Subtitle A-Military Construction Program and Military Family Housing Changes

SEC. 2801. MODIFICATION OF GENERAL DEFINITIONS RELATING TO MILITARY CONSTRUCTION.

(a) MILITARY CONSTRUCTION. Subsection (a) of section 2801 of title 10, United States Code, is amended by inserting before the period the following: ", whether to satisfy temporary or permanent requirements".

(b) MILITARY INSTALLATION.-Subsection (c)(2) of such section is amended by inserting before the period the following: ", without regard to the duration of operational control".

SEC. 2802. INCREASE IN MAXIMUM AMOUNT OF AUTHORIZED ANNUAL EMERGENCY CONSTRUCTION.

Section 2803(c)(1) of title 10, United States Code, is amended by striking "$30,000,000" and inserting "$45,000,000".

SEC. 2803. INCREASE IN NUMBER OF FAMILY HOUSING UNITS IN ITALY AUTHORIZED FOR LEASE BY THE NAVY.

Section 2828(e)(2) of title 10, United States Code, is amended by striking "2,000" and inserting “2,800".

SEC. 2804. INCREASE IN AUTHORIZED MAXIMUM LEASE TERM FOR FAMILY HOUSING AND OTHER FACILITIES IN CERTAIN FOREIGN COUNTRIES.

(a) LEASE OF MILITARY FAMILY HOUSING.-Section 2828(d)(1) of title 10, United States Code, is amended by striking "ten years," and inserting "10 years, or 15 years in the case of leases in Korea,".

(b) LEASE OF OTHER FACILITIES.-Section 2675 of such title is amended by inserting after "five years," the following: "or 15 years in the case of a lease in Korea,”.

SEC. 2805. CONVEYANCE OF PROPERTY AT MILITARY INSTALLATIONS CLOSED OR REALIGNED ΤΟ SUPPORT MILITARY CONSTRUCTION.

(a) IN GENERAL. (1) Subchapter III of chapter 169 of title 10, United States Code, is amended by adding at the end the following new section:

"§ 2869. Conveyance of property at military installations closed or realigned to support military construction

"(a) CONVEYANCE AUTHORIZED; CONSIDERATION.-The Secretary concerned may enter into an agreement to convey real property, including any improvements thereon, located on a military installation that is closed or realigned under a base closure law to any person who agrees, in exchange for the real property

"(1) to carry out a military construction project or land acquisition; or

"(2) to transfer to the Secretary concerned housing that is constructed or provided by the person and located at or near a military installation at which there is a shortage of suitable military family housing, military unaccompanied housing, or both.

Reports.

Federal Register, publication.

"(b) CONDITIONS ON CONVEYANCE AUTHORITY.-The fair market value of the military construction, military family housing, or military unaccompanied housing to be obtained by the Secretary concerned under subsection (a) in exchange for the conveyance of real property by the Secretary under such subsection shall be at least equal to the fair market value of the conveyed real property, as determined by the Secretary. If the fair market value of the military construction, military family housing, or military unaccompanied housing is less than the fair market value of the real property to be conveyed, the recipient of the property shall pay to the United States an amount equal to the difference in the fair market values.

"(c) PILOT PROGRAM FOR USE OF AUTHORITY. (1) To the maximum extent practicable, the Secretary of each military department shall use the conveyance authority provided by subsection (a) at least once before December 31, 2004, for the purposes specified in such subsection.

"(2) The value of the consideration received by the Secretary concerned in a conveyance carried out under this subsection shall not be less than $1,000,000.

"(3) In the case of the report required under subsection (f) to be submitted in 2005, the Secretary of Defense shall include the following:

"(A) A description of the conveyances carried out or proposed under this subsection.

"(B) A description of the procedures utilized to enter into any agreements for the conveyance of property under this subsection.

"(C) An assessment of the utility of such procedures for the disposal of property at military installations closed or realigned under the base closure laws, and for securing services described in subsection (a), including an assessment of any time saved and cost-savings achieved as a result of the use of the conveyance authority provided by this section.

