article: SECTION 1. AUTHORIZATION OF USE OF COOPERATIVE THREAT REDUCTION FUNDS FOR PROJECTS AND ACTIVITIES OUTSIDE THE FORMER SOVIET UNION. (a) Purpose.--The purpose of this section is to authorize the use of Cooperative Threat Reduction funds for proliferation threat reduction projects and activities outside the former Soviet Union in order to resolve critical emerging proliferation threats and to take advantage of opportunities to achieve long-standing United States nonproliferation goals. (b) Cooperative Threat Reduction Programs and Funds.--For purposes of this section: (1) Cooperative Threat Reduction programs are-- (A) 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); and (B) any other similar programs, as designated by the Secretary, to address critical emerging proliferation threats in the states of the former Soviet Union that jeopardize United States national security. (2) Cooperative Threat Reduction funds, for a fiscal year, are the funds authorized to be appropriated for Cooperative Threat Reduction programs for that fiscal year. (c) Authorization of Use of CTR Funds for Threat Reduction Activities Outside the Former Soviet Union.--(1) Notwithstanding any other provision of law and subject to the succeeding provisions of this section, the Secretary of Defense may obligate and expend Cooperative Threat Reduction funds for a fiscal year before fiscal year 2003 that remain available for obligation as of the date of the enactment of this Act for proliferation threat reduction projects and activities outside the states of the former Soviet Union if the Secretary determines that such projects and activities will-- (A) assist the United States in the resolution of critical emerging proliferation threats; or (B) permit the United States to take advantage of opportunities to achieve long-standing United States nonproliferation goals. (2) The amount that may be obligated under paragraph (1) for projects and activities described in that paragraph may not exceed $50,000,000. (d) Authorized Uses of Funds.--The authority under subsection (c) to obligate and expend Cooperative Threat Reduction funds for a project or activity includes authority to provide equipment, goods, and services for the project or activity, but does not include authority to provide cash directly to the project or activity. (e) Source and Replacement of Funds Used.--(1) The Secretary shall, to the maximum extent practicable, ensure that funds for projects and activities under subsection (c) are derived from funds that would otherwise be obligated for a range of Cooperative Threat Reduction programs, so that no particular Cooperative Threat Reduction program is the exclusive or predominate source of funds for such projects and activities. (2) If the Secretary obligates Cooperative Threat Reduction funds under subsection (c) in a fiscal year, the first budget of the President that is submitted under section 1105(a) of title 31, United States Code, after such fiscal year shall set forth, in addition to any other amounts requested for Cooperative Threat Reduction programs in the fiscal year covered by such budget, a request for Cooperative Threat Reduction funds in the fiscal year covered by such budget in an amount equal to the amount so obligated. The request shall also set forth the Cooperative Threat Reduction program or programs for which such funds would otherwise have been obligated, but for obligation under subsection (c). (3) Amounts authorized to be appropriated pursuant to a request under paragraph (2) shall be available only for the Cooperative Threat Reduction program or programs set forth in the request under the second sentence of that paragraph. (f) Limitation on Obligation of Funds.--Except as provided in subsection (g), the Secretary may not obligate and expend Cooperative Threat Reduction funds for a project or activity under subsection (c) until 30 days after the date on which the Secretary submits to Congress a report on the purpose for which the funds will be obligated and expended, and the amount of the funds to be obligated and expended. (g) Exception.--(1) The Secretary may obligate and expend Cooperative Threat Reduction funds for a project or activity under subsection (c) without regard to subsection (f) if the Secretary determines that a critical emerging proliferation threat warrants immediate obligation and expenditure of such funds. (2) Not later than 72 hours after first obligating funds for a project or activity under paragraph (1), the Secretary shall submit to the appropriate congressional officials a report containing a detailed justification for the obligation of funds. The report on a project or activity shall include the following: (A) A description of the critical emerging proliferation threat to be addressed, or the long-standing United States nonproliferation goal to be achieved, by the project or activity. (B) A description of the agreement, if any, under which the funds will be used, including whether or not the agreement provides that the funds will not be used for purposes contrary to the national security interests of the United States. (C) A description of the contracting process, if any, that will be used in the implementation of the project or activity. (D) An analysis of the effect of the obligation of funds for the project or activity on ongoing Cooperative Threat Reduction programs. (E) An analysis of the need for additional or follow-up threat reduction assistance, including whether or not the need for such assistance justifies the establishment of a new cooperative threat reduction program or programs to account for such assistance. (F) A description of the mechanisms to be used by the Secretary to assure that proper audits and examinations of the project or activity are carried out. (3) In this subsection, the term ``appropriate congressional officials'' means-- (A) the Speaker of the House of Representatives; (B) the President pro tempore of the Senate; (C) the Chairmen and Ranking Members of the Committees on Armed Services of the Senate and House of Representatives; (D) the Chairmen and Ranking Members of the Committees on Appropriations of the Senate and House of Representatives; (E) the Chairman and Ranking Member of the Committee on Foreign Relations of the Senate; (F) the Chairman and Ranking Member of the Committee on International Relations of the House of Representatives; (G) the Chairman and Vice Chairman of the Select Committee on Intelligence of the Senate; and (H) the Chairman and Vice Chairman of the Permanent Select Committee on Intelligence of the House of Representatives. (h) Report on Establishment of New Cooperative Threat Reduction Programs.--(1) If the Secretary employs the authority in subsection (c) in two consecutive fiscal years, the Secretary shall submit to Congress a report on the advisability of establishing one or more new cooperative threat reduction programs to account for projects and activities funded using such authority. (2) The report required by paragraph (1) shall be submitted along with the budget justification materials in support of the Department of Defense budget (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) in the first budget submitted after the end of the two consecutive fiscal years referred to in that paragraph.
summary: Authorizes the Secretary of Defense to expend up to $50 million for a fiscal year in Cooperative Threat Reduction funds to prevent proliferation of nuclear, chemical and other weapons outside the former Soviet Union, where allocation of such funds is currently limited to. Specifies that such expenditures may occur if determined that certain projects or activities will assist the United States in dealing with critical emerging proliferation threats or in achieving long-standing nonproliferation goals. Determines that such funds may go only to equipment, goods and services and cannot be spent directly on a project or activity.Directs the President to include in a given year's budget a request for funds distributed under the Act during the last fiscal year with a description of what projects would otherwise have been funded. Sets a time frame for the Secretary to inform Congress of what funds will be used for. Contains a provision for emergency distribution of funds to meet a critical emerging proliferation threat or a nonproliferation goal that requires such allocation.Requires the Secretary to report to Congress on the advisability of establishing one or more new cooperative threat reduction programs to account for projects or activities for which emergency distribution of funds were distributed under the Act or that were funded under the Act two years in a row.