[107th Congress Public Law 107]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ107.107]


[[Page 1011]]

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

[[Page 115 STAT. 1012]]

Public Law 107-107
107th Congress

                                 An Act


 
To authorize appropriations for fiscal year 2002 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
        for such fiscal year for the Armed Forces, and for other 
             purposes. <<NOTE: Dec. 28, 2001 -  [S. 1438]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: National Defense 
Authorization Act for Fiscal Year 2002.>> assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 2002''.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense Health Program.

                        Subtitle B--Army Programs

Sec. 111. Repeal of limitations on bunker defeat munitions program.
Sec. 112. Extension of pilot program on sales of manufactured articles 
           and services of certain Army industrial facilities without 
           regard to availability from domestic sources.
Sec. 113. Limitations on acquisition of interim armored vehicles and 
           deployment of interim brigade combat teams.

                        Subtitle C--Navy Programs

Sec. 121. Virginia class submarine program.

[[Page 115 STAT. 1013]]

Sec. 122. Multiyear procurement authority for F/A-18E/F aircraft 
           engines.
Sec. 123. V-22 Osprey aircraft program.
Sec. 124. Report on status of V-22 Osprey aircraft before resumption of 
           flight testing.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-17 aircraft.

          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.
Sec. 203. Supplemental authorization of appropriations for fiscal year 
           2001 for research, development, test, and evaluation, 
           Defense-wide.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Naval surface fire support assessment.
Sec. 212. Collaborative program for development of advanced radar 
           systems.
Sec. 213. Repeal of limitations on total cost of engineering and 
           manufacturing development for F-22 aircraft program.
Sec. 214. Joint biological defense program.
Sec. 215. Cooperative Department of Defense-Department of Veterans 
           Affairs medical research program.
Sec. 216. C-5 aircraft reliability enhancement and reengining program.

                  Subtitle C--Ballistic Missile Defense

Sec. 231. Transfer of responsibility for procurement for missile defense 
           programs from Ballistic Missile Defense Organization to 
           military departments.
Sec. 232. Program elements for Ballistic Missile Defense Organization.
Sec. 233. Support of ballistic missile defense activities of the 
           Department of Defense by the national defense laboratories of 
           the Department of Energy.
Sec. 234. Missile defense testing initiative.
Sec. 235. Construction of test bed facilities for missile defense 
           system.

    Subtitle D--Air Force Science and Technology for the 21st Century

Sec. 251. Short title.
Sec. 252. Science and technology investment and development planning.
Sec. 253. Study and report on effectiveness of Air Force science and 
           technology program changes.

                        Subtitle E--Other Matters

Sec. 261. Establishment of unmanned aerial vehicle joint operational 
           test bed system.
Sec. 262. Demonstration project to increase small business and 
           university participation in Office of Naval Research efforts 
           to extend benefits of science and technology research to 
           fleet.
Sec. 263. Communication of safety concerns from operational test and 
           evaluation officials to program managers.

                  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. Funds for renovation of Department of Veterans Affairs 
           facilities adjacent to Naval Training Center, Great Lakes, 
           Illinois.
Sec. 306. Defense Language Institute Foreign Language Center expanded 
           Arabic language program.

                  Subtitle B--Environmental Provisions

Sec. 311. Inventory of unexploded ordnance, discarded military 
           munitions, and munitions constituents at defense sites (other 
           than operational ranges).
Sec. 312. Establishment of new program element for remediation of 
           unexploded ordnance, discarded military munitions, and 
           munitions constituents.
Sec. 313. Assessment of environmental remediation of unexploded 
           ordnance, discarded military munitions, and munitions 
           constituents.
Sec. 314. Conformity of surety authority under environmental restoration 
           program with surety authority under CERCLA.

[[Page 115 STAT. 1014]]

Sec. 315. Elimination of annual report on contractor reimbursement for 
           costs of environmental response actions.
Sec. 316. Pilot program for sale of air pollution emission reduction 
           incentives.
Sec. 317. Department of Defense energy efficiency program.
Sec. 318. Procurement of alternative fueled and hybrid light duty 
           trucks.
Sec. 319. Reimbursement of Environmental Protection Agency for certain 
           response costs in connection with Hooper Sands Site, South 
           Berwick, Maine.
Sec. 320. River mitigation studies.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Commissary benefits for new members of the Ready Reserve.
Sec. 332. Reimbursement for use of commissary facilities by military 
           departments for purposes other than commissary sales.
Sec. 333. Public releases of commercially valuable information of 
           commissary stores.
Sec. 334. Rebate agreements with producers of foods provided under 
           special supplemental food program.
Sec. 335. Civil recovery for nonappropriated fund instrumentality costs 
           related to shoplifting.

                 Subtitle D--Workforce and Depot Issues

Sec. 341. Revision of authority to waive limitation on performance of 
           depot-level maintenance.
Sec. 342. Exclusion of certain expenditures from limitation on private 
           sector performance of depot-level maintenance.
Sec. 343. Protections for purchasers of articles and services 
           manufactured or performed by working-capital funded 
           industrial facilities of the Department of Defense.
Sec. 344. Revision of deadline for annual report on commercial and 
           industrial activities.
Sec. 345. Pilot manpower reporting system in Department of the Army.
Sec. 346. Development of Army workload and performance system and 
           Wholesale Logistics Modernization Program.

                Subtitle E--Defense Dependents Education

Sec. 351. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 352. Impact aid for children with severe disabilities.
Sec. 353. Availability of auxiliary services of defense dependents' 
           education system for dependents who are home school students.
Sec. 354. Comptroller General study of adequacy of compensation provided 
           for teachers in the Department of Defense overseas 
           dependents' schools.

                        Subtitle F--Other Matters

Sec. 361. Availability of excess defense personal property to support 
           Department of Veterans Affairs initiative to assist homeless 
           veterans.
Sec. 362. Incremental implementation of Navy-Marine Corps Intranet 
           contract.
Sec. 363. Comptroller General study and report of National Guard 
           Distributive Training Technology Project.
Sec. 364. Reauthorization of warranty claims recovery pilot program.
Sec. 365. Evaluation of current demonstration programs to improve 
           quality of personal property shipments of members.
Sec. 366. Sense of Congress regarding security to be provided at 2002 
           Winter Olympic Games.

               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. Increase in senior enlisted active duty grade limit for Navy, 
           Marine Corps, and Air Force.

                       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 2002 limitation on non-dual status technicians.
Sec. 415. Limitations on numbers of reserve personnel serving on active 
           duty or full-time National Guard duty in certain grades for 
           administration of reserve components.

[[Page 115 STAT. 1015]]

        Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Administration of end strengths.
Sec. 422. Active duty end strength exemption for National Guard and 
           reserve personnel performing funeral honors functions.

               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. Enhanced flexibility for management of senior general and flag 
           officer positions.
Sec. 502. Certifications of satisfactory performance for retirement of 
           officers in grades above major general and rear admiral.
Sec. 503. Review of actions of selection boards.
Sec. 504. Temporary reduction of time-in-grade requirement for 
           eligibility for promotion for certain active-duty list 
           officers in grades of first lieutenant and lieutenant (junior 
           grade).
Sec. 505. Authority for promotion without selection board consideration 
           for all fully qualified officers in grade of first lieutenant 
           or lieutenant (junior grade) in the Navy.
Sec. 506. Authority to adjust date of rank of certain promotions delayed 
           by reason of unusual circumstances.
Sec. 507. Authority for limited extension of medical deferment of 
           mandatory retirement or separation.
Sec. 508. Authority for limited extension on active duty of members 
           subject to mandatory retirement or separation.
Sec. 509. Exemption from certain administrative limitations for retired 
           officers ordered to active duty as defense or service 
           attaches.
Sec. 510. Officer in charge of United States Navy Band.

             Subtitle B--Reserve Component Personnel Policy

Sec. 511. Placement on active-duty list of certain Reserve officers on 
           active duty for a period of three years or less.
Sec. 512. Exception to baccalaureate degree requirement for appointment 
           of Reserve officers to grades above first lieutenant.
Sec. 513. Improved disability benefits for certain reserve component 
           members.
Sec. 514. Time-in-grade requirement for reserve component officers 
           retired with a nonservice-connected disability.
Sec. 515. Equal treatment of Reserves and full-time active duty members 
           for purposes of managing personnel deployments.
Sec. 516. Modification of physical examination requirements for members 
           of the Individual Ready Reserve.
Sec. 517. Retirement of Reserve members without requirement for formal 
           application or request.
Sec. 518. Space-required travel by Reserves on military aircraft.
Sec. 519. Payment of Federal Employee Health Benefit Program premiums 
           for certain Reservists called to active duty in support of 
           contingency operations.

  Subtitle C--Joint Specialty Officers and Joint Professional Military 
                                Education

Sec. 521. Nominations and promotions for joint specialty officers.
Sec. 522. Joint duty credit.
Sec. 523. Retroactive joint service credit for duty in certain joint 
           task forces.
Sec. 524. Revision to annual report on joint officer management.
Sec. 525. Requirement for selection for joint specialty before promotion 
           to general or flag officer grade.
Sec. 526. Independent study of joint officer management and joint 
           professional military education reforms.
Sec. 527. Professional development education.
Sec. 528. Authority for National Defense University to enroll certain 
           private sector civilians.
Sec. 529. Continuation of reserve component professional military 
           education test.

               Subtitle D--Military Education and Training

Sec. 531. Defense Language Institute Foreign Language Center.
Sec. 532. Authority for the Marine Corps University to award degree of 
           master of strategic studies.

[[Page 115 STAT. 1016]]

Sec. 533. Foreign students attending the service academies.
Sec. 534. Increase in maximum age for appointment as a cadet or 
           midshipman in Senior Reserve Officers' Training Corps 
           scholarship programs.
Sec. 535. Participation of regular enlisted members of the Armed Forces 
           in Senior Reserve Officers' Training Corps program.
Sec. 536. Authority to modify the service obligation of certain ROTC 
           cadets in military junior colleges receiving financial 
           assistance.
Sec. 537. Repeal of limitation on number of Junior Reserve Officers' 
           Training Corps units.
Sec. 538. Modification of nurse officer candidate accession program 
           restriction on students attending educational institutions 
           with senior reserve officers' training programs.
Sec. 539. Reserve health professionals stipend program expansion.
Sec. 540. Housing allowance for the chaplain for the Corps of Cadets at 
           the United States Military Academy.

              Subtitle E--Recruiting and Accession Programs

Sec. 541. 18-month enlistment pilot program.
Sec. 542. Improved benefits under the Army College First program.
Sec. 543. Correction and extension of certain Army recruiting pilot 
           program authorities.
Sec. 544. Military recruiter access to secondary school students.
Sec. 545. Permanent authority for use of military recruiting funds for 
           certain expenses at Department of Defense recruiting 
           functions.
Sec. 546. Report on health and disability benefits for pre-accession 
           training and education programs.

       Subtitle F--Decorations, Awards, and Posthumous Commissions

Sec. 551. Authority for award of the Medal of Honor to Humbert R. 
           Versace, Jon E. Swanson, and Ben L. Salomon for valor.
Sec. 552. Review regarding award of Medal of Honor to certain Jewish 
           American and Hispanic American war veterans.
Sec. 553. Authority to issue duplicate Medals of Honor and to replace 
           stolen military decorations.
Sec. 554. Retroactive Medal of Honor special pension.
Sec. 555. Waiver of time limitations for award of certain decorations to 
           certain persons.
Sec. 556. Sense of Congress on issuance of certain medals.
Sec. 557. Sense of Congress on development of a more comprehensive, 
           uniform policy for the award of decorations to military and 
           civilian personnel of the Department of Defense.
Sec. 558. Posthumous Army commission in the grade of captain in the 
           Chaplains Corps to Ella E. Gibson for service as chaplain of 
           the First Wisconsin Heavy Artillery Regiment during the Civil 
           War.

                     Subtitle G--Funeral Honors Duty

Sec. 561. Participation of military retirees in funeral honors details.
Sec. 562. Funeral honors duty performed by Reserve and Guard members to 
           be treated as inactive-duty training for certain purposes.
Sec. 563. Use of military leave for funeral honors duty by Reserve 
           members and National Guardsmen.
Sec. 564. Authority to provide appropriate articles of clothing as a 
           civilian uniform for civilians participating in funeral honor 
           details.

             Subtitle H--Military Spouses and Family Members

Sec. 571. Improved financial and other assistance to military spouses 
           for job training and education.
Sec. 572. Persons authorized to be included in surveys of military 
           families regarding Federal programs.
Sec. 573. Clarification of treatment of classified information 
           concerning persons in a missing status.
Sec. 574. Transportation to annual meeting of next-of-kin of persons 
           unaccounted for from conflicts after World War II.
Sec. 575. Amendments to charter of Defense Task Force on Domestic 
           Violence.

        Subtitle I--Military Justice and Legal Assistance Matters

Sec. 581. Blood alcohol content limit for the offense under the Uniform 
           Code of Military Justice of drunken operation of a vehicle, 
           aircraft, or vessel.
Sec. 582. Requirement that courts-martial consist of not less than 12 
           members in capital cases.

[[Page 115 STAT. 1017]]

Sec. 583. Acceptance of voluntary legal assistance for the civil affairs 
           of members and former members of the uniformed services and 
           their dependents.

                        Subtitle J--Other Matters

Sec. 591. Congressional review period for change in ground combat 
           exclusion policy.
Sec. 592. Per diem allowance for lengthy or numerous deployments.
Sec. 593. Clarification of disability severance pay computation.
Sec. 594. Transportation or storage of privately owned vehicles on 
           change of permanent station.
Sec. 595. Repeal of requirement for final Comptroller General report 
           relating to Army end strength allocations.
Sec. 596. Continued Department of Defense administration of National 
           Guard Challenge program and Department of Defense Starbase 
           program.
Sec. 597. Report on Defense Science Board recommendation on original 
           appointments in regular grades for Academy graduates and 
           certain other new officers.
Sec. 598. Sense of Congress regarding the selection of officers for 
           recommendation for appointment as Commander, United States 
           Transportation Command.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2002.
Sec. 602. Basic pay rate for certain reserve commissioned officers with 
           prior service as an enlisted member or warrant officer.
Sec. 603. Reserve component compensation for distributed learning 
           activities performed as inactive-duty training.
Sec. 604. Subsistence allowances.
Sec. 605. Eligibility for temporary housing allowance while in travel or 
           leave status between permanent duty stations.
Sec. 606. Uniform allowance for officers.
Sec. 607. Family separation allowance for members electing unaccompanied 
           tour by reason of health limitations of dependents.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
           authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
           authorities for nurse officer candidates, registered nurses, 
           and nurse anesthetists.
Sec. 613. One-year extension of special pay and bonus authorities for 
           nuclear officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Hazardous duty pay for members of maritime visit, board, 
           search, and seizure teams.
Sec. 616. Eligibility for certain career continuation bonuses for early 
           commitment to remain on active duty.
Sec. 617. Secretarial discretion in prescribing submarine duty incentive 
           pay rates.
Sec. 618. Conforming accession bonus for dental officers authority with 
           authorities for other special pay and bonuses.
Sec. 619. Modification of eligibility requirements for Individual Ready 
           Reserve bonus for reenlistment, enlistment, or extension of 
           enlistment.
Sec. 620. Installment payment authority for 15-year career status bonus.
Sec. 621. Accession bonus for new officers in critical skills.
Sec. 622. Education savings plan to encourage reenlistments and 
           extensions of service in critical specialties.
Sec. 623. Continuation of payment of special and incentive pay at 
           unreduced rates during stop loss periods.
Sec. 624. Retroactive authorization for imminent danger pay for service 
           in connection with Operation Enduring Freedom.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Minimum per diem rate for travel and transportation allowance 
           for travel performed upon a change of permanent station and 
           certain other travel.
Sec. 632. Eligibility for payment of subsistence expenses associated 
           with occupancy of temporary lodging incident to reporting to 
           first permanent duty station.
Sec. 633. Reimbursement of members for mandatory pet quarantine fees for 
           household pets.
Sec. 634. Increased weight allowance for transportation of baggage and 
           household effects for junior enlisted members.

[[Page 115 STAT. 1018]]

Sec. 635. Eligibility of additional members for dislocation allowance.
Sec. 636. Partial dislocation allowance authorized for housing moves 
           ordered for Government convenience.
Sec. 637. Allowances for travel performed in connection with members 
           taking authorized leave between consecutive overseas tours.
Sec. 638. Travel and transportation allowances for family members to 
           attend burial of a deceased member of the uniformed services.
Sec. 639. Funded student travel for foreign study under an education 
           program approved by a United States school.

           Subtitle D--Retirement and Survivor Benefit Matters

Sec. 641. Contingent authority for concurrent receipt of military 
           retired pay and veterans' disability compensation and 
           enhancement of special compensation authority.
Sec. 642. Survivor Benefit Plan annuities for surviving spouses of 
           members who die while on active duty and not eligible for 
           retirement.

                        Subtitle E--Other Matters

Sec. 651. Payment for unused leave in excess of 60 days accrued by 
           members of reserve components on active duty for one year or 
           less.
Sec. 652. Additional authority to provide assistance for families of 
           members of the Armed Forces.
Sec. 653. Authorization of transitional compensation and commissary and 
           exchange benefits for dependents of commissioned officers of 
           the Public Health Service and the National Oceanic and 
           Atmospheric Administration who are separated for dependent 
           abuse.
Sec. 654. Transfer of entitlement to educational assistance under 
           Montgomery GI Bill by members of the Armed Forces with 
           critical military skills.

                    TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. Sub-acute and long-term care program reform.
Sec. 702. Prosthetics and hearing aids.
Sec. 703. Durable medical equipment.
Sec. 704. Rehabilitative therapy.
Sec. 705. Report on mental health benefits.
Sec. 706. Clarification of eligibility for reimbursement of travel 
           expenses of adult accompanying patient in travel for 
           specialty care.
Sec. 707. TRICARE program limitations on payment rates for institutional 
           health care providers and on balance billing by institutional 
           and noninstitutional health care providers.
Sec. 708. Improvements in administration of the TRICARE program.

                     Subtitle B--Senior Health Care

Sec. 711. Clarifications and improvements regarding the Department of 
           Defense Medicare-Eligible Retiree Health Care Fund.

                     Subtitle C--Studies and Reports

Sec. 721. Comptroller General study of health care coverage of members 
           of the reserve components of the Armed Forces and the 
           National Guard.
Sec. 722. Comptroller General study of adequacy and quality of health 
           care provided to women under the defense health program.
Sec. 723. Repeal of obsolete report requirement.
Sec. 724. Comptroller General report on requirement to provide 
           screenings, physical examinations, and other care for certain 
           members.

                        Subtitle D--Other Matters

Sec. 731. Prohibition against requiring military retirees to receive 
           health care solely through the Department of Defense.
Sec. 732. Fees for trauma and other medical care provided to civilians.
Sec. 733. Enhancement of medical product development.
Sec. 734. Pilot program providing for Department of Veterans Affairs 
           support in the performance of separation physical 
           examinations.
Sec. 735. Modification of prohibition on requirement of nonavailability 
           statement or preauthorization.
Sec. 736. Transitional health care for members separated from active 
           duty.
Sec. 737. Two-year extension of health care management demonstration 
           program.
Sec. 738. Joint DOD-VA pilot program for providing graduate medical 
           education and training for physicians.

[[Page 115 STAT. 1019]]

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

          Subtitle A--Procurement Management and Administration

Sec. 801. Management of procurement of services.
Sec. 802. Savings goals for procurements of services.
Sec. 803. Competition requirement for purchase of services pursuant to 
           multiple award contracts.
Sec. 804. Reports on maturity of technology at initiation of major 
           defense acquisition programs. 

                  Subtitle B--Use of Preferred Sources

Sec. 811. Applicability of competition requirements to purchases from a 
           required source.
Sec. 812. Extension of mentor-protege program.
Sec. 813. Increase of assistance limitation regarding procurement 
           technical assistance program.

 Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                           and Related Matters

Sec. 821. Amendments to conform with administrative changes in 
           acquisition phase and milestone terminology and to make 
           related adjustments in certain requirements applicable at 
           milestone transition points.
Sec. 822. Follow-on production contracts for products developed pursuant 
           to prototype projects.
Sec. 823. One-year extension of program applying simplified procedures 
           to certain commercial items.
Sec. 824. Acquisition workforce qualifications.
Sec. 825. Report on implementation of recommendations of the acquisition 
           2005 task force.

                        Subtitle D--Other Matters

Sec. 831. Identification of errors made by executive agencies in 
           payments to contractors and recovery of amounts erroneously 
           paid.
Sec. 832. Codification and modification of provision of law known as the 
           ``Berry amendment''.
Sec. 833. Personal services contracts to be performed by individuals or 
           organizations abroad.
Sec. 834. Requirements regarding insensitive munitions.
Sec. 835. Inapplicability of limitation to small purchases of miniature 
           or instrument ball or roller bearings under certain 
           circumstances.
Sec. 836. Temporary emergency procurement authority to facilitate the 
           defense against terrorism or biological or chemical attack.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Deputy Under Secretary of Defense for Personnel and Readiness.
Sec. 902. Sense of Congress on functions of new Office of Force 
           Transformation in the Office of the Secretary of Defense.
Sec. 903. Suspension of reorganization of engineering and technical 
           authority policy within the Naval Sea Systems Command pending 
           report to congressional committees.

                      Subtitle B--Space Activities

Sec. 911. Joint management of space programs.
Sec. 912. Requirement to establish in the Air Force an officer career 
           field for space.
Sec. 913. Secretary of Defense report on space activities.
Sec. 914. Comptroller General assessment of implementation of 
           recommendations of Space Commission.
Sec. 915. Sense of Congress regarding officers recommended to be 
           appointed to serve as Commander of United States Space 
           Command.

                           Subtitle C--Reports

Sec. 921. Revised requirement for Chairman of the Joint Chiefs of Staff 
           to advise Secretary of Defense on the assignment of roles and 
           missions to the Armed Forces.
Sec. 922. Revised requirements for content of annual report on joint 
           warfighting experimentation.

[[Page 115 STAT. 1020]]

Sec. 923. Repeal of requirement for one of three remaining required 
           reports on activities of Joint Requirements Oversight 
           Council.
Sec. 924. Revised joint report on establishment of national 
           collaborative information analysis capability.

                        Subtitle D--Other Matters

Sec. 931. Conforming amendments relating to change of name of Military 
           Airlift Command to Air Mobility Command.
Sec. 932. Organizational realignment for Navy Director for Expeditionary 
           Warfare.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
                      2001.
Sec. 1004. United States contribution to NATO common-funded budgets in 
                      fiscal year 2002.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
                      operations for fiscal year 2002.
Sec. 1006. Maximum amount for National Foreign Intelligence Program.
Sec. 1007. Clarification of applicability of interest penalties for late 
                      payment of interim payments due under contracts 
                      for services.
Sec. 1008. Reliability of Department of Defense financial statements.
Sec. 1009. Financial Management Modernization Executive Committee and 
                      financial feeder systems compliance process.
Sec. 1010. Authorization of funds for ballistic missile defense programs 
                      or combating terrorism programs of the Department 
                      of Defense.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority to transfer naval vessels to certain foreign 
                      countries.
Sec. 1012. Sale of Glomar Explorer to the lessee.
Sec. 1013. Leasing of Navy ships for university national oceanographic 
                      laboratory system.
Sec. 1014. Increase in limitations on administrative authority of the 
                      Navy to settle admiralty claims.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Extension and restatement of authority to provide Department 
                      of Defense support for counter-drug activities of 
                      other governmental agencies.
Sec. 1022. Extension of reporting requirement regarding Department of 
                      Defense expenditures to support foreign counter-
                      drug activities.
Sec. 1023. Authority to transfer Tracker aircraft currently used by 
                      Armed Forces for counter-drug purposes.
Sec. 1024. Limitation on use of funds for operation of Tethered Aerostat 
                      Radar System pending submission of required 
                      report.

                      Subtitle D--Strategic Forces

Sec. 1031. Repeal of limitation on retirement or dismantlement of 
                      strategic nuclear delivery systems.
Sec. 1032. Air Force bomber force structure.
Sec. 1033. Additional element for revised nuclear posture review.
Sec. 1034. Report on options for modernization and enhancement of 
                      missile wing helicopter support.

           Subtitle E--Other Department of Defense Provisions

Sec. 1041. Secretary of Defense recommendation on need for Department of 
                      Defense review of proposed Federal agency actions 
                      to consider possible impact on national defense.
Sec. 1042. Department of Defense reports to Congress to be accompanied 
                      by electronic version upon request.
Sec. 1043. Department of Defense gift authorities.
Sec. 1044. Acceleration of research, development, and production of 
                      medical countermeasures for defense against 
                      biological warfare agents.
Sec. 1045. Chemical and biological protective equipment for military 
                      personnel and civilian employees of the Department 
                      of Defense.
Sec. 1046. Sale of goods and services by Naval Magazine, Indian Island, 
                      Alaska.
Sec. 1047. Report on procedures and guidelines for embarkation of 
                      civilian guests on naval vessels for public 
                      affairs purposes.

[[Page 115 STAT. 1021]]

Sec. 1048. Technical and clerical amendments.
Sec. 1049. Termination of referendum requirement regarding continuation 
                      of military training on island of Vieques, Puerto 
                      Rico, and imposition of additional conditions on 
                      closure of live-fire training range.

                        Subtitle F--Other Matters

Sec. 1061. Assistance for firefighters.
Sec. 1062. Extension of times for Commission on the Future of the United 
                      States Aerospace industry to report and to 
                      terminate.
Sec. 1063. Appropriations to Radiation Exposure Compensation Trust Fund.
Sec. 1064. Waiver of vehicle weight limits during periods of national 
                      emergency.
Sec. 1065. Repair, restoration, and preservation of Lafayette Escadrille 
                      Memorial, Marnes-la-Coquette, France.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

          Subtitle A--Department of Defense Civilian Personnel

Sec. 1101. Personnel pay and qualifications authority for Department of 
                      Defense Pentagon Reservation civilian law 
                      enforcement and security force.
Sec. 1102. Pilot program for payment of retraining expenses.
Sec. 1103. Authority of civilian employees to act as notaries.
Sec. 1104. Authority to appoint certain health care professionals in the 
                      excepted service.

           Subtitle B--Civilian Personnel Management Generally

Sec. 1111. Authority to provide hostile fire pay.
Sec. 1112. Payment of expenses to obtain professional credentials.
Sec. 1113. Parity in establishment of wage schedules and rates for 
                      prevailing rate employees.
Sec. 1114. Modification of limitation on premium pay.
Sec. 1115. Participation of personnel in technical standards development 
                      activities.
Sec. 1116. Retention of travel promotional items.
Sec. 1117. Applicability of certain laws to certain individuals assigned 
                      to work in the Federal Government.

               Subtitle C--Intelligence Civilian Personnel

Sec. 1121. Authority to increase maximum number of positions in the 
                      Defense Intelligence Senior Executive Service.

               Subtitle D--Matters Relating to Retirement

Sec. 1131. Improved portability of retirement coverage for employees 
                      moving between civil service employment and 
                      employment by nonappropriated fund 
                      instrumentalities.
Sec. 1132. Federal employment retirement credit for nonappropriated fund 
                      instrumentality service.
Sec. 1133. Modification of limitations on exercise of voluntary 
                      separation incentive pay authority and voluntary 
                      early retirement authority.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

       Subtitle A--Matters Related to Arms Control and Monitoring

Sec. 1201. Clarification of authority to furnish nuclear test monitoring 
                      equipment to foreign governments.
Sec. 1202. Limitation on funding for Joint Data Exchange Center in 
                      Moscow.
Sec. 1203. Support of United Nations-sponsored efforts to inspect and 
                      monitor Iraqi weapons activities.
Sec. 1204. Authority for employees of Federal Government contractors to 
                      accompany chemical weapons inspection teams at 
                      Government-owned facilities.
Sec. 1205. Plan for securing nuclear weapons, material, and expertise of 
                      the states of the former Soviet Union.

   Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

Sec. 1211. Acquisition of logistical support for security forces.
Sec. 1212. Extension of authority for international cooperative research 
                      and development projects.
Sec. 1213. Cooperative agreements with foreign countries and 
                      international organizations for reciprocal use of 
                      test facilities.
Sec. 1214. Sense of Congress on allied defense burdensharing.

                           Subtitle C--Reports

Sec. 1221. Report on significant sales and transfers of military 
                      hardware, expertise, and technology to the 
                      People's Republic of China.

[[Page 115 STAT. 1022]]

Sec. 1222. Repeal of requirement for reporting to Congress on military 
                      deployments to Haiti.
Sec. 1223. Report by Comptroller General on provision of defense 
                      articles, services, and military education and 
                      training to foreign countries and international 
                      organizations.

   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. Limitation on use of funds until submission of reports.
Sec. 1304. Requirement to consider use of revenue generated by 
                      activities carried out under Cooperative Threat 
                      Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
                      material storage facility.
Sec. 1306. Prohibition against use of funds for certain construction 
                      activities.
Sec. 1307. Reports on activities and assistance under Cooperative Threat 
                      Reduction programs.
Sec. 1308. Chemical weapons destruction.
Sec. 1309. Additional matter in annual report on activities and 
                      assistance under Cooperative Threat Reduction 
                      programs.

                 TITLE XIV--ARMED FORCES RETIREMENT HOME

Sec. 1401. Amendment of Armed Forces Retirement Home Act of 1991.
Sec. 1402. Definitions.
Sec. 1403. Revision of authority establishing the Armed Forces 
                      Retirement Home.
Sec. 1404. Chief Operating Officer.
Sec. 1405. Residents of Retirement Home.
Sec. 1406. Local Boards of Trustees.
Sec. 1407. Directors, Deputy Directors, Associate Directors, and staff 
                      of facilities.
Sec. 1408. Disposition of effects of deceased persons and unclaimed 
                      property.
Sec. 1409. Transitional provisions.
Sec. 1410. Conforming and clerical amendments and repeals of obsolete 
                      provisions.

          TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

          Subtitle A--Increased Funding for Combating Terrorism

Sec. 1501. Definitions.
Sec. 1502. Authorization of emergency appropriations for fiscal year 
                      2001 made by Public Law 107-38 and allocated for 
                      national defense functions.
Sec. 1503. Authorization of emergency supplemental appropriations for 
                      fiscal year 2002.
Sec. 1504. Authorization of use of funds for military construction 
                      projects.
Sec. 1505. Treatment of transferred amounts.
Sec. 1506. Quarterly reports.

       Subtitle B--Policy Matters Relating to Combating Terrorism

Sec. 1511. Study and report on the role of the Department of Defense 
                      with respect to homeland security.
Sec. 1512. Combating Terrorism Readiness Initiatives Fund for combatant 
                      commands.
Sec. 1513. Conveyances of equipment and related materials loaned to 
                      State and local governments as assistance for 
                      emergency response to a use or threatened use of a 
                      weapon of mass destruction.
Sec. 1514. Two-year extension of advisory panel to assess domestic 
                      response capabilities for terrorism involving 
                      weapons of mass destruction.

                  TITLE XVI--UNIFORMED SERVICES VOTING

Sec. 1601. Sense of Congress regarding the importance of voting.
Sec. 1602. Voting assistance programs.
Sec. 1603. Guarantee of residency for military personnel.
Sec. 1604. Electronic voting demonstration project.
Sec. 1605. Governors' reports on implementation of recommendations for 
                      changes in State law made under Federal Voting 
                      Assistance Program.
Sec. 1606. Simplification of voter registration and absentee ballot 
                      application procedures for absent uniformed 
                      services and overseas voters.
Sec. 1607. Use of certain Department of Defense facilities as polling 
                      places.

[[Page 115 STAT. 1023]]

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title; definition.

                             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 
                      2001 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
                      2000 projects.

                            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 certain fiscal year 
                      2001 projects.
Sec. 2206. Modification of authority to carry out certain fiscal year 
                      2000 project.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
                      projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year 
                      2001 projects.

                      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. Cancellation of authority to carry out certain fiscal year 
                      2001 projects.
Sec. 2405. Modification of authority to carry out certain fiscal year 
                      2000 projects.
Sec. 2406. Modification of authority to carry out certain fiscal year 
                      1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
                      1995 project.
Sec. 2408. Prohibition on expenditures to develop forward operating 
                      location on Aruba.

   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 FACILITIES

Sec. 2601. Authorized guard and reserve construction and land 
                      acquisition projects.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                      specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1999 
                      projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1998 
                      projects.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in thresholds for certain unspecified minor military 
                      construction projects.
Sec. 2802. Exclusion of unforeseen environmental hazard remediation from 
                      limitation on authorized cost variations.
Sec. 2803. Repeal of annual reporting requirement on military 
                      construction and military family housing 
                      activities.
Sec. 2804. Funds for housing allowances of members assigned to military 
                      family housing under alternative authority for 
                      acquisition and improvement of military housing.
Sec. 2805. Extension of alternative authority for acquisition and 
                      improvement of military housing.

[[Page 115 STAT. 1024]]

Sec. 2806. Treatment of financing costs as allowable expenses under 
                      contracts for utility services from utility 
                      systems conveyed under privatization initiative.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Use of military installations for certain recreational 
                      activities.
Sec. 2812. Availability of proceeds of sales of Department of Defense 
                      property from certain closed military 
                      installations.
Sec. 2813. Pilot program to provide additional tools for efficient 
                      operation of military installations.
Sec. 2814. Demonstration program on reduction in long-term facility 
                      maintenance costs.
Sec. 2815. Base efficiency project at Brooks Air Force Base, Texas.

 Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

Sec. 2821. Lease back of base closure property.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, Whittier-Anchorage Pipeline Tank Farm, 
                      Anchorage, Alaska.
Sec. 2832. Lease authority, Fort Derussy, Hawaii.
Sec. 2833. Modification of land exchange, Rock Island Arsenal, Illinois.
Sec. 2834. Land conveyance, Fort Des Moines, Iowa.
Sec. 2835. Modification of land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyance, Engineer Proving Ground, Fort Belvoir, 
                      Virginia.
Sec. 2837. Land exchange and consolidation, Fort Lewis, Washington.
Sec. 2838. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.

                        Part II--Navy Conveyances

Sec. 2841. Transfer of jurisdiction, Centerville Beach Naval Station, 
                      Humboldt County, California.
Sec. 2842. Land conveyance, Port of Long Beach, California.
Sec. 2843. Conveyance of pier, Naval Base, San Diego, California.
Sec. 2844. Modification of authority for conveyance of Naval Computer 
                      and Telecommunications Station, Cutler, Maine.
Sec. 2845. Land transfer and conveyance, Naval Security Group Activity, 
                      Winter Harbor, Maine.
Sec. 2846. Land acquisition, Perquimans County, North Carolina.
Sec. 2847. Land conveyance, Naval Weapons Industrial Reserve Plant, 
                      Toledo, Ohio.
Sec. 2848. Modification of land conveyance, former United States Marine 
                      Corps Air Station, Eagle Mountain Lake, Texas.

                     Part III--Air Force Conveyances

Sec. 2851. Conveyance of avigation easements, former Norton Air Force 
                      Base, California.
Sec. 2852. Reexamination of land conveyance, Lowry Air Force Base, 
                      Colorado.
Sec. 2853. Water rights conveyance, Andersen Air Force Base, Guam.
Sec. 2854. Conveyance of segment of Loring petroleum pipeline, Maine, 
                      and related easements.
Sec. 2855. Land conveyance, petroleum terminal serving former Loring Air 
                      Force Base and Bangor Air National Guard Base, 
                      Maine.
Sec. 2856. Land conveyances, certain former Minuteman III ICBM 
                      facilities in North Dakota.
Sec. 2857. Land conveyances, Charleston Air Force Base, South Carolina.
Sec. 2858. Transfer of jurisdiction, Mukilteo Tank Farm, Everett, 
                      Washington.

                        Subtitle E--Other Matters

Sec. 2861. Management of the Presidio of San Francisco.
Sec. 2862. Transfer of jurisdiction for development of Air Force morale, 
                      welfare, and recreation facility, Park City, Utah.
Sec. 2863. Alternate site for United States Air Force Memorial, 
                      preservation of open space on Arlington Ridge 
                      tract, and related land transfer at Arlington 
                      National Cemetery, Virginia.
Sec. 2864. Establishment of memorial to victims of terrorist attack on 
                      Pentagon Reservation and authority to accept 
                      monetary contributions for memorial and repair of 
                      Pentagon.

[[Page 115 STAT. 1025]]

Sec. 2865. Repeal of limitation on cost of renovation of Pentagon 
                      Reservation.
Sec. 2866. Development of United States Army Heritage and Education 
                      Center at Carlisle Barracks, Pennsylvania.
Sec. 2867. Effect of limitation on construction of roads or highways, 
                      Marine Corps Base, Camp Pendleton, California.
Sec. 2868. Establishment of World War II memorial at additional location 
                      on Guam.
Sec. 2869. Demonstration project for purchase of fire, security, police, 
                      public works, and utility services from local 
                      government agencies.
Sec. 2870. Report on future land needs of United States Military 
                      Academy, New York, and adjacent community.
Sec. 2871. Naming of Patricia C. Lamar Army National Guard Readiness 
                      Center, Oxford, Mississippi.

             TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

Sec. 2901. Short title.
Sec. 2902. Withdrawal and reservation of lands for National Training 
                      Center.
Sec. 2903. Map and legal description.
Sec. 2904. Management of withdrawn and reserved lands.
Sec. 2905. Water rights.
Sec. 2906. Environmental compliance and environmental response 
                      requirements.
Sec. 2907. West Mojave Coordinated Management Plan.
Sec. 2908. Release of wilderness study areas.
Sec. 2909. Training activity separation from utility corridors.
Sec. 2910. Duration of withdrawal and reservation.
Sec. 2911. Extension of initial withdrawal and reservation.
Sec. 2912. Termination and relinquishment.
Sec. 2913. Delegation of authority.

    TITLE XXX--REALIGNMENT AND CLOSURE OF MILITARY INSTALLATIONS AND 
   PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS COMPLEX

Sec. 3001. Authorization of round of realignments and closures of 
                      military installations in 2005.
Sec. 3002. Selection criteria.
Sec. 3003. Revised procedures for making recommendations for 
                      realignments and closures and commission 
                      consideration of recommendations.
Sec. 3004. Limitations on privatization in place.
Sec. 3005. Department of Defense Base Closure Account 2005.
Sec. 3006. Implementation of closure and realignment decisions.
Sec. 3007. Technical and clarifying amendments.
Sec. 3008. Preparation of infrastructure plan for the nuclear weapons 
                      complex.

 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 minor construction 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. Transfer of defense environmental management funds.
Sec. 3130. Transfer of weapons activities funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Consolidation of Nuclear Cities Initiative program with 
                      Initiatives for Proliferation Prevention program.

[[Page 115 STAT. 1026]]

Sec. 3132. Nuclear Cities Initiative.
Sec. 3133. Limitation on availability of funds for weapons activities 
                      for facilities and infrastructure.
Sec. 3134. Limitation on availability of funds for other defense 
                      activities for national security programs 
                      administrative support.
Sec. 3135. Termination date of Office of River Protection, Richland, 
                      Washington.
Sec. 3136. Support for public education in the vicinity of Los Alamos 
                      National Laboratory, New Mexico.
Sec. 3137. Reports on achievement of milestones for National Ignition 
                      Facility.

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

Sec. 3141. Establishment of Principal Deputy Administrator of National 
                      Nuclear Security Administration.
Sec. 3142. Elimination of requirement that national security 
                      laboratories and nuclear weapons production 
                      facilities report to Deputy Administrator for 
                      Defense Programs.
Sec. 3143. Repeal of duplicative provision relating to dual office 
                      holding by personnel of National Nuclear Security 
                      Administration.
Sec. 3144. Report on adequacy of Federal pay and hiring authorities to 
                      meet personnel requirements of National Nuclear 
                      Security Administration.

                        Subtitle E--Other Matters

Sec. 3151. Improvements to Energy Employees Occupational Illness 
                      Compensation Program.
Sec. 3152. Department of Energy counterintelligence polygraph program.
Sec. 3153. One-year extension of authority of Department of Energy to 
                      pay voluntary separation incentive payments.
Sec. 3154. Annual assessment and report on vulnerability of Department 
                      of Energy facilities to terrorist attack.
Sec. 3155. Disposition of surplus defense plutonium at Savannah River 
                      Site, Aiken, South Carolina.
Sec. 3156. Modification of date of report of panel to assess the 
                      reliability, safety, and security of the United 
                      States nuclear stockpile.

            Subtitle F--Rocky Flats National Wildlife Refuge

Sec. 3171. Short title.
Sec. 3172. Findings and purposes.
Sec. 3173. Definitions.
Sec. 3174. Future ownership and management.
Sec. 3175. Transfer of management responsibilities and jurisdiction over 
                      Rocky Flats.
Sec. 3176. Administration of retained property; continuation of cleanup 
                      and closure.
Sec. 3177. Rocky Flats National Wildlife Refuge.
Sec. 3178. Comprehensive planning process.
Sec. 3179. Property rights.
Sec. 3180. Liabilities and other obligations.
Sec. 3181. Rocky Flats Museum.
Sec. 3182. Annual report on funding.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National Defense 
                      Stockpile.
Sec. 3304. Revision of limitations on required disposals of certain 
                      materials in National Defense Stockpile.
Sec. 3305. Acceleration of required disposal of cobalt in National 
                      Defense Stockpile.
Sec. 3306. Restriction on disposal of manganese ferro.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2002.
Sec. 3502. Define ``war risks'' to vessels to include confiscation, 
                      expropriation, nationalization, and deprivation of 
                      the vessels.
Sec. 3503. Holding obligor's cash as collateral under title XI of 
                      Merchant Marine Act, 1936.

[[Page 115 STAT. 1027]]

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.

            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.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense Health Program.

                        Subtitle B--Army Programs

Sec. 111. Repeal of limitations on bunker defeat munitions program.
Sec. 112. Extension of pilot program on sales of manufactured articles 
           and services of certain Army industrial facilities without 
           regard to availability from domestic sources.
Sec. 113. Limitations on acquisition of interim armored vehicles and 
           deployment of interim brigade combat teams.

                        Subtitle C--Navy Programs

Sec. 121. Virginia class submarine program.
Sec. 122. Multiyear procurement authority for F/A-18E/F aircraft 
           engines.
Sec. 123. V-22 Osprey aircraft program.
Sec. 124. Report on status of V-22 Osprey aircraft before resumption of 
           flight testing.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-17 aircraft.

               Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for procurement for the Army as follows:
            (1) For aircraft, $2,075,372,000.
            (2) For missiles, $1,086,954,000.
            (3) For weapons and tracked combat vehicles, $2,348,145,000.
            (4) For ammunition, $1,187,233,000.
            (5) For other procurement, $4,044,080,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for fiscal 
year 2002 for procurement for the Navy as follows:
            (1) For aircraft, $8,323,147,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,484,321,000.

[[Page 115 STAT. 1028]]

            (3) For shipbuilding and conversion, $9,370,972,000.
            (4) For other procurement, $4,282,471,000.

    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2002 for procurement for the Marine Corps in the amount 
of $1,014,637,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2002 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $466,907,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for procurement for the Air Force as follows:
            (1) For aircraft, $10,789,167,000.
            (2) For missiles, $3,222,636,000.
            (3) For ammunition, $881,844,000.
            (4) For other procurement, $8,196,021,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for Defense-wide procurement in the amount of $2,279,482,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for procurement for the Inspector General of the Department of Defense 
in the amount of $2,800,000.
SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

    There is hereby authorized to be appropriated for fiscal year 2002 
for the Department of Defense for Chemical Agents and Munitions 
Destruction, Defense, the amount of $1,153,557,000 for--
            (1) 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
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 107. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
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 $267,915,000.

                        Subtitle B--Army Programs

SEC. 111. REPEAL OF LIMITATIONS ON BUNKER DEFEAT MUNITIONS 
                        PROGRAM.

    Section 116 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2682) is repealed.

[[Page 115 STAT. 1029]]

SEC. 112. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED 
                        ARTICLES AND SERVICES OF CERTAIN ARMY 
                        INDUSTRIAL FACILITIES WITHOUT REGARD TO 
                        AVAILABILITY FROM DOMESTIC SOURCES.

    Section 141(a) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note) is amended--
            (1) by striking ``through 2001'' and inserting ``through 
        2002''; and
            (2) by inserting before the period at the end the following: 
        ``, except that during fiscal year 2002 the Secretary may only 
        use articles manufactured at, and services provided by, not more 
        than one Army industrial facility''.
SEC. 113. LIMITATIONS ON ACQUISITION OF INTERIM ARMORED VEHICLES 
                        AND DEPLOYMENT OF INTERIM BRIGADE COMBAT 
                        TEAMS.

    Section 113 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 
Stat. 1654A-23) is amended--
            (1) by redesignating subsection (f) as subsection (j); and
            (2) by inserting after subsection (e) the following new 
        subsections:

    ``(f) Waiver of Comparison Requirement.--The Secretary of Defense 
may waive subsections (c) and (e)(1) and submit to the congressional 
defense committees a certification under subsection (e)(2) without 
regard to the requirement in that subsection for the completion of a 
comparison of costs and operational effectiveness if the Secretary 
includes in the submittal a certification of each of the following:
            ``(1) That the results of executed tests and existing 
        analyses are sufficient for making a meaningful comparison of 
        the costs and operational effectiveness of the interim armored 
        vehicles referred to in subparagraph (A) of subsection (c)(1) 
        and the medium armored vehicles referred to in subparagraph (B) 
        of such subsection.
            ``(2) That the conduct of a comparative evaluation of those 
        vehicles in a realistic field environment would provide no 
        significant additional data relevant to that comparison.
            ``(3) That the Secretary has evaluated the existing data on 
        cost and operational effectiveness of those vehicles and, taking 
        that data into consideration, approves the obligation of funds 
        for the acquisition of additional interim armored vehicles.
            ``(4) That sufficient resources will be requested in the 
        future-years defense program to fully fund the Army's 
        requirements for interim brigade combat teams.
            ``(5) That the force structure resulting from the 
        establishment of the interim brigade combat teams and the 
        subsequent achievement of operational capability by those teams 
        will not diminish the combat power of the Army.

    ``(g) Experimentation Program.--The Secretary of the Army shall 
develop and provide resources for an experimentation program that will--
            ``(1) provide information as to the design of the objective 
        force; and

[[Page 115 STAT. 1030]]

            ``(2) include a formal linkage of the interim brigade combat 
        teams to that experimentation.

    ``(h) Operational Evaluation.--(1) The Secretary of the Army shall 
conduct an operational evaluation of the initial interim brigade combat 
team. The evaluation shall include deployment of the team to the 
evaluation site and team execution of combat missions across the full 
spectrum of potential threats and operational scenarios.
    ``(2) The operational evaluation under paragraph (1) may not be 
conducted until the plan for such evaluation is approved by the Director 
of Operational Test and Evaluation of the Department of Defense.
    ``(i) Limitation on Procurement of Interim Armored Vehicles and 
Deployment of IBCTs.--(1) The actions described in paragraph (2) may not 
be taken until the date that is 30 days after the date on which the 
Secretary of Defense--
            ``(A) <<NOTE: Reports.>> submits to Congress a report on the 
        operational evaluation carried out under subsection (h); and
            ``(B) <<NOTE: Certification.>> certifies to Congress that 
        the results of that operational evaluation indicate that the 
        design for the interim brigade combat team is operationally 
        effective and operationally suitable.

    ``(2) The limitation in paragraph (1) applies to the following 
actions:
            ``(A) Procurement of interim armored vehicles in addition to 
        those necessary for equipping the first three interim brigade 
        combat teams.
            ``(B) Deployment of any interim brigade combat team outside 
        the United States.

    ``(3) The Secretary of Defense may waive the applicability of 
paragraph (1) to a deployment described in paragraph (2)(B) if the 
Secretary--
            ``(A) determines that the deployment is in the national 
        security interests of the United States; and
            ``(B) submits to Congress, in writing, a notification of the 
        waiver together with a discussion of the reasons for the 
        waiver.''.

                        Subtitle C--Navy Programs

SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

    Section 123(b)(1) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-25) is amended--
            (1) by striking ``five Virginia class submarines'' and 
        inserting ``seven Virginia class submarines''; and
            (2) by striking ``2006'' and inserting ``2007''.
SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A-18E/F AIRCRAFT 
                        ENGINES.

    (a) Multiyear Authority.--Beginning with the 2002 program year, the 
Secretary of the Navy may, in accordance with section 2306b of title 10, 
United States Code, enter into a multiyear contract for the procurement 
of engines for F/A-18E/F aircraft.
    (b) Required Certifications.--In the case of a contract authorized 
by subsection (a) of this section, a certification under subsection 
(i)(1)(A) of section 2306b of title 10, United States Code,

[[Page 115 STAT. 1031]]

with respect to that contract may only be submitted if the certification 
includes an additional certification that each of the conditions 
specified in subsection (a) of that section has been satisfied with 
respect to that contract.
    (c) Congressional Notice-and-Wait Period.--Upon transmission to 
Congress of a certification referred to in subsection (b) with respect 
to a contract authorized by subsection (a), the contract may then be 
entered into only after a period of 30 days has elapsed after the date 
of the transmission of such certification.

SEC. 123. V-22 OSPREY AIRCRAFT PROGRAM.

    The production rate for V-22 Osprey aircraft may not be increased 
above the minimum sustaining production rate for which funds are 
authorized to be appropriated by this Act until the Secretary of Defense 
certifies to Congress that successful operational testing of the 
aircraft demonstrates that--
            (1) the solutions to the problems regarding the reliability 
        of hydraulic system components and flight control software that 
        were identified by the panel appointed by the Secretary of 
        Defense on January 5, 2001, to review the V-22 aircraft program 
        are adequate to achieve low risk for crews and passengers aboard 
        V-22 aircraft that are operating under operational conditions;
            (2) the V-22 aircraft can achieve reliability and 
        maintainability levels that are sufficient for the aircraft to 
        achieve operational availability at the level required for fleet 
        aircraft;
            (3) the V-22 aircraft will be operationally effective--
                    (A) when employed in operations with other V-22 
                aircraft; and
                    (B) when employed in operations with other types of 
                aircraft; and
            (4) the V-22 aircraft can be operated effectively, taking 
        into consideration the downwash effects inherent in the 
        operation of the aircraft, when the aircraft--
                    (A) is operated in remote areas with unimproved 
                terrain and facilities;
                    (B) is deploying and recovering personnel--
                          (i) while hovering within the zone of ground 
                      effect; and
                          (ii) while hovering outside the zone of ground 
                      effect; and
                    (C) is operated with external loads.
SEC. 124. REPORT ON STATUS OF V-22 OSPREY AIRCRAFT BEFORE 
                        RESUMPTION OF FLIGHT TESTING.

    Not <<NOTE: Deadline.>> later than 30 days before the resumption of 
flight testing of the V-22 Osprey aircraft, the Secretary of Defense 
shall submit to Congress a report containing the following:
            (1) A comprehensive description of the status of the 
        hydraulics system and flight control software of the V-22 Osprey 
        aircraft, including--
                    (A) a description and analysis of any deficiencies 
                in the hydraulics system and flight control software of 
                the V-22 Osprey aircraft; and
                    (B) a description and assessment of the actions 
                taken to redress each such deficiency.

[[Page 115 STAT. 1032]]

            (2) A description of the current actions, and any proposed 
        actions, of the Department of Defense to implement the 
        recommendations of the panel appointed by the Secretary of 
        Defense on January 5, 2001, to review the V-22 aircraft program.
            (3) An assessment of the recommendations of the National 
        Aeronautics and Space Administration on tiltrotor aeromechanics 
        provided in a briefing to the Undersecretary of Defense for 
        Acquisition, Logistics, and Technology on August 14, 2001.
            (4) Notice of the waiver, if any, of any item capability or 
        any other requirement specified in the Joint Operational 
        Requirements Document for the V-22 Osprey aircraft, including a 
        justification of each such waiver.

                     Subtitle D--Air Force Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 AIRCRAFT.

    (a) Multiyear Authority.--Beginning with the 2002 program year, the 
Secretary of the Air Force may enter into a multiyear contract for the 
procurement of up to 60 C-17 aircraft. Such a contract shall be entered 
into in accordance with section 2306b of title 10, United States Code, 
except that, notwithstanding subsection (k) of such section, such a 
contract may be for a period of six program years.
    (b) Required Certifications.--In the case of a contract authorized 
by subsection (a) of this section, a certification under subsection 
(i)(1)(A) of section 2306b of title 10, United States Code, with respect 
to that contract may only be submitted if the certification includes an 
additional certification that each of the conditions specified in 
subsection (a) of that section has been satisfied with respect to that 
contract.
    (c) Congressional Notice-and-Wait Period.--Upon transmission to 
Congress of a certification referred to in subsection (b) with respect 
to a contract authorized by subsection (a), the contract may then be 
entered into only after a period of 30 days has elapsed after the date 
of the transmission of such certification.

          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.
Sec. 203. Supplemental authorization of appropriations for fiscal year 
           2001 for research, development, test, and evaluation, 
           Defense-wide.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Naval surface fire support assessment.
Sec. 212. Collaborative program for development of advanced radar 
           systems.
Sec. 213. Repeal of limitations on total cost of engineering and 
           manufacturing development for F-22 aircraft program.
Sec. 214. Joint biological defense program.
Sec. 215. Cooperative Department of Defense-Department of Veterans 
           Affairs medical research program.
Sec. 216. C-5 aircraft reliability enhancement and reengining program.

[[Page 115 STAT. 1034]]

                  Subtitle C--Ballistic Missile Defense

Sec. 231. Transfer of responsibility for procurement for missile defense 
           programs from Ballistic Missile Defense Organization to 
           military departments.
Sec. 232. Program elements for Ballistic Missile Defense Organization.
Sec. 233. Support of ballistic missile defense activities of the 
           Department of Defense by the national defense laboratories of 
           the Department of Energy.
Sec. 234. Missile defense testing initiative.
Sec. 235. Construction of test bed facilities for missile defense 
           system.

    Subtitle D--Air Force Science and Technology for the 21st Century

Sec. 251. Short title.
Sec. 252. Science and technology investment and development planning.
Sec. 253. Study and report on effectiveness of Air Force science and 
           technology program changes.

                        Subtitle E--Other Matters

Sec. 261. Establishment of unmanned aerial vehicle joint operational 
           test bed system.
Sec. 262. Demonstration project to increase small business and 
           university participation in Office of Naval Research efforts 
           to extend benefits of science and technology research to 
           fleet.
Sec. 263. Communication of safety concerns from operational test and 
           evaluation officials to program managers.

               Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $6,675,325,000.
            (2) For the Navy, $10,784,264,000.
            (3) For the Air Force, $14,407,187,000.
            (4) For Defense-wide activities, $14,593,995,000, of which 
        $221,355,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 2002.--Of the amounts authorized to be appropriated 
by section 201, $5,070,605,000 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.
SEC. 203. SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS FOR FISCAL 
                        YEAR 2001 FOR RESEARCH, DEVELOPMENT, TEST, 
                        AND EVALUATION, DEFENSE-WIDE.

    In addition to the funds authorized to be appropriated under section 
201(4) of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 
1654A-32), there is hereby authorized to be appropriated $1,000,000 for 
fiscal year 2001 for the use of the Department of Defense for research, 
development, test, and evaluation, for Defense-wide activities.

[[Page 115 STAT. 1034]]

     Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. NAVAL SURFACE FIRE SUPPORT ASSESSMENT.

