the then-current 
        future-years defense plan under section 221 of this title to 
        improve the physical security of military installations; and
            ``(3) the extent to which funds to meet those requirements 
        are not requested in the Department of Defense budget for the 
        fiscal year for which the budget is submitted.''.

    (2) The table of sections at the beginning of subchapter III of 
chapter 169 of such title is amended by inserting after the item 
relating to section 2858 the following new item:

``2859. Construction requirements related to antiterrorism and force 
           protection.''.

    (b) Special <<NOTE: 10 USC 2859 note.>> Requirement for 2006 
Report.--In the case of the report required to be submitted in 2006 
under section 2859(c) of title 10, United States Code, as added by 
subsection (a), the Secretary of Defense shall include a certificati