[106th Congress Public Law 398]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ398.106]


[[Page 114 STAT. 1654]]

Public Law 106-398
106th Congress

                                 An Act


 
To authorize appropriations for fiscal year 2001 for military activities 
 of the Department of Defense, <<NOTE: Oct. 30, 2000 -  [H.R. 4205]>>  
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.

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

SECTION 1. <<NOTE: Incorporation by reference.>>  ENACTMENT OF FISCAL 
            YEAR 2001 NATIONAL DEFENSE AUTHORIZATION ACT.

    The provisions of H.R. 5408 of the 106th Congress, as introduced on 
October 6, 2000, are hereby enacted into law.

SEC. 2. PUBLICATION OF ACT. <<NOTE: 1 USC 112 note.>> 

    In publishing this Act in slip form and in the United States 
Statutes at Large pursuant to section 112 of title 1, United States 
Code, the Archivist of the United States shall include after the date of 
approval an appendix setting forth the text of the bill referred to in 
section 1.

    Approved October 30, 2000.

LEGISLATIVE HISTORY--H.R. 4205 (S. 2549) (S. 2550):
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HOUSE REPORTS: Nos. 106-616 (Comm. on Armed Services) and 106-945 (Comm. 
of Conference).
SENATE REPORTS: No. 106-292 accompanying S. 2549 (Comm. on Armed 
Services).
CONGRESSIONAL RECORD, Vol. 146 (2000):
            May 17, 18 considered and passed House.
            July 13, considered and passed Senate, amended.
            Oct. 11, House agreed to conference report.
            Oct. 12, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
            Oct. 30, Presidential statement.
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__________
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    ENDNOTE: The following appendix was added pursuant to the provisions 
of sections 1 and 2 of this Act.

                                  <all>

[[Page 114 STAT. 1654A-1]]



                           APPENDIX--H.R. 5408

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001''.
    (b) Findings.--Congress makes the following findings:
            (1) Representative Floyd D. Spence of South Carolina was 
        elected to the House of Representatives in 1970, for service in 
        the 92d Congress, after serving in the South Carolina 
        legislature for 10 years, and he has been reelected to each 
        subsequent Congress.
            (2) Representative Spence came to Congress as a 
        distinguished veteran of service in the Armed Forces of the 
        United States.
            (3) Upon graduation from college in 1952, Representative 
        Spence was commissioned as an ensign in the United States Naval 
        Reserve. After entering active duty, he served with distinction 
        aboard the USS CARTER HALL and the USS LSM-397 during the Korean 
        War and later served as commanding officer of a Naval Reserve 
        Surface Division and as group commander of all Naval Reserve 
        units in Columbia, South Carolina. Representative Spence retired 
        from the Naval Reserve in 1988 in the grade of captain, after 41 
        years of dedicated service.
            (4) Upon election to the House of Representatives, 
        Representative Spence became a member of the Committee on Armed 
        Services of that body. During 30 years of service on that 
        committee (4 years of which were served while the committee was 
        known as the Committee on National Security), Representative 
        Spence's contributions to the national defense and security of 
        the United States have been profound and long lasting.
            (5) Representative Spence served as chairman of that 
        committee while known as the Committee on National Security 
        during the 104th and 105th Congresses and serves as chairman of 
        that committee for the 106th Congress. In addition, 
        Representative Spence served as the ranking minority member of 
        the Committee on Armed Services during the 103d Congress.
            (6) Dozens of awards from active duty and reserve military, 
        veterans service, military retiree, and industry organizations 
        and associations have recognized the distinguished character of 
        Representative Spence's service to the Nation.
            (7) Representative Spence has been a leading figure in the 
        debate over many of the most critical military readiness, health 
        care, recruiting, and retention issues currently confronting the 
        Nation's military. His concern for the men and women in uniform 
        has been unwavering, and his accomplishments in promoting and 
        gaining support for those issues that preserve

[[Page 114 STAT. 1654A-2]]

        the combat effectiveness, morale, and quality of life of the 
        Nation's military personnel have been unparalleled.
            (8) During his tenure as chairman of the Committee on 
        National Security and the Committee on Armed Services of the 
        House of Representatives, Representative Spence has--
                    (A) led efforts to identify and reverse the effect 
                that declining resources and rising commitments have had 
                on military quality of life for service members and 
                their families, on combat readiness, and on equipment 
                modernization, with a direct result of those diligent 
                efforts and of his willingness to be an outspoken 
                proponent for America's military being that Congress has 
                added nearly $50,000,000,000 to the President's defense 
                budgets over the past 5 years;
                    (B) been a leading proponent of the need to 
                expeditiously develop and field a national missile 
                defense to protect American citizens and forward 
                deployed military forces from growing ballistic missile 
                threats;
                    (C) advocated reversing the growing disparity 
                between actual military capability and the requirements 
                associated with the National Military Strategy; and
                    (D) led efforts in Congress to reform Department of 
                Defense acquisition and management headquarters and 
                infrastructure and business practices.
            (9) This Act is the 30th annual authorization bill for the 
        Department of Defense for which Representative Spence has taken 
        a major responsibility as a member of the Committee on Armed 
        Services of the House of Representatives (including 4 years 
        while that committee was known as the Committee on National 
        Security).
            (10) In light of the findings in the preceding paragraphs, 
        it is altogether fitting and proper that this Act be named in 
        honor of Representative Floyd D. Spence of South Carolina, as 
        provided in subsection (a).

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

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

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

Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees 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.
Sec. 105. Defense Inspector General.

[[Page 114 STAT. 1654A-3]]

Sec. 106. Defense Health Program.

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority.
Sec. 112. Increase in limitation on number of bunker defeat munitions 
           that may be acquired.
Sec. 113. Reports and limitations relating to Army transformation.

                        Subtitle C--Navy Programs

Sec. 121. CVNX-1 nuclear aircraft carrier program.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. Virginia class submarine program.
Sec. 124. Limitation during fiscal year 2001 on changes in submarine 
           force structure.
Sec. 125. ADC(X) ship program.
Sec. 126. Refueling and complex overhaul program of the U.S.S. Dwight D. 
           Eisenhower.
Sec. 127. Analysis of certain shipbuilding programs.
Sec. 128. Helicopter support of FFG-7 frigates during fiscal year 2001.
Sec. 129. V-22 cockpit aircraft voice and flight data recorders.

                     Subtitle D--Air Force Programs

Sec. 131. Annual report on B-2 bomber.
Sec. 132. Report on modernization of Air National Guard F-16A units.

                       Subtitle E--Joint Programs

Sec. 141. Study of final assembly and checkout alternatives for the 
           Joint Strike Fighter program.

                  Subtitle F--Chemical Demilitarization

Sec. 151. Pueblo Chemical Depot chemical agent and munitions destruction 
           technologies.
Sec. 152. Report on assessment of need for Federal economic assistance 
           for communities impacted by chemical demilitarization 
           activities.
Sec. 153. Prohibition against disposal of non-stockpile chemical warfare 
           material at Anniston chemical stockpile disposal facility.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Management of Space-Based Infrared System--Low.
Sec. 212. Joint Strike Fighter program.
Sec. 213. Fiscal year 2002 joint field experiment.
Sec. 214. Nuclear aircraft carrier design and production modeling.
Sec. 215. DD-21 class destroyer program.
Sec. 216. Limitation on Russian American Observation Satellites program.
Sec. 217. Joint biological defense program.
Sec. 218. Report on biological warfare defense vaccine research and 
           development programs.
Sec. 219. Cost limitations applicable to F-22 aircraft program.
Sec. 220. Unmanned advanced capability combat aircraft and ground combat 
           vehicles.
Sec. 221. Global Hawk high altitude endurance unmanned aerial vehicle.
Sec. 222. Army space control technology development.

                  Subtitle C--Ballistic Missile Defense

Sec. 231. Funding for fiscal year 2001.
Sec. 232. Reports on ballistic missile threat posed by North Korea.
Sec. 233. Plan to modify ballistic missile defense architecture.
Sec. 234. Management of Airborne Laser program.

                 Subtitle D--High Energy Laser Programs

Sec. 241. Funding.
Sec. 242. Implementation of High Energy Laser Master Plan.
Sec. 243. Designation of senior official for high energy laser programs.
Sec. 244. Site for Joint Technology Office.

[[Page 114 STAT. 1654A-4]]

Sec. 245. High energy laser infrastructure improvements.
Sec. 246. Cooperative programs and activities.
Sec. 247. Technology plan.
Sec. 248. Annual report.
Sec. 249. Definition.
Sec. 250. Review of defense-wide directed energy programs.

                        Subtitle E--Other Matters

Sec. 251. Reports on mobile offshore base concept and potential use for 
           certain purposes of technologies associated with that 
           concept.
Sec. 252. Air Force science and technology planning.
Sec. 253. Enhancement of authorities regarding education partnerships 
           for purposes of encouraging scientific study.
Sec. 254. Recognition of those individuals instrumental to naval 
           research efforts during the period from before World War II 
           through the end of the Cold War.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Joint warfighting capabilities assessment teams.

                  Subtitle B--Environmental Provisions

Sec. 311. Establishment of additional environmental restoration account 
           and use of accounts for operation and monitoring of 
           environmental remedies.
Sec. 312. Certain environmental restoration activities.
Sec. 313. Annual reports under Strategic Environmental Research and 
           Development Program.
Sec. 314. Payment of fines and penalties for environmental compliance at 
           Fort Wainwright, Alaska.
Sec. 315. Payment of fines or penalties imposed for environmental 
           compliance violations at other Department of Defense 
           facilities.
Sec. 316. Reimbursement for certain costs in connection with the former 
           Nansemond Ordnance Depot Site, Suffolk, Virginia.
Sec. 317. Necessity of military low-level flight training to protect 
           national security and enhance military readiness.
Sec. 318. Ship disposal project.
Sec. 319. Defense Environmental Security Corporate Information 
           Management Program.
Sec. 320. Report on Plasma Energy Pyrolysis System.
Sec. 321. Sense of Congress regarding environmental restoration of 
           former defense manufacturing site, Santa Clarita, California.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Use of appropriated funds to cover operating expenses of 
           commissary stores.
Sec. 332. Adjustment of sales prices of commissary store goods and 
           services to cover certain expenses.
Sec. 333. Use of surcharges for construction and improvement of 
           commissary stores.
Sec. 334. Inclusion of magazines and other periodicals as an authorized 
           commissary merchandise category.
Sec. 335. Use of most economical distribution method for distilled 
           spirits.
Sec. 336. Report on effects of availability of slot machines on United 
           States military installations overseas.

         Subtitle D--Department of Defense Industrial Facilities

Sec. 341. Designation of Centers of Industrial and Technical Excellence 
           and public-private partnerships to increase utilization of 
           such centers.
Sec. 342. Unutilized and underutilized plant-capacity costs of United 
           States arsenals.
Sec. 343. Arsenal support program initiative.
Sec. 344. Codification and improvement of armament retooling and 
           manufacturing support programs.

     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Inclusion of additional information in reports to Congress 
           required before conversion of commercial or industrial type 
           functions to contractor performance.

[[Page 114 STAT. 1654A-5]]

Sec. 352. Effects of outsourcing on overhead costs of Centers of 
           Industrial and Technical Excellence and Army ammunition 
           plants.
Sec. 353. Consolidation, restructuring, or reengineering of Department 
           of Defense organizations, functions, or activities.
Sec. 354. Monitoring of savings resulting from workforce reductions as 
           part of conversion of functions to performance by private 
           sector or other strategic sourcing initiatives.
Sec. 355. Performance of emergency response functions at chemical 
           weapons storage installations.
Sec. 356. Suspension of reorganization or relocation of Naval Audit 
           Service.

                Subtitle F--Defense Dependents Education

Sec. 361. Eligibility of dependents of American Red Cross employees for 
           enrollment in Department of Defense domestic dependent 
           schools in Puerto Rico.
Sec. 362. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 363. Impact aid for children with severe disabilities.
Sec. 364. Assistance for maintenance, repair, and renovation of school 
           facilities that serve dependents of members of the Armed 
           Forces and Department of Defense civilian employees.

                  Subtitle G--Military Readiness Issues

Sec. 371. Measuring cannibalization of parts, supplies, and equipment 
           under readiness reporting system.
Sec. 372. Reporting requirements regarding transfers from high-priority 
           readiness appropriations.
Sec. 373. Effects of worldwide contingency operations on readiness of 
           military aircraft and equipment.
Sec. 374. Identification of requirements to reduce backlog in 
           maintenance and repair of defense facilities.
Sec. 375. New methodology for preparing budget requests to satisfy Army 
           readiness requirements.
Sec. 376. Review of AH-64 aircraft program.
Sec. 377. Report on Air Force spare and repair parts program for C-5 
           aircraft.

                        Subtitle H--Other Matters

Sec. 381. Annual report on public sale of certain military equipment 
           identified on United States Munitions List.
Sec. 382. Resale of armor-piercing ammunition disposed of by the Army.
Sec. 383. Reimbursement by civil air carriers for support provided at 
           Johnston Atoll.
Sec. 384. Travel by Reserves on military aircraft.
Sec. 385. Overseas airlift service on Civil Reserve Air Fleet aircraft.
Sec. 386. Additions to plan for ensuring visibility over all in-transit 
           end items and secondary items.
Sec. 387. Reauthorization of pilot program for acceptance and use of 
           landing fees charged for use of domestic military airfields 
           by civil aircraft.
Sec. 388. Extension of authority to sell certain aircraft for use in 
           wildfire suppression.
Sec. 389. Damage to aviation facilities caused by alkali silica 
           reactivity.
Sec. 390. Demonstration project to increase reserve component internet 
           access and services in rural communities.
Sec. 391. Additional conditions on implementation of Defense Joint 
           Accounting System.
Sec. 392. Defense Travel System.
Sec. 393. Review of Department of Defense costs of maintaining 
           historical properties.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Adjustment to end strength flexibility authority.

                       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 2001 limitation on non-dual status technicians.
Sec. 415. Increase in numbers of members in certain grades authorized to 
           be on active duty in support of the Reserves.

[[Page 114 STAT. 1654A-6]]

        Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Authority for Secretary of Defense to suspend certain 
           personnel strength limitations during war or national 
           emergency.
Sec. 422. Exclusion from active component end strengths of certain 
           reserve component members on active duty in support of the 
           combatant commands.
Sec. 423. Exclusion of Army and Air Force medical and dental officers 
           from limitation on strengths of reserve commissioned officers 
           in grades below brigadier general.
Sec. 424. Authority for temporary increases in number of reserve 
           component personnel serving on active duty or full-time 
           national guard duty in certain grades.

               Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Eligibility of Army and Air Force Reserve colonels and 
           brigadier generals for position vacancy promotions.
Sec. 502. Flexibility in establishing promotion zones for Coast Guard 
           Reserve officers.
Sec. 503. Time for release of reports of officer promotion selection 
           boards.
Sec. 504. Clarification of requirements for composition of active-duty 
           list selection boards when reserve officers are under 
           consideration.
Sec. 505. Authority to issue posthumous commissions in the case of 
           members dying before official recommendation for appointment 
           or promotion is approved by Secretary concerned.
Sec. 506. Technical corrections relating to retired grade of reserve 
           commissioned officers.
Sec. 507. Grade of chiefs of reserve components and directors of 
           National Guard components.
Sec. 508. Revision to rules for entitlement to separation pay for 
           regular and reserve officers.

             Subtitle B--Reserve Component Personnel Policy

Sec. 521. Exemption from active-duty list for reserve officers on active 
           duty for a period of three years or less.
Sec. 522. Termination of application requirement for consideration of 
           officers for continuation on the reserve active-status list.
Sec. 523. Authority to retain Air Force Reserve officers in all medical 
           specialties until specified age.
Sec. 524. Authority for provision of legal services to reserve component 
           members following release from active duty.
Sec. 525. Extension of involuntary civil service retirement date for 
           certain reserve technicians.

                   Subtitle C--Education and Training

Sec. 531. Eligibility of children of Reserves for Presidential 
           appointment to service academies.
Sec. 532. Selection of foreign students to receive instruction at 
           service academies.
Sec. 533. Revision of college tuition assistance program for members of 
           Marine Corps Platoon Leaders Class program.
Sec. 534. Review of allocation of Junior Reserve Officers Training Corps 
           units among the services.
Sec. 535. Authority for Naval Postgraduate School to enroll certain 
           defense industry civilians in specified programs relating to 
           defense product development.

           Subtitle D--Decorations, Awards, and Commendations

Sec. 541. Limitation on award of Bronze Star to members in receipt of 
           imminent danger pay.
Sec. 542. Consideration of proposals for posthumous or honorary 
           promotions or appointments of members or former members of 
           the Armed Forces and other qualified persons.
Sec. 543. Waiver of time limitations for award of certain decorations to 
           certain persons.
Sec. 544. Addition of certain information to markers on graves 
           containing remains of certain unknowns from the U.S.S. 
           Arizona who died in the Japanese attack on Pearl Harbor on 
           December 7, 1941.

[[Page 114 STAT. 1654A-7]]

Sec. 545. Sense of Congress on the court-martial conviction of Captain 
           Charles Butler McVay, Commander of the U.S.S. Indianapolis, 
           and on the courageous service of the crew of that vessel.
Sec. 546. Posthumous advancement on retired list of Rear Admiral Husband 
           E. Kimmel and Major General Walter C. Short, senior officers 
           in command in Hawaii on December 7, 1941.
Sec. 547. Commendation of citizens of Remy, France, for World War II 
           actions.
Sec. 548. Authority for award of the Medal of Honor to William H. 
           Pitsenbarger for valor during the Vietnam War.

        Subtitle E--Military Justice and Legal Assistance Matters

Sec. 551. Recognition by States of military testamentary instruments.
Sec. 552. Policy concerning rights of individuals whose names have been 
           entered into Department of Defense official criminal 
           investigative reports.
Sec. 553. Limitation on Secretarial authority to grant clemency for 
           military prisoners serving sentence of confinement for life 
           without eligibility for parole.
Sec. 554. Authority for civilian special agents of military department 
           criminal investigative organizations to execute warrants and 
           make arrests.
Sec. 555. Requirement for verbatim record in certain special court-
           martial cases.
Sec. 556. Commemoration of the 50th anniversary of the Uniform Code of 
           Military Justice.

               Subtitle F--Matters Relating to Recruiting

Sec. 561. Army recruiting pilot programs.
Sec. 562. Enhancement of recruitment market research and advertising 
           programs.
Sec. 563. Access to secondary schools for military recruiting purposes.
Sec. 564. Pilot program to enhance military recruiting by improving 
           military awareness of school counselors and educators.

                        Subtitle G--Other Matters

Sec. 571. Extension to end of calendar year of expiration date for 
           certain force drawdown transition authorities.
Sec. 572. Voluntary separation incentive.
Sec. 573. Congressional review period for assignment of women to duty on 
           submarines and for any proposed reconfiguration or design of 
           submarines to accommodate female crew members.
Sec. 574. Management and per diem requirements for members subject to 
           lengthy or numerous deployments.
Sec. 575. Pay in lieu of allowance for funeral honors duty.
Sec. 576. Test of ability of reserve component intelligence units and 
           personnel to meet current and emerging defense intelligence 
           needs.
Sec. 577. National Guard Challenge Program.
Sec. 578. Study of use of civilian contractor pilots for operational 
           support missions.
Sec. 579. Reimbursement for expenses incurred by members in connection 
           with cancellation of leave on short notice.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2001.
Sec. 602. Additional restructuring of basic pay rates for enlisted 
           members.
Sec. 603. Revised method for calculation of basic allowance for 
           subsistence.
Sec. 604. Family subsistence supplemental allowance for low-income 
           members of the Armed Forces.
Sec. 605. Basic allowance for housing.
Sec. 606. Additional amount available for fiscal year 2001 increase in 
           basic allowance for housing inside the United States.
Sec. 607. Equitable treatment of junior enlisted members in computation 
           of basic allowance for housing.
Sec. 608. Eligibility of members in grade E-4 to receive basic allowance 
           for housing while on sea duty.
Sec. 609. Personal money allowance for senior enlisted members of the 
           Armed Forces.
Sec. 610. Increased uniform allowances for officers.
Sec. 611. Cabinet-level authority to prescribe requirements and 
           allowance for clothing of enlisted members.
Sec. 612. Increase in monthly subsistence allowance for members of 
           precommissioning programs.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 621. Extension of certain bonuses and special pay authorities for 
           reserve forces.

[[Page 114 STAT. 1654A-8]]

Sec. 622. Extension of certain bonuses and special pay authorities for 
           nurse officer candidates, registered nurses, and nurse 
           anesthetists.
Sec. 623. Extension of authorities relating to payment of other bonuses 
           and special pays.
Sec. 624. Revision of enlistment bonus authority.
Sec. 625. Consistency of authorities for special pay for reserve medical 
           and dental officers.
Sec. 626. Elimination of required congressional notification before 
           implementation of certain special pay authority.
Sec. 627. Special pay for physician assistants of the Coast Guard.
Sec. 628. Authorization of special pay and accession bonus for pharmacy 
           officers.
Sec. 629. Correction of references to Air Force veterinarians.
Sec. 630. Career sea pay.
Sec. 631. Increased maximum rate of special duty assignment pay.
Sec. 632. Entitlement of members of the National Guard and other 
           reserves not on active duty to receive special duty 
           assignment pay.
Sec. 633. Authorization of retention bonus for members of the Armed 
           Forces qualified in a critical military skill.
Sec. 634. Entitlement of active duty officers of the Public Health 
           Service Corps to special pays and bonuses of health 
           professional officers of the Armed Forces.

            Subtitle C--Travel and Transportation Allowances

Sec. 641. Advance payments for temporary lodging of members and 
           dependents.
Sec. 642. Additional transportation allowance regarding baggage and 
           household effects.
Sec. 643. Incentive for shipping and storing household goods in less 
           than average weights.
Sec. 644. Equitable dislocation allowances for junior enlisted members.
Sec. 645. Authority to reimburse military recruiters, Senior ROTC cadre, 
           and military entrance processing personnel for certain 
           parking expenses.
Sec. 646. Expansion of funded student travel for dependents.

           Subtitle D--Retirement and Survivor Benefit Matters

Sec. 651. Exception to high-36 month retired pay computation for members 
           retired following a disciplinary reduction in grade.
Sec. 652. Increase in maximum number of Reserve retirement points that 
           may be credited in any year.
Sec. 653. Retirement from active reserve service after regular 
           retirement.
Sec. 654. Same treatment for Federal judges as for other Federal 
           officials regarding payment of military retired pay.
Sec. 655. Reserve component Survivor Benefit Plan spousal consent 
           requirement.
Sec. 656. Sense of Congress on increasing Survivor Benefit Plan 
           annuities for surviving spouses age 62 or older.
Sec. 657. Revision to special compensation authority to repeal exclusion 
           of uniformed services retirees in receipt of disability 
           retired pay.

                        Subtitle E--Other Matters

Sec. 661. Participation in Thrift Savings Plan.
Sec. 662. Determinations of income eligibility for special supplemental 
           food program.
Sec. 663. Billeting services for reserve members traveling for inactive-
           duty training.
Sec. 664. Settlement of claims for payments for unused accrued leave and 
           for retired pay.
Sec. 665. Additional benefits and protections for personnel incurring 
           injury, illness, or disease in the performance of funeral 
           honors duty.
Sec. 666. Authority for extension of deadline for filing claims 
           associated with capture and internment of certain persons by 
           North Vietnam.
Sec. 667. Back pay for members of the Navy and Marine Corps selected for 
           promotion while interned as prisoners of war during World War 
           II.
Sec. 668. Sense of Congress concerning funding for reserve components.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Provision of domiciliary and custodial care for CHAMPUS 
           beneficiaries and certain former CHAMPUS beneficiaries.
Sec. 702. Chiropractic health care for members on active duty.
Sec. 703. School-required physical examinations for certain minor 
           dependents.
Sec. 704. Two-year extension of dental and medical benefits for 
           surviving dependents of certain deceased members.

[[Page 114 STAT. 1654A-9]]

Sec. 705. Two-year extension of authority for use of contract physicians 
           at military entrance processing stations and elsewhere 
           outside medical treatment facilities.
Sec. 706. Medical and dental care for Medal of Honor recipients.

                     Subtitle B--Senior Health Care

Sec. 711. Implementation of TRICARE senior pharmacy program.
Sec. 712. Conditions for eligibility for CHAMPUS and TRICARE upon the 
           attainment of age 65; expansion and modification of medicare 
           subvention project.
Sec. 713. Accrual funding for health care for medicare-eligible retirees 
           and dependents.

                       Subtitle C--TRICARE Program

Sec. 721. Improvement of access to health care under the TRICARE 
           program.
Sec. 722. Additional beneficiaries under TRICARE Prime Remote program in 
           the continental United States.
Sec. 723. Modernization of TRICARE business practices and increase of 
           use of military treatment facilities.
Sec. 724. Extension of TRICARE managed care support contracts.
Sec. 725. Report on protections against health care providers seeking 
           direct reimbursement from members of the uniformed services.
Sec. 726. Voluntary termination of enrollment in TRICARE retiree dental 
           program.
Sec. 727. Claims processing improvements.
Sec. 728. Prior authorizations for certain referrals and 
           nonavailability-of-health-care statements.

                   Subtitle D--Demonstration Projects

Sec. 731. Demonstration project for expanded access to mental health 
           counselors.
Sec. 732. Teleradiology demonstration project.
Sec. 733. Health care management demonstration program.

    Subtitle E--Joint Initiatives With Department of Veterans Affairs

Sec. 741. VA-DOD sharing agreements for health services.
Sec. 742. Processes for patient safety in military and veterans health 
           care systems.
Sec. 743. Cooperation in developing pharmaceutical identification 
           technology.

                        Subtitle F--Other Matters

Sec. 751. Management of anthrax vaccine immunization program.
Sec. 752. Elimination of copayments for immediate family.
Sec. 753. Medical informatics.
Sec. 754. Patient care reporting and management system.
Sec. 755. Augmentation of Army Medical Department by detailing Reserve 
           officers of the Public Health Service.
Sec. 756. Privacy of Department of Defense medical records.
Sec. 757. Authority to establish special locality-based reimbursement 
           rates; reports.
Sec. 758. Reimbursement for certain travel expenses.
Sec. 759. Reduction of cap on payments.
Sec. 760. Training in health care management and administration.
Sec. 761. Studies on feasibility of sharing biomedical research 
           facility.
Sec. 762. Study on comparability of coverage for physical, speech, and 
           occupational therapies.

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

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

Sec. 801. Department of Defense acquisition pilot programs.
Sec. 802. Multiyear services contracts.
Sec. 803. Clarification and extension of authority to carry out certain 
           prototype projects.
Sec. 804. Clarification of authority of Comptroller General to review 
           records of participants in certain prototype projects.
Sec. 805. Extension of time period of limitation on procurement of ball 
           bearings and roller bearings.
Sec. 806. Reporting requirements relating to multiyear contracts.
Sec. 807. Eligibility of small business concerns owned and controlled by 
           women for assistance under the mentor-protege program.
Sec. 808. Qualifications required for employment and assignment in 
           contracting positions.

[[Page 114 STAT. 1654A-10]]

Sec. 809. Revision of authority for solutions-based contracting pilot 
           program.
Sec. 810. Procurement notice of contracting opportunities through 
           electronic means.

                   Subtitle B--Information Technology

Sec. 811. Acquisition and management of information technology.
Sec. 812. Tracking and management of information technology purchases.
Sec. 813. Appropriate use of requirements regarding experience and 
           education of contractor personnel in the procurement of 
           information technology services.
Sec. 814. Navy-Marine Corps Intranet.
Sec. 815. Sense of Congress regarding information technology systems for 
           Guard and Reserve components.

              Subtitle C--Other Acquisition-Related Matters

Sec. 821. Improvements in procurements of services.
Sec. 822. Financial analysis of use of dual rates for quantifying 
           overhead costs at Army ammunition plants.
Sec. 823. Repeal of prohibition on use of Department of Defense funds 
           for procurement of nuclear-capable shipyard crane from a 
           foreign source.
Sec. 824. Extension of waiver period for live-fire survivability testing 
           for MH-47E and MH-60K helicopter modification programs.
Sec. 825. Compliance with existing law regarding purchases of equipment 
           and products.
Sec. 826. Requirement to disregard certain agreements in awarding 
           contracts for the purchase of firearms or ammunition.

                     Subtitle D--Studies and Reports

Sec. 831. Study on impact of foreign sourcing of systems on long-term 
           military readiness and related industrial infrastructure.
Sec. 832. Study of policies and procedures for transfer of commercial 
           activities.
Sec. 833. Study and report on practice of contract bundling in military 
           construction contracts.
Sec. 834. Requirement to conduct study on contract bundling.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Overall supervision of Department of Defense activities for 
           combating terrorism.
Sec. 902. Change of title of certain positions in the Headquarters, 
           Marine Corps.
Sec. 903. Clarification of scope of Inspector General authorities under 
           military whistleblower law.
Sec. 904. Policy to ensure conduct of science and technology programs so 
           as to foster the transition of science and technology to 
           higher levels of research, development, test, and evaluation.
Sec. 905. Additional components of Chairman of the Joint Chiefs of Staff 
           annual report on combatant command requirements.

             Subtitle B--Department of Defense Organizations

Sec. 911. Western Hemisphere Institute for Security Cooperation.
Sec. 912. Department of Defense regional centers for security studies.
Sec. 913. Change in name of Armed Forces Staff College to Joint Forces 
           Staff College.
Sec. 914. Special authority for administration of Navy Fisher Houses.
Sec. 915. Supervisory control of Armed Forces Retirement Home board by 
           Secretary of Defense.
Sec. 916. Semiannual report on Joint Requirements Oversight Council 
           reform initiative.
Sec. 917. Comptroller General review of operations of Defense Logistics 
           Agency.
Sec. 918. Comptroller General review of operations of Defense 
           Information Systems Agency.

                    Subtitle C--Information Security

Sec. 921. Institute for Defense Computer Security and Information 
           Protection.
Sec. 922. Information security scholarship program.

                           Subtitle D--Reports

Sec. 931. Date of submittal of reports on shortfalls in equipment 
           procurement and military construction for the reserve 
           components in future-years defense programs.

[[Page 114 STAT. 1654A-11]]

Sec. 932. Report on number of personnel assigned to legislative liaison 
           functions.
Sec. 933. Joint report on establishment of national collaborative 
           information analysis capability.
Sec. 934. Network centric warfare.
Sec. 935. Report on Air Force Institute of Technology.

                        Subtitle E--Other Matters

Sec. 941. Flexibility in implementation of limitation on major 
           Department of Defense headquarters activities personnel.
Sec. 942. Consolidation of certain Navy gift funds.
Sec. 943. Temporary authority to dispose of a gift previously accepted 
           for the Naval Academy.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec.1001.Transfer authority.
Sec.1002.Incorporation of classified annex.
Sec.1003.Authorization of emergency supplemental appropriations for 
           fiscal year 2000.
Sec.1004.United States contribution to NATO common-funded budgets in 
           fiscal year 2001.
Sec.1005.Limitation on funds for Bosnia and Kosovo peacekeeping 
           operations for fiscal year 2001.
Sec.1006.Requirement for prompt payment of contract vouchers.
Sec.1007.Plan for prompt recording of obligations of funds for 
           contractual transactions.
Sec.1008.Electronic submission and processing of claims for contract 
           payments.
Sec.1009.Administrative offsets for overpayment of transportation costs.
Sec.1010.Interest penalties for late payment of interim payments due 
           under Government service contracts.

                 Subtitle B--Naval Vessels and Shipyards

Sec.1011.Revisions to national defense features program.
Sec.1012.Sense of Congress on the naming of the CVN-77 aircraft carrier.
Sec.1013.Authority to transfer naval vessels to certain foreign 
           countries.
Sec.1014.Authority to consent to retransfer of alternative former naval 
           vessel by Government of Greece.

                   Subtitle C--Counter-Drug Activities

Sec.1021.Extension of authority to provide support for counter-drug 
           activities of Colombia.
Sec.1022.Report on Department of Defense expenditures to support foreign 
           counter-drug activities.
Sec.1023.Recommendations on expansion of support for counter-drug 
           activities.
Sec.1024.Review of riverine counter-drug program.
Sec.1025.Report on tethered aerostat radar system.
Sec.1026.Sense of Congress regarding use of Armed Forces for counter-
           drug and counter-terrorism activities.

         Subtitle D--Counterterrorism and Domestic Preparedness

Sec.1031.Preparedness of military installation first responders for 
           incidents involving weapons of mass destruction.
Sec.1032.Additional weapons of mass destruction civil support teams.
Sec.1033.Authority to provide loan guarantees to improve domestic 
           preparedness to combat cyberterrorism.
Sec.1034.Report on the status of domestic preparedness against the 
           threat of biological terrorism.
Sec.1035.Report on strategy, policies, and programs to combat domestic 
           terrorism.

                      Subtitle E--Strategic Forces

Sec.1041.Revised nuclear posture review.
Sec.1042.Plan for the long-term sustainment and modernization of United 
           States strategic nuclear forces.
Sec.1043.Modification of scope of waiver authority for limitation on 
           retirement or dismantlement of strategic nuclear delivery 
           systems.
Sec.1044.Report on the defeat of hardened and deeply buried targets.
Sec.1045.Sense of Congress on the maintenance of the strategic nuclear 
           triad.

            Subtitle F--Miscellaneous Reporting Requirements

Sec.1051.Management review of working-capital fund activities.

[[Page 114 STAT. 1654A-12]]

Sec.1052.Report on submarine rescue support vessels.
Sec.1053.Report on Federal Government progress in developing information 
           assurance strategies.
Sec.1054.Department of Defense process for decisionmaking in cases of 
           false claims.

           Subtitle G--Government Information Security Reform

Sec.1061.Coordination of Federal information policy.
Sec.1062.Responsibilities of certain agencies.
Sec.1063.Relationship of Defense Information Assurance Program to 
           Government-wide information security program.
Sec.1064.Technical and conforming amendments.
Sec.1065.Effective date.

                      Subtitle H--Security Matters

Sec.1071.Limitation on granting of security clearances.
Sec.1072.Process for prioritizing background investigations for security 
           clearances for Department of Defense personnel and defense 
           contractor personnel.
Sec.1073.Authority to withhold certain sensitive information from public 
           disclosure.
Sec.1074.Expansion of authority to exempt geodetic products of the 
           Department of Defense from public disclosure.
Sec.1075.Expenditures for declassification activities.
Sec.1076.Enhanced access to criminal history record information for 
           national security and other purposes.
Sec.1077.Two-year extension of authority to engage in commercial 
           activities as security for intelligence collection 
           activities.
Sec.1078.Coordination of nuclear weapons secrecy policies and 
           consideration of health of workers at former Department of 
           Defense nuclear facilities.

                        Subtitle I--Other Matters

Sec.1081.Funds for administrative expenses under Defense Export Loan 
           Guarantee program.
Sec.1082.Transit pass program for Department of Defense personnel in 
           poor air quality areas.
Sec.1083.Transfer of Vietnam era TA-4 aircraft to nonprofit foundation.
Sec.1084.Transfer of 19th century cannon to museum.
Sec.1085.Fees for providing historical information to the public.
Sec.1086.Grants to American Red Cross for Armed Forces emergency 
           services.
Sec.1087.Technical and clerical amendments.
Sec.1088.Maximum size of parcel post packages transported overseas for 
           Armed Forces post offices.
Sec.1089.Sense of Congress regarding tax treatment of members receiving 
           special pay for duty subject to hostile fire or imminent 
           danger.
Sec.1090.Organization and management of Civil Air Patrol.
Sec.1091.Additional duties for Commission to Assess United States 
           National Security Space Management and Organization.
Sec.1092.Commission on the Future of the United States Aerospace 
           Industry.
Sec.1093.Drug addiction treatment.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

           Subtitle A--Civilian Personnel Management Generally

Sec.1101.Employment and compensation of employees for temporary 
           organizations established by law or Executive order.
Sec.1102.Assistive technology accommodations program.
Sec.1103.Extension of authority for voluntary separations in reductions 
           in force.
Sec.1104.Electronic maintenance of performance appraisal systems.
Sec.1105.Study on civilian personnel services.

              Subtitle B--Demonstration and Pilot Programs

Sec.1111.Pilot program for reengineering the equal employment 
           opportunity complaint process.
Sec.1112.Work safety demonstration program.
Sec.1113.Extension, expansion, and revision of authority for 
           experimental personnel program for scientific and technical 
           personnel.
Sec.1114.Clarification of personnel management authority under personnel 
           demonstration project.

                   Subtitle C--Educational Assistance

Sec.1121.Restructuring the restriction on degree training.
Sec.1122.Student loan repayment programs.

[[Page 114 STAT. 1654A-13]]

Sec.1123.Extension of authority for tuition reimbursement and training 
           for civilian employees in the defense acquisition workforce.

                       Subtitle D--Other Benefits

Sec.1131.Additional special pay for foreign language proficiency 
           beneficial for United States national security interests.
Sec.1132.Approval authority for cash awards in excess of $10,000.
Sec.1133.Leave for crews of certain vessels.
Sec.1134.Life insurance for emergency essential Department of Defense 
           employees.

               Subtitle E--Intelligence Civilian Personnel

Sec.1141.Expansion of defense civilian intelligence personnel system 
           positions.
Sec.1142.Increase in number of positions authorized for the Defense 
           Intelligence Senior Executive Service.

  Subtitle F--Voluntary Separation Incentive Pay and Early Retirement 
                                Authority

Sec.1151.Extension, revision, and expansion of authorities for use of 
           voluntary separation incentive pay and voluntary early 
           retirement.
Sec.1152.Department of Defense employee voluntary early retirement 
           authority.
Sec.1153.Limitations.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

               Subtitle A--Matters Related to Arms Control

Sec.1201.Support of United Nations-sponsored efforts to inspect and 
           monitor Iraqi weapons activities.
Sec.1202.Support of consultations on Arab and Israeli arms control and 
           regional security issues.
Sec.1203.Furnishing of nuclear test monitoring equipment to foreign 
           governments.
Sec.1204.Additional matters for annual report on transfers of militarily 
           sensitive technology to countries and entities of concern.

               Subtitle B--Matters Relating to the Balkans

Sec.1211.Annual report assessing effect of continued operations in the 
           Balkans region on readiness to execute the national military 
           strategy.
Sec.1212.Situation in the Balkans.
Sec.1213.Semiannual report on Kosovo peacekeeping.

Subtitle C--North Atlantic Treaty Organization and United States Forces 
                                in Europe

Sec.1221.NATO fair burdensharing.
Sec.1222.Repeal of restriction preventing cooperative airlift support 
           through acquisition and cross-servicing agreements.
Sec.1223.GAO study on the benefits and costs of United States military 
           engagement in Europe.

                        Subtitle D--Other Matters

Sec.1231.Joint data exchange center with Russian Federation on early 
           warning systems and notification of ballistic missile 
           launches.
Sec.1232.Report on sharing and exchange of ballistic missile launch 
           early warning data.
Sec.1233.Annual report of Communist Chinese military companies operating 
           in the United States.
Sec.1234.Adjustment of composite theoretical performance levels of high 
           performance computers.
Sec.1235.Increased authority to provide health care services as 
           humanitarian and civic assistance.
Sec.1236.Sense of Congress regarding the use of children as soldiers.
Sec.1237.Sense of Congress regarding undersea rescue and recovery.
Sec.1238.United States-China Security Review Commission.

   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.Prohibition on use of funds for elimination of conventional 
           weapons.
Sec.1304.Limitations on use of funds for fissile material storage 
           facility.
Sec.1305.Limitation on use of funds to support warhead dismantlement 
           processing.

[[Page 114 STAT. 1654A-14]]

Sec.1306.Agreement on nuclear weapons storage sites.
Sec.1307.Limitation on use of funds for construction of fossil fuel 
           energy plants; report.
Sec.1308.Reports on activities and assistance under cooperative threat 
           reduction programs.
Sec.1309.Russian chemical weapons elimination.
Sec.1310.Limitation on use of funds for elimination of weapons grade 
           plutonium program.
Sec.1311.Report on audits of Cooperative Threat Reduction programs.

  TITLE XIV--COMMISSION TO ASSESS THE THREAT TO THE UNITED STATES FROM 
                   ELECTROMAGNETIC PULSE (EMP) ATTACK

Sec.1401.Establishment of commission.
Sec.1402.Duties of commission.
Sec.1403.Reports.
Sec.1404.Powers.
Sec.1405.Commission procedures.
Sec.1406.Personnel matters.
Sec.1407.Miscellaneous administrative provisions.
Sec.1408.Funding.
Sec.1409.Termination of the commission.

     TITLE XV--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO

Sec.1501.Assistance for economic growth on Vieques.
Sec.1502.Conveyance of Naval Ammunition Support Detachment, Vieques 
           Island.
Sec.1503.Determination regarding continuation of Navy training.
Sec.1504.Actions if training is approved.
Sec.1505.Requirements if training is not approved or mandate for 
           referendum is vitiated.
Sec.1506.Certain properties exempt from conveyance or transfer.
Sec.1507.Moratorium on improvements at Fort Buchanan.
Sec.1508.Transfer and management of Conservation Zones.

TITLE XVI--GI BILL EDUCATIONAL ASSISTANCE AND VETERANS CLAIMS ASSISTANCE

                 Subtitle A--Veterans Education Benefits

Sec.1601.Additional opportunity for certain VEAP participants to enroll 
           in basic educational assistance under Montgomery GI Bill.
Sec.1602.Modification of authority to pay tuition for off-duty training 
           and education.

                 Subtitle B--Veterans Claims Assistance

Sec.1611.Clarification of Department of Veterans Affairs duty to assist.

                 TITLE XVII--ASSISTANCE TO FIREFIGHTERS

Sec.1701.Firefighter assistance.
Sec.1702.Volunteer fire assistance program.
Sec.1703.Burn research.
Sec.1704.Study and demonstration projects regarding cases of hepatitis C 
           among certain emergency response employees.
Sec.1705.Report on progress on spectrum sharing.
Sec.1706.Sale or donation of excess defense property to assist 
           firefighting agencies.
Sec.1707.Identification of defense technologies suitable for use, or 
           conversion for use, in providing fire and emergency medical 
           services.

                         TITLE XVIII--IMPACT AID

Sec.1801.Short title.
Sec.1802.Purpose.
Sec.1803.Payments relating to Federal acquisition of real property.
Sec.1804.Payments for eligible federally connected children.
Sec.1805.Maximum amount of basic support payments.
Sec.1806.Basic support payments for heavily impacted local educational 
           agencies.
Sec.1807.Basic support payments for local educational agencies affected 
           by removal of Federal property.
Sec.1808.Additional payments for local educational agencies with high 
           concentrations of children with severe disabilities.
Sec.1809.Application for payments under sections 8002 and 8003.
Sec.1810.Payments for sudden and substantial increases in attendance of 
           military dependents.
Sec.1811.Construction.

[[Page 114 STAT. 1654A-15]]

Sec.1812.State consideration of payments in providing State aid.
Sec.1813.Federal administration.
Sec.1814.Administrative hearings and judicial review.
Sec.1815.Forgiveness of overpayments.
Sec.1816.Definitions.
Sec.1817.Authorization of appropriations.
Sec.1818.Effective date.

            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 2000 
           projects.
Sec.2106.Modification of authority to carry out certain fiscal year 1999 
           projects.
Sec.2107.Modification of authority to carry out fiscal year 1998 
           project.
Sec.2108.Authority to accept funds for realignment of certain military 
           construction project, Fort Campbell, Kentucky.

                            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.2205.Modification of authority to carry out fiscal year 1997 project 
           at Marine Corps Combat Development Command, Quantico, 
           Virginia.

                         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.Energy conservation projects.
Sec.2403.Authorization of appropriations, Defense Agencies.
Sec.2404.Modification of authority to carry out certain fiscal year 1990 
           project.

   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.
Sec.2602.Authority to contribute to construction of airport tower, 
           Cheyenne Airport, Cheyenne, Wyoming.

         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 1998 
           projects.
Sec.2703.Extension of authorizations of certain fiscal year 1997 
           projects.
Sec.2704.Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec.2801.Joint use military construction projects.
Sec.2802.Exclusion of certain costs from determination of applicability 
           of limitation on use of funds for improvement of family 
           housing.
Sec.2803.Revision of space limitations for military family housing.

[[Page 114 STAT. 1654A-16]]

Sec.2804.Modification of lease authority for high-cost military family 
           housing.
Sec.2805.Provision of utilities and services under alternative authority 
           for acquisition and improvement of military housing.
Sec.2806.Extension of alternative authority for acquisition and 
           improvement of military housing.
Sec.2807.Expansion of definition of armory to include readiness centers.

         Subtitle B--Real Property and Facilities Administration

Sec.2811.Increase in threshold for notice and wait requirements for real 
           property transactions.
Sec.2812.Enhancement of authority of military departments to lease non-
           excess property.
Sec.2813.Conveyance authority regarding utility systems of military 
           departments.
Sec.2814.Permanent conveyance authority to improve property management.

            Subtitle C--Defense Base Closure and Realignment

Sec.2821.Scope of agreements to transfer property to redevelopment 
           authorities without consideration under the base closure 
           laws.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec.2831.Transfer of jurisdiction, Rock Island Arsenal, Illinois.
Sec.2832.Land conveyance, Army Reserve Center, Galesburg, Illinois.
Sec.2833.Land conveyance, Charles Melvin Price Support Center, Illinois.
Sec.2834.Land conveyance, Fort Riley, Kansas.
Sec.2835.Land conveyance, Fort Polk, Louisiana.
Sec.2836.Land conveyance, Army Reserve Center, Winona, Minnesota.
Sec.2837.Land conveyance, Fort Dix, New Jersey.
Sec.2838.Land conveyance, Nike Site 43, Elrama, Pennsylvania.
Sec.2839.Land exchange, Army Reserve Local Training Center, Chattanooga, 
           Tennessee.
Sec.2840.Land exchange, Fort Hood, Texas.
Sec.2841.Land conveyance, Fort Pickett, Virginia.
Sec.2842.Land conveyance, Fort Lawton, Washington.
Sec.2843.Land conveyance, Vancouver Barracks, Washington.

                        Part II--Navy Conveyances

Sec.2846.Modification of land conveyance, Marine Corps Air Station, El 
           Toro, California.
Sec.2847.Modification of authority for Oxnard Harbor District, Port 
           Hueneme, California, to use certain Navy property.
Sec.2848.Transfer of jurisdiction, Marine Corps Air Station, Miramar, 
           California.
Sec.2849.Land exchange, Marine Corps Recruit Depot, San Diego, 
           California.
Sec.2850.Lease of property, Naval Air Station, Pensacola, Florida.
Sec.2851.Land conveyance, Naval Reserve Center, Tampa, Florida.
Sec.2852.Modification of land conveyance, Defense Fuel Supply Point, 
           Casco Bay, Maine.
Sec.2853.Land conveyance, Naval Computer and Telecommunications Station, 
           Cutler, Maine.
Sec.2854.Modification of land conveyance authority, former Naval 
           Training Center, Bainbridge, Cecil County, Maryland.
Sec.2855.Land conveyance, Marine Corps Base, Camp Lejeune, North 
           Carolina.
Sec.2856.Land exchange, Naval Air Reserve Center, Columbus, Ohio.
Sec.2857.Land conveyance, Naval Station, Bremerton, Washington.

                     Part III--Air Force Conveyances

Sec.2861.Land conveyance, Los Angeles Air Force Base, California.
Sec.2862.Land conveyance, Point Arena Air Force Station, California.
Sec.2863.Land conveyance, Lowry Air Force Base, Colorado.
Sec.2864.Land conveyance, Wright-Patterson Air Force Base, Ohio.
Sec.2865.Modification of land conveyance, Ellsworth Air Force Base, 
           South Dakota.
Sec.2866.Land conveyance, Mukilteo Tank Farm, Everett, Washington.

                       Part IV--Other Conveyances

Sec.2871.Land conveyance, Army and Air Force Exchange Service property, 
           Farmers Branch, Texas.
Sec.2872.Land conveyance, former National Ground Intelligence Center, 
           Charlottesville, Virginia.

                        Subtitle E--Other Matters

Sec.2881.Relation of easement authority to leased parkland, Marine Corps 
           Base, Camp Pendleton, California.

[[Page 114 STAT. 1654A-17]]

Sec.2882.Extension of demonstration project for purchase of fire, 
           security, police, public works, and utility services from 
           local government agencies.
Sec.2883.Acceptance and use of gifts for construction of third building 
           at United States Air Force Museum, Wright-Patterson Air Force 
           Base, Ohio.
Sec.2884.Development of Marine Corps Heritage Center at Marine Corps 
           Base, Quantico, Virginia.
Sec.2885.Activities relating to greenbelt at Fallon Naval Air Station, 
           Nevada.
Sec.2886.Establishment of World War II memorial on Guam.
Sec.2887.Naming of Army missile testing range at Kwajalein Atoll as the 
           Ronald Reagan Ballistic Missile Defense Test Site at 
           Kwajalein Atoll.
Sec.2888.Designation of building at Fort Belvoir, Virginia, in honor of 
           Andrew T. McNamara.
Sec.2889.Designation of Balboa Naval Hospital, San Diego, California, in 
           honor of Bob Wilson, a former Member of the House of 
           Representatives.
Sec.2890.Sense of Congress regarding importance of expansion of National 
           Training Center, Fort Irwin, California.
Sec.2891.Sense of Congress regarding land transfers at Melrose Range, 
           New Mexico, and Yakima Training Center, Washington.

 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 restoration and waste management.
Sec.3103.Other defense activities.
Sec.3104.Defense environmental management privatization.
Sec.3105.Defense nuclear waste disposal.

                Subtitle B--Recurring General Provisions

Sec.3121.Reprogramming.
Sec.3122.Limits on general plant projects.
Sec.3123.Limits on construction projects.
Sec.3124.Fund transfer authority.
Sec.3125.Authority for conceptual and construction design.
Sec.3126.Authority for emergency planning, design, and construction 
           activities.
Sec.3127.Funds available for all national security programs of the 
           Department of Energy.
Sec.3128.Availability of funds.
Sec.3129.Transfers of defense environmental management funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec.3131.Funding for termination costs of River Protection Project, 
           Richland, Washington.
Sec.3132.Enhanced cooperation between National Nuclear Security 
           Administration and Ballistic Missile Defense Organization.
Sec.3133.Reprogramming of funds available for infrastructure upgrades or 
           maintenance in certain accounts of the National Nuclear 
           Security Administration.
Sec.3134.Adjustment of composite theoretical performance levels for 
           post-shipment verification reports on advanced supercomputer 
           sales to certain foreign nations.
Sec.3135.Modification of counterintelligence polygraph program.
Sec.3136.Employee incentives for employees at closure project 
           facilities.
Sec.3137.Continuation of processing, treatment, and disposition of 
           legacy nuclear materials.
Sec.3138.Limitation on use of certain funds pending certification of 
           compliance with Formerly Utilized Sites Remedial Action 
           Program funding prohibition.
Sec.3139.Conceptual design for Subsurface Geosciences Laboratory at 
           Idaho National Engineering and Environmental Laboratory, 
           Idaho Falls, Idaho.
Sec.3140.Report on National Ignition Facility, Lawrence Livermore 
           National Laboratory, Livermore, California.
Sec.3141.River Protection Project, Richland, Washington.
Sec.3142.Report on tank waste remediation system, Hanford Reservation, 
           Richland, Washington.

[[Page 114 STAT. 1654A-18]]

Subtitle D--Matters Relating to Management of National Nuclear Security 
                             Administration

Sec.3151.Term of office of person first appointed as Under Secretary for 
           Nuclear Security of the Department of Energy.
Sec.3152.Membership of Under Secretary for Nuclear Security on the Joint 
           Nuclear Weapons Council.
Sec.3153.Organization plan for field offices of the National Nuclear 
           Security Administration.
Sec.3154.Required contents of future-years nuclear security program.
Sec.3155.Future-years nuclear security program for fiscal year 2001.
Sec.3156.Engineering and manufacturing research, development, and 
           demonstration by plant managers of certain nuclear weapons 
           production plants.
Sec.3157.Prohibition on individuals engaging in concurrent service or 
           duties within National Nuclear Security Administration and 
           outside that Administration but within Department of Energy.
Sec.3158.Annual plan for obligation of funds of the National Nuclear 
           Security Administration.
Sec.3159.Authority to reorganize National Nuclear Security 
           Administration.

        Subtitle E--National Laboratories Partnership Improvement

Sec.3161.Technology Infrastructure Pilot Program.
Sec.3162.Report on small business participation in National Nuclear 
           Security Administration activities.
Sec.3163.Study and report related to improving mission effectiveness, 
           partnerships, and technology transfer at national security 
           laboratories and nuclear weapons production facilities.
Sec.3164.Report on effectiveness of National Nuclear Security 
           Administration technology development partnerships with non-
           Federal entities.
Sec.3165.Definitions.

    Subtitle F--Matters Relating to Defense Nuclear Nonproliferation

Sec.3171.Annual report on status of nuclear materials protection, 
           control, and accounting program.
Sec.3172.Nuclear Cities Initiative.
Sec.3173.Department of Energy nonproliferation monitoring.
Sec.3174.Sense of Congress on the need for coordination of 
           nonproliferation programs.
Sec.3175.Limitation on use of funds for International Nuclear Safety 
           Program.

                        Subtitle G--Other Matters

Sec.3191.Extension of authority for appointment of certain scientific, 
           engineering, and technical personnel.
Sec.3192.Biennial report containing update on nuclear test readiness 
           postures.
Sec.3193.Frequency of reports on inadvertent releases of Restricted Data 
           and Formerly Restricted Data.
Sec.3194.Form of certifications regarding the safety or reliability of 
           the nuclear weapons stockpile.
Sec.3195.Authority to provide certificate of commendation to Department 
           of Energy and contractor employees for exemplary service in 
           stockpile stewardship and security.
Sec.3196.Cooperative research and development agreements for government-
           owned, contractor-operated laboratories.
Sec.3197.Office of Arctic Energy.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec.3201.Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec.3301.Authorized uses of stockpile funds.
Sec.3302.Increased receipts under prior disposal authority.
Sec.3303.Disposal of titanium.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec.3401.Minimum price of petroleum sold from certain naval petroleum 
           reserves.
Sec.3402.Repeal of authority to contract for cooperative or unit plans 
           affecting Naval Petroleum Reserve Numbered 1.
Sec.3403.Disposal of Oil Shale Reserve Numbered 2.

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec.3501.Authorization of appropriations for fiscal year 2001.

[[Page 114 STAT. 1654A-19]]

Sec.3502.Scrapping of National Defense Reserve Fleet vessels.
Sec.3503.Authority to convey National Defense Reserve Fleet vessel, 
           Glacier.
Sec.3504.Maritime intermodal research.
Sec.3505.Maritime research and technology development.
Sec.3506.Reporting of administered and oversight funds.

 TITLE XXXVI--ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION PROGRAM

Sec.3601.Short title.
Sec.3602.Findings; sense of Congress.

 Subtitle A--Establishment of Compensation Program and Compensation Fund

Sec.3611.Establishment of Energy Employees Occupational Illness 
           Compensation Program.
Sec.3612.Establishment of Energy Employees Occupational Illness 
           Compensation Fund.
Sec.3613.Legislative proposal.
Sec.3614.Authorization of appropriations.

                   Subtitle B--Program Administration

Sec.3621.Definitions for program administration.
Sec.3622.Expansion of list of beryllium vendors.
Sec.3623.Exposure in the performance of duty.
Sec.3624.Advisory Board on Radiation and Worker Health.
Sec.3625.Responsibilities of Secretary of Health and Human Services.
Sec.3626.Designation of additional members of Special Exposure Cohort.
Sec.3627.Separate treatment of chronic silicosis.
Sec.3628.Compensation and benefits to be provided.
Sec.3629.Medical benefits.
Sec.3630.Separate treatment of certain uranium employees.
Sec.3631.Assistance for claimants and potential claimants.

Subtitle C--Treatment, Coordination, and Forfeiture of Compensation and 
                                Benefits

Sec.3641.Offset for certain payments.
Sec.3642.Subrogation of the United States.
Sec.3643.Payment in full settlement of claims.
Sec.3644.Exclusivity of remedy against the United States and against 
           contractors and subcontractors.
Sec.3645.Election of remedy for beryllium employees and atomic weapons 
           employees.
Sec.3646.Certification of treatment of payments under other laws.
Sec.3647.Claims not assignable or transferable; choice of remedies.
Sec.3648.Attorney fees.
Sec.3649.Certain claims not affected by awards of damages.
Sec.3650.Forfeiture of benefits by convicted felons.
Sec.3651.Coordination with other Federal radiation compensation laws.

    Subtitle D--Assistance in State Workers' Compensation Proceedings

Sec.3661.Agreements with States.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    For purposes of this Act, the term ``congressional defense 
committees'' means--
            (1) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.

[[Page 114 STAT. 1654A-20]]

Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Defense Health Program.

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority.
Sec. 112. Increase in limitation on number of bunker defeat munitions 
           that may be acquired.
Sec. 113. Reports and limitations relating to Army transformation.

                        Subtitle C--Navy Programs

Sec. 121. CVNX-1 nuclear aircraft carrier program.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. Virginia class submarine program.
Sec. 124. Limitation during fiscal year 2001 on changes in submarine 
           force structure.
Sec. 125. ADC(X) ship program.
Sec. 126. Refueling and complex overhaul program of the U.S.S. Dwight D. 
           Eisenhower.
Sec. 127. Analysis of certain shipbuilding programs.
Sec. 128. Helicopter support of FFG-7 frigates during fiscal year 2001.
Sec. 129. V-22 cockpit aircraft voice and flight data recorders.

                     Subtitle D--Air Force Programs

Sec. 131. Annual report on B-2 bomber.
Sec. 132. Report on modernization of Air National Guard F-16A units.

                       Subtitle E--Joint Programs

Sec. 141. Study of final assembly and checkout alternatives for the 
           Joint Strike Fighter program.

                  Subtitle F--Chemical Demilitarization

Sec. 151. Pueblo Chemical Depot chemical agent and munitions destruction 
           technologies.
Sec. 152. Report on assessment of need for Federal economic assistance 
           for communities impacted by chemical demilitarization 
           activities.
Sec. 153. Prohibition against disposal of non-stockpile chemical warfare 
           material at Anniston chemical stockpile disposal facility.

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for procurement for the Army as follows:
            (1) For aircraft, $1,550,012,000.
            (2) For missiles, $1,320,681,000.
            (3) For weapons and tracked combat vehicles, $2,436,324,000.
            (4) For ammunition, $1,179,916,000.
            (5) For other procurement, $4,235,719,000.
            (6) For chemical agents and munitions destruction, 
        $980,100,000, 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.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 2001 for procurement for the Navy as follows:

[[Page 114 STAT. 1654A-21]]

            (1) For aircraft, $8,394,338,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,443,600,000.
            (3) For shipbuilding and conversion, $12,826,919,000.
            (4) For other procurement, $3,380,680,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2001 for procurement for the Marine Corps in the amount 
of $1,212,768,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2001 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $487,749,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for procurement for the Air Force as follows:
            (1) For aircraft, $9,923,868,000.
            (2) For missiles, $2,863,778,000.
            (3) For ammunition, $646,808,000.
            (4) For other procurement, $7,711,647,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    (a) Amount Authorized.--Funds are hereby authorized to be 
appropriated for fiscal year 2001 for Defense-wide procurement in the 
amount of $2,278,408,000.
    (b) Amount for National Missile Defense.--Of the funds authorized to 
be appropriated in subsection (a), $74,530,000 shall be available for 
the National Missile Defense program.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for procurement for the Inspector General of the Department of Defense 
in the amount of $3,300,000.

SEC. 106. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $290,006,000.

                        Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY.

    (a) M2A3 Bradley Fighting Vehicle.--(1) Beginning with the fiscal 
year 2001 program year, the Secretary of the Army may, in accordance 
with section 2306b of title 10, United States Code, enter into one or 
more multiyear contracts for procurement of M2A3 Bradley fighting 
vehicles.
    (2) The Secretary of the Army may execute a contract authorized by 
paragraph (1) only after--
            (A) there is a successful completion of a M2A3 Bradley 
        initial operational test and evaluation (IOT&E); and
            (B) the Secretary certifies in writing to the congressional 
        defense committees that the vehicle met all required test 
        parameters.

    (b) Utility Helicopters.--Beginning with the fiscal year 2002 
program year, the Secretary of the Army may, in accordance with

[[Page 114 STAT. 1654A-22]]

section 2306b of title 10, United States Code, enter into one or more 
multiyear contracts for procurement of UH-60 Blackhawk utility 
helicopters and, acting as executive agent for the Department of the 
Navy, CH-60 Knighthawk utility helicopters.

SEC. 112. INCREASE IN LIMITATION ON NUMBER OF BUNKER DEFEAT MUNITIONS 
            THAT MAY BE ACQUIRED.

    Section 116(2) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2682) is amended by striking 
``6,000'' and inserting ``8,500''.

SEC. 113. REPORTS AND LIMITATIONS RELATING TO ARMY TRANSFORMATION.

    (a) Secretary of the Army Report on Objective Force Development 
Process.--The Secretary of the Army shall submit to the congressional 
defense committees a report on the process for developing the objective 
force in the transformation of the Army. The report shall include the 
following:
            (1) The operational environments envisioned for the 
        objective force.
            (2) The threat assumptions on which research and development 
        efforts for transformation of the Army into the objective force 
        are based.
            (3) The potential operational and organizational concepts 
        for the objective force.
            (4) The operational requirements anticipated for the 
        operational requirements document of the objective force.
            (5) The anticipated schedule of Army transformation 
        activities through fiscal year 2012, together with--
                    (A) the projected funding requirements through that 
                fiscal year for research and development activities and 
                procurement activities related to transition to the 
                objective force; and
                    (B) a summary of the anticipated investments of the 
                Defense Advanced Research Projects Agency in programs 
                designed to lead to the fielding of future combat 
                systems for the objective force.
            (6) A proposed plan for the comparison referred to in 
        subsection (c).

If any of the information required by paragraphs (1) through (5) is not 
available at the time the report is submitted, the Secretary shall 
include in the report the anticipated schedule for the availability of 
that information.
    (b) Secretary of Defense Report on Objective Force Development 
Process.--Not later than March 1, 2001, the Secretary of Defense shall 
submit to the congressional defense committees a report on the process 
for developing the objective force in the transformation of the Army. 
The report shall include the following:
            (1) The joint warfighting requirements that will be 
        supported by the fielding of the objective force, together with 
        a description of the adjustments that are planned to be made in 
        the war plans of the commanders of the unified combatant 
        commands in relation to the fielding of the objective force.
            (2) The changes in lift requirements that may result from 
        the establishment and fielding of the combat brigades of the 
        objective force.

[[Page 114 STAT. 1654A-23]]

            (3) The evaluation process that will be used to support 
        decisionmaking on the course of the Army transformation, 
        including a description of the operational evaluations and 
        experimentation that will be used to validate the operational 
        requirements for the operational requirements document of the 
        objective force.

If any of the information required by paragraphs (1) through (3) is not 
available at the time the report is submitted, the Secretary shall 
include in the report the anticipated schedule for the availability of 
that information.
    (c) Costs and Effectiveness of Medium Armored Combat Vehicles for 
the Interim Brigade Combat Teams.--(1) The Secretary of the Army shall 
develop a plan for comparing--
            (A) the costs and operational effectiveness of the infantry 
        carrier variant of the interim armored vehicles selected for the 
        infantry battalions of the interim brigade combat teams; and
            (B) the costs and operational effectiveness of the troop-
        carrying medium armored vehicles currently in the Army inventory 
        for the use of infantry battalions.

    (2) The Secretary of the Army may not carry out the comparison 
described in paragraph (1) until the Director of Operational Test and 
Evaluation of the Department of Defense approves the plan for that 
comparison developed under that paragraph.
    (d) Limitation Pending Receipt of Secretary of the Army Report.--Not 
more than 80 percent of the amount appropriated for fiscal year 2001 for 
the procurement of armored vehicles in the family of new medium armored 
vehicles may be obligated until--
            (1) the Secretary of the Army submits to the congressional 
        defense committees the report required under subsection (a); and
            (2) a period of 30 days has elapsed from the date of the 
        submittal of such report.

    (e) Limitation Pending Comparison and Certification.--No funds 
appropriated or otherwise made available to the Department of the Army 
for any fiscal year may be obligated for acquisition of medium armored 
combat vehicles to equip a third interim brigade combat team until--
            (1) the plan for a comparison of costs and operational 
        effectiveness developed under subsection (c)(1), as approved 
        under subsection (c)(2), is carried out;
            (2) the Secretary of Defense submits to the congressional 
        defense committees, after the completion of the comparison 
        referred to in paragraph (1), a certification that--
                    (A) the Secretary approves of the obligation of 
                funds for that purpose; and
                    (B) the force structure resulting from the 
                acquisition and subsequent operational capability of 
                interim brigade combat teams will not diminish the 
                combat power of the Army; and
            (3) a period of 30 days has elapsed from the date of the 
        certification under paragraph (2).

    (f ) Definitions.--In this section:
            (1) The term ``transformation'', with respect to the Army, 
        means the actions being undertaken to transform the Army, as it 
        is constituted in terms of organization, equipment, and doctrine 
        in 2000, into the objective force.

[[Page 114 STAT. 1654A-24]]

            (2) The term ``objective force'' means the Army that has the 
        organizational structure, the most advanced equipment that early 
        twenty-first century science and technology can provide, and the 
        appropriate doctrine to ensure that the Army is responsive, 
        deployable, agile, versatile, lethal, survivable, and 
        sustainable for the full spectrum of the operations anticipated 
        to be required of the Army during the early years of the twenty-
        first century following 2010.
            (3) The term ``interim brigade combat team'' means an Army 
        brigade that is designated by the Secretary of the Army as a 
        brigade combat team and is reorganized and equipped with 
        currently available equipment in a configuration that 
        effectuates an evolutionary advancement toward transformation of 
        the Army to the objective force.

                        Subtitle C--Navy Programs

SEC. 121. CVNX-1 NUCLEAR AIRCRAFT CARRIER PROGRAM.

    (a) Authorization of Ship.--The Secretary of the Navy is authorized 
to procure the aircraft carrier to be designated CVNX-1.
    (b) Advance Procurement and Construction.--The Secretary may enter 
into one or more contracts for the advance procurement and advance 
construction of components for the ship authorized under subsection (a).
    (c) Amount Authorized From SCN Account.--Of the amounts authorized 
to be appropriated under section 102(a)(3) for fiscal year 2001, 
$21,869,000 is available for the advance procurement and advance 
construction of components (including nuclear components) for the CVNX-1 
aircraft carrier program.

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

    (a) Economical Multiyear Procurement of Previously Authorized 
Vessels and One Additional Vessel.--(1) Subsection (b) of section 122 of 
the National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2446), as amended by section 122(a) of Public Law 
106-65 (113 Stat. 534), is further amended by striking ``a total of 18 
Arleigh Burke class destroyers'' in the first sentence and all that 
follows through the period at the end of that sentence and inserting 
``Arleigh Burke class destroyers in accordance with this subsection and 
subsection (a)(4) at procurement rates not in excess of three ships in 
each of the fiscal years beginning after September 30, 1998, and before 
October 1, 2005. The authority under the preceding sentence is subject 
to the availability of appropriations for such destroyers.''.
    (2) The heading for such subsection is amended by striking ``18''.
    (b) Economical Rate of Procurement.--It is the sense of Congress 
that, for the procurement of the Arleigh Burke class destroyers to be 
procured after fiscal year 2001 under multiyear contracts authorized 
under section 122(b) of Public Law 104-201, as amended by subsection 
(a)--
            (1) the Secretary of the Navy should--
                    (A) achieve the most economical rate of procurement; 
                and

[[Page 114 STAT. 1654A-25]]

                    (B) enter into such contracts for advance 
                procurement as may be necessary to achieve that rate of 
                procurement;
            (2) the most economical rate of procurement would be 
        achieved by procuring three of those vessels in each of fiscal 
        years 2002 and 2003 and procuring another vessel in fiscal year 
        2004; and
            (3) the Secretary has the authority under section 122(b) of 
        Public Law 104-201 (110 Stat. 2446) and subsections (b) and (c) 
        of section 122 of Public Law 106-65 (113 Stat. 534) to provide 
        for procurement at the most economical rate, as described in 
        paragraph (2).

    (c) Update of 1993 Report on DDG-51 Class Ships.--(1) The Secretary 
of the Navy shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives, not later than November 1, 
2000, a report that updates the information provided in the report of 
the Secretary of the Navy entitled the ``Arleigh Burke (DDG-51) Class 
Industrial Base Study of 1993''. The Secretary shall transmit a copy of 
the updated report to the Comptroller General not later than the date on 
which the Secretary submits the report to the committees.
    (2) The Comptroller General shall review the updated report 
submitted under paragraph (1) and, not later than December 1, 2000, 
submit to the Committees on Armed Services of the Senate and House of 
Representatives the Comptroller General's comments on the updated 
report.

SEC. 123. VIRGINIA CLASS SUBMARINE PROGRAM.

    (a) Amounts Authorized From SCN Account.--Of the amounts authorized 
to be appropriated by section 102(a)(3) for fiscal year 2001, 
$1,706,234,000 is available for the Virginia class submarine program.
    (b) Contract Authority.--(1) The Secretary of the Navy is authorized 
to enter into a contract for the procurement of up to five Virginia 
class submarines, including the procurement of material in economic 
order quantities when cost savings are achievable, during fiscal years 
2003 through 2006. The submarines authorized under the preceding 
sentence are in addition to the submarines authorized under section 
121(b) of the National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105-85; 111 Stat. 1648).
    (2) A contract entered into under paragraph (1) shall provide that 
any obligation of the United States to make a payment under the contract 
is subject to the availability of appropriations for that purpose.
    (c) Shipbuilder Teaming.--Paragraphs (2)(A), (3), and (4) of section 
121(b) of Public Law 105-85 apply to the procurement of submarines under 
this section.
    (d) Limitation of Liability.--If a contract entered into under this 
section is terminated, the United States shall not be liable for 
termination costs in excess of the total of the amounts appropriated for 
the Virginia class submarine program that remain available for the 
program.
    (e) Report Requirement.--At that same time that the President 
submits the budget for fiscal year 2002 to Congress under section 
1105(a) of title 31, United States Code, the Secretary of Defense shall 
submit to the congressional defense committees a report on the Navy's 
fleet of fast attack submarines. The report shall include the following:

[[Page 114 STAT. 1654A-26]]

            (1) A plan for maintaining at least 55 fast attack 
        submarines in commissioned service through 2015, including, by 
        2015, 18 Virginia class submarines.
            (2) Two assessments of the potential savings that would be 
        achieved under the Virginia class submarine program if the 
        production rate for that program were at least two submarines 
        each fiscal year, as follows:
                    (A) An assessment if that were the production rate 
                beginning in fiscal year 2004.
                    (B) An assessment if that were the production rate 
                beginning in fiscal year 2006.
            (3) An analysis of the advantages and disadvantages of 
        various contracting strategies for the Virginia class submarine 
        program, including one or more multiyear procurement strategies 
        and one or more strategies for block buy with economic order 
        quantity.

SEC. 124. LIMITATION DURING FISCAL YEAR 2001 ON CHANGES IN SUBMARINE 
            FORCE STRUCTURE.

    (a) Limitation on Retirement of Submarines.--During fiscal year 
2001, the Secretary of the Navy may not retire from the active force 
structure of the Navy any Los Angeles class nuclear-powered attack 
submarine or any Ohio class nuclear-powered ballistic missile submarine 
unless the Secretary of the Navy certifies to Congress in writing that 
he cannot assure the continued safe and militarily effective operation 
of that submarine.
    (b) Report.--Not later than April 15, 2001, the President shall 
submit to Congress a report on the required force structure for nuclear-
powered submarines, including attack submarines (SSNs), ballistic 
missile submarines (SSBNs), and cruise missile submarines (SSGNs), to 
support the national military strategy through 2020. The report shall 
include a detailed discussion of the acquisition strategy and fleet 
maintenance requirements to achieve and maintain that force structure 
through--
            (1) the procurement of new construction submarines;
            (2) the refueling of Los Angeles class attack submarines 
        (SSNs) to achieve the maximum amount of operational useful 
        service; and
            (3) the conversion of Ohio class submarines that are no 
        longer required for the strategic deterrence mission from their 
        current ballistic missile (SSBN) configuration to a cruise-
        missile (SSGN) configuration.

SEC. 125. ADC(X) SHIP PROGRAM.

    The Secretary of the Navy may procure the construction of all ADC(X) 
class ships in one shipyard if the Secretary determines that it is more 
cost effective to do so than to procure the construction of such ships 
from more than one shipyard.

SEC. 126. REFUELING AND COMPLEX OVERHAUL PROGRAM OF THE U.S.S. DWIGHT D. 
            EISENHOWER.

    (a) Amount Authorized From SCN Account.--Of the amount authorized to 
be appropriated by section 102(a)(3) for fiscal year 2001, $698,441,000 
is available for the commencement of the nuclear refueling and complex 
overhaul of the U.S.S. Dwight D. Eisenhower (CVN-69) during fiscal year 
2001. The amount made available in the preceding sentence is the first 
increment in the

[[Page 114 STAT. 1654A-27]]

incremental funding planned for the nuclear refueling and complex 
overhaul of that vessel.
    (b) Contract Authority.--The Secretary of the Navy is authorized to 
enter into a contract during fiscal year 2001 for the nuclear refueling 
and complex overhaul of the U.S.S. Dwight D. Eisenhower.
    (c) Condition for Out-Year Contract Payments.--A contract entered 
into under subsection (b) shall provide that any obligation of the 
United States to make a payment under the contract for a fiscal year 
after fiscal year 2001 is subject to the availability of appropriations 
for that purpose for that later fiscal year.

SEC. 127. ANALYSIS OF CERTAIN SHIPBUILDING PROGRAMS.

    (a) Alternative Funding Analysis.--The Secretary of the Navy shall 
conduct an analysis on the potential benefits and risks associated with 
alternative funding mechanisms for the procurement of various classes of 
naval vessels and other naval capabilities beginning in fiscal year 
2002.
    (b) Alternative Funding Mechanisms.--For purposes of this section, 
the term ``alternative funding mechanism'' means any of the following:
            (1) The use of multiyear procurement.
            (2) The use of advance procurement for block buys of 
        materials in economic order quantities.
            (3) The use of advance procurement and advance construction 
        required in the number of years appropriate to minimize the cost 
        of ship construction.
            (4) The use of advance procurement and advance construction 
        apportioned roughly evenly across some number of fiscal years.
            (5) The use of resources from the National Defense Sealift 
        Fund to budget for auxiliary ships and strategic lift ships.
            (6) The use of the resources from the National Defense 
        Sealift Fund to provide advance payments for national defense 
        features to establish an active Ready Reserve Force.

    (c) Report.--The Secretary shall submit to the congressional defense 
committees a report providing the results of the analysis under 
subsection (a). The report shall be submitted concurrently with the 
submission of the President's budget for fiscal year 2002, but in no 
event later than February 5, 2001. The report shall include the 
following:
            (1) A detailed description of the funding mechanisms 
        considered.
            (2) The potential savings or costs associated with each such 
        funding mechanism.
            (3) The year-to-year effect of each such funding mechanism 
        on production stability of other shipbuilding programs funded 
        within the Shipbuilding and Conversion, Navy, account, given the 
        current acquisition plan of the Navy through fiscal year 2010.
            (4) The variables and constants used in the analysis which 
        should include economic, industrial base, and budget realities.
            (5) A description and discussion of any statutory or 
        regulatory restrictions that would preclude the use of any of 
        the funding mechanisms considered.

[[Page 114 STAT. 1654A-28]]

SEC. 128. HELICOPTER SUPPORT OF FFG-7 FRIGATES DURING FISCAL YEAR 2001.

    During fiscal year 2001, the Secretary of the Navy shall operate one 
squadron of six SH-2G helicopters to provide organic helicopter assets 
for operational support of missions that are to be carried out by FFG-7 
Flight I and Flight II frigates during that fiscal year.

SEC. 129. V-22 COCKPIT AIRCRAFT VOICE AND FLIGHT DATA RECORDERS.

    The Secretary of Defense shall require that all V-22 Osprey aircraft 
be equipped with a state-of-the-art cockpit voice recorder and a state-
of-the-art flight data recorder each of which meets, at a minimum, the 
standards for such devices recommended by the National Transportation 
Safety Board.

                     Subtitle D--Air Force Programs

SEC. 131. ANNUAL REPORT ON B-2 BOMBER.

    (a) In General.--(1) Chapter 136 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2282. B-2 bomber: annual report

    ``Not later than March 1 of each year, 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 B-2 bomber aircraft. Each such report shall include the following:
            ``(1) Identification of the average full-mission capable 
        rate of B-2 aircraft for the preceding fiscal year and the 
        Secretary's overall assessment of the implications of that full-
        mission capable rate on mission accomplishment for the B-2 
        aircraft, together with the Secretary's determination as to 
        whether that rate is adequate for the accomplishment of each of 
        the missions assigned to the B-2 aircraft as of the date of the 
        assessment.
            ``(2) An assessment of the technical capabilities of the B-2 
        aircraft and whether these capabilities are adequate to 
        accomplish each of the missions assigned to that aircraft as of 
        the date of the assessment.
            ``(3) Identification of all ongoing and planned development 
        of technologies to enhance the capabilities of that aircraft.
            ``(4) Identification and assessment of additional 
        technologies that would make that aircraft more capable or 
        survivable against known and evolving threats.
            ``(5) A fiscally phased program for each technology 
        identified in paragraphs (3) and (4) for the budget year and the 
        future-years defense program, based on the following three 
        funding situations:
                    ``(A) The President's current budget.
                    ``(B) The President's current budget and the current 
                Department of Defense unfunded priority list.
                    ``(C) The maximum executable funding for the B-2 
                aircraft given the requirement to maintain enough 
                operationally ready aircraft to accomplish missions 
                assigned to the B-2 aircraft.''.

[[Page 114 STAT. 1654A-29]]

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

``2282. B-2 bomber: annual report.''.

    (b) Repeal of Superseded Reporting Requirement.--Section 112 of the 
National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189) is repealed.

SEC. 132. REPORT ON MODERNIZATION OF AIR NATIONAL GUARD F-16A UNITS.

    The Secretary of the Air Force shall, not later than February 1, 
2001, submit to Congress a plan to modernize and upgrade the combat 
capabilities of those Air National Guard units that, as of the date of 
the enactment of this Act, are assigned F-16A aircraft so that those 
units can be deployed as part of Air Expeditionary Forces.

                       Subtitle E--Joint Programs

SEC. 141. STUDY OF FINAL ASSEMBLY AND CHECKOUT ALTERNATIVES FOR THE 
            JOINT STRIKE FIGHTER PROGRAM.

    (a) Report Required.--Not later than 180 days after the date of the 
award of a contract for engineering and manufacturing development for 
the Joint Strike Fighter aircraft program, the Secretary of Defense 
shall submit to Congress a report providing the results of a study of 
final assembly and checkout alternatives for that aircraft.
    (b) Matters To Be Included.--The report under subsection (a) shall 
include the following:
            (1) Examination of alternative final assembly and checkout 
        strategies for the program, including--
                    (A) final assembly and checkout of all aircraft 
                under the program at one location;
                    (B) final assembly and checkout at dual locations; 
                and
                    (C) final assembly and checkout at multiple 
                locations.
            (2) Identification of each Government and industry facility 
        that is a potential location for such final assembly and 
        checkout.
            (3) Identification of the anticipated costs of final 
        assembly and checkout at each facility identified pursuant to 
        paragraph (2), based upon a reasonable profile for the annual 
        procurement of that aircraft once it enters production.
            (4) A comparison of the anticipated costs of carrying out 
        such final assembly and checkout at each such location.

    (c) Cost Comparison.--In identifying costs under subsection (b)(3) 
and carrying out the cost comparisons required by subsection (b)(4), the 
Secretary shall include consideration of each of the following factors:
            (1) State tax credits.
            (2) State and local incentives.
            (3) Skilled resident workforce.
            (4) Supplier and technical support bases.
            (5) Available stealth production facilities.
            (6) Environmental standards.

[[Page 114 STAT. 1654A-30]]

                  Subtitle F--Chemical Demilitarization

SEC. 151. PUEBLO CHEMICAL DEPOT CHEMICAL AGENT AND MUNITIONS DESTRUCTION 
            TECHNOLOGIES.

    (a) Limitation.--In determining the technologies to be used for the 
destruction of the stockpile of lethal chemical agents and munitions at 
Pueblo Chemical Depot, Colorado, whether under the assessment required 
by section 141(a) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 537; 50 U.S.C. 1521 note), the 
Assembled Chemical Weapons Assessment, or any other assessment, the 
Secretary of Defense may consider only the following technologies:
            (1) Incineration.
            (2) Any technologies demonstrated under the Assembled 
        Chemical Weapons Assessment on or before May 1, 2000.

    (b) Assembled Chemical Weapons Assessment Defined.--As used in 
subsection (a), the term ``Assembled Chemical Weapons Assessment'' means 
the pilot program carried out under section 8065 of the Department of 
Defense Appropriations Act, 1997 (as contained in section 101(b) of 
Public Law 104-208; 110 Stat. 3009-101; 50 U.S.C. 1521 note).

SEC. 152. REPORT ON ASSESSMENT OF NEED FOR FEDERAL ECONOMIC ASSISTANCE 
            FOR COMMUNITIES IMPACTED BY CHEMICAL DEMILITARIZATION 
            ACTIVITIES.

    (a) Report Required.--Not later than April 1, 2001, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and of the House of Representatives a report on the impact of the 
Department of Defense chemical agents and munitions destruction program 
on the communities in the vicinity of the chemical weapons stockpile 
storage sites and associated chemical agent demilitarization activities 
at the following facilities:
            (1) Anniston Chemical Activity, Alabama.
            (2) Blue Grass Chemical Activity, Kentucky.
            (3) Deseret Chemical Depot, Utah.
            (4) Edgewood Chemical Activity, Maryland.
            (5) Newport Chemical Activity, Indiana.
            (6) Pine Bluff Chemical Activity, Arkansas.
            (7) Pueblo Chemical Activity, Colorado.
            (8) Umatilla Chemical Depot, Oregon.

    (b) Recommendation.--The Secretary shall include in the report a 
recommendation regarding whether Federal economic assistance for any or 
all of those communities to assist in meeting the impact of that program 
is needed and appropriate. If the Secretary's recommendation is that 
such economic assistance is needed and appropriate for any or all of 
such communities, the Secretary shall include in the report criteria for 
determining the amount of such economic assistance.
    (c) Matters To Be Considered in Assessing Impact.--In assessing the 
impact of the program referred to in subsection (a) for purposes of 
preparing the report required by that subsection and the recommendation 
required by subsection (b), the Secretary shall consider the following:
            (1) The impact that any change in population as a result of 
        chemical agent demilitarization activities would have on the 
        community.

[[Page 114 STAT. 1654A-31]]

            (2) The possible temporary nature of such a change in 
        population and the long-range financial impact of such a change 
        in population on the permanent residents of the community.
            (3) The initial capitalization required for the services, 
        facilities, or infrastructure to support any increase in 
        population.
            (4) The operating costs for sustaining or upgrading the 
        services, facilities, or infrastructure to support any increase 
        in population.
            (5) The costs incurred by local government entities for 
        improvements to emergency evacuation routes required by the 
        chemical demilitarization activities.
            (6) Such other factors as the Secretary considers 
        appropriate.

SEC. 153. PROHIBITION AGAINST DISPOSAL OF NON-STOCKPILE CHEMICAL WARFARE 
            MATERIAL AT ANNISTON CHEMICAL STOCKPILE DISPOSAL FACILITY.

    No funds authorized to be made available under this or any other Act 
may be used to facilitate the disposal using the chemical stockpile 
disposal facility at Anniston, Alabama, of any non-stockpile chemical 
warfare material that is not stored (as of the date of the enactment of 
this Act) at the Anniston Army Depot.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Management of Space-Based Infrared System--Low.
Sec. 212. Joint Strike Fighter program.
Sec. 213. Fiscal year 2002 joint field experiment.
Sec. 214. Nuclear aircraft carrier design and production modeling.
Sec. 215. DD-21 class destroyer program.
Sec. 216. Limitation on Russian American Observation Satellites program.
Sec. 217. Joint biological defense program.
Sec. 218. Report on biological warfare defense vaccine research and 
           development programs.
Sec. 219. Cost limitations applicable to F-22 aircraft program.
Sec. 220. Unmanned advanced capability combat aircraft and ground combat 
           vehicles.
Sec. 221. Global Hawk high altitude endurance unmanned aerial vehicle.
Sec. 222. Army space control technology development.

                  Subtitle C--Ballistic Missile Defense

Sec. 231. Funding for fiscal year 2001.
Sec. 232. Reports on ballistic missile threat posed by North Korea.
Sec. 233. Plan to modify ballistic missile defense architecture.
Sec. 234. Management of Airborne Laser program.

                 Subtitle D--High Energy Laser Programs

Sec. 241. Funding.
Sec. 242. Implementation of High Energy Laser Master Plan.
Sec. 243. Designation of senior official for high energy laser programs.
Sec. 244. Site for Joint Technology Office.
Sec. 245. High energy laser infrastructure improvements.
Sec. 246. Cooperative programs and activities.
Sec. 247. Technology plan.
Sec. 248. Annual report.
Sec. 249. Definition.

[[Page 114 STAT. 1654A-32]]

Sec. 250. Review of Defense-wide directed energy programs.

                        Subtitle E--Other Matters

Sec. 251. Reports on mobile offshore base concept and potential use for 
           certain purposes of technologies associated with that 
           concept.
Sec. 252. Air Force science and technology planning.
Sec. 253. Enhancement of authorities regarding education partnerships 
           for purposes of encouraging scientific study.
Sec. 254. Recognition of those individuals instrumental to naval 
           research efforts during the period from before World War II 
           through the end of the Cold War.

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $5,568,482,000.
            (2) For the Navy, $8,715,335,000.
            (3) For the Air Force, $13,779,144,000.
            (4) For Defense-wide activities, $10,873,712,000, of which 
        $192,060,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 2001.--Of the amounts authorized to be appropriated 
by section 201, $4,557,188,000 shall be available for basic research and 
applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. MANAGEMENT OF SPACE-BASED INFRARED SYSTEM--LOW.

    Not later than October 1, 2001, the Secretary of Defense shall 
direct that the Director of the Ballistic Missile Defense Organization 
shall have authority for program management for the ballistic missile 
defense program known on the date of the enactment of this Act as the 
Space-Based Infrared System--Low.

SEC. 212. JOINT STRIKE FIGHTER PROGRAM.

    (a) Report.--Not later than December 15, 2000, the Secretary of 
Defense shall submit to the congressional defense committees a report on 
the Joint Strike Fighter aircraft program describing the criteria for 
exit of the program from the demonstration and validation phase, and 
entry of the program into the engineering and manufacturing development 
phase, of the acquisition process.
    (b) Certification.--The Joint Strike Fighter program may not be 
approved for entry into the engineering and manufacturing development 
phase of the acquisition process until the Secretary of Defense 
certifies to the congressional defense committees that--

[[Page 114 STAT. 1654A-33]]

            (1) the exit criteria established in the report submitted 
        under subsection (a) have been accomplished;
            (2) the technological maturity of key technologies for the 
        program is sufficient to warrant entry of the program into the 
        engineering and manufacturing development phase; and
            (3) the short take-off, vertical-landing aircraft variant 
        selected for engineering and manufacturing development has 
        successfully flown at least 20 hours.

    (c) Transfers Within the Joint Strike Fighter Navy and Air Force 
Accounts.--(1) The Secretary of Defense may, subject to established 
congressional notification and reprogramming procedures, transfer within 
the Joint Strike Fighter program the following amounts:
            (A) Of the funds authorized to be appropriated for PE 
        64800N, up to $100,000,000 to PE 63800N.
            (B) Of the funds authorized to be appropriated for PE 
        64800F, up to $100,000,000 to PE 63800F.

    (2) The transfer authority authorized in paragraph (1) is in 
addition to the transfer authority provided in section 1001.

SEC. 213. FISCAL YEAR 2002 JOINT FIELD EXPERIMENT.

    (a) Requirements.--The Secretary of Defense shall carry out a joint 
field experiment in fiscal year 2002. The Secretary shall ensure that 
the planning for the joint field experiment is carried out in fiscal 
year 2001.
    (b) Purpose.--The purpose of the joint field experiment is to 
explore critical war fighting challenges at the operational level of war 
that will confront United States joint military forces after 2010.
    (c) Participating Forces.--(1) The joint field experiment shall 
involve elements of the Army, Navy, Marine Corps, and Air Force, and 
shall include special operations forces.
    (2) The forces designated to participate in the joint field 
experiment shall exemplify the concepts for organization, equipment, and 
doctrine that are conceived for the forces after 2010 under Joint Vision 
2010 and Joint Vision 2020 (issued by the Joint Chiefs of Staff ) and 
the current vision statements of the Chief of Staff of the Army, the 
Chief of Naval Operations, the Commandant of the Marine Corps, and the 
Chief of Staff of the Air Force, including the following concepts:
            (A) Army medium weight brigades.
            (B) Navy Forward-From-The-Sea.
            (C) Air Force expeditionary aerospace forces.

    (d) Report.--Not later than March 1, 2001, the Secretary shall 
submit to the congressional defense committees a report on the concept 
plan for the joint field experiment required under subsection (a). The 
report shall include the following:
            (1) The objectives of the experiment.
            (2) The forces participating in the experiment.
            (3) The schedule and location of the experiment.
            (4) For each joint command, defense agency, and service 
        component participating in the experiment, an identification 
        of--
                    (A) the funding required for the experiment by that 
                command, agency, or component; and

[[Page 114 STAT. 1654A-34]]

                    (B) any shortfall in the budget request for the 
                Department of Defense for fiscal year 2002 for that 
                funding for that command, agency, or component.

SEC. 214. NUCLEAR AIRCRAFT CARRIER DESIGN AND PRODUCTION MODELING.

    (a) Assessment Required.--The Secretary of the Navy shall conduct an 
assessment of the cost-effectiveness of--
            (1) converting design data for the Nimitz-class aircraft 
        carrier from non-electronic to electronic form; and
            (2) developing an electronic, three-dimensional design 
        product model for the CVNX class aircraft carrier.

    (b) Conduct of the Assessment.--The Secretary of the Navy shall 
carry out the assessment in a manner that ensures the participation of 
the nuclear aircraft carrier shipbuilding industry.
    (c) Report.--The Secretary of the Navy shall submit a report to the 
congressional defense committees on the assessment. The report shall 
include the results of the assessment and plans and funding requirements 
for developing the model specified in subsection (a)(2). The report 
shall be submitted with the submission of the budget request for the 
Department of Defense for fiscal year 2002.
    (d) Funding.--Of the amount authorized to be appropriated under 
section 201(2) for research, development, test, and evaluation for the 
Navy, $8,000,000 shall be available to initiate the conversion and 
development of nuclear aircraft carrier design data into an electronic, 
three-dimensional product model.

SEC. 215. DD-21 CLASS DESTROYER PROGRAM.

    (a) Authority.--The Secretary of the Navy is authorized to pursue a 
technology insertion approach for the construction of the DD-21 
destroyer that is based on the assumption of the following schedule:
            (1) Award of a contract for advance procurement for 
        construction of components for the DD-21 destroyer during fiscal 
        year 2004.
            (2) Delivery of the completed ship during fiscal year 2009.

    (b) Sense of Congress.--It is the sense of Congress that--
            (1) there are compelling reasons for starting the program 
        for constructing the DD-21 destroyer during fiscal year 2004 
        with available procurement funds and continuing with sequential 
        construction of DD-21 class destroyers during the ensuing fiscal 
        years until 32 DD-21 class destroyers have been constructed; and
            (2) the Secretary of the Navy, in providing for the 
        acquisition of DD-21 class destroyers, should consider that--
                    (A) the Marine Corps needs the surface fire-support 
                capabilities of the DD-21 class destroyers as soon as 
                possible in order to mitigate the inadequacies of the 
                surface fire-support capabilities that are currently 
                available;
                    (B) the Navy and Marine Corps need to resolve 
                whether there is a requirement for surface fire-support 
                missile weapon systems to be easily sustainable by means 
                of replenishment while under way;
                    (C) the technology insertion approach has been 
                successful for other ship construction programs and is 
                being pursued for the CVNX aircraft carrier program and 
                the Virginia class submarine program;

[[Page 114 STAT. 1654A-35]]

                    (D) the establishment of a stable configuration for 
                the first 10 DD-21 class destroyers should enable the 
                construction of those ships with the greatest 
                capabilities at the lowest cost; and
                    (E) action to acquire DD-21 class destroyers should 
                be taken as soon as possible in order to realize fully 
                the cost savings that can be derived from the 
                construction and operation of DD-21 class destroyers, 
                including--
                          (i) savings in construction costs that would 
                      result from achievement of the Navy's target per-
                      ship cost of $750,000,000 by the fifth ship 
                      constructed in each construction yard;
                          (ii) savings that would result from the 
                      estimated reduction of the crews of destroyers by 
                      200 or more personnel for each ship; and
                          (iii) savings that would result from a 
                      reduction in the operating costs for destroyers by 
                      an estimated 70 percent.

    (c) Navy Plan for Use of Technology Insertion Approach for 
Construction of the DD-21 Ship.--The Secretary of the Navy shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives, not later than April 18, 2001, a plan for pursuing a 
technology insertion approach for the construction of the DD-21 
destroyer as authorized under subsection (a). The plan shall include 
estimates of the resources necessary to carry out the plan.
    (d) Report on Acquisition and Maintenance Plan for DD-21 Class 
Ships.--The Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives, not later than 
April 18, 2001, a report on the Navy's plan for the acquisition and 
maintenance of DD-21 class destroyers. The report shall include a 
discussion of each of the following matters:
            (1) The technical feasibility of contracting for, and 
        commencing construction of, the first destroyer in that class 
        during fiscal year 2004 and achieving delivery of the completed 
        ship during fiscal year 2009.
            (2) An analysis of alternative contracting strategies for 
        the construction of the first 10 destroyers in that class, 
        including one or more multiyear procurement strategies and one 
        or more strategies for block buy in economic order quantity.
            (3) A comparison of the effects on the destroyer industrial 
        base and on costs to other Navy shipbuilding programs of the 
        following two options:
                    (A) Commencing construction of the first destroyer 
                in that class during fiscal year 2004, with delivery of 
                the completed ship during fiscal year 2009, and delaying 
                commencement of construction of the next destroyer in 
                that class until fiscal year 2006.
                    (B) Commencing construction of the first destroyer 
                in that class during fiscal year 2005 (rather than 
                fiscal year 2004), with advance procurement during 
                fiscal year 2004 and delivery of the completed ship 
                during fiscal year 2010, and delaying commencement of 
                construction of the next destroyer in that class until 
                fiscal year 2007 (rather than fiscal year 2006).

[[Page 114 STAT. 1654A-36]]

            (4) The effects on the fleet maintenance strategies of Navy 
        fleet commanders, on commercial maintenance facilities in fleet 
        concentration areas, and on the administration of funds in 
        compliance with section 2466 of title 10, United States Code, of 
        awarding to a contractor for the construction of a destroyer in 
        that class all maintenance workloads for destroyers in that 
        class that are below depot-level maintenance and above ship-
        level maintenance.

SEC. 216. LIMITATION ON RUSSIAN AMERICAN OBSERVATION SATELLITES PROGRAM.

    None of the funds authorized to be appropriated under section 201(4) 
for the Russian American Observation Satellites program may be obligated 
or expended until 30 days after the Secretary of Defense submits to 
Congress a report explaining how the Secretary plans to protect United 
States advanced military technology that may be associated with the 
Russian American Observation Satellites program.

SEC. 217. JOINT BIOLOGICAL DEFENSE PROGRAM.

    (a) Limitation.--Subject to subsection (c), funds authorized to be 
appropriated by this Act may not be obligated for the procurement of a 
vaccine for the biological agent anthrax until the Secretary of Defense 
has submitted to the congressional defense committees each of the 
following:
            (1) A written notification that the Food and Drug 
        Administration has approved the current manufacturer for 
        production of the vaccine.
            (2) A report on the contingencies associated with continuing 
        to rely on the current manufacturer to supply the vaccine.

    (b) Content of Report.--The report required under subsection (a)(2) 
shall include each of the following:
            (1) Recommended strategies to mitigate the risk to the 
        Department of Defense of losing the current manufacturer as a 
        source of anthrax vaccine, together with a discussion of the 
        criteria to be applied in determining whether to carry out any 
        of the strategies and which strategy to carry out.
            (2) Recommended strategies to ensure that the Department of 
        Defense can procure, from one or more sources other than the 
        current manufacturer, an anthrax vaccine approved by the Food 
        and Drug Administration that meets the requirements of the 
        Department if--
                    (A) the Food and Drug Administration does not 
                approve the release of the anthrax vaccine available 
                from the current manufacturer; or
                    (B) the current manufacturer terminates the 
                production of anthrax vaccine permanently.
            (3) A five-year budget to support each strategy recommended 
        under paragraph (1) or (2).

    (c) Permissible Obligations.--(1) This section does not limit the 
obligation of funds for any of the following purposes:
            (A) The support of any action that is necessary for the 
        current manufacturer to comply with standards of the Food and 
        Drug Administration (including those purposes necessary to 
        obtain or maintain a biological license application) applicable 
        to anthrax vaccine.

[[Page 114 STAT. 1654A-37]]

            (B) Establishing an additional source (other than or in 
        conjunction with the current manufacturer) for the production of 
        anthrax vaccine.
            (C) Any action that the Secretary determines necessary to 
        ensure production of anthrax vaccine for meeting an urgent and 
        immediate national defense requirement.

    (2) Not later than seven days after the total amount of the funds 
obligated (or obligated and expended) for purposes specified in 
paragraph (1) exceeds $5,000,000, the Secretary shall submit to Congress 
a notification that the total obligations exceed that amount, together 
with a written justification for the obligation of funds in excess of 
that amount.
    (d) Current Manufacturer.--In this section, the term ``current 
manufacturer'' means the manufacturing source from which the Department 
of Defense is procuring anthrax vaccine as of the date of the enactment 
of this Act.

SEC. 218. REPORT ON BIOLOGICAL WARFARE DEFENSE VACCINE RESEARCH AND 
            DEVELOPMENT PROGRAMS.

    (a) Report Required.--Not later than February 1, 2001, the Secretary 
of Defense shall submit to the congressional defense committees a report 
on the acquisition of biological warfare defense vaccines for the 
Department of Defense.
    (b) Contents.--The report shall include the following:
            (1) The Secretary's evaluation of the implications of 
        reliance on the commercial sector to meet the requirements of 
        the Department of Defense for biological warfare defense 
        vaccines.
            (2) A design for a government-owned, contractor-operated 
        facility for the production of biological warfare defense 
        vaccines that meets the requirements of the Department for such 
        vaccines, and the assumptions on which that design is based.
            (3) A preliminary cost estimate of, and schedule for, 
        establishing and bringing into operation such a facility, and 
        the estimated annual cost of operating such a facility 
        thereafter.
            (4) A determination, developed in consultation with the 
        Surgeon General, of the utility of such a facility to support 
        the production of vaccines for the civilian sector, and a 
        discussion of the effects that the use of such a facility for 
        that purpose might have on--
                    (A) the production of vaccines for the Armed Forces; 
                and
                    (B) the annual cost of operating such a facility.
            (5) An analysis of the effects that international 
        requirements for vaccines, and the production of vaccines in 
        response to those requirements, might have on--
                    (A) the production of vaccines for the Armed Forces; 
                and
                    (B) the annual cost of operating such a facility.