    (a) Assessment Required.--The Secretary of Defense shall carry out 
an assessment of the requirements for naval surface fire support of 
ground forces operating in the littoral environment, including the role 
of an advanced fire support missile system for Navy combatant vessels. 
The matters assessed shall include the Secretary of the Navy's program 
plan, schedule, and funding for meeting such requirements.
    (b) Report.--Not <<NOTE: Deadline.>> later than March 31, 2002, the 
Secretary of Defense shall submit to the congressional defense 
committees a report containing the results of the assessment required by 
subsection (a).
SEC. 212. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF ADVANCED RADAR 
                        SYSTEMS.

    (a) Program Required.--The Secretary of Defense shall carry out a 
program to develop and demonstrate advanced technologies and concepts 
leading to advanced radar systems for naval and other applications.
    (b) Description of Program.--The program under subsection (a) shall 
be carried out collaboratively by the Director of Defense Research and 
Engineering, the Secretary of the Navy, the Director of the Defense 
Advanced Research Projects Agency, and other appropriate elements of the 
Department of Defense. The program shall include the following 
activities:
            (1) Activities needed for development and maturation of the 
        technologies for advanced electronics materials to extend the 
        range and sensitivity of radars.
            (2) Identification of acquisition systems for use of the new 
        technology.

    (c) Report.--Not <<NOTE: Deadline.>> later than March 31, 2002, the 
Director of Defense Research and Engineering shall submit to the 
congressional defense committees a report on the implementation of the 
program under subsection (a). The report shall include the following:
            (1) A description of the management plan for the program and 
        any agreements relating to that plan.
            (2) A schedule for the program.
            (3) Identification of the funding required for fiscal year 
        2003 and for the future-years defense program to carry out the 
        program.
            (4) A list of program capability goals and objectives.
SEC. 213. REPEAL OF LIMITATIONS ON TOTAL COST OF ENGINEERING AND 
                        MANUFACTURING DEVELOPMENT FOR F-22 
                        AIRCRAFT PROGRAM.

    (a) Repeal.--The following provisions of law are repealed:
            (1) Section 217(a) of the National Defense Authorization Act 
        for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1660).
            (2) Section 8125 of the Department of Defense Appropriations 
        Act, 2001 (Public Law 106-259; 114 Stat. 702).
            (3) Section 219(b) of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into law by 
        Public Law 106-398; 114 Stat. 1654A-38).

[[Page 115 STAT. 1035]]

    (b) Conforming Amendments.--(1) Section 217 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1660), as amended by subsection (a)(1), is further amended--
            (A) in subsection (c)--
                    (i) by striking ``limitations set forth in 
                subsections (a) and (b)'' and inserting ``limitation set 
                forth in subsection (b)''; and
                    (ii) by striking paragraph (3); and
            (B) in subsection (d)(2), by striking subparagraphs (D) and 
        (E).

    (2) Section 131 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 536) is amended--
            (A) in subsection (a)(2), by striking ``That the'' and all 
        that follows through ``respectively,'' and inserting ``That the 
        production phase for that program can be executed within the 
        limitation on total cost applicable to that program under 
        subsection (b)''; and
            (B) in subsection (b)(3), by striking ``for the remainder of 
        the engineering and manufacturing development phase and''.

SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

    Section 217(a) of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 
Stat. 1654A-36) is amended by striking ``funds authorized to be 
appropriated by this Act may not'' and inserting ``no funds authorized 
to be appropriated to the Department of Defense for fiscal year 2002 
may''.
SEC. 215. COOPERATIVE DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS 
                        AFFAIRS MEDICAL RESEARCH PROGRAM.

    Of the funds authorized to be appropriated by section 201(4), 
$2,500,000 shall be available for the cooperative Department of Defense/
Department of Veterans Affairs medical research program. 
The <<NOTE: Deadline.>> Secretary of Defense shall transfer such amount 
to the Secretary of Veterans Affairs for such purpose not later than 30 
days after the date of the enactment of this Act.
SEC. 216. C-5 AIRCRAFT RELIABILITY ENHANCEMENT AND REENGINING 
                        PROGRAM.

    (a) Kit Development.--The Secretary of the Air Force shall ensure 
that engineering manufacturing and development under the C-5 aircraft 
reliability enhancement and reengining program includes kit development 
for at least one C-5A aircraft.
    (b) Aircraft To Be Used for Kit Development.--The C-5A aircraft to 
be used for purposes of the kit development under subsection (a) shall 
be an aircraft from among the 74 C-5A aircraft of the Air Force.

                  Subtitle C--Ballistic Missile Defense

SEC. 231. TRANSFER OF RESPONSIBILITY FOR PROCUREMENT FOR MISSILE 
                        DEFENSE PROGRAMS FROM BALLISTIC MISSILE 
                        DEFENSE ORGANIZATION TO MILITARY 
                        DEPARTMENTS.

    (a) Budgeting of Missile Defense Procurement Authority.--Section 224 
of title 10, United States Code is amended--

[[Page 115 STAT. 1036]]

            (1) in subsection (a), by striking ``procurement'' both 
        places it appears and inserting ``research, development, test, 
        and evaluation''; and
            (2) by striking subsections (b) and (c) and inserting the 
        following:

    ``(b) Transfer Criteria.--(1) The Secretary of Defense shall 
establish criteria for the transfer of responsibility for a ballistic 
missile defense program from the Director of the Ballistic Missile 
Defense Organization to the Secretary of a military department. The 
criteria established for such a transfer shall, at a minimum, address 
the following:
            ``(A) The technical maturity of the program.
            ``(B) The availability of facilities for production.
            ``(C) The commitment of the Secretary of the military 
        department concerned to procurement funding for that program, as 
        shown by funding through the future-years defense program and 
        other defense planning documents.

    ``(2) The Secretary shall submit the criteria established, and any 
modifications to those criteria, to the congressional defense 
committees.
    ``(c) Notification of Transfer.--Before responsibility for a 
ballistic missile defense program is transferred from the Director of 
the Ballistic Missile Defense Organization to the Secretary of a 
military department, the Secretary of Defense shall submit to the 
congressional defense committees notice in writing of the Secretary's 
intent to make that transfer. The Secretary shall include with such 
notice a certification that the program has met the criteria established 
under subsection (b) for such a transfer. The transfer may then be 
carried out after the end of the 60-day period beginning on the date of 
such notice.
    ``(d) Conforming Budget and Planning Transfers.--When a ballistic 
missile defense program is transferred from the Ballistic Missile 
Defense Organization to the Secretary of a military department in 
accordance with this section, the Secretary of Defense shall ensure that 
all appropriate conforming changes are made to proposed or projected 
funding allocations in the future-years defense program under section 
221 of this title and other Department of Defense program, budget, and 
planning documents.
    ``(e) Follow-on Research, Development, Test, and Evaluation.--The 
Secretary of Defense shall ensure that, before a ballistic missile 
defense program is transferred from the Director of the Ballistic 
Missile Defense Organization to the Secretary of a military department, 
roles and responsibilities for research, development, test, and 
evaluation related to system improvements for that program are clearly 
defined.
    ``(f) Congressional Defense Committees.--In this section, the term 
`congressional defense committees' means the following:
            ``(1) The Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
            ``(2) The Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.''.

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

[[Page 115 STAT. 1037]]

``Sec. 224. Ballistic missile defense programs: display of amounts 
                  for research, development, test, and 
                  evaluation''.

    (2) The item relating to that section in the table of sections at 
the beginning of chapter 9 of such title is amended to read as follows:
``224. Ballistic missile defense programs: display of amounts for 
          research, development, test, and evaluation.''.
SEC. 232. PROGRAM ELEMENTS FOR BALLISTIC MISSILE DEFENSE 
                        ORGANIZATION.

    (a) Revision in Program Elements.--Subsection (a) of section 223 of 
title 10, United States Code, is amended--
            (1) by striking ``in accordance with the following program 
        elements:'' and inserting ``in accordance with program elements 
        governing functional areas as follows:''; and
            (2) by striking paragraphs (1) through (12) and inserting 
        the following:
            ``(1) Technology.
            ``(2) Ballistic Missile Defense System.
            ``(3) Terminal Defense Segment.
            ``(4) Midcourse Defense Segment.
            ``(5) Boost Defense Segment.
            ``(6) Sensors Segment.''.

    (b) Additional Requirements.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Separate Program Elements for Programs Entering Engineering 
and Manufacturing Development.--(1) The Secretary of Defense shall 
ensure that each ballistic missile defense program that enters 
engineering and manufacturing development is assigned a separate, 
dedicated program element.
    ``(2) In this subsection, the term `engineering and manufacturing 
development' means the development phase whose primary objectives are 
to--
            ``(A) translate the most promising design approach into a 
        stable, interoperable, producible, supportable, and cost-
        effective design;
            ``(B) validate the manufacturing or production process; and
            ``(C) demonstrate system capabilities through testing.''.

    (c) Requirement <<NOTE: 10 USC 2431 note.>> for Annual Program 
Goals.--(1) The Secretary of Defense shall each year establish cost, 
schedule, testing, and performance goals for the ballistic missile 
defense programs of the Department of Defense for the period covered by 
the future-years defense program that is submitted to Congress that year 
under section 221 of title 10, United States 
Code. <<NOTE: Deadline.>> Not later than February 1 each year, the 
Secretary shall submit to the congressional defense committees a 
statement of the goals so established.

    (2) The statement of goals submitted under paragraph (1) for any 
year after 2002 shall be an update of the statement submitted under that 
paragraph for the preceding year.
    (3) Each statement of goals submitted under paragraph (1) shall set 
forth cost, schedule, testing, and performance goals that pertain to 
each functional area program element identified in subsection (a), and 
each program element identified in subsection (b), of section 223 of 
title 10, United States Code.
    (d) Annual <<NOTE: 10 USC 2431 note.>> Program Plan.--(1) With the 
submission of the statement of goals under subsection (c) for any year, 
the Secretary

[[Page 115 STAT. 1038]]

of Defense shall submit to the congressional defense committees a 
program of activities planned to be carried out for each missile defense 
program that enters engineering and manufacturing development (as 
defined in section 223(b)(2) of title 10, United States Code, as added 
by subsection (b)).

    (2) Each program plan under paragraph (1) shall include the 
following:
            (A) A funding profile that includes an estimate of--
                    (i) the total expenditures to be made in the fiscal 
                year in which the plan is submitted and the following 
                fiscal year, together with the estimated total life-
                cycle costs of the program; and
                    (ii) a display of such expenditures (shown for 
                significant procurement, construction, and research and 
                development) for the fiscal year in which the plan is 
                submitted and the following fiscal year.
            (B) A program schedule for the fiscal year in which the plan 
        is submitted and the following fiscal year for each of the 
        following:
                    (i) Significant procurement.
                    (ii) Construction.
                    (iii) Research and development.
                    (iv) Flight tests.
                    (v) Other significant testing activities.

    (3) Information specified in paragraph (2) need not be included in 
the plan for any year under paragraph (1) to the extent such information 
has already been provided, or will be provided in the current fiscal 
year, in annual budget justification documents of the Department of 
Defense submitted to Congress or in other required reports to Congress.
    (e) Internal <<NOTE: 10 USC 2431 note.>> DOD Reviews.--(1) The 
officials and elements of the Department of Defense specified in 
paragraph (2) shall on an ongoing basis--
            (A) review the development of goals under subsection (c) and 
        the annual program plan under subsection (d); and
            (B) provide to the Secretary of Defense and the Director of 
        the Ballistic Missile Defense Organization any comments on such 
        matters as considered appropriate.

    (2) Paragraph (1) applies with respect to the following:
            (A) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            (B) The Director of Operational Test and Evaluation.
            (C) The Director of Program Analysis and Evaluation.
            (D) The Joint Requirements Oversight Council.
            (E) The Cost Analysis and Improvement Group.

    (f) Demonstration <<NOTE: 10 USC 2431 note.>> of Critical 
Technologies.--(1) The Director of the Ballistic Missile Defense 
Organization shall develop a plan for ensuring that each critical 
technology for a missile defense program is successfully demonstrated in 
an appropriate environment before that technology enters into 
operational service as part of a missile defense program.

    (2) The Director of Operational Test and Evaluation of the 
Department of Defense shall monitor the development of the plan under 
paragraph (1) and shall submit to the Director of the Ballistic Missile 
Defense Organization any comments regarding that plan that the Director 
of Operational Test and Evaluation considers appropriate.

[[Page 115 STAT. 1039]]

    (g) Comptroller <<NOTE: 10 USC 2431 note.>> General Assessment.--(1) 
At the conclusion of each of fiscal years 2002 and 2003, the Comptroller 
General of the United States shall assess the extent to which the 
Ballistic Missile Defense Organization achieved the goals established 
under subsection (c) for such fiscal year.

    (2) <<NOTE: Deadlines. Reports.>> Not later than February 15, 2003, 
and February 15, 2004, the Comptroller General shall submit to the 
congressional defense committees a report on the Comptroller General's 
assessment under paragraph (1) with respect to the preceding fiscal 
year.

    (h) Annual <<NOTE: 10 USC 2431 note.>> OT&E Assessment of Test 
Program.--(1) The Director of Operational Test and Evaluation shall each 
year assess the adequacy and sufficiency of the Ballistic Missile 
Defense Organization test program during the preceding fiscal year.

    (2) <<NOTE: Deadline. Reports.>> Not later than February 15 each 
year the Director shall submit to the congressional defense committees a 
report on the assessment under paragraph (1) with respect to the 
preceding fiscal year.
SEC. 233. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF THE 
                        DEPARTMENT OF DEFENSE BY THE NATIONAL 
                        DEFENSE LABORATORIES OF THE DEPARTMENT OF 
                        ENERGY.

    (a) Funds To Carry Out Certain Ballistic Missile Defense 
Activities.--Of the amounts authorized to be appropriated to the 
Department of Defense pursuant to section 201(4), $25,000,000 shall be 
available, subject to subsection (b) and at the discretion of the 
Director of the Ballistic Missile Defense Organization, for research, 
development, and demonstration activities at the national laboratories 
of the Department of Energy in support of the missions of the Ballistic 
Missile Defense Organization, including the following activities:
            (1) Technology development, concept demonstration, and 
        integrated testing to enhance performance, reduce risk, and 
        improve reliability in hit-to-kill interceptors for ballistic 
        missile defense.
            (2) Support for science and engineering teams to assess 
        critical technical problems and prudent alternative approaches 
        as agreed upon by the Director of the Ballistic Missile Defense 
        Organization and the Administrator for Nuclear Security.

    (b) Requirement for Matching Funds From NNSA.--Funds shall be 
available as provided in subsection (a) only if the Administrator for 
Nuclear Security makes available matching funds for the activities 
referred to in subsection (a).
    (c) Memorandum of Understanding.--The activities referred to in 
subsection (a) shall be carried out under the memorandum of 
understanding entered into by the Secretary of Energy and the Secretary 
of Defense for the use of national laboratories for ballistic missile 
defense programs, as required by section 3131 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
2034) and modified pursuant to section 3132 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as enacted into 
law by Public Law 106-398; 114 Stat. 1654A-455) to provide for jointly 
funded projects.

SEC. 234. <<NOTE: 10 USC 2431 note.>> MISSILE DEFENSE TESTING 
            INITIATIVE.

    (a) Testing Infrastructure.--(1) The Secretary of Defense shall 
ensure that each annual budget request of the Department of Defense--

[[Page 115 STAT. 1040]]

            (A) is designed to provide for comprehensive testing of 
        ballistic missile defense programs during early stages of 
        development; and
            (B) includes necessary funding to support and improve test 
        infrastructure and provide adequate test assets for the testing 
        of such programs.

    (2) The Secretary shall ensure that ballistic missile defense 
programs incorporate, to the greatest possible extent, operationally 
realistic test configurations (referred to as ``test bed'' 
configurations) to demonstrate system performance across a broad range 
of capability and, during final stages of operational testing, to 
demonstrate reliable performance.
    (3) The Secretary shall ensure that the test infrastructure for 
ballistic missile defense programs is capable of supporting continued 
testing of ballistic missile defense systems after deployment.
    (b) Requirements for Early Stages of System Development.--In order 
to demonstrate acceptable risk and developmental stability, the 
Secretary of Defense shall ensure that any ballistic missile defense 
program incorporates, to the maximum extent practicable, the following 
elements during the early stages of system development:
            (1) Pursuit of parallel conceptual approaches and 
        technological paths for all critical problematic components 
        until effective and reliable solutions can be demonstrated.
            (2) Comprehensive ground testing in conjunction with flight-
        testing for key elements of the proposed system that are 
        considered to present high risk, with such ground testing to 
        make use of existing facilities and combinations of facilities 
        that support testing at the highest possible levels of 
        integration.
            (3) Where appropriate, expenditures to enhance the 
        capabilities of existing test facilities, or to construct new 
        test facilities, to support alternative complementary test 
        methodologies.
            (4) Sufficient funding of test instrumentation to ensure 
        accurate measurement of all critical test events.
            (5) Incorporation into the program of sufficient schedule 
        flexibility and expendable test assets, including missile 
        interceptors and targets, to ensure that failed or aborted tests 
        can be repeated in a prudent, but expeditious manner.
            (6) Incorporation into flight-test planning for the program, 
        where possible, of--
                    (A) methods that make the most cost-effective use of 
                test opportunities;
                    (B) events to demonstrate engagement of multiple 
                targets, ``shoot-look-shoot'', and other planned 
                operational concepts; and
                    (C) exploitation of opportunities to facilitate 
                early development and demonstration of ``family of 
                systems'' concepts.

    (c) Specific Requirements for Ground-Based Mid-Course Interceptor 
Systems.--For ground-based mid-course interceptor systems, the Secretary 
of Defense shall initiate steps during fiscal year 2002 to establish a 
flight-test capability of launching not less than three missile defense 
interceptors and not less than two ballistic missile targets to provide 
a realistic test infrastructure.

[[Page 115 STAT. 1041]]

SEC. 235. CONSTRUCTION OF TEST BED FACILITIES FOR MISSILE DEFENSE 
                        SYSTEM.

    (a) Authority To Acquire or Construct Facilities.--(1) The Secretary 
of Defense, using funds appropriated to the Department of Defense for 
research, development, test, and evaluation for fiscal years after 
fiscal year 2001 that are available for programs of the Ballistic 
Missile Defense Organization, may carry out all construction projects, 
or portions of construction projects, including projects for the 
acquisition, improvement, or construction of facilities, necessary to 
establish and operate the Missile Defense System Test Bed.
    (2) The authority provided in subsection (a) may be used to acquire, 
improve, or construct facilities at a total cost not to exceed 
$500,000,000.
    (b) Authority To Provide Assistance to Local Communities.--(1) 
Subject to paragraph (2), the Secretary of Defense, using funds 
appropriated to the Department of Defense for research, development, 
test, and evaluation for fiscal year 2002 that are available for 
programs of the Ballistic Missile Defense Organization, may provide 
assistance to local communities to meet the need for increased municipal 
or community services or facilities resulting from the construction, 
installation, or operation of the Missile Defense System Test Bed 
Facilities. Such assistance may be provided by grant or otherwise.
    (2) Assistance may be provided to a community under paragraph (1) 
only if the Secretary of Defense determines that there is an immediate 
and substantial increase in the need for municipal or community services 
or facilities as a direct result of the construction, installation, or 
operation of the Missile Defense System Test Bed Facilities.

 Subtitle D--Air <<NOTE: Air Force Science and Technology for the 21st 
Century Act.>> Force Science and Technology for the 21st Century

SEC. 251. <<NOTE: 10 USC 2501 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Air Force Science and Technology 
for the 21st Century Act''.
SEC. 252. SCIENCE <<NOTE: 10 USC 2501 note.>> AND TECHNOLOGY 
                        INVESTMENT AND DEVELOPMENT PLANNING.

    (a) Sense of Congress.--It is the sense of Congress that the 
Secretary of the Air Force should carry out each of the following:
            (1) Continue and improve efforts to ensure that--
                    (A) the Air Force science and technology community 
                is represented, and the recommendations of that 
                community are considered, at all levels of program 
                planning and budgetary decisionmaking within the Air 
                Force;
                    (B) advocacy for science and technology development 
                is institutionalized across all levels of Air Force 
                management in a manner that is not dependent on 
                individuals; and
                    (C) the value of Air Force science and technology 
                development is made increasingly apparent to the 
                warfighters, by linking the needs of those warfighters 
                with decisions on science and technology development.

[[Page 115 STAT. 1042]]

            (2) Complete and adopt a policy directive that provides for 
        changes in how the Air Force makes budgetary and nonbudgetary 
        decisions with respect to its science and technology development 
        programs and how it carries out those programs.
            (3) At least once every five years, conduct a review of the 
        long-term challenges and short-term objectives of the Air Force 
        science and technology programs that is consistent with the 
        review specified in section 252 of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001 (as enacted into 
        law by Public Law 106-398; 114 Stat. 1654A-46).
            (4) Ensure that development and science and technology 
        planning and investment activities are carried out for future 
        space warfighting systems and for future nonspace warfighting 
        systems in an integrated manner.
            (5) Elevate the position within the Office of the Secretary 
        of the Air Force that has primary responsibility for budget and 
        policy decisions for science and technology programs.

    (b) Reinstatement of Development Planning.--(1) The Secretary of the 
Air Force shall reinstate and implement a revised development planning 
process that provides for each of the following:
            (A) Coordinating the needs of Air Force warfighters with 
        decisions on science and technology development.
            (B) Giving input into the establishment of priorities among 
        science and technology programs.
            (C) Analyzing Air Force capability options for the 
        allocation of Air Force resources.
            (D) Developing concepts for technology, warfighting systems, 
        and operations with which the Air Force can achieve its critical 
        future goals.
            (E) Evaluating concepts for systems and operations that 
        leverage technology across Air Force organizational boundaries.
            (F) Ensuring that a ``system-of-systems'' approach is used 
        in carrying out the various Air Force capability planning 
        exercises.
            (G) Utilizing existing analysis capabilities within the Air 
        Force product centers in a collaborative and integrated manner.

    (2) <<NOTE: Deadline. Reports.>> Not later than one year after the 
date of the enactment of this Act, the Secretary of the Air Force shall 
submit to Congress a report on the implementation of the planning 
process required by paragraph (1). The report shall include the annual 
amount that the Secretary considers necessary to carry out paragraph 
(1).
SEC. 253. STUDY <<NOTE: 10 USC 2501 note.>> AND REPORT ON 
                        EFFECTIVENESS OF AIR FORCE SCIENCE AND 
                        TECHNOLOGY PROGRAM CHANGES.

    (a) Requirement.--The Secretary of the Air Force, in cooperation 
with the National Research Council of the National Academy of Sciences, 
shall carry out a study to determine how the changes to the Air Force 
science and technology program implemented during the past two years 
affect the future capabilities of the Air Force.
    (b) Matters Studied.--(1) The study shall review and assess whether 
such changes as a whole are sufficient to ensure the following:
            (A) That the concerns about the management of the science 
        and technology program that have been raised by Congress,

[[Page 115 STAT. 1043]]

        the Defense Science Board, the Air Force Science Advisory Board, 
        and the Air Force Association have been adequately addressed.
            (B) That appropriate and sufficient technology is available 
        to ensure the military superiority of the United States and 
        counter future high-risk threats.
            (C) That the science and technology investments are balanced 
        to meet the near-, mid-, and long-term needs of the Air Force.
            (D) That technologies are made available that can be used to 
        respond flexibly and quickly to a wide range of future threats.
            (E) That the Air Force organizational structure provides for 
        a sufficiently senior level advocate of science and technology 
        to ensure an ongoing, effective presence of the science and 
        technology community during the budget and planning process.

    (2) In addition, the study shall assess the specific changes to the 
Air Force science and technology program as follows:
            (A) Whether the biannual science and technology summits 
        provide sufficient visibility into, and understanding and 
        appreciation of, the value of the science and technology program 
        to the senior level of Air Force budget and policy 
        decisionmakers.
            (B) Whether the applied technology councils are effective in 
        contributing the input of all levels beneath the senior 
        leadership into the coordination, focus, and content of the 
        science and technology program.
            (C) Whether the designation of the commander of the Air 
        Force Materiel Command as the science and technology budget 
        advocate is effective to ensure that an adequate Air Force 
        science and technology budget is requested.
            (D) Whether the revised development planning process is 
        effective to aid in the coordination of the needs of the Air 
        Force warfighters with decisions on science and technology 
        investments and the establishment of priorities among different 
        science and technology programs.
            (E) Whether the implementation of section 252 of the Floyd 
        D. Spence National Defense Authorization Act for Fiscal Year 
        2001 (as enacted into law by Public Law 106-398; 114 Stat. 
        1654A-46) is effective to identify the basis for the appropriate 
        science and technology program funding level and investment 
        portfolio.

    (c) Report.--Not <<NOTE: Deadline.>> later than May 1, 2003, the 
Secretary of the Air Force shall submit to Congress the results of the 
study.

                        Subtitle E--Other Matters

SEC. 261. ESTABLISHMENT OF UNMANNED AERIAL VEHICLE JOINT 
                        OPERATIONAL TEST BED SYSTEM.

    (a) Establishment of Test Bed System.--The commander of the United 
States Joint Forces Command shall establish a government flight activity 
capability (referred to as a ``test bed'') within the facilities and 
resources of that command to evaluate and ensure joint interoperability 
of unmanned aerial vehicle systems. That capability shall be independent 
of the military departments and shall be managed directly by the Joint 
Forces Command.

[[Page 115 STAT. 1044]]

    (b) Priority for Use of Predator Assets.--The Secretary of the Navy 
shall ensure that the commander of the United States Joint Forces 
Command controls the priority for use of the two Predator unmanned 
aerial vehicles currently undergoing operational testing by the Navy, 
together with associated payloads and antennas and the associated 
tactical control system (TCS) ground station.
    (c) Use by Joint Forces Command.--The items specified to in 
subsection (b) may be used by the commander of the United States Joint 
Forces Command only through the independent joint operational test bed 
system established pursuant to subsection (a) for testing of those 
items, including further development of the associated tactical control 
system (TCS) ground station, other aspects of unmanned aerial vehicle 
interoperability, and participation in such experiments and exercises as 
the commander considers appropriate to the mission of that command.
SEC. 262. DEMONSTRATION <<NOTE: 10 USC 5022 note.>> PROJECT TO 
                        INCREASE SMALL BUSINESS AND UNIVERSITY 
                        PARTICIPATION IN OFFICE OF NAVAL RESEARCH 
                        EFFORTS TO EXTEND BENEFITS OF SCIENCE AND 
                        TECHNOLOGY RESEARCH TO FLEET.

    (a) Project Required.--The Secretary of the Navy, acting through the 
Chief of Naval Research, shall carry out a demonstration project to 
increase access to Navy facilities of small businesses and universities 
that are engaged in science and technology research beneficial to the 
fleet.
    (b) Project Elements.--In carrying out the demonstration project, 
the Secretary shall--
            (1) establish and operate a Navy Technology Extension Center 
        at a location to be selected by the Secretary;
            (2) permit participants in the Small Business Innovation 
        Research Program (SBIR) and Small Business Technology Transfer 
        Program (STTR) that are awarded contracts by the Office of Naval 
        Research to access and use Navy Major Range Test Facilities Base 
        (MRTFB) facilities selected by the Secretary for purposes of 
        carrying out such contracts, and charge such participants for 
        such access and use at the same established rates that 
        Department of Defense customers are charged; and
            (3) permit universities, institutions of higher learning, 
        and federally funded research and development centers 
        collaborating with participants referred to in paragraph (2) to 
        access and use such facilities for such purposes, and charge 
        such entities for such access and use at such rates.

    (c) Period of Project.--The demonstration project shall be carried 
out during the three-year period beginning on the date of the enactment 
of this Act.
    (d) Report.--Not <<NOTE: Deadline.>> later than February 1, 2004, 
the Secretary shall submit to Congress a report on the demonstration 
project. The report shall include a description of the activities 
carried out under the demonstration project and any recommendations for 
the improvement or expansion of the demonstration project that the 
Secretary considers appropriate.
SEC. 263. COMMUNICATION OF SAFETY CONCERNS FROM OPERATIONAL TEST 
                        AND EVALUATION OFFICIALS TO PROGRAM 
                        MANAGERS.

    Section 139 of title 10, United States Code, is amended--

[[Page 115 STAT. 1045]]

            (1) by redesignating subsections (f) through (i) as 
        subsections (g) through (j), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection:

    ``(f) The Director shall ensure that safety concerns developed 
during the operational test and evaluation of a weapon system under a 
major defense acquisition program are communicated in a timely manner to 
the program manager for that program for consideration in the 
acquisition decisionmaking process.''.

                  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. Funds for renovation of Department of Veterans Affairs 
           facilities adjacent to Naval Training Center, Great Lakes, 
           Illinois.
Sec. 306. Defense Language Institute Foreign Language Center expanded 
           Arabic language program.

                  Subtitle B--Environmental Provisions

Sec. 311. Inventory of unexploded ordnance, discarded military 
           munitions, and munitions constituents at defense sites (other 
           than operational ranges).
Sec. 312. Establishment of new program element for remediation of 
           unexploded ordnance, discarded military munitions, and 
           munitions constituents.
Sec. 313. Assessment of environmental remediation of unexploded 
           ordnance, discarded military munitions, and munitions 
           constituents.
Sec. 314. Conformity of surety authority under environmental restoration 
           program with surety authority under CERCLA.
Sec. 315. Elimination of annual report on contractor reimbursement for 
           costs of environmental response actions.
Sec. 316. Pilot program for sale of air pollution emission reduction 
           incentives.
Sec. 317. Department of Defense energy efficiency program.
Sec. 318. Procurement of alternative fueled and hybrid light duty 
           trucks.
Sec. 319. Reimbursement of Environmental Protection Agency for certain 
           response costs in connection with Hooper Sands Site, South 
           Berwick, Maine.
Sec. 320. River mitigation studies.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Commissary benefits for new members of the Ready Reserve.
Sec. 332. Reimbursement for use of commissary facilities by military 
           departments for purposes other than commissary sales.
Sec. 333. Public releases of commercially valuable information of 
           commissary stores.
Sec. 334. Rebate agreements with producers of foods provided under 
           special supplemental food program.
Sec. 335. Civil recovery for nonappropriated fund instrumentality costs 
           related to shoplifting.

                 Subtitle D--Workforce and Depot Issues

Sec. 341. Revision of authority to waive limitation on performance of 
           depot-level maintenance.
Sec. 342. Exclusion of certain expenditures from limitation on private 
           sector performance of depot-level maintenance.
Sec. 343. Protections for purchasers of articles and services 
           manufactured or performed by working-capital funded 
           industrial facilities of the Department of Defense.
Sec. 344. Revision of deadline for annual report on commercial and 
           industrial activities.
Sec. 345. Pilot manpower reporting system in Department of the Army.
Sec. 346. Development of Army workload and performance system and 
           Wholesale Logistics Modernization Program.

[[Page 115 STAT. 1046]]

                Subtitle E--Defense Dependents Education

Sec. 351. Assistance to local educational agencies that benefit 
           dependents of members of the Armed Forces and Department of 
           Defense civilian employees.
Sec. 352. Impact aid for children with severe disabilities.
Sec. 353. Availability of auxiliary services of defense dependents' 
           education system for dependents who are home school students.
Sec. 354. Comptroller General study of adequacy of compensation provided 
           for teachers in the Department of Defense overseas 
           dependents' schools.

                        Subtitle F--Other Matters

Sec. 361. Availability of excess defense personal property to support 
           Department of Veterans Affairs initiative to assist homeless 
           veterans.
Sec. 362. Incremental implementation of Navy-Marine Corps Intranet 
           contract.
Sec. 363. Comptroller General study and report of National Guard 
           Distributive Training Technology Project.
Sec. 364. Reauthorization of warranty claims recovery pilot program.
Sec. 365. Evaluation of current demonstration programs to improve 
           quality of personal property shipments of members.
Sec. 366. Sense of Congress regarding security to be provided at 2002 
           Winter Olympic Games.

               Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    (a) Authorization of Appropriations.--Funds are hereby authorized to 
be appropriated for fiscal year 2002 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, $20,653,241,000.
            (2) For the Navy, $26,461,299,000.
            (3) For the Marine Corps, $2,872,524,000.
            (4) For the Air Force, $25,598,767,000.
            (5) For Defense-wide activities, $11,949,586,000.
            (6) For the Army Reserve, $1,824,146,000.
            (7) For the Naval Reserve, $1,000,050,000.
            (8) For the Marine Corps Reserve, $142,853,000.
            (9) For the Air Force Reserve, $2,029,866,000.
            (10) For the Army National Guard, $3,696,559,000.
            (11) For the Air National Guard, $3,967,361,000.
            (12) For the Defense Inspector General, $149,221,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $9,096,000.
            (14) For Environmental Restoration, Army, $389,800,000.
            (15) For Environmental Restoration, Navy, $257,517,000.
            (16) For Environmental Restoration, Air Force, $385,437,000.
            (17) For Environmental Restoration, Defense-wide, 
        $23,492,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $230,255,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $49,700,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $820,381,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $40,000,000.
            (22) For Defense Health Program, $17,570,750,000.

[[Page 115 STAT. 1047]]

            (23) For Cooperative Threat Reduction programs, 
        $403,000,000.
            (24) For Overseas Contingency Operations Transfer Fund, 
        $2,844,226,000.
            (25) For Support for International Sporting Competitions, 
        Defense, $15,800,000.

    (b) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (5) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$125,000,000, which represents savings resulting from reduced energy 
costs.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
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, $1,656,396,000.
            (2) For the National Defense Sealift Fund, $407,708,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    (a) Amount for Fiscal Year 2002.--There is hereby authorized to be 
appropriated for fiscal year 2002 from the Armed Forces Retirement Home 
Trust Fund the sum of $71,440,000 for the operation of the Armed Forces 
Retirement Home.
    (b) Availability of Amounts Previously Appropriated.--Of amounts 
appropriated from the Armed Forces Retirement Home Trust Fund for fiscal 
year 2002 (and previous fiscal years to the extent such amounts remain 
unobligated), $22,400,000 shall be available, subject to the review and 
approval of the Secretary of Defense, for the development and 
construction of a blended use, multicare facility at the Naval Home and 
for the acquisition of a parcel of real property adjacent to the Naval 
Home consisting of approximately 15 acres.
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 2002 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.

[[Page 115 STAT. 1048]]

SEC. 305. FUNDS FOR RENOVATION OF DEPARTMENT OF VETERANS AFFAIRS 
                        FACILITIES ADJACENT TO NAVAL TRAINING 
                        CENTER, GREAT LAKES, ILLINOIS.

    (a) Availability of Funds for Renovation.--Subject to subsection 
(b), of the amount authorized to be appropriated by section 301(a)(2) 
for operation and maintenance for the Navy, the Secretary of the Navy 
may make available to the Secretary of Veterans Affairs up to $2,000,000 
for relocation of Department of Veterans Affairs activities and 
associated renovation of existing facilities at the North Chicago 
Department of Veterans Affairs Medical Center, Illinois.
    (b) Limitation.--The Secretary of the Navy may make funds available 
under subsection (a) only after the Secretary of the Navy and the 
Secretary of Veterans Affairs enter into an appropriate agreement for 
the use by the Secretary of the Navy of approximately 48 acres of real 
property at the North Chicago Department of Veterans Affairs property 
referred to in subsection (a) for expansion of the Naval Training 
Center, Great Lakes, Illinois.
SEC. 306. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER 
                        EXPANDED ARABIC LANGUAGE PROGRAM.

    Of the amount authorized to be appropriated by section 301(a)(1) for 
operation and maintenance for the Army, $650,000 may be available for 
the Defense Language Institute Foreign Language Center for an expanded 
Arabic language program.

                  Subtitle B--Environmental Provisions

SEC. 311. INVENTORY OF UNEXPLODED ORDNANCE, DISCARDED MILITARY 
                        MUNITIONS, AND MUNITIONS CONSTITUENTS AT 
                        DEFENSE SITES (OTHER THAN OPERATIONAL 
                        RANGES).

    (a) Inventory Required.--(1) Chapter 160 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 2710. Inventory of unexploded ordnance, discarded military 
                    munitions, and munitions constituents at 
                    defense sites (other than operational ranges)

    ``(a) Inventory Required.--(1) The Secretary of Defense shall 
develop and maintain an inventory of defense sites that are known or 
suspected to contain unexploded ordnance, discarded military munitions, 
or munitions constituents.
    ``(2) The information in the inventory for each defense site shall 
include, at a minimum, the following:
            ``(A) A unique identifier for the defense site.
            ``(B) An appropriate record showing the location, 
        boundaries, and extent of the defense site, including 
        identification of the State and political subdivisions of the 
        State in which the defense site is located and any Tribal lands 
        encompassed by the defense site.
            ``(C) Known persons and entities, other than a military 
        department, with any current ownership interest or control of 
        lands encompassed by the defense site.
            ``(D) Any restrictions or other land use controls currently 
        in place at the defense site that might affect the potential

[[Page 115 STAT. 1049]]

        for public and environmental exposure to the unexploded 
        ordnance, discarded military munitions, or munitions 
        constituents.

    ``(b) Site <<NOTE: Protocol.>> Prioritization.--(1) The Secretary 
shall develop, in consultation with representatives of the States and 
Indian Tribes, a proposed protocol for assigning to each defense site a 
relative priority for response activities related to unexploded 
ordnance, discarded military munitions, and munitions constituents based 
on the overall conditions at the defense site. <<NOTE: Public 
information. Applicability.>> After public notice and comment on the 
proposed protocol, the Secretary shall issue a final protocol and shall 
apply the protocol to defense sites listed on the inventory. The level 
of response priority assigned the site shall be included with the 
information required by subsection (a)(2).

    ``(2) In assigning the response priority for a defense site on the 
inventory, the Secretary shall primarily consider factors relating to 
safety and environmental hazard potential, such as the following:
            ``(A) Whether there are known, versus suspected, unexploded 
        ordnance, discarded military munitions, or munitions 
        constituents on all or any portion of the defense site and the 
        types of unexploded ordnance, discarded military munitions, or 
        munitions constituents present or suspected to be present.
            ``(B) Whether public access to the defense site is 
        controlled, and the effectiveness of these controls.
            ``(C) The potential for direct human contact with unexploded 
        ordnance, discarded military munitions, or munitions 
        constituents at the defense site and evidence of people entering 
        the site.
            ``(D) Whether a response action has been or is being 
        undertaken at the defense site under the Formerly Used Defense 
        Sites program or other program.
            ``(E) The planned or mandated dates for transfer of the 
        defense site from military control.
            ``(F) The extent of any documented incidents involving 
        unexploded ordnance, discarded military munitions, or munitions 
        constituents at or from the defense site, including incidents 
        involving explosions, discoveries, injuries, reports, and 
        investigations.
            ``(G) The potential for drinking water contamination or the 
        release of munitions constituents into the air.
            ``(H) The potential for destruction of sensitive ecosystems 
        and damage to natural resources.

    ``(3) The priority assigned to a defense site included on the 
inventory shall not impair, alter, or diminish any applicable Federal or 
State authority to establish requirements for the investigation of, and 
response to, environmental problems at the defense site.
    ``(c) Updates and Availability.--(1) The Secretary shall annually 
update the inventory and site prioritization list to reflect new 
information that becomes available. The inventory shall be available in 
published and electronic form.
    ``(2) The Secretary shall work with communities adjacent to a 
defense site to provide information concerning conditions at the site 
and response activities. At a minimum, the Secretary shall provide the 
site inventory information and site prioritization list to appropriate 
Federal, State, tribal, and local officials, and, to the extent the 
Secretary considers appropriate, to civil defense or emergency 
management agencies and the public.
    ``(d) Exceptions.--This section does not apply to the following:

[[Page 115 STAT. 1050]]

            ``(1) Any locations outside the United States.
            ``(2) The presence of military munitions resulting from 
        combat operations.
            ``(3) Operating storage and manufacturing facilities.
            ``(4) Operational ranges.

    ``(e) Definitions.--In this section:
            ``(1) The term `defense site' applies to locations that are 
        or were owned by, leased to, or otherwise possessed or used by 
        the Department of Defense. The term does not include any 
        operational range, operating storage or manufacturing facility, 
        or facility that is used for or was permitted for the treatment 
        or disposal of military munitions.
            ``(2) The term `discarded military munitions' means military 
        munitions that have been abandoned without proper disposal or 
        removed from storage in a military magazine or other storage 
        area for the purpose of disposal. The term does not include 
        unexploded ordnance, military munitions that are being held for 
        future use or planned disposal, or military munitions that have 
        been properly disposed of, consistent with applicable 
        environmental laws and regulations.
            ``(3)(A) The term `military munitions' means all ammunition 
        products and components produced for or used by the armed forces 
        for national defense and security, including ammunition products 
        or components under the control of the Department of Defense, 
        the Coast Guard, the Department of Energy, and the National 
        Guard. The term includes confined gaseous, liquid, and solid 
        propellants, explosives, pyrotechnics, chemical and riot control 
        agents, smokes, and incendiaries, including bulk explosives and 
        chemical warfare agents, chemical munitions, rockets, guided and 
        ballistic missiles, bombs, warheads, mortar rounds, artillery 
        ammunition, small arms ammunition, grenades, mines, torpedoes, 
        depth charges, cluster munitions and dispensers, demolition 
        charges, and devices and components thereof.
            ``(B) The term does not include wholly inert items, 
        improvised explosive devices, and nuclear weapons, nuclear 
        devices, and nuclear components, except that the term does 
        include nonnuclear components of nuclear devices that are 
        managed under the nuclear weapons program of the Department of 
        Energy after all required sanitization operations under the 
        Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) have been 
        completed.
            ``(4) The term `munitions constituents' means any materials 
        originating from unexploded ordnance, discarded military 
        munitions, or other military munitions, including explosive and 
        nonexplosive materials, and emission, degradation, or breakdown 
        elements of such ordnance or munitions.
            ``(5) The term `operational range' means a military range 
        that is used for range activities, or a military range that is 
        not currently being used, but that is still considered by the 
        Secretary to be a range area, is under the jurisdiction, 
        custody, or control of the Department of Defense, and has not 
        been put to a new use that is incompatible with range 
        activities.
            ``(6) The term `possessions' includes Johnston Atoll, 
        Kingman Reef, Midway Island, Nassau Island, Palmyra Island, and 
        Wake Island.
            ``(7) The term `Secretary' means the Secretary of Defense.

[[Page 115 STAT. 1051]]

            ``(8) The term `State' means the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, and the 
        territories and possessions.
            ``(9) The term `unexploded ordnance' means military 
        munitions that--
                    ``(A) have been primed, fused, armed, or otherwise 
                prepared for action;
                    ``(B) have been fired, dropped, launched, projected, 
                or placed in such a manner as to constitute a hazard to 
                operations, installations, personnel, or material; and
                    ``(C) remain unexploded either by malfunction, 
                design, or any other cause.
            ``(10) The term `United States', in a geographic sense, 
        means the States, territories, and possessions and associated 
        navigable waters, contiguous zones, and ocean waters of which 
        the natural resources are under the exclusive management 
        authority of the United States.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``2710. Inventory of unexploded ordnance, discarded military munitions, 
            and munitions constituents at defense sites (other than 
            operational ranges).''.

    (b) Initial <<NOTE: Deadlines. 10 USC 2710 note.>> Inventory.--The 
requirements of section 2710 of title 10, United States Code, as added 
by subsection (a), shall be implemented as follows:
            (1) The initial inventory required by subsection (a) of such 
        section shall be completed not later than May 31, 2003.
            (2) The proposed prioritization protocol required by 
        subsection (b) of such section shall be available for public 
        comment not later than November 30, 2002.
SEC. 312. ESTABLISHMENT OF NEW PROGRAM ELEMENT FOR REMEDIATION OF 
                        UNEXPLODED ORDNANCE, DISCARDED MILITARY 
                        MUNITIONS, AND MUNITIONS CONSTITUENTS.

    Section 2703 of title 10, United States Code, is amended--
            (1) by redesignating subsections (b) through (f) as 
        subsections (c) through (g), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Program Elements for Ordnance Remediation.--The Secretary of 
Defense shall establish a program element for remediation of unexploded 
ordnance, discarded military munitions, and munitions constituents 
within each environmental restoration account established under 
subsection (a). The terms `unexploded ordnance', `discarded military 
munitions', and `munitions constituents' have the meanings given such 
terms in section 2710 of this title.''.
SEC. 313. ASSESSMENT <<NOTE: 10 USC 2706 note.>> OF ENVIRONMENTAL 
                        REMEDIATION OF UNEXPLODED ORDNANCE, 
                        DISCARDED MILITARY MUNITIONS, AND 
                        MUNITIONS CONSTITUENTS.

    (a) Inclusion in 2003 Report on Environmental Restoration 
Activities.--The Secretary of Defense shall include in the report 
submitted to Congress under section 2706(a) of title 10, United States 
Code, in 2003 a comprehensive assessment of unexploded ordnance, 
discarded military munitions, and munitions

[[Page 115 STAT. 1052]]

constituents located at current and former facilities of the Department 
of Defense. The assessment shall include, at a minimum, the following:
            (1) Separate estimates of the aggregate projected costs of 
        the remediation of unexploded ordnance, discarded military 
        munitions, and munitions constituents at--
                    (A) all operational ranges; and
                    (B) all other defense sites.
            (2) A comprehensive plan for addressing the remediation of 
        unexploded ordinance, discarded military munitions, and 
        munitions constituents at defense sites, including an assessment 
        of the funding required and the period of time over which such 
        funding will be required.
            (3) An assessment of the technology currently available for 
        the remediation of unexploded ordnance, discarded military 
        munitions, and munitions constituents.
            (4) An assessment of the impact of improved technology on 
        the cost of such remediation and a plan for the development and 
        use of such improved technology.

    (b) Requirements for Cost Estimates.--(1) The estimates of aggregate 
projected costs required by subsection (a)(1) shall--
            (A) be stated as a range of aggregate projected costs, 
        including a low estimate and a high estimate;
            (B) set forth the differing assumptions underlying each such 
        low estimate and high estimate, including--
                    (i) any public uses for the operational ranges and 
                other defense sites concerned that will be available 
                after the remediation is completed;
                    (ii) the extent of the remediation required to make 
                the operational ranges and other defense sites concerned 
                available for such uses; and
                    (iii) the technologies to be applied to achieve such 
                level of remediation; and
            (C) include, and identify separately, an estimate of the 
        aggregate projected costs of the remediation of any ground water 
        contamination that may be caused by unexploded ordnance, 
        discarded military munitions, or munitions constituents at the 
        operational ranges and other defense sites concerned.

    (2) The high estimate of the aggregate projected costs shall be 
based on the assumption that all unexploded ordnance, discarded military 
munitions, and munitions constituents at each operational range and 
other defense site will be addressed, regardless of whether there are 
any current plans to close the range or site or discontinue training at 
the range or site.
    (3) The estimate of the aggregate projected costs of remediation of 
ground water contamination under paragraph (1)(C) shall be based on a 
comprehensive assessment of the risk of such contamination and of the 
actions required to protect the ground water supplies concerned.
    (4) The standards for the report of liabilities of the Department of 
Defense shall not apply to the cost estimates required by subsection 
(a)(1).
    (c) Interim Assessment.--The report submitted to Congress under 
section 2706(a) of title 10, United States Code, in 2002 shall include 
the assessment required by subsection (a) to the extent that the 
information required to be provided as part of

[[Page 115 STAT. 1053]]

the assessment is available. The Secretary shall include an explanation 
of any limitations on the information available or qualifications on the 
information provided.
    (d) Definitions.--In this section, the terms ``unexploded 
ordnance'', ``discarded military munitions'', ``munitions 
constituents'', ``operational range'', and ``defense site'' have the 
meanings given such terms in section 2710 of title 10, United States 
Code, as added by section 311.
SEC. 314. CONFORMITY OF SURETY AUTHORITY UNDER ENVIRONMENTAL 
                        RESTORATION PROGRAM WITH SURETY AUTHORITY 
                        UNDER CERCLA.

    Section 2701(j)(1) of title 10, United States Code, is amended by 
striking ``, or after December 31, 1999''.
SEC. 315. ELIMINATION OF ANNUAL REPORT ON CONTRACTOR REIMBURSEMENT 
                        FOR COSTS OF ENVIRONMENTAL RESPONSE 
                        ACTIONS.

    (a) Report Elimination.--Section 2706 of title 10, United States 
Code, is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.

    (b) Conforming Amendments.--Subsection (d) of such section, as 
redesignated by subsection (a) of this section, is amended--
            (1) by striking paragraphs (1) and (3); and
            (2) by redesignating paragraphs (2), (4), and (5) as 
        paragraphs (1), (2), and (3), respectively.
SEC. 316. PILOT PROGRAM FOR SALE OF AIR POLLUTION EMISSION 
                        REDUCTION INCENTIVES.

    (a) Extension.--Section 351(a)(2) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 
2701 note) is amended by striking ``September 30, 2001'' and inserting 
``September 30, 2003''.
    (b) Report <<NOTE: 10 USC 2701 note.>> Required.--(1) The Secretary 
of Defense shall prepare a report concerning the operation of the pilot 
program for the sale of economic incentives for the reduction of 
emission of air pollutants attributable to military facilities, as 
authorized by section 351 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 2701 note). The report 
shall--
            (A) detail all transactions that have been completed under 
        the pilot program, the dollar amount of each transaction, and 
        the number and type of air pollutants involved in each 
        transaction;
            (B) evaluate the extent to which retention of the proceeds 
        of sales under the pilot program, as required by subsection (c) 
        of such section, has provided incentives for such sales;
            (C) evaluate the extent of any loss to the United States 
        Treasury associated with the pilot program; and
            (D) evaluate the environmental impact of the pilot program.

    (2) <<NOTE: Deadline.>> Not later than March 1, 2003, the Secretary 
shall submit the report required by paragraph (1) to the Committee on 
Energy and Commerce and the Committee on Armed Services of the House of 
Representatives and the Committee on Environment and Public Works and 
the Committee on Armed Services of the Senate.

[[Page 115 STAT. 1054]]

SEC. 317. DEPARTMENT <<NOTE: 10 USC 2865 note.>> OF DEFENSE ENERGY 
                        EFFICIENCY PROGRAM.

    (a) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense should work to implement fuel efficiency reforms 
that allow for investment decisions based on the true cost of delivered 
fuel, strengthen the linkage between warfighting capability and fuel 
logistics requirements, provide high-level leadership encouraging fuel 
efficiency, target fuel efficiency improvements through science and 
technology investment, and include fuel efficiency in requirements and 
acquisition processes.
    (b) Energy Efficiency Program.--The Secretary shall carry out a 
program to significantly improve the energy efficiency of facilities of 
the Department of Defense through 2010. The Secretary shall designate a 
senior official of the Department of Defense to be responsible for 
managing the program for the Department and a senior official of each 
military department to be responsible for managing the program for such 
department.
    (c) Energy Efficiency Goals.--The goal of the energy efficiency 
program shall be to achieve reductions in energy consumption by 
facilities of the Department of Defense as follows:
            (1) In the case of industrial and laboratory facilities, 
        reductions in the average energy consumption per square foot of 
        such facilities, per unit of production or other applicable 
        unit, relative to energy consumption in 1990--
                    (A) by 20 percent by 2005; and
                    (B) by 25 percent by 2010.
            (2) In the case of other facilities, reductions in average 
        energy consumption per gross square foot of such facilities, 
        relative to energy consumption per gross square foot in 1985--
                    (A) by 30 percent by 2005; and
                    (B) by 35 percent by 2010.

    (d) Strategies for Improving Energy Efficiency.--In order to achieve 
the goals set forth in subsection (c), the Secretary shall, to the 
maximum extent practicable--
            (1) purchase energy-efficient products, as so designated by 
        the Environmental Protection Agency and the Department of 
        Energy, and other products that are energy-efficient;
            (2) utilize energy savings performance contracts, utility 
        energy-efficiency service contracts, and other contracts 
        designed to achieve energy conservation;
            (3) use life-cycle cost analysis, including assessment of 
        life-cycle energy costs, in making decisions about investments 
        in products, services, construction, and other projects;
            (4) conduct energy efficiency audits for approximately 10 
        percent of all Department of Defense facilities each year;
            (5) explore opportunities for energy efficiency in 
        industrial facilities for steam systems, boiler operation, air 
        compressor systems, industrial processes, and fuel switching; 
        and
            (6) retire inefficient equipment on an accelerated basis 
        where replacement results in lower life-cycle costs.

    (e) Reporting <<NOTE: Deadlines.>> Requirements.--Not later than 
January 1, 2002, and each January 1 thereafter through 2010, the 
Secretary shall submit to the congressional defense committees the 
report required to be prepared by the Secretary pursuant to section 303 
of Executive Order 13123 (64 Fed. Reg. 30851; 42 U.S.C. 8251 note) 
regarding the progress made toward achieving the energy efficiency goals 
of the Department of Defense.

[[Page 115 STAT. 1055]]

SEC. 318. PROCUREMENT <<NOTE: 10 USC 2302 note.>> OF ALTERNATIVE 
                        FUELED AND HYBRID LIGHT DUTY TRUCKS.

    (a) Defense Fleets Not Covered by Requirement in Energy Policy Act 
of 1992.--(1) The Secretary of Defense shall coordinate with the 
Administrator of General Services to ensure that only hybrid vehicles 
are procured by the Administrator for the Department of Defense fleet of 
light duty trucks that is not in a fleet of vehicles to which section 
303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) applies.
    (2) The Secretary, in consultation with the Administrator, may waive 
the policy regarding the procurement of hybrid vehicles in paragraph (1) 
to the extent that the Secretary determines necessary--
            (A) in the case of trucks that are exempt from the 
        requirements of section 303 of the Energy Policy Act of 1992 for 
        national security reasons under subsection (b)(3)(E) of such 
        section, to meet specific requirements of the Department of 
        Defense for capabilities of light duty trucks;
            (B) to procure vehicles consistent with the standards 
        applicable to the procurement of fleet vehicles for the Federal 
        Government; or
            (C) to adjust to limitations on the commercial availability 
        of light duty trucks that are hybrid vehicles.

    (3) <<NOTE: Applicability.>> This subsection applies with respect to 
procurements of light duty trucks in fiscal year 2005 and subsequent 
fiscal years.

    (b) Requirement To Exceed Requirement in Energy Policy Act of 
1992.--(1) The Secretary of Defense shall coordinate with the 
Administrator of General Services to ensure that, of the light duty 
trucks procured in fiscal years after fiscal year 2004 for the fleets of 
light duty vehicles of the Department of Defense to which section 303 of 
the Energy Policy Act of 1992 applies--
            (A) five percent of the total number of such trucks that are 
        procured in each of fiscal years 2005 and 2006 are alternative 
        fueled vehicles or hybrid vehicles; and
            (B) ten percent of the total number of such trucks that are 
        procured in each fiscal year after fiscal year 2006 are 
        alternative fueled vehicles or hybrid vehicles.

    (2) Light duty trucks acquired for the Department of Defense that 
are counted to comply with section 303 of the Energy Policy Act of 1992 
for a fiscal year shall be counted to determine the total number of 
light duty trucks procured for the Department of Defense for that fiscal 
year for the purposes of paragraph (1), but shall not be counted to 
satisfy the requirement in that paragraph.
    (c) Report on Plans for Implementation.--At the same time that the 
President submits the budget for fiscal year 2003 to Congress under 
section 1105(a) of title 31, United States Code, the Secretary shall 
submit to Congress a report summarizing the plans for carrying out 
subsections (a) and (b).
    (d) Definitions.--In this section:
            (1) The term ``hybrid vehicle'' means a motor vehicle that 
        draws propulsion energy from onboard sources of stored energy 
        that are both--
                    (A) an internal combustion or heat engine using 
                combustible fuel; and
                    (B) a rechargeable energy storage system.

