article: SECTION 1. DEFINITION. In this Act, the term ``agency'' means-- (1) an Executive agency (as defined in section 105 of title 5, United States Code); (2) an office, agency, or other establishment in the legislative branch which is not a part of another office, agency, or other establishment in the legislative branch; and (3) an office, agency, or other establishment in the judicial branch which is not a part of another office, agency, or other establishment in the judicial branch. SEC. 2. 2013 SEQUESTER CANCELLATION. Notwithstanding any other provision of law, the sequestration of budgetary resources for fiscal year 2013 ordered on March 1, 2013, pursuant to section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 is cancelled. SEC. 3. FLEXIBLE SEQUESTER IMPLEMENTED BY AGENCY HEADS. (a) In General.--Notwithstanding any other provision of law, the budget sequester for an account in the security and non-security categories required by section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985 for fiscal year 2013 shall be implemented within each account as determined by the head of the agency with spending authority over such account. (b) Appropriations Oversight.-- (1) In general.--The head of an agency may not exercise the authority provided in subsection (a) unless the head has submitted a notice of implementation describing the proposed exercise of authority to the Committees on Appropriations of both Houses not later than 15 days before exercising such authority and each such committee approves the implementation as provided in paragraph (2). (2) Appropriations approval.--After the committees receive an executive branch proposal for administering the sequester under paragraph (1) and not later than 5 days after such receipt, each committee, using standard procedures for reprogramming, shall accept or reject the proposal. If a proposal is accepted by both committees, the proposal may be implemented. If either committee rejects a proposal and notwithstanding section 2, sequestration within the relevant agency will be administered through across the board cuts consistent with section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985. SEC. 4. DEPARTMENT OF DEFENSE FLEXIBILITY IN MANAGEMENT OF MULTIYEAR CONTRACTS. (a) In General.--In implementing under section 251(a)(1) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(a)(1)) the discretionary spending reductions required by section 251A(7) of the Balanced Budget and Emergency Deficit Control Act of 1985, the Secretary of Defense may, in consultation with the Director of the Office of Management and Budget, take appropriate actions in the management of current multiyear contracts of the Department of Defense to minimize the effects of such reductions in the carrying out of such contracts. (b) Authority for Commencement of Certain Programs, Projects, and Activities of the Department of Defense.--Notwithstanding section 102 of the Continuing Appropriations Resolution, 2013 (Public Law 112-175), appropriations or funds made available or authority granted pursuant to section 101 of that Resolution for the Department of Defense may be used for the programs, projects, and activities specified in H.R. 5856, Department of Defense Appropriations Act, 2013, as reported with an amendment in the Senate on August 2, 2012 in the 112th Congress or the funding tables in division D of the National Defense Authorization Act for Fiscal Year 2013 (Public Law 112-239), including the following: (1) The new production of items not funded for production in fiscal year 2012 or prior fiscal years. (2) The increase in production rates above those sustained with fiscal year 2012 funds. (3) The initiation, resumption, or continuation of any project, activity, operation, or organization for which appropriations, funds, or other authority were not available during fiscal year 2012. (c) Clarification of Availability of Multiyear Procurement Authority for the Department of Defense.--Notwithstanding section 102 of the Continuing Appropriations Resolution, 2013 (Public Law 112-175), subsection (l)(3) of section 2306b of title 10, United States Code, or any other provision of law, the Secretary of Defense and the Secretaries of the military departments may enter into contracts for multiyear procurements that are authorized by the National Defense Authorization Act for Fiscal Year 2013 (Public Law 112-239). (d) Availability of Certain Shipbuilding and Conversion Funds.--Of the amounts provided by section 101 of the Continuing Appropriations Resolution, 2013 (Public Law 112-175) for ``Shipbuilding and Conversion, Navy'', $372,573,000 shall be available to fund prior year shipbuilding cost increases. The funds so available shall be transferred to, and merged with, the following appropriations accounts in the amounts specified: (1) ``Shipbuilding and Conversion, Navy, 2009/2013'' for the CVN Refueling Overhauls Program, $135,000,000. (2) ``Shipbuilding and Conversion, Navy, 2007/2013'' for the LHA Replacement Program, $156,685,000. (3) ``Shipbuilding and Conversion, Navy, 2008/2013'' for the LPD-17 Amphibious Transport Dock Program, $80,888,000.
summary: Cancels the sequestration of budgetary resources for FY2013 ordered on March 1, 2013, pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 (Balanced Budget Act). Requires the budget sequester for an account in the security and non-security categories under the Balanced Budget Act for FY2013 to be implemented within each account as determined by the head of the agency with spending authority over such account. Requires: (1) the agency head to notify the Appropriations Committees of a proposed exercise of authority for implementing a sequester, and (2) the Appropriations Committees to approve any agency proposal. Authorizes the Secretary of Defense (DOD) to: (1) take appropriate actions in the management of current DOD multiyear contracts to minimize the effects of a sequester in carrying out such contracts; and (2) begin new programs, projects, and activities and enter into new contracts for multiyear procurements that are authorized by the National Defense Authorization Act for FY2013. Allocates funding for prior year shipbuilding cost increases for the Navy.