    (c) Biological Warfare Defense Vaccine Defined.--In this section, 
the term ``biological warfare defense vaccine'' means a vaccine useful 
for the immunization of military personnel to protect against biological 
agents on the Validated Threat List issued by the Joint Chiefs of Staff, 
whether such vaccine is in production or is being developed.

[[Page 114 STAT. 1654A-38]]

SEC. 219. COST LIMITATIONS APPLICABLE TO F-22 AIRCRAFT PROGRAM.

    (a) Flexibility in Engineering and Manufacturing Development Cost 
Cap.--Section 217(c) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1660) is amended by 
adding at the end the following new paragraph:
            ``(3) With respect to the limitation in subsection (a), an 
        increase by an amount that does not exceed 1\1/2\ percent of the 
        total amount of that limitation (taking into account the 
        increases and decreases, if any, under paragraphs (1) and (2)) 
        if the Director of Operational Test and Evaluation, after 
        consulting with the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, determines that the increase is 
        necessary in order to ensure adequate testing.''.

    (b) Reestablishment of Separate Engineering and Manufacturing 
Development Cost Cap and Production Cost Cap.--The provisions of 
subsections (a) and (b) of section 217 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1660) shall continue to apply with respect to amounts obligated and 
expended for engineering and manufacturing development, and for 
production, respectively, for the F-22 aircraft program without regard 
to any provision of law establishing a single limitation on amounts 
obligated and expended for engineering and manufacturing development and 
for production for that program.

SEC. 220. UNMANNED ADVANCED CAPABILITY COMBAT AIRCRAFT AND GROUND COMBAT 
            VEHICLES.

    (a) Goal.--It shall be a goal of the Armed Forces to achieve the 
fielding of unmanned, remotely controlled technology such that--
            (1) by 2010, one-third of the aircraft in the operational 
        deep strike force aircraft fleet are unmanned; and
            (2) by 2015, one-third of the operational ground combat 
        vehicles are unmanned.

    (b) Report on Unmanned Advanced Capability Combat Aircraft and 
Ground Combat Vehicles.--(1) Not later than January 31, 2001, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the programs to demonstrate unmanned advanced 
capability combat aircraft and ground combat vehicles undertaken jointly 
between the Director of the Defense Advanced Research Projects Agency 
and any of the following:
            (A) The Secretary of the Army.
            (B) The Secretary of the Navy.
            (C) The Secretary of the Air Force.

    (2) The report shall include, for each program referred to in 
paragraph (1), the following:
            (A) A schedule for the demonstration to be carried out under 
        that program.
            (B) An identification of the funding required for fiscal 
        year 2002 and for the future-years defense program to carry out 
        that program and for the demonstration to be carried out under 
        that program.
            (C) In the case of the program relating to the Army, the 
        plan for modification of the existing memorandum of agreement

[[Page 114 STAT. 1654A-39]]

        with the Defense Advanced Research Projects Agency for 
        demonstration and development of the Future Combat System to 
        reflect an increase in unmanned, remotely controlled enabling 
        technologies.

    (3) The report shall also include, for each Secretary referred to in 
paragraphs (1)(A), (1)(B), and (1)(C), a description and assessment of 
the acquisition strategy for unmanned advanced capability combat 
aircraft and ground combat vehicles planned by that Secretary, which 
shall include a detailed estimate of all research and development, 
procurement, operation, support, ownership, and other costs required to 
carry out such strategy through the year 2030, and--
            (A) in the case of the acquisition strategy relating to the 
        Army, the transition from the planned acquisition strategy for 
        the Future Combat System to an acquisition strategy capable of 
        meeting the goal specified in subsection (a)(2);
            (B) in the case of the acquisition strategy relating to the 
        Navy--
                    (i) the plan to implement a program that examines 
                the ongoing Air Force unmanned combat air vehicle 
                program and identifies an approach to develop a Navy 
                unmanned combat air vehicle program that has the goal of 
                developing an aircraft that is suitable for aircraft 
                carrier use and has maximum commonality with the 
                aircraft under the Air Force program; and
                    (ii) an analysis of alternatives between the 
                operational deep strike force aircraft fleet and that 
                fleet together with an additional 10 to 20 unmanned 
                advanced capability combat aircraft that are suitable 
                for aircraft carrier use and capable of penetrating 
                fully operational enemy air defense systems; and
            (C) in the case of the acquisition strategy relating to the 
        Air Force--
                    (i) the schedule for evaluation of demonstration 
                results for the ongoing unmanned combat air vehicle 
                program and the earliest possible transition of that 
                program into engineering and manufacturing development 
                and procurement; and
                    (ii) an analysis of alternatives between the 
                currently planned deep strike force aircraft fleet and 
                the operational deep strike force aircraft fleet that 
                could be acquired by fiscal year 2010 to meet the goal 
                specified in subsection (a)(1).

    (c) Funds.--Of the amount authorized to be appropriated for Defense-
wide activities under section 201(4) for the Defense Advanced Research 
Projects Agency, $100,000,000 shall be available only to carry out the 
programs referred to in subsection (b)(1).
    (d) Definitions.--For purposes of this section:
            (1) An aircraft or ground combat vehicle has ``unmanned 
        advanced capability'' if it is an autonomous, semi-autonomous, 
        or remotely controlled system that can be deployed, re-tasked, 
        recovered, and re-deployed.
            (2) The term ``currently planned deep strike force aircraft 
        fleet'' means the early entry, deep strike aircraft fleet 
        (composed of F-117 stealth aircraft and B-2 stealth aircraft) 
        that is currently planned for fiscal year 2010.

[[Page 114 STAT. 1654A-40]]

            (3) The term ``operational deep strike force aircraft 
        fleet'' means the currently planned deep strike force aircraft 
        fleet, together with at least 30 unmanned advanced capability 
        combat aircraft that are capable of penetrating fully 
        operational enemy air defense systems.
            (4) The term ``operational ground combat vehicles'' means 
        ground combat vehicles acquired through the Future Combat System 
        acquisition program of the Army to equip the future objective 
        force, as outlined in the vision statement of the Chief of Staff 
        of the Army.

SEC. 221. GLOBAL HAWK HIGH ALTITUDE ENDURANCE UNMANNED AERIAL VEHICLE.

    (a) Concept Demonstration Required.--The Secretary of Defense shall 
require and coordinate a concept demonstration of the Global Hawk high 
altitude endurance unmanned aerial vehicle.
    (b) Purpose of Demonstration.--The purpose of the concept 
demonstration is to demonstrate the capability of the Global Hawk high 
altitude endurance unmanned aerial vehicle to operate in an airborne 
surveillance mode, using available, non-developmental technology.
    (c) Time for Demonstration.--The Secretary shall initiate the 
demonstration not later than March 1, 2001.
    (d) Participation by CINCs.--The Secretary shall require the 
commander of the United States Joint Forces Command and the commander of 
the United States Southern Command jointly to provide guidance for the 
demonstration and otherwise to participate in the demonstration.
    (e) Scenario for Demonstration.--The demonstration shall be 
conducted in a counter-drug surveillance scenario that is designed to 
replicate factual conditions typically encountered in the performance of 
the counter-drug surveillance mission of the commander of the United 
States Southern Command within that commander's area of responsibility.
    (f ) Report.--Not later than 45 days after the demonstration is 
completed, the Secretary shall submit to Congress a report on the 
results of the demonstration. The report shall include the following:
            (1) The Secretary's assessment of the technical feasibility 
        of using the Global Hawk high altitude endurance unmanned aerial 
        vehicle for airborne air surveillance.
            (2) A discussion of the operational concept for the use of 
        the vehicle for that purpose.

    (g) Funding.--Of the funds authorized to be appropriated by section 
301(20) for Drug Interdiction and Counter-drug Activities, Defense-wide, 
$18,000,000 shall be available for the concept demonstration required by 
subsection (a), including initiation of concurrent development for an 
improved surveillance radar.

SEC. 222. ARMY SPACE CONTROL TECHNOLOGY DEVELOPMENT.

    Of the funds authorized to be appropriated under section 201(1) for 
Army space control technology, $3,000,000 shall be available for the 
kinetic energy anti-satellite technology program.

[[Page 114 STAT. 1654A-41]]

                  Subtitle C--Ballistic Missile Defense

SEC. 231. FUNDING FOR FISCAL YEAR 2001.

    Of the funds authorized to be appropriated in section 201(4), 
$1,875,238,000 shall be available for the National Missile Defense 
program.

SEC. 232. REPORTS ON BALLISTIC MISSILE THREAT POSED BY NORTH KOREA.

    (a) Report On Ballistic Missile Threat.--Not later than two weeks 
after the next flight test by North Korea of a long-range ballistic 
missile, the President shall submit to Congress, in classified and 
unclassified form, a report on the North Korean ballistic missile threat 
to the United States. The report shall include the following:
            (1) An assessment of the current North Korean missile threat 
        to the United States.
            (2) An assessment of whether the United States is capable of 
        defeating the North Korean long-range missile threat to the 
        United States as of the date of the report.
            (3) An assessment of when the United States will be capable 
        of defeating the North Korean missile threat to the United 
        States.
            (4) An assessment of the potential for proliferation of 
        North Korean missile technologies to other states and whether 
        such proliferation will accelerate the development of additional 
        long-range ballistic missile threats to the United States.

    (b) Report on Reducing Vulnerability.--Not later than two weeks 
after the next flight test by North Korea of a long-range ballistic 
missile, the President shall submit to Congress a report providing the 
following:
            (1) Any additional steps the President intends to take to 
        reduce the period of time during which the Nation is vulnerable 
        to the North Korean long-range ballistic missile threat.
            (2) The technical and programmatic viability of testing any 
        other missile defense systems against targets with flight 
        characteristics similar to the North Korean long-range missile 
        threat, and plans to do so if such tests are considered to be a 
        viable alternative.

    (c) Definition.--For purposes of this section, the term ``United 
States'', when used in a geographic sense, means the 50 States, the 
District of Columbia, and any Commonwealth, territory, or possession of 
the United States.

SEC. 233. PLAN TO MODIFY BALLISTIC MISSILE DEFENSE ARCHITECTURE.

    (a) Plan.--The Director of the Ballistic Missile Defense 
Organization shall develop a plan to adapt ballistic missile defense 
systems and architectures to counter potential threats to the United 
States, United States forces deployed outside the United States, and 
other United States national security interests that are posed by longer 
range medium-range ballistic missiles and intermediate-range ballistic 
missiles.
    (b) Use of Space-Based Sensors Included.--The plan shall include--
            (1) potential use of space-based sensors, including the 
        Space-Based Infrared System (SBIRS) Low and Space-Based

[[Page 114 STAT. 1654A-42]]

        Infrared System (SBIRS) High, Navy theater missile defense 
        assets, upgrades of land-based theater missile defenses, the 
        airborne laser, and other assets available in the European 
        theater; and
            (2) a schedule for ground and flight testing against the 
        identified threats.

    (c) Report.--The Secretary of Defense shall assess the plan and, not 
later than February 15, 2001, shall submit to the congressional defense 
committees a report on the results of the assessment.

SEC. 234. MANAGEMENT OF AIRBORNE LASER PROGRAM.

    (a) Oversight of Funding, Schedule, and Technical Requirements.--
With respect to the program known as of the date of the enactment of 
this Act as the ``Airborne Laser'' program, the Secretary of Defense 
shall require that the Secretary of the Air Force obtain the concurrence 
of the Director of the Ballistic Missile Defense Organization before the 
Secretary--
            (1) makes any change to the funding plan or schedule for 
        that program that would delay to a date later than September 30, 
        2003, the first test of the airborne laser that is intended to 
        destroy a ballistic missile in flight;
            (2) makes any change to the funding plan for that program in 
        the future-years defense program that would delay the initial 
        operational capability of the airborne laser; and
            (3) makes any change to the technical requirements of the 
        airborne laser that would significantly reduce its ballistic 
        missile defense capabilities.

    (b) Report.--Not later than February 15, 2001, the Director of the 
Ballistic Missile Defense Organization shall submit to the congressional 
defense committees a report, to be prepared in coordination with the 
Secretary of the Air Force, on the role of the airborne laser in the 
family of systems missile defense architecture developed by the Director 
of the Ballistic Missile Defense Organization and the Director of the 
Joint Theater Air and Missile Defense Organization. The report shall be 
submitted in unclassified and, if necessary, classified form. The report 
shall include the following:
            (1) An assessment by the Secretary of the Air Force and the 
        Director of the Ballistic Missile Defense Organization of the 
        funding plan for that program required to achieve the schedule 
        identified in paragraphs (1) and (2) of subsection (a).
            (2) Potential future airborne laser roles in that 
        architecture.
            (3) An assessment of the effect of deployment of the 
        airborne laser on requirements for theater ballistic missile 
        defense systems.
            (4) An assessment of the cost effectiveness of the airborne 
        laser compared to other ballistic missile defense systems.
            (5) An assessment of the relative significance of the 
        airborne laser in the family of systems missile defense 
        architecture.

[[Page 114 STAT. 1654A-43]]

                 Subtitle D--High Energy Laser Programs

SEC. 241. FUNDING.

    (a) Funding for Fiscal Year 2001.--(1) Of the amount authorized to 
be appropriated by section 201(4), $30,000,000 is authorized for high 
energy laser development.
    (2) Funds available under this subsection are available to 
supplement the high energy laser programs of the military departments 
and Defense Agencies, as determined by the official designated under 
section 243.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Department of Defense should establish funding for 
        high energy laser programs within the science and technology 
        programs of each of the military departments and the Ballistic 
        Missile Defense Organization; and
            (2) the Secretary of Defense should establish a goal that 
        basic, applied, and advanced research in high energy laser 
        technology should constitute at least 4.5 percent of the total 
        science and technology budget of the Department of Defense by 
        fiscal year 2004.

SEC. 242. IMPLEMENTATION OF HIGH ENERGY LASER MASTER PLAN.

    The Secretary of Defense shall implement the management and 
organizational structure specified in the Department of Defense High 
Energy Laser Master Plan of March 24, 2000.

SEC. 243. DESIGNATION OF SENIOR OFFICIAL FOR HIGH ENERGY LASER PROGRAMS.

    (a) Designation.--The Secretary of Defense shall designate a single 
senior civilian official in the Office of the Secretary of Defense (in 
this subtitle referred to as the ``designated official'') to chair the 
High Energy Laser Technology Council called for in the master plan 
referred to in section 242 and to carry out responsibilities for the 
programs for which funds are provided under this subtitle. The 
designated official shall report directly to the Under Secretary of 
Defense for Acquisition, Technology, and Logistics for matters 
concerning the responsibilities specified in subsection (b).
    (b) Responsibilities.--The primary responsibilities of the 
designated official shall include the following:
            (1) Establishment of priorities for the high energy laser 
        programs of the military departments and the Defense Agencies.
            (2) Coordination of high energy laser programs among the 
        military departments and the Defense Agencies.
            (3) Identification of promising high energy laser 
        technologies for which funding should be a high priority for the 
        Department of Defense and establishment of priority for funding 
        among those technologies.
            (4) Preparation, in coordination with the Secretaries of the 
        military departments and the Directors of the Defense Agencies, 
        of a detailed technology plan to develop and mature high energy 
        laser technologies.
            (5) Planning and programming appropriate to rapid evolution 
        of high energy laser technology.
            (6) Ensuring that high energy laser programs of each 
        military department and the Defense Agencies are initiated and

[[Page 114 STAT. 1654A-44]]

        managed effectively and are complementary with programs managed 
        by the other military departments and Defense Agencies and by 
        the Office of the Secretary of Defense.
            (7) Ensuring that the high energy laser programs of the 
        military departments and the Defense Agencies comply with the 
        requirements specified in subsection (c).

    (c) Coordination and Funding Balance.--In carrying out the 
responsibilities specified in subsection (b), the designated official 
shall ensure that--
            (1) high energy laser programs of each military department 
        and of the Defense Agencies are consistent with the priorities 
        identified in the designated official's planning and programming 
        activities;
            (2) funding provided by the Office of the Secretary of 
        Defense for high energy laser research and development 
        complements high energy laser programs for which funds are 
        provided by the military departments and the Defense Agencies;
            (3) programs, projects, and activities to be carried out by 
        the recipients of such funds are selected on the basis of 
        appropriate competitive procedures or Department of Defense peer 
        review process;
            (4) beginning with fiscal year 2002, funding from the Office 
        of the Secretary of Defense in applied research and advanced 
        technology development program elements is not applied to 
        technology efforts in support of high energy laser programs that 
        are not funded by a military department or the Defense Agencies; 
        and
            (5) funding from the Office of the Secretary of Defense to 
        complement an applied research or advanced technology 
        development high energy laser program for which funds are 
        provided by one of the military departments or the Defense 
        Agencies do not exceed the amount provided by the military 
        department or the Defense Agencies for that program.

SEC. 244. SITE FOR JOINT TECHNOLOGY OFFICE.

    (a) Deadline for Selection of Site.--The Secretary of Defense shall 
locate the Joint Technology Office called for in the High Energy Laser 
Master Plan referred to in section 242 at a location determined 
appropriate by the Secretary not later than 30 days after the date of 
the enactment of this Act.
    (b) Consideration of Site.--In determining the location of the Joint 
Technology Office, the Secretary shall, in consultation with the Deputy 
Under Secretary of Defense for Science and Technology, assess--
            (1) cost;
            (2) accessibility between the Office and the Armed Forces 
        and senior Department of Defense leaders; and
            (3) the advantages and disadvantages of locating the Office 
        at a site at which occurs a substantial proportion of the 
        directed energy research, development, test, and evaluation 
        activities of the Department of Defense.

SEC. 245. HIGH ENERGY LASER INFRASTRUCTURE IMPROVEMENTS.

    (a) Enhancement of Industrial Base.--The Secretary of Defense shall 
consider, evaluate, and undertake to the extent appropriate initiatives, 
including investment initiatives, to enhance the industrial base to 
support military applications of high energy laser technologies and 
systems.

[[Page 114 STAT. 1654A-45]]

    (b) Enhancement of Test and Evaluation Capabilities.--The Secretary 
of Defense shall consider modernizing the High Energy Laser Test 
Facility at White Sands Missile Range, New Mexico, in order to enhance 
the test and evaluation capabilities of the Department of Defense with 
respect to high energy laser weapons.

SEC. 246. COOPERATIVE PROGRAMS AND ACTIVITIES.

    (a) Memorandum of Agreement With NNSA.--(1) The Secretary of Defense 
and the Administrator for Nuclear Security of the Department of Energy 
shall enter into a memorandum of agreement to conduct joint research and 
development on military applications of high energy lasers.
    (2) The projects pursued under the memorandum of agreement--
            (A) shall be of mutual benefit to the national security 
        programs of the Department of Defense and the National Nuclear 
        Security Administration of the Department of Energy;
            (B) shall be prioritized jointly by officials designated to 
        do so by the Secretary of Defense and the Administrator; and
            (C) shall be consistent with the technology plan prepared 
        pursuant to section 243(b)(4) and the requirements identified in 
        section 243(c).

    (3) The costs of each project pursued under the memorandum of 
agreement shall be shared equally by the Department of Defense and the 
National Nuclear Security Administration.
    (4) The memorandum of agreement shall provide for appropriate peer 
review of projects pursued under the memorandum of agreement.
    (b) Evaluation of Other Cooperative Programs and Activities.--The 
Secretary of Defense shall evaluate the feasibility and advisability of 
entering into cooperative programs or activities with other Federal 
agencies, institutions of higher education, and the private sector for 
the purpose of enhancing the programs, projects, and activities of the 
Department of Defense relating to high energy laser technologies, 
systems, and weapons.

SEC. 247. TECHNOLOGY PLAN.

    The designated official shall submit to the congressional defense 
committees by February 15, 2001, the technology plan prepared pursuant 
to section 243(b)(4). The report shall be submitted in unclassified and, 
if necessary, classified form.

SEC. 248. ANNUAL REPORT.

    Not later than February 15 of 2001, 2002, and 2003, the Secretary of 
Defense shall submit to the congressional defense committees a report on 
the high energy laser programs of the Department of Defense. Each report 
shall include an assessment of the following:
            (1) The adequacy of the management structure of the 
        Department of Defense for the high energy laser programs.
            (2) The funding available for the high energy laser 
        programs.
            (3) The technical progress achieved for the high energy 
        laser programs.
            (4) The extent to which goals and objectives of the high 
        energy laser technology plan have been met.

[[Page 114 STAT. 1654A-46]]

SEC. 249. DEFINITION.

    For purposes of this subtitle, the term ``high energy laser'' means 
a laser that has average power in excess of one kilowatt and that has 
potential weapons applications.

SEC. 250. REVIEW OF DEFENSE-WIDE DIRECTED ENERGY PROGRAMS.

    (a) Evaluation.--The Secretary of Defense, in consultation with the 
Deputy Under Secretary of Defense for Science and Technology, shall 
evaluate expansion of the High Energy Laser management structure 
specified in section 242 for possible inclusion in that management 
structure of science and technology programs in related areas, including 
the following:
            (1) High power microwave technologies.
            (2) Low energy and nonlethal laser technologies.
            (3) Other directed energy technologies.

    (b) Consideration of Prior Study.--The evaluation under subsection 
(a) shall take into consideration the July 1999 Department of Defense 
study on streamlining and coordinating science and technology and 
research, development, test, and evaluation within the Department of 
Defense.
    (c) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report on the findings of the 
evaluation under subsection (a). The report shall be submitted not later 
than March 15, 2001.

                        Subtitle E--Other Matters

SEC. 251. REPORTS ON MOBILE OFFSHORE BASE CONCEPT AND POTENTIAL USE FOR 
            CERTAIN PURPOSES OF TECHNOLOGIES ASSOCIATED WITH THAT 
            CONCEPT.

    (a) Report on Merits of Mobile Offshore Base Concept.--Not later 
than March 1, 2001, the Secretary of Defense shall submit to the 
congressional defense committees a report on the mobile offshore base 
concept. The report shall include the following:
            (1) A cost-benefit analysis of the mobile offshore base, 
        using operational concepts that would support the National 
        Military Strategy.
            (2) A recommendation regarding whether to proceed with the 
        mobile offshore base as a program and, if so--
                    (A) a statement regarding which of the Armed Forces 
                is to be designated to have the lead responsibility for 
                the program; and
                    (B) a schedule for the program.

    (b) Report on Potential Use for Certain Purposes of Associated 
Technologies.--Not later than March 1, 2001, the Secretary of the Navy 
shall submit to the congressional defense committees a report on the 
potential use of technologies associated with the mobile offshore base 
concept. The report shall include an assessment of the potential 
application and feasibility of using existing technologies, including 
those technologies associated with the mobile offshore base concept, to 
a sea-based landing platform for support of naval aviation training.

SEC. 252. AIR FORCE SCIENCE AND TECHNOLOGY PLANNING.

    (a) Requirement for Review.--The Secretary of the Air Force shall 
conduct a review of the long-term challenges and short-term objectives 
of the Air Force science and technology programs. The

[[Page 114 STAT. 1654A-47]]

Secretary shall complete the review not later than one year after the 
date of the enactment of this Act.
    (b) Matters To Be Reviewed.--The review shall include the following:
            (1) An assessment of the budgetary resources that are being 
        used for fiscal year 2001 for addressing the long-term 
        challenges and the short-term objectives of the Air Force 
        science and technology programs.
            (2) The budgetary resources that are necessary to address 
        those challenges and objectives adequately.
            (3) A course of action for each projected or ongoing Air 
        Force science and technology program that does not address 
        either the long-term challenges or the short-term objectives.
            (4) The matters required under subsection (c)(5) and (d)(6).

    (c) Long-Term Challenges.--(1) The Secretary of the Air Force shall 
establish an integrated product team to identify high-risk, high-payoff 
challenges that will provide a long-term focus and motivation for the 
Air Force science and technology programs over the next 20 to 50 years 
following the enactment of this Act. The integrated product team shall 
include representatives of the Office of Scientific Research and 
personnel from the Air Force Research Laboratory.
    (2) The team shall solicit views from the entire Air Force science 
and technology community on the matters under consideration by the team.
    (3) The team--
            (A) shall select for consideration science and technology 
        challenges that involve--
                    (i) compelling requirements of the Air Force;
                    (ii) high-risk, high-payoff areas of exploration; 
                and
                    (iii) very difficult, but probably achievable, 
                results; and
            (B) should not select a linear extension of any ongoing Air 
        Force science and technology program for consideration as a 
        science and technology challenge under subparagraph (A).

    (4) The Deputy Assistant Secretary of the Air Force for Science, 
Technology, and Engineering shall designate a technical coordinator and 
a management coordinator for each science and technology challenge 
identified pursuant to this subsection. Each technical coordinator shall 
have sufficient expertise in fields related to the challenge to be able 
to identify other experts in such fields and to affirm the credibility 
of the challenge. The coordinator for a science and technology challenge 
shall conduct workshops within the relevant scientific and technological 
community to obtain suggestions for possible approaches to addressing 
the challenge and to identify ongoing work that addresses the challenge, 
deficiencies in current work relating to the challenge, and promising 
areas of research.
    (5) In carrying out subsection (a), the Secretary of the Air Force 
shall review the science and technology challenges identified pursuant 
to this subsection and, for each such challenge, at a minimum--
            (A) consider the results of the workshops conducted pursuant 
        to paragraph (4); and
            (B) identify any work not currently funded by the Air Force 
        that should be performed to meet the challenge.

    (d) Short-Term Objectives.--(1) The Secretary of the Air Force shall 
establish a task force to identify short-term technological

[[Page 114 STAT. 1654A-48]]

objectives of the Air Force science and technology programs. The task 
force shall be chaired by the Deputy Assistant Secretary of the Air 
Force for Science, Technology, and Engineering and shall include 
representatives of the Chief of Staff of the Air Force and the specified 
combatant commands of the Air Force.
    (2) The task force shall solicit views from the entire Air Force 
requirements community, user community, and acquisition community.
    (3) The task force shall select for consideration short-term 
objectives that involve--
            (A) compelling requirements of the Air Force;
            (B) support in the user community; and
            (C) likely attainment of the desired benefits within a five-
        year period.

    (4) The Deputy Assistant Secretary of the Air Force for Science, 
Technology, and Engineering shall establish an integrated product team 
for each short-term objective identified pursuant to this subsection. 
Each integrated product team shall include representatives of the 
requirements community, the user community, and the science and 
technology community with relevant expertise.
    (5) The integrated product team for a short-term objective shall be 
responsible for--
            (A) identifying, defining, and prioritizing the enabling 
        capabilities that are necessary for achieving the objective;
            (B) identifying deficiencies in the enabling capabilities 
        that must be addressed if the short-term objective is to be 
        achieved; and
            (C) working with the Air Force science and technology 
        community to identify science and technology projects and 
        programs that should be undertaken to eliminate each deficiency 
        in an enabling capability.

    (6) In carrying out subsection (a), the Secretary of the Air Force 
shall review the short-term science and technology objectives identified 
pursuant to this subsection and, for each such objective, at a minimum--
            (A) consider the work of the integrated product team 
        conducted pursuant to paragraph (5); and
            (B) identify the science and technology work of the Air 
        Force that should be undertaken to eliminate each deficiency in 
        enabling capabilities that is identified by the integrated 
        product team pursuant to subparagraph (B) of that paragraph.

    (e) Comptroller General Review.--(1) Not later than 90 days after 
the Secretary of the Air Force completes the review required by 
subsection (a), the Comptroller General shall submit to Congress a 
report on the results of the review. The report shall include the 
Comptroller General's assessment regarding the extent to which the 
review was conducted in compliance with the requirements of this 
section.
    (2) Immediately upon completing the review required by subsection 
(a), the Secretary of Defense shall notify the Comptroller General of 
the completion of the review. For the purposes of paragraph (1), the 
date of the notification shall be considered the date of the completion 
of the review.

[[Page 114 STAT. 1654A-49]]

SEC. 253. ENHANCEMENT OF AUTHORITIES REGARDING EDUCATION PARTNERSHIPS 
            FOR PURPOSES OF ENCOURAGING SCIENTIFIC STUDY.

    (a) Assistance in Support of Partnerships.--Subsection (b) of 
section 2194 of title 10, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by inserting ``, 
        and is encouraged to provide,'' after ``may provide'';
            (2) in paragraph (1), by inserting before the semicolon the 
        following: ``for any purpose and duration in support of such 
        agreement that the director considers appropriate''; and
            (3) by striking paragraph (2) and inserting the following 
        new paragraph (2):
            ``(2) notwithstanding the provisions of the Federal Property 
        and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) 
        or any provision of law or regulation relating to transfers of 
        surplus property, transferring to the institution any computer 
        equipment, or other scientific equipment, that is--
                    ``(A) commonly used by educational institutions;
                    ``(B) surplus to the needs of the defense 
                laboratory; and
                    ``(C) determined by the director to be appropriate 
                for support of such agreement;''.

    (b) Defense Laboratory Defined.--Subsection (e) of that section is 
amended to read as follows:
    ``(e) In this section:
            ``(1) The term `defense laboratory' means any laboratory, 
        product center, test center, depot, training and educational 
        organization, or operational command under the jurisdiction of 
        the Department of Defense.
            ``(2) The term `local educational agency' has the meaning 
        given such term in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801).''.

SEC. 254. RECOGNITION OF THOSE INDIVIDUALS INSTRUMENTAL TO NAVAL 
            RESEARCH EFFORTS DURING THE PERIOD FROM BEFORE WORLD WAR II 
            THROUGH THE END OF THE COLD WAR.

    (a) Findings.--Congress makes the following findings:
            (1) The contributions of the Nation's scientific community 
        and of science research to the victory of the United States and 
        its allies in World War II resulted in the understanding that 
        science and technology are of critical importance to the future 
        security of the Nation.
            (2) Academic institutions and oceanographers provided vital 
        support to the Navy and the Marine Corps during World War II.
            (3) Congress created the Office of Naval Research in the 
        Department of the Navy in 1946 to ensure the availability of 
        resources for research in oceanography and other fields related 
        to the missions of the Navy and Marine Corps.
            (4) The Office of Naval Research of the Department of the 
        Navy, in addition to its support of naval research within the 
        Federal Government, has also supported the conduct of 
        oceanographic and scientific research through partnerships with 
        educational and scientific institutions throughout the Nation.

[[Page 114 STAT. 1654A-50]]

            (5) These partnerships have long been recognized as among 
        the most innovative and productive research partnerships ever 
        established by the Federal Government and have resulted in a 
        vast improvement in understanding of basic ocean processes and 
        the development of new technologies critical to the security and 
        defense of the Nation.

    (b) Congressional Recognition and Appreciation.--Congress--
            (1) applauds the commitment and dedication of the officers, 
        scientists, researchers, students, and administrators who were 
        instrumental to the program of partnerships for oceanographic 
        and scientific research between the Federal Government and 
        academic institutions, including those individuals who helped 
        forge that program before World War II, implement it during 
        World War II, and improve it throughout the Cold War;
            (2) recognizes that the Nation, in ultimately prevailing in 
        the Cold War, relied to a significant extent on research 
        supported by, and technologies developed through, those 
        partnerships and, in particular, on the superior understanding 
        of the ocean environment generated through that research;
            (3) supports efforts by the Secretary of the Navy and the 
        Chief of Naval Research to honor those individuals, who 
        contributed so greatly and unselfishly to the naval mission and 
        the national defense, through those partnerships during the 
        period beginning before World War II and continuing through the 
        end of the Cold War; and
            (4) expresses appreciation for the ongoing efforts of the 
        Office of Naval Research to support oceanographic and scientific 
        research and the development of researchers in those fields, to 
        ensure that such partnerships will continue to make important 
        contributions to the defense and the general welfare of the 
        Nation.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Joint warfighting capabilities assessment teams.

                  Subtitle B--Environmental Provisions

Sec. 311. Establishment of additional environmental restoration account 
           and use of accounts for operation and monitoring of 
           environmental remedies.
Sec. 312. Certain environmental restoration activities.
Sec. 313. Annual reports under Strategic Environmental Research and 
           Development Program.
Sec. 314. Payment of fines and penalties for environmental compliance at 
           Fort Wainwright, Alaska.
Sec. 315. Payment of fines or penalties imposed for environmental 
           compliance violations at other Department of Defense 
           facilities.
Sec. 316. Reimbursement for certain costs in connection with the former 
           Nansemond Ordnance Depot Site, Suffolk, Virginia.
Sec. 317. Necessity of military low-level flight training to protect 
           national security and enhance military readiness.
Sec. 318. Ship disposal project.
Sec. 319. Defense Environmental Security Corporate Information 
           Management Program.

[[Page 114 STAT. 1654A-51]]

Sec. 320. Report on Plasma Energy Pyrolysis System.
Sec. 321. Sense of Congress regarding environmental restoration of 
           former defense manufacturing site, Santa Clarita, California.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Use of appropriated funds to cover operating expenses of 
           commissary stores.
Sec. 332. Adjustment of sales prices of commissary store goods and 
           services to cover certain expenses.
Sec. 333. Use of surcharges for construction and improvement of 
           commissary stores.
Sec. 334. Inclusion of magazines and other periodicals as an authorized 
           commissary merchandise category.
Sec. 335. Use of most economical distribution method for distilled 
           spirits.
Sec. 336. Report on effects of availability of slot machines on United 
           States military installations overseas.

         Subtitle D--Department of Defense Industrial Facilities

Sec. 341. Designation of Centers of Industrial and Technical Excellence 
           and public-private partnerships to increase utilization of 
           such centers.
Sec. 342. Unutilized and underutilized plant-capacity costs of United 
           States arsenals.
Sec. 343. Arsenal support program initiative.
Sec. 344. Codification and improvement of armament retooling and 
           manufacturing support programs.

     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Inclusion of additional information in reports to Congress 
           required before conversion of commercial or industrial type 
           functions to contractor performance.
Sec. 352. Effects of outsourcing on overhead costs of Centers of 
           Industrial and Technical Excellence and Army ammunition 
           plants.
Sec. 353. Consolidation, restructuring, or reengineering of Department 
           of Defense organizations, functions, or activities.
Sec. 354. Monitoring of savings resulting from workforce reductions as 
           part of conversion of functions to performance by private 
           sector or other strategic sourcing initiatives.
Sec. 355. Performance of emergency response functions at chemical 
           weapons storage installations.
Sec. 356. Suspension of reorganization or relocation of Naval Audit 
           Service.

                Subtitle F--Defense Dependents Education

Sec. 361. Eligibility of dependents of American Red Cross employees for 
           enrollment in Department of Defense domestic dependent 
           schools in Puerto Rico.
Sec. 362. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 363. Impact aid for children with severe disabilities.
Sec. 364. Assistance for maintenance, repair, and renovation of school 
           facilities that serve dependents of members of the Armed 
           Forces and Department of Defense civilian employees.

                  Subtitle G--Military Readiness Issues

Sec. 371. Measuring cannibalization of parts, supplies, and equipment 
           under readiness reporting system.
Sec. 372. Reporting requirements regarding transfers from high-priority 
           readiness appropriations.
Sec. 373. Effects of worldwide contingency operations on readiness of 
           military aircraft and equipment.
Sec. 374. Identification of requirements to reduce backlog in 
           maintenance and repair of defense facilities.
Sec. 375. New methodology for preparing budget requests to satisfy Army 
           readiness requirements.
Sec. 376. Review of AH-64 aircraft program.
Sec. 377. Report on Air Force spare and repair parts program for C-5 
           aircraft.

                        Subtitle H--Other Matters

Sec. 381. Annual report on public sale of certain military equipment 
           identified on United States Munitions List.
Sec. 382. Resale of armor-piercing ammunition disposed of by the Army.
Sec. 383. Reimbursement by civil air carriers for support provided at 
           Johnston Atoll.

[[Page 114 STAT. 1654A-52]]

Sec. 384. Travel by Reserves on military aircraft.
Sec. 385. Overseas airlift service on Civil Reserve Air Fleet aircraft.
Sec. 386. Additions to plan for ensuring visibility over all in-transit 
           end items and secondary items.
Sec. 387. Reauthorization of pilot program for acceptance and use of 
           landing fees charged for use of domestic military airfields 
           by civil aircraft.
Sec. 388. Extension of authority to sell certain aircraft for use in 
           wildfire suppression.
Sec. 389. Damage to aviation facilities caused by alkali silica 
           reactivity.
Sec. 390. Demonstration project to increase reserve component internet 
           access and services in rural communities.
Sec. 391. Additional conditions on implementation of Defense Joint 
           Accounting System.
Sec. 392. Report on Defense Travel System.
Sec. 393. Review of Department of Defense costs of maintaining 
           historical properties.

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
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, $19,280,381,000.
            (2) For the Navy, $23,766,610,000.
            (3) For the Marine Corps, $2,826,291,000.
            (4) For the Air Force, $22,395,221,000.
            (5) For Defense-wide activities, $11,740,569,000.
            (6) For the Army Reserve, $1,561,418,000.
            (7) For the Naval Reserve, $978,946,000.
            (8) For the Marine Corps Reserve, $144,159,000.
            (9) For the Air Force Reserve, $1,903,859,000.
            (10) For the Army National Guard, $3,233,835,000.
            (11) For the Air National Guard, $3,468,375,000.
            (12) For the Defense Inspector General, $144,245,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $8,574,000.
            (14) For Environmental Restoration, Army, $389,932,000.
            (15) For Environmental Restoration, Navy, $294,038,000.
            (16) For Environmental Restoration, Air Force, $376,300,000.
            (17) For Environmental Restoration, Defense-wide, 
        $21,412,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $231,499,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $55,900,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $869,000,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $25,000,000.
            (22) For Defense Health Program, $11,480,123,000.
            (23) For Cooperative Threat Reduction programs, 
        $443,400,000.
            (24) For Overseas Contingency Operations Transfer Fund, 
        $4,100,577,000.

[[Page 114 STAT. 1654A-53]]

            (25) For Quality of Life Enhancements, Defense-wide, 
        $10,500,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2001 
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, $916,276,000.
            (2) For the National Defense Sealift Fund, $388,158,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2001 
from the Armed Forces Retirement Home Trust Fund the sum of $69,832,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 2001 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.

    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the same 
        purposes and the same period as, the amounts in the accounts to 
        which transferred; and
            (2) may not be expended for an item that has been denied 
        authorization of appropriations by Congress.

    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the transfer 
authority provided in section 1001.

SEC. 305. JOINT WARFIGHTING CAPABILITIES ASSESSMENT TEAMS.

    Of the total amount authorized to be appropriated under section 
301(5) for operation and maintenance for Defense-wide activities for the 
Joint Staff, $4,000,000 is available only for the improvement of the 
performance of analyses by the joint warfighting capabilities assessment 
teams of the Joint Requirements Oversight Council.

                  Subtitle B--Environmental Provisions

SEC. 311. ESTABLISHMENT OF ADDITIONAL ENVIRONMENTAL RESTORATION ACCOUNT 
            AND USE OF ACCOUNTS FOR OPERATION AND MONITORING OF 
            ENVIRONMENTAL REMEDIES.

    (a) Account for Formerly Used Defense Sites.--Subsection (a) of 
section 2703 of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
            ``(5) An account to be known as the `Environmental 
        Restoration Account, Formerly Used Defense Sites'.''.

[[Page 114 STAT. 1654A-54]]

    (b) Operation and Monitoring of Environmental Remedies.--Such 
section is further amended by adding at the end the following new 
subsection:
    ``(f ) Sole Source of Funds for Operation and Monitoring of 
Environmental Remedies.--(1) The sole source of funds for all phases of 
an environmental remedy at a site under the jurisdiction of the 
Department of Defense or a formerly used defense site shall be the 
applicable environmental restoration account established under 
subsection (a).
    ``(2) In this subsection, the term `environmental remedy' has the 
meaning given the term `remedy' in section 101 of CERCLA (42 U.S.C. 
9601).''.

SEC. 312. CERTAIN ENVIRONMENTAL RESTORATION ACTIVITIES.

    Subsection (b) of section 2703 of title 10, United States Code, is 
amended to read as follows:
    ``(b) Obligation of Authorized Amounts.--(1) Funds authorized for 
deposit in an account under subsection (a) may be obligated or expended 
from the account only--
            ``(A) to carry out the environmental restoration functions 
        of the Secretary of Defense and the Secretaries of the military 
        departments under this chapter and under any other provision of 
        law; and
            ``(B) to pay for the costs of permanently relocating a 
        facility because of a release or threatened release of hazardous 
        substances, pollutants, or contaminants from--
                    ``(i) real property on which the facility is located 
                and that is currently under the jurisdiction of the 
                Secretary of Defense or the Secretary of a military 
                department; or
                    ``(ii) real property on which the facility is 
                located and that was under the jurisdiction of the 
                Secretary of Defense or the Secretary of a military 
                department at the time of the actions leading to the 
                release or threatened release.

    ``(2) The authority provided by paragraph (1)(B) expires September 
30, 2003. The Secretary of Defense or the Secretary of a military 
department may not pay the costs of permanently relocating a facility 
under such paragraph unless the Secretary--
            ``(A) determines that permanent relocation--
                    ``(i) is the most cost effective method of 
                responding to the release or threatened release of 
                hazardous substances, pollutants, or contaminants from 
                the real property on which the facility is located;
                    ``(ii) has the approval of relevant regulatory 
                agencies; and
                    ``(iii) is supported by the affected community; and
            ``(B) submits to Congress written notice of the 
        determination before undertaking the permanent relocation of the 
        facility, including a description of the response action taken 
        or to be taken in connection with the permanent relocation and a 
        statement of the costs incurred or to be incurred in connection 
        with the permanent relocation.

    ``(3) If relocation costs are to be paid under paragraph (1)(B) with 
respect to a facility located on real property described in clause (ii) 
of such paragraph, the Secretary of Defense or the Secretary of the 
military department concerned may use only fund transfer mechanisms 
otherwise available to the Secretary.

[[Page 114 STAT. 1654A-55]]

    ``(4) Funds authorized for deposit in an account under subsection 
(a) shall remain available until expended. Not more than 5 percent of 
the funds deposited in an account under subsection (a) for a fiscal year 
may be used to pay relocation costs under paragraph (1)(B).''.

SEC. 313. ANNUAL REPORTS UNDER STRATEGIC ENVIRONMENTAL RESEARCH AND 
            DEVELOPMENT PROGRAM.

    (a) Repeal of Requirement for Annual Report from Scientific Advisory 
Board.--Section 2904 of title 10, United States Code, is amended--
            (1) by striking subsection (h); and
            (2) by redesignating subsection (i) as subsection (h).

    (b) Inclusion of Actions of Board in Annual Reports of Council.--
Section 2902(d)(3) of such title is amended by adding at the end the 
following new subparagraph:
                    ``(D) A summary of the actions of the Strategic 
                Environmental Research and Development Program 
                Scientific Advisory Board during the year preceding the 
                year in which the report is submitted and any 
                recommendations, including recommendations on program 
                direction and legislation, that the Advisory Board 
                considers appropriate regarding the program.''.

SEC. 314. PAYMENT OF FINES AND PENALTIES FOR ENVIRONMENTAL COMPLIANCE AT 
            FORT WAINWRIGHT, ALASKA.

    The Secretary of Defense, or the Secretary of the Army, may pay, as 
part of a settlement of liability, a fine or penalty of not more than 
$2,000,000 for matters addressed in the Notice of Violation issued on 
March 5, 1999, by the Administrator of the Environmental Protection 
Agency to Fort Wainwright, Alaska.

SEC. 315. PAYMENT OF FINES OR PENALTIES IMPOSED FOR ENVIRONMENTAL 
            COMPLIANCE VIOLATIONS AT OTHER DEPARTMENT OF DEFENSE 
            FACILITIES.

    (a) Army Violations.--Using amounts authorized to be appropriated by 
section 301(1) for operation and maintenance for the Army, the Secretary 
of the Army may pay the following amounts in connection with 
environmental compliance violations at the following locations:
            (1) $993,000 for a supplemental environmental project to 
        implement an installation-wide hazardous substance management 
        system at Walter Reed Army Medical Center, Washington, District 
        of Columbia, in satisfaction of a fine imposed by Environmental 
        Protection Agency Region 3 under the Solid Waste Disposal Act 
        (42 U.S.C. 6901 et seq.).
            (2) $377,250 for a supplemental environmental project to 
        install new parts washers at Fort Campbell, Kentucky, in 
        satisfaction of a fine imposed by Environmental Protection 
        Agency Region 4 under the Solid Waste Disposal Act.
            (3) $20,701 for a supplemental environmental project to 
        upgrade the wastewater treatment plant at Fort Gordon, Georgia, 
        in satisfaction of a fine imposed by the State of Georgia under 
        the Solid Waste Disposal Act.
            (4) $78,500 for supplemental environmental projects to 
        reduce the generation of hazardous waste at Pueblo Chemical 
        Depot, Colorado, in satisfaction of a fine imposed by the State 
        of Colorado under the Solid Waste Disposal Act.

[[Page 114 STAT. 1654A-56]]

            (5) $20,000 for a supplemental environmental project to 
        repair cracks in floors of igloos used to store munitions 
        hazardous waste at Deseret Chemical Depot, Utah, in satisfaction 
        of a fine imposed by the State of Utah under the Solid Waste 
        Disposal Act.
            (6) $7,975 for payment to the Texas Natural Resource 
        Conservation Commission of a cash penalty for permit violations 
        assessed with respect to Fort Sam Houston, Texas, under the 
        Solid Waste Disposal Act.

    (b) Navy Violations.--Using amounts authorized to be appropriated by 
section 301(2) for operation and maintenance for the Navy, the Secretary 
of the Navy may pay the following amounts in connection with 
environmental compliance violations at the following locations:
            (1) $108,800 for payment to the West Virginia Division of 
        Environmental Protection of a cash penalty with respect to 
        Allegany Ballistics Laboratory, West Virginia, under the Solid 
        Waste Disposal Act.
            (2) $5,000 for payment to Environmental Protection Agency 
        Region 6 of a cash penalty with respect to Naval Air Station, 
        Corpus Christi, Texas, under the Clean Air Act (42 U.S.C. 7401).
            (3) $1,650 for payment to Environmental Protection Agency 
        Region 3 of a cash penalty with respect to Marine Corps Combat 
        Development Command, Quantico, Virginia, under the Clean Air 
        Act.

SEC. 316. REIMBURSEMENT FOR CERTAIN COSTS IN CONNECTION WITH THE FORMER 
            NANSEMOND ORDNANCE DEPOT SITE, SUFFOLK, VIRGINIA.

    (a) Authority.--The Secretary of Defense may pay, using funds 
described in subsection (b), not more than $98,210 to the Former 
Nansemond Ordnance Depot Site Special Account within the Hazardous 
Substance Superfund established by section 9507 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9507) to reimburse the Environmental Protection 
Agency for costs incurred by the agency in overseeing a time critical 
removal action under CERCLA being performed by the Department of Defense 
under the Defense Environmental Restoration Program for ordnance and 
explosive safety hazards at the Former Nansemond Ordnance Depot Site, 
Suffolk, Virginia, pursuant to an Interagency Agreement entered into by 
the Department of the Army and the Environmental Protection Agency on 
January 3, 2000.
    (b) Source of Funds.--Any payment under subsection (a) shall be made 
using amounts authorized to be appropriated by section 301 to the 
Environmental Restoration Account, Formerly Used Defense Sites, 
established by paragraph (5) of section 2703(a) of title 10, United 
States Code, as added by section 311(a) of this Act.
    (c) Definitions.--In this section:
            (1) The term ``CERCLA'' means the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 1980 
        (42 U.S.C. 9601 et seq.).
            (2) The term ``Defense Environmental Restoration Program'' 
        means the program of environmental restoration carried out under 
        chapter 160 of title 10, United States Code.

[[Page 114 STAT. 1654A-57]]

SEC. 317. NECESSITY OF MILITARY LOW-LEVEL FLIGHT TRAINING TO PROTECT 
            NATIONAL SECURITY AND ENHANCE MILITARY READINESS.

    Nothing in the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) or the regulations implementing such law shall require the 
Secretary of Defense or the Secretary of a military department to 
prepare a programmatic, nation-wide environmental impact statement for 
low-level flight training as a precondition to the use by the Armed 
Forces of an airspace for the performance of low-level training flights.

SEC. 318. SHIP DISPOSAL PROJECT.

    (a) Continuation of Project; Purpose.--During fiscal year 2001, the 
Secretary of the Navy shall continue to carry out the ship disposal 
project within the United States to permit the Secretary to assemble 
appropriate data on the cost of scrapping naval vessels.
    (b) Use of Competitive Procedures.--The Secretary shall use 
competitive procedures to award all task orders under the primary 
contracts under the ship disposal project.
    (c) Report.--Not later than December 31, 2000, the Secretary shall 
submit to the congressional defense committees a report on the ship 
disposal project. The report shall contain the following:
            (1) A description of the competitive procedures used for the 
        solicitation and award of all task orders under the project.
            (2) A description of the task orders awarded under the 
        project.
            (3) An assessment of the results of the project as of the 
        date of the report, including the performance of contractors 
        under the project.
            (4) The proposed strategy of the Navy for future procurement 
        of ship scrapping activities.

SEC. 319. DEFENSE ENVIRONMENTAL SECURITY CORPORATE INFORMATION 
            MANAGEMENT PROGRAM.

    (a) Management and Oversight of Program.--The Chief Information 
Officer of the Department of Defense shall ensure that management and 
oversight of the Defense Environmental Security Corporate Information 
Management Program is consistent with the requirements of the Clinger-
Cohen Act of 1996 (divisions D and E of Public Law 104-106), section 
2223 of title 10, United States Code, Department of Defense Directives 
5000.1, 5000.2-R, and 5137.1, and all other laws, directives, 
regulations, and management controls applicable to investment in 
information technology and related services.
    (b) Program Report Required.--Not later than 60 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report on the Defense 
Environmental Security Corporate Information Management Program.
    (c) Mission.--The report shall include a mission statement and 
strategic objectives for the Defense Environmental Security Corporate 
Information Management Program, including the recommendations of the 
Secretary for the future mission and objectives of the Program.
    (d) Personnel, Organization, and Oversight.--The report shall 
include--

[[Page 114 STAT. 1654A-58]]

            (1) the personnel requirements and organizational structure 
        of the Defense Environmental Security Corporate Information 
        Management Program to carry out the mission statement; and
            (2) a discussion of--
                    (A) the means by which the Program will ensure 
                program accountability, including accountability for all 
                past, current, and future activities funded under the 
                Program; and
                    (B) the role of the Chief Information Officer of the 
                Department of Defense in ensuring program accountability 
                as required by subsection (a).

    (e) Program Activities.--The report shall include a discussion of 
the means by which the Defense Environmental Security Corporate 
Information Management Program will address or provide--
            (1) information access procedures that keep pace with 
        current and evolving requirements for information access;
            (2) data standardization and systems integration;
            (3) product failures and cost-effective results;
            (4) user confidence and utilization; and
            (5) program continuity.

SEC. 320. REPORT ON PLASMA ENERGY PYROLYSIS SYSTEM.

    (a) Report Required.--Not later than February 1, 2001, the Secretary 
of the Army shall submit to the congressional defense committees a 
report on the Plasma Energy Pyrolysis System.
    (b) Report Elements.--The report on the Plasma Energy Pyrolysis 
System shall include the following:
            (1) An analysis of available information and data on the 
        fixed-transportable unit demonstration phase of the System and 
        on the mobile unit demonstration phase of the System.
            (2) Recommendations regarding future applications for each 
        phase of the System described in paragraph (1).
            (3) A statement of the projected funding for such future 
        applications.

SEC. 321. SENSE OF CONGRESS REGARDING ENVIRONMENTAL RESTORATION OF 
            FORMER DEFENSE MANUFACTURING SITE, SANTA CLARITA, 
            CALIFORNIA.

    It is the sense of the Congress that--
            (1) there exists a 1,000-acre former defense manufacturing 
        site in Santa Clarita, California (known as the ``Santa Clarita 
        site''), that could be environmentally restored to serve a 
        future role in the community, and every effort should be made to 
        apply all known public and private sector innovative 
        technologies to restore the Santa Clarita site to productive use 
        for the benefit of the community; and
            (2) the experience gained from environmental restoration at 
        the Santa Clarita site by private and public sector partnerships 
        has the potential to benefit not only the community of Santa 
        Clarita, but all sites in need of environmental restoration.

[[Page 114 STAT. 1654A-59]]

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. USE OF APPROPRIATED FUNDS TO COVER OPERATING EXPENSES OF 
            COMMISSARY STORES.

    (a) In General.--(1) Section 2484 of title 10, United States Code, 
is amended to read as follows:

``Sec. 2484. Commissary stores: use of appropriated funds to cover 
                        operating expenses

    ``(a) Operation of Agency and System.--Except as otherwise provided 
in this title, the operation of the Defense Commissary Agency and the 
defense commissary system may be funded using such amounts as are 
appropriated for such purpose.
    ``(b) Operating Expenses of Commissary Stores.--Appropriated funds 
may be used to cover the expenses of operating commissary stores and 
central product processing facilities of the defense commissary system. 
For purposes of this subsection, operating expenses include the 
following:
            ``(1) Salaries and wages of employees of the United States, 
        host nations, and contractors supporting commissary store 
        operations.
            ``(2) Utilities.
            ``(3) Communications.
            ``(4) Operating supplies and services.
            ``(5) Second destination transportation costs within or 
        outside the United States.
            ``(6) Any cost associated with above-store-level management 
        or other indirect support of a commissary store or a central 
        product processing facility, including equipment maintenance and 
        information technology costs.''.

    (2) The table of sections at the beginning of chapter 147 of such 
title is amended by striking the item relating to section 2484 and 
inserting the following new item:

``2484. Commissary stores: use of appropriated funds to cover operating 
           expenses.''.

    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.

SEC. 332. ADJUSTMENT OF SALES PRICES OF COMMISSARY STORE GOODS AND 
            SERVICES TO COVER CERTAIN EXPENSES.

    (a) Adjustment Required.--Section 2486 of title 10, United States 
Code, is amended--
            (1) in subsection (c), by striking ``section 2484(b) or'' 
        and inserting ``subsection (d) or section''; and
            (2) in subsection (d)--
                    (A) in paragraph (1), by striking ``sections 2484 
                and'' and inserting ``section''; and
                    (B) by adding at the end the following new 
                paragraph:

    ``(3) The sales price of merchandise and services sold in, at, or by 
commissary stores shall be adjusted to cover the following:
            ``(A) The cost of first destination commercial 
        transportation of the merchandise in the United States to the 
        place of sale.
            ``(B) The actual or estimated cost of shrinkage, spoilage, 
        and pilferage of merchandise under the control of commissary 
        stores.''.

[[Page 114 STAT. 1654A-60]]

    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.

SEC. 333. USE OF SURCHARGES FOR CONSTRUCTION AND IMPROVEMENT OF 
            COMMISSARY STORES.

    (a) Expansion of Authorized Uses.--Subsection (b) of section 2685 of 
title 10, United States Code, is amended to read as follows:
    ``(b) Use for Construction, Repair, Improvement, and Maintenance.--
(1) The Secretary of Defense may use the proceeds from the adjustments 
or surcharges authorized by subsection (a) only--
            ``(A) 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
            ``(B) to cover environmental evaluation and construction 
        costs related to activities described in paragraph (1), 
        including costs for surveys, administration, overhead, planning, 
        and design.

    ``(2) In paragraph (1), 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.''.
    (b) Authority of Secretary of Defense.--Such section is further 
amended--
            (1) in subsection (a), by striking ``Secretary of a military 
        department, under regulations established by him and approved by 
        the Secretary of Defense,'' and inserting ``Secretary of 
        Defense'';
            (2) in subsection (c)--
                    (A) by striking ``Secretary of a military 
                department, with the approval of the Secretary of 
                Defense and'' and inserting ``Secretary of Defense, with 
                the approval of''; and
                    (B) by striking ``Secretary of the military 
                department determines'' and inserting ``Secretary 
                determines''; and
            (3) in subsection (d)(1), by striking ``Secretary of a 
        military department'' and inserting ``Secretary of Defense''.

    (c) Effective Date.--The amendment made by subsection (a) shall take 
effect on October 1, 2001.

SEC. 334. INCLUSION OF MAGAZINES AND OTHER PERIODICALS AS AN AUTHORIZED 
            COMMISSARY MERCHANDISE CATEGORY.

    (a) Additional Authorized Category.--Subsection (b) of section 2486 
of title 10, United States Code, is amended--
            (1) by redesignating paragraph (11) as paragraph (12); and
            (2) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) Magazines and other periodicals.''.

    (b) Conforming Amendments.--Subsection (f ) of such section is 
amended--
            (1) by striking ``(1)'' before ``Notwithstanding'';
            (2) by striking ``items in the merchandise categories 
        specified in paragraph (2)'' and inserting ``tobacco products''; 
        and
            (3) by striking paragraph (2).

[[Page 114 STAT. 1654A-61]]

SEC. 335. USE OF MOST ECONOMICAL DISTRIBUTION METHOD FOR DISTILLED 
            SPIRITS.

    Section 2488(c) of title 10, United States Code, is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 336. REPORT ON EFFECTS OF AVAILABILITY OF SLOT MACHINES ON UNITED 
            STATES MILITARY INSTALLATIONS OVERSEAS.

    (a) Report Required.--Not later than March 31, 2001, the Secretary 
of Defense shall submit to Congress a report evaluating the effect that 
the ready availability of slot machines as a morale, welfare, and 
recreation activity on United States military installations outside of 
the United States has on members of the Armed Forces, their dependents, 
and other persons who use such slot machines, the morale of military 
communities overseas, and the personal financial stability of members of 
the Armed Forces.
    (b) Matters To Be Included.--The Secretary shall include in the 
report--
            (1) an estimate of the number of persons who used such slot 
        machines during the preceding two years and, of such persons, 
        the percentage who were enlisted members (shown both in the 
        aggregate and by pay grade), officers (shown both in the 
        aggregate and by pay grade), Department of Defense civilians, 
        other United States persons, and foreign nationals;
            (2) to the extent feasible, information with respect to 
        military personnel referred to in paragraph (1) showing the 
        number (as a percentage and by pay grade) who have--
                    (A) sought financial services counseling at least 
                partially due to the use of such slot machines;
                    (B) qualified for Government financial assistance at 
                least partially due to the use of such slot machines; or
                    (C) had a personal check returned for insufficient 
                funds or received any other nonpayment notification from 
                a creditor at least partially due to the use of such 
                slot machines; and
            (3) to the extent feasible, information with respect to the 
        average amount expended by each category of persons referred to 
        in paragraph (1) in using such slot machines per visit, to be 
        shown by pay grade in the case of military personnel.

         Subtitle D--Department of Defense Industrial Facilities

SEC. 341. DESIGNATION OF CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE 
            AND PUBLIC-PRIVATE PARTNERSHIPS TO INCREASE UTILIZATION OF 
            SUCH CENTERS.

    (a) Designation Method.--Subsection (a) of section 2474 of title 10, 
United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The Secretary of Defense'' and 
                inserting ``The Secretary concerned, or the Secretary of 
                Defense in the case of a Defense Agency,''; and
                    (B) by striking ``of the activity'' and inserting 
                ``of the designee'';
            (2) in paragraph (2)--

[[Page 114 STAT. 1654A-62]]

                    (A) by inserting ``of Defense'' after ``The 
                Secretary''; and
                    (B) by striking ``depot-level activities'' and 
                inserting ``Centers of Industrial and Technical 
                Excellence''; and
            (3) in paragraph (3)--
                    (A) by striking ``depot-level operations'' and 
                inserting ``operations at Centers of Industrial and 
                Technical Excellence'';
                    (B) by striking ``depot-level activities'' and 
                inserting ``the Centers''; and
                    (C) by striking ``such activities'' and inserting 
                ``the Centers''.

    (b) Public-Private Partnerships.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Public-Private Partnerships.--(1) To achieve one or more 
objectives set forth in paragraph (2), the Secretary designating a 
Center of Industrial and Technical Excellence under subsection (a) may 
authorize and encourage the head of the Center to enter into public-
private cooperative arrangements (in this section referred to as a 
`public-private partnership') to provide for any of the following:
            ``(A) For employees of the Center, private industry, or 
        other entities outside the Department of Defense to perform 
        (under contract, subcontract, or otherwise) work related to the 
        core competencies of the Center, including any depot-level 
        maintenance and repair work that involves one or more core 
        competencies of the Center.
            ``(B) For private industry or other entities outside the 
        Department of Defense to use, for any period of time determined 
        to be consistent with the needs of the Department of Defense, 
        any facilities or equipment of the Center that are not fully 
        utilized for a military department's own production or 
        maintenance requirements.

    ``(2) The objectives for exercising the authority provided in 
paragraph (1) are as follows:
            ``(A) To maximize the utilization of the capacity of a 
        Center of Industrial and Technical Excellence.
            ``(B) To reduce or eliminate the cost of ownership of a 
        Center by the Department of Defense in such areas of 
        responsibility as operations and maintenance and environmental 
        remediation.
            ``(C) To reduce the cost of products of the Department of 
        Defense produced or maintained at a Center.
            ``(D) To leverage private sector investment in--
                    ``(i) such efforts as plant and equipment 
                recapitalization for a Center; and
                    ``(ii) the promotion of the undertaking of 
                commercial business ventures at a Center.
            ``(E) To foster cooperation between the armed forces and 
        private industry.

    ``(3) If the Secretary concerned, or the Secretary of Defense in the 
case of a Defense Agency, authorizes the use of public-private 
partnerships under this subsection, the Secretary shall submit to 
Congress a report evaluating the need for loan guarantee authority, 
similar to the ARMS Initiative loan guarantee program under section 4555 
of this title, to facilitate the establishment

[[Page 114 STAT. 1654A-63]]

of public-private partnerships and the achievement of the objectives set 
forth in paragraph (2).''.
    (c) Private Sector Use of Excess Capacity.--Such section is further 
amended--
            (1) by striking subsection (d);
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):

    ``(c) Private Sector Use of Excess Capacity.--Any facilities or 
equipment of a Center of Industrial and Technical Excellence made 
available to private industry may be used to perform maintenance or to 
produce goods in order to make more efficient and economical use of 
Government-owned industrial plants and encourage the creation and 
preservation of jobs to ensure the availability of a workforce with the 
necessary manufacturing and maintenance skills to meet the needs of the 
armed forces.''.
    (d) Crediting of Amounts for Performance.--Subsection (d) of such 
section, as redesignated by subsection (c)(2), is amended by adding at 
the end the following new sentences: ``Consideration in the form of 
rental payments or (notwithstanding section 3302(b) of title 31) in 
other forms may be accepted for a use of property accountable under a 
contract performed pursuant to this section. Notwithstanding section 
2667(d) of this title, revenues generated pursuant to this section shall 
be available for facility operations, maintenance, and environmental 
restoration at the Center where the leased property is located.''.
    (e) Availability of Excess Equipment to Private-Sector Partners.--
Such section is further amended by adding at the end the following new 
subsections:
    ``(e) Availability of Excess Equipment to Private-Sector Partners.--
Equipment or facilities of a Center of Industrial and Technical 
Excellence may be made available for use by a private-sector entity 
under this section only if--
            ``(1) the use of the equipment or facilities will not have a 
        significant adverse effect on the readiness of the armed forces, 
        as determined by the Secretary concerned or, in the case of a 
        Center in a Defense Agency, by the Secretary of Defense; and
            ``(2) the private-sector entity agrees--
                    ``(A) to reimburse the Department of Defense for the 
                direct and indirect costs (including any rental costs) 
                that are attributable to the entity's use of the 
                equipment or facilities, as determined by that 
                Secretary; and
                    ``(B) to hold harmless and indemnify the United 
                States from--
                          ``(i) any claim for damages or injury to any 
                      person or property arising out of the use of the 
                      equipment or facilities, except in a case of 
                      willful conduct or gross negligence; and
                          ``(ii) any liability or claim for damages or 
                      injury to any person or property arising out of a 
                      decision by the Secretary concerned or the 
                      Secretary of Defense to suspend or terminate that 
                      use of equipment or facilities during a war or 
                      national emergency.

    ``(f ) Construction of Provision.--Nothing in this section may be 
construed to authorize a change, otherwise prohibited by law,

[[Page 114 STAT. 1654A-64]]

from the performance of work at a Center of Industrial and Technical 
Excellence by Department of Defense personnel to performance by a 
contractor.''.
    (f ) Use of Working Capital-Funded Facilities.--Section 2208( j)(1) 
of title 10, United States Code, is amended--
            (1) by striking ``contract; and'' at the end of subparagraph 
        (A) and all that follows through ``(B) the solicitation'' and 
        inserting ``contract, and the solicitation'';
            (2) by striking the period at the end and inserting ``; 
        or''; and
            (3) by adding at the end the following new subparagraph:
            ``(B) the Secretary would advance the objectives set forth 
        in section 2474(b)(2) of this title by authorizing the facility 
        to do so.''.

    (g) Repeal of General Authority To Lease Excess Depot-Level 
Equipment and Facilities to Outside Tenants.--(1) Section 2471 of title 
10, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 146 of such 
title is amended by striking the item relating to section 2471.

SEC. 342. UNUTILIZED AND UNDERUTILIZED PLANT-CAPACITY COSTS OF UNITED 
            STATES ARSENALS.

    (a) Treatment of Unutilized and Underutilized Plant-Capacity 
Costs.--Chapter 433 of title 10, United States Code, is amended by 
inserting after section 4540 the following new section:

``Sec. 4541. Army arsenals: treatment of unutilized or underutilized 
                        plant-capacity costs

    ``(a) Estimate of Costs.--The Secretary of the Army shall include in 
the budget justification documents submitted to Congress in support of 
the President's budget for a fiscal year submitted under section 1105 of 
title 31 an estimate of the funds to be required in that fiscal year to 
cover unutilized and underutilized plant-capacity costs at Army 
arsenals.
    ``(b) Use of Funds.--Funds appropriated to the Secretary of the Army 
for a fiscal year to cover unutilized and underutilized plant-capacity 
costs at Army arsenals shall be used in such fiscal year only for such 
costs.
    ``(c) Treatment of Costs.--(1) The Secretary of the Army shall not 
include unutilized and underutilized plant-capacity costs when 
evaluating the bid of an Army arsenal for purposes of the arsenal's 
contracting to provide a good or service to a Government agency.
    ``(2) When an Army arsenal is serving as a subcontractor to a 
private-sector entity with respect to a good or service to be provided 
to a Government agency, the cost charged by the arsenal shall not 
include unutilized and underutilized plant-capacity costs that are 
funded by a direct appropriation.
    ``(d) Definitions.--In this section:
            ``(1) The term `Army arsenal' means a Government-owned, 
        Government-operated defense plant of the Department of the Army 
        that manufactures weapons, weapon components, or both.
            ``(2) The term `unutilized and underutilized plant-capacity 
        costs' means the costs associated with operating and maintaining 
        the facilities and equipment of an Army arsenal that the 
        Secretary of the Army determines are required to be kept for 
        mobilization needs, in those months in which the facilities

[[Page 114 STAT. 1654A-65]]

        and equipment are not used or are used only 20 percent or less 
        of available work days.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
4540 the following new item:

``4541. Army arsenals: treatment of unutilized or underutilized plant-
           capacity costs.''.

SEC. 343. ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Demonstration Program Required.--To help maintain the viability 
of the Army manufacturing arsenals and the unique capabilities of these 
arsenals to support the national security interests of the United 
States, the Secretary of the Army shall carry out a demonstration 
program under this section during fiscal years 2001 and 2002 at each 
manufacturing arsenal of the Department of the Army.
    (b) Purposes of Demonstration Program.--The purposes of the 
demonstration program are as follows:
            (1) To provide for the utilization of the existing skilled 
        workforce at the Army manufacturing arsenals by commercial 
        firms.
            (2) To provide for the reemployment and retraining of 
        skilled workers who, as a result of declining workload and 
        reduced Army spending on arsenal production requirements at 
        these Army arsenals, are idled or underemployed.
            (3) To encourage commercial firms, to the maximum extent 
        practicable, to use these Army arsenals for commercial purposes.
            (4) To increase the opportunities for small businesses 
        (including socially and economically disadvantaged small 
        business concerns and new small businesses) to use these Army 
        arsenals for those purposes.
            (5) To maintain in the United States a work force having the 
        skills in manufacturing processes that are necessary to meet 
        industrial emergency planned requirements for national security 
        purposes.
            (6) To demonstrate innovative business practices, to support 
        Department of Defense acquisition reform, and to serve as both a 
        model and a laboratory for future defense conversion initiatives 
        of the Department of Defense.
            (7) To the maximum extent practicable, to allow the 
        operation of these Army arsenals to be rapidly responsive to the 
        forces of free market competition.
            (8) To reduce or eliminate the cost of Government ownership 
        of these Army arsenals, including the costs of operations and 
        maintenance, the costs of environmental remediation, and other 
        costs.
            (9) To reduce the cost of products of the Department of 
        Defense produced at these Army arsenals.
            (10) To leverage private investment at these Army arsenals 
        through long-term facility use contracts, property management 
        contracts, leases, or other agreements that support and advance 
        the demonstration program for the following activities:
                    (A) Recapitalization of plant and equipment.
                    (B) Environmental remediation.
                    (C) Promotion of commercial business ventures.

[[Page 114 STAT. 1654A-66]]

                    (D) Other activities approved by the Secretary of 
                the Army.
            (11) To foster cooperation between the Department of the 
        Army, property managers, commercial interests, and State and 
        local agencies in the implementation of sustainable development 
        strategies and investment in these Army arsenals.

    (c) Contract Authority.--(1) In the case of each Army manufacturing 
arsenal, the Secretary of the Army may enter into contracts with 
commercial firms to authorize the contractors, consistent with section 
4543 of title 10, United States Code--
            (A) to use the arsenal, or a portion of the arsenal, and the 
        skilled workforce at the arsenal to manufacture weapons, weapon 
        components, or related products consistent with the purposes of 
        the program; and
            (B) to enter into subcontracts for the commercial use of the 
        arsenal consistent with such purposes.

    (2) A contract under paragraph (1) shall require the contractor to 
contribute toward the operation and maintenance of the Army 
manufacturing arsenal covered by the contract.
    (3) In the event an Army manufacturing arsenal is converted to 
contractor operation, the Secretary may enter into a contract with the 
contractor to authorize the contractor, consistent with section 4543 of 
title 10, United States Code--
            (A) to use the facility during the period of the program in 
        a manner consistent with the purposes of the program; and
            (B) to enter into subcontracts for the commercial use of the 
        facility consistent with such purposes.

    (d) Loan Guarantees.--(1) Subject to paragraph (2), the Secretary of 
the Army may guarantee the repayment of any loan made to a commercial 
firm to fund, in whole or in part, the establishment of a commercial 
activity at an Army manufacturing arsenal under this section.
    (2) Loan guarantees under this subsection may not be committed 
except to the extent that appropriations of budget authority to cover 
their costs are made in advance, as required by section 504 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661c).
    (3) The Secretary of the Army may enter into agreements with the 
Administrator of the Small Business Administration or the Administrator 
of the Farmers Home Administration, the Administrator of the Rural 
Development Administration, or the head of other appropriate agencies of 
the Department of Agriculture, under which such Administrators may, 
under this subsection--
            (A) process applications for loan guarantees;
            (B) guarantee repayment of loans; and
            (C) provide any other services to the Secretary of the Army 
        to administer this subsection.

    (4) An Administrator referred to in paragraph (3) may guarantee 
loans under this section to commercial firms of any size, 
notwithstanding any limitations on the size of applicants imposed on 
other loan guarantee programs that the Administrator administers. To the 
extent practicable, each Administrator shall use the same procedures for 
processing loan guarantee applications under this subsection as the 
Administrator uses for processing loan guarantee applications under 
other loan guarantee programs that the Administrator administers.

[[Page 114 STAT. 1654A-67]]

    (e) Loan Limits.--The maximum amount of loan principal guaranteed 
during a fiscal year under subsection (d) may not exceed--
            (1) $20,000,000, with respect to any single borrower; and
            (2) $320,000,000 with respect to all borrowers.

    (f ) Transfer of Funds.--The Secretary of the Army may transfer to 
an Administrator providing services under subsection (d), and the 
Administrator may accept, such funds as may be necessary to administer 
loan guarantees under such subsection.
    (g) Reporting Requirements.--(1) Not later than July 1 of each year 
in which a guarantee issued under subsection (d) is in effect, the 
Secretary of the Army shall submit to Congress a report specifying the 
amounts of loans guaranteed under such subsection during the preceding 
calendar year. No report is required after fiscal year 2002.
    (2) Not later than July 1, 2001, the Secretary of the Army shall 
submit to the congressional defense committees a report on the 
implementation of the demonstration program. The report shall contain a 
comprehensive review of contracting at the Army manufacturing arsenals 
covered by the program and such recommendations as the Secretary 
considers appropriate regarding changes to the program.

SEC. 344. CODIFICATION AND IMPROVEMENT OF ARMAMENT RETOOLING AND 
            MANUFACTURING SUPPORT PROGRAMS.

    (a) In General.--(1) Part IV of subtitle B of title 10, United 
States Code, is amended by inserting after chapter 433 the following new 
chapter:

                ``CHAPTER 434--ARMAMENTS INDUSTRIAL BASE

``Sec.
``4551. Definitions.
``4552. Policy.
``4553. Armament Retooling and Manufacturing Support Initiative.
``4554. Property management contracts and leases.
``4555. ARMS Initiative loan guarantee program.

``Sec. 4551. Definitions

    ``In this chapter:
            ``(1) The term `ARMS Initiative' means the Armament 
        Retooling and Manufacturing Support Initiative authorized by 
        this chapter.
            ``(2) The term `eligible facility' means a Government-owned, 
        contractor-operated ammunition manufacturing facility of the 
        Department of the Army that is in an active, inactive, layaway, 
        or caretaker status.
            ``(3) The term `property manager' includes any person or 
        entity managing an eligible facility made available under the 
        ARMS Initiative through a property management contract.
            ``(4) The term `property management contract' includes 
        facility use contracts, site management contracts, leases, and 
        other agreements entered into under the authority of this 
        chapter.
            ``(5) The term `Secretary' means the Secretary of the Army.

``Sec. 4552. Policy

    ``It is the policy of the United States--

[[Page 114 STAT. 1654A-68]]

            ``(1) to encourage, to the maximum extent practicable, 
        commercial firms to use Government-owned, contractor-operated 
        ammunition manufacturing facilities of the Department of the 
        Army;
            ``(2) to use such facilities for supporting programs, 
        projects, policies, and initiatives that promote competition in 
        the private sector of the United States economy and that advance 
        United States interests in the global marketplace;
            ``(3) to increase the manufacture of products inside the 
        United States;
            ``(4) to support policies and programs that provide 
        manufacturers with incentives to assist the United States in 
        making more efficient and economical use of eligible facilities 
        for commercial purposes;
            ``(5) to provide, as appropriate, small businesses 
        (including socially and economically disadvantaged small 
        business concerns and new small businesses) with incentives that 
        encourage those businesses to undertake manufacturing and other 
        industrial processing activities that contribute to the 
        prosperity of the United States;
            ``(6) to encourage the creation of jobs through increased 
        investment in the private sector of the United States economy;
            ``(7) to foster a more efficient, cost-effective, and 
        adaptable armaments industry in the United States;
            ``(8) to achieve, with respect to armaments manufacturing 
        capacity, an optimum level of readiness of the national 
        technology and industrial base within the United States that is 
        consistent with the projected threats to the national security 
        of the United States and the projected emergency requirements of 
        the armed forces; and
            ``(9) to encourage facility use contracting where feasible.

``Sec. 4553. Armament Retooling and Manufacturing Support Initiative

    ``(a) Authority for Initiative.--The Secretary may carry out a 
program to be known as the `Armament Retooling and Manufacturing Support 
Initiative'.
    ``(b) Purposes.--The purposes of the ARMS Initiative are as follows:
            ``(1) To encourage commercial firms, to the maximum extent 
        practicable, to use eligible facilities for commercial purposes.
            ``(2) To increase the opportunities for small businesses 
        (including socially and economically disadvantaged small 
        business concerns and new small businesses) to use eligible 
        facilities for those purposes.
            ``(3) To maintain in the United States a work force having 
        the skills in manufacturing processes that are necessary to meet 
        industrial emergency planned requirements for national security 
        purposes.
            ``(4) To demonstrate innovative business practices, to 
        support Department of Defense acquisition reform, and to serve 
        as both a model and a laboratory for future defense conversion 
        initiatives of the Department of Defense.
            ``(5) To the maximum extent practicable, to allow the 
        operation of eligible facilities to be rapidly responsive to the 
        forces of free market competition.

[[Page 114 STAT. 1654A-69]]

            ``(6) To reduce or eliminate the cost of Government 
        ownership of eligible facilities, including the costs of 
        operations and maintenance, the costs of environmental 
        remediation, and other costs.
            ``(7) To reduce the cost of products of the Department of 
        Defense produced at eligible facilities.
            ``(8) To leverage private investment at eligible facilities 
        through long-term facility use contracts, property management 
        contracts, leases, or other agreements that support and advance 
        the policies and purposes of this chapter, for the following 
        activities:
                    ``(A) Recapitalization of plant and equipment.
                    ``(B) Environmental remediation.
                    ``(C) Promotion of commercial business ventures.
                    ``(D) Other activities approved by the Secretary.
            ``(9) To foster cooperation between the Department of the 
        Army, property managers, commercial interests, and State and 
        local agencies in the implementation of sustainable development 
        strategies and investment in eligible facilities made available 
        for purposes of the ARMS Initiative.
            ``(10) To reduce or eliminate the cost of asset disposal 
        that would be incurred if property at an eligible facility was 
        declared excess to the needs of the Department of the Army.

    ``(c) Availability of Facilities.--The Secretary may make any 
eligible facility available for the purposes of the ARMS Initiative.
    ``(d) Consideration for Leases.--Section 321 of the Act of June 30, 
1932 (40 U.S.C. 303b), shall not apply to uses of property or facilities 
in accordance with the ARMS Initiative.
    ``(e) Program Support.--(1) Funds appropriated for purposes of the 
ARMS Initiative may be used for administrative support and management.
    ``(2) A full annual accounting of such expenses for each fiscal year 
shall be provided to the Committee on Armed Services and the Committee 
on Appropriations of the Senate and the Committee on Armed Services and 
the Committee on Appropriations of the House of Representatives not 
later than March 30 of the following fiscal year.

``Sec. 4554. Property management contracts and leases

    ``(a) In General.--In the case of each eligible facility that is 
made available for the ARMS Initiative, the Secretary--
            ``(1) shall make full use of facility use contracts, leases, 
        and other such commercial contractual instruments as may be 
        appropriate;
            ``(2) shall evaluate, on the basis of efficiency, cost, 
        emergency mobilization requirements, and the goals and purposes 
        of the ARMS Initiative, the procurement of services from the 
        property manager, including maintenance, operation, 
        modification, infrastructure, environmental restoration and 
        remediation, and disposal of ammunition manufacturing assets, 
        and other services; and
            ``(3) may, in carrying out paragraphs (1) and (2)--
                    ``(A) enter into contracts, and provide for 
                subcontracts, for terms up to 25 years, as the Secretary 
                considers appropriate and consistent with the needs of 
                the Department of the Army and the goals and purposes of 
                the ARMS Initiative; and

[[Page 114 STAT. 1654A-70]]

                    ``(B) use procedures that are authorized to be used 
                under section 2304(c)(5) of this title when the 
                contractor or subcontractor is a source specified in 
                law.

    ``(b) Consideration for Use.--(1) To the extent provided in a 
contract entered into under this section for the use of property at an 
eligible facility that is accountable under the contract, the Secretary 
may accept consideration for such use that is, in whole or in part, in a 
form other than--
            ``(A) rental payments; or
            ``(B) revenue generated at the facility.

    ``(2) Forms of consideration acceptable under paragraph (1) for a 
use of an eligible facility or any property at an eligible facility 
include the following:
            ``(A) The improvement, maintenance, protection, repair, and 
        restoration of the facility, the property, or any property 
        within the boundaries of the installation where the facility is 
        located.
            ``(B) Reductions in overhead costs.
            ``(C) Reductions in product cost.

    ``(3) The authority under paragraph (1) may be exercised without 
regard to section 3302(b) of title 31 and any other provision of law.

``Sec. 4555. ARMS Initiative loan guarantee program

    ``(a) Program Authorized.--Subject to subsection (b), the Secretary 
may carry out a loan guarantee program to encourage commercial firms to 
use eligible facilities under this chapter. Under any such program, the 
Secretary may guarantee the repayment of any loan made to a commercial 
firm to fund, in whole or in part, the establishment of a commercial 
activity to use an eligible facility under this chapter.
    ``(b) Advanced Budget Authority.--Loan guarantees under this section 
may not be committed except to the extent that appropriations of budget 
authority to cover their costs are made in advance, as required by 
section 504 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c).
    ``(c) Program Administration.--(1) The Secretary may enter into an 
agreement with any of the officials named in paragraph (2) under which 
that official may, for the purposes of this section--
            ``(A) process applications for loan guarantees;
            ``(B) guarantee repayment of loans; and
            ``(C) provide any other services to the Secretary to 
        administer the loan guarantee program.

    ``(2) The officials referred to in paragraph (1) are as follows:
            ``(A) The Administrator of the Small Business 
        Administration.
            ``(B) The head of any appropriate agency in the Department 
        of Agriculture, including--
                    ``(i) the Administrator of the Farmers Home 
                Administration; and
                    ``(ii) the Administrator of the Rural Development 
                Administration.

    ``(3) Each official authorized to do so under an agreement entered 
into under paragraph (1) may guarantee loans under this section to 
commercial firms of any size, notwithstanding any limitations on the 
size of applicants imposed on other loan guarantee programs that the 
official administers.

[[Page 114 STAT. 1654A-71]]

    ``(4) To the extent practicable, each official processing loan 
guarantee applications under this section pursuant to an agreement 
entered into under paragraph (1) shall use the same processing 
procedures as the official uses for processing loan guarantee 
applications under other loan guarantee programs that the official 
administers.
    ``(d) Loan Limits.--The maximum amount of loan principal guaranteed 
during a fiscal year under this section may not exceed--
            ``(1) $20,000,000, with respect to any single borrower; and
            ``(2) $320,000,000 with respect to all borrowers.

    ``(e) Transfer of Funds.--The Secretary may transfer to an official 
providing services under subsection (c), and that official may accept, 
such funds as may be necessary to administer the loan guarantee program 
under this section.''.
    (2) The tables of chapters at the beginning of subtitle B of such 
title and at the beginning of part IV of such subtitle are amended by 
inserting after the item relating to chapter 433 the following new item:

``434. Armaments Industrial Base.................................4551''.

    (b) Implementation Report.--Not later than July 1, 2001, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the procedures and controls implemented to carry 
out section 4554 of title 10, United States Code, as added by subsection 
(a).
    (c) Relationship to National Defense Technology and Industrial 
Base.--(1) Subchapter IV of chapter 148 of title 10, United States Code, 
is amended--
            (A) by redesignating section 2525 as section 2521; and
            (B) by adding at the end the following new section:

``Sec. 2522. Armament retooling and manufacturing

    ``The Secretary of the Army is authorized by chapter 434 of this 
title to carry out programs for the support of armaments retooling and 
manufacturing in the national defense industrial and technology base.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by striking the item relating to section 2525 and inserting the 
following new items:

``2521. Manufacturing Technology Program.
``2522. Armament retooling and manufacturing.''.

    (d) Repeal of Superseded Law.--The Armament Retooling and 
Manufacturing Support Act of 1992 (subtitle H of title I of Public Law 
102-484; 10 U.S.C. 2501 note) is repealed.

     Subtitle E--Performance of Functions by Private-Sector Sources

SEC. 351. INCLUSION OF ADDITIONAL INFORMATION IN REPORTS TO CONGRESS 
            REQUIRED BEFORE CONVERSION OF COMMERCIAL OR INDUSTRIAL TYPE 
            FUNCTIONS TO CONTRACTOR PERFORMANCE.

    (a) Information Required Before Commencement of Conversion 
Analysis.--Subsection (b)(1)(D) of section 2461 of title 10, United 
States Code, is amended by inserting before the period

[[Page 114 STAT. 1654A-72]]

the following: ``, and a specific identification of the budgetary line 
item from which funds will be used to cover the cost of the analysis''.
    (b) Information Required in Notification of Decision.--Subsection 
(c)(1) of such section is amended--
            (1) by redesignating subparagraphs (A), (B), (C), (D), and 
        (E) as subparagraphs (B), (C), (F), (H), and (I), respectively;
            (2) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph:
            ``(A) The date when the analysis of that commercial or 
        industrial type function for possible change to performance by 
        the private sector was commenced.'';
            (3) by inserting after subparagraph (C), as so redesignated, 
        the following new subparagraphs:
            ``(D) The number of Department of Defense civilian employees 
        who were performing the function when the analysis was 
        commenced, the number of such employees whose employment was 
        terminated or otherwise affected in implementing the most 
        efficient organization of the function, and the number of such 
        employees whose employment would be terminated or otherwise 
        affected by changing to performance of the function by the 
        private sector.
            ``(E) The Secretary's certification that the factors 
        considered in the examinations performed under subsection 
        (b)(3), and in the making of the decision to change performance, 
        did not include any predetermined personnel constraint or 
        limitation in terms of man years, end strength, full-time 
        equivalent positions, or maximum number of employees.''; and
            (4) by inserting after subparagraph (F), as so redesignated, 
        the following new subparagraph:
            ``(G) A statement of the potential economic effect of the 
        change on each affected local community, as determined in the 
        examination under subsection (b)(3)(B)(ii).''.

SEC. 352. EFFECTS OF OUTSOURCING ON OVERHEAD COSTS OF CENTERS OF 
            INDUSTRIAL AND TECHNICAL EXCELLENCE AND ARMY AMMUNITION 
            PLANTS.

    Section 2461(c) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph:

    ``(2) If the commercial or industrial type function to be changed to 
performance by the private sector is performed at a Center of Industrial 
and Technical Excellence designated under section 2474(a) of this title 
or an Army ammunition plant--
            ``(A) the report required by this subsection shall also 
        include a description of the effect that the performance and 
        administration of the resulting contract will have on the 
        overhead costs of the center or ammunition plant, as the case 
        may be; and
            ``(B) notwithstanding paragraph (3), the change of the 
        function to contractor performance may not begin until at least 
        60 days after the submission of the report.''.

SEC. 353. CONSOLIDATION, RESTRUCTURING, OR REENGINEERING OF DEPARTMENT 
            OF DEFENSE ORGANIZATIONS, FUNCTIONS, OR ACTIVITIES.

    (a) In General.--Chapter 146 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 114 STAT. 1654A-73]]

``Sec. 2475. Consolidation, restructuring, or reengineering of 
                        organizations, functions, or activities: 
                        notification requirements

    ``(a) Requirement To Submit Plan Annually.--Concurrently with the 
submission of the President's annual budget request under section 1105 
of title 31, the Secretary of Defense shall submit to Congress each 
Strategic Sourcing Plan of Action for the Department of Defense (as 
identified in the Department of Defense Interim Guidance dated February 
29, 2000, or any successor Department of Defense guidance or directive), 
for the following year.
    ``(b) Notification of Decision To Execute Plan.--If a decision is 
made to consolidate, restructure, or reengineer an organization, 
function, or activity of the Department of Defense pursuant to a 
Strategic Sourcing Plan of Action described in subsection (a), and such 
consolidation, restructuring, or reengineering would result in a 
manpower reduction affecting 50 or more personnel of the Department of 
Defense (including military and civilian personnel)--
            ``(1) the Secretary of Defense shall submit to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives a report describing that decision, including--
                    ``(A) a projection of the savings that will be 
                realized as a result of the consolidation, 
                restructuring, or reengineering, compared with the cost 
                incurred by the Department of Defense to perform the 
                function or to operate the organization or activity 
                prior to such proposed consolidation, restructuring, or 
                reengineering;
                    ``(B) a description of all missions, duties, or 
                military requirements that will be affected as a result 
                of the decision to consolidate, restructure, or 
                reengineer the organization, function, or activity that 
                was analyzed;
                    ``(C) the Secretary's certification that the 
                consolidation, restructuring, or reengineering will not 
                result in any diminution of military readiness;
                    ``(D) a schedule for performing the consolidation, 
                restructuring, or reengineering; and
                    ``(E) the Secretary's certification that the entire 
                analysis for the consolidation, restructuring, or 
                reengineering is available for examination; and
            ``(2) the head of the Defense Agency or the Secretary of the 
        military department concerned may not implement the plan until 
        30 days after the date that the agency head or Secretary submits 
        notification to the Committees on Armed Services of the Senate 
        and House of Representatives of the intent to carry out such 
        plan.''.

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

``2475. Consolidation, restructuring, or reengineering of organizations, 
           functions, or activities: notification requirements.''.

SEC. 354. MONITORING OF SAVINGS RESULTING FROM WORKFORCE REDUCTIONS AS 
            PART OF CONVERSION OF FUNCTIONS TO PERFORMANCE BY PRIVATE 
            SECTOR OR OTHER STRATEGIC SOURCING INITIATIVES.

    (a) Requirement for a Monitoring System.--Chapter 146 of title 10, 
United States Code, is amended by inserting after section 2461 the 
following new section:

[[Page 114 STAT. 1654A-74]]

``Sec. 2461a. Development of system for monitoring cost savings 
                        resulting from workforce reductions

    ``(a) Workforce Review Defined.--In this section, the term 
`workforce review', with respect to a function of the Department of 
Defense performed by Department of Defense civilian employees, means a 
review conducted under Office of Management and Budget Circular A-76 (or 
any successor administrative regulation or policy), the Strategic 
Sourcing Program Plan of Action (or any successor Department of Defense 
guidance or directive), or any other authority to determine whether the 
function--
            ``(1) should be performed by a workforce composed of 
        Department of Defense civilian employees or by a private sector 
        workforce; or
            ``(2) should be reorganized or otherwise reengineered to 
        improve the effeciency or effectiveness of the performance of 
        the function, with a resulting decrease in the number of 
        Department of Defense civilian employees performing the 
        function.

    ``(b) System for Monitoring Performance.--(1) The Secretary of 
Defense shall establish a system for monitoring the performance, 
including the cost of performance, of each function of the Department of 
Defense that, after the date of the enactment of this section, is the 
subject of a workforce review.
    ``(2) The monitoring system shall be designed to compare the 
following:
            ``(A) The costs to perform a function before the workforce 
        review to the costs actually incurred to perform the function 
        after implementing the conversion, reorganization, or 
        reengineering actions recommended by the workforce review.
            ``(B) The anticipated savings to the actual savings, if any, 
        resulting from conversion, reorganization, or reengineering 
        actions undertaken in response to the workforce review.

    ``(3) The monitoring of a function shall continue under this section 
for at least five years after the conversion, reorganization, or 
reengineering of the function.
    ``(c) Waiver for Certain Workforce Reviews.--Subsection (b) shall 
not apply to a workforce review that would result in a manpower 
reduction affecting fewer than 50 Department of Defense civilian 
employees.
    ``(d) Annual Report.--Not later than February 1 of each fiscal year, 
the Secretary of Defense shall submit to Congress a report on the 
results of the monitoring performed under the system established under 
subsection (b). For each function subject to monitoring during the 
previous fiscal year, the report shall indicate the following:
            ``(1) The cost of the workforce review.
            ``(2) The cost of performing the function before the 
        workforce review compared to the costs incurred after 
        implementing the conversion, reorganization, or reengineering 
        actions recommended by the workforce review.
            ``(3) The actual savings derived from the implementation of 
        the recommendations of the workforce review, if any, compared to 
        the anticipated savings that were to result from the conversion, 
        reorganization, or reengineering actions.

    ``(e) Consideration in Preparation of Future-Years Defense 
Program.--In preparing the future-years defense program under section 
221 of this title, the Secretary of Defense shall, for the fiscal years 
covered by the program, estimate and take

[[Page 114 STAT. 1654A-75]]

into account the costs to be incurred and the savings to be derived from 
the performance of functions by workforces selected in workforce 
reviews. The Secretary shall consider the results of the monitoring 
under this section in making the estimates.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2461 the following new item:

``2461a. Development of system for monitoring cost savings resulting 
           from workforce reductions.''.

SEC. 355. PERFORMANCE OF EMERGENCY RESPONSE FUNCTIONS AT CHEMICAL 
            WEAPONS STORAGE INSTALLATIONS.

    (a) Restriction on Conversion.--The Secretary of the Army may not 
convert to contractor performance the emergency response functions of 
any chemical weapons storage installation that, as of the date of the 
enactment of this Act, are performed for that installation by employees 
of the United States until the certification required by subsection (c) 
has been submitted in accordance with that subsection.
    (b) Covered Installations.--For the purposes of this section, a 
chemical weapons storage installation is any installation of the 
Department of Defense on which lethal chemical agents or munitions are 
stored.
    (c) Certification Requirement.--The Secretary of the Army shall 
certify in writing to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Representatives that, to 
ensure that there will be no lapse of capability to perform the chemical 
weapon emergency response mission at a chemical weapons storage 
installation during any transition to contractor performance of those 
functions at the installation, the plan for conversion of the 
performance of those functions--
            (1) is consistent with the recommendation contained in 
        General Accounting Office Report NSIAD-00-88, entitled ``DoD 
        Competitive Sourcing'', dated March 2000;
            (2) provides for a transition to contractor performance of 
        emergency response functions which ensures an adequate transfer 
        of the relevant knowledge and expertise regarding chemical 
        weapon emergency response to the contractor personnel; and
            (3) complies with section 2465 of title 10, United States 
        Code.

SEC. 356. SUSPENSION OF REORGANIZATION OR RELOCATION OF NAVAL AUDIT 
            SERVICE.

    (a) Suspension.--During the period specified in subsection (b), the 
Secretary of the Navy may not commence or continue any consolidation, 
involuntary transfer, buy-out, or other reduction in force of the 
workforce of auditors and administrative support personnel of the Naval 
Audit Service if the consolidation, involuntary transfer, buy-out, or 
other reduction in force is associated with the reorganization or 
relocation of the performance of the auditing functions of the Naval 
Audit Service.
    (b) Duration.--Subsection (a) applies during the period beginning on 
the date of the enactment of this Act and ending 180 days after the date 
on which the Secretary submits to the congressional defense committees a 
report that sets forth in detail the Navy's plans and justification for 
the reorganization or relocation

[[Page 114 STAT. 1654A-76]]

of the performance of the auditing functions of the Naval Audit Service, 
as the case may be.

                Subtitle F--Defense Dependents Education

SEC. 361. ELIGIBILITY OF DEPENDENTS OF AMERICAN RED CROSS EMPLOYEES FOR 
            ENROLLMENT IN DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT 
            SCHOOLS IN PUERTO RICO.

    Section 2164 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(i) American Red Cross Employee Dependents in Puerto Rico.--(1) 
The Secretary may authorize the dependent of an American Red Cross 
employee described in paragraph (2) to enroll in an education program 
provided by the Secretary pursuant to subsection (a) in Puerto Rico if 
the American Red Cross agrees to reimburse the Secretary for the 
educational services so provided.
    ``(2) An employee referred to in paragraph (1) is an American Red 
Cross employee who--
            ``(A) resides in Puerto Rico; and
            ``(B) performs, on a full-time basis, emergency services on 
        behalf of members of the armed forces.

    ``(3) In determining the dependency status of any person for the 
purposes of paragraph (1), the Secretary shall apply the same 
definitions as apply to the determination of such status with respect to 
Federal employees in the administration of this section.
    ``(4) Subsection (g) shall apply with respect to determining the 
reimbursement rates for educational services provided pursuant to this 
subsection. Amounts received as reimbursement for such educational 
services shall be treated in the same manner as amounts received under 
subsection (g).''.

SEC. 362. 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 
2001.--Of the amount authorized to be appropriated by section 301(5) for 
operation and maintenance for Defense-wide activities, $35,000,000 shall 
be available only for the purpose of providing educational agencies 
assistance (as defined in subsection (d)(1)) to local educational 
agencies.
    (b) Notification.--Not later than June 30, 2001, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
educational agencies assistance for fiscal year 2001 of--
            (1) that agency's eligibility for educational agencies 
        assistance; and
            (2) the amount of the educational agencies 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

[[Page 114 STAT. 1654A-77]]

        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 363. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    (a) Payments.--Subject to subsection (f ), the Secretary of Defense 
shall make a payment for fiscal years after fiscal year 2001, to each 
local educational agency eligible to receive a payment for a child 
described in subparagraph (A)(ii), (B), (D)(i) or (D)(ii) of section 
8003(a)(1) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7703(a)(1)) that serves two or more such children with severe 
disabilities, for costs incurred in providing a free appropriate public 
education to each such child.
    (b) Payment Amount.--The amount of the payment under subsection (a) 
to a local educational agency for a fiscal year for each child referred 
to in such subsection with a severe disability shall be--
            (1) the payment made on behalf of the child with a severe 
        disability that is in excess of the average per pupil 
        expenditure in the State in which the local educational agency 
        is located; less
            (2) the sum of the funds received by the local educational 
        agency--
                    (A) from the State in which the child resides to 
                defray the educational and related services for such 
                child;
                    (B) under the Individuals with Disabilities 
                Education Act (20 U.S.C. 1400 et seq.) to defray the 
                educational and related services for such child; and
                    (C) from any other source to defray the costs of 
                providing educational and related services to the child 
                which are received due to the presence of a severe 
                disabling condition of such child.

    (c) Exclusions.--No payment shall be made under subsection (a) on 
behalf of a child with a severe disability whose individual cost of 
educational and related services does not exceed--
            (1) five times the national or State average per pupil 
        expenditure (whichever is lower), for a child who is provided 
        educational and related services under a program that is located 
        outside the boundaries of the school district of the local 
        educational agency that pays for the free appropriate public 
        education of the student; or
            (2) three times the State average per pupil expenditure, for 
        a child who is provided educational and related services under a 
        program offered by the local educational agency, or within the 
        boundaries of the school district served by the local 
        educational agency.

    (d) Ratable reduction.--If the amount available for a fiscal year 
for payments under subsection (a) is insufficient to pay the full amount 
all local educational agencies are eligible to receive under such 
subsection, the Secretary of Defense shall ratably reduce the amounts of 
the payments made under such subsection to all local educational 
agencies by an equal percentage.
    (e) Report.--Each local educational agency desiring a payment under 
subsection (a) shall report to the Secretary of Defense--

[[Page 114 STAT. 1654A-78]]

            (1) the number of severely disabled children for which a 
        payment may be made under this section; and
            (2) a breakdown of the average cost, by placement (inside or 
        outside the boundaries of the school district of the local 
        educational agency), of providing education and related services 
        to such children.

    (f ) Payments Subject to Appropriation.--Payments shall be made for 
any period in a fiscal year under this section only to the extent that 
funds are appropriated specifically for making such payments for that 
fiscal year.
    (g) Local Educational Agency Defined.--In this section, the term 
``local educational agency'' has the meaning given that term in section 
8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7713(9)).

SEC. 364. ASSISTANCE FOR MAINTENANCE, REPAIR, AND RENOVATION OF SCHOOL 
            FACILITIES THAT SERVE DEPENDENTS OF MEMBERS OF THE ARMED 
            FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Repair and Renovation Assistance.--(1) During fiscal year 2001, 
the Secretary of Defense may make a grant to an eligible local 
educational agency to assist the agency to repair and renovate--
            (A) an impacted school facility that is used by significant 
        numbers of military dependent students; or
            (B) a school facility that was a former Department of 
        Defense domestic dependent elementary or secondary school.