[[Page 115 STAT. 1056]]

            (2) The term ``alternative fueled vehicle'' has the meaning 
        given that term in section 301 of the Energy Policy Act of 1992 
        (42 U.S.C. 13211).
SEC. 319. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR 
                        CERTAIN RESPONSE COSTS IN CONNECTION WITH 
                        HOOPER SANDS SITE, SOUTH BERWICK, MAINE.

    (a) Authority To Reimburse.--Using amounts specified in subsection 
(c), the Secretary of the Navy may pay $1,005,478 to the Hooper Sands 
Special Account within the Hazardous Substance Superfund established by 
section 9507 of the Internal Revenue Code of 1986 to reimburse the 
Environmental Protection Agency for the response costs incurred by the 
Environmental Protection Agency for actions taken between May 12, 1992, 
and July 31, 2000, pursuant to the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) at the 
Hooper Sands site in South Berwick, Maine, in accordance with the 
interagency agreement entered into by the Department of the Navy and the 
Environmental Protection Agency in January 2001.
    (b) Treatment of Reimbursement.--Payment of the amount authorized by 
subsection (a) shall be in full satisfaction of amounts due from the 
Department of the Navy to the Environmental Protection Agency for the 
response costs described in that subsection.
    (c) Source of Funds.--Payment under subsection (a) shall be made 
using amounts authorized to be appropriated by section 301(a)(15) to the 
Environmental Restoration Account, Navy, established by section 
2703(a)(3) of title 10, United States Code.

SEC. 320. RIVER MITIGATION STUDIES.

    (a) Port of Orange, Sabine River.--The Secretary of Defense may 
conduct a study regarding protruding structures and submerged objects 
remaining from the World War II Navy ship building industry located at 
the former Navy installation in Orange, Texas, which create navigational 
hazards along the Sabine River and surrounding the Port of Orange.
    (b) Philadelphia Naval Shipyard, Delaware River.--The Secretary of 
Defense may conduct a study regarding floating and partially submerged 
debris possibly relating to the Philadelphia Naval Shipyard in that 
portion of the Delaware River from Philadelphia, Pennsylvania, to the 
mouth of the river which create navigational hazards along the river.
    (c) Use of Existing Information.--In conducting a study authorized 
by this section, the Secretary of Defense shall take into account any 
information available from other studies conducted in connection with 
the same navigation channels.
    (d) Consultation.--The Secretary of Defense shall conduct the 
studies authorized by this section in consultation with appropriate 
State and local government entities and Federal agencies.
    (e) Report <<NOTE: Deadline.>> on Study Results.--Not later than 
April 30, 2002, the Secretary of Defense shall submit to the Committee 
on Armed Services of the House of Representatives and the Committee on 
Armed Services of the Senate a report that--
            (1) summarizes the results of each study conducted under 
        this section; and
            (2) contains an evaluation by the Secretary of the extent to 
        which the navigational hazards identified in each study are the 
        result of Department of Defense activities.

[[Page 115 STAT. 1057]]

    (f) Cost Sharing.--Nothing in this section is intended to require 
non-Federal cost sharing of the costs incurred by the Secretary of 
Defense to conduct a study authorized by this section.
    (g) Relation to Other Laws and Agreements.--This section is not 
intended to modify any authorities provided to the Secretary of the Army 
by the Water Resources Development Act of 1986 (33 U.S.C. 2201 et seq.), 
nor is it intended to modify any non-Federal cost-sharing 
responsibilities outlined in any local cooperation agreements.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 331. COMMISSARY BENEFITS FOR NEW MEMBERS OF THE READY 
                        RESERVE.

    (a) Eligibility.--Section 1063 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Eligibility of New Members.--(1) The Secretary concerned shall 
authorize a new member of the Ready Reserve to use commissary stores of 
the Department of Defense for a number of days accruing at the rate of 
two days for each month in which the member participates satisfactorily 
in training required under section 10147(a)(1) of this title or section 
502(a) of title 32, as the case may be.
    ``(2) For the purposes of paragraph (1), a person shall be 
considered a new member of the Ready Reserve upon becoming a member and 
continuing without a break in the membership until the earlier of--
            ``(A) the date on which the member becomes eligible to use 
        commissary stores under subsection (a); or
            ``(B) December 31 of the first calendar year in which the 
        membership has been continuous for the entire year.

    ``(3) A new member may not be authorized under this subsection to 
use commissary stores for more than 24 days for any calendar year.''.
    (b) Required Documentation.--Subsection (d) of such section, as 
redesignated by subsection (a)(1), is amended by adding at the end the 
following new sentence: ``The regulations shall specify the required 
documentation of satisfactory participation in training for the purposes 
of subsection (b).''.
    (c) Conforming Amendment.--Subsection (c) of such section, as 
redesignated by subsection (a)(1), is amended by striking ``Subsection 
(a)'' and inserting ``Subsections (a) and (b)''.
    (d) Clerical Amendments.--(1) The heading for such section is 
amended to read as follows:
``Sec. 1063. Use of commissary stores: members of Ready Reserve''.

    (2) Subsection (a) of such section is amended by striking ``of Ready 
Reserve'' and inserting ``With 50 or More Creditable Points''.

[[Page 115 STAT. 1058]]

    (3) The item relating to such section in the table of sections at 
the beginning of chapter 54 of title 10, United States Code, is amended 
to read as follows:

``1063. Use of commissary stores: members of Ready Reserve.''.

SEC. 332. REIMBURSEMENT FOR USE OF COMMISSARY FACILITIES BY 
                        MILITARY DEPARTMENTS FOR PURPOSES OTHER 
                        THAN COMMISSARY SALES.

    (a) Requirement.--Chapter 147 of title 10, United States Code, is 
amended by inserting after section 2482a the following new section:
``Sec. 2483. Commissary stores: reimbursement for use of 
                    commissary facilities by military departments

    ``(a) Payment Required.--The Secretary of a military department 
shall pay the Defense Commissary Agency the amount determined under 
subsection (b) for any use of a commissary facility by the military 
department for a purpose other than commissary sales or operations in 
support of commissary sales.
    ``(b) Amount.--The amount payable under subsection (a) for use of a 
commissary facility by a military department shall be equal to the share 
of depreciation of the facility that is attributable to that use, as 
determined under regulations prescribed by the Secretary of Defense.
    ``(c) Covered Facilities.--This section applies with respect to a 
commissary facility that is acquired, constructed, converted, expanded, 
installed, or otherwise improved (in whole or in part) with the proceeds 
of an adjustment or surcharge applied under section 2486(c) of this 
title.
    ``(d) Crediting of Payments.--The Director of the Defense Commissary 
Agency shall credit amounts paid under this section for use of a 
facility to an appropriate account to which proceeds of an adjustment or 
surcharge referred to in subsection (c) are credited.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2482a the following new item:
``2483. Commissary stores: reimbursement for use of commissary 
            facilities by military departments.''.
SEC. 333. PUBLIC RELEASES OF COMMERCIALLY VALUABLE INFORMATION OF 
                        COMMISSARY STORES.

    (a) Limitations and Authority.--Section 2487 of title 10, United 
States Code, is amended to read as follows:
``Sec. 2487. Commissary stores: release of certain commercially 
                    valuable information to the public

    ``(a) Authority To Limit Release.--(1) The Secretary of Defense may 
limit the release to the public of any information described in 
paragraph (2) if the Secretary determines that it is in the best 
interest of the Department of Defense to limit the release of such 
information. If the Secretary determines to limit the release of any 
such information, the Secretary may provide for limited release of such 
information in accordance with subsection (b).
    ``(2) Paragraph (1) applies to the following:
            ``(A) Information contained in the computerized business 
        systems of commissary stores or the Defense Commissary

[[Page 115 STAT. 1059]]

        Agency that is collected through or in connection with the use 
        of electronic scanners in commissary stores, including the 
        following information:
                    ``(i) Data relating to sales of goods or services.
                    ``(ii) Demographic information on customers.
                    ``(iii) Any other information pertaining to 
                commissary transactions and operations.
            ``(B) Business programs, systems, and applications 
        (including software) relating to commissary operations that were 
        developed with funding derived from commissary surcharges.

    ``(b) Release Authority.--(1) The Secretary of Defense may, using 
competitive procedures, enter into a contract to sell information 
described in subsection (a)(2).
    ``(2) The Secretary of Defense may release, without charge, 
information on an item sold in commissary stores to the manufacturer or 
producer of that item or an agent of the manufacturer or producer.
    ``(3) The Secretary of Defense may, by contract entered into with a 
business, grant to the business a license to use business programs 
referred to in subsection (a)(2)(B), including software used in or 
comprising any such program. The fee charged for the license shall be 
based on the costs of similar programs developed and marketed by 
businesses in the private sector, determined by means of surveys.
    ``(4) Each contract entered into under this subsection shall specify 
the amount to be paid for information released or a license granted 
under the contract, as the case may be.
    ``(c) Form of Release.--Information described in subsection (a)(2) 
may not be released, under subsection (b) or otherwise, in a form that 
identifies any customer or that provides information making it possible 
to identify any customer.
    ``(d) Receipts.--Amounts received by the Secretary under this 
section shall be credited to funds derived from commissary surcharges, 
shall be merged with those funds, and shall be available for the same 
purposes as the funds with which merged.
    ``(e) Definition.--In this section, the term `commissary surcharge' 
means any adjustment or surcharge applied under section 2486(c) of this 
title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 147 of title 10, United States Code, is amended by striking the 
item relating to section 2487 and inserting the following new item:
``2487. Commissary stores: release of certain commercially valuable 
            information to the public.''.
SEC. 334. REBATE AGREEMENTS WITH PRODUCERS OF FOODS PROVIDED UNDER 
                        SPECIAL SUPPLEMENTAL FOOD PROGRAM.

    Section 1060a of title 10, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection:

    ``(e) Rebate Agreements With Food Producers.--(1) In the 
administration of the program under this section, the Secretary of 
Defense may enter into a contract with a producer of a particular brand 
of food that provides for--

[[Page 115 STAT. 1060]]

            ``(A) the Secretary of Defense to procure that particular 
        brand of food, exclusive of other brands of the same or similar 
        food, for the purpose of providing the food in commissary stores 
        of the Department of Defense as a supplemental food under the 
        program; and
            ``(B) the producer to rebate to the Secretary amounts equal 
        to agreed portions of the amounts paid by the Secretary for the 
        procurement of that particular brand of food for the program.

    ``(2) The Secretary of Defense shall use competitive procedures 
under chapter 137 of this title to enter into contracts under this 
subsection.
    ``(3) The period covered by a contract entered into under this 
subsection may not exceed one year. No such contract may be extended by 
a modification of the contract, by exercise of an option, or by any 
other means. Nothing in this paragraph prohibits a contractor under a 
contract entered into under this subsection for any year from submitting 
an offer for, and being awarded, a contract that is to be entered into 
under this subsection for a successive year.
    ``(4) Amounts rebated under a contract entered into under paragraph 
(1) shall be credited to the appropriation available for carrying out 
the program under this section in the fiscal year in which rebated, 
shall be merged with the other sums in that appropriation, and shall be 
available for the program for the same period as the other sums in the 
appropriation.''.
SEC. 335. CIVIL RECOVERY FOR NONAPPROPRIATED FUND INSTRUMENTALITY 
                        COSTS RELATED TO SHOPLIFTING.

    Section 3701(b)(1)(B) of title 31, United States Code, is amended by 
inserting before the comma at the end the following: ``, including 
actual and administrative costs related to shoplifting, theft detection, 
and theft prevention''.

                 Subtitle D--Workforce and Depot Issues

SEC. 341. REVISION OF AUTHORITY TO WAIVE LIMITATION ON PERFORMANCE 
                        OF DEPOT-LEVEL MAINTENANCE.

    Section 2466 of title 10, United States Code, is amended--
            (1) by striking subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsections:

    ``(b) Waiver of Limitation.--The Secretary of Defense may waive the 
limitation in subsection (a) for a fiscal year if--
            ``(1) the Secretary determines that the waiver is necessary 
        for reasons of national security; and
            ``(2) <<NOTE: Notification.>> the Secretary submits to 
        Congress a notification of the waiver together with the reasons 
        for the waiver.

    ``(c) Prohibition on Delegation of Waiver Authority.--The authority 
to grant a waiver under subsection (b) may not be delegated.''.
SEC. 342. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON 
                        PRIVATE SECTOR PERFORMANCE OF DEPOT-LEVEL 
                        MAINTENANCE.

    Section 2474 of title 10, United States Code, is amended--
            (1) by redesignating subsection (f) as subsection (g); and

[[Page 115 STAT. 1061]]

            (2) by inserting after subsection (e) the following new 
        subsection (f):

    ``(f) Exclusion of Certain Expenditures From Percentage 
Limitation.--(1) Amounts expended out of funds described in paragraph 
(2) for the performance of a depot-level maintenance and repair workload 
by non-Federal Government personnel at a Center of Industrial and 
Technical Excellence shall not be counted for purposes of applying the 
percentage limitation in section 2466(a) of this title if the personnel 
are provided by private industry or other entities outside the 
Department of Defense pursuant to a public-private partnership.
    ``(2) The funds referred to in paragraph (1) are funds available to 
the military departments and Defense Agencies for depot-level 
maintenance and repair workloads for fiscal years 2002 through 2005.
    ``(3) All funds covered by paragraph (1) shall be included as a 
separate item in the reports required under paragraphs (1), (2), and (3) 
of section 2466(e) of this title.''.
SEC. 343. PROTECTIONS FOR PURCHASERS OF ARTICLES AND SERVICES 
                        MANUFACTURED OR PERFORMED BY WORKING-
                        CAPITAL FUNDED INDUSTRIAL FACILITIES OF 
                        THE DEPARTMENT OF DEFENSE.

    (a) General Rule.--Section 2563(c) of title 10, United States Code, 
is amended--
            (1) in paragraph (1)(B), by striking ``in any case of 
        willful misconduct or gross negligence'' and inserting ``as 
        provided in paragraph (3)''; and
            (2) by adding at the end the following new paragraph:

    ``(3) Paragraph (1)(B) does not apply in any case of willful 
misconduct or gross negligence or in the case of a claim by a purchaser 
of articles or services under this section that damages or injury arose 
from the failure of the Government to comply with quality, schedule, or 
cost performance requirements in the contract to provide the articles or 
services.''.
    (b) Conforming Amendment.--Section 2474(e)(2)(B)(i) of such title is 
amended by striking ``in a case of willful conduct or gross negligence'' 
and inserting ``under the circumstances described in section 2563(c)(3) 
of this title''.
SEC. 344. REVISION OF DEADLINE FOR ANNUAL REPORT ON COMMERCIAL AND 
                        INDUSTRIAL ACTIVITIES.

    Section 2461(g) of title 10, United States Code, is amended by 
striking ``February 1'' and inserting ``June 30''.
SEC. 345. PILOT <<NOTE: 10 USC 2461 note.>> MANPOWER REPORTING 
                        SYSTEM IN DEPARTMENT OF THE ARMY.

    (a) Annual <<NOTE: Deadline.>> Reporting Requirement.--Not later 
than March 1 of each of the fiscal years 2002 through 2004, the 
Secretary of the Army shall submit to Congress a report describing the 
use during the previous fiscal year of non-Federal entities to provide 
services to the Department of the Army.

    (b) Content of Report.--Using information available from existing 
data collection and reporting systems available to the Department of the 
Army and the non-Federal entities referred to in subsection (a), the 
report shall--

[[Page 115 STAT. 1062]]

            (1) specify the number of work year equivalents performed by 
        individuals employed by non-Federal entities in providing 
        services to the Department;
            (2) categorize the information by Federal supply class or 
        service code; and
            (3) indicate the appropriation from which the services were 
        funded and the major organizational element of the Department 
        procuring the services.

    (c) Limitation on Requirement for Non-Federal Entities To Provide 
Information.--For the purposes of meeting the requirements set forth in 
subsection (b), the Secretary of the Army may not require the provision 
of information beyond the information that is currently provided to the 
Department of the Army by the non-Federal entities referred to in 
subsection (a), except for the number of work year equivalents 
associated with Department of the Army contracts, identified by contract 
number, to the extent this information is available to the contractor 
from existing data collection systems.
    (d) Repeal of Obsolete Reporting Requirement.--Section 343 of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 569) is repealed.
SEC. 346. DEVELOPMENT OF ARMY WORKLOAD AND PERFORMANCE SYSTEM AND 
                        WHOLESALE LOGISTICS MODERNIZATION PROGRAM.

    (a) Relationship Between Systems.--(1) The Army Workload and 
Performance System, including all applications in the master plan 
submitted to Congress on June 8, 2001, and any revisions to the master 
plan, shall be developed in such a manner that its functionality and 
identity are in compliance with all statutory requirements. The Army 
Workload and Performance System shall continue as a standard Army-wide 
manpower system under the supervision and management of the Secretary of 
the Army.
    (2) The requirement in paragraph (1) is intended to encourage the 
sharing of data between the Army Workload and Performance System and the 
Wholesale Logistics Modernization Program and the development of the 
processes necessary to permit or enhance such data sharing.
    (b) Annual <<NOTE: Deadline.>> Progress Reports.--(1) Not later than 
February 1 of each year, the Secretary of the Army shall submit to 
Congress a progress report on the implementation of the master plan for 
the Army Workload and Performance System during the preceding year. The 
report shall specifically address any changes made to the master plan 
since the previous report.

    (2) <<NOTE: Termination date. Certification.>> The reporting 
requirement shall terminate when the Secretary certifies to Congress 
that the Army Workload and Performance System is fully implemented.

    (c) GAO <<NOTE: Deadline.>> Evaluation.--Not later than 60 days 
after the Secretary of the Army submits to Congress a progress report 
under subsection (b), the Comptroller General shall submit to Congress 
an evaluation of the report.

    (d) Army Workload and Performance System Defined.--The term ``Army 
Workload and Performance System'' includes all applications in the 
master plan for the System submitted to Congress on June 8, 2001, and 
any revision of such master plan.

[[Page 115 STAT. 1063]]

                Subtitle E--Defense Dependents Education

SEC. 351. 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 
2002.--Of the amount authorized to be appropriated pursuant to section 
301(a)(5) for operation and maintenance for Defense-wide activities--
            (1) $30,000,000 shall be available only for the purpose of 
        providing educational agencies assistance to local educational 
        agencies; and
            (2) $1,000,000 shall be available only for the purpose of 
        making payments to local educational agencies to assist such 
        agencies in adjusting to reductions in the number of military 
        dependent students as a result of the closure or realignment of 
        military installations, as provided in section 386(d) of the 
        National Defense Authorization Act for Fiscal Year 1993 (Public 
        Law 102-484; 20 U.S.C. 7703 note).

    (b) Notification.--Not <<NOTE: Deadline.>> later than June 30, 2002, 
the Secretary of Defense shall notify each local educational agency that 
is eligible for assistance or a payment under subsection (a) for fiscal 
year 2002 of--
            (1) that agency's eligibility for the assistance or payment; 
        and
            (2) the amount of the assistance or payment for which that 
        agency is eligible.

    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
SEC. 352. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to section 
301(a)(5) for operation and maintenance for Defense-wide activities, 
$5,000,000 shall be available for payments under section 363 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 
U.S.C. 7703a).
SEC. 353. AVAILABILITY OF AUXILIARY SERVICES OF DEFENSE 
                        DEPENDENTS' EDUCATION SYSTEM FOR 
                        DEPENDENTS WHO ARE HOME SCHOOL STUDENTS.

    Section 1407 of the Defense Dependents' Education Act of 1978 (20 
U.S.C. 926) is amended--
            (1) <<NOTE: 37 USC 429.>> by redesignating subsection (d) as 
        subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection:

[[Page 115 STAT. 1064]]

    ``(d) Auxiliary Services Available to Home School Students.--(1) A 
dependent who is educated in a home school setting, but who is eligible 
to enroll in a school of the defense dependents' education system, shall 
be permitted to use or receive auxiliary services of that school without 
being required to either enroll in that school or register for a minimum 
number of courses offered by that school. The dependent may be required 
to satisfy other eligibility requirements and comply with standards of 
conduct applicable to students actually enrolled in that school who use 
or receive the same auxiliary services.
    ``(2) For purposes of paragraph (1), the term `auxiliary services' 
includes use of academic resources, access to the library of the school, 
after hours use of school facilities, and participation in music, 
sports, and other extracurricular and interscholastic activities.''.
SEC. 354. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION 
                        PROVIDED FOR TEACHERS IN THE DEPARTMENT OF 
                        DEFENSE OVERSEAS DEPENDENTS' SCHOOLS.

    (a) GAO Study Required.--The Comptroller General shall carry out a 
study of the adequacy of the pay and other elements of the compensation 
provided for teachers in the defense dependents' education system 
established under the Defense Dependents' Education Act of 1978 (20 
U.S.C. 921 et seq.).
    (b) Specific Considerations.--In carrying out the study, the 
Comptroller General shall consider the following issues:
            (1) Whether the compensation is adequate for recruiting and 
        retaining high quality teachers.
            (2) Whether any revision of the Defense Department Overseas 
        Teachers Pay and Personnel Practices Act (20 U.S.C. 901 et seq.) 
        or the regulations under that Act is advisable to address any 
        problems identified with respect to the recruitment and 
        retention of high quality teachers or for other purposes.

    (c) Report.--Not <<NOTE: Deadline.>> later than May 1, 2002, the 
Comptroller General shall submit to Congress a report containing the 
results of the study, including--
            (1) the Comptroller General's conclusions on the issues 
        considered; and
            (2) any recommendations for actions that the Comptroller 
        General considers appropriate.

                        Subtitle F--Other Matters

SEC. 361. AVAILABILITY OF EXCESS DEFENSE PERSONAL PROPERTY TO 
                        SUPPORT DEPARTMENT OF VETERANS AFFAIRS 
                        INITIATIVE TO ASSIST HOMELESS VETERANS.

    (a) Transfer Authority.--Subsection (a) of section 2557 of title 10, 
United States Code, is amended--
            (1) by striking ``The Secretary'' and inserting ``(1) The 
        Secretary''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Secretary of Defense may make excess clothing, shoes, 
sleeping bags, and related nonlethal excess supplies available to the 
Secretary of Veterans Affairs for distribution to homeless veterans and 
programs assisting homeless veterans. The transfer of

[[Page 115 STAT. 1065]]

nonlethal excess supplies to the Secretary of Veterans Affairs under 
this paragraph shall be without reimbursement.''.
    (b) Clerical Amendments.--(1) The heading of such section is amended 
to read as follows:
``Sec. 2557. Excess nonlethal supplies: availability for homeless 
                    veteran initiatives and humanitarian relief''.

    (2) The table of sections at the beginning of chapter 152 of such 
title is amended by striking the item relating to section 2557 and 
inserting the following new item:
``2557. Excess nonlethal supplies: availability for homeless veteran 
            initiatives and humanitarian relief.''.
SEC. 362. INCREMENTAL IMPLEMENTATION OF NAVY-MARINE CORPS INTRANET 
                        CONTRACT.

    (a) Additional Phase-In Authority.--Section 814 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-215) is 
amended--
            (1) by redesignating subsections (c), (d), (e), and (f) as 
        subsections (f), (g), (h), and (i), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsections:

    ``(c) Additional Phase-In Authority Pending Second Joint 
Certification.--(1)(A) Notwithstanding subsection (b)(3), the Secretary 
of the Navy may order additional work stations under the Navy-Marine 
Corps Intranet contract in excess of the number provided in the first 
increment of the contract under subsection (b)(2), but not to exceed an 
additional 100,000 work stations. The authority of the Secretary of the 
Navy to order additional work stations under this paragraph is subject 
to approval by both the Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Chief Information Officer of the 
Department of Defense.
    ``(B) The Under Secretary of Defense for Acquisition, Technology, 
and Logistics and the Chief Information Officer of the Department of 
Defense may not grant approval to the Secretary of the Navy to order 
additional work stations under subparagraph (A) until a three-phase 
customer test and evaluation, observed by the Department of Defense, is 
completed for a statistically significant representative sample of the 
work stations operating on the Navy-Marine Corps Intranet. The test and 
evaluation shall include end user testing of day-to-day operations 
(including e-mail capability and performance), scenario-driven events, 
and scenario-based interoperability testing.
    ``(2)(A) Notwithstanding subsection (b)(3), the Secretary of the 
Navy may order additional work stations under the Navy-Marine Corps 
Intranet contract in excess of the number provided in the first 
increment of the contract under subsection (b)(2) and the number ordered 
under the authority of paragraph (1), but not to exceed an additional 
150,000 work stations. The authority of the Secretary of the Navy to 
order additional work stations under this paragraph is also subject to 
approval by both the Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Chief Information Officer of the 
Department of Defense.
    ``(B) The Under Secretary of Defense for Acquisition, Technology, 
and Logistics and the Chief Information Officer of the Department of 
Defense may not grant approval to the Secretary

[[Page 115 STAT. 1066]]

of the Navy to order additional work stations under subparagraph (A) 
until each of the following occurs:
            ``(i) There has been a full transition of not less than 
        20,000 work stations to the Navy-Marine Corps Intranet.
            ``(ii) The work stations referred to in clause (i) have met 
        applicable service-level agreements specified in the Navy-Marine 
        Corps Intranet contract, as determined by contractor performance 
        measurement under oversight by the Department of the Navy.
            ``(iii) The Chief Information Officer of the Navy certifies 
        to the Secretary of the Navy and the Chief Information Officer 
        of the Department of Defense that the results of the performance 
        evaluation referred to in clause (ii) are acceptable.

    ``(3) Of the work stations ordered under the authority provided by 
paragraph (2), not more than 50 percent may reach the major milestone 
known as `assumption of responsibility' until each of the following 
occurs:
            ``(A) All work stations for the headquarters of the Naval 
        Air Systems Command have met applicable service-level agreements 
        specified in the Navy-Marine Corps Intranet contract, as 
        determined by contractor performance measurement under oversight 
        by the Department of the Navy.
            ``(B) The Chief Information Officer of the Navy certifies to 
        the Secretary of the Navy and the Chief Information Officer of 
        the Department of Defense that the results of the performance 
        evaluation referred to in subparagraph (B) are acceptable.

    ``(4) For the purposes of this section, when the information 
infrastructure and systems of a user of a work station are transferred 
into Navy-Marine Corps Intranet infrastructure and systems under the 
Navy-Marine Corps Intranet contract consistent with the applicable 
service-level agreements specified in the Navy-Marine Corps Intranet 
contract, the work station shall be considered as having been provided 
for the Navy-Marine Corps Intranet.
    ``(d) Reporting and Review Requirements.--(1) If work stations are 
ordered using the authority provided by paragraph (1) or (2) of 
subsection (c), the Secretary of the Navy shall submit to Congress a 
report, current as of the date the determination is made to order the 
work stations, on the following:
            ``(A) The number of work stations operating on the Navy-
        Marine Corps Intranet, including the number of work stations 
        regarding which assumption of responsibility has occurred.
            ``(B) The status of testing and implementation of the Navy-
        Marine Corps Intranet program.
            ``(C) The number of work stations to be ordered under 
        paragraph (1) or (2) of subsection (c), whichever applies.

    ``(2) A report containing the information required by paragraph (1) 
shall also be submitted to Congress when the requirements of paragraph 
(3) of subsection (c) are satisfied and additional work stations under 
the Navy-Marine Corps Intranet contract are authorized to reach 
assumption of responsibility.
    ``(3) The Comptroller General shall conduct a review of the impact 
that participation in the Navy-Marine Corps Intranet program has on 
information technology costs of working capital funded industrial 
facilities of the Department of the Navy and submit the results of the 
review to Congress.''.

[[Page 115 STAT. 1067]]

    (b) Navy-Marine Corps Intranet Manager.--Such section is further 
amended by inserting after subsection (d), as added by subsection (a)(2) 
of this section, the following new subsection:
    ``(e) Assignment of Navy-Marine Corps Intranet Manager.--The 
Secretary of the Navy shall assign an employee of the Department of the 
Navy to the Navy-Marine Corps Intranet program whose sole responsibility 
will be to oversee and direct the program. The employee so assigned may 
not also be the program executive officer.''.
    (c) Definitions.--Subsection (i) of such section, as redesignated by 
subsection (a)(1) of this section, is amended--
            (1) by striking ``Navy-Marine Corps Intranet Contract 
        Defined.--'' and inserting ``Definitions.--(1)''; and
            (2) by adding at the end the following new paragraph:
            ``(2) In this section, the term `assumption of 
        responsibility', with respect to a work station, means the point 
        at which the contractor team under the Navy-Marine Corps 
        Intranet contract assumes operational control of, and 
        responsibility for, the existing information infrastructure and 
        systems of a work station, in order to prepare for ultimate 
        transition of the work station to the Navy-Marine Corps 
        Intranet.''.
SEC. 363. COMPTROLLER GENERAL STUDY AND REPORT OF NATIONAL GUARD 
                        DISTRIBUTIVE TRAINING TECHNOLOGY PROJECT.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study of the Distributive Training Technology Project of 
the National Guard. The study shall examine--
            (1) current requirements of the National Guard for 
        interconnection of networks of the Distributive Training 
        Technology Project with other networks, including networks of 
        the Federal Emergency Management Agency and other Federal, 
        State, and local emergency preparedness and response agencies; 
        and
            (2) future requirements of the National Guard for 
        interconnection of networks of the Project with other networks, 
        including those Federal and State agencies having disaster 
        response functions.

    (b) Elements of Study.--For both the current requirements identified 
under subsection (a)(1) and future requirements identified under 
subsection (a)(2), the study shall examine the following:
            (1) Appropriate connections between the Project and other 
        networks.
            (2) Means of protecting the Project from outside intrusion.
            (3) Impediments to interconnectivity, including the extent 
        to which national security concerns affect interconnectivity and 
        the technological capability of the Department of Defense to 
        impede interconnectivity, as well as other concerns or 
        limitations that affect interconnectivity.
            (4) Means of improving interconnectivity.

    (c) Report.--Not <<NOTE: Deadline.>> later than 270 days after the 
date of the enactment of this Act, the Comptroller General shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the study 
conducted under subsection (a). The report shall describe the results of 
the study and shall include any recommendations that the Comptroller 
General considers appropriate in light of the study.

[[Page 115 STAT. 1068]]

SEC. 364. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT 
                        PROGRAM.

    (a) Extension of Authority.--Subsection (f) of section 391 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 10 U.S.C. 2304 note) is amended by striking ``September 30, 2000'' 
and inserting ``September 30, 2003''.
    (b) Reporting <<NOTE: 10 USC 2304 note.>> Requirements.--Subsection 
(g) of such section is amended--
            (1) in paragraph (1), by striking ``January 1, 2001'' and 
        inserting ``January 1, 2003''; and
            (2) in paragraph (2), by striking ``March 1, 2001'' and 
        inserting ``March 1, 2003''.
SEC. 365. EVALUATION OF CURRENT DEMONSTRATION PROGRAMS TO IMPROVE 
                        QUALITY OF PERSONAL PROPERTY SHIPMENTS OF 
                        MEMBERS.

    (a) Completion <<NOTE: Deadline.>> of Evaluation; Report.--Not later 
than March 31, 2002, the Secretary of Defense shall complete the ongoing 
evaluation of all test programs regarding the transportation of 
household goods for members of the Armed Forces and submit to Congress a 
report containing the results of such evaluation.

    (b) Contents of Report.--The report shall include--
            (1) the results of each test program evaluated, including 
        whether the test program satisfied the goals for the movement of 
        such household goods (as contained in the General Accounting 
        Report NSIAD 97-49) and whether current business processes and 
        information technology capabilities require upgrading or other 
        changes to improve the transportation of such household goods; 
        and
            (2) recommendations for policy improvements for military 
        household moves worldwide, including an estimate of the cost to 
        implement each recommendation.
SEC. 366. SENSE OF CONGRESS REGARDING SECURITY TO BE PROVIDED AT 
                        2002 WINTER OLYMPIC GAMES.

    It is the sense of Congress that the Secretary of Defense, upon 
receipt of the certification of the Attorney General required by section 
2564(a) of title 10, United States Code, should authorize the provision 
of assistance in support of essential security and safety at the 2002 
Winter Olympic Games to be held in Salt Lake City, Utah, and other 
locations in the State of Utah.

               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. Increase in senior enlisted active duty grade limit for Navy, 
           Marine Corps, and Air Force.

                       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 2002 limitation on non-dual status technicians.
Sec. 415. Limitations on numbers of reserve personnel serving on active 
           duty or full-time National Guard duty in certain grades for 
           administration of reserve components.

[[Page 115 STAT. 1069]]

        Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Administration of end strengths.
Sec. 422. Active duty end strength exemption for National Guard and 
           reserve personnel performing funeral honors functions.

               Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

                        Subtitle A--Active Forces

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

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2002, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 376,000.
            (3) The Marine Corps, 172,600.
            (4) The Air Force, 358,800.
SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.

    Section 691(b) of title 10, United States Code, is amended--
            (1) in paragraph (2), by striking ``372,000'' and inserting 
        ``376,000''; and
            (2) in paragraph (4), by striking ``357,000'' and inserting 
        ``358,800''.
SEC. 403. INCREASE IN SENIOR ENLISTED ACTIVE DUTY GRADE LIMIT FOR 
                        NAVY, MARINE CORPS, AND AIR FORCE.

    Section 517(a) of title 10, United States Code, is amended by 
striking ``2 percent (or, in the case of the Army, 2.5 percent)'' and 
inserting ``2.5 percent''.

                       Subtitle B--Reserve Forces

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

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 30, 
2002, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 87,000.
            (4) The Marine Corps Reserve, 39,558.
            (5) The Air National Guard of the United States, 108,400.
            (6) The Air Force Reserve, 74,700.
            (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.

[[Page 115 STAT. 1070]]

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 <<NOTE: 10 USC 12001 note.>> 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, 2002, 
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, 23,698.
            (2) The Army Reserve, 13,406.
            (3) The Naval Reserve, 14,811.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 11,591.
            (6) The Air Force Reserve, 1,437.
SEC. 413. END <<NOTE: 10 USC 115 note.>> STRENGTHS FOR MILITARY 
                        TECHNICIANS (DUAL STATUS).

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2002 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 6,249.
            (2) For the Army National Guard of the United States, 
        23,615.
            (3) For the Air Force Reserve, 9,818.
            (4) For the Air National Guard of the United States, 22,422.
SEC. 414. FISCAL YEAR 2002 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, 2002, may not exceed the following:
            (1) For the Army Reserve, 1,095.
            (2) For the Army National Guard of the United States, 1,600.
            (3) For the Air Force Reserve, 90.
            (4) For the Air National Guard of the United States, 350.

    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given that term in 
section 10217(a) of title 10, United States Code.
SEC. 415. LIMITATIONS ON NUMBERS OF RESERVE PERSONNEL SERVING ON 
                        ACTIVE DUTY OR FULL-TIME NATIONAL GUARD 
                        DUTY IN CERTAIN GRADES FOR ADMINISTRATION 
                        OF RESERVE COMPONENTS.

    (a) Officers.--The text of section 12011 of title 10, United States 
Code, is amended to read as follows:
    ``(a) Limitations.--(1) Of the total number of members of a reserve 
component who are serving on full-time reserve component duty at the end 
of any fiscal year, the number of those members who may be serving in 
each of the grades of major, lieutenant

[[Page 115 STAT. 1071]]

colonel, and colonel may not, as of the end of that fiscal year, exceed 
the number determined in accordance with the following table:

----------------------------------------------------------------------------------------------------------------
                                                         Number of officers of that reserve component who may be
                                                                        serving in the grade of:
   ``Total number of members of a reserve component    ---------------------------------------------------------
     serving on full-time reserve component duty:                              Lieutenant
                                                              Major             Colonel             Colonel
----------------------------------------------------------------------------------------------------------------
Army Reserve:
10,000................................................              1,390                740              230
11,000................................................              1,529                803              242
12,000................................................              1,668                864              252
13,000................................................              1,804                924              262
14,000................................................              1,940                984              272
15,000................................................              2,075              1,044              282
16,000................................................              2,210              1,104              291
17,000................................................              2,345              1,164              300
18,000................................................              2,479              1,223              309
19,000................................................              2,613              1,282              318
20,000................................................              2,747              1,341              327
21,000................................................              2,877              1,400              336
 
Army National Guard:
20,000................................................              1,500                850              325
22,000................................................              1,650                930              350
24,000................................................              1,790              1,010              370
26,000................................................              1,930              1,085              385
28,000................................................              2,070              1,160              400
30,000................................................              2,200              1,235              405
32,000................................................              2,330              1,305              408
34,000................................................              2,450              1,375              411
36,000................................................              2,570              1,445              411
38,000................................................              2,670              1,515              411
40,000................................................              2,770              1,580              411
42,000................................................              2,837              1,644              411
 
Marine Corps Reserve:
1,100.................................................                106                 56               20
1,200.................................................                110                 60               21
1,300.................................................                114                 63               22
1,400.................................................                118                 66               23
1,500.................................................                121                 69               24
1,600.................................................                124                 72               25
1,700.................................................                127                 75               26
1,800.................................................                130                 78               27
1,900.................................................                133                 81               28
2,000.................................................                136                 84               29
2,100.................................................                139                 87               30
2,200.................................................                141                 90               31
2,300.................................................                143                 92               32
2,400.................................................                145                 94               33
2,500.................................................                147                 96               34
2,600.................................................                149                 98               35
Air Force Reserve:
500...................................................                 83                 85               50
1,000.................................................                155                165               95
1,500.................................................                220                240              135
2,000.................................................                285                310              170

[[Page 115 STAT. 1072]]

 
2,500.................................................                350                369              203
3,000.................................................                413                420              220
3,500.................................................                473                464              230
4,000.................................................                530                500              240
4,500.................................................                585                529              247
5,000.................................................                638                550              254
5,500.................................................                688                565              261
6,000.................................................                735                575              268
7,000.................................................                770                595              280
8,000.................................................                805                615              290
10,000................................................                835                635              300
 
Air National Guard:
5,000.................................................                333                335              251
6,000.................................................                403                394              260
7,000.................................................                472                453              269
8,000.................................................                539                512              278
9,000.................................................                606                571              287
10,000................................................                673                630              296
11,000................................................                740                688              305
12,000................................................                807                742              314
13,000................................................                873                795              323
14,000................................................                939                848              332
15,000................................................              1,005                898              341
16,000................................................              1,067                948              350
17,000................................................              1,126                998              359
18,000................................................              1,185              1,048              368
19,000................................................              1,235              1,098              377
20,000................................................              1,283              1,148              380.
----------------------------------------------------------------------------------------------------------------


    ``(2) Of the total number of members of the Naval Reserve who are 
serving on full-time reserve component duty at the end of any fiscal 
year, the number of those members who may be serving in each of the 
grades of lieutenant commander, commander, and captain may not, as of 
the end of that fiscal year, exceed the number determined in accordance 
with the following table:

----------------------------------------------------------------------------------------------------------------
                                                         Number of officers who may be serving in the grade of:
 ``Total number of members of Naval Reserve serving on ---------------------------------------------------------
           full-time reserve component duty:                Lieutenant
                                                            commander          Commander            Captain
----------------------------------------------------------------------------------------------------------------
10,000................................................                807                447              141
11,000................................................                867                467              153
12,000................................................                924                485              163
13,000................................................                980                503              173
14,000................................................              1,035                521              183
15,000................................................              1,088                538              193
16,000................................................              1,142                555              203
17,000................................................              1,195                565              213
18,000................................................              1,246                575              223
19,000................................................              1,291                585              233
20,000................................................              1,334                595              242
21,000................................................              1,364                603              250

[[Page 115 STAT. 1073]]

 
22,000................................................              1,384                610              258
23,000................................................              1,400                615              265
24,000................................................              1,410                620              270.
----------------------------------------------------------------------------------------------------------------


    ``(b) Determinations by Interpolation.--If the total number of 
members of a reserve component serving on full-time reserve component 
duty is between any two consecutive numbers in the first column of the 
appropriate table in paragraph (1) or (2) of subsection (a), the 
corresponding authorized strengths for each of the grades shown in that 
table for that component are determined by mathematical interpolation 
between the respective numbers of the two strengths. If the total number 
of members of a reserve component serving on full-time reserve component 
duty is more or less than the highest or lowest number, respectively, 
set forth in the first column of the appropriate table in paragraph (1) 
or (2) of subsection (a), the Secretary concerned shall fix the 
corresponding strengths for the grades shown in that table at the same 
proportion as is reflected in the nearest limit shown in the table.
    ``(c) Reallocations to Lower Grades.--Whenever the number of 
officers serving in any grade for duty described in subsection (a) is 
less than the number authorized for that grade under this section, the 
difference between the two numbers may be applied to increase the number 
authorized under this section for any lower grade.
    ``(d) Secretarial Waiver.--(1) Upon determining that it is in the 
national interest to do so, the Secretary of Defense may increase for a 
particular fiscal year the number of reserve officers that may be on 
full-time reserve component duty for a reserve component in a grade 
referred to in a table in subsection (a) by a number that does not 
exceed the number equal to 5 percent of the maximum number specified for 
the grade in that table.
    ``(2) <<NOTE: Notice.>> Whenever the Secretary exercises the 
authority provided in paragraph (1), the Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives notice in writing of the 
adjustment made.

    ``(e) Full-Time Reserve Component Duty Defined.--In this section, 
the term `full-time reserve component duty' means the following duty:
            ``(1) Active duty described in sections 10211, 10302, 10303, 
        10304, 10305, 12310, or 12402 of this title.
            ``(2) Full-time National Guard duty (other than for 
        training) under section 502(f) of title 32.
            ``(3) Active duty described in section 708 of title 32.''.

    (b) Senior Enlisted Members.--The text of section 12012 of title 10, 
United States Code, is amended to read as follows:
    ``(a) Limitations.--Of the total number of members of a reserve 
component who are serving on full-time reserve component duty at the end 
of any fiscal year, the number of those members in each of pay grades of 
E-8 and E-9 who may be serving on active duty under section 10211 or 
12310, or on full-time National Guard duty under the authority of 
section 502(f) of title 32 (other than

[[Page 115 STAT. 1074]]

for training) in connection with organizing, administering, recruiting, 
instructing, or training the reserve components or the National Guard 
may not, as of the end of that fiscal year, exceed the number determined 
in accordance with the following table:

------------------------------------------------------------------------
                                     Number of members of that reserve
  ``Total number of members of a    component who may be serving in the
reserve component serving on full-               grade of:
   time reserve component duty:   --------------------------------------
                                          E-8                 E-9
------------------------------------------------------------------------
Army Reserve:
10,000...........................              1,052              154
11,000...........................              1,126              168
12,000...........................              1,195              180
13,000...........................              1,261              191
14,000...........................              1,327              202
15,000...........................              1,391              213
16,000...........................              1,455              224
17,000...........................              1,519              235
18,000...........................              1,583              246
19,000...........................              1,647              257
20,000...........................              1,711              268
21,000...........................              1,775              278
 
Army National Guard:
20,000...........................              1,650              550
22,000...........................              1,775              615
24,000...........................              1,900              645
26,000...........................              1,945              675
28,000...........................              1,945              705
30,000...........................              1,945              725
32,000...........................              1,945              730
34,000...........................              1,945              735
36,000...........................              1,945              738
38,000...........................              1,945              741
40,000...........................              1,945              743
42,000...........................              1,945              743
 
Naval Reserve:
10,000...........................                340              143
11,000...........................                364              156
12,000...........................                386              169
13,000...........................                407              182
14,000...........................                423              195
15,000...........................                435              208
16,000...........................                447              221
17,000...........................                459              234
18,000...........................                471              247
19,000...........................                483              260
20,000...........................                495              273
21,000...........................                507              286
22,000...........................                519              299
23,000...........................                531              312
24,000...........................                540              325
 
Marine Corps Reserve:
1,100............................                 50               11
1,200............................                 55               12
1,300............................                 60               13

[[Page 115 STAT. 1075]]

 
1,400............................                 65               14
1,500............................                 70               15
1,600............................                 75               16
1,700............................                 80               17
1,800............................                 85               18
1,900............................                 89               19
2,000............................                 93               20
2,100............................                 96               21
2,200............................                 99               22
2,300............................                101               23
2,400............................                103               24
2,500............................                105               25
2,600............................                107               26
 
Air Force Reserve:
500..............................                 75               40
1,000............................                145               75
1,500............................                208              105
2,000............................                270              130
2,500............................                325              150
3,000............................                375              170
3,500............................                420              190
4,000............................                460              210
4,500............................                495              230
5,000............................                530              250
5,500............................                565              270
6,000............................                600              290
7,000............................                670              330
8,000............................                740              370
10,000...........................                800              400
 
Air National Guard
5,000............................              1,020              405
6,000............................              1,070              435
7,000............................              1,120              465
8,000............................              1,170              490
9,000............................              1,220              510
10,000...........................              1,270              530
11,000...........................              1,320              550
12,000...........................              1,370              570
13,000...........................              1,420              589
14,000...........................              1,470              608
15,000...........................              1,520              626
16,000...........................              1,570              644
17,000...........................              1,620              661
18,000...........................              1,670              678
19,000...........................              1,720              695
20,000...........................              1,770              712.
------------------------------------------------------------------------


    ``(b) Determinations by Interpolation.--If the total number of 
members of a reserve component serving on full-time reserve component 
duty is between any two consecutive numbers in the

[[Page 115 STAT. 1076]]

first column of the table in subsection (a), the corresponding 
authorized strengths for each of the grades shown in that table for that 
component are determined by mathematical interpolation between the 
respective numbers of the two strengths. If the total number of members 
of a reserve component serving on full-time reserve component duty is 
more or less than the highest or lowest number, respectively, set forth 
in the first column of the table in subsection (a), the Secretary 
concerned shall fix the corresponding strengths for the grades shown in 
the table at the same proportion as is reflected in the nearest limit 
shown in the table.
    ``(c) Reallocations to Lower Grade.--Whenever the number of members 
serving in pay grade E-9 for duty described in subsection (a) is less 
than the number authorized for that grade under this section, the 
difference between the two numbers may be applied to increase the number 
authorized under this section for pay grade E-8.
    ``(d) Secretarial Waiver.--(1) Upon determining that it is in the 
national interest to do so, the Secretary of Defense may increase for a 
particular fiscal year the number of reserve enlisted members that may 
be on active duty or full-time National Guard duty as described in 
subsection (a) for a reserve component in a pay grade referred to in a 
table in subsection (a) by a number that does not exceed the number 
equal to 5 percent of the maximum number specified for that grade and 
reserve component in the table.
    ``(2) <<NOTE: Notice.>> Whenever the Secretary exercises the 
authority provided in paragraph (1), the Secretary shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives notice in writing of the 
adjustment made.

    ``(e) Full-Time Reserve Component Duty Defined.--In this section, 
the term `full-time reserve component duty' has the meaning given the 
term in section 12011(e) of this title.''.

        Subtitle C--Other Matters Relating to Personnel Strengths

SEC. 421. ADMINISTRATION OF END STRENGTHS.

    (a) Increase in Percentage by Which Active Component End Strengths 
May Be Increased.--Section 115(c)(1) of title 10, United States Code, is 
amended by striking ``1 percent'' and inserting ``2 percent''.
    (b) Waiver of End Strengths During National Emergency.--The text of 
section 123a of such title is amended to read as follows:
    ``(a) During War or National Emergency.--If at the end of any fiscal 
year there is in effect a war or national emergency, the President may 
waive any statutory end strength with respect to that fiscal year. Any 
such waiver may be issued only for a statutory end strength that is 
prescribed by law before the waiver is issued.
    ``(b) Upon Termination of War or National Emergency.--Upon the 
termination of a war or national emergency with respect to which the 
President has exercised the authority provided by subsection (a), the 
President may defer the effectiveness of any statutory end strength with 
respect to the fiscal year during which

[[Page 115 STAT. 1077]]

the termination occurs. Any such deferral may not extend beyond the last 
day of the sixth month beginning after the date of such termination.
    ``(c) Statutory End Strength.--In this section, the term `statutory 
end strength' means any end-strength limitation with respect to a fiscal 
year that is prescribed by law for any military or civilian component of 
the armed forces or of the Department of Defense.''.
SEC. 422. ACTIVE DUTY END STRENGTH EXEMPTION FOR NATIONAL GUARD 
                        AND RESERVE PERSONNEL PERFORMING FUNERAL 
                        HONORS FUNCTIONS.

    Section 115(d) of title 10, United States Code, is amended by adding 
at the end the following new paragraphs:
            ``(10) Members of reserve components on active duty to 
        prepare for and to perform funeral honors functions for funerals 
        of veterans in accordance with section 1491 of this title.
            ``(11) Members on full-time National Guard duty to prepare 
        for and perform funeral honors functions for funerals of 
        veterans in accordance with section 1491 of this title.''.

               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 2002 a total of 
$82,307,281,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2002.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Enhanced flexibility for management of senior general and flag 
           officer positions.
Sec. 502. Certifications of satisfactory performance for retirement of 
           officers in grades above major general and rear admiral.
Sec. 503. Review of actions of selection boards.
Sec. 504. Temporary reduction of time-in-grade requirement for 
           eligibility for promotion for certain active-duty list 
           officers in grades of first lieutenant and lieutenant (junior 
           grade).
Sec. 505. Authority for promotion without selection board consideration 
           for all fully qualified officers in grade of first lieutenant 
           or lieutenant (junior grade) in the Navy.
Sec. 506. Authority to adjust date of rank of certain promotions delayed 
           by reason of unusual circumstances.
Sec. 507. Authority for limited extension of medical deferment of 
           mandatory retirement or separation.
Sec. 508. Authority for limited extension on active duty of members 
           subject to mandatory retirement or separation.
Sec. 509. Exemption from certain administrative limitations for retired 
           officers ordered to active duty as defense or service 
           attaches.
Sec. 510. Officer in charge of United States Navy Band.

             Subtitle B--Reserve Component Personnel Policy

Sec. 511. Placement on active-duty list of certain Reserve officers on 
           active duty for a period of three years or less.

[[Page 115 STAT. 1078]]

Sec. 512. Exception to baccalaureate degree requirement for appointment 
           of Reserve officers to grades above first lieutenant.
Sec. 513. Improved disability benefits for certain reserve component 
           members.
Sec. 514. Time-in-grade requirement for reserve component officers 
           retired with a nonservice-connected disability.
Sec. 515. Equal treatment of Reserves and full-time active duty members 
           for purposes of managing personnel deployments.
Sec. 516. Modification of physical examination requirements for members 
           of the Individual Ready Reserve.
Sec. 517. Retirement of Reserve members without requirement for formal 
           application or request.
Sec. 518. Space-required travel by Reserves on military aircraft.
Sec. 519. Payment of Federal Employee Health Benefit Program premiums 
           for certain Reservists called to active duty in support of 
           contingency operations.

  Subtitle C--Joint Specialty Officers and Joint Professional Military 
                                Education

Sec. 521. Nominations and promotions for joint specialty officers.
Sec. 522. Joint duty credit.
Sec. 523. Retroactive joint service credit for duty in certain joint 
           task forces.
Sec. 524. Revision to annual report on joint officer management.
Sec. 525. Requirement for selection for joint specialty before promotion 
           to general or flag officer grade.
Sec. 526. Independent study of joint officer management and joint 
           professional military education reforms.
Sec. 527. Professional development education.
Sec. 528. Authority for National Defense University to enroll certain 
           private sector civilians.
Sec. 529. Continuation of reserve component professional military 
           education test.

               Subtitle D--Military Education and Training

Sec. 531. Defense Language Institute Foreign Language Center.
Sec. 532. Authority for the Marine Corps University to award degree of 
           master of strategic studies.
Sec. 533. Foreign students attending the service academies.
Sec. 534. Increase in maximum age for appointment as a cadet or 
           midshipman in Senior Reserve Officers' Training Corps 
           scholarship programs.
Sec. 535. Participation of regular enlisted members of the Armed Forces 
           in Senior Reserve Officers' Training Corps program.
Sec. 536. Authority to modify the service obligation of certain ROTC 
           cadets in military junior colleges receiving financial 
           assistance.
Sec. 537. Repeal of limitation on number of Junior Reserve Officers' 
           Training Corps units.
Sec. 538. Modification of nurse officer candidate accession program 
           restriction on students attending educational institutions 
           with senior reserve officers' training programs.
Sec. 539. Reserve health professionals stipend program expansion.
Sec. 540. Housing allowance for the chaplain for the Corps of Cadets at 
           the United States Military Academy.

              Subtitle E--Recruiting and Accession Programs

Sec. 541. 18-month enlistment pilot program.
Sec. 542. Improved benefits under the Army College First program.
Sec. 543. Correction and extension of certain Army recruiting pilot 
           program authorities.
Sec. 544. Military recruiter access to secondary school students.
Sec. 545. Permanent authority for use of military recruiting funds for 
           certain expenses at Department of Defense recruiting 
           functions.
Sec. 546. Report on health and disability benefits for pre-accession 
           training and education programs.

       Subtitle F--Decorations, Awards, and Posthumous Commissions

Sec. 551. Authority for award of the Medal of Honor to Humbert R. 
           Versace, Jon E. Swanson, and Ben L. Salomon for valor.
Sec. 552. Review regarding award of Medal of Honor to certain Jewish 
           American and Hispanic American war veterans.
Sec. 553. Authority to issue duplicate Medals of Honor and to replace 
           stolen military decorations.
Sec. 554. Retroactive Medal of Honor special pension.

[[Page 115 STAT. 1079]]

Sec. 555. Waiver of time limitations for award of certain decorations to 
           certain persons.
Sec. 556. Sense of Congress on issuance of certain medals.
Sec. 557. Sense of Congress on development of a more comprehensive, 
           uniform policy for the award of decorations to military and 
           civilian personnel of the Department of Defense.
Sec. 558. Posthumous Army commission in the grade of captain in the 
           Chaplains Corps to Ella E. Gibson for service as chaplain of 
           the First Wisconsin Heavy Artillery Regiment during the Civil 
           War.

                     Subtitle G--Funeral Honors Duty

Sec. 561. Participation of military retirees in funeral honors details.
Sec. 562. Funeral honors duty performed by Reserve and Guard members to 
           be treated as inactive-duty training for certain purposes.
Sec. 563. Use of military leave for funeral honors duty by Reserve 
           members and National Guardsmen.
Sec. 564. Authority to provide appropriate articles of clothing as a 
           civilian uniform for civilians participating in funeral honor 
           details.

             Subtitle H--Military Spouses and Family Members

Sec. 571. Improved financial and other assistance to military spouses 
           for job training and education.
Sec. 572. Persons authorized to be included in surveys of military 
           families regarding Federal programs.
Sec. 573. Clarification of treatment of classified information 
           concerning persons in a missing status.
Sec. 574. Transportation to annual meeting of next-of-kin of persons 
           unaccounted for from conflicts after World War II.
Sec. 575. Amendments to charter of Defense Task Force on Domestic 
           Violence.

        Subtitle I--Military Justice and Legal Assistance Matters

Sec. 581. Blood alcohol content limit for the offense under the Uniform 
           Code of Military Justice of drunken operation of a vehicle, 
           aircraft, or vessel.
Sec. 582. Requirement that courts-martial consist of not less than 12 
           members in capital cases.
Sec. 583. Acceptance of voluntary legal assistance for the civil affairs 
           of members and former members of the uniformed services and 
           their dependents.