"(D) An assessment of private sector interest in the use of the conveyance authority provided by this section.

"(E) A description of the projects for which the Secretary concerned considered using the conveyance authority provided by this section, but did not do so, and an explanation of the decision.

"(d) ADVANCE NOTICE OF USE OF AUTHORITY. (1) Notice of the proposed use of the conveyance authority provided by subsection (a) shall be provided in such manner as the Secretary of Defense may prescribe, including publication in the Federal Register and otherwise. When real property located at a military installation closed or realigned under the base closure laws is to be conveyed by means of a public sale, the Secretary concerned may notify prospective purchasers that consideration for the property may be provided in the manner authorized by such subsection.

"(2) The Secretary concerned may not enter into an agreement under subsection (a) for the conveyance of real property until—

"(A) the Secretary submits to Congress notice of the conveyance, including the military construction activities, military family housing, or military unaccompanied housing to be obtained in exchange for the conveyance; and

"(B) a period of 14 days expires beginning on the date on which the notice is submitted.

"(e) DEPOSIT OF FUNDS.-The Secretary concerned may deposit funds received under subsection (b) in the Department of Defense housing funds established under section 2883(a) of this title.

"(f) ANNUAL REPORT.-In 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 include a report detailing the following:

"(1) The extent to which the Secretaries concerned used the authority provided by subsection (a) during the preceding fiscal year to convey real property in exchange for military construction and military housing, including the total value of the real property that was actually conveyed during such fiscal year using such authority and the total value of the military construction and military housing services obtained in exchange.

"(2) The plans for the use of such authority for the current fiscal year, the fiscal year covered by the budget, and the period covered by the current future-years defense program under section 221 of this title.

"(3) The current inventory of unconveyed lands at military installations closed or realigned under a base closure law. "(g) DESCRIPTION OF PROPERTY.-The exact acreage and legal description of real property conveyed under subsection (a) shall be determined by surveys satisfactory to the Secretary concerned. "(h) ADDITIONAL TERMS AND CONDITIONS.-The Secretary concerned may require such additional terms and conditions in connection with a conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.". (2) The table of sections at the beginning of such subchapter is amended by adding at the end the following new item:

"2869. Conveyance of property at military installations closed or realigned to support military construction.".

(b) EXCEPTION TO REQUIREMENT FOR AUTHORIZATION OF NUMBER OF HOUSING UNITS.-Section 2822(b) of such title is amended by adding at the end the following new paragraph:

"(6) Housing units constructed or provided under section 2869 of this title.".

(c) CONFORMING AMENDMENT TO DEPARTMENT OF DEFENSE HOUSING FUNDS.-Section 2883(c) of such title is amended

(1) in paragraph (1), by adding at the end the following new subparagraph:

"(F) Any amounts that the Secretary concerned transfers to that Fund pursuant to section 2869 of this title."; and

(2) in paragraph (2), by adding at the end the following new subparagraph:

"(F) Any amounts that the Secretary concerned transfers to that Fund pursuant to section 2869 of this title.".

(d) CONFORMING REPEALS TO BASE CLOSURE LAWS.-(1) Section 204(e) of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note) is repealed.

(2) Section 2905(f) 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 repealed.

10 USC 2822.

10 USC 2883.

SEC. 2806. INAPPLICABILITY OF SPACE LIMITATIONS TO MILITARY UNACCOMPANIED HOUSING UNITS ACQUIRED OR CONSTRUCTED UNDER ALTERNATIVE AUTHORITY.

Section 2880(b)(2) of title 10, United States Code, is amended by striking "unless the unit is located on a military installation". SEC. 2807. ADDITIONAL MATERIAL FOR REPORTS ON HOUSING PRIVATIZATION PROGRAM.

(a) REPORTS ON SPECIFIC PROJECTS.-Subsection (a) of section 2884 of title 10, United States Code, is amended

(1) by designating the second sentence of paragraph (2) as paragraph (4); and

(2) by inserting after the first sentence in paragraph (2) the following new paragraph:

"(3)(A) In the case of a contract described in paragraph (1) proposed to be entered into with a private party, the report shall specify whether the contract will or may include a guarantee (including the making of mortgage or rental payments) by the Secretary to the private party in the event of—

"(i) the closure or realignment of the installation for which housing will be provided under the contract;

"(ii) a reduction in force of units stationed at such installation; or

"(iii) the extended deployment of units stationed at such installation.