    (2) Authorized repair and renovation projects may include repairs 
and improvements to an impacted school facility (including the grounds 
of the facility) designed to ensure compliance with the requirements of 
the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) or 
local health and safety ordinances, to meet classroom size requirements, 
or to accommodate school population increases.
    (3) The total amount of assistance provided under this subsection to 
an eligible local educational agency may not exceed $2,500,000 during 
fiscal year 2001.
    (b) Maintenance Assistance.--(1) During fiscal year 2001, the 
Secretary of Defense may make a grant to an eligible local educational 
agency whose boundaries are the same as a military installation to 
assist the agency to maintain an impacted school facility, including the 
grounds of such a facility.
    (2) The total amount of assistance provided under this subsection to 
an eligible local educational agency may not exceed $250,000 during 
fiscal year 2001.
    (c) Determination of Eligible Local Educational Agencies.--(1) A 
local educational agency is an eligible local educational agency under 
this section only if the Secretary of Defense determines that the local 
educational agency has--
            (A) one or more federally impacted school facilities; and
            (B) satisfies at least one of the following eligibility 
        requirements:
                    (i) The local educational agency is eligible to 
                receive assistance under subsection (f ) of section 8003 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7703) and at least 10 percent of the students 
                who were in average daily attendance in the schools of 
                such

[[Page 114 STAT. 1654A-79]]

                agency during the preceding school year were students 
                described under paragraph (1)(A) or (1)(B) of section 
                8003(a) of the Elementary and Secondary Education Act of 
                1965.
                    (ii) At least 35 percent of the students who were in 
                average daily attendance in the schools of the local 
                educational agency during the preceding school year were 
                students described under paragraph (1)(A) or (1)(B) of 
                section 8003(a) of the Elementary and Secondary 
                Education Act of 1965.
                    (iii) The State education system and the local 
                educational agency are one and the same.

    (2) A local educational agency is also an eligible local educational 
agency under this section if the local educational agency has a school 
facility that was a former Department of Defense domestic dependent 
elementary or secondary school, but assistance provided under subsection 
(a) may only be used to repair and renovate that specific facility.
    (d) Notification of Eligibility.--Not later than April 30, 2001, the 
Secretary of Defense shall notify each local educational agency 
identified under subsection (c) that the local educational agency is 
eligible to apply for a grant under subsection (a), subsection (b), or 
both subsections.
    (e) Relation to Impact Aid Construction Assistance.--A local 
education agency that receives a grant under subsection (a) to repair 
and renovate a school facility may not also receive a payment for school 
construction under section 8007 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7707) for fiscal year 2001.
    (f ) Grant Considerations.--In determining which eligible local 
educational agencies will receive a grant under this section, the 
Secretary of Defense shall take into consideration the following 
conditions and needs at impacted school facilities of eligible local 
educational agencies:
            (1) The repair or renovation of facilities is needed to meet 
        State mandated class size requirements, including student-
        teacher ratios and instructional space size requirements.
            (2) There is an increase in the number of military dependent 
        students in facilities of the agency due to increases in unit 
        strength as part of military readiness.
            (3) There are unhoused students on a military installation 
        due to other strength adjustments at military installations.
            (4) The repair or renovation of facilities is needed to 
        address any of the following conditions:
                    (A) The condition of the facility poses a threat to 
                the safety and well-being of students.
                    (B) The requirements of the Americans with 
                Disabilities Act of 1990.
                    (C) The cost associated with asbestos removal, 
                energy conservation, or technology upgrades.
                    (D) Overcrowding conditions as evidenced by the use 
                of trailers and portable buildings and the potential for 
                future overcrowding because of increased enrollment.
            (5) The repair or renovation of facilities is needed to meet 
        any other Federal or State mandate.

[[Page 114 STAT. 1654A-80]]

            (6) The number of military dependent students as a 
        percentage of the total student population in the particular 
        school facility.
            (7) The age of facility to be repaired or renovated.

    (g) Definitions.--In this section:
            (1) Local educational agency.--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)).
            (2) Impacted school facility.--The term ``impacted school 
        facility'' means a facility of a local educational agency--
                    (A) that is used to provide elementary or secondary 
                education at or near a military installation; and
                    (B) at which the average annual enrollment of 
                military dependent students is a high percentage of the 
                total student enrollment at the facility, as determined 
                by the Secretary of Defense.
            (3) Military dependent students.--The term ``military 
        dependent students'' means students who are dependents of 
        members of the armed forces or Department of Defense civilian 
        employees.
            (4) Military installation.--The term ``military 
        installation'' has the meaning given that term in section 
        2687(e) of title 10, United States Code.

    (h) Funding Source.--The amount authorized to be appropriated under 
section 301(25) for Quality of Life Enhancements, Defense-Wide, shall be 
available to the Secretary of Defense to make grants under this section.

                  Subtitle G--Military Readiness Issues

SEC. 371. MEASURING CANNIBALIZATION OF PARTS, SUPPLIES, AND EQUIPMENT 
            UNDER READINESS REPORTING SYSTEM.

    Section 117(c) of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
            ``(7) Measure, on a quarterly basis, the extent to which 
        units of the armed forces remove serviceable parts, supplies, or 
        equipment from one vehicle, vessel, or aircraft in order to 
        render a different vehicle, vessel, or aircraft operational.''.

SEC. 372. REPORTING REQUIREMENTS REGARDING TRANSFERS FROM HIGH-PRIORITY 
            READINESS APPROPRIATIONS.

    (a) Continuation of Reporting Requirements.--Section 483 of title 
10, United States Code, is amended by striking subsection (e).
    (b) Level of Detail.--Subsection (c)(2) of such section is amended 
by inserting before the period the following: ``, including 
identification of the sources from which funds were transferred into 
that activity and identification of the recipients of the funds 
transferred out of that activity''.
    (c) Additional Covered Budget Activities.--Subsection (d)(5) of such 
section is amended by adding at the end the following new subparagraphs:
                    ``(G) Combat Enhancement Forces.
                    ``(H) Combat Communications.''.

[[Page 114 STAT. 1654A-81]]

SEC. 373. EFFECTS OF WORLDWIDE CONTINGENCY OPERATIONS ON READINESS OF 
            MILITARY AIRCRAFT AND EQUIPMENT.

    (a) Requirement for Report.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report assessing the effects of worldwide contingency 
operations on--
            (1) the readiness of aircraft and ground equipment of the 
        Armed Forces; and
            (2) the capability of the Armed Forces to maintain a high 
        level of equipment readiness and to manage a high operating 
        tempo for the aircraft and ground equipment.

    (b) Effects on Aircraft.--With respect to aircraft, the assessment 
contained in the report shall address the following effects:
            (1) The effects of the contingency operations carried out 
        during fiscal years 1995 through 2000 on the aircraft of each of 
        the Armed Forces in each category of aircraft, as follows:
                    (A) Combat tactical aircraft.
                    (B) Strategic aircraft.
                    (C) Combat support aircraft.
                    (D) Combat service support aircraft.
            (2) The types of adverse effects on the aircraft of each of 
        the Armed Forces in each category of aircraft specified in 
        paragraph (1) resulting from contingency operations, as follows:
                    (A) Patrolling in no-fly zones over Iraq in 
                Operation Northern Watch and Operation Southern Watch 
                and over the Balkans in Operation Allied Force.
                    (B) Air operations in the North Atlantic Treaty 
                Organization air war against Serbia in Operation Sky 
                Anvil, Operation Noble Anvil, and Operation Allied 
                Force.
                    (C) Air operations in Operation Shining Hope in 
                Kosovo.
                    (D) All other activities within the general context 
                of worldwide contingency operations.
            (3) Any other effects that the Secretary of Defense 
        considers appropriate in carrying out subsection (a).

    (c) Effects on Ground Equipment.--With respect to ground equipment, 
the assessment contained in the report shall address the following 
effects:
            (1) The effects of the contingency operations carried out 
        during fiscal years 1995 through 2000 on the ground equipment of 
        each of the Armed Forces.
            (2) Any other effects that the Secretary of Defense 
        considers appropriate in carrying out subsection (a).

    (d) Definitions.--In this section:
            (1) The term ``Armed Forces'' means the Army, Navy, Marine 
        Corps, and Air Force.
            (2) The term ``contingency operation'' has the meaning given 
        the term in section 101(a)(13) of title 10, United States Code.

SEC. 374. IDENTIFICATION OF REQUIREMENTS TO REDUCE BACKLOG IN 
            MAINTENANCE AND REPAIR OF DEFENSE FACILITIES.

    (a) Report To Address Maintenance and Repair Backlog.--Not later 
than March 15, 2001, the Secretary of Defense shall submit to Congress a 
report identifying a list of requirements to reduce the backlog in 
maintenance and repair needs of facilities and infrastructure under the 
jurisdiction of the Department of Defense or a military department.

[[Page 114 STAT. 1654A-82]]

    (b) Elements of Report.--At a minimum, the report shall include or 
address the following:
            (1) The extent of the work necessary to repair and 
        revitalize facilities and infrastructure, or to demolish and 
        replace unusable facilities, carried as backlog by the Secretary 
        of Defense or the Secretary of a military department.
            (2) Measurable goals, over specified time frames, for 
        addressing all of the identified requirements.
            (3) Expected funding for each military department and 
        Defense Agency to address the identified requirements during the 
        period covered by the most recent future-years defense program 
        submitted to Congress pursuant to section 221 of title 10, 
        United States Code.
            (4) The cost of the current backlog in maintenance and 
        repair for each military department and Defense Agency, which 
        shall be determined using the standard costs to standard 
        facility categories in the Department of Defense Facilities Cost 
        Factors Handbook, shown both in the aggregate and individually 
        for each major military installation.
            (5) The total number of square feet of building space of 
        each military department and Defense Agency to be demolished or 
        proposed for demolition, shown both in the aggregate and 
        individually for each major military installation.
            (6) The initiatives underway to identify facility and 
        infrastructure requirements at military installations to 
        accommodate new and developing weapons systems and to prepare 
        installations to accommodate these systems.

    (c) Annual Updates.--The Secretary of Defense shall update the 
report required under subsection (a) annually. The annual updates shall 
be submitted to Congress at or about the time that the budget is 
submitted to Congress for a fiscal year under section 1105(a) of title 
31, United States Code.

SEC. 375. NEW METHODOLOGY FOR PREPARING BUDGET REQUESTS TO SATISFY ARMY 
            READINESS REQUIREMENTS.

    (a) Requirement for New Methodology.--The Secretary of the Army 
shall develop a new methodology for preparing budget requests for 
operation and maintenance for the Army that can be used to ensure that 
the budget requests for operation and maintenance for future fiscal 
years more accurately reflect the Army's requirements than did the 
budget requests submitted to Congress for fiscal year 2001 and preceding 
fiscal years.
    (b) Sense of Congress Regarding New Methodology.--It is the sense of 
Congress that--
            (1) the methodology required by subsection (a) should 
        provide for the determination of the budget levels to request 
        for operation and maintenance for the Army to be based on--
                    (A) the level of training that must be conducted in 
                order for the Army to execute successfully the full 
                range of missions called for in the national defense 
                strategy delineated pursuant to section 118 of title 10, 
                United States Code, at a low-to-moderate level of risk;
                    (B) the cost of conducting training at the level of 
                training described in subparagraph (A); and
                    (C) the costs of all other Army operations, 
                including the cost of meeting infrastructure 
                requirements; and

[[Page 114 STAT. 1654A-83]]

            (2) the Secretary of the Army should use the new methodology 
        in the preparation of the budget requests for operation and 
        maintenance for the Army for fiscal years after fiscal year 
        2001.

SEC. 376. REVIEW OF AH-64 AIRCRAFT PROGRAM.

    (a) Requirement for Review.--The Comptroller General shall conduct a 
review of the Army's AH-64 aircraft program to determine--
            (1) whether obsolete spare parts, rather than spare parts 
        for the latest aircraft configuration, are being procured;
            (2) whether there is insufficient sustaining system 
        technical support;
            (3) whether technical data packages and manuals are 
        obsolete;
            (4) whether there are unfunded requirements for airframe and 
        component upgrades; and
            (5) if one or more of the conditions described in the 
        preceding paragraphs exist, whether the readiness of the 
        aircraft is impaired by the conditions.

    (b) Report.--Not later than March 1, 2001, the Comptroller General 
shall submit to the congressional defense committees a report on the 
results of the review under subsection (a).

SEC. 377. REPORT ON AIR FORCE SPARE AND REPAIR PARTS PROGRAM FOR C-5 
            AIRCRAFT.

    (a) Findings.--Congress makes the following findings:
            (1) There exists a significant shortfall in the Nation's 
        current strategic airlift requirement, even though strategic 
        airlift remains critical to the national security strategy of 
        the United States.
            (2) This shortfall results from the slow phase-out of C-141 
        aircraft and their replacement with C-17 aircraft and from lower 
        than optimal reliability rates for the C-5 aircraft.
            (3) One of the primary causes of these reliability rates for 
        C-5 aircraft, and especially for operational unit aircraft, is 
        the shortage of spare repair parts. Over the past 5 years, this 
        shortage has been particularly evident in the C-5 fleet.
            (4) Not Mission Capable for Supply rates for C-5 aircraft 
        have increased significantly in the period between 1997 and 
        1999. At Dover Air Force Base, Delaware, for example, an average 
        of 7 to 9 C-5 aircraft were not available during that period 
        because of a lack of parts.
            (5) Average rates of cannibalization of C-5 aircraft per 100 
        sorties of such aircraft have also increased during that period 
        and are well above the Air Mobility Command standard. In any 
        given month, this means devoting additional manhours to 
        cannibalization of C-5 aircraft. At Dover Air Force Base, for 
        example, an average of 800 to 1,000 additional manhours were 
        required for cannibalization of C-5 aircraft during that period. 
        Cannibalization is often required for aircraft that transit 
        through a base such as Dover Air Force Base, as well as those 
        that are based there.
            (6) High cannibalization rates indicate a significant 
        problem in delivering spare parts in a timely manner and 
        systemic problems within the repair and maintenance process, and 
        also demoralize overworked maintenance crews.

[[Page 114 STAT. 1654A-84]]

            (7) The C-5 aircraft remains an absolutely critical asset in 
        air mobility and airlifting heavy equipment and personnel to 
        both military contingencies and humanitarian relief efforts 
        around the world.
            (8) Despite increased funding for spare and repair parts and 
        other efforts by the Air Force to mitigate the parts shortage 
        problem, Congress continues to receive reports of significant 
        cannibalization to airworthy C-5 aircraft and parts backlogs.

    (b) Report Required.--Not later than January 1, 2001, and September 
30, 2001, the Secretary of the Air Force shall submit to Congress a 
report on the overall status of the spare and repair parts program of 
the Air Force for the C-5 aircraft.
    (c) Elements of Report.--Each report shall include the following:
            (1) A statement of the funds currently allocated to the 
        acquisition of spare and repair parts for the C-5 aircraft and 
        the adequacy of such funds to meet current and future repair and 
        maintenance requirements for that aircraft.
            (2) A description of current efforts to address shortfalls 
        in the availability of spare and repair parts for the C-5 
        aircraft, including an assessment of potential short-term and 
        long-term effects of such efforts.
            (3) An assessment of the effects of such parts shortfalls on 
        readiness and reliability ratings for the C-5 aircraft.
            (4) A description of rates at which spare and repair parts 
        for one C-5 aircraft are taken from another C-5 aircraft (known 
        as parts cannibalization) and the manhours devoted to part 
        cannibalization of such aircraft.
            (5) An assessment of the effects of parts shortfalls and 
        parts cannibalization with respect to C-5 aircraft on readiness 
        and retention.

                        Subtitle H--Other Matters

SEC. 381. ANNUAL REPORT ON PUBLIC SALE OF CERTAIN MILITARY EQUIPMENT 
            IDENTIFIED ON UNITED STATES MUNITIONS LIST.

    (a) Annual Report Required.--Chapter 153 of title 10, United States 
Code, is amended by adding at the end the following new section:

``Sec. 2582. Military equipment identified on United States munitions 
                        list: annual report of public sales

    ``(a) Report Required.--The Secretary of Defense shall prepare an 
annual report identifying each public sale conducted by a military 
department or Defense Agency of military items that are--
            ``(1) identified on the United States Munitions List 
        maintained under section 121.1 of title 22, Code of Federal 
        Regulations; and
            ``(2) assigned a demilitarization code of `B' or its 
        equivalent.

    ``(b) Elements of Report.--(1) A report under this section shall 
cover all public sales described in subsection (a) that were conducted 
during the preceding fiscal year.
    ``(2) The report shall specify the following for each sale:
            ``(A) The date of the sale.

[[Page 114 STAT. 1654A-85]]

            ``(B) The military department or Defense Agency conducting 
        the sale.
            ``(C) The manner in which the sale was conducted.
            ``(D) The military items described in subsection (a) that 
        were sold or offered for sale.
            ``(E) The purchaser of each item.
            ``(F) The stated end-use of each item sold.

    ``(c) Submission of Report.--Not later than March 31 of each year, 
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 the report required by this section for the preceding fiscal 
year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2582. Military equipment identified on United States munitions list: 
           annual report of public sales.''.

SEC. 382. RESALE OF ARMOR-PIERCING AMMUNITION DISPOSED OF BY THE ARMY.

    (a) Restriction.--(1) Chapter 443 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 4688. Armor-piercing ammunition and components: condition on 
                        disposal

    ``(a) Limitation on Resale or Other Transfer.--Except as provided in 
subsection (b), whenever the Secretary of the Army carries out a 
disposal (by sale or otherwise) of armor-piercing ammunition, or a 
component of armor-piercing ammunition, the Secretary shall require as a 
condition of the disposal that the recipient agree in writing not to 
sell or otherwise transfer any of the ammunition (reconditioned or 
otherwise), or any armor-piercing component of that ammunition, to any 
purchaser in the United States other than a law enforcement or other 
governmental agency.
    ``(b) Exception.--Subsection (a) does not apply to a transfer of a 
component of armor-piercing ammunition solely for the purpose of metal 
reclamation by means of a destructive process such as melting, crushing, 
or shredding.
    ``(c) Special Rule for Non-Armor-Piercing Components.--A component 
of the armor-piercing ammunition that is not itself armor-piercing and 
is not subjected to metal reclamation as described in subsection (b) may 
not be used as a component in the production of new or remanufactured 
armor-piercing ammunition other than for sale to a law enforcement or 
other governmental agency or for a government-to-government sale or 
commercial export to a foreign government under the Arms Export Control 
Act (22 U.S.C. 2751).
    ``(d) Definition.--In this section, the term `armor-piercing 
ammunition' means a center-fire cartridge the military designation of 
which includes the term `armor penetrator' or `armor-piercing', 
including a center-fire cartridge designated as armor-piercing 
incendiary (API) or armor-piercing incendiary-tracer (API-T).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4688. Armor-piercing ammunition and components: condition on 
           disposal.''.

    (b) Applicability.--Section 4688 of title 10, United States Code, as 
added by subsection (a), shall apply with respect to any

[[Page 114 STAT. 1654A-86]]

disposal of ammunition or components referred to in that section after 
the date of the enactment of this Act.

SEC. 383. REIMBURSEMENT BY CIVIL AIR CARRIERS FOR SUPPORT PROVIDED AT 
            JOHNSTON ATOLL.

    (a) In General.--Chapter 949 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 9783. Johnston Atoll: reimbursement for support provided to civil 
                        air carriers

    ``(a) Authority of the Secretary.--The Secretary of the Air Force 
may, under regulations prescribed by the Secretary, require payment by a 
civil air carrier for support provided by the United States to the 
carrier at Johnston Atoll that is either--
            ``(1) requested by the civil air carrier; or
            ``(2) determined under the regulations as being necessary to 
        accommodate the civil air carrier's use of Johnston Atoll.

    ``(b) Amount of Charges.--Any amount charged an air carrier under 
subsection (a) for support shall be equal to the total amount of the 
actual costs to the United States of providing the support. The amount 
charged may not include any amount for an item of support that does not 
satisfy a condition described in paragraph (1) or (2) of subsection (a).
    ``(c) Relationship to Landing Fees.--No landing fee shall be charged 
an air carrier for a landing of an aircraft of the air carrier at 
Johnston Atoll if the air carrier is charged under subsection (a) for 
support provided to the air carrier.
    ``(d) Disposition of Payments.--(1) Amounts collected from an air 
carrier under this section shall be credited to appropriations available 
for the fiscal year in which collected, as follows:
            ``(A) For support provided by the Air Force, to 
        appropriations available for the Air Force for operation and 
        maintenance.
            ``(B) For support provided by the Army, to appropriations 
        available for the Army for chemical demilitarization.

    ``(2) Amounts credited to an appropriation under paragraph (1) shall 
be merged with funds in that appropriation and shall be available, 
without further appropriation, for the purposes and period for which the 
appropriation is available.
    ``(e) Definitions.--In this section:
            ``(1) The term `civil air carrier' means an air carrier (as 
        defined in section 40101(a)(2) of title 49) that is issued a 
        certificate of public convenience and necessity under section 
        41102 of such title.
            ``(2) The term `support' includes fuel, fire rescue, use of 
        facilities, improvements necessary to accommodate use by civil 
        air carriers, police, safety, housing, food, air traffic 
        control, suspension of military operations on the island 
        (including operations at the Johnston Atoll Chemical Agent 
        Demilitarization System), repairs, and any other construction, 
        services, or supplies.''.

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

``9783. Johnston Atoll: reimbursement for support provided to civil air 
           carriers.''.

[[Page 114 STAT. 1654A-87]]

SEC. 384. TRAVEL BY RESERVES ON MILITARY AIRCRAFT.

    (a) Space-Required Travel for Travel to Duty Stations.--Subsection 
(a) of section 18505 of title 10, United States Code, is amended to read 
as follows:
    ``(a) A member of a reserve component traveling for annual training 
duty or inactive-duty training (including a place other than the place 
of the member's unit training assembly if the member is performing 
annual training duty or inactive-duty training in another location) may 
travel in a space-required status on aircraft of the armed forces 
between the member's home and the place of the annual training duty or 
inactive-duty training.''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:

``Sec. 18505. Reserves traveling for annual training duty or inactive-
                        duty training: space-required travel on military 
                        aircraft''.

    (2) The table of sections at the beginning of chapter 1805 of such 
title is amended by striking the item relating to section 18505 and 
inserting the following new item:

``18505. Reserves traveling for annual training duty or inactive-duty 
           training: space-required travel on military aircraft.''.

SEC. 385. OVERSEAS AIRLIFT SERVICE ON CIVIL RESERVE AIR FLEET AIRCRAFT.

    (a) In General.--Section 41106 of title 49, United States Code, is 
amended--
            (1) in subsection (a)(1), by striking ``of at least 31 
        days'';
            (2) by redesignating subsection (b) as subsection (d); and
            (3) by inserting after subsection (a) the following new 
        subsections:

    ``(b) Transportation Between the United States and Foreign 
Locations.--Except as provided in subsection (d), the transportation of 
passengers or property by transport category aircraft between a place in 
the United States and a place outside the United States obtained by the 
Secretary of Defense or the Secretary of a military department through a 
contract for airlift service shall be provided by an air carrier 
referred to in subsection (a).
    ``(c) Transportation Between Foreign Locations.--The transportation 
of passengers or property by transport category aircraft between two 
places outside the United States obtained by the Secretary of Defense or 
the Secretary of a military department through a contract for airlift 
service shall be provided by an air carrier that has aircraft in the 
civil reserve air fleet whenever transportation by such an air carrier 
is reasonably available.''.
    (b) Conforming Amendment.--Subsection (a) of such section is further 
amended by striking ``General.--(1) Except as provided in subsection (b) 
of this section,'' and inserting ``Interstate Transportation.--(1) 
Except as provided in subsection (d) of this section,''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000.

[[Page 114 STAT. 1654A-88]]

SEC. 386. ADDITIONS TO PLAN FOR ENSURING VISIBILITY OVER ALL IN-TRANSIT 
            END ITEMS AND SECONDARY ITEMS.

    (a) Required Additions.--Subsection (d) of section 349 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public 
Law 105-261; 112 Stat. 1981; 10 U.S.C. 2458 note) is amended--
            (1) in paragraph (1), by inserting before the period at the 
        end the following: ``, including specific actions to address 
        underlying weaknesses in the controls over items being 
        shipped''; and
            (2) by adding at the end the following new paragraph:
            ``(5) The key management elements for monitoring, and for 
        measuring the progress achieved in, the implementation of the 
        plan, including--
                    ``(A) the assignment of oversight responsibility for 
                each action identified pursuant to paragraph (1);
                    ``(B) a description of the resources required for 
                oversight; and
                    ``(C) an estimate of the annual cost of 
                oversight.''.

    (b) Conforming Amendments.--(1) Subsection (a) of such section is 
amended by striking ``Not later than'' and all that follows through 
``Congress'' and inserting ``The Secretary of Defense shall prescribe 
and carry out''.
    (2) Such section is further amended by adding at the end the 
following new subsection:
    ``(f ) Submissions to Congress.--The Secretary shall submit to 
Congress any revisions made to the plan that are required by any law 
enacted after October 17, 1998. The revisions so made shall be submitted 
not later than 180 days after the date of the enactment of the law 
requiring the revisions.''.
    (3) Subsection (e)(1) of such section is amended by striking 
``submits the plan'' and inserting ``submits the initial plan''.

SEC. 387. REAUTHORIZATION OF PILOT PROGRAM FOR ACCEPTANCE AND USE OF 
            LANDING FEES CHARGED FOR USE OF DOMESTIC MILITARY AIRFIELDS 
            BY CIVIL AIRCRAFT.

    (a) Reauthorization.--Section 377 of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 
Stat. 1993; 10 U.S.C. 113 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``during fiscal years 1999 and 
                2000''; and
                    (B) by striking the second sentence; and
            (2) by adding at the end the following new subsection:

    ``(e) Duration of Pilot Program.--The pilot program under this 
section may not be carried out after September 30, 2010.''.
    (b) Fees Collected.--Subsection (b) of such section is amended to 
read as follows:
    ``(b) Landing Fee Defined.--In this section, the term `landing fee' 
means any fee that is established under or in accordance with 
regulations of the military department concerned (whether prescribed in 
a fee schedule or imposed under a joint-use agreement) to recover costs 
incurred for use by civil aircraft of an airfield of the military 
department in the United States or in a territory or possession of the 
United States.''.
    (c) Use of Proceeds.--Subsection (c) of such section is amended by 
striking ``Amounts received for a fiscal year in payment

[[Page 114 STAT. 1654A-89]]

of landing fees imposed under the pilot program for use of a military 
airfield'' and inserting ``Amounts received in payment of landing fees 
for use of a military airfield in a fiscal year of the pilot program''.
    (d) Report.--Subsection (d) of such section is amended--
            (1) by striking ``March 31, 2000,'' and inserting ``March 
        31, 2003,''; and
            (2) by striking ``December 31, 1999'' and inserting 
        ``December 31, 2002''.

SEC. 388. EXTENSION OF AUTHORITY TO SELL CERTAIN AIRCRAFT FOR USE IN 
            WILDFIRE SUPPRESSION.

    Section 2 of the Wildfire Suppression Aircraft Transfer Act of 1996 
(Public Law 104-307; 10 U.S.C. 2576 note) is amended--
            (1) in subsection (a)(1), by striking ``September 30, 2000'' 
        and inserting ``September 30, 2005'';
            (2) in subsection (d)(1)--
                    (A) by striking ``the date of the enactment of this 
                Act'' and inserting ``October 14, 1996''; and
                    (B) by adding at the end the following: ``The 
                regulations prescribed under this paragraph shall be 
                effective until the end of the period specified in 
                subsection (a)(1).''; and
            (3) in subsection (f ), by striking ``March 31, 2000'' and 
        inserting ``March 31, 2005''.

SEC. 389. DAMAGE TO AVIATION FACILITIES CAUSED BY ALKALI SILICA 
            REACTIVITY.

    (a) Assessment of Damage and Prevention and Mitigation Technology.--
The Secretary of Defense shall require the Secretaries of the military 
departments to assess--
            (1) the damage caused to aviation facilities of the Armed 
        Forces by alkali silica reactivity; and
            (2) the availability of technologies capable of preventing, 
        treating, or mitigating alkali silica reactivity in hardened 
        concrete structures and pavements.

    (b) Evaluation of Technologies.--(1) Taking into consideration the 
assessment under subsection (a), the Secretary of each military 
department may conduct a demonstration project at a location selected by 
the Secretary concerned to test and evaluate the effectiveness of 
technologies intended to prevent, treat, or mitigate alkali silica 
reactivity in hardened concrete structures and pavements.
    (2) The Secretary of Defense shall ensure that the locations 
selected for the demonstration projects represent the diverse operating 
environments of the Armed Forces.
    (c) New Construction.--The Secretary of Defense shall develop 
specific guidelines for appropriate testing and use of lithium salts to 
prevent alkali silica reactivity in new construction of the Department 
of Defense.
    (d) Completion of Assessment and Demonstration.--The assessment 
conducted under subsection (a) and the demonstration projects, if any, 
conducted under subsection (b) shall be completed not later than 
September 30, 2006.
    (e) Delegation of Authority.--The authority to conduct the 
assessment under subsection (a) may be delegated only to the Chief of 
Engineers of the Army, the Commander of the Naval Facilities Engineering 
Command, and the Civil Engineer of the Air Force.

[[Page 114 STAT. 1654A-90]]

    (f ) Limitation on Expenditures.--The Secretary of Defense and the 
Secretaries of the military departments may not expend more than a total 
of $5,000,000 to conduct both the assessment under subsection (a) and 
all of the demonstration projects under subsection (b).

SEC. 390. DEMONSTRATION PROJECT TO INCREASE RESERVE COMPONENT INTERNET 
            ACCESS AND SERVICES IN RURAL COMMUNITIES.

    (a) Authorization and Purpose of Project.--The Secretary of the 
Army, acting through the Chief of the National Guard Bureau, may carry 
out a demonstration project in rural communities that are unserved or 
underserved by the telecommunications medium known as the Internet to 
provide or increase Internet access and services to units and members of 
the National Guard and other reserve components located in these 
communities.
    (b) Project Elements.--In carrying out the demonstration project, 
the Secretary may--
            (1) establish and operate distance learning classrooms in 
        communities described in subsection (a), including any support 
        systems required for such classrooms; and
            (2) provide Internet access and services in such classrooms 
        through GuardNet, the telecommunications infrastructure of the 
        National Guard.

    (c) Report.--Not later than February 1, 2005, the Secretary shall 
submit to Congress a report on the demonstration project. The report 
shall describe the activities conducted under the demonstration project 
and include any recommendations for the improvement or expansion of the 
demonstration project that the Secretary considers appropriate.

SEC. 391. ADDITIONAL CONDITIONS ON IMPLEMENTATION OF DEFENSE JOINT 
            ACCOUNTING SYSTEM.

    (a) Report on Deployment of System.--The proposed Defense Joint 
Accounting System is not prohibited, but the Secretary of Defense may 
not grant a Milestone III decision for the system unless and until the 
Secretary of Defense submits to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report--
            (1) explaining the reasons for the withdrawal of the 
        Department of the Air Force from the proposed Defense Joint 
        Accounting System and the effect of the withdrawal on the 
        development of the system;
            (2) explaining the reasons why the Department of the Navy is 
        not required to participate in the system;
            (3) identifying business process reengineering initiatives 
        reviewed, considered, or undertaken by the Department of the Air 
        Force and the Department of the Navy before the decisions were 
        made to exclude the Department of the Navy from the system and 
        to allow the Department of the Air Force to withdraw from the 
        system; and
            (4) containing an analysis, prepared with the participation 
        of the Secretaries of the military departments, of alternatives 
        to the system to determine whether the system warrants 
        deployment.

    (b) Certification.--If the Secretary of Defense determines that the 
proposed Defense Joint Accounting System warrants a Milestone III 
decision, the Secretary shall submit to the Committee on Armed

[[Page 114 STAT. 1654A-91]]

Services of the Senate and the Committee on Armed Services of the House 
of Representatives a certification that the system will meet--
            (1) the required functionality for users of the system;
            (2) Department of Defense acquisition standards;
            (3) the applicable requirements for Milestones I, II, and 
        III; and
            (4) the applicable requirements of the Clinger-Cohen Act of 
        1996 (divisions D and E of Public Law 104-106).

SEC. 392. REPORT ON DEFENSE TRAVEL SYSTEM.

    (a) Requirement for Report.--Not later than November 30, 2000, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the Defense Travel System.
    (b) Content of Report.--The report shall include the following:
            (1) A detailed discussion of the development, testing, and 
        fielding of the system, including the performance requirements, 
        the evaluation criteria, the funding that has been provided for 
        the development, testing, and fielding of the system, and the 
        funding that is projected to be required for completing the 
        development, testing, and fielding of the system.
            (2) The schedule for the testing of the system, including 
        the initial operational test and evaluation and the final 
        operational testing and evaluation, together with the results of 
        the testing.
            (3) The cost savings expected to result from the deployment 
        of the system and from the completed implementation of the 
        system, together with a discussion of how the savings are 
        estimated and the expected schedule for the realization of the 
        savings.
            (4) An analysis of the costs and benefits of fielding the 
        front-end software for the system throughout all 18 geographical 
        areas selected for the original fielding of the system.

SEC. 393. REVIEW OF DEPARTMENT OF DEFENSE COSTS OF MAINTAINING 
            HISTORICAL PROPERTIES.

    (a) Requirement for Review.--The Comptroller General shall conduct a 
review of the annual costs incurred by the Department of Defense to 
comply with the requirements of the National Historic Preservation Act 
(16 U.S.C. 470 et seq.).
    (b) Report.--Not later than February 28, 2001, the Comptroller 
General shall submit to the congressional defense committees a report on 
the results of the review. The report shall contain the following:
            (1) For each military department and Defense Agency and for 
        the Department of Defense in the aggregate, the cost for fiscal 
        year 2000 and the projected costs for the ensuing 10 fiscal 
        years to comply with the requirements of the National Historic 
        Preservation Act.
            (2) Of the costs referred to in paragraph (1), the portion 
        of such costs related to maintenance of those properties that 
        qualified as historic properties under the National Historic 
        Preservation Act when such Act was originally enacted in 1966.
            (3) The accounts used for paying the costs of complying with 
        the requirements of the National Historic Preservation Act.

[[Page 114 STAT. 1654A-92]]

            (4) For each military department and Defense Agency, the 
        identity of all properties that must be maintained in order to 
        comply with the requirements of the National Historic 
        Preservation Act.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Adjustment to end strength flexibility authority.

                       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 2001 limitation on non-dual status technicians.
Sec. 415. Increase in numbers of members in certain grades authorized to 
           be on active duty in support of the Reserves.

        Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Authority for Secretary of Defense to suspend certain 
           personnel strength limitations during war or national 
           emergency.
Sec. 422. Exclusion from active component end strengths of certain 
           reserve component members on active duty in support of the 
           combatant commands.
Sec. 423. Exclusion of Army and Air Force medical and dental officers 
           from limitation on strengths of reserve commissioned officers 
           in grades below brigadier general.
Sec. 424. Authority for temporary increases in number of reserve 
           component personnel serving on active duty or full-time 
           national guard duty in certain grades.

               Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

                        Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2001, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 372,642.
            (3) The Marine Corps, 172,600.
            (4) The Air Force, 357,000.

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

    (a) Revised End Strength Floors.--Section 691(b) of title 10, United 
States Code, is amended--
            (1) in paragraph (2), by striking ``371,781'' and inserting 
        ``372,000'';
            (2) in paragraph (3), by striking ``172,148'' and inserting 
        ``172,600''; and
            (3) in paragraph (4), by striking ``360,877'' and inserting 
        ``357,000''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2000.

SEC. 403. ADJUSTMENT TO END STRENGTH FLEXIBILITY AUTHORITY.

    Section 691(e) of title 10, United States Code, is amended by 
inserting ``or greater than'' after ``identical to''.

[[Page 114 STAT. 1654A-93]]

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
2001, as follows:
            (1) The Army National Guard of the United States, 350,526.
            (2) The Army Reserve, 205,300.
            (3) The Naval Reserve, 88,900.
            (4) The Marine Corps Reserve, 39,558.
            (5) The Air National Guard of the United States, 108,022.
            (6) The Air Force Reserve, 74,358.
            (7) The Coast Guard Reserve, 8,000.

    (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 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 2001, 
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, 22,974.
            (2) The Army Reserve, 13,106.
            (3) The Naval Reserve, 14,649.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 11,170.
            (6) The Air Force Reserve, 1,336.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2001 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 National Guard of the United States, 
        23,128.
            (2) For the Army Reserve, 5,921.

[[Page 114 STAT. 1654A-94]]

            (3) For the Air National Guard of the United States, 22,247.
            (4) For the Air Force Reserve, 9,785.

SEC. 414. FISCAL YEAR 2001 LIMITATION ON NON-DUAL STATUS TECHNICIANS.

    (a) Limitation.--The number of non-dual status technicians employed 
by the reserve components of the Army and the Air Force as of September 
30, 2001, may not exceed the following:
            (1) For the Army Reserve, 1,195.
            (2) For the Army National Guard of the United States, 1,600.
            (3) For the Air Force Reserve, 10.
            (4) For the Air National Guard of the United States, 326.

    (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.
    (c) Postponement of Permanent Limitation.--Section 10217(c)(2) of 
title 10, United States Code, is amended by striking ``October 1, 2001'' 
and inserting ``October 1, 2002''.

SEC. 415. INCREASE IN NUMBERS OF MEMBERS IN CERTAIN GRADES AUTHORIZED TO 
            BE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    (a) Officers.--The table in section 12011(a) of title 10, United 
States Code, is amended to read as follows:


------------------------------------------------------------------------
                                                          Air     Marine
                 ``Grade                Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,316    1,071      948      140
Lieutenant Colonel or Commander.....    1,759      520      852       90
Colonel or Navy Captain.............      529      188      317    30''.
------------------------------------------------------------------------

    (b) Senior Enlisted Members.--The table in section 12012(a) of such 
title is amended to read as follows:



------------------------------------------------------------------------
                                                          Air     Marine
                 ``Grade                Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................      764      202      502       20
E-8.................................    2,821      429    1,117    94''.
------------------------------------------------------------------------

    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000.
    (d) Report.--(1) Not later than March 31, 2001, 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 
management of the grade structure for reserve-component officers who are 
subject to section 12011 of title 10, United States Code, and on the 
grade structure of enlisted members who are subject to section 12012 of 
that title. The Secretary of Defense shall include in the report 
recommendations for a permanent solution for managing the grade 
structures for those officers and enlisted members without requirement 
for frequent statutory adjustments to the limitations in those sections.
    (2) In developing recommendations for the report under paragraph 
(1), the Secretary shall consider the following areas:

[[Page 114 STAT. 1654A-95]]

            (A) The grade structure authorized for field-grade officers 
        in the active-duty forces and the reasons why the grade 
        structure for field-grade reserve officers on active duty in 
        support of the reserves is different.
            (B) The grade structure authorized for senior enlisted 
        members in the active-duty forces and the reasons why the grade 
        structure for senior enlisted reserve members on active duty in 
        support of the reserves is different.
            (C) The need for independent grade limits for each reserve 
        component under sections 12011 and 12012 of title 10, United 
        States Code.
            (D) The advantages and disadvantage of replacing management 
        by the current grade tables in those sections with management 
        through a system based on the grade authorized for the position 
        occupied by the member.
            (E) The current mix within each reserve component, for each 
        controlled grade, of (i) traditional reservists, (ii) military 
        technicians, (iii) regular component members, and (iv) reserve 
        members on active duty in support of the reserves, and how that 
        mix, for each component, would shift over time under the 
        Secretary's recommended solution as specified in paragraph (1).

        Subtitle C--Other Matters Relating to Personnel Strengths

SEC. 421. AUTHORITY FOR SECRETARY OF DEFENSE TO SUSPEND CERTAIN 
            PERSONNEL STRENGTH LIMITATIONS DURING WAR OR NATIONAL 
            EMERGENCY.

    (a) Senior Enlisted Members on Active Duty.--Section 517 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(c) Whenever under section 527 of this title the President may 
suspend the operation of any provision of section 523, 525, or 526 of 
this title, the Secretary of Defense may suspend the operation of any 
provision of this section. Any such suspension shall, if not sooner 
ended, end in the manner specified in section 527 for a suspension under 
that section.''.
    (b) Field Grade Reserve Component Officers.--Section 12011 of such 
title is amended by adding at the end the following new subsection:
    ``(c) Whenever under section 527 of this title the President may 
suspend the operation of any provision of section 523, 525, or 526 of 
this title, the Secretary of Defense may suspend the operation of any 
provision of this section. Any such suspension shall, if not sooner 
ended, end in the manner specified in section 527 for a suspension under 
that section.''.
    (c) Senior Enlisted Member in Reserve Components.--Section 12012 of 
such title is amended by adding at the end the following new subsection:
    ``(c) Whenever under section 527 of this title the President may 
suspend the operation of any provision of section 523, 525, or 526 of 
this title, the Secretary of Defense may suspend the operation of any 
provision of this section. Any such suspension shall, if not sooner 
ended, end in the manner specified in section 527 for a suspension under 
that section.''.

[[Page 114 STAT. 1654A-96]]

SEC. 422. EXCLUSION FROM ACTIVE COMPONENT END STRENGTHS OF CERTAIN 
            RESERVE COMPONENT MEMBERS ON ACTIVE DUTY IN SUPPORT OF THE 
            COMBATANT COMMANDS.

    Section 115(d) of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
            ``(9) Members of reserve components (not described in 
        paragraph (8)) on active duty for more than 180 days but less 
        than 271 days to perform special work in support of the 
        combatant commands, except that--
                    ``(A) general and flag officers may not be excluded 
                under this paragraph; and
                    ``(B) the number of members of any of the armed 
                forces excluded under this paragraph may not exceed the 
                number equal to 0.2 percent of the end strength 
                authorized for active-duty personnel of that armed force 
                under subsection (a)(1)(A).''.

SEC. 423. EXCLUSION OF ARMY AND AIR FORCE MEDICAL AND DENTAL OFFICERS 
            FROM LIMITATION ON STRENGTHS OF RESERVE COMMISSIONED 
            OFFICERS IN GRADES BELOW BRIGADIER GENERAL.

    Section 12005(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) Medical officers and dental officers shall not be counted for 
the purposes of this subsection.''.

SEC. 424. AUTHORITY FOR TEMPORARY INCREASES IN NUMBER OF RESERVE 
            COMPONENT PERSONNEL SERVING ON ACTIVE DUTY OR FULL-TIME 
            NATIONAL GUARD DUTY IN CERTAIN GRADES.

    (a) Field Grade Officers.--Section 12011 of title 10, United States 
Code, as amended by section 421(b), is amended by adding at the end the 
following new subsection:
    ``(d) Upon increasing under subsection (c)(2) of section 115 of this 
title the end strength that is authorized under subsection (a)(1)(B) of 
that section for a fiscal year for active-duty personnel and full-time 
National Guard duty personnel of an armed force who are to be paid from 
funds appropriated for reserve personnel, the Secretary of Defense may 
increase for that fiscal year the limitation that is set forth in 
subsection (a) of this section for the number of officers of that armed 
force serving in any grade if the Secretary determines that such action 
is in the national interest. The percent of the increase may not exceed 
the percent by which the Secretary increases that end strength.''.
    (b) Senior Enlisted Personnel.--Section 12012 of such title, as 
amended by section 421(c), is amended by adding at the end the following 
new subsection:
    ``(d) Upon increasing under subsection (c)(2) of section 115 of this 
title the end strength that is authorized under subsection (a)(1)(B) of 
that section for a fiscal year for active-duty personnel and full-time 
National Guard duty personnel of an armed force who are to be paid from 
funds appropriated for reserve personnel, the Secretary of Defense may 
increase for that fiscal year the limitation that is set forth in 
subsection (a) of this section for the number of enlisted members of 
that armed force serving in any grade if the Secretary determines that 
such action is in the

[[Page 114 STAT. 1654A-97]]

national interest. The percent of the increase may not exceed the 
percent by which the Secretary increases that end strength.''.

               Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2001 a total of 
$75,801,666,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2001.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Eligibility of Army and Air Force Reserve colonels and 
           brigadier generals for position vacancy promotions.
Sec. 502. Flexibility in establishing promotion zones for Coast Guard 
           Reserve officers.
Sec. 503. Time for release of reports of officer promotion selection 
           boards.
Sec. 504. Clarification of requirements for composition of active-duty 
           list selection boards when reserve officers are under 
           consideration.
Sec. 505. Authority to issue posthumous commissions in the case of 
           members dying before official recommendation for appointment 
           or promotion is approved by Secretary concerned.
Sec. 506. Technical corrections relating to retired grade of reserve 
           commissioned officers.
Sec. 507. Grade of chiefs of reserve components and directors of 
           National Guard components.
Sec. 508. Revision to rules for entitlement to separation pay for 
           regular and reserve officers.

             Subtitle B--Reserve Component Personnel Policy

Sec. 521. Exemption from active-duty list for reserve officers on active 
           duty for a period of three years or less.
Sec. 522. Termination of application requirement for consideration of 
           officers for continuation on the reserve active-status list.
Sec. 523. Authority to retain Air Force Reserve officers in all medical 
           specialties until specified age.
Sec. 524. Authority for provision of legal services to reserve component 
           members following release from active duty.
Sec. 525. Extension of involuntary civil service retirement date for 
           certain reserve technicians.

                   Subtitle C--Education and Training

Sec. 531. Eligibility of children of Reserves for Presidential 
           appointment to service academies.
Sec. 532. Selection of foreign students to receive instruction at 
           service academies.
Sec. 533. Revision of college tuition assistance program for members of 
           Marine Corps Platoon Leaders Class program.
Sec. 534. Review of allocation of Junior Reserve Officers Training Corps 
           units among the services.
Sec. 535. Authority for Naval Postgraduate School to enroll certain 
           defense industry civilians in specified programs relating to 
           defense product development.

           Subtitle D--Decorations, Awards, and Commendations

Sec. 541. Limitation on award of Bronze Star to members in receipt of 
           imminent danger pay.

[[Page 114 STAT. 1654A-98]]

Sec. 542. Consideration of proposals for posthumous or honorary 
           promotions or appointments of members or former members of 
           the Armed Forces and other qualified persons.
Sec. 543. Waiver of time limitations for award of certain decorations to 
           certain persons.
Sec. 544. Addition of certain information to markers on graves 
           containing remains of certain unknowns from the U.S.S. 
           Arizona who died in the Japanese attack on Pearl Harbor on 
           December 7, 1941.
Sec. 545. Sense of Congress on the court-martial conviction of Captain 
           Charles Butler McVay, Commander of the U.S.S. Indianapolis, 
           and on the courageous service of the crew of that vessel.
Sec. 546. Posthumous advancement on retired list of Rear Admiral Husband 
           E. Kimmel and Major General Walter C. Short, senior officers 
           in command in Hawaii on December 7, 1941.
Sec. 547. Commendation of citizens of Remy, France, for World War II 
           actions.
Sec. 548. Authority for award of the Medal of Honor to William H. 
           Pitsenbarger for valor during the Vietnam War.

        Subtitle E--Military Justice and Legal Assistance Matters

Sec. 551. Recognition by States of military testamentary instruments.
Sec. 552. Policy concerning rights of individuals whose names have been 
           entered into Department of Defense official criminal 
           investigative reports.
Sec. 553. Limitation on Secretarial authority to grant clemency for 
           military prisoners serving sentence of confinement for life 
           without eligibility for parole.
Sec. 554. Authority for civilian special agents of military department 
           criminal investigative organizations to execute warrants and 
           make arrests.
Sec. 555. Requirement for verbatim record in certain special court-
           martial cases.
Sec. 556. Commemoration of the 50th anniversary of the Uniform Code of 
           Military Justice.

               Subtitle F--Matters Relating to Recruiting

Sec. 561. Army recruiting pilot programs.
Sec. 562. Enhancement of recruitment market research and advertising 
           programs.
Sec. 563. Access to secondary schools for military recruiting purposes.
Sec. 564. Pilot program to enhance military recruiting by improving 
           military awareness of school counselors and educators.

                        Subtitle G--Other Matters

Sec. 571. Extension to end of calendar year of expiration date for 
           certain force drawdown transition authorities.
Sec. 572. Voluntary separation incentive.
Sec. 573. Congressional review period for assignment of women to duty on 
           submarines and for any proposed reconfiguration or design of 
           submarines to accommodate female crew members.
Sec. 574. Management and per diem requirements for members subject to 
           lengthy or numerous deployments.
Sec. 575. Pay in lieu of allowance for funeral honors duty.
Sec. 576. Test of ability of reserve component intelligence units and 
           personnel to meet current and emerging defense intelligence 
           needs.
Sec. 577. National Guard Challenge Program.
Sec. 578. Study of use of civilian contractor pilots for operational 
           support missions.
Sec. 579. Reimbursement for expenses incurred by members in connection 
           with cancellation of leave on short notice.

                  Subtitle A--Officer Personnel Policy

SEC. 501. ELIGIBILITY OF ARMY AND AIR FORCE RESERVE COLONELS AND 
            BRIGADIER GENERALS FOR POSITION VACANCY PROMOTIONS.

    Section 14315(b) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting after ``(A) is assigned 
        to the duties of a general officer of the next higher reserve 
        grade in the Army Reserve'' the following: ``or is recommended 
        for such an assignment under regulations prescribed by the 
        Secretary of the Army''; and
            (2) in paragraph (2), by inserting after ``(A) is assigned 
        to the duties of a general officer of the next higher reserve

[[Page 114 STAT. 1654A-99]]

        grade'' the following: ``or is recommended for such an 
        assignment under regulations prescribed by the Secretary of the 
        Air Force''.

SEC. 502. FLEXIBILITY IN ESTABLISHING PROMOTION ZONES FOR COAST GUARD 
            RESERVE OFFICERS.

    (a) Coast Guard Reserve Officer Promotion System Based on DOD ROPMA 
System.--Section 729(d) of title 14, United States Code, is amended to 
read as follows:
    ``(d)(1) Before convening a selection board to recommend Reserve 
officers for promotion, the Secretary shall establish a promotion zone 
for officers serving in each grade to be considered by the board. The 
Secretary shall determine the number of officers in the promotion zone 
for officers serving in any grade from among officers who are eligible 
for promotion in that grade.
    ``(2)(A) Before convening a selection board to recommend Reserve 
officers for promotion to a grade (other than the grade of lieutenant 
(junior grade)), the Secretary shall determine the maximum number of 
officers in that grade that the board may recommend for promotion.
    ``(B) The Secretary shall make the determination under subparagraph 
(A) of the maximum number that may be recommended with a view to having 
in an active status a sufficient number of Reserve officers in each 
grade to meet the needs of the Coast Guard for Reserve officers in an 
active status.
    ``(C) In order to make the determination under subparagraph (B), the 
Secretary shall determine the following:
            ``(i) The number of positions needed to accomplish mission 
        objectives that require officers in the grade to which the board 
        will recommend officers for promotion.
            ``(ii) The estimated number of officers needed to fill 
        vacancies in such positions during the period in which it is 
        anticipated that officers selected for promotion will be 
        promoted.
            ``(iii) The number of officers authorized by the Secretary 
        to serve in an active status in the grade under consideration.
            ``(iv) Any statutory limitation on the number of officers in 
        any grade authorized to be in an active status.

    ``(3)(A) The Secretary may, when the needs of the Coast Guard 
require, authorize the consideration of officers in a grade above 
lieutenant (junior grade) for promotion to the next higher grade from 
below the promotion zone.
    ``(B) When selection from below the promotion zone is authorized, 
the Secretary shall establish the number of officers that may be 
recommended for promotion from below the promotion zone. That number may 
not exceed the number equal to 10 percent of the maximum number of 
officers that the board is authorized to recommend for promotion, except 
that the Secretary may authorize a greater number, not to exceed 15 
percent of the total number of officers that the board is authorized to 
recommend for promotion, if the Secretary determines that the needs of 
the Coast Guard so require. If the maximum number determined under this 
subparagraph is less than one, the board may recommend one officer for 
promotion from below the promotion zone.
    ``(C) The number of officers recommended for promotion from below 
the promotion zone does not increase the maximum number of officers that 
the board is authorized to recommend for promotion under paragraph 
(2).''.

[[Page 114 STAT. 1654A-100]]

    (b) Running Mate System Made Optional.--(1) Section 731 of such 
title is amended--
            (A) by designating the text of such section as subsection 
        (b);
            (B) by inserting after the section heading the following:

    ``(a) Authority To Use Running Mate System.--The Secretary may by 
regulation implement section 729(d)(1) of this title by requiring that 
the promotion zone for consideration of Reserve officers in an active 
status for promotion to the next higher grade be determined in 
accordance with a running mate system as provided in subsection (b).'';
            (C) in subsection (b), as designated by subparagraph (A), by 
        striking ``Subject to the eligibility requirements of this 
        subchapter, a Reserve officer shall'' and inserting the 
        following: ``Consideration for Promotion.--If promotion zones 
        are determined as authorized under subsection (a), a Reserve 
        officer shall, subject to the eligibility requirements of this 
        subchapter,''; and
            (D) by adding at the end the following:

    ``(c) Consideration of Officers Below the Zone.--If the Secretary 
authorizes the selection of officers for promotion from below the 
promotion zone in accordance with section 729(d)(3) of this title, the 
number of officers to be considered from below the zone may be 
established through the application of the running mate system under 
this subchapter or otherwise as the Secretary determines to be 
appropriate to meet the needs of the Coast Guard.''.
    (2)(A) The heading for such section is amended to read as follows:

``Sec. 731. Establishment of promotion zones under running mate 
                        system''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 21 of such title is amended to read as follows:

``731. Establishment of promotion zones under running mate system.''.

    (c) Effective Date.--The amendments made by this section shall apply 
with respect to selection boards convened under section 730 of title 14, 
United States Code, on or after the date of the enactment of this Act.

SEC. 503. TIME FOR RELEASE OF REPORTS OF OFFICER PROMOTION SELECTION 
            BOARDS.

    (a) Active-Duty List Officer Boards.--Section 618(e) of title 10, 
United States Code, is amended to read as follows:
    ``(e)(1) The names of the officers recommended for promotion in the 
report of a selection board shall be disseminated to the armed force 
concerned as follows:
            ``(A) In the case of officers recommended for promotion to a 
        grade below brigadier general or rear admiral (lower half ), 
        such names may be disseminated upon, or at any time after, the 
        transmittal of the report to the President.
            ``(B) In the case of officers recommended for promotion to a 
        grade above colonel or, in the case of the Navy, captain, such 
        names may be disseminated upon, or at any time after, the 
        approval of the report by the President.

[[Page 114 STAT. 1654A-101]]

            ``(C) In the case of officers whose names have not been 
        sooner disseminated, such names shall be promptly disseminated 
        upon confirmation by the Senate.

    ``(2) A list of names of officers disseminated under paragraph (1) 
may not include--
            ``(A) any name removed by the President from the report of 
        the selection board containing that name, if dissemination is 
        under the authority of subparagraph (B) of such paragraph; or
            ``(B) the name of any officer whose promotion the Senate 
        failed to confirm, if dissemination is under the authority of 
        subparagraph (C) of such paragraph.''.

    (b) Reserve Active-Status List Officer Boards.--The text of section 
14112 of title 10, United States Code, is amended to read as follows:
    ``(a) Time for Dissemination.--The names of the officers recommended 
for promotion in the report of a selection board shall be disseminated 
to the armed force concerned as follows:
            ``(1) In the case of officers recommended for promotion to a 
        grade below brigadier general or rear admiral (lower half ), 
        such names may be disseminated upon, or at any time after, the 
        transmittal of the report to the President.
            ``(2) In the case of officers recommended for promotion to a 
        grade above colonel or, in the case of the Navy, captain, such 
        names may be disseminated upon, or at any time after, the 
        approval of the report by the President.
            ``(3) In the case of officers whose names have not been 
        sooner disseminated, such names shall be promptly disseminated--
                    ``(A) upon confirmation of the promotion of the 
                officers by the Senate (in the case of promotions 
                required to be submitted to the Senate for 
                confirmation); or
                    ``(B) upon the approval of the report by the 
                President (in the case of promotions not required to be 
                submitted to the Senate for confirmation).

    ``(b) Names Not Disseminated.--A list of names of officers 
disseminated under subsection (a) may not include--
            ``(1) any name removed by the President from the report of 
        the selection board containing that name, if dissemination is 
        under the authority of paragraph (2) or (3)(B) of that 
        subsection; or
            ``(2) the name of any officer whose promotion the Senate 
        failed to confirm, if dissemination is under the authority of 
        paragraph (3)(A) of that subsection.''.

SEC. 504. CLARIFICATION OF REQUIREMENTS FOR COMPOSITION OF ACTIVE-DUTY 
            LIST SELECTION BOARDS WHEN RESERVE OFFICERS ARE UNDER 
            CONSIDERATION.

    (a) Clarification.--Section 612(a) of title 10, United States Code, 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``who are on the active-duty list'' 
                in the second sentence; and
                    (B) by inserting after the second sentence the 
                following new sentence: ``Each member of a selection 
                board (except as provided in paragraphs (2), (3), and 
                (4)) shall be an officer on the active-duty list.''; and

[[Page 114 STAT. 1654A-102]]

            (2) in paragraph (3)--
                    (A) by striking ``of that armed force, with the 
                exact number of reserve officers to be'' and inserting 
                ``of that armed force on active duty (whether or not on 
                the active-duty list). The actual number of reserve 
                officers shall be''; and
                    (B) by striking ``his discretion, except that'' and 
                inserting ``the Secretary's discretion. Notwithstanding 
                the first sentence of this paragraph,''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to any selection board convened under section 611(a) of title 10, 
United States Code, on or after August 1, 1981.

SEC. 505. AUTHORITY TO ISSUE POSTHUMOUS COMMISSIONS IN THE CASE OF 
            MEMBERS DYING BEFORE OFFICIAL RECOMMENDATION FOR APPOINTMENT 
            OR PROMOTION IS APPROVED BY SECRETARY CONCERNED.

    (a) Repeal of Limitation to Deaths Occurring After Secretarial 
Approval.--Subsection (a)(3) of section 1521 of title 10, United States 
Code, is amended by striking ``and the recommendation for whose 
appointment or promotion was approved by the Secretary concerned''.
    (b) Effective Date of Commission.--Subsection (b) of such section is 
amended by striking ``approval'' both places it appears and inserting 
``official recommendation''.

SEC. 506. TECHNICAL CORRECTIONS RELATING TO RETIRED GRADE OF RESERVE 
            COMMISSIONED OFFICERS.

    (a) Army.--Section 3961(a) of title 10, United States Code, is 
amended by striking ``or for nonregular service under chapter 1223 of 
this title''.
    (b) Air Force.--Section 8961(a) of title 10, United States Code, is 
amended by striking ``or for nonregular service under chapter 1223 of 
this title''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to Reserve commissioned officers who are promoted to a 
higher grade as a result of selection for promotion by a board convened 
under chapter 36 or 1403 of title 10, United States Code, or having been 
found qualified for Federal recognition in a higher grade under chapter 
3 of title 32, United States Code, after October 1, 1996.

SEC. 507. GRADE OF CHIEFS OF RESERVE COMPONENTS AND DIRECTORS OF 
            NATIONAL GUARD COMPONENTS.

    (a) Chief of Army Reserve.--Subsections (b) and (c) of section 3038 
of title 10, United States Code, are amended to read as follows:
    ``(b) Appointment.--(1) The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Army Reserve from 
general officers of the Army Reserve who have had at least 10 years of 
commissioned service in the Army Reserve.
    ``(2) The Secretary of Defense may not recommend an officer to the 
President for appointment as Chief of Army Reserve unless the officer--
            ``(A) is recommended by the Secretary of the Army; and
            ``(B) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process

[[Page 114 STAT. 1654A-103]]

        established by the Chairman, to have significant joint duty 
        experience.

    ``(3) An officer on active duty for service as the Chief of Army 
Reserve shall be counted for purposes of the grade limitations under 
sections 525 and 526 of this title.
    ``(4) Until October 1, 2003, the Secretary of Defense may waive 
subparagraph (B) of paragraph (2) with respect to the appointment of an 
officer as Chief of Army Reserve if the Secretary of the Army requests 
the waiver and, in the judgment of the Secretary of Defense--
            ``(A) the officer is qualified for service in the position; 
        and
            ``(B) the waiver is necessary for the good of the service.

Any such waiver shall be made on a case-by-case basis.
    ``(c) Term; Reappointment; Grade.--(1) The Chief of Army Reserve is 
appointed for a period of four years, but may be removed for cause at 
any time. An officer serving as Chief of Army Reserve may be reappointed 
for one additional four-year period.
    ``(2) The Chief of Army Reserve, while so serving, holds the grade 
of lieutenant general.''.
    (b) Chief of Naval Reserve.--Subsections (b) and (c) of section 5143 
of such title are amended to read as follows:
    ``(b) Appointment.--(1) The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Naval Reserve from 
flag officers of the Navy (as defined in section 5001(1)) who have had 
at least 10 years of commissioned service.
    ``(2) The Secretary of Defense may not recommend an officer to the 
President for appointment as Chief of Naval Reserve unless the officer--
            ``(A) is recommended by the Secretary of the Navy; and
            ``(B) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.

    ``(3) An officer on active duty for service as the Chief of Naval 
Reserve shall be counted for purposes of the grade limitations under 
sections 525 and 526 of this title.
    ``(4) Until October 1, 2003, the Secretary of Defense may waive 
subparagraph (B) of paragraph (2) with respect to the appointment of an 
officer as Chief of Naval Reserve if the Secretary of the Navy requests 
the waiver and, in the judgment of the Secretary of Defense--
            ``(A) the officer is qualified for service in the position; 
        and
            ``(B) the waiver is necessary for the good of the service.

Any such waiver shall be made on a case-by-case basis.
    ``(c) Term; Reappointment; Grade.--(1) The Chief of Naval Reserve is 
appointed for a term determined by the Chief of Naval Operations, 
normally four years, but may be removed for cause at any time. An 
officer serving as Chief of Naval Reserve may be reappointed for one 
additional term of up to four years.
    ``(2) The Chief of Naval Reserve, while so serving, holds the grade 
of vice admiral.''.
    (c) Commander, Marine Forces Reserve.--Subsections (b) and (c) of 
section 5144 of such title are amended to read as follows:
    ``(b) Appointment.--(1) The President, by and with the advice and 
consent of the Senate, shall appoint the Commander, Marine

[[Page 114 STAT. 1654A-104]]

Forces Reserve, from general officers of the Marine Corps (as defined in 
section 5001(2)) who have had at least 10 years of commissioned service.
    ``(2) The Secretary of Defense may not recommend an officer to the 
President for appointment as Commander, Marine Forces Reserve, unless 
the officer--
            ``(A) is recommended by the Secretary of the Navy; and
            ``(B) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.

    ``(3) An officer on active duty for service as the Commander, Marine 
Forces Reserve, shall be counted for purposes of the grade limitations 
under sections 525 and 526 of this title.
    ``(4) Until October 1, 2003, the Secretary of Defense may waive 
subparagraph (B) of paragraph (2) with respect to the appointment of an 
officer as Commander, Marine Forces Reserve, if the Secretary of the 
Navy requests the waiver and, in the judgment of the Secretary of 
Defense--
            ``(A) the officer is qualified for service in the position; 
        and
            ``(B) the waiver is necessary for the good of the service.

Any such waiver shall be made on a case-by-case basis.
    ``(c) Term; Reappointment; Grade.--(1) The Commander, Marine Forces 
Reserve, is appointed for a term determined by the Commandant of the 
Marine Corps, normally four years, but may be removed for cause at any 
time. An officer serving as Commander, Marine Forces Reserve, may be 
reappointed for one additional term of up to four years.
    ``(2) The Commander, Marine Forces Reserve, while so serving, holds 
the grade of lieutenant general.''.
    (d) Chief of Air Force Reserve.--Subsections (b) and (c) of section 
8038 of such title are amended to read as follows:
    ``(b) Appointment.--(1) The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Air Force Reserve from 
general officers of the Air Force Reserve who have had at least 10 years 
of commissioned service in the Air Force.
    ``(2) The Secretary of Defense may not recommend an officer to the 
President for appointment as Chief of Air Force Reserve unless the 
officer--
            ``(A) is recommended by the Secretary of the Air Force; and
            ``(B) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.

    ``(3) An officer on active duty for service as the Chief of Air 
Force Reserve shall be counted for purposes of the grade limitations 
under sections 525 and 526 of this title.
    ``(4) Until October 1, 2003, the Secretary of Defense may waive 
subparagraph (B) of paragraph (2) with respect to the appointment of an 
officer as Chief of Air Force Reserve if the Secretary of the Air Force 
requests the waiver and, in the judgment of the Secretary of Defense--
            ``(A) the officer is qualified for service in the position; 
        and
            ``(B) the waiver is necessary for the good of the service.

[[Page 114 STAT. 1654A-105]]

Any such waiver shall be made on a case-by-case basis.
    ``(c) Term; Reappointment; Grade.--(1) The Chief of Air Force 
Reserve is appointed for a period of four years, but may be removed for 
cause at any time. An officer serving as Chief of Air Force Reserve may 
be reappointed for one additional four-year period.
    ``(2) The Chief of Air Force Reserve, while so serving, holds the 
grade of lieutenant general.''.
    (e) Directors in the National Guard Bureau.--Section 10506(a) of 
such title is amended--
            (1) in subparagraphs (A) and (B) of paragraph (1), by 
        striking ``while so serving shall hold the grade of major 
        general or, if appointed to that position in accordance with 
        section 12505(a)(2) of this title, the grade of lieutenant 
        general, and'' and inserting ``shall be appointed in accordance 
        with paragraph (3), shall hold the grade of lieutenant general 
        while so serving, and shall''; and
            (2) by adding at the end the following new paragraph:

    ``(3)(A) The President, by and with the advice and consent of the 
Senate, shall appoint the Director, Army National Guard, from general 
officers of the Army National Guard of the United States and shall 
appoint the Director, Air National Guard, from general officers of the 
Air National Guard of the United States.
    ``(B) The Secretary of Defense may not recommend an officer to the 
President for appointment as Director, Army National Guard, or as 
Director, Air National Guard, unless the officer--
            ``(i) is recommended by the Secretary of the military 
        department concerned; and
            ``(ii) is determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience.

    ``(C) An officer on active duty for service as the Director, Army 
National Guard, or the Director, Air National Guard, shall be counted 
for purposes of the grade limitations under sections 525 and 526 of this 
title.
    ``(D) Until October 1, 2003, the Secretary of Defense may waive 
clause (ii) of subparagraph (B) with respect to the appointment of an 
officer as Director, Army National Guard, or as Director, Air National 
Guard, if the Secretary of the military department concerned requests 
the waiver and, in the judgment of the Secretary of Defense--
            ``(i) the officer is qualified for service in the position; 
        and
            ``(ii) the waiver is necessary for the good of the service.

Any such waiver shall be made on a case-by-case basis.
    ``(E) The Director, Army National Guard, and the Director, Air 
National Guard, are appointed for a period of four years, but may be 
removed for cause at any time. An officer serving as either Director may 
be reappointed for one additional four-year period.''.
    (f ) Repeal of Superseded Section.--(1) Section 12505 of such title 
is repealed.
    (2) The table of sections at the beginning of chapter 1213 is 
amended by striking the item relating to section 12505.
    (g) Conforming Increase in Authorized Number of O-9 Positions.--
Section 525(b) of such title is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Army, Air Force, or Marine Corps'' 
                in the first sentence and inserting ``Army or Air 
                Force'';

[[Page 114 STAT. 1654A-106]]

                    (B) by striking ``15 percent'' both places it 
                appears and inserting ``15.7 percent'';
                    (C) by striking ``In the case of the Army and Air 
                Force, of'' at the beginning of the second sentence and 
                inserting ``Of''; and
                    (D) by inserting ``of the Army or Air Force'' in the 
                second sentence after ``general officers''; and
            (2) in paragraph (2)--
                    (A) by inserting ``(A)'' after ``(2)'';
                    (B) by striking ``15 percent'' both places it 
                appears and inserting ``15.7 percent''; and
                    (C) by adding at the end the following:

    ``(B) No appointment may be made in a grade above major general in 
the Marine Corps if that appointment would result in more than 16.2 
percent of the general officers of the Marine Corps on active duty being 
in grades above major general.''.
    (h) Study of Increase in Grade for Vice Chief of National Guard 
Bureau.--(1) The Secretary of Defense shall conduct a study of the 
advisability of changing the grade authorized for the Vice Chief of the 
National Guard Bureau from major general to lieutenant general.
    (2) As part of the study, the Chief of the National Guard Bureau 
shall submit to the Secretary of Defense an analysis of the functions 
and responsibilities of the Vice Chief of the National Guard Bureau and 
the Chief's recommendation as to whether the grade for the Vice Chief 
should be changed from major general to lieutenant general.
    (3) Not later than February 1, 2001, the Secretary shall submit to 
the Committees on Armed Services of the Senate and House of 
Representatives a report on the study. The report shall include the 
following--
            (A) the recommendation of the Chief of the National Guard 
        Bureau and any other information provided by the Chief to the 
        Secretary of Defense pursuant to paragraph (2);
            (B) the conclusions resulting from the study; and
            (C) the Secretary's recommendations regarding whether the 
        grade authorized for the Vice Chief of the National Guard Bureau 
        should be changed to lieutenant general.

    (i) Implementation.--(1) An appointment or reappointment, in the 
case of the incumbent in a reserve component chief position, shall be 
made to each of the reserve component chief positions not later than 12 
months after the date of the enactment of this Act, in accordance with 
the amendments made by subsections (a) through (e).
    (2) An officer serving in a reserve component chief position on the 
date of the enactment of this Act may be reappointed to that position 
under the amendments made by subsection (a) through (e), if eligible and 
otherwise qualified in accordance with those amendments. If such an 
officer is so reappointed, the appointment may be made for the remainder 
of the officer's original term or for a full new term, as specified at 
the time of the appointment.
    (3) An officer serving on the date of the enactment of this Act in a 
reserve component chief position may continue to serve in that position 
in accordance with the provisions of law in effect immediately before 
the amendments made by this section until a successor is appointed under 
paragraph (1) (or that officer is reappointed under paragraph (1)).

[[Page 114 STAT. 1654A-107]]

    (4) The amendments made by subsection (g) shall be implemented so 
that each increase authorized by those amendments in the number of 
officers in the grades of lieutenant general and vice admiral is 
implemented on a case-by-case basis with an initial appointment made 
after the date of the enactment of this Act, as specified in paragraph 
(1), to a reserve component chief position.
    (5) For purposes of this subsection, the term ``reserve component 
chief position'' means a position specified in section 3038, 5143, 5144, 
or 8038 of title 10, United States Code, or the position of Director, 
Army National Guard or Director, Air National Guard under section 
10506(a)(1) of such title.

SEC. 508. REVISION TO RULES FOR ENTITLEMENT TO SEPARATION PAY FOR 
            REGULAR AND RESERVE OFFICERS.

    (a) Regular Officers.--Subsection (a) of section 1174 of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
    ``(4) Notwithstanding paragraphs (1) and (2), an officer who is 
subject to discharge under any provision of chapter 36 of this title or 
under section 580 or 6383 of this title by reason of having twice failed 
of selection for promotion to the next higher grade is not entitled to 
separation pay under this section if that officer, after such second 
failure of selection for promotion, is selected for, and declines, 
continuation on active duty for a period that is equal to or more than 
the amount of service required to qualify the officer for retirement.''.
    (b) Reserve Officers.--Subsection (c) of such section is amended by 
adding at the end the following new paragraph:
    ``(4) In the case of an officer who is subject to discharge or 
release from active duty under a law or regulation requiring that an 
officer who has failed of selection for promotion to the next higher 
grade for the second time be discharged or released from active duty and 
who, after such second failure of selection for promotion, is selected 
for, and declines, continuation on active duty--
            ``(A) if the period of time for which the officer was 
        selected for continuation on active duty is less than the amount 
        of service that would be required to qualify the officer for 
        retirement, the officer's discharge or release from active duty 
        shall be considered to be involuntary for purposes of paragraph 
        (1)(A); and
            ``(B) if the period of time for which the officer was 
        selected for continuation on active duty is equal to or more 
        than the amount of service that would be required to qualify the 
        officer for retirement, the officer's discharge or release from 
        active duty shall not be considered to be involuntary for the 
        purposes of paragraph (1)(A).''.

    (c) Effective Date.--Paragraph (4) of section 1174(a) of title 10, 
United States Code, as added by subsection (a), and paragraph (4) of 
section 1174(c) of such title, as added by subsection (b), shall apply 
with respect to any offer of selective continuation on active duty that 
is declined on or after the date of the enactment of this Act.

[[Page 114 STAT. 1654A-108]]

             Subtitle B--Reserve Component Personnel Policy

SEC. 521. EXEMPTION FROM ACTIVE-DUTY LIST FOR RESERVE OFFICERS ON ACTIVE 
            DUTY FOR A PERIOD OF THREE YEARS OR LESS.

    Section 641(1) of title 10, United States Code, is amended--
            (1) by redesignating subparagraphs (D) through (G) as 
        subparagraphs (E) through (H), respectively; and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) on the reserve active-status list who are on 
                active duty under section 12301(d) of this title, other 
                than as provided in subparagraph (C), under a call or 
                order to active duty specifying a period of three years 
                or less;''.

SEC. 522. TERMINATION OF APPLICATION REQUIREMENT FOR CONSIDERATION OF 
            OFFICERS FOR CONTINUATION ON THE RESERVE ACTIVE-STATUS LIST.

    Section 14701(a)(1) of title 10, United States Code, is amended by 
striking ``Upon application, a reserve officer'' and inserting ``A 
reserve officer''.

SEC. 523. AUTHORITY TO RETAIN AIR FORCE RESERVE OFFICERS IN ALL MEDICAL 
            SPECIALTIES UNTIL SPECIFIED AGE.

    Section 14703(a)(3) of title 10, United States Code, is amended by 
striking ``veterinary officer'' and all that follows through the period 
and inserting ``Air Force nurse, Medical Service Corps officer, 
biomedical sciences officer, or chaplain.''.

SEC. 524. AUTHORITY FOR PROVISION OF LEGAL SERVICES TO RESERVE COMPONENT 
            MEMBERS FOLLOWING RELEASE FROM ACTIVE DUTY.

    (a) Legal Services.--Section 1044(a) of title 10, United States 
Code, is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
            ``(4) Members of reserve components not covered by paragraph 
        (1) or (2) following release from active duty under a call or 
        order to active duty for more than 30 days issued under a 
        mobilization authority (as determined by the Secretary of 
        Defense), for a period of time, prescribed by the Secretary of 
        Defense, that begins on the date of the release and is not less 
        than twice the length of the period served on active duty under 
        that call or order to active duty.''.

    (b) Dependents.--Paragraph (5) of such section, as redesignated by 
subsection (a)(1), is amended by striking ``and (3)'' and inserting 
``(3), and (4)''.
    (c) Implementing Regulations.--Regulations to implement the 
amendments made by this section shall be prescribed not later than 180 
days after the date of the enactment of this Act.

SEC. 525. EXTENSION OF INVOLUNTARY CIVIL SERVICE RETIREMENT DATE FOR 
            CERTAIN RESERVE TECHNICIANS.

    (a) Mandatory Retirement Not Applicable Until Age 60.--Section 10218 
of title 10, United States Code, is amended--

[[Page 114 STAT. 1654A-109]]

            (1) in subsection (a)--
                    (A) by inserting ``and is age 60 or older at that 
                time'' after ``unreduced annuity'' in paragraph (2);
                    (B) by inserting ``or is under age 60 at that time'' 
                after ``unreduced annuity'' in paragraph (3)(A); and
                    (C) by inserting ``and becoming 60 years of age'' 
                after ``unreduced annuity'' in paragraph (3)(B)(ii)(I); 
                and
            (2) in subsection (b)--
                    (A) by inserting ``and is age 60 or older'' after 
                ``unreduced annuity'' in paragraph (1);
                    (B) by inserting ``or is under age 60'' after 
                ``unreduced annuity'' in paragraph (2)(A); and
                    (C) by inserting ``and becoming 60 years of age'' 
                after ``unreduced annuity'' in paragraph (2)(B)(ii)(I).

    (b) Transition Provision.--(1) An individual who before the date of 
the enactment of this Act was involuntarily separated or retired from 
employment as an Army Reserve or Air Force Reserve technician under 
section 10218 of title 10, United States Code, and who would not have 
been so separated if the provisions of subsection (c) of that section, 
as amended by subsection (a), had been in effect at the time of such 
separation may, with the approval of the Secretary concerned, be 
reinstated to the technician status held by that individual immediately 
before that separation. The effective date of any such reinstatement is 
the date the employee resumes technician status.
    (2) The authority under paragraph (1) applies only to reinstatement 
for which an application is received by the Secretary concerned before 
the end of the one-year period beginning on the date of the enactment of 
this Act.

                   Subtitle C--Education and Training

SEC. 531. ELIGIBILITY OF CHILDREN OF RESERVES FOR PRESIDENTIAL 
            APPOINTMENT TO SERVICE ACADEMIES.

    (a) United States Military Academy.--Section 4342(b)(1) of title 10, 
United States Code, is amended--
            (1) in subparagraph (B), by striking ``, other than those 
        granted retired pay under section 12731 of this title (or under 
        section 1331 of this title as in effect before the effective 
        date of the Reserve Officer Personnel Management Act)''; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) are serving as members of reserve components 
                and are credited with at least eight years of service 
                computed under section 12733 of this title; or
                    ``(D) would be, or who died while they would have 
                been, entitled to retired pay under chapter 1223 of this 
                title except for not having attained 60 years of age;''.

    (b) United States Naval Academy.--Section 6954(b)(1) of such title 
is amended--
            (1) in subparagraph (B), by striking ``, other than those 
        granted retired pay under section 12731 of this title (or under 
        section 1331 of this title as in effect before the effective 
        date of the Reserve Officer Personnel Management Act)''; and
            (2) by inserting after subparagraph (B) the following:

[[Page 114 STAT. 1654A-110]]

                    ``(C) are serving as members of reserve components 
                and are credited with at least eight years of service 
                computed under section 12733 of this title; or
                    ``(D) would be, or who died while they would have 
                been, entitled to retired pay under chapter 1223 of this 
                title except for not having attained 60 years of age;''.

    (c) United States Air Force Academy.--Section 9342(b)(1) of such 
title is amended--
            (1) in subparagraph (B), by striking ``, other than those 
        granted retired pay under section 12731 of this title (or under 
        section 1331 of this title as in effect before the effective 
        date of the Reserve Officer Personnel Management Act)''; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) are serving as members of reserve components 
                and are credited with at least eight years of service 
                computed under section 12733 of this title; or
                    ``(D) would be, or who died while they would have 
                been, entitled to retired pay under chapter 1223 of this 
                title except for not having attained 60 years of age;''.

SEC. 532. SELECTION OF FOREIGN STUDENTS TO RECEIVE INSTRUCTION AT 
            SERVICE ACADEMIES.

    (a) United States Military Academy.--Section 4344(a) of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
    ``(3) In selecting persons to receive instruction under this section 
from among applicants from the countries approved under paragraph (2), 
the Secretary of the Army shall give a priority to persons who have a 
national service obligation to their countries upon graduation from the 
Academy.''.
    (b) United States Naval Academy.--Section 6957(a) of such title is 
amended by adding at the end the following new paragraph:
    ``(3) In selecting persons to receive instruction under this section 
from among applicants from the countries approved under paragraph (2), 
the Secretary of the Navy shall give a priority to persons who have a 
national service obligation to their countries upon graduation from the 
Academy.''.
    (c) United States Air Force Academy.--Section 9344(a) of such title 
is amended by adding at the end the following new paragraph:
    ``(3) In selecting persons to receive instruction under this section 
from among applicants from the countries approved under paragraph (2), 
the Secretary of the Air Force shall give a priority to persons who have 
a national service obligation to their countries upon graduation from 
the Academy.''.
    (d) Applicability.--The amendments made by this section shall apply 
with respect to academic years that begin after October 1, 2000.

SEC. 533. REVISION OF COLLEGE TUITION ASSISTANCE PROGRAM FOR MEMBERS OF 
            MARINE CORPS PLATOON LEADERS CLASS PROGRAM.

    (a) Eligibility of Officers.--Section 16401 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking ``enlisted'' in the 
        matter preceding paragraph (1); and
            (2) in subsection (b)(1)--

[[Page 114 STAT. 1654A-111]]

                    (A) by striking ``an enlisted member'' in the matter 
                preceding subparagraph (A) and inserting ``a member''; 
                and
                    (B) by striking ``an officer candidate in'' in 
                subparagraph (A) and inserting ``a member of''.

    (b) Repeal of Age Limitations.--Subsection (b) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (B);
                    (B) by redesignating subparagraphs (C) and (D) as 
                subparagraphs (B) and (C), respectively; and
                    (C) in subparagraph (C), as so redesignated, by 
                striking ``paragraph (3)'' and inserting ``paragraph 
                (2)'';
            (2) by striking paragraph (2);
            (3) by redesignating paragraph (3) as paragraph (2); and
            (4) in paragraph (2), as so redesignated, by striking 
        ``paragraph (1)(D)'' and inserting ``paragraph (1)(C)''.

    (c) Candidates for Law Degrees.--Subsection (a)(2) of such section 
is amended by striking ``three'' and inserting ``four''.
    (d) Sanctions; Exceptions.--Subsection (f ) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``A member who'' and inserting ``An 
                enlisted member who'';
                    (B) by inserting ``and an officer who receives 
                financial assistance under this section may be required 
                to repay the full amount of financial assistance,'' 
                after ``for more than four years,''; and
                    (C) by inserting ``or, if already a commissioned 
                officer in the Marine Corps, refuses to accept an 
                assignment on active duty when offered'' in subparagraph 
                (A) after ``when offered''; and
            (2) by striking paragraph (2) and inserting the following:

    ``(2) The Secretary of the Navy may waive the requirements of 
paragraph (1) in the case of a person who--
            ``(A) becomes unqualified to serve on active duty as an 
        officer due to a circumstance not within the control of the 
        person;
            ``(B) is not physically qualified for appointment under 
        section 532 of this title and later is determined by the 
        Secretary of the Navy under section 505 of this title to be 
        unqualified for service as an enlisted member of the Marine 
        Corps due to a physical or medical condition that was not the 
        result of misconduct or grossly negligent conduct; or
            ``(C) fails to complete the military or academic 
        requirements of the Marine Corps Platoon Leaders Class program 
        due to a circumstance not within the control of the person.''.

    (e) Clarification of Service Excluded in Computation of Creditable 
Service as a Marine Corps Officer.--(1) Section 205(f ) of title 37, 
United States Code, is amended by striking ``that the officer performed 
concurrently as a member'' and inserting ``that the officer performed 
concurrently as an enlisted member''.
    (2) Such section is further amended by striking ``section 12209'' 
and inserting ``section 12203''.
    (f ) Amendments of Headings.--(1) The heading of section 16401 of 
title 10, United States Code, is amended to read as follows:

[[Page 114 STAT. 1654A-112]]

``Sec. 16401. Marine Corps Platoon Leaders Class: college tuition 
                        assistance program''.

    (2) The heading for subsection (a) of such section is amended by 
striking ``for Financial Assistance Program''.
    (g) Clerical Amendment.--The item relating to such section in the 
table of chapters at the beginning of chapter 1611 of title 10, United 
States Code, is amended to read as follows:

``16401. Marine Corps Platoon Leaders Class: college tuition assistance 
           program.''.

SEC. 534. REVIEW OF ALLOCATION OF JUNIOR RESERVE OFFICERS TRAINING CORPS 
            UNITS AMONG THE SERVICES.

    (a) Reallocation of JROTC Units.--Not later than March 31, 2001, the 
Secretary of Defense shall--
            (1) review the allocation among the military departments of 
        the statutory maximum number of Junior Reserve Officers' 
        Training Corps (JROTC) units; and
            (2) redistribute the allocation of those units planned (as 
        of the date of the enactment of this Act) for fiscal years 2001 
        through 2006 so as to increase the number of units for a 
        military department that proposes to more quickly eliminate the 
        current waiting list for such units and to commit the necessary 
        resources for that purpose.

    (b) Proposal for Increase in Statutory Maximum.--If, based on the 
review under subsection (a) and the redistribution of the allocation of 
JROTC units under that subsection, the Secretary determines that an 
increase in the statutory maximum number of such units is warranted, the 
Secretary shall include a proposal for such an increase in the budget 
proposal of the Department of Defense for fiscal year 2002.

SEC. 535. AUTHORITY FOR NAVAL POSTGRADUATE SCHOOL TO ENROLL CERTAIN 
            DEFENSE INDUSTRY CIVILIANS IN SPECIFIED PROGRAMS RELATING TO 
            DEFENSE PRODUCT DEVELOPMENT.

    (a) In General.--(1) Chapter 605 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 7049. Defense industry civilians: admission to defense product 
                        development program

    ``(a) Authority for Admission.--The Secretary of the Navy may permit 
eligible defense industry employees to receive instruction at the Naval 
Postgraduate School in accordance with this section. Any such defense 
industry employee may only be enrolled in, and may only be provided 
instruction in, a program leading to a master's degree in a curriculum 
related to defense product development. No more than 10 such defense 
industry employees may be enrolled at any one time. Upon successful 
completion of the course of instruction in which enrolled, any such 
defense industry employee may be awarded an appropriate degree under 
section 7048 of this title.
    ``(b) Eligible Defense Industry Employees.--For purposes of this 
section, an eligible defense industry employee is an individual employed 
by a private firm that is engaged in providing to the Department of 
Defense significant and substantial defense-related systems, products, 
or services. A defense industry employee admitted for instruction at the 
school remains eligible for such instruction only so long as that person 
remains employed by the same firm.

[[Page 114 STAT. 1654A-113]]

    ``(c) Annual Certification by the Secretary of the Navy.--Defense 
industry employees may receive instruction at the school during any 
academic year only if, before the start of that academic year, the 
Secretary of the Navy determines, and certifies to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives, that providing instruction to defense industry 
employees under this section during that year--
            ``(1) will further the military mission of the school;
            ``(2) will enhance the ability of the Department of Defense 
        and defense-oriented private sector contractors engaged in the 
        design and development of defense systems to reduce the product 
        and project lead times required to bring such systems to initial 
        operational capability; and
            ``(3) will be done on a space-available basis and not 
        require an increase in the size of the faculty of the school, an 
        increase in the course offerings of the school, or an increase 
        in the laboratory facilities or other infrastructure of the 
        school.

    ``(d) Program Requirements.--The Secretary of the Navy shall ensure 
that--
            ``(1) the curriculum for the defense product development 
        program in which defense industry employees may be enrolled 
        under this section is not readily available through other 
        schools and concentrates on defense product development 
        functions that are conducted by military organizations and 
        defense contractors working in close cooperation; and
            ``(2) the course offerings at the school continue to be 
        determined solely by the needs of the Department of Defense.

    ``(e) Tuition.--The Superintendent of the school shall charge 
tuition for students enrolled under this section at a rate not less than 
the rate charged for employees of the United States outside the 
Department of the Navy.
    ``(f ) Standards of Conduct.--While receiving instruction at the 
school, students enrolled under this section, to the extent practicable, 
are subject to the same regulations governing academic performance, 
attendance, norms of behavior, and enrollment as apply to Government 
civilian employees receiving instruction at the school.
    ``(g) Use of Funds.--Amounts received by the school for instruction 
of students enrolled under this section shall be retained by the school 
to defray the costs of such instruction. The source, and the 
disposition, of such funds shall be specifically identified in records 
of the school.''.

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

``7049. Defense industry civilians: admission to defense product 
           development program.''.

    (b) Program Evaluation and Report.--(1) Before the start of the 
fourth year of instruction, but no earlier than the start of the third 
year of instruction, of defense industry employees at the Naval 
Postgraduate School under section 7049 of title 10, United States Code, 
as added by subsection (a), the Secretary of the Navy shall conduct an 
evaluation of the admission of such students under that section. The 
evaluation shall include the following:

[[Page 114 STAT. 1654A-114]]

            (A) An assessment of whether the authority for instruction 
        of nongovernment civilians at the school has resulted in a 
        discernible benefit for the Government.
            (B) Determination of whether the receipt and disposition of 
        funds received by the school as tuition for instruction of such 
        civilians at the school have been properly identified in records 
        of the school.
            (C) A summary of the disposition and uses made of those 
        funds.
            (D) An assessment of whether instruction of such civilians 
        at the school is in the best interests of the Government.

    (2) Not later than 30 days after completing the evaluation referred 
to in paragraph (1), the Secretary of the Navy shall submit to the 
Secretary of Defense a report on the program under such section. The 
report shall include--
            (A) the results of the evaluation under paragraph (1);
            (B) the Secretary's conclusions and recommendation with 
        respect to continuing to allow nongovernment civilians to 
        receive instruction at the Naval Postgraduate School as part of 
        a program related to defense product development; and
            (C) any proposals for legislative changes recommended by the 
        Secretary.

    (3) Not later than 60 days after receiving the report of the 
Secretary of the Navy under paragraph (2), the Secretary of Defense 
shall submit the report, together with any comments 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.

           Subtitle D--Decorations, Awards, and Commendations

SEC. 541. LIMITATION ON AWARD OF BRONZE STAR TO MEMBERS IN RECEIPT OF 
            IMMINENT DANGER PAY.

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

``Sec. 1133. Bronze Star: limitation to members receiving imminent 
                        danger pay

    ``The decoration known as the `Bronze Star' may only be awarded to a 
member of the armed forces who is in receipt of special pay under 
section 310 of title 37 at the time of the events for which the 
decoration is to be awarded or who receives such pay as a result of 
those events.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1133. Bronze star: limitation to members receiving imminent danger 
           pay.''.

SEC. 542. CONSIDERATION OF PROPOSALS FOR POSTHUMOUS OR HONORARY 
            PROMOTIONS OR APPOINTMENTS OF MEMBERS OR FORMER MEMBERS OF 
            THE ARMED FORCES AND OTHER QUALIFIED PERSONS.

    (a) In General.--Chapter 80 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 114 STAT. 1654A-115]]

``Sec. 1563. Consideration of proposals for posthumous and honorary 
                        promotions and appointments: procedures for 
                        review and recommendation

    ``(a) Review by Secretary Concerned.--Upon request of a Member of 
Congress, the Secretary concerned shall review a proposal for the 
posthumous or honorary promotion or appointment of a member or former 
member of the armed forces, or any other person considered qualified, 
that is not otherwise authorized by law. Based upon such review, the 
Secretary shall make a determination as to the merits of approving the 
posthumous or honorary promotion or appointment and the other 
determinations necessary to comply with subsection (b).
    ``(b) Notice of Results of Review.--Upon making a determination 
under subsection (a) as to the merits of approving the posthumous or 
honorary promotion or appointment, the Secretary concerned shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives and to the requesting 
Member of Congress notice in writing of one of the following:
            ``(1) The posthumous or honorary promotion or appointment 
        does not warrant approval on the merits.
            ``(2) The posthumous or honorary promotion or appointment 
        warrants approval and authorization by law for the promotion or 
        appointment is recommended.
            ``(3) The posthumous or honorary promotion or appointment 
        warrants approval on the merits and has been recommended to the 
        President as an exception to policy.
            ``(4) The posthumous or honorary promotion or appointment 
        warrants approval on the merits and authorization by law for the 
        promotion or appointment is required but is not recommended.

A notice under paragraph (1) or (4) shall be accompanied by a statement 
of the reasons for the decision of the Secretary.
    ``(c) Definition.--In this section, the term `Member of Congress' 
means--
            ``(1) a Senator; or
            ``(2) a Representative in, or a Delegate or Resident 
        Commissioner to, Congress.''.

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

``1563. Consideration of proposals for posthumous and honorary 
           promotions and appointments: procedures for review and 
           recommendation.''.

SEC. 543. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS TO 
            CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of 
decorations described in this section, the award of each such decoration 
having been determined by the Secretary concerned to be warranted in 
accordance with section 1130 of title 10, United States Code.
    (b) Silver Star.--Subsection (a) applies to the award of the Silver 
Star to Louis Rickler, of Rochester, New York, for gallantry in action 
from August 18 to November 18, 1918, while serving as a member of the 
Army.

[[Page 114 STAT. 1654A-116]]

    (c) Distinguished Flying Cross.--Subsection (a) applies to the award 
of the Distinguished Flying Cross for service during World War II or 
Korea (including multiple awards to the same individual) in the case of 
each individual concerning whom the Secretary of the Navy (or an officer 
of the Navy acting on behalf of the Secretary) submitted to the 
Committee on Armed Services of the House of Representatives and the 
Committee on Armed Services of the Senate, during the period beginning 
on October 5, 1999, and ending on the day before the date of the 
enactment of this Act, a notice as provided in section 1130(b) of title 
10, United States Code, that the award of the Distinguished Flying Cross 
to that individual is warranted and that a waiver of time restrictions 
prescribed by law for recommendation for such award is recommended.

SEC. 544. ADDITION OF CERTAIN INFORMATION TO MARKERS ON GRAVES 
            CONTAINING REMAINS OF CERTAIN UNKNOWNS FROM THE U.S.S. 
            ARIZONA WHO DIED IN THE JAPANESE ATTACK ON PEARL HARBOR ON 
            DECEMBER 7, 1941.

    (a) Information To Be Provided Secretary of Veterans Affairs.--The 
Secretary of the Army shall provide to the Secretary of Veterans Affairs 
certain information, as specified in subsection (b), pertaining to the 
remains of certain unknown persons that are interred in the National 
Memorial Cemetery of the Pacific, Honolulu, Hawaii. The Secretary of 
Veterans Affairs shall add to the inscriptions on the markers on the 
graves containing those remains the information provided.
    (b) Information To Be Added.--The information to be added to grave 
markers under subsection (a)--
            (1) shall be determined by the Secretary of the Army, based 
        on a review of the information that, as of the date of the 
        enactment of this Act, has been authenticated by the director of 
        the Naval Historical Center, Washington, D.C., pertaining to the 
        interment of remains of certain unknown casualties from the 
        U.S.S. ARIZONA who died as a result of the Japanese attack on 
        Pearl Harbor on December 7, 1941; and
            (2) shall, at a minimum, indicate that the interred remains 
        are from the U.S.S. ARIZONA.

    (c) Limitation of Scope of Section.--This section does not impose 
any requirement on the Secretary of the Army to undertake a review of 
any information pertaining to the interred remains of any unknown person 
other than as provided in subsection (b).

SEC. 545. SENSE OF CONGRESS ON THE COURT-MARTIAL CONVICTION OF CAPTAIN 
            CHARLES BUTLER McVAY, COMMANDER OF THE U.S.S. INDIANAPOLIS, 
            AND ON THE COURAGEOUS SERVICE OF THE CREW OF THAT VESSEL.

    (a) Findings.--Congress makes the following findings:
            (1) Shortly after midnight on the morning of July 30, 1945, 
        during the closing days of World War II, the United States Navy 
        heavy cruiser U.S.S. Indianapolis (CA-35) was torpedoed and sunk 
        by the Japanese submarine I-58 in what became the worst sea 
        disaster in the history of the United States Navy.
            (2) Although approximately 900 of the ship's crew of 1,196 
        survived the actual sinking, only 316 of those courageous 
        sailors survived when rescued after four and a half days adrift 
        in

[[Page 114 STAT. 1654A-117]]

        the open sea, the remainder having perishing from battle wounds, 
        drowning, predatory shark attacks, exposure to the elements, and 
        lack of food and potable water.
            (3) Rescue for the remaining 316 sailors came only when they 
        were spotted by chance by Navy Lieutenant Wilbur C. Gwinn while 
        flying a routine naval air patrol mission.
            (4) After the end of World War II, the commanding officer of 
        the U.S.S. Indianapolis, Captain Charles Butler McVay, III, who 
        was rescued with the other survivors, was court-martialed for 
        ``suffering a vessel to be hazarded through negligence'' by 
        failing to zigzag (a naval tactic employed to help evade 
        submarine attacks) and was convicted even though--
                    (A) the choice to zigzag was left to Captain McVay's 
                discretion in his orders; and
                    (B) Motchisura Hashimoto, the commander of the 
                Japanese submarine that sank the U.S.S. Indianapolis, 
                and Glynn R. Donaho, a United States Navy submarine 
                commander highly decorated for his service during World 
                War II, both testified at Captain McVay's court-martial 
                trial that the Japanese submarine could have sunk the 
                U.S.S. Indianapolis whether or not it had been 
                zigzagging, an assertion that has since been reaffirmed 
                in a letter to the Chairman of the Committee on Armed 
                Services of the Senate dated November 24, 1999.
            (5) Although not argued by Captain McVay's defense counsel 
        in the court-martial trial, poor visibility on the night of the 
        sinking (as attested in surviving crew members' handwritten 
        accounts recently discovered at the National Archives) justified 
        Captain McVay's choice not to zigzag as that choice was 
        consistent with the applicable Navy directives in force in 1945, 
        which stated that, ``During thick weather and at night, except 
        on very clear nights or during bright moonlight, vessels 
        normally cease zig-zagging.''.
            (6) Before the U.S.S. Indianapolis sailed from Guam on what 
        became her final voyage, Naval officials failed to provide 
        Captain McVay with available support that was critical to the 
        safety of the U.S.S. Indianapolis and her crew by--
                    (A) disapproving a request made by Captain McVay for 
                a destroyer escort for the U.S.S. Indianapolis across 
                the Philippine Sea as being ``not necessary'';
                    (B) not informing Captain McVay that naval 
                intelligence sources, through signal intelligence (the 
                Japanese code having been broken earlier in World War 
                II), had become aware that the Japanese submarine I-58 
                was operating in the area of the U.S.S. Indianapolis' 
                course (as disclosed in evidence presented in a hearing 
                of the Committee on Armed Services of the Senate 
                conducted September 14, 1999); and
                    (C) not informing Captain McVay of the sinking of 
                the destroyer escort U.S.S. Underhill by a Japanese 
                submarine within range of the course of the U.S.S. 
                Indianapolis four days before the U.S.S. Indianapolis 
                departed Guam for the Philippine Islands.
            (7) Captain McVay's court-martial initially was opposed by 
        his immediate command superiors, Fleet Admiral Chester Nimitz 
        (CINCPAC) and Vice Admiral Raymond Spruance of the 5th fleet, 
        for whom the U.S.S. Indianapolis had served

[[Page 114 STAT. 1654A-118]]

        as flagship, but, despite their recommendations, Secretary of 
        the Navy James Forrestal ordered the court-martial, largely on 
        the basis of the recommendation of Fleet Admiral Ernest King, 
        Chief of Naval Operations.
            (8) There is no explanation on the public record for the 
        overruling by Secretary Forrestal of the recommendations made by 
        Admirals Nimitz and Spruance.
            (9) Captain McVay was the only commander of a United States 
        Navy vessel lost in combat to enemy action during World War II 
        who was subjected to a court-martial trial for such a loss, even 
        though several hundred United States Navy ships were lost in 
        combat to enemy action during World War II.
            (10) The survivors of the U.S.S. Indianapolis overwhelmingly 
        conclude that Captain McVay was not at fault in the loss of the 
        U.S.S. Indianapolis and have dedicated their lives to 
        vindicating their Captain McVay.
            (11) Although promoted to the grade of rear admiral in 
        accordance with then-applicable law upon retirement from the 
        Navy in 1949, Captain McVay never recovered from the stigma of 
        his post-war court-martial and in 1968, tragically, took his own 
        life.
            (12) Charles Butler McVay, III--
                    (A) was a graduate of the United States Naval 
                Academy;
                    (B) was an exemplary career naval officer with an 
                outstanding record (including participation in the 
                amphibious invasions of North Africa, the assault on Iwo 
                Jima, and the assault on Okinawa where the U.S.S. 
                Indianapolis under his command survived a fierce 
                kamikaze attack);
                    (C) was a recipient of the Silver Star earned for 
                courage under fire during the Solomon Islands campaign; 
                and
                    (D) with the crew of the U.S.S. Indianapolis, had so 
                thoroughly demonstrated proficiency in naval warfare 
                that the Navy entrusted him and the crew of the U.S.S. 
                Indianapolis with transporting to the Pacific theater 
                components necessary for assembling the atomic bombs 
                that were exploded over Hiroshima and Nagasaki to end 
                the war with Japan (delivery of such components to the 
                island of Tinian having been accomplished on July 25, 
                1945).