                        Subtitle J--Other Matters

Sec. 591. Congressional review period for change in ground combat 
           exclusion policy.
Sec. 592. Per diem allowance for lengthy or numerous deployments.
Sec. 593. Clarification of disability severance pay computation.
Sec. 594. Transportation or storage of privately owned vehicles on 
           change of permanent station.
Sec. 595. Repeal of requirement for final Comptroller General report 
           relating to Army end strength allocations.
Sec. 596. Continued Department of Defense administration of National 
           Guard Challenge program and Department of Defense Starbase 
           program.
Sec. 597. Report on Defense Science Board recommendation on original 
           appointments in regular grades for Academy graduates and 
           certain other new officers.
Sec. 598. Sense of Congress regarding the selection of officers for 
           recommendation for appointment as Commander, United States 
           Transportation Command.

                  Subtitle A--Officer Personnel Policy

SEC. 501. ENHANCED FLEXIBILITY FOR MANAGEMENT OF SENIOR GENERAL 
                        AND FLAG OFFICER POSITIONS.

    (a) Repeal of Limit on Number of Officers on Active Duty in Grades 
of General and Admiral.--Section 528 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 32 of such title is amended by striking the item relating to 
section 528.

[[Page 115 STAT. 1080]]

SEC. 502. CERTIFICATIONS OF SATISFACTORY PERFORMANCE FOR 
                        RETIREMENT OF OFFICERS IN GRADES ABOVE 
                        MAJOR GENERAL AND REAR ADMIRAL.

    Section 1370(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3)(A) The Secretary of Defense may delegate authority to make a 
certification with respect to an officer under paragraph (1) only to the 
Under Secretary of Defense for Personnel and Readiness or the Deputy 
Under Secretary of Defense for Personnel and Readiness.
    ``(B) If authority is delegated under subparagraph (A) and, in the 
course of consideration of an officer for a certification under 
paragraph (1), the Under Secretary or (if such authority is delegated to 
both the Under and Deputy Under Secretary) the Deputy Under Secretary 
makes a determination described in subparagraph (C) with respect to that 
officer, the Under Secretary or Deputy Under Secretary, as the case may 
be, may not exercise the delegated authority in that case, but shall 
refer the matter to the Secretary of Defense, who shall personally 
determine whether to issue a certification under paragraph (1) with 
respect to that officer.
    ``(C) A determination referred to in subparagraph (B) is a 
determination that there is potentially adverse information concerning 
an officer and that such information has not previously been submitted 
to the Senate in connection with the consideration by the Senate of a 
nomination of that officer for an appointment for which the advice and 
consent of the Senate is required.''.

SEC. 503. REVIEW OF ACTIONS OF SELECTION BOARDS.

    (a) In General.--(1) Chapter 79 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1558. Review of actions of selection boards: correction of 
                    military records by special boards; judicial 
                    review

    ``(a) Correction of Military Records.--The Secretary of a military 
department may correct a person's military records in accordance with a 
recommendation made by a special board. Any such correction may be made 
effective as of the effective date of the action taken on a report of a 
previous selection board that resulted in the action corrected in the 
person's military records.
    ``(b) Definitions.--In this section:
            ``(1) Special board.--(A) The term `special board' means a 
        board that the Secretary of a military department convenes under 
        any authority to consider whether to recommend a person for 
        appointment, enlistment, reenlistment, assignment, promotion, 
        retention, separation, retirement, or transfer to inactive 
        status in a reserve component instead of referring the records 
        of that person for consideration by a previously convened 
        selection board which considered or should have considered that 
        person.
            ``(B) Such term includes a board for the correction of 
        military records convened under section 1552 of this title, if 
        designated as a special board by the Secretary concerned.
            ``(C) Such term does not include a promotion special 
        selection board convened under section 628 or 14502 of this 
        title.
            ``(2) Selection board.--(A) The term `selection board' means 
        a selection board convened under section 573(c), 580, 580a, 581, 
        611(b), 637, 638, 638a, 14101(b), 14701, 14704, or

[[Page 115 STAT. 1081]]

        14705 of this title, and any other board convened by the 
        Secretary of a military department under any authority to 
        recommend persons for appointment, enlistment, reenlistment, 
        assignment, promotion, or retention in the armed forces or for 
        separation, retirement, or transfer to inactive status in a 
        reserve component for the purpose of reducing the number of 
        persons serving in the armed forces.
            ``(B) Such term does not include any of the following:
                    ``(i) A promotion board convened under section 
                573(a), 611(a), or 14101(a) of this title.
                    ``(ii) A special board.
                    ``(iii) A special selection board convened under 
                section 628 of this title.
                    ``(iv) A board for the correction of military 
                records convened under section 1552 of this title.
            ``(3) Involuntarily board-separated.--The term 
        `involuntarily board-separated' means separated or retired from 
        an armed force, or transferred to the Retired Reserve or to 
        inactive status in a reserve component, as a result of a 
        recommendation of a selection board.

    ``(c) Relief Associated With Correction of Certain Actions.--(1) The 
Secretary of the military department concerned shall ensure that an 
involuntarily board-separated person receives relief under paragraph (2) 
or under paragraph (3) if the person, as a result of a correction of the 
person's military records under subsection (a), becomes entitled to 
retention on or restoration to active duty or to active status in a 
reserve component.
    ``(2)(A) A person referred to in paragraph (1) shall, with that 
person's consent, be restored to the same status, rights, and 
entitlements (less appropriate offsets against back pay and allowances) 
in that person's armed force as the person would have had if the person 
had not been selected to be involuntarily board-separated as a result of 
an action the record of which is corrected under subsection (a). An 
action under this subparagraph is subject to subparagraph (B).
    ``(B) Nothing in subparagraph (A) may be construed to permit a 
person to be on active duty or in an active status in a reserve 
component after the date on which the person would have been separated, 
retired, or transferred to the Retired Reserve or to inactive status in 
a reserve component if the person had not been selected to be 
involuntarily board-separated in an action of a selection board the 
record of which is corrected under subsection (a).
    ``(3) If an involuntarily board-separated person referred to in 
paragraph (1) does not consent to a restoration of status, rights, and 
entitlements under paragraph (2), the Secretary concerned shall pay that 
person back pay and allowances (less appropriate offsets), and shall 
provide that person service credit, for the period--
            ``(A) beginning on the date of the person's separation, 
        retirement, or transfer to the Retired Reserve or to inactive 
        status in a reserve component, as the case may be; and
            ``(B) ending on the earlier of--
                    ``(i) the date on which the person would have been 
                so restored under paragraph (2), as determined by the 
                Secretary concerned; or
                    ``(ii) the date on which the person would otherwise 
                have been separated, retired, or transferred to the 
                Retired

[[Page 115 STAT. 1082]]

                Reserve or to inactive status in a reserve component, as 
                the case may be.

    ``(d) Finality of Unfavorable Action.--If a special board makes a 
recommendation not to correct the military records of a person regarding 
action taken in the case of that person on the basis of a previous 
report of a selection board, the action previously taken on that report 
shall be considered as final as of the date of the action taken on that 
report.
    ``(e) Regulations.--(1) The Secretary of each military department 
shall prescribe regulations to carry out this section. Regulations under 
this subsection may not apply to subsection (f), other than to paragraph 
(4)(C) of that subsection.
    ``(2) The Secretary may prescribe in the regulations under paragraph 
(1) the circumstances under which consideration by a special board may 
be provided for under this section, including the following:
            ``(A) The circumstances under which consideration of a 
        person's case by a special board is contingent upon application 
        by or for that person.
            ``(B) Any time limits applicable to the filing of an 
        application for such consideration.

    ``(3) Regulations prescribed by the Secretary of a military 
department under this subsection may not take effect until approved by 
the Secretary of Defense.
    ``(f) Judicial Review.--(1) A person seeking to challenge an action 
or recommendation of a selection board, or an action taken by the 
Secretary of the military department concerned on the report of a 
selection board, is not entitled to relief in any judicial proceeding 
unless the action or recommendation has first been considered by a 
special board under this section or the Secretary concerned has denied 
the convening of such a board for such consideration.
    ``(2)(A) A court of the United States may review a determination by 
the Secretary of a military department not to convene a special board in 
the case of any person. In any such case, the court may set aside the 
Secretary's determination only if the court finds the determination to 
be--
            ``(i) arbitrary or capricious;
            ``(ii) not based on substantial evidence;
            ``(iii) a result of material error of fact or material 
        administrative error; or
            ``(iv) otherwise contrary to law.

    ``(B) If a court sets aside a determination by the Secretary of a 
military department not to convene a special board, it shall remand the 
case to the Secretary concerned, who shall provide for consideration by 
a special board.
    ``(3) A court of the United States may review a recommendation of a 
special board or an action of the Secretary of the military department 
concerned on the report of a special board. In any such case, a court 
may set aside the action only if the court finds that the recommendation 
or action was--
            ``(A) arbitrary or capricious;
            ``(B) not based on substantial evidence;
            ``(C) a result of material error of fact or material 
        administrative error; or
            ``(D) otherwise contrary to law.

    ``(4)(A) If, six months after receiving a complete application for 
consideration by a special board in any case, the Secretary

[[Page 115 STAT. 1083]]

concerned has not convened a special board and has not denied 
consideration by a special board in that case, the Secretary shall be 
deemed for the purposes of this subsection to have denied consideration 
of the case by a special board.
    ``(B) If, six months after the convening of a special board in any 
case, the Secretary concerned has not taken final action on the report 
of the special board, the Secretary shall be deemed for the purposes of 
this subsection to have denied relief in such case.
    ``(C) Under regulations prescribed under subsection (e), the 
Secretary of a military department may waive the applicability of 
subparagraph (A) or (B) in a case if the Secretary determines that a 
longer period for consideration of the case is warranted. Such a waiver 
may be for an additional period of not more than six months. The 
Secretary concerned may not delegate authority to make a determination 
under this subparagraph.
    ``(g) Existing Jurisdiction.--Nothing in this section limits--
            ``(1) the jurisdiction of any court of the United States 
        under any provision of law to determine the validity of any law, 
        regulation, or policy relating to selection boards; or
            ``(2) the authority of the Secretary of a military 
        department to correct a military record under section 1552 of 
        this title.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``1558. Review of actions of selection boards: correction of military 
            records by special boards; judicial review.''.

    (b) Special Selection Boards.--Section 628 of such title is 
amended--
            (1) by redesignating subsection (g) as subsection (k); and
            (2) by inserting after subsection (f) the following new 
        subsections:

    ``(g) Judicial Review.--(1)(A) A court of the United States may 
review a determination by the Secretary of a military department under 
subsection (a)(1) or (b)(1) not to convene a special selection board in 
the case of any person. In any such case, the court may set aside the 
Secretary's determination only if the court finds the determination to 
be--
            ``(i) arbitrary or capricious;
            ``(ii) not based on substantial evidence;
            ``(iii) a result of material error of fact or material 
        administrative error; or
            ``(iv) otherwise contrary to law.

    ``(B) If a court sets aside a determination by the Secretary of a 
military department not to convene a special selection board under this 
section, it shall remand the case to the Secretary concerned, who shall 
provide for consideration by such a board.
    ``(2) A court of the United States may review the action of a 
special selection board convened under this section or an action of the 
Secretary of the military department concerned on the report of such a 
board. In any such case, a court may set aside the action only if the 
court finds that the action was--
            ``(A) arbitrary or capricious;
            ``(B) not based on substantial evidence;
            ``(C) a result of material error of fact or material 
        administrative error; or
            ``(D) otherwise contrary to law.

[[Page 115 STAT. 1084]]

    ``(3)(A) If, six months after receiving a complete application for 
consideration by a special selection board under this section in any 
case, the Secretary concerned has not convened such a board and has not 
denied consideration by such a board in that case, the Secretary shall 
be deemed for the purposes of this subsection to have denied the 
consideration of the case by such a board.
    ``(B) If, six months after the convening of a special selection 
board under this section in any case, the Secretary concerned has not 
taken final action on the report of the board, the Secretary shall be 
deemed for the purposes of this subsection to have denied relief in such 
case.
    ``(C) Under regulations prescribed under subsection (j), the 
Secretary of a military department may waive the applicability of 
subparagraph (A) or (B) in a case if the Secretary determines that a 
longer period for consideration of the case is warranted. Such a waiver 
may be for an additional period of not more than six months. The 
Secretary concerned may not delegate authority to make a determination 
under this subparagraph.
    ``(h) Limitations of Other Jurisdiction.--No official or court of 
the United States may, with respect to a claim based to any extent on 
the failure of a person to be selected for promotion by a promotion 
board--
            ``(1) consider the claim unless the person has first been 
        referred by the Secretary concerned to a special selection board 
        convened under this section and acted upon by that board and the 
        report of the board has been approved by the President; or
            ``(2) except as provided in subsection (g), grant any relief 
        on the claim unless the person has been selected for promotion 
        by a special selection board convened under this section to 
        consider the person for recommendation for promotion and the 
        report of the board has been approved by the President.

    ``(i) Existing Jurisdiction.--Nothing in this section limits--
            ``(1) the jurisdiction of any court of the United States 
        under any provision of law to determine the validity of any law, 
        regulation, or policy relating to selection boards; or
            ``(2) the authority of the Secretary of a military 
        department to correct a military record under section 1552 of 
        this title.

    ``(j) Regulations.--(1) The Secretary of each military department 
shall prescribe regulations to carry out this section. Regulations under 
this subsection may not apply to subsection (g), other than to paragraph 
(3)(C) of that subsection.
    ``(2) The Secretary may prescribe in the regulations under paragraph 
(1) the circumstances under which consideration by a special selection 
board may be provided for under this section, including the following:
            ``(A) The circumstances under which consideration of a 
        person's case by a special selection board is contingent upon 
        application by or for that person.
            ``(B) Any time limits applicable to the filing of an 
        application for such consideration.

    ``(3) Regulations prescribed by the Secretary of a military 
department under this subsection may not take effect until approved by 
the Secretary of Defense.''.
    (c) Effective <<NOTE: Applicability. 10 USC 628 note.>> Date.--(1) 
Except as provided in paragraph (2), the amendments made by this section 
shall apply with respect

[[Page 115 STAT. 1085]]

to any proceeding pending on or after the date of the enactment of this 
Act without regard to whether a challenge to an action of a selection 
board of any of the Armed Forces being considered in the proceeding was 
initiated before, on, or after that date.

    (2) The amendments made by this section shall not apply with respect 
to any action commenced in a court of the United States before the date 
of the enactment of this Act.
SEC. 504. TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT FOR 
                        ELIGIBILITY FOR PROMOTION FOR CERTAIN 
                        ACTIVE-DUTY LIST OFFICERS IN GRADES OF 
                        FIRST LIEUTENANT AND LIEUTENANT (JUNIOR 
                        GRADE).

    (a) Authority.--Subsection (a)(1)(B) of section 619 of title 10, 
United States Code, is amended by inserting before the period at the end 
the following: ``, except that the minimum period of service in effect 
under this subparagraph before October 1, 2005, shall be eighteen 
months''.
    (b) Stylistic Amendments.--Such section is further amended as 
follows:
            (1) Subsection (a) is amended by striking ``(a)(1)'' and 
        inserting ``(a) Time-in-Grade Requirements.--(1)''.
            (2) Subsection (b) is amended by striking ``(b)(1)'' and 
        inserting ``(b) Continued Eligibility for Consideration for 
        Promotion of Officers Who Have Previously Failed of Selection.--
        (1)''.
            (3) Subsection (c) is amended by striking ``(c)(1)'' and 
        inserting ``(c) Officers To Be Considered by Promotion Boards.--
        (1)''.
            (4) Subsection (d) is amended by inserting ``Certain 
        Officers Not To Be Considered.--'' after ``(d)''.

    (c) Technical Amendment.--Subsection (a)(4) of such section is 
amended by striking ``clause (A)'' and inserting ``subparagraph (A)''.
SEC. 505. AUTHORITY FOR PROMOTION WITHOUT SELECTION BOARD 
                        CONSIDERATION FOR ALL FULLY QUALIFIED 
                        OFFICERS IN GRADE OF FIRST LIEUTENANT OR 
                        LIEUTENANT (JUNIOR GRADE) IN THE NAVY.

    (a) Active-Duty List Promotions.--(1) Section 624(a) of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
    ``(3)(A) Except as provided in subsection (d), officers on the 
active-duty list in the grade of first lieutenant or, in the case of the 
Navy, lieutenant (junior grade) who are on an approved all-fully-
qualified-officers list shall be promoted to the next higher grade in 
accordance with regulations prescribed by the Secretary concerned.
    ``(B) <<NOTE: President.>> An all-fully-qualified-officers list 
shall be considered to be approved for purposes of subparagraph (A) when 
the list is approved by the President. When so approved, such a list 
shall be treated in the same manner as a promotion list under this 
chapter.

    ``(C) The Secretary of a military department may make a 
recommendation to the President for approval of an all-fully-qualified-
officers list only when the Secretary determines that all officers on 
the list are needed in the next higher grade to accomplish mission 
objectives.

[[Page 115 STAT. 1086]]

    ``(D) For purposes of this paragraph, an all-fully-qualified-
officers list is a list of all officers on the active-duty list in a 
grade who the Secretary of the military department concerned 
determines--
            ``(i) are fully qualified for promotion to the next higher 
        grade; and
            ``(ii) would be eligible for consideration for promotion to 
        the next higher grade by a selection board convened under 
        section 611(a) of this title upon the convening of such a 
        board.''.

    (2) Section 631 of such title is amended by adding at the end the 
following new subsection:
    ``(d) For the purposes of this chapter, an officer of the Army, Air 
Force, or Marine Corps who holds the grade of first lieutenant, and an 
officer of the Navy who holds the grade of lieutenant (junior grade), 
shall be treated as having failed of selection for promotion if the 
Secretary of the military department concerned determines that the 
officer would be eligible for consideration for promotion to the next 
higher grade by a selection board convened under section 611(a) of this 
title if such a board were convened but is not fully qualified for 
promotion when recommending for promotion under section 624(a)(3) of 
this title all fully qualified officers of the officer's armed force in 
such grade who would be eligible for such consideration.''.
    (3) Section 611 of such title is amended--
            (A) in subsection (a)--
                    (i) by striking ``Under'' and all that follows 
                through ``require,'' and inserting ``Whenever the needs 
                of the service require, the Secretary of the military 
                department concerned''; and
                    (ii) by adding at the end the following new 
                sentence: ``The preceding sentence does not require the 
                convening of a selection board in the case of officers 
                in the permanent grade of first lieutenant or, in the 
                case of the Navy, lieutenant (junior grade) when the 
                Secretary concerned recommends for promotion to the next 
                higher grade under section 624(a)(3) of this title all 
                such officers whom the Secretary finds to be fully 
                qualified for promotion.'';
            (B) in subsection (b), by striking ``Under'' and all that 
        follows through ``require,'' and inserting ``Whenever the needs 
        of the service require, the Secretary of the military department 
        concerned''; and
            (C) by adding at the end the following new subsection:

    ``(c) <<NOTE: Regulations.>> The convening of selection boards under 
subsections (a) and (b) shall be under regulations prescribed by the 
Secretary of Defense.''.

    (b) Reserve Active-Status List Promotions.--(1) Section 14308(b) of 
title 10, United States Code, is amended by adding at the end the 
following new paragraph:
    ``(4)(A) Officers in the permanent grade of first lieutenant or, in 
the case of the Navy, lieutenant (junior grade) who are on an approved 
all-fully-qualified-officers list shall be promoted to the next higher 
grade in accordance with regulations prescribed by the Secretary 
concerned. Such promotions shall be in the manner specified in section 
12203 of this title.
    ``(B) <<NOTE: President.>> An all-fully-qualified-officers list 
shall be considered to be approved for purposes of subparagraph (A) when 
the list is approved by the President. When so approved, such a list 
shall

[[Page 115 STAT. 1087]]

be treated in the same manner as a promotion list under this chapter and 
chapter 1403 of this title.

    ``(C) The Secretary of a military department may make a 
recommendation to the President for approval of an all-fully-qualified-
officers list only when the Secretary determines that all officers on 
the list are needed in the next higher grade to accomplish mission 
objectives.
    ``(D) For purposes of this paragraph, an all-fully-qualified-
officers list is a list of all officers on the reserve active-status 
list in a grade who the Secretary of the military department concerned 
determines--
            ``(i) are fully qualified for promotion to the next higher 
        grade; and
            ``(ii) would be eligible for consideration for promotion to 
        the next higher grade by a selection board convened under 
        section 14101(a) of this title upon the convening of such a 
        board.''.

    (2) Section 14504 of such title is amended by adding at the end the 
following new subsection:
    ``(c) Officers in Grade of First Lieutenant or Lieutenant (Junior 
Grade) Found Not Fully Qualified for Promotion.--For the purposes of 
this chapter, an officer of the Army, Air Force, or Marine Corps on a 
reserve active-status list who holds the grade of first lieutenant, and 
an officer of the Navy on a reserve active-status list who holds the 
grade of lieutenant (junior grade), shall be treated as having failed of 
selection for promotion if the Secretary of the military department 
concerned determines that the officer would be eligible for 
consideration for promotion to the next higher grade by a selection 
board convened under section 14101(a) of this title if such a board were 
convened but is not fully qualified for promotion when recommending for 
promotion under section 14308(b)(4) of this title all fully qualified 
officers of the officer's armed force in such grade who would be 
eligible for such consideration.''.
    (3) Section 14101(a) of such title is amended by adding at the end 
the following new paragraph:
    ``(3) Paragraph (1) does not require the convening of a selection 
board in the case of officers in the permanent grade of first lieutenant 
or, in the case of the Navy, lieutenant (junior grade) when the 
Secretary concerned recommends for promotion to the next higher grade 
under section 14308(b)(4) of this title all such officers whom the 
Secretary finds to be fully qualified for promotion.''.
    (c) Conforming Amendments.--Title 10, United States Code, is amended 
as follows:
            (1)(A) Section 619(d) is amended by adding at the end the 
        following new paragraph:
            ``(4) An officer in the grade of first lieutenant or, in the 
        case of the Navy, lieutenant (junior grade) who is on an 
        approved all-fully-qualified-officers list under section 
        624(a)(3) of this title.''.
            (B) Section 14301(c) is amended by adding at the end the 
        following new paragraph:
            ``(5) An officer in the grade of first lieutenant or, in the 
        case of the Navy, lieutenant (junior grade) who is on an 
        approved all-fully-qualified-officers list under section 
        14308(b)(4) of this title.''.
            (2)(A) Section 624(d) is amended--

[[Page 115 STAT. 1088]]

                    (i) in the second sentence of paragraph (1), by 
                inserting after ``on the promotion list'' the following: 
                ``(including an approved all-fully-qualified-officers 
                list, if applicable)''; and
                    (ii) in the second sentence of paragraph (2), by 
                inserting after ``to such grade, the officer'' the 
                following: ``shall be retained on the promotion list 
                (including an approved all-fully-qualified-officers 
                list, if applicable) and''.
            (B) Section 14311 is amended--
                    (i) in subsection (a)(2), by inserting after ``on 
                the promotion list'' the following: ``(including an 
                approved all-fully-qualified-officers list, if 
                applicable)''; and
                    (ii) in subsection (b), by inserting in the second 
                sentence after ``on the promotion list'' the following: 
                ``(including an approved all-fully-qualified-officers 
                list, if applicable)''.
            (3)(A) Section 628(a)(1) is amended by inserting after ``not 
        so considered,'' the following: ``or the name of a person that 
        should have been placed on an all-fully-qualified-officers list 
        under section 624(a)(3) of this title was not so placed,''.
            (B) Section 14502(a)(1) is amended by inserting after 
        ``because of administrative error,'' the following: ``or whose 
        name was not placed on an all-fully-qualified-officers list 
        under section 14308(b)(4) of this title because of 
        administrative error,''.
            (4) Section 1211(e) is amended by inserting after ``a 
        promotion list,'' the following: ``an approved all-fully-
        qualified-officers list,''.

    (d) Technical Amendments To Strike Certain DOPMA References to 
Regular Officers.--Chapter 36 of such title is amended as follows:
            (1) Section 624(c) is amended--
                    (A) by inserting ``, in the case of officers of the 
                Army, Air Force, or Marine Corps,'' after ``captain''; 
                and
                    (B) by inserting ``, in the case of officers of the 
                Navy,'' after ``or lieutenant'' the second place it 
                appears.
            (2) Section 630 is amended by striking ``regular'' both 
        places it appears.
            (3) Sections 631(a) and 632(a) are each amended--
                    (A) by striking ``Regular Army, Regular Air Force, 
                or Regular Marine Corps'' and inserting ``Army, Air 
                Force, or Marine Corps on the active-duty list'';
                    (B) by striking ``Regular Navy'' and inserting 
                ``Navy on the active-duty list''; and
                    (C) by striking ``regular'' each place it appears.
            (4)(A) The heading of section 630 and the item relating to 
        that section in the table of sections at the beginning of 
        subchapter III are each amended by striking the third word.
            (B) The heading of section 631 and the item relating to that 
        section in the table of sections at the beginning of subchapter 
        III are each amended by striking the eighth word.
            (C) The heading of section 632 and the item relating to that 
        section in the table of sections at the beginning of subchapter 
        III are each amended by striking the eighth and twenty-first 
        words.

[[Page 115 STAT. 1089]]

SEC. 506. AUTHORITY TO ADJUST DATE OF RANK OF CERTAIN PROMOTIONS 
                        DELAYED BY REASON OF UNUSUAL 
                        CIRCUMSTANCES.

    (a) Active Duty Officers.--Subsection 741(d) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
    ``(4)(A) The Secretary concerned may adjust the date of rank of an 
officer appointed under section 624(a) of this title to a higher grade 
that is not a general officer or flag officer grade if the appointment 
of that officer to that grade is delayed from the date on which (as 
determined by the Secretary) it would otherwise have been made by reason 
of unusual circumstances (as determined by the Secretary) that cause an 
unintended delay in--
            ``(i) the processing or approval of the report of the 
        selection board recommending the appointment of that officer to 
        that grade; or
            ``(ii) the processing or approval of the promotion list 
        established on the basis of that report.

    ``(B) The adjusted date of rank applicable to the grade of an 
officer under subparagraph (A) shall be consistent--
            ``(i) with the officer's position on the promotion list for 
        that grade and competitive category when additional officers in 
        that grade and competitive category were needed; and
            ``(ii) with compliance with the applicable authorized 
        strengths for officers in that grade and competitive category.

    ``(C) <<NOTE: Effective date.>> The adjusted date of rank applicable 
to the grade of an officer under subparagraph (A) shall be the effective 
date for--
            ``(i) the officer's pay and allowances for that grade; and
            ``(ii) the officer's position on the active-duty list.

    ``(D) <<NOTE: Notification.>> When under subparagraph (A) the 
Secretary concerned adjusts the date of rank of an officer in a grade to 
which the officer was appointed by and with the advice and consent of 
the Senate and the adjustment is to a date before the date of the advice 
and consent of the Senate to that appointment, the Secretary shall 
promptly transmit to the Committee on Armed Services of the Senate a 
notification of that adjustment. Any such notification shall include the 
name of the officer and a discussion of the reasons for the adjustment 
of date of rank.

    ``(E) <<NOTE: Regulations. Applicability.>> Any adjustment in date 
of rank under this paragraph shall be made under regulations prescribed 
by the Secretary of Defense, which shall apply uniformly among the Army, 
Navy, Air Force, and Marine Corps.''.

    (b) Reserve Officers.--(1) Section 14308(c) of such title is 
amended--
            (A) by redesignating paragraph (2) as paragraph (3); and
            (B) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) The date of rank of an officer appointed to a higher grade 
under this section may be adjusted in the same manner as an adjustment 
may be made under section 741(d)(4) of this title in the date of rank of 
an officer appointed to a higher grade under section 624(a) of this 
title. In any use of the authority under the preceding sentence, 
subparagraph (C)(ii) of such section shall be applied by substituting 
`reserve active-status list' for `active-duty list'.''.

[[Page 115 STAT. 1090]]

    (2) Paragraph (3) of such section, as redesignated by paragraph 
(1)(A), is amended by inserting ``provided in paragraph (2) or as 
otherwise'' after ``Except as''.
    (c) Effective <<NOTE: 10 USC 741 note.>> Date.--(1) Paragraph (4) of 
section 741(d) of title 10, United States Code, as added by subsection 
(a), and paragraph (2) of section 14308(c) of such title, as added by 
subsection (b), shall apply with respect to any report of a selection 
board recommending officers for promotion to the next higher grade that 
is submitted to the Secretary of the military department concerned on or 
after the date of the enactment of this Act.

    (2) The Secretary of the military department concerned may apply the 
applicable paragraph referred to in paragraph (1) in the case of an 
appointment of an officer to a higher grade resulting from a report of a 
selection board submitted to the Secretary before the date of the 
enactment of this Act if the Secretary determines that such appointment 
would have been made on an earlier date that is on or after October 1, 
2001, and was delayed under the circumstances specified in paragraph (4) 
of section 741(d) of title 10, United States Code, as added by 
subsection (a).
SEC. 507. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF 
                        MANDATORY RETIREMENT OR SEPARATION.

    The text of section 640 of title 10, United States Code, is amended 
to read as follows:
    ``(a) If the Secretary of the military department concerned 
determines that the evaluation of the physical condition of an officer 
and determination of the officer's entitlement to retirement or 
separation for physical disability require hospitalization or medical 
observation and that such hospitalization or medical observation cannot 
be completed with confidence in a manner consistent with the member's 
well being before the date on which the officer would otherwise be 
required to retire or be separated under this title, the Secretary may 
defer the retirement or separation of the officer under this title.
    ``(b) A deferral of retirement or separation under subsection (a) 
may not extend for more than 30 days after completion of the evaluation 
requiring hospitalization or medical observation.''.
SEC. 508. AUTHORITY FOR LIMITED EXTENSION ON ACTIVE DUTY OF 
                        MEMBERS SUBJECT TO MANDATORY RETIREMENT OR 
                        SEPARATION.

    (a) Section 12305 Stop-Loss Authority.--Section 12305 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(c) Upon the termination of a suspension made under the authority 
of subsection (a) of a provision of law otherwise requiring the 
separation or retirement of officers on active duty because of age, 
length of service or length of service in grade, or failure of selection 
for promotion, the Secretary concerned shall extend by up to 90 days the 
otherwise required separation or retirement date of any officer covered 
by the suspended provision whose separation or retirement date, but for 
the suspension, would have been before the date of the termination of 
the suspension or within 90 days after the date of such termination.''.
    (b) Section 123 Stop-Loss Authority.--Section 123 of such title is 
amended by adding at the end the following new subsection:
    ``(d) Upon the termination of a suspension made under the authority 
of subsection (a) of a provision of law otherwise requiring

[[Page 115 STAT. 1091]]

the separation or retirement of officers on active duty because of age, 
length of service or length of service in grade, or failure of selection 
for promotion, the Secretary concerned shall extend by up to 90 days the 
otherwise required separation or retirement date of any officer covered 
by the suspended provision whose separation or retirement date, but for 
the suspension, would have been before the date of the termination of 
the suspension or within 90 days after the date of such termination.''.
SEC. 509. EXEMPTION FROM CERTAIN ADMINISTRATIVE LIMITATIONS FOR 
                        RETIRED OFFICERS ORDERED TO ACTIVE DUTY AS 
                        DEFENSE OR SERVICE ATTACHES.

    (a) Limitation of Period of Recalled Service.--Section 688(e)(2) of 
title 10, United States Code, is amended by adding at the end the 
following new subparagraph:
            ``(D) An officer who is assigned to duty as a defense 
        attache or service attache for the period of active duty to 
        which ordered.''.

    (b) Limitation on Number of Recalled Officers on Active Duty.--
Section 690(b)(2) of such title is amended by adding at the end the 
following new subparagraph:
            ``(E) An officer who is assigned to duty as a defense 
        attache or service attache for the period of active duty to 
        which ordered.''.

    (c) Applicability.--The <<NOTE: 10 USC 688 note.>> amendments made 
by subsections (a) and (b) shall apply with respect to officers serving 
on active duty as a defense attache or service attache on or after the 
date of the enactment of this Act.
SEC. 510. OFFICER IN CHARGE OF UNITED STATES NAVY BAND.

    (a) Detail and Grade.--Section 6221 of title 10, United States Code, 
is amended to read as follows:
``Sec. 6221. United States Navy Band; officer in charge

    ``(a) There is a Navy band known as the United States Navy Band.
    ``(b)(1) An officer of the Navy designated for limited duty under 
section 5589 or 5596 of this title who is serving in a grade above 
lieutenant may be detailed by the Secretary of the Navy as Officer in 
Charge of the United States Navy Band.
    ``(2) While serving as Officer in Charge of the United States Navy 
Band, an officer shall hold the grade of captain if appointed to that 
grade by the President, by and with the advice and consent of the 
Senate. Such an appointment may be made notwithstanding section 5596(d) 
of this title.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 565 of such title is 
amended to read as follows:

``6221. United States Navy Band; officer in charge.''.

[[Page 115 STAT. 1092]]

             Subtitle B--Reserve Component Personnel Policy

SEC. 511. PLACEMENT ON ACTIVE-DUTY LIST OF CERTAIN RESERVE 
                        OFFICERS ON ACTIVE DUTY FOR A PERIOD OF 
                        THREE YEARS OR LESS.

    (a) Clarification of Exemption.--Section 641(1)(D) of title 10, 
United States Code, is amended to read as follows:
                    ``(D) on active duty under section 12301(d) of this 
                title, other than as provided under subparagraph (C), if 
                the call or order to active duty, under regulations 
                prescribed by the Secretary concerned, specifies a 
                period of three years or less and continued placement on 
                the reserve active-status list;''.

    (b) Retroactive <<NOTE: 10 USC 641 note.>> Application.--(1) The 
Secretary of the military department concerned may provide that an 
officer who was excluded from the active-duty list under section 
641(1)(D) of title 10, United States Code, as amended by section 521 of 
the Floyd D. Spence National Defense Authorization Act for Fiscal Year 
2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-108), 
shall be considered to have been on the active-duty list during the 
period beginning on the date on which the officer was so excluded and 
ending on the date of the enactment of this Act.

    (2) The Secretary of the military department concerned may provide 
that a Reserve officer who was placed on the active-duty list on or 
after October 30, 1997, shall be placed on the reserve active-status 
list if the officer otherwise meets the conditions specified in section 
641(1)(D) of title 10, United States Code, as amended by subsection (a).
SEC. 512. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR 
                        APPOINTMENT OF RESERVE OFFICERS TO GRADES 
                        ABOVE FIRST LIEUTENANT.

    (a) Reauthorization of Waiver Authority for Army OCS Graduates and 
Inclusion of Certain Marine Officers.--Section 12205 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Waiver Authority for Army OCS Graduates and Certain Marine 
Corps Officers.--(1) The Secretary of the Army may waive the 
applicability of subsection (a) to any officer whose original 
appointment in the Army as a Reserve officer is through the Army Officer 
Candidate School program.
    ``(2) The Secretary of the Navy may waive the applicability of 
subsection (a) to any officer whose original appointment in the Marine 
Corps as a Reserve officer is through the Marine Corps meritorious 
commissioning program.
    ``(3) Any such waiver shall be made on a case-by-case basis, 
considering the individual circumstances of the officer involved, and 
may continue in effect for no more than two years after the waiver is 
granted. The Secretary concerned may provide for such a waiver to be 
effective before the date of the waiver, as appropriate in an individual 
case.''.
    (b) Effective <<NOTE: Applicability. 10 USC 12205 note.>> Date.--
Subsection (d) of section 12205 of title 10, United States Code, as 
added by subsection (a), shall apply with respect to officers appointed 
before, on, or after the date of the enactment of this Act.

[[Page 115 STAT. 1093]]

SEC. 513. IMPROVED DISABILITY BENEFITS FOR CERTAIN RESERVE 
                        COMPONENT MEMBERS.

    (a) Medical and Dental Care.--Sections 1074a(a)(3) and 1076(a)(2)(C) 
of title 10, United States Code, are each amended by striking ``, if 
the'' and all that follows through ``member's residence''.
    (b) Eligibility for Disability Retirement or Separation.--Sections 
1204(2)(B)(iii) and 1206(2)(B)(iii) of title 10, United States Code, are 
each amended by striking ``, if the'' and all that follows through 
``member's residence''.
    (c) Recovery, Care, and Disposition of Remains.--Section 
1481(a)(2)(D) of title 10, United States Code, is amended by striking 
``, if the site is outside reasonable commuting distance from the 
member's residence''.
    (d) Entitlement to Basic Pay.--Subsections (g)(1)(D) and (h)(1)(D) 
of section 204 of title 37, United States Code, are amended by striking 
``, if the site is outside reasonable commuting distance from the 
member's residence''.
    (e) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C) 
of title 37, United States Code, is amended by striking ``, if the site 
is outside reasonable commuting distance from the member's residence''.
SEC. 514. TIME-IN-GRADE REQUIREMENT FOR RESERVE COMPONENT OFFICERS 
                        RETIRED WITH A NONSERVICE CONNECTED 
                        DISABILITY.

    Section 1370(d)(3)(B) of title 10, United States Code, is amended to 
read as follows:
    ``(B) A person covered by subparagraph (A) who has completed at 
least six months of satisfactory service in grade may be credited with 
satisfactory service in the grade in which serving at the time of 
transfer or discharge, notwithstanding failure of the person to complete 
three years of service in that grade, if that person is transferred from 
an active status or discharged as a reserve commissioned officer--
            ``(i) solely due to the requirements of a nondiscretionary 
        provision of law requiring that transfer or discharge due to the 
        person's age or years of service; or
            ``(ii) because the person no longer meets the qualifications 
        for membership in the Ready Reserve solely because of a physical 
        disability, as determined, at a minimum, by a medical evaluation 
        board and at the time of such transfer or discharge such person 
        (pursuant to section 12731b of this title or otherwise) meets 
        the service requirements established by section 12731(a) of this 
        title for eligibility for retired pay under chapter 1223 of this 
        title, unless the disability is described in section 12731b of 
        this title.''.
SEC. 515. EQUAL TREATMENT OF RESERVES AND FULL-TIME ACTIVE DUTY 
                        MEMBERS FOR PURPOSES OF MANAGING PERSONNEL 
                        DEPLOYMENTS.

    (a) Residence of Reserves at Home Station.--Paragraph (2) of section 
991(b) of title 10, United States Code, is amended to read as follows:
    ``(2) In the case of a member of a reserve component who is 
performing active service pursuant to orders that do not establish a 
permanent change of station, the housing referred to in paragraph

[[Page 115 STAT. 1094]]

(1) is any housing (which may include the member's residence) that the 
member usually occupies for use during off-duty time when on garrison 
duty at the member's permanent duty station or homeport, as the case may 
be.''.
    (b) Effective <<NOTE: Applicability. 10 USC 991 note.>> Date.--The 
amendment made by this section shall apply with respect to duty 
performed on or after October 1, 2001.
SEC. 516. MODIFICATION OF PHYSICAL EXAMINATION REQUIREMENTS FOR 
                        MEMBERS OF THE INDIVIDUAL READY RESERVE.

    (a) IRR Requirement.--Section 10206 of title 10, United States Code, 
is amended--
            (1) in the matter in subsection (a) preceding paragraph (1), 
        by striking ``Ready Reserve'' and inserting ``Selected 
        Reserve'';
            (2) by designating the second sentence of subsection (a) as 
        subsection (c);
            (3) by redesignating subsection (b) as subsection (d); and
            (4) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) A member of the Individual Ready Reserve or inactive National 
Guard shall be examined for physical fitness as necessary to determine 
the member's physical fitness for--
            ``(1) military duty or promotion;
            ``(2) attendance at a school of the armed forces; or
            ``(3) other action related to career progression.''.

    (b) Technical Amendment.--Subsection (a)(1) of such section is 
amended by striking ``his'' and inserting ``the member's''.
SEC. 517. RETIREMENT OF RESERVE MEMBERS WITHOUT REQUIREMENT FOR 
                        FORMAL APPLICATION OR REQUEST.

    (a) Retired Reserve.--Section 10154(2) of title 10, United States 
Code, is amended by striking ``upon their request''.
    (b) Retirement for Failure of Selection of Promotion.--(1) Paragraph 
(2) of section 14513 of such title is amended by striking ``, if the 
officer is qualified and applies for such transfer'' and inserting ``if 
the officer is qualified for such transfer and does not request (in 
accordance with regulations prescribed by the Secretary concerned) not 
to be transferred to the Retired Reserve''.
    (2)(A) The heading for such section is amended to read as follows:
``Sec. 14513. Failure of selection for promotion: transfer, 
                      retirement, or discharge''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 1407 of such title is amended to read as 
follows:
``14513. Failure of selection for promotion: transfer, retirement, or 
              discharge.''.

    (c) Retirement for Years of Service or After Selection for Early 
Removal.--Section 14514 of such title is amended--
            (1) in paragraph (1), by striking ``, if the officer is 
        qualified and applies for such transfer'' and inserting ``if the 
        officer is qualified for such transfer and does not request (in 
        accordance with regulations prescribed by the Secretary 
        concerned) not to be transferred to the Retired Reserve''; and
            (2) by striking paragraph (2) and inserting the following:

[[Page 115 STAT. 1095]]

            ``(2) be discharged from the officer's reserve appointment 
        if the officer is not qualified for transfer to the Retired 
        Reserve or has requested (in accordance with regulations 
        prescribed by the Secretary concerned) not to be so 
        transferred.''.

    (d) Retirement for Age.--Section 14515 of such title is amended--
            (1) in paragraph (1), by striking ``, if the officer is 
        qualified and applies for such transfer'' and inserting ``if the 
        officer is qualified for such transfer and does not request (in 
        accordance with regulations prescribed by the Secretary 
        concerned) not to be transferred to the Retired Reserve''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) be discharged from the officer's reserve appointment 
        if the officer is not qualified for transfer to the Retired 
        Reserve or has requested (in accordance with regulations 
        prescribed by the Secretary concerned) not to be so 
        transferred.''.

    (e) Discharge or Retirement of Warrant Officers for Years of Service 
or Age.--(1) Chapter 1207 of such title is amended by adding at the end 
the following new section:
``Sec. 12244. Warrant officers: discharge or retirement for years 
                      of service or for age

    ``Each reserve warrant officer of the Army, Navy, Air Force, or 
Marine Corps who is in an active status and has reached the maximum 
years of service or age prescribed by the Secretary concerned shall--
            ``(1) be transferred to the Retired Reserve if the warrant 
        officer is qualified for such transfer and does not request (in 
        accordance with regulations prescribed by the Secretary 
        concerned) not to be transferred to the Retired Reserve; or
            ``(2) be discharged if the warrant officer is not qualified 
        for transfer to the Retired Reserve or has requested (in 
        accordance with regulations prescribed by the Secretary 
        concerned) not to be so transferred.''.

    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``12244. Warrant officers: discharge or retirement for years of service 
              or for age.''.

    (f) Discharge or Retirement of Enlisted Members for Years of Service 
or Age.--(1) Chapter 1203 of such title is amended by adding at the end 
the following new section:
``Sec. 12108. Enlisted members: discharge or retirement for years 
                      of service or for age

    ``Each reserve enlisted member of the Army, Navy, Air Force, or 
Marine Corps who is in an active status and has reached the maximum 
years of service or age prescribed by the Secretary concerned shall--
            ``(1) be transferred to the Retired Reserve if the member is 
        qualified for such transfer and does not request (in accordance 
        with regulations prescribed by the Secretary concerned) not to 
        be transferred to the Retired Reserve; or
            ``(2) be discharged if the member is not qualified for 
        transfer to the Retired Reserve or has requested (in accordance 
        with regulations prescribed by the Secretary concerned) not to 
        be so transferred.''.

[[Page 115 STAT. 1096]]

    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``12108. Enlisted members: discharge or retirement for years of service 
              or for age.''.

    (g) Effective <<NOTE: 10 USC 10154 note.>> Date.--The amendments 
made by this section shall take effect on the first day of the first 
month that begins more than 180 days after the date of the enactment of 
this Act.
SEC. 518. SPACE-REQUIRED TRAVEL BY RESERVES ON MILITARY AIRCRAFT.

    (a) Correction of Impairment to Authorized Travel With Allowances.--
Subsection (a) of section 18505 of title 10, United States Code, is 
amended by striking ``annual training duty or'' each place it appears.
    (b) Conforming Amendments.--The heading for such section, and the 
item relating to such section in the table of sections at the beginning 
of chapter 1805 of such title, are each amended by striking the fourth, 
fifth, sixth, and seventh words.
SEC. 519. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM 
                        PREMIUMS FOR CERTAIN RESERVISTS CALLED TO 
                        ACTIVE DUTY IN SUPPORT OF CONTINGENCY 
                        OPERATIONS.

    (a) In General.--Subsection (e) of section 8906 of title 5, United 
States Code, is amended by adding at the end the following new 
paragraph:
    ``(3)(A) An employing agency may pay both the employee and 
Government contributions, and any additional administrative expenses 
otherwise chargeable to the employee, with respect to health care 
coverage for an employee described in subparagraph (B) and the family of 
such employee.
    ``(B) An employee referred to in subparagraph (A) is an employee 
who--
            ``(i) is enrolled in a health benefits plan under this 
        chapter;
            ``(ii) is a member of a reserve component of the armed 
        forces;
            ``(iii) is called or ordered to active duty in support of a 
        contingency operation (as defined in section 101(a)(13) of title 
        10);
            ``(iv) is placed on leave without pay or separated from 
        service to perform active duty; and
            ``(v) serves on active duty for a period of more than 30 
        consecutive days.

    ``(C) Notwithstanding the one-year limitation on coverage described 
in paragraph (1)(A), payment may be made under this paragraph for a 
period not to exceed 18 months.''.
    (b) Conforming Amendment.--The matter preceding paragraph (1) in 
subsection (f) of such section is amended to read as follows:
    ``(f) The Government contribution, and any additional payments under 
subsection (e)(3)(A), for health benefits for an employee shall be 
paid--''.
    (c) Applicability.--The <<NOTE: 5 USC 8906 note.>> amendments made 
by this section apply with respect to employees called to active duty on 
or after December 8, 1995, and an agency may make retroactive payments 
to such employees for premiums paid on or after such date.

[[Page 115 STAT. 1097]]

  Subtitle C--Joint Specialty Officers and Joint Professional Military 
                                Education

SEC. 521. NOMINATIONS AND PROMOTIONS FOR JOINT SPECIALTY OFFICERS.

    (a) Selection of Officers for the Joint Speciality.--Paragraph (2) 
of section 661(b) of title 10, United States Code, is amended by 
striking ``The Secretaries'' and all that follows through ``officers--'' 
and inserting ``Each officer on the active-duty list on the date of the 
enactment of the National Defense Authorization Act for Fiscal Year 2002 
who has not before that date been nominated for the joint specialty by 
the Secretary of a military department, and each officer who is placed 
on the active-duty list after such date, who meets the requirements of 
subsection (c) shall automatically be considered to have been nominated 
for the joint specialty. From among those officers considered to be 
nominated for the joint specialty, the Secretary may select for the 
joint specialty only officers--''.
    (b) Promotion Rate for Officers With the Joint Specialty.--Paragraph 
(2) of section 662(a) of such title is amended by striking ``promoted at 
a rate'' and inserting ``promoted--
                    ``(A) during the three-year period beginning on the 
                date of the enactment of the National Defense 
                Authorization Act for Fiscal Year 2002, at a rate not 
                less than the rate for officers of the same armed force 
                in the same grade and competitive category; and
                    ``(B) after the end of the period specified in 
                subparagraph (A), at a rate''.

SEC. 522. JOINT DUTY CREDIT.

    Paragraph (4) of section 664(i) of title 10, United States Code, is 
amended--
            (1) in subparagraph (E), by striking ``The'' and inserting 
        ``Except as provided in subparagraph (F), the''; and
            (2) by adding at the end the following new subparagraph:
            ``(F) Service in a temporary joint task force assignment not 
        involved in combat or combat-related operations may not be 
        credited for the purposes of joint duty, unless, and only if--
                    ``(i) the service of the officer and the nature of 
                the joint task force not only meet all criteria of this 
                section, except subparagraph (E), but also any 
                additional criteria the Secretary may establish;
                    ``(ii) the Secretary has specifically approved the 
                operation conducted by the joint task force as one that 
                qualifies for joint service credit, and notifies 
                Congress upon each approval, providing the criteria that 
                led to that approval; and
                    ``(iii) the operation is conducted by the joint task 
                force in an environment where an extremely fragile state 
                of peace and high potential for hostilities coexist.''.
SEC. 523. RETROACTIVE <<NOTE: 10 USC 664 note.>> JOINT SERVICE 
                        CREDIT FOR DUTY IN CERTAIN JOINT TASK 
                        FORCES.

    (a) Authority.--In accordance with section 664(i) of title 10, 
United States Code, as amended by section 522, the Secretary

[[Page 115 STAT. 1098]]

of Defense may award joint service credit to any officer who served on 
the staff of a United States joint task force headquarters in an 
operation and during the period set forth in subsection (b) and who 
meets the criteria specified in such section. To determine which 
officers qualify for such retroactive credit, the Secretary shall 
undertake a case-by-case review of the records of officers.
    (b) Eligible Operations.--Service in the following operations, 
during the specified periods, may be counted for credit under subsection 
(a):
            (1) Operation Northern Watch, during the period beginning on 
        August 1, 1992, and ending on a date to be determined.
            (2) Operation Southern Watch, during the period beginning on 
        August 27, 1992, and ending on a date to be determined.
            (3) Operation Able Sentry, during the period beginning on 
        June 26, 1993, and ending on February 28, 1999.
            (4) Operation Joint Endeavor, during the period beginning on 
        December 25, 1995, and ending on December 19, 1996.
            (5) Operation Joint Guard, during the period beginning on 
        December 20, 1996, and ending on June 20, 1998.
            (6) Operation Desert Thunder, beginning on January 24, 1998, 
        and ending on December 15, 1998.
            (7) Operation Joint Forge, beginning on June 20, 1998, and 
        ending on June 10, 1999.
            (8) Operation Noble Anvil, beginning on March 24, 1999, and 
        ending on July 20, 1999.
            (9) Operation Joint Guardian, beginning on June 11, 1999, 
        and ending on a date to be determined.

    (c) Report.--Not <<NOTE: Deadline.>> later than one year after the 
date of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report of the numbers, by service, grade, and operation, 
of the officers given joint service credit in accordance with this 
section.
SEC. 524. REVISION TO ANNUAL REPORT ON JOINT OFFICER MANAGEMENT.

    Section 667 of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``(A)'' after ``(1)''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B) The number of officers who meet the criteria for 
        selection for the joint specialty but were not selected, 
        together with the reasons why.'';
            (2) by amending paragraph (2) to read as follows:
            ``(2) The number of officers with the joint specialty, shown 
        by grade and branch or specialty and by education.'';
            (3) in paragraph (3)--
                    (A) in subparagraph (A) and (B), by striking 
                ``nominated'' and inserting ``selected'';
                    (B) by inserting ``and'' at the end of subparagraph 
                (D);
                    (C) by striking subparagraph (E); and
                    (D) by redesignating subparagraph (F) as 
                subparagraph (E);
            (4) in paragraph (4)(A), by striking ``nominated'' and 
        inserting ``selected'';
            (5) in paragraph (14)--

[[Page 115 STAT. 1099]]

                    (A) by inserting ``(A)'' after ``(14)''; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(B) An assessment of the extent to which the Secretary of 
        each military department is assigning personnel to joint duty 
        assignments in accordance with this chapter and the policies, 
        procedures, and practices established by the Secretary of 
        Defense under section 661(a) of this title.''; and
            (6) in paragraph (16), by striking ``section 664(i)'' in the 
        matter preceding subparagraph (A) and in subparagraph (B) and 
        inserting ``subparagraphs (E) and (F) of section 664(i)(4)''.
SEC. 525. REQUIREMENT FOR SELECTION FOR JOINT SPECIALTY BEFORE 
                        PROMOTION TO GENERAL OR FLAG OFFICER 
                        GRADE.

    (a) Requirement.--Subsection (a) of section 619a of title 10, United 
States Code, is amended by striking ``unless'' and all that follows and 
inserting ``unless--
            ``(1) the officer has completed a full tour of duty in a 
        joint duty assignment (as described in section 664(f) of this 
        title); and
            ``(2) for appointments after September 30, 2007, the officer 
        has been selected for the joint specialty in accordance with 
        section 661 of this title.''.

    (b) Waiver Authority.--Subsection (b) of that section is amended by 
striking ``may waive subsection (a) in the following circumstances:'' 
and inserting ``may waive paragraph (1) or paragraph (2) of subsection 
(a), or both paragraphs (1) and (2) of subsection (a), in the following 
circumstances:''.
    (c) Proposed <<NOTE: Deadline. 10 USC 619a note.>> Legislative 
Changes.--Not later than December 1, 2002, the Secretary of Defense 
shall submit to Congress a draft proposal for such legislative changes 
as the Secretary considers needed to implement the amendment made by 
subsections (a) and (b).
SEC. 526. INDEPENDENT <<NOTE: 10 USC 661 note.>> STUDY OF JOINT 
                        OFFICER MANAGEMENT AND JOINT PROFESSIONAL 
                        MILITARY EDUCATION REFORMS.

    (a) Study.--The Secretary of Defense shall provide for an 
independent study of the joint officer management system and the joint 
professional military education system. The Secretary shall ensure that 
the entity conducting the study is provided such 
information <<NOTE: Reports. Deadline.>> and support as required. The 
Secretary shall include in the contract for the study a requirement that 
the entity conducting the study submit a report to Congress on the study 
not later than one year after the date of the enactment of this Act.

    (b) Matters To Be Included With Respect to Joint Officer 
Management.--With respect to the joint officer management system, the 
entity conducting the independent study shall provide for the following:
            (1) Assessment of implications for joint officer education, 
        development, and management that would result from proposed 
        joint organizational operational concepts (such as standing 
        joint task forces) and from emerging officer management and 
        personnel reforms (such as longer careers and more 
        stabilization), that are under consideration by the Secretary of 
        Defense.
            (2) Assessment of the effectiveness of the current joint 
        officer management system to develop and use joint specialty

[[Page 115 STAT. 1100]]

        qualified officers in meeting both current and future 
        requirements for joint specialty officers.
            (3) Recommendations, based on empirical and other data, to 
        improve the effectiveness of the joint officer management 
        system, especially with regard to the following:
                    (A) The proper mix and sequencing of education 
                assignments and experience assignments (to include, with 
                respect to both types of assignments, consideration of 
                the type and quality, and the length, of such 
                assignments) to qualify an officer as a joint specialty 
                officer, as well as the implications of adopting a 
                variable joint duty tour length and the advisability and 
                implications of a system of qualifying officers as joint 
                specialty officers that uses multiple shorter 
                qualification tracks to selection as a joint specialty 
                officer than are now codified.
                    (B) The system of using joint specialty officers, 
                including the continued utility of such measures as--
                          (i) the required fill of positions on the 
                      joint duty assignment list, as specified in 
                      paragraphs (1) and (4) of section 661(d) of title 
                      10, United States Code;
                          (ii) the fill by such officers of a required 
                      number of critical billets, as prescribed by 
                      section 661(d)(2) of such title;
                          (iii) the mandated fill by general and flag 
                      officers of a minimum number of critical billets, 
                      as prescribed by section 661(d)(3) of such title; 
                      and
                          (iv) current promotion policy objectives for 
                      officers with the joint specialty, officers 
                      serving on the Joint Staff, and officers serving 
                      in joint duty assignment list positions, as 
                      prescribed by section 662 of such title.
                    (C) Changes in policy and law required to provide 
                officers the required joint specialty qualification 
                before promotion to general or flag officer grade.
                    (D) A determination of the number of reserve 
                component officers who would be qualified for 
                designation as a joint specialty officer by reason of 
                experience or education if the standards of existing 
                law, including waiver authorities, were applied to them, 
                and recommendations for a process for qualifying and 
                employing future reserve component officers as joint 
                specialty officers.