"(B) If the contract will or may include such a guarantee, the report shall also—

"(i) describe the nature of the guarantee; and

"(ii) assess the extent and likelihood, if any, of the liability of the United States with respect to the guarantee.".

(b) ANNUAL REPORTS.-Subsection (b) of such section is amended

(1) in paragraph (2), by inserting before the period at the end the following: ", and such recommendations as the Secretary considers necessary for improving the extent and effectiveness of the use of such authorities in the future"; and

(2) by striking paragraph (3) and inserting the following new paragraphs:

(3) A review of activities of the Secretary under this subchapter during such preceding fiscal year, shown for military family housing, military unaccompanied housing, dual military family housing and military unaccompanied housing, and ancillary supporting facilities.

"(4) If a contract for the acquisition or construction of military family housing, military unaccompanied housing, or dual military family housing and military unaccompanied housing entered into during the preceding fiscal year did not include the acquisition or construction of the types of ancillary supporting facilities specifically referred to in section 2871(1) of this title, a explanation of the reasons why such ancillary supporting facilities were not included.

"(5) A description of the Secretary's plans for housing privatization activities under this subchapter: (A) during the fiscal year for which the budget is submitted; and (B) during the period covered by the then-current future-years defense plan under section 221 of this title.".

SEC. 2808. TEMPORARY, LIMITED AUTHORITY TO USE OPERATION AND
MAINTENANCE FUNDS FOR CONSTRUCTION PROJECTS

OUTSIDE THE UNITED STATES.

(a) TEMPORARY AUTHORITY.-During fiscal year 2004, the Secretary of Defense may use this section as authority to obligate appropriated funds available for operation and maintenance to carry out a construction project outside the United States that the Secretary determines meets each of the following conditions:

(1) The construction is necessary to meet urgent military operational requirements of a temporary nature involving the use of the Armed Forces in support of a declaration of war, the declaration by the President of a national emergency under section 201 of the National Emergencies Act (50 U.S.C. 1621), or a contingency operation.

(2) The construction is not carried out at a military installation where the United States is reasonably expected to have a long-term presence.

(3) The United States has no intention of using the construction after the operational requirements have been satisfied.

(4) The level of construction is the minimum necessary to meet the temporary operational requirements.

(b) NOTIFICATION OF OBLIGATION OF FUNDS.-Within seven days Deadline. after the date on which appropriated funds available for operation and maintenance are first obligated for a construction project under subsection (a), the Secretary of Defense shall submit to the congressional committees specified in subsection (f) notice of the obligation of the funds and the construction project. The notice shall include the following:

(1) Certification that the conditions specified in subsection (a) are satisfied with regard to the construction project.

(2) A description of the purpose for which appropriated funds available for operation and maintenance are being obligated.

(3) All relevant documentation detailing the construction project.

(4) An estimate of the total amount obligated for the construction.

(c) LIMITATION ON USE OF AUTHORITY. (1) The total cost of the construction projects carried out under the authority of this section using, in whole or in part, appropriated funds available for operation and maintenance shall not exceed $200,000,000 in fiscal year 2004.

(2) The Secretary of Defense may waive the limitation imposed by paragraph (1) if the Secretary determines that the obligation of operation and maintenance funds for construction projects in excess of the amount specified in such subsection is vital to the national security.

(3) Not later than five days after the date on which a waiver Deadline. is granted under paragraph (2), the Secretary of Defense shall submit to the congressional committees specified in subsection (f) notice containing the reasons for the waiver.

(d) QUARTERLY REPORT.-Not later than 30 days after the end of each fiscal-year quarter of fiscal year 2004, the Secretary of Defense shall submit to the congressional committees specified in subsection (f) a report on the worldwide obligation and expenditure