    (b) Sense of Congress Concerning Charles Butler McVay, III.--With 
respect to the sinking of the U.S.S. Indianapolis (CA-35) on July 30, 
1945, and the subsequent court-martial conviction of the ship's 
commanding officer, Captain Charles Butler McVay, III, arising from that 
sinking, it is the sense of Congress, based on the review of evidence by 
the Senate and the House of Representatives--
            (1) that, in light of the remission by the Secretary of the 
        Navy of the sentence of the court-martial and the restoration of 
        Captain McVay to active duty by the Chief of Naval Operations, 
        Fleet Admiral Chester Nimitz, the American people should now 
        recognize Captain McVay's lack of culpability for the tragic 
        loss of the U.S.S. Indianapolis and the lives of the men who 
        died as a result of the sinking of that vessel; and
            (2) that, in light of the fact that certain exculpatory 
        information was not available to the court-martial board and 
        that Captain McVay's conviction resulted therefrom, Captain

[[Page 114 STAT. 1654A-119]]

        McVay's military record should now reflect that he is exonerated 
        for the loss of the U.S.S. Indianapolis and so many of her crew.

    (c) Unit Citation for Final Crew of U.S.S. Indianapolis.--The 
Secretary of the Navy should award a Navy Unit Commendation to the 
U.S.S. Indianapolis (CA-35) and her final crew.

SEC. 546. POSTHUMOUS ADVANCEMENT ON RETIRED LIST OF REAR ADMIRAL HUSBAND 
            E. KIMMEL AND MAJOR GENERAL WALTER C. SHORT, SENIOR OFFICERS 
            IN COMMAND IN HAWAII ON DECEMBER 7, 1941.

    (a) Findings.--Congress makes the following findings:
            (1) The late Rear Admiral Husband E. Kimmel, while serving 
        in the temporary grade of admiral, was the Commander in Chief of 
        the United States Fleet and the Commander in Chief, United 
        States Pacific Fleet, at the time of the Japanese attack on 
        Pearl Harbor, Hawaii, on December 7, 1941, with an excellent and 
        unassailable record throughout his career in the United States 
        Navy before that date.
            (2) The late Major General Walter C. Short, while serving in 
        the temporary grade of lieutenant general, was the Commander of 
        the United States Army Hawaiian Department, at the time of the 
        Japanese attack on Pearl Harbor, Hawaii, on December 7, 1941, 
        with an excellent and unassailable record throughout his career 
        in the United States Army before that date.
            (3) Numerous investigations following the attack on Pearl 
        Harbor have documented that Admiral Kimmel and Lieutenant 
        General Short were not provided necessary and critical 
        intelligence that was available, that foretold of war with 
        Japan, that warned of imminent attack, and that would have 
        alerted them to prepare for the attack, including such essential 
        communiques as the Japanese Pearl Harbor Bomb Plot message of 
        September 24, 1941, and the message sent from the Imperial 
        Japanese Foreign Ministry to the Japanese Ambassador in the 
        United States from December 6 to 7, 1941, known as the Fourteen-
        Part Message.
            (4) On December 16, 1941, Admiral Kimmel and Lieutenant 
        General Short were relieved of their commands and returned to 
        their permanent grades of rear admiral and major general, 
        respectively.
            (5) Admiral William Harrison Standley, who served as a 
        member of the investigating commission known as the Roberts 
        Commission that accused Admiral Kimmel and Lieutenant General 
        Short of ``dereliction of duty'' only six weeks after the attack 
        on Pearl Harbor, later disavowed the report, maintaining that 
        ``these two officers were martyred'' and ``if they had been 
        brought to trial, both would have been cleared of the charge''.
            (6) On October 19, 1944, a Naval Court of Inquiry--
                    (A) exonerated Admiral Kimmel on the grounds that 
                his military decisions and the disposition of his forces 
                at the time of the December 7, 1941, attack on Pearl 
                Harbor were proper ``by virtue of the information that 
                Admiral Kimmel had at hand which indicated neither the 
                probability nor the imminence of an air attack on Pearl 
                Harbor'';

[[Page 114 STAT. 1654A-120]]

                    (B) criticized the higher command for not sharing 
                with Admiral Kimmel ``during the very critical period of 
                November 26 to December 7, 1941, important information . 
                . . regarding the Japanese situation''; and
                    (C) concluded that the Japanese attack and its 
                outcome was attributable to no serious fault on the part 
                of anyone in the naval service.
            (7) On June 15, 1944, an investigation conducted by Admiral 
        T. C. Hart at the direction of the Secretary of the Navy 
        produced evidence, subsequently confirmed, that essential 
        intelligence concerning Japanese intentions and war plans was 
        available in Washington but was not shared with Admiral Kimmel.
            (8) On October 20, 1944, the Army Pearl Harbor Board of 
        Investigation determined that--
                    (A) Lieutenant General Short had not been kept 
                ``fully advised of the growing tenseness of the Japanese 
                situation which indicated an increasing necessity for 
                better preparation for war'';
                    (B) detailed information and intelligence about 
                Japanese intentions and war plans were available in 
                ``abundance'' but were not shared with the Lieutenant 
                General Short's Hawaii command; and
                    (C) Lieutenant General Short was not provided ``on 
                the evening of December 6th and the early morning of 
                December 7th, the critical information indicating an 
                almost immediate break with Japan, though there was 
                ample time to have accomplished this''.
            (9) The reports by both the Naval Court of Inquiry and the 
        Army Pearl Harbor Board of Investigation were kept secret, and 
        Rear Admiral Kimmel and Major General Short were denied their 
        requests to defend themselves through trial by court-martial.
            (10) The joint committee of Congress that was established to 
        investigate the conduct of Admiral Kimmel and Lieutenant General 
        Short completed, on May 31, 1946, a 1,075-page report which 
        included the conclusions of the committee that the two officers 
        had not been guilty of dereliction of duty.
            (11) On April 27, 1954, the Chief of Naval Personnel, 
        Admiral J. L. Holloway, Jr., recommended that Rear Admiral 
        Kimmel be advanced in rank in accordance with the provisions of 
        the Officer Personnel Act of 1947.
            (12) On November 13, 1991, a majority of the members of the 
        Board for the Correction of Military Records of the Department 
        of the Army found that Major General Short ``was unjustly held 
        responsible for the Pearl Harbor disaster'' and that ``it would 
        be equitable and just'' to advance him to the rank of lieutenant 
        general on the retired list.
            (13) In October 1994, the Chief of Naval Operations, Admiral 
        Carlisle Trost, withdrew his 1988 recommendation against the 
        advancement of Rear Admiral Kimmel and recommended that his case 
        be reopened.
            (14) Although the Dorn Report, a report on the results of a 
        Department of Defense study that was issued on December 15, 
        1995, did not provide support for an advancement of Rear Admiral 
        Kimmel or Major General Short in grade, it did set forth as a 
        conclusion of the study that ``responsibility for the

[[Page 114 STAT. 1654A-121]]

        Pearl Harbor disaster should not fall solely on the shoulders of 
        Admiral Kimmel and Lieutenant General Short, it should be 
        broadly shared''.
            (15) The Dorn Report found--
                    (A) that ``Army and Navy officials in Washington 
                were privy to intercepted Japanese diplomatic 
                communications . . . which provided crucial confirmation 
                of the imminence of war'';
                    (B) that ``the evidence of the handling of these 
                messages in Washington reveals some ineptitude, some 
                unwarranted assumptions and misestimations, limited 
                coordination, ambiguous language, and lack of 
                clarification and followup at higher levels''; and
                    (C) that ``together, these characteristics resulted 
                in failure . . . to appreciate fully and to convey to 
                the commanders in Hawaii the sense of focus and urgency 
                that these intercepts should have engendered''.
            (16) On July 21, 1997, Vice Admiral David C. Richardson 
        (United States Navy, retired) responded to the Dorn Report with 
        his own study which confirmed findings of the Naval Court of 
        Inquiry and the Army Pearl Harbor Board of Investigation and 
        established, among other facts, that the war effort in 1941 was 
        undermined by a restrictive intelligence distribution policy, 
        and the degree to which the commanders of the United States 
        forces in Hawaii were not alerted about the impending attack on 
        Hawaii was directly attributable to the withholding of 
        intelligence from Admiral Kimmel and Lieutenant General Short.
            (17) The Officer Personnel Act of 1947, in establishing a 
        promotion system for the Navy and the Army, provided a legal 
        basis for the President to honor any officer of the Armed Forces 
        of the United States who served his country as a senior 
        commander during World War II with a placement of that officer, 
        with the advice and consent of the Senate, on the retired list 
        with the highest grade held while on the active duty list.
            (18) Rear Admiral Kimmel and Major General Short are the 
        only two officers eligible for advancement under the Officer 
        Personnel Act of 1947 as senior World War II commanders who were 
        excluded from the list of retired officers presented for 
        advancement on the retired lists to their highest wartime grades 
        under that Act.
            (19) This singular exclusion of those two officers from 
        advancement on the retired list serves only to perpetuate the 
        myth that the senior commanders in Hawaii were derelict in their 
        duty and responsible for the success of the attack on Pearl 
        Harbor, a distinct and unacceptable expression of dishonor 
        toward two of the finest officers who have served in the Armed 
        Forces of the United States.
            (20) Major General Walter Short died on September 23, 1949, 
        and Rear Admiral Husband Kimmel died on May 14, 1968, without 
        the honor of having been returned to their wartime grades as 
        were their fellow commanders of World War II.
            (21) The Veterans of Foreign Wars, the Pearl Harbor 
        Survivors Association, the Admiral Nimitz Foundation, the Naval 
        Academy Alumni Association, the Retired Officers Association,

[[Page 114 STAT. 1654A-122]]

        and the Pearl Harbor Commemorative Committee, and other 
        associations and numerous retired military officers have called 
        for the rehabilitation of the reputations and honor of Admiral 
        Kimmel and Lieutenant General Short through their posthumous 
        advancement on the retired lists to their highest wartime 
        grades.

    (b) Advancement of Rear Admiral Kimmel and Major General Short on 
Retired Lists.--(1) The President is requested--
            (A) to advance the late Rear Admiral Husband E. Kimmel, 
        United States Navy (retired), to the grade of admiral on the 
        retired list of the Navy; and
            (B) to advance the late Major General Walter C. Short, 
        United States Army (retired), to the grade of lieutenant general 
        on the retired list of the Army.

    (2) Any advancement in grade on a retired list requested under 
paragraph (1) shall not increase or change the compensation or benefits 
from the United States to which any person is now or may in the future 
be entitled based upon the military service of the officer advanced.
    (c) Sense of Congress Regarding the Professional Performance of 
Admiral Kimmel and Lieutenant General Short.--It is the sense of 
Congress--
            (1) that the late Rear Admiral Husband E. Kimmel performed 
        his duties as Commander in Chief, United States Pacific Fleet, 
        competently and professionally and, therefore, that the losses 
        incurred by the United States in the attacks on the naval base 
        at Pearl Harbor, Hawaii, and other targets on the island of 
        Oahu, Hawaii, on December 7, 1941, were not a result of 
        dereliction in the performance of those duties by then Admiral 
        Kimmel; and
            (2) that the late Major General Walter C. Short performed 
        his duties as Commanding General, Hawaiian Department, 
        competently and professionally and, therefore, that the losses 
        incurred by the United States in the attacks on Hickam Army Air 
        Field and Schofield Barracks, Hawaii, and other targets on the 
        island of Oahu, Hawaii, on December 7, 1941, were not a result 
        of dereliction in the performance of those duties by then 
        Lieutenant General Short.

SEC. 547. COMMENDATION OF CITIZENS OF REMY, FRANCE, FOR WORLD WAR II 
            ACTIONS.

    (a) Findings.--The Congress finds the following:
            (1) On August 2, 1944, a squadron of P-51s from the United 
        States 364th Fighter Group strafed a German munitions train in 
        Remy, France.
            (2) The resulting explosion killed Lieutenant Houston Braly, 
        one of the attacking pilots, and destroyed much of the village 
        of Remy, including seven stained glass windows in the 13th 
        century church.
            (3) Despite threats of reprisals from the occupying German 
        authorities, the citizens of Remy recovered Lieutenant Braly's 
        body from the wreckage, buried his body with dignity and honor 
        in the church's cemetery, and decorated the grave site daily 
        with fresh flowers.
            (4) On Armistice Day, 1995, the village of Remy renamed the 
        crossroads near the site of Lieutenant Braly's death in his 
        honor.

[[Page 114 STAT. 1654A-123]]

            (5) The surviving members of the 364th Fighter Group desire 
        to express their gratitude to the brave citizens of Remy.
            (6) To express their gratitude, the surviving members of the 
        364th Fighter Group have organized a nonprofit corporation to 
        raise funds, through its project ``Windows for Remy'', to 
        restore the church's stained glass windows.

    (b) Commendation and Recognition.--The Congress commends the bravery 
and honor of the citizens of Remy, France, for their actions with 
respect to the American fighter pilot Lieutenant Houston Braly during 
and after August 1944, and recognizes the efforts of the surviving 
members of the United States 364th Fighter Group to raise funds to 
restore the stained glass windows of Remy's 13th century church.

SEC. 548. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO WILLIAM H. 
            PITSENBARGER FOR VALOR DURING THE VIETNAM WAR.

    (a) Waiver of Time Limitations.--Notwithstanding the period of 
limitations specified in section 8744 of title 10, United States Code, 
or any other time limitation with respect to the awarding of certain 
medals to persons who served in the Air Force, the President may award 
the Medal of Honor under section 8741 of that title, posthumously, to 
William H. Pitsenbarger of Piqua, Ohio, for the acts of valor referred 
to in subsection (b).
    (b) Action Defined.--The acts of valor referred to in subsection (a) 
are the actions of William H. Pitsenbarger on April 11, 1966, as an Air 
Force pararescue crew member, serving in the grade of Airman First Class 
at Cam My, Republic of Vietnam, with Detachment 6, 38th Aerospace Rescue 
and Recovery Helicopter Squadron, in support of the combat mission known 
as ``Operations Abilene''.

        Subtitle E--Military Justice and Legal Assistance Matters

SEC. 551. RECOGNITION BY STATES OF MILITARY TESTAMENTARY INSTRUMENTS.

    (a) In General.--Chapter 53 of title 10, United States Code, is 
amended by inserting after section 1044c the following new section:

``Sec. 1044d. Military testamentary instruments: requirement for 
                        recognition by States

    ``(a) Testamentary Instruments To Be Given Legal Effect.--A military 
testamentary instrument--
            ``(1) is exempt from any requirement of form, formality, or 
        recording before probate that is provided for testamentary 
        instruments under the laws of a State; and
            ``(2) has the same legal effect as a testamentary instrument 
        prepared and executed in accordance with the laws of the State 
        in which it is presented for probate.

    ``(b) Military Testamentary Instruments.--For purposes of this 
section, a military testamentary instrument is an instrument that is 
prepared with testamentary intent in accordance with regulations 
prescribed under this section and that--

[[Page 114 STAT. 1654A-124]]

            ``(1) is executed in accordance with subsection (c) by (or 
        on behalf of ) a person, as a testator, who is eligible for 
        military legal assistance;
            ``(2) makes a disposition of property of the testator; and
            ``(3) takes effect upon the death of the testator.

    ``(c) Requirements for Execution of Military Testamentary 
Instruments.--An instrument is valid as a military testamentary 
instrument only if--
            ``(1) the instrument is executed by the testator (or, if the 
        testator is unable to execute the instrument personally, the 
        instrument is executed in the presence of, by the direction of, 
        and on behalf of the testator);
            ``(2) the instrument is executed in the presence of a 
        military legal assistance counsel acting as presiding attorney;
            ``(3) the instrument is executed in the presence of at least 
        two disinterested witnesses (in addition to the presiding 
        attorney), each of whom attests to witnessing the testator's 
        execution of the instrument by signing it; and
            ``(4) the instrument is executed in accordance with such 
        additional requirements as may be provided in regulations 
        prescribed under this section.

    ``(d) Self-Proving Military Testamentary Instruments.--(1) If the 
document setting forth a military testamentary instrument meets the 
requirements of paragraph (2), then the signature of a person on the 
document as the testator, an attesting witness, a notary, or the 
presiding attorney, together with a written representation of the 
person's status as such and the person's military grade (if any) or 
other title, is prima facie evidence of the following:
            ``(A) That the signature is genuine.
            ``(B) That the signatory had the represented status and 
        title at the time of the execution of the will.
            ``(C) That the signature was executed in compliance with the 
        procedures required under the regulations prescribed under 
        subsection (f ).

    ``(2) A document setting forth a military testamentary instrument 
meets the requirements of this paragraph if it includes (or has attached 
to it), in a form and content required under the regulations prescribed 
under subsection (f ), each of the following:
            ``(A) A certificate, executed by the testator, that includes 
        the testator's acknowledgment of the testamentary instrument.
            ``(B) An affidavit, executed by each witness signing the 
        testamentary instrument, that attests to the circumstances under 
        which the testamentary instrument was executed.
            ``(C) A notarization, including a certificate of any 
        administration of an oath required under the regulations, that 
        is signed by the notary or other official administering the 
        oath.

    ``(e) Statement To Be Included.--(1) Under regulations prescribed 
under this section, each military testamentary instrument shall contain 
a statement that sets forth the provisions of subsection (a).
    ``(2) Paragraph (1) shall not be construed to make inapplicable the 
provisions of subsection (a) to a testamentary instrument that does not 
include a statement described in that paragraph.

    ``(f ) Regulations.--Regulations for the purposes of this section 
shall be prescribed jointly by the Secretary of Defense and by the 
Secretary of Transportation with respect to the Coast Guard

[[Page 114 STAT. 1654A-125]]

when it is not operating as a service in the Department of the Navy.
    ``(g) Definitions.--In this section:
            ``(1) The term `person eligible for military legal 
        assistance' means a person who is eligible for legal assistance 
        under section 1044 of this title.
            ``(2) The term `military legal assistance counsel' means--
                    ``(A) a judge advocate (as defined in section 
                801(13) of this title); or
                    ``(B) a civilian attorney serving as a legal 
                assistance officer under the provisions of section 1044 
                of this title.
            ``(3) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, and each possession of the United 
        States.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1044c the following new item:

``1044d. Military testamentary instruments: requirement for recognition 
           by States.''.

SEC. 552. POLICY CONCERNING RIGHTS OF INDIVIDUALS WHOSE NAMES HAVE BEEN 
            ENTERED INTO DEPARTMENT OF DEFENSE OFFICIAL CRIMINAL 
            INVESTIGATIVE REPORTS.

    (a) Policy Requirement.--The Secretary of Defense shall establish a 
policy creating a uniform process within the Department of Defense 
that--
            (1) affords any individual who, in connection with the 
        investigation of a reported crime, is designated (by name or by 
        any other identifying information) as a suspect in the case in 
        any official investigative report, or in a central index for 
        potential retrieval and analysis by law enforcement 
        organizations, an opportunity to obtain a review of that 
        designation; and
            (2) requires the expungement of the name and other 
        identifying information of any such individual from such report 
        or index in any case in which it is determined the entry of such 
        identifying information on that individual was made contrary to 
        Department of Defense requirements.

    (b) Effective Date.--The policy required by subsection (a) shall be 
established not later than 120 days after the date of the enactment of 
this Act.

SEC. 553. LIMITATION ON SECRETARIAL AUTHORITY TO GRANT CLEMENCY FOR 
            MILITARY PRISONERS SERVING SENTENCE OF CONFINEMENT FOR LIFE 
            WITHOUT ELIGIBILITY FOR PAROLE.

    (a) Limitation.--Section 874(a) of title 10, United States Code 
(article 74(a) of the Uniform Code of Military Justice), is amended by 
adding at the end the following new sentence: ``However, in the case of 
a sentence of confinement for life without eligibility for parole, after 
the sentence is ordered executed, the authority of the Secretary 
concerned under the preceding sentence (1) may not be delegated, and (2) 
may be exercised only after the service of a period of confinement of 
not less than 20 years.''.
    (b) Effective Date.--The amendment made by subsection (a) shall not 
apply with respect to a sentence of confinement for life

[[Page 114 STAT. 1654A-126]]

without eligibility for parole that is adjudged for an offense committed 
before the date of the enactment of this Act.

SEC. 554. AUTHORITY FOR CIVILIAN SPECIAL AGENTS OF MILITARY DEPARTMENT 
            CRIMINAL INVESTIGATIVE ORGANIZATIONS TO EXECUTE WARRANTS AND 
            MAKE ARRESTS.

    (a) Department of the Army.--(1) Chapter 373 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 4027. Civilian special agents of the Criminal Investigation 
                        Command: authority to execute warrants and make 
                        arrests

    ``(a) Authority.--The Secretary of the Army may authorize any 
Department of the Army civilian employee described in subsection (b) to 
have the same authority to execute and serve warrants and other 
processes issued under the authority of the United States and to make 
arrests without a warrant as may be authorized under section 1585a of 
this title for special agents of the Defense Criminal Investigative 
Service.
    ``(b) Agents To Have Authority.--Subsection (a) applies to any 
employee of the Department of the Army who is a special agent of the 
Army Criminal Investigation Command (or a successor to that command) 
whose duties include conducting, supervising, or coordinating 
investigations of criminal activity in programs and operations of the 
Department of the Army.
    ``(c) Guidelines for Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Secretary of the Army and approved by the Secretary of 
Defense and the Attorney General and any other applicable guidelines 
prescribed by the Secretary of the Army, the Secretary of Defense, or 
the Attorney General.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end following new item:

``4027. Civilian special agents of the Criminal Investigation Command: 
           authority to execute warrants and make arrests.''.

    (b) Department of the Navy.--(1) Chapter 643 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 7480. Special agents of the Naval Criminal Investigative Service: 
                        authority to execute warrants and make arrests

    ``(a) Authority.--The Secretary of the Navy may authorize any 
Department of the Navy civilian employee described in subsection (b) to 
have the same authority to execute and serve warrants and other 
processes issued under the authority of the United States and to make 
arrests without a warrant as may be authorized under section 1585a of 
this title for special agents of the Defense Criminal Investigative 
Service.
    ``(b) Agents To Have Authority.--Subsection (a) applies to any 
employee of the Department of the Navy who is a special agent of the 
Naval Criminal Investigative Service (or any successor to that service) 
whose duties include conducting, supervising, or coordinating 
investigations of criminal activity in programs and operations of the 
Department of the Navy.

[[Page 114 STAT. 1654A-127]]

    ``(c) Guidelines for Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Secretary of the Navy and approved by the Secretary of 
Defense and the Attorney General and any other applicable guidelines 
prescribed by the Secretary of the Navy, the Secretary of Defense, or 
the Attorney General.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``7480. Special agents of the Naval Criminal Investigative Service: 
           authority to execute warrants and make arrests.''.

    (c) Department of the Air Force.--(1) Chapter 873 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 9027. Civilian special agents of the Office of Special 
                        Investigations: authority to execute warrants 
                        and make arrests

    ``(a) Authority.--The Secretary of the Air Force may authorize any 
Department of the Air Force civilian employee described in subsection 
(b) to have the same authority to execute and serve warrants and other 
processes issued under the authority of the United States and to make 
arrests without a warrant as may be authorized under section 1585a of 
this title for special agents of the Defense Criminal Investigative 
Service.
    ``(b) Agents To Have Authority.--Subsection (a) applies to any 
employee of the Department of the Air Force who is a special agent of 
the Air Force Office of Special Investigations (or a successor to that 
office) whose duties include conducting, supervising, or coordinating 
investigations of criminal activity in programs and operations of the 
Department of the Air Force.
    ``(c) Guidelines for Exercise of Authority.--The authority provided 
under subsection (a) shall be exercised in accordance with guidelines 
prescribed by the Secretary of the Air Force and approved by the 
Secretary of Defense and the Attorney General and any other applicable 
guidelines prescribed by the Secretary of the Air Force, the Secretary 
of Defense, or the Attorney General.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``9027. Civilian special agents of the Office of Special Investigations: 
           authority to execute warrants and make arrests.''.

SEC. 555. REQUIREMENT FOR VERBATIM RECORD IN CERTAIN SPECIAL COURT-
            MARTIAL CASES.

    (a) When Required.--Subsection (c)(1)(B) of section 854 of title 10, 
United States Code (article 54 of the Uniform Code of Military Justice), 
is amended by inserting after ``bad-conduct discharge'' the following: 
``, confinement for more than six months, or forfeiture of pay for more 
than six months''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect as of April 1, 2000, and shall apply with respect to charges 
referred on or after that date to trial by special court-martial.

SEC. 556. COMMEMORATION OF THE 50TH ANNIVERSARY OF THE UNIFORM CODE OF 
            MILITARY JUSTICE.

    (a) Findings.--Congress makes the following findings:

[[Page 114 STAT. 1654A-128]]

            (1) The American military justice system predates the United 
        States itself, having had a continuous existence since the 
        enactment of the first American Articles of War by the 
        Continental Congress in 1775.
            (2) Pursuant to article I of the Constitution, which 
        explicitly empowers Congress ``To make Rules for the Government 
        and Regulation of the land and naval Forces'', Congress enacted 
        the Articles of War and an Act to Govern the Navy, which were 
        revised on several occasions between the ratification of the 
        Constitution and the end of World War II.
            (3) Dissatisfaction with the administration of military 
        justice during World War I and World War II (including 
        dissatisfaction arising from separate systems of justice for the 
        Army and for the Navy and Marine Corps) led both to significant 
        statutory reforms in the Articles of War and to the convening of 
        a committee, under Department of Defense auspices, to draft a 
        single code of military justice applicable uniformly to all of 
        the Armed Forces.
            (4) The committee, chaired by Professor Edmund M. Morgan of 
        Harvard Law School, made recommendations that formed the basis 
        of bills introduced in Congress to establish such a uniform code 
        of military justice.
            (5) After lengthy hearings and debate on the congressional 
        proposals, the Uniform Code of Military Justice was enacted into 
        law on May 5, 1950, when President Harry S Truman signed the 
        legislation.
            (6) President Truman then issued a revised Manual for 
        Courts-Martial implementing the new code, and the code became 
        effective on May 31, 1951.
            (7) One of the greatest innovations of the Uniform Code of 
        Military Justice (now codified as chapter 47 of title 10, United 
        States Code) was the establishment of a civilian court of 
        appeals within the military justice system. That court, the 
        United States Court of Military Appeals (now the United States 
        Court of Appeals for the Armed Forces), held its first session 
        on July 25, 1951.
            (8) Congress enacted major revisions of the Uniform Code of 
        Military Justice in 1968 and 1983 and, in addition, has amended 
        the code from time to time over the years as practice under the 
        code indicated a need for updating the substance or procedure of 
        the law of military justice.
            (9) The evolution of the system of military justice under 
        the Uniform Code of Military Justice may be traced in the 
        decisions of the Courts of Criminal Appeals of each of the Armed 
        Forces and the decisions of the United States Court of Appeals 
        for the Armed Forces. These courts have produced a unique body 
        of jurisprudence upon which commanders and judge advocates rely 
        in the performance of their duties.
            (10) It is altogether fitting that the 50th anniversary of 
        the Uniform Code of Military Justice be duly commemorated.

    (b) Commemoration.--The Congress--
            (1) requests the President to issue a proclamation 
        commemorating the 50th anniversary of the Uniform Code of 
        Military Justice; and
            (2) calls upon the Department of Defense, the Armed Forces, 
        and the United States Court of Appeals for the Armed Forces and 
        interested organizations and members of the bar

[[Page 114 STAT. 1654A-129]]

        and the public to commemorate the occasion of that anniversary 
        with ceremonies and activities befitting its importance.

               Subtitle F--Matters Relating to Recruiting

SEC. 561. ARMY RECRUITING PILOT PROGRAMS.

    (a) Requirement for Programs.--The Secretary of the Army shall carry 
out pilot programs to test various recruiting approaches under this 
section for the following purposes:
            (1) To assess the effectiveness of the recruiting approaches 
        for creating enhanced opportunities for recruiters to make 
        direct, personal contact with potential recruits.
            (2) To improve the overall effectiveness and efficiency of 
        Army recruiting activities.

    (b) Outreach Through Motor Sports.--(1) One of the pilot programs 
shall be a pilot program of public outreach that associates the Army 
with motor sports competitions to achieve the objectives set forth in 
paragraph (2).
    (2) The events and activities undertaken under the pilot program 
shall be designed to provide opportunities for Army recruiters to make 
direct, personal contact with high school students to achieve the 
following objectives:
            (A) To increase enlistments by students graduating from high 
        school.
            (B) To reduce attrition in the Delayed Entry Program of the 
        Army by sustaining the personal commitment of students who have 
        elected delayed entry into the Army under the program.

    (3) Under the pilot program, the Secretary of the Army shall provide 
for the following:
            (A) For Army recruiters or other Army personnel--
                    (i) to organize Army sponsored career day events in 
                association with national motor sports competitions; and
                    (ii) to arrange for or encourage attendance at the 
                competitions by high school students, teachers, guidance 
                counselors, and administrators of high schools located 
                near the competitions.
            (B) For Army recruiters and other soldiers to attend 
        national motor sports competitions--
                    (i) to display exhibits depicting the contemporary 
                Army and career opportunities in the Army; and
                    (ii) to discuss those opportunities with potential 
                recruits.
            (C) For the Army to sponsor a motor sports racing team as 
        part of an integrated program of recruitment and publicity for 
        the Army.
            (D) For the Army to sponsor motor sports competitions for 
        high school students at which recruiters meet with potential 
        recruits.
            (E) For Army recruiters or other Army personnel to compile 
        in an Internet accessible database the names, addresses, 
        telephone numbers, and electronic mail addresses of persons who 
        are identified as potential recruits through activities under 
        the pilot program.

[[Page 114 STAT. 1654A-130]]

            (F) Any other activities associated with motor sports 
        competition that the Secretary determines appropriate for Army 
        recruitment purposes.

    (c) Outreach at Vocational Schools and Community Colleges.--(1) One 
of the pilot programs shall be a pilot program under which Army 
recruiters are assigned, as their primary responsibility, at 
postsecondary vocational institutions and community colleges for the 
purpose of recruiting students graduating from those institutions and 
colleges, recent graduates of those institutions and colleges, and 
students withdrawing from enrollments in those institutions and 
colleges.
    (2) The Secretary of the Army shall select the institutions and 
colleges to be invited to participate in the pilot program.
    (3) The conduct of the pilot program at an institution or college 
shall be subject to an agreement which the Secretary shall enter into 
with the governing body or authorized official of the institution or 
college, as the case may be.
    (4) Under the pilot program, the Secretary shall provide for the 
following:
            (A) For Army recruiters to be placed in postsecondary 
        vocational institutions and community colleges to serve as a 
        resource for guidance counselors and to recruit for the Army.
            (B) For Army recruiters to recruit from among students and 
        graduates described in paragraph (1).
            (C) For the use of telemarketing, direct mail, interactive 
        voice response systems, and Internet website capabilities to 
        assist the recruiters in the postsecondary vocational 
        institutions and community colleges.
            (D) For any other activities that the Secretary determines 
        appropriate for recruitment activities in postsecondary 
        vocational institutions and community colleges.

    (5) In this subsection, the term ``postsecondary vocational 
institution'' has the meaning given the term in section 102(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1002(c)).
    (d) Contract Recruiting Initiatives.--(1) One of the pilot programs 
shall be a program that expands in accordance with this subsection the 
scope of the Army's contract recruiting initiatives that are ongoing as 
of the date of the enactment of this Act. Under the pilot program, the 
Secretary of the Army shall select at least 10 recruiting companies to 
apply the initiatives in efforts to recruit personnel for the Army.
    (2) Under the pilot program, the Secretary shall provide for the 
following:
            (A) For replacement of the Regular Army recruiters by 
        contract recruiters in the 10 recruiting companies selected 
        under paragraph (1).
            (B) For operation of the 10 companies under the same rules 
        and chain of command as the other Army recruiting companies.
            (C) For use of the offices, facilities, and equipment of the 
        10 companies by the contract recruiters.
            (D) For reversion to performance of the recruiting 
        activities by Regular Army soldiers in the 10 companies upon 
        termination of the pilot program.
            (E) For any other uses of contractor personnel for Army 
        recruiting activities that the Secretary determines appropriate.

[[Page 114 STAT. 1654A-131]]

    (e) Duration of Pilot Programs.--The pilot programs required by this 
section shall be carried out during the period beginning on October 1, 
2000, and, subject to subsection (f ), ending on December 31, 2005.
    (f ) Authority To Expand or Extend Pilot Programs.--The Secretary 
may expand the scope of any of the pilot programs (under subsection 
(b)(3)(F), (c)(4)(D), (d)(2)(E), or otherwise) or extend the period for 
any of the pilot programs. Before doing so in the case of a pilot 
program, 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 written notification of the expansion of the 
pilot program (together with the scope of the expansion) or the 
continuation of the pilot program (together with the period of the 
extension), as the case may be.
    (g) Reports.--Not later than February 1, 2006, the Secretary of the 
Army shall submit to the Committees on Armed Services of the Senate and 
the House of Representatives a separate report on each of the pilot 
programs carried out under this section. The report on a pilot program 
shall include the following:
            (1) The Secretary's assessment of the value of the actions 
        taken in the administration of the pilot program for increasing 
        the effectiveness and efficiency of Army recruiting.
            (2) Any recommendations for legislation or other action that 
        the Secretary considers appropriate to increase the 
        effectiveness and efficiency of Army recruiting.

SEC. 562. ENHANCEMENT OF RECRUITMENT MARKET RESEARCH AND ADVERTISING 
            PROGRAMS.

    Section 503(a) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Secretary of Defense shall act on a continuing basis to 
enhance the effectiveness of recruitment programs of the Department of 
Defense (including programs conducted jointly and programs conducted by 
the separate armed forces) through an aggressive program of advertising 
and market research targeted at prospective recruits for the armed 
forces and those who may influence prospective recruits. Subchapter I of 
chapter 35 of title 44 shall not apply to actions taken as part of that 
program.''.

SEC. 563. ACCESS TO SECONDARY SCHOOLS FOR MILITARY RECRUITING PURPOSES.

    (a) Requirement for Access.--Subsection (c) of section 503 of title 
10, United States Code, is amended to read as follows:
    ``(c) Access to Secondary Schools.--(1) Each local educational 
agency shall (except as provided under paragraph (5)) provide to the 
Department of Defense, upon a request made for military recruiting 
purposes, the same access to secondary school students, and to directory 
information concerning such students, as is provided generally to post-
secondary educational institutions or to prospective employers of those 
students.
    ``(2) If a local educational agency denies a request by the 
Department of Defense for recruiting access, the Secretary of Defense, 
in cooperation with the Secretary of the military department concerned, 
shall designate an officer in a grade not below the grade of colonel or, 
in the case of the Navy, captain, or a senior executive of that military 
department to meet with representatives of that local educational agency 
in person, at the offices of that agency,

[[Page 114 STAT. 1654A-132]]

for the purpose of arranging for recruiting access. The designated 
officer or senior executive shall seek to have that meeting within 120 
days of the date of the denial of the request for recruiting access.
    ``(3) If, after a meeting under paragraph (2) with representatives 
of a local educational agency that has denied a request for recruiting 
access or (if the educational agency declines a request for the meeting) 
after the end of such 120-day period, the Secretary of Defense 
determines that the agency continues to deny recruiting access, the 
Secretary shall transmit to the chief executive of the State in which 
the agency is located a notification of the denial of recruiting access 
and a request for assistance in obtaining that access. The notification 
shall be transmitted within 60 days after the date of the determination. 
The Secretary shall provide to the Secretary of Education a copy of such 
notification and any other communication between the Secretary and that 
chief executive with respect to such access.
    ``(4) If a local educational agency continues to deny recruiting 
access one year after the date of the transmittal of a notification 
regarding that agency under paragraph (3), the Secretary--
            ``(A) shall determine whether the agency denies recruiting 
        access to at least two of the armed forces (other than the Coast 
        Guard when it is not operating as a service in the Navy); and
            ``(B) upon making an affirmative determination under 
        subparagraph (A), shall transmit a notification of the denial of 
        recruiting access to--
                    ``(i) the specified congressional committees;
                    ``(ii) the Senators of the State in which the local 
                educational agency is located; and
                    ``(iii) the member of the House of Representatives 
                who represents the district in which the local 
                educational agency is located.

    ``(5) The requirements of this subsection do not apply to--
            ``(A) a local educational agency with respect to access to 
        secondary school students or access to directory information 
        concerning such students for any period during which there is in 
        effect a policy of that agency, established by majority vote of 
        the governing body of the agency, to deny recruiting access to 
        those students or to that directory information, respectively; 
        or
            ``(B) a private secondary school which maintains a religious 
        objection to service in the armed forces and which objection is 
        verifiable through the corporate or other organizational 
        documents or materials of that school.

    ``(6) In this subsection:
            ``(A) The term `local educational agency' means--
                    ``(i) a local educational agency, within the meaning 
                of that term in section 14101(18) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8801(18)); 
                and
                    ``(ii) a private secondary school.
            ``(B) The term `recruiting access' means access requested as 
        described in paragraph (1).
            ``(C) The term `senior executive' has the meaning given that 
        term in section 3132(a)(3) of title 5.

[[Page 114 STAT. 1654A-133]]

            ``(D) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, Guam, the Virgin Islands, American 
        Samoa, the Federated States of Micronesia, the Republic of the 
        Marshall Islands, and the Republic of Palau.
            ``(E) The term `specified congressional committees' means 
        the following:
                    ``(i) The Committee on Armed Services and the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate.
                    ``(ii) The Committee on Armed Services and the 
                Committee on Education and the Workforce of the House of 
                Representatives.
            ``(F) The term `member of the House of Representatives' 
        includes a Delegate or Resident Commissioner to Congress.''.

    (b) Definition of Directory Information.--Such section is further 
amended--
            (1) by striking paragraph (7) of subsection (b); and
            (2) by adding at the end the following new subsection:

    ``(d) Directory Information Defined.--In this section, the term 
`directory information' has the meaning given that term in subsection 
(a)(5)(A) of section 444 of the General Education Provisions Act (20 
U.S.C. 1232g).''.
    (c) Technical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Recruiting 
        Campaigns.--'' after ``(a)''; and
            (2) in subsection (b), by inserting ``Compilation of 
        Directory Information.--'' after ``(b)''.

    (d) Effective Date.--The amendment made by subsection (a) shall take 
effect on July 1, 2002.

SEC. 564. PILOT PROGRAM TO ENHANCE MILITARY RECRUITING BY IMPROVING 
            MILITARY AWARENESS OF SCHOOL COUNSELORS AND EDUCATORS.

    (a) In General.--The Secretary of Defense shall conduct a pilot 
program to determine if cooperation with military recruiters by local 
educational agencies and by institutions of higher education could be 
enhanced by improving the understanding of school counselors and 
educators about military recruiting and military career opportunities. 
The pilot program shall be conducted during a three-year period 
beginning not later than 180 days after the date of the enactment of 
this Act.
    (b) Conduct of Pilot Program Through Participation in Interactive 
Internet Site.--(1) The pilot program shall be conducted by means of 
participation by the Department of Defense in a qualifying interactive 
Internet site.
    (2) For purposes of this section, a qualifying interactive Internet 
site is an Internet site in existence as of the date of the enactment of 
this Act that is designed to provide to employees of local educational 
agencies and institutions of higher education participating in the 
Internet site--
            (A) systems for communicating;
            (B) resources for individual professional development;
            (C) resources to enhance individual on-the-job 
        effectiveness; and
            (D) resources to improve organizational effectiveness.

[[Page 114 STAT. 1654A-134]]

    (3) Participation in an Internet site by the Department of Defense 
for purposes of this section shall include--
            (A) funding;
            (B) assistance; and
            (C) access by other Internet site participants to Department 
        of Defense aptitude testing programs, career development 
        information, and other resources, in addition to information on 
        military recruiting and career opportunities.

    (c) Report.--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 the Secretary's findings 
and conclusions on the pilot program not later than 180 days after the 
end of the three-year program period.

                        Subtitle G--Other Matters

SEC. 571. EXTENSION TO END OF CALENDAR YEAR OF EXPIRATION DATE FOR 
            CERTAIN FORCE DRAWDOWN TRANSITION AUTHORITIES.

    (a) Early Retirement Authority for Active Force Members.--Section 
4403 of the National Defense Authorization Act for Fiscal Year 1993 (10 
U.S.C. 1293 note) is amended--
            (1) in subsection (a), by striking ``through fiscal year 
        1999'' and inserting ``during the active force drawdown 
        period''; and
            (2) in subsection (i), by striking ``October 1, 2001'' and 
        inserting ``December 31, 2001''.

    (b) SSB and VSI.--Sections 1174a(h)(1) and 1175(d)(3) of title 10, 
United States Code, are amended by striking ``September 30, 2001'' and 
inserting ``December 31, 2001''.
    (c) Selective Early Retirement Boards.--Section 638a(a) of such 
title is amended by striking ``September 30, 2001'' and inserting 
``December 31, 2001''.
    (d) Time-in-Grade Requirement for Retention of Grade Upon Voluntary 
Retirement.--Section 1370 of such title is amended by striking 
``September 30, 2001'' in subsections (a)(2)(A) and (d)(5) and inserting 
``December 31, 2001''.
    (e) Minimum Commissioned Service for Voluntary Retirement as an 
Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of such title are 
amended by striking ``September 30, 2001'' and inserting ``December 31, 
2001''.
    (f ) Travel, Transportation, and Storage Benefits.--Sections 
404(c)(1)(C), 404(f )(2)(B)(v), 406(a)(2)(B)(v), and 406(g)(1)(C) of 
title 37, United States Code, and section 503(c)(1) of the National 
Defense Authorization Act for Fiscal Year 1991 (37 U.S.C. 406 note) are 
amended by striking ``September 30, 2001'' and inserting ``December 31, 
2001''.
    (g) Educational Leave for Public and Community Service.--Section 
4463(f ) of the National Defense Authorization Act for Fiscal Year 1993 
(10 U.S.C. 1143a note) is amended by striking ``September 30, 2001'' and 
inserting ``December 31, 2001''.
    (h) Transitional Health Benefits.--Subsections (a)(1), (c)(1), and 
(e) of section 1145 of title 10, United States Code, are amended by 
striking ``September 30, 2001'' and inserting ``December 31, 2001''.

[[Page 114 STAT. 1654A-135]]

    (i) Transitional Commissary and Exchange Benefits.--Section 1146 of 
such title is amended by striking ``September 30, 2001'' both places it 
appears and inserting ``December 31, 2001''.
    ( j) Transitional Use of Military Housing.--Paragraphs (1) and (2) 
of section 1147(a) of such title are amended by striking ``September 30, 
2001'' and inserting ``December 31, 2001''.
    (k) Continued Enrollment of Dependents in Defense Dependents' 
Education System.--Section 1407(c)(1) of the Defense Dependents' 
Education Act of 1978 (20 U.S.C. 926(c)(1)) is amended by striking 
``September 30, 2001'' and inserting ``December 31, 2001''.
    (l) Force Reduction Transition Period Defined for Certain Guard and 
Reserve Benefits.--Section 4411 of the National Defense Authorization 
Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking 
``September 30, 2001'' and inserting ``December 31, 2001''.
    (m) Temporary Special Authority for Force Reduction Period 
Retirements.--Section 4416(b)(1) of the National Defense Authorization 
Act for Fiscal Year 1993 (10 U.S.C. 12681 note) is amended by striking 
``October 1, 2001'' and inserting ``the end of the force reduction 
period''.
    (n) Retired Pay for Non-Regular Service.--(1) Section 12731(f ) of 
title 10, United States Code, is amended by striking ``September 30, 
2001'' and inserting ``December 31, 2001''.
    (2) Section 12731a of such title is amended--
            (A) in subsection (a)(1)(B), by striking ``October 1, 2001'' 
        and inserting ``the end of the period described in subsection 
        (b)''; and
            (B) in subsection (b), by striking ``October 1, 2001'' and 
        inserting ``December 31, 2001''.

    (o) Affiliation With Guard and Reserve Units; Waiver of Certain 
Limitations.--Section 1150(a) of such title is amended by striking 
``September 30, 2001'' and inserting ``December 31, 2001''.
    (p) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of such 
title is amended by striking ``September 30, 2001'' and inserting 
``December 31, 2001''.

SEC. 572. VOLUNTARY SEPARATION INCENTIVE.

    (a) Authority for Termination Upon Entitlement to Retired Pay.--
Section 1175(e)(3) of title 10, United States Code, is amended--
            (1) inserting ``(A)'' after ``(3)''; and
            (2) by adding at the end the following new subparagraph:

    ``(B) If a member is receiving simultaneous voluntary separation 
incentive payments and retired or retainer pay, the member may elect to 
terminate the receipt of voluntary separation incentive payments. Any 
such election is permanent and irrevocable. The rate of monthly 
recoupment from retired or retainer pay of voluntary separation 
incentive payments received after such an election shall be reduced by a 
percentage that is equal to a fraction with a denominator equal to the 
number of months that the voluntary separation incentive payments were 
scheduled to be paid and a numerator equal to the number of months that 
would not be paid as a result of the member's decision to terminate the 
voluntary separation incentive.''.

[[Page 114 STAT. 1654A-136]]

    (b) Effective Date.--Subparagraph (B) of section 1175(e)(3) of title 
10, United States Code, as added by subsection (a), shall apply with 
respect to decisions by members to terminate voluntary separation 
incentive payments under section 1175 of title 10, United States Code, 
to be effective after September 30, 2000.

SEC. 573. CONGRESSIONAL REVIEW PERIOD FOR ASSIGNMENT OF WOMEN TO DUTY ON 
            SUBMARINES AND FOR ANY PROPOSED RECONFIGURATION OR DESIGN OF 
            SUBMARINES TO ACCOMMODATE FEMALE CREW MEMBERS.

    (a) In General.--(1) Chapter 555 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 6035. Female members: congressional review period for assignment 
                        to duty on submarines or for reconfiguration of 
                        submarines

    ``(a) No change in the Department of the Navy policy limiting 
service on submarines to males, as in effect on May 10, 2000, may take 
effect until--
            ``(1) the Secretary of Defense submits to Congress written 
        notice of the proposed change; and
            ``(2) a period of 30 days of continuous session of Congress 
        (excluding any day on which either House of Congress is not in 
        session) expires following the date on which the notice is 
        received.

    ``(b) No funds available to the Department of the Navy may be 
expended to reconfigure any existing submarine, or to design any new 
submarine, to accommodate female crew members until--
            ``(1) the Secretary of Defense submits to Congress written 
        notice of the proposed reconfiguration or design; and
            ``(2) a period of 30 days of continuous session of Congress 
        (excluding any day on which either House of Congress is not in 
        session) expires following the date on which the notice is 
        received.

    ``(c) For purposes of this section, the continuity of a session of 
Congress is broken only by an adjournment of the Congress sine die.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6035. Female members: congressional review period for assignment to 
           duty on submarines or for reconfiguration of submarines.''.

    (b) Conforming Amendment.--Section 542(a)(1) of the National Defense 
Authorization Act for Fiscal Year 1994 (10 U.S.C. 113 note) is amended 
by inserting ``or by section 6035 of title 10, United States Code'' 
after ``Except in a case covered by subsection (b)''.

SEC. 574. MANAGEMENT AND PER DIEM REQUIREMENTS FOR MEMBERS SUBJECT TO 
            LENGTHY OR NUMEROUS DEPLOYMENTS.

    (a) Approving Authority for Lengthy Deployments of Members.--
Subsection (a) of section 991 of title 10, United States Code, is 
amended--
            (1) by striking ``unless an officer'' in the second sentence 
        of paragraph (1) and all that follows through the period at the 
        end of that sentence and inserting a period and the following: 
        ``However, the member may be deployed, or continued

[[Page 114 STAT. 1654A-137]]

        in a deployment, without regard to the preceding sentence if 
        such deployment, or continued deployment, is approved--
            ``(A) in the case of a member who is assigned to a combatant 
        command in a position under the operational control of the 
        officer in that combatant command who is the service component 
        commander for the members of that member's armed force in that 
        combatant command, by that officer; and
            ``(B) in the case of a member not assigned as described in 
        subparagraph (A), by the service chief of that member's armed 
        force (or, if so designated by that service chief, by an officer 
        of the same armed force on active duty who is in the grade of 
        general or admiral or who is the personnel chief for that armed 
        force).''; and
            (2) by adding at the end the following new paragraph:

    ``(3) In paragraph (1)(B), the term `service chief' means the Chief 
of Staff of the Army, the Chief of Naval Operations, the Chief of Staff 
of the Air Force, or the Commandant of the Marine Corps.''.
    (b) Clarification of Definition of Deployment.--Subsection (b) of 
such section is amended--
            (1) in paragraph (1), by inserting ``or homeport, as the 
        case may be'' before the period at the end;
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) In the case of a member of a reserve component performing 
active service, the member shall be considered deployed or in a 
deployment for the purposes of paragraph (1) on any day on which, 
pursuant to orders that do not establish a permanent change of station, 
the member is performing the active service at a location that--
            ``(A) is not the member's permanent training site; and
            ``(B) is--
                    ``(i) at least 100 miles from the member's permanent 
                residence; or
                    ``(ii) a lesser distance from the member's permanent 
                residence that, under the circumstances applicable to 
                the member's travel, is a distance that requires at 
                least three hours of travel to traverse.''; and
            (4) in paragraph (3), as redesignated by paragraph (2) of 
        this subsection--
                    (A) by striking ``or'' at the end of subparagraph 
                (A);
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
            ``(C) unavailable solely because of--
                    ``(i) a hospitalization of the member at the 
                member's permanent duty station or homeport or in the 
                immediate vicinity of the member's permanent residence; 
                or
                    ``(ii) a disciplinary action taken against the 
                member.''.

    (c) Associated Per Diem Allowance.--Section 435 of title 37, United 
States Code (as added to that title effective October 1, 2001, by 
section 586(b) of the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106-65; 113 Stat. 638)) is amended--

[[Page 114 STAT. 1654A-138]]

            (1) in subsection (a), by striking ``251 days or more out of 
        the preceding 365 days'' and inserting ``401 or more days out of 
        the preceding 730 days''; and
            (2) in subsection (b), by striking ``prescribed under 
        paragraph (3)'' and inserting ``prescribed under paragraph 
        (4)''.

    (d) Review of Management of Deployments of Individual Members.--Not 
later than March 31, 2002, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the administration of section 991 of title 
10, United States Code, during fiscal year 2001. The report shall 
include--
            (1) a discussion of the experience in tracking and recording 
        the deployments of members of the Armed Forces; and
            (2) any recommendations for revision of such section that 
        the Secretary considers appropriate.

    (e) Effective Date.--If this Act is enacted before October 1, 2000, 
the amendments made by subsections (a) and (b) shall take effect on 
October 1, 2000, immediately after the amendment made by section 586(a) 
of the National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65; 113 Stat. 637) adding section 991 of title 10, United States 
Code, to such title.

SEC. 575. PAY IN LIEU OF ALLOWANCE FOR FUNERAL HONORS DUTY.

    (a) Compensation at Rate for Inactive-Duty Training.--(1) Section 
115(b)(2) of title 32, United States Code, is amended to read as 
follows:
            ``(2) as directed by the Secretary concerned, either--
                    ``(A) the allowance under section 435 of title 37; 
                or
                    ``(B) compensation under section 206 of title 37.''.

    (2) Section 12503(b)(2) of title 10, United States Code, is amended 
to read as follows:
            ``(2) as directed by the Secretary concerned, either--
                    ``(A) the allowance under section 435 of title 37; 
                or
                    ``(B) compensation under section 206 of title 37.''.

    (b) Conforming Repeal.--Section 435 of title 37, United States Code, 
is amended by striking subsection (c).
    (c) Applicability.--The amendments made by this section shall apply 
with respect to funeral honors duty performed on or after October 1, 
2000.

SEC. 576. TEST OF ABILITY OF RESERVE COMPONENT INTELLIGENCE UNITS AND 
            PERSONNEL TO MEET CURRENT AND EMERGING DEFENSE INTELLIGENCE 
            NEEDS.

    (a) Test Program Required.--(1) Beginning not later than June 1, 
2001, the Secretary of Defense shall conduct a three-year test program 
of reserve component intelligence units and personnel. The purpose of 
the test program shall be--
            (A) to determine the most effective peacetime structure and 
        operational employment of reserve component intelligence assets 
        for meeting current and future Department of Defense peacetime 
        operational intelligence requirements; and
            (B) to establish a means to coordinate and transition that 
        peacetime intelligence operational support network into use for 
        meeting wartime requirements.

    (2) The test program shall be carried out using the Joint Reserve 
Intelligence Program and appropriate reserve component intelligence 
units and personnel.

[[Page 114 STAT. 1654A-139]]

    (3) In conducting the test program, the Secretary of Defense shall 
expand the current Joint Reserve Intelligence Program as needed to meet 
the objectives of the test program.
    (b) Oversight Panel.--The Secretary shall establish an oversight 
panel to structure the test program so as to achieve the objectives of 
the test program, ensure proper funding for the test program, and 
oversee the conduct and evaluation of the test program. The panel 
members shall include--
            (1) the Assistant Secretary of Defense for Command, Control, 
        Communications and Intelligence;
            (2) the Assistant Secretary of Defense for Reserve Affairs; 
        and
            (3) representatives from the Defense Intelligence Agency, 
        the Army, Navy, Air Force, and Marine Corps, the Joint Staff, 
        and the combatant commands.

    (c) Test Program Objectives.--The test program shall have the 
following objectives:
            (1) To identify the range of peacetime roles and missions 
        that are appropriate for reserve component intelligence units 
        and personnel, including the following missions: counterdrug, 
        counterintelligence, counterterrorism, information operations, 
        information warfare, and other emerging threats.
            (2) To recommend a process for justifying and validating 
        reserve component intelligence force structure and manpower to 
        support the peacetime roles and missions identified under 
        paragraph (1) and to establish a means to coordinate and 
        transition that peacetime operational support network and 
        structure into wartime requirements.
            (3) To provide, pursuant to paragraphs (1) and (2), the 
        basis for new or revised intelligence and reserve component 
        policy guidelines for the peacetime use, organization, 
        management, infrastructure, and funding of reserve component 
        intelligence units and personnel.
            (4) To determine the most effective structure, organization, 
        manning, and management of Joint Reserve Intelligence Centers to 
        enable them to be both reserve training facilities and virtual 
        collaborative production facilities in support of Department of 
        Defense peacetime operational intelligence requirements.
            (5) To determine the most effective uses of technology for 
        virtual collaborative intelligence operational support during 
        peacetime and wartime.
            (6) To determine personnel and career management initiatives 
        or modifications that are required to improve the recruiting and 
        retention of personnel in the reserve component intelligence 
        specialties and occupational skills.
            (7) To identify and make recommendations for the elimination 
        of statutory prohibitions and barriers to using reserve 
        component intelligence units and individuals to carry out 
        peacetime operational requirements.

    (d) Reports.--The Secretary of Defense shall submit to Congress--
            (1) interim reports on the status of the test program not 
        later than July 1, 2002, and July 1, 2003; and
            (2) a final report, with such recommendations for changes as 
        the Secretary considers necessary, not later than December 1, 
        2004.

[[Page 114 STAT. 1654A-140]]

SEC. 577. NATIONAL GUARD CHALLENGE PROGRAM.

    (a) Responsibility of Secretary of Defense.--Subsection (a) of 
section 509 of title 32, United States Code, is amended by striking ``, 
acting through the Chief of the National Guard Bureau,''.
    (b) Sources of Federal Support.--Subsection (b) of such section is 
amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense'';
            (2) by striking ``, except that Federal expenditures under 
        the program may not exceed $62,500,000 for any fiscal year''; 
        and
            (3) by adding at the end the following new paragraphs:

    ``(2) The Secretary shall carry out the National Guard Challenge 
Program using--
            ``(A) funds appropriated directly to the Secretary of 
        Defense for the program, except that the amount of funds 
        appropriated directly to the Secretary and expended for the 
        program in a fiscal year may not exceed $62,500,000; and
            ``(B) nondefense funds made available or transferred to the 
        Secretary of Defense by other Federal agencies to support the 
        program.

    ``(3) Federal funds made available or transferred to the Secretary 
of Defense under paragraph (2)(B) by other Federal agencies to support 
the National Guard Challenge Program may be expended for the program in 
excess of the fiscal year limitation specified in paragraph (2)(A).''.
    (c) Regulations.--Such section is further amended by adding at the 
end the following new subsection:
    ``(m) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out the National Guard Challenge Program. The 
regulations shall address at a minimum the following:
            ``(1) The terms to be included in the program agreements 
        required by subsection (c).
            ``(2) The qualifications for persons to participate in the 
        program, as required by subsection (e).
            ``(3) The benefits authorized for program participants, as 
        required by subsection (f ).
            ``(4) The status of National Guard personnel assigned to 
        duty in support of the program under subsection (g).
            ``(5) The conditions for the use of National Guard 
        facilities and equipment to carry out the program, as required 
        by subsection (h).
            ``(6) The status of program participants, as described in 
        subsection (i).
            ``(7) The procedures to be used by the Secretary when 
        communicating with States about the program.''.

    (d) Conforming Amendment.--Section 2033 of title 10, United States 
Code, is amended by striking ``appropriated for'' and inserting 
``appropriated directly to the Secretary of Defense for''.

SEC. 578. STUDY OF USE OF CIVILIAN CONTRACTOR PILOTS FOR OPERATIONAL 
            SUPPORT MISSIONS.

    (a) Study.--The Secretary of Defense shall conduct a study to 
determine the feasibility and cost, as well as the advantages and 
disadvantages, of using civilian contractor personnel as pilots and 
other air crew members to fly nonmilitary Government aircraft (referred 
to as ``operational support aircraft'') to perform non-combat

[[Page 114 STAT. 1654A-141]]

personnel transportation missions worldwide. In carrying out the study, 
the Secretary shall consider the views and recommendations of the 
Chairman of the Joint Chiefs and the other members of the Joint Chiefs 
of Staff.
    (b) Matters To Be Included.--The study shall, at a minimum--
            (1) determine whether use of civilian contractor personnel 
        as pilots and other air crew members for such operational 
        support missions would be a cost effective means of freeing for 
        duty in units with combat and combat support missions those 
        military pilots and other personnel who now perform such 
        operational support missions; and
            (2) the effect on retention of military pilots and other 
        personnel if they are no longer required to fly operational 
        support missions.

    (c) Submission of Report.--The Secretary shall submit a report 
containing 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 six months after the date of the 
enactment of this Act.

SEC. 579. REIMBURSEMENT FOR EXPENSES INCURRED BY MEMBERS IN CONNECTION 
            WITH CANCELLATION OF LEAVE ON SHORT NOTICE.

    (a) Reimbursement Authorized.--Chapter 53 of title 10, United States 
Code, is amended by inserting after section 1053 the following new 
section:

``Sec. 1053a. Expenses incurred in connection with leave canceled due to 
                        contingency operations: reimbursement

    ``(a) Authorization To Reimburse.--The Secretary concerned may 
reimburse a member of the armed forces under the jurisdiction of the 
Secretary for travel and related expenses (to the extent not otherwise 
reimbursable under law) incurred by the member as a result of the 
cancellation of previously approved leave when the leave is canceled in 
connection with the member's participation in a contingency operation 
and the cancellation occurs within 48 hours of the time the leave would 
have commenced.
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations to establish the criteria for the applicability of 
subsection (a).
    ``(c) Conclusiveness of Settlement.--The settlement of an 
application for reimbursement under subsection (a) is final and 
conclusive.''.
    (b) Effective Date.--Section 1053a of title 10, United States Code, 
as added by subsection (a), shall apply with respect to any travel and 
related expenses incurred by a member in connection with leave canceled 
after the date of the enactment of this Act.
    (c) Conforming and Clerical Amendments.--(1) The heading of section 
1052 of such title is amended to read as follows:

``Sec. 1052. Adoption expenses: reimbursement''.

    (2) The heading of section 1053 of such title is amended to read as 
follows:

[[Page 114 STAT. 1654A-142]]

``Sec. 1053. Financial institution charges incurred because of 
                        Government error in direct deposit of pay: 
                        reimbursement''.

    (3) The table of sections at the beginning of chapter 53 of such 
title is amended by striking the items relating to sections 1052 and 
1053 and inserting the following:

``1052. Adoption expenses: reimbursement.
``1053. Financial institution charges incurred because of Government 
           error in direct deposit of pay: reimbursement.
``1053a. Expenses incurred in connection with leave canceled due to 
           contingency operations: reimbursement.''.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2001.
Sec. 602. Additional restructuring of basic pay rates for enlisted 
           members.
Sec. 603. Revised method for calculation of basic allowance for 
           subsistence.
Sec. 604. Family subsistence supplemental allowance for low-income 
           members of the Armed Forces.
Sec. 605. Basic allowance for housing.
Sec. 606. Additional amount available for fiscal year 2001 increase in 
           basic allowance for housing inside the United States.
Sec. 607. Equitable treatment of junior enlisted members in computation 
           of basic allowance for housing.
Sec. 608. Eligibility of members in grade E-4 to receive basic allowance 
           for housing while on sea duty.
Sec. 609. Personal money allowance for senior enlisted members of the 
           Armed Forces.
Sec. 610. Increased uniform allowances for officers.
Sec. 611. Cabinet-level authority to prescribe requirements and 
           allowance for clothing of enlisted members.
Sec. 612. Increase in monthly subsistence allowance for members of 
           precommissioning programs.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 621. Extension of certain bonuses and special pay authorities for 
           reserve forces.
Sec. 622. Extension of certain bonuses and special pay authorities for 
           nurse officer candidates, registered nurses, and nurse 
           anesthetists.
Sec. 623. Extension of authorities relating to payment of other bonuses 
           and special pays.
Sec. 624. Revision of enlistment bonus authority.
Sec. 625. Consistency of authorities for special pay for reserve medical 
           and dental officers.
Sec. 626. Elimination of required congressional notification before 
           implementation of certain special pay authority.
Sec. 627. Special pay for physician assistants of the Coast Guard.
Sec. 628. Authorization of special pay and accession bonus for pharmacy 
           officers.
Sec. 629. Correction of references to Air Force veterinarians.
Sec. 630. Career sea pay.
Sec. 631. Increased maximum rate of special duty assignment pay.
Sec. 632. Entitlement of members of the National Guard and other 
           reserves not on active duty to receive special duty 
           assignment pay.
Sec. 633. Authorization of retention bonus for members of the Armed 
           Forces qualified in a critical military skill.
Sec. 634. Entitlement of active duty officers of the Public Health 
           Service Corps to special pays and bonuses of health 
           professional officers of the Armed Forces.

            Subtitle C--Travel and Transportation Allowances

Sec. 641. Advance payments for temporary lodging of members and 
           dependents.
Sec. 642. Additional transportation allowance regarding baggage and 
           household effects.

[[Page 114 STAT. 1654A-143]]

Sec. 643. Incentive for shipping and storing household goods in less 
           than average weights.
Sec. 644. Equitable dislocation allowances for junior enlisted members.
Sec. 645. Authority to reimburse military recruiters, Senior ROTC cadre, 
           and military entrance processing personnel for certain 
           parking expenses.
Sec. 646. Expansion of funded student travel for dependents.

           Subtitle D--Retirement and Survivor Benefit Matters

Sec. 651. Exception to high-36 month retired pay computation for members 
           retired following a disciplinary reduction in grade.
Sec. 652. Increase in maximum number of Reserve retirement points that 
           may be credited in any year.
Sec. 653. Retirement from active reserve service after regular 
           retirement.
Sec. 654. Same treatment for Federal judges as for other Federal 
           officials regarding payment of military retired pay.
Sec. 655. Reserve component Survivor Benefit Plan spousal consent 
           requirement.
Sec. 656. Sense of Congress on increasing Survivor Benefit Plan 
           annuities for surviving spouses age 62 or older.
Sec. 657. Revision to special compensation authority to repeal exclusion 
           of uniformed services retirees in receipt of disability 
           retired pay.

                        Subtitle E--Other Matters

Sec. 661. Participation in Thrift Savings Plan.
Sec. 662. Determinations of income eligibility for special supplemental 
           food program.
Sec. 663. Billeting services for reserve members traveling for inactive-
           duty training.
Sec. 664. Settlement of claims for payments for unused accrued leave and 
           for retired pay.
Sec. 665. Additional benefits and protections for personnel incurring 
           injury, illness, or disease in the performance of funeral 
           honors duty.
Sec. 666. Authority for extension of deadline for filing claims 
           associated with capture and internment of certain persons by 
           North Vietnam.
Sec. 667. Back pay for members of the Navy and Marine Corps selected for 
           promotion while interned as prisoners of war during World War 
           II.
Sec. 668. Sense of Congress concerning funding for reserve components.

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2001.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2001 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, 2001, the rates 
of monthly basic pay for members of the uniformed services are increased 
by 3.7 percent.

SEC. 602. ADDITIONAL RESTRUCTURING OF BASIC PAY RATES FOR ENLISTED 
            MEMBERS.

    (a) Minimum Pay Increases for Mid-Level Enlisted Grades.--(1) 
Subject to paragraph (2), effective on July 1, 2001, the rates of 
monthly basic pay for enlisted members of the Armed Forces in the pay 
grades E-7, E-6, and E-5 shall be as follows:

[[Page 114 STAT. 1654A-144]]

        

                            ENLISTED MEMBERS
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-7..............   1,831.20   1,999.20   2,075.10   2,149.80   2,228.10
E-6..............   1,575.00   1,740.30   1,817.40   1,891.80   1,969.80
E-5..............   1,381.80   1,549.20   1,623.90   1,701.00   1,779.30
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-7..............   2,362.20   2,437.80   2,512.80   2,588.10   2,666.10
E-6..............   2,097.30   2,174.10   2,248.80   2,325.00   2,379.60
E-5..............   1,888.50   1,962.90   2,040.30   2,040.30   2,040.30
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-7..............   2,742.00   2,817.90   2,949.60   3,034.80   3,250.50
E-6..............   2,421.30   2,421.30   2,421.30   2,421.30   2,421.30
E-5..............   2,040.30   2,040.30   2,040.30   2,040.30   2,040.30
------------------------------------------------------------------------

    (2) The amounts specified in the table in paragraph (1) are subject 
to such revision as the Secretary of Defense and the Secretary of 
Transportation may prescribe under subsection (b)(1)(A).
    (b) Secretarial Authority To Further Revise.--(1) To ensure the 
efficient and effective operation of the military pay system, the 
Secretary of Defense, and the Secretary of Transportation with regard to 
the Coast Guard, may--
            (A) further increase any of the amounts specified in the 
        table in subsection (a) for enlisted members of the Armed Forces 
        in the pay grades E-7, E-6, and E-5; and
            (B) increase any of the amounts specified for other enlisted 
        members in the table under the heading ``ENLISTED MEMBERS'' in 
        section 601(c) of the National Defense Authorization Act for 
        Fiscal Year 2000 (Public Law 106-65; 113 Stat. 648), as adjusted 
        on January 1, 2001, pursuant to section 601(b) of this Act.

    (2) The revisions in monthly basic pay made by the Secretary of 
Defense and the Secretary of Transportation under paragraph (1) shall 
take effect on July 1, 2001, but only if the Secretaries also comply 
with paragraph (3).
    (3) If the Secretary of Defense or the Secretary of Transportation 
exercises the authority provided by paragraph (1), the Secretaries shall 
include, in the budget justification materials submitted to Congress in 
support of the President's budget submitted under section 1105 of title 
31, United States Code, for fiscal year 2002--
            (A) a revised pay table for enlisted members of the Armed 
        Forces to reflect the increases in monthly basic pay to take 
        effect on July 1, 2001; and
            (B) a description of the various increases made and the 
        reasons therefor.

SEC. 603. REVISED METHOD FOR CALCULATION OF BASIC ALLOWANCE FOR 
            SUBSISTENCE.

    (a) Annual Revision of Rate.--Subsection (b) of section 402 of title 
37, United States Code, is amended--

[[Page 114 STAT. 1654A-145]]

            (1) in paragraph (1), by striking ``The monthly rate'' and 
        inserting ``Through December 31, 2001, the monthly rate'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph:

    ``(2) On and after January 1, 2002, the monthly rate of basic 
allowance for subsistence to be in effect for an enlisted member for a 
year (beginning on January 1 of that year) shall be equal to the sum 
of--
            ``(A) the monthly rate of basic allowance for subsistence 
        that was in effect for an enlisted member for the preceding 
        year; plus
            ``(B) the product of the monthly rate under subparagraph (A) 
        and the percentage increase in the monthly cost of a liberal 
        food plan for a male in the United States who is between 20 and 
        50 years of age over the preceding fiscal year, as determined by 
        the Secretary of Agriculture each October 1.''.

    (b) Conforming Amendment.--Subsection (d)(1) of such section is 
amended by striking ``established under subsection (b)(1)'' and 
inserting ``in effect under paragraph (1) or (2) of subsection (b)''.
    (c) Early Termination of BAS Transitional Authority.--Effective 
October 1, 2001, subsections (c) through (f ) of section 602 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 37 U.S.C. 402 note) are repealed.

SEC. 604. FAMILY SUBSISTENCE SUPPLEMENTAL ALLOWANCE FOR LOW-INCOME 
            MEMBERS OF THE ARMED FORCES.

    (a) Supplemental Allowance Required.--(1) Chapter 7 of title 37, 
United States Code, is amended by inserting after section 402 the 
following new section:

``Sec. 402a. Supplemental subsistence allowance for low-income members 
                        with dependents

    ``(a) Supplemental Allowance Required.--(1) The Secretary concerned 
shall increase the basic allowance for subsistence to which a member of 
the armed forces described in subsection (b) is otherwise entitled under 
section 402 of this title by an amount (in this section referred to as 
the `supplemental subsistence allowance') designed to remove the 
member's household from eligibility for benefits under the food stamp 
program.
    ``(2) The supplemental subsistence allowance may not exceed $500 per 
month. In establishing the amount of the supplemental subsistence 
allowance to be paid an eligible member under this paragraph, the 
Secretary shall take into consideration the amount of the basic 
allowance for housing that the member receives under section 403 of this 
title or would otherwise receive under such section, in the case of a 
member who is not entitled to that allowance as a result of assignment 
to quarters of the United States or a housing facility under the 
jurisdiction of a uniformed service.
    ``(3) In the case of a member described in subsection (b) who 
establishes to the satisfaction of the Secretary concerned that the 
allotment of the member's household under the food stamp program, 
calculated in the absence of the supplemental subsistence allowance, 
would exceed the amount established by the Secretary concerned under 
paragraph (2), the amount of the supplemental subsistence allowance for 
the member shall be equal to the lesser of the following:

[[Page 114 STAT. 1654A-146]]

            ``(A) The value of that allotment.
            ``(B) $500.

    ``(b) Members Entitled to Allowance.--(1) Subject to subsection (d), 
a member of the armed forces is entitled to receive the supplemental 
subsistence allowance if the Secretary concerned determines that the 
member's income, together with the income of the rest of the member's 
household (if any), is within the highest income standard of 
eligibility, as then in effect under section 5(c) of the Food Stamp Act 
of 1977 (7 U.S.C. 2014(c)) and without regard to paragraph (1) of such 
section, for participation in the food stamp program.
    ``(2) In determining whether a member meets the eligibility criteria 
under paragraph (1), the Secretary--
            ``(A) shall not take into consideration the amount of the 
        supplemental subsistence allowance payable under this section; 
        but
            ``(B) shall take into consideration the amount of the basic 
        allowance for housing that the member receives under section 403 
        of this title or would otherwise receive under such section, in 
        the case of a member who is not entitled to that allowance as a 
        result of assignment to quarters of the United States or a 
        housing facility under the jurisdiction of a uniformed service.

    ``(c) Application for Allowance.--To request the supplemental 
subsistence allowance, a member shall submit an application to the 
Secretary concerned in such form and containing such information as the 
Secretary concerned may prescribe. A member applying for the 
supplemental subsistence allowance shall furnish such evidence regarding 
the member's satisfaction of the eligibility criteria under subsection 
(b) as the Secretary concerned may require.
    ``(d) Effective Period.--The entitlement of a member to receive the 
supplemental subsistence allowance terminates upon the occurrence of any 
of the following events, even though the member continues to meet the 
eligibility criteria described in subsection (b):
            ``(1) Payment of the supplemental subsistence allowance for 
        12 consecutive months.
            ``(2) Promotion of the member to a higher grade.
            ``(3) Transfer of the member in a permanent change of 
        station.

    ``(e) Reapplication.--Upon the termination of the effective period 
of the supplemental subsistence allowance for a member, or in 
anticipation of the imminent termination of the allowance, a member may 
reapply for the allowance under subsection (c), and the Secretary 
concerned shall approve the application and resume payment of the 
allowance to the member, if the member continues to meet, or once again 
meets, the eligibility criteria described in subsection (b).
    ``(f ) Reporting Requirement.--Not later than March 1 of each year 
after 2001, the Secretary of Defense shall submit to Congress a report 
specifying the number of members of the armed forces who received, at 
any time during the preceding year, the supplemental subsistence 
allowance. In preparing the report, the Secretary of Defense shall 
consult with the Secretary of Transportation. No report is required 
under this subsection after March 1, 2006.
    ``(g) Definitions.--In this section:

[[Page 114 STAT. 1654A-147]]

            ``(1) The term `Secretary concerned' means--
                    ``(A) the Secretary of Defense; and
                    ``(B) the Secretary of Transportation, with respect 
                to the Coast Guard when it is not operating as a service 
                in the Navy.
            ``(2) The terms `allotment' and `household' have the 
        meanings given those terms in section 3 of the Food Stamp Act of 
        1977 (7 U.S.C. 2012).
            ``(3) The term `food stamp program' means the program 
        established pursuant to section 4 of the Food Stamp Act of 1977 
        (7 U.S.C. 2013).

    ``(h) Termination of Authority.--No supplemental subsistence 
allowance may be provided under this section after September 30, 
2006.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 402 the 
following:

``402a. Supplemental subsistence allowance for low-income members with 
           dependents.''.

    (b) Effective Date.--Section 402a of title 37, United States Code, 
as added by subsection (a), shall take effect on the first day of the 
first month that begins not less than 180 days after the date of the 
enactment of this Act.

SEC. 605. BASIC ALLOWANCE FOR HOUSING.

    (a) Calculation of Rates.--Subsection (b) of section 403 of title 
37, United States Code, is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (1) as paragraph (2); and
            (3) by inserting after the subsection heading the following: 
        ``(1) The Secretary of Defense shall prescribe the rates of the 
        basic allowance for housing that are applicable for the various 
        military housing areas in the United States. The rates for an 
        area shall be based on the costs of adequate housing determined 
        for the area under paragraph (2).''.

    (b) Minimum Annual Amount Available for Housing Allowances.--
Subsection (b) of such section is further amended--
            (1) by striking paragraphs (3) and (5); and
            (2) by inserting after paragraph (2) the following new 
        paragraph:

    ``(3) The total amount that may be paid for a fiscal year for the 
basic allowance for housing under this subsection may not be less than 
the product of--
            ``(A) the total amount authorized to be paid for such 
        allowance for the preceding fiscal year; and
            ``(B) a fraction--
                    ``(i) the numerator of which is the index of the 
                national average monthly cost of housing for June of the 
                preceding fiscal year; and
                    ``(ii) the denominator of which is the index of the 
                national average monthly cost of housing for June of the 
                second preceding fiscal year.''.

    (c) Limitations on Reduction in Member's Allowance.--(1) Paragraph 
(6) of such subsection is amended by striking ``, changes in the 
national average monthly cost of housing,''.
    (2) Paragraph (7) of such subsection is amended by striking 
``without dependents''.

[[Page 114 STAT. 1654A-148]]

    (d) Allowance When Dependents Are Unable To Accompany Members.--
Subsection (d) of such section is amended by striking paragraph (3) and 
inserting the following new paragraph:
    ``(3) If a member with dependents is assigned to duty in an area 
that is different from the area in which the member's dependents reside, 
the member is entitled to a basic allowance for housing as provided in 
subsection (b) or (c), whichever applies to the member, subject to the 
following:
            ``(A) If the member's assignment to duty in that area, or 
        the circumstances of that assignment, require the member's 
        dependents to reside in a different area, as determined by the 
        Secretary concerned, the amount of the basic allowance for 
        housing for the member shall be based on the area in which the 
        dependents reside or the member's last duty station, whichever 
        the Secretary concerned determines to be most equitable.
            ``(B) If the member's assignment to duty in that area is 
        under the conditions of a low-cost or no-cost permanent change 
        of station or permanent change of assignment, the amount of the 
        basic allowance for housing for the member shall be based on the 
        member's last duty station if the Secretary concerned determines 
        that it would be inequitable to base the allowance on the cost 
        of housing in the area to which the member is reassigned.''.

    (e) Extension of Transition Period.--Section 603(b) of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 37 
U.S.C. 403 note) is amended by striking ``six years'' and inserting 
``eight years''.
    (f ) Effective Date; Application.--(1) The amendments made by this 
section shall take effect on October 1, 2000.
    (2) In the case of the amendment made by subsection (c)(2), the 
amendment shall apply with respect to pay periods beginning on and after 
October 1, 2000, for a member of the uniformed services covered by the 
provision of law so amended regardless of the date on which the member 
was first reassigned to duty under the conditions of a low-cost or no-
cost permanent change of station or permanent change of assignment.
    (3) In the case of the amendment made by subsection (d), the 
amendment shall apply with respect to pay periods beginning on and after 
October 1, 2000, for a member of the uniformed services covered by the 
provision of law so amended regardless of the date on which the member 
was first assigned to duty in an area that is different from the area in 
which the member's dependents reside.

SEC. 606. ADDITIONAL AMOUNT AVAILABLE FOR FISCAL YEAR 2001 INCREASE IN 
            BASIC ALLOWANCE FOR HOUSING INSIDE THE UNITED STATES.

    In addition to the amount determined by the Secretary of Defense 
under section 403(b)(3) of title 37, United States Code, as amended by 
section 605(b), to be the total amount to be paid during fiscal year 
2001 for the basic allowance for housing for military housing areas 
inside the United States, $30,000,000 of the amount authorized to be 
appropriated by section 421 for military personnel shall be used by the 
Secretary to further increase the total amount available for the basic 
allowance for housing for military housing areas inside the United 
States.

[[Page 114 STAT. 1654A-149]]

SEC. 607. EQUITABLE TREATMENT OF JUNIOR ENLISTED MEMBERS IN COMPUTATION 
            OF BASIC ALLOWANCE FOR HOUSING.

    (a) Determination of Costs of Adequate Housing.--Paragraph (2) of 
subsection (b) of section 403 of title 37, United States Code, as 
redesignated by section 605(a)(2), is amended by adding at the end the 
following new sentence: ``After June 30, 2001, the Secretary may not 
differentiate between members with dependents in pay grades E-1 through 
E-4 in determining what constitutes adequate housing for members.''.
    (b) Single Rate; Minimum.--Subsection (b) of such section, as 
amended by section 605(b)(1), is amended by inserting after paragraph 
(4) the following new paragraph:
    ``(5) On and after July 1, 2001, the Secretary of Defense shall 
establish a single monthly rate for members of the uniformed services 
with dependents in pay grades E-1 through E-4 in the same military 
housing area. The rate shall be consistent with the rates paid to 
members in pay grades other than pay grades E-1 through E-4 and shall be 
based on the following:
            ``(A) The average cost of a two-bedroom apartment in that 
        military housing area.
            ``(B) One-half of the difference between the average cost of 
        a two-bedroom townhouse in that area and the amount determined 
        in subparagraph (A).''.

SEC. 608. ELIGIBILITY OF MEMBERS IN GRADE E-4 TO RECEIVE BASIC ALLOWANCE 
            FOR HOUSING WHILE ON SEA DUTY.

    (a) Payment Authorized.--Subsection (f )(2)(B) of section 403 of 
title 37, United States Code, is amended--
            (1) by striking ``E-5'' in the first sentence and inserting 
        ``E-4 or E-5''; and
            (2) by striking ``grade E-5'' in the second sentence and 
        inserting ``grades E-4 and E-5''.

    (b) Conforming Amendment.--Subsection (m)(1)(B) of such section is 
amended by striking ``E-4'' and inserting ``E-3''.

SEC. 609. PERSONAL MONEY ALLOWANCE FOR SENIOR ENLISTED MEMBERS OF THE 
            ARMED FORCES.

    (a) Authority.--Section 414 of title 37, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Allowance for Senior Enlisted Members.--In addition to other 
pay or allowances authorized by this title, a noncommissioned officer is 
entitled to a personal money allowance of $2,000 a year while serving as 
the Sergeant Major of the Army, the Master Chief Petty Officer of the 
Navy, the Chief Master Sergeant of the Air Force, the Sergeant Major of 
the Marine Corps, or the Master Chief Petty Officer of the Coast 
Guard.''.
    (b) Stylistic Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Allowance for Officers 
        Serving in Certain Ranks or Positions.--'' after ``(a)''; and
            (2) in subsection (b), by inserting ``Allowance for Certain 
        Naval Officers.--'' after ``(b)''.

    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000.

[[Page 114 STAT. 1654A-150]]

SEC. 610. INCREASED UNIFORM ALLOWANCES FOR OFFICERS.

    (a) Initial Allowance.--Section 415(a) of title 37, United States 
Code, is amended by striking ``$200'' and inserting ``$400''.
    (b) Additional Allowance.--Section 416(a) of such title is amended 
by striking ``$100'' and inserting ``$200''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000.

SEC. 611. CABINET-LEVEL AUTHORITY TO PRESCRIBE REQUIREMENTS AND 
            ALLOWANCE FOR CLOTHING OF ENLISTED MEMBERS.

    Section 418 of title 37, United States Code, is amended--
            (1) in subsection (a), by striking ``The President'' and 
        inserting ``The Secretary of Defense and the Secretary of 
        Transportation, with respect to the Coast Guard when it is not 
        operating as a service in the Navy,''; and
            (2) in subsection (b), by striking ``the President'' and 
        inserting ``the Secretary of Defense''.

SEC. 612. INCREASE IN MONTHLY SUBSISTENCE ALLOWANCE FOR MEMBERS OF 
            PRECOMMISSIONING PROGRAMS.

    (a) Pay Rates for Cadets and Midshipmen.--Section 203(c) of title 
37, United States Code, is amended by striking ``at the rate of 
$600.00.'' and inserting ``at the monthly rate equal to 35 percent of 
the basic pay of a commissioned officer in the pay grade O-1 with less 
than two years of service.''.
    (b) Subsistence Allowance Rates.--Subsection (a) of section 209 of 
such title is amended--
            (1) by inserting ``(1)'' before ``Except'';
            (2) by striking ``subsistence allowance of $200 a month'' 
        and inserting ``monthly subsistence allowance at a rate 
        prescribed under paragraph (2)'';
            (3) by striking ``Subsistence'' and inserting the following:

    ``(3) A subsistence''; and
            (4) by inserting after the first sentence the following:

    ``(2) The Secretary of Defense shall prescribe by regulation the 
monthly rates for subsistence allowances provided under this section. 
The rate may not be less than $250 per month, but may not exceed $674 
per month.''.
    (c) Conforming and Stylistic Amendments.--Section 209 of such title 
is further amended--
            (1) in subsection (a), by inserting ``Senior ROTC Members in 
        Advanced Training.--'' after ``(a)'';
            (2) in subsection (b)--
                    (A) by inserting ``Senior ROTC Members Appointed in 
                Reserves.--'' after ``(b)''; and
                    (B) by striking ``in the amount provided in 
                subsection (a)'' and inserting ``at a rate prescribed 
                under subsection (a)'';
            (3) in subsection (c), by inserting ``Pay While Attending 
        Training or Practice Cruise.--'' after ``(c)'' the first place 
        it appears; and
            (4) in subsection (d)--
                    (A) by inserting ``Members of Marine Corps Officer 
                Candidate Program.--'' after ``(d)''; and

[[Page 114 STAT. 1654A-151]]

                    (B) by striking ``the same rate as that prescribed 
                by subsection (a),'' and inserting ``a monthly rate 
                prescribed under subsection (a)''.

    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect October 1, 2001.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 621. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
            RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short Wartime 
Specialties.--Section 302g(f ) of title 37, United States Code, is 
amended by striking ``December 31, 2000'' and inserting ``December 31, 
2001''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f ) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2000'' and inserting ``December 31, 2001''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.
    (f ) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2000'' and 
inserting ``December 31, 2001''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f ) of such title 
is amended by striking ``December 31, 2000'' and inserting ``December 
31, 2001''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, United 
States Code, is amended by striking ``January 1, 2001'' and inserting 
``January 1, 2002''.

SEC. 622. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
            NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND NURSE 
            ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2000'' and inserting ``December 31, 2001''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2000'' and inserting ``December 31, 2001''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking 
``December 31, 2000'' and inserting ``December 31, 2001''.

SEC. 623. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES 
            AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2000,'' and 
inserting ``December 31, 2001,''.

[[Page 114 STAT. 1654A-152]]

    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.
    (c) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of such title is amended by striking 
``December 31, 2000'' and inserting ``December 31, 2001''.
    (d) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2000'' and inserting ``December 
31, 2001''.
    (e) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2001''.

SEC. 624. REVISION OF ENLISTMENT BONUS AUTHORITY.

    (a) Bonus Authorized.--(1) Title 37, United States Code, is amended 
by inserting after section 308i the following new section:

``Sec. 309. Special pay: enlistment bonus

    ``(a) Bonus Authorized; Bonus Amount.--A person who enlists in an 
armed force for a period of at least 2 years may be paid a bonus in an 
amount not to exceed $20,000. The bonus may be paid in a single lump sum 
or in periodic installments.
    ``(b) Repayment of Bonus.--(1) A member of the armed forces who 
voluntarily, or because of the member's misconduct, does not complete 
the term of enlistment for which a bonus was paid under this section, or 
a member who is not technically qualified in the skill for which the 
bonus was paid, if any (other than a member who is not qualified because 
of injury, illness, or other impairment not the result of the member's 
misconduct), shall refund to the United States that percentage of the 
bonus that the unexpired part of member's enlistment is of the total 
enlistment period for which the bonus was paid.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of an enlistment for which a bonus 
was paid under this section does not discharge the person receiving the 
bonus from the debt arising under paragraph (1).
    ``(c) Relation to Prohibition on Bounties.--The enlistment bonus 
authorized by this section is not a bounty for purposes of section 
514(a) of title 10.
    ``(d) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the armed forces 
under the jurisdiction of the Secretary of Defense and by the Secretary 
of Transportation for the Coast Guard when the Coast Guard is not 
operating as a service in the Navy.
    ``(e) Duration of Authority.--No bonus shall be paid under this 
section with respect to any enlistment in the armed forces made after 
December 31, 2001.''.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by inserting after the item relating to section 308i 
the following new item:

``309. Special pay: enlistment bonus.''.


[[Page 114 STAT. 1654A-153]]



    (b) Repeal of Superseded Enlistment Bonus Authorities.--(1) Sections 
308a and 308f of title 37, United States Code, are repealed.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by striking the items relating to such sections.
    (c) Effective Date.--(1) The amendments made by subsection (a) shall 
take effect on October 1, 2000, and apply with respect to enlistments in 
the Armed Forces made on or after that date.
    (2) The amendments made by subsection (b) shall take effect on 
October 1, 2000. The repeal of sections 308a and 308f of title 37, 
United States Code, by such subsection shall not affect the validity or 
terms of any bonus provided under such sections for enlistments in the 
Armed Forces made before that date.

SEC. 625. CONSISTENCY OF AUTHORITIES FOR SPECIAL PAY FOR RESERVE MEDICAL 
            AND DENTAL OFFICERS.

    (a) Consistent Descriptions of Active Duty.--Section 302(h)(1) of 
title 37, United States Code, is amended by inserting before the period 
at the end the following: ``, including active duty in the form of 
annual training, active duty for training, and active duty for special 
work''.
    (b) Relation to Other Special Pay Authorities.--Subsection (d) of 
section 302f of such title is amended to read as follows:
    ``(d) Special Rule for Reserve Medical and Dental Officers.--While a 
reserve medical or dental officer receives a special pay under section 
302 or 302b of this title by reason of subsection (a), the officer shall 
not be entitled to special pay under section 302(h) or 302b(h) of this 
title.''.

SEC. 626. ELIMINATION OF REQUIRED CONGRESSIONAL NOTIFICATION BEFORE 
            IMPLEMENTATION OF CERTAIN SPECIAL PAY AUTHORITY.

    (a) Retention Special Pay for Optometrists.--(1) Section 302a(b)(1) 
of title 37, United States Code, is amended by striking ``an officer 
described in paragraph (2) may be paid'' and inserting ``the Secretary 
concerned may pay an officer described in paragraph (2) a''.
    (2) Section 617 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 10 U.S.C. 302a note) is amended by 
striking subsection (b).
    (b) Special Pay for Officers in Nursing Specialties.--(1) Section 
302e(b)(2)(A) of title 37, United States Code, is amended by striking 
``the Secretary'' and inserting ``the Secretary of the military 
department concerned''.
    (2) Section 614 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 10 U.S.C. 302e note) is amended by 
striking subsection (c).

SEC. 627. SPECIAL PAY FOR PHYSICIAN ASSISTANTS OF THE COAST GUARD.

    Section 302c(d)(1) of title 37, United States Code, is amended by 
inserting after ``nurse,'' the following: ``an officer of the Coast 
Guard or Coast Guard Reserve designated as a physician assistant,''.

[[Page 114 STAT. 1654A-154]]

SEC. 628. AUTHORIZATION OF SPECIAL PAY AND ACCESSION BONUS FOR PHARMACY 
            OFFICERS.

    (a) Authorization of Special Pay and Bonus.--Chapter 5 of title 37, 
United States Code, is amended by inserting after section 302h the 
following new sections:

``Sec. 302i. Special pay: pharmacy officers

    ``(a) Army, Navy, and Air Force Pharmacy Officers.--Under 
regulations prescribed pursuant to section 303a of this title, the 
Secretary of the military department concerned may, subject to 
subsection (c), pay special pay at the rates specified in subsection (d) 
to an officer who--
            ``(1) is a pharmacy officer in the Medical Service Corps of 
        the Army or Navy or the Biomedical Sciences Corps of the Air 
        Force; and
            ``(2) is on active duty under a call or order to active duty 
        for a period of not less than one year.

    ``(b) Public Health Service Corps.--Subject to subsection (c), the 
Secretary of Health and Human Services may pay special pay at the rates 
specified in subsection (d) to an officer who--
            ``(1) is an officer in the Regular or Reserve Corps of the 
        Public Health Service and is designated as a pharmacy officer; 
        and
            ``(2) is on active duty under a call or order to active duty 
        for a period of not less than one year.

    ``(c) Limitation.--Special pay may not be paid under this section to 
an officer serving in a pay grade above pay grade O-6.
    ``(d) Rate of Special Pay.--The rate of special pay paid to an 
officer under subsection (a) or (b) is as follows:
            ``(1) $3,000 per year, if the officer is undergoing pharmacy 
        internship training or has less than 3 years of creditable 
        service.
            ``(2) $7,000 per year, if the officer has at least 3 but 
        less than 6 years of creditable service and is not undergoing 
        pharmacy internship training.
            ``(3) $7,000 per year, if the officer has at least 6 but 
        less than 8 years of creditable service.
            ``(4) $12,000 per year, if the officer has at least 8 but 
        less than 12 years of creditable service.
            ``(5) $10,000 per year, if the officer has at least 12 but 
        less than 14 years of creditable service.
            ``(6) $9,000 per year, if the officer has at least 14 but 
        less than 18 years of creditable service.
            ``(7) $8,000 per year, if the officer has 18 or more years 
        of creditable service.

``Sec. 302j. Special pay: accession bonus for pharmacy officers

    ``(a) Accession Bonus Authorized.--A person who is a graduate of an 
accredited pharmacy school and who, during the period beginning on the 
date of the enactment of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 and ending on September 30, 2004, 
executes a written agreement described in subsection (c) to accept a 
commission as an officer of a uniformed service and remain on active 
duty for a period of not less than 4 years may, upon acceptance of the 
agreement by the Secretary concerned, be paid an accession bonus in an 
amount determined by the Secretary concerned.

[[Page 114 STAT. 1654A-155]]

    ``(b) Limitation on Amount of Bonus.--The amount of an accession 
bonus under subsection (a) may not exceed $30,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may not be paid 
a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to accept an 
        appointment as a warrant or commissioned officer, received 
        financial assistance from the Department of Defense or the 
        Department of Health and Human Services to pursue a course of 
        study in pharmacy; or
            ``(2) the Secretary concerned determines that the person is 
        not qualified to become and remain licensed as a pharmacist.

    ``(d) Agreement.--The agreement referred to in subsection (a) shall 
provide that, consistent with the needs of the uniformed service 
concerned, the person executing the agreement shall be assigned to duty, 
for the period of obligated service covered by the agreement, as a 
pharmacy officer in the Medical Service Corps of the Army or Navy, a 
biomedical sciences officer in the Air Force designated as a pharmacy 
officer, or a pharmacy officer of the Public Health Service.
    ``(e) Repayment.--(1) An officer who receives a payment under 
subsection (a) and who fails to become and remain licensed as a 
pharmacist during the period for which the payment is made shall refund 
to the United States an amount equal to the full amount of such payment.
    ``(2) An officer who voluntarily terminates service on active duty 
before the end of the period agreed to be served under subsection (a) 
shall refund to the United States an amount that bears the same ratio to 
the amount paid to the officer as the unserved part of such period bears 
to the total period agreed to be served.
    ``(3) An obligation to reimburse the United States under paragraph 
(1) or (2) is for all purposes a debt owed to the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than 5 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 this subsection. This paragraph applies to any 
case commenced under title 11 after the date of the enactment of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 
2001.''.
    (b) Administration.--Section 303a of title 37, United States Code, 
is amended by striking ``302h'' each place it appears and inserting 
``302j''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title is amended by inserting after the item relating 
to section 302h the following new items:

``302i. Special pay: pharmacy officers.
``302j. Special pay: accession bonus for pharmacy officers.''.

SEC. 629. CORRECTION OF REFERENCES TO AIR FORCE VETERINARIANS.

    Section 303(a) of title 37, United States Code, is amended--
            (1) in paragraph (1)(B), by striking ``who is designated as 
        a veterinary officer'' and inserting ``who is an officer in the 
        Biomedical Sciences Corps and holds a degree in veterinary 
        medicine''; and
            (2) in paragraph (2), by striking subparagraph (B) and 
        inserting the following:

[[Page 114 STAT. 1654A-156]]

                    ``(B) of a reserve component of the Air Force, of 
                the Army or the Air Force without specification of 
                component, or of the National Guard, who--
                          ``(i) is designated as a veterinary officer; 
                      or
                          ``(ii) is an officer in the Biomedical 
                      Sciences Corps of the Air Force and holds a degree 
                      in veterinary medicine; or''.

SEC. 630. CAREER SEA PAY.

    (a) Reform of Authorities.--Section 305a of title 37, United States 
Code, is amended--
            (1) in subsection (a), by striking ``(a) Under regulations 
        prescribed by the President, a member'' and inserting ``(a) 
        Availability of Special Pay.--A member'';
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by striking subsections (b) and (c) and inserting the 
        following new subsections:

    ``(b) Rates; Maximum.--The Secretary concerned shall prescribe the 
monthly rates for special pay applicable to members of each armed force 
under the Secretary's jurisdiction. No monthly rate may exceed $750.
    ``(c) Premium.--A member of a uniformed service entitled to career 
sea pay under this section who has served 36 consecutive months of sea 
duty is also entitled to a career sea pay premium for the thirty-seventh 
consecutive month and each subsequent consecutive month of sea duty 
served by such member. The monthly amount of the premium shall be 
prescribed by the Secretary concerned, but may not exceed $350.
    ``(d) Regulations.--The Secretary concerned shall prescribe 
regulations for the administration of this section for the armed force 
or armed forces under the jurisdiction of the Secretary. The 
entitlements under this section shall be subject to the regulations.''.
    (b) Stylistic Amendment.--Subsection (e) of such section, as 
redesignated by subsection (a)(2), is amended by inserting 
before ``(1)'' in paragraph (1) the following: ``Definition of Sea 
Duty.--''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000, and shall apply with respect to months 
beginning on or after that date.

SEC. 631. INCREASED MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT PAY.

    Section 307(a) of title 37, United States Code, is amended--
            (1) by striking ``$275'' and inserting ``$600''; and
            (2) by striking the second sentence.

SEC. 632. ENTITLEMENT OF MEMBERS OF THE NATIONAL GUARD AND OTHER 
            RESERVES NOT ON ACTIVE DUTY TO RECEIVE SPECIAL DUTY 
            ASSIGNMENT PAY.

    (a) Authority.--Section 307 of title 37, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d)(1) Under regulations prescribed by the Secretary concerned and 
to the extent provided for by appropriations, when an enlisted member of 
the National Guard or a reserve component of a uniformed service who is 
entitled to compensation under section 206 of this title performs duty 
for which a member described in subsection (a) is entitled to special 
pay under such subsection, the member of the National Guard or reserve 
component is entitled

[[Page 114 STAT. 1654A-157]]

to an increase in compensation equal to \1/30\ of the monthly special 
duty assignment pay prescribed by the Secretary concerned for the 
performance of that same duty by members described in subsection (a).
    ``(2) A member of the National Guard or a reserve component entitled 
to an increase in compensation under paragraph (1) is entitled to the 
increase--
            ``(A) for each regular period of instruction, or period of 
        appropriate duty, at which the member is engaged for at least 
        two hours, including that performed on a Sunday or holiday; or
            ``(B) for the performance of such other equivalent training, 
        instruction, duty, or appropriate duties, as the Secretary may 
        prescribe under section 206(a) of this title.

    ``(3) This subsection does not apply to a member of the National 
Guard or a reserve component who is entitled to basic pay under section 
204 of this title.''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect October 1, 2000.

SEC. 633. AUTHORIZATION OF RETENTION BONUS FOR MEMBERS OF THE ARMED 
            FORCES QUALIFIED IN A CRITICAL MILITARY SKILL.

    (a) Bonus Authorized.--(1) Chapter 5 of title 37, United States 
Code, is amended by adding at the end the following new section:

``Sec. 323. Special pay: retention incentives for members qualified in a 
                        critical military skill

    ``(a) Retention Bonus Authorized.--An officer or enlisted member of 
the armed forces who is serving on active duty and is qualified in a 
designated critical military skill may be paid a retention bonus as 
provided in this section if--
            ``(1) in the case of an officer, the member executes a 
        written agreement to remain on active duty for at least 1 year; 
        or
            ``(2) in the case of an enlisted member, the member 
        reenlists or voluntarily extends the member's enlistment for a 
        period of at least 1 year.