    (c) Matters To Be Included With Respect to Joint Professional 
Military Education.--With respect to the joint professional military 
education system, the entity conducting the independent study shall 
provide for the following:
            (1) The number of officers who under the current system (A) 
        qualified as joint specialty officers by attending joint 
        professional military education programs before their first 
        joint duty assignment, (B) qualified as joint specialty officers 
        after arriving at their first joint duty assignment but before 
        completing that assignment, and (C) qualified as joint specialty 
        officers without any joint professional military education.
            (2) Recommended initiatives (include changes in officer 
        personnel management law, if necessary) to provide incentives 
        and otherwise facilitate attendance at joint professional 
        military education programs before an officer's first joint duty 
        assignment.

[[Page 115 STAT. 1101]]

            (3) Recommended goals for attendance at the Joint Forces 
        Staff College en route to a first joint duty assignment.
            (4) An assessment of the continuing utility of statutory 
        requirements for use of officers following joint professional 
        military education, as prescribed by section 662(d) of title 10, 
        United States Code.
            (5) Determination of whether joint professional military 
        education programs should remain principally an in-resident, 
        multi-service experience and what role non-resident or 
        distributive learning can or should play in future joint 
        professional military education programs.
            (6) Examination of options for the length of and increased 
        capacity at Joint Forces Staff College, and whether other in-
        resident joint professional military education sources should be 
        opened, and if opened, how they might be properly accredited and 
        overseen to provide instruction at the level of the program 
        designated as ``joint professional military education''.

    (d) Chairman of Joint Chiefs of Staff.--With respect to the roles of 
the Secretary of Defense and the Chairman of the Joint Chiefs of Staff, 
the entity conducting the independent study shall--
            (1) provide for an evaluation of the current roles of the 
        Secretary of Defense, the Chairman of the Joint Chiefs of Staff, 
        and joint staff in law, policy, and implementation with regard 
        to establishing and maintaining oversight of joint officer 
        management, career guidelines, and joint professional military 
        education; and
            (2) make recommendations to improve and strengthen those 
        roles.

    (e) Requirements for Study Entity.--In providing for the independent 
study required by subsection (a), the Secretary of Defense shall ensure 
that the entity conducting the study--
            (1) is not a Department of Defense organization; and
            (2) shall, at a minimum, involve in the study, in an 
        integral way, the following persons:
                    (A) The Chairman of the Joint Chiefs of Staff and 
                available former Chairmen of the Joint Chiefs of Staff.
                    (B) Members and former members of the Joint Staff, 
                the Armed Forces, the Congress, and congressional staff 
                who are or who have been significantly involved in the 
                development, implementation, or modification of joint 
                officer management and joint professional military 
                education.
                    (C) Experts in joint officer management and 
                education from civilian academic and research centers.

SEC. 527. PROFESSIONAL DEVELOPMENT EDUCATION.

    (a) Executive <<NOTE: Effective date. 10 USC 2162 note.>> Agent for 
Funding.--(1) Effective beginning with fiscal year 2003, the Secretary 
of Defense shall be the executive agent for funding professional 
development education operations of all components of the National 
Defense University, including the Joint Forces Staff College. The 
Secretary may not delegate the Secretary's functions and 
responsibilities under the preceding sentence to the Secretary of a 
military department.

    (2) Nothing in this subsection affects policies in effect on the 
date of the enactment of this Act with respect to--

[[Page 115 STAT. 1102]]

            (A) the reporting of the President of the National Defense 
        University to the Chairman of the Joint Chiefs of Staff; or
            (B) provision of logistical and base operations support for 
        components of the National Defense University by the military 
        departments.

    (b) Preparation of Budget Requests.--Section 2162(b) 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) As executive agent for funding professional development 
education at the National Defense University, including the Joint Forces 
Staff College, the Secretary of Defense, with the advice of the Chairman 
of the Joint Chiefs of Staff, shall prepare the annual budget for 
professional development education operations at the National Defense 
University and set forth that request as a separate budget request in 
the materials submitted to Congress in support of the budget request for 
the Department of Defense. Nothing in the preceding sentence affects 
policies in effect on the date of the enactment of this paragraph with 
respect to budgeting for the funding of logistical and base operations 
support for components of the National Defense University through the 
military departments.''.
    (c) Funding Source.--(1) Section 2165 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(d) Source of Funds for Professional Development Education 
Operations.--Funding for the professional development education 
operations of the National Defense University shall be provided from 
funds made available to the Secretary of Defense from the annual 
appropriation `Operation and Maintenance, Defense-wide'.''.
    (2) <<NOTE: Effective date. 10 USC 2165 note.>> Subsection (d) of 
section 2165 of title 10, United States Code, as added by paragraph (1), 
shall become effective beginning with fiscal year 2003.
SEC. 528. AUTHORITY FOR NATIONAL DEFENSE UNIVERSITY TO ENROLL 
                        CERTAIN PRIVATE SECTOR CIVILIANS.

    (a) In General.--(1) Chapter 108 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2167. National Defense University: admission of private 
                    sector civilians to professional military 
                    education program

    ``(a) Authority for Admission.--The Secretary of Defense may permit 
eligible private sector employees who work in organizations relevant to 
national security to receive instruction at the National Defense 
University in accordance with this section. No more than the equivalent 
of 10 full-time student positions may be filled at any one time by 
private sector employees enrolled under this section. Upon successful 
completion of the course of instruction in which enrolled, any such 
private sector employee may be awarded an appropriate diploma or degree 
under section 2165 of this title.
    ``(b) Eligible Private Sector Employees.--For purposes of this 
section, an eligible private sector employee is an individual employed 
by a private firm that is engaged in providing to the Department of 
Defense or other Government departments or agencies significant and 
substantial defense-related systems, products,

[[Page 115 STAT. 1103]]

or services or whose work product is relevant to national security 
policy or strategy. A private sector employee admitted for instruction 
at the National Defense University remains eligible for such instruction 
only so long as that person remains employed by the same firm.
    ``(c) Annual Certification by Secretary of Defense.--Private sector 
employees may receive instruction at the National Defense University 
during any academic year only if, before the start of that academic 
year, the Secretary of Defense 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 
private sector employees under this section during that year will 
further national security interests of the United States.
    ``(d) Program Requirements.--The Secretary of Defense shall ensure 
that--
            ``(1) the curriculum for the professional military education 
        program in which private sector employees may be enrolled under 
        this section is not readily available through other schools and 
        concentrates on national security relevant issues; and
            ``(2) the course offerings at the National Defense 
        University continue to be determined solely by the needs of the 
        Department of Defense.

    ``(e) Tuition.--The President of the National Defense University 
shall charge students enrolled under this section a rate--
            ``(1) that is at least the rate charged for employees of the 
        United States outside the Department of Defense, less 
        infrastructure costs, and
            ``(2) that considers the value to the school and course of 
        the private sector student.

    ``(f) Standards of Conduct.--While receiving instruction at the 
National Defense University, 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 
university.
    ``(g) Use of Funds.--Amounts received by the National Defense 
University for instruction of students enrolled under this section shall 
be retained by the university to defray the costs of such instruction. 
The source, and the disposition, of such funds shall be specifically 
identified in records of the university.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``2167. National Defense University: admission of private sector 
            civilians to professional military education program.''.

    (b) Effective <<NOTE: 10 USC 2167 note.>> Date.--Section 2167 of 
title 10, United States Code, as added by subsection (a), shall take 
effect on January 1, 2002.
SEC. 529. CONTINUATION OF RESERVE COMPONENT PROFESSIONAL MILITARY 
                        EDUCATION TEST.

    (a) Continuation of Concept Validation Test.--During fiscal year 
2002, the Secretary of Defense shall continue the concept validation 
test of Reserve component joint professional military education that was 
begun in fiscal year 2001 at the National Defense University.

[[Page 115 STAT. 1104]]

    (b) Pilot Program.--If the Secretary of Defense determines that the 
results of the concept validation test referred to in subsection (a) 
warrant conducting a pilot program of the concept that was the subject 
of the test, the Secretary shall conduct such a pilot program during 
fiscal year 2003.
    (c) Funding.--The Secretary shall provide funds for the concept 
validation test under subsection (a) and for any pilot program under 
subsection (b) from funds appropriated to the Secretary of Defense in 
addition to those appropriated for operations of the National Defense 
University.

               Subtitle D--Military Education and Training

SEC. 531. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER.

    (a) Authority To Confer Associate of Arts Degree.--Chapter 108 of 
title 10, United States Code, is amended by adding after section 2167, 
as added by section 528(a)(1), the following new section:
``Sec. 2168. Defense Language Institute Foreign Language Center: 
                    degree of Associate of Arts in foreign 
                    language

    ``(a) Subject to subsection (b), the Commandant of the Defense 
Language Institute may confer an Associate of Arts degree in a foreign 
language upon any graduate of the Foreign Language Center of the 
Institute who fulfills the requirements for that degree.
    ``(b) A degree may be conferred upon a student under this section 
only if the Provost of the Center certifies to the Commandant that the 
student has satisfied all the requirements prescribed for the degree.
    ``(c) <<NOTE: Regulations.>> The authority provided by subsection 
(a) shall be exercised under regulations prescribed by the Secretary of 
Defense.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
2167, as added by section 528(a)(2), the following new item:
``2168. Defense Language Institute Foreign Language Center: degree of 
            Associate of Arts in foreign language.''.
SEC. 532. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD 
                        DEGREE OF MASTER OF STRATEGIC STUDIES.

    (a) Marine Corps War College Degree.--Section 7102 of title 10, 
United States Code, is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Marine Corps War College.--Upon the recommendation of the 
Director and faculty of the Marine Corps War College of the Marine Corps 
University, the President of the Marine Corps University may confer the 
degree of master of strategic studies upon graduates of the Marine Corps 
War College who fulfill the requirements for that degree.''.
    (b) Conforming Amendments.--(1) Subsection (a) of such section is 
amended by striking ``upon graduates'' and all that follows

[[Page 115 STAT. 1105]]

and inserting ``upon graduates of the Command and Staff College who 
fulfill the requirements for that degree.''.
    (2) Subsection (c) of such section, as redesignated by subsection 
(a)(1), is amended by striking ``subsection (a)'' and inserting 
``subsections (a) and (b)''.
    (3)(A) The heading of such section is amended to read as follows:
``Sec. 7102. Marine Corps University: masters degrees; board of 
                    advisors''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 609 of such title is amended to read as 
follows:
``7102. Marine Corps University: masters degrees; board of advisors.''.

    (c) Codification of Requirement for Board of Advisors.--(1) Section 
7102 of title 10, United States Code, as amended by subsections (a) and 
(b), is further amended by adding at the end the following new 
subsection:
    ``(d) Board <<NOTE: Establishment.>> of Advisors.--The Secretary of 
the Navy shall establish a board of advisors for the Marine Corps 
University. The Secretary shall ensure that the board is established so 
as to meet all requirements of the appropriate regional accrediting 
association.''.

    (2) Section 912 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 10 U.S.C. 7102 note) is repealed.
    (d) Effective <<NOTE: 10 USC 7102 note.>> Date.--The authority to 
confer the degree of master of strategic studies under section 7102(b) 
of title 10, United States Code (as added by subsection (a)) may not be 
exercised until the Secretary of Education determines, and certifies to 
the President of the Marine Corps University, that the requirements 
established by the Marine Corps War College of the Marine Corps 
University for that degree are in accordance with generally applicable 
requirements for a degree of master of 
arts. <<NOTE: Certification.>> Upon receipt of such a certification, the 
President of the University shall promptly transmit a copy of the 
certification to the Committee on Armed Services of the Senate and 
Committee on Armed Services of the House of Representatives.
SEC. 533. FOREIGN STUDENTS ATTENDING THE SERVICE ACADEMIES.

    (a) United States Military Academy.--(1) Subsection (a)(1) of 
section 4344 of title 10, United States Code, is amended by striking 
``not more than 40 persons'' and inserting ``not more than 60 persons''.
    (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver 
        of reimbursement is granted by the Secretary of Defense'' in the 
        first sentence; and
            (B) by striking paragraph (3) and inserting the following:

    ``(3) The Secretary of Defense may waive, in whole or in part, the 
requirement for reimbursement of the cost of instruction for a cadet 
under paragraph (2). In the case of a partial waiver, the Secretary 
shall establish the amount waived.''.
    (3) <<NOTE: 10 USC 4344 note.>> The amendments made by paragraph (2) 
shall not apply with respect to any person who entered the United States 
Military Academy to receive instruction under section 4344 of title 10, 
United States Code, before the date of the enactment of this Act.

[[Page 115 STAT. 1106]]

    (b) United States Naval Academy.--(1) Subsection (a)(1) of section 
6957 of such title is amended by striking ``not more than 40 persons'' 
and inserting ``not more than 60 persons''.
    (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver 
        of reimbursement is granted by the Secretary of Defense'' in the 
        first sentence; and
            (B) by striking paragraph (3) and inserting the following:

    ``(3) The Secretary of Defense may waive, in whole or in part, the 
requirement for reimbursement of the cost of instruction for a 
midshipman under paragraph (2). In the case of a partial waiver, the 
Secretary shall establish the amount waived.''.
    (3) <<NOTE: 10 USC 6957 note.>> The amendments made by paragraph (2) 
shall not apply with respect to any person who entered the United States 
Naval Academy to receive instruction under section 6957 of title 10, 
United States Code, before the date of the enactment of this Act.

    (c) United States Air Force Academy.--(1) Subsection (a)(1) of 
section 9344 of such title is amended by striking ``not more than 40 
persons'' and inserting ``not more than 60 persons''.
    (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver 
        of reimbursement is granted by the Secretary of Defense'' in the 
        first sentence; and
            (B) by striking paragraph (3) and inserting the following:

    ``(3) The Secretary of Defense may waive, in whole or in part, the 
requirement for reimbursement of the cost of instruction for a cadet 
under paragraph (2). In the case of a partial waiver, the Secretary 
shall establish the amount waived.''.
    (3) <<NOTE: 10 USC 9344 note.>> The amendments made by paragraph (2) 
shall not apply with respect to any person who entered the United States 
Air Force Academy to receive instruction under section 9344 of title 10, 
United States Code, before the date of the enactment of this Act.

    (d) Effective <<NOTE: 10 USC 4344 note.>> Date.--The amendments made 
by this section shall not apply with respect to any academic year that 
began before the date of the enactment of this Act.
SEC. 534. INCREASE IN MAXIMUM AGE FOR APPOINTMENT AS A CADET OR 
                        MIDSHIPMAN IN SENIOR RESERVE OFFICERS' 
                        TRAINING CORPS SCHOLARSHIP PROGRAMS.

    (a) General ROTC Scholarship Program.--Section 2107(a) of title 10, 
United States Code, is amended--
            (1) by striking ``27 years of age on June 30'' and inserting 
        ``31 years of age on December 31''; and
            (2) by striking ``, except that'' and all that follows 
        through ``on such date'' the second place it appears.

    (b) Army Reserve and Army National Guard ROTC Scholarship Program.--
Section 2107a(a)(1) of such title is amended--
            (1) by striking ``27 years of age on June 30'' and inserting 
        ``31 years of age on December 31''; and
            (2) by striking ``, except that'' and all that follows 
        through ``on such date'' the second place it appears.
SEC. 535. PARTICIPATION OF REGULAR ENLISTED MEMBERS OF THE ARMED 
                        FORCES IN SENIOR RESERVE OFFICERS' 
                        TRAINING CORPS PROGRAM.

    (a) Eligibility.--Section 2104(b)(3) of title 10, United States 
Code, is amended by striking ``a reserve component of ''.

[[Page 115 STAT. 1107]]

    (b) Pay Rate While on Field Training or Practice Cruise.--Section 
209(c) of title 37, United States Code, is amended by inserting before 
the period at the end the following: ``, except that the rate for a 
cadet or midshipman who is a member of the regular component of an armed 
force shall be the rate of basic pay applicable to the member under 
section 203 of this title''.
SEC. 536. AUTHORITY TO MODIFY THE SERVICE OBLIGATION OF CERTAIN 
                        ROTC CADETS IN MILITARY JUNIOR COLLEGES 
                        RECEIVING FINANCIAL ASSISTANCE.

    (a) Authority To Modify Agreements.--Subsection (b) of section 2107a 
of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by redesignating paragraphs (1), (2), (3), (4), (5), and 
        (6) as subparagraphs (A), (B), (C), (D), (E), and (F), 
        respectively;
            (3) by designating the sentence following subparagraph (F), 
        as so redesignated, as paragraph (2); and
            (4) by adding at the end the following new paragraph:

    ``(3) In the case of a cadet under this section at a military junior 
college, the Secretary may, at any time and with the consent of the 
cadet concerned, modify an agreement described in paragraph (1)(F) 
submitted by the cadet to reduce or eliminate the troop program unit 
service obligation specified in the agreement and to establish, in lieu 
of that obligation, an active duty service obligation. Such a 
modification may be made only if the Secretary determines that it is in 
the best interests of the United States to do so.''.
    (b) Retroactive <<NOTE: 10 USC 2107a note.>> Application.--The 
authority of the Secretary of Defense under paragraph (3) of section 
2107a(b) of title 10, United States Code, as added by subsection (a), 
may be exercised with regard to any agreement described in paragraph 
(1)(F) of such section (including agreements related to participation in 
the Advanced Course of the Army Reserve Officers' Training Corps at a 
military college or civilian institution) that was entered into during 
the period beginning on January 1, 1991, and ending on July 12, 2000 (in 
addition to any agreement described in that paragraph that is entered 
into on or after the date of the enactment of this Act).

    (c) Technical Amendment.--Subsection (h) of such section is amended 
by striking ``military college'' in the second sentence and inserting 
``military junior college''.
SEC. 537. REPEAL OF LIMITATION ON NUMBER OF JUNIOR RESERVE 
                        OFFICERS' TRAINING CORPS UNITS.

    Section 2031(a)(1) of title 10, United States Code, is amended by 
striking the second sentence.
SEC. 538. MODIFICATION OF NURSE OFFICER CANDIDATE ACCESSION 
                        PROGRAM RESTRICTION ON STUDENTS ATTENDING 
                        EDUCATIONAL INSTITUTIONS WITH SENIOR 
                        RESERVE OFFICERS' TRAINING PROGRAMS.

    Section 2130a of title 10, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``that does not have a 
        Senior Reserve Officers' Training Program established under 
        section 2102 of this title''; and
            (2) in subsection (b)(1), by inserting before the semicolon 
        at the end ``or that has a Senior Reserve Officers' Training 
        Program for which the student is ineligible''.

[[Page 115 STAT. 1108]]

SEC. 539. RESERVE HEALTH PROFESSIONALS STIPEND PROGRAM EXPANSION.

    (a) Purpose of Program.--Subsection (a) of section 16201 of title 
10, United States Code, is amended--
            (1) by striking ``specialties critically needed in 
        wartime'';
            (2) by striking ``training in such specialties'' and 
        inserting ``training that leads to a degree in medicine or 
        dentistry or training in a health professions specialty that is 
        critically needed in wartime''; and
            (3) by striking ``training in certain health care 
        specialties'' and inserting ``health care education and 
        training''.

    (b) Medical and Dental Student Stipend.--Such section is further 
amended--
            (1) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (c), (d), (e), and (f), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Medical and Dental School Students.--(1) Under the stipend 
program under this chapter, the Secretary of the military department 
concerned may enter into an agreement with a person who--
            ``(A) is eligible to be appointed as an officer in a reserve 
        component;
            ``(B) is enrolled or has been accepted for enrollment in an 
        institution in a course of study that results in a degree in 
        medicine or dentistry;
            ``(C) signs an agreement that, unless sooner separated, the 
        person will--
                    ``(i) complete the educational phase of the program;
                    ``(ii) accept a reappointment or redesignation 
                within the person's reserve component, if tendered, 
                based upon the person's health profession, following 
                satisfactory completion of the educational and intern 
                programs; and
                    ``(iii) participate in a residency program; and
            ``(D) if required by regulations prescribed by the Secretary 
        of Defense, agrees to apply for, if eligible, and accept, if 
        offered, residency training in a health profession skill which 
        has been designated by the Secretary of Defense as a critically 
        needed wartime skill.

    ``(2) Under the agreement--
            ``(A) the Secretary of the military department concerned 
        shall agree to pay the participant a stipend, in the amount 
        determined under subsection (f), for the period or the remainder 
        of the period that the student is satisfactorily progressing 
        toward a degree in medicine or dentistry while enrolled in an 
        accredited medical or dental school;
            ``(B) the participant shall not be eligible to receive such 
        stipend before appointment, designation, or assignment as an 
        officer for service in the Ready Reserve;
            ``(C) the participant shall be subject to such active duty 
        requirements as may be specified in the agreement and to active 
        duty in time of war or national emergency as provided by law for 
        members of the Ready Reserve; and
            ``(D) the participant shall agree to serve in the Selected 
        Reserve, upon successful completion of the program, for the 
        period of service applicable under paragraph (3).

[[Page 115 STAT. 1109]]

    ``(3)(A) Subject to subparagraph (B), the period for which a 
participant is required to serve in the Selected Reserve under the 
agreement pursuant to paragraph (2)(D) shall be one year for each period 
of six months, or part thereof, for which the participant is provided a 
stipend pursuant to the agreement.
    ``(B) In the case of a participant who enters into a subsequent 
agreement under subsection (c) and successfully completes residency 
training in a specialty designated by the Secretary of Defense as a 
specialty critically needed by the military department in wartime, the 
requirement to serve in the Selected Reserve may be reduced to one year 
for each year, or part thereof, for which the stipend was provided while 
enrolled in medical or dental school.''.
    (c) Wartime Critical Skills.--Subsection (c) of such section (as 
redesignated by subsection (b)(1)) is amended--
            (1) by inserting ``Wartime'' after ``Critical'' in the 
        heading; and
            (2) by inserting ``or has been appointed as a medical or 
        dental officer in the Reserve of the armed force concerned'' in 
        paragraph (1)(B) before the semicolon at the end.

    (d) Service Obligation Requirement.--Paragraph (2)(D) of subsection 
(c) of such section (as redesignated by subsection (b)(1)) and paragraph 
(2)(D) of subsection (d) of such section (as so redesignated) are 
amended by striking ``two years in the Ready Reserve for each year,'' 
and inserting ``one year in the Ready Reserve for each six months,''.
    (e) Cross-Reference.--Paragraph (2)(A) of subsection (c) of such 
section (as redesignated by subsection (b)(1)) and paragraph (2)(A) of 
subsection (d) of such section (as so redesignated) are amended by 
striking ``subsection (e)'' and inserting ``subsection (f)''.
SEC. 540. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR THE CORPS OF 
                        CADETS AT THE UNITED STATES MILITARY 
                        ACADEMY.

    (a) Authority.--The second sentence of section 4337 of title 10, 
United States Code, is amended by striking ``the same allowances'' and 
all that follows through ``captain'' and inserting ``a monthly housing 
allowance in the same amount as the basic allowance for housing allowed 
to a lieutenant colonel''.
    (b) Effective <<NOTE: 10 USC 4337 note.>> Date.--The amendment made 
by subsection (a) shall take effect on the first day of the first month 
beginning on or after the date of the enactment of this Act.

              Subtitle E--Recruiting and Accession Programs

SEC. 541. 18-MONTH ENLISTMENT PILOT PROGRAM.

    (a) In General.--(1) Chapter 333 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 3264. 18-month enlistment pilot program

    ``(a) During the pilot program period, the Secretary of the Army 
shall carry out a pilot program with the objective of increasing 
participation of prior service persons in the Selected Reserve and 
providing assistance in building the pool of participants in the 
Individual Ready Reserve.
    ``(b) Under the program, the Secretary may, notwithstanding section 
505(c) of this title, accept persons for original enlistment

[[Page 115 STAT. 1110]]

in the Army for a term of enlistment consisting of 18 months service on 
active duty, to be followed by three years of service in the Selected 
Reserve and then service in the Individual Ready Reserve to complete the 
military service obligation.
    ``(c) Under regulations and conditions established by the Secretary 
of the Army, a member enlisting under this section may, at the end of 
the 18-month period of service on active duty under that enlistment, be 
permitted to reenlist for continued service on active duty in lieu of 
the service in the Selected Reserve and the Individual Ready Reserve 
otherwise required under the terms of the member's enlistment.
    ``(d) No more than 10,000 persons may be accepted for enlistment in 
the Army through the program under this section.
    ``(e) A person enlisting in the Army through the program under this 
section is eligible for an enlistment bonus under section 309 of title 
37, notwithstanding the enlistment time period specified in subsection 
(a) of that section.
    ``(f) For purposes of this section, the pilot program period is the 
period beginning on the date selected by the Secretary of the Army for 
the commencement of the pilot program, which date shall be not later 
than October 1, 2003, and ending on December 31, 2007.
    ``(g) <<NOTE: Deadlines. Reports.>> Not later than December 31, 
2007, and December 31, 2012, the Secretary of the Army shall submit to 
the Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the program under 
this section. In each such report, the Secretary shall set forth the 
views of the Secretary on the success of the program in meeting the 
objectives stated in subsection (a) and whether the program should be 
continued and, if so, whether it should be modified or expanded.''.

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

``3264. 18-month enlistment pilot program.''.

    (b) Implementation <<NOTE: 10 USC 3264 note.>> Report.--The 
Secretary of the Army shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a report on the Secretary's plan for implementation of 
section 3264 of title 10, United States Code, as added by subsection 
(a). Such report <<NOTE: Deadline.>> shall be submitted not later than 
March 1, 2002.
SEC. 542. IMPROVED BENEFITS UNDER THE ARMY COLLEGE FIRST PROGRAM.

    (a) Increased Maximum Period of Delayed Entry.--Section 573 of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65; 113 Stat. 623; 10 U.S.C. 513 note) is amended--
            (1) in subsection (b)--
                    (A) by striking the matter preceding paragraph (1) 
                and inserting the following:

    ``(b) Delayed Entry With Allowance for Higher Education.--Under the 
pilot program, the Secretary may--
            ``(1) exercise the authority under section 513 of title 10, 
        United States Code--'';
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and realigning 
                those subparagraphs four ems from the left margin;

[[Page 115 STAT. 1111]]

                    (C) at the end of subparagraph (A), as so 
                redesignated, by inserting ``and'' after the semicolon; 
                and
                    (D) in subparagraph (B), as so redesignated, by 
                striking ``two years after the date of such enlistment 
                as a Reserve under paragraph (1)'' and inserting ``the 
                maximum period of delay determined for that person under 
                subsection (c)''; and
            (2) in subsection (c)--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraph (1)(B)'';
                    (B) by striking ``two-year period'' and inserting 
                ``30-month period''; and
                    (C) by striking ``paragraph (1)'' and inserting 
                ``paragraph (1)(A)''.

    (b) Allowance Eligibility and Amount.--(1) Such section is further 
amended--
            (A) in subsection (b), by striking paragraph (3) and 
        inserting the following:
            ``(2) subject to paragraph (2) of subsection (d) and except 
        as provided in paragraph (3) of that subsection, pay an 
        allowance to a person accepted for enlistment under paragraph 
        (1)(A) for each month of the period during which that person is 
        enrolled in and pursuing a program described in paragraph 
        (1)(B)''; and
            (B) in subsection (d)--
                    (i) by redesignating paragraph (2) as paragraph (4);
                    (ii) by striking paragraph (1) and inserting the 
                following new paragraphs:

    ``(1) The monthly allowance paid under subsection (b)(2) shall be 
equal to the amount of the subsistence allowance provided for certain 
members of the Senior Reserve Officers' Training Corps with the 
corresponding number of years of participation under section 209(a) of 
title 37, United States Code.
    ``(2) An allowance may not be paid to a person under this section 
for more than 24 months.
    ``(3) A member of the Selected Reserve of a reserve component may be 
paid an allowance under this section only for months during which the 
member performs satisfactorily as a member of a unit of the reserve 
component that trains as prescribed in section 10147(a)(1) of title 10, 
United States Code, or section 502(a) of title 32, United States 
Code. <<NOTE: Regulations.>> Satisfactory performance shall be 
determined under regulations prescribed by the Secretary.''.

    (2) The heading for such subsection is amended by striking ``Amount 
of''.
    (c) Ineligibility for Loan Repayments; Recoupment.--Such section is 
further amended--
            (1) by redesignating subsections (e), (f), and (g) as 
        subsections (g), (h), and (i), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsections:

    ``(e) Ineligibility for Loan Repayments.--A person who has received 
an allowance under this section is not eligible for any benefits under 
chapter 109 of title 10, United States Code.
    ``(f) Recoupment of Allowance.--(1) A person who, after receiving an 
allowance under this section, fails to complete the total period of 
service required of that person in connection with delayed entry 
authorized for the person under section 513 of title

[[Page 115 STAT. 1112]]

10, United States Code, shall repay the United States the amount which 
bears the same ratio to the total amount of that allowance paid to the 
person as the unserved part of the total required period of service 
bears to the total period.
      ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
      ``(3) A discharge of a person in bankruptcy under title 11, United 
States Code, that is entered less than five years after the date on 
which the person was, or was to be, enlisted in the regular Army 
pursuant to the delayed entry authority under section 513 of title 10, 
United States Code, does not discharge that person from a debt arising 
under paragraph (1).

    ``(4) The Secretary of the Army may waive, in whole or in part, a 
debt arising under paragraph (1) in any case for which the Secretary 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.''.
    (d) Effective <<NOTE: Applicability. 10 USC 513 note.>> Date.--The 
amendments made by this section shall apply with respect to persons who, 
on or after the date of the enactment of this Act, are enlisted as 
described in subsection (a) of section 513 of title 10, United States 
Code, with delayed entry authorized under that section.
SEC. 543. CORRECTION <<NOTE: 10 USC 503 note.>> AND EXTENSION OF 
                        CERTAIN ARMY RECRUITING PILOT PROGRAM 
                        AUTHORITIES.

    (a) Contract Recruiting Initiatives.--Subsection (d)(2) of section 
561 of the Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-
130) is amended--
            (1) in subparagraphs (A) and (D), by inserting ``and Army 
        Reserve'' after ``Regular Army''; and
            (2) in subparagraph (B), by striking ``and chain of 
        command''.

    (b) Extension of Authority.--Subsection (e) of such section is 
amended by striking ``December 31, 2005'' and inserting ``September 30, 
2007''.
    (c) Extension of Time for Reports.--Subsection (g) of such section 
is amended by striking ``February 1, 2006'' and inserting ``February 1, 
2008''.
SEC. 544. MILITARY RECRUITER ACCESS TO SECONDARY SCHOOL STUDENTS.

    (a) Access to Secondary Schools.--Paragraph (1) of section 503(c) of 
title 10, United States Code, is amended to read as follows:
    ``(c) Access to Secondary Schools.--(1)(A) Each local educational 
agency receiving assistance under the Elementary and Secondary Education 
Act of 1965--
            ``(i) shall provide to military recruiters the same access 
        to secondary school students as is provided generally to 
        postsecondary educational institutions or to prospective 
        employers of those students; and
            ``(ii) shall, upon a request made by military recruiters for 
        military recruiting purposes, provide access to secondary school 
        student names, addresses, and telephone listings, 
        notwithstanding section 444(a)(5)(B) of the General Education 
        Provisions Act (20 U.S.C. 1232g(a)(5)(B)).

[[Page 115 STAT. 1113]]

    ``(B) A local educational agency may not release a student's name, 
address, and telephone listing under subparagraph (A)(ii) without the 
prior written consent of a parent of the student if the student, or a 
parent of the student, has submitted a request to the local educational 
agency that the student's information not be released for a purpose 
covered by that subparagraph without prior written parental consent. 
Each local education agency shall notify parents of the rights provided 
under the preceding sentence.''.
    (b) Effective <<NOTE: 10 USC 503 note.>> Date.--The amendment made 
by subsection (a) shall take effect on July 1, 2002, immediately after 
the amendment to section 503(c) of title 10, United States Code, made, 
effective that date, by section 563(a) of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-131).

    (c) Notification.--The <<NOTE: 10 USC 503 note.>> Secretary of 
Education shall provide to local educational agencies notice of the 
provisions of subsection (c) of section 503 of title 10, United States 
Code, as in effect upon the amendments made by subsection 
(a). <<NOTE: Deadline.>> Such notice shall be provided not later than 
120 days after the date of the enactment of this Act and shall be 
provided in consultation with the Secretary of Defense.
SEC. 545. PERMANENT AUTHORITY FOR USE OF MILITARY RECRUITING FUNDS 
                        FOR CERTAIN EXPENSES AT DEPARTMENT OF 
                        DEFENSE RECRUITING FUNCTIONS.

    (a) Repeal of Termination Provision.--Section 520c of title 10, 
United States Code, is amended by striking subsection (c).
    (b) Technical Amendments.--Subsection (a) of such section is 
amended--
            (1) in paragraph (4), by striking ``recruiting events'' and 
        inserting ``recruiting functions''; and
            (2) in paragraph (5), by striking ``recruiting efforts'' the 
        first place it appears and inserting ``recruiting functions''.
SEC. 546. REPORT ON HEALTH AND DISABILITY BENEFITS FOR PRE-
                        ACCESSION TRAINING AND EDUCATION PROGRAMS.

    (a) Study.--The Secretary of Defense shall conduct a review of the 
health and disability benefit programs available to recruits and officer 
candidates engaged in training, education, or other types of programs 
while not yet on active duty and to cadets and midshipmen attending the 
service academies. The review shall be conducted with the participation 
of the Secretaries of the military departments.
    (b) Report.--Not <<NOTE: Deadline.>> later than March 1, 2002, the 
Secretary shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives a 
report on the findings of the review. The report shall include the 
following with respect to persons described in subsection (a):
            (1) A statement of the process and detailed procedures 
        followed by each of the Armed Forces under the jurisdiction of 
        the Secretary of a military department to provide health care 
        and disability benefits to all such persons injured in training, 
        education, or other types of programs conducted by the Secretary 
        of a military department.
            (2) Information on the total number of cases of such persons 
        requiring health care and disability benefits and the total 
        number of cases and average value of health care and disability

[[Page 115 STAT. 1114]]

        benefits provided under the authority for each source of 
        benefits available to those persons.
            (3) A discussion of the issues regarding health and 
        disability benefits for such persons that are encountered by the 
        Secretary during the review, to include discussions with 
        individuals who have received those benefits.
            (4) A statement of the processes and detailed procedures 
        followed by each of the Armed Forces under the jurisdiction of 
        the Secretary of a military department to provide recruits and 
        officer candidates with succinct information on the eligibility 
        requirements (including information on when they become 
        eligible) for health care benefits under the Defense health care 
        program, and the nature and availability of the benefits under 
        the program.
            (5) A discussion of the necessity for legislative changes 
        and specific legislative proposals needed to improve the 
        benefits provided those persons.
            (6) An analysis of health and disability benefits under laws 
        administered by the Department of Veterans Affairs and the 
        Department of Labor for which those persons become eligible upon 
        being injured in training or education and a discussion of how 
        those benefits compare to the benefits those persons would 
        receive if retired for physical disability by the Department of 
        Defense.

       Subtitle F--Decorations, Awards, and Posthumous Commissions

SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO HUMBERT R. 
                        VERSACE, JON E. SWANSON, AND BEN L. 
                        SALOMON FOR VALOR.

    (a) Waiver of Time Limitations.--Notwithstanding the time 
limitations specified in section 3744 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 military service, the President may 
award the Medal of Honor under section 3741 of that title to any of the 
persons named in subsections (b), (c), and (d) for the acts of valor 
referred to in those respective subsections.
    (b) Humbert R. Versace.--Subsection (a) applies with respect to 
Humbert R. Versace, for conspicuous acts of gallantry and intrepidity at 
the risk of his life and beyond the call of duty between October 29, 
1963, and September 26, 1965, while interned as a prisoner of war by the 
Vietnamese Communist National Liberation Front (Viet Cong) in the 
Republic of Vietnam.
    (c) Jon E. Swanson.--Subsection (a) applies with respect to Jon E. 
Swanson, for conspicuous acts of gallantry and intrepidity at the risk 
of his life and beyond the call of duty on February 26, 1971, while 
piloting a Scout helicopter on a close-support reconnaissance mission in 
support of the Army of the Republic of Vietnam Task Force 333 in the 
Kingdom of Cambodia.
    (d) Ben L. Salomon.--Subsection (a) applies with respect to Ben L. 
Salomon, for conspicuous acts of gallantry and intrepidity at the risk 
of his life and beyond the call of duty on July 7, 1944, while defending 
the soldiers under his care as the Surgeon, 2d Battalion, 105th Infantry 
Regiment, 27th Infantry Division against an overwhelming enemy force at 
Saipan, Marianas Islands.

[[Page 115 STAT. 1115]]

SEC. 552. REVIEW <<NOTE: 10 USC 3741 note.>> REGARDING AWARD OF 
                        MEDAL OF HONOR TO CERTAIN JEWISH AMERICAN 
                        AND HISPANIC AMERICAN WAR VETERANS.

    (a) Review Required.--The Secretary of each military department 
shall review the service records of each Jewish American war veteran or 
Hispanic American war veteran described in subsection (b) to determine 
whether that veteran should be awarded the Medal of Honor.
    (b) Covered Jewish American War Veterans and Hispanic American War 
Veterans.--The Jewish American war veterans and Hispanic American war 
veterans whose service records are to be reviewed under subsection (a) 
are the following:
            (1) Any Jewish American war veteran or Hispanic American war 
        veteran who was awarded the Distinguished Service Cross, the 
        Navy Cross, or the Air Force Cross before the date of the 
        enactment of this Act.
            (2) Any other Jewish American war veteran or Hispanic 
        American war veteran whose name is submitted to the Secretary 
        concerned for such purpose before the end of the one-year period 
        beginning on the date of the enactment of this Act.

    (c) Consultations.--In carrying out the review under subsection (a), 
the Secretary of each military department shall consult with the Jewish 
War Veterans of the United States of America and with such other 
veterans service organizations as the Secretary considers appropriate.
    (d) Recommendation Based on Review.--If the Secretary concerned 
determines, based upon the review under subsection (a) of the service 
records of any Jewish American war veteran or Hispanic American war 
veteran, that the award of the Medal of Honor to that veteran is 
warranted, the Secretary shall submit to the President a recommendation 
that the President award the Medal of Honor to that veteran.
    (e) Authority To Award Medal of Honor.--A Medal of Honor may be 
awarded to a Jewish American war veteran or Hispanic American war 
veteran in accordance with a recommendation of the Secretary concerned 
under subsection (d).
    (f) Waiver of Time Limitations.--An award of the Medal of Honor may 
be made under subsection (e) without regard to--
            (1) section 3744, 6248, or 8744 of title 10, United States 
        Code, as applicable; and
            (2) any regulation or other administrative restriction on--
                    (A) the time for awarding the Medal of Honor; or
                    (B) the awarding of the Medal of Honor for service 
                for which a Distinguished Service Cross, Navy Cross, or 
                Air Force Cross has been awarded.

    (g) Definition.--For purposes of this section, the term ``Jewish 
American war veteran'' means any person who served in the Armed Forces 
during World War II or a later period of war and who identified himself 
or herself as Jewish on his or her military personnel records.
SEC. 553. AUTHORITY TO ISSUE DUPLICATE MEDALS OF HONOR AND TO 
                        REPLACE STOLEN MILITARY DECORATIONS.

    (a) Army.--(1)(A) Chapter 357 of title 10, United States Code, is 
amended by adding at the end the following new section:

[[Page 115 STAT. 1116]]

``Sec. 3754. Medal of honor: duplicate medal

    ``A person awarded a medal of honor shall, upon written application 
of that person, be issued, without charge, one duplicate medal of honor 
with ribbons and appurtenances. Such duplicate medal of honor shall be 
marked, in such manner as the Secretary of the Army may determine, as a 
duplicate or for display purposes only.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3754. Medal of honor: duplicate medal.''.

    (2) Section 3747 of such title is amended by striking ``lost'' and 
inserting ``stolen, lost,''.
    (b) Navy and Marine Corps.--(1)(A) Chapter 567 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 6256. Medal of honor: duplicate medal

    ``A person awarded a medal of honor shall, upon written application 
of that person, be issued, without charge, one duplicate medal of honor 
with ribbons and appurtenances. Such duplicate medal of honor shall be 
marked, in such manner as the Secretary of the Navy may determine, as a 
duplicate or for display purposes only.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6256. Medal of honor: duplicate medal.''.

    (2) Section 6253 of such title is amended by striking ``lost'' and 
inserting ``stolen, lost,''.
    (c) Air Force.--(1)(A) Chapter 857 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 8754. Medal of honor: duplicate medal

    ``A person awarded a medal of honor shall, upon written application 
of that person, be issued, without charge, one duplicate medal of honor 
with ribbons and appurtenances. Such duplicate medal of honor shall be 
marked, in such manner as the Secretary of the Air Force may determine, 
as a duplicate or for display purposes only.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8754. Medal of honor: duplicate medal.''.

    (2) Section 8747 of such title is amended by striking ``lost'' and 
inserting ``stolen, lost,''.
    (d) Coast Guard.--(1)(A) Chapter 13 of title 14, United States Code, 
is amended by inserting after section 503 the following new section:

``Sec. 504. Medal of honor: duplicate medal

    ``A person awarded a medal of honor shall, upon written application 
of that person, be issued, without charge, one duplicate medal of honor 
with ribbons and appurtenances. Such duplicate medal of honor shall be 
marked, in such manner as the Secretary may determine, as a duplicate or 
for display purposes only.''.

[[Page 115 STAT. 1117]]

    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 503 the 
following new item:

``504. Medal of honor: duplicate medal.''.

    (2) Section 501 of such title is amended by inserting ``stolen,'' 
before ``lost,''.
    (e) Definition of Medal of Honor for Purposes of Federal 
Unauthorized-Use Crime.--Section 704(b)(2)(B) of title 18, United States 
Code, is amended to read as follows:
            ``(B) As used in this subsection, `Congressional Medal of 
        Honor' means--
                    ``(i) a medal of honor awarded under section 3741, 
                6241, or 8741 of title 10 or section 491 of title 14;
                    ``(ii) a duplicate medal of honor issued under 
                section 3754, 6256, or 8754 of title 10 or section 504 
                of title 14; or
                    ``(iii) a replacement of a medal of honor provided 
                under section 3747, 6253, or 8747 of title 10 or section 
                501 of title 14.''.
SEC. 554. RETROACTIVE <<NOTE: Robert R. Ingram.>> MEDAL OF HONOR 
                        SPECIAL PENSION.

    (a) Entitlement.--Notwithstanding any other provision of law, Robert 
R. Ingram of Jacksonville, Florida, who was awarded the Medal of Honor 
pursuant to Public Law 105-103 (111 Stat. 2218), shall be entitled to 
the special pension provided for under section 1562 of title 38, United 
States Code (and antecedent provisions of law), for months that begin 
after March 1966.
    (b) Amount.--The amount of special pension payable under subsection 
(a) for a month beginning before the date of the enactment of this Act 
shall be the amount of special pension provided for by law for that 
month for persons entered and recorded in the Army, Navy, Air Force, and 
Coast Guard Medal of Honor Roll (or antecedent Medal of Honor Roll 
required by law).
SEC. 555. 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 <<NOTE: Wayne T. Alderson.>> Star.--Subsection (a) 
applies to the award of the Silver Star to Wayne T. Alderson, of 
Glassport, Pennsylvania, for gallantry in action from March 15 to March 
18, 1945, while serving as a member of the Army.

    (c) Distinguished Flying Cross.--Subsection (a) applies to the award 
of the Distinguished Flying Cross for service during World War II 
(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 30, 
2000, 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

[[Page 115 STAT. 1118]]

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. 556. SENSE OF CONGRESS ON ISSUANCE OF CERTAIN MEDALS.

    It is the sense of Congress that the Secretary of Defense should 
consider authorizing--
            (1) the issuance of a campaign medal, to be known as the 
        Korea Defense Service Medal, to each person who while a member 
        of the Armed Forces served in the Republic of Korea, or the 
        waters adjacent thereto, during the period beginning on July 28, 
        1954, and ending on such date thereafter as the Secretary 
        considers appropriate;
            (2) the issuance of a campaign medal, to be known as the 
        Cold War Service Medal, to each person who while a member of the 
        Armed Forces served satisfactorily on active duty during the 
        Cold War; and
            (3) the award of the Vietnam Service Medal to any member or 
        former member of the Armed Forces who was awarded the Armed 
        Forces Expeditionary Medal for participation in military 
        operations designated as Operation Frequent Wind arising from 
        the evacuation of Vietnam on April 29 and 30, 1975.
SEC. 557. SENSE OF CONGRESS ON DEVELOPMENT OF A MORE 
                        COMPREHENSIVE, UNIFORM POLICY FOR THE 
                        AWARD OF DECORATIONS TO MILITARY AND 
                        CIVILIAN PERSONNEL OF THE DEPARTMENT OF 
                        DEFENSE.

    (a) Findings.--Congress makes the following findings:
            (1) The role and importance of civilian nationals of the 
        United States as Federal employees and contractors in support of 
        operations of the Armed Forces worldwide has continued to 
        expand.
            (2) The expanded role performed by those civilians, both in 
        the United States and overseas, has greatly increased the risk 
        to those civilians of injury and death from hostile actions 
        taken against United States Armed Forces, as demonstrated by the 
        terrorist attack on the Pentagon on September 11, 2001, in which 
        scores of Department of Defense civilian and contractor 
        personnel were killed or wounded.
            (3) On September 20, 2001, the Deputy Secretary of Defense 
        approved the creation of a new award, a medal for the defense of 
        freedom, to be awarded to civilians employed by the Department 
        of Defense who are killed or wounded as a result of hostile 
        action and at the same time directed that a comprehensive review 
        be conducted to develop a more uniform approach to the award of 
        decorations to military and civilian personnel of the Department 
        of Defense.

    (b) Commendation of Creation of New Award.--Congress commends the 
decision announced by the Deputy Secretary of Defense on September 20, 
2001, to approve the creation of a new award, a medal for the defense of 
freedom, to be awarded to civilians employed by the Department of 
Defense who are killed or wounded as a result of hostile action.
    (c) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense should act expeditiously to develop a

[[Page 115 STAT. 1119]]

more comprehensive, uniform policy for the award of decorations to 
military and civilian personnel of the Department of Defense.
SEC. 558. POSTHUMOUS ARMY COMMISSION IN THE GRADE OF CAPTAIN IN 
                        THE CHAPLAINS CORPS TO ELLA E. GIBSON FOR 
                        SERVICE AS CHAPLAIN OF THE FIRST WISCONSIN 
                        HEAVY ARTILLERY REGIMENT DURING THE CIVIL 
                        WAR.

    The President is authorized and requested to posthumously appoint 
Ella E. Gibson to the grade of captain in the Chaplains Corps of the 
Army, the commission to issue as of the date of her appointment as 
chaplain to the First Wisconsin Heavy Artillery regiment during the 
Civil War and to be considered to have been in effect during the time 
during which she faithfully performed the services of a chaplain to that 
regiment and for which Congress by law (Private Resolution 31 of the 
40th Congress, approved March 3, 1869) previously provided for her to be 
paid the full pay and emoluments of a chaplain in the United States Army 
as if she had been regularly commissioned and mustered into service.

                     Subtitle G--Funeral Honors Duty

SEC. 561. PARTICIPATION OF MILITARY RETIREES IN FUNERAL HONORS 
                        DETAILS.

    (a) Authority.--Subsection (b)(2) of section 1491 of title 10, 
United States Code, is amended--
            (1) in the first sentence, by inserting ``(other than 
        members in a retired status)'' after ``members of the armed 
        forces''; and
            (2) in the second sentence, by inserting ``(including 
        members in a retired status),'' after ``members of the armed 
        forces''.

    (b) Funeral Honors Duty Allowance.--Section 435(a) of title 37, 
United States Code, is amended--
            (1)  by  inserting  ``(1)''  after  ``(a)  Allowance  
        Authorized.--''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Secretary concerned may also authorize payment of that 
allowance to a member of the armed forces in a retired status for any 
day on which the member serves in a funeral honors detail under section 
1491 of title 10, if the time required for service in such detail 
(including time for preparation) is not less than two hours. The amount 
of an allowance paid to a member under this paragraph shall be in 
addition to any other compensation to which the member may be entitled 
under this title or title 10 or 38.''.
SEC. 562. FUNERAL HONORS DUTY PERFORMED BY RESERVE AND GUARD 
                        MEMBERS TO BE TREATED AS INACTIVE-DUTY 
                        TRAINING FOR CERTAIN PURPOSES.

    (a) Reserve Members.--Section 12503(a) of title 10, United States 
Code, is amended by adding at the end the following new sentence: 
``Performance of funeral honors duty by a Reserve not on active duty 
shall be treated as inactive-duty training (including with respect to 
travel to and from such duty) for purposes of any provision of law other 
than sections 206 and 435 of title 37.''.
    (b) National Guard Members.--Section 115(a) of title 32, United 
States Code, is amended by adding at the end the following new sentence: 
``Performance of funeral honors duty by such a

[[Page 115 STAT. 1120]]

member not on active duty or full-time National Guard duty shall be 
treated as inactive-duty training (including with respect to travel to 
and from such duty) for purposes of any provision of law other than 
sections 206 and 435 of title 37.''.
    (c) Effective <<NOTE: Applicability. 10 USC 12503 note.>> Date.--The 
amendments made by this section shall apply to funeral honors duty 
performed on or after October 30, 2000.
SEC. 563. USE OF MILITARY LEAVE FOR FUNERAL HONORS DUTY BY RESERVE 
                        MEMBERS AND NATIONAL GUARDSMEN.

    Section 6323(a)(1) of title 5, United States Code, is amended by 
inserting ``funeral honors duty (as described in section 12503 of title 
10 and section 115 of title 32),'' after ``(as defined in section 101 of 
title 37),''.
SEC. 564. AUTHORITY TO PROVIDE APPROPRIATE ARTICLES OF CLOTHING AS 
                        A CIVILIAN UNIFORM FOR CIVILIANS 
                        PARTICIPATING IN FUNERAL HONOR DETAILS.

    Section 1491(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(3) Articles of clothing for members of a veterans 
        organization or other organization referred to in subsection 
        (b)(2) that, as determined by the Secretary concerned, are 
        appropriate as a civilian uniform for persons participating in a 
        funeral honors detail.''.

             Subtitle H--Military Spouses and Family Members

SEC. 571. IMPROVED FINANCIAL AND OTHER ASSISTANCE TO MILITARY 
                        SPOUSES FOR JOB TRAINING AND EDUCATION.

    (a) Examination of Existing Employment Assistance Programs.--(1) The 
Secretary of Defense shall examine existing Department of Defense and 
other Federal, State, and nongovernmental programs with the objective of 
improving retention of military personnel by increasing the 
employability of military spouses and assisting those spouses in gaining 
access to financial and other assistance for job training and education.
    (2) In conducting the examination, the Secretary shall give priority 
to facilitating and increasing access of military spouses to existing 
Department of Defense, Federal, State, and nongovernmental sources for 
the types of financial assistance set forth in paragraph (3), but shall 
also specifically assess whether the Department of Defense should begin 
a program for direct financial assistance to military spouses for some 
or all of those types of assistance and whether such a program of direct 
financial assistance would enhance retention.
    (3) In conducting the examination pursuant to paragraph (1), the 
Secretary should focus on financial assistance for military spouses for 
one or more of the following purposes:
            (A) Career-related education.
            (B) Certification and license fees for employment-related 
        purposes.
            (C) Apprenticeships and internships.
            (D) Technical training.
            (E) Training to improve job skills.

[[Page 115 STAT. 1121]]

            (F) Career counseling.
            (G) Skills assessment.
            (H) Job-search skills.
            (I) Job-related transportation.
            (J) Child care.
            (K) Any additional employment-related purpose specified by 
        the Secretary for the purposes of the examination under 
        paragraph (1).

    (4) <<NOTE: Deadline. Reports.>> Not later than March 30, 2002, 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 examination under 
paragraph (1).

    (b) Review of Department of Defense Policies.--(1) The Secretary of 
Defense shall review Department of Defense policies that affect 
employment and education opportunities for military spouses in the 
Department of Defense in order to further expand those opportunities. 
The review shall include the consideration of providing, to the extent 
authorized by law, separate spouse preferences for employment by 
appropriated and nonappropriated fund operations.
    (2) <<NOTE: Deadline. Reports.>> Not later than March 30, 2002, 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 review under paragraph 
(1).

    (c) Spouse Employment Assistance.--Section 1784 of title 10, United 
States Code, is amended by adding at the end the following new 
subsections:
    ``(d) Space-Available <<NOTE: Regulations.>> Use of Facilities for 
Spouse Training Purposes.--Under regulations prescribed by the Secretary 
of Defense, the Secretary of a military department may make available to 
a non-Department of Defense entity space in non-excess facilities 
controlled by that Secretary for the purpose of the non-Department of 
Defense entity providing employment-related training for military 
spouses.

    ``(e) Employment by Other Federal Agencies.--The Secretary of 
Defense shall work with the Director of the Office of Personnel 
Management and the heads of other Federal departments and agencies to 
expand and facilitate the use of existing Federal programs and resources 
in support of military spouse employment.
    ``(f) Private-Sector Employment.--The Secretary of Defense--
            ``(1) shall seek to develop partnerships with firms in the 
        private sector to enhance employment opportunities for spouses 
        of members of the armed forces and to provide for improved job 
        portability for such spouses, especially in the case of the 
        spouse of a member of the armed forces accompanying the member 
        to a new geographical area because of a change of permanent duty 
        station of the member; and
            ``(2) shall work with the United States Chamber of Commerce 
        and other appropriate private-sector entities to facilitate the 
        formation of such partnerships.

    ``(g) Employment With DOD Contractors.--The Secretary of Defense 
shall examine and seek ways for incorporating hiring preferences for 
qualified spouses of members of the armed forces into contracts between 
the Department of Defense and private-sector entities.''.

[[Page 115 STAT. 1122]]

SEC. 572. PERSONS AUTHORIZED TO BE INCLUDED IN SURVEYS OF MILITARY 
                        FAMILIES REGARDING FEDERAL PROGRAMS.

    (a) Extension of Survey Authority.--Subsection (a) of section 1782 
of title 10, United States Code, is amended to read as follows:
    ``(a) Authority.--The Secretary of Defense, in order to determine 
the effectiveness of Federal programs relating to military families and 
the need for new programs, may conduct surveys of--
            ``(1) members of the armed forces who are on active duty, in 
        an active status, or retired;
            ``(2) family members of such members; and
            ``(3) survivors of deceased retired members and of members 
        who died while on active duty.''.

    (b) Federal Recordkeeping Requirements.--Subsection (c) of such 
section is amended to read as follows:
    ``(c) Federal Recordkeeping Requirements.--With respect to a survey 
authorized under subsection (a) that includes a person referred to in 
that subsection who is not an employee of the United States or is not 
otherwise considered an employee of the United States for the purposes 
of section 3502(3)(A)(i) of title 44, the person shall be considered as 
being an employee of the United States for the purposes of that 
section.''.
SEC. 573. CLARIFICATION OF TREATMENT OF CLASSIFIED INFORMATION 
                        CONCERNING PERSONS IN A MISSING STATUS.

    Section 1506(b)(2) of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking the period at the end and inserting ``of all 
        missing persons from the conflict or period of war to which the 
        classified information pertains.''; and
            (3) by adding at the end the following new subparagraph:

    ``(B) For purposes of subparagraph (A), information shall be 
considered to be made reasonably accessible if placed in a separate and 
distinct file that is available for review by persons specified in 
subparagraph (A) upon the request of any such person either to review 
the separate file or to review the personnel file of the missing person 
concerned.''.
SEC. 574. TRANSPORTATION TO ANNUAL MEETING OF NEXT-OF-KIN OF 
                        PERSONS UNACCOUNTED FOR FROM CONFLICTS 
                        AFTER WORLD WAR II.

    (a) Authority for Department of Defense To Provide Transportation.--
Chapter 157 of title 10, United States Code, is amended by adding at the 
end the following new section:
``Sec. 2647. Next-of-kin of persons unaccounted for from conflicts 
                    after World War II: transportation to annual 
                    meetings

    ``The Secretary of Defense may provide transportation for the next-
of-kin of persons who are unaccounted for from the Korean conflict, the 
Cold War, Vietnam War era, or the Persian Gulf War to and from an annual 
meeting in the United States. Such transportation shall be provided 
under such regulations as the Secretary of Defense may prescribe.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

[[Page 115 STAT. 1123]]

``2647. Next-of-kin of persons unaccounted for from conflicts after 
            World War II: transportation to annual meetings.''.

SEC. 575. AMENDMENTS TO CHARTER OF DEFENSE TASK FORCE ON DOMESTIC 
                        VIOLENCE.

    (a) Members Appointed From Private Sector.--Subsection (h)(1) of 
section 591 of the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106-65; 113 Stat. 639; 10 U.S.C. 1562 note) is 
amended--
            (1) by inserting ``who is a member of the Armed Forces or 
        civilian officer or employee of the United States'' after ``Each 
        member of the task force'';
            (2) by striking ``, but shall'' and all that follows and 
        inserting a period; and
            (3) by adding at the end the following new sentence: ``Other 
        members of the task force shall be appointed in accordance with, 
        and subject to, section 3161 of title 5, United States Code.''.

    (b) Extension of Termination Date.--Subsection (j) of such section 
is amended by striking ``three years after the date of the enactment of 
this Act'' and inserting ``on April 24, 2003''.

        Subtitle I--Military Justice and Legal Assistance Matters

SEC. 581. BLOOD ALCOHOL CONTENT LIMIT FOR THE OFFENSE UNDER THE 
                        UNIFORM CODE OF MILITARY JUSTICE OF 
                        DRUNKEN OPERATION OF A VEHICLE, AIRCRAFT, 
                        OR VESSEL.

    Section 911 of title 10, United States Code (article 111 of the 
Uniform Code of Military Justice), is amended--
            (1) by inserting ``(a)'' before ``Any person'';
            (2) by striking ``0.10 grams'' the first place it appears 
        and all that follows through ``chemical analysis'' and inserting 
        ``in excess of the applicable limit under subsection (b)''; and
            (3) by adding at the end the following:

    ``(b)(1) For purposes of subsection (a), the applicable limit on the 
alcohol concentration in a person's blood or breath is as follows:
            ``(A) In the case of the operation or control of a vehicle, 
        aircraft, or vessel in the United States, such limit is the 
        blood alcohol content limit under the law of the State in which 
        the conduct occurred, except as may be provided under paragraph 
        (2) for conduct on a military installation that is in more than 
        one State and subject to the maximum blood alcohol content limit 
        specified in paragraph (3).
            ``(B) In the case of the operation or control of a vehicle, 
        aircraft, or vessel outside the United States, the applicable 
        blood alcohol content limit is the maximum blood alcohol content 
        limit specified in paragraph (3) or such lower limit as the 
        Secretary of Defense may by regulation prescribe.

    ``(2) In the case of a military installation that is in more than 
one State, if those States have different blood alcohol content limits 
under their respective State laws, the Secretary may select one such 
blood alcohol content limit to apply uniformly on that installation.

[[Page 115 STAT. 1124]]

    ``(3) For purposes of paragraph (1), the maximum blood alcohol 
content limit with respect to alcohol concentration in a person's blood 
is 0.10 grams of alcohol per 100 milliliters of blood and with respect 
to alcohol concentration in a person's breath is 0.10 grams of alcohol 
per 210 liters of breath, as shown by chemical analysis.
    ``(4) In this subsection:
            ``(A) The term `blood alcohol content limit' means the 
        maximum permissible alcohol concentration in a person's blood or 
        breath for purposes of operation or control of a vehicle, 
        aircraft, or vessel.
            ``(B) The term `United States' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
        Guam, and American Samoa and the term `State' includes each of 
        those jurisdictions.''.
SEC. 582. REQUIREMENT THAT COURTS-MARTIAL CONSIST OF NOT LESS THAN 
                        12 MEMBERS IN CAPITAL CASES.

    (a) Classification of General Court-Martial in Capital Cases.--
Section 816(1)(A) of title 10, United States Code (article 16(1)(A) of 
the Uniform Code of Military Justice) is amended by inserting after 
``five members'' the following: ``or, in a case in which the accused may 
be sentenced to a penalty of death, the number of members determined 
under section 825a of this title (article 25a)''.
    (b) Number of Members Required.--(1) Chapter 47 of title 10, United 
States Code (the Uniform Code of Military Justice), is amended by 
inserting after section 825 (article 25) the following new section:
``Sec. 825a. Art. 25a. Number of members in capital cases

    ``In a case in which the accused may be sentenced to a penalty of 
death, the number of members shall be not less than 12, unless 12 
members are not reasonably available because of physical conditions or 
military exigencies, in which case the convening authority shall specify 
a lesser number of members not less than five, and the court may be 
assembled and the trial held with not less than the number of members so 
specified. In such a case, the convening authority shall make a detailed 
written statement, to be appended to the record, stating why a greater 
number of members were not reasonably available.''.
    (2) The table of sections at the beginning of subchapter V of such 
chapter is amended by inserting after the item relating to section 825 
(article 25) the following new item:

``825a. 25a. Number of members in capital cases.''.

    (c) Absent and Additional Members.--Section 829(b) of such title 
(article 29 of the Uniform Code of Military Justice) is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by striking ``five members'' both places it appears and 
        inserting ``the applicable minimum number of members''; and
            (3) by adding at the end the following new paragraph:

    ``(2) In this section, the term `applicable minimum number of 
members' means five members or, in a case in which the death penalty may 
be adjudged, the number of members determined under section 825a of this 
title (article 25a).''.

[[Page 115 STAT. 1125]]

    (d) Effective <<NOTE: 10 USC 816 note.>> Date.--The amendments made 
by this section shall apply with respect to offenses committed after 
December 31, 2002.
SEC. 583. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE FOR THE CIVIL 
                        AFFAIRS OF MEMBERS AND FORMER MEMBERS OF 
                        THE UNIFORMED SERVICES AND THEIR 
                        DEPENDENTS.

    (a) Authority.--Subsection (a) of section 1588 of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(5) Legal services voluntarily provided as legal 
        assistance under section 1044 of this title.''.

    (b) Defense of Legal Malpractice.--Subsection (d)(1) of that section 
is amended by adding at the end the following new subparagraph:
            ``(E) Section 1054 of this title (relating to legal 
        malpractice), for a person voluntarily providing legal services 
        accepted under subsection (a)(5), as if the person were 
        providing the services as an attorney of a legal staff within 
        the Department of Defense.''.

                        Subtitle J--Other Matters

SEC. 591. CONGRESSIONAL REVIEW PERIOD FOR CHANGE IN GROUND COMBAT 
                        EXCLUSION POLICY.

    Section 542(b) of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 10 U.S.C. 113 note) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``not less than 90 days''; and
                    (B) by adding at the end the following new sentence: 
                ``Such a change may then be implemented only after the 
                end of a period of 30 days of continuous session of 
                Congress (excluding any day on which either House of 
                Congress is not in session) following the date on which 
                the report is received.''; and
            (2) by adding at the end the following new paragraph:

    ``(5) For purposes of this subsection, the continuity of a session 
of Congress is broken only by an adjournment of the Congress sine 
die.''.
SEC. 592. PER DIEM ALLOWANCE FOR LENGTHY OR NUMEROUS DEPLOYMENTS.

    (a) Funding Source for Allowance.--Section 436(a) of title 37, 
United States Code, is amended by adding at the end the following new 
sentence: ``The Secretary shall pay the allowance from appropriations 
available for operation and maintenance for the armed force in which the 
member serves.''.
    (b) Expanded <<NOTE: 10 USC 991 note.>> Report Regarding Management 
of Individual Member Deployments.--Section 574(d) of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as enacted into 
law by Public Law 106-398; 114 Stat. 1654A-138) is amended in the second 
sentence by striking paragraphs (1) and (2) and inserting the following 
new paragraphs:
            ``(1) a discussion of the experience in tracking and 
        recording the deployments of members of the Armed Forces and the 
        payment of the per diem allowance for lengthy or numerous

[[Page 115 STAT. 1126]]

        deployments in accordance with section 436 of title 37, United 
        States Code;
            ``(2) specific comments regarding the effect of section 991 
        of title 10, United States Code, and section 436 of title 37, 
        United States Code, on the readiness of the Navy and Marine 
        Corps given the deployment intensive mission of these services; 
        and
            ``(3) any recommendations for revision of section 991 of 
        title 10, United States Code, or section 436 of title 37, United 
        States Code, that the Secretary considers appropriate.''.
SEC. 593. CLARIFICATION OF DISABILITY SEVERANCE PAY COMPUTATION.

    (a) Clarification.--Section 1212(a)(2) of title 10, United States 
Code, is amended by striking ``for promotion'' in subparagraph (C) and 
the first place it appears in subparagraph (D).
    (b) Effective <<NOTE: Applicability. 10 USC 1212 note.>> Date.--The 
amendments made by subsection (a) shall apply with respect to members 
separated under section 1203 or 1206 of title 10, United States Code, on 
or after date of the enactment of this Act.
SEC. 594. TRANSPORTATION OR STORAGE OF PRIVATELY OWNED VEHICLES ON 
                        CHANGE OF PERMANENT STATION.

    (a) Advance Payment of Storage Costs.--Subsection (b) of section 
2634 of title 10, United States Code, is amended by adding at the end 
the following new paragraph:
    ``(4) Storage costs payable under this subsection may be paid in 
advance.''.
    (b) Shipment on Permanent Change of Station Within CONUS.--
Subsection (h)(1) of such section is amended by striking ``includes'' in 
the second sentence and all that follows and inserting ``includes the 
following:
                    ``(A) An authorized change in home port of a vessel.
                    ``(B) A transfer or assignment between two permanent 
                stations in the continental United States when--
                          ``(i) the member cannot, because of injury or 
                      the conditions of the order, drive the motor 
                      vehicle between the permanent duty stations; or
                          ``(ii) the Secretary concerned determines that 
                      it is advantageous and cost-effective to the 
                      United States for one motor vehicle of the member 
                      to be transported between the permanent duty 
                      stations.''.

    (c) Effective <<NOTE: Applicability. 10 USC 2634 note.>> Date.--The 
amendments made by this section apply to orders to make a change of 
permanent station that are issued on or after the date of the enactment 
of this Act.
SEC. 595. REPEAL OF REQUIREMENT FOR FINAL COMPTROLLER GENERAL 
                        REPORT RELATING TO ARMY END STRENGTH 
                        ALLOCATIONS.

    Section 552 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 319; 10 U.S.C. 115 note) is 
repealed.
SEC. 596. CONTINUED DEPARTMENT OF DEFENSE ADMINISTRATION OF 
                        NATIONAL GUARD CHALLENGE PROGRAM AND 
                        DEPARTMENT OF DEFENSE STARBASE PROGRAM.

    (a) National Guard Challenge Program.--Section 509(b) of title 32, 
United States Code, is amended--

[[Page 115 STAT. 1127]]

            (1) in paragraph (2)(A), by striking ``in a fiscal year'' 
        and inserting ``in fiscal year 2001 or 2002''; and
            (2) by adding at the end the following new paragraph:

    ``(4) The Secretary of Defense shall remain the executive agent to 
carry out the National Guard Challenge Program regardless of the source 
of funds for the program or any transfer of jurisdiction over the 
program within the executive branch. As provided in subsection (a), the 
Secretary may use the National Guard to conduct the program.''.
    (b) STARBASE Program.--Section 2193b(f) of title 10, United States 
Code, is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Secretary of Defense shall remain the executive agent to 
carry out the program regardless of the source of funds for the program 
or any transfer of jurisdiction over the program within the executive 
branch.''.
    (c) Repeal of Contingent Funding for JROTC.--(1) Section 2033 of 
title 10, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 102 of such 
title is amended by striking the item relating to section 2033.
    (3) <<NOTE: Effective date. 10 USC 2033 note.>> The amendments made 
by this subsection shall take effect on October 1, 2002.
SEC. 597. REPORT ON DEFENSE SCIENCE BOARD RECOMMENDATION ON 
                        ORIGINAL APPOINTMENTS IN REGULAR GRADES 
                        FOR ACADEMY GRADUATES AND CERTAIN OTHER 
                        NEW OFFICERS.

    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 legislative and policy changes 
required to implement the recommendation of the Defense Science Board 
(made in its report entitled ``Final Report on Human Resources 
Strategy'' and dated February 28, 2000) that all officers be given 
initial regular commissions. The Secretary shall include in that report 
a description of the measures necessary to transition the current 
active-duty officer corps to an all-regular status, if the Board's 
recommendation were adopted, and shall provide the Secretary's position 
with regard to implementing that recommendation. 
The <<NOTE: Deadline.>> report shall be submitted not later than six 
months after the date of the enactment of this Act.
SEC. 598. SENSE OF CONGRESS REGARDING THE SELECTION OF OFFICERS 
                        FOR RECOMMENDATION FOR APPOINTMENT AS 
                        COMMANDER, UNITED STATES TRANSPORTATION 
                        COMMAND.

    (a) Findings.--Congress makes the following findings:
            (1) The Goldwater-Nichols Department of Defense 
        Reorganization Act of 1986 (Public Law 99-433) envisioned that 
        officers would be selected for recommendation to the President 
        for appointment as the commander of a combatant command under 
        chapter 6 of title 10, United States Code (as added by that 
        Act), on the basis of being the best qualified officer for that 
        position, rather than the best qualified officer of the armed 
        force that had historically supplied officers to serve in that 
        position.
            (2) In order to provide for greater competition among the 
        Armed Forces for selection of officers for assignment as the

[[Page 115 STAT. 1128]]

        commanders of the combatant commands and assignment to certain 
        other joint positions in the grade of general or admiral, 
        Congress provided temporary relief from the limitation on the 
        number of officers serving on active duty in the grade of 
        general or admiral in section 405 of the National Defense 
        Authorization Act for Fiscal Year 1995 and thereafter extended 
        that relief until September 30, 2003, but has also required that 
        the Secretary of Defense be furnished the name of at least one 
        officer from each of the Armed Forces for consideration for 
        appointment to each such position.
            (3) Most of the positions of commanders of the combatant 
        commands have been filled successively by officers of more than 
        one of the Armed Forces since the enactment of the Goldwater-
        Nichols Department of Defense Reorganization Act of 1986.
            (4) However, general officers of the Air Force with only 
        limited experience in the transportation services have usually 
        filled the position of commander of the United States 
        Transportation Command.
            (5) The United States Transportation Command could benefit 
        from the appointment of future commanders selected from the 
        Army, Navy and Marine Corps, in addition to the Air Force.

    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense, when considering officers for recommendation to 
the President for appointment as commander of the United States 
Transportation Command, should not rely upon officers of one service 
which has traditionally provided officers to fill that position but 
should select for such recommendation the best qualified officer of the 
Army, Navy, Air Force, or Marine Corps.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2002.
Sec. 602. Basic pay rate for certain reserve commissioned officers with 
           prior service as an enlisted member or warrant officer.
Sec. 603. Reserve component compensation for distributed learning 
           activities performed as inactive-duty training.
Sec. 604. Subsistence allowances.
Sec. 605. Eligibility for temporary housing allowance while in travel or 
           leave status between permanent duty stations.
Sec. 606. Uniform allowance for officers.
Sec. 607. Family separation allowance for members electing unaccompanied 
           tour by reason of health limitations of dependents.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
           authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
           authorities for nurse officer candidates, registered nurses, 
           and nurse anesthetists.
Sec. 613. One-year extension of special pay and bonus authorities for 
           nuclear officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Hazardous duty pay for members of maritime visit, board, 
           search, and seizure teams.
Sec. 616. Eligibility for certain career continuation bonuses for early 
           commitment to remain on active duty.
Sec. 617. Secretarial discretion in prescribing submarine duty incentive 
           pay rates.
Sec. 618. Conforming accession bonus for dental officers authority with 
           authorities for other special pay and bonuses.

[[Page 115 STAT. 1129]]

Sec. 619. Modification of eligibility requirements for Individual Ready 
           Reserve bonus for reenlistment, enlistment, or extension of 
           enlistment.
Sec. 620. Installment payment authority for 15-year career status bonus.
Sec. 621. Accession bonus for new officers in critical skills.
Sec. 622. Education savings plan to encourage reenlistments and 
           extensions of service in critical specialties.
Sec. 623. Continuation of payment of special and incentive pay at 
           unreduced rates during stop loss periods.
Sec. 624. Retroactive authorization for imminent danger pay for service 
           in connection with Operation Enduring Freedom.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Minimum per diem rate for travel and transportation allowance 
           for travel performed upon a change of permanent station and 
           certain other travel.
Sec. 632. Eligibility for payment of subsistence expenses associated 
           with occupancy of temporary lodging incident to reporting to 
           first permanent duty station.
Sec. 633. Reimbursement of members for mandatory pet quarantine fees for 
           household pets.
Sec. 634. Increased weight allowance for transportation of baggage and 
           household effects for junior enlisted members.
Sec. 635. Eligibility of additional members for dislocation allowance.
Sec. 636. Partial dislocation allowance authorized for housing moves 
           ordered for Government convenience.
Sec. 637. Allowances for travel performed in connection with members 
           taking authorized leave between consecutive overseas tours.
Sec. 638. Travel and transportation allowances for family members to 
           attend burial of a deceased member of the uniformed services.
Sec. 639. Funded student travel for foreign study under an education 
           program approved by a United States school.

           Subtitle D--Retirement and Survivor Benefit Matters

Sec. 641. Contingent authority for concurrent receipt of military 
           retired pay and veterans' disability compensation and 
           enhancement of special compensation authority.
Sec. 642. Survivor Benefit Plan annuities for surviving spouses of 
           members who die while on active duty and not eligible for 
           retirement.

                        Subtitle E--Other Matters

Sec. 651. Payment for unused leave in excess of 60 days accrued by 
           members of reserve components on active duty for one year or 
           less.
Sec. 652. Additional authority to provide assistance for families of 
           members of the Armed Forces.
Sec. 653. Authorization of transitional compensation and commissary and 
           exchange benefits for dependents of commissioned officers of 
           the Public Health Service and the National Oceanic and 
           Atmospheric Administration who are separated for dependent 
           abuse.
Sec. 654. Transfer of entitlement to educational assistance under 
           Montgomery GI Bill by members of the Armed Forces with 
           critical military skills.

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE <<NOTE: 31 USC 1009 note.>> IN BASIC PAY FOR 
                        FISCAL YEAR 2002.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2002 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.

[[Page 115 STAT. 1130]]

    (b) Increase <<NOTE: Effective date.>> in Basic Pay.--Effective on 
January 1, 2002, the rates of monthly basic pay for members of the 
uniformed services within each pay grade are as follows:
      

                        COMMISSIONED OFFICERS \1\
 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
------------------------------------------------------------------------
O-10 \2\........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,180.20   7,415.40   7,571.10   7,614.90    7,809.30
O-7.............   5,966.40   6,371.70   6,371.70   6,418.20    6,657.90
O-6.............   4,422.00   4,857.90   5,176.80   5,176.80    5,196.60
O-5.............   3,537.00   4,152.60   4,440.30   4,494.30    4,673.10
O-4.............   3,023.70   3,681.90   3,927.60   3,982.50    4,210.50
O-3 \3\.........   2,796.60   3,170.40   3,421.80   3,698.70    3,875.70
O-2 \3\.........   2,416.20   2,751.90   3,169.50   3,276.30    3,344.10
O-1 \3\.........   2,097.60   2,183.10   2,638.50   2,638.50    2,638.50
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10 \2\........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,135.10   8,210.70   8,519.70   8,608.50    8,874.30
O-7.............   6,840.30   7,051.20   7,261.80   7,472.70    8,135.10
O-6.............   5,418.90   5,448.60   5,448.60   5,628.60    6,305.70
O-5.............   4,673.10   4,813.50   5,073.30   5,413.50    5,755.80
O-4.............   4,395.90   4,696.20   4,930.20   5,092.50    5,255.70
O-3 \3\.........   4,070.10   4,232.40   4,441.20   4,549.50    4,549.50
O-2 \3\.........   3,344.10   3,344.10   3,344.10   3,344.10    3,344.10
O-1 \3\.........   2,638.50   2,638.50   2,638.50   2,638.50    2,638.50
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10 \2\........      $0.00  $11,601.9  $11,659.2  $11,901.3  $12,324.00
                                     0          0          0
O-9.............       0.00  10,147.50  10,293.60  10,504.80   10,873.80
O-8.............   9,259.50   9,614.70   9,852.00   9,852.00    9,852.00
O-7.............   8,694.90   8,694.90   8,694.90   8,694.90    8,738.70
O-6.............   6,627.00   6,948.30   7,131.00   7,316.10    7,675.20
O-5.............   5,919.00   6,079.80   6,262.80   6,262.80    6,262.80
O-4.............   5,310.60   5,310.60   5,310.60   5,310.60    5,310.60
O-3 \3\.........   4,549.50   4,549.50   4,549.50   4,549.50    4,549.50
O-2 \3\.........   3,344.10   3,344.10   3,344.10   3,344.10    3,344.10
O-1 \3\.........   2,638.50   2,638.50   2,638.50   2,638.50    2,638.50
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades O-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\ Subject to the preceding footnote, while serving as Chairman or Vice
  Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
  Chief of Naval Operations, Chief of Staff of the Air Force, Commandant
  of the Marine Corps, or Commandant of the Coast Guard, the rate of
  basic pay for this grade is $13,598.10, regardless of cumulative years
  of service computed under section 205 of title 37, United States Code.
\3\ This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


[[Page 115 STAT. 1131]]


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 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
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $3,698.70   $3,875.70
O-2E............       0.00       0.00       0.00   3,276.30    3,344.10
O-1E............       0.00       0.00       0.00   2,638.50    2,818.20
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $4,070.10  $4,232.40  $4,441.20  $4,617.00   $4,717.50
O-2E............   3,450.30   3,630.00   3,768.90   3,872.40    3,872.40
O-1E............   2,922.30   3,028.50   3,133.20   3,276.30    3,276.30
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $4,855.20  $4,855.20  $4,855.20  $4,855.20   $4,855.20
O-2E............   3,872.40   3,872.40   3,872.40   3,872.40    3,872.40
O-1E............   3,276.30   3,276.30   3,276.30   3,276.30    3,276.30
------------------------------------------------------------------------


                          WARRANT OFFICERS \1\
 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
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   2,889.60   3,108.60   3,198.00   3,285.90   3,437.10
W-3..............   2,638.80   2,862.00   2,862.00   2,898.90   3,017.40
W-2..............   2,321.40   2,454.00   2,569.80   2,654.10   2,726.40
W-1..............   2,049.90   2,217.60   2,330.10   2,402.70   2,511.90
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,586.50   3,737.70   3,885.30   4,038.00   4,184.40
W-3..............   3,152.40   3,330.90   3,439.50   3,558.30   3,693.90
W-2..............   2,875.20   2,984.40   3,093.90   3,200.40   3,318.00
W-1..............   2,624.70   2,737.80   2,850.00   2,963.70   3,077.10
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $4,965.60  $5,136.00  $5,307.00  $5,478.60
W-4..............   4,334.40   4,480.80   4,632.60   4,782.00   4,935.30
W-3..............   3,828.60   3,963.60   4,098.30   4,233.30   4,368.90
W-2..............   3,438.90   3,559.80   3,680.10   3,801.30   3,801.30
W-1..............   3,189.90   3,275.10   3,275.10   3,275.10   3,275.10
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


[[Page 115 STAT. 1132]]


                          ENLISTED MEMBERS \1\
 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-9 \2\..........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   1,986.90   2,169.00   2,251.50   2,332.50   2,417.40
E-6..............   1,701.00   1,870.80   1,953.60   2,033.70   2,117.40
E-5..............   1,561.50   1,665.30   1,745.70   1,828.50   1,912.80
E-4..............   1,443.60   1,517.70   1,599.60   1,680.30   1,752.30
E-3..............   1,303.50   1,385.40   1,468.50   1,468.50   1,468.50
E-2..............   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30
E-1..............        \3\   1,105.50   1,105.50   1,105.50   1,105.50
                    1,105.50
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9 \2\..........      $0.00  $3,423.90  $3,501.30  $3,599.40  $3,714.60
E-8..............   2,858.10   2,940.60   3,017.70   3,110.10   3,210.30
E-7..............   2,562.90   2,645.10   2,726.40   2,808.00   2,892.60
E-6..............   2,254.50   2,337.30   2,417.40   2,499.30   2,558.10
E-5..............   2,030.10   2,110.20   2,193.30   2,193.30   2,193.30
E-4..............   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30
E-3..............   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50
E-2..............   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30
E-1..............   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9 \2\..........  $3,830.40  $3,944.10  $4,098.30  $4,251.30  $4,467.00
E-8..............   3,314.70   3,420.30   3,573.00   3,724.80   3,937.80
E-7..............   2,975.10   3,057.30   3,200.40   3,292.80   3,526.80
E-6..............   2,602.80   2,602.80   2,602.80   2,602.80   2,602.80
E-5..............   2,193.30   2,193.30   2,193.30   2,193.30   2,193.30
E-4..............   1,752.30   1,752.30   1,752.30   1,752.30   1,752.30
E-3..............   1,468.50   1,468.50   1,468.50   1,468.50   1,468.50
E-2..............   1,239.30   1,239.30   1,239.30   1,239.30   1,239.30
E-1..............   1,105.50   1,105.50   1,105.50   1,105.50   1,105.50
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.
\2\ Subject to the preceding footnote, while serving as Sergeant Major
  of the Army, Master Chief Petty Officer of the Navy, Chief Master
  Sergeant of the Air Force, Sergeant Major of the Marine Corps, or
  Master Chief Petty Officer of the Coast Guard, basic pay for this
  grade is $5,382.90, regardless of cumulative years of service computed
  under section 205 of title 37, United States Code.
\3\ In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,022.70.

SEC. 602. BASIC PAY RATE FOR CERTAIN RESERVE COMMISSIONED OFFICERS 
                        WITH PRIOR SERVICE AS AN ENLISTED MEMBER 
                        OR WARRANT OFFICER.

    (a) Service Credit.--Section 203(d) of title 37, United States Code, 
is amended--
            (1) by inserting ``(1)'' after ``(d)'';
            (2) by striking ``active service as a warrant officer or as 
        a warrant officer and an enlisted member'' and inserting 
        ``service described in paragraph (2)''; and
            (3) by adding at the end the following new paragraph:

    ``(2) Service to be taken into account for purposes of computing 
basic pay under paragraph (1) is as follows:
            ``(A) Active service as a warrant officer or as a warrant 
        officer and an enlisted member, in the case of--

[[Page 115 STAT. 1133]]

                    ``(i) a commissioned officer on active duty who is 
                paid from funds appropriated for active-duty personnel; 
                or
                    ``(ii) a commissioned officer on active Guard and 
                Reserve duty.
            ``(B) In the case of a commissioned officer (not referred to 
        in subparagraph (A)(ii)) who is paid from funds appropriated for 
        reserve personnel, service as a warrant officer, or as a warrant 
        officer and enlisted member, for which at least 1,460 points 
        have been credited to the officer for the purposes of section 
        12732(a)(2) of title 10.''.

    (b) Application <<NOTE: 37 USC 203 note.>> of Amendments.--The 
amendments made by subsection (a) shall apply with respect to months 
beginning on or after the date of the enactment of this Act.
SEC. 603. RESERVE COMPONENT COMPENSATION FOR DISTRIBUTED LEARNING 
                        ACTIVITIES PERFORMED AS INACTIVE-DUTY 
                        TRAINING.

    (a) Compensation Authorized.--Section 206(d) of title 37, United 
States Code, is amended--
            (1) by striking ``This section'' and inserting ``(1) Except 
        as provided in paragraph (2), this section'';
            (2) by striking ``an armed force'' and inserting ``a 
        uniformed service''; and
            (3) by adding at the end the following new paragraph:

    ``(2) A member of the Selected Reserve of the Ready Reserve may be 
paid compensation under this section at a rate and under terms 
determined by the Secretary of Defense, but not to exceed the rate 
otherwise applicable to the member under subsection (a), upon the 
member's successful completion of a course of instruction undertaken by 
the member using electronic-based distributed learning methodologies to 
accomplish training requirements related to unit readiness or 
mobilization, as directed for the member by the Secretary concerned. The 
compensation may be paid regardless of whether the course of instruction 
was under the direct control of the Secretary concerned or included the 
presence of an instructor.''.
    (b) Definition of Inactive-Duty Training.--Section 101(22) of such 
title is amended by inserting after ``but'' the following: ``(except as 
provided in section 206(d)(2) of this title)''.

SEC. 604. SUBSISTENCE ALLOWANCES.

    (a) Baseline Amount for Calculating Allowance for Enlisted 
Members.--Section 402(b) of title 37, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4) For purposes of implementing paragraph (2), the monthly rate 
of basic allowance for subsistence that was in effect for an enlisted 
member for calendar year 2001 is deemed to be $233.''.
    (b) Rate <<NOTE: 37 USC 402 note.>> for Enlisted Members When 
Messing Facilities Not Available.--(1) Notwithstanding section 402 of 
title 37, United States Code, 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, may prescribe a rate of basic 
allowance for subsistence to apply to enlisted members of the uniformed 
services when messing facilities of the United States are not available. 
The rate may be higher than the rate of basic allowance for subsistence 
that would otherwise be applicable to the members under that section, 
but may not be higher than the highest rate that was in effect for 
enlisted members of the uniformed

[[Page 115 STAT. 1134]]

services under those circumstances before the date of the enactment of 
this Act.

    (2) <<NOTE: Termination date.>> Paragraph (1) shall cease to be 
effective on the first day of the first month for which the basic 
allowance for subsistence calculated for enlisted members of the 
uniformed services under section 402 of title 37, United States Code, 
exceeds the rate of the basic allowance for subsistence prescribed under 
paragraph (1).

    (c) Continuation <<NOTE: 37 USC 402 note.>> of BAS Transitional 
Authority.--Notwithstanding the repeal of 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) by section 603(c) of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-145), the 
basic allowance for subsistence shall be paid in accordance with such 
subsections for October, November, and December of 2001.

    (d) Eligibility for Supplemental Subsistence Allowance.--Section 
402a(b)(1) of title 37, United States Code, is amended by inserting 
``with dependents'' after ``a member of the armed forces''.
SEC. 605. ELIGIBILITY FOR TEMPORARY HOUSING ALLOWANCE WHILE IN 
                        TRAVEL OR LEAVE STATUS BETWEEN PERMANENT 
                        DUTY STATIONS.

    (a) Repeal of Pay Grade Limitation.--Section 403(i) of title 37, 
United States Code, is amended by striking ``who is in a pay grade E-4 
(4 or more years of service) or above''.
    (b) Effective <<NOTE: 37 USC 403 note.>> Date; Application.--The 
amendment made by this section shall take effect on January 1, 2003, and 
apply to members of the uniformed services in a travel or leave status 
between permanent duty stations on or after that date.

SEC. 606. UNIFORM ALLOWANCE FOR OFFICERS.

    (a) Relation to Initial Uniform Allowance.--Section 416(b)(1) of 
title 37, United States Code, is amended by striking ``$200'' and 
inserting ``$400''.
    (b) Effective <<NOTE: 37 USC 416 note.>> Date.--The amendment made 
by this section shall take effect as of October 1, 2000.
SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS ELECTING 
                        UNACCOMPANIED TOUR BY REASON OF HEALTH 
                        LIMITATIONS OF DEPENDENTS.

    (a) Entitlement to Allowance.--Section 427(c) of title 37, United 
States Code, is amended--
            (1) by striking ``A member'' in the first sentence and 
        inserting ``(1) Except as provided in paragraph (2) or (3), a 
        member'';
            (2) in the second sentence, by striking ``The Secretary 
        concerned may waive the preceding sentence'' and inserting the 
        following:

    ``(3) The Secretary concerned may waive paragraph (1)''; and
            (3) by inserting after the first sentence the following new 
        paragraph:

    ``(2) The prohibition in the first sentence of paragraph (1) does 
not apply to a member who elects to serve an unaccompanied tour of duty 
because a dependent cannot accompany the member to or at that permanent 
station for certified medical reasons.''.

[[Page 115 STAT. 1135]]

    (b) Application <<NOTE: 37 USC 427 note.>> of Amendment.--Paragraph 
(2) of section 427(c) of title 37, United States Code, as added by 
subsection (a)(3), shall apply with respect to pay periods beginning on 
or after January 1, 2002, for a member of the uniformed services covered 
by such paragraph regardless of the date on which the member first made 
the election to serve an unaccompanied tour of duty.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS 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, 2001'' and inserting ``December 31, 
2002''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f ) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2001'' and inserting ``December 31, 2002''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (f ) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2001'' and 
inserting ``December 31, 2002''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f ) of such title 
is amended by striking ``December 31, 2001'' and inserting ``December 
31, 2002''.
    (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, 2002'' and inserting 
``January 1, 2003''.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS 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, 
2001'' and inserting ``December 31, 2002''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2001'' and inserting ``December 31, 2002''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking 
``December 31, 2001'' and inserting ``December 31, 2002''.

[[Page 115 STAT. 1136]]

SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES 
                        FOR NUCLEAR OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of such title is amended by striking 
``December 31, 2001'' and inserting ``December 31, 2002''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2001'' and inserting ``December 
31, 2002''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY 
                        AUTHORITIES.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2001'' and 
inserting ``December 31, 2002''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (c) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (d) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2001'' and inserting ``December 31, 2002''.
SEC. 615. HAZARDOUS DUTY PAY FOR MEMBERS OF MARITIME VISIT, BOARD, 
                        SEARCH, AND SEIZURE TEAMS.

    (a) Additional Type of Duty Eligible for Pay.--Section 301(a) of 
title 37, United States Code, is amended--
            (1) in paragraph (10), by striking ``or'' at the end;
            (2) by redesignating paragraph (11) as paragraph (12); and
            (3) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) involving regular participation as a member of a team 
        conducting visit, board, search, and seizure operations aboard 
        vessels in support of maritime interdiction operations; or''.

    (b) Monthly Amount.--Subsection (c) of such section is amended--
            (1) in paragraph (1), by striking ``(10)'' and inserting 
        ``(11)''; and
            (2) in paragraph (2)(A), by striking ``(11)'' and inserting 
        ``(12)''.

    (c) Application <<NOTE: 37 USC 301 note.>> of Amendment.--Paragraph 
(11) of section 301(a) of title 37, United States Code, as added by 
subsection (a)(3), shall apply to duty described in such paragraph that 
is performed on or after January 1, 2002.
SEC. 616. ELIGIBILITY FOR CERTAIN CAREER CONTINUATION BONUSES FOR 
                        EARLY COMMITMENT TO REMAIN ON ACTIVE DUTY.

    (a) Aviation Officers.--Section 301b(b)(4) of title 37, United 
States Code, is amended by inserting before the period at the end the 
following: ``or is within one year of completing such commitment''.

[[Page 115 STAT. 1137]]

    (b) Surface Warfare Officers.--Section 319(a)(3) of such title is 
amended by inserting before the period at the end the following: ``or is 
within one year of completing such commitment''.
SEC. 617. SECRETARIAL DISCRETION IN PRESCRIBING SUBMARINE DUTY 
                        INCENTIVE PAY RATES.

    (a) Authority of Secretary of the Navy; Maximum Rate.--Subsection 
(b) of section 301c of title 37, United States Code, is amended to read 
as follows:
    ``(b) Monthly Rates.--The Secretary of the Navy shall prescribe the 
monthly rates of submarine duty incentive pay, except that the maximum 
monthly rate may not exceed $1,000.''.
    (b) Conforming and Clerical Amendments.--Such section is further 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``Eligibility Requirements.--'' 
                after ``(a)''; and
                    (B) by striking ``set forth in'' each place it 
                appears and inserting ``prescribed pursuant to'';
            (2) in subsection (c), by inserting ``Exceptions.--'' after 
        ``(c)''; and
            (3) in subsection (d)--
                    (A) by inserting ``Applicability to Certain Naval 
                Reserve Duty.--'' after ``(d)''; and
                    (B) by striking ``authorized by'' and inserting 
                ``prescribed pursuant to''.

    (c) Transition.--The <<NOTE: Applicability. 37 USC 301c 
note.>> tables set forth in subsection (b) of section 301c of title 37, 
United States Code, as in effect on the day before the date of the 
enactment of this Act, shall continue to apply until the later of the 
following:
            (1) January 1, 2002.
            (2) The date on which the Secretary of the Navy prescribes 
        new submarine duty incentive pay rates as authorized by the 
        amendment made by subsection (a).
SEC. 618. CONFORMING ACCESSION BONUS FOR DENTAL OFFICERS AUTHORITY 
                        WITH AUTHORITIES FOR OTHER SPECIAL PAY AND 
                        BONUSES.

    Section 302h(a)(1) of title 37, United States Code, is amended by 
striking ``the date of the enactment of this section, and ending on 
September 30, 2002'' and inserting ``September 23, 1996, and ending on 
December 31, 2002''.
SEC. 619. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR INDIVIDUAL 
                        READY RESERVE BONUS FOR REENLISTMENT, 
                        ENLISTMENT, OR EXTENSION OF ENLISTMENT.

    (a) Eligibility Based on Qualifications in Critically Short Wartime 
Skills or Specialties.--Subsection (a) of section 308h of title 37, 
United States Code, is amended to read as follows:
    ``(a) Authority and Eligibility Requirements.--(1) The Secretary 
concerned may pay a bonus as provided in subsection (b) to an eligible 
person who reenlists, enlists, or voluntarily extends an enlistment in a 
reserve component of an armed force for assignment to an element (other 
than the Selected Reserve) of the Ready Reserve of that armed force if 
the reenlistment, enlistment, or extension is for a period of three 
years, or for a period of six years, beyond any other period the person 
is obligated to serve.

[[Page 115 STAT. 1138]]

    ``(2) A person is eligible for a bonus under this section if the 
person--
            ``(A) is or has been a member of an armed force;
            ``(B) is qualified in a skill or specialty designated by the 
        Secretary concerned as a critically short wartime skill or 
        critically short wartime specialty; and
            ``(C) has not failed to complete satisfactorily any original 
        term of enlistment in the armed forces.

    ``(3) For the purposes of this section, the Secretary concerned may 
designate a skill or specialty as a critically short wartime skill or 
critically short wartime specialty for an armed force under the 
jurisdiction of the Secretary if the Secretary determines that--
            ``(A) the skill or specialty is critical to meet wartime 
        requirements of the armed force; and
            ``(B) there is a critical shortage of personnel in that 
        armed force who are qualified in that skill or specialty.''.

    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (b), by inserting ``Bonus Amounts; 
        Payment.--'' after ``(b)'';
            (2)  in  subsection  (c),  by  inserting  ``Repayment  of  
        Bonus.--'' after ``(c)'';
            (3) in subsection (d), by inserting ``Treatment of 
        Reimbursement Obligation.--'' after ``(d)'';
            (4) in subsection (e), by inserting ``Effect of 
        Bankruptcy.--'' after ``(e)'';
            (5) in subsection (f), by inserting ``Regulations.--'' after 
        ``(f)''; and
            (6) in subsection (g), by inserting ``Termination of 
        Authority.--'' after ``(g)''.

    (c) Regulations.--Not <<NOTE: Deadline. 37 USC 308h note.>> later 
than 180 days after the date of the enactment of this Act, the 
Secretaries of the military departments shall prescribe such regulations 
as may be necessary for administering subsection (a) of section 308h of 
title 37, United States Code, as amended by this section.

    (d) Application <<NOTE: 37 USC 308h note.>> of Amendment.--
Subsection (a) of section 308h of title 37, United States Code, as 
amended by this section, shall apply with respect to reserve component 
reenlistments, enlistments, and extensions of enlistments that are 
executed on or after the first day of the first month that begins more 
than 180 days after the date of the enactment of this Act. Subsection 
(a) of such section 308h, as in effect on the day before the date of the 
enactment of this Act, shall continue to apply with respect to reserve 
component reenlistments, enlistments, and extensions of enlistments that 
are executed before the first day of that first month.
SEC. 620. INSTALLMENT PAYMENT AUTHORITY FOR 15-YEAR CAREER STATUS 
                        BONUS.

    (a) Member Election.--Section 322(d) of title 37, United States 
Code, is amended--
            (1) in paragraph (1), by striking ``paid in a single lump 
        sum of'' and inserting ``equal to'';
            (2) by redesignating paragraph (2) as paragraph (4), and in 
        such paragraph, by striking ``The bonus'' and inserting ``The 
        lump sum payment of the bonus, and the first installment payment 
        in the case of members who elect to receive the bonus in 
        installments,''; and

[[Page 115 STAT. 1139]]

            (3) by inserting after paragraph (1) the following new 
        paragraphs:

    ``(2) A member electing to receive the bonus under this section 
shall elect one of the following payment options:
            ``(A) A single lump sum of $30,000.
            ``(B) Two installments of $15,000 each.
            ``(C) Three installments of $10,000 each.
            ``(D) Four installments of $7,500 each.
            ``(E) Five installments of $6,000 each.

    ``(3) If a member elects installment payments under paragraph (2), 
the second installment (and subsequent installments, as applicable) 
shall be paid on the earlier of the following dates:
            ``(A) The annual anniversary date of the payment of the 
        first installment.
            ``(B) January 15 of each succeeding calendar year.''.

    (b) Application <<NOTE: 37 USC 322 note.>> to Existing Agreements.--
The Secretary concerned (as defined in section 101(5) of title 37, 
United States Code) shall extend to each member of the uniformed 
services who has executed the written agreement required by subsection 
(a)(2) of section 322 of such title before the date of the enactment of 
this Act, but who has not received the lump sum payment by that date, an 
opportunity to make the election authorized by subsection (d) of such 
section, as amended by this section.
SEC. 621. ACCESSION BONUS FOR NEW OFFICERS IN CRITICAL SKILLS.

    (a) Bonus Authorized.--Chapter 5 of title 37, United States Code, is 
amended by adding at the end the following new section:
``Sec. 324. Special pay: accession bonus for new officers in 
                  critical skills

    ``(a) Accession <<NOTE: Regulations.>> Bonus Authorized.--Under 
regulations prescribed by the Secretary concerned, a person who executes 
a written agreement to accept a commission as an officer of the armed 
forces and serve on active duty in a designated critical officer skill 
for the period specified in the agreement may, upon acceptance of the 
agreement by the Secretary concerned, be paid an accession bonus in an 
amount determined by the Secretary concerned.

    ``(b) Designation of Critical Officer Skills.--(1) The Secretary 
concerned shall designate the critical officer skills for the purposes 
of this section. A skill may be designated as a critical officer skill 
for an armed force under this subsection if--
            ``(1) in order to meet requirements of the armed force, it 
        is critical for the armed force to have a sufficient number of 
        officers who are qualified in that skill; and
            ``(2) in order to mitigate a current or projected 
        significant shortage of personnel in the armed force who are 
        qualified in that skill, it is critical to access into that 
        armed force in sufficient numbers persons who are qualified in 
        that skill or are to be trained in that skill.

    ``(c) Limitation on Amount of Bonus.--The amount of an accession 
bonus under subsection (a) may not exceed $60,000.
    ``(d) Payment Method.--Upon acceptance of a written agreement under 
subsection (a) by the Secretary concerned, the total amount of the 
accession bonus payable under the agreement becomes fixed. The agreement 
shall specify whether the accession bonus will be paid by the Secretary 
in a lump sum or installments.

[[Page 115 STAT. 1140]]

    ``(e) Relation to Other Accession Bonus Authority.--An individual 
may not receive an accession bonus under this section and section 302d, 
302h, 302j, or 312b of this title for the same period of service.
    ``(f) Repayment for Failure To Commence or Complete Obligated 
Service.--(1) An individual who, after having received all or part of 
the accession bonus under an agreement referred to in subsection (a), 
fails to accept a commission as an officer or to commence or complete 
the total period of active duty service specified in the agreement shall 
repay to the United States the amount that bears the same ratio to the 
total amount of the bonus authorized for such person as the unserved 
part of the period of agreed active duty service bears to the total 
period of the agreed active duty service. However, the amount required 
to be repaid by the individual may not exceed the amount of the 
accession bonus that was paid to the individual.
    ``(2) Subject to paragraph (3), an obligation to repay the United 
States imposed under paragraph (1) is for all purposes a debt owed to 
the United States. A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of an agreement 
entered into under subsection (a) does not discharge the individual 
signing the agreement from a debt arising under such agreement or under 
paragraph (1).
    ``(3) The Secretary concerned may waive, in whole or in part, the 
repayment requirement under paragraph (1) on a case-by-case basis if the 
Secretary concerned determines that repayment would be against equity 
and good conscience or would be contrary to the best interests of the 
United States.
    ``(g) Termination of Authority.--No agreement under this section may 
be entered into after December 31, 2002.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``324. Special pay: accession bonus for new officers in critical 
          skills.''.
SEC. 622. EDUCATION SAVINGS PLAN TO ENCOURAGE REENLISTMENTS AND 
                        EXTENSIONS OF SERVICE IN CRITICAL 
                        SPECIALTIES.

    (a) Establishment of Savings Plan.--(1) Chapter 5 of title 37, 
United States Code, is amended by inserting after section 324, as added 
by section 621, the following new section:
``Sec. 325. Incentive bonus: savings plan for education expenses 
                  and other contingencies

    ``(a) Benefit and Eligibility.--The Secretary concerned may purchase 
United States savings bonds under this section for a member of the armed 
forces who is eligible as follows:
            ``(1) A member who, before completing three years of service 
        on active duty, enters into a commitment to perform qualifying 
        service.
            ``(2) A member who, after completing three years of service 
        on active duty, but not more than nine years of service on 
        active duty, enters into a commitment to perform qualifying 
        service.
            ``(3) A member who, after completing nine years of service 
        on active duty, enters into a commitment to perform qualifying 
        service.

[[Page 115 STAT. 1141]]

    ``(b) Qualifying Service.--For the purposes of this section, 
qualifying service is service on active duty in a specialty designated 
by the Secretary concerned as critical to meet requirements (whether or 
not such specialty is designated as critical to meet wartime or 
peacetime requirements) for a period that--
            ``(1) is not less than six years; and
            ``(2) does not include any part of a period for which the 
        member is obligated to serve on active duty under an enlistment 
        or other agreement for which a benefit has previously been paid 
        under this section.

    ``(c) Forms of Commitment to Additional Service.--For the purposes 
of this section, a commitment means--
            ``(1) in the case of an enlisted member, a reenlistment; and
            ``(2) in the case of a commissioned officer, an agreement 
        entered into with the Secretary concerned.

    ``(d) Amounts of Bonds.--The total of the face amounts of the United 
States savings bonds authorized to be purchased for a member under this 
section for a commitment shall be as follows:
            ``(1) In the case of a purchase for a member under paragraph 
        (1) of subsection (a), $5,000.
            ``(2) In the case of a purchase for a member under paragraph 
        (2) of subsection (a), the amount equal to the excess of $15,000 
        over the total of the face amounts of any United States savings 
        bonds previously purchased for the member under this section.
            ``(3) In the case of a purchase for a member under paragraph 
        (3) of subsection (a), the amount equal to the excess of $30,000 
        over the total of the face amounts of any United States savings 
        bonds previously purchased for the member under this section.

    ``(e) Total Amount of Benefit.--The total amount of the benefit 
authorized for a member when United States savings bonds are purchased 
for the member under this section by reason of a commitment by that 
member shall be the sum of--
            ``(1) the purchase price of the United States savings bonds; 
        and
            ``(2) the amounts that would be deducted and withheld for 
        the payment of individual income taxes if the total amount 
        computed under this subsection for that commitment were paid to 
        the member as a bonus.

    ``(f) Amount Withheld for Taxes.--The total amount payable for a 
member under subsection (e)(2) for a commitment by that member shall be 
withheld, credited, and otherwise treated in the same manner as amounts 
deducted and withheld from the basic pay of the member.
    ``(g) Repayment for Failure To Complete Obligated Service.--(1) If a 
person fails to complete the qualifying service for which the person is 
obligated under a commitment for which a benefit has been paid under 
this section, the person shall refund to the United States the amount 
that bears the same ratio to the total amount paid for the person (as 
computed under subsection (e)) for that particular commitment as the 
uncompleted part of the period of qualifying service bears to the total 
period of the qualifying service for which obligated.

[[Page 115 STAT. 1142]]

    ``(2) Subject to paragraph (3), 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 concerned may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an enlistment or other 
agreement under this section does not discharge the person signing such 
enlistment or other agreement from a debt arising under the enlistment 
or agreement, respectively, or this subsection.
    ``(h) Relationship to Other Special Pays.--The benefit authorized 
under this section is in addition to any other bonus or incentive or 
special pay that is paid or payable to a member under any other 
provision of this chapter for any portion of the same qualifying 
service.
    ``(i) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the armed forces 
under his jurisdiction and by the Secretary of Transportation for the 
Coast Guard when the Coast Guard is not operating as a service in the 
Navy.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 324, as added by 
section 621(b), the following new item:
``325. Incentive bonus: savings plan for education expenses and other 
          contingencies.''.

    (b) Application <<NOTE: 37 USC 325 note.>> of Amendment.--Section 
325 of title 37, United States Code, as added by subsection (a), shall 
apply with respect to reenlistments and other agreements for qualifying 
service, as described in that section, that are entered into on or after 
October 1, 2001.

    (c) Funding For Fiscal Year 2002.--Of the amount authorized to be 
appropriated to the Department of Defense for military personnel for 
fiscal year 2002 by section 421, $20,000,000 may be available in that 
fiscal year for the purchase of United States savings bonds under 
section 325 of title 37, United States Code, as added by subsection (a).
SEC. 623. CONTINUATION OF PAYMENT OF SPECIAL AND INCENTIVE PAY AT 
                        UNREDUCED RATES DURING STOP LOSS PERIODS.

    (a) Authority to Continue.--(1) Chapter 17 of title 37, United 
States Code, is amended by adding at the end the following new section:
``Sec. 909. Special and incentive pay: payment at unreduced rates 
                  during suspension of personnel laws

    ``(a) Authority To Continue Payment at Unreduced Rates.--To ensure 
fairness and recognize the contributions of members of the armed forces 
to military essential missions, the Secretary of the military department 
concerned may authorize members who are involuntarily retained on active 
duty under section 123 or 12305 of title 10 or any other provision of 
law and who, immediately before retention on active duty, were entitled 
or eligible for special pay or incentive pay under chapter 5 of this 
title, to receive that special pay or incentive pay for qualifying 
service performed during

[[Page 115 STAT. 1143]]

the retention period, without a reduction in the payment rate below the 
rate the members received immediately before retention on active duty, 
notwithstanding any requirement otherwise applicable to that special pay 
or incentive pay that would reduce the payment rate by reason of the 
years of service of the members.
    ``(b) Suspension During Time of War.--Subsection (a) does not apply 
with respect to a special pay or incentive pay under chapter 5 of this 
title, whenever the authority to provide that special pay or incentive 
pay is suspended by the President or the Secretary of Defense during a 
time of war.
    ``(c) Qualifying Service Defined.--In this section, the term 
`qualifying service' means service for which a particular special pay or 
incentive pay is payable under the authority of a provision of chapter 5 
of this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``909. Special and incentive pay: payment at unreduced rates during 
          suspension of personnel laws.''.

    (b) Application <<NOTE: 37 USC 909 note.>> of Amendments.--Section 
909 of title 37, United States Code, as added by subsection (a)(1), 
shall apply with respect to pay periods beginning after September 11, 
2001.
SEC. 624. RETROACTIVE <<NOTE: 37 USC 310 note.>> AUTHORIZATION FOR 
                        IMMINENT DANGER PAY FOR SERVICE IN 
                        CONNECTION WITH OPERATION ENDURING 
                        FREEDOM.

    (a) Retroactive Authorization.--The Secretary of Defense may provide 
for the payment of imminent danger pay under section 310 of title 37, 
United States Code, to members of the Armed Forces assigned to duty in 
the areas specified in subsection (b) in connection with the contingency 
operation known as Operation Enduring Freedom with respect to periods of 
duty served in those areas during the period beginning on September 19, 
2001, and ending October 31, 2001.
    (b) Specified Areas.--The areas referred to in subsection (a) are 
the following:
            (1) The land areas of Kyrgyzstan, Oman, the United Arab 
        Emirates, and Uzbekistan.
            (2) The Red Sea, the Gulf of Aden, the Gulf of Oman, and the 
        Arabian Sea (that portion north of 10/ north latitude and west 
        of 68/ east longitude).

            Subtitle C--Travel and Transportation Allowances

SEC. 631. MINIMUM PER DIEM RATE FOR TRAVEL AND TRANSPORTATION 
                        ALLOWANCE FOR TRAVEL PERFORMED UPON A 
                        CHANGE OF PERMANENT STATION AND CERTAIN 
                        OTHER TRAVEL.

    Section 404(d) of title 37, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(5) <<NOTE: Effective date.>> Effective January 1, 2003, the per 
diem rates established under paragraph (2)(A) for travel performed in 
connection with a change of permanent station or for travel described in 
paragraph (2) or (3) of subsection (a) shall be equal to the standard 
per diem rates established in the Federal travel regulation for travel

[[Page 115 STAT. 1144]]

within the continental United States of civilian employees and their 
dependents, unless the Secretaries concerned determine that a higher 
rate for members is more appropriate.''.
SEC. 632. ELIGIBILITY FOR PAYMENT OF SUBSISTENCE EXPENSES 
                        ASSOCIATED WITH OCCUPANCY OF TEMPORARY 
                        LODGING INCIDENT TO REPORTING TO FIRST 
                        PERMANENT DUTY STATION.

    (a) Inclusion of Officers.--Subsection (a)(2)(C) of section 404a of 
title 37, United States Code, is amended by striking ``an enlisted 
member'' and inserting ``a member''.
    (b) Increase in Maximum Daily Authorized Rate.--Subsection (e) of 
such section is amended by striking ``$110'' and inserting ``$180''.
    (c) Effective <<NOTE: 37 USC 404a note.>> Date; Application.--The 
amendments made by this section shall take effect on January 1, 2002, 
and apply with respect to an order issued on or after that date to a 
member of the uniformed services to report to the member's first 
permanent duty station.
SEC. 633. REIMBURSEMENT OF MEMBERS FOR MANDATORY PET QUARANTINE 
                        FEES FOR HOUSEHOLD PETS.