    ``(b) Designation of Critical Skills.--(1) A designated critical 
military skill referred to in subsection (a) is a military skill 
designated as critical by the Secretary of Defense, or by the Secretary 
of Transportation with respect to the Coast Guard when it is not 
operating as a service in the Navy.
    ``(2) The Secretary of Defense, and the Secretary of Transportation 
with respect to the Coast Guard when it is not operating as a service in 
the Navy, shall notify Congress, in advance, of each military skill to 
be designated by the Secretary as critical for purposes of this section. 
The notice shall be submitted at least 90 days before any bonus with 
regard to that critical skill is offered under subsection (a) and shall 
include a discussion of the necessity for the bonus, the amount and 
method of payment of the bonus, and the retention results that the bonus 
is expected to achieve.
    ``(c) Payment Methods.--A bonus under this section may be paid in a 
single lump sum or in periodic installments.
    ``(d) Maximum Bonus Amount.--A member may enter into an agreement 
under this section, or reenlist or voluntarily extend the member's 
enlistment, more than once to receive a bonus under

[[Page 114 STAT. 1654A-158]]

this section. However, a member may not receive a total of more than 
$200,000 in payments under this section.
    ``(e) Certain Members Ineligible.--A retention bonus may not be 
provided under subsection (a) to a member of the armed forces who--
            ``(1) has completed more than 25 years of active duty; or
            ``(2) will complete the member's twenty-fifth year of active 
        duty before the end of the period of active duty for which the 
        bonus is being offered.

    ``(f ) Relationship to Other Incentives.--A retention bonus paid 
under this section is in addition to any other pay and allowances to 
which a member is entitled.
    ``(g) Repayment of Bonus.--(1) If an officer who has entered into a 
written agreement under subsection (a) fails to complete the total 
period of active duty specified in the agreement, or an enlisted member 
who voluntarily or because of misconduct does not complete the term of 
enlistment for which a bonus was paid under this section, the Secretary 
of Defense, and the Secretary of Transportation with respect to members 
of the Coast Guard when it is not operating as a service in the Navy, 
may require the member to repay the United States, on a pro rata basis 
and to the extent that the Secretary determines conditions and 
circumstances warrant, all sums paid under this section.
    ``(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 in bankruptcy under title 11 that is entered less 
than 5 years after the termination of a written agreement entered into 
under subsection (a) does not discharge the member from a debt arising 
under paragraph (2).
    ``(h) Annual Report.--Not later than February 15 of each year, the 
Secretary of Defense and the Secretary of Transportation shall submit to 
Congress a report--
            ``(1) analyzing the effect, during the preceding fiscal 
        year, of the provision of bonuses under this section on the 
        retention of members qualified in the critical military skills 
        for which the bonuses were offered; and
            ``(2) describing the intentions of the Secretary regarding 
        the continued use of the bonus authority during the current and 
        next fiscal years.

    ``(i) Termination of Bonus Authority.--No bonus may be paid under 
this section with respect to any reenlistment, or voluntary extension of 
an enlistment, in the armed forces entered into after December 31, 2001, 
and no agreement under this section may be entered into after that 
date.''.

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

``323. Special pay: retention incentives for members qualified in a 
           critical military skill.''.

    (b) Effective Date.--Section 323 of title 10, United States Code, as 
added by subsection (a), shall take effect on October 1, 2000.

[[Page 114 STAT. 1654A-159]]

SEC. 634. ENTITLEMENT OF ACTIVE DUTY OFFICERS OF THE PUBLIC HEALTH 
            SERVICE CORPS TO SPECIAL PAYS AND BONUSES OF HEALTH 
            PROFESSIONAL OFFICERS OF THE ARMED FORCES.

    (a) In General.--Section 303a of title 37, United States Code, is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b)(1) Except as provided in paragraph (2) or as otherwise 
provided under a provision of this chapter, a commissioned officer in 
the Regular or Reserve Corps of the Public Health Service is entitled to 
special pay under a provision of this chapter in the same amounts, and 
under the same terms and conditions, as a commissioned officer of the 
armed forces is entitled to special pay under that provision.
    ``(2) A commissioned medical officer in the Regular or Reserve Corps 
of the Public Health Service (other than an officer serving in the 
Indian Health Service) may not receive additional special pay under 
section 302(a)(4) of this title for any period during which the officer 
is providing obligated service under the following provisions of law:
            ``(A) Section 338B of the Public Health Service Act (42 
        U.S.C. 254l-1).
            ``(B) Section 225(e) of the Public Health Service Act, as 
        that section was in effect before October 1, 1977.
            ``(C) Section 752 of the Public Health Service Act, as that 
        section was in effect between October 1, 1977, and August 13, 
        1981.''.

    (b) Repeal of Superseded Provisions.--Section 208(a) of the Public 
Health Service Act (42 U.S.C. 210(a)) is amended--
            (1) by striking paragraphs (2) and (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) For provisions relating to the receipt of special pay by 
commissioned officers of the Regular and Reserve Corps while on active 
duty, see section 303a(b) of title 37, United States Code.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 641. ADVANCE PAYMENTS FOR TEMPORARY LODGING OF MEMBERS AND 
            DEPENDENTS.

    (a) Subsistence Expenses.--Section 404a of title 37, United States 
Code, is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (d) and (e), respectively; and
            (2) by striking subsection (a) and inserting the following:

    ``(a) Payment or Reimbursement of Subsistence Expenses.--(1) Under 
regulations prescribed by the Secretaries concerned, a member of a 
uniformed service who is ordered to make a change of permanent station 
described in paragraph (2) shall be paid or reimbursed for subsistence 
expenses of the member and the member's dependents for the period 
(subject to subsection (c)) for which

[[Page 114 STAT. 1654A-160]]

the member and dependents occupy temporary quarters incident to that 
change of permanent station.
    ``(2) Paragraph (1) applies to the following:
            ``(A) A permanent change of station from any duty station to 
        a duty station in the United States (other than Hawaii or 
        Alaska).
            ``(B) A permanent change of station from a duty station in 
        the United States (other than Hawaii or Alaska) to a duty 
        station outside the United States or in Hawaii or Alaska.
            ``(C) In the case of an enlisted member who is reporting to 
        the member's first permanent duty station, the change from the 
        member's home of record or initial technical school to that 
        first permanent duty station.

    ``(b) Payment in Advance.--The Secretary concerned may make any 
payment for subsistence expenses to a member under this section in 
advance of the member actually incurring the expenses. The amount of an 
advance payment made to a member shall be computed on the basis of the 
Secretary's determination of the average number of days that members and 
their dependents occupy temporary quarters under the circumstances 
applicable to the member and the member's dependents.
    ``(c) Maximum Payment Period.--(1) In the case of a change of 
permanent station described in subparagraph (A) or (C) of subsection 
(a)(2), the period for which subsistence expenses are to be paid or 
reimbursed under this section may not exceed 10 days.
    ``(2) In the case of a change of permanent station described in 
subsection (a)(2)(B)--
            ``(A) the period for which such expenses are to be paid or 
        reimbursed under this section may not exceed five days; and
            ``(B) such payment or reimbursement may be provided only for 
        expenses incurred before leaving the United States (other than 
        Hawaii or Alaska).''.

    (b) Per Diem.--Section 405 of such title is amended to read as 
follows:

``Sec. 405. Travel and transportation allowances: per diem while on duty 
                        outside the United States or in Hawaii or Alaska

    ``(a) Per Diem Authorized.--Without regard to the monetary 
limitation of this title, the Secretary concerned may pay a per diem to 
a member of the uniformed services who is on duty outside of the United 
States or in Hawaii or Alaska, whether or not the member is in a travel 
status. The Secretary may pay the per diem in advance of the accrual of 
the per diem.
    ``(b) Determination of Per Diem.--In determining the per diem to be 
paid under this section, the Secretary concerned shall consider all 
elements of the cost of living to members of the uniformed services 
under the Secretary's jurisdiction and their dependents, including the 
cost of quarters, subsistence, and other necessary incidental expenses. 
However, dependents may not be considered in determining the per diem 
allowance for a member in a travel status.
    ``(c) Treatment of Housing Cost and Allowance.--Housing cost and 
allowance may be disregarded in prescribing a station cost of living 
allowance under this section.''.

[[Page 114 STAT. 1654A-161]]

    (c) Stylistic Amendments.--Section 404a of such title is further 
amended--
            (1) in subsection (d), as redesignated by subsection (a), by 
        striking ``(d)'' and inserting ``(d) Daily Subsistence Rates.--
        ''; and
            (2) in subsection (e), as redesignated by subsection 
        (a), by striking ``(e)'' and inserting ``(e) Maximum Daily 
        Payment.--''.

SEC. 642. ADDITIONAL TRANSPORTATION ALLOWANCE REGARDING BAGGAGE AND 
            HOUSEHOLD EFFECTS.

    (a) Pet Quarantine Fees.--Section 406(a)(1) of title 37, United 
States Code, is amended by adding at the end the following new sentence: 
``The Secretary concerned may also reimburse the member for mandatory 
pet quarantine fees for household pets, but not to exceed $275 per 
change of station, when the member incurs the fees incident to such 
change of station.''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect October 1, 2000.

SEC. 643. INCENTIVE FOR SHIPPING AND STORING HOUSEHOLD GOODS IN LESS 
            THAN AVERAGE WEIGHTS.

    Section 406(b)(1) of title 37, United States Code, is amended by 
adding at the end the following new subparagraph:
    ``(G) Under regulations prescribed by the Secretary of Defense, the 
Secretary concerned may pay a member a share (determined pursuant to 
such regulations) of the savings resulting to the United States when the 
total weights of the member's baggage and household effects shipped and 
stored under subparagraph (A) are less than the average weights of the 
baggage and household effects that are shipped and stored, respectively, 
by other members in the same grade and with the same dependents status 
as the member in connection with changes of station that are comparable 
to the member's change of station. The total savings shall be equal to 
the difference between the cost of shipping and cost of storing such 
average weights of baggage and household effects, respectively, and the 
corresponding costs associated with the weights of the member's baggage 
and household effects. For the administration of this subparagraph, the 
Secretary of Defense shall annually determine the average weights of 
baggage and household effects shipped and stored in connection with a 
change of temporary or permanent station.''.

SEC. 644. EQUITABLE DISLOCATION ALLOWANCES FOR JUNIOR ENLISTED MEMBERS.

    Section 407(c)(1) of title 37, United States Code, is amended by 
inserting before the period at the end the following: ``, except that 
the Secretary concerned may not differentiate between members with 
dependents in pay grades E-1 through E-5''.

SEC. 645. AUTHORITY TO REIMBURSE MILITARY RECRUITERS, SENIOR ROTC CADRE, 
            AND MILITARY ENTRANCE PROCESSING PERSONNEL FOR CERTAIN 
            PARKING EXPENSES.

    (a) Reimbursement Authority.--Chapter 7 of title 37, United States 
Code, is amended by inserting after section 411h the following new 
section:

[[Page 114 STAT. 1654A-162]]

``Sec. 411i. Travel and transportation allowances: parking expenses

    ``(a) Reimbursement Authority.--Under regulations prescribed by the 
Secretary of Defense, the Secretary of a military department may 
reimburse eligible Department of Defense personnel for expenses incurred 
after October 1, 2001, for parking a privately owned vehicle at a place 
of duty described in subsection (b).
    ``(b) Eligibility.--A member of the Army, Navy, Air Force, or Marine 
Corps or an employee of the Department of Defense may be reimbursed 
under subsection (a) for parking expenses while--
            ``(1) assigned to duty as a recruiter for any of the armed 
        forces;
            ``(2) assigned to duty at a military entrance processing 
        facility of the armed forces; or
            ``(3) detailed for instructional and administrative duties 
        at any institution where a unit of the Senior Reserve Officers' 
        Training Corps is maintained.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
411h the following new item:

``411i. Travel and transportation allowances: parking expenses.''.

SEC. 646. EXPANSION OF FUNDED STUDENT TRAVEL FOR DEPENDENTS.

    Section 430 of title 37, United States Code, is amended--
            (1) in subsections (a)(3) and (b)(1), by striking ``for the 
        purpose of obtaining a secondary or undergraduate college 
        education'' and inserting ``for the purpose of obtaining a 
        formal education''; and
            (2) in subsection (f )--
                    (A) by striking ``In this section, the term'' and 
                inserting the following:

    ``In this section:
            ``(1) The term''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(2) The term `formal education' means the following:
                    ``(A) A secondary education.
                    ``(B) An undergraduate college education.
                    ``(C) A graduate education pursued on a full-time 
                basis at an institution of higher education (as defined 
                in section 101 of the Higher Education Act of 1965 (20 
                U.S.C. 1001)).
                    ``(D) Vocational education pursued on a full-time 
                basis at a post-secondary vocational institution (as 
                defined in section 102(c) of the Higher Education Act of 
                1965 (20 U.S.C. 1002(c))).''.

[[Page 114 STAT. 1654A-163]]

           Subtitle D--Retirement and Survivor Benefit Matters

SEC. 651. EXCEPTION TO HIGH-36 MONTH RETIRED PAY COMPUTATION FOR MEMBERS 
            RETIRED FOLLOWING A DISCIPLINARY REDUCTION IN GRADE.

    Section 1407 of title 10, United States Code, is amended--
            (1) in subsection (b), by striking ``The retired pay base'' 
        and inserting ``Except as provided in subsection (f ), the 
        retired pay base''; and
            (2) by adding at the end the following new subsection:

    ``(f ) Exception for Enlisted Members Reduced in Grade and Officers 
Who Do Not Serve Satisfactorily in Highest Grade Held.--
            ``(1) Computation based on pre-high-three rules.--In the 
        case of a member or former member described in paragraph (2), 
        the retired pay base or retainer pay base is determined under 
        section 1406 of this title in the same manner as if the member 
        or former member first became a member of a uniformed service 
        before September 8, 1980.
            ``(2) Affected members.--A member or former member referred 
        to in paragraph (1) is a member or former member who by reason 
        of conduct occurring after the date of the enactment of this 
        subsection--
                    ``(A) in the case of a member retired in an enlisted 
                grade or transferred to the Fleet Reserve or Fleet 
                Marine Corps Reserve, was at any time reduced in grade 
                as the result of a court-martial sentence, nonjudicial 
                punishment, or an administrative action, unless the 
                member was subsequently promoted to a higher enlisted 
                grade or appointed to a commissioned or warrant grade; 
                and
                    ``(B) in the case of an officer, is retired in a 
                grade lower than the highest grade in which served by 
                reason of denial of a determination or certification 
                under section 1370 of this title that the officer served 
                on active duty satisfactorily in that grade.
            ``(3) Special rule for enlisted members.--In the case of a 
        member who retires within three years after having been reduced 
        in grade as described in paragraph (2)(A), who retires in an 
        enlisted grade that is lower than the grade from which reduced, 
        and who would be subject to paragraph (1) but for a subsequent 
        promotion to a higher enlisted grade or a subsequent appointment 
        to a warrant or commissioned grade, the rates of basic pay used 
        in the computation of the member's high-36 average for the 
        period of the member's service in a grade higher than the grade 
        in which retired shall be the rates of pay that would apply if 
        the member had been serving for that period in the grade in 
        which retired.''.

SEC. 652. INCREASE IN MAXIMUM NUMBER OF RESERVE RETIREMENT POINTS THAT 
            MAY BE CREDITED IN ANY YEAR.

    Section 12733(3) of title 10, United States Code, is amended by 
striking ``but not more than'' and all that follows and inserting ``but 
not more than--
                    ``(A) 60 days in any one year of service before the 
                year of service that includes September 23, 1996;

[[Page 114 STAT. 1654A-164]]

                    ``(B) 75 days in the year of service that includes 
                September 23, 1996, and in any subsequent year of 
                service before the year of service that includes the 
                date of the enactment of the Floyd D. Spence National 
                Defense Authorization Act for Fiscal Year 2001; and
                    ``(C) 90 days in the year of service that includes 
                the date of the enactment of the Floyd D. Spence 
                National Defense Authorization Act for Fiscal Year 2001 
                and in any subsequent year of service.''.

SEC. 653. RETIREMENT FROM ACTIVE RESERVE SERVICE AFTER REGULAR 
            RETIREMENT.

    (a) Conversion to Reserve Retirement.--(1) Chapter 1223 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 12741. Retirement from active reserve service performed after 
                        regular retirement

    ``(a) Election of Reserve Retired Pay.--A person who, after becoming 
entitled to retired or retainer pay under chapter 65, 367, 571, or 867 
of this title, serves in an active status in a reserve component is 
entitled to retired pay under this chapter if--
            ``(1) the person would, but for paragraphs (3) and (4) of 
        section 12731(a) of this title, otherwise be entitled to retired 
        pay under this chapter;
            ``(2) the person elects under this section to received 
        retired pay under this chapter; and
            ``(3) the person's service in an active status after having 
        become entitled to retired or retainer pay under that chapter is 
        determined by the Secretary concerned to have been satisfactory.

    ``(b) Actions To Effectuate Election.--As of the effective date of 
an election made by a person under subsection (a), the Secretary 
concerned shall--
            ``(1) terminate the person's entitlement to retired or 
        retainer pay under the applicable chapter of this title referred 
        to in subsection (a); and
            ``(2) in the case of a reserve commissioned officer, 
        transfer the officer to the Retired Reserve.

    ``(c) Time and Form of Election.--An election under subsection (b) 
shall be made within such time and in such form as the Secretary 
concerned requires.
    ``(d) Effective Date of Election.--An election made by a person 
under subsection (b) shall be effective--
            ``(1) except as provided in paragraph (2)(B), as of the date 
        on which the person attains 60 years of age, if the Secretary 
        concerned receives the election in accordance with this section 
        within 180 days after that date; or
            ``(2) on the first day of the first month that begins after 
        the date on which the Secretary concerned receives the election 
        in accordance with this section, if--
                    ``(A) the date of the receipt of the election is 
                more than 180 days after the date on which the person 
                attains 60 years of age; or
                    ``(B) the person retires from service in an active 
                status within that 180-day period.''.

[[Page 114 STAT. 1654A-165]]

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

``12741. Retirement from active reserve service performed after regular 
           retirement.''.

    (b) Effective Date.--Section 12741 of title 10, United States Code, 
as added by subsection (a), shall take effect 180 days after the date of 
the enactment of this Act and shall apply with respect to retired pay 
payable for months beginning on or after that effective date.

SEC. 654. SAME TREATMENT FOR FEDERAL JUDGES AS FOR OTHER FEDERAL 
            OFFICIALS REGARDING PAYMENT OF MILITARY RETIRED PAY.

    (a) Article III Judges.--(1) Section 371 of title 28, United States 
Code, is amended--
            (A) by striking subsection (e); and
            (B) by redesignating subsection (f ) as subsection (e).

    (2) Subsection (b) of such section is amended by striking 
``subsection (f )'' each place it appears and inserting ``subsection 
(e)''.
    (b) Judges of United States Court of Federal Claims.--(1) Section 
180 of title 28, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 7 of such 
title is amended by striking the item relating to section 180.
    (c) Retroactive Effective Date.--The amendments made by this section 
shall take effect as of October 1, 1999.

SEC. 655. RESERVE COMPONENT SURVIVOR BENEFIT PLAN SPOUSAL CONSENT 
            REQUIREMENT.

    (a) Eligible Participants.--Subsection (a)(2)(B) of section 1448 of 
title 10, United States Code, is amended to read as follows:
                    ``(B) Reserve-component annuity participants.--A 
                person who (i) is eligible to participate in the Plan 
                under paragraph (1)(B), and (ii) is married or has a 
                dependent child when he is notified under section 
                12731(d) of this title that he has completed the years 
                of service required for eligibility for reserve-
                component retired pay, unless the person elects (with 
                his spouse's concurrence, if required under paragraph 
                (3)) not to participate in the Plan before the end of 
                the 90-day period beginning on the date on which he 
                receives that notification.''.

    (b) Subsequent Election To Participate.--Subsection (a)(3)(B) of 
such section is amended--
            (1) by striking ``who elects to provide'' and inserting 
        ``who is eligible to provide'';
            (2) by redesignating clauses (i) and (ii) as clauses (iii) 
        and (iv), respectively; and
            (3) by inserting before clause (iii) (as so redesignated) 
        the following new clauses:
                          ``(i) not to participate in the Plan;
                          ``(ii) to designate under subsection (e)(2) 
                      the effective date for commencement of annuity 
                      payments under the Plan in the event that the 
                      member dies before becoming 60 years of age to be 
                      the 60th anniversary of the member's birth (rather 
                      than the day after the date of the member's 
                      death);''.

    (c) Conforming Amendments.--Subchapter II of chapter 73 of such 
title is further amended--

[[Page 114 STAT. 1654A-166]]

            (1) in section 1448(a)(2), by striking ``described in 
        clauses (i) and (ii)'' in the sentence following subparagraph 
        (B) (as amended by subsection (a)) and all that follows through 
        ``that clause'' and inserting ``who elects under subparagraph 
        (B) not to participate in the Plan'';
            (2) in section 1448(a)(4)--
                    (A) by striking ``not to participate in the Plan'' 
                in subparagraph (A); and
                    (B) by striking ``to participate in the Plan'' in 
                subparagraph (B);
            (3) in section 1448(e), by striking ``a person electing to 
        participate'' and all that follows through ``making such 
        election'' and inserting ``a person is required to make a 
        designation under this subsection, the person''; and
            (4) in section 1450( j)(1), by striking ``An annuity'' and 
        all that follows through the period and inserting ``A reserve-
        component annuity shall be effective in accordance with the 
        designation made under section 1448(e) of this title by the 
        person providing the annuity.''.

    (d) Effective Date.--The amendments made by this section apply only 
with respect to a notification under section 12731(d) of title 10, 
United States Code, made after January 1, 2001, that a member of a 
reserve component has completed the years of service required for 
eligibility for reserve-component retired pay.

SEC. 656. SENSE OF CONGRESS ON INCREASING SURVIVOR BENEFIT PLAN 
            ANNUITIES FOR SURVIVING SPOUSES AGE 62 OR OLDER.

    (a) Sense of Congress.--It is the sense of Congress that, subject to 
the requirements and limitations of congressional budget procedures 
relating to the enactment of new (or increased) entitlement authority, 
there should be enacted legislation that increases the annuities 
provided under the Survivor Benefit Plan program for surviving spouses 
who are 62 years of age or older in order to reduce (and eventually 
eliminate) the different levels of annuities under that program for 
surviving spouses who are under age 62 and those who are 62 years of age 
and older.
    (b) Survivor Benefit Plan.--For purposes of this section, the term 
``Survivor Benefit Plan program'' means the program of annuities for 
survivors of members of the uniformed services provided under subchapter 
II of chapter 73 of title 10, United States Code.

SEC. 657. REVISION TO SPECIAL COMPENSATION AUTHORITY TO REPEAL EXCLUSION 
            OF UNIFORMED SERVICES RETIREES IN RECEIPT OF DISABILITY 
            RETIRED PAY.

    (a) Eligibility for Chapter 61 Retirees.--Section 1413(c) of title 
10, United States Code, is amended by striking ``(other than a member 
who is retired under chapter 61 of this title)''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on October 1, 2001, and shall apply to months that begin on or 
after that date. No benefit may be paid under section 1413 of title 10, 
United States Code, to any person by reason of the amendment made by 
subsection (a) for any period before that date.

[[Page 114 STAT. 1654A-167]]

                        Subtitle E--Other Matters

SEC. 661. PARTICIPATION IN THRIFT SAVINGS PLAN.

    (a) Effective Date of Authority To Participate.--Section 663 of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 673; 5 U.S.C. 8440 note) is amended to read as follows:

``SEC. 663. EFFECTIVE DATE.

    ``(a) In General.--Except as provided in subsection (b), the 
amendments made by this subtitle shall take effect 180 days after the 
date of the enactment of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001.
    ``(b) Postponement Authority.--(1) The Secretary of Defense may 
postpone by up to 180 days after the date that would otherwise apply 
under subsection (a)--
            ``(A) the date as of which the amendments made by this 
        subtitle shall take effect; or
            ``(B) the date as of which section 211(a)(2) of title 37, 
        United States Code (as added by this subtitle) shall take 
        effect.

    ``(2) Postponement authority under this subsection may be exercised 
only to the extent that the failure to do so would prevent the Federal 
Retirement Thrift Investment Board from being able to provide timely and 
accurate services to investors or would place an excessive burden on the 
administrative capacity of the Board to accommodate participants in the 
Thrift Savings Plan, as determined by the Secretary of Defense after 
consultation with the Executive Director (appointed by the Board).
    ``(3) Paragraph (1) includes the authority to postpone the effective 
date of the amendments made by this subtitle (apart from section 
211(a)(2) of title 37, United States Code), and the effective date of 
such section 211(a)(2), by different lengths of time.
    ``(4) The Secretary shall notify the congressional defense 
committees, the Committee on Government Reform of the House of 
Representatives, and the Committee on Governmental Affairs of the Senate 
of any determination made under this subsection.''.
    (b) Regulations.--Section 661(b) of such Act (113 Stat. 672; 5 
U.S.C. 8440e note) is amended by striking ``the date on which'' and all 
that follows through ``later,'' and inserting ``the 180th day after the 
date of the enactment of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001,''.
    (c) Conforming Amendment.--Section 8440e(b)(2)(B)(i) of title 5, 
United States Code, is amended by striking ``as of'' and all that 
follows through ``thereof )'' and inserting ``as of the effective date 
that applies with respect to such individual under section 663 of the 
National Defense Authorization Act for Fiscal Year 2000''.

SEC. 662. DETERMINATIONS OF INCOME ELIGIBILITY FOR SPECIAL SUPPLEMENTAL 
            FOOD PROGRAM.

    Section 1060a(c)(1)(B) of title 10, United States Code, is amended 
by striking the second sentence and inserting the following new 
sentence: ``In the application of such criterion, the Secretary shall 
exclude from income any basic allowance for housing as permitted under 
section 17(d)(2)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(2)(B)).''.

[[Page 114 STAT. 1654A-168]]

SEC. 663. BILLETING SERVICES FOR RESERVE MEMBERS TRAVELING FOR INACTIVE-
            DUTY TRAINING.

    (a) In General.--(1) Chapter 1217 of title 10, United States Code, 
is amended by inserting after section 12603 the following new section:

``Sec. 12604. Billeting in Department of Defense facilities: Reserves 
                        attending inactive-duty training

    ``(a) Authority for Billeting on Same Basis as Active Duty Members 
Traveling Under Orders.--The Secretary of Defense shall prescribe 
regulations authorizing a Reserve traveling to inactive-duty training at 
a location more than 50 miles from that Reserve's residence to be 
eligible for billeting in Department of Defense facilities on the same 
basis and to the same extent as a member of the armed forces on active 
duty who is traveling under orders away from the member's permanent duty 
station.
    ``(b) Proof of Reason for Travel.--The Secretary shall include in 
the regulations the means for confirming a Reserve's eligibility for 
billeting under subsection (a).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 12603 the 
following new item:

``12604. Billeting in Department of Defense facilities: Reserves 
           attending inactive-duty training.''.

    (b) Effective Date.--Section 12604 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to periods of 
inactive-duty training beginning more than 180 days after the date of 
the enactment of this Act.

SEC. 664. SETTLEMENT OF CLAIMS FOR PAYMENTS FOR UNUSED ACCRUED LEAVE AND 
            FOR RETIRED PAY.

    (a) Claims for Payments for Unused Accrued Leave.--Subsection 
(a)(1)(A) of section 3702 of title 31, United States Code, is amended by 
inserting ``payments for unused accrued leave,'' after 
``transportation,''.
    (b) Waiver of Time Limitations.--Subsection (e)(1) of such section 
is amended by striking ``claim for pay or allowances provided under 
title 37'' and inserting ``claim for pay, allowances, or payment for 
unused accrued leave under title 37 or a claim for retired pay under 
title 10''.

SEC. 665. ADDITIONAL BENEFITS AND PROTECTIONS FOR PERSONNEL INCURRING 
            INJURY, ILLNESS, OR DISEASE IN THE PERFORMANCE OF FUNERAL 
            HONORS DUTY.

    (a) Incapacitation Pay.--Section 204 of title 37, United States 
Code, is amended--
            (1) in subsection (g)(1)--
                    (A) by striking ``or'' at the end of subparagraph 
                (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(E) in line of duty while--
                    ``(i) serving on funeral honors duty under section 
                12503 of title 10 or section 115 of title 32;
                    ``(ii) traveling to or from the place at which the 
                duty was to be performed; or

[[Page 114 STAT. 1654A-169]]

                    ``(iii) remaining overnight at or in the vicinity of 
                that place immediately before so serving, if the place 
                is outside reasonable commuting distance from the 
                member's residence.''; and
            (2) in subsection (h)(1)--
                    (A) by striking ``or'' at the end of subparagraph 
                (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(E) in line of duty while--
                    ``(i) serving on funeral honors duty under section 
                12503 of title 10 or section 115 of title 32;
                    ``(ii) traveling to or from the place at which the 
                duty was to be performed; or
                    ``(iii) remaining overnight at or in the vicinity of 
                that place immediately before so serving, if the place 
                is outside reasonable commuting distance from the 
                member's residence.''.

    (b) Tort Claims.--Section 2671 of title 28, United States Code, is 
amended by inserting ``115,'' in the second paragraph after ``members of 
the National Guard while engaged in training or duty under section''.
    (c) Applicability.--(1) The amendments made by subsection (a) shall 
apply with respect to months beginning on or after the date of the 
enactment of this Act.
    (2) The amendment made by subsection (b) shall apply with respect to 
acts and omissions occurring before, on, or after the date of the 
enactment of this Act.

SEC. 666. AUTHORITY FOR EXTENSION OF DEADLINE FOR FILING CLAIMS 
            ASSOCIATED WITH CAPTURE AND INTERNMENT OF CERTAIN PERSONS BY 
            NORTH VIETNAM.

    Section 657(d)(1) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2585) is amended by 
adding at the end the following new sentence: ``The Secretary may, in 
the case of any claim under this section, extend the time limitation 
under the preceding sentence by up to 18 months if the Secretary 
determines that such an extension in the case of that claim is necessary 
to prevent an injustice or that failure of the claimant to file the 
claim within that time limitation is due to excusable neglect.''.

SEC. 667. BACK PAY FOR MEMBERS OF THE NAVY AND MARINE CORPS SELECTED FOR 
            PROMOTION WHILE INTERNED AS PRISONERS OF WAR DURING WORLD 
            WAR II.

    (a) Entitlement of Former Prisoners of War.--Upon receipt of a claim 
made in accordance with this section, the Secretary of the Navy shall 
pay, from any appropriation currently available to the Secretary, back 
pay to any person who, by reason of being interned as a prisoner of war 
while serving as a member of the Navy or the Marine Corps during World 
War II, was not available to accept a promotion for which the person had 
been selected.
    (b) Payment to Surviving Spouse of Deceased Former Member.--In the 
case of a person described in subsection (a) who is deceased, the back 
pay for that person under this section shall be paid to the living 
surviving spouse of that person, if any. If there is no living surviving 
spouse, no claim may be paid under this section with respect to that 
person.

[[Page 114 STAT. 1654A-170]]

    (c) Amount of Back Pay.--(1) The amount of back pay payable to or 
for a person described in subsection (a) is the amount equal to the 
difference between--
            (A) the total amount of basic pay that would have been paid 
        to that person for service in the Navy or the Marine Corps for 
        the back-pay computation period if the person had been promoted 
        to the grade to which selected to be promoted; and
            (B) the total amount of basic pay that was actually paid to 
        or for that person for such service for the back-pay computation 
        period.

    (2) For purposes of paragraph (1), the back-pay computation period 
for a person covered by subsection (a) is the period--
            (A) beginning on the date (as determined by the Secretary of 
        the Navy) as of when that person's promotion would have been 
        effective for pay purposes but for the person's internment as a 
        prisoner of war; and
            (B) ending on the earliest of--
                    (i) the date of the person's discharge or release 
                from active duty;
                    (ii) the date on which the person's promotion to 
                that grade in fact became effective for pay purposes; 
                and
                    (iii) the end of World War II.

    (d) Time Limitations.--(1) To be eligible for a payment under this 
section, a claimant must file a claim for such payment with the 
Secretary of the Navy within two years after the effective date of the 
regulations prescribed to carry out this section.
    (2) Not later than 18 months after receiving a claim for payment 
under this section, the Secretary shall determine the eligibility of the 
claimant for payment of the claim. Subject to subsection (f ), if the 
Secretary determines that the claimant is eligible for the payment, the 
Secretary shall promptly pay the claim.
    (e) Regulations.--Not later than six months after the date of the 
enactment of this Act, the Secretary of the Navy shall prescribe 
regulations to carry out this section. Such regulations shall include 
procedures by which persons may submit claims for payment under this 
section.
    (f ) Limitation on Disbursement.--(1) Notwithstanding any power of 
attorney, assignment of interest, contract, or other agreement, the 
actual disbursement of a payment of back pay under this section may be 
made only to a person who is eligible for the payment under subsection 
(a) or (b).
    (2) In the case of a claim approved for payment but not disbursed as 
a result of paragraph (1), the Secretary shall hold the funds in trust 
for the person in an interest bearing account until such time as the 
person makes an election under such paragraph.
    (g) Attorney Fees.--Notwithstanding any contract, the representative 
of a person may not receive, for services rendered in connection with 
the claim of, or with respect to, a person under this section, more than 
10 percent of the amount of a payment made under this section on that 
claim.
    (h) Outreach.--The Secretary of the Navy shall take such actions as 
are necessary to ensure that the benefits and eligibility for benefits 
under this section are widely publicized by means designed to provide 
actual notice of the availability of the benefits in a timely manner to 
the maximum number of eligible persons practicable.

[[Page 114 STAT. 1654A-171]]

    (i) Definition.--In this section, the term ``World War II'' has the 
meaning given that term in section 101(8) of title 38, United States 
Code.

SEC. 668. SENSE OF CONGRESS CONCERNING FUNDING FOR RESERVE COMPONENTS.

    It is the sense of Congress that it is in the national interest for 
the President, in the President's Budget for each fiscal year, to 
provide funds for the reserve components of the Armed Forces at a level 
sufficient to ensure that the reserve components are able to meet the 
requirements, including training requirements, specified for them in the 
National Military Strategy.

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Provision of domiciliary and custodial care for CHAMPUS 
           beneficiaries and certain former CHAMPUS beneficiaries.
Sec. 702. Chiropractic health care for members on active duty.
Sec. 703. School-required physical examinations for certain minor 
           dependents.
Sec. 704. Two-year extension of dental and medical benefits for 
           surviving dependents of certain deceased members.
Sec. 705. Two-year extension of authority for use of contract physicians 
           at military entrance processing stations and elsewhere 
           outside medical treatment facilities.
Sec. 706. Medical and dental care for Medal of Honor recipients.

                     Subtitle B--Senior Health Care

Sec. 711. Implementation of TRICARE senior pharmacy program.
Sec. 712. Conditions for eligibility for CHAMPUS and TRICARE upon the 
           attainment of age 65; expansion and modification of medicare 
           subvention project.
Sec. 713. Accrual funding for health care for medicare-eligible retirees 
           and dependents.

                       Subtitle C--TRICARE Program

Sec. 721. Improvement of access to health care under the TRICARE 
           program.
Sec. 722. Additional beneficiaries under TRICARE Prime Remote program in 
           the continental United States.
Sec. 723. Modernization of TRICARE business practices and increase of 
           use of military treatment facilities.
Sec. 724. Extension of TRICARE managed care support contracts.
Sec. 725. Report on protections against health care providers seeking 
           direct reimbursement from members of the uniformed services.
Sec. 726. Voluntary termination of enrollment in TRICARE retiree dental 
           program.
Sec. 727. Claims processing improvements.
Sec. 728. Prior authorizations for certain referrals and 
           nonavailability-of-health-care statements.

                   Subtitle D--Demonstration Projects

Sec. 731. Demonstration project for expanded access to mental health 
           counselors.
Sec. 732. Teleradiology demonstration project.
Sec. 733. Health care management demonstration program.

    Subtitle E--Joint Initiatives With Department of Veterans Affairs

Sec. 741. VA-DOD sharing agreements for health services.
Sec. 742. Processes for patient safety in military and veterans health 
           care systems.
Sec. 743. Cooperation in developing pharmaceutical identification 
           technology.

                        Subtitle F--Other Matters

Sec. 751. Management of anthrax vaccine immunization program.
Sec. 752. Elimination of copayments for immediate family.
Sec. 753. Medical informatics.
Sec. 754. Patient care reporting and management system.
Sec. 755. Augmentation of Army Medical Department by detailing Reserve 
           officers of the Public Health Service.

[[Page 114 STAT. 1654A-172]]

Sec. 756. Privacy of Department of Defense medical records.
Sec. 757. Authority to establish special locality-based reimbursement 
           rates; reports.
Sec. 758. Reimbursement for certain travel expenses.
Sec. 759. Reduction of cap on payments.
Sec. 760. Training in health care management and administration.
Sec. 761. Studies on feasibility of sharing biomedical research 
           facility.
Sec. 762. Study on comparability of coverage for physical, speech, and 
           occupational therapies.

                    Subtitle A--Health Care Services

SEC. 701. PROVISION OF DOMICILIARY AND CUSTODIAL CARE FOR CHAMPUS 
            BENEFICIARIES AND CERTAIN FORMER CHAMPUS BENEFICIARIES.

    (a) Continuation of Care for Certain CHAMPUS Beneficiaries.--Section 
703(a)(1) of the National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65; 113 Stat. 682; 10 U.S.C. 1077 note) is amended by 
inserting before the period at the end the following: ``or by the 
prohibition in section 1086(d)(1) of such title''.
    (b) Reimbursement for Services Provided.--Section 703(a) of such Act 
is further amended by adding at the end the following new paragraph:
    ``(4) The Secretary may provide payment for domiciliary or custodial 
care services provided to an eligible beneficiary for which payment was 
discontinued by reason of section 1086(d) of title 10, United States 
Code, and subsequently reestablished under other legal authority. Such 
payment is authorized for the period beginning on the date of 
discontinuation of payment for domiciliary or custodial care services 
and ending on the date of reestablishment of payment for such 
services.''.
    (c) Cost Limitation for Individual Case Management Program.--(1) 
Section 1079(a)(17) of title 10, United States Code, is amended--
            (A) by inserting ``(A)'' after ``(17)''; and
            (B) by adding at the end the following:
            ``(B) The total amount expended under subparagraph (A) for a 
        fiscal year may not exceed $100,000,000.''.

    (2) Section 703 of the National Defense Authorization Act for Fiscal 
Year 2000 is further amended by adding at the end the following:
    ``(e) Cost Limitation.--The total amount paid for services for 
eligible beneficiaries under subsection (a) for a fiscal year (together 
with the costs of administering the authority under that subsection) 
shall be included in the expenditures limited by section 1079(a)(17)(B) 
of title 10, United States Code.''.
    (3) The amendments made by paragraphs (1) and (2) shall apply to 
fiscal years after fiscal year 1999.
    (d) Study Required.--(1) Not later than the date that is three 
months after the date of the enactment of this Act, the Comptroller 
General of the United States shall undertake a study to evaluate the 
coordination and effectiveness of the supplemental disability health 
care programs of the Department of Defense, the Program for Persons with 
Disabilities and the Individual Case Management Program for Persons with 
Disabilities, as such programs relate to other elements of the TRICARE 
program in meeting the health care needs of disabled dependents of 
members of the Armed Forces on active duty. The Comptroller General 
shall examine--

[[Page 114 STAT. 1654A-173]]

            (A) the number of such dependents who receive services under 
        the Program for Persons with Disabilities, and the number of 
        beneficiaries receiving care under the Individual Case 
        Management Program for Persons with Disabilities, and a 
        description of the patterns of use and expenditures for services 
        provided under such programs;
            (B) the effectiveness of the existing system for 
        coordinating the provision of services under the TRICARE program 
        and the supplemental disability programs of the Department of 
        Defense, including the comprehensiveness of services and the 
        cost effectiveness of providing services;
            (C) the extent to which the monthly maximum benefit imposed 
        under current law under the Program for Persons with 
        Disabilities affects the ability of beneficiaries to obtain 
        needed health care services;
            (D) the number of beneficiaries who are receiving services 
        that supplement services to the TRICARE program under the 
        Program for Persons with Disabilities and the Individual Case 
        Management Program for Persons with Disabilities; and
            (E) the extent to which costs or lack of coverage for health 
        care services for disabled dependents of members of the Armed 
        Forces on active duty under existing military health care 
        programs has caused increased enrollment of such dependents in 
        medicaid programs.

    (2) Not later than April 16, 2001, the Comptroller General shall 
submit to Congress a report on the results of the study under this 
section, including recommendations for legislative or administrative 
changes for providing a comprehensive, efficient, and complete system of 
health care services for disabled dependents of members of the Armed 
Forces on active duty.

SEC. 702. CHIROPRACTIC HEALTH CARE FOR MEMBERS ON ACTIVE DUTY.

    (a) Plan Required.--(1) Not later than March 31, 2001, the Secretary 
of Defense shall complete development of a plan to provide chiropractic 
health care services and benefits, as a permanent part of the Defense 
Health Program (including the TRICARE program), for all members of the 
uniformed services who are entitled to care under section 1074(a) of 
title 10, United States Code.
    (2) The plan shall provide for the following:
            (A) Access, at designated military medical treatment 
        facilities, to the scope of chiropractic services as determined 
        by the Secretary, which includes, at a minimum, care for neuro-
        musculoskeletal conditions typical among military personnel on 
        active duty.
            (B) A detailed analysis of the projected costs of fully 
        integrating chiropractic health care services into the military 
        health care system.
            (C) An examination of the proposed military medical 
        treatment facilities at which such services would be provided.
            (D) An examination of the military readiness requirements 
        for chiropractors who would provide such services.
            (E) An examination of any other relevant factors that the 
        Secretary considers appropriate.
            (F) Phased-in implementation of the plan over a 5-year 
        period, beginning on October 1, 2001.

[[Page 114 STAT. 1654A-174]]

    (b) Consultation Requirements.--The Secretary of Defense shall 
consult with the other administering Secretaries described in section 
1073 of title 10, United States Code, and the oversight advisory 
committee established under section 731 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 
1092 note) regarding the following:
            (1) The development and implementation of the plan required 
        under subsection (a).
            (2) Each report that the Secretary is required to submit to 
        Congress regarding the plan.
            (3) The selection of the military medical treatment 
        facilities at which the chiropractic services described in 
        subsection (a)(2)(A) are to be provided.

    (c) Continuation of Current Services.--Until the plan required under 
subsection (a) is implemented, the Secretary shall continue to furnish 
the same level of chiropractic health care services and benefits under 
the Defense Health Program that is provided during fiscal year 2000 at 
military medical treatment facilities that provide such services and 
benefits.
    (d) Report Required.--Not later than January 31, 2001, the Secretary 
of Defense shall submit a report on the plan required under subsection 
(a), together with appropriate appendices and attachments, to the 
Committees on Armed Services of the Senate and the House of 
Representatives.
    (e) GAO Reports.--The Comptroller General shall monitor the 
development and implementation of the plan required under subsection 
(a), including the administration of services and benefits under the 
plan, and periodically submit to the committees referred to in 
subsection (d) written reports on such development and implementation.

SEC. 703. SCHOOL-REQUIRED PHYSICAL EXAMINATIONS FOR CERTAIN MINOR 
            DEPENDENTS.

    Section 1076 of title 10, United States Code, is amended by adding 
at the end the following:
    ``(f )(1) The administering Secretaries shall furnish an eligible 
dependent a physical examination that is required by a school in 
connection with the enrollment of the dependent as a student in that 
school.
    ``(2) A dependent is eligible for a physical examination under 
paragraph (1) if the dependent--
            ``(A) is entitled to receive medical care under subsection 
        (a) or is authorized to receive medical care under subsection 
        (b); and
            ``(B) is at least 5 years of age and less than 12 years of 
        age.

    ``(3) Nothing in paragraph (2) may be construed to prohibit the 
furnishing of a school-required physical examination to any dependent 
who, except for not satisfying the age requirement under that paragraph, 
would otherwise be eligible for a physical examination required to be 
furnished under this subsection.''.

SEC. 704. TWO-YEAR EXTENSION OF DENTAL AND MEDICAL BENEFITS FOR 
            SURVIVING DEPENDENTS OF CERTAIN DECEASED MEMBERS.

    (a) Dental Benefits.--Section 1076a(k)(2) of title 10, United States 
Code, is amended by striking ``one-year period'' and inserting ``three-
year period''.

[[Page 114 STAT. 1654A-175]]

    (b) Medical Benefits.--Section 1079(g) of title 10, United States 
Code, is amended by striking ``one-year period'' in the second sentence 
and inserting ``three-year period''.

SEC. 705. TWO-YEAR EXTENSION OF AUTHORITY FOR USE OF CONTRACT PHYSICIANS 
            AT MILITARY ENTRANCE PROCESSING STATIONS AND ELSEWHERE 
            OUTSIDE MEDICAL TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended by 
striking ``December 31, 2000'' in the second sentence and inserting 
``December 31, 2002''.

SEC. 706. MEDICAL AND DENTAL CARE FOR MEDAL OF HONOR RECIPIENTS.

    (a) In General.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074g the following new section:

``Sec. 1074h. Medical and dental care: medal of honor recipients; 
                        dependents

    ``(a) Medal of Honor Recipients.--A former member of the armed 
forces who is a Medal of Honor recipient and who is not otherwise 
entitled to medical and dental benefits under this chapter may, upon 
request, be given medical and dental care provided by the administering 
Secretaries in the same manner as if entitled to retired pay.
    ``(b) Immediate Dependents.--A person who is an immediate dependent 
of a Medal of Honor recipient and who is not otherwise entitled to 
medical and dental benefits under this chapter may, upon request, be 
given medical and dental care provided by the administering Secretaries 
in the same manner as if the Medal of Honor recipient were, or (if 
deceased) was at the time of death, entitled to retired pay.
    ``(c) Definitions.--In this section:
            ``(1) The term `Medal of Honor recipient' means a person who 
        has been awarded a medal of honor under section 3741, 6241, or 
        8741 of this title or section 491 of title 14.
            ``(2) The term `immediate dependent' means a dependent 
        described in subparagraph (A), (B), (C), or (D) of section 
        1072(2) of this title.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1074g the 
following new item:

``1074h. Medical and dental care: medal of honor recipients; 
           dependents.''.

    (b) Effective Date.--Section 1074h of title 10, United States Code, 
shall apply with respect to medical and dental care provided on or after 
the date of the enactment of this Act.

                     Subtitle B--Senior Health Care

SEC. 711. IMPLEMENTATION OF TRICARE SENIOR PHARMACY PROGRAM.

    (a) Expansion of TRICARE Senior Pharmacy Program.--Section 723 of 
the Strom Thurmond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105-261; 112 Stat. 2068; 10 U.S.C. 1073 note) is 
amended--

[[Page 114 STAT. 1654A-176]]

            (1) in subsection (a)--
                    (A) by striking ``October 1, 1999'' and inserting 
                ``April 1, 2001''; and
                    (B) by striking ``who reside in an area selected 
                under subsection (f )'';
            (2) by amending subsection (b) to read as follows:

    ``(b) Program Requirements.--The same coverage for pharmacy services 
and the same requirements for cost sharing and reimbursement as are 
applicable under section 1086 of title 10, United States Code, shall 
apply with respect to the program required by subsection (a).'';
            (3) in subsection (d)--
                    (A) by striking ``December 31, 2000'' and inserting 
                ``December 31, 2001''; and
                    (B) by striking ``December 31, 2002'' and inserting 
                ``December 31, 2003'';
            (4) in subsection (e)--
                    (A) in paragraph (1)--
                          (i) in subparagraph (B), by inserting ``and'' 
                      after the semicolon;
                          (ii) in subparagraph (C), by striking ``; 
                      and'' and inserting a period; and
                          (iii) by striking subparagraph (D); and
                    (B) in paragraph (2), by striking ``at the time'' 
                and all that follows through ``facility'' and inserting 
                ``, before April 1, 2001, has attained the age of 65 and 
                did not enroll in the program described in such 
                paragraph''; and
            (5) by striking subsection (f ).

    (b) Termination of Demonstration Project and Retail Pharmacy Network 
Requirements.--Section 702 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 1079 note) is amended by 
adding at the end the following:
    ``(h) Termination.--This section shall cease to apply to the 
Secretary of Defense on the date after the implementation of section 711 
of the Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 that the Secretary determines appropriate, with a view to 
minimizing instability with respect to the provision of pharmacy 
benefits, but in no case later than the date that is one year after the 
date of the enactment of such Act.''.

SEC. 712. CONDITIONS FOR ELIGIBILITY FOR CHAMPUS AND TRICARE UPON THE 
            ATTAINMENT OF AGE 65; EXPANSION AND MODIFICATION OF MEDICARE 
            SUBVENTION PROJECT.

    (a) Eligibility of Medicare Eligible Persons.--(1) Section 1086(d) 
of title 10, United States Code, is amended--
            (A) by striking paragraph (2) and inserting the following:

    ``(2) The prohibition contained in paragraph (1) shall not apply to 
a person referred to in subsection (c) who--
            ``(A) is enrolled in the supplementary medical insurance 
        program under part B of such title (42 U.S.C. 1395j et seq.); 
        and
            ``(B) in the case of a person under 65 years of age, is 
        entitled to hospital insurance benefits under part A of title 
        XVIII of the Social Security Act pursuant to subparagraph (A) or 
        (C) of section 226(b)(2) of such Act (42 U.S.C. 426(b)(2)) or 
        section 226A(a) of such Act (42 U.S.C. 426-1(a)).''; and

[[Page 114 STAT. 1654A-177]]

            (B) in paragraph (4), by striking ``paragraph (1) who 
        satisfy only the criteria specified in subparagraphs (A) and (B) 
        of paragraph (2), but not subparagraph (C) of such paragraph,'' 
        and inserting ``subparagraph (B) of paragraph (2) who do not 
        satisfy the condition specified in subparagraph (A) of such 
        paragraph''.

    (2) Subsection (a)(4)(A) of section 1896 of the Social Security Act 
(42 U.S.C. 1395ggg) is amended to read as follows:
                    ``(A) is eligible for health benefits under section 
                1086 of such title by reason of subsection (c)(1) of 
                such section;''.

    (3) The amendments made by paragraphs (1) and (2) shall take effect 
on October 1, 2001.

    (b) 1-Year Extension of Medicare Subvention Project.--Section 1896 
of the Social Security Act (42 U.S.C. 1395ggg) is amended--
            (1) in subsection (b)(4), by striking ``3-year period'' and 
        inserting ``4-year period''; and
            (2) in subsection (i)(4)--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) $70,000,000 for calendar year 2001.''.

    (c) Further Extension of Medicare Subvention Project.--(1) 
Subsection (b)(4) of section 1896 of the Social Security Act (42 U.S.C. 
1395ggg) is amended by striking the period at the end and inserting the 
following: ``, except that the administering Secretaries may negotiate 
and (subject to section 701(f ) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001) enter into a new or revised 
agreement under paragraph (1)(A) to continue the project after the end 
of such period. If the project is so continued, the administering 
Secretaries may terminate the agreement under which the program operates 
after providing notice to Congress in accordance with subsection 
(k)(2)(B)(v).''.
    (2) Such section is further amended--
            (A) in the heading, by striking ``demonstration project'' 
        and inserting ``program'';
            (B) by amending paragraph (2) of subsection (a) to read as 
        follows:

    ``(2) Program.--The term `program' means the program carried out 
under this section.'';
            (C) by striking ``Demonstration Project'' and 
        ``demonstration project'' and ``project'' each place each 
        appears and inserting ``Program'', ``program'', and ``program'' 
        respectively ; and
                    (D) by striking ``demonstration'' in the heading of 
                subsection ( j)(1).

    (3) Subsection (i)(4) of such section is amended to read as follows:
            ``(4) Cap on amount.--The maximum aggregate expenditures 
        from the trust funds under this subsection pursuant to the 
        agreement entered into between the administering Secretaries 
        under subsection (b) for a fiscal year (before fiscal year 2006) 
        shall not exceed the amount agreed by the Secretaries to be the 
        amount that would have been expended from the trust funds on 
        beneficiaries who enroll in the program, had the program not 
        been established, plus the following:

[[Page 114 STAT. 1654A-178]]

                    ``(A) $35,000,000 for fiscal year 2002.
                    ``(B) $55,000,000 for fiscal year 2003.
                    ``(C) $75,000,000 for fiscal year 2004.
                    ``(D) $100,000,000 for fiscal year 2005.''.

    (d) Authorizing Program Expansion and Modifications.--(1) Paragraph 
(2) of subsection (b) of such section 1896 is amended to read as 
follows:
            ``(2) Location of sites.--Subject to subsection (k)(2)(B), 
        the program shall be conducted in any site that is designated 
        jointly by the administering Secretaries.''.

    (2) Subsection (d)(2) of such section is amended by inserting ``, or 
(subject to subsection (k)(2)(B)) such comparable requirements as are 
included in the agreement under subsection (b)(1)(A)'' after ``the 
following areas''.
    (3) Subsection (i) of such section is amended--
            (A) in paragraph (2), by inserting ``subject to paragraph 
        (4),'' after ``paragraph (1)''; and
            (B) by striking paragraph (4) and inserting the following:
            ``(4) Modification of payment methodology.--The 
        administering Secretaries may, subject to subsection (k)(2)(B), 
        modify the payment methodology provided under paragraphs (1) and 
        (2) so long as the amount of the reimbursement provided to the 
        Secretary of Defense fully reimburses the Department of Defense 
        for its cost of providing services under the program but does 
        not exceed an amount that is estimated to be equivalent to the 
        amount that otherwise would have been expended under this title 
        for such services if provided other than under the program (not 
        including amounts described in paragraph (2)). Such limiting 
        amount may be based for any site on the amount that would be 
        payable to Medicare+Choice organizations under part C for the 
        area of the site or the amounts that would be payable under 
        parts A and B.''.

    (e) Change in Reports.--Paragraph (2) of subsection (k) of such 
section 1896 is amended to read as follows:
            ``(2) Reports on program operation and changes.--
                    ``(A) Annual report.--The administering Secretaries 
                shall submit to the Committees on Armed Services and 
                Finance of the Senate and the Committees on Armed 
                Services and Ways and Means of the House of 
                Representatives an annual report on the program and its 
                impact on costs and the provision of health services 
                under this title and title 10, United States Code.
                    ``(B) Before making certain program changes.--The 
                administering Secretaries shall submit to such 
                Committees a report at least 60 days before--
                          ``(i) changing the designation of a site under 
                      subsection (b)(2);
                          ``(ii) applying comparable requirements under 
                      subsection (d)(2);
                          ``(iii) making significant changes in payment 
                      methodology or amounts under subsection (i)(4);
                          ``(iv) making other significant changes in the 
                      operation of the program; or
                          ``(v) terminating the agreement under the 
                      second sentence of subsection (b)(4).

[[Page 114 STAT. 1654A-179]]

                    ``(C) Explanation.--Each report under subparagraph 
                (B) shall include justifications for the changes or 
                termination to which the report refers.''.

    (f ) Conditional Effective Date.--(1) Upon negotiating an agreement 
under the amendment made by subsection (c)(1), the Secretary of Defense 
and the Secretary of Health and Human Services shall jointly transmit a 
notification of the proposed agreement to the Committee on Armed 
Services and the Committee on Finance of the Senate and the Committee on 
Armed Services and the Committee on Ways and Means of the House of 
Representatives, and shall include with the transmittal a copy of the 
proposed agreement and all related agreements and supporting documents.
    (2) Such proposed agreement shall take effect, and the amendments 
made by subsections (c)(2), (c)(3), (d), and (e) shall take effect, on 
such date as is provided for in such agreement and in an Act enacted 
after the date of the enactment of this Act.

SEC. 713. ACCRUAL FUNDING FOR HEALTH CARE FOR MEDICARE-ELIGIBLE RETIREES 
            AND DEPENDENTS.

    (a) Establishment of Fund.--(1) Part II of subtitle A of title 10, 
United States Code, is amended by inserting after chapter 55 the 
following new chapter:

  ``CHAPTER 56--DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH 
                                CARE FUND

``Sec.
``1111.    Establishment and purpose of Fund; definitions.
``1112.    Assets of Fund.
``1113.    Payments from the Fund.
``1114.    Board of Actuaries.
``1115.    Determination of contributions to the Fund.
``1116.    Payments into the Fund.
``1117.    Investment of assets of Fund.

``Sec. 1111. Establishment and purpose of Fund; definitions

    ``(a) There is established on the books of the Treasury a fund to be 
known as the Department of Defense Medicare-Eligible Retiree Health Care 
Fund (hereafter in this chapter referred to as the `Fund'), which shall 
be administered by the Secretary of the Treasury. The Fund shall be used 
for the accumulation of funds in order to finance on an actuarially 
sound basis liabilities of the Department of Defense under Department of 
Defense retiree health care programs for medicare-eligible 
beneficiaries.
    ``(b) In this chapter:
            ``(1) The term `Department of Defense retiree health care 
        programs for medicare-eligible beneficiaries' means the 
        provisions of this title or any other provision of law creating 
        entitlement to health care for a medicare-eligible member or 
        former member of the uniformed services entitled to retired or 
        retainer pay, or a medicare-eligible dependent of a member or 
        former member of the uniformed services entitled to retired or 
        retainer pay.
            ``(2) The term `medicare-eligible' means entitled to 
        benefits under part A of title XVIII of the Social Security Act 
        (42 U.S.C. 1395c et seq.).
            ``(3) The term `dependent' means a dependent (as such term 
        is defined in section 1072 of this title) described in section 
        1076(b)(1) of this title.

[[Page 114 STAT. 1654A-180]]

``Sec. 1112. Assets of Fund

    ``There shall be deposited into the Fund the following, which shall 
constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under section 1116 of this 
        title.
            ``(2) Any amount appropriated to the Fund.
            ``(3) Any return on investment of the assets of the Fund.

``Sec. 1113. Payments from the Fund

    ``(a) There shall be paid from the Fund amounts payable for 
Department of Defense retiree health care programs for medicare-eligible 
beneficiaries.
    ``(b) The assets of the Fund are hereby made available for payments 
under subsection (a).

``Sec. 1114. Board of Actuaries

    ``(a)(1) There is established in the Department of Defense a 
Department of Defense Medicare-Eligible Retiree Health Care Board of 
Actuaries (hereafter in this chapter referred to as the `Board'). The 
Board shall consist of three members who shall be appointed by the 
Secretary of Defense from among qualified professional actuaries who are 
members of the Society of Actuaries.
    ``(2)(A) Except as provided in subparagraph (B), the members of the 
Board shall serve for a term of 15 years, except that a member of the 
Board appointed to fill a vacancy occurring before the end of the term 
for which his predecessor was appointed shall only serve until the end 
of such term. A member may serve after the end of his term until his 
successor has taken office. A member of the Board may be removed by the 
Secretary of Defense for misconduct or failure to perform functions 
vested in the Board, and for no other reason.
    ``(B) Of the members of the Board who are first appointed under this 
paragraph, one each shall be appointed for terms ending five, ten, and 
15 years, respectively, after the date of appointment, as designated by 
the Secretary of Defense at the time of appointment.
    ``(3) A member of the Board who is not otherwise an employee of the 
United States is entitled to receive pay at the daily equivalent of the 
annual rate of basic pay of the highest rate of basic pay under the 
General Schedule of subchapter III of chapter 53 of title 5, for each 
day the member is engaged in the performance of duties vested in the 
Board, and is entitled to travel expenses, including a per diem 
allowance, in accordance with section 5703 of title 5.
    ``(b) The Board shall report to the Secretary of Defense annually on 
the actuarial status of the Fund and shall furnish its advice and 
opinion on matters referred to it by the Secretary.
    ``(c) The Board shall review valuations of the Fund under section 
1115(c) of this title and shall report periodically, not less than once 
every four years, to the President and Congress on the status of the 
Fund. The Board shall include in such reports recommendations for such 
changes as in the Board's judgment are necessary to protect the public 
interest and maintain the Fund on a sound actuarial basis.

[[Page 114 STAT. 1654A-181]]

``Sec. 1115. Determination of contributions to the Fund

    ``(a) The Board shall determine the amount that is the present value 
(as of October 1, 2002) of future benefits payable from the Fund that 
are attributable to service in the uniformed services performed before 
October 1, 2002. That amount is the original unfunded liability of the 
Fund. The Board shall determine the period of time over which the 
original unfunded liability should be liquidated and shall determine an 
amortization schedule for the liquidation of such liability over that 
period. Contributions to the Fund for the liquidation of the original 
unfunded liability in accordance with such schedule shall be made as 
provided in section 1116(b) of this title.
    ``(b)(1) The Secretary of Defense shall determine each year, in 
sufficient time for inclusion in budget requests for the following 
fiscal year, the total amount of Department of Defense contributions to 
be made to the Fund during that fiscal year under section 1116(a) of 
this title. That amount shall be the sum of the following:
            ``(A) The product of--
                    ``(i) the current estimate of the value of the 
                single level dollar amount to be determined under 
                subsection (c)(1)(A) at the time of the next actuarial 
                valuation under subsection (c); and
                    ``(ii) the expected average force strength during 
                that fiscal year for members of the uniformed services 
                on active duty (other than active duty for training) and 
                full-time National Guard duty (other than full-time 
                National Guard duty for training only).
            ``(B) The product of--
                    ``(i) the current estimate of the value of the 
                single level dollar amount to be determined under 
                subsection (c)(1)(B) at the time of the next actuarial 
                valuation under subsection (c); and
                    ``(ii) the expected average force strength during 
                that fiscal year for members of the Ready Reserve of the 
                uniformed services (other than members on full-time 
                National Guard duty other than for training) who are not 
                otherwise described in subparagraph (A)(ii).

    ``(2) The amount determined under paragraph (1) for any fiscal year 
is the amount needed to be appropriated to the Department of Defense for 
that fiscal year for payments to be made to the Fund during that year 
under section 1116(a) of this title. The President shall include not 
less than the full amount so determined in the budget transmitted to 
Congress for that fiscal year under section 1105 of title 31. The 
President may comment and make recommendations concerning any such 
amount.
    ``(c)(1) Not less often than every four years, the Secretary of 
Defense shall carry out an actuarial valuation of the Fund. Each such 
actuarial valuation shall include--
            ``(A) a determination (using the aggregate entry-age normal 
        cost method) of a single level dollar amount for members of the 
        uniformed services on active duty (other than active duty for 
        training) or full-time National Guard duty (other than full-time 
        National Guard duty for training only); and
            ``(B) a determination (using the aggregate entry-age normal 
        cost method) of a single level dollar amount for members of the 
        Ready Reserve of the uniformed services and other than

[[Page 114 STAT. 1654A-182]]

        members on full-time National Guard duty other than for 
        training) who are not otherwise described by subparagraph (A).

Such single level dollar amounts shall be used for the purposes of 
subsection (b) and section 1116(a) of this title.
    ``(2) If at the time of any such valuation there has been a change 
in benefits under the Department of Defense retiree health care programs 
for medicare-eligible beneficiaries that has been made since the last 
such valuation and such change in benefits increases or decreases the 
present value of amounts payable from the Fund, the Secretary of Defense 
shall determine an amortization methodology and schedule for the 
amortization of the cumulative unfunded liability (or actuarial gain to 
the Fund) created by such change and any previous such changes so that 
the present value of the sum of the amortization payments (or reductions 
in payments that would otherwise be made) equals the cumulative increase 
(or decrease) in the present value of such amounts.
    ``(3) If at the time of any such valuation the Secretary of Defense 
determines that, based upon changes in actuarial assumptions since the 
last valuation, there has been an actuarial gain or loss to the Fund, 
the Secretary shall determine an amortization methodology and schedule 
for the amortization of the cumulative gain or loss to the Fund created 
by such change in assumptions and any previous such changes in 
assumptions through an increase or decrease in the payments that would 
otherwise be made to the Fund.
    ``(4) If at the time of any such valuation the Secretary of Defense 
determines that, based upon the Fund's actuarial experience (other than 
resulting from changes in benefits or actuarial assumptions) since the 
last valuation, there has been an actuarial gain or loss to the Fund, 
the Secretary shall determine an amortization methodology and schedule 
for the amortization of the cumulative gain or loss to the Fund created 
by such actuarial experience and any previous actuarial experience 
through an increase or decrease in the payments that would otherwise be 
made to the Fund.
    ``(5) Contributions to the Fund in accordance with amortization 
schedules under paragraphs (2), (3), and (4) shall be made as provided 
in section 1116(b) of this title.
    ``(d) All determinations under this section shall be made using 
methods and assumptions approved by the Board of Actuaries (including 
assumptions of interest rates and medical inflation) and in accordance 
with generally accepted actuarial principles and practices.
    ``(e) The Secretary of Defense shall provide for the keeping of such 
records as are necessary for determining the actuarial status of the 
Fund.

``Sec. 1116. Payments into the Fund

    ``(a) The Secretary of Defense shall pay into the Fund at the end of 
each month as the Department of Defense contribution to the Fund for 
that month the amount that is the sum of the following:
            ``(1) The product of--
                    ``(A) the monthly dollar amount determined using all 
                the methods and assumptions approved for the most recent 
                (as of the first day of the current fiscal year) 
                actuarial valuation under section 1115(c)(1)(A) of this 
                title (except

[[Page 114 STAT. 1654A-183]]

                that any statutory change in the Department of Defense 
                retiree health care programs for medicare-eligible 
                beneficiaries that is effective after the date of that 
                valuation and on or before the first day of the current 
                fiscal year shall be used in such determination); and
                    ``(B) the total end strength for that month for 
                members of the uniformed services on active duty (other 
                than active duty for training) and full-time National 
                Guard duty (other than full-time National Guard duty for 
                training only).
            ``(2) The product of--
                    ``(A) the level monthly dollar amount determined 
                using all the methods and assumptions approved for the 
                most recent (as of the first day of the current fiscal 
                year) actuarial valuation under section 1115(c)(1)(B) of 
                this title (except that any statutory change in the 
                Department of Defense retiree health care programs for 
                medicare-eligible beneficiaries that is effective after 
                the date of that valuation and on or before the first 
                day of the current fiscal year shall be used in such 
                determination); and
                    ``(B) the total end strength for that month for 
                members of the Ready Reserve of the uniformed services 
                other than members on full-time National Guard duty 
                other than for training) who are not otherwise described 
                in paragraph (1)(B). Amounts paid into the Fund under 
                this subsection shall be paid from funds available for 
                the Defense Health Program.

    ``(b)(1) At the beginning of each fiscal year the Secretary of the 
Treasury shall promptly pay into the Fund from the General Fund of the 
Treasury the amount certified to the Secretary by the Secretary of 
Defense under paragraph (3). Such payment shall be the contribution to 
the Fund for that fiscal year required by sections 1115(a) and 1115(c) 
of this title.
    ``(2) At the beginning of each fiscal year the Secretary of Defense 
shall determine the sum of the following:
            ``(A) 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.
            ``(B) 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.
            ``(C) 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.
            ``(D) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 111(c)(4) of this title 
        for the amortization of any cumulative actuarial gain or loss to 
        the Fund resulting from actuarial experience.

    ``(3) The Secretary of Defense shall promptly certify the amount 
determined under paragraph (2) each year to the Secretary of the 
Treasury.

[[Page 114 STAT. 1654A-184]]

``Sec. 1117. Investment of assets of Fund

    ``The Secretary of the Treasury shall invest such portion of the 
Fund as is not in the judgment of the Secretary of Defense required to 
meet current withdrawals. Such investments shall be in public debt 
securities with maturities suitable to the needs of the Fund, as 
determined by the Secretary of Defense, and bearing interest at rates 
determined by the Secretary of the Treasury, taking into consideration 
current market yields on outstanding marketable obligations of the 
United States of comparable maturities. The income on such investments 
shall be credited to and form a part of the Fund.''.
    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of title 10, United States Code, 
are amended by inserting after the item relating to chapter 55 the 
following new item:

``56. Department of Defense Medicare-Eligible Retiree Health Care 
    Fund........................................................1111.''.

    (b) Delayed Effective Dates for Certain Provisions.--(1) Sections 
1113 and 1116 of title 10, United States Code (as added by subsection 
(a)), shall take effect on October 1, 2002.
    (2) Section 1115 of such title (as added by such subsection) shall 
take effect on October 1, 2001.

                       Subtitle C--TRICARE Program

SEC. 721. IMPROVEMENT OF ACCESS TO HEALTH CARE UNDER THE TRICARE 
            PROGRAM.

    (a) Waiver of Nonavailability Statement or Preauthorization.--In the 
case of a covered beneficiary under chapter 55 of title 10, United 
States Code, who is enrolled in TRICARE Standard, the Secretary of 
Defense may not require with regard to authorized health care services 
(other than mental health services) under any new contract for the 
provision of health care services under such chapter that the 
beneficiary--
            (1) obtain a nonavailability statement or preauthorization 
        from a military medical treatment facility in order to receive 
        the services from a civilian provider; or
            (2) obtain a nonavailability statement for care in 
        specialized treatment facilities outside the 200-mile radius of 
        a military medical treatment facility.

    (b) Notice.--The Secretary may require that the covered beneficiary 
inform the primary care manager of the beneficiary of any health care 
received from a civilian provider or in a specialized treatment 
facility.
    (c) Exceptions.--Subsection (a) shall not apply if--
            (1) the Secretary demonstrates significant costs would be 
        avoided by performing specific procedures at the affected 
        military medical treatment facilities;
            (2) the Secretary determines that a specific procedure must 
        be provided at the affected military medical treatment facility 
        to ensure the proficiency levels of the practitioners at the 
        facility; or
            (3) the lack of nonavailability statement data would 
        significantly interfere with TRICARE contract administration.

    (d) Effective Date.--This section shall take effect on October 1, 
2001.

[[Page 114 STAT. 1654A-185]]

SEC. 722. ADDITIONAL BENEFICIARIES UNDER TRICARE PRIME REMOTE PROGRAM IN 
            THE CONTINENTAL UNITED STATES.

    (a) Coverage of Other Uniformed Services.--(1) Section 1074(c) of 
title 10, United States Code, is amended--
            (A) by striking ``armed forces'' each place it appears, 
        except in paragraph (3)(A), and inserting ``uniformed 
        services'';
            (B) in paragraph (1), by inserting after ``military 
        department'' in the first sentence the following: ``, the 
        Department of Transportation (with respect to the Coast Guard 
        when it is not operating as a service in the Navy), or the 
        Department of Health and Human Services (with respect to the 
        National Oceanic and Atmospheric Administration and the Public 
        Health Service)'';
            (C) in paragraph (2), by adding at the end the following:

    ``(C) The Secretary of Defense shall consult with the other 
administering Secretaries in the administration of this paragraph.''; 
and
            (D) in paragraph (3)(A), by striking ``The Secretary of 
        Defense may not require a member of the armed forces described 
        in subparagraph (B)'' and inserting ``A member of the uniformed 
        services described in subparagraph (B) may not be required''.

    (2)(A) Subsections (b), (c), and (d)(3) of section 731 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 1811; 10 U.S.C. 1074 note) are amended by striking ``Armed 
Forces'' and inserting ``uniformed services''.
    (B) Subsection (b) of such section is further amended by adding at 
the end the following:
    ``(4) The Secretary of Defense shall consult with the other 
administering Secretaries in the administration of this subsection.''.
    (C) Subsection (f ) of such section is amended by adding at the end 
the following:
            ``(3) The terms `uniformed services' and `administering 
        Secretaries' have the meanings given those terms in section 1072 
        of title 10, United States Code.''.

    (3) Section 706(b) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 684) is amended by 
striking ``Armed Forces'' and inserting ``uniformed services (as defined 
in section 1072(1) of title 10, United States Code)''.
    (b) Coverage of Immediate Family.--(1) Section 1079 of title 10, 
United States Code, is amended by adding at the end the following:
    ``(p)(1) Subject to such exceptions as the Secretary of Defense 
considers necessary, coverage for medical care under this section for 
the dependents referred to in subsection (a) of a member of the 
uniformed services referred to in section 1074(c)(3) of this title who 
are residing with the member, and standards with respect to timely 
access to such care, shall be comparable to coverage for medical care 
and standards for timely access to such care under the managed care 
option of the TRICARE program known as TRICARE Prime.
    ``(2) The Secretary of Defense shall enter into arrangements with 
contractors under the TRICARE program or with other appropriate 
contractors for the timely and efficient processing of claims under this 
subsection.

[[Page 114 STAT. 1654A-186]]

    ``(3) The Secretary of Defense shall consult with the other 
administering Secretaries in the administration of this subsection.''.

    (2) Section 731(b) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1811; 10 U.S.C. 1074 
note) is amended--
            (A) in paragraph (1), by adding at the end the following: 
        ``A dependent of the member, as described in subparagraph (A), 
        (D), or (I) of section 1072(2) of title 10, United States Code, 
        who is residing with the member shall have the same entitlement 
        to care and to waiver of charges as the member.''; and
            (B) in paragraph (2), by inserting ``or dependent of the 
        member, as the case may be,'' after ``(2) A member''.

    (c) Effective Dates; Applicability.--(1) The amendments made by 
subsections (a)(1) and (b)(1) shall take effect on October 1, 2001.
    (2) The amendments made by subsection (a)(2), with respect to 
members of the uniformed services, and the amendments made by subsection 
(b)(2), with respect to dependents of members, shall take effect on the 
date of the enactment of this Act and shall expire with respect to a 
member or the dependents of a member, respectively, on the later of the 
following:
            (A) The date that is one year after the date of the 
        enactment of this Act.
            (B) The date on which the policies required by the 
        amendments made by subsection (a)(1) or (b)(1) are implemented 
        with respect to the coverage of medical care for and provision 
        of such care to the member or dependents, respectively.

    (3) Section 731(b)(3) of Public Law 105-85 does not apply to a 
member of the Coast Guard, the National Oceanic and Atmospheric 
Administration, or the Commissioned Corps of the Public Health Service, 
or to a dependent of a member of a uniformed service.

SEC. 723. MODERNIZATION OF TRICARE BUSINESS PRACTICES AND INCREASE OF 
            USE OF MILITARY TREATMENT FACILITIES.

    (a) Requirement To Implement Internet-Based System.--Not later than 
October 1, 2001, the Secretary of Defense shall implement a system to 
simplify and make accessible through the use of the Internet, through 
commercially available systems and products, critical administrative 
processes within the military health care system and the TRICARE 
program. The purposes of the system shall be to enhance efficiency, 
improve service, and achieve commercially recognized standards of 
performance.
    (b) Elements of System.--The system required by subsection (a)--
            (1) shall comply with patient confidentiality and security 
        requirements, and incorporate data requirements, that are 
        currently widely used by insurers under medicare and commercial 
        insurers;
            (2) shall be designed to achieve improvements with respect 
        to--
                    (A) the availability and scheduling of appointments;
                    (B) the filing, processing, and payment of claims;
                    (C) marketing and information initiatives;
                    (D) the continuation of enrollments without 
                expiration;
                    (E) the portability of enrollments nationwide;

[[Page 114 STAT. 1654A-187]]

                    (F) education of beneficiaries regarding the 
                military health care system and the TRICARE program; and
                    (G) education of health care providers regarding 
                such system and program; and
            (3) may be implemented through a contractor under TRICARE 
        Prime.

    (c) Areas of Implementation.--The Secretary shall implement the 
system required by subsection (a) in at least one region under the 
TRICARE program.
    (d) Plan for Improved Portability of Benefits.--Not later than March 
15, 2001, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a plan to 
provide portability and reciprocity of benefits for all enrollees under 
the TRICARE program throughout all TRICARE regions.
    (e) Increase of Use of Military Medical Treatment Facilities.--The 
Secretary shall initiate a program to maximize the use of military 
medical treatment facilities by improving the efficiency of health care 
operations in such facilities.
    (f ) Definition.--In this section the term ``TRICARE program'' has 
the meaning given such term in section 1072 of title 10, United States 
Code.

SEC. 724. EXTENSION OF TRICARE MANAGED CARE SUPPORT CONTRACTS.

    (a) Authority.--Notwithstanding any other provision of law and 
subject to subsection (b), any TRICARE managed care support contract in 
effect, or in the final stages of acquisition, on September 30, 1999, 
may be extended for four years.
    (b) Conditions.--Any extension of a contract under subsection (a)--
            (1) may be made only if the Secretary of Defense determines 
        that it is in the best interest of the United States to do so; 
        and
            (2) shall be based on the price in the final best and final 
        offer for the last year of the existing contract as adjusted for 
        inflation and other factors mutually agreed to by the contractor 
        and the Federal Government.

SEC. 725. REPORT ON PROTECTIONS AGAINST HEALTH CARE PROVIDERS SEEKING 
            DIRECT REIMBURSEMENT FROM MEMBERS OF THE UNIFORMED SERVICES.

    Not later than January 31, 2001, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report recommending practices to discourage or 
prohibit health care providers under the TRICARE program, and 
individuals or entities working on behalf of such providers, from 
seeking direct reimbursement from members of the uniformed services or 
their dependents for health care received by such members or dependents.

SEC. 726. VOLUNTARY TERMINATION OF ENROLLMENT IN TRICARE RETIREE DENTAL 
            PROGRAM.

    (a) Procedures.--Section 1076c of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (i) as subsection ( j); and
            (2) by inserting after subsection (h) the following new 
        subsection (i):

[[Page 114 STAT. 1654A-188]]

    ``(i) Voluntary Disenrollment.--(1) With respect to enrollment in 
the dental insurance plan established under subsection (a), the 
Secretary of Defense--
            ``(A) shall allow for a period of up to 30 days at the 
        beginning of the prescribed minimum enrollment period during 
        which an enrollee may disenroll; and
            ``(B) shall provide for limited circumstances under which 
        disenrollment shall be permitted during the prescribed 
        enrollment period, without jeopardizing the fiscal integrity of 
        the dental program.

    ``(2) The circumstances described in paragraph (1)(B) shall 
include--
            ``(A) a case in which a retired member, surviving spouse, or 
        dependent of a retired member who is also a Federal employee is 
        assigned to a location outside the jurisdiction of the dental 
        insurance plan established under subsection (a) that prevents 
        utilization of dental benefits under the plan;
            ``(B) a case in which a retired member, surviving spouse, or 
        dependent of a retired member is prevented by a serious medical 
        condition from being able to obtain benefits under the plan;
            ``(C) a case in which severe financial hardship would 
        result; and
            ``(D) any other circumstances which the Secretary considers 
        appropriate.

    ``(3) The Secretary shall establish procedures for timely decisions 
on requests for disenrollment under this section and for appeal to the 
TRICARE Management Activity of adverse decisions.''.
    (b) Clarifying Amendment.--The heading for subsection (f ) is 
amended by striking ``Termination'' and inserting ``Required 
Terminations''.

SEC. 727. CLAIMS PROCESSING IMPROVEMENTS.

    Beginning on the date of the enactment of this Act, the Secretary of 
Defense shall, to the maximum extent practicable, take all necessary 
actions to implement the following improvements with respect to 
processing of claims under the TRICARE program:
            (1) Use of the TRICARE encounter data information system 
        rather than the health care service record in maintaining 
        information on covered beneficiaries under chapter 55 of title 
        10, United States Code.
            (2) Elimination of all delays in payment of claims to health 
        care providers that may result from the development of the 
        health care service record or TRICARE encounter data 
        information.
            (3) Requiring all health care providers under the TRICARE 
        program that the Secretary determines are high-volume providers 
        to submit claims electronically.
            (4) Processing 50 percent of all claims by health care 
        providers and institutions under the TRICARE program by 
        electronic means.
            (5) Authorizing managed care support contractors under the 
        TRICARE program to require providers to access information on 
        the status of claims through the use of telephone automated 
        voice response units.

[[Page 114 STAT. 1654A-189]]

SEC. 728. PRIOR AUTHORIZATIONS FOR CERTAIN REFERRALS AND 
            NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.

    (a) Prohibition Regarding Prior Authorization for Referrals.--(1) 
Chapter 55 of title 10, United States Code, is amended by inserting 
after section 1095e the following new section:

``Sec. 1095f. TRICARE program: referrals for specialty health care

    ``The Secretary of Defense shall ensure that no contract for managed 
care support under the TRICARE program includes any requirement that a 
managed care support contractor require a primary care or specialty care 
provider to obtain prior authorization before referring a patient to a 
specialty care provider that is part of the network of health care 
providers or institutions of the contractor.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1095e the 
following new item:

``1095f. TRICARE program: referrals for specialty health care.''.

    (b) Report.--Not later than February 1, 2001, the Comptroller 
General shall submit to Congress a report on the financial and 
management implications of eliminating the requirement to obtain 
nonavailability-of-health-care statements under section 1080 of title 
10, United States Code.
    (c) Effective Date.--Section 1095f of title 10, United States Code, 
as added by subsection (a), shall apply with respect to a TRICARE 
managed care support contract entered into by the Department of Defense 
after the date of the enactment of this Act.

                   Subtitle D--Demonstration Projects

SEC. 731. DEMONSTRATION PROJECT FOR EXPANDED ACCESS TO MENTAL HEALTH 
            COUNSELORS.

    (a) Requirement To Conduct Demonstration Project.--The Secretary of 
Defense shall conduct a demonstration project under which licensed and 
certified professional mental health counselors who meet eligibility 
requirements for participation as providers under the Civilian Health 
and Medical Program of the Uniformed Services (hereafter in this section 
referred to as ``CHAMPUS'') or the TRICARE program may provide services 
to covered beneficiaries under chapter 55 of title 10, United States 
Code, without referral by physicians or adherence to supervision 
requirements.
    (b) Duration and Location of Project.--The Secretary shall conduct 
the demonstration project required by subsection (a)--
            (1) during the 2-year period beginning October 1, 2001; and
            (2) in one established TRICARE region.

    (c) Regulations.--The Secretary shall prescribe regulations 
regarding participation in the demonstration project required by 
subsection (a).
    (d) Plan for Project.--Not later than March 31, 2001, the Secretary 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a plan to carry out the demonstration project. 
The plan shall include, but not be limited to, a description of the 
following:

[[Page 114 STAT. 1654A-190]]

            (1) The TRICARE region in which the project will be 
        conducted.
            (2) The estimated funds required to carry out the 
        demonstration project.
            (3) The criteria for determining which professional mental 
        health counselors will be authorized to participate under the 
        demonstration project.
            (4) The plan of action, including critical milestone dates, 
        for carrying out the demonstration project.

    (e) Report.--Not later than February 1, 2003, the Secretary shall 
submit to Congress a report on the demonstration project carried out 
under this section. The report shall include the following:
            (1) A description of the extent to which expenditures for 
        reimbursement of licensed or certified professional mental 
        health counselors change as a result of allowing the independent 
        practice of such counselors.
            (2) Data on utilization and reimbursement regarding non-
        physician mental health professionals other than licensed or 
        certified professional mental health counselors under CHAMPUS 
        and the TRICARE program.
            (3) Data on utilization and reimbursement regarding 
        physicians who make referrals to, and supervise, mental health 
        counselors.
            (4) A description of the administrative costs incurred as a 
        result of the requirement for documentation of referral to 
        mental health counselors and supervision activities for such 
        counselors.
            (5) For each of the categories described in paragraphs (1) 
        through (4), a comparison of data for a 1-year period for the 
        area in which the demonstration project is being implemented 
        with corresponding data for a similar area in which the 
        demonstration project is not being implemented.
            (6) A description of the ways in which allowing for 
        independent reimbursement of licensed or certified professional 
        mental health counselors affects the confidentiality of mental 
        health and substance abuse services for covered beneficiaries 
        under CHAMPUS and the TRICARE program.
            (7) A description of the effect, if any, of changing 
        reimbursement policies on the health and treatment of covered 
        beneficiaries under CHAMPUS and the TRICARE program, including a 
        comparison of the treatment outcomes of covered beneficiaries 
        who receive mental health services from licensed or certified 
        professional mental health counselors acting under physician 
        referral and supervision, other non-physician mental health 
        providers recognized under CHAMPUS and the TRICARE program, and 
        physicians, with treatment outcomes under the demonstration 
        project allowing independent practice of professional counselors 
        on the same basis as other non-physician mental health 
        providers.
            (8) The effect of policies of the Department of Defense on 
        the willingness of licensed or certified professional mental 
        health counselors to participate as health care providers in 
        CHAMPUS and the TRICARE program.
            (9) Any policy requests or recommendations regarding mental 
        health counselors made by health care plans and managed care 
        organizations participating in CHAMPUS or the TRICARE program.

[[Page 114 STAT. 1654A-191]]

SEC. 732. TELERADIOLOGY DEMONSTRATION PROJECT.

    (a) Authority To Conduct Project.--(1) The Secretary of Defense may 
conduct a demonstration project for the purposes of increasing 
efficiency of operations with respect to teleradiology at military 
medical treatment facilities, supporting remote clinics, and increasing 
coordination with respect to teleradiology between such facilities and 
clinics. Under the project, a military medical treatment facility and 
each clinic supported by such facility shall be linked by a digital 
radiology network through which digital radiology X-rays may be sent 
electronically from clinics to the military medical treatment facility.
    (2) The demonstration project may be conducted at several 
multispecialty tertiary-care military medical treatment facilities 
affiliated with a university medical school. One of such facilities 
shall be supported by at least 5 geographically dispersed remote clinics 
of the Departments of the Army, Navy, and Air Force, and clinics of the 
Department of Veterans Affairs and the Coast Guard. Another of such 
facilities shall be in an underserved rural geographic region served 
under established telemedicine contracts between the Department of 
Defense, the Department of Veterans Affairs, and a local university.
    (b) Duration of Project.--The Secretary shall conduct the project 
during the 2-year period beginning on the date of the enactment of this 
Act.

SEC. 733. HEALTH CARE MANAGEMENT DEMONSTRATION PROGRAM.

    (a) Establishment.--The Secretary of Defense shall carry out a 
demonstration program on health care management to explore opportunities 
for improving the planning, programming, budgeting systems, and 
management of the Department of Defense health care system.
    (b) Test Models.--Under the demonstration program, the Secretary 
shall test the use of the following planning and management models:
            (1) A health care simulation model for studying alternative 
        delivery policies, processes, organizations, and technologies.
            (2) A health care simulation model for studying long term 
        disease management.

    (c) Demonstration Sites.--The Secretary shall test each model 
separately at one or more sites.
    (d) Period for Program.--The demonstration program shall begin not 
later than 180 days after the date of the enactment of this Act and 
shall terminate on December 31, 2001.
    (e) Reports.--The Secretary of Defense shall submit a report on the 
demonstration program to the Committees on Armed Services of the Senate 
and the House of Representatives not later than March 15, 2002. The 
report shall include the Secretary's assessment of the value of 
incorporating the use of the tested planning and management models 
throughout the planning, programming, budgeting systems, and management 
of the Department of Defense health care system.
    (f ) Funding.--Of the amount authorized to be appropriated under 
section 301(22), $6,000,000 shall be available for the demonstration 
program under this section.

[[Page 114 STAT. 1654A-192]]

    Subtitle E--Joint Initiatives With Department of Veterans Affairs

SEC. 741. VA-DOD SHARING AGREEMENTS FOR HEALTH SERVICES.

    (a) Primacy of Sharing Agreements.--The Secretary of Defense shall--
            (1) give full force and effect to any agreement into which 
        the Secretary or the Secretary of a military department entered 
        under section 8111 of title 38, United States Code, or under 
        section 1535 of title 31, United States Code, which was in 
        effect on September 30, 1999; and
            (2) ensure that the Secretary of the military department 
        concerned directly reimburses the Secretary of Veterans Affairs 
        for any services or resources provided under such agreement in 
        accordance with the terms of such agreement, including terms 
        providing for reimbursement from funds available for that 
        military department.

    (b) Modification or Termination.--Any agreement described in 
subsection (a) shall remain in effect in accordance with such subsection 
unless, during the 12-month period following the date of the enactment 
of this Act, such agreement is modified or terminated in accordance with 
the terms of such agreement.

SEC. 742. PROCESSES FOR PATIENT SAFETY IN MILITARY AND VETERANS HEALTH 
            CARE SYSTEMS.

    (a) Error Tracking Process.--The Secretary of Defense shall 
implement a centralized process for reporting, compilation, and analysis 
of errors in the provision of health care under the defense health 
program that endanger patients beyond the normal risks associated with 
the care and treatment of such patients. To the extent practicable, that 
process shall emulate the system established by the Secretary of 
Veterans Affairs for reporting, compilation, and analysis of errors in 
the provision of health care under the Department of Veterans Affairs 
health care system that endanger patients beyond such risks.
    (b) Sharing of Information.--The Secretary of Defense and the 
Secretary of Veterans Affairs--
            (1) shall share information regarding the designs of systems 
        or protocols established to reduce errors in the provision of 
        health care described in subsection (a); and
            (2) shall develop such protocols as the Secretaries consider 
        necessary for the establishment and administration of effective 
        processes for the reporting, compilation, and analysis of such 
        errors.

SEC. 743. COOPERATION IN DEVELOPING PHARMACEUTICAL IDENTIFICATION 
            TECHNOLOGY.

    The Secretary of Defense and the Secretary of Veterans Affairs shall 
cooperate in developing systems for the use of bar codes for the 
identification of pharmaceuticals in the health care programs of the 
Department of Defense and the Department of Veterans Affairs. In any 
case in which a common pharmaceutical is used in such programs, the bar 
codes for those pharmaceuticals shall, to the maximum extent 
practicable, be identical.

[[Page 114 STAT. 1654A-193]]

                        Subtitle F--Other Matters

SEC. 751. MANAGEMENT OF ANTHRAX VACCINE IMMUNIZATION PROGRAM.

    (a) System and Procedures for Tracking Separations.--(1) Chapter 59 
of title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 1178. System and procedures for tracking separations resulting 
                        from refusal to participate in anthrax vaccine 
                        immunization program

    ``(a) Requirement To Establish System.--The Secretary of each 
military department shall establish a system for tracking, recording, 
and reporting separations of members of the armed forces under the 
Secretary's jurisdiction that result from procedures initiated as a 
result of a refusal to participate in the anthrax vaccine immunization 
program.
    ``(b) Report.--The Secretary of Defense shall consolidate the 
information recorded under the system described in subsection (a) and 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives not later than April 1 of each year a report on 
such information. Each such report shall include a description of--
            ``(1) the number of members separated, categorized by 
        military department, grade, and active-duty or reserve status; 
        and
            ``(2) any other information determined appropriate by the 
        Secretary.''.

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

``1178. System and procedures for tracking separations resulting from 
           refusal to participate in anthrax vaccine immunization 
           program.''.

    (b) Procedures for Exemptions; Monitoring Adverse Reactions.--(1) 
Chapter 55 of such title is amended by adding at the end the following 
new section:

``Sec. 1110. Anthrax vaccine immunization program; procedures for 
                        exemptions and monitoring reactions

    ``(a) Procedures for Medical and Administrative Exemptions.--(1) The 
Secretary of Defense shall establish uniform procedures under which 
members of the armed forces may be exempted from participating in the 
anthrax vaccine immunization program for either administrative or 
medical reasons.
    ``(2) The Secretaries of the military departments shall provide for 
notification of all members of the armed forces of the procedures 
established pursuant to paragraph (1).
    ``(b) System for Monitoring Adverse Reactions.--(1) The Secretary 
shall establish a system for monitoring adverse reactions of members of 
the armed forces to the anthrax vaccine. That system shall include the 
following:
            ``(A) Independent review of Vaccine Adverse Event Reporting 
        System reports.
            ``(B) Periodic surveys of personnel to whom the vaccine is 
        administered.

[[Page 114 STAT. 1654A-194]]

            ``(C) A continuing longitudinal study of a pre-identified 
        group of members of the armed forces (including men and women 
        and members from all services).
            ``(D) Active surveillance of a sample of members to whom the 
        anthrax vaccine has been administered that is sufficient to 
        identify, at the earliest opportunity, any patterns of adverse 
        reactions, the discovery of which might be delayed by reliance 
        solely on the Vaccine Adverse Event Reporting System.

    ``(2) The Secretary may extend or expand any ongoing or planned 
study or analysis of trends in adverse reactions of members of the armed 
forces to the anthrax vaccine in order to meet any of the requirements 
in paragraph (1).
    ``(3) The Secretary shall establish guidelines under which members 
of the armed forces who are determined by an independent expert panel to 
be experiencing unexplained adverse reactions may obtain access to a 
Department of Defense Center of Excellence treatment facility for 
expedited treatment and follow up.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1110. Anthrax vaccine immunization program; procedures for exemptions 
           and monitoring reactions.''.

    (c) Emergency Essential Employees.--(1) Chapter 81 of such title is 
amended by inserting after section 1580 the following new section:

``Sec. 1580a. Emergency essential employees: notification of required 
                        participation in anthrax vaccine immunization 
                        program

    ``The Secretary of Defense shall--
            ``(1) prescribe regulations for the purpose of ensuring that 
        any civilian employee of the Department of Defense who is 
        determined to be an emergency essential employee and who is 
        required to participate in the anthrax vaccine immunization 
        program is notified of the requirement to participate in the 
        program and the consequences of a decision not to participate; 
        and
            ``(2) ensure that any individual who is being considered for 
        a position as such an employee is notified of the obligation to 
        participate in the program before being offered employment in 
        such position.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1580 the 
following new item:

``1580a. Emergency essential employees: notification of required 
           participation in anthrax vaccine immunization program.''.

    (d) Comptroller General Report.--(1) Not later than April 1, 2002, 
the Comptroller General shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report on the effect of 
the Department of Defense anthrax vaccine immunization program on the 
recruitment and retention of active duty and reserve military personnel 
and civilian personnel of the Department of Defense. The study shall 
cover the period beginning on the date of the enactment of this Act and 
ending on December 31, 2001.
    (2) The Comptroller General shall include in the report required by 
paragraph (1) a description of any personnel actions (including

[[Page 114 STAT. 1654A-195]]

transfer, termination, or reassignment of any personnel) taken as a 
result of the refusal of any civilian employee of the Department of 
Defense to participate in the anthrax vaccine immunization program.
    (e) Deadlines for Establishment and Implementation.--The Secretary 
of Defense shall--
            (1) not later than April 1, 2001, establish the uniform 
        procedures for exemption from participation in the anthrax 
        vaccine immunization program of the Department of Defense 
        required under subsection (a) of section 1110 of title 10, 
        United States Code (as added by subsection (b));
            (2) not later than July 1, 2001, establish the system for 
        monitoring adverse reactions of members of the Armed Forces to 
        the anthrax vaccine required under subsection (b)(1) of such 
        section;
            (3) not later than April 1, 2001, establish the guidelines 
        under which members of the Armed Forces may obtain access to a 
        Department of Defense Center of Excellence treatment facility 
        for expedited treatment and follow up required under subsection 
        (b)(3) of such section; and
            (4) not later than July 1, 2001, prescribe the regulations 
        regarding emergency essential employees of the Department of 
        Defense required under subsection (a) of section 1580a of such 
        title (as added by subsection(c)).

SEC. 752. ELIMINATION OF COPAYMENTS FOR IMMEDIATE FAMILY.

    (a) No Copayment for Immediate Family.--Section 1097a of title 10, 
United States Code, is amended--
            (1) by redesignating subsection (e) as subsection (f ); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):

    ``(e) No Copayment for Immediate Family.--No copayment shall be 
charged a member for care provided under TRICARE Prime to a dependent of 
a member of the uniformed services described in subparagraph (A), (D), 
or (I) of section 1072 of this title.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect 180 days after the date of the enactment of this Act, and 
shall apply with respect to care provided on or after that date.

SEC. 753. MEDICAL INFORMATICS.

    (a) Additional Matters for Annual Report on Medical Informatics 
Advisory Committee.--Section 723(d)(5) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 
697; 10 U.S.C. 1071 note) is amended to read as follows:
    ``(5) The Secretary of Defense shall submit to Congress an annual 
report on medical informatics. The report shall include a discussion of 
the following matters:
            ``(A) The activities of the Committee.
            ``(B) The coordination of development, deployment, and 
        maintenance of health care informatics systems within the 
        Federal Government, and between the Federal Government and the 
        private sector.
            ``(C) The progress or growth occurring in medical 
        informatics.

[[Page 114 STAT. 1654A-196]]

            ``(D) How the TRICARE program and the Department of Veterans 
        Affairs health care system can use the advancement of knowledge 
        in medical informatics to raise the standards of health care and 
        treatment and the expectations for improving health care and 
        treatment.''.

    (b) Limitation on Fiscal Year 2001 Funding for Pharmaceuticals-
Related Medical Informatics.--Of the funds authorized to be appropriated 
under section 301(22), any amounts used for pharmaceuticals-related 
informatics may be used only for the following:
            (1) Commencement of the implementation of a new computerized 
        medical record, including an automated entry order system for 
        pharmaceuticals and an infrastructure network that is compliant 
        with the provisions enacted in the Health Insurance Portability 
        and Accountability Act of 1996 (Public Law 104-191; 110 Stat. 
        1936), to make all relevant clinical information on 
        beneficiaries under the Defense Health Program available when 
        needed.
            (2) An integrated pharmacy system under the Defense Health 
        Program that creates a single profile for all pharmaceuticals 
        for such beneficiaries prescribed at military medical treatment 
        facilities or private pharmacies that are part of the Department 
        of Defense pharmacy network.

SEC. 754. PATIENT CARE REPORTING AND MANAGEMENT SYSTEM.

    (a) Establishment.--The Secretary of Defense shall establish a 
patient care error reporting and management system.
    (b) Purposes of System.--The purposes of the system are as follows:
            (1) To study the occurrences of errors in the patient care 
        provided under chapter 55 of title 10, United States Code.
            (2) To identify the systemic factors that are associated 
        with such occurrences.
            (3) To provide for action to be taken to correct the 
        identified systemic factors.

    (c) Requirements for System.--The patient care error reporting and 
management system shall include the following:
            (1) A hospital-level patient safety center, within the 
        quality assurance department of each health care organization of 
        the Department of Defense, to collect, assess, and report on the 
        nature and frequency of errors related to patient care.
            (2) For each health care organization of the Department of 
        Defense and for the entire Defense health program, patient 
        safety standards that are necessary for the development of a 
        full understanding of patient safety issues in each such 
        organization and the entire program, including the nature and 
        types of errors and the systemic causes of the errors.
            (3) Establishment of a Department of Defense Patient Safety 
        Center within the Armed Forces Institute of Pathology, which 
        shall have the following missions:
                    (A) To analyze information on patient care errors 
                that is submitted to the Center by each military health 
                care organization.
                    (B) To develop action plans for addressing patterns 
                of patient care errors.
                    (C) To execute those action plans to mitigate and 
                control errors in patient care with a goal of ensuring 
                that

[[Page 114 STAT. 1654A-197]]

                the health care organizations of the Department of 
                Defense provide highly reliable patient care with 
                virtually no error.
                    (D) To provide, through the Assistant Secretary of 
                Defense for Health Affairs, to the Agency for Healthcare 
                Research and Quality of the Department of Health and 
                Human Services any reports that the Assistant Secretary 
                determines appropriate.
                    (E) To review and integrate processes for reducing 
                errors associated with patient care and for enhancing 
                patient safety.
                    (F) To contract with a qualified and objective 
                external organization to manage the national patient 
                safety database of the Department of Defense.

    (d) MedTeams Program.--The Secretary shall expand the health care 
team coordination program to integrate that program into all Department 
of Defense health care operations. In carrying out this subsection, the 
Secretary shall take the following actions:
            (1) Establish not less than two Centers of Excellence for 
        the development, validation, proliferation, and sustainment of 
        the health care team coordination program, one of which shall 
        support all fixed military health care organizations, the other 
        of which shall support all combat casualty care organizations.
            (2) Deploy the program to all fixed and combat casualty care 
        organizations of each of the Armed Forces, at the rate of not 
        less than 10 organizations in each fiscal year.
            (3) Expand the scope of the health care team coordination 
        program from a focus on emergency department care to a coverage 
        that includes care in all major medical specialties, at the rate 
        of not less than one specialty in each fiscal year.
            (4) Continue research and development investments to improve 
        communication, coordination, and team work in the provision of 
        health care.

    (e) Consultation.--The Secretary shall consult with the other 
administering Secretaries (as defined in section 1072(3) of title 10, 
United States Code) in carrying out this section.

SEC. 755. AUGMENTATION OF ARMY MEDICAL DEPARTMENT BY DETAILING RESERVE 
            OFFICERS OF THE PUBLIC HEALTH SERVICE.

    (a) Authority.--The Secretary of the Army and the Secretary of 
Health and Human Services may jointly conduct a program to augment the 
Army Medical Department by exercising any authorities provided to those 
officials in law for the detailing of reserve commissioned officers of 
the Public Health Service not in an active status to the Army Medical 
Department for that purpose.
    (b) Agreement.--The Secretary of the Army and the Secretary of 
Health and Human Services shall enter into an agreement governing any 
program conducted under subsection (a).
    (c) Assessment.--(1) The Secretary of the Army shall review the laws 
providing the authorities described in subsection (a) and assess the 
adequacy of those laws for authorizing--
            (A) the Secretary of Health and Human Services to detail 
        reserve commissioned officers of the Public Health Service not 
        in an active status to the Army Medical Department to augment 
        that department; and
            (B) the Secretary of the Army to accept the detail of such 
        officers for that purpose.

[[Page 114 STAT. 1654A-198]]

    (2) The Secretary shall complete the review and assessment under 
paragraph (1) not later than 90 days after the date of the enactment of 
this Act.
    (d) Report to Congress.--Not later than March 1, 2001, the Secretary 
of the Army shall submit a report on the results of the review and 
assessment under subsection (c) to the Committees on Armed Services of 
the Senate and the House of Representatives. The report shall include 
the following:
            (1) The findings resulting from the review and assessment.
            (2) Any proposal for legislation that the Secretary 
        recommends to strengthen the authority of the Secretary of 
        Health and Human Services and the authority of the Secretary of 
        the Army to take the actions described in subparagraphs (A) and 
        (B), respectively, of subsection (c)(1).

    (e) Consultation Requirement.--The Secretary of the Army shall 
consult with the Secretary of Health and Human Services in carrying out 
the review and assessment under subsection (c) and in preparing the 
report (including making recommendations) under subsection (d).

SEC. 756. PRIVACY OF DEPARTMENT OF DEFENSE MEDICAL RECORDS.

    (a) Comprehensive Plan.--Not later than April 1, 2001, the Secretary 
of Defense shall submit to Congress a comprehensive plan to improve 
privacy protections for medical records maintained by the Department of 
Defense. Such plan shall be consistent with the regulations promulgated 
under section 264(c) of the Health Insurance Portability and 
Accountability Act of 1996 (Public Law 104-191; 42 U.S.C. 1320d-2 note).
    (b) Interim Regulations.--(1) Notwithstanding any other provision of 
law, the Secretary shall prescribe interim regulations, pending full 
implementation of the comprehensive plan described in subsection (a), to 
improve privacy protections for medical records maintained by the 
Department of Defense.
    (2) The regulations prescribed under paragraph (1) shall provide 
maximum protections for privacy consistent with such actions that the 
Secretary determines are necessary for purposes of national security, 
law enforcement, patient treatment, public health reporting, 
accreditation and licensure review activities, external peer review and 
other quality assurance program activities, payment for health care 
services, fraud and abuse prevention, judicial and administrative 
proceedings, research consistent with regulations on Governmentwide 
protection of human subjects, Department of Veterans Affairs benefit 
programs, and any other purposes identified by the Secretary for the 
responsible management of the military health care system.

SEC. 757. AUTHORITY TO ESTABLISH SPECIAL LOCALITY-BASED REIMBURSEMENT 
            RATES; REPORTS.

    (a) In General.--Section 1079(h) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(5) To assure access to care for all covered beneficiaries, the 
Secretary of Defense, in consultation with the other administering 
Secretaries, shall designate specific rates for reimbursement for 
services in certain localities if the Secretary determines that without 
payment of such rates access to health care services would be severely 
impaired. Such a determination shall be based on consideration of the 
number of providers in a locality who provide the

[[Page 114 STAT. 1654A-199]]

services, the number of such providers who are CHAMPUS participating 
providers, the number of covered beneficiaries under CHAMPUS in the 
locality, the availability of military providers in the location or a 
nearby location, and any other factors determined to be relevant by the 
Secretary.''.
    (b) Reports.--(1) Not later than March 31, 2001, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives and the General Accounting Office a 
report on actions taken to carry out section 1079(h)(5) of title 10, 
United States Code (as added by subsection (a)) and section 1097b of 
such title.
    (2) Not later than May 1, 2001, the Comptroller General shall submit 
to Congress a report analyzing the utility of--
            (A) increased reimbursement authorities with respect to 
        ensuring the availability of network providers and nonnetwork 
        providers under the TRICARE program to covered beneficiaries 
        under chapter 55 of such title; and
            (B) requiring a reimbursement limitation of 70 percent of 
        usual and customary rates rather than 115 percent of maximum 
        allowable charges under the Civilian Health and Medical Program 
        of the Uniformed Services.

    (3)(A) Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
on the extent to which physicians are choosing not to participate in 
contracts for the furnishing of health care in rural States under 
chapter 55 of title 10, United States Code. The report shall include the 
following:
            (i) The number of physicians in rural States who are 
        withdrawing from participation, or otherwise refusing to 
        participate, in the health care contracts.
            (ii) The reasons for the withdrawals and refusals.
            (iii) The actions that the Secretary of Defense can take to 
        encourage more physicians to participate in the health care 
        contracts.
            (iv) Any recommendations for legislation that the Secretary 
        considers necessary to encourage more physicians to participate 
        in the health care contracts.

    (B) In this paragraph, the term ``rural State'' means a State that 
has, on average, as determined by the Bureau of the Census in the latest 
decennial census--
            (i) fewer than 76 residents per square mile; and
            (ii) fewer than 211 actively practicing physicians (not 
        counting physicians employed by the United States) per 100,000 
        residents.

SEC. 758. REIMBURSEMENT FOR CERTAIN TRAVEL EXPENSES.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074h (as added by section 706) the 
following new section:

``Sec. 1074i. Reimbursement for certain travel expenses

    ``In any case in which a covered beneficiary is referred by a 
primary care physician to a specialty care provider who provides 
services more than 100 miles from the location in which the primary

[[Page 114 STAT. 1654A-200]]

care provider provides services to the covered beneficiary, the 
Secretary shall provide reimbursement for reasonable travel expenses for 
the covered beneficiary.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1074g the following new item:

``1074i. Reimbursement for certain travel expenses.''.

SEC. 759. REDUCTION OF CAP ON PAYMENTS.

    Section 1086(b)(4) of title 10, United States Code, is amended by 
striking ``$7,500'' and inserting ``$3,000''.

SEC. 760. TRAINING IN HEALTH CARE MANAGEMENT AND ADMINISTRATION.

    (a) Expansion of Program.--Section 715(a) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
375; 10 U.S.C. 1073 note) is amended--
            (1) in the matter preceding paragraph (1), by striking ``Not 
        later than six months after the date of the enactment of this 
        Act, the'' and inserting ``The'';
            (2) in paragraph (1)--
                    (A) by inserting ``, deputy commander, and managed 
                care coordinator'' after ``commander''; and
                    (B) by inserting ``, and any other person,'' after 
                ``Defense''; and
            (3) by amending subsection (b) to read as follows:

    ``(b) Limitation on Assignment Until Completion of Training.--No 
person may be assigned as the commander, deputy commander, or managed 
care coordinator of a military medical treatment facility or as a 
TRICARE lead agent or senior member of the staff of a TRICARE lead agent 
office until the Secretary of the military department concerned submits 
a certification to the Secretary of Defense that such person has 
completed the training described in subsection (a).''.
    (b) Report Requirement.--(1) Not later than 18 months after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on progress in meeting the requirements of section 715 
of such Act (as amended by subsection (a)) by implementing a 
professional educational program to provide appropriate training in 
health care management and administration.
    (2) The report required by paragraph (1) shall include the 
following:
            (A) A survey of professional civilian certifications and 
        credentials which demonstrate achievement of the requirements of 
        such section.
            (B) A description of the continuing education activities 
        required to obtain initial certification and periodic required 
        recertification.
            (C) A description of the prominence of such credentials or 
        certifications among senior civilian health care executives.

    (c) Applicability.--The amendments made by subsection (a) to section 
715 of such Act--
            (1) shall apply to a deputy commander, a managed care 
        coordinator of a military medical treatment facility, or a lead 
        agent for coordinating the delivery of health care by military 
        and civilian providers under the TRICARE program, who is

[[Page 114 STAT. 1654A-201]]

        assigned to such position on or after the date that is one year 
        after the date of the enactment of this Act; and
            (2) may apply, in the discretion of the Secretary of 
        Defense, to a deputy commander, a managed care coordinator of 
        such a facility, or a lead agent for coordinating the delivery 
        of such health care, who is assigned to such position before the 
        date that is one year after the date of the enactment of this 
        Act.

SEC. 761. STUDIES ON FEASIBILITY OF SHARING BIOMEDICAL RESEARCH 
            FACILITY.

    (a) Studies Required.--(1) The Secretary of the Army shall conduct a 
study on the feasibility of the Tripler Army Medical Center, Hawaii, 
sharing a biomedical research facility with the Department of Veterans 
Affairs and the School of Medicine at the University of Hawaii for the 
purpose of making more efficient use of funding for biomedical research.
    (2) The Secretary of the Air Force shall conduct a study on the 
feasibility of the Little Rock Medical Facility, Arkansas, sharing a 
biomedical research facility with the Department of Veterans Affairs and 
the School of Medicine at the University of Arkansas for the purpose of 
making more efficient use of funding for biomedical research.
    (3) The biomedical research facilities described in paragraphs (1) 
and (2) would include a clinical research center and facilities for 
educational, academic, and laboratory research.
    (b) Reports.--Not later than March 1, 2001--
            (1) the Secretary of the Army shall submit to the Committees 
        on Armed Services of the House of Representatives and the Senate 
        a report on the study conducted under subsection (a)(1); and
            (2) the Secretary of the Air Force shall submit to such 
        committees a report on the study conducted under subsection 
        (a)(2).

SEC. 762. STUDY ON COMPARABILITY OF COVERAGE FOR PHYSICAL, SPEECH, AND 
            OCCUPATIONAL THERAPIES.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
comparing coverage and reimbursement for covered beneficiaries under 
chapter 55 of title 10, United States Code, for physical, speech, and 
occupational therapies under the TRICARE program and the Civilian Health 
and Medical Program of the Uniformed Services to coverage and 
reimbursement for such therapies by insurers under Medicare and the 
Federal Employees Health Benefits Program. The study shall examine the 
following:
            (1) Types of services covered.
            (2) Whether prior authorization is required to receive such 
        services.
            (3) Reimbursement limits for services covered.
            (4) Whether services are covered on both an inpatient and 
        outpatient basis.

    (b) Report.--Not later than March 31, 2001, the Secretary shall 
submit a report on the findings of the study conducted under this 
section to the Committees on Armed Services of the Senate and the House 
of Representatives.

[[Page 114 STAT. 1654A-202]]

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

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

Sec. 801. Department of Defense acquisition pilot programs.
Sec. 802. Multiyear services contracts.
Sec. 803. Clarification and extension of authority to carry out certain 
           prototype projects.
Sec. 804. Clarification of authority of Comptroller General to review 
           records of participants in certain prototype projects.
Sec. 805. Extension of time period of limitation on procurement of ball 
           bearings and roller bearings.
Sec. 806. Reporting requirements relating to multiyear contracts.
Sec. 807. Eligibility of small business concerns owned and controlled by 
           women for assistance under the mentor-protege program.
Sec. 808. Qualifications required for employment and assignment in 
           contracting positions.
Sec. 809. Revision of authority for solutions-based contracting pilot 
           program.
Sec. 810. Procurement notice of contracting opportunities through 
           electronic means.

                   Subtitle B--Information Technology

Sec. 811. Acquisition and management of information technology.
Sec. 812. Tracking and management of information technology purchases.
Sec. 813. Appropriate use of requirements regarding experience and 
           education of contractor personnel in the procurement of 
           information technology services.
Sec. 814. Navy-Marine Corps Intranet.
Sec. 815. Sense of Congress regarding information technology systems for 
           Guard and Reserve components.

              Subtitle C--Other Acquisition-Related Matters

Sec. 821. Improvements in procurements of services.
Sec. 822. Financial analysis of use of dual rates for quantifying 
           overhead costs at Army ammunition plants.
Sec. 823. Repeal of prohibition on use of Department of Defense funds 
           for procurement of nuclear-capable shipyard crane from a 
           foreign source.
Sec. 824. Extension of waiver period for live-fire survivability testing 
           for MH-47E and MH-60K helicopter modification programs.
Sec. 825. Compliance with existing law regarding purchases of equipment 
           and products.
Sec. 826. Requirement to disregard certain agreements in awarding 
           contracts for the purchase of firearms or ammunition.

                     Subtitle D--Studies and Reports

Sec. 831. Study on impact of foreign sourcing of systems on long-term 
           military readiness and related industrial infrastructure.
Sec. 832. Study of policies and procedures for transfer of commercial 
           activities.
Sec. 833. Study and report on practice of contract bundling in military 
           construction contracts.
Sec. 834. Requirement to conduct study on contract bundling.

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

SEC. 801. DEPARTMENT OF DEFENSE ACQUISITION PILOT PROGRAMS.

    (a) Extension of Authority.--Section 5064(d)(2) of the Federal 
Acquisition Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 
3361; 10 U.S.C. 2430 note) is amended by striking ``45 days after the 
date of the enactment of this Act and ends on

[[Page 114 STAT. 1654A-203]]

September 30, 1998'' and inserting ``on October 13, 1994, and ends on 
October 1, 2007''.
    (b) Expansion of JDAM Program.--Section 5064(a)(2) of such Act is 
amended by striking ``1000-pound and 2000-pound bombs'' and inserting 
``500-pound, 1000-pound, and 2000-pound bombs''.
    (c) Report Required.--(1) Not later than January 1, 2001, the 
Secretary of Defense shall submit to the Committees on Armed Services of 
the House of Representatives and the Senate a report on the acquisition 
pilot programs of the Department of Defense. The report shall describe, 
for each acquisition program identified in section 5064(a) of the 
Federal Acquisition Streamlining Act of 1994, the following:
            (A) Each quantitative measure and goal established for each 
        item described in paragraph (2), which of such goals have been 
        achieved, and the extent to which the use of the authorities in 
        section 809 of the National Defense Authorization Act for Fiscal 
        Year 1991 (Public Law 101-510; 10 U.S.C. 2430 note) and section 
        5064 of the Federal Acquisition Streamlining Act of 1994 was a 
        factor in achieving each of such goals.
            (B) Recommended revisions to statutes or the Federal 
        Acquisition Regulation as a result of participation in the pilot 
        program.
            (C) Any innovative business practices developed as a result 
        of participation in the pilot program, whether such business 
        practices could be applied to other acquisition programs, and 
        any impediments to application of such practices to other 
        programs.
            (D) Technological changes to the program, and to what extent 
        those changes affected the items in paragraph (2).
            (E) Any other information determined appropriate by the 
        Secretary.

    (2) The items under this paragraph are, with respect to defense 
acquisition programs, the following:
            (A) The acquisition management costs.
            (B) The unit cost of the items procured.
            (C) The acquisition cycle.
            (D) The total cost of carrying out the contract.
            (E) Staffing necessary to carry out the program.

SEC. 802. MULTIYEAR SERVICES CONTRACTS.

    (a) In General.--(1) Chapter 137 of title 10, United States Code, is 
amended by inserting after section 2306b the following:

``Sec. 2306c. Multiyear contracts: acquisition of services

    ``(a) Authority.--Subject to subsections (d) and (e), the head of an 
agency may enter into contracts for periods of not more than five years 
for services described in subsection (b), and for items of supply 
related to such services, for which funds would otherwise be available 
for obligation only within the fiscal year for which appropriated 
whenever the head of the agency finds that--
            ``(1) there will be a continuing requirement for the 
        services consonant with current plans for the proposed contract 
        period;
            ``(2) the furnishing of such services will require a 
        substantial initial investment in plant or equipment, or the 
        incurrence of substantial contingent liabilities for the 
        assembly, training, or transportation of a specialized work 
        force; and

[[Page 114 STAT. 1654A-204]]

            ``(3) the use of such a contract will promote the best 
        interests of the United States by encouraging effective 
        competition and promoting economies in operation.

    ``(b) Covered Services.--The authority under subsection (a) applies 
to the following types of services:
            ``(1) Operation, maintenance, and support of facilities and 
        installations.
            ``(2) Maintenance or modification of aircraft, ships, 
        vehicles, and other highly complex military equipment.
            ``(3) Specialized training necessitating high quality 
        instructor skills (for example, pilot and air crew members; 
        foreign language training).
            ``(4) Base services (for example, ground maintenance; in-
        plane refueling; bus transportation; refuse collection and 
        disposal).

    ``(c) Applicable Principles.--In entering into multiyear contracts 
for services under the authority of this section, the head of the agency 
shall be guided by the following principles:
            ``(1) The portion of the cost of any plant or equipment 
        amortized as a cost of contract performance should not exceed 
        the ratio between the period of contract performance and the 
        anticipated useful commercial life of such plant or equipment. 
        Useful commercial life, for this purpose, means the commercial 
        utility of the facilities rather than the physical life thereof, 
        with due consideration given to such factors as location of 
        facilities, specialized nature thereof, and obsolescence.
            ``(2) Consideration shall be given to the desirability of 
        obtaining an option to renew the contract for a reasonable 
        period not to exceed three years, at prices not to include 
        charges for plant, equipment and other nonrecurring costs, 
        already amortized.
            ``(3) Consideration shall be given to the desirability of 
        reserving in the agency the right, upon payment of the 
        unamortized portion of the cost of the plant or equipment, to 
        take title thereto under appropriate circumstances.

    ``(d) Restrictions Applicable Generally.--(1) The head of an agency 
may not initiate under this section a contract for services that 
includes an unfunded contingent liability in excess of $20,000,000 
unless the committees of Congress named in paragraph (5) are notified of 
the proposed contract at least 30 days in advance of the award of the 
proposed contract.
    ``(2) The head of an agency may not initiate a multiyear contract 
for services under this section if the value of the multiyear contract 
would exceed $500,000,000 unless authority for the contract is 
specifically provided by law.
    ``(3) The head of an agency may not terminate a multiyear 
procurement contract for services until 10 days after the date on which 
notice of the proposed termination is provided to the committees of 
Congress named in paragraph (5).
    ``(4) Before any contract described in subsection (a) that contains 
a clause setting forth a cancellation ceiling in excess of $100,000,000 
may be awarded, the head of the agency concerned shall give written 
notification of the proposed contract and of the proposed cancellation 
ceiling for that contract to the committees of Congress named in 
paragraph (5), and such contract may not then be awarded until the end 
of a period of 30 days beginning on the date of such notification.

[[Page 114 STAT. 1654A-205]]

    ``(5) The committees of Congress referred to in paragraphs (1), (3), 
and (4) are as follows:
            ``(A) The Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
            ``(B) The Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.

    ``(e) Cancellation or Termination for Insufficient Funding After 
First Year.--In the event that funds are not made available for the 
continuation of a multiyear contract for services into a subsequent 
fiscal year, the contract shall be canceled or terminated, and the costs 
of cancellation or termination may be paid from--
            ``(1) appropriations originally available for the 
        performance of the contract concerned;
            ``(2) appropriations currently available for procurement of 
        the type of services concerned, and not otherwise obligated; or
            ``(3) funds appropriated for those payments.

    ``(f ) Multiyear Contract Defined.--For the purposes of this 
section, a multiyear contract is a contract for the purchase of services 
for more than one, but not more than five, program years. Such a 
contract may provide that performance under the contract during the 
second and subsequent years of the contract is contingent upon the 
appropriation of funds and (if it does so provide) may provide for a 
cancellation payment to be made to the contractor if such appropriations 
are not made.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2306b the 
following:

``2306c. Multiyear contracts: acquisition of services.''.

    (b) Reference to Relocated Authority.--Subsection (g) of section 
2306 of such title is amended to read as follows:
    ``(g) Multiyear contracting authority for the acquisition of 
services is provided in section 2306c of this title.''.
    (c) Conforming Amendment.--Section 2306b(k) of title 10, United 
States Code, is amended by striking ``or services''.
    (d) Applicability.--Section 2306c of title 10, United States Code 
(as added by subsection (a)), shall apply with respect to contracts for 
which solicitations of offers are issued after the date of the enactment 
of this Act.

SEC. 803. CLARIFICATION AND EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN 
            PROTOTYPE PROJECTS.

    (a) Amendments to Authority.--Section 845 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 
2371 note) is amended--
            (1) by redesignating subsection (d) as subsection (f ); and
            (2) by inserting after subsection (c) the following new 
        subsections:

    ``(d) Appropriate Use of Authority.--(1) The Secretary of Defense 
shall ensure that no official of an agency enters into a transaction 
(other than a contract, grant, or cooperative agreement) for a prototype 
project under the authority of this section unless--
            ``(A) there is at least one nontraditional defense 
        contractor participating to a significant extent in the 
        prototype project; or

[[Page 114 STAT. 1654A-206]]

            ``(B) no nontraditional defense contractor is participating 
        to a significant extent in the prototype project, but at least 
        one of the following circumstances exists:
                    ``(i) At least one third of the total cost of the 
                prototype project is to be paid out of funds provided by 
                parties to the transaction other than the Federal 
                Government.
                    ``(ii) The senior procurement executive for the 
                agency (as designated for the purposes of section 16(3) 
                of the Office of Federal Procurement Policy Act (41 
                U.S.C. 414(3)) determines in writing that exceptional 
                circumstances justify the use of a transaction that 
                provides for innovative business arrangements or 
                structures that would not be feasible or appropriate 
                under a contract.

    ``(2)(A) Except as provided in subparagraph (B), the amounts counted 
for the purposes of this subsection as being provided, or to be 
provided, by a party to a transaction with respect to a prototype 
project that is entered into under this section other than the Federal 
Government do not include costs that were incurred before the date on 
which the transaction becomes effective.
    ``(B) Costs that were incurred for a prototype project by a party 
after the beginning of negotiations resulting in a transaction (other 
than a contract, grant, or cooperative agreement) with respect to the 
project before the date on which the transaction becomes effective may 
be counted for purposes of this subsection as being provided, or to be 
provided, by the party to the transaction if and to the extent that the 
official responsible for entering into the transaction determines in 
writing that--
            ``(i) the party incurred the costs in anticipation of 
        entering into the transaction; and
            ``(ii) it was appropriate for the party to incur the costs 
        before the transaction became effective in order to ensure the 
        successful implementation of the transaction.

    ``(e) Nontraditional Defense Contractor Defined.--In this section, 
the term `nontraditional defense contractor' means an entity that has 
not, for a period of at least one year prior to the date that a 
transaction (other than a contract, grant, or cooperative agreement) for 
a prototype project under the authority of this section is entered into, 
entered into or performed with respect to--
            ``(1) any contract that is subject to full coverage under 
        the cost accounting standards prescribed pursuant to section 26 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 422) 
        and the regulations implementing such section; or
            ``(2) any other contract in excess of $500,000 to carry out 
        prototype projects or to perform basic, applied, or advanced 
        research projects for a Federal agency, that is subject to the 
        Federal Acquisition Regulation.''.

    (b) Extension of Authority.--Subsection (f ) of such section, as 
redesignated by subsection (a)(1), is amended by striking ``September 
30, 2001'' and inserting ``September 30, 2004''.

SEC. 804. CLARIFICATION OF AUTHORITY OF COMPTROLLER GENERAL TO REVIEW 
            RECORDS OF PARTICIPANTS IN CERTAIN PROTOTYPE PROJECTS.

    (a) Comptroller General Review.--Section 845(c) of the National 
Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is 
amended--

[[Page 114 STAT. 1654A-207]]

            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):

    ``(3)(A) The right provided to the Comptroller General in a clause 
of an agreement under paragraph (1) is limited as provided in 
subparagraph (B) in the case of a party to the agreement, an entity that 
participates in the performance of the agreement, or a subordinate 
element of that party or entity if the only agreements or other 
transactions that the party, entity, or subordinate element entered into 
with Government entities in the year prior to the date of that agreement 
are cooperative agreements or transactions that were entered into under 
this section or section 2371 of title 10, United States Code.
    ``(B) The only records of a party, other entity, or subordinate 
element referred to in subparagraph (A) that the Comptroller General may 
examine in the exercise of the right referred to in that subparagraph 
are records of the same type as the records that the Government has had 
the right to examine under the audit access clauses of the previous 
agreements or transactions referred to in such subparagraph that were 
entered into by that particular party, entity, or subordinate 
element.''.

SEC. 805. EXTENSION OF TIME PERIOD OF LIMITATION ON PROCUREMENT OF BALL 
            BEARINGS AND ROLLER BEARINGS.

    Section 2534(c)(3) of title 10, United States Code, is amended by 
striking ``October 1, 2000'' and inserting ``October 1, 2005''.

SEC. 806. REPORTING REQUIREMENTS RELATING TO MULTIYEAR CONTRACTS.

    Section 2306b(l) of title 10, United States Code, is amended--
            (1) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``The head of an agency'' and all that follows 
                through ``following information'' and inserting ``Not 
                later than the date of the submission of the President's 
                budget request under section 1105 of title 31, the 
                Secretary of Defense shall submit a report to the 
                congressional defense committees each year, providing 
                the following information with respect to each multiyear 
                contract (and each extension of an existing multiyear 
                contract) entered into, or planned to be entered into, 
                by the head of an agency during the current or preceding 
                year''; and
                    (B) in subparagraph (B), by striking ``in effect 
                immediately before the contract (or contract extension) 
                is entered into'' and inserting ``in effect at the time 
                the report is submitted'';
            (2) by redesignating paragraphs (5) through (9) as 
        paragraphs (6) through (10), respectively; and
            (3) by inserting after paragraph (4) the following new 
        paragraph (5):

    ``(5) The head of an agency may not enter into a multiyear contract 
(or extend an existing multiyear contract), the value of which would 
exceed $500,000,000 (when entered into or when extended, as the case may 
be), until the Secretary of Defense submits to the congressional defense 
committees a report containing the information described in paragraph 
(4) with respect to the contract (or contract extension).''.

[[Page 114 STAT. 1654A-208]]

SEC. 807. ELIGIBILITY OF SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY 
            WOMEN FOR ASSISTANCE UNDER THE 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) by striking ``or'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E) a small business concern owned and controlled 
                by women, as defined in section 8(d)(3)(D) of the Small 
                Business Act (15 U.S.C. 637(d)(3)(D)).''.

SEC. 808. QUALIFICATIONS REQUIRED FOR EMPLOYMENT AND ASSIGNMENT IN 
            CONTRACTING POSITIONS.

    (a) Applicability of Requirements to Members of the Armed Forces.--
Section 1724 of title 10, United States Code, is amended in the first 
sentence of subsection (d)--
            (1) by striking ``employee of'' and inserting ``employee or 
        member of''; and
            (2) by striking ``employee possesses'' and inserting 
        ``employee or member possesses''.

    (b) Mandatory Academic Qualifications.--(1) Subsection (a)(3) of 
such section is amended--
            (A) by inserting ``and'' before ``(B)''; and
            (B) by striking ``, or (C)'' and all that follows through 
        ``listed in subparagraph (B)''.

    (2) Subsection (b) of such section is amended to read as follows:
    ``(b) GS-1102 Series Positions and Similar Military Positions.--The 
Secretary of Defense shall require that a person meet the requirements 
set forth in paragraph (3) of subsection (a), but not the other 
requirements set forth in that subsection, in order to qualify to serve 
in a position in the Department of Defense in--
            ``(1) the GS-1102 occupational series; or
            ``(2) a similar occupational specialty if the position is to 
        be filled by a member of the armed forces.''.

    (c) Exception.--Subsection (c) of such section is amended to read as 
follows:
    ``(c) Exception.--The requirements imposed under subsection (a) or 
(b) shall not apply to a person for the purpose of qualifying to serve 
in a position in which the person is serving on September 30, 2000.''.
    (d) Deletion of Unnecessary Cross References.--Subsection (a) of 
such section is amended by striking ``(except as provided in subsections 
(c) and (d))'' in the matter preceding paragraph (1).
    (e) Effective Date.--This section, and the amendments made by this 
section, shall take effect on October 1, 2000, and shall apply to 
appointments and assignments to contracting positions made on or after 
that date.

SEC. 809. REVISION OF AUTHORITY FOR SOLUTIONS-BASED CONTRACTING PILOT 
            PROGRAM.

    (a) Pilot Projects Under the Program.--Section 5312 of the Clinger-
Cohen Act of 1996 (40 U.S.C. 1492) is amended--

[[Page 114 STAT. 1654A-209]]

            (1) in subsection (a), by striking ``subsection (d)(2)'' and 
        inserting ``subsection (d)''; and
            (2) by striking subsection (d) and inserting the following:

    ``(d) Pilot Program Projects.--The Administrator shall authorize to 
be carried out under the pilot program--
            ``(1) not more than 10 projects, each of which has an 
        estimated cost of at least $25,000,000 and not more than 
        $100,000,000; and
            ``(2) not more than 10 projects for small business concerns, 
        each of which has an estimated cost of at least $1,000,000 and 
        not more than $5,000,000.''.

    (b) Elimination of Requirement for Federal Funding of Program 
Definition Phase.--Subsection (c)(9)(B) of such section is amended by 
striking ``program definition phase (funded, in the case of the source 
ultimately awarded the contract, by the Federal Government)--'' and 
inserting ``program definition phase--''.

SEC. 810. PROCUREMENT NOTICE OF CONTRACTING OPPORTUNITIES THROUGH 
            ELECTRONIC MEANS.

    (a) Publication by Electronic Means.--Subsection (a) of section 18 
of the Office of Federal Procurement Policy Act (41 U.S.C. 416) is 
amended--
            (1) in paragraph (1)(A), by striking ``furnish for 
        publication by the Secretary of Commerce'' and inserting 
        ``publish'';
            (2) by striking paragraph (2) and inserting the following:

    ``(2)(A) A notice of solicitation required to be published under 
paragraph (1) may be published--
            ``(i) by electronic means that meets the requirements for 
        accessibility under paragraph (7); or
            ``(ii) by the Secretary of Commerce in the Commerce Business 
        Daily.

    ``(B) The Secretary of Commerce shall promptly publish in the 
Commerce Business Daily each notice or announcement received under this 
subsection for publication by that means.''; and
            (3) by adding at the end the following:

    ``(7) A publication of a notice of solicitation by electronic means 
meets the requirements for accessibility under this paragraph if the 
notice is electronically accessible in a form that allows convenient and 
universal user access through the single Government-wide point of entry 
designated in the Federal Acquisition Regulation.''.
    (b) Waiting Period for Issuance of Solicitation.--Paragraph (3) of 
such subsection is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``furnish a notice to the Secretary of Commerce'' and inserting 
        ``publish a notice of solicitation''; and
            (2) in subparagraph (A), by striking ``by the Secretary of 
        Commerce''.

    (c) Conforming Amendments To Small Business Act.--Subsection (e) of 
section 8 of the Small Business Act (15 U.S.C. 637) is amended--
            (1) in paragraph (1)(A), by striking ``furnish for 
        publication by the Secretary of Commerce'' and inserting 
        ``publish'';
            (2) by striking paragraph (2) and inserting the following:

    ``(2)(A) A notice of solicitation required to be published under 
paragraph (1) may be published--

[[Page 114 STAT. 1654A-210]]

            ``(i) by electronic means that meet the accessibility 
        requirements under section 18(a)(7) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 416(a)(7)); or
            ``(ii) by the Secretary of Commerce in the Commerce Business 
        Daily.

    ``(B) The Secretary of Commerce shall promptly publish in the 
Commerce Business Daily each notice or announcement received under this 
subsection for publication by that means.''; and
            (3) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``furnish a notice to the Secretary of 
                Commerce'' and inserting ``publish a notice of 
                solicitation''; and
                    (B) in subparagraph (A), by striking ``by the 
                Secretary of Commerce''.

    (d) Periodic Reports on Implementation of Electronic Commerce in 
Federal Procurement.--Section 30(e) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 426(e)) is amended--
            (1) in the first sentence, by striking ``Not later than 
        March 1, 1998, and every year afterward through 2003'' and 
        inserting ``Not later than March 1 of each even-numbered year 
        through 2004''; and
            (2) in paragraph (4)--
                    (A) by striking ``Beginning with the report 
                submitted on March 1, 1999, an'' and inserting ``An''; 
                and
                    (B) by striking ``calendar year'' and inserting 
                ``two fiscal years''.

    (e) Effective Date; Applicability.--The amendments made by this 
section shall take effect on October 1, 2000. The amendments made by 
subsections (a), (b), and (c) shall apply with respect to solicitations 
issued on or after that date.

                   Subtitle B--Information Technology

SEC. 811. ACQUISITION AND MANAGEMENT OF INFORMATION TECHNOLOGY.

    (a) Responsibility of DOD Chief Information Officer Relating to 
Mission Critical and Mission Essential Information Technology Systems.--
Section 2223(a) of title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) maintain a consolidated inventory of Department of 
        Defense mission critical and mission essential information 
        systems, identify interfaces between those systems and other 
        information systems, and develop and maintain contingency plans 
        for responding to a disruption in the operation of any of those 
        information systems.''.

    (b) Minimum Planning Requirements for the Acquisition of Information 
Technology Systems.--(1) Not later than 60 days after the date of the 
enactment of this Act, Department of Defense Directive 5000.1 shall be 
revised to establish minimum planning requirements for the acquisition 
of information technology systems.
    (2) The revised directive required by (1) shall--

[[Page 114 STAT. 1654A-211]]

            (A) include definitions of the terms ``mission critical 
        information system'' and ``mission essential information 
        system'';
            (B) prohibit the award of any contract for the acquisition 
        of a mission critical or mission essential information 
        technology system until--
                    (i) the system has been registered with the Chief 
                Information Officer of the Department of Defense;
                    (ii) the Chief Information Officer has received all 
                information on the system that is required under the 
                directive to be provided to that official; and
                    (iii) the Chief Information Officer has determined 
                that there is in place for the system an appropriate 
                information assurance strategy; and
            (C) require that, in the case of each system registered 
        pursuant to subparagraph (B)(i), the information required under 
        subparagraph (B)(ii) to be submitted as part of the registration 
        shall be updated on not less than a quarterly basis.

    (c) Milestone Approval for Major Automated Information Systems.--The 
revised directive required by subsection (b) shall prohibit Milestone I 
approval, Milestone II approval, or Milestone III approval (or the 
equivalent) of a major automated information system within the 
Department of Defense until the Chief Information Officer has determined 
that--
            (1) the system is being developed in accordance with the 
        requirements of division E of the Clinger-Cohen Act of 1996 (40 
        U.S.C. 1401 et seq.);
            (2) appropriate actions have been taken with respect to the 
        system in the areas of business process reengineering, analysis 
        of alternatives, economic analysis, and performance measures; 
        and
            (3) the system has been registered as described in 
        subsection (b)(2)(B).

    (d) Notice of Redesignation of Systems.--(1) Whenever during fiscal 
year 2001, 2002, or 2003 the Chief Information Officer designates a 
system previously designated as a major automated information system to 
be in a designation category other than a major automated information 
system, the Chief Information Officer shall notify the congressional 
defense committees of that designation. The notice shall be provided not 
later than 30 days after the date of that designation. Any such notice 
shall include the rationale for the decision to make the designation and 
a description of the program management oversight that will be 
implemented for the system so designated.
    (2) Not later than 60 days after the date of the enactment of this 
Act, the Chief Information Officer shall submit to the congressional 
defense committees a report specifying each information system of the 
Department of Defense previously designated as a major automated 
information system that is currently designated in a designation 
category other than a major automated information system including 
designation as a ``special interest major technology initiative''. The 
report shall include for each such system the information specified in 
the third sentence of paragraph (1).
    (e) Annual Implementation Report.--(1) The Secretary of Defense 
shall submit to the congressional defense committees, not later than 
April 1 of each of fiscal years 2001, 2002, and 2003,

[[Page 114 STAT. 1654A-212]]

a report on the implementation of the requirements of this section 
during the preceding fiscal year.
    (2) The report for a fiscal year under paragraph (1) shall include, 
at a minimum, for each major automated information system that was 
approved during such preceding fiscal year under Department of Defense 
Directive 5000.1 (as revised pursuant to subsection (b)), the following:
            (A) The funding baseline.
            (B) The milestone schedule.
            (C) The actions that have been taken to ensure compliance 
        with the requirements of this section and the directive.

    (3) The first report shall include, in addition to the information 
required by paragraph (2), an explanation of the manner in which the 
responsible officials within the Department of Defense have addressed, 
or intend to address, the following acquisition issues for each major 
automated information system planned to be acquired after that fiscal 
year:
            (A) Requirements definition.
            (B) Presentation of a business case analysis, including an 
        analysis of alternatives and a calculation of return on 
        investment.
            (C) Performance measurement.
            (D) Test and evaluation.
            (E) Interoperability.
            (F) Cost, schedule, and performance baselines.
            (G) Information assurance.
            (H) Incremental fielding and implementation.
            (I) Risk mitigation.
            (J) The role of integrated product teams.
            (K) Issues arising from implementation of the Command, 
        Control, Communications, Computers, Intelligence, Surveillance, 
        and Reconnaissance Plan required by Department of Defense 
        Directive 5000.1 and Chairman of the Joint Chiefs of Staff 
        Instruction 3170.01.
            (L) Oversight, including the Chief Information Officer's 
        oversight of decision reviews.

    (f ) Definitions.--In this section:
            (1) The term ``Chief Information Officer'' means the senior 
        official of the Department of Defense designated by the 
        Secretary of Defense pursuant to section 3506 of title 44, 
        United States Code.
            (2) The term ``information technology system'' has the 
        meaning given the term ``information technology'' in section 
        5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
            (3) The term ``major automated information system'' has the 
        meaning given that term in Department of Defense Directive 
        5000.1.

SEC. 812. TRACKING AND MANAGEMENT OF INFORMATION TECHNOLOGY PURCHASES.

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

``Sec. 2225. Information technology purchases: tracking and management

    ``(a) Collection of Data Required.--To improve tracking and 
management of information technology products and services by

[[Page 114 STAT. 1654A-213]]

the Department of Defense, the Secretary of Defense shall provide for 
the collection of the data described in subsection (b) for each purchase 
of such products or services made by a military department or Defense 
Agency in excess of the simplified acquisition threshold, regardless of 
whether such a purchase is made in the form of a contract, task order, 
delivery order, military interdepartmental purchase request, or any 
other form of interagency agreement.
    ``(b) Data To Be Collected.--The data required to be collected under 
subsection (a) includes the following:
            ``(1) The products or services purchased.
            ``(2) Whether the products or services are categorized as 
        commercially available off-the-shelf items, other commercial 
        items, nondevelopmental items other than commercial items, other 
        noncommercial items, or services.
            ``(3) The total dollar amount of the purchase.
            ``(4) The form of contracting action used to make the 
        purchase.
            ``(5) In the case of a purchase made through an agency other 
        than the Department of Defense--
                    ``(A) the agency through which the purchase is made; 
                and
                    ``(B) the reasons for making the purchase through 
                that agency.
            ``(6) The type of pricing used to make the purchase (whether 
        fixed price or another type of pricing).
            ``(7) The extent of competition provided in making the 
        purchase.
            ``(8) A statement regarding whether the purchase was made 
        from--
                    ``(A) a small business concern;
                    ``(B) a small business concern owned and controlled 
                by socially and economically disadvantaged individuals; 
                or
                    ``(C) a small business concern owned and controlled 
                by women.
            ``(9) A statement regarding whether the purchase was made in 
        compliance with the planning requirements under sections 5122 
        and 5123 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1422, 
        1423).

    ``(c) Responsibility To Ensure Fairness of Certain Prices.--The head 
of each contracting activity in the Department of Defense shall have 
responsibility for ensuring the fairness and reasonableness of unit 
prices paid by the contracting activity for information technology 
products and services that are frequently purchased commercially 
available off-the-shelf items.
    ``(d) Limitation on Certain Purchases.--No purchase of information 
technology products or services in excess of the simplified acquisition 
threshold shall be made for the Department of Defense from a Federal 
agency outside the Department of Defense unless--
            ``(1) the purchase data is collected in accordance with 
        subsection (a); or
            ``(2)(A) in the case of a purchase by a Defense Agency, the 
        purchase is approved by the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics; or

[[Page 114 STAT. 1654A-214]]

            ``(B) in the case of a purchase by a military department, 
        the purchase is approved by the senior procurement executive of 
        the military department.

    ``(e) Annual Report.--Not later than March 15 of each year, the 
Secretary of Defense shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report containing a 
summary of the data collected in accordance with subsection (a).
    ``(f ) Definitions.--In this section:
            ``(1) The term `senior procurement executive', with respect 
        to a military department, means the official designated as the 
        senior procurement executive for the military department for the 
        purposes of section 16(3) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 414(3)).
            ``(2) The term `simplified acquisition threshold' has the 
        meaning given the term in section 4(11) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(11)).
            ``(3) The term `small business concern' means a business 
        concern that meets the applicable size standards prescribed 
        pursuant to section 3(a) of the Small Business Act (15 U.S.C. 
        632(a)).
            ``(4) The term `small business concern owned and controlled 
        by socially and economically disadvantaged individuals' has the 
        meaning given that term in section 8(d)(3)(C) of the Small 
        Business Act (15 U.S.C. 637(d)(3)(C)).
            ``(5) The term `small business concern owned and controlled 
        by women' has the meaning given that term in section 8(d)(3)(D) 
        of the Small Business Act (15 U.S.C. 637(d)(3)(D)).''.

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

``2225. Information technology purchases: tracking and management.''.

    (b) Time for Implementation; Applicability.--(1) The Secretary of 
Defense shall collect data as required under section 2225 of title 10, 
United States Code (as added by subsection (a)) for all contractual 
actions covered by such section entered into on or after the date that 
is one year after the date of the enactment of this Act.
    (2) Subsection (d) of such section shall apply with respect to 
purchases described in that subsection for which solicitations of offers 
are issued on or after the date that is one year after the date of the 
enactment of this Act.
    (c) GAO Report.--Not later than 15 months after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
congressional defense committees a report on the collection of data 
under such section 2225. The report shall include the Comptroller 
General's assessment of the extent to which the collection of data meets 
the requirements of that section.

SEC. 813. APPROPRIATE USE OF REQUIREMENTS REGARDING EXPERIENCE AND 
            EDUCATION OF CONTRACTOR PERSONNEL IN THE PROCUREMENT OF 
            INFORMATION TECHNOLOGY SERVICES.

    (a) Amendment of the Federal Acquisition Regulation.--Not later than 
180 days after the date of the enactment of this Act, the Federal 
Acquisition Regulation issued in accordance with sections 6 and 25 of 
the Office of Federal Procurement Policy

[[Page 114 STAT. 1654A-215]]

Act (41 U.S.C. 405 and 421) shall be amended to address the use, in the 
procurement of information technology services, of requirements 
regarding the experience and education of contractor personnel.
    (b) Content of Amendment.--The amendment issued pursuant to 
subsection (a) shall, at a minimum, provide that solicitations for the 
procurement of information technology services shall not set forth any 
minimum experience or educational requirement for proposed contractor 
personnel in order for a bidder to be eligible for award of a contract 
unless--
            (1) the contracting officer first determines that the needs 
        of the executive agency cannot be met without any such 
        requirement; or
            (2) the needs of the executive agency require the use of a 
        type of contract other than a performance-based contract.

    (c) GAO Report.--Not later than one year after the date on which the 
regulations required by subsection (a) are published in the Federal 
Register, the Comptroller General shall submit to Congress an evaluation 
of--
            (1) executive agency compliance with the regulations; and
            (2) conformance of the regulations with existing law, 
        together with any recommendations that the Comptroller General 
        considers appropriate.

    (d) Definitions.--In this section:
            (1) The term ``executive agency'' has the meaning given that 
        term in section 4(1) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403(1)).
            (2) The term ``information technology'' has the meaning 
        given that term in section 5002(3) of the Clinger-Cohen Act of 
        1996 (40 U.S.C. 1401(3)).
            (3) The term ``performance-based'', with respect to a 
        contract, means that the contract includes the use of 
        performance work statements that set forth contract requirements 
        in clear, specific, and objective terms with measurable 
        outcomes.

SEC. 814. NAVY-MARINE CORPS INTRANET.

    (a) Limitation.--None of the funds authorized to be appropriated for 
the Department of the Navy may be obligated or expended to carry out a 
Navy-Marine Corps Intranet contract before--
            (1) the Comptroller of the Department of Defense and the 
        Director of the Office of Management and Budget--
                    (A) have reviewed--
                          (i) the Report to Congress on the Navy-Marine 
                      Corps Intranet submitted by the Department of the 
                      Navy on June 30, 2000; and
                          (ii) the Business Case Analysis Supplement for 
                      the Report to Congress on the Navy-Marine Corps 
                      Intranet submitted by the Department of the Navy 
                      on July 15, 2000; and
                    (B) have provided their written comments to the 
                Secretary of the Navy and the Chief of Naval Operations; 
                and
            (2) the Secretary of the Navy and the Chief of Naval 
        Operations have submitted to Congress a joint certification that 
        they have reviewed the business case for the contract

[[Page 114 STAT. 1654A-216]]

        and the comments provided by the Comptroller of the Department 
        of Defense and the Director of the Office of Management and 
        Budget and that they have determined that the implementation of 
        the contract is in the best interest of the Department of the 
        Navy.

    (b) Phased Implementation.--(1) Upon the submission of the 
certification under subsection (a)(2), the Secretary of the Navy may 
commence a phased implementation of a Navy-Marine Corps Intranet 
contract.
    (2) Not more than 15 percent of the total number of work stations to 
be provided under the Navy-Marine Corps Intranet program may be provided 
in the first increment of implementation of the Navy-Marine Corps 
Intranet contract.
    (3) No work stations in excess of the number permitted by paragraph 
(2) may be provided under the program until--
            (A) the Secretary of the Navy has conducted operational 
        testing and cost review of the increment covered by that 
        paragraph;
            (B) the Chief Information Officer of the Department of 
        Defense has certified to the Secretary of the Navy that the 
        results of the operational testing of the Intranet are 
        acceptable;
            (C) the Comptroller of the Department of Defense has 
        certified to the Secretary of the Navy that the cost review 
        provides a reliable basis for forecasting the cost impact of 
        continued implementation; and
            (D) the Secretary of the Navy and the Chief of Naval 
        Operations have submitted to Congress a joint certification that 
        they have reviewed the certifications submitted under 
        subparagraphs (B) and (C) and have determined that the continued 
        implementation of the contract is in the best interest of the 
        Department of the Navy.

    (4) No increment of the Navy-Marine Corps Intranet that is 
implemented during fiscal year 2001 may include any activities of the 
Marine Corps, the naval shipyards, or the naval aviation depots. Funds 
available for fiscal year 2001 for activities of the Marine Corps, the 
naval shipyards, or the naval aviation depots may not be expended for 
any contract for the Navy-Marine Corps Intranet.
    (c) Prohibition on Increase of Rates Charged.--The Secretary of the 
Navy shall ensure that rates charged by a working capital funded 
industrial facility of the Department of the Navy for goods or services 
provided by such facility are not increased during fiscal year 2001 for 
the purpose of funding the Navy-Marine Corps Intranet contract.
    (d) Applicability of Statutory and Regulatory Requirements.--The 
acquisition of a Navy-Marine Corps Intranet shall be managed by the 
Department of the Navy in accordance with the requirements of--
            (1) the Clinger-Cohen Act of 1996 (divisions D and E of 
        Public Law 104-106), including the requirement for utilizing 
        modular contracting in accordance with section 38 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 434); and
            (2) Department of Defense Directives 5000.1 and 5000.2-R and 
        all other directives, regulations, and management controls that 
        are applicable to major investments in information technology 
        and related services.

[[Page 114 STAT. 1654A-217]]

    (e) Impact on Federal Employees.--The Secretary shall mitigate any 
adverse impact of the implementation of the Navy-Marine Corps Intranet 
on civilian employees of the Department of the Navy who, as of the date 
of the enactment of this Act, are performing functions that are included 
in the scope of the Navy-Marine Corps Intranet program by--
            (1) developing a comprehensive plan for the transition of 
        such employees to the performance of other functions within the 
        Department of the Navy;
            (2) taking full advantage of transition authorities 
        available for the benefit of employees;
            (3) encouraging the retraining of employees who express a 
        desire to qualify for reassignment to the performance of other 
        functions within the Department of the Navy; and
            (4) including a provision in the Navy-Marine Corps Intranet 
        contract that requires the contractor to provide a preference 
        for hiring employees of the Department of the Navy who, as of 
        the date of the enactment of this Act, are performing functions 
        that are included in the scope of the contract.

    (f ) Navy-Marine Corps Intranet Contract Defined.--In this section, 
the term ``Navy-Marine Corps Intranet contract'' means a contract 
providing for a long-term arrangement of the Department of the Navy with 
the commercial sector that imposes on the contractor a responsibility 
for, and transfers to the contractor the risk of, providing and managing 
the significant majority of desktop, server, infrastructure, and 
communication assets and services of the Department of the Navy.

SEC. 815. SENSE OF CONGRESS REGARDING INFORMATION TECHNOLOGY SYSTEMS FOR 
            GUARD AND RESERVE COMPONENTS.

    It is the sense of Congress--
            (1) that the Secretary of Defense should take appropriate 
        steps to provide for upgrading information technology systems of 
        the reserve components to ensure that those systems are capable, 
        as required for mission purposes, of communicating with other 
        relevant information technology systems of the military 
        department concerned and of the Department of Defense in 
        general; and
            (2) that the Secretary of each military department should 
        ensure that communications systems for the reserve components 
        under the Secretary's jurisdiction receive appropriate funding 
        for information technology systems in order to achieve the 
        capability referred to in paragraph (1).

              Subtitle C--Other Acquisition-Related Matters

SEC. 821. IMPROVEMENTS IN PROCUREMENTS OF SERVICES.

    (a) Preference for Performance-Based Service Contracting.--Not later 
than 180 days after the date of the enactment of this Act, the Federal 
Acquisition Regulation issued in accordance with sections 6 and 25 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 405 and 421) 
shall be revised to establish a preference for use of contracts and task 
orders for the purchase of services in the following order of 
precedence:

[[Page 114 STAT. 1654A-218]]

            (1) A performance-based contract or performance-based task 
        order that contains firm fixed prices for the specific tasks to 
        be performed.
            (2) Any other performance-based contract or performance-
        based task order.
            (3) Any contract or task order that is not a performance-
        based contract or a performance-based task order.

    (b) Incentive for Use of Performance-Based Service Contracts.--(1) A 
Department of Defense performance-based service contract or performance-
based task order may be treated as a contract for the procurement of 
commercial items if--
            (A) the contract or task order is valued at $5,000,000 or 
        less;
            (B) the contract or task order sets forth specifically each 
        task to be performed and, for each task--
                    (i) defines the task in measurable, mission-related 
                terms;
                    (ii) identifies the specific end products or output 
                to be achieved; and
                    (iii) contains a firm fixed price; and
            (C) the source of the services provides similar services 
        contemporaneously to the general public under terms and 
        conditions similar to those offered to the Federal Government.

    (2) The special simplified procedures provided in the Federal 
Acquisition Regulation pursuant to section 2304(g)(1)(B) of title 10, 
United States Code, shall not apply to a performance-based service 
contract or performance-based task order that is treated as a contract 
for the procurement of commercial items under paragraph (1).
    (3) Not later than 2 years after the date of the enactment of this 
Act, the Comptroller General shall submit a report on the implementation 
of this subsection to the congressional defense committees.
    (4) The authority under this subsection shall not apply to contracts 
entered into or task orders issued more than 3 years after the date of 
the enactment of this Act.
    (c) Centers of Excellence in Service Contracting.--Not later than 
180 days after the date of the enactment of this Act, the Secretary of 
each military department shall establish at least one center of 
excellence in contracting for services. Each center of excellence shall 
assist the acquisition community by identifying, and serving as a 
clearinghouse for, best practices in contracting for services in the 
public and private sectors.
    (d) Enhanced Training in Service Contracting.--(1) The Secretary of 
Defense shall ensure that classes focusing specifically on contracting 
for services are offered by the Defense Acquisition University and the 
Defense Systems Management College and are otherwise available to 
contracting personnel throughout the Department of Defense.
    (2) The Secretary of each military department and the head of each 
Defense Agency shall ensure that the personnel of the department or 
agency, as the case may be, who are responsible for the awarding and 
management of contracts for services receive appropriate training that 
is focused specifically on contracting for services.
    (e) Definitions.--In this section:

[[Page 114 STAT. 1654A-219]]

            (1) The term ``performance-based'', with respect to a 
        contract, a task order, or contracting, means that the contract, 
        task order, or contracting, respectively, includes the use of 
        performance work statements that set forth contract requirements 
        in clear, specific, and objective terms with measurable 
        outcomes.
            (2) The term ``commercial item'' has the meaning given the 
        term in section 4(12) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(12)).
            (3) The term ``Defense Agency'' has the meaning given the 
        term in section 101(a)(11) of title 10, United States Code.

SEC. 822. FINANCIAL ANALYSIS OF USE OF DUAL RATES FOR QUANTIFYING 
            OVERHEAD COSTS AT ARMY AMMUNITION PLANTS.

    (a) Requirement for Analysis.--The Secretary of the Army shall carry 
out a financial analysis of the costs that would be incurred and the 
benefits that would be derived from the implementation of a policy of 
using--
            (1) one set of rates for quantifying the overhead costs 
        associated with Government-owned ammunition plants of the 
        Department of the Army when allocating those costs to 
        contractors operating the plants; and
            (2) another set of rates for quantifying the overhead costs 
        to be allocated to the operation of such plants by employees of 
        the United States.

    (b) Report.--Not later than February 15, 2001, the Secretary shall 
submit to the congressional defense committees a report on the results 
of the analysis carried out under subsection (a). The report shall 
include the following:
            (1) The costs and benefits identified in the analysis under 
        subsection (a).
            (2) The risks to the United States of implementing a dual-
        rate policy described in subsection (a).
            (3) The effects that a use of dual rates under such a policy 
        would have on the defense industrial base of the United States.

SEC. 823. REPEAL OF PROHIBITION ON USE OF DEPARTMENT OF DEFENSE FUNDS 
            FOR PROCUREMENT OF NUCLEAR-CAPABLE SHIPYARD CRANE FROM A 
            FOREIGN SOURCE.

    Section 8093 of the Department of Defense Appropriations Act, 2000 
(Public Law 106-79; 113 Stat. 1253), is amended by striking subsection 
(d), relating to a prohibition on the use of Department of Defense funds 
to procure a nuclear-capable shipyard crane from a foreign source.

SEC. 824. EXTENSION OF WAIVER PERIOD FOR LIVE-FIRE SURVIVABILITY TESTING 
            FOR MH-47E AND MH-60K HELICOPTER MODIFICATION PROGRAMS.

    (a) Existing Waiver Period Not Applicable.--Section 2366(c)(1) of 
title 10, United States Code, shall not apply with respect to 
survivability and lethality tests for the MH-47E and MH-60K helicopter 
modification programs. Except as provided in the previous sentence, the 
provisions and requirements in section 2366(c) of such title shall apply 
with respect to such programs, and the certification required by 
subsection (b) shall comply with the requirements in paragraph (3) of 
such section.

[[Page 114 STAT. 1654A-220]]

    (b) Extended Period for Waiver.--With respect to the MH-47E and MH-
60K helicopter modification programs, the Secretary of Defense may waive 
the application of the survivability and lethality tests described in 
section 2366(a) of title 10, United States Code, if the Secretary, 
before full materiel release of the MH-47E and MH-60K helicopters for 
operational use, certifies to Congress that live-fire testing of the 
programs would be unreasonably expensive and impracticable.
    (c) Conforming Amendment.--Section 142(a) of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 
2338) is amended by striking ``and survivability testing'' in paragraphs 
(1) and (2).

SEC. 825. COMPLIANCE WITH EXISTING LAW REGARDING PURCHASES OF EQUIPMENT 
            AND PRODUCTS.

    (a) Sense of Congress Regarding Purchase by the Department of 
Defense of Equipment and Products.--It is the sense of Congress that any 
entity of the Department of Defense, in expending funds authorized by 
this Act for the purchase of equipment or products, should fully comply 
with the Buy American Act (41 U.S.C. 10a et seq.) and section 2533 of 
title 10, United States Code.
    (b) Debarment of Persons Convicted of Fraudulent Use of ``Made in 
America'' Labels.--If the Secretary of Defense determines that a person 
has been convicted of intentionally affixing a label bearing a ``Made in 
America'' inscription, or another inscription with the same meaning, to 
any product sold in or shipped to the United States that is not made in 
the United States, the Secretary shall determine, in accordance with 
section 2410f of title 10, United States Code, whether the person should 
be debarred from contracting with the Department of Defense.

SEC. 826. REQUIREMENT TO DISREGARD CERTAIN AGREEMENTS IN AWARDING 
            CONTRACTS FOR THE PURCHASE OF FIREARMS OR AMMUNITION.

    In accordance with the requirements contained in the amendments 
enacted in the Competition in Contracting Act of 1984 (title VII of 
division B of Public Law 98-369; 98 Stat. 1175), the Secretary of 
Defense may not, in awarding a contract for the purchase of firearms or 
ammunition, take into account whether a manufacturer or vendor of 
firearms or ammunition is a party to an agreement under which the 
manufacturer or vendor agrees to adopt limitations with respect to 
importing, manufacturing, or dealing in firearms or ammunition in the 
commercial market.

                     Subtitle D--Studies and Reports

SEC. 831. STUDY ON IMPACT OF FOREIGN SOURCING OF SYSTEMS ON LONG-TERM 
            MILITARY READINESS AND RELATED INDUSTRIAL INFRASTRUCTURE.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
analyzing in detail--
            (1) the amount and sources of parts, components, and 
        materials of the systems described in subsection (b) that are 
        obtained from foreign sources;
            (2) the impact of obtaining such parts, components, and 
        materials from foreign sources on the long-term readiness of

[[Page 114 STAT. 1654A-221]]

        the Armed Forces and on the economic viability of the national 
        technology and industrial base;
            (3) the impact on military readiness that would result from 
        the loss of the ability to obtain parts, components, and 
        materials identified pursuant to paragraph (1) from foreign 
        sources; and
            (4) the availability of domestic sources for parts, 
        components, and materials identified as being obtained from 
        foreign sources pursuant to paragraph (1).

    (b) Systems.--The systems referred to in subsection (a) are the 
following:
            (1) AH-64D Apache helicopter.
            (2) F/A-18 E/F aircraft.
            (3) M1A2 Abrams tank.
            (4) AIM-120 AMRAAM missile.
            (5) Patriot missile ground station.
            (6) Hellfire missile.

    (c) Source of Information.--The Secretary shall collect information 
to be analyzed under the study from prime contractors and first and 
second tier subcontractors.
    (d) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
describing the results of the study required by this section.
    (e) Definitions.--In this section:
            (1) The term ``domestic source'' means a person or 
        organization that falls within the term ``national technology 
        and industrial base'', as defined in section 2500(1) of title 
        10, United States Code.
            (2) The term ``foreign source'' means a person or 
        organization that does not fall within the meaning of the term 
        ``national technology and industrial base'', as defined in such 
        section.
            (3) The term ``national technology and industrial base'' has 
        the meaning given that term in such section.

SEC. 832. STUDY OF POLICIES AND PROCEDURES FOR TRANSFER OF COMMERCIAL 
            ACTIVITIES.

    (a) GAO-Convened Panel.--The Comptroller General shall convene a 
panel of experts to study the policies and procedures governing the 
transfer of commercial activities for the Federal Government from 
Government personnel to a Federal contractor, including--
            (1) procedures for determining whether functions should 
        continue to be performed by Government personnel;
            (2) procedures for comparing the costs of performance of 
        functions by Government personnel and the costs of performance 
        of such functions by Federal contractors;
            (3) implementation by the Department of Defense of the 
        Federal Activities Inventory Reform Act of 1998 (Public Law 105-
        270; 31 U.S.C. 501 note); and
            (4) procedures of the Department of Defense for public-
        private competitions pursuant to the Office of Management and 
        Budget Circular A-76.

    (b) Composition of Panel.--(1) The Comptroller General shall appoint 
highly qualified and knowledgeable persons to serve on the panel and 
shall ensure that the following entities receive fair representation on 
the panel:
            (A) The Department of Defense.

[[Page 114 STAT. 1654A-222]]

            (B) Persons in private industry.
            (C) Federal labor organizations.
            (D) The Office of Management and Budget.

    (2) For the purposes of the requirement for fair representation 
under paragraph (1), persons serving on the panel under subparagraph (C) 
of that paragraph shall not be counted as persons serving on the panel 
under subparagraph (A), (B), or (D) of that paragraph.
    (c) Chairman.--The Comptroller General, or an individual within the 
General Accounting Office designated by the Comptroller General, shall 
be the chairman of the panel.
    (d) Participation by Other Interested Parties.--The chairman shall 
ensure that all interested parties, including individuals who are not 
represented on the panel who are officers or employees of the United 
States, persons in private industry, or representatives of Federal labor 
organizations, have the opportunity to submit information and views on 
the matters being studied by the panel.
    (e) Information From Agencies.--The panel may request directly from 
any department or agency of the United States any information that the 
panel considers necessary to carry out a meaningful study of the 
policies and procedures described in subsection (a), including the 
Office of Management and Budget Circular A-76 process. To the extent 
consistent with applicable laws and regulations, the head of such 
department or agency shall furnish the requested information to the 
panel.
    (f ) Report.--Not later than May 1, 2002, the Comptroller General 
shall submit the report of the panel on the results of the study to 
Congress, including recommended changes with respect to implementation 
of policies and enactment of legislation.
    (g) Definition.--In this section, the term ``Federal labor 
organization'' has the meaning given the term ``labor organization'' in 
section 7103(a)(4) of title 5, United States Code.

SEC. 833. STUDY AND REPORT ON PRACTICE OF CONTRACT BUNDLING IN MILITARY 
            CONSTRUCTION CONTRACTS.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study regarding the use of the practice known as 
``contract bundling'' with respect to military construction contracts.
    (b) Report.--Not later than February 1, 2001, the Comptroller 
General shall submit to the committees on Armed Services of the Senate 
and the House of Representatives a report on the results of the study 
conducted under subsection (a).

SEC. 834. REQUIREMENT TO CONDUCT STUDY ON CONTRACT BUNDLING.

    (a) In General.--The Secretary of Defense shall conduct a 
comprehensive study on the practice known as ``contract bundling'' by 
the Department of Defense, and the effects of such practice on small 
business concerns, small business concerns owned and controlled by 
socially and economically disadvantaged individuals, small business 
concerns owned and controlled by women, and historically underutilized 
business zones (as such terms are used in the Small Business Act (15 
U.S.C. 631 et seq.)).
    (b) Deadline.--The Secretary shall submit the results of the study 
to the Committees on Armed Services and Small Business of the Senate and 
the House of Representatives before submission of the budget request of 
the Department of Defense for fiscal year 2002.

[[Page 114 STAT. 1654A-223]]

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Overall supervision of Department of Defense activities for 
           combating terrorism.
Sec. 902. Change of title of certain positions in the Headquarters, 
           Marine Corps.
Sec. 903. Clarification of scope of Inspector General authorities under 
           military whistleblower law.
Sec. 904. Policy to ensure conduct of science and technology programs so 
           as to foster the transition of science and technology to 
           higher levels of research, development, test, and evaluation.
Sec. 905. Additional components of Chairman of the Joint Chiefs of staff 
           annual report on combatant command requirements.

             Subtitle B--Department of Defense Organizations

Sec. 911. Western Hemisphere Institute for Security Cooperation.
Sec. 912. Department of Defense regional centers for security studies.
Sec. 913. Change in name of Armed Forces Staff College to Joint Forces 
           Staff College.
Sec. 914. Special authority for administration of Navy Fisher Houses.
Sec. 915. Supervisory control of Armed Forces Retirement Home board by 
           Secretary of Defense.
Sec. 916. Semiannual report on Joint Requirements Oversight Council 
           reform initiative.
Sec. 917. Comptroller General review of operations of Defense Logistics 
           Agency.
Sec. 918. Comptroller General review of operations of Defense 
           Information Systems Agency.

                    Subtitle C--Information Security

Sec. 921. Institute for Defense Computer Security and Information 
           Protection.
Sec. 922. Information security scholarship program.

                           Subtitle D--Reports

Sec. 931. Date of submittal of reports on shortfalls in equipment 
           procurement and military construction for the reserve 
           components in future-years defense programs.
Sec. 932. Report on number of personnel assigned to legislative liaison 
           functions.
Sec. 933. Joint report on establishment of national collaborative 
           information analysis capability.
Sec. 934. Network centric warfare.
Sec. 935. Report on Air Force Institute of Technology.

                        Subtitle E--Other Matters

Sec. 941. Flexibility in implementation of limitation on major 
           Department of Defense headquarters activities personnel.
Sec. 942. Consolidation of certain Navy gift funds.
Sec. 943. Temporary authority to dispose of a gift previously accepted 
           for the Naval Academy.

   Subtitle A--Duties and Functions of Department of Defense Officers

SEC. 901. OVERALL SUPERVISION OF DEPARTMENT OF DEFENSE ACTIVITIES FOR 
            COMBATING TERRORISM.

    Section 138(b) of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(6)(A) One of the Assistant Secretaries, as designated by the 
Secretary of Defense from among those Assistant Secretaries with 
responsibilities that include responsibilities related to combating 
terrorism, shall have, among that Assistant Secretary's duties, the duty 
to provide overall direction and supervision for policy, program

[[Page 114 STAT. 1654A-224]]

planning and execution, and allocation and use of resources for the 
activities of the Department of Defense for combating terrorism, 
including antiterrorism activities, counterterrorism activities, 
terrorism consequences management activities, and terrorism-related 
intelligence support activities.
    ``(B) The Assistant Secretary designated under subparagraph (A) 
shall be the principal civilian adviser to the Secretary of Defense on 
combating terrorism and (after the Secretary and Deputy Secretary) shall 
be the principal official within the senior management of the Department 
of Defense responsible for combating terrorism.
    ``(C) If the Secretary of Defense designates under subparagraph (A) 
an Assistant Secretary other than the Assistant Secretary of Defense for 
Special Operations and Low Intensity Conflict, then the responsibilities 
of the Assistant Secretary of Defense for Special Operations and Low 
Intensity Conflict related to combating terrorism shall be exercised 
subject to subparagraph (B).''.

SEC. 902. CHANGE OF TITLE OF CERTAIN POSITIONS IN THE HEADQUARTERS, 
            MARINE CORPS.

    (a) Institution of Positions as Deputy Commandants.--Section 5041(b) 
of title 10, United States Code, is amended--
            (1) by striking paragraphs (3) through (5) and inserting the 
        following:
            ``(3) The Deputy Commandants.''; and
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (4) and (5), respectively.

    (b) Designation of Deputy Commandants.--(1) Section 5045 of such 
title is amended to read as follows:

``Sec. 5045. Deputy Commandants

    ``There are in the Headquarters, Marine Corps, not more than five 
Deputy Commandants, detailed by the Secretary of the Navy from officers 
on the active-duty list of the Marine Corps.''.
    (2) The item relating to section 5045 in the table of sections at 
the beginning of chapter 506 of such title is amended to read as 
follows:

``5045. Deputy Commandants.''.

    (c) Conforming Amendment.--Section 1502(7)(D) of the Armed Forces 
Retirement Home Act of 1991 (24 U.S.C. 401) is amended to read as 
follows:
                    ``(D) the Deputy Commandant of the Marine Corps with 
                responsibility for personnel matters.''.

SEC. 903. CLARIFICATION OF SCOPE OF INSPECTOR GENERAL AUTHORITIES UNDER 
            MILITARY WHISTLEBLOWER LAW.

    (a) Clarification of Responsibilities.--Subsection (c)(3)(A) of 
section 1034 of title 10, United States Code, is amended by inserting 
``, in accordance with regulations prescribed under subsection (h),'' 
after ``shall expeditiously determine''.
    (b) Redefinition of Inspector General.--Subsection (i)(2) of such 
section is amended--
            (1) by inserting ``any of'' in the matter preceding 
        subparagraph (A) after ``means'';
            (2) by striking subparagraphs (C), (D), (E), (F) and (G); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph (C):

[[Page 114 STAT. 1654A-225]]

                    ``(C) Any officer of the armed forces or employee of 
                the Department of Defense who is assigned or detailed to 
                serve as an Inspector General at any level in the 
                Department of Defense.''.

SEC. 904. POLICY TO ENSURE CONDUCT OF SCIENCE AND TECHNOLOGY PROGRAMS SO 
            AS TO FOSTER THE TRANSITION OF SCIENCE AND TECHNOLOGY TO 
            HIGHER LEVELS OF RESEARCH, DEVELOPMENT, TEST, AND 
            EVALUATION.

    (a) In General.--(1) Chapter 139 of title 10, United States Code, is 
amended by inserting after section 2358 the following new section:

``Sec. 2359. Science and technology programs to be conducted so as to 
                        foster the transition of science and technology 
                        to higher levels of research, development, test, 
                        and evaluation

    ``(a) Policy.--Each official specified in subsection (b) shall 
ensure that the management and conduct of the science and technology 
programs under the authority of that official are carried out in a 
manner that will foster the transition of science and technology to 
higher levels of research, development, test, and evaluation.
    ``(b) Covered Officials.--Subsection (a) applies to the following 
officials of the Department of Defense:
            ``(1) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            ``(2) The Secretary of each military department.
            ``(3) The Director of the Defense Advanced Research Projects 
        Agency.
            ``(4) The directors and heads of other offices and agencies 
        of the Department of Defense with assigned research, 
        development, test, and evaluation responsibilities.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2358 the 
following new item:

``2359. Science and technology programs to be conducted so as to foster 
           the transition of science and technology to higher levels of 
           research, development, test, and evaluation.''.

    (b) Office of Naval Research.--Section 5022(b) of title 10, United 
States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) the execution of, and management responsibility for, 
        programs for which funds are provided in the basic and applied 
        research and advanced technology categories of the Department of 
        the Navy research, development, test, and evaluation budget in 
        such a manner that will foster the transition of science and 
        technology to higher levels of research, development, test, and 
        evaluation.''.

[[Page 114 STAT. 1654A-226]]

SEC. 905. ADDITIONAL COMPONENTS OF CHAIRMAN OF THE JOINT CHIEFS OF STAFF 
            ANNUAL REPORT ON COMBATANT COMMAND REQUIREMENTS.

    (a) Additional Components.--Section 153(d)(1) of title 10, United 
States Code, is amended by adding at the end the following new 
subparagraphs:
            ``(C) A description of the extent to which the most recent 
        future-years defense program (under section 221 of this title) 
        addresses the requirements on the consolidated lists.
            ``(D) A description of the funding proposed in the 
        President's budget for the next fiscal year, and for the 
        subsequent fiscal years covered by the most recent future-years 
        defense program, to address each deficiency in readiness 
        identified during the joint readiness review conducted under 
        section 117 of this title for the first quarter of the current 
        fiscal year.''.

    (b) Time for Submission.--Such section is further amended by 
striking ``Not later than August 15 of each year,'' and inserting ``At 
or about the time that the budget is submitted to Congress for a fiscal 
year under section 1105(a) of title 31,''.

             Subtitle B--Department of Defense Organizations

SEC. 911. WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    (a) In General.--Chapter 108 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2166. Western Hemisphere Institute for Security Cooperation

    ``(a) Establishment and Administration.--(1) The Secretary of 
Defense may operate an education and training facility for the purpose 
set forth in subsection (b). The facility shall be known as the `Western 
Hemisphere Institute for Security Cooperation'.
    ``(2) The Secretary may designate the Secretary of a military 
department as the Department of Defense executive agent for carrying out 
the responsibilities of the Secretary of Defense under this section.
    ``(b) Purpose.--The purpose of the Institute is to provide 
professional education and training to eligible personnel of nations of 
the Western Hemisphere within the context of the democratic principles 
set forth in the Charter of the Organization of American States (such 
charter being a treaty to which the United States is a party), while 
fostering mutual knowledge, transparency, confidence, and cooperation 
among the participating nations and promoting democratic values, respect 
for human rights, and knowledge and understanding of United States 
customs and traditions.
    ``(c) Eligible Personnel.--(1) Subject to paragraph (2), personnel 
of nations of the Western Hemisphere are eligible for education and 
training at the Institute as follows:
            ``(A) Military personnel.
            ``(B) Law enforcement personnel.
            ``(C) Civilian personnel.

    ``(2) The Secretary of State shall be consulted in the selection of 
foreign personnel for education or training at the Institute.

[[Page 114 STAT. 1654A-227]]

    ``(d) Curriculum.--(1) The curriculum of the Institute shall include 
mandatory instruction for each student, for at least 8 hours, on human 
rights, the rule of law, due process, civilian control of the military, 
and the role of the military in a democratic society.
    ``(2) The curriculum may include instruction and other educational 
and training activities on the following:
            ``(A) Leadership development.
            ``(B) Counterdrug operations.
            ``(C) Peace support operations.
            ``(D) Disaster relief.
            ``(E) Any other matter that the Secretary determines 
        appropriate.

    ``(e) Board of Visitors.--(1) There shall be a Board of Visitors for 
the Institute. The Board shall be composed of the following:
            ``(A) The chairman and ranking minority member of the 
        Committee on Armed Services of the Senate, or a designee of 
        either of them.
            ``(B) The chairman and ranking minority member of the 
        Committee on Armed Services of the House of Representatives, or 
        a designee of either of them.
            ``(C) Six persons designated by the Secretary of Defense 
        including, to the extent practicable, persons from academia and 
        the religious and human rights communities.
            ``(D) One person designated by the Secretary of State.
            ``(E) The senior military officer responsible for training 
        and doctrine for the Army or, if the Secretary of the Navy or 
        the Secretary of the Air Force is designated as the executive 
        agent of the Secretary of Defense under subsection (a)(2), the 
        senior military officer responsible for training and doctrine 
        for the Navy or Marine Corps or for the Air Force, respectively, 
        or a designee of the senior military officer concerned.
            ``(F) The commander of the unified combatant command having 
        geographic responsibility for Latin America, or a designee of 
        that officer.

    ``(2) A vacancy in a position on the Board shall be filled in the 
same manner as the position was originally filled.
    ``(3) The Board shall meet at least once each year.
    ``(4)(A) The Board shall inquire into the curriculum, instruction, 
physical equipment, fiscal affairs, and academic methods of the 
Institute, other matters relating to the Institute that the Board 
decides to consider, and any other matter that the Secretary of Defense 
determines appropriate.
    ``(B) The Board shall review the curriculum of the Institute to 
determine whether--
            ``(i) the curriculum complies with applicable United States 
        laws and regulations;
            ``(ii) the curriculum is consistent with United States 
        policy goals toward Latin America and the Caribbean;
            ``(iii) the curriculum adheres to current United States 
        doctrine; and
            ``(iv) the instruction under the curriculum appropriately 
        emphasizes the matters specified in subsection (d)(1).

    ``(5) Not later than 60 days after its annual meeting, the Board 
shall submit to the Secretary of Defense a written report of its 
activities and of its views and recommendations pertaining to the 
Institute.

[[Page 114 STAT. 1654A-228]]

    ``(6) Members of the Board shall not be compensated by reason of 
service on the Board.
    ``(7) With the approval of the Secretary of Defense, the Board may 
accept and use the services of voluntary and uncompensated advisers 
appropriate to the duties of the Board without regard to section 1342 of 
title 31.
    ``(8) Members of the Board and advisers whose services are accepted 
under paragraph (7) shall be allowed travel and transportation expenses, 
including per diem in lieu of subsistence, while away from their homes 
or regular places of business in the performance of services for the 
Board. Allowances under this paragraph shall be computed--
            ``(A) in the case of members of the Board who are officers 
        or employees of the United States, at rates authorized for 
        employees of agencies under subchapter I of chapter 57 of title 
        5; and
            ``(B) in the case of other members of the Board and 
        advisers, as authorized under section 5703 of title 5 for 
        employees serving without pay.

    ``(9) The Federal Advisory Committee Act (5 U.S.C. App. 2), other 
than section 14 (relating to termination after two years), shall apply 
to the Board.
    ``(f ) Fixed Costs.--The fixed costs of operating and maintaining 
the Institute for a fiscal year may be paid from--
            ``(1) any funds available for that fiscal year for operation 
        and maintenance for the executive agent designated under 
        subsection (a)(2); or
            ``(2) if no executive agent is designated under subsection 
        (a)(2), any funds available for that fiscal year for the 
        Department of Defense for operation and maintenance for Defense-
        wide activities.

    ``(g) Tuition.--Tuition fees charged for persons who attend the 
Institute may not include the fixed costs of operating and maintaining 
the Institute.
    ``(h) Annual Report.--Not later than March 15 of each year, the 
Secretary of Defense shall submit to Congress a detailed report on the 
activities of the Institute during the preceding year. The report shall 
be prepared in consultation with the Secretary of State.''.
    (b) Repeal of Authority for United States Army School of the 
Americas.--Section 4415 of title 10, United States Code, is repealed.
    (c) Clerical Amendments.--(1) The table of sections at the beginning 
of chapter 108 of title 10, United States Code, is amended by inserting 
after the item relating to section 2165 the following new item:

``2166. Western Hemisphere Institute for Security Cooperation.''.

    (2) The table of sections at the beginning of chapter 407 of such 
title is amended by striking the item relating to section 4415.

SEC. 912. DEPARTMENT OF DEFENSE REGIONAL CENTERS FOR SECURITY STUDIES.

    (a) Requirement for Annual Report.--(1) Chapter 7 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

[[Page 114 STAT. 1654A-229]]

``Sec. 184. Department of Defense regional centers for security studies

    ``(a) Advance Notification to Congress of the Establishment of New 
Regional Centers.--After the date of the enactment of this section, a 
regional center for security studies may not be established in the 
Department of Defense until--
            ``(1) the Secretary of Defense submits to Congress a 
        notification of the intent of the Secretary to establish the 
        center, including a description of the mission and functions of 
        the proposed center and a justification for the proposed center; 
        and
            ``(2) a period of 90 days has elapsed after the date on 
        which that notification is submitted.

    ``(b) Requirement for Annual Report.--Not later than February 1 of 
each year, 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 operation of the Department of 
Defense regional centers for security studies during the preceding 
fiscal year. The annual report shall include, for each regional center, 
the following information:
            ``(1) The status and objectives of the center.
            ``(2) The budget of the center, including the costs of 
        operating the center.
            ``(3) A description of the extent of the international 
        participation in the programs of the center, including the costs 
        incurred by the United States for the participation of each 
        foreign nation.
            ``(4) A description of the foreign gifts and donations, if 
        any, accepted under any of the following provisions of law:
                    ``(A) Section 2611 of this title.
                    ``(B) Section 1306 of the National Defense 
                Authorization Act for Fiscal Year 1995 (Public Law 103-
                337; 108 Stat. 2892).
                    ``(C) Section 1065 of the National Defense 
                Authorization Act for Fiscal Year 1997 (Public Law 104-
                201; 110 Stat. 2653; 10 U.S.C. 113 note).

    ``(c) Regional Center for Security Studies Defined.--For the 
purposes of this section, a regional center for security studies is any 
center within the Department of Defense that--
            ``(1) is operated, and designated as such, by the Secretary 
        of Defense for the study of security issues relating to a 
        specified geographic region of the world; and
            ``(2) serves as a forum for bilateral and multilateral 
        communication and military and civilian exchanges with nations 
        in that region.''.

    (2) The table of sections at the beginning of chapter 7 of such 
title is amended by adding at the end the following new item:

``184. Department of Defense regional centers for security studies.''.

    (b) First Annual Report.--In the first annual report on Department 
of Defense regional centers for security studies under section 184(b) of 
title 10, United States Code (as added by subsection (a)), to be 
submitted not later than February 1, 2001, the Secretary of Defense 
shall include any recommendation for legislation that the Secretary 
considers appropriate for the operation of Department

[[Page 114 STAT. 1654A-230]]

of Defense regional centers for security studies, together with a 
detailed justification for the recommended legislation.

SEC. 913. CHANGE IN NAME OF ARMED FORCES STAFF COLLEGE TO JOINT FORCES 
            STAFF COLLEGE.

    (a) Change in Name.--The Armed Forces Staff College of the 
Department of Defense is hereby renamed the ``Joint Forces Staff 
College''.
    (b) Conforming Amendment.--Section 2165(b)(3) of title 10, United 
States Code, is amended by striking ``Armed Forces Staff College'' and 
inserting ``Joint Forces Staff College''.
    (c) References.--Any reference to the Armed Forces Staff College in 
any law, regulation, map, document, record, or other paper of the United 
States shall be considered to be a reference to the Joint Forces Staff 
College.

SEC. 914. SPECIAL AUTHORITY FOR ADMINISTRATION OF NAVY FISHER HOUSES.

    (a) Base Operating Support.--Section 2493 of title 10, United States 
Code, is amended--
            (1) by redesignating subsection (f ) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f ):

    ``(f ) Special Authority for Navy.--The Secretary of the Navy shall 
provide base operating support for Fisher Houses associated with health 
care facilities of the Navy. The level of the support shall be 
equivalent to the base operating support that the Secretary provides for 
morale, welfare, and recreation category B community activities (as 
defined in regulations, prescribed by the Secretary, that govern morale, 
welfare, and recreation activities associated with Navy 
installations).''.
    (b) Savings Provisions for Certain Navy Employees.--(1) The 
Secretary of the Navy may continue to employ, and pay out of 
appropriated funds, any employee of the Navy in the competitive service 
who, as of October 17, 1998, was employed by the Navy in a position at a 
Fisher House administered by the Navy, but only for so long as the 
employee is continuously employed in that position.
    (2) After a person vacates a position in which the person was 
continued to be employed under the authority of paragraph (1), a person 
employed in that position shall be employed as an employee of a 
nonappropriated fund instrumentality of the United States and may not be 
paid for services in that position out of appropriated funds.
    (3) In this subsection:
            (A) The term ``Fisher House'' has the meaning given the term 
        in section 2493(a)(1) of title 10, United States Code.
            (B) The term ``competitive service'' has the meaning given 
        the term in section 2102 of title 5, United States Code.

    (c) Effective Date.--(1) The amendments made by subsection (a) shall 
be effective as of October 17, 1998, as if included in section 2493 of 
title 10, United States Code, as enacted by section 906(a) of Public Law 
105-261.
    (2) Subsection (b) applies with respect to the pay period that 
includes October 17, 1998, and subsequent pay periods.

[[Page 114 STAT. 1654A-231]]

SEC. 915. SUPERVISORY CONTROL OF ARMED FORCES RETIREMENT HOME BOARD BY 
            SECRETARY OF DEFENSE.

    The Armed Forces Retirement Home Act of 1991 (title XV of Public Law 
101-510; 24 U.S.C. 401 et seq.) is amended by inserting after section 
1523 the following new section:

``SEC. 1524. CONDITIONAL SUPERVISORY CONTROL OF RETIREMENT HOME BOARD BY 
            SECRETARY OF DEFENSE.

    ``(a) Applicability.--This section shall apply only when the 
deduction authorized by section 1007(i)(1) of title 37, United States 
Code, to be made from the monthly pay of certain members of the armed 
forces is equal to $1.00 for each enlisted member, warrant officer, and 
limited duty officer of the armed forces on active duty.
    ``(b) Board Authority Subject to Secretary's Control.--The 
Retirement Home Board shall be subject to the authority, direction, and 
control of the Secretary of Defense in the performance of the Board's 
duties under section 1516.
    ``(c) Appointment of Board Members.--When an appointment of a member 
of the Retirement Home Board under section 1515 is not made by the 
Secretary of Defense, the appointment shall be subject to the approval 
of the Secretary of Defense.
    ``(d) Terms of Board Members.--(1) Notwithstanding section 
1515(e)(3), only the Secretary of Defense may appoint a member of the 
Retirement Home Board for a second consecutive term.
    ``(2) The Secretary of Defense may terminate the appointment of a 
member of the Retirement Home Board at the pleasure of the Secretary.
    ``(e) Responsibility of Chairman to the Secretary.--Notwithstanding 
section 1515(d)(1)(B), the chairman of the Retirement Home Board shall 
be responsible to the Secretary of Defense, but not to the Secretaries 
of the military departments, for direction and management of the 
Retirement Home or each facility maintained as a separate facility of 
the Retirement Home.''.

SEC. 916. SEMIANNUAL REPORT ON JOINT REQUIREMENTS OVERSIGHT COUNCIL 
            REFORM INITIATIVE.

    (a) Semiannual Report.--The Chairman of the Joints Chiefs of Staff 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a series of 
five semiannual reports, as prescribed by subsection (b), on the 
activities of the Joint Requirements Oversight Council. The principal 
focus of each such report shall be on the progress made on the 
initiative of the Chairman to reform and refocus the Joint Requirements 
Oversight Council.
    (b) Submission of Reports.--Reports under this section shall be 
submitted not later than March 1, 2001, September 1, 2001, March 1, 
2002, September 1, 2002, and March 1, 2003. Each report shall cover the 
half of a fiscal year that ends five months before the date on which the 
report is due.
    (c) Content.--In the case of any report under this section after the 
first such report, if any matter to be included is unchanged from the 
preceding report, that matter may be included by reference to the 
preceding report. Each such report shall include, to the extent 
practicable, the following:
            (1) A listing of each of the capability areas designated by 
        the Chairman of the Joints Chiefs of Staff as being within

[[Page 114 STAT. 1654A-232]]

        the principal domain of the Joint Requirements Oversight Council 
        and a justification for each such designation.
            (2) A listing of the joint requirements developed, 
        considered, or approved within each of the capability areas 
        listed pursuant to paragraph (1).
            (3) A listing and explanation of the decisions made by the 
        Joint Requirements Oversight Council and, to the extent 
        appropriate, a listing of each of the recommendations to the 
        Council made by the commander of the United States Joint Forces 
        Command.
            (4) An assessment of--
                    (A) the progress made in shifting the Joint 
                Requirements Oversight Council to having a more 
                strategic focus on future war fighting requirements;
                    (B) the progress made on integration of 
                requirements; and
                    (C) the progress made on development of overarching 
                common architectures for defense information systems to 
                ensure that common defense information systems are fully 
                interoperable.
            (5) A description of any actions that have been taken to 
        improve the Joint Requirements Oversight Council.

SEC. 917. COMPTROLLER GENERAL REVIEW OF OPERATIONS OF DEFENSE LOGISTICS 
            AGENCY.

    (a) Comptroller General Review Required.--The Comptroller General 
shall review the operations of the Defense Logistics Agency--
            (1) to assess--
                    (A) the efficiency of those operations;
                    (B) the effectiveness of those operations in meeting 
                customer requirements; and
                    (C) the flexibility of those operations to adopt 
                best business practices; and
            (2) to identify alternative approaches for improving the 
        operations of that agency.

    (b) Report.--Not later than February 1, 2002, the Comptroller 
General shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives one or more reports setting forth the 
Comptroller General's findings resulting from the review under 
subsection (a).

SEC. 918. COMPTROLLER GENERAL REVIEW OF OPERATIONS OF DEFENSE 
            INFORMATION SYSTEMS AGENCY.

    (a) Comptroller General Review Required.--The Comptroller General 
shall review the operations of the Defense Information Systems Agency--
            (1) to assess--
                    (A) the efficiency of those operations;
                    (B) the effectiveness of those operations in meeting 
                customer requirements; and
                    (C) the flexibility of those operations to adopt 
                best business practices; and
            (2) to identify alternative approaches for improving the 
        operations of that agency.

    (b) Report.--Not later than February 1, 2002, the Comptroller 
General shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives one or more reports

[[Page 114 STAT. 1654A-233]]

setting forth the Comptroller General's findings resulting from the 
review under subsection (a).

                    Subtitle C--Information Security

SEC. 921. INSTITUTE FOR DEFENSE COMPUTER SECURITY AND INFORMATION 
            PROTECTION.

    (a) Establishment.--The Secretary of Defense shall establish an 
Institute for Defense Computer Security and Information Protection.
    (b) Mission.--The Secretary shall require the institute--
            (1) to conduct research and technology development that is 
        relevant to foreseeable computer and network security 
        requirements and information assurance requirements of the 
        Department of Defense with a principal focus on areas not being 
        carried out by other organizations in the private or public 
        sector; and
            (2) to facilitate the exchange of information regarding 
        cyberthreats, technology, tools, and other relevant issues.

    (c) Contractor Operation.--The Secretary shall enter into a contract 
with a not-for-profit entity, or a consortium of not-for-profit 
entities, to organize and operate the institute. The Secretary shall use 
competitive procedures for the selection of the contractor to the extent 
determined necessary by the Secretary.
    (d) Funding.--Of the amount authorized to be appropriated by section 
301(5), $5,000,000 shall be available for the Institute for Defense 
Computer Security and Information Protection.
    (e) Report.--Not later than April 1, 2001, the Secretary shall 
submit to the congressional defense committees the Secretary's plan for 
implementing this section.

SEC. 922. INFORMATION SECURITY SCHOLARSHIP PROGRAM.

    (a) Establishment of Program.--(1) Part III of subtitle A of title 
10, United States Code, is amended by adding at the end the following 
new chapter:

         ``CHAPTER 112--INFORMATION SECURITY SCHOLARSHIP PROGRAM

``Sec.
``2200.  Programs; purpose.
``2200a. Scholarship program.
``2200b. Grant program.
``2200c. Centers of Academic Excellence in Information Assurance 
           Education.
``2200d. Regulations.
``2200e. Definitions.
``2200f. Inapplicability to Coast Guard.

``Sec. 2200. Programs; purpose

    ``(a) In General.--To encourage the recruitment and retention of 
Department of Defense personnel who have the computer and network 
security skills necessary to meet Department of Defense information 
assurance requirements, the Secretary of Defense may carry out programs 
in accordance with this chapter to provide financial support for 
education in disciplines relevant to those requirements at institutions 
of higher education.
    ``(b) Types of Programs.--The programs authorized under this chapter 
are as follows:

[[Page 114 STAT. 1654A-234]]

            ``(1) Scholarships for pursuit of programs of education in 
        information assurance at institutions of higher education.
            ``(2) Grants to institutions of higher education.

``Sec. 2200a. Scholarship program

    ``(a) Authority.--The Secretary of Defense may, subject to 
subsection (g), provide financial assistance in accordance with this 
section to a person--
            ``(1) who is pursuing an associate, baccalaureate, or 
        advanced degree, or a certification, in an information assurance 
        discipline referred to in section 2200(a) of this title at an 
        institution of higher education; and
            ``(2) who enters into an agreement with the Secretary as 
        described in subsection (b).

    ``(b) Service Agreement for Scholarship Recipients.--(1) To receive 
financial assistance under this section--
            ``(A) a member of the armed forces shall enter into an 
        agreement to serve on active duty in the member's armed force 
        for the period of obligated service determined under paragraph 
        (2);
            ``(B) an employee of the Department of Defense shall enter 
        into an agreement to continue in the employment of the 
        department for the period of obligated service determined under 
        paragraph (2); and
            ``(C) a person not referred to in subparagraph (A) or (B) 
        shall enter into an agreement--
                    ``(i) to enlist or accept a commission in one of the 
                armed forces and to serve on active duty in that armed 
                force for the period of obligated service determined 
                under paragraph (2); or
                    ``(ii) 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 financial assistance 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 and otherwise to achieve the goals set forth in section 
2200(a) of this title. In no event may the period of service required of 
a recipient be less than the period equal to three-fourths of the total 
period of pursuit of a degree for which the Secretary agrees to provide 
the recipient with financial assistance under this section. The period 
of obligated service is in addition to any other period for which the 
recipient is obligated to serve on active duty or in the civil service, 
as the case may be.
    ``(3) An agreement entered into under this section by a person 
pursuing an academic degree shall include terms that provide the 
following:
            ``(A) That the period of obligated service begins on a date 
        after the award of the degree that is determined under the 
        regulations prescribed under section 2200d of this title.
            ``(B) That the person will maintain satisfactory academic 
        progress, as determined in accordance with those regulations, 
        and that failure to maintain such progress constitutes grounds 
        for termination of the financial assistance for the person under 
        this section.

[[Page 114 STAT. 1654A-235]]

            ``(C) Any other terms and conditions that the Secretary of 
        Defense determines appropriate for carrying out this section.

    ``(c) Amount of Assistance.--The amount of the financial assistance 
provided for a person under this section 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.
    ``(d) Use of Assistance for Support of Internships.--The financial 
assistance for a person under this section may also be provided to 
support internship activities of the person at the Department of Defense 
in periods between the academic years leading to the degree for which 
assistance is provided the person under this section.
    ``(e) 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 (b) 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 and otherwise to achieve the goals 
set forth in section 2200(a) of this title.
    ``(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.
    ``(f ) Effect of Discharge in Bankruptcy.--A discharge in bankruptcy 
under title 11 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 subsection (e).
    ``(g) Allocation of Funding.--Not less than 50 percent of the amount 
available for financial assistance under this section for a fiscal year 
shall be available only for providing financial assistance for the 
pursuit of degrees referred to in subsection (a) at institutions of 
higher education that have established, improved, or are administering 
programs of education in information assurance under the grant program 
established in section 2200b of this title, as determined by the 
Secretary of Defense.

``Sec. 2200b. Grant program

    ``(a) Authority.--The Secretary of Defense may provide grants of 
financial assistance to institutions of higher education to support the 
establishment, improvement, or administration of programs of education 
in information assurance disciplines referred to in section 2200(a) of 
this title.
    ``(b) Purposes.--The proceeds of grants under this section may be 
used by an institution of higher education for the following purposes:
            ``(1) Faculty development.
            ``(2) Curriculum development.
            ``(3) Laboratory improvements.

[[Page 114 STAT. 1654A-236]]

            ``(4) Faculty research in information security.

``Sec. 2200c. Centers of Academic Excellence in Information Assurance 
                        Education

    ``In the selection of a recipient for the award of a scholarship or 
grant under this chapter, consideration shall be given to whether--
            ``(1) in the case of a scholarship, the institution at which 
        the recipient pursues a degree is a Center of Academic 
        Excellence in Information Assurance Education; and
            ``(2) in the case of a grant, the recipient is a Center of 
        Academic Excellence in Information Assurance Education.

``Sec. 2200d. Regulations

    ``The Secretary of Defense shall prescribe regulations for the 
administration of this chapter.

``Sec. 2200e. Definitions

    ``In this chapter:
            ``(1) The term `information assurance' includes the 
        following:
                    ``(A) Computer security.
                    ``(B) Network security.
                    ``(C) Any other information technology that the 
                Secretary of Defense considers related to information 
                assurance.
            ``(2) The term `institution of higher education' has the 
        meaning given the term in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001).
            ``(3) The term `Center of Academic Excellence in Information 
        Assurance Education' means an institution of higher education 
        that is designated by the Director of the National Security 
        Agency as a Center of Academic Excellence in Information 
        Assurance Education.

``Sec. 2200f. Inapplicability to Coast Guard

    ``This chapter does not apply to the Coast Guard when it is not 
operating as a service in the Navy.''.
    (2) The tables of chapters at the beginning of subtitle A of title 
10, United States Code, and the beginning of part III of such subtitle 
are amended by inserting after the item relating to chapter 111 the 
following new item:

``112. Information Security Scholarship Program..................2200''.

    (b) Funding.--Of the amount authorized to be appropriated by section 
301(5), $15,000,000 shall be available for carrying out chapter 112 of 
title 10, United States Code (as added by subsection (a)).
    (c) Report.--Not later than April 1, 2001, the Secretary of Defense 
shall submit to the congressional defense committees a plan for 
implementing the programs under chapter 112 of title 10, United States 
Code.

[[Page 114 STAT. 1654A-237]]

                           Subtitle D--Reports

SEC. 931. DATE OF SUBMITTAL OF REPORTS ON SHORTFALLS IN EQUIPMENT 
            PROCUREMENT AND MILITARY CONSTRUCTION FOR THE RESERVE 
            COMPONENTS IN FUTURE-YEARS DEFENSE PROGRAMS.

    Section 10543(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3) A report required under paragraph (1) for a fiscal year shall 
be submitted not later than 15 days after the date on which the 
President submits to Congress the budget for such fiscal year under 
section 1105(a) of title 31.''.

SEC. 932. REPORT ON NUMBER OF PERSONNEL ASSIGNED TO LEGISLATIVE LIAISON 
            FUNCTIONS.

    (a) Report.--Not later than December 1, 2000, 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 setting forth the number of personnel of the Department of 
Defense performing legislative liaison functions as of April 1, 2000.
    (b) Matters To Be Included.--The report shall include the following:
            (1) The number of military and civilian personnel of the 
        Department of Defense assigned to full-time legislative liaison 
        functions, shown by organizational entity and by pay grade.
            (2) The number of military and civilian personnel of the 
        Department not covered by paragraph (1) (other than personnel 
        described in subsection (e)) who perform legislative liaison 
        functions as part of their assigned duties, shown by 
        organizational entity and by pay grade.

    (c) Legislative Liaison Functions.--For purposes of this section, a 
legislative liaison function is a function (regardless of how 
characterized within the Department of Defense) that has been 
established or designated to principally provide advice, information, 
and assistance to the legislative branch on Department of Defense 
policies, plans, and programs.
    (d) Organizational Entities.--The display of information under 
subsection (b) by organizational entity shall be for the Department of 
Defense and for each military department as a whole and separately for 
each organization at the level of major command or Defense Agency or 
higher.
    (e) Personnel Not Covered.--Subsection (b)(2) does not apply to 
civilian officers appointed by the President, by and with the advice and 
consent of the Senate, or to general or flag officers.

SEC. 933. JOINT REPORT ON ESTABLISHMENT OF NATIONAL COLLABORATIVE 
            INFORMATION ANALYSIS CAPABILITY.

    (a) Report.--Not later than March 1, 2000, the Secretary of Defense 
and the Director of Central Intelligence shall submit to the 
congressional defense committees and the congressional intelligence 
committees a joint report assessing alternatives for the establishment 
of a national collaborative information analysis capability. The report 
shall include the following:

[[Page 114 STAT. 1654A-238]]

            (1) An assessment of alternative architectures to establish 
        a national collaborative information analysis capability to 
        conduct data mining and profiling of information from a wide 
        array of electronic data sources.
            (2) Identification, from among the various architectures 
        assessed under paragraph (1), of the preferred architecture and 
        a detailed description of that architecture and of a program to 
        acquire and implement the capability that would be provided 
        through that architecture.
            (3) A detailed explanation of how the personal information 
        resulting from the data mining and profiling capability 
        developed under the preferred architecture will be employed 
        consistent with the requirements of section 552a of title 5, 
        United States Code.

    (b) Completion and Use of Army Land Information Warfare Activity.--
The Secretary of Defense--
            (1) shall ensure that the data mining, profiling, and 
        analysis capability of the Army's Land Information Warfare 
        Activity is completed and is fully operational as soon as 
        possible; and
            (2) shall make appropriate use of that capability to provide 
        support to all appropriate national defense components.

SEC. 934. NETWORK CENTRIC WARFARE.