    (a) Increase in Maximum Reimbursement Amount.--Section 406(a)(1) of 
title 37, United States Code, is amended in the last sentence by 
striking ``$275'' and inserting ``$550''.
    (b) Application <<NOTE: 37 USC 406 note.>> of Amendment.--The 
amendment made by subsection (a) shall apply with respect to the 
reimbursement of members of the uniformed services for mandatory pet 
quarantine fees incurred in connection with the mandatory quarantine of 
a household pet underway on the date of the enactment of this Act or 
beginning on or after that date.
SEC. 634. INCREASED WEIGHT ALLOWANCE FOR TRANSPORTATION OF BAGGAGE 
                        AND HOUSEHOLD EFFECTS FOR JUNIOR ENLISTED 
                        MEMBERS.

    (a) Increased Weight Allowances.--The table in section 406(b)(1)(C) 
of title 37, United States Code, is amended--
            (1) by striking the two footnotes; and
            (2) by striking the items relating to pay grade E-1 through 
        E-4 and inserting the following new items:


``E-4.............................................      7,000      8,000
``E-3.............................................      5,000      8,000
``E-2.............................................      5,000      8,000
``E-1.............................................      5,000   8,000''.
 

  
    (b) Effective <<NOTE: 37 USC 406 note.>> Date; Application.--The 
amendments made by this section shall take effect on January 1, 2003, 
and apply with respect to an order in connection with a change of 
temporary or permanent station issued on or after that date.
SEC. 635. ELIGIBILITY OF ADDITIONAL MEMBERS FOR DISLOCATION 
                        ALLOWANCE.

    (a) Eligibility for Primary Dislocation Allowance.--Subsection (a) 
of section 407 of title 37, United States Code, is amended--
            (1) in paragraph (2), by adding at the end the following new 
        subparagraphs:
            ``(F) A member whose dependents actually move from the 
        member's place of residence in connection with the performance

[[Page 115 STAT. 1145]]

        of orders for the member to report to the member's first 
        permanent duty station if the move--
                    ``(i) is to the permanent duty station or a 
                designated location; and
                    ``(ii) is an authorized move.
            ``(G) Each of two members married to each other who--
                    ``(i) is without dependents;
                    ``(ii) actually moves with the member's spouse to a 
                new permanent duty station; and
                    ``(iii) is assigned to family quarters of the United 
                States at or in the vicinity of the new duty station.''; 
                and
            (2) by adding at the end the following new paragraph:

    ``(4) If a primary dislocation allowance is payable to two members 
described in paragraph (2)(G) who are married to each other, the amount 
of the allowance payable to such members shall be the amount otherwise 
payable under this subsection to the member in the higher pay grade, or 
to either member if both members are in the same pay grade. The 
allowance shall be paid jointly to both members.''.
    (b) Conforming Amendment.--Subsection (e) of such section is amended 
by inserting ``(except as provided in subsection (a)(2)(F))'' after 
``first duty station''.
    (c) Application <<NOTE: 37 USC 407 note.>> of Amendments.--The 
amendments made by this section shall apply with respect to an order 
issued on or after January 1, 2002, in connection with a change of 
permanent station or for a member of the uniformed services to report to 
the member's first permanent duty station.
SEC. 636. PARTIAL DISLOCATION ALLOWANCE AUTHORIZED FOR HOUSING 
                        MOVES ORDERED FOR GOVERNMENT CONVENIENCE.

    (a) Authorization of Partial Dislocation Allowance.--Section 407 of 
title 37, United States Code, is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection:

    ``(f) Partial <<NOTE: Regulations.>> Dislocation Allowance.--(1) 
Under regulations prescribed by the Secretary concerned, a member 
ordered to occupy or vacate family housing provided by the United States 
to permit the privatization or renovation of housing or for any other 
reason (other than pursuant to a permanent change of station) may be 
paid a partial dislocation allowance of $500.

    ``(2) <<NOTE: Effective date.>> Effective on the same date that the 
monthly rates of basic pay for all members are increased under section 
1009 of this title or another provision of law, the Secretary of Defense 
shall adjust the rate of the partial dislocation allowance authorized by 
this subsection by the percentage equal to the average percentage 
increase in the rates of basic pay.

    ``(3) Subsections (c) and (d) do not apply to the partial 
dislocation allowance authorized by this subsection.''.
    (b) Application <<NOTE: 37 USC 407 note.>> of Amendment.--Subsection 
(f) of title 37, United States Code, as added by subsection (a)(2), 
shall apply with respect to an order to move for a member of a uniformed 
service that is issued on or after the date of the enactment of this 
Act.

[[Page 115 STAT. 1146]]

SEC. 637. ALLOWANCES FOR TRAVEL PERFORMED IN CONNECTION WITH 
                        MEMBERS TAKING AUTHORIZED LEAVE BETWEEN 
                        CONSECUTIVE OVERSEAS TOURS.

    Section 411b(a)(1) of title 37, United States Code, is amended by 
striking ``, or his designee, or to a place no farther distant than his 
home of record''.
SEC. 638. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY MEMBERS 
                        TO ATTEND BURIAL OF A DECEASED MEMBER OF 
                        THE UNIFORMED SERVICES.

    (a) Consolidation of Authorities.--Section 411f of title 37, United 
States Code, is amended to read as follows:
``Sec. 411f. Travel and transportation allowances: transportation 
                    for survivors of deceased member to attend the 
                    member's burial ceremonies

    ``(a) Allowances Authorized.--(1) The Secretary concerned may 
provide round trip travel and transportation allowances to eligible 
relatives of a member of the uniformed services who dies while on active 
duty or inactive duty in order that the eligible relatives may attend 
the burial ceremony of the deceased member.
    ``(2) The Secretary concerned may also provide round trip travel and 
transportation allowances to an attendant who accompanies an eligible 
relative provided travel and transportation allowances under paragraph 
(1) for travel to the burial ceremony if the Secretary concerned 
determines that--
            ``(A) the accompanied eligible relative is unable to travel 
        unattended because of age, physical condition, or other 
        justifiable reason; and
            ``(B) there is no other eligible relative of the deceased 
        member traveling to the burial ceremony who is eligible for 
        travel and transportation allowances under paragraph (1) and is 
        qualified to serve as the attendant.

    ``(b) Limitations.--(1) Except as provided in paragraphs (2) and 
(3), allowances under subsection (a) are limited to travel and 
transportation to a location in the United States, Puerto Rico, and the 
possessions of the United States and may not exceed the rates for two 
days and the time necessary for such travel.
    ``(2) If a deceased member was ordered or called to active duty from 
a place outside the United States, Puerto Rico, or the possessions of 
the United States, the allowances authorized under subsection (a) may be 
provided to and from such place and may not exceed the rates for two 
days and the time necessary for such travel.
    ``(3) If a deceased member is interred in a cemetery maintained by 
the American Battle Monuments Commission, the travel and transportation 
allowances authorized under subsection (a) may be provided to and from 
such cemetery and may not exceed the rates for two days and the time 
necessary for such travel.
    ``(c) Eligible Relatives.--(1) The following members of the family 
of a deceased member of the uniformed services are eligible for the 
travel and transportation allowances under subsection (a)(1):
            ``(A) The surviving spouse (including a remarried surviving 
        spouse) of the deceased member.
            ``(B) The unmarried child or children of the deceased member 
        referred to in section 401(a)(2) of this title.

[[Page 115 STAT. 1147]]

            ``(C) If no person described in subparagraph (A) or (B) is 
        provided travel and transportation allowances under subsection 
        (a)(1), the parent or parents of the deceased member (as defined 
        in section 401(b)(2) of this title).

    ``(2) If no person described in paragraph (1) is provided travel and 
transportation allowances under subsection (a)(1), the travel and 
transportation allowances may be provided to--
            ``(A) the person who directs the disposition of the remains 
        of the deceased member under section 1482(c) of title 10, or, in 
        the case of a deceased member whose remains are commingled and 
        buried in a common grave in a national cemetery, the person who 
        would have been designated under such section to direct the 
        disposition of the remains if individual identification had been 
        made; and
            ``(B) up to two additional persons closely related to the 
        deceased member who are selected by the person referred to in 
        subparagraph (A).

    ``(d) Expanded Allowances Related to Recovery of Remains From 
Vietnam Conflict.--(1) The Secretary of Defense may provide round trip 
travel and transportation allowances for the family of a deceased member 
of the armed forces who died while classified as a prisoner of war or as 
missing in action during the Vietnam conflict and whose remains are 
returned to the United States in order that the family members may 
attend the burial ceremony of the deceased member.
    ``(2) The allowances under paragraph (1) shall include round trip 
transportation from the places of residence of such family members to 
the burial ceremony and such living expenses and other allowances as the 
Secretary of Defense considers appropriate.
    ``(3) For purposes of paragraph (1), eligible family members of the 
deceased member of the armed forces include the following:
            ``(A) The surviving spouse (including a remarried surviving 
        spouse) of the deceased member.
            ``(B) The child or children, including children described in 
        section 401(b)(1) of this title, of the deceased member.
            ``(C) The parent or parents of the deceased member (as 
        defined in section 401(b)(2) of this title).
            ``(D) If no person described in subparagraph (A), (B), or 
        (C) is provided travel and transportation allowances under 
        paragraph (1), any brothers, sisters, halfbrothers, halfsisters, 
        stepbrothers, and stepsisters of the deceased member.

    ``(e) Burial Ceremony Defined.--In this section, the term `burial 
ceremony' includes the following:
            ``(1) An interment of casketed or cremated remains.
            ``(2) A placement of cremated remains in a columbarium.
            ``(3) A memorial service for which reimbursement is 
        authorized under section 1482(d)(2) of title 10.
            ``(4) A burial of commingled remains that cannot be 
        individually identified in a common grave in a national 
        cemetery.

    ``(f) Regulations.--The Secretaries concerned shall prescribe 
uniform regulations to carry out this section.''.
    (b) Repeal of Superseded Laws; Conforming Amendment.--(1) Section 
1482 of title 10, United States Code, is amended by striking subsection 
(d) and redesignating subsections (e), (f), and (g) as subsections (d), 
(e), and (f), respectively.
    (2) Section 1481(a)(9) of such title is amended by striking 
``section 1482(g)'' and inserting ``section 1482(f)''.

[[Page 115 STAT. 1148]]

    (3) The Funeral Transportation and Living Expense Benefits Act of 
1974 (Public Law 93-257; 37 U.S.C. 406 note) is repealed.
    (c) Application <<NOTE: 37 USC 411 note.>> of Amendment.--Section 
411f of title 37, United States Code, as amended by subsection (a), 
shall apply with respect to burial ceremonies of deceased members of the 
uniformed services that occur on or after the date of the enactment of 
this Act.
SEC. 639. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY UNDER AN 
                        EDUCATION PROGRAM APPROVED BY A UNITED 
                        STATES SCHOOL.

    (a) Availability of Allowance.--Subsection (a) of section 430 of 
title 37, United States Code, is amended to read as follows:
    ``(a) Availability <<NOTE: Regulations.>> of Allowance.--(1) Under 
regulations prescribed by the Secretary of Defense, a member of a 
uniformed service may be paid the allowance set forth in subsection (b) 
if the member--
            ``(A) is assigned to a permanent duty station outside the 
        continental United States;
            ``(B) is accompanied by the member's dependents at or near 
        that duty station (unless the member's only dependents are in 
        the category of dependent described in paragraph (2)); and
            ``(C) has an eligible dependent child described in paragraph 
        (2).

    ``(2) An eligible dependent child of a member referred to in 
paragraph (1)(C) is a child who--
            ``(A) is under 23 years of age and unmarried;
            ``(B) is enrolled in a school in the continental United 
        States for the purpose of obtaining a formal education; and
            ``(C) is attending that school or is participating in a 
        foreign study program approved by that school and, pursuant to 
        that foreign study program, is attending a school outside the 
        United States for a period of not more than one year.''.

    (b) Type of Allowance Authorized.--Subsection (b) of such section is 
amended--
            (1) by inserting ``Allowance Authorized.--'' after ``(b)'';
            (2) in the first sentence of paragraph (1), by striking 
        ``each unmarried dependent child,'' and all that follows through 
        ``the school being attended'' and inserting ``each eligible 
        dependent child of the member of one annual trip between the 
        school being attended by that child''; and
            (3) by adding at the end the following new paragraph:

    ``(3) The transportation allowance paid under paragraph (1) for an 
annual trip of an eligible dependent child who is attending a school 
outside the United States may not exceed the transportation allowance 
that would be paid under this section for the annual trip of that child 
between the child's school in the continental United States and the 
member's duty station outside the continental United States and 
return.''.
    (c) Clerical and Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (c), by inserting ``Use of Airlift and 
        Sealift Command.--'' after ``(c)'';
            (2) in subsection (d)--
                    (A) by inserting ``Attendance at School in Alaska or 
                Hawaii.--'' after ``(d)''; and

[[Page 115 STAT. 1149]]

                    (B) by striking ``subsection (a)(3)'' and inserting 
                ``subsection (a)(2)'';
            (3) in subsection (e), by inserting ``Exception.--'' after 
        ``(e)''; and
            (4) in subsection (f), by inserting ``Definitions.--'' after 
        ``(f)''.

    (d) Application <<NOTE: 37 USC 430 note.>> of Amendments.--The 
amendments made by this section shall apply with respect to travel 
described in subsection (b) of section 430 of title 37, United States 
Code, as amended by this section, that commences on or after the date of 
the enactment of this Act.

           Subtitle D--Retirement and Survivor Benefit Matters

SEC. 641. CONTINGENT AUTHORITY FOR CONCURRENT RECEIPT OF MILITARY 
                        RETIRED PAY AND VETERANS' DISABILITY 
                        COMPENSATION AND ENHANCEMENT OF SPECIAL 
                        COMPENSATION AUTHORITY.

    (a) Restoration of Retired Pay Benefits.--Chapter 71 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 1414. Members eligible for retired pay who have service-
                    connected disabilities: payment of retired pay 
                    and veterans' disability compensation; 
                    contingent authority

    ``(a) Payment of Both Retired Pay and Compensation.--Subject to 
subsection (b), a member or former member of the uniformed services who 
is entitled to retired pay (other than as specified in subsection (c)) 
and who is also entitled to veterans' disability compensation is 
entitled to be paid both without regard to sections 5304 and 5305 of 
title 38, subject to the enactment of qualifying offsetting legislation 
as specified in subsection (f).
    ``(b) Special Rule for Chapter 61 Career Retirees.--The retired pay 
of a member retired under chapter 61 of this title with 20 years or more 
of service otherwise creditable under section 1405 of this title at the 
time of the member's retirement is subject to reduction under sections 
5304 and 5305 of title 38, but only to the extent that the amount of the 
member's retired pay under chapter 61 of this title exceeds the amount 
of retired pay to which the member would have been entitled under any 
other provision of law based upon the member's service in the uniformed 
services if the member had not been retired under chapter 61 of this 
title.
    ``(c) Exception.--Subsection (a) does not apply to a member retired 
under chapter 61 of this title with less than 20 years of service 
otherwise creditable under section 1405 of this title at the time of the 
member's retirement.
    ``(d) Definitions.--In this section:
            ``(1) The term `retired pay' includes retainer pay, 
        emergency officers' retirement pay, and naval pension.
            ``(2) The term `veterans' disability compensation' has the 
        meaning given the term `compensation' in section 101(12) of 
        title 38.

[[Page 115 STAT. 1150]]

    ``(e) Effective Date.--If qualifying offsetting legislation (as 
defined in subsection (f)) is enacted, the provisions of subsection (a) 
shall take effect on--
            ``(1) the first day of the first month beginning after the 
        date of the enactment of such qualifying offsetting legislation; 
        or
            ``(2) the first day of the fiscal year that begins in the 
        calendar year in which such legislation is enacted, if that date 
        is later than the date specified in paragraph (1).

    ``(f) Effectiveness Contingent on Enactment of Offsetting 
Legislation.--(1) The provisions of subsection (a) shall be effective 
only if--
            ``(A) the President, in the budget for any fiscal year, 
        proposes the enactment of legislation that, if enacted, would be 
        qualifying offsetting legislation; and
            ``(B) after that budget is submitted to Congress, there is 
        enacted qualifying offsetting legislation.

    ``(2) In this subsection:
            ``(A) The term `qualifying offsetting legislation' means 
        legislation (other than an appropriations Act) that includes 
        provisions that--
                    ``(i) offset fully the increased outlays to be made 
                by reason of the provisions of subsection (a) for each 
                of the first 10 fiscal years beginning after the date of 
                the enactment of such legislation;
                    ``(ii) expressly state that they are enacted for the 
                purpose of the offset described in clause (i); and
                    ``(iii) are included in full on the PayGo scorecard.
            ``(B) The term `PayGo scorecard' means the estimates that 
        are made by the Director of the Congressional Budget Office and 
        the Director of the Office of Management and Budget under 
        section 252(d) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 (2 U.S.C. 902(d)) with respect to the ten 
        fiscal years following the date of the enactment of the 
        legislation that is qualifying offsetting legislation for 
        purposes of this section.''.

    (b) Conforming Termination of Special Compensation Program.--Section 
1413(a) of such title is amended by adding at the end the following new 
sentence: ``If the provisions of subsection (a) of section 1414 of this 
title become effective in accordance with subsection (f) of that 
section, payments under this section shall be terminated effective as of 
the month beginning on the effective date specified in subsection (e) of 
that section.''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``1414. Members eligible for retired pay who have service-connected 
            disabilities: payment of retired pay and veterans' 
            disability compensation; contingent authority.''.

    (d) Prohibition <<NOTE: 10 USC 1414 note.>> of Retroactive 
Benefits.--If the provisions of subsection (a) of section 1414 of title 
10, United States Code, becomes effective in accordance with subsection 
(f) of that section, no benefit may be paid to any person by reason of 
those provisions for any period before the effective date specified in 
subsection (e) of that section.

    (e) Enhancement of Special Compensation Authority.--(1) Subsection 
(b) of section 1413 of title 10, United States Code,

[[Page 115 STAT. 1151]]

is amended by striking paragraphs (1), (2), and (3) and inserting the 
following:
            ``(1) For payments for months beginning with February 2002 
        and ending with December 2002, the following:
                    ``(A) For any month for which the retiree has a 
                qualifying service-connected disability rated as total, 
                $300.
                    ``(B) For any month for which the retiree has a 
                qualifying service-connected disability rated as 90 
                percent, $200.
                    ``(C) For any month for which the retiree has a 
                qualifying service-connected disability rated as 80 
                percent or 70 percent, $100.
                    ``(D) For any month for which the retiree has a 
                qualifying service-connected disability rated as 60 
                percent, $50.
            ``(2) For payments for months beginning with January 2003 
        and ending with September 2004, the following:
                    ``(A) For any month for which the retiree has a 
                qualifying service-connected disability rated as total, 
                $325.
                    ``(B) For any month for which the retiree has a 
                qualifying service-connected disability rated as 90 
                percent, $225.
                    ``(C) For any month for which the retiree has a 
                qualifying service-connected disability rated as 80 
                percent, $125.
                    ``(D) For any month for which the retiree has a 
                qualifying service-connected disability rated as 70 
                percent, $100.
                    ``(E) For any month for which the retiree has a 
                qualifying service-connected disability rated as 60 
                percent, $50.
            ``(3) For payments for months after September 2004, the 
        following:
                    ``(A) For any month for which the retiree has a 
                qualifying service-connected disability rated as total, 
                $350.
                    ``(B) For any month for which the retiree has a 
                qualifying service-connected disability rated as 90 
                percent, $250.
                    ``(C) For any month for which the retiree has a 
                qualifying service-connected disability rated as 80 
                percent, $150.
                    ``(D) For any month for which the retiree has a 
                qualifying service-connected disability rated as 70 
                percent, $125.
                    ``(E) For any month for which the retiree has a 
                qualifying service-connected disability rated as 60 
                percent, $50.''.

    (2) Subsection (d)(2) of such section is amended by striking ``70 
percent'' and inserting ``60 percent''.
    (3) <<NOTE: Effective date. 10 USC 1413 note.>> The amendments made 
by this subsection shall take effect on February 1, 2002.
SEC. 642. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING SPOUSES OF 
                        MEMBERS WHO DIE WHILE ON ACTIVE DUTY AND 
                        NOT ELIGIBLE FOR RETIREMENT.

    (a) Surviving Spouse Annuity.--Paragraph (1) of section 1448(d) of 
title 10, United States Code, is amended to read as follows:
            ``(1) Surviving spouse annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the surviving 
        spouse of--
                    ``(A) a member who dies while on active duty after--
                          ``(i) becoming eligible to receive retired 
                      pay;
                          ``(ii) qualifying for retired pay except that 
                      the member has not applied for or been granted 
                      that pay; or

[[Page 115 STAT. 1152]]

                          ``(iii) completing 20 years of active service 
                      but before the member is eligible to retire as a 
                      commissioned officer because the member has not 
                      completed 10 years of active commissioned service; 
                      or
                    ``(B) a member not described in subparagraph (A) who 
                dies in line of duty while on active duty.''.

    (b) Computation of Annuity.--Section 1451(c)(1) of such title is 
amended--
            (1) in subparagraph (A)--
                    (A) by striking ``based upon his years of active 
                service when he died.'' and inserting ``when he died 
                determined as follows:
                          ``(i) In the case of an annuity provided under 
                      section 1448(d) of this title (other than in a 
                      case covered by clause (ii)), such retired pay 
                      shall be computed as if the member had been 
                      retired under section 1201 of this title on the 
                      date of the member's death with a disability rated 
                      as total.
                          ``(ii) In the case of an annuity provided 
                      under section 1448(d)(1)(A) of this title by 
                      reason of the death of a member not in line of 
                      duty, such retired pay shall be computed based 
                      upon the member's years of active service when he 
                      died.
                          ``(iii) In the case of an annuity provided 
                      under section 1448(f) of this title, such retired 
                      pay shall be computed based upon the member or 
                      former member's years of active service when he 
                      died computed under section 12733 of this 
                      title.''; and
            (2) in subparagraph (B)(i), by striking ``if the member or 
        former member'' and all that follows and inserting ``as 
        determined under subparagraph (A).''.

    (c) Conforming Amendments.--(1) The heading for subsection (d) of 
section 1448 of such title is amended by striking ``Retirement-
Eligible''.
    (2) Subsection (c)(3) of section 1451 of such title is amended by 
striking ``1448(d)(1)(B) or 1448(d)(1)(C)'' and inserting ``clause (ii) 
or (iii) of section 1448(d)(1)(A)''.
    (d) Effective <<NOTE: Applicability. 10 USC 1448 note.>> Date.--The 
amendments made by this section shall take effect as of September 10, 
2001, and shall apply with respect to deaths of members of the Armed 
Forces occurring on or after that date.

                        Subtitle E--Other Matters

SEC. 651. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60 DAYS ACCRUED BY 
                        MEMBERS OF RESERVE COMPONENTS ON ACTIVE 
                        DUTY FOR ONE YEAR OR LESS.

    (a) Eligibility.--Section 501(b)(5) of title 37, United States Code, 
is amended by--
            (1) striking ``or'' at the end of subparagraph (B);
            (2) striking the period at the end of subparagraph (C) and 
        inserting ``; or''; and
            (3) adding at the end the following new subparagraph:
            ``(D) by a member of a reserve component while serving on 
        active duty, full-time National Guard duty, or active duty

[[Page 115 STAT. 1153]]

        for training for a period of more than 30 days but not in excess 
        of 365 days.''.

    (b) Application <<NOTE: 37 USC 501 note.>> of Amendment.--
Subparagraph (D) of section 501(b)(5) of title 37, United States Code, 
as added by subsection (a)(3), shall apply with respect to periods of 
active duty beginning on or after October 1, 2001.
SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES 
                        OF MEMBERS OF THE ARMED FORCES.

    (a) Authority.--During fiscal year 2002, the Secretary of Defense 
may provide assistance for families of members of the Armed Forces 
serving on active duty in order to ensure that the children of such 
members obtain needed child care, education, and other youth services.
    (b) Primary Purpose of Assistance.--The assistance authorized by 
this section should be directed primarily toward providing needed family 
support, including child care, education, and other youth services, for 
children of members of the Armed Forces who are deployed, assigned to 
duty, or ordered to active duty in connection with the contingency 
operation known as Operation Enduring Freedom.
SEC. 653. AUTHORIZATION OF TRANSITIONAL COMPENSATION AND 
                        COMMISSARY AND EXCHANGE BENEFITS FOR 
                        DEPENDENTS OF COMMISSIONED OFFICERS OF THE 
                        PUBLIC HEALTH SERVICE AND THE NATIONAL 
                        OCEANIC AND ATMOSPHERIC ADMINISTRATION WHO 
                        ARE SEPARATED FOR DEPENDENT ABUSE.

    (a) Commissioned Officers of the Public Health Service.--Section 
221(a) of the Public Health Service Act (42 U.S.C. 213a(a)) is amended 
by adding at the end the following new paragraph:
            ``(17) Section 1059, Transitional compensation and 
        commissary and exchange benefits for dependents of members 
        separated for dependent abuse.''.

    (b) Commissioned Officers of the National Oceanic and Atmospheric 
Administration.--Section 3(a) of the Act entitled ``An Act to revise, 
codify, and enact into law, title 10 of the United States Code, entitled 
`Armed Forces', and title 32 of the United States Code, entitled 
`National Guard' '', approved August 10, 1956 (33 U.S.C. 857a(a)), is 
amended by adding at the end the following new paragraph:
            ``(17) Section 1059, Transitional compensation and 
        commissary and exchange benefits for dependents of members 
        separated for dependent abuse.''.
SEC. 654. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE UNDER 
                        MONTGOMERY GI BILL BY MEMBERS OF THE ARMED 
                        FORCES WITH CRITICAL MILITARY SKILLS.

    (a) Authority To Transfer to Family Members.--(1) Subchapter II of 
chapter 30 of title 38, United States Code, is amended by adding at the 
end the following new section:
``Sec. 3020. Transfer of entitlement to basic educational 
                    assistance: members of the Armed Forces with 
                    critical military skills

    ``(a) In General.--Subject to the provisions of this section, each 
Secretary concerned may, for the purpose of enhancing recruitment and 
retention of members of the Armed Forces with critical

[[Page 115 STAT. 1154]]

military skills and at such Secretary's sole discretion, permit an 
individual described in subsection (b) who is entitled to basic 
educational assistance under this subchapter to elect to transfer to one 
or more of the dependents specified in subsection (c) a portion of such 
individual's entitlement to such assistance, subject to the limitation 
under subsection (d).
    ``(b) Eligible Individuals.--An individual referred to in subsection 
(a) is any member of the Armed Forces who, at the time of the approval 
by the Secretary concerned of the member's request to transfer 
entitlement to basic educational assistance under this section--
            ``(1) has completed six years of service in the Armed 
        Forces;
            ``(2) either--
                    ``(A) has a critical military skill designated by 
                the Secretary concerned for purposes of this section; or
                    ``(B) is in a military specialty designated by the 
                Secretary concerned for purposes of this section as 
                requiring critical military skills; and
            ``(3) enters into an agreement to serve at least four more 
        years as a member of the Armed Forces.

    ``(c) Eligible Dependents.--An individual approved to transfer an 
entitlement to basic educational assistance under this section may 
transfer the individual's entitlement as follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in 
        paragraphs (1) and (2).

    ``(d) Limitation on Months of Transfer.--The total number of months 
of entitlement transferred by an individual under this section may not 
exceed 18 months.
    ``(e) Designation of Transferee.--An individual transferring an 
entitlement to basic educational assistance under this section shall--
            ``(1) designate the dependent or dependents to whom such 
        entitlement is being transferred;
            ``(2) designate the number of months of such entitlement to 
        be transferred to each such dependent; and
            ``(3) specify the period for which the transfer shall be 
        effective for each dependent designated under paragraph (1).

    ``(f) Time for Transfer; Revocation and Modification.--(1) Subject 
to the time limitation for use of entitlement under section 3031 of this 
title, an individual approved to transfer entitlement to basic 
educational assistance under this section may transfer such entitlement 
at any time after the approval of the individual's request to transfer 
such entitlement without regard to whether the individual is a member of 
the Armed Forces when the transfer is executed.
    ``(2)(A) An individual transferring entitlement under this section 
may modify or revoke at any time the transfer of any unused portion of 
the entitlement so transferred.
    ``(B) <<NOTE: Notice.>> The modification or revocation of the 
transfer of entitlement under this paragraph shall be made by the 
submittal of written notice of the action to both the Secretary 
concerned and the Secretary of Veterans Affairs.

[[Page 115 STAT. 1155]]

    ``(g) Commencement of Use.--A dependent to whom entitlement to basic 
educational assistance is transferred under this section may not 
commence the use of the transferred entitlement until--
            ``(1) in the case of entitlement transferred to a spouse, 
        the completion by the individual making the transfer of six 
        years of service in the Armed Forces; or
            ``(2) in the case of entitlement transferred to a child, 
        both--
                    ``(A) the completion by the individual making the 
                transfer of 10 years of service in the Armed Forces; and
                    ``(B) either--
                          ``(i) the completion by the child of the 
                      requirements of a secondary school diploma (or 
                      equivalency certificate); or
                          ``(ii) the attainment by the child of 18 years 
                      of age.

    ``(h) Additional Administrative Matters.--(1) The use of any 
entitlement to basic educational assistance transferred under this 
section shall be charged against the entitlement of the individual 
making the transfer at the rate of one month for each month of 
transferred entitlement that is used.
    ``(2) Except as provided under subsection (e)(2) and subject to 
paragraphs (4) and (5), a dependent to whom entitlement is transferred 
under this section is entitled to basic educational assistance under 
this subchapter in the same manner and at the same rate as the 
individual from whom the entitlement was transferred.
    ``(3) The death of an individual transferring an entitlement under 
this section shall not affect the use of the entitlement by the 
dependent to whom the entitlement is transferred.
    ``(4) Notwithstanding section 3031 of this title, a child to whom 
entitlement is transferred under this section may not use any 
entitlement so transferred after attaining the age of 26 years.
    ``(5) The administrative provisions of this chapter (including the 
provisions set forth in section 3034(a)(1) of this title) shall apply to 
the use of entitlement transferred under this section, except that the 
dependent to whom the entitlement is transferred shall be treated as the 
eligible veteran for purposes of such provisions.
    ``(6) The purposes for which a dependent to whom entitlement is 
transferred under this section may use such entitlement shall include 
the pursuit and completion of the requirements of a secondary school 
diploma (or equivalency certificate).
    ``(i) Overpayment.--(1) In the event of an overpayment of basic 
educational assistance with respect to a dependent to whom entitlement 
is transferred under this section, the dependent and the individual 
making the transfer shall be jointly and severally liable to the United 
States for the amount of the overpayment for purposes of section 3685 of 
this title.
    ``(2) Except as provided in paragraph (3), if an individual 
transferring entitlement under this section fails to complete the 
service agreed to by the individual under subsection (b)(3) in 
accordance with the terms of the agreement of the individual under that 
subsection, the amount of any transferred entitlement under this section 
that is used by a dependent of the individual as of the date of such 
failure shall be treated as an overpayment of basic educational 
assistance under paragraph (1).

[[Page 115 STAT. 1156]]

    ``(3) Paragraph (2) shall not apply in the case of an individual who 
fails to complete service agreed to by the individual--
            ``(A) by reason of the death of the individual; or
            ``(B) for a reason referred to in section 
        3011(a)(1)(A)(ii)(I) of this title.

    ``(j) Approvals of Transfer Subject to Availability of 
Appropriations.--The Secretary concerned may approve transfers of 
entitlement to basic educational assistance under this section in a 
fiscal year only to the extent that appropriations for military 
personnel are available in that fiscal year for purposes of making 
deposits in the Department of Defense Education Benefits Fund under 
section 2006 of title 10 in that fiscal year to cover the present value 
of future benefits payable from the Fund for the Department of Defense 
portion of payments of basic educational assistance attributable to 
increased usage of benefits as a result of such transfers of entitlement 
in that fiscal year.
    ``(k) Regulations.--The Secretary of Defense shall prescribe 
regulations for purposes of this section. Such regulations shall specify 
the manner and effect of an election to modify or revoke a transfer of 
entitlement under subsection (f)(2) and shall specify the manner of the 
applicability of the administrative provisions referred to in subsection 
(h)(5) to a dependent to whom entitlement is transferred under this 
section.
    ``(l) Annual <<NOTE: Deadline.>> Report.--(1) Not later than January 
31 each year (beginning in 2003), the Secretary of Defense shall submit 
to the Committees on Armed Services and the Committees on Veterans' 
Affairs of the Senate and House of Representatives a report on the 
transfers of entitlement to basic educational assistance under this 
section that were approved by each Secretary concerned during the 
preceding fiscal year.

    ``(2) Each report shall set forth--
            ``(A) the number of transfers of entitlement under this 
        section that were approved by such Secretary during the 
        preceding fiscal year; or
            ``(B) if no transfers of entitlement under this section were 
        approved by such Secretary during that fiscal year, a 
        justification for such Secretary's decision not to approve any 
        such transfers of entitlement during that fiscal year.

    ``(m) Secretary Concerned Defined.--Notwithstanding section 101(25) 
of this title, in this section, the term `Secretary concerned' means--
            ``(1) the Secretary of the Army with respect to matters 
        concerning the Army;
            ``(2) the Secretary of the Navy with respect to matters 
        concerning the Navy or the Marine Corps;
            ``(3) the Secretary of the Air Force with respect to matters 
        concerning the Air Force; and
            ``(4) the Secretary of Defense with respect to matters 
        concerning the Coast Guard, or the Secretary of Transportation 
        when it is not operating as a service in the Navy.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3019 the 
following new item:
``3020. Transfer of entitlement to basic educational assistance: members 
            of the Armed Forces with critical military skills.''.


[[Page 115 STAT. 1157]]



    (b) Treatment Under Department of Defense Education Benefits Fund.--
Section 2006(b)(2) of title 10, United States Code, is amended by adding 
at the end the following new subparagraph:
                    ``(D) The present value of future benefits payable 
                from the Fund for the Department of Defense portion of 
                payments of educational assistance under subchapter II 
                of chapter 30 of title 38 attributable to increased 
                usage of benefits as a result of transfers of 
                entitlement to basic educational assistance under 
                section 3020 of that title during such period.''.

    (c) Plan <<NOTE: Deadline. Reports.>> for Implementation.--Not later 
than June 30, 2002, the Secretary of Defense shall submit to Congress a 
report describing the manner in which the Secretaries of the military 
departments and the Secretary of Transportation propose to exercise the 
authority granted by section 3020 of title 38, United States Code, as 
added by subsection (a). The report shall include the regulations 
prescribed under subsection (k) of that section for purposes of the 
exercise of the authority.

    (d) Funding for Fiscal Year 2002.--Of the amount authorized to be 
appropriated to the Department of Defense for military personnel for 
fiscal year 2002 by section 421, $30,000,000 may be available in fiscal 
year 2002 for deposit into the Department of Defense Education Benefits 
Fund under section 2006 of title 10, United States Code, for purposes of 
covering payments of amounts under subparagraph (D) of section 
2006(b)(2) of such title (as added by subsection (b)), as a result of 
transfers of entitlement to basic educational assistance under section 
3020 of title 38, United States Code (as added by subsection (a)).

                    TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. Sub-acute and long-term care program reform.
Sec. 702. Prosthetics and hearing aids.
Sec. 703. Durable medical equipment.
Sec. 704. Rehabilitative therapy.
Sec. 705. Report on mental health benefits.
Sec. 706. Clarification of eligibility for reimbursement of travel 
           expenses of adult accompanying patient in travel for 
           specialty care.
Sec. 707. TRICARE program limitations on payment rates for institutional 
           health care providers and on balance billing by institutional 
           and noninstitutional health care providers.
Sec. 708. Improvements in administration of the TRICARE program.

                     Subtitle B--Senior Health Care

Sec. 711. Clarifications and improvements regarding the Department of 
           Defense Medicare-Eligible Retiree Health Care Fund.

                     Subtitle C--Studies and Reports

Sec. 721. Comptroller General study of health care coverage of members 
           of the reserve components of the Armed Forces and the 
           National Guard.
Sec. 722. Comptroller General study of adequacy and quality of health 
           care provided to women under the defense health program.
Sec. 723. Repeal of obsolete report requirement.
Sec. 724. Comptroller General report on requirement to provide 
           screenings, physical examinations, and other care for certain 
           members.

                        Subtitle D--Other Matters

Sec. 731. Prohibition against requiring military retirees to receive 
           health care solely through the Department of Defense.
Sec. 732. Fees for trauma and other medical care provided to civilians.
Sec. 733. Enhancement of medical product development.

[[Page 115 STAT. 1158]]

Sec. 734. Pilot program providing for Department of Veterans Affairs 
           support in the performance of separation physical 
           examinations.
Sec. 735. Modification of prohibition on requirement of nonavailability 
           statement or preauthorization.
Sec. 736. Transitional health care for members separated from active 
           duty.
Sec. 737. Two-year extension of health care management demonstration 
           program.
Sec. 738. Joint DOD-VA pilot program for providing graduate medical 
           education and training for physicians.

                Subtitle A--TRICARE Program Improvements

SEC. 701. SUB-ACUTE AND LONG-TERM CARE PROGRAM REFORM.

    (a) In General.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074i the following new section:

``Sec. 1074j. Sub-acute care program

    ``(a) Establishment.--The Secretary of Defense shall establish an 
effective, efficient, and integrated sub-acute care benefits program 
under this chapter (hereinafter referred to in this section as the 
`program'). Except as otherwise provided in this section, the types of 
health care authorized under the program shall be the same as those 
provided under section 1079 of this title. <<NOTE: Regulations.>> The 
Secretary, after consultation with the other administering Secretaries, 
shall promulgate regulations to carry out this section.

    ``(b) Benefits.--(1) The program shall include a uniform skilled 
nursing facility benefit that shall be provided in the manner and under 
the conditions described in section 1861 (h) and (i) of the Social 
Security Act (42 U.S.C. 1395x (h) and (i)), except that the limitation 
on the number of days of coverage under section 1812 (a) and (b) of such 
Act (42 U.S.C. 1395d (a) and (b)) shall not be applicable under the 
program. Skilled nursing facility care for each spell of illness shall 
continue to be provided for as long as medically necessary and 
appropriate.
    ``(2) In this subsection:
            ``(A) The term `skilled nursing facility' has the meaning 
        given such term in section 1819(a) of the Social Security Act 
        (42 U.S.C. 1395i-3(a)).
            ``(B) The term `spell of illness' has the meaning given such 
        term in section 1861(a) of such Act (42 U.S.C. 1395x(a)).

    ``(3) The program shall include a comprehensive, part-time or 
intermittent home health care benefit that shall be provided in the 
manner and under the conditions described in section 1861(m) of the 
Social Security Act (42 U.S.C. 1395x(m)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1074i the 
following new item:

``1074j. Sub-acute care program.''.

    (b) Extended Benefits for Disabled Beneficiaries.--Section 1079 of 
title 10, United States Code, is amended by striking subsections (d), 
(e), and (f) and inserting the following new subsections:
    ``(d)(1) The Secretary of Defense shall establish a program to 
provide extended benefits for eligible dependents, which may include the 
provision of comprehensive health care services, including case 
management services, to assist in the reduction of the disabling effects 
of a qualifying condition of an eligible

[[Page 115 STAT. 1159]]

dependent. Registration shall be required to receive the extended 
benefits.
    ``(2) <<NOTE: Regulations.>> The Secretary of Defense, after 
consultation with the other administering Secretaries, shall promulgate 
regulations to carry out this subsection.

    ``(3) In this subsection:
            ``(A) The term `eligible dependent' means a dependent of a 
        member of the uniformed services on active duty for a period of 
        more than 30 days, as described in subparagraph (A), (D), or (I) 
        of section 1072(2) of this title, who has a qualifying 
        condition.
            ``(B) The term `qualifying condition' means the condition of 
        a dependent who is moderately or severely mentally retarded, has 
        a serious physical disability, or has an extraordinary physical 
        or psychological condition.

    ``(e) Extended benefits for eligible dependents under subsection (d) 
may include comprehensive health care services (including services 
necessary to maintain, or minimize or prevent deterioration of, function 
of the patient) and case management services with respect to the 
qualifying condition of such a dependent, and include, to the extent 
such benefits are not provided under provisions of this chapter other 
than under this section, the following:
            ``(1) Diagnosis.
            ``(2) Inpatient, outpatient, and comprehensive home health 
        care supplies and services which may include cost effective and 
        medically appropriate services other than part-time or 
        intermittent services (within the meaning of such terms as used 
        in the second sentence of section 1861(m) of the Social Security 
        Act).
            ``(3) Training, rehabilitation, special education, and 
        assistive technology devices.
            ``(4) Institutional care in private nonprofit, public, and 
        State institutions and facilities and, if appropriate, 
        transportation to and from such institutions and facilities.
            ``(5) Custodial care, notwithstanding the prohibition in 
        section 1077(b)(1) of this title.
            ``(6) Respite care for the primary caregiver of the eligible 
        dependent.
            ``(7) Such other services and supplies as determined 
        appropriate by the Secretary, notwithstanding the limitations in 
        subsection (a)(13).

    ``(f)(1) Members shall be required to share in the cost of any 
benefits provided to their dependents under subsection (d) as follows:
            ``(A) Members in the lowest enlisted pay grade shall be 
        required to pay the first $25 incurred each month, and members 
        in the highest commissioned pay grade shall be required to pay 
        the first $250 incurred each month. <<NOTE: Regulations.>> The 
        amounts to be paid by members in all other pay grades shall be 
        determined under regulations to be prescribed by the Secretary 
        of Defense in consultation with the administering Secretaries.
            ``(B) A member who has more than one dependent incurring 
        expenses in a given month under a plan covered by subsection (d) 
        shall not be required to pay an amount greater than would be 
        required if the member had only one such dependent.

[[Page 115 STAT. 1160]]

    ``(2) In the case of extended benefits provided under paragraph (3) 
or (4) of subsection (e) to a dependent of a member of the uniformed 
services--
            ``(A) the Government's share of the total cost of providing 
        such benefits in any month shall not exceed $2,500, except for 
        costs that a member is exempt from paying under paragraph (3); 
        and
            ``(B) the member shall pay (in addition to any amount 
        payable under paragraph (1)) the amount, if any, by which the 
        amount of such total cost for the month exceeds the Government's 
        maximum share under subparagraph (A).

    ``(3) A member of the uniformed services who incurs expenses under 
paragraph (2) for a month for more than one dependent shall not be 
required to pay for the month under subparagraph (B) of that paragraph 
an amount greater than the amount the member would otherwise be required 
to pay under that subparagraph for the month if the member were 
incurring expenses under that subparagraph for only one dependent.
    ``(4) To qualify for extended benefits under paragraph (3) or (4) of 
subsection (e), a dependent of a member of the uniformed services shall 
be required to use public facilities to the extent such facilities are 
available and adequate, as determined under joint regulations of the 
administering Secretaries.
    ``(5) <<NOTE: Regulations.>> The Secretary of Defense, in 
consultation with the other administering Secretaries, shall prescribe 
regulations to carry out this subsection.''.

    (c) Definitions of Custodial Care and Domiciliary Care.--Section 
1072 of title 10, United States Code, is amended by adding at the end 
the following new paragraphs:
            ``(8) The term `custodial care' means treatment or services, 
        regardless of who recommends such treatment or services or where 
        such treatment or services are provided, that--
                    ``(A) can be rendered safely and reasonably by a 
                person who is not medically skilled; or
                    ``(B) is or are designed mainly to help the patient 
                with the activities of daily living.
            ``(9) The term `domiciliary care' means care provided to a 
        patient in an institution or homelike environment because--
                    ``(A) providing support for the activities of daily 
                living in the home is not available or is unsuitable; or
                    ``(B) members of the patient's family are unwilling 
                to provide the care.''.

    (d) Continuation <<NOTE: 10 USC 1079 note.>> of Individual Case 
Management Services for Certain Eligible Beneficiaries.--(1) 
Notwithstanding the termination of the Individual Case Management 
Program by subsection (g), the Secretary of Defense shall, in any case 
in which the Secretary makes the determination described in paragraph 
(2), continue to provide payment as if such program were in effect for 
home health care or custodial care services provided to an eligible 
beneficiary that would otherwise be excluded from coverage under 
regulations implementing chapter 55 of title 10, United States Code.

    (2) The determination referred to in paragraph (1) is a 
determination that discontinuation of payment for services not otherwise 
provided under such chapter would result in the provision of services 
inadequate to meet the needs of the eligible beneficiary and would be 
unjust to such beneficiary.

[[Page 115 STAT. 1161]]

    (3) For purposes of this subsection, ``eligible beneficiary'' means 
a covered beneficiary (as that term is defined in section 1072 of title 
10, United States Code) who, before the effective date of this section, 
was provided custodial care services under the Individual Case 
Management Program for which the Secretary provided payment.
    (e) Report <<NOTE: Deadline.>> on Initiatives Regarding Long-Term 
Care.--The Secretary of Defense shall, not later than April 1, 2002, 
submit to Congress a report on the feasibility and desirability of 
establishing new initiatives, taking into account chapter 90 of title 5, 
United States Code, to improve the availability of long-term care for 
members and retired members of the uniformed services and their 
families.

    (f) Reference in Title 10 to Long-Term Care Program in Title 5.--(1) 
Chapter 55 of title 10, United States Code, is amended by inserting 
after section 1074j (as added by subsection (a)) the following new 
section:

``Sec. 1074k. Long-term care insurance

    ``Provisions regarding long-term care insurance for members and 
certain former members of the uniformed services and their families are 
set forth in chapter 90 of title 5.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1074j (as added 
by subsection (a)) the following new item:

``1074k. Long-term care insurance.''.

    (g) Conforming Amendments.--(1) The following provisions of law are 
repealed:
            (A) Section 703 of the National Defense Authorization Act 
        for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 682; 10 
        U.S.C. 1077 note).
            (B) Section 8118 of the Department of Defense Appropriations 
        Act, 2000 (Public Law 106-79; 113 Stat. 1260).
            (C) Section 8100 of the Department of Defense Appropriations 
        Act, 2001 (Public Law 106-259; 114 Stat. 696).

    (2) Section 1079 of title 10, United States Code, is amended in 
subsection (a) by striking paragraph (17).

SEC. 702. PROSTHETICS AND HEARING AIDS.

    Section 1077 of title 10, United States Code, is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(16) A hearing aid, but only for a dependent of a member 
        of the uniformed services on active duty and only if the 
        dependent has a profound hearing loss, as determined under 
        standards prescribed in regulations by the Secretary of Defense 
        in consultation with the administering Secretaries.'';
            (2) in subsection (b)(2), by striking ``Hearing aids, 
        orthopedic footwear,'' and inserting ``Orthopedic footwear''; 
        and
            (3) by adding at the end the following new subsection:

    ``(e)(1) Authority to provide a prosthetic device under subsection 
(a)(15) includes authority to provide the following:
            ``(A) Any accessory or item of supply that is used in 
        conjunction with the device for the purpose of achieving 
        therapeutic benefit and proper functioning.
            ``(B) Services necessary to train the recipient of the 
        device in the use of the device.

[[Page 115 STAT. 1162]]

            ``(C) Repair of the device for normal wear and tear or 
        damage.
            ``(D) Replacement of the device if the device is lost or 
        irreparably damaged or the cost of repair would exceed 60 
        percent of the cost of replacement.

    ``(2) An augmentative communication device may be provided as a 
voice prosthesis under subsection (a)(15).
    ``(3) A prosthetic device customized for a patient may be provided 
under this section only by a prosthetic practitioner who is qualified to 
customize the device, as determined under regulations prescribed by the 
Secretary of Defense in consultation with the administering 
Secretaries.''.

SEC. 703. DURABLE MEDICAL EQUIPMENT.

    (a) Items Authorized.--Section 1077 of title 10, United States Code, 
as amended by section 702, is further amended--
            (1) in subsection (a)(12), by striking ``such as 
        wheelchairs, iron lungs, and hospital beds'' and inserting 
        ``which''; and
            (2) by adding at the end the following new subsection:

    ``(f)(1) Items that may be provided to a patient under subsection 
(a)(12) include the following:
            ``(A) Any durable medical equipment that can improve, 
        restore, or maintain the function of a malformed, diseased, or 
        injured body part, or can otherwise minimize or prevent the 
        deterioration of the patient's function or condition.
            ``(B) Any durable medical equipment that can maximize the 
        patient's function consistent with the patient's physiological 
        or medical needs.
            ``(C) Wheelchairs.
            ``(D) Iron lungs.
            ``(E) Hospital beds.

    ``(2) In addition to the authority to provide durable medical 
equipment under subsection (a)(12), any customization of equipment owned 
by the patient that is durable medical equipment authorized to be 
provided to the patient under this section or section 1079(a)(5) of this 
title, and any accessory or item of supply for any such equipment, may 
be provided to the patient if the customization, accessory, or item of 
supply is essential for--
            ``(A) achieving therapeutic benefit for the patient;
            ``(B) making the equipment serviceable; or
            ``(C) otherwise assuring the proper functioning of the 
        equipment.''.

    (b) Provision of Items on Rental Basis.--Paragraph (5) of section 
1079(a) of such title is amended to read as follows:
            ``(5) Durable equipment provided under this section may be 
        provided on a rental basis.''.

SEC. 704. REHABILITATIVE THERAPY.

    Section 1077(a) of title 10, United States Code, as amended by 
sections 702 and 703, is further amended by inserting after paragraph 
(16) the following new paragraph:
            ``(17) Any rehabilitative therapy to improve, restore, or 
        maintain function, or to minimize or prevent deterioration of 
        function, of a patient when prescribed by a physician.''.

SEC. 705. REPORT ON MENTAL HEALTH BENEFITS.

    (a) Requirement for Study.--The Secretary of Defense shall carry out 
a study to determine the adequacy of the scope and

[[Page 115 STAT. 1163]]

availability of outpatient mental health benefits provided for members 
of the Armed Forces and covered beneficiaries under the TRICARE program.
    (b) Report.--Not <<NOTE: Deadline.>> later than March 31, 2002, the 
Secretary shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the study, including the 
conclusions and any recommendations for legislation that the Secretary 
considers appropriate.
SEC. 706. CLARIFICATION OF ELIGIBILITY FOR REIMBURSEMENT OF TRAVEL 
                        EXPENSES OF ADULT ACCOMPANYING PATIENT IN 
                        TRAVEL FOR SPECIALTY CARE.

    Section 1074i of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``and, when 
accompaniment by an adult is necessary, for a parent or guardian of the 
covered beneficiary or another member of the covered beneficiary's 
family who is at least 21 years of age''.
SEC. 707. TRICARE PROGRAM LIMITATIONS ON PAYMENT RATES FOR 
                        INSTITUTIONAL HEALTH CARE PROVIDERS AND ON 
                        BALANCE BILLING BY INSTITUTIONAL AND 
                        NONINSTITUTIONAL HEALTH CARE PROVIDERS.

    (a) Institutional Providers.--Section 1079(j) of title 10, United 
States Code, is amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``(A)''; and
                    (B) by striking ``may be determined under joint 
                regulations'' and inserting ``shall be determined under 
                joint regulations'';
            (2) by redesignating subparagraph (B) of paragraph (2) as 
        paragraph (4), and, in such paragraph, as so redesignated, by 
        striking ``subparagraph (A),'' and inserting ``this 
        subsection,''; and
            (3) by inserting before paragraph (4), as redesignated by 
        paragraph (2), the following new paragraph (3):

    ``(3) A contract for a plan covered by this section shall include a 
clause that prohibits each provider of services under the plan from 
billing any person covered by the plan for any balance of charges for 
services in excess of the amount paid for those services under the joint 
regulations referred to in paragraph (2), except for any unpaid amounts 
of deductibles or copayments that are payable directly to the provider 
by the person.''.
    (b) Noninstitutional Providers.--Section 1079(h)(4) of such title is 
amended--
            (1) by inserting ``(A)'' after ``(4)''; and
            (2) by adding at the end the following new subparagraph:

    ``(B) <<NOTE: Regulations.>> The regulations shall include a 
restriction that prohibits an individual health care professional (or 
other noninstitutional health care provider) from billing a beneficiary 
for services for more than the amount that is equal to--
            ``(i) the excess of the limiting charge (as defined in 
        section 1848(g)(2) of the Social Security Act (42 U.S.C. 1395w-
        4(g)(2))) that would be applicable if the services had been 
        provided by the professional (or other provider) as an 
        individual health care professional (or other noninstitutional 
        health care provider) on a nonassignment-related basis under 
        part B of title XVIII of such Act over the amount that is 
        payable by the United States for those services under this 
        subsection, plus

[[Page 115 STAT. 1164]]

            ``(ii) any unpaid amounts of deductibles or copayments that 
        are payable directly to the professional (or other provider) by 
        the beneficiary.''.

    (c) Effective <<NOTE: 10 USC 1079 note.>> Date.--The amendments made 
by this section shall take effect on the date that is 90 days after the 
date of the enactment of this Act.
SEC. 708. IMPROVEMENTS IN ADMINISTRATION OF THE TRICARE PROGRAM.

    (a) Flexibility <<NOTE: 10 USC 1072 note.>> in Contracting.--(1) 
During the one-year period following the date of the enactment of this 
Act, section 1072(7) of title 10, United States Code, shall be deemed to 
be amended by striking ``the competitive selection of contractors to 
financially underwrite''.

    (2) The terms and conditions of any contract to provide health care 
services under the TRICARE program entered into during the period 
described in paragraph (1) shall not be considered to be modified or 
terminated as a result of the termination of such period.
    (b) Reduction of Contract Start-Up Time.--Section 1095c(b) of such 
title is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The'' and inserting ``Except as 
                provided in paragraph (3), the''; and
                    (B) by striking ``contract.'' and all that follows 
                through ``as soon as practicable after the award of 
                the''; and
            (2) by adding at the end the following new paragraph:

    ``(3) The Secretary may reduce the nine-month start-up period 
required under paragraph (1) if--
            ``(A) the Secretary--
                    ``(i) determines that a shorter period is sufficient 
                to ensure effective implementation of all contract 
                requirements; and
                    ``(ii) submits notification to the Committees on 
                Armed Services of the House of Representatives and the 
                Senate of the Secretary's intent to reduce the nine-
                month start-up period; and
            ``(B) 60 days have elapsed since the date of such 
        notification.''.

                     Subtitle B--Senior Health Care

SEC. 711. CLARIFICATIONS AND IMPROVEMENTS REGARDING THE DEPARTMENT 
                        OF DEFENSE MEDICARE-ELIGIBLE RETIREE 
                        HEALTH CARE FUND.

    (a) Clarification Regarding Coverage.--Subsection (b) of section 
1111 of title 10, United States Code, is amended to read as follows:
    ``(b) In this chapter:
            ``(1) The term `uniformed services retiree health care 
        programs' means the provisions of this title or any other 
        provision of law creating an entitlement to or eligibility for 
        health care for a member or former member of a participating 
        uniformed service who is entitled to retired or retainer pay, 
        and an eligible dependent under such program.