    (a) Findings.--Congress makes the following findings:
            (1) Joint Vision 2020 set the goal for the Department of 
        Defense to pursue information superiority in order that joint 
        forces may possess superior knowledge and attain decision 
        superiority during operations across the spectrum of conflict.
            (2) One concept being pursued to attain information 
        superiority is known as Network Centric Warfare. The concept of 
        Network Centric Warfare links sensors, communications systems 
        and weapons systems in an interconnected grid that allows for a 
        seamless information flow to warfighters, policy makers, and 
        support personnel.
            (3) The Joint Staff, the Defense Agencies, and the military 
        departments are all pursuing various concepts related to Network 
        Centric Warfare.

    (b) Goal.--It shall be the goal of Department of Defense to fully 
coordinate various efforts being pursued by the Joint Staff, the Defense 
Agencies, and the military departments as they develop the concept of 
Network Centric Warfare.
    (c) Report on Network Centric Warfare.--(1) The Secretary of Defense 
shall submit to the congressional defense committees a report on the 
development and implementation of network centric warfare concepts 
within the Department of Defense. The report shall be prepared in 
consultation with the Chairman of the Joint Chiefs of Staff.
    (2) The report shall include the following:
            (A) A clear definition and terminology to describe the set 
        of operational concepts referred to as ``network centric 
        warfare''.
            (B) An identification and description of the current and 
        planned activities by the Office of the Secretary of Defense, 
        the Joint Chiefs of Staff, and the United States Joint Forces 
        Command relating to network centric warfare.
            (C) A discussion of how the concept of network centric 
        warfare is related to the strategy of transformation as outlined

[[Page 114 STAT. 1654A-239]]

        in the document entitled ``Joint Vision 2020'', along with the 
        advantages and disadvantages of pursing that concept.
            (D) A discussion on how the Department is implementing the 
        concepts of network centric warfare as it relates to information 
        superiority and decision superiority articulated in ``Joint 
        Vision 2020.''.
            (E) An identification and description of the current and 
        planned activities of each of the Armed Forces relating to 
        network centric warfare.
            (F) A discussion on how the Department plans to attain a 
        fully integrated, joint command, control, communications, 
        computers, intelligence, surveillance, and reconnaissance 
        (C<SUP>4</SUP>ISR) capability.
            (G) A description of the joint requirements under 
        development that will lead to the acquisition of technologies 
        for enabling network centric warfare and whether those joint 
        requirements are modifying existing service requirements and 
        vision statements.
            (H) A discussion of how Department of Defense activities to 
        establish a joint network centric capability are coordinated 
        with other departments and agencies of the United States and 
        with United States allies.
            (I) A discussion of the coordination of the science and 
        technology investments of the military departments and Defense 
        Agencies in the development of future joint network centric 
        warfare capabilities.
            (J) The methodology being used to measure progress toward 
        stated goals.

    (d) Study on the Use of Joint Experimentation for Developing Network 
Centric Warfare Concepts.--(1) The Secretary of Defense shall conduct a 
study on the present and future use of the joint experimentation program 
of the Department of Defense in the development of network centric 
warfare concepts.
    (2) The Secretary shall submit to the congressional defense 
committees a report on the results of the study. The report shall 
include the following:
            (A) A survey of and description of how experimentation under 
        the joint experimentation at United States Joint Forces Command 
        is being used for evaluating emerging concepts in network 
        centric warfare.
            (B) A survey of and description of how experimentation under 
        the joint experimentation of each of the armed services are 
        being used for evaluating emerging concepts in network centric 
        warfare.
            (C) A description of any emerging concepts and 
        recommendations developed by those experiments, with special 
        emphasis on force structure implications.

    (3) The Secretary of Defense, acting through the Chairman of the 
Joint Chiefs of Staff, shall designate the Commander in Chief of the 
United States Joint Forces Command to carry out the study and prepare 
the report required under this subsection.
    (e) Time for Submission of Reports.--Each report required under this 
section shall be submitted not later than March 1, 2001.

[[Page 114 STAT. 1654A-240]]

SEC. 935. REPORT ON AIR FORCE INSTITUTE OF TECHNOLOGY.

    (a) Report Required.--Not later than September 30, 2001, the 
Secretary of the Air Force 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 roles and missions, organizational 
structure, funding, and operations of the Air Force Institute of 
Technology as projected through 2010.
    (b) Matters To Be Included.--The report shall provide--
            (1) a statement of the Institute's roles and missions 
        through 2010 in meeting the critical scientific and educational 
        requirements of the Air Force;
            (2) a statement of the strategic priorities for the 
        Institute in meeting long-term core science and technology 
        educational needs of the Air Force; and
            (3) a plan for the near-term increase in the production by 
        the Institute of masters and doctoral degree graduates.

    (c) Recommendations To Be Provided.--Based on the matters determined 
for purposes of subsection (b), the report shall include recommendations 
of the Secretary of the Air Force with respect to the following:
            (1) The grade of the Commandant of the Institute.
            (2) The chain of command of the Commandant within the Air 
        Force.
            (3) The employment and compensation of civilian professors 
        at the Institute.
            (4) The processes for the identification of requirements for 
        personnel with advanced degrees within the Air Force and 
        identification and selection of candidates for annual enrollment 
        at the Institute.
            (5) Postgraduation opportunities within the Air Force for 
        graduates of the Institute.
            (6) The policies and practices regarding the admission to 
        the Institute of--
                    (A) officers of the Army, Navy, Marine Corps, and 
                Coast Guard;
                    (B) employees of the Department of the Army, 
                Department of the Navy, and Department of 
                Transportation;
                    (C) personnel of the military forces of foreign 
                countries;
                    (D) enlisted members of the Armed Forces; and
                    (E) other persons eligible for admission.
            (7) Near- and long-term funding of the institute.
            (8) Opportunities for cooperation, collaboration, and joint 
        endeavors with other military and civilian scientific and 
        technical educational institutions for the production of 
        qualified personnel to meet Department of Defense scientific and 
        technical requirements.

    (d) Consultation.--The report shall be prepared in consultation with 
the Chief of Staff of the Air Force and the Commander of the Air Force 
Materiel Command.

[[Page 114 STAT. 1654A-241]]

                        Subtitle E--Other Matters

SEC. 941. FLEXIBILITY IN IMPLEMENTATION OF LIMITATION ON MAJOR 
            DEPARTMENT OF DEFENSE HEADQUARTERS ACTIVITIES PERSONNEL.

    Section 130a of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) Flexibility.--(1) If during fiscal year 2001 or fiscal year 
2002 the Secretary of Defense determines, and certifies to Congress, 
that the limitation under subsection (a), or a limitation under 
subsection (b), would adversely affect United States national security, 
the Secretary may take any of the following actions:
            ``(A) Increase the percentage specified in subsection (b)(1) 
        by such amount as the Secretary determines necessary or waive 
        the limitation under that subsection.
            ``(B) Increase the percentage specified in subsection (b)(2) 
        by such amount as the Secretary determines necessary, not to 
        exceed a cumulative increase of 7.5 percentage points.
            ``(C) Increase the percentage specified in subsection (a) by 
        such amount as the Secretary determines necessary, not to exceed 
        a cumulative increase of 7.5 percentage points.

    ``(2) Any certification under paragraph (1) shall include notice of 
the specific waiver or increases made pursuant to the authority provided 
in that paragraph.''.

SEC. 942. CONSOLIDATION OF CERTAIN NAVY GIFT FUNDS.

    (a) Merger of Naval Historical Center Fund Into Department of the 
Navy General Gift Fund.--(1) The Secretary of the Navy shall transfer 
all amounts in the Naval Historical Center Fund maintained under section 
7222 of title 10, United States Code, to the Department of the Navy 
General Gift Fund maintained under section 2601 of such title. Upon 
completing the transfer, the Secretary shall close the Naval Historical 
Center Fund.
    (2) Amounts transferred to the Department of the Navy General Gift 
Fund under this subsection shall be merged with other amounts in that 
Fund and shall be available for the purposes for which amounts in that 
Fund are available.
    (b) Consolidation of Naval Academy General Gift Fund and Naval 
Academy Museum Fund.--(1) The Secretary of the Navy shall transfer all 
amounts in the United States Naval Academy Museum Fund established by 
section 6974 of title 10, United States Code, to the gift fund 
maintained for the benefit and use of the United States Naval Academy 
under section 6973 of such title. Upon completing the transfer, the 
Secretary shall close the United States Naval Academy Museum Fund.
    (2) Amounts transferred under this subsection shall be merged with 
other amounts in the gift fund to which transferred and shall be 
available for the purposes for which amounts in that gift fund are 
available.
    (c) Consolidation and Revision of Authorities for Acceptance of 
Gifts, Bequests, and Loans for the United States Naval Academy.--(1) 
Subsection (a) of section 6973 of title 10, United States Code, is 
amended--
            (A) in the first sentence--
                    (i) by striking ``gifts and bequests of personal 
                property'' and inserting ``any gift or bequest of 
                personal property,

[[Page 114 STAT. 1654A-242]]

                and may accept, hold, and administer any loan of 
                personal property other than money, that is''; and
                    (ii) by inserting ``or the Naval Academy Museum, its 
                collection, or its services'' before the period at the 
                end;
            (B) in the second sentence, by striking `` `United States 
        Naval Academy general gift fund' '' and inserting `` `United 
        States Naval Academy Gift and Museum Fund' ''; and
            (C) in the third sentence, by inserting ``(including the 
        Naval Academy Museum)'' after ``the Naval Academy''.

    (2) Such section is further amended--
            (A) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (B) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) The Secretary shall prescribe written guidelines to be used 
for determinations of whether the acceptance of money, any personal 
property, or any loan of personal property under subsection (a) would 
reflect unfavorably on the ability of the Department of the Navy or any 
officer or employee of the Department of the Navy to carry out 
responsibilities or duties in a fair and objective manner, or would 
compromise either the integrity or the appearance of the integrity of 
any program of the Department of the Navy or any officer or employee of 
the Department of the Navy who is involved in any such program.''.
    (3) Subsection (d) of such section, as redesignated by paragraph 
(2)(A), is amended by striking ``United States Naval Academy general 
gift fund'' both places it appears and inserting ``United States Naval 
Academy Gift and Museum Fund''.
    (4) The heading for such section is amended to read as follows:

``Sec. 6973. Gifts, bequests, and loans of property: acceptance for 
                        benefit and use of Naval Academy''.

    (d) References to Closed Gift Funds.--(1) Section 6974 of title 10, 
United States Code, is amended to read as follows:

``Sec. 6974. United States Naval Academy Museum Fund: references to Fund

    ``Any reference in a law, regulation, document, paper, or other 
record of the United States to the United States Naval Academy Museum 
Fund formerly maintained under this section shall be deemed to refer to 
the United States Naval Academy Gift and Museum Fund maintained under 
section 6973 of this title.''.
    (2) Section 7222 of such title is amended to read as follows:

``Sec. 7222. Naval Historical Center Fund: references to Fund

    ``Any reference in a law, regulation, document, paper, or other 
record of the United States to the Naval Historical Center Fund formerly 
maintained under this section shall be deemed to refer to the Department 
of the Navy General Gift Fund maintained under section 2601 of this 
title.''.
    (e) Clerical Amendments.--(1) The table of sections at the beginning 
of chapter 603 of title 10, United States Code, is amended by striking 
the items relating to sections 6973 and 6974 and inserting the 
following:

``6973. Gifts, bequests, and loans of property: acceptance for benefit 
           and use of Naval Academy.
``6974. United States Naval Academy Museum Fund: references to Fund.''.


[[Page 114 STAT. 1654A-243]]



    (2) The item relating to section 7222 of such title in the table of 
sections at the beginning of chapter 631 of such title is amended to 
read as follows:

``7222. Naval Historical Center Fund: references to Fund.''.

SEC. 943. TEMPORARY AUTHORITY TO DISPOSE OF A GIFT PREVIOUSLY ACCEPTED 
            FOR THE NAVAL ACADEMY.

    Notwithstanding section 6973 of title 10, United States Code, during 
fiscal year 2001 the Secretary of the Navy may dispose of a gift 
accepted before the date of the enactment of this Act for the United 
States Naval Academy by disbursing from the United States Naval Academy 
general gift fund to an entity designated by the donor of the gift the 
amount equal to the current cash value of that gift.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec.1001.Transfer authority.
Sec.1002.Incorporation of classified annex.
Sec.1003.Authorization of emergency supplemental appropriations for 
           fiscal year 2000.
Sec.1004.United States contribution to NATO common-funded budgets in 
           fiscal year 2001.
Sec.1005.Limitation on funds for Bosnia and Kosovo peacekeeping 
           operations for fiscal year 2001.
Sec.1006.Requirement for prompt payment of contract vouchers.
Sec.1007.Plan for prompt recording of obligations of funds for 
           contractual transactions.
Sec.1008.Electronic submission and processing of claims for contract 
           payments.
Sec.1009.Administrative offsets for overpayment of transportation costs.
Sec.1010.Interest penalties for late payment of interim payments due 
           under Government service contracts.

                 Subtitle B--Naval Vessels and Shipyards

Sec.1011.Revisions to national defense features program.
Sec.1012.Sense of Congress on the naming of the CVN-77 aircraft carrier.
Sec.1013.Authority to transfer naval vessels to certain foreign 
           countries.
Sec.1014.Authority to consent to retransfer of alternative former naval 
           vessel by Government of Greece.

                   Subtitle C--Counter-Drug Activities

Sec.1021.Extension of authority to provide support for counter-drug 
           activities of Colombia.
Sec.1022.Report on Department of Defense expenditures to support foreign 
           counter-drug activities.
Sec.1023.Recommendations on expansion of support for counter-drug 
           activities.
Sec.1024.Review of riverine counter-drug program.
Sec.1025.Report on tethered aerostat radar system.
Sec.1026.Sense of Congress regarding use of Armed Forces for counter-
           drug and counter-terrorism activities.

         Subtitle D--Counterterrorism and Domestic Preparedness

Sec.1031.Preparedness of military installation first responders for 
           incidents involving weapons of mass destruction.
Sec.1032.Additional weapons of mass destruction civil support teams.
Sec.1033.Authority to provide loan guarantees to improve domestic 
           preparedness to combat cyberterrorism.
Sec.1034.Report on the status of domestic preparedness against the 
           threat of biological terrorism.
Sec.1035.Report on strategy, policies, and programs to combat domestic 
           terrorism.

                      Subtitle E--Strategic Forces

Sec.1041.Revised nuclear posture review.

[[Page 114 STAT. 1654A-244]]

Sec.1042.Plan for the long-term sustainment and modernization of United 
           States strategic nuclear forces.
Sec.1043.Modification of scope of waiver authority for limitation on 
           retirement or dismantlement of strategic nuclear delivery 
           systems.
Sec.1044.Report on the defeat of hardened and deeply buried targets.
Sec.1045.Sense of Congress on the maintenance of the strategic nuclear 
           triad.

            Subtitle F--Miscellaneous Reporting Requirements

Sec.1051.Management review of working-capital fund activities.
Sec.1052.Report on submarine rescue support vessels.
Sec.1053.Report on Federal Government progress in developing information 
           assurance strategies.
Sec.1054.Department of Defense process for decisionmaking in cases of 
           false claims.

           Subtitle G--Government Information Security Reform

Sec.1061.Coordination of Federal information policy.
Sec.1062.Responsibilities of certain agencies.
Sec.1063.Relationship of Defense Information Assurance Program to 
           Government-wide information security program.
Sec.1064.Technical and conforming amendments.
Sec.1065.Effective date.

                      Subtitle H--Security Matters

Sec.1071.Limitation on granting of security clearances.
Sec.1072.Process for prioritizing background investigations for security 
           clearances for Department of Defense personnel and defense 
           contractor personnel.
Sec.1073.Authority to withhold certain sensitive information from public 
           disclosure.
Sec.1074.Expansion of authority to exempt geodetic products of the 
           Department of Defense from public disclosure.
Sec.1075.Expenditures for declassification activities.
Sec.1076.Enhanced access to criminal history record information for 
           national security and other purposes.
Sec.1077.Two-year extension of authority to engage in commercial 
           activities as security for intelligence collection 
           activities.
Sec.1078.Coordination of nuclear weapons secrecy policies and 
           consideration of health of workers at former Department of 
           Defense nuclear facilities.

                        Subtitle I--Other Matters

Sec.1081.Funds for administrative expenses under Defense Export Loan 
           Guarantee program.
Sec.1082.Transit pass program for Department of Defense personnel in 
           poor air quality areas.
Sec.1083.Transfer of Vietnam era TA-4 aircraft to nonprofit foundation.
Sec.1084.Transfer of 19th century cannon to museum.
Sec.1085.Fees for providing historical information to the public.
Sec.1086.Grants to American Red Cross for Armed Forces emergency 
           services.
Sec.1087.Technical and clerical amendments.
Sec.1088.Maximum size of parcel post packages transported overseas for 
           Armed Forces post offices.
Sec.1089.Sense of Congress regarding tax treatment of members receiving 
           special pay for duty subject to hostile fire or imminent 
           danger.
Sec.1090.Organization and management of Civil Air Patrol.
Sec.1091.Additional duties for Commission to Assess United States 
           National Security Space Management and Organization.
Sec.1092.Commission on the Future of the United States Aerospace 
           Industry.
Sec.1093.Drug addiction treatment.

                      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 
2001 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 114 STAT. 1654A-245]]

    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$2,000,000,000.
    (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. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the committee of conference to accompany the conference report on the 
bill H.R. 4205 of the One Hundred Sixth Congress and transmitted to the 
President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an 
authorization contained in this Act that are made available for a 
program, project, or activity referred to in the Classified Annex may 
only be expended for such program, project, or activity in accordance 
with such terms, conditions, limitations, restrictions, and requirements 
as are set out for that program, project, or activity in the Classified 
Annex.
    (d) Distribution of Classified Annex.--The President shall provide 
for appropriate distribution of the Classified Annex, or of appropriate 
portions of the annex, within the executive branch of the Government.

SEC. 1003. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR 
            FISCAL YEAR 2000.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2000 in the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65) are hereby adjusted, with respect 
to any such authorized amount, by the amount by which appropriations 
pursuant to such authorization were increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, in the Emergency 
Supplemental Act, 2000 (division B of Public Law 106-246) or in title IX 
of the Department of Defense Appropriations Act, 2001 (Public Law 106-
259).

SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
            FISCAL YEAR 2001.

    (a) Fiscal Year 2001 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2001 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

[[Page 114 STAT. 1654A-246]]

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 2000, of funds appropriated for fiscal years before 
        fiscal year 2001 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), $743,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $181,981,000 
        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 defined in section 4(7) of 
        that resolution), approved by the Senate on April 30, 1998.

SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND KOSOVO PEACEKEEPING 
            OPERATIONS FOR FISCAL YEAR 2001.

    (a) Limitation.--Of the amounts authorized to be appropriated by 
section 301(24) for the Overseas Contingency Operations Transfer Fund--
            (1) no more than $1,387,800,000 may be obligated for 
        incremental costs of the Armed Forces for Bosnia peacekeeping 
        operations; and
            (2) no more than $1,650,400,000 may be obligated for 
        incremental costs of the Armed Forces for Kosovo peacekeeping 
        operations.

    (b) Presidential Waiver.--The President may waive the limitation in 
subsection (a)(1), or the limitation in subsection (a)(2), after 
submitting to Congress the following:
            (1) The President's written certification that the waiver is 
        necessary in the national security interests of the United 
        States.
            (2) The President's written certification that exercising 
        the waiver will not adversely affect the readiness of United 
        States military forces.
            (3) A report setting forth the following:

[[Page 114 STAT. 1654A-247]]

                    (A) The reasons that the waiver is necessary in the 
                national security interests of the United States.
                    (B) The specific reasons that additional funding is 
                required for the continued presence of United States 
                military forces participating in, or supporting, Bosnia 
                peacekeeping operations, or Kosovo peacekeeping 
                operations, as the case may be, for fiscal year 2001.
                    (C) A discussion of the impact on the military 
                readiness of United States Armed Forces of the 
                continuing deployment of United States military forces 
                participating in, or supporting, Bosnia peacekeeping 
                operations, or Kosovo peacekeeping operations, as the 
                case may be.
            (4) A supplemental appropriations request for the Department 
        of Defense for such amounts as are necessary for the additional 
        fiscal year 2001 costs associated with United States military 
        forces participating in, or supporting, Bosnia or Kosovo 
        peacekeeping operations.

    (c) Peacekeeping Operations Defined.--For the purposes of this 
section:
            (1) The term ``Bosnia peacekeeping operations'' has the 
        meaning given such term in section 1004(e) of the Strom Thurmond 
        National Defense Authorization Act for Fiscal Year 1999 (Public 
        Law 105-261; 112 Stat. 2112).
            (2) The term ``Kosovo peacekeeping operations''--
                    (A) means the operation designated as Operation 
                Joint Guardian and any other operation involving the 
                participation of any of the Armed Forces in peacekeeping 
                or peace enforcement activities in and around Kosovo; 
                and
                    (B) includes, with respect to Operation Joint 
                Guardian or any such other operation, each activity that 
                is directly related to the support of the operation.

SEC. 1006. REQUIREMENT FOR PROMPT PAYMENT OF CONTRACT VOUCHERS.

    (a) Requirement.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding after section 2225, as added by section 812(a)(1), 
the following new section:

``Sec. 2226. Contracted property and services: prompt payment of 
                        vouchers

    ``(a) Requirement.--Of the contract vouchers that are received by 
the Defense Finance and Accounting Service by means of the mechanization 
of contract administration services system, the number of such vouchers 
that remain unpaid for more than 30 days as of the last day of each 
month may not exceed 5 percent of the total number of the contract 
vouchers so received that remain unpaid on that day.
    ``(b) Contract Voucher Defined.--In this section, the term `contract 
voucher' means a voucher or invoice for the payment to a contractor for 
services, commercial items (as defined in section 4(12) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(12))), or other 
deliverable items provided by the contractor under a contract funded by 
the Department of Defense.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2225, as added by 
section 812(a)(2), the following new item:

``2226. Contracted property and services: prompt payment of vouchers.''.


[[Page 114 STAT. 1654A-248]]



    (b) Effective Date.--Section 2226 of title 10, United States Code 
(as added by subsection (a)), shall take effect on December 1, 2000.
    (c) Conditional Requirement for Report.--(1) If for any month of the 
noncompliance reporting period the requirement in section 2226 of title 
10, United States Code (as added by subsection (a)), is not met, 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 magnitude of the unpaid contract 
vouchers. The report for a month shall be submitted not later than 30 
days after the end of that month.
    (2) A report for a month under paragraph (1) shall include 
information current as of the last day of the month as follows:
            (A) The number of the vouchers received by the Defense 
        Finance and Accounting Service by means of the mechanization of 
        contract administration services system during each month.
            (B) The number of the vouchers so received, whenever 
        received by the Defense Finance and Accounting Service, that 
        remain unpaid for each of the following periods:
                    (i) Over 30 days and not more than 60 days.
                    (ii) Over 60 days and not more than 90 days.
                    (iii) More than 90 days.
            (C) The number of the vouchers so received that remain 
        unpaid for the major categories of procurements, as defined by 
        the Secretary of Defense.
            (D) The corrective actions that are necessary, and those 
        that are being taken, to ensure compliance with the requirement 
        in subsection (a).

    (3) For purposes of this subsection:
            (A) The term ``noncompliance reporting period'' means the 
        period beginning on December 1, 2000, and ending on November 30, 
        2004.
            (B) The term ``contract voucher'' has the meaning given that 
        term in section 2226(b) of title 10, United States Code (as 
        added by subsection (a)).

SEC. 1007. PLAN FOR PROMPT RECORDING OF OBLIGATIONS OF FUNDS FOR 
            CONTRACTUAL TRANSACTIONS.

    (a) Requirement for Plan.--The Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives, not later than November 15, 2000, a plan for ensuring 
that each obligation of the Department of Defense under a transaction 
described in subsection (c) be recorded in the appropriate financial 
administration systems of the Department of Defense not later than 10 
days after the date on which the obligation is incurred.
    (b) Content of Plan.--The plan under subsection (a) shall provide 
for the following:
            (1) The recording of obligations in accordance with 
        requirements that apply uniformly throughout the Department of 
        Defense, including requirements for the recording of detailed 
        data on each such obligation.
            (2) A system of accounting classification reference numbers 
        for the recording of obligations that applies uniformly 
        throughout the Department of Defense.

[[Page 114 STAT. 1654A-249]]

            (3) A discussion of how the plan is to be implemented, 
        including a schedule for implementation.

    (c) Covered Transactions.--The plan shall apply to each obligation 
under any of the following transactions of the Department of Defense:
            (1) A contract.
            (2) A grant.
            (3) A cooperative agreement.
            (4) A transaction authorized under section 2371 of title 10, 
        United States Code.

SEC. 1008. ELECTRONIC SUBMISSION AND PROCESSING OF CLAIMS FOR CONTRACT 
            PAYMENTS.

    (a) Requirements.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding after section 2226, as added by section 1006(a)(1), 
the following new section:

``Sec. 2227. Electronic submission and processing of claims for contract 
                        payments

    ``(a) Submission of Claims.--The Secretary of Defense shall require 
that any claim for payment under a Department of Defense contract shall 
be submitted to the Department of Defense in electronic form.
    ``(b) Processing.--A contracting officer, contract administrator, 
certifying official, or other officer or employee of the Department of 
Defense who receives a claim for payment in electronic form in 
accordance with subsection (a) and is required to transmit the claim to 
any other officer or employee of the Department of Defense for 
processing under procedures of the department shall transmit the claim 
and any additional documentation necessary to support the determination 
and payment of the claim to such other officer or employee 
electronically.
    ``(c) Waiver Authority.--If the Secretary of Defense determines that 
the requirement for using electronic means for submitting claims under 
subsection (a), or for transmitting claims and supporting documentation 
under subsection (b), is unduly burdensome in any category of cases, the 
Secretary may exempt the cases in that category from the application of 
the requirement.
    ``(d) Implementation of Requirements.--In implementing subsections 
(a) and (b), the Secretary of Defense shall provide for the following:
            ``(1) Policies, requirements, and procedures for using 
        electronic means for the submission of claims for payment to the 
        Department of Defense and for the transmission, between 
        Department of Defense officials, of claims for payment received 
        in electronic form, together with supporting documentation (such 
        as receiving reports, contracts and contract modifications, and 
        required certifications).
            ``(2) The format in which information can be accepted by the 
        corporate database of the Defense Finance and Accounting 
        Service.
            ``(3) The requirements to be included in contracts regarding 
        the electronic submission of claims for payment by contractors.

    ``(e) Claim for Payment Defined.--In this section, the term `claim 
for payment' means an invoice or any other demand or request for 
payment.''.

[[Page 114 STAT. 1654A-250]]

    (2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2226, as added by 
section 1006(a)(2), the following new item:

``2227. Electronic submission and processing of claims for contract 
           payments.''.

    (b) Implementation Plan.--Not later than March 30, 2001, the 
Secretary of Defense shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a plan for the 
implementation of the requirements imposed under section 2227 of title 
10, United States Code (as added by subsection (a)). The plan shall 
provide for each of the matters specified in subsection (d) of that 
section.
    (c) Applicability.--(1) Subject to paragraph (2), the Secretary of 
Defense shall apply section 2227 of title 10, United States Code (as 
added by subsection (a)), with respect to contracts for which 
solicitations of offers are issued after June 30, 2001.
    (2)(A) The Secretary may delay the implementation of section 2227 to 
a date after June 30, 2001, upon a finding that it is impracticable to 
implement that section until that later date. In no event, however, may 
the implementation be delayed to a date after October 1, 2002.
    (B) Upon determining to delay the implementation of such section 
2227 to a later date under subparagraph (A), the Secretary shall 
promptly publish a notice of the delay in the Federal Register. The 
notice shall include a specification of the later date on which the 
implementation of that section is to begin. Not later than 30 days 
before the later implementation date, the Secretary shall publish in the 
Federal Register another notice that such section is being implemented 
beginning on that date.

SEC. 1009. ADMINISTRATIVE OFFSETS FOR OVERPAYMENT OF TRANSPORTATION 
            COSTS.

    (a) Offsets for Overpayments or Liquidated Damages.--(1) Section 
2636 of title 10, United States Code, is amended to read as follows:

``Sec. 2636. Deductions from amounts due carriers

    ``(a) Amounts for Loss or Damage.--An amount deducted from an amount 
due a carrier shall be credited as follows:
            ``(1) If deducted because of loss of or damage to material 
        in transit for a military department, the amount shall be 
        credited to the proper appropriation, account, or fund from 
        which the same or similar material may be replaced.
            ``(2) If deducted as an administrative offset for an 
        overpayment previously made to the carrier under any Department 
        of Defense contract for transportation services or as liquidated 
        damages due under any such contract, the amount shall be 
        credited to the appropriation or account from which payments for 
        the transportation services were made.

    ``(b) Simplified Offset for Collection of Claims Not in Excess of 
the Simplified Acquisition Threshold.--(1) In any case in which the 
total amount of a claim for the recovery of overpayments or liquidated 
damages under a contract described in subsection (a)(2) does not exceed 
the simplified acquisition threshold, the Secretary of Defense or the 
Secretary concerned, in exercising the authority to collect the claim by 
administrative offset under

[[Page 114 STAT. 1654A-251]]

section 3716 of title 31, may apply paragraphs (2) and (3) of subsection 
(a) of that section with respect to that collection after (rather than 
before) the claim is so collected.
    ``(2) Regulations prescribed by the Secretary of Defense under 
subsection (b) of section 3716 of title 31--
            ``(A) shall include provisions to carry out paragraph (1); 
        and
            ``(B) shall provide the carrier for a claim subject to 
        paragraph (1) with an opportunity to offer an alternative method 
        of repaying the claim (rather than by administrative offset) if 
        the collection of the claim by administrative offset has not 
        already been made.

    ``(3) In this subsection, the term `simplified acquisition 
threshold' has the meaning given that term in section 4(11) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 157 of such title is amended to read as 
follows:

``2636. Deductions from amounts due carriers.''.

    (b) Effective Date.--Subsections (a)(2) and (b) of section 2636 of 
title 10, United States Code, as added by subsection (a)(1), shall apply 
with respect to contracts entered into after the date of the enactment 
of this Act.

SEC. 1010. INTEREST PENALTIES FOR LATE PAYMENT OF INTERIM PAYMENTS DUE 
            UNDER GOVERNMENT SERVICE CONTRACTS.

    (a) Prompt Payment Requirement for Interim Payments.--Under 
regulations prescribed under subsection (c), the head of an agency 
acquiring services from a business concern under a cost reimbursement 
contract requiring interim payments who does not pay the concern a 
required interim payment by the date that is 30 days after the date of 
the receipt of a proper invoice shall pay an interest penalty to the 
concern on the amount of the payment due. The interest shall be computed 
as provided in section 3902(a) of title 31, United States Code.
    (b) Regulations.--The Director of the Office of Management and 
Budget shall prescribe regulations to carry out this section. Such 
regulations shall be prescribed as part of the regulations prescribed 
under section 3903 of title 31, United States Code.
    (c) Incorporation of Certain Provisions of Law.--The provisions of 
chapter 39 of title 31, United States Code, shall apply to this section 
in the same manner as if this section were enacted as part of such 
chapter.
    (d) Effective Date.--Subsection (a) shall take effect on December 
15, 2000. No interest shall accrue by reason of that subsection for any 
period before that date.

                 Subtitle B--Naval Vessels and Shipyards

SEC. 1011. REVISIONS TO NATIONAL DEFENSE FEATURES PROGRAM.

    Section 2218(k) of title 10, United States Code, is amended--
            (1) by adding at the end of paragraph (1) the following new 
        sentence: ``As consideration for a contract with the head of an 
        agency under this subsection, the company entering into the 
        contract shall agree with the Secretary of Defense to make

[[Page 114 STAT. 1654A-252]]

        any vessel covered by the contract available to the Secretary, 
        fully crewed and ready for sea, at any time at any port 
        determined by the Secretary, and for whatever duration the 
        Secretary determines necessary.'';
            (2) by adding at the end of paragraph (2) the following new 
        subparagraph:
            ``(E) Payments of such sums as the Government would 
        otherwise expend, if the vessel were placed in the Ready Reserve 
        Fleet, for maintaining the vessel in the status designated as 
        `ROS-4 status' in the Ready Reserve Fleet for 25 years.''; and
            (3) by adding at the end the following new paragraph:

    ``(6) The head of an agency may not enter into a contract under 
paragraph (1) that would provide for payments to the contractor as 
authorized in paragraph (2)(E) until notice of the proposed contract is 
submitted to the congressional defense committees and a period of 90 
days has elapsed.''.

SEC. 1012. SENSE OF CONGRESS ON THE NAMING OF THE CVN-77 AIRCRAFT 
            CARRIER.

    (a) Findings.--Congress makes the following findings:
            (1) Over the last three decades Congress has authorized and 
        appropriated funds for a total of 10 Nimitz class aircraft 
        carriers.
            (2) The last vessel in the Nimitz class of aircraft 
        carriers, CVN-77, is currently under construction and will be 
        delivered in 2008.
            (3) The first nine vessels in this class bear the following 
        proud names:
                    (A) U.S.S. Nimitz (CVN-68).
                    (B) U.S.S. Dwight D. Eisenhower (CVN-69).
                    (C) U.S.S. Carl Vinson (CVN-70).
                    (D) U.S.S. Theodore Roosevelt (CVN-71).
                    (E) U.S.S. Abraham Lincoln (CVN-72).
                    (F) U.S.S. George Washington (CVN-73).
                    (G) U.S.S. John C. Stennis (CVN-74).
                    (H) U.S.S. Harry S. Truman (CVN-75).
                    (I) U.S.S. Ronald Reagan (CVN-76).
            (4) It is appropriate for Congress to recommend to the 
        President, as Commander in Chief of the Armed Forces, an 
        appropriate name for the final vessel in the Nimitz class of 
        aircraft carriers.
            (5) Over the last 25 years the vessels in the Nimitz class 
        of aircraft carriers have served as one of the principal means 
        of United States diplomacy and as one of the principal means for 
        the defense of the United States and its allies around the 
        world.
            (6) The name bestowed upon the aircraft carrier CVN-77 
        should embody the American spirit and provide a lasting symbol 
        of the American commitment to freedom.
            (7) The name ``Lexington'' has been a symbol of freedom from 
        the first battle of the American Revolution.
            (8) The two aircraft carriers previously named U.S.S. 
        Lexington (the CV-2 and the CV-16) served the Nation for 64 
        years, served in World War II, and earned a total of 13 battle 
        stars.

[[Page 114 STAT. 1654A-253]]

            (9) One of those honored vessels, the CV-2, was lost at the 
        Battle of the Coral Sea on May 8, 1942.

    (b) Sense of Congress.--It is the sense of Congress that the CVN-77 
aircraft carrier should be named the ``U.S.S. Lexington''--
            (1) in order to honor the men and women who served in the 
        Armed Forces of the United States during World War II and the 
        incalculable number of United States citizens on the home front 
        during that war who mobilized in the name of freedom; and
            (2) as a special tribute to the 16,000,000 veterans of the 
        Armed Forces who served on land, sea, and air during World War 
        II (of whom fewer than 6,000,000 remain alive today) and a 
        lasting symbol of their commitment to freedom as they pass on 
        having proudly taken their place in history.

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

    (a) Transfers by Grant.--The President is authorized to transfer 
vessels to foreign countries on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
            (1) Brazil.--To the Government of Brazil--
                    (A) the THOMASTON class dock landing ships ALAMO 
                (LSD 33) and HERMITAGE (LSD 34); and
                    (B) the GARCIA class frigates BRADLEY (FF 1041), 
                DAVIDSON (FF 1045), SAMPLE (FF 1048) and ALBERT DAVID 
                (FF 1050).
            (2) Greece.--To the Government of Greece, the KNOX class 
        frigates VREELAND (FF 1068) and TRIPPE (FF 1075).

    (b) Transfers on a Combined Lease-Sale Basis.--(1) The President is 
authorized to transfer vessels to foreign countries on a combined lease-
sale basis under sections 61 and 21 of the Arms Export Control Act (22 
U.S.C. 2796 and 2761) and in accordance with subsection (c) as follows:
            (A) Chile.--To the Government of Chile, the OLIVER HAZARD 
        PERRY class guided missile frigates WADSWORTH (FFG 9), and 
        ESTOCIN (FFG 15).
            (B) Turkey.--To the Government of Turkey, the OLIVER HAZARD 
        PERRY class guided missile frigates JOHN A. MOORE (FFG 19) and 
        FLATLEY (FFG 21).

    (2) The authority provided under paragraph (1)(B) is in addition to 
the authority provided under section 1018(a)(9) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 
745) for the transfer of those vessels to the Government of Turkey on a 
sale basis under section 21 of the Arms Export Control Act (22 U.S.C. 
2761).
    (c) Conditions Relating to Combined Lease-Sale Transfers.--A 
transfer of a vessel on a combined lease-sale basis authorized by 
subsection (b) shall be made in accordance with the following 
requirements:
            (1) The President may initially transfer the vessel by 
        lease, with lease payments suspended for the term of the lease, 
        if the country entering into the lease for the vessel 
        simultaneously enters into a foreign military sales agreement 
        for the transfer of title to the vessel.

[[Page 114 STAT. 1654A-254]]

            (2) The President may not deliver to the purchasing country 
        title to the vessel until the purchase price of the vessel under 
        such a foreign military sales agreement is paid in full.
            (3) Upon payment of the purchase price in full under such a 
        sales agreement and delivery of title to the recipient country, 
        the President shall terminate the lease.
            (4) If the purchasing country fails to make full payment of 
        the purchase price in accordance with the sales agreement by the 
        date required under the sales agreement--
                    (A) the sales agreement shall be immediately 
                terminated;
                    (B) the suspension of lease payments under the lease 
                shall be vacated; and
                    (C) the United States shall be entitled to retain 
                all funds received on or before the date of the 
                termination under the sales agreement, up to the amount 
                of the lease payments due and payable under the lease 
                and all other costs required by the lease to be paid to 
                that date.
            (5) If a sales agreement is terminated pursuant to paragraph 
        (4), the United States shall not be required to pay any interest 
        to the recipient country on any amount paid to the United States 
        by the recipient country under the sales agreement and not 
        retained by the United States under the lease.

    (d) Authorization of Appropriations for Costs of Lease-Sale 
Transfers.--There is hereby authorized to be appropriated into the 
Defense Vessels Transfer Program Account such sums as may be necessary 
for paying the costs (as defined in section 502 of the Congressional 
Budget Act of 1974 (2 U.S.C. 661a)) of the lease-sale transfers 
authorized by subsection (b). Amounts so appropriated shall be available 
only for the purpose of paying those costs.
    (e) Grants Not Counted in Annual Total of Transferred Excess Defense 
Articles.--The value of a vessel transferred to another country on a 
grant basis under section 516 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321j) pursuant to authority provided by subsection (a) shall not 
be counted for the purposes of subsection (g) of that section in the 
aggregate value of excess defense articles transferred to countries 
under that section in any fiscal year.
    (f ) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient (notwithstanding section 516(e)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case of a 
transfer authorized to be made on a grant basis under subsection (a).
    (g) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the President shall require, as a condition 
of the transfer of a vessel under this section, that the country to 
which the vessel is transferred have such repair or refurbishment of the 
vessel as is needed, before the vessel joins the naval forces of that 
country, performed at a shipyard located in the United States, including 
a United States Navy shipyard.
    (h) 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.

[[Page 114 STAT. 1654A-255]]

    (i) Coordination of Provisions.--(1) If the Security Assistance Act 
of 2000 is enacted before this Act, the provisions of this section shall 
not take effect.
    (2) If the Security Assistance Act of 2000 is enacted after this 
Act, this section shall cease to be in effect upon the enactment of that 
Act.

SEC. 1014. AUTHORITY TO CONSENT TO RETRANSFER OF ALTERNATIVE FORMER 
            NAVAL VESSEL BY GOVERNMENT OF GREECE.

    (a) Authority for Retransfer of Alternative Vessel.--Section 1012 of 
the National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 113 Stat. 740) is amended--
            (1) in subsection (a), by inserting after ``HS Rodos (ex-USS 
        BOWMAN COUNTY (LST 391))'' the following: ``, LST 325, or any 
        other former United States LST previously transferred to the 
        Government of Greece that is excess to the needs of that 
        government''; and
            (2) in subsection (b)(1), by inserting ``retransferred under 
        subsection (a)'' after ``the vessel''.

    (b) Repeal.--Section 1305 of the Arms Control, Nonproliferation, and 
Security Assistance Act of 1999 (113 Stat. 1501A-511) is repealed.

                   Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION OF AUTHORITY TO PROVIDE SUPPORT FOR COUNTER-DRUG 
            ACTIVITIES OF COLOMBIA.

    (a) Extension of Authority.--Section 1033 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1881) is amended--
            (1) in subsection (a), by striking ``during fiscal years 
        1998 through 2002,''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting before the period 
                at the end the following: ``, for fiscal years 1998 
                through 2002''; and
                    (B) in paragraph (2), by inserting before the period 
                at the end the following: ``, for fiscal years 1998 
                through 2006''.

    (b) Maximum Annual Amount of Support.--Subsection (e)(2) of such 
section is amended by striking ``2002'' and inserting ``2006''.

SEC. 1022. REPORT ON DEPARTMENT OF DEFENSE EXPENDITURES TO SUPPORT 
            FOREIGN COUNTER-DRUG ACTIVITIES.

    Not later than January 1, 2001, the Secretary of Defense shall 
submit to the congressional defense committees a report detailing the 
expenditure of funds by the Secretary during fiscal year 2000 in direct 
or indirect support of the counter-drug activities of foreign 
governments. The report shall include the following for each foreign 
government:
            (1) The total amount of assistance provided to, or expended 
        on behalf of, the foreign government.
            (2) A description of the types of counter-drug activities 
        conducted using the assistance.
            (3) An explanation of the legal authority under which the 
        assistance was provided.

[[Page 114 STAT. 1654A-256]]

SEC. 1023. RECOMMENDATIONS ON EXPANSION OF SUPPORT FOR COUNTER-DRUG 
            ACTIVITIES.

    (a) Requirement for Submittal of Recommendations.--Not later than 
February 1, 2001, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives the recommendations of the Secretary regarding whether 
expanded support for counter-drug activities should be authorized under 
section 1033 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 1881) for the region that includes 
the countries that are covered by that authority on the date of the 
enactment of this Act.
    (b) Content of Submission.--The submission under subsection (a) 
shall include the following:
            (1) What, if any, additional countries should be covered.
            (2) What, if any, additional support should be provided to 
        covered countries, together with the reasons for recommending 
        the additional support.
            (3) For each country recommended under paragraph (1), a plan 
        for providing support, including the counter-drug activities 
        proposed to be supported.

SEC. 1024. REVIEW OF RIVERINE COUNTER-DRUG PROGRAM.

    (a) Requirement for Review.--The Secretary of Defense shall review 
the riverine counter-drug program supported under section 1033 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 1881).
    (b) Report.--Not later than February 1, 2001, the Secretary shall 
submit a report on the riverine counter-drug program to the Committees 
on Armed Services of the Senate and the House of Representatives. The 
report shall include, for each country receiving support under the 
riverine counter-drug program, the following:
            (1) The Assistant Secretary's assessment of the 
        effectiveness of the program.
            (2) A recommendation regarding which of the Armed Forces, 
        units of the Armed Forces, or other organizations within the 
        Department of Defense should be responsible for managing the 
        program.

    (c) Delegation of Authority.--The Secretary shall require the 
Assistant Secretary of Defense for Special Operations and Low Intensity 
Conflict to carry out the responsibilities under this section.

SEC. 1025. REPORT ON TETHERED AEROSTAT RADAR SYSTEM.

    (a) Report Required.--Not later than May 1, 2001, The Secretary of 
Defense shall submit to Congress a report on the status of the Tethered 
Aerostat Radar System used to conduct counter-drug detection and 
monitoring and border security and air sovereignty operations. The 
report shall include the following:
            (1) The status and operational availability of each of the 
        existing sites of the Tethered Aerostat Radar System.
            (2) A discussion of any plans to close, during the next 5 
        years, currently operational sites, including a review of the 
        justification for each proposed closure.
            (3) A review of the requirements of other agencies, 
        especially the United States Customs Service, for data derived 
        from the Tethered Aerostat Radar System.
            (4) An assessment of the value of the Tethered Aerostat 
        Radar System in the conduct of counter-drug detection and

[[Page 114 STAT. 1654A-257]]

        monitoring and border security and air sovereignty operations 
        compared to other surveillance systems available for such 
        operations.
            (5) The costs associated with the planned standardization of 
        the Tethered Aerostat Radar System and the Secretary's analysis 
        of that standardization.

    (b) Consultation.--The Secretary of Defense shall prepare the report 
in consultation with the Secretary of the Treasury.

SEC. 1026. SENSE OF CONGRESS REGARDING USE OF ARMED FORCES FOR COUNTER-
            DRUG AND COUNTER-TERRORISM ACTIVITIES.

    It is the sense of Congress that the President should be able to use 
members of the Army, Navy, Air Force, and Marine Corps to assist law 
enforcement agencies, to the full extent consistent with section 1385 of 
title 18, United States Code (commonly known as the Posse Comitatus 
Act), section 375 of title 10, United States Code, and other applicable 
law, in preventing the entry into the United States of terrorists and 
drug traffickers, weapons of mass destruction, components of weapons of 
mass destruction, and prohibited narcotics and drugs.

         Subtitle D--Counterterrorism and Domestic Preparedness

SEC. 1031. PREPAREDNESS OF MILITARY INSTALLATION FIRST RESPONDERS FOR 
            INCIDENTS INVOLVING WEAPONS OF MASS DESTRUCTION.

    (a) Requirement for Report.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the program of the Department of Defense to ensure 
the preparedness of the first responders of the Department of Defense 
for incidents involving weapons of mass destruction on installations of 
the Department of Defense.
    (b) Content of Report.--The report shall include the following:
            (1) A detailed description of the overall preparedness 
        program.
            (2) A detailed description of the deficiencies in the 
        preparedness of Department of Defense installations to respond 
        to an incident involving a weapon of mass destruction, together 
        with a discussion of the actions planned to be taken by the 
        Department of Defense to correct the deficiencies.
            (3) The schedule and costs associated with the 
        implementation of the preparedness program.
            (4) The Department's plan for coordinating the preparedness 
        program with responders in the communities in the localities of 
        the installations.
            (5) The Department's plan for promoting the interoperability 
        of the equipment used by the installation first responders 
        referred to in subsection (a) with the equipment used by the 
        first responders in those communities.

    (c) Form of Report.--The report shall be submitted in an 
unclassified form, but may include a classified annex.
    (d) Definitions.--In this section:

[[Page 114 STAT. 1654A-258]]

            (1) The term ``first responder'' means an organization 
        responsible for responding to an incident involving a weapon of 
        mass destruction.
            (2) The term ``weapon of mass destruction'' has the meaning 
        given that term in section 1403(1) of the Defense Against 
        Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).

SEC. 1032. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS.

    During fiscal year 2001, the Secretary of Defense shall establish 
five additional teams designated as Weapons of Mass Destruction Civil 
Support Teams (for a total of 32 such teams).

SEC. 1033. AUTHORITY TO PROVIDE LOAN GUARANTEES TO IMPROVE DOMESTIC 
            PREPAREDNESS TO COMBAT CYBERTERRORISM.

    (a) Establishment of Program.--(1) Chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new 
subchapter:

  ``SUBCHAPTER VII--CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

``Sec.
``2541. Establishment of loan guarantee program.
``2541a. Fees charged and collected.
``2541b. Administration.
``2541c. Transferability, additional limitations, and definition.
``2541d. Reports.

``Sec. 2541. Establishment of loan guarantee program

    ``(a) Establishment.--In order to meet the national security 
objectives in section 2501(a) of this title, the Secretary of Defense 
shall establish a program under which the Secretary may issue guarantees 
assuring lenders against losses of principal or interest, or both 
principal and interest, for loans made to qualified commercial firms to 
fund, in whole or in part, any of the following activities:
            ``(1) The improvement of the protection of the critical 
        infrastructure of the commercial firms.
            ``(2) The refinancing of improvements previously made to the 
        protection of the critical infrastructure of the commercial 
        firms.

    ``(b) Qualified Commercial Firms.--For purposes of this section, a 
qualified commercial firm is a company or other business entity 
(including a consortium of such companies or other business entities, as 
determined by the Secretary) that the Secretary determines--
            ``(1) conducts a significant level of its research, 
        development, engineering, and manufacturing activities in the 
        United States;
            ``(2) is a company or other business entity the majority 
        ownership or control of which is by United States citizens or is 
        a company or other business of a parent company that is 
        incorporated in a country the government of which--
                    ``(A) encourages the participation of firms so owned 
                or controlled in research and development consortia to 
                which the government of that country provides funding 
                directly or provides funding indirectly through 
                international organizations or agreements; and

[[Page 114 STAT. 1654A-259]]

                    ``(B) affords adequate and effective protection for 
                the intellectual property rights of companies 
                incorporated in the United States;
            ``(3) provides technology products or services critical to 
        the operations of the Department of Defense;
            ``(4) meets standards of prevention of cyberterrorism 
        applicable to the Department of Defense; and
            ``(5) agrees to submit the report required under section 
        2541d of this title.

    ``(c) Loan Limits.--The maximum amount of loan principal guaranteed 
during a fiscal year under this section may not exceed $10,000,000, with 
respect to all borrowers.
    ``(d) Goals and Standards.--The Secretary shall prescribe 
regulations setting forth goals for the use of the loan guarantees 
provided under this section and standards for evaluating whether those 
goals are met by each entity receiving such loan guarantees.
    ``(e) Authority Subject to Provisions of Appropriations.--The 
Secretary may guarantee a loan under this subchapter only to such extent 
or in such amounts as may be provided in advance in appropriations Acts.

``Sec. 2541a. Fees charged and collected

    ``(a) Fee Required.--The Secretary of Defense shall assess a fee for 
providing a loan guarantee under this subchapter.
    ``(b) Amount of Fee.--The amount of the fee shall be not less than 
75 percent of the amount incurred by the Secretary to provide the loan 
guarantee.
    ``(c) Special Account.--(1) Such fees shall be credited to a special 
account in the Treasury.
    ``(2) Amounts in the special account shall be available, to the 
extent and in amounts provided in appropriations Acts, for paying the 
costs of administrative expenses of the Department of Defense that are 
attributable to the loan guarantee program under this subchapter.
    ``(3)(A) If for any fiscal year amounts in the special account 
established under paragraph (1) are not available (or are not 
anticipated to be available) in a sufficient amount for administrative 
expenses of the Department of Defense for that fiscal year that are 
directly attributable to the administration of the program under this 
subchapter, the Secretary may use amounts currently available for 
operations and maintenance for Defense-wide activities, not to exceed 
$500,000 in any fiscal year, for those expenses.
    ``(B) The Secretary shall, from funds in the special account 
established under paragraph (1), replenish operations and maintenance 
accounts for amounts expended under subparagraph (A).

``Sec. 2541b. Administration

    ``(a) Agreements Required.--The Secretary of Defense may enter into 
one or more agreements, each with an appropriate Federal or private 
entity, under which such entity may, under this subchapter--
            ``(1) process applications for loan guarantees;
            ``(2) administer repayment of loans; and
            ``(3) provide any other services to the Secretary to 
        administer this subchapter.

    ``(b) Treatment of Costs.--The costs of such agreements shall be 
considered, for purposes of the special account established under

[[Page 114 STAT. 1654A-260]]

section 2541a(c), to be costs of administrative expenses of the 
Department of Defense that are attributable to the loan guarantee 
program under this subchapter.

``Sec. 2541c. Transferability, additional limitations, and definition

    ``The following provisions of subtitle VI of this chapter apply to 
guarantees issued under this subtitle:
            ``(1) Section 2540a, relating to transferability of 
        guarantees.
            ``(2) Subsections (b) and (c) of section 2540b, providing 
        limitations.
            ``(3) Section 2540d(2), providing a definition of the term 
        `cost'.

``Sec. 2541d. Reports

    ``(a) Report by Commercial Firms to Secretary of Defense.--The 
Secretary of Defense shall require each qualified commercial firm for 
which a loan is guaranteed under this subchapter to submit to the 
Secretary a report on the improvements financed or refinanced with the 
loan. The report shall include an assessment of the value of the 
improvements for the protection of the critical infrastructure of that 
commercial firm. The Secretary shall prescribe the time for submitting 
the report.
    ``(b) Annual Report by Secretary of Defense to Congress.--Not later 
than March 1 of each year in which guarantees are made under this 
subchapter, the Secretary of Defense shall submit to Congress a report 
on the loan guarantee program under this subchapter. The report shall 
include the following:
            ``(1) The amounts of the loans for which guarantees were 
        issued during the year preceding the year of the report.
            ``(2) The success of the program in improving the protection 
        of the critical infrastructure of the commercial firms covered 
        by the guarantees.
            ``(3) The relationship of the loan guarantee program to the 
        critical infrastructure protection program of the Department of 
        Defense, together with an assessment of the extent to which the 
        loan guarantee program supports the critical infrastructure 
        protection program.
            ``(4) Any other information on the loan guarantee program 
        that the Secretary considers appropriate to include in the 
        report.''.

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

``VII. Critical Infrastructure Protection Loan Guarantees........2541''.

    (b) Redesignation of Displaced Sections.--(1) Sections 2541 through 
2554 of chapter 152 of title 10, United States Code, are redesignated as 
sections 2551 through 2564, respectively.
    (2) The items in the table of sections at the beginning of chapter 
152 of such title are revised to reflect the redesignations made by 
paragraph (1).
    (c) Conforming Amendments.--(1) Subsection (c)(3)(C) of section 2561 
of such title, as redesignated by subsection (b), is amended by striking 
``section 2547'' and inserting ``section 2557''.
    (2) Subsection (b) of section 2562 of such title, as so 
redesignated, is amended by striking ``section 2547'' and inserting 
``section 2557''.

[[Page 114 STAT. 1654A-261]]

    (3) Section 7300 of such title is amended by striking ``section 
2553'' and inserting ``section 2563''.

SEC. 1034. REPORT ON THE STATUS OF DOMESTIC PREPAREDNESS AGAINST THE 
            THREAT OF BIOLOGICAL TERRORISM.

    (a) Report Required.--Not later than March 31, 2001, the President 
shall submit to Congress a report on domestic preparedness against the 
threat of biological terrorism.
    (b) Report Elements.--The report shall address the following:
            (1) The current state of United States preparedness to 
        defend against a biologic attack.
            (2) The roles that various Federal agencies currently play, 
        and should play, in preparing for, and defending against, such 
        an attack.
            (3) The roles that State and local agencies and public 
        health facilities currently play, and should play, in preparing 
        for, and defending against, such an attack.
            (4) The advisability of establishing an intergovernmental 
        task force to assist in preparations for such an attack.
            (5) The potential role of advanced communications systems in 
        aiding domestic preparedness against such an attack.
            (6) The potential for additional research and development in 
        biotechnology to aid domestic preparedness against such an 
        attack.
            (7) Other measures that should be taken to aid domestic 
        preparedness against such an attack.
            (8) The financial resources necessary to support efforts for 
        domestic preparedness against such an attack.
            (9) The deficiencies and vulnerabilities in the United 
        States public health system for dealing with the consequences of 
        a biological terrorist attack on the United States, and current 
        plans to address those deficiencies and vulnerabilities.

    (c) Intelligence Estimate.--(1) Not later than March 1, 2001, the 
Secretary of Defense shall submit to Congress an intelligence estimate, 
prepared in consultation with the Director of Central Intelligence, 
containing--
            (A) an assessment of the threat to the United States posed 
        by a terrorist using a biological weapon; and
            (B) an assessment of the relative consequences of an attack 
        against the United States by a terrorist using a biological 
        weapon compared with the consequences of an attack against the 
        United States by a terrorist using a weapon that is a weapon of 
        mass destruction other than a biological weapon or that is a 
        conventional weapon.

    (2) The intelligence estimate submitted under paragraph (1) shall 
include a comparison of--
            (A) the likelihood of the threat of a terrorist attack 
        against the United States through the use of a biological 
        weapon, with
            (B) the likelihood of the threat of a terrorist attack 
        against the United States through the use of a weapon that is a 
        weapon of mass destruction other than a biological weapon or 
        that is a conventional weapon.

SEC. 1035. REPORT ON STRATEGY, POLICIES, AND PROGRAMS TO COMBAT DOMESTIC 
            TERRORISM.

    Not later than 180 days after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit

[[Page 114 STAT. 1654A-262]]

to the Committees on Armed Services of the Senate and the House of 
Representatives a report on the strategy, policies, and programs of the 
United States for combating domestic terrorism, and in particular 
domestic terrorism involving weapons of mass destruction. The report 
shall document the progress and problems experienced by the Federal 
Government in organizing and preparing to respond to domestic terrorist 
incidents.

                      Subtitle E--Strategic Forces

SEC. 1041. REVISED NUCLEAR POSTURE REVIEW.

    (a) Requirement for Comprehensive Review.--In order to clarify 
United States nuclear deterrence policy and strategy for the near term, 
the Secretary of Defense shall conduct a comprehensive review of the 
nuclear posture of the United States for the next 5 to 10 years. The 
Secretary shall conduct the review in consultation with the Secretary of 
Energy.
    (b) Elements of Review.--The nuclear posture review shall include 
the following elements:
            (1) The role of nuclear forces in United States military 
        strategy, planning, and programming.
            (2) The policy requirements and objectives for the United 
        States to maintain a safe, reliable, and credible nuclear 
        deterrence posture.
            (3) The relationship among United States nuclear deterrence 
        policy, targeting strategy, and arms control objectives.
            (4) The levels and composition of the nuclear delivery 
        systems that will be required for implementing the United States 
        national and military strategy, including any plans for 
        replacing or modifying existing systems.
            (5) The nuclear weapons complex that will be required for 
        implementing the United States national and military strategy, 
        including any plans to modernize or modify the complex.
            (6) The active and inactive nuclear weapons stockpile that 
        will be required for implementing the United States national and 
        military strategy, including any plans for replacing or 
        modifying warheads.

    (c) Report to Congress.--The Secretary of Defense shall submit to 
Congress, in unclassified and classified forms as necessary, a report on 
the results of the nuclear posture review conducted under this section. 
The report shall be submitted concurrently with the Quadrennial Defense 
Review report due in December 2001.
    (d) Sense of Congress.--It is the sense of Congress that the nuclear 
posture review conducted under this section should be used as the basis 
for establishing future United States arms control objectives and 
negotiating positions.

SEC. 1042. PLAN FOR THE LONG-TERM SUSTAINMENT AND MODERNIZATION OF 
            UNITED STATES STRATEGIC NUCLEAR FORCES.

    (a) Requirement for Plan.--The Secretary of Defense, in consultation 
with the Secretary of Energy, shall develop a long-range plan for the 
sustainment and modernization of United States strategic nuclear forces 
to counter emerging threats and satisfy the evolving requirements of 
deterrence.

[[Page 114 STAT. 1654A-263]]

    (b) Elements of Plan.--The plan specified under subsection (a) shall 
include the Secretary's plans, if any, for the sustainment and 
modernization of the following:
            (1) Land-based and sea-based strategic ballistic missiles, 
        including any plans for developing replacements for the 
        Minuteman III intercontinental ballistic missile and the Trident 
        II sea-launched ballistic missile and plans for common ballistic 
        missile technology development.
            (2) Strategic nuclear bombers, including any plans for a B-2 
        follow-on, a B-52 replacement, and any new air-launched weapon 
        systems.
            (3) Appropriate warheads to outfit the strategic nuclear 
        delivery systems referred to in paragraphs (1) and (2) to 
        satisfy evolving military requirements.

    (c) Submittal of Plan.--The plan specified under subsection (a) 
shall be submitted to Congress not later than April 15, 2001. The plan 
shall be submitted in unclassified and classified forms, as necessary.

SEC. 1043. MODIFICATION OF SCOPE OF WAIVER AUTHORITY FOR LIMITATION ON 
            RETIREMENT OR DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY 
            SYSTEMS.

    Section 1302(b) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1948), as amended by section 
1501(a) of the National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65; 113 Stat. 806), is further amended by striking ``the 
application of the limitation in effect under paragraph (1)(B) or (3) of 
subsection (a), as the case may be,'' and inserting ``the application of 
the limitation in effect under subsection (a) to a strategic nuclear 
delivery system''.

SEC. 1044. REPORT ON THE DEFEAT OF HARDENED AND DEEPLY BURIED TARGETS.

    (a) Study.--The Secretary of Defense shall, in conjunction with the 
Secretary of Energy, conduct a study relating to the defeat of hardened 
and deeply buried targets. Under the study, the Secretaries shall--
            (1) review--
                    (A) the requirements of the United States to defeat 
                hardened and deeply buried targets and stockpiles of 
                chemical and biological agents and related capabilities; 
                and
                    (B) current and future plans to meet those 
                requirements;
            (2) determine if those plans adequately address all such 
        requirements;
            (3) identify potential future hardened and deeply buried 
        targets and other related targets;
            (4) determine what resources and research and development 
        efforts are needed to defeat the targets identified under 
        paragraph (3) as well as other requirements to defeat stockpiles 
        of chemical and biological agents and related capabilities;
            (5) assess both current and future options to defeat 
        hardened and deeply buried targets as well as concepts to defeat 
        stockpiles of chemical and biological agents and related 
        capabilities; and
            (6) determine the capability and cost of each option 
        assessed under paragraph (5).

[[Page 114 STAT. 1654A-264]]

    (b) Conduct of Assessments.--In conducting the study under 
subsection (a), the Secretaries may, in order to perform the assessments 
required by paragraph (5) of that subsection, conduct any limited 
research and development that may be necessary to perform those 
assessments.
    (c) Report.--(1) Not later than July 1, 2001, 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 results of the study conducted under subsection (a). The 
report shall be prepared in conjunction with the Secretary of Energy.
    (2) The report under paragraph (1) shall be submitted in 
unclassified form, together with a classified annex if necessary.

SEC. 1045. SENSE OF CONGRESS ON THE MAINTENANCE OF THE STRATEGIC NUCLEAR 
            TRIAD.

    It is the sense of Congress that, in light of the potential for 
further arms control agreements with the Russian Federation limiting 
strategic forces--
            (1) it is in the national interest of the United States to 
        maintain a robust and balanced triad of strategic nuclear 
        delivery vehicles, including (A) long-range bombers, (B) land-
        based intercontinental ballistic missiles (ICBMs), and (C) 
        ballistic missile submarines; and
            (2) reductions to United States conventional bomber 
        capability are not in the national interest of the United 
        States.

            Subtitle F--Miscellaneous Reporting Requirements

SEC. 1051. MANAGEMENT REVIEW OF WORKING-CAPITAL FUND ACTIVITIES.

    (a) Comptroller General Review Required.--The Comptroller General 
shall conduct a review of the working-capital fund activities of the 
Department of Defense to identify any potential changes in current 
management processes or policies that, if made, would result in a more 
efficient and economical operation of those activities.
    (b) Review To Include Carryover Policy.--The review shall include a 
review of practices under the Department of Defense policy that 
authorizes funds available for working-capital fund activities for one 
fiscal year to be obligated for work to be performed at such activities 
within the first 90 days of the next fiscal year (known as 
``carryover''). On the basis of the review, the Comptroller General 
shall determine the following:
            (1) The extent to which the working-capital fund activities 
        of the Department of Defense have complied with the 90-day 
        carryover policy.
            (2) The reasons for the carryover authority under the policy 
        to apply to as much as a 90-day quantity of work.
            (3) Whether applying the carryover authority to not more 
        than a 30-day quantity of work would be sufficient to ensure 
        uninterrupted operations at the working-capital fund activities 
        early in a fiscal year.

[[Page 114 STAT. 1654A-265]]

            (4) What, if any, savings could be achieved by restricting 
        the carryover authority so as to apply to a 30-day quantity of 
        work.

SEC. 1052. REPORT ON SUBMARINE RESCUE SUPPORT VESSELS.

    (a) Requirement.--The Secretary of the Navy shall submit to 
Congress, together with the submission of the budget of the President 
for fiscal year 2002 under section 1105 of title 31, United States Code, 
a report on the plan of the Navy for providing for submarine rescue 
support vessels through fiscal year 2007.
    (b) Content.--The report shall include a discussion of the 
following:
            (1) The requirement for submarine rescue support vessels 
        through fiscal year 2007, including experience in changing from 
        the provision of such vessels from dedicated platforms to the 
        provision of such vessels through vessel of opportunity services 
        and charter vessels.
            (2) The resources required, the risks to submariners, and 
        the operational impacts of the following:
                    (A) Chartering submarine rescue support vessels for 
                terms of up to five years, with options to extend the 
                charters for two additional five-year periods.
                    (B) Providing submarine rescue support vessels using 
                vessel of opportunity services.
                    (C) Providing submarine rescue support services 
                through other means considered by the Navy.

SEC. 1053. REPORT ON FEDERAL GOVERNMENT PROGRESS IN DEVELOPING 
            INFORMATION ASSURANCE STRATEGIES.

    Not later than January 15, 2001, the President shall submit to 
Congress a comprehensive report detailing the specific steps taken by 
the Federal Government as of the date of the report to develop critical 
infrastructure assurance strategies as outlined by Presidential Decision 
Directive No. 63 (PDD-63). The report shall include the following:
            (1) A detailed summary of the progress of each Federal 
        agency in developing an internal information assurance plan.
            (2) The progress of Federal agencies in establishing 
        partnerships with relevant private sector industries to address 
        critical infrastructure vulnerabilities.

SEC. 1054. DEPARTMENT OF DEFENSE PROCESS FOR DECISIONMAKING IN CASES OF 
            FALSE CLAIMS.

    Not later than February 1, 2001, the Secretary of Defense shall 
submit to Congress a report describing the policies and procedures for 
Department of Defense decisionmaking on issues arising under sections 
3729 through 3733 of title 31, United States Code, in cases of claims 
submitted to the Department of Defense that are suspected or alleged to 
be false. The report shall include a discussion of any changes that have 
been made in the policies and procedures since January 1, 2000, and how 
such procedures are being implemented.

[[Page 114 STAT. 1654A-266]]

           Subtitle G--Government Information Security Reform

SEC. 1061. COORDINATION OF FEDERAL INFORMATION POLICY.

    Chapter 35 of title 44, United States Code, is amended by inserting 
at the end the following new subchapter:

                  ``SUBCHAPTER II--INFORMATION SECURITY

``Sec. 3531. Purposes

    ``The purposes of this subchapter are the following:
            ``(1) To provide a comprehensive framework for establishing 
        and ensuring the effectiveness of controls over information 
        resources that support Federal operations and assets.
            ``(2)(A) To recognize the highly networked nature of the 
        Federal computing environment including the need for Federal 
        Government interoperability and, in the implementation of 
        improved security management measures, assure that opportunities 
        for interoperability are not adversely affected.
            ``(B) To provide effective governmentwide management and 
        oversight of the related information security risks, including 
        coordination of information security efforts throughout the 
        civilian, national security, and law enforcement communities.
            ``(3) To provide for development and maintenance of minimum 
        controls required to protect Federal information and information 
        systems.
            ``(4) To provide a mechanism for improved oversight of 
        Federal agency information security programs.

``Sec. 3532. Definitions

    ``(a) Except as provided under subsection (b), the definitions under 
section 3502 shall apply to this subchapter.
    ``(b) In this subchapter:
            ``(1) The term `information technology' has the meaning 
        given that term in section 5002 of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1401).
            ``(2) The term `mission critical system' means any 
        telecommunications or information system used or operated by an 
        agency or by a contractor of an agency, or other organization on 
        behalf of an agency, that--
                    ``(A) is defined as a national security system under 
                section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 
                1452);
                    ``(B) is protected at all times by procedures 
                established for information which has been specifically 
                authorized under criteria established by an Executive 
                order or an Act of Congress to be classified in the 
                interest of national defense or foreign policy; or
                    ``(C) processes any information, the loss, misuse, 
                disclosure, or unauthorized access to or modification 
                of, would have a debilitating impact on the mission of 
                an agency.

``Sec. 3533. Authority and functions of the Director

    ``(a)(1) The Director shall establish governmentwide policies for 
the management of programs that--

[[Page 114 STAT. 1654A-267]]

            ``(A) support the cost-effective security of Federal 
        information systems by promoting security as an integral 
        component of each agency's business operations; and
            ``(B) include information technology architectures as 
        defined under section 5125 of the Clinger-Cohen Act of 1996 (40 
        U.S.C. 1425).

    ``(2) Policies under this subsection shall--
            ``(A) be founded on a continuing risk management cycle that 
        recognizes the need to--
                    ``(i) identify, assess, and understand risk; and
                    ``(ii) determine security needs commensurate with 
                the level of risk;
            ``(B) implement controls that adequately address the risk;
            ``(C) promote continuing awareness of information security 
        risk; and
            ``(D) continually monitor and evaluate policy and control 
        effectiveness of information security practices.

    ``(b) The authority under subsection (a) includes the authority to--
            ``(1) oversee and develop policies, principles, standards, 
        and guidelines for the handling of Federal information and 
        information resources to improve the efficiency and 
        effectiveness of governmental operations, including principles, 
        policies, and guidelines for the implementation of agency 
        responsibilities under applicable law for ensuring the privacy, 
        confidentiality, and security of Federal information;
            ``(2) consistent with the standards and guidelines 
        promulgated under section 5131 of the Clinger-Cohen Act of 1996 
        (40 U.S.C. 1441) and sections 5 and 6 of the Computer Security 
        Act of 1987 (40 U.S.C. 1441 note; Public Law 100-235; 101 Stat. 
        1729), require Federal agencies to identify and afford security 
        protections commensurate with the risk and magnitude of the harm 
        resulting from the loss, misuse, or unauthorized access to or 
        modification of information collected or maintained by or on 
        behalf of an agency;
            ``(3) direct the heads of agencies to--
                    ``(A) identify, use, and share best security 
                practices;
                    ``(B) develop an agencywide information security 
                plan;
                    ``(C) incorporate information security principles 
                and practices throughout the life cycles of the agency's 
                information systems; and
                    ``(D) ensure that the agency's information security 
                plan is practiced throughout all life cycles of the 
                agency's information systems;
            ``(4) oversee the development and implementation of 
        standards and guidelines relating to security controls for 
        Federal computer systems by the Secretary of Commerce through 
        the National Institute of Standards and Technology under section 
        5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1441) and 
        section 20 of the National Institute of Standards and Technology 
        Act (15 U.S.C. 278g-3);
            ``(5) oversee and coordinate compliance with this section in 
        a manner consistent with--
                    ``(A) sections 552 and 552a of title 5;
                    ``(B) sections 20 and 21 of the National Institute 
                of Standards and Technology Act (15 U.S.C. 278g-3 and 
                278g-4);

[[Page 114 STAT. 1654A-268]]

                    ``(C) section 5131 of the Clinger-Cohen Act of 1996 
                (40 U.S.C. 1441);
                    ``(D) sections 5 and 6 of the Computer Security Act 
                of 1987 (40 U.S.C. 1441 note; Public Law 100-235; 101 
                Stat. 1729); and
                    ``(E) related information management laws; and
            ``(6) take any authorized action under section 5113(b)(5) of 
        the Clinger-Cohen Act of 1996 (40 U.S.C. 1413(b)(5)) that the 
        Director considers appropriate, including any action involving 
        the budgetary process or appropriations management process, to 
        enforce accountability of the head of an agency for information 
        resources management, including the requirements of this 
        subchapter, and for the investments made by the agency in 
        information technology, including--
                    ``(A) recommending a reduction or an increase in any 
                amount for information resources that the head of the 
                agency proposes for the budget submitted to Congress 
                under section 1105(a) of title 31;
                    ``(B) reducing or otherwise adjusting apportionments 
                and reapportionments of appropriations for information 
                resources; and
                    ``(C) using other authorized administrative controls 
                over appropriations to restrict the availability of 
                funds for information resources.

    ``(c) The authorities of the Director under this section (other than 
the authority described in subsection (b)(6))--
            ``(1) shall be delegated to the Secretary of Defense, the 
        Director of Central Intelligence, and another agency head as 
        designated by the President in the case of systems described 
        under subparagraphs (A) and (B) of section 3532(b)(2);
            ``(2) shall be delegated to the Secretary of Defense in the 
        case of systems described under subparagraph (C) of section 
        3532(b)(2) that are operated by the Department of Defense, a 
        contractor of the Department of Defense, or another entity on 
        behalf of the Department of Defense; and
            ``(3) in the case of all other Federal information systems, 
        may be delegated only to the Deputy Director for Management of 
        the Office of Management and Budget.

``Sec. 3534. Federal agency responsibilities

    ``(a) The head of each agency shall--
            ``(1) be responsible for--
                    ``(A) adequately ensuring the integrity, 
                confidentiality, authenticity, availability, and 
                nonrepudiation of information and information systems 
                supporting agency operations and assets;
                    ``(B) developing and implementing information 
                security policies, procedures, and control techniques 
                sufficient to afford security protections commensurate 
                with the risk and magnitude of the harm resulting from 
                unauthorized disclosure, disruption, modification, or 
                destruction of information collected or maintained by or 
                for the agency; and
                    ``(C) ensuring that the agency's information 
                security plan is practiced throughout the life cycle of 
                each agency system;
            ``(2) ensure that appropriate senior agency officials are 
        responsible for--

[[Page 114 STAT. 1654A-269]]

                    ``(A) assessing the information security risks 
                associated with the operations and assets for programs 
                and systems over which such officials have control;
                    ``(B) determining the levels of information security 
                appropriate to protect such operations and assets; and
                    ``(C) periodically testing and evaluating 
                information security controls and techniques;
            ``(3) delegate to the agency Chief Information Officer 
        established under section 3506, or a comparable official in an 
        agency not covered by such section, the authority to administer 
        all functions under this subchapter including--
                    ``(A) designating a senior agency information 
                security official who shall report to the Chief 
                Information Officer or a comparable official;
                    ``(B) developing and maintaining an agencywide 
                information security program as required under 
                subsection (b);
                    ``(C) ensuring that the agency effectively 
                implements and maintains information security policies, 
                procedures, and control techniques;
                    ``(D) training and overseeing personnel with 
                significant responsibilities for information security 
                with respect to such responsibilities; and
                    ``(E) assisting senior agency officials concerning 
                responsibilities under paragraph (2);
            ``(4) ensure that the agency has trained personnel 
        sufficient to assist the agency in complying with the 
        requirements of this subchapter and related policies, 
        procedures, standards, and guidelines; and
            ``(5) ensure that the agency Chief Information Officer, in 
        coordination with senior agency officials, periodically--
                    ``(A)(i) evaluates the effectiveness of the agency 
                information security program, including testing control 
                techniques; and
                    ``(ii) implements appropriate remedial actions based 
                on that evaluation; and
                    ``(B) reports to the agency head on--
                          ``(i) the results of such tests and 
                      evaluations; and
                          ``(ii) the progress of remedial actions.

    ``(b)(1) Each agency shall develop and implement an agencywide 
information security program to provide information security for the 
operations and assets of the agency, including operations and assets 
provided or managed by another agency.
    ``(2) Each program under this subsection shall include--
            ``(A) periodic risk assessments that consider internal and 
        external threats to--
                    ``(i) the integrity, confidentiality, and 
                availability of systems; and
                    ``(ii) data supporting critical operations and 
                assets;
            ``(B) policies and procedures that--
                    ``(i) are based on the risk assessments required 
                under subparagraph (A) that cost-effectively reduce 
                information security risks to an acceptable level; and
                    ``(ii) ensure compliance with--
                          ``(I) the requirements of this subchapter;
                          ``(II) policies and procedures as may be 
                      prescribed by the Director; and

[[Page 114 STAT. 1654A-270]]

                          ``(III) any other applicable requirements;
            ``(C) security awareness training to inform personnel of--
                    ``(i) information security risks associated with the 
                activities of personnel; and
                    ``(ii) responsibilities of personnel in complying 
                with agency policies and procedures designed to reduce 
                such risks;
            ``(D) periodic management testing and evaluation of the 
        effectiveness of information security policies and procedures;
            ``(E) a process for ensuring remedial action to address any 
        significant deficiencies; and
            ``(F) procedures for detecting, reporting, and responding to 
        security incidents, including--
                    ``(i) mitigating risks associated with such 
                incidents before substantial damage occurs;
                    ``(ii) notifying and consulting with law enforcement 
                officials and other offices and authorities;
                    ``(iii) notifying and consulting with an office 
                designated by the Administrator of General Services 
                within the General Services Administration; and
                    ``(iv) notifying and consulting with an office 
                designated by the Secretary of Defense, the Director of 
                Central Intelligence, and another agency head as 
                designated by the President for incidents involving 
                systems described under subparagraphs (A) and (B) of 
                section 3532(b)(2).

    ``(3) Each program under this subsection is subject to the approval 
of the Director and is required to be reviewed at least annually by 
agency program officials in consultation with the Chief Information 
Officer. In the case of systems described under subparagraphs (A) and 
(B) of section 3532(b)(2), the Director shall delegate approval 
authority under this paragraph to the Secretary of Defense, the Director 
of Central Intelligence, and another agency head as designated by the 
President.
    ``(c)(1) Each agency shall examine the adequacy and effectiveness of 
information security policies, procedures, and practices in plans and 
reports relating to--
            ``(A) annual agency budgets;
            ``(B) information resources management under subchapter I of 
        this chapter;
            ``(C) performance and results based management under the 
        Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.);
            ``(D) program performance under sections 1105 and 1115 
        through 1119 of title 31, and sections 2801 through 2805 of 
        title 39; and
            ``(E) financial management under--
                    ``(i) chapter 9 of title 31, United States Code, and 
                the Chief Financial Officers Act of 1990 (31 U.S.C. 501 
                note; Public Law 101-576) (and the amendments made by 
                that Act);
                    ``(ii) the Federal Financial Management Improvement 
                Act of 1996 (31 U.S.C. 3512 note) (and the amendments 
                made by that Act); and
                    ``(iii) the internal controls conducted under 
                section 3512 of title 31.

    ``(2) Any significant deficiency in a policy, procedure, or practice 
identified under paragraph (1) shall be reported as a material

[[Page 114 STAT. 1654A-271]]

weakness in reporting required under the applicable provision of law 
under paragraph (1).
    ``(d)(1) In addition to the requirements of subsection (c), each 
agency, in consultation with the Chief Information Officer, shall 
include as part of the performance plan required under section 1115 of 
title 31 a description of--
            ``(A) the time periods; and
            ``(B) the resources, including budget, staffing, and 
        training,

which are necessary to implement the program required under subsection 
(b)(1).
    ``(2) The description under paragraph (1) shall be based on the risk 
assessment required under subsection (b)(2)(A).

``Sec. 3535. Annual independent evaluation

    ``(a)(1) Each year each agency shall have performed an independent 
evaluation of the information security program and practices of that 
agency.
    ``(2) Each evaluation by an agency under this section shall 
include--
            ``(A) testing of the effectiveness of information security 
        control techniques for an appropriate subset of the agency's 
        information systems; and
            ``(B) an assessment (made on the basis of the results of the 
        testing) of the compliance with--
                    ``(i) the requirements of this subchapter; and
                    ``(ii) related information security policies, 
                procedures, standards, and guidelines.

    ``(3) The Inspector General or the independent evaluator performing 
an evaluation under this section may use an audit, evaluation, or report 
relating to programs or practices of the applicable agency.
    ``(b)(1)(A) Subject to subparagraph (B), for agencies with 
Inspectors General appointed under the Inspector General Act of 1978 (5 
U.S.C. App.) or any other law, the annual evaluation required under this 
section or, in the case of systems described under subparagraphs (A) and 
(B) of section 3532(b)(2), an audit of the annual evaluation required 
under this section, shall be performed by the Inspector General or by an 
independent evaluator, as determined by the Inspector General of the 
agency.
    ``(B) For systems described under subparagraphs (A) and (B) of 
section 3532(b)(2), the evaluation required under this section shall be 
performed only by an entity designated by the Secretary of Defense, the 
Director of Central Intelligence, or another agency head as designated 
by the President.
    ``(2) For any agency to which paragraph (1) does not apply, the head 
of the agency shall contract with an independent evaluator to perform 
the evaluation.
    ``(c) Each year, not later than the anniversary of the date of the 
enactment of this subchapter, the applicable agency head shall submit to 
the Director--
            ``(1) the results of each evaluation required under this 
        section, other than an evaluation of a system described under 
        subparagraph (A) or (B) of section 3532(b)(2); and
            ``(2) the results of each audit of an evaluation required 
        under this section of a system described under subparagraph (A) 
        or (B) of section 3532(b)(2).

[[Page 114 STAT. 1654A-272]]

    ``(d)(1) The Director shall submit to Congress each year a report 
summarizing the materials received from agencies pursuant to subsection 
(c) in that year.
    ``(2) Evaluations and audits of evaluations of systems under the 
authority and control of the Director of Central Intelligence and 
evaluations and audits of evaluation of National Foreign Intelligence 
Programs systems under the authority and control of the Secretary of 
Defense shall be made available only to the appropriate oversight 
committees of Congress, in accordance with applicable laws.
    ``(e) Agencies and evaluators shall take appropriate actions to 
ensure the protection of information, the disclosure of which may 
adversely affect information security. Such protections shall be 
commensurate with the risk and comply with all applicable laws.

``Sec. 3536. Expiration

    ``This subchapter shall not be in effect after the date that is two 
years after the date on which this subchapter takes effect.''.

SEC. 1062. RESPONSIBILITIES OF CERTAIN AGENCIES.

    (a) Department of Commerce.--Notwithstanding section 20 of the 
National Institute of Standards and Technology Act (15 U.S.C. 278g-3) 
and except as provided under subsection (b), the Secretary of Commerce, 
through the National Institute of Standards and Technology and with 
technical assistance from the National Security Agency, as required or 
when requested, shall--
            (1) develop, issue, review, and update standards and 
        guidance for the security of Federal information systems, 
        including development of methods and techniques for security 
        systems and validation programs;
            (2) develop, issue, review, and update guidelines for 
        training in computer security awareness and accepted computer 
        security practices, with assistance from the Office of Personnel 
        Management;
            (3) provide agencies with guidance for security planning to 
        assist in the development of applications and system security 
        plans for such agencies;
            (4) provide guidance and assistance to agencies concerning 
        cost-effective controls when interconnecting with other systems; 
        and
            (5) evaluate information technologies to assess security 
        vulnerabilities and alert Federal agencies of such 
        vulnerabilities as soon as those vulnerabilities are known.

    (b) Department of Defense and the Intelligence Community.--
            (1) In general.--Notwithstanding any other provision of this 
        subtitle (including any amendment made by this subtitle)--
                    (A) the Secretary of Defense, the Director of 
                Central Intelligence, and another agency head as 
                designated by the President, shall, consistent with 
                their respective authorities--
                          (i) develop and issue information security 
                      policies, standards, and guidelines for systems 
                      described under subparagraphs (A) and (B) of 
                      section 3532(b)(2) of title 44, United States Code 
                      (as added by section 1061 of this Act), that 
                      provide more stringent protection, to

[[Page 114 STAT. 1654A-273]]

                      the maximum extent practicable, than the policies, 
                      principles, standards, and guidelines required 
                      under section 3533 of such title (as added by such 
                      section 1061); and
                          (ii) ensure the implementation of the 
                      information security policies, principles, 
                      standards, and guidelines described under clause 
                      (i); and
                    (B) the Secretary of Defense shall, consistent with 
                his authority--
                          (i) develop and issue information security 
                      policies, standards, and guidelines for systems 
                      described under subparagraph (C) of section 
                      3532(b)(2) of title 44, United States Code (as 
                      added by section 1061 of this Act), that are 
                      operated by the Department of Defense, a 
                      contractor of the Department of Defense, or 
                      another entity on behalf of the Department of 
                      Defense that provide more stringent protection, to 
                      the maximum extent practicable, than the policies, 
                      principles, standards, and guidelines required 
                      under section 3533 of such title (as added by such 
                      section 1061); and
                          (ii) ensure the implementation of the 
                      information security policies, principles, 
                      standards, and guidelines described under clause 
                      (i).
            (2) Measures addressed.--The policies, principles, 
        standards, and guidelines developed by the Secretary of Defense 
        and the Director of Central Intelligence under paragraph (1) 
        shall address the full range of information assurance measures 
        needed to protect and defend Federal information and information 
        systems by ensuring their integrity, confidentiality, 
        authenticity, availability, and nonrepudiation.

    (c) Department of Justice.--The Attorney General shall review and 
update guidance to agencies on--
            (1) legal remedies regarding security incidents and ways to 
        report to and work with law enforcement agencies concerning such 
        incidents; and
            (2) lawful uses of security techniques and technologies.

    (d) General Services Administration.--The Administrator of General 
Services shall--
            (1) review and update General Services Administration 
        guidance to agencies on addressing security considerations when 
        acquiring information technology; and
            (2) assist agencies in--
                    (A) fulfilling agency responsibilities under section 
                3534(b)(2)(F) of title 44, United States Code (as added 
                by section 1061 of this Act); and
                    (B) the acquisition of cost-effective security 
                products, services, and incident response capabilities.

    (e) Office of Personnel Management.--The Director of the Office of 
Personnel Management shall--
            (1) review and update Office of Personnel Management 
        regulations concerning computer security training for Federal 
        civilian employees;
            (2) assist the Department of Commerce in updating and 
        maintaining guidelines for training in computer security 
        awareness and computer security best practices; and

[[Page 114 STAT. 1654A-274]]

            (3) work with the National Science Foundation and other 
        agencies on personnel and training initiatives (including 
        scholarships and fellowships, as authorized by law) as necessary 
        to ensure that the Federal Government--
                    (A) has adequate sources of continuing information 
                security education and training available for employees; 
                and
                    (B) has an adequate supply of qualified information 
                security professionals to meet agency needs.

    (f ) Information Security Policies, Principles, Standards, and 
Guidelines.--
            (1) Adoption of policies, principles, standards, and 
        guidelines of other agencies.--The policies, principles, 
        standards, and guidelines developed under subsection (b) by the 
        Secretary of Defense, the Director of Central Intelligence, and 
        another agency head as designated by the President may be 
        adopted, to the extent that such policies are consistent with 
        policies and guidance developed by the Director of the Office of 
        Management and Budget and the Secretary of Commerce--
                    (A) by the Director of the Office of Management and 
                Budget, as appropriate, for application to the mission 
                critical systems of all agencies; or
                    (B) by an agency head, as appropriate, for 
                application to the mission critical systems of that 
                agency.
            (2) Development of more stringent policies, principles, 
        standards, and guidelines.--To the extent that such policies are 
        consistent with policies and guidance developed by the Director 
        of the Office of Management and Budget and the Secretary of 
        Commerce, an agency may develop and implement information 
        security policies, principles, standards, and guidelines that 
        provide more stringent protection than those required under 
        section 3533 of title 44, United States Code (as added by 
        section 1061 of this Act), or subsection (a) of this section.

    (g) Atomic Energy Act of 1954.--Nothing in this subtitle (including 
any amendment made by this subtitle) shall supersede any requirement 
made by, or under, the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
seq.). Restricted Data or Formerly Restricted Data shall be handled, 
protected, classified, downgraded, and declassified in conformity with 
the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

SEC. 1063. RELATIONSHIP OF DEFENSE INFORMATION ASSURANCE PROGRAM TO 
            GOVERNMENT-WIDE INFORMATION SECURITY PROGRAM.

    (a) Consistency of Requirements.--Subsection (b) of section 2224 of 
title 10, United States Code, is amended--
            (1) by striking ``(b) Objectives of the Program.--'' and 
        inserting ``(b) Objectives and Minimum Requirements.--(1)''; and
            (2) by adding at the end the following:

    ``(2) The program shall at a minimum meet the requirements of 
sections 3534 and 3535 of title 44.''.
    (b) Addition to Annual Report.--Subsection (e) of such section is 
amended by adding at the end the following new paragraph:

[[Page 114 STAT. 1654A-275]]

            ``(7) A summary of the actions taken in the administration 
        of sections 3534 and 3535 of title 44 within the Department of 
        Defense.''.

SEC. 1064. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Table of Sections.--Chapter 35 of title 44, United States Code, 
is amended--
            (1) in the table of sections--
                    (A) by inserting after the chapter heading the 
                following:

              ``SUBCHAPTER I--FEDERAL INFORMATION POLICY'';

                and
                    (B) by inserting after the item relating to section 
                3520 the following:

                  ``SUBCHAPTER II--INFORMATION SECURITY

``Sec.
``3531. Purposes.
``3532. Definitions.
``3533. Authority and functions of the Director.
``3534. Federal agency responsibilities.
``3535. Annual independent evaluation.
``3536. Expiration.'';

                and
            (2) by inserting before section 3501 the following:

              ``SUBCHAPTER I--FEDERAL INFORMATION POLICY''.

    (b) References to Chapter 35.--Sections 3501 through 3520 of title 
44, United States Code, are amended by striking ``chapter'' each place 
it appears and inserting ``subchapter'', except in section 3507(i)(1) of 
such title.

SEC. 1065. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect 30 days after the date of the enactment of this Act.

                      Subtitle H--Security Matters

SEC. 1071. LIMITATION ON GRANTING OF SECURITY CLEARANCES.

    (a) In General.--Chapter 49 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 986. Security clearances: limitations

    ``(a) Prohibition.--After the date of the enactment of this section, 
the Department of Defense may not grant or renew a security clearance 
for a person to whom this section applies who is described in subsection 
(c).
    ``(b) Covered Persons.--This section applies to the following 
persons:
            ``(1) An officer or employee of the Department of Defense.
            ``(2) A member of the Army, Navy, Air Force, or Marine Corps 
        who is on active duty or is in an active status.
            ``(3) An officer or employee of a contractor of the 
        Department of Defense.

    ``(c) Persons Disqualified From Being Granted Security Clearances.--
A person is described in this subsection if any of the following applies 
to that person:

[[Page 114 STAT. 1654A-276]]

            ``(1) The person has been convicted in any court of the 
        United States of a crime and sentenced to imprisonment for a 
        term exceeding one year.
            ``(2) The person is an unlawful user of, or is addicted to, 
        a controlled substance (as defined in section 102 of the 
        Controlled Substances Act (21 U.S.C. 802)).
            ``(3) The person is mentally incompetent, as determined by a 
        mental health professional approved by the Department of 
        Defense.
            ``(4) The person has been discharged or dismissed from the 
        Armed Forces under dishonorable conditions.

    ``(d) Waiver Authority.--In a meritorious case, the Secretary of 
Defense or the Secretary of the military department concerned may 
authorize an exception to the prohibition in subsection (a) for a person 
described in paragraph (1) or (4) of subsection (c). The authority under 
the preceding sentence may not be delegated.
    ``(e) Annual Report.--Not later than February 1 each year, the 
Secretary of Defense shall submit to the Committees on Armed Services of 
the Senate and House of Representatives a report identifying each waiver 
issued under subsection (d) during the preceding year with an 
explanation for each case of the disqualifying factor in subsection (c) 
that applied, and the reason for the waiver of the disqualification.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``986. Security clearances: limitations.''.

SEC. 1072. PROCESS FOR PRIORITIZING BACKGROUND INVESTIGATIONS FOR 
            SECURITY CLEARANCES FOR DEPARTMENT OF DEFENSE PERSONNEL AND 
            DEFENSE CONTRACTOR PERSONNEL.

    (a) Establishment of Process.--Chapter 80 of title 10, United States 
Code, is amended by adding after section 1563, as added by section 
542(a), the following new section:

``Sec. 1564. Security clearance investigations

    ``(a) Expedited Process.--The Secretary of Defense shall prescribe a 
process for expediting the completion of the background investigations 
necessary for granting security clearances for Department of Defense 
personnel and Department of Defense contractor personnel who are engaged 
in sensitive duties that are critical to the national security.
    ``(b) Required Features.--The process developed under subsection (a) 
shall provide for the following:
            ``(1) Quantification of the requirements for background 
        investigations necessary for grants of security clearances for 
        Department of Defense personnel and Department of Defense 
        contractor personnel.
            ``(2) Categorization of personnel on the basis of the degree 
        of sensitivity of their duties and the extent to which those 
        duties are critical to the national security.
            ``(3) Prioritization of the processing of background 
        investigations on the basis of the categories of personnel 
        determined under paragraph (2).

    ``(c) Annual Review.--The Secretary shall conduct an annual review 
of the process prescribed under subsection (a) and shall

[[Page 114 STAT. 1654A-277]]

revise that process as determined necessary in relation to ongoing 
Department of Defense missions.
    ``(d) Consultation Requirement.--The Secretary shall consult with 
the Secretaries of the military departments and the heads of Defense 
Agencies in carrying out this section.
    ``(e) Sensitive Duties.--For the purposes of this section, it is not 
necessary for the performance of duties to involve classified activities 
or classified matters in order for the duties to be considered sensitive 
and critical to the national security.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
1563, as added by section 542(b), the following new item:

``1564. Security clearance investigations.''.

    (c) Deadline for Prescribing Process for Prioritizing Background 
Investigations for Security Clearances.--The process required by section 
1564(a) of title 10, United States Code, as added by subsection (a), for 
expediting the completion of the background investigations necessary for 
granting security clearances for certain persons shall be prescribed not 
later than January 1, 2001.

SEC. 1073. AUTHORITY TO WITHHOLD CERTAIN SENSITIVE INFORMATION FROM 
            PUBLIC DISCLOSURE.

    (a) In General.--Chapter 3 of title 10, United States Code, is 
amended by inserting after section 130b the following new section:

``Sec. 130c. Nondisclosure of information: certain sensitive information 
                        of foreign governments and international 
                        organizations

    ``(a) Exemption From Disclosure.--The national security official 
concerned (as defined in subsection (h)) may withhold from public 
disclosure otherwise required by law sensitive information of foreign 
governments in accordance with this section.
    ``(b) Information Eligible for Exemption.--For the purposes of this 
section, information is sensitive information of a foreign government 
only if the national security official concerned makes each of the 
following determinations with respect to the information:
            ``(1) That the information was provided by, otherwise made 
        available by, or produced in cooperation with, a foreign 
        government or international organization.
            ``(2) That the foreign government or international 
        organization is withholding the information from public 
        disclosure (relying for that determination on the written 
        representation of the foreign government or international 
        organization to that effect).
            ``(3) That any of the following conditions are met:
                    ``(A) The foreign government or international 
                organization requests, in writing, that the information 
                be withheld.
                    ``(B) The information was provided or made available 
                to the United States Government on the condition that it 
                not be released to the public.
                    ``(C) The information is an item of information, or 
                is in a category of information, that the national 
                security official concerned has specified in regulations 
                prescribed under subsection (f ) as being information 
                the release of

[[Page 114 STAT. 1654A-278]]

                which would have an adverse effect on the ability of the 
                United States Government to obtain the same or similar 
                information in the future.

    ``(c) Information of Other Agencies.--If the national security 
official concerned provides to the head of another agency sensitive 
information of a foreign government, as determined by that national 
security official under subsection (b), and informs the head of the 
other agency of that determination, then the head of the other agency 
shall withhold the information from any public disclosure unless that 
national security official specifically authorizes the disclosure.
    ``(d) Limitations.--(1) If a request for disclosure covers any 
sensitive information of a foreign government (as described in 
subsection (b)) that came into the possession or under the control of 
the United States Government before the date of the enactment of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
and more than 25 years before the request is received by an agency, the 
information may be withheld only as set forth in paragraph (3).
    ``(2)(A) If a request for disclosure covers any sensitive 
information of a foreign government (as described in subsection (b)) 
that came into the possession or under the control of the United States 
Government on or after the date referred to in paragraph (1), the 
authority to withhold the information under this section is subject to 
the provisions of subparagraphs (B) and (C).
    ``(B) Information referred to in subparagraph (A) may not be 
withheld under this section after--
            ``(i) the date that is specified by a foreign government or 
        international organization in a request or expression of a 
        condition described in paragraph (1) or (2) of subsection (b) 
        that is made by the foreign government or international 
        organization concerning the information; or
            ``(ii) if there are more than one such foreign governments 
        or international organizations, the latest date so specified by 
        any of them.

    ``(C) If no date is applicable under subparagraph (B) to a request 
referred to in subparagraph (A) and the information referred to in that 
subparagraph came into possession or under the control of the United 
States more than 10 years before the date on which the request is 
received by an agency, the information may be withheld under this 
section only as set forth in paragraph (3).
    ``(3) Information referred to in paragraph (1) or (2)(C) may be 
withheld under this section in the case of a request for disclosure only 
if, upon the notification of each foreign government and international 
organization concerned in accordance with the regulations prescribed 
under subsection (g)(2), any such government or organization requests in 
writing that the information not be disclosed for an additional period 
stated in the request of that government or organization. After the 
national security official concerned considers the request of the 
foreign government or international organization, the official shall 
designate a later date as the date after which the information is not to 
be withheld under this section. The later date may be extended in 
accordance with a later request of any such foreign government or 
international organization under this paragraph.
    ``(e) Information Protected Under Other Authority.--This section 
does not apply to information or matters that are specifically

[[Page 114 STAT. 1654A-279]]

required in the interest of national defense or foreign policy to be 
protected against unauthorized disclosure under criteria established by 
an Executive order and are classified, properly, at the confidential, 
secret, or top secret level pursuant to such Executive order.
    ``(f ) Disclosures Not Affected.--Nothing in this section shall be 
construed to authorize any official to withhold, or to authorize the 
withholding of, information from the following:
            ``(1) Congress.
            ``(2) The Comptroller General, unless the information 
        relates to activities that the President designates as foreign 
        intelligence or counterintelligence activities.

    ``(g) Regulations.--(1) The national security officials referred to 
in subsection (h)(1) shall each prescribe regulations to carry out this 
section. The regulations shall include criteria for making the 
determinations required under subsection (b). The regulations may 
provide for controls on access to and use of, and special markings and 
specific safeguards for, a category or categories of information subject 
to this section.
    ``(2) The regulations shall include procedures for notifying and 
consulting with each foreign government or international organization 
concerned about requests for disclosure of information to which this 
section applies.
    ``(h) Definitions.--In this section:
            ``(1) The term `national security official concerned' means 
        the following:
                    ``(A) The Secretary of Defense, with respect to 
                information of concern to the Department of Defense, as 
                determined by the Secretary.
                    ``(B) The Secretary of Transportation, with respect 
                to information of concern to the Coast Guard, as 
                determined by the Secretary, but only while the Coast 
                Guard is not operating as a service in the Navy.
                    ``(C) The Secretary of Energy, with respect to 
                information concerning the national security programs of 
                the Department of Energy, as determined by the 
                Secretary.
            ``(2) The term `agency' has the meaning given that term in 
        section 552(f ) of title 5.
            ``(3) The term `international organization' means the 
        following:
                    ``(A) A public international organization designated 
                pursuant to section 1 of the International Organizations 
                Immunities Act (59 Stat. 669; 22 U.S.C. 288) as being 
                entitled to enjoy the privileges, exemptions, and 
                immunities provided in such Act.
                    ``(B) A public international organization created 
                pursuant to a treaty or other international agreement as 
                an instrument through or by which two or more foreign 
                governments engage in some aspect of their conduct of 
                international affairs.
                    ``(C) An official mission, except a United States 
                mission, to a public international organization referred 
                to in subparagraph (A) or (B).''.

[[Page 114 STAT. 1654A-280]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
130b the following new item:

``130c. Nondisclosure of information: certain sensitive information of 
           foreign governments and international organizations.''.

SEC. 1074. EXPANSION OF AUTHORITY TO EXEMPT GEODETIC PRODUCTS OF THE 
            DEPARTMENT OF DEFENSE FROM PUBLIC DISCLOSURE.

    Section 455(b)(1)(C) of title 10, United States Code, is amended by 
striking ``or reveal military operational or contingency plans'' and 
inserting ``, reveal military operational or contingency plans, or 
reveal, jeopardize, or compromise military or intelligence 
capabilities''.

SEC. 1075. EXPENDITURES FOR DECLASSIFICATION ACTIVITIES.

    (a) Identification in Budget Materials of Amounts for 
Declassification Activities.--Section 230 of title 10, United States 
Code, is amended--
            (1) by striking ``, as a budgetary line item,''; and
            (2) by adding at the end the following new sentence: 
        ``Identification of such amounts in such budget justification 
        materials shall be in a single display that shows the total 
        amount for the Department of Defense and the amount for each 
        military department and Defense Agency.''.

    (b) Limitation on Expenditures.--The total amount expended by the 
Department of Defense during fiscal year 2001 to carry out 
declassification activities under the provisions of sections 3.4, 3.5, 
and 3.6 of Executive Order 12958 (50 U.S.C. 435 note) and for special 
searches (including costs for document search, copying, and review and 
imagery analysis) may not exceed $30,000,000.
    (c) Compilation and Organization of Records.--The Department of 
Defense may not be required, when conducting a special search, to 
compile or organize records that have already been declassified and 
placed into the public domain.
    (d) Special Searches.--For the purpose of this section, the term 
``special search'' means the response of the Department of Defense to 
any of the following:
            (1) A statutory requirement to conduct a declassification 
        review on a specified set of agency records.
            (2) An Executive order to conduct a declassification review 
        on a specified set of agency records.
            (3) An order from the President or an official with 
        delegated authority from the President to conduct a 
        declassification review on a specified set of agency records.

SEC. 1076. ENHANCED ACCESS TO CRIMINAL HISTORY RECORD INFORMATION FOR 
            NATIONAL SECURITY AND OTHER PURPOSES.

    (a) Coverage of Department of Transportation.--Section 9101 of title 
5, United States Code, is amended--
            (1) by adding at the end of subsection (a) the following new 
        paragraph:
            ``(6) The term `covered agency' means any of the following:
                    ``(A) The Department of Defense.
                    ``(B) The Department of State.
                    ``(C) The Department of Transportation.
                    ``(D) The Office of Personnel Management.

[[Page 114 STAT. 1654A-281]]

                    ``(E) The Central Intelligence Agency.
                    ``(F) The Federal Bureau of Investigation.'';
            (2) in subsection (b)(1)--
                    (A) by striking ``by the Department of Defense'' and 
                all that follows through ``Federal Bureau of 
                Investigation'' and inserting ``by the head of a covered 
                agency''; and
                    (B) by striking ``such department, office, agency, 
                or bureau'' and inserting ``that covered agency''; and
            (3) in subsection (c), by striking ``The Department of 
        Defense'' and all that follows through ``Federal Bureau of 
        Investigation'' and inserting ``A covered agency''.

    (b) Repeal of Expired Provision.--Subsection (b) of such section is 
amended by striking paragraph (3).
    (c) Expanded Purposes for Access to Criminal History Information.--
Subsection (b) of such section is further amended--
            (1) by redesignating paragraph (2) as paragraph (4);
            (2) in the first sentence of paragraph (1)--
                    (A) by inserting ``any of the following:'' after 
                ``eligibility for''; and
                    (B) by striking ``(A) access to classified 
                information'' and all that follows through the end of 
                the sentence and inserting the following:
            ``(A) Access to classified information.
            ``(B) Assignment to or retention in sensitive national 
        security duties.
            ``(C) Acceptance or retention in the armed forces.
            ``(D) Appointment, retention, or assignment to a position of 
        public trust or a critical or sensitive position while either 
        employed by the Government or performing a Government 
        contract.'';
            (3) by designating the second sentence of paragraph (1) as 
        paragraph (2); and
            (4) by designating the third sentence of paragraph (1) as 
        paragraph (3) and in that sentence by striking ``, nor shall'' 
        and all that follows through the end of the sentence and 
        inserting a period.

    (d) Use of Automated Information Delivery Systems.--Such section is 
further amended--
            (1) by redesignating subsection (e) as subsection (f ); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):

    ``(e)(1) Automated information delivery systems shall be used to 
provide criminal history record information to a covered agency under 
subsection (b) whenever available.
    ``(2) Fees, if any, charged for automated access through such 
systems may not exceed the reasonable cost of providing such access.
    ``(3) The criminal justice agency providing the criminal history 
record information through such systems may not limit disclosure on the 
basis that the repository is accessed from outside the State.
    ``(4) Information provided through such systems shall be the full 
and complete criminal history record.
    ``(5) Criminal justice agencies shall accept and respond to requests 
for criminal history record information through such systems with 
printed or photocopied records when requested.''.
    (e) Technical Amendments.--Subsection (a) of such section is 
amended--

[[Page 114 STAT. 1654A-282]]

            (1) in paragraph (1), by striking ``includes'' and all that 
        follows through ``thereof which'' and inserting ``means (A) any 
        Federal, State, or local court, and (B) any Federal, State, or 
        local agency, or any subunit thereof, which''; and
            (2) in paragraph (4)--
                    (A) by inserting ``the Commonwealth of'' before 
                ``the Northern Mariana Islands''; and
                    (B) by striking ``the Trust Territory of the Pacific 
                Islands,''.

    (f ) Conforming Amendments.--(1)(A) The heading for chapter 91 of 
title 5, United States Code, is amended to read as follows:

 ``CHAPTER 91--ACCESS TO CRIMINAL HISTORY RECORDS FOR NATIONAL SECURITY 
                          AND OTHER PURPOSES''.

    (B) The item relating to chapter 91 in the table of chapters at the 
beginning of part III of such title is amended to read as follows:

``91. Access to Criminal History Records for National Security and 
Other Purposes...................................................9101''.

    (2)(A) The heading of section 9101 of such title is amended to read 
as follows:

``Sec. 9101. Access to criminal history records for national security 
                        and other purposes''.

    (B) The item relating to that section in the table of sections at 
the beginning of chapter 91 of such title is amended to read as follows:

``9101. Access to criminal history records for national security and 
           other purposes.''.

    (g) Repeal of Superseded Provision.--(1) Section 520a of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 31 of such 
title is amended by striking the item relating to section 520a.

SEC. 1077. TWO-YEAR EXTENSION OF AUTHORITY TO ENGAGE IN COMMERCIAL 
            ACTIVITIES AS SECURITY FOR INTELLIGENCE COLLECTION 
            ACTIVITIES.

    Section 431(a) of title 10, United States Code, is amended in the 
second sentence by striking ``December 31, 2000'' and inserting 
``December 31, 2002''.

SEC. 1078. COORDINATION OF NUCLEAR WEAPONS SECRECY POLICIES AND 
            CONSIDERATION OF HEALTH OF WORKERS AT FORMER DEPARTMENT OF 
            DEFENSE NUCLEAR FACILITIES.

    (a) Review of Secrecy Policies.--(1) The Secretary of Defense shall 
review classification and security policies of the Department of Defense 
in order to ensure that, within appropriate national security 
constraints, those policies do not prevent or discourage former defense 
nuclear weapons facility employees who may have been exposed to 
radioactive or other hazardous substances associated with nuclear 
weapons from discussing such exposures with appropriate health care 
providers and with other appropriate officials.
    (2) The policies reviewed under paragraph (1) shall include the 
policy to neither confirm nor deny the presence of nuclear

[[Page 114 STAT. 1654A-283]]

weapons as that policy is applied to former defense nuclear weapons 
facilities.
    (b) Definitions.--For purposes of this section:
            (1) The term ``former defense nuclear weapons facility 
        employees'' means employees and former employees of the 
        Department of Defense who are or were employed at a site that, 
        as of the date of the enactment of this Act, is a former defense 
        nuclear weapons facility.
            (2) The term ``former defense nuclear weapons facility'' 
        means a current or former Department of Defense site in the 
        United States which at one time was a defense nuclear weapons 
        facility but which no longer contains nuclear weapons or 
        materials and otherwise is no longer used for such purpose.
            (3) The term ``defense nuclear weapons facility'' means a 
        Department of Defense site in the United States at which nuclear 
        weapons or materials are stored, assembled, disassembled, or 
        maintained.

    (c) Notification of Affected Employees.--(1) The Secretary of 
Defense shall seek to identify individuals--
            (A) who are former defense nuclear weapons facility 
        employees; and
            (B) who, while employed at a defense nuclear weapons 
        facility, may have been exposed to radioactive or hazardous 
        substances associated with nuclear weapons.

    (2) Upon identification of any individual under paragraph (1), the 
Secretary of Defense shall notify that individual, by mail or other 
individual means, of any such exposure to radioactive or hazardous 
substances associated with nuclear weapons that has been identified by 
the Secretary. The notification shall include an explanation of how (or 
the degree to which) that individual can discuss any such exposure with 
a health care provider who does not hold a security clearance without 
violating security or classification procedures and, if necessary, 
provide guidance to facilitate the ability of that individual to contact 
a health care provider with appropriate security clearances or otherwise 
to discuss such exposures with other officials who are determined by the 
Secretary of Defense to be appropriate.
    (d) Report.--Not later than May 1, 2001, 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 
setting forth--
            (1) the results of the review conducted under subsection 
        (a), including any changes made or recommendations for 
        legislation; and
            (2) the status of the notifications required by subsection 
        (b) and an anticipated date by which the identification and 
        notification of individuals under that subsection will be 
        completed.

    (e) Consultation with Secretary of Energy.--The Secretary of Defense 
shall carry out the review under subsection (a) and the identification 
of individuals under subsection (b), and shall prepare the report under 
subsection (c), in consultation with the Secretary of Energy.

[[Page 114 STAT. 1654A-284]]

                        Subtitle I--Other Matters

SEC. 1081. FUNDS FOR ADMINISTRATIVE EXPENSES UNDER DEFENSE EXPORT LOAN 
            GUARANTEE PROGRAM.

    (a) Authority To Use Operation and Maintenance Funds on an Interim 
Basis.--Section 2540c(d) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``Fees.--''; and
            (2) by adding at the end the following new paragraph:

    ``(2)(A) If for any fiscal year amounts in the special account 
established under paragraph (1) are not available (or are not 
anticipated to be available) in a sufficient amount for administrative 
expenses of the Department of Defense for that fiscal year that are 
directly attributable to the administration of the program under this 
subchapter, the Secretary may use amounts currently available for 
operations and maintenance for Defense-wide activities, not to exceed 
$500,000 in any fiscal year, for those expenses.
    ``(B) The Secretary shall, from funds in the special account 
established under paragraph (1), replenish operations and maintenance 
accounts for amounts expended under subparagraph (A) as soon as the 
Secretary determines practicable.''.
    (b) Effective Date.--Paragraph (2) of section 2540c(d) of title 10, 
United States Code, as added by subsection (a), shall take effect on 
October 1, 2000.
    (c) Limitation Pending Submission of Report.--The Secretary of 
Defense may not exercise the authority provided by paragraph (2) of 
section 2540c(d) of title 10, United States Code, as added by subsection 
(a), until the Secretary submits to Congress a report on the operation 
of the Defense Export Loan Guarantee Program under subchapter V of 
chapter 148 of title 10, United States Code. The report shall include 
the following:
            (1) A discussion of the effectiveness of the loan guarantee 
        program in furthering the sale of United States defense 
        articles, defense services, and design and construction services 
        to nations that are specified in section 2540(b) of such title, 
        to include a comparison of the loan guarantee program with other 
        United States Government programs that are intended to 
        contribute to the sale of United States defense articles, 
        defense services, and design and construction services and other 
        comparisons the Secretary determines to be appropriate.
            (2) A discussion of the requirements and resources 
        (including personnel and funds) for continued administration of 
        the loan guarantee program by the Defense Department, to 
        include--
                    (A) an itemization of the requirements necessary and 
                resources available (or that could be made available) to 
                administer the loan guarantee program for each of the 
                following entities: the Defense Security Cooperation 
                Agency, the Department of Defense International 
                Cooperation Office, and other Defense Department 
                agencies, offices, or activities as the Secretary may 
                specify; and
                    (B) for each such activity, agency, or office, a 
                comparison of the use of Defense Department personnel 
                exclusively to administer, manage, and oversee the 
                program with the use of contracted commercial entities 
                to administer and manage the program.

[[Page 114 STAT. 1654A-285]]

            (3) Any legislative recommendations that the Secretary 
        believes could improve the effectiveness of the program.
            (4) A determination made by the Secretary of Defense 
        indicating which Defense Department agency, office, or other 
        activity should administer, manage, and oversee the loan 
        guarantee program to increase sales of United States defense 
        articles, defense services, and design and construction 
        services, such determination to be made based on the information 
        and analysis provided in the report.

SEC. 1082. TRANSIT PASS PROGRAM FOR DEPARTMENT OF DEFENSE PERSONNEL IN 
            POOR AIR QUALITY AREAS.

    (a) In General.--(1) Chapter 134 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2259. Transit pass program: personnel in poor air quality areas

    ``(a) Establishment of Program.--To encourage Department of Defense 
personnel assigned to duty, or employed, in poor air quality areas to 
use means other than single-occupancy motor vehicles to commute to or 
from the location of their duty assignments, the Secretary of Defense 
shall exercise the authority provided in section 7905 of title 5 to 
establish a program to provide a transit pass benefit under subsection 
(b)(2)(A) of that section for members of the Army, Navy, Air Force, and 
Marine Corps who are assigned to duty, and to Department of Defense 
civilian officers and employees who are employed, in a poor air quality 
area.
    ``(b) Poor Air Quality Areas.--In this section, the term `poor air 
quality area' means an area--
            ``(1) that is subject to the national ambient air quality 
        standards promulgated by the Administrator of the Environmental 
        Protection Agency under section 109 of the Clean Air Act (42 
        U.S.C. 7409); and
            ``(2) that, as determined by the Administrator of the 
        Environmental Protection Agency, is a nonattainment area with 
        respect to any of those standards.''.

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

``2259. Transit pass program: personnel in poor air quality areas.''.

    (b) Time for Implementation.--The Secretary of Defense shall 
prescribe the effective date for the transit pass program required under 
section 2259 of title 10, United States Code, as added by subsection 
(a). The effective date so prescribed may not be later than the first 
day of the first month that begins on or after the date that is 180 days 
after the date of the enactment of this Act.

SEC. 1083. TRANSFER OF VIETNAM ERA TA-4 AIRCRAFT TO NONPROFIT 
            FOUNDATION.

    (a) Authority to Convey.--The Secretary of the Navy may convey, 
without consideration, to the nonprofit Collings Foundation of Stow, 
Massachusetts (in this section referred to as the ``foundation''), all 
right, title, and interest of the United States in and to one surplus 
TA-4 aircraft that is flyable or that can be readily

[[Page 114 STAT. 1654A-286]]

restored to flyable condition. The conveyance shall be made by means of 
a conditional deed of gift.
    (b) Condition of Aircraft.--(1) The Secretary may not convey 
ownership of an aircraft under subsection (a) until the Secretary 
determines that the foundation has altered the aircraft in such manner 
as the Secretary determines necessary to ensure that the aircraft does 
not have any capability for use as a platform for launching or releasing 
munitions or any other combat capability that it was designed to have. 
The foundation shall complete any such alteration within one year after 
the date of the enactment of this Act.
    (2) The Secretary is not required to repair or alter the condition 
of the aircraft before conveying ownership of the aircraft.
    (c) Reverter Upon Breach of Conditions.--The Secretary shall include 
in the instrument of conveyance of the aircraft--
            (1) a condition that the foundation not convey any ownership 
        interest in, or transfer possession of, the aircraft to any 
        other party without the prior approval of the Secretary;
            (2) a condition that the foundation operate and maintain the 
        aircraft in compliance with all applicable limitations and 
        maintenance requirements imposed by the Administrator of the 
        Federal Aviation Administration; and
            (3) a condition that if the Secretary determines at any time 
        that the foundation has conveyed an ownership interest in, or 
        transferred possession of, the aircraft to any other party 
        without the prior approval of the Secretary, or has failed to 
        comply with the condition set forth in paragraph (2), all right, 
        title, and interest in and to the aircraft, including any repair 
        or alteration of the aircraft, shall revert to the United 
        States, and the United States shall have the right of immediate 
        possession of the aircraft.

    (d) 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, costs of determining 
compliance with subsection (b), and costs of operation and maintenance 
of the aircraft conveyed shall be borne by the foundation.
    (e) 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.
    (f ) Clarification of Liability.--Notwithstanding any other 
provision of law, upon the conveyance of ownership of a TA-4 aircraft to 
the foundation under subsection (a), the United States shall not be 
liable for any death, injury, loss, or damage that results from any use 
of that aircraft by any person other than the United States.

SEC. 1084. TRANSFER OF 19TH CENTURY CANNON TO MUSEUM.

    (a) Donation Required.--The Secretary of the Army shall convey, 
without consideration, to the Friends of the Cannonball House, 
Incorporated (in this section referred to as the ``recipient''), which 
is a nonprofit corporation that operates the Cannonball House Museum in 
Macon, Georgia, all right, title, and interest of the United States in 
and to a 12-pounder Napoleon cannon bearing the following markings:
            (1) On the top ``CS''.

[[Page 114 STAT. 1654A-287]]

            (2) On the face of the muzzle: ``Macon Arsenal, 1864/No.41/
        1164 ET''.
            (3) On the right trunnion: ``Macon Arsenal GEO/1864/No.41/
        WT.1164/E.T.''.

    (b) Additional Terms and Conditions on Conveyance.--The Secretary of 
the Army shall include in the instrument of conveyance of the cannon 
under subsection (a)--
            (1) a condition that the recipient not convey any ownership 
        interest in, or transfer possession of, the cannon to any other 
        party without the prior approval of the Secretary; and
            (2) a condition that if the Secretary determines at any time 
        that the recipient has conveyed an ownership interest in, or 
        transferred possession of, the cannon to any other party without 
        the prior approval of the Secretary, all right, title, and 
        interest in and to the cannon shall revert to the United States, 
        and the United States shall have the right of immediate 
        possession of the cannon.

    (c) Relationship to Other Law.--The conveyance required under this 
section may be carried out without regard to the Act entitled ``An Act 
for the preservation of American antiquities'', approved June 8, 1906 
(16 U.S.C. 431 et seq.), popularly referred to as the ``Antiquities Act 
of 1906''.
    (d) Acquisition of Replacement Macon Cannon.--If the Secretary of 
the Army determines that the Army's inventory of Civil War era cannons 
should include an additional cannon documented as having been 
manufactured in Macon, Georgia, to replace the cannon conveyed under 
subsection (a), the Secretary may acquire such a cannon by donation or 
purchase with funds made available for this purpose.

SEC. 1085. FEES FOR PROVIDING HISTORICAL INFORMATION TO THE PUBLIC.

    (a) Army.--(1) Chapter 437 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 4595. Army Military History Institute: fee for providing 
                        historical information to the public

    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Army may charge a person a fee for providing the person 
with information from the United States Army Military History Institute 
that is requested by that person.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.

    ``(c) Limitation on Amount.--A fee charged for providing information 
under this section may not exceed the cost of providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information in any fiscal year shall be credited to the 
appropriation or appropriations charged the costs of providing 
information to the public from the United States Army Military History 
Institute during that fiscal year.
    ``(e) Definitions.--In this section:

[[Page 114 STAT. 1654A-288]]

            ``(1) The term `United States Army Military History 
        Institute' means the archive for historical records and 
        materials of the Army that the Secretary of the Army designates 
        as the primary archive for such records and materials.
            ``(2) The terms `officer of the United States' and `employee 
        of the United States' have the meanings given the terms 
        `officer' and `employee', respectively, in sections 2104 and 
        2105, respectively, of title 5.''.

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

``4595. Army Military History Institute: fee for providing historical 
           information to the public.''.

    (b) Navy.--(1) Chapter 649 of such title is amended by adding at the 
end the following new section:

``Sec. 7582. Naval and Marine Corps Historical Centers: fee for 
                        providing historical information to the public

    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Navy may charge a person a fee for providing the person 
with information from the United States Naval Historical Center or the 
Marine Corps Historical Center that is requested by that person.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.

    ``(c) Limitation on Amount.--A fee charged for providing information 
under this section may not exceed the cost of providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information from the United States Naval Historical Center or 
the Marine Corps Historical Center in any fiscal year shall be credited 
to the appropriation or appropriations charged the costs of providing 
information to the public from that historical center during that fiscal 
year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Naval Historical Center' means 
        the archive for historical records and materials of the Navy 
        that the Secretary of the Navy designates as the primary archive 
        for such records and materials.
            ``(2) The term `Marine Corps Historical Center' means the 
        archive for historical records and materials of the Marine Corps 
        that the Secretary of the Navy designates as the primary archive 
        for such records and materials.
            ``(3) The terms `officer of the United States' and `employee 
        of the United States' have the meanings given the terms 
        `officer' and `employee', respectively, in sections 2104 and 
        2105, respectively, of title 5.''.

    (2) The heading of such chapter is amended by striking ``related''.

[[Page 114 STAT. 1654A-289]]

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

``7582. Naval and Marine Corps Historical Centers: fee for providing 
           historical information to the public.''.

    (B) The item relating to such chapter in the tables of chapters at 
the beginning of subtitle C of such title and the beginning of part IV 
of such subtitle is amended by striking out ``Related''.
    (c) Air Force.--(1) Chapter 937 of such title is amended by adding 
at the end the following new section:

``Sec. 9594. Air Force Military History Institute: fee for providing 
                        historical information to the public

    ``(a) Authority.--Except as provided in subsection (b), the 
Secretary of the Air Force may charge a person a fee for providing the 
person with information from the United States Air Force Military 
History Institute that is requested by that person.
    ``(b) Exceptions.--A fee may not be charged under this section--
            ``(1) to a person for information that the person requests 
        to carry out a duty as a member of the armed forces or an 
        officer or employee of the United States; or
            ``(2) for a release of information under section 552 of 
        title 5.

    ``(c) Limitation on Amount.--A fee charged for providing information 
under this section may not exceed the cost of providing the information.
    ``(d) Retention of Fees.--Amounts received under subsection (a) for 
providing information in any fiscal year shall be credited to the 
appropriation or appropriations charged the costs of providing 
information to the public from the United States Air Force Military 
History Institute during that fiscal year.
    ``(e) Definitions.--In this section:
            ``(1) The term `United States Air Force Military History 
        Institute' means the archive for historical records and 
        materials of the Air Force that the Secretary of the Air Force 
        designates as the primary archive for such records and 
        materials.
            ``(2) The terms `officer of the United States' and `employee 
        of the United States' have the meanings given the terms 
        `officer' and `employee', respectively, in sections 2104 and 
        2105, respectively, of title 5.''.

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

``9594. Air Force Military History Institute: fee for providing 
           historical information to the public.''.

SEC. 1086. GRANTS TO AMERICAN RED CROSS FOR ARMED FORCES EMERGENCY 
            SERVICES.

    (a) Grants Authorized.--Subject to subsection (b), the Secretary of 
Defense may make a grant to the American Red Cross in an amount not to 
exceed $9,400,000 in each of fiscal years 2001, 2002, and 2003 for the 
support of the Armed Forces Emergency Services program of the American 
Red Cross.
    (b) Matching Requirement.--The grant under subsection (a) for a 
fiscal year may not be made until after the American Red Cross 
Incorporated, certifies to the Secretary of Defense that the American 
Red Cross will expend for the Armed Forces Emergency

[[Page 114 STAT. 1654A-290]]

Services program for that fiscal year funds, derived from non-Federal 
sources, in a total amount that equals or exceeds the amount of the 
grant.

SEC. 1087. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) Section 180(d) is amended by striking ``section 5376'' 
        and inserting ``section 5315''.
            (2) Section 628(c)(2) is amended by striking ``section'' in 
        the second sentence after ``rather than the provisions of'' and 
        inserting ``sections''.
            (3) Section 702(b)(2) is amended by striking ``section 
        230(c)'' and inserting ``section 203(c)''.
            (4) Section 706(c) is amended--
                    (A) by striking ``(1)'' after ``(c)''; and
                    (B) by striking paragraph (2).
            (5) Section 1074g is amended--
                    (A) in subsection (a)(6), by striking ``as part of 
                the regulations established'' and inserting ``in the 
                regulations prescribed'';
                    (B) in subsection (a)(7), by striking ``not included 
                on the uniform formulary, but,'' and inserting ``that 
                are not included on the uniform formulary but that 
                are'';
                    (C) in subsection (b)(1), by striking ``required 
                by'' in the last sentence and inserting ``prescribed 
                under'';
                    (D) in subsection (d)(2), by striking ``Not later 
                than'' and all that follows through ``utilize'' and 
                inserting ``Effective not later than April 5, 2000, the 
                Secretary shall use'';
                    (E) in subsection (e)--
                          (i) by striking ``Not later than April 1, 
                      2000, the'' and inserting ``The''; and
                          (ii) by inserting ``in'' before ``the 
                      TRICARE'' and before ``the national'';
                    (F) in subsection (f )--
                          (i) by striking ``As used in this section--'' 
                      and inserting ``In this section:'';
                          (ii) by striking ``the'' at the beginning of 
                      paragraphs (1) and (2) and inserting ``The''; and
                          (iii) by striking ``; and'' at the end of 
                      paragraph (1) and inserting a period; and
                    (G) in subsection (g), by striking ``promulgate'' 
                and inserting ``prescribe''.
            (6) Section 1076c(b)(5)(C) is amended by striking ``pursuant 
        to subsection (i)(2) of such section''.
            (7) Section 1095d(b) is amended by striking 
        ``subparagraphs'' and inserting ``subparagraph''.
            (8) Section 1109(b) is amended by striking ``(1)'' before 
        ``The Secretaries''.
            (9) Section 1142(b)(4) is amended by striking ``sections 
        1151, 1152, and 1153 of this title'' and inserting ``sections 
        1152 and 1153 of this title and the Troops-to-Teachers Program 
        Act of 1999 (20 U.S.C. 9301 et seq.)''.
            (10) Section 1448(b)(3)(E)(ii) is amended by striking the 
        second comma after ``October 16, 1998''.
            (11) Section 1598 is amended--

[[Page 114 STAT. 1654A-291]]

                    (A) in subsection (d)(2), by inserting ``as in 
                effect on October 4, 1999,'' after ``of this title,'' 
                both places it appears; and
                    (B) in subsection (f ), by inserting ``, as in 
                effect on October 4, 1999,'' after ``of this title''.
            (12) Section 2113(f ) is amended--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraph (3) as paragraph (4); 
                and
                    (C) by designating the penultimate sentence and the 
                last sentence of paragraph (1) as paragraphs (2) and 
                (3), respectively.
            (13) Section 2401(b)(1)(B) is amended by striking 
        ``Committees on Appropriations'' and inserting ``Committee on 
        Appropriations''.
            (14) Section 2410j is amended--
                    (A) in subsection (f )(2), by inserting ``as in 
                effect on October 4, 1999,'' after ``of this title,'' 
                both places it appears; and
                    (B) in subsection (h), by inserting ``, as in effect 
                on October 4, 1999,'' after ``of this title''.
            (15) Section 2688 is amended by redesignating subsections 
        (i) and ( j) as subsections (h) and (i), respectively.
            (16) Section 2814(k) is amended by inserting ``and'' after 
        ``Balanced Budget''.
            (17) Sections 4357(e)(5), 6975(e)(5), and 9356(e)(5) are 
        amended by inserting a close parenthesis after ``80b-2)''.
            (18) Section 5143(c)(2) is amended by striking ``has a 
        grade'' and inserting ``has the grade of''.
            (19) Section 5144(c)(2) is amended by striking ``has a 
        grade'' and inserting ``has the grade of''.
            (20) Section 10218 is amended--
                    (A) in subsections (a)(1), (b)(1), (b)(2)(A), and 
                (b)(2)(B)(ii), by striking ``the date of the enactment 
                of this section'' each place it appears and inserting 
                ``October 5, 1999,'';
                    (B) in subsections (a)(3)(B)(i) and (b)(2)(B)(i), by 
                striking ``the end of the one-year period beginning on 
                the date of the enactment of this subsection'' and 
                inserting ``October 5, 2000'';
                    (C) in subsection (b)(1), by striking ``six months 
                after the date of the enactment of this section'' and 
                inserting ``April 5, 2000''; and
                    (D) in subsection (b)(3), by striking ``within six 
                months of the date of the enactment of this section'' 
                and inserting ``during the period beginning on October 
                5, 1999, and ending on April 5, 2000,''.
            (21) Section 12552 is amended by inserting a period at the 
        end.
            (22) Section 18233a(b) is amended--
                    (A) in paragraph (1), by striking ``section 
                2805(c)(1)'' and inserting ``section 2805(c)(1)(A)''; 
                and
                    (B) in paragraph (2), by striking ``section 
                2805(c)(2)'' and inserting ``section 2805(c)(1)(B)''.

    (b) Title 37, United States Code.--Title 37, United States Code, is 
amended as follows:

[[Page 114 STAT. 1654A-292]]

            (1) Section 301b( j)(2) is amended by striking ``section 
        301a(a)(6)(A)'' and inserting ``section 301a(a)(6)(B)''.
            (2) Section 403(f )(3) is amended by striking ``regulation'' 
        and inserting ``regulations''.
            (3) Section 404(b)(2) is amended by striking ``section 
        402(e)'' and inserting ``section 403(f )(3)''.
            (4) The section 435 added by section 586(b) of the National 
        Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
        65; 113 Stat. 638) is redesignated as section 436, and the item 
        relating to that section in the table of sections at the 
        beginning of chapter 7 is revised to conform to such 
        redesignation.
            (5) Section 1012 is amended by striking ``section 
        402(b)(3)'' and inserting ``section 402(e)''.

    (c) Public Law 106-65.--(1) Effective as of October 5, 1999, and as 
if included therein as enacted, the National Defense Authorization Act 
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 512 et seq) is 
amended as follows:
            (A) Section 578 is amended--
                    (i) in subsection ( j) (113 Stat. 630), by striking 
                ``Chapter 4'' and inserting ``Chapter 7''; and
                    (ii) in subsection (k)(4) (113 Stat. 631), by 
                striking ``chapter 4'' and inserting ``chapter 7''.
            (B) Section 586(c)(2) (113 Stat. 639) is amended by striking 
        ``relating to section 434'' and inserting ``added by section 
        578(k)(4)''.
            (C) Section 601(c) (113 Stat. 645; 37 U.S.C. 1009 note) is 
        amended--
                    (i) in the first table, relating to commissioned 
                officers, by striking ``$12,441.00'' in footnote 2 and 
                inserting ``$12,488.70''; and
                    (ii) in the fourth table, relating to enlisted 
                members, by striking ``$4,701.00'' in footnote 2 and 
                inserting ``$4,719.00''.
            (D) Section 657(a)(1)(A) (113 Stat. 668; 10 U.S.C. 1450 
        note) is amended by striking ``August 21, 1983'' and inserting 
        ``August 19, 1983''.

    (2) In the case of any former spouse to whom paragraph (3) of 
section 1450(f ) of title 10, United States Code, applies by reason of 
the amendment made by paragraph (1)(D), the provisions of subsection (b) 
of section 657 of the National Defense Authorization Act for Fiscal Year 
2000 shall be applied by using the date of the enactment of this Act, 
rather than the date of the enactment of that Act.
    (d) Public Law 105-261.--Effective as of October 17, 1998, and as if 
included therein as enacted, the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
1920 et seq.) is amended as follows:
            (1) Section 142 (112 Stat. 1943; 50 U.S.C. 1521 note) is 
        amended--
                    (A) in subsection (e), by striking ``1521(f ))'' and 
                inserting ``1521 note)''; and
                    (B) by redesignating the second subsection (f ) as 
                subsection (g).
            (2) Section 503(b)(1) (112 Stat. 2003) is amended by 
        inserting ``its'' after ``record of'' in the first quoted matter 
        therein.

[[Page 114 STAT. 1654A-293]]

            (3) Section 645(b) (112 Stat. 2050) is amended by striking 
        ``a member'' and inserting ``member'' in the quoted matter 
        therein.
            (4) Section 701 (112 Stat. 2056) is amended--
                    (A) in subsection (a), by inserting ``(1)'' before 
                ``Section 1076a(b)(2)''; and
                    (B) in subsection (b), by inserting ``of such 
                title'' after ``1076a''.
            (5) Section 802(b) (112 Stat. 2081) is amended by striking 
        ``Administrative'' in the first quoted matter therein and 
        inserting ``Administration''.
            (6) Section 1101(e)(2)(C) (112 Stat. 2140; 5 U.S.C. 3104 
        note) is amended by striking ``subsection (c)(1)'' and inserting 
        ``subsection (c)(2)''.
            (7) Section 1405(k)(2) (112 Stat. 2170; 50 U.S.C. 2301 note) 
        is amended by striking ``subchapter'' and inserting ``chapter''.

    (e) Public Law 105-85.--The National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) is amended as follows:
            (1) Section 602(d)(1)(A) (111 Stat. 1773; 37 U.S.C. 402 
        note) is amended by striking ``of'' the first place it appears 
        in the matter preceding clause (i).
            (2) Section 1221(a)(3) (22 U.S.C. 1928 note), as amended by 
        section 1233(a)(2)(A) of Public Law 105-261 (112 Stat. 2156), is 
        amended by striking the second close parenthesis after ``relief 
        efforts''.

    (f ) Title 5, United States Code.--Title 5, United States Code, is 
amended as follows:
            (1) Section 3329 is amended--
                    (A) in subsection (a), by striking ``such term'' and 
                inserting ``the term `military technician (dual status)' 
                ''; and
                    (B) in subsection (b), by striking ``section 1332 of 
                title 10'' and inserting ``section 12732 of title 10''.
            (2) Section 5531 is amended by striking ``sections 5532 
        and'' in the matter preceding paragraph (1) and inserting 
        ``section''.
            (3) Section 8116(a)(4) is amended by striking ``, subject 
        to'' and all that follows through ``United States Code''.
            (4) Section 8339(g) is amended by striking ``the application 
        of the limitation in section 5532 of this title, or'' in the 
        third sentence.
            (5) Section 8344(h)(1) is amended by inserting ``(as in 
        effect before the repeal of that section by section 651(a) of 
        Public Law 106-65)'' after ``section 5532(f )(2) of this 
        title''.

    (g) Other Laws.--
            (1) Section 834(e) of the National Defense Authorization Act 
        for Fiscal Years 1990 and 1991 (15 U.S.C. 637 note) is amended 
        by striking the second period after ``2005''.
            (2) Section 2905(b)(4) 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 by transferring 
        subparagraph (G) so as to appear immediately before subparagraph 
        (H), as added by section 2821(a) of the National Defense 
        Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
        Stat. 853).
            (3) Section 686(b) of title 14, United States Code, is 
        amended--

[[Page 114 STAT. 1654A-294]]

                    (A) in paragraph (1), by striking ``section 403(b)'' 
                and inserting ``section 403(e)''; and
                    (B) in paragraph (2), by striking ``a basic 
                allowance for quarters under section 403 of title 37, 
                and, if in a high housing cost area, a variable housing 
                allowance under section 403a of that title'' and 
                inserting ``a basic allowance for housing under section 
                403 of title 37''.
            (4) Chapter 701 of title 36, United States Code, relating to 
        the Federal charter of the Fleet Reserve Association, is amended 
        in sections 70102(a) and 70108(a) by striking ``Delaware'' and 
        inserting ``Pennsylvania''.
            (5) Section 7426 of title 38, United States Code, is amended 
        by striking subsection (c).
            (6) The item relating to chapter 112 in the table of 
        chapters at the beginning of subtitle II of title 46, United 
        States Code, is amended by revising the second and third words 
        so that the initial letter of each of those words is lower case.
            (7) Section 405(f )(6)(B) of the Departments of Labor, 
        Health and Human Services, and Education, and Related Agencies 
        Appropriations Act, 1999 (as contained in section 101(f ) of 
        division A of Public Law 105-277; 112 Stat. 2681-430), is 
        amended by striking ``Act of title'' in the first quoted matter 
        therein and inserting ``Act or title''.
            (8) Section 1403(c)(6) of the Defense Dependents' Education 
        Act of 1978 (20 U.S.C. 922(c)(6)) is amended by striking ``the'' 
        before ``Assistant Secretary of Defense''.
            (9) Effective as of October 5, 1999, section 224 b. of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2274(b)) is amended by 
        striking ``$500,000'' and inserting ``$50,000''.

    (h) Coordination With Other Amendments.--For purposes of applying 
amendments made by provisions of this Act other than provisions of this 
section, this section shall be treated as having been enacted 
immediately before the other provisions of this Act.

SEC. 1088. MAXIMUM SIZE OF PARCEL POST PACKAGES TRANSPORTED OVERSEAS FOR 
            ARMED FORCES POST OFFICES.

    Section 3401(b) of title 39, United States Code, is amended by 
striking ``100 inches in length and girth combined'' in paragraphs (2) 
and (3) and inserting ``the maximum size allowed by the Postal Service 
for fourth class parcel post (known as `Standard Mail (B)')''.

SEC. 1089. SENSE OF CONGRESS REGARDING TAX TREATMENT OF MEMBERS 
            RECEIVING SPECIAL PAY FOR DUTY SUBJECT TO HOSTILE FIRE OR 
            IMMINENT DANGER.

    It is the sense of Congress that members of the Armed Forces who 
receive special pay under section 310 of title 37, United States Code, 
for duty subject to hostile fire or imminent danger should receive the 
same treatment under Federal income tax laws as members serving in 
combat zones.

SEC. 1090. ORGANIZATION AND MANAGEMENT OF CIVIL AIR PATROL.

    (a) In General.--Chapter 909 of title 10, United States Code, is 
amended to read as follows:

                     ``CHAPTER 909--CIVIL AIR PATROL

``Sec.
``9441. Status as federally chartered corporation; purposes.

[[Page 114 STAT. 1654A-295]]

``9442. Status as volunteer civilian auxiliary of the Air Force.
``9443. Activities performed as federally chartered nonprofit 
           corporation.
``9444. Activities performed as auxiliary of the Air Force.
``9445. Funds appropriated for the Civil Air Patrol.
``9446. Miscellaneous personnel authorities.
``9447. Board of Governors.
``9448. Regulations.

``Sec. 9441. Status as federally chartered corporation; purposes

    ``(a) Status.--(1) The Civil Air Patrol is a nonprofit corporation 
that is federally chartered under section 40301 of title 36.
    ``(2) Except as provided in section 9442(b)(2) of this title, the 
Civil Air Patrol is not an instrumentality of the Federal Government for 
any purpose.
    ``(b) Purposes.--The purposes of the Civil Air Patrol are set forth 
in section 40302 of title 36.

``Sec. 9442. Status as volunteer civilian auxiliary of the Air Force

    ``(a) Volunteer Civilian Auxiliary.--The Civil Air Patrol is a 
volunteer civilian auxiliary of the Air Force when the services of the 
Civil Air Patrol are used by any department or agency in any branch of 
the Federal Government.
    ``(b) Use by Air Force.--(1) The Secretary of the Air Force may use 
the services of the Civil Air Patrol to fulfill the noncombat programs 
and missions of the Department of the Air Force.
    ``(2) The Civil Air Patrol shall be deemed to be an instrumentality 
of the United States with respect to any act or omission of the Civil 
Air Patrol, including any member of the Civil Air Patrol, in carrying 
out a mission assigned by the Secretary of the Air Force.

``Sec. 9443. Activities performed as federally chartered nonprofit 
                        corporation

    ``(a) Use of Federally Provided Resources.--In its status as a 
federally chartered nonprofit corporation, the Civil Air Patrol may use 
equipment, supplies, and other resources, including aircraft, motor 
vehicles, computers, and communications equipment, provided to the Civil 
Air Patrol by a department or agency of the Federal Government or 
acquired by or for the Civil Air Patrol with appropriated funds (or with 
funds of the Civil Air Patrol, but reimbursed from appropriated funds)--
            ``(1) to provide assistance requested by State or local 
        governmental authorities to perform disaster relief missions and 
        activities, other emergency missions and activities, and 
        nonemergency missions and activities; and
            ``(2) to fulfill its other purposes set forth in section 
        40302 of title 36.

    ``(b) Use Subject to Applicable Laws.--The use of equipment, 
supplies, or other resources under subsection (a) is subject to the laws 
and regulations that govern the use by nonprofit corporations of 
federally provided assets or of assets purchased with appropriated 
funds, as the case may be.
    ``(c) Authority Not Contingent on Reimbursement.--The authority for 
the Civil Air Patrol to provide assistance under subsection (a)(1) is 
not contingent on the Civil Air Patrol being reimbursed for the cost of 
providing the assistance. If the Civil Air Patrol elects to require 
reimbursement for the provision of assistance under such subsection, the 
Civil Air Patrol may establish

[[Page 114 STAT. 1654A-296]]

the reimbursement rate at a rate less than the rates charged by private 
sector sources for equivalent services.
    ``(d) Liability Insurance.--The Secretary of the Air Force may 
provide the Civil Air Patrol with funds for paying the cost of liability 
insurance to cover missions and activities carried out under this 
section.

``Sec. 9444. Activities performed as auxiliary of the Air Force

    ``(a) Air Force Support for Activities.--The Secretary of the Air 
Force may furnish to the Civil Air Patrol in accordance with this 
section any equipment, supplies, and other resources that the Secretary 
determines necessary to enable the Civil Air Patrol to fulfill the 
missions assigned by the Secretary to the Civil Air Patrol as an 
auxiliary of the Air Force.
    ``(b) Forms of Air Force Support.--The Secretary of the Air Force 
may, under subsection (a)--
            ``(1) give, lend, or sell to the Civil Air Patrol without 
        regard to the Federal Property and Administrative Services Act 
        of 1949 (40 U.S.C. 471 et seq.)--
                    ``(A) major items of equipment (including aircraft, 
                motor vehicles, computers, and communications equipment) 
                that are excess to the military departments; and
                    ``(B) necessary related supplies and training aids 
                that are excess to the military departments;
            ``(2) permit the use, with or without charge, of services 
        and facilities of the Air Force;
            ``(3) furnish supplies (including fuel, lubricants, and 
        other items required for vehicle and aircraft operations) or 
        provide funds for the acquisition of supplies;
            ``(4) establish, maintain, and supply liaison officers of 
        the Air Force at the national, regional, State, and territorial 
        headquarters of the Civil Air Patrol;
            ``(5) detail or assign any member of the Air Force or any 
        officer, employee, or contractor of the Department of the Air 
        Force to any liaison office at the national, regional, State, or 
        territorial headquarters of the Civil Air Patrol;
            ``(6) detail any member of the Air Force or any officer, 
        employee, or contractor of the Department of the Air Force to 
        any unit or installation of the Civil Air Patrol to assist in 
        the training programs of the Civil Air Patrol;
            ``(7) authorize the payment of travel expenses and 
        allowances, at rates not to exceed those paid to employees of 
        the United States under subchapter I of chapter 57 of title 5, 
        to members of the Civil Air Patrol while the members are 
        carrying out programs or missions specifically assigned by the 
        Air Force;
            ``(8) provide funds for the national headquarters of the 
        Civil Air Patrol, including--
                    ``(A) funds for the payment of staff compensation 
                and benefits, administrative expenses, travel, per diem 
                and allowances, rent, utilities, other operational 
                expenses of the national headquarters; and
                    ``(B) to the extent considered necessary by the 
                Secretary of the Air Force to fulfill Air Force 
                requirements, funds for the payment of compensation and 
                benefits for key staff at regional, State, or 
                territorial headquarters;

[[Page 114 STAT. 1654A-297]]

            ``(9) authorize the payment of expenses of placing into 
        serviceable condition, improving, and maintaining equipment 
        (including aircraft, motor vehicles, computers, and 
        communications equipment) owned or leased by the Civil Air 
        Patrol;
            ``(10) provide funds for the lease or purchase of items of 
        equipment that the Secretary determines necessary for the Civil 
        Air Patrol;
            ``(11) support the Civil Air Patrol cadet program by 
        furnishing--
                    ``(A) articles of the Air Force uniform to cadets 
                without cost; and
                    ``(B) any other support that the Secretary of the 
                Air Force determines is consistent with Air Force 
                missions and objectives; and
            ``(12) provide support, including appropriated funds, for 
        the Civil Air Patrol aerospace education program to the extent 
        that the Secretary of the Air Force determines appropriate for 
        furthering the fulfillment of Air Force missions and objectives.

    ``(c) Assistance by Other Agencies.--(1) The Secretary of the Air 
Force may arrange for the use by the Civil Air Patrol of such facilities 
and services under the jurisdiction of the Secretary of the Army, the 
Secretary of the Navy, or the head of any other department or agency of 
the United States as the Secretary of the Air Force considers to be 
needed by the Civil Air Patrol to carry out its mission.
    ``(2) An arrangement for use of facilities or services of a military 
department or other department or agency under this subsection shall be 
subject to the agreement of the Secretary of the military department or 
head of the other department or agency, as the case may be.
    ``(3) Each arrangement under this subsection shall be made in 
accordance with regulations prescribed under section 9448 of this title.

``Sec. 9445. Funds appropriated for the Civil Air Patrol

    ``Funds appropriated for the Civil Air Patrol shall be available 
only for the exclusive use of the Civil Air Patrol.

``Sec. 9446. Miscellaneous personnel authorities

    ``(a) Use of Retired Air Force Personnel.--(1) Upon the request of a 
person retired from service in the Air Force, the Secretary of the Air 
Force may enter into a personal services contract with that person 
providing for the person to serve as an administrator or liaison officer 
for the Civil Air Patrol. The qualifications of a person to provide the 
services shall be determined and approved in accordance with regulations 
prescribed under section 9448 of this title.
    ``(2) To the extent provided in a contract under paragraph (1), a 
person providing services under the contract may accept services on 
behalf of the Air Force.
    ``(3) A person, while providing services under a contract authorized 
under paragraph (1), may not be considered to be on active duty or 
inactive-duty training for any purpose.
    ``(b) Use of Civil Air Patrol Chaplains.--The Secretary of the Air 
Force may use the services of Civil Air Patrol chaplains in support of 
the Air Force active duty and reserve component

[[Page 114 STAT. 1654A-298]]

forces to the extent and under conditions that the Secretary determines 
appropriate.

``Sec. 9447. Board of Governors

    ``(a) Governing Body.--The Board of Governors of the Civil Air 
Patrol is the governing body of the Civil Air Patrol.
    ``(b) Composition.--The Board of Governors is composed of 11 members 
as follows:
            ``(1) Four members appointed by the Secretary of the Air 
        Force, who may be active or retired officers of the Air Force 
        (including reserve components of the Air Force), employees of 
        the United States, or private citizens.
            ``(2) Four members of the Civil Air Patrol, selected in 
        accordance with the constitution and bylaws of the Civil Air 
        Patrol.
            ``(3) Three members appointed or selected as provided in 
        subsection (c) from among personnel of any Federal Government 
        agencies, public corporations, nonprofit associations, and other 
        organizations that have an interest and expertise in civil 
        aviation and the Civil Air Patrol mission.

    ``(c) Appointments From Interested Organizations.--(1) Subject to 
paragraph (2), the members of the Board of Governors referred to in 
subsection (b)(3) shall be appointed jointly by the Secretary of the Air 
Force and the National Commander of the Civil Air Patrol.
    ``(2) Any vacancy in the position of a member referred to in 
paragraph (1) that is not filled under that paragraph within 90 days 
shall be filled by majority vote of the other members of the Board.
    ``(d) Chairman.--The Chairman of the Board of Governors shall be 
chosen by the members of the Board of Governors from among the members 
of the Board referred to in paragraphs (1) and (2) of subsection (b) and 
shall serve for a term of two years. The position of Chairman shall be 
held on a rotating basis between members of the Board appointed by the 
Secretary of the Air Force under paragraph (1) of subsection (b) and 
members of the Board selected under paragraph (2) of that subsection.
    ``(e) Powers.--(1) The Board of Governors shall, subject to 
paragraphs (2) and (3), exercise the powers granted to the Civil Air 
Patrol under section 40304 of title 36.
    ``(2) Any exercise by the Board of the power to amend the 
constitution or bylaws of the Civil Air Patrol or to adopt a new 
constitution or bylaws shall be subject to approval by a majority of the 
members of the Board.
    ``(3) Neither the Board of Governors nor any other component of the 
Civil Air Patrol may modify or terminate any requirement or authority 
set forth in this section.
    ``(f ) Personal Liability for Breach of a Fiduciary Duty.--(1) 
Subject to paragraph (2), the Board of Governors may take such action as 
is necessary to limit the personal liability of a member of the Board of 
Governors to the Civil Air Patrol, or to any of its members, for 
monetary damages for a breach of fiduciary duty while serving as a 
member of the Board.
    ``(2) The Board may not limit the liability of a member of the Board 
of Governors to the Civil Air Patrol, or to any of its members, for 
monetary damages for any of the following:

[[Page 114 STAT. 1654A-299]]

            ``(A) A breach of the member's duty of loyalty to the Civil 
        Air Patrol or its members.
            ``(B) Any act or omission that is not in good faith or that 
        involves intentional misconduct or a knowing violation of law.
            ``(C) Participation in any transaction from which the member 
        directly or indirectly derives an improper personal benefit.

    ``(3) Nothing in this subsection shall be construed as rendering 
section 207 or 208 of title 18 inapplicable in any respect to a member 
of the Board of Governors who is a member of the Air Force on active 
duty, an officer on a retired list of the Air Force, or an employee of 
the United States.
    ``(g) Personal Liability for Breach of a Fiduciary Duty.--(1) Except 
as provided in paragraph (2), no member of the Board of Governors or 
officer of the Civil Air Patrol shall be personally liable for damages 
for any injury or death or loss or damage of property resulting from a 
tortious act or omission of an employee or member of the Civil Air 
Patrol.
    ``(2) Paragraph (1) does not apply to a member of the Board of 
Governors or officer of the Civil Air Patrol for a tortious act or 
omission in which the member or officer, as the case may be, was 
personally involved, whether in breach of a civil duty or in commission 
of a criminal offense.
    ``(3) Nothing in this subsection shall be construed to restrict the 
applicability of common law protections and rights that a member of the 
Board of Governors or officer of the Civil Air Patrol may have.
    ``(4) The protections provided under this subsection are in addition 
to the protections provided under subsection (f ).

``Sec. 9448. Regulations

    ``(a) Authority.--The Secretary of the Air Force shall prescribe 
regulations for the administration of this chapter.
    ``(b) Required Regulations.--The regulations shall include the 
following:
            ``(1) Regulations governing the conduct of the activities of 
        the Civil Air Patrol when it is performing its duties as a 
        volunteer civilian auxiliary of the Air Force under section 9442 
        of this title.
            ``(2) Regulations for providing support by the Air Force and 
        for arranging assistance by other agencies under section 9444 of 
        this title.
            ``(3) Regulations governing the qualifications of retired 
        Air Force personnel to serve as an administrator or liaison 
        officer for the Civil Air Patrol under a personal services 
        contract entered into under section 9446(a) of this title.

    ``(c) Approval by Secretary of Defense.--The regulations required by 
subsection (b)(2) shall be subject to the approval of the Secretary of 
Defense.''.
    (b) Conforming Amendments.--(1) Section 40302 of title 36, United 
States Code, is amended--
            (A) by striking ``to--'' in the matter preceding paragraph 
        (1) and inserting ``as follows:'';
            (B) by inserting ``To'' after the paragraph designation in 
        each of paragraphs (1), (2), (3), and (4);
            (C) by striking the semicolon at the end of paragraphs 
        (1)(B) and (2) and inserting a period;

[[Page 114 STAT. 1654A-300]]

            (D) by striking ``; and'' at the end of paragraph (3) and 
        inserting a period; and
            (E) by adding at the end the following:
            ``(5) To assist the Department of the Air Force in 
        fulfilling its noncombat programs and missions.''.

    (2)(A) Section 40303 of such title is amended--
            (i) by inserting ``(a) Membership.--'' before 
        ``Eligibility''; and
            (ii) by adding at the end the following:

    ``(b) Governing Body.--The Civil Air Patrol has a Board of 
Governors. The composition and responsibilities of the Board of 
Governors are set forth in section 9447 of title 10.''.
    (B) The heading for such section is amended to read as follows:

``Sec. 40303. Membership and governing body''.

    (C) The item relating to such section in the table of sections at 
the beginning of chapter 403 of title 36, United States Code, is amended 
to read as follows:

``40303. Membership and governing body.''.

    (c) Effective Date.--The amendments made by this section shall take 
effect 120 days after the date of the enactment of this Act.

SEC. 1091. ADDITIONAL DUTIES FOR COMMISSION TO ASSESS UNITED STATES 
            NATIONAL SECURITY SPACE MANAGEMENT AND ORGANIZATION.

    Section 1622(a) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 814; 10 U.S.C. 111 note) is 
amended by adding at the end the following new paragraph:
            ``(6) The advisability of--
                    ``(A) various actions to eliminate the de facto 
                requirement that specified officers in the United States 
                Space Command be flight rated that results from the dual 
                assignment of officers to that command and to one or 
                more other commands in positions in which such officers 
                are expressly required to be flight rated;
                    ``(B) the establishment of a requirement that, as a 
                condition of the assignment of a general or flag officer 
                to the United States Space Command, the officer have 
                experience in space, missile, or information operations 
                that was gained through either acquisition or 
                operational experience; and
                    ``(C) rotating the command of the United States 
                Space Command among the Armed Forces.''.

SEC. 1092. COMMISSION ON THE FUTURE OF THE UNITED STATES AEROSPACE 
            INDUSTRY.

    (a) Establishment.--There is established a commission to be known as 
the ``Commission on the Future of the United States Aerospace Industry'' 
(in this section referred to as the ``Commission'').
    (b) Membership.--(1) The Commission shall be composed of 12 members 
appointed, not later than March 1, 2001, as follows:
            (A) Up to six members shall be appointed by the President.
            (B) Two members shall be appointed by the Speaker of the 
        House of Representatives.

[[Page 114 STAT. 1654A-301]]

            (C) Two members shall be appointed by the majority leader of 
        the Senate.
            (D) One member shall be appointed by the minority leader of 
        the Senate.
            (E) One member shall be appointed by the minority leader of 
        the House of Representatives.

    (2) The members of the Commission shall be appointed from among 
persons with extensive experience and national reputations in aerospace 
manufacturing, economics, finance, national security, international 
trade, or foreign policy and persons who are representative of labor 
organizations associated with the aerospace industry.
    (3) Members shall be appointed for the life of the Commission. A 
vacancy in the Commission shall not affect its powers, but shall be 
filled in the same manner as the original appointment.
    (4) The President shall designate one member of the Commission to 
serve as the chairman of the Commission.
    (5) The Commission shall meet at the call of the chairman. A 
majority of the members shall constitute a quorum, but a lesser number 
may hold hearings.
    (c) Duties.--(1) The Commission shall--
            (A) study the issues associated with the future of the 
        United States aerospace industry in the global economy, 
        particularly in relationship to United States national security; 
        and
            (B) assess the future importance of the domestic aerospace 
        industry for the economic and national security of the United 
        States.

    (2) In order to fulfill its responsibilities, the Commission shall 
study the following:
            (A) The budget process of the United States Government, 
        particularly with a view to assessing the adequacy of projected 
        budgets of the Federal departments and agencies for aerospace 
        research and development and procurement.
            (B) The acquisition process of the Government, particularly 
        with a view to assessing--
                    (i) the adequacy of the current acquisition process 
                of Federal departments and agencies; and
                    (ii) the procedures for developing and fielding 
                aerospace systems incorporating new technologies in a 
                timely fashion.
            (C) The policies, procedures, and methods for the financing 
        and payment of Government contracts.
            (D) Statutes and regulations governing international trade 
        and the export of technology, particularly with a view to 
        assessing--
                    (i) the extent to which the current system for 
                controlling the export of aerospace goods, services, and 
                technologies reflects an adequate balance between the 
                need to protect national security and the need to ensure 
                unhindered access to the global marketplace; and
                    (ii) the adequacy of United States and multilateral 
                trade laws and policies for maintaining the 
                international competitiveness of the United States 
                aerospace industry.
            (E) Policies governing taxation, particularly with a view to 
        assessing the impact of current tax laws and practices on the 
        international competitiveness of the aerospace industry.
            (F) Programs for the maintenance of the national space 
        launch infrastructure, particularly with a view to assessing

[[Page 114 STAT. 1654A-302]]

        the adequacy of current and projected programs for maintaining 
        the national space launch infrastructure.
            (G) Programs for the support of science and engineering 
        education, including current programs for supporting aerospace 
        science and engineering efforts at institutions of higher 
        learning, with a view to determining the adequacy of those 
        programs.

    (d) Report.--(1) Not later than March 1, 2002, the Commission shall 
submit a report on its activities to the President and Congress.
    (2) The report shall include the following:
            (A) The Commission's findings and conclusions.
            (B) The Commission's recommendations for actions by Federal 
        departments and agencies to support the maintenance of a robust 
        aerospace industry in the United States in the 21st century and 
        any recommendations for statutory and regulatory changes to 
        support the implementation of the Commission's findings.
            (C) A discussion of the appropriate means for implementing 
        the Commission's recommendations.

    (e) Administrative Requirements and Authorities.--(1) The Director 
of the Office of Management and Budget shall ensure that the Commission 
is provided such administrative services, facilities, staff, and other 
support services as may be necessary. Any expenses of the Commission 
shall be paid from funds available to the Director.
    (2) The Commission may hold hearings, sit and act at times and 
places, take testimony, and receive evidence that the Commission 
considers advisable to carry out the purposes of this section.
    (3) The Commission may request directly from any department or 
agency of the United States any information that the Commission 
considers necessary to carry out the provisions of this section. To the 
extent consistent with applicable requirements of law and regulations, 
the head of such department or agency shall furnish such information to 
the Commission.
    (4) The Commission may use the United States mails in the same 
manner and under the same conditions as other departments and agencies 
of the United States.
    (f ) Commission Personnel Matters.--(1) Members of the Commission 
shall serve without additional compensation for their service on the 
Commission, except that members appointed from among private citizens 
may be allowed travel expenses, including per diem in lieu of 
subsistence, as authorized by law for persons serving intermittently in 
Government service under subchapter I of chapter 57 of title 5, United 
States Code, while away from their homes and places of business in the 
performance of services for the Commission.
    (2) The chairman of the Commission may appoint staff of the 
Commission, request the detail of Federal employees, and accept 
temporary and intermittent services in accordance with section 3161 of 
title 5, United States Code (as added by section 1101 of this Act).
    (g) Termination.--The Commission shall terminate 30 days after the 
date of the submission of its report under subsection (d).

SEC. 1093. DRUG ADDICTION TREATMENT.

    (a) In General.--Section 303(g) of the Controlled Substances Act (21 
U.S.C. 823(g)) is amended--

[[Page 114 STAT. 1654A-303]]

            (1) in paragraph (2), by striking ``(A) security'' and 
        inserting ``(i) security'', and by striking ``(B) the 
        maintenance'' and inserting ``(ii) the maintenance'';
            (2) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively;
            (3) by inserting ``(1)'' after ``(g)'';
            (4) by striking ``Practitioners who dispense'' and inserting 
        ``Except as provided in paragraph (2), practitioners who 
        dispense''; and
            (5) by adding at the end the following paragraph:

    ``(2)(A) Subject to subparagraphs (D) and (J), the requirements of 
paragraph (1) are waived in the case of the dispensing (including the 
prescribing), by a practitioner, of narcotic drugs in schedule III, IV, 
or V or combinations of such drugs if the practitioner meets the 
conditions specified in subparagraph (B) and the narcotic drugs or 
combinations of such drugs meet the conditions specified in subparagraph 
(C).
    ``(B) For purposes of subparagraph (A), the conditions specified in 
this subparagraph with respect to a practitioner are that, before the 
initial dispensing of narcotic drugs in schedule III, IV, or V or 
combinations of such drugs to patients for maintenance or detoxification 
treatment, the practitioner submit to the Secretary a notification of 
the intent of the practitioner to begin dispensing the drugs or 
combinations for such purpose, and that the notification contain the 
following certifications by the practitioner:
            ``(i) The practitioner is a qualifying physician (as defined 
        in subparagraph (G)).
            ``(ii) With respect to patients to whom the practitioner 
        will provide such drugs or combinations of drugs, the 
        practitioner has the capacity to refer the patients for 
        appropriate counseling and other appropriate ancillary services.
            ``(iii) In any case in which the practitioner is not in a 
        group practice, the total number of such patients of the 
        practitioner at any one time will not exceed the applicable 
        number. For purposes of this clause, the applicable number is 
        30, except that the Secretary may by regulation change such 
        total number.
            ``(iv) In any case in which the practitioner is in a group 
        practice, the total number of such patients of the group 
        practice at any one time will not exceed the applicable number. 
        For purposes of this clause, the applicable number is 30, except 
        that the Secretary may by regulation change such total number, 
        and the Secretary for such purposes may by regulation establish 
        different categories on the basis of the number of practitioners 
        in a group practice and establish for the various categories 
        different numerical limitations on the number of such patients 
        that the group practice may have.

    ``(C) For purposes of subparagraph (A), the conditions specified in 
this subparagraph with respect to narcotic drugs in schedule III, IV, or 
V or combinations of such drugs are as follows:
            ``(i) The drugs or combinations of drugs have, under the 
        Federal Food, Drug, and Cosmetic Act or section 351 of the 
        Public Health Service Act, been approved for use in maintenance 
        or detoxification treatment.
            ``(ii) The drugs or combinations of drugs have not been the 
        subject of an adverse determination. For purposes of this 
        clause, an adverse determination is a determination published

[[Page 114 STAT. 1654A-304]]

        in the Federal Register and made by the Secretary, after 
        consultation with the Attorney General, that the use of the 
        drugs or combinations of drugs for maintenance or detoxification 
        treatment requires additional standards respecting the 
        qualifications of practitioners to provide such treatment, or 
        requires standards respecting the quantities of the drugs that 
        may be provided for unsupervised use.

    ``(D)(i) A waiver under subparagraph (A) with respect to a 
practitioner is not in effect unless (in addition to conditions under 
subparagraphs (B) and (C)) the following conditions are met:
            ``(I) The notification under subparagraph (B) is in writing 
        and states the name of the practitioner.
            ``(II) The notification identifies the registration issued 
        for the practitioner pursuant to subsection (f ).
            ``(III) If the practitioner is a member of a group practice, 
        the notification states the names of the other practitioners in 
        the practice and identifies the registrations issued for the 
        other practitioners pursuant to subsection (f ).

    ``(ii) Upon receiving a notification under subparagraph (B), the 
Attorney General shall assign the practitioner involved an 
identification number under this paragraph for inclusion with the 
registration issued for the practitioner pursuant to subsection (f ). 
The identification number so assigned shall be appropriate to preserve 
the confidentiality of patients for whom the practitioner has dispensed 
narcotic drugs under a waiver under subparagraph (A).
    ``(iii) Not later than 45 days after the date on which the Secretary 
receives a notification under subparagraph (B), the Secretary shall make 
a determination of whether the practitioner involved meets all 
requirements for a waiver under subparagraph (B). If the Secretary fails 
to make such determination by the end of such 45-day period, the 
Attorney General shall assign the physician an identification number 
described in clause (ii) at the end of such period.
    ``(E)(i) If a practitioner is not registered under paragraph (1) 
and, in violation of the conditions specified in subparagraphs (B) 
through (D), dispenses narcotic drugs in schedule III, IV, or V or 
combinations of such drugs for maintenance treatment or detoxification 
treatment, the Attorney General may, for purposes of section 304(a)(4), 
consider the practitioner to have committed an act that renders the 
registration of the practitioner pursuant to subsection (f ) to be 
inconsistent with the public interest.
    ``(ii)(I) Upon the expiration of 45 days from the date on which the 
Secretary receives a notification under subparagraph (B), a practitioner 
who in good faith submits a notification under subparagraph (B) and 
reasonably believes that the conditions specified in subparagraphs (B) 
through (D) have been met shall, in dispensing narcotic drugs in 
schedule III, IV, or V or combinations of such drugs for maintenance 
treatment or detoxification treatment, be considered to have a waiver 
under subparagraph (A) until notified otherwise by the Secretary, except 
that such a practitioner may commence to prescribe or dispense such 
narcotic drugs for such purposes prior to the expiration of such 45-day 
period if it facilitates the treatment of an individual patient and both 
the Secretary and the Attorney General are notified by the practitioner 
of the intent to commence prescribing or dispensing such narcotic drugs.
    ``(II) For purposes of subclause (I), the publication in the Federal 
Register of an adverse determination by the Secretary pursuant

[[Page 114 STAT. 1654A-305]]

to subparagraph (C)(ii) shall (with respect to the narcotic drug or 
combination involved) be considered to be a notification provided by the 
Secretary to practitioners, effective upon the expiration of the 30-day 
period beginning on the date on which the adverse determination is so 
published.
    ``(F)(i) With respect to the dispensing of narcotic drugs in 
schedule III, IV, or V or combinations of such drugs to patients for 
maintenance or detoxification treatment, a practitioner may, in his or 
her discretion, dispense such drugs or combinations for such treatment 
under a registration under paragraph (1) or a waiver under subparagraph 
(A) (subject to meeting the applicable conditions).
    ``(ii) This paragraph may not be construed as having any legal 
effect on the conditions for obtaining a registration under paragraph 
(1), including with respect to the number of patients who may be served 
under such a registration.
    ``(G) For purposes of this paragraph:
            ``(i) The term `group practice' has the meaning given such 
        term in section 1877(h)(4) of the Social Security Act.
            ``(ii) The term `qualifying physician' means a physician who 
        is licensed under State law and who meets one or more of the 
        following conditions:
                    ``(I) The physician holds a subspecialty board 
                certification in addiction psychiatry from the American 
                Board of Medical Specialties.
                    ``(II) The physician holds an addiction 
                certification from the American Society of Addiction 
                Medicine.
                    ``(III) The physician holds a subspecialty board 
                certification in addiction medicine from the American 
                Osteopathic Association.
                    ``(IV) The physician has, with respect to the 
                treatment and management of opiate-dependent patients, 
                completed not less than eight hours of training (through 
                classroom situations, seminars at professional society 
                meetings, electronic communications, or otherwise) that 
                is provided by the American Society of Addiction 
                Medicine, the American Academy of Addiction Psychiatry, 
                the American Medical Association, the American 
                Osteopathic Association, the American Psychiatric 
                Association, or any other organization that the 
                Secretary determines is appropriate for purposes of this 
                subclause.
                    ``(V) The physician has participated as an 
                investigator in one or more clinical trials leading to 
                the approval of a narcotic drug in schedule III, IV, or 
                V for maintenance or detoxification treatment, as 
                demonstrated by a statement submitted to the Secretary 
                by the sponsor of such approved drug.
                    ``(VI) The physician has such other training or 
                experience as the State medical licensing board (of the 
                State in which the physician will provide maintenance or 
                detoxification treatment) considers to demonstrate the 
                ability of the physician to treat and manage opiate-
                dependent patients.
                    ``(VII) The physician has such other training or 
                experience as the Secretary considers to demonstrate the 
                ability of the physician to treat and manage opiate-
                dependent patients. Any criteria of the Secretary under 
                this subclause

[[Page 114 STAT. 1654A-306]]

                shall be established by regulation. Any such criteria 
                are effective only for 3 years after the date on which 
                the criteria are promulgated, but may be extended for 
                such additional discrete 3-year periods as the Secretary 
                considers appropriate for purposes of this subclause. 
                Such an extension of criteria may only be effectuated 
                through a statement published in the Federal Register by 
                the Secretary during the 30-day period preceding the end 
                of the 3-year period involved.

    ``(H)(i) In consultation with the Administrator of the Drug 
Enforcement Administration, the Administrator of the Substance Abuse and 
Mental Health Services Administration, the Director of the National 
Institute on Drug Abuse, and the Commissioner of Food and Drugs, the 
Secretary shall issue regulations (through notice and comment 
rulemaking) or issue practice guidelines to address the following:
            ``(I) Approval of additional credentialing bodies and the 
        responsibilities of additional credentialing bodies.
            ``(II) Additional exemptions from the requirements of this 
        paragraph and any regulations under this paragraph.

Nothing in such regulations or practice guidelines may authorize any 
Federal official or employee to exercise supervision or control over the 
practice of medicine or the manner in which medical services are 
provided.
    ``(ii) Not later than 120 days after the date of the enactment of 
the Floyd D. Spence National Defense Authorization Act for Fiscal Year 
2001, the Secretary shall issue a treatment improvement protocol 
containing best practice guidelines for the treatment and maintenance of 
opiate-dependent patients. The Secretary shall develop the protocol in 
consultation with the Director of the National Institute on Drug Abuse, 
the Administrator of the Drug Enforcement Administration, the 
Commissioner of Food and Drugs, the Administrator of the Substance Abuse 
and Mental Health Services Administration, and other substance abuse 
disorder professionals. The protocol shall be guided by science.
    ``(I) During the 3-year period beginning on the date of the 
enactment of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001, a State may not preclude a practitioner from 
dispensing or prescribing drugs in schedule III, IV, or V or 
combinations of such drugs, to patients for maintenance or 
detoxification treatment in accordance with this paragraph unless, 
before the expiration of that 3-year period, the State enacts a law 
prohibiting a practitioner from dispensing such drugs or combinations of 
drug.
    ``(J)(i) This paragraph takes effect on the date of the enactment of 
the Floyd D. Spence National Defense Authorization Act for Fiscal Year 
2001, and remains in effect thereafter except as provided in clause 
(iii) (relating to a decision by the Secretary or the Attorney General 
that this paragraph should not remain in effect).
    ``(ii) For purposes relating to clause (iii), the Secretary and the 
Attorney General may, during the 3-year period beginning on the date of 
the enactment of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001, make determinations in accordance with the 
following:
            ``(I) The Secretary may make a determination of whether 
        treatments provided under waivers under subparagraph (A)

[[Page 114 STAT. 1654A-307]]

        have been effective forms of maintenance treatment and 
        detoxification treatment in clinical settings; may make a 
        determination of whether such waivers have significantly 
        increased (relative to the beginning of such period) the 
        availability of maintenance treatment and detoxification 
        treatment; and may make a determination of whether such waivers 
        have adverse consequences for the public health.
            ``(II) The Attorney General may make a determination of the 
        extent to which there have been violations of the numerical 
        limitations established under subparagraph (B) for the number of 
        individuals to whom a practitioner may provide treatment; may 
        make a determination of whether waivers under subparagraph (A) 
        have increased (relative to the beginning of such period) the 
        extent to which narcotic drugs in schedule III, IV, or V or 
        combinations of such drugs are being dispensed or possessed in 
        violation of this Act; and may make a determination of whether 
        such waivers have adverse consequences for the public health.

    ``(iii) If, before the expiration of the period specified in clause 
(ii), the Secretary or the Attorney General publishes in the Federal 
Register a decision, made on the basis of determinations under such 
clause, that this paragraph should not remain in effect, this paragraph 
ceases to be in effect 60 days after the date on which the decision is 
so published. The Secretary shall in making any such decision consult 
with the Attorney General, and shall in publishing the decision in the 
Federal Register include any comments received from the Attorney General 
for inclusion in the publication. The Attorney General shall in making 
any such decision consult with the Secretary, and shall in publishing 
the decision in the Federal Register include any comments received from 
the Secretary for inclusion in the publication.''.
    (b) Conforming Amendments.--Section 304 of the Controlled Substances 
Act (21 U.S.C. 824) is amended--
            (1) in subsection (a), in the matter after and below 
        paragraph (5), by striking ``section 303(g)'' each place such 
        term appears and inserting ``section 303(g)(1)''; and
            (2) in subsection (d), by striking ``section 303(g)'' and 
        inserting ``section 303(g)(1)''.

    (c) Additional Authorization of Appropriations.--For the purpose of 
assisting the Secretary of Health and Human Services with the additional 
duties established for the Secretary pursuant to the amendments made by 
this section, there are authorized to be appropriated, in addition to 
other authorizations of appropriations that are available for such 
purpose, such sums as may be necessary for each of fiscal years 2001 
through 2003.

    (d) Coordination of Provisions.--(1) If the Drug Addiction Treatment 
Act of 2000 is enacted before this Act, the provisions of this section 
shall not take effect.
    (2) If the Drug Addiction Treatment Act of 2000 is enacted after 
this Act, the amendments made by this section shall be deemed for all 
purposes to have been made by section 3502 of that Act and this section 
shall cease to be in effect as of that enactment.

[[Page 114 STAT. 1654A-308]]

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

           Subtitle A--Civilian Personnel Management Generally

Sec.1101.Employment and compensation of employees for temporary 
           organizations established by law or Executive order.
Sec.1102.Assistive technology accommodations program.
Sec.1103.Extension of authority for voluntary separations in reductions 
           in force.
Sec.1104.Electronic maintenance of performance appraisal systems.
Sec.1105.Study on civilian personnel services.

              Subtitle B--Demonstration and Pilot Programs

Sec.1111.Pilot program for reengineering the equal employment 
           opportunity complaint process.
Sec.1112.Work safety demonstration program.
Sec.1113.Extension, expansion, and revision of authority for 
           experimental personnel program for scientific and technical 
           personnel.
Sec.1114.Clarification of personnel management authority under personnel 
           demonstration project.

                   Subtitle C--Educational Assistance

Sec.1121.Restructuring the restriction on degree training.
Sec.1122.Student loan repayment programs.
Sec.1123.Extension of authority for tuition reimbursement and training 
           for civilian employees in the defense acquisition workforce.

                       Subtitle D--Other Benefits

Sec.1131.Additional special pay for foreign language proficiency 
           beneficial for United States national security interests.
Sec.1132.Approval authority for cash awards in excess of $10,000.
Sec.1133.Leave for crews of certain vessels.
Sec.1134.Life insurance for emergency essential Department of Defense 
           employees.

               Subtitle E--Intelligence Civilian Personnel

Sec.1141.Expansion of defense civilian intelligence personnel system 
           positions.
Sec.1142.Increase in number of positions authorized for the Defense 
           Intelligence Senior Executive Service.

  Subtitle F--Voluntary Separation Incentive Pay and Early Retirement 
                                Authority

Sec.1151.Extension, revision, and expansion of authorities for use of 
           voluntary separation incentive pay and voluntary early 
           retirement.
Sec.1152.Department of Defense employee voluntary early retirement 
           authority.
Sec.1153.Limitations.

           Subtitle A--Civilian Personnel Management Generally

SEC. 1101. EMPLOYMENT AND COMPENSATION OF EMPLOYEES FOR TEMPORARY 
            ORGANIZATIONS ESTABLISHED BY LAW OR EXECUTIVE ORDER.

    (a) In General.--Chapter 31 of title 5, United States Code, is 
amended by adding at the end the following new subchapter:

``SUBCHAPTER IV--TEMPORARY ORGANIZATIONS ESTABLISHED BY LAW OR EXECUTIVE 
                                  ORDER

``Sec. 3161. Employment and compensation of employees

    ``(a) Definition of Temporary Organization.--For the purposes of 
this subchapter, the term `temporary organization' means a commission, 
committee, board, or other organization that--

[[Page 114 STAT. 1654A-309]]

            ``(1) is established by law or Executive order for a 
        specific period not in excess of three years for the purpose of 
        performing a specific study or other project; and
            ``(2) is terminated upon the completion of the study or 
        project or upon the occurrence of a condition related to the 
        completion of the study or project.

    ``(b) Employment Authority.--(1) Notwithstanding the provisions of 
chapter 51 of this title, the head of a temporary organization may 
appoint persons to positions of employment in a temporary organization 
in such numbers and with such skills as are necessary for the 
performance of the functions required of a temporary organization.
    ``(2) The period of an appointment under paragraph (1) may not 
exceed three years, except that under regulations prescribed by the 
Office of Personnel Management the period of appointment may be extended 
for up to an additional two years.
    ``(3) The positions of employment in a temporary organization are in 
the excepted service of the civil service.
    ``(c) Detail Authority.--Upon the request of the head of a temporary 
organization, the head of any department or agency of the Government may 
detail, on a nonreimbursable basis, any personnel of the department or 
agency to that organization to assist in carrying out its duties.
    ``(d) Compensation.--(1) The rate of basic pay for an employee 
appointed under subsection (b) shall be established under regulations 
prescribed by the Office of Personnel Management without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of this title.
    ``(2) The rate of basic pay for the chairman, a member, an executive 
director, a staff director, or another executive level position of a 
temporary organization may not exceed the maximum rate of basic pay 
established for the Senior Executive Service under section 5382 of this 
title.
    ``(3) Except as provided in paragraph (4), the rate of basic pay for 
other positions in a temporary organization may not exceed the maximum 
rate of basic pay for grade GS-15 of the General Schedule under section 
5332 of this title.
    ``(4) The rate of basic pay for a senior staff position of a 
temporary organization may, in a case determined by the head of the 
temporary organization as exceptional, exceed the maximum rate of basic 
pay authorized under paragraph (3), but may not exceed the maximum rate 
of basic pay authorized for an executive level position under paragraph 
(2).
    ``(5) In this subsection, the term `basic pay' includes locality pay 
provided for under section 5304 of this title.
    ``(e) Travel Expenses.--An employee of a temporary organization, 
whether employed on a full-time or part-time basis, may be allowed 
travel and transportation expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies under 
subchapter I of chapter 57 of this title, while traveling away from the 
employee's regular place of business in the performance of services for 
the temporary organization.
    ``(f ) Benefits.--An employee appointed under subsection (b) shall 
be afforded the same benefits and entitlements as are provided temporary 
employees under this title.
    ``(g) Return Rights.--An employee serving under a career or career 
conditional appointment or the equivalent in an agency

[[Page 114 STAT. 1654A-310]]

who transfers to or converts to an appointment in a temporary 
organization with the consent of the head of the agency is entitled to 
be returned to the employee's former position or a position of like 
seniority, status, and pay without grade or pay retention in the agency 
if the employee--
            ``(1) is being separated from the temporary organization for 
        reasons other than misconduct, neglect of duty, or malfeasance; 
        and
            ``(2) applies for return not later than 30 days before the 
        earlier of--
                    ``(A) the date of the termination of the employment 
                in the temporary organization; or
                    ``(B) the date of the termination of the temporary 
                organization.

    ``(h) Temporary and Intermittent Services.--The head of a temporary 
organization may procure for the organization temporary and intermittent 
services under section 3109(b) of this title.
    ``(i) Acceptance of Volunteer Services.--(1) The head of a temporary 
organization may accept volunteer services appropriate to the duties of 
the organization without regard to section 1342 of title 31.
    ``(2) Donors of voluntary services accepted for a temporary 
organization under this subsection may include the following:
            ``(A) Advisors.
            ``(B) Experts.
            ``(C) Members of the commission, committee, board, or other 
        temporary organization, as the case may be.
            ``(D) A person performing services in any other capacity 
        determined appropriate by the head of the temporary 
        organization.

    ``(3) The head of the temporary organization--
            ``(A) shall ensure that each person performing voluntary 
        services accepted under this subsection is notified of the scope 
        of the voluntary services accepted;
            ``(B) shall supervise the volunteer to the same extent as 
        employees receiving compensation for similar services; and
            ``(C) shall ensure that the volunteer has appropriate 
        credentials or is otherwise qualified to perform in each 
        capacity for which the volunteer's services are accepted.

    ``(4) A person providing volunteer services accepted under this 
subsection shall be considered an employee of the Federal Government in 
the performance of those services for the purposes of the following 
provisions of law:
            ``(A) Chapter 81 of this title, relating to compensation for 
        work-related injuries.
            ``(B) Chapter 171 of title 28, relating to tort claims.
            ``(C) Chapter 11 of title 18, relating to conflicts of 
        interest.''.

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

``SUBCHAPTER IV--TEMPORARY ORGANIZATIONS ESTABLISHED BY LAW OR EXECUTIVE 
                                  ORDER

``Sec.
``3161. Employment and compensation of employees.''.

[[Page 114 STAT. 1654A-311]]

SEC. 1102. ASSISTIVE TECHNOLOGY ACCOMMODATIONS PROGRAM.

    (a) Authority To Provide Technology, Devices, and Services.--Chapter 
81 of title 10, United States Code, is amended by inserting after 
section 1581 the following new section:

``Sec. 1582. Assistive technology, assistive technology devices, and 
                        assistive technology services

    ``(a) Authority.--The Secretary of Defense may provide assistive 
technology, assistive technology devices, and assistive technology 
services to the following:
            ``(1) Department of Defense employees with disabilities.
            ``(2) Organizations within the Department that have 
        requirements to make programs or facilities accessible to, and 
        usable by, persons with disabilities.
            ``(3) Any other department or agency of the Federal 
        Government, upon the request of the head of that department or 
        agency, for its employees with disabilities or for satisfying a 
        requirement to make its programs or facilities accessible to, 
        and usable by, persons with disabilities.

    ``(b) Definitions.--In this section, the terms `assistive 
technology', `assistive technology device', `assistive technology 
service', and `disability' have the meanings given those terms in 
section 3 of the Assistive Technology Act of 1998 (29 U.S.C. 3002).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1581 the following new item:

``1582. Assistive technology, assistive technology devices, and 
           assistive technology services.''.

SEC. 1103. EXTENSION OF AUTHORITY FOR VOLUNTARY SEPARATIONS IN 
            REDUCTIONS IN FORCE.

    Section 3502(f )(5) of title 5, United States Code, is amended by 
striking ``September 30, 2001'' and inserting ``September 30, 2005''.

SEC. 1104. ELECTRONIC MAINTENANCE OF PERFORMANCE APPRAISAL SYSTEMS.

    Section 4302 of title 5, United States Code, is amended by adding at 
the end the following new subsection:
    ``(c) In accordance with regulations which the Office shall 
prescribe, the head of an agency may administer and maintain a 
performance appraisal system electronically.''.

SEC. 1105. STUDY ON CIVILIAN PERSONNEL SERVICES.

    (a) Study Required.--The Secretary of Defense shall assess the 
manner in which personnel services are provided for civilian personnel 
in the Department of Defense and determine whether--
            (1) administration of such services should continue to be 
        centralized in individual military services and Defense Agencies 
        or whether such services should be centralized within designated 
        geographical areas to provide services to all Department of 
        Defense elements;
            (2) offices that perform such services should be established 
        to perform specific functions rather than cover an established 
        geographical area;
            (3) processes and functions of civilian personnel offices 
        should be reengineered to provide greater efficiency and better

[[Page 114 STAT. 1654A-312]]

        service to management and employees of the Department of 
        Defense; and
            (4) efficiencies could be gained by public-private 
        competition of the delivery of any of the personnel services for 
        civilian personnel of the Department of Defense.

    (b) Report.--Not later than January 1, 2002, the Secretary of 
Defense shall submit a report on the study, including recommendations, 
to the Committees on Armed Services of the Senate and the House of 
Representatives. The report shall include the Secretary's assessment of 
the items described in subsection (a), and, if appropriate, a proposal 
for a demonstration program to test the concepts developed under the 
study. The Secretary may also include any recommendations for 
legislation or other actions that the Secretary considers appropriate to 
increase the effectiveness and efficiency of the delivery of personnel 
services with respect to civilian personnel of the Department of 
Defense.

              Subtitle B--Demonstration and Pilot Programs

SEC. 1111. PILOT PROGRAM FOR REENGINEERING THE EQUAL EMPLOYMENT 
            OPPORTUNITY COMPLAINT PROCESS.

    (a) Pilot Program.--(1) The Secretary of Defense shall carry out a 
pilot program to improve processes for the resolution of equal 
employment opportunity complaints by civilian employees of the 
Department of Defense. Complaints processed under the pilot program 
shall be subject to the procedural requirements established for the 
pilot program and shall not be subject to the procedural requirements of 
part 1614 of title 29 of the Code of Federal Regulations or other 
regulations, directives, or regulatory restrictions prescribed by the 
Equal Employment Opportunity Commission.
    (2) The pilot program shall include procedures to reduce processing 
time and eliminate redundancy with respect to processes for the 
resolution of equal employment opportunity complaints, reinforce local 
management and chain-of-command accountability, and provide the parties 
involved with early opportunity for resolution.
    (3) The Secretary may carry out the pilot program for a period of 
three years, beginning on January 1, 2001.
    (4)(A) Participation in the pilot program shall be voluntary on the 
part of the complainant. Complainants who participate in the pilot 
program shall retain the right to appeal a final agency decision to the 
Equal Employment Opportunity Commission and to file suit in district 
court. The Equal Employment Opportunity Commission shall not reverse a 
final agency decision on the grounds that the agency did not comply with 
the regulatory requirements promulgated by the Commission.
    (B) Subparagraph (A) shall apply to all cases--
            (i) pending as of January 1, 2001, before the Equal 
        Employment Opportunity Commission involving a civilian employee 
        who filed a complaint under the pilot program of the Department 
        of the Navy to improve processes for the resolution of equal 
        employment opportunity complaints; and
            (ii) hereinafter filed with the Commission under the pilot 
        program established by this section.

[[Page 114 STAT. 1654A-313]]

    (5) The pilot program shall be carried out in at least one military 
department and two Defense Agencies.
    (b) Report.--Not later than 90 days following the end of the first 
and last full or partial fiscal years during which the pilot program is 
implemented, the Comptroller General shall submit to Congress a report 
on the pilot program. Such report shall contain the following:
            (1) A description of the processes tested by the pilot 
        program.
            (2) The results of such testing.
            (3) Recommendations for changes to the processes for the 
        resolution of equal employment opportunity complaints as a 
        result of such pilot program.
            (4) A comparison of the processes used, and results 
        obtained, under the pilot program to traditional and alternative 
        dispute resolution processes used in the government or private 
        industry.

SEC. 1112. WORK SAFETY DEMONSTRATION PROGRAM.

    (a) Establishment.--The Secretary of Defense shall carry out a 
defense employees work safety demonstration program.
    (b) Private Sector Work Safety Models.--Under the demonstration 
program, the Secretary shall--
            (1) adopt for use in the workplace of civilian employees of 
        the Department of Defense such work safety models used by 
        employers in the private sector that the Secretary considers as 
        being representative of the best work safety practices in use by 
        private sector employers; and
            (2) determine whether the use of those practices in the 
        Department of Defense improves the work safety record of 
        Department of Defense employees.

    (c) Sites.--(1) The Secretary shall carry out the demonstration 
program--
            (A) at not fewer than two installations of each of the Armed 
        Forces (other than the Coast Guard), for employees of the 
        military department concerned; and
            (B) in at least two Defense Agencies (as defined in section 
        101(a)(11) of title 10, United States Code).

    (2) The Secretary shall select the installations and Defense 
Agencies from among the installations and Defense Agencies listed in the 
Federal Worker 2000 Presidential Initiative.
    (d) Period for Program.--The demonstration program shall begin not 
later than 180 days after the date of the enactment of this Act and 
shall terminate on September 30, 2002.
    (e) Reports.--(1) The Secretary of Defense shall submit an interim 
report on the demonstration program to the Committees on Armed Services 
of the Senate and the House of Representatives not later than December 
1, 2001. The interim report shall contain, at a minimum, for each site 
of the demonstration program the following:
            (A) A baseline assessment of the lost workday injury rate.
            (B) A comparison of the lost workday injury rate for fiscal 
        year 2000 with the lost workday injury rate for fiscal year 
        1999.
            (C) The direct and indirect costs associated with all lost 
        workday injuries.

[[Page 114 STAT. 1654A-314]]

    (2) The Secretary of Defense shall submit a final report on the 
demonstration program to the Committees on Armed Services of the Senate 
and the House of Representatives not later than December 1, 2002. The 
final report shall contain, at a minimum, for each site of the 
demonstration program the following:
            (A) The Secretary's determination on the issue described in 
        subsection (b)(2).
            (B) A comparison of the lost workday injury rate under the 
        program with the baseline assessment of the lost workday injury 
        rate.
            (C) The lost workday injury rate for fiscal year 2002.
            (D) A comparison of the direct and indirect costs associated 
        with all lost workday injuries for fiscal year 2002 with the 
        direct and indirect costs associated with all lost workday 
        injuries for fiscal year 2001.

    (f ) Funding.--Of the amount authorized to be appropriated under 
section 301(5), $5,000,000 shall be available for the demonstration 
program under this section.

SEC. 1113. EXTENSION, EXPANSION, AND REVISION OF AUTHORITY FOR 
            EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND TECHNICAL 
            PERSONNEL.

    (a) Extension of Program.--Section 1101 of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
261; 112 Stat. 2139; 5 U.S.C. 3104 note) is amended--
            (1) in subsection (a), by striking ``the 5-year period 
        beginning on the date of the enactment of this Act'' and 
        inserting ``the program period specified in subsection (e)(1)'';
            (2) in subsection (e), by striking paragraph (1) and 
        inserting the following:

    ``(1) The period for carrying out the program authorized under this 
section begins on October 17, 1998, and ends on October 16, 2005.''; and
            (3) in subsection (f ), by striking ``on the day before the 
        termination of the program'' and inserting ``on the last day of 
        the program period specified in subsection (e)(1)''.

    (b) Expansion of Scope.--Subsection (a) of such section, as amended 
by subsection (a)(1) of this section, is further amended by inserting 
before the period at the end the following: ``and research and 
development projects administered by laboratories designated for the 
program by the Secretary from among the laboratories of each of the 
military departments''.
    (c) Limitation on Number of Appointments.--Subsection (b)(1) of such 
section is amended to read as follows:
            ``(1) without regard to any provision of title 5, United 
        States Code, governing the appointment of employees in the civil 
        service, appoint scientists and engineers from outside the civil 
        service and uniformed services (as such terms are defined in 
        section 2101 of such title) to--
                    ``(A) not more than 40 scientific and engineering 
                positions in the Defense Advanced Research Projects 
                Agency;
                    ``(B) not more than 40 scientific and engineering 
                positions in the designated laboratories of each of the 
                military services; and

[[Page 114 STAT. 1654A-315]]

                    ``(C) not more than a total of 10 scientific and 
                engineering positions in the National Imagery and 
                Mapping Agency and the National Security Agency;''.

    (d) Rates of Pay for Appointees.--Subsection (b)(2) of such section 
is amended by inserting after ``United States Code,'' the following: 
``as increased by locality-based comparability payments under section 
5304 of such title,''.
    (e) Commensurate Extension of Requirement for Annual Report.--
Subsection (g) of such section is amended by striking ``2004'' and 
inserting ``2006''.
    (f ) Amendment of Section Heading.--The heading for such section is 
amended to read as follows:

``SEC. 1101. EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND TECHNICAL 
            PERSONNEL.''.

SEC. 1114. CLARIFICATION OF PERSONNEL MANAGEMENT AUTHORITY UNDER 
            PERSONNEL DEMONSTRATION PROJECT.

    (a) Elimination of Requirement for OPM Review and Approval.--Section 
342 of the National Defense Authorization Act for Fiscal Year 1995 
(Public Law 103-337; 108 Stat. 2721) is amended--
            (1) in subsection (b)(1), by striking ``, with the approval 
        of the Director of the Office of Personnel Management,''; and
            (2) in subsection (b)(3)--
                    (A) by striking ``and'' at the end of subparagraph 
                (A);
                    (B) by striking ``section 4703.'' and inserting 
                ``section 4703; and'' at the end of subparagraph (B); 
                and
                    (C) by inserting at the end the following new 
                subparagraph (C):
                    ``(C) the Secretary shall exercise the authorities 
                granted to the Office of Personnel Management under such 
                section 4703.''.

    (b) Increase in Level of Authorized Pay.--Section 342(b) of such Act 
is further amended by adding at the end the following new paragraph:
    ``(5) The limitations in section 5373 of title 5, United States 
Code, do not apply to the authority of the Secretary under this section 
to prescribe salary schedules and other related benefits.''.

                   Subtitle C--Educational Assistance

SEC. 1121. RESTRUCTURING THE RESTRICTION ON DEGREE TRAINING.

    Section 4107 of title 5, United States Code, is amended--
            (1) in subsection (a), by striking ``subsection (b)'' and 
        inserting ``subsections (b) and (c)'';
            (2) in subsection (b)(1), by striking ``subsection (a)'' and 
        inserting ``subsection (a) or (c)''; and
            (3) by adding at the end the following new subsection:

    ``(c) With respect to an employee of the Department of Defense--
            ``(1) this chapter does not authorize, except as provided in 
        subsection (b) of this section, the selection and assignment of 
        the employee for training, or the payment or reimbursement of 
        the costs of training, for--
                    ``(A) the purpose of providing an opportunity to the 
                employee to obtain an academic degree in order to 
                qualify

[[Page 114 STAT. 1654A-316]]

                for appointment to a particular position for which the 
                academic degree is a basic requirement; or
                    ``(B) the sole purpose of providing an opportunity 
                to the employee to obtain one or more academic degrees, 
                unless such opportunity is part of a planned, 
                systematic, and coordinated program of professional 
                development endorsed by the Department of Defense; and
            ``(2) any course of post-secondary education delivered 
        through classroom, electronic, or other means shall be 
        administered or conducted by an institution recognized under 
        standards implemented by a national or regional accrediting 
        body, except in a case in which such standards do not exist or 
        the use of such standards would not be appropriate.''.

SEC. 1122. STUDENT LOAN REPAYMENT PROGRAMS.

    (a) Covered Student Loans.--Section 5379(a)(1)(B) of title 5, United 
States Code, is amended--
            (1) in clause (i), by inserting ``(20 U.S.C. 1071 et seq.)'' 
        before the semicolon;
            (2) in clause (ii), by striking ``part E of title IV of the 
        Higher Education Act of 1965'' and inserting ``part D or E of 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et 
        seq., 1087aa et seq.)''; and
            (3) in clause (iii), by striking ``part C of title VII of 
        Public Health Service Act or under part B of title VIII of such 
        Act'' and inserting ``part A of title VII of the Public Health 
        Service Act (42 U.S.C. 292 et seq.) or under part E of title 
        VIII of such Act (42 U.S.C. 297a et seq.)''.

    (b) Personnel Covered.--(1) Section 5379(a)(2) of title 5, United 
States Code, is amended to read as follows:
    ``(2) An employee shall be ineligible for benefits under this 
section if the employee occupies a position that is excepted from the 
competitive service because of its confidential, policy-determining, 
policy-making, or policy-advocating character.''.
    (2) Section 5379(b)(1) of title 5, United States Code, is amended by 
striking ``professional, technical, or administrative''.
    (c) Regulations.--(1) Not later than 60 days after the date of the 
enactment of this Act, the Director of the Office of Personnel 
Management shall issue proposed regulations under section 5379(g) of 
title 5, United States Code. The Director shall provide for a period of 
not less than 60 days for public comment on the regulations.
    (2) Not later than 240 days after the date of the enactment of this 
Act, the Director shall issue final regulations.
    (d) Annual Reports.--Section 5379 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(h)(1) Each head of an agency shall maintain, and annually submit 
to the Director of the Office of Personnel Management, information with 
respect to the agency on--
            ``(A) the number of Federal employees selected to receive 
        benefits under this section;
            ``(B) the job classifications for the recipients; and
            ``(C) the cost to the Federal Government of providing the 
        benefits.

    ``(2) The Director of the Office of Personnel Management shall 
prepare, and annually submit to Congress, a report containing the 
information submitted under paragraph (1), and information

[[Page 114 STAT. 1654A-317]]

identifying the agencies that have provided benefits under this 
section.''.

SEC. 1123. EXTENSION OF AUTHORITY FOR TUITION REIMBURSEMENT AND TRAINING 
            FOR CIVILIAN EMPLOYEES IN THE DEFENSE ACQUISITION WORKFORCE.

    Section 1745(a)(2) of title 10, United States Code, is amended by 
striking ``September 30, 2001'' and inserting ``September 30, 2010''.

                       Subtitle D--Other Benefits

SEC. 1131. ADDITIONAL SPECIAL PAY FOR FOREIGN LANGUAGE PROFICIENCY 
            BENEFICIAL FOR UNITED STATES NATIONAL SECURITY INTERESTS.

    (a) In General.--Chapter 81 of title 10, United States Code, is 
amended by inserting after section 1596 the following new section:

``Sec. 1596a. Foreign language proficiency: special pay for proficiency 
                        beneficial for other national security interests

    ``(a) Authority.--The Secretary of Defense may pay special pay under 
this section to an employee of the Department of Defense who--
            ``(1) has been certified by the Secretary to be proficient 
        in a foreign language identified by the Secretary as being a 
        language in which proficiency by civilian personnel of the 
        Department is necessary because of national security interests;
            ``(2) is assigned duties requiring proficiency in that 
        foreign language during a contingency operation supported by the 
        armed forces; and
            ``(3) is not receiving special pay under section 1596 of 
        this title.

    ``(b) Rate.--The rate of special pay for an employee under this 
section shall be prescribed by the Secretary, but may not exceed five 
percent of the employee's rate of basic pay.
    ``(c) Relationship to Other Pay and Allowances.--Special pay under 
this section is in addition to any other pay or allowances to which the 
employee is entitled.
    ``(d) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.''.
    (b) Amendment To Distinguish Other Foreign Language Proficiency 
Special Pay.--The heading for section 1596 of title 10, United States 
Code, is amended to read as follows:

``Sec. 1596. Foreign language proficiency: special pay for proficiency 
                        beneficial for intelligence interests''.

    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 81 of such title is amended by striking the item relating to 
section 1596 and inserting the following new items:

``1596. Foreign language proficiency: special pay for proficiency 
           beneficial for intelligence interests.
``1596a. Foreign language proficiency: special pay for proficiency 
           beneficial for other national security interests.''.

[[Page 114 STAT. 1654A-318]]

SEC. 1132. APPROVAL AUTHORITY FOR CASH AWARDS IN EXCESS OF $10,000.

    Section 4502 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(f ) The Secretary of Defense may grant a cash award under 
subsection (b) of this section without regard to the requirements for 
certification and approval provided in that subsection.''.

SEC. 1133. LEAVE FOR CREWS OF CERTAIN VESSELS.

    Section 6305(c)(2) of title 5, United States Code, is amended to 
read as follows:
            ``(2) may not be made the basis for a lump-sum payment, 
        except that civil service mariners of the Military Sealift 
        Command on temporary promotion aboard ship may be paid the 
        difference between their temporary and permanent rates of pay 
        for leave accrued under this section and section 6303 and not 
        otherwise used during the temporary promotion upon the 
        expiration or termination of the temporary promotion; and''.

SEC. 1134. LIFE INSURANCE FOR EMERGENCY ESSENTIAL DEPARTMENT OF DEFENSE 
            EMPLOYEES.

    (a) In General.--Section 8702 of title 5, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Notwithstanding a notice previously given under subsection 
(b), an employee of the Department of Defense who is designated as an 
emergency essential employee under section 1580 of title 10 shall be 
insured if the employee, within 60 days after the date of the 
designation, elects to be insured under a policy of insurance under this 
chapter. An election under the preceding sentence shall be effective 
when provided to the Office in writing, in the form prescribed by the 
Office, within such 60-day period.''.
    (b) Applicability.--For purposes of section 8702(c) of title 5, 
United States Code (as added by subsection (a)), an employee of the 
Department of Defense who is designated as an emergency essential 
employee under section 1580 of title 10, United States Code, before the 
date of the enactment of this Act shall be deemed to be so designated on 
the date of the enactment of this Act.

               Subtitle E--Intelligence Civilian Personnel

SEC. 1141. EXPANSION OF DEFENSE CIVILIAN INTELLIGENCE PERSONNEL SYSTEM 
            POSITIONS.

    (a) Authority for Senior DOD Intelligence Positions Throughout 
Department of Defense.--Section 1601(a)(1) of title 10, United States 
Code, is amended--
            (1) by striking ``in the intelligence components of the 
        Department of Defense and the military departments'' and 
        inserting ``in the Department of Defense''; and
            (2) by striki