[[Page 115 STAT. 1165]]

            ``(2) The term `eligible dependent' means a dependent 
        described in section 1076(a)(2) (other than a dependent of a 
        member on active duty), 1076(b), 1086(c)(2), or 1086(c)(3) of 
        this title.
            ``(3) The term `medicare-eligible', with respect to any 
        person, means entitled to benefits under part A of title XVIII 
        of the Social Security Act (42 U.S.C. 1395c et seq.).
            ``(4) The term `participating uniformed service' means the 
        Army, Navy, Air Force, and Marine Corps, and any other uniformed 
        service that is covered by an agreement entered into under 
        subsection (c).''.

    (b) Participation of Other Uniformed Services.--(1) Section 1111 of 
such title is further amended by adding at the end the following new 
subsection:
    ``(c) The Secretary of Defense may enter into an agreement with any 
other administering Secretary (as defined in section 1072(3) of this 
title) for participation in the Fund by a uniformed service under the 
jurisdiction of that Secretary. Any such agreement shall require that 
Secretary to determine contributions to the Fund on behalf of the 
members of the uniformed service under the jurisdiction of that 
Secretary in a manner comparable to the determination with respect to 
contributions to the Fund made by the Secretary of Defense under section 
1116 of this title, and such administering Secretary may make such 
contributions.''.
    (2) Section 1112 of such title is amended by adding at the end the 
following new paragraph:
            ``(4) Amounts paid into the Fund pursuant to section 1111(c) 
        of this title.''.

    (3) Section 1115 of such title is amended--
            (A) in subsection (a), by inserting ``participating'' before 
        ``uniformed services'';
            (B) in subparagraphs (A)(ii) and (B)(ii) of subsection 
        (b)(1), by inserting ``under the jurisdiction of the Secretary 
        of Defense'' after ``uniformed services'';
            (C) in subsection (b)(2), by inserting ``(or to the other 
        executive department having jurisdiction over the participating 
        uniformed service)'' after ``Department of Defense''; and
            (D) in subparagraphs (A) and (B) of subsection (c)(1), by 
        inserting ``participating'' before ``uniformed services''.

    (4) Section 1116(a) of such title is amended in paragraphs (1)(B) 
and (2)(B) by inserting ``under the jurisdiction of the Secretary of 
Defense'' after ``uniformed services''.
    (c) Clarification of Payments From the Fund.--(1) Subsection (a) of 
section 1113 of such title is amended to read as follows:
    ``(a) There shall be paid from the Fund amounts payable for the 
costs of all uniformed service retiree health care programs for the 
benefit of members or former members of a participating uniformed 
service who are entitled to retired or retainer pay and are medicare 
eligible, and eligible dependents who are medicare eligible.''.
    (2) Such section is further amended by adding at the end the 
following new subsections:
    ``(c)(1) In carrying out subsection (a), the Secretary of Defense 
may transfer periodically from the Fund to applicable appropriations of 
the Department of Defense, or to applicable appropriations of other 
departments or agencies, such amounts as the Secretary

[[Page 115 STAT. 1166]]

determines necessary to cover the costs chargeable to those 
appropriations for uniformed service retiree health care programs for 
beneficiaries under those programs who are medicare-eligible. Such 
transfers may include amounts necessary for the administration of such 
programs. Amounts so transferred shall be merged with and be available 
for the same purposes and for the same time period as the appropriation 
to which transferred. Upon a determination that all or part of the funds 
transferred from the Fund are not necessary for the purposes for which 
transferred, such amounts may be transferred back to the Fund. This 
transfer authority is in addition to any other transfer authority that 
may be available to the Secretary.
    ``(2) A transfer from the Fund under paragraph (1) may not be made 
to an appropriation after the end of the second fiscal year after the 
fiscal year that the appropriation is available for obligation. A 
transfer back to the Fund under paragraph (1) may not be made after the 
end of the second fiscal year after the fiscal year for which the 
appropriation to which the funds were originally transferred is 
available for obligation.
    ``(d) <<NOTE: Regulations.>> The Secretary of Defense shall by 
regulation establish the method or methods for calculating amounts to be 
transferred under subsection (c). Such method or methods may be based 
(in whole or in part) on a proportionate share of the volume (measured 
as the Secretary determines appropriate) of health care services 
provided or paid for under uniformed service retiree health care 
programs for beneficiaries under those programs who are medicare-
eligible in relation to the total volume of health care services 
provided or paid for under Department of Defense health care programs.

    ``(e) <<NOTE: Deadlines.>> The regulations prescribed by the 
Secretary under subsection (d) shall be provided to the Comptroller 
General not less than 60 days before such regulations become 
effective. <<NOTE: Reports.>> The Comptroller General shall, not later 
than 30 days after receiving such regulations, report to the Secretary 
of Defense and Congress on the adequacy and appropriateness of the 
regulations.

    ``(f) If the Secretary of Defense enters into an agreement with 
another administering Secretary pursuant to section 1111(c), the 
Secretary of Defense may take the actions described in subsections (c), 
(d), and (e) on behalf of the beneficiaries and programs of the other 
participating uniformed service.''.
    (d) Source of Funds for Monthly Accrual Payments Into the Fund.--
Section 1116 of such title is further amended--
            (1) in subsection (a)(2)(B) (as amended by subsection 
        (b)(4)), by striking the sentence beginning ``Amounts paid 
        into''; and
            (2) by adding at the end the following new subsection:

    ``(c) Amounts paid into the Fund under subsection (a) shall be paid 
from funds available for the health care programs of the participating 
uniformed services under the jurisdiction of the respective 
administering Secretaries.''.
    (e) Technical Amendments.--(1) Sections 1111(a), 1115(c)(2), 
1116(a)(1)(A), and 1116(a)(2)(A) of such title are amended by striking 
``Department of Defense retiree health care programs'' and inserting 
``uniformed services retiree health care programs''.
    (2) The heading for section 1111 of such title is amended to read as 
follows:

[[Page 115 STAT. 1167]]

``Sec. 1111. Establishment and purpose of Fund; definitions; 
                    authority to enter into agreements''.

    (3) The item relating to section 1111 in the table of sections at 
the beginning of chapter 56 of such title is amended to read as follows:
``1111. Establishment and purpose of Fund; definitions; authority to 
            enter into agreements.''.

    (f) Effective <<NOTE: 10 USC 1111 note.>> Date.--The amendments made 
by this section shall take effect as if included in the enactment of 
chapter 56 of title 10, United States Code, by section 713(a)(1) of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-179).

    (g) First <<NOTE: 10 USC 1116 note.>> Year Contributions.--With 
respect to contributions under section 1116(a) of title 10, United 
States Code, for the first year that the Department of Defense Medicare-
Eligible Retiree Health Care Fund is established under chapter 56 of 
such title, if the Board of Actuaries is unable to execute its 
responsibilities with respect to such section, the Secretary of Defense 
may make contributions under such section using methods and assumptions 
developed by the Secretary.

                     Subtitle C--Studies and Reports

SEC. 721. COMPTROLLER GENERAL STUDY OF HEALTH CARE COVERAGE OF 
                        MEMBERS OF THE RESERVE COMPONENTS OF THE 
                        ARMED FORCES AND THE NATIONAL GUARD.

    (a) Requirement for Study.--The Comptroller General shall carry out 
a study of the needs of members of the reserve components of the Armed 
Forces and the National Guard and their families for health care 
benefits. The study shall include the following:
            (1) An analysis of how members of the reserve components of 
        the Armed Forces and the National Guard currently obtain 
        coverage for health care benefits when not on active duty, 
        together with statistics on enrollments in health care benefits 
        plans, including--
                    (A) the percentage of such members who are not 
                covered by an employer health benefits plan;
                    (B) the percentage of such members who are not 
                covered by an individual health benefits plan; and
                    (C) the percentage of such members who are not 
                covered by any health insurance or other health benefits 
                plan.
            (2) An assessment of the disruptions in health benefits 
        coverage that a mobilization of members of the reserve 
        components of the Armed Forces and the National Guard causes for 
        the members and their families.
            (3) An assessment of the cost and effectiveness of various 
        options for preventing or reducing disruptions described in 
        paragraph (2), including--
                    (A) providing health care benefits to all members of 
                the reserve components of the Armed Forces and the 
                National Guard and their families through the TRICARE 
                program, the Federal Employees Health Benefits Program, 
                or otherwise;

[[Page 115 STAT. 1168]]

                    (B) revising and extending the program of 
                transitional medical and dental care that is provided 
                under section 1074b of title 10, United States Code, for 
                members of the Armed Forces upon release from active 
                duty served in support of a contingency operation;
                    (C) requiring the health benefits plans of such 
                members, including individual health benefits plans and 
                group health benefits plans, to permit such members to 
                elect to resume coverage under such health benefits 
                plans upon release from active duty in support of a 
                contingency operation;
                    (D) allowing members of the reserve components of 
                the Armed Forces and the National Guard to participate 
                in TRICARE Standard using various cost-sharing 
                arrangements;
                    (E) providing employers of members of the reserve 
                components of the Armed Forces and the National Guard 
                with the option of paying the costs of participation in 
                the TRICARE program for such members and their families 
                using various cost-sharing arrangements;
                    (F) providing financial assistance for paying 
                premiums or other subscription charges for continuation 
                of coverage by private sector health insurance or other 
                health benefits plans; and
                    (G) any other options that the Comptroller General 
                determines advisable to consider.

    (b) Report.--Not <<NOTE: Deadline.>> later than May 1, 2002, the 
Comptroller General shall submit to Congress a report describing the 
findings of the study conducted under subsection (a).
SEC. 722. COMPTROLLER GENERAL STUDY OF ADEQUACY AND QUALITY OF 
                        HEALTH CARE PROVIDED TO WOMEN UNDER THE 
                        DEFENSE HEALTH PROGRAM.

    (a) Requirement for Study.--The Comptroller General shall carry out 
a study of the adequacy and quality of the health care provided to women 
under chapter 55 of title 10, United States Code.
    (b) Specific Consideration.--The study shall include an intensive 
review of the availability and quality of reproductive health care 
services.
    (c) Report.--The <<NOTE: Deadline.>> Comptroller General shall 
submit a report on the results of the study to Congress not later than 
May 1, 2002.
SEC. 723. REPEAL OF OBSOLETE REPORT REQUIREMENT.

    Section 701 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 10 U.S.C. 1074g note) is amended by 
striking subsection (d).
SEC. 724. COMPTROLLER GENERAL REPORT ON REQUIREMENT TO PROVIDE 
                        SCREENINGS, PHYSICAL EXAMINATIONS, AND 
                        OTHER CARE FOR CERTAIN MEMBERS.

    (a) Report Required.--The Comptroller General shall prepare a report 
on the advisability, need, and cost effectiveness of the requirements 
under section 1074a(d) of title 10, United States Code, that the 
Secretary of the Army provide medical and dental screenings, physical 
examinations, and certain dental care for early deploying members of the 
Selected Reserve. The report shall include

[[Page 115 STAT. 1169]]

any recommendations for changes to such requirements based on the most 
current information available on the value of periodic physical 
examinations and any role such examinations play in monitoring force and 
individual member pre-deployment and post-deployment health status.
    (b) Deadline for Submission.--The report required by subsection (a) 
shall be provided to the Committees on Armed Services of the Senate and 
the House of Representatives not later than June 1, 2002.

                        Subtitle D--Other Matters

SEC. 731. PROHIBITION AGAINST REQUIRING MILITARY RETIREES TO 
                        RECEIVE HEALTH CARE SOLELY THROUGH THE 
                        DEPARTMENT OF DEFENSE.

    (a) Prohibition.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1086a the following new section:
``Sec. 1086b. Prohibition against requiring retired members to 
                      receive health care solely through the 
                      Department of Defense

    ``The Secretary of Defense may not take any action that would 
require, or have the effect of requiring, a member or former member of 
the armed forces who is entitled to retired or retainer pay to enroll to 
receive health care from the Federal Government only through the 
Department of Defense.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1086a the following new item:
``1086b. Prohibition against requiring retired members to receive health 
              care solely through the Department of Defense.''.
SEC. 732. FEES FOR TRAUMA AND OTHER MEDICAL CARE PROVIDED TO 
                        CIVILIANS.

    (a) Requirement To Implement Procedures.--(1) Chapter 55 of title 
10, United States Code, is amended by inserting after section 1079a the 
following new section:
``Sec. 1079b. Procedures for charging fees for care provided to 
                      civilians; retention and use of fees 
                      collected

    ``(a) Requirement To Implement Procedures.--The Secretary of Defense 
shall implement procedures under which a military medical treatment 
facility may charge civilians who are not covered beneficiaries (or 
their insurers) fees representing the costs, as determined by the 
Secretary, of trauma and other medical care provided to such civilians.
    ``(b) Use of Fees Collected.--A military medical treatment facility 
may retain and use the amounts collected under subsection (a) for--
            ``(1) trauma consortium activities;
            ``(2) administrative, operating, and equipment costs; and
            ``(3) readiness training.''.

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1079a the 
following new item:

[[Page 115 STAT. 1170]]

``1079b. Procedures for charging fees for care provided to civilians; 
              retention and use of fees collected.''.

    (b) Deadline <<NOTE: 10 USC 1079 note.>> for Implementation.--The 
Secretary of Defense shall begin to implement the procedures required by 
section 1079b(a) of title 10, United States Code (as added by subsection 
(a)), not later than one year after the date of the enactment of this 
Act.
SEC. 733. ENHANCEMENT OF MEDICAL PRODUCT DEVELOPMENT.

    Section 980 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``Funds''; and
            (2) by adding at the end the following new subsection:

    ``(b) The Secretary of Defense may waive the prohibition in this 
section with respect to a specific research project to advance the 
development of a medical product necessary to the armed forces if the 
research project may directly benefit the subject and is carried out in 
accordance with all other applicable laws.''.
SEC. 734. PILOT <<NOTE: 10 USC 1071 note.>> PROGRAM PROVIDING FOR 
                        DEPARTMENT OF VETERANS AFFAIRS SUPPORT IN 
                        THE PERFORMANCE OF SEPARATION PHYSICAL 
                        EXAMINATIONS.

    (a) Authority.--The Secretary of Defense and the Secretary of 
Veterans Affairs may jointly carry out a pilot program under which the 
Secretary of Veterans Affairs may perform the physical examinations 
required for members of the uniformed services separating from the 
uniformed services who are in one or more geographic areas designated 
for the pilot program by the Secretaries.
    (b) Reimbursement.--The Secretary of Defense shall reimburse the 
Secretary of Veterans Affairs for the cost incurred by the Secretary of 
Veterans Affairs in performing, under the pilot program, the elements of 
physical examination that are required by the Secretary concerned in 
connection with the separation of a member of a uniformed service. 
Reimbursements shall be paid out of funds available for the performance 
of separation physical examinations of members of that uniformed service 
in facilities of the uniformed services.
    (c) Agreement.--(1) If the Secretary of Defense and the Secretary of 
Veterans Affairs carry out the pilot program authorized by this section, 
the Secretaries shall enter into an agreement specifying the geographic 
areas in which the pilot program is carried out and the means for making 
reimbursement payments under subsection (b).
    (2) The other administering Secretaries shall also enter into the 
agreement to the extent that the Secretary of Defense determines 
necessary to apply the pilot program, including the requirement for 
reimbursement, to the uniformed services not under the jurisdiction of 
the Secretary of a military department.
    (d) Consultation Requirement.--In developing and carrying out the 
pilot program, the Secretary of Defense shall consult with the other 
administering Secretaries.
    (e) Period of Program.--The Secretary of Defense and the Secretary 
of Veterans Affairs may carry out the pilot program under this section 
beginning not later than July 1, 2002, and terminating on December 31, 
2005.

[[Page 115 STAT. 1171]]

    (f) Reports.--(1) <<NOTE: Deadlines.>> If the Secretary of Defense 
and the Secretary of Veterans Affairs carry out the pilot program 
authorized by this section--
            (A) not later than January 31, 2004, the Secretaries shall 
        jointly submit to Congress an interim report on the conduct of 
        the pilot program; and
            (B) not later than March 1, 2005, the Secretaries shall 
        jointly submit to Congress a final report on the conduct of the 
        pilot program.

    (2) Reports under this subsection shall include the Secretaries' 
assessment, as of the date of the report, of the efficacy of the 
performance of separation physical examinations as provided for under 
the pilot program.
    (g) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given that term in section 1072(3) of title 10, United States 
        Code.
            (2) The term ``Secretary concerned'' has the meaning given 
        that term in section 101(5) of title 37, United States Code.
SEC. 735. MODIFICATION OF PROHIBITION ON REQUIREMENT OF 
                        NONAVAILABILITY STATEMENT OR 
                        PREAUTHORIZATION.

    (a) Clarification of Covered Beneficiaries.--Subsection (a) of 
section 721 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 
Stat. 1654A-184) <<NOTE: 10 USC 1073 note.>> is amended by striking 
``covered beneficiary under chapter 55 of title 10, United States Code, 
who is enrolled in TRICARE Standard,'' and inserting ``covered 
beneficiary under TRICARE Standard pursuant to chapter 55 of title 10, 
United States Code,''.

    (b) Repeal of Requirement for Notification Regarding Health Care 
Received From Another Source.--Subsection (b) of such section is 
repealed.
    (c) Waiver Authority.--Such section, as so amended, is further 
amended by striking subsection (c) and inserting the following new 
subsections:
    ``(b) Waiver Authority.--The Secretary may waive the prohibition in 
subsection (a) if--
            ``(1) the Secretary--
                    ``(A) demonstrates that significant costs would be 
                avoided by performing specific procedures at the 
                affected military medical treatment facility or 
                facilities;
                    ``(B) determines that a specific procedure must be 
                provided at the affected military medical treatment 
                facility or facilities to ensure the proficiency levels 
                of the practitioners at the facility or facilities; or
                    ``(C) determines that the lack of nonavailability 
                statement data would significantly interfere with 
                TRICARE contract administration;
            ``(2) the Secretary provides notification of the Secretary's 
        intent to grant a waiver under this subsection to covered 
        beneficiaries who receive care at the military medical treatment 
        facility or facilities that will be affected by the decision to 
        grant a waiver under this subsection;
            ``(3) the Secretary notifies the Committees on Armed 
        Services of the House of Representatives and the Senate of the 
        Secretary's intent to grant a waiver under this subsection,

[[Page 115 STAT. 1172]]

        the reason for the waiver, and the date that a nonavailability 
        statement will be required; and
            ``(4) 60 days have elapsed since the date of the 
        notification described in paragraph (3).

    ``(c) Waiver Exception for Maternity Care.--Subsection (b) shall not 
apply with respect to maternity care.''.
    (d) Effective Date.--(1) Subsection (a) of such section is amended 
by striking ``under any new contract for the provision of health care 
services''.
    (2) Subsection (d) of such section is amended by striking ``take 
effect on October 1, 2001.'' and inserting ``take effect on the earlier 
of the following:
            ``(1) The date that a new contract entered into by the 
        Secretary to provide health care services under TRICARE Standard 
        takes effect.
            ``(2) The date that is two years after the date of the 
        enactment of the National Defense Authorization Act for Fiscal 
        Year 2002.''.

    (e) Report.--Not <<NOTE: Deadline.>> later than March 1, 2002, the 
Secretary of Defense shall submit to the Committees on Armed Services of 
the House of Representatives and the Senate a report on the Secretary's 
plans for implementing section 721 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001, as amended by this 
section.
SEC. 736. TRANSITIONAL HEALTH CARE FOR MEMBERS SEPARATED FROM 
                        ACTIVE DUTY.

    (a) Permanent Authority for Involuntarily Separated Members and 
Mobilized Reserves.--Subsection (a) of section 1145 of title 10, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (2), a 
        member'' and all that follows through ``of the member),'' and 
        inserting ``paragraph (3), a member of the armed forces who is 
        separated from active duty as described in paragraph (2)'';
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) This <<NOTE: Applicability.>> subsection applies to the 
following members of the armed forces:
            ``(A) A member who is involuntarily separated from active 
        duty.
            ``(B) A member of a reserve component who is separated from 
        active duty to which called or ordered in support of a 
        contingency operation if the active duty is active duty for a 
        period of more than 30 days.
            ``(C) A member who is separated from active duty for which 
        the member is involuntarily retained under section 12305 of this 
        title in support of a contingency operation.
            ``(D) A member who is separated from active duty served 
        pursuant to a voluntary agreement of the member to remain on 
        active duty for a period of less than one year in support of a 
        contingency operation.''; and
            (4) in paragraph (3), as redesignated by paragraph (2), by 
        striking ``involuntarily'' each place it appears.

    (b) Conforming Amendments.--Such section 1145 is further amended--

[[Page 115 STAT. 1173]]

            (1) in subsection (c)(1), by striking ``during the period 
        beginning on October 1, 1990, and ending on December 31, 2001''; 
        and
            (2) in subsection (e), by striking the first sentence.

    (c) Repeal of Superseded Authority.--(1) Section 1074b of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 55 of such 
title is amended by striking the item relating to section 1074b.
    (d) Transition <<NOTE: Applicability. 10 USC 1074b 
note.>> Provision.--Notwithstanding the repeal of section 1074b of title 
10, United States Code, by subsection (c), the provisions of that 
section, as in effect before the date of the enactment of this Act, 
shall continue to apply to a member of the Armed Forces who is released 
from active duty in support of a contingency operation before that date.
SEC. 737. TWO-YEAR <<NOTE: 10 USC 1071 note.>> EXTENSION OF HEALTH 
                        CARE MANAGEMENT DEMONSTRATION PROGRAM.

    (a) Extension.--Subsection (d) of section 733 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as enacted by 
Public Law 106-398; 114 Stat. 1654A-191) is amended by striking 
``December 31, 2001'' and inserting ``December 31, 2003''.
    (b) Report.--Subsection (e) of that section is amended--
            (1) by striking ``Reports.--'' and inserting ``Report.--''; 
        and
            (2) by striking ``March 15, 2002'' and inserting ``March 15, 
        2004''.
SEC. 738. JOINT <<NOTE: 10 USC 1094a note.>> DOD-VA PILOT PROGRAM 
                        FOR PROVIDING GRADUATE MEDICAL EDUCATION 
                        AND TRAINING FOR PHYSICIANS.

    (a) In General.--The Secretary of Defense and the Secretary of 
Veterans Affairs may jointly carry out a pilot program under which 
graduate medical education and training is provided to military 
physicians and physician employees of the Department of Defense and the 
Department of Veterans Affairs through one or more programs carried out 
in military medical treatment facilities of the Department of Defense 
and medical centers of the Department of Veterans Affairs.
    (b) Cost-Sharing Agreement.--If the Secretary of Defense and the 
Secretary of Veterans Affairs carry out a pilot program under subsection 
(a), the Secretaries shall enter into an agreement for carrying out the 
pilot program under which means are established for each respective 
Secretary to assist in paying the costs, with respect to individuals 
under the jurisdiction of such Secretary, incurred by the other 
Secretary in providing medical education and training under the pilot 
program.
    (c) Use of Existing Authorities.--To carry out the pilot program, 
the Secretary of Defense and the Secretary of Veterans Affairs shall 
exercise authorities provided to the Secretaries, respectively, under 
other laws relating to the furnishing or support of medical education 
and the cooperative use of facilities.
    (d) Period of Program.--If the Secretary of Defense and the 
Secretary of Veterans Affairs carry out a pilot program under subsection 
(a), such pilot program shall begin not later than August 1, 2002, and 
shall terminate on July 31, 2007.
    (e) Reports.--If <<NOTE: Deadlines.>> the Secretary of Defense and 
the Secretary of Veterans Affairs carry out a pilot program under 
subsection (a), not later than January 31, 2003, and January 31 of each

[[Page 115 STAT. 1174]]

year thereafter through 2008, the Secretaries shall jointly submit to 
Congress a report on the pilot program. The report shall cover the 
preceding year and shall include each Secretary's assessment of the 
efficacy of providing education and training under the program.

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

          Subtitle A--Procurement Management and Administration

Sec. 801. Management of procurement of services.
Sec. 802. Savings goals for procurements of services.
Sec. 803. Competition requirement for purchase of services pursuant to 
           multiple award contracts.
Sec. 804. Reports on maturity of technology at initiation of major 
           defense acquisition programs. 

                  Subtitle B--Use of Preferred Sources

Sec. 811. Applicability of competition requirements to purchases from a 
           required source.
Sec. 812. Extension of mentor-protege program.
Sec. 813. Increase of assistance limitation regarding procurement 
           technical assistance program.

 Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                           and Related Matters

Sec. 821. Amendments to conform with administrative changes in 
           acquisition phase and milestone terminology and to make 
           related adjustments in certain requirements applicable at 
           milestone transition points.
Sec. 822. Follow-on production contracts for products developed pursuant 
           to prototype projects.
Sec. 823. One-year extension of program applying simplified procedures 
           to certain commercial items.
Sec. 824. Acquisition workforce qualifications.
Sec. 825. Report on implementation of recommendations of the acquisition 
           2005 task force.

                        Subtitle D--Other Matters

Sec. 831. Identification of errors made by executive agencies in 
           payments to contractors and recovery of amounts erroneously 
           paid.
Sec. 832. Codification and modification of provision of law known as the 
           ``Berry amendment''.
Sec. 833. Personal services contracts to be performed by individuals or 
           organizations abroad.
Sec. 834. Requirements regarding insensitive munitions.
Sec. 835. Inapplicability of limitation to small purchases of miniature 
           or instrument ball or roller bearings under certain 
           circumstances.
Sec. 836. Temporary emergency procurement authority to facilitate the 
           defense against terrorism or biological or chemical attack.

          Subtitle A--Procurement Management and Administration

SEC. 801. MANAGEMENT OF PROCUREMENT OF SERVICES.

    (a) Responsibility of Under Secretary of Defense for Acquisition, 
Technology, and Logistics.--Section 133(b)(2) of title 10, United States 
Code, is amended by inserting ``of goods and services'' after 
``procurement''.
    (b) Requirement for Management Structure.--(1) Chapter 137 of such 
title is amended by inserting after section 2328 the following new 
section:

[[Page 115 STAT. 1175]]

``Sec. 2330. Procurement of services: management structure

    ``(a) Requirement for Management Structure.--(1) The Secretary of 
Defense shall establish and implement a management structure for the 
procurement of services for the Department of Defense. The management 
structure shall be comparable to the management structure that applies 
to the procurement of products by the Department.
    ``(2) The management structure required by paragraph (1) shall--
            ``(A) provide for a designated official in each military 
        department to exercise responsibility for the management of the 
        procurement of services for such department;
            ``(B) provide for a designated official for Defense Agencies 
        and other defense components outside the military departments to 
        exercise responsibility for the management of the procurement of 
        services for such Defense Agencies and components;
            ``(C) include a means by which employees of the departments, 
        Defense Agencies, and components are accountable to such 
        designated officials for carrying out the requirements of 
        subsection (b); and
            ``(D) establish specific dollar thresholds and other 
        criteria for advance approvals of purchases under subsection 
        (b)(1)(C) and delegations of activity under subsection (b)(2).

    ``(b) Contracting Responsibilities of Designated Officials.--(1) The 
responsibilities of an official designated under subsection (a) shall 
include, with respect to the procurement of services for the military 
department or Defense Agencies and components by that official, the 
following:
            ``(A) Ensuring that the services are procured by means of 
        contracts or task orders that are in the best interests of the 
        Department of Defense and are entered into or issued and managed 
        in compliance with applicable statutes, regulations, directives, 
        and other requirements, regardless of whether the services are 
        procured through a contract or task order of the Department of 
        Defense or through a contract entered into or task order issued 
        by an official of the United States outside the Department of 
        Defense.
            ``(B) Analyzing data collected under section 2330a of this 
        title on contracts that are entered into for the procurement of 
        services.
            ``(C) Approving, in advance, any procurement of services 
        above the thresholds established pursuant to subsection 
        (a)(2)(D) that is to be made through the use of--
                    ``(i) a contract or task order that is not a 
                performance-based contract or task order; or
                    ``(ii) a contract entered into, or a task order 
                issued, by an official of the United States outside the 
                Department of Defense.

    ``(2) The responsibilities of a designated official may be delegated 
to other employees of the Department of Defense in accordance with the 
criteria established by the Secretary of Defense.
    ``(c) Definition.--In this section, the term `performance-based', 
with respect to a contract or a task order means that the contract or 
task order, respectively, includes the use of performance work 
statements that set forth requirements in clear, specific, and objective 
terms with measurable outcomes.''.

[[Page 115 STAT. 1176]]

    (2) <<NOTE: Deadline. 10 USC 2330 note.>> Not later than 180 days 
after the date of the enactment of this Act--
            (A) the Secretary of Defense shall establish and implement 
        the management structure required under section 2330 of title 
        10, United States Code (as added by paragraph (1)); and
            (B) <<NOTE: Guidance.>> the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics shall issue guidance for 
        officials in the management structure established under such 
        section 2330 regarding how to carry out their responsibilities 
        under that section.

    (c) Tracking of Procurement of Services.--Chapter 137 of title 10, 
United States Code, as amended by subsection (b), is further amended by 
inserting after section 2330 the following new section:
``Sec. 2330a. Procurement of services: tracking of purchases

    ``(a) Data Collection Required.--The Secretary of Defense shall 
establish a data collection system to provide management information 
with regard to each purchase of services 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 services purchased.
            ``(2) The total dollar amount of the purchase.
            ``(3) The form of contracting action used to make the 
        purchase.
            ``(4) Whether the purchase was made through--
                    ``(A) a performance-based contract, performance-
                based task order, or other performance-based arrangement 
                that contains firm fixed prices for the specific tasks 
                to be performed;
                    ``(B) any other performance-based contract, 
                performance-based task order, or performance-based 
                arrangement; or
                    ``(C) any contract, task order, or other arrangement 
                that is not performance based.
            ``(5) In the case of a purchase made through an agency other 
        than the Department of Defense, the agency through which the 
        purchase is made.
            ``(6) The extent of competition provided in making the 
        purchase and whether there was more than one offer.
            ``(7) 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.

    ``(c) Compatibility With Data Collection System for Information 
Technology Purchases.--To the maximum extent practicable, a single data 
collection system shall be used to collect data under this section and 
information under section 2225 of this title.
    ``(d) Definitions.--In this section:

[[Page 115 STAT. 1177]]

            ``(1) The term `performance-based', with respect to a 
        contract, task order, or arrangement, means that the contract, 
        task order, or arrangement, respectively, includes the use of 
        performance work statements that set forth contract requirements 
        in clear, specific, and objective terms with measurable 
        outcomes.
            ``(2) The definitions set forth in section 2225(f) of this 
        title for the terms `simplified acquisition threshold', `small 
        business concern', `small business concern owned and controlled 
        by socially and economically disadvantaged individuals', and 
        `small business concern owned and controlled by women' shall 
        apply.''.

    (d) Requirement <<NOTE: Deadline. Policy. 10 USC 2330 note.>> for 
Program Review Structure.--(1) Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall issue and 
implement a policy that applies to the procurement of services by the 
Department of Defense a program review structure that is similar to the 
one developed for and applied to the procurement of weapon systems by 
the Department of Defense.

    (2) The program review structure for the procurement of services 
shall, at a minimum, include the following:
            (A) Standards for determining which procurements should be 
        subject to review by either the senior procurement executive of 
        a military department or the senior procurement executive of the 
        Department of Defense under such section, including criteria 
        based on dollar thresholds, program criticality, or other 
        appropriate measures.
            (B) Appropriate key decision points at which those reviews 
        should take place.
            (C) A description of the specific matters that should be 
        reviewed.

    (e) Comptroller <<NOTE: Deadline. Guidance. 10 USC 2330 
note.>> General Review.--Not later than 90 days after the date on which 
the Secretary issues the policy required by subsection (d) and the Under 
Secretary of Defense for Acquisition, Technology, and Logistics issues 
the guidance required by subsection (b)(2), the Comptroller General 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives an assessment of the compliance with the 
requirements of this section and the amendments made by this section.

    (f) Definitions.--In <<NOTE: 10 USC 2330 note.>> this section:
            (1) The term ``senior procurement executive'' means the 
        official designated as the senior procurement executive under 
        section 16(3) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 414(3)).
            (2) The term ``performance-based'', with respect to a 
        contract or a task order means that the contract or task order, 
        respectively, includes the use of performance work statements 
        that set forth contract requirements in clear, specific, and 
        objective terms with measurable outcomes.

    (g) Clerical Amendments.--(1) The heading for section 2331 of title 
10, United States Code, is amended to read as follows:

[[Page 115 STAT. 1178]]

``Sec. 2331. Procurement of services: contracts for professional 
                    and technical services''.

    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking the item relating to section 2331 and 
inserting the following new items:

``2330.  Procurement of services: management structure.
``2330a. Procurement of services: tracking of purchases.
``2331.  Procurement of services: contracts for professional and 
           technical services.''.

SEC. 802. SAVINGS <<NOTE: 10 USC 2330 note.>> GOALS FOR 
                        PROCUREMENTS OF SERVICES.

    (a) Goals.--(1) It shall be an objective of the Department of 
Defense to achieve savings in expenditures for procurements of services 
through the use of--
            (A) performance-based services contracting;
            (B) appropriate competition for task orders under services 
        contracts; and
            (C) program review, spending analyses, and improved 
        management of services contracts.

    (2) In furtherance of such objective, the Department of Defense 
shall have goals to use improved management practices to achieve, over 
10 fiscal years, reductions in the total amount that would otherwise be 
expended by the Department for the procurement of services (other than 
military construction) in a fiscal year by the amount equal to 10 
percent of the total amount of the expenditures of the Department for 
fiscal year 2000 for procurement of services (other than military 
construction), as follows:
            (A) By fiscal year 2002, a three percent reduction.
            (B) By fiscal year 2003, a four percent reduction.
            (C) By fiscal year 2004, a five percent reduction.
            (D) By fiscal year 2011, a ten percent reduction.

    (b) Annual <<NOTE: Deadlines.>> Report.--Not later than March 1, 
2002, and annually thereafter through March 1, 2006, the Secretary of 
Defense shall submit to the congressional defense committees a report on 
the progress made toward meeting the objective and goals established in 
subsection (a). Each report shall include, at a minimum, the following 
information:
            (1) A summary of the steps taken or planned to be taken in 
        the fiscal year of the report to improve the management of 
        procurements of services.
            (2) A summary of the steps planned to be taken in the 
        following fiscal year to improve the management of procurements 
        of services.
            (3) An estimate of the amount that will be expended by the 
        Department of Defense for procurements of services in the fiscal 
        year of the report.
            (4) An estimate of the amount that will be expended by the 
        Department of Defense for procurements of services in the 
        following fiscal year.
            (5) An estimate of the amount of savings that, as a result 
        of improvement of the management practices used by the 
        Department of Defense, will be achieved for the procurement of 
        services by the Department in the fiscal year of the report and 
        in the following fiscal year.
SEC. 803. COMPETITION <<NOTE: 10 USC 2304 note.>> REQUIREMENT FOR 
                        PURCHASE OF SERVICES PURSUANT TO MULTIPLE 
                        AWARD CONTRACTS.

    (a) Regulations <<NOTE: Deadline.>> Required.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense

[[Page 115 STAT. 1179]]

shall promulgate in the Department of Defense Supplement to the Federal 
Acquisition Regulation regulations requiring competition in the purchase 
of services by the Department of Defense pursuant to multiple award 
contracts.

    (b) Content of Regulations.--(1) The regulations required by 
subsection (a) shall provide, at a minimum, that each individual 
purchase of services in excess of $100,000 that is made under a multiple 
award contract shall be made on a competitive basis unless a contracting 
officer of the Department of Defense--
            (A) waives the requirement on the basis of a determination 
        that--
                    (i) one of the circumstances described in paragraphs 
                (1) through (4) of section 2304c(b) of title 10, United 
                States Code, applies to such individual purchase; or
                    (ii) a statute expressly authorizes or requires that 
                the purchase be made from a specified source; and
            (B) justifies the determination in writing.

    (2) For purposes of this subsection, an individual purchase of 
services is made on a competitive basis only if it is made pursuant to 
procedures that--
            (A) require fair notice of the intent to make that purchase 
        (including a description of the work to be performed and the 
        basis on which the selection will be made) to be provided to all 
        contractors offering such services under the multiple award 
        contract; and
            (B) afford all contractors responding to the notice a fair 
        opportunity to make an offer and have that offer fairly 
        considered by the official making the purchase.

    (3) Notwithstanding paragraph (2), notice may be provided to fewer 
than all contractors offering such services under a multiple award 
contract described in subsection (c)(2)(A) if notice is provided to as 
many contractors as practicable.
    (4) A purchase may not be made pursuant to a notice that is provided 
to fewer than all contractors under paragraph (3) unless--
            (A) offers were received from at least three qualified 
        contractors; or
            (B) a contracting officer of the Department of Defense 
        determines in writing that no additional qualified contractors 
        were able to be identified despite reasonable efforts to do so.

    (c) Definitions.--In this section:
            (1) The term ``individual purchase'' means a task order, 
        delivery order, or other purchase.
            (2) The term ``multiple award contract'' means--
                    (A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 2302(2)(C) 
                of title 10, United States Code;
                    (B) a multiple award task order contract that is 
                entered into under the authority of sections 2304a 
                through 2304d of title 10, United States Code, or 
                sections 303H through 303K of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 253h 
                through 253k); and
                    (C) any other indefinite delivery, indefinite 
                quantity contract that is entered into by the head of a 
                Federal agency with two or more sources pursuant to the 
                same solicitation.

[[Page 115 STAT. 1180]]

            (3) The term ``Defense Agency'' has the meaning given that 
        term in section 101(a)(11) of title 10, United States Code.

    (d) Applicability.--The <<NOTE: Effective 
date. Deadline.>> regulations promulgated by the Secretary pursuant to 
subsection (a) shall take effect not later than 180 days after the date 
of the enactment of this Act and shall apply to all individual purchases 
of services that are made under multiple award contracts on or after the 
effective date, without regard to whether the multiple award contracts 
were entered into before, on, or after such effective date.
SEC. 804. REPORTS ON MATURITY OF TECHNOLOGY AT INITIATION OF MAJOR 
                        DEFENSE ACQUISITION PROGRAMS.

    (a) Reports Required.--Not later than March 1 of each of years 2003 
through 2006, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
on the implementation of the requirement in paragraph 4.7.3.2.2.2 of 
Department of Defense Instruction 5000.2, as in effect on the date of 
enactment of this Act, that technology must have been demonstrated in a 
relevant environment (or, preferably, in an operational environment) to 
be considered mature enough to use for product development in systems 
integration.
    (b) Contents of Reports.--Each report required by subsection (a) 
shall--
            (1) identify each case in which a major defense acquisition 
        program entered system development and demonstration during the 
        preceding calendar year and into which key technology has been 
        incorporated that does not meet the technological maturity 
        requirement described in subsection (a), and provide a 
        justification for why such key technology was incorporated; and
            (2) identify any determination of technological maturity 
        with which the Deputy Under Secretary of Defense for Science and 
        Technology did not concur and explain how the issue has been or 
        will be resolved.

    (c) Major Defense Acquisition Program Defined.--In this section, the 
term ``major defense acquisition program'' has the meaning given that 
term in section 139(a)(2) of title 10, United States Code.

                  Subtitle B--Use of Preferred Sources

SEC. 811. APPLICABILITY OF COMPETITION REQUIREMENTS TO PURCHASES 
                        FROM A REQUIRED SOURCE.

    (a) Conditions for Competition.--(1) Chapter 141 of title 10, United 
States Code, is amended by adding at the end the following:
``Sec. 2410n. Products of Federal Prison Industries: procedural 
                      requirements

    ``(a) Market Research Before Purchase.--Before purchasing a product 
listed in the latest edition of the Federal Prison Industries catalog 
under section 4124(d) of title 18, the Secretary of Defense shall 
conduct market research to determine whether the Federal Prison 
Industries product is comparable in price, quality, and time of delivery 
to products available from the private sector.

[[Page 115 STAT. 1181]]

    ``(b) Limited Competition Requirement.--If the Secretary determines 
that a Federal Prison Industries product is not comparable in price, 
quality, and time of delivery to products available from the private 
sector, the Secretary shall use competitive procedures for the 
procurement of the product. In conducting such a competition, the 
Secretary shall consider a timely offer from Federal Prison Industries 
for award in accordance with the specifications and evaluation factors 
specified in the solicitation.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:
``2410n. Products of Federal Prison Industries: procedural 
              requirements.''.

    (b) Applicability.--Section <<NOTE: 10 USC 2410n note.>> 2410n of 
title 10, United States Code (as added by subsection (a)), shall apply 
to purchases initiated on or after October 1, 2001.

SEC. 812. EXTENSION OF MENTOR-PROTEGE PROGRAM.

    Section 831 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) is amended--
            (1) in subsection (j)--
                    (A) in paragraph (1), by striking ``September 30, 
                2002'' and inserting ``September 30, 2005''; and
                    (B) in paragraph (2), by striking ``September 30, 
                2005'' and inserting ``September 30, 2008''; and
            (2) in subsection (l)(3), by striking ``2004'' and inserting 
        ``2007''.
SEC. 813. INCREASE OF ASSISTANCE LIMITATION REGARDING PROCUREMENT 
                        TECHNICAL ASSISTANCE PROGRAM.

    Section 2414(a)(1) of title 10, United States Code, is amended by 
striking ``$300,000'' and inserting ``$600,000''.

 Subtitle C--Amendments to General Contracting Authorities, Procedures, 
                           and Related Matters

SEC. 821. AMENDMENTS TO CONFORM WITH ADMINISTRATIVE CHANGES IN 
                        ACQUISITION PHASE AND MILESTONE 
                        TERMINOLOGY AND TO MAKE RELATED 
                        ADJUSTMENTS IN CERTAIN REQUIREMENTS 
                        APPLICABLE AT MILESTONE TRANSITION POINTS.

    (a) Acquisition Phase Terminology.--The following provisions of 
title 10, United States Code, are amended by striking ``engineering and 
manufacturing development'' each place it appears and inserting ``system 
development and demonstration'': sections 2366(c) and 2434(a), and 
subsections (b)(3)(A)(i), (c)(3)(A), and (h)(1) of section 2432.
    (b) Milestone Transition Points.--(1) Section 811(c) of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-211), is amended 
by striking ``Milestone I approval, Milestone II approval, or Milestone 
III approval (or the equivalent) of a major automated information 
system'' and inserting ``approval of a major automated information 
system at Milestone B or C or for full rate production, or an equivalent 
approval,''.

[[Page 115 STAT. 1182]]

    (2) <<NOTE: Deadline.>> Department of Defense Directive 5000.1, as 
revised in accordance with subsection (b) of section 811 of such Act, 
shall be further revised as necessary to comply with subsection (c) of 
such section, as amended by paragraph (1), within 60 days after the date 
of the enactment of this Act.

    (c) Adjustments to Requirement for Determination of Quantity for 
Low-Rate Initial Production.--Section 2400(a) of title 10, United States 
Code, is amended--
            (1) by striking ``milestone II'' each place it appears in 
        paragraphs (1)(A), (2), (4) and (5) and inserting ``milestone 
        B''; and
            (2) in paragraph (2), by striking ``engineering and 
        manufacturing development'' and inserting ``system development 
        and demonstration''.

    (d) Adjustments to Requirements for Baseline Description and the 
Related Limitation.--Section 2435 of title 10, United States Code, is 
amended--
            (1) in subsection (b), by striking ``engineering and 
        manufacturing development'' and inserting ``system development 
        and demonstration''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``demonstration 
                and validation'' and inserting ``system development and 
                demonstration'';
                    (B) in paragraph (2), by striking ``engineering and 
                manufacturing development'' and inserting ``production 
                and deployment''; and
                    (C) in paragraph (3), by striking ``production and 
                deployment'' and inserting ``full rate production''.
SEC. 822. FOLLOW-ON PRODUCTION CONTRACTS FOR PRODUCTS DEVELOPED 
                        PURSUANT TO PROTOTYPE PROJECTS.

    Section 845 of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f):

    ``(f) Follow-On Production Contracts.--(1) A transaction entered 
into under this section for a prototype project that satisfies the 
conditions set forth in subsection (d)(1)(B)(i) may provide for the 
award of a follow-on production contract to the participants in the 
transaction for a specific number of units at specific target prices. 
The number of units specified in the transaction shall be determined on 
the basis of a balancing of the level of the investment made in the 
project by the participants other than the Federal Government with the 
interest of the Federal Government in having competition among sources 
in the acquisition of the product or products prototyped under the 
project.
    ``(2) A follow-on production contract provided for in a transaction 
under paragraph (1) may be awarded to the participants in the 
transaction without the use of competitive procedures, notwithstanding 
the requirements of section 2304 of title 10, United States Code, if--
            ``(A) competitive procedures were used for the selection of 
        parties for participation in the transaction;
            ``(B) the participants in the transaction successfully 
        completed the prototype project provided for in the transaction;

[[Page 115 STAT. 1183]]

            ``(C) the number of units provided for in the follow-on 
        production contract does not exceed the number of units 
        specified in the transaction for such a follow-on production 
        contract; and
            ``(D) the prices established in the follow-on production 
        contract do not exceed the target prices specified in the 
        transaction for such a follow-on production contract.''.
SEC. 823. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED 
                        PROCEDURES TO CERTAIN COMMERCIAL ITEMS.

    Section 4202 of the Clinger-Cohen Act of 1996 (divisions D and E of 
Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended in 
subsection (e) by striking ``January 1, 2002'' and inserting ``January 
1, 2003''.

SEC. 824. ACQUISITION WORKFORCE QUALIFICATIONS.

    (a) Qualifications.--Section 1724 of title 10, United States Code, 
is amended--
            (1) in subsection (a)--
                    (A) by striking the matter preceding paragraph (1) 
                and inserting the following:

    ``(a) Contracting Officers.--The Secretary of Defense shall require 
that, in order to qualify to serve in an acquisition position as a 
contracting officer with authority to award or administer contracts for 
amounts above the simplified acquisition threshold referred to in 
section 2304(g) of this title, an employee of the Department of Defense 
or member of the armed forces (other than the Coast Guard) must, except 
as provided in subsections (c) and (d)--'';
                    (B) in paragraph (1)--
                          (i) by striking ``mandatory''; and
                          (ii) by striking ``at the grade level'' and 
                      all that follows and inserting ``(A) in the case 
                      of an employee, serving in the position within the 
                      grade of the General Schedule in which the 
                      employee is serving, and (B) in the case of a 
                      member of the armed forces, in the member's 
                      grade;''; and
                    (C) in paragraph (3)(A), by inserting a comma after 
                ``business'';
            (2) by striking subsection (b) and inserting the following 
        new subsection:

    ``(b) GS-1102 Series Positions and Similar Military Positions.--(1) 
The Secretary of Defense shall require that in order to qualify to serve 
in a position in the Department of Defense that is in the GS-1102 
occupational series an employee or potential employee of the Department 
of Defense meet the requirements set forth in paragraph (3) of 
subsection (a). The Secretary may not require that in order to serve in 
such a position an employee or potential employee meet any of the 
requirements of paragraphs (1) and (2) of that subsection.
    ``(2) The Secretary of Defense shall require that in order for a 
member of the armed forces to be selected for an occupational specialty 
within the armed forces that (as determined by the Secretary) is similar 
to the GS-1102 occupational series a member of the armed forces meet the 
requirements set forth in paragraph (3) of subsection (a). The Secretary 
may not require that in order to be selected for such an occupational 
specialty a member meet

[[Page 115 STAT. 1184]]

any of the requirements of paragraphs (1) and (2) of that subsection.''; 
and
            (3) by striking subsections (c) and (d) inserting the 
        following new subsections:

    ``(c) Exceptions.--The qualification requirements imposed by the 
Secretary of Defense pursuant to subsections (a) and (b) shall not apply 
to an employee of the Department of Defense or member of the armed 
forces who--
            ``(1) served as a contracting officer with authority to 
        award or administer contracts in excess of the simplified 
        acquisition threshold on or before September 30, 2000;
            ``(2) served, on or before September 30, 2000, in a position 
        either as an employee in the GS-1102 series or as a member of 
        the armed forces in a similar occupational specialty;
            ``(3) is in the contingency contracting force; or
            ``(4) is described in subsection (e)(1)(B).

    ``(d) Waiver.--The acquisition career program board concerned may 
waive any or all of the requirements of subsections (a) and (b) with 
respect to an employee of the Department of Defense or member of the 
armed forces if the board certifies that the individual possesses 
significant potential for advancement to levels of greater 
responsibility and authority, based on demonstrated job performance and 
qualifying experience. With respect to each waiver granted under this 
subsection, the board shall set forth in a written document the 
rationale for its decision to waive such requirements. Such document 
shall be submitted to and retained by the Director of Acquisition 
Education, Training, and Career Development.
    ``(e) Developmental Opportunities.--(1) The Secretary of Defense 
may--
            ``(A) establish or continue one or more programs for the 
        purpose of recruiting, selecting, appointing, educating, 
        qualifying, and developing the careers of individuals to meet 
        the requirements in subparagraphs (A) and (B) of subsection 
        (a)(3);
            ``(B) appoint individuals to developmental positions in 
        those programs; and
            ``(C) separate from the civil service after a three-year 
        probationary period any individual appointed under this 
        subsection who fails to meet the requirements described in 
        subsection (a)(3).

    ``(2) To qualify for any developmental program described in 
paragraph (1)(B), an individual shall have--
            ``(A) been awarded a baccalaureate degree, with a grade 
        point average of at least 3.0 (or the equivalent), from an 
        accredited institution of higher education authorized to grant 
        baccalaureate degrees; or
            ``(B) completed at least 24 semester credit hours or the 
        equivalent of study from an accredited institution of higher 
        education in any of the disciplines of accounting, business, 
        finance, law, contracts, purchasing, economics, industrial 
        management, marketing, quantitative methods, or organization and 
        management.

    ``(f) Contingency Contracting Force.--The Secretary shall establish 
qualification requirements for the contingency contracting force 
consisting of members of the armed forces whose mission is to deploy in 
support of contingency operations and other operations of the Department 
of Defense, including--

[[Page 115 STAT. 1185]]

            ``(1) completion of at least 24 semester credit hours or the 
        equivalent of study from an accredited institution of higher 
        education or similar educational institution in any of the 
        disciplines of accounting, business, finance, law, contracts, 
        purchasing, economics, industrial management, marketing, 
        quantitative methods, or organization and management; or
            ``(2) passing an examination that demonstrates skills, 
        knowledge, or abilities comparable to that of an individual who 
        has completed at least 24 semester credit hours or the 
        equivalent of study in any of the disciplines described in 
        paragraph (1).''.

    (b) Clerical Amendment.--Section 1732(c)(2) of such title is amended 
by inserting a comma after ``business''.
SEC. 825. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE 
                        ACQUISITION 2005 TASK FORCE.

    (a) Requirement <<NOTE: Deadline.>> for Report.--Not later than 
March 1, 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 extent of the implementation of the recommendations set 
forth in the final report of the Department of Defense Acquisition 2005 
Task Force, entitled ``Shaping the Civilian Acquisition Workforce of the 
Future''.

    (b) Content of Report.--The report shall include the following:
            (1) For each recommendation in the final report that is 
        being implemented or that the Secretary plans to implement--
                    (A) a summary of all actions that have been taken to 
                implement the recommendation; and
                    (B) a schedule, with specific milestones, for 
                completing the implementation of the recommendation.
            (2) For each recommendation in the final report that the 
        Secretary does not plan to implement--
                    (A) the reasons for the decision not to implement 
                the recommendation; and
                    (B) a summary of any alternative actions the 
                Secretary plans to take to address the purposes 
                underlying the recommendation.
            (3) A summary of any additional actions the Secretary plans 
        to take to address concerns raised in the final report about the 
        size and structure of the acquisition workforce of the 
        Department of Defense.

    (c) Comptroller <<NOTE: Deadline.>> General Review.--Not later than 
60 days after the date on which the Secretary submits the report 
required by subsection (a), the Comptroller General shall--
            (1) review the report; and
            (2) submit to the committees referred to in subsection (a) 
        the Comptroller General's assessment of the extent to which the 
        report--
                    (A) complies with the requirements of this section; 
                and
                    (B) addresses the concerns raised in the final 
                report about the size and structure of the acquisition 
                workforce of the Department of Defense.

[[Page 115 STAT. 1186]]

                        Subtitle D--Other Matters

SEC. 831. IDENTIFICATION OF ERRORS MADE BY EXECUTIVE AGENCIES IN 
                        PAYMENTS TO CONTRACTORS AND RECOVERY OF 
                        AMOUNTS ERRONEOUSLY PAID.

    (a) Program Required.--(1) Chapter 35 of title 31, United States 
Code, is amended by adding at the end the following new subchapter:

                    ``SUBCHAPTER VI--RECOVERY AUDITS

``Sec. 3561. Identification of errors made by executive agencies 
                    in payments to contractors and recovery of 
                    amounts erroneously paid

    ``(a) Program Required.--The head of each executive agency that 
enters into contracts with a total value in excess of $500,000,000 in a 
fiscal year shall carry out a cost-effective program for identifying any 
errors made in paying the contractors and for recovering any amounts 
erroneously paid to the contractors.
    ``(b) Recovery Audits and Activities.--A program of an executive 
agency under subsection (a) shall include recovery audits and recovery 
activities. The head of the executive agency shall determine, in 
accordance with guidance provided under subsection (c), the classes of 
contracts to which recovery audits and recovery activities are 
appropriately applied.
    ``(c) OMB Guidance.--The Director of the Office of Management and 
Budget shall issue guidance for the conduct of programs under subsection 
(a). The guidance shall include the following:
            ``(1) Definitions of the terms `recovery audit' and 
        `recovery activity' for the purposes of the programs.
            ``(2) The classes of contracts to which recovery audits and 
        recovery activities are appropriately applied under the 
        programs.
            ``(3) Protections for the confidentiality of--
                    ``(A) sensitive financial information that has not 
                been released for use by the general public; and
                    ``(B) information that could be used to identify a 
                person.
            ``(4) Policies and procedures for ensuring that the 
        implementation of the programs does not result in duplicative 
        audits of contractor records.
            ``(5) Policies regarding the types of contracts executive 
        agencies may use for the procurement of recovery services, 
        including guidance for use, in appropriate circumstances, of a 
        contingency contract pursuant to which the head of an executive 
        agency may pay a contractor an amount equal to a percentage of 
        the total amount collected for the United States pursuant to 
        that contract.
            ``(6) Protections for a contractor's records and facilities 
        through restrictions on the authority of a contractor under a 
        contract for the procurement of recovery services for an 
        executive agency--
                    ``(A) to require the production of any record or 
                information by any person other than an officer, 
                employee, or agent of the executive agency;

[[Page 115 STAT. 1187]]

                    ``(B) to establish, or otherwise have, a physical 
                presence on the property or premises of any private 
                sector entity for the purposes of performing the 
                contract; or
                    ``(C) to act as agents for the Government in the 
                recovery of funds erroneously paid to contractors.
            ``(7) Policies for the appropriate types of management 
        improvement programs authorized by section 3564 of this title 
        that executive agencies may carry out to address overpayment 
        problems and the recovery of overpayments.
``Sec. 3562. Disposition of recovered funds

    ``(a) Availability of Funds for Recovery Audits and Activities 
Program.--Funds collected under a program carried out by an executive 
agency under section 3561 of this title shall be available to the 
executive agency for the following purposes:
            ``(1) To reimburse the actual expenses incurred by the 
        executive agency in the administration of the program.
            ``(2) To pay contractors for services under the program in 
        accordance with the guidance issued under section 3561(c)(5) of 
        this title.

    ``(b) Funds Not Used for Program.--Any amounts erroneously paid by 
an executive agency that are recovered under such a program of an 
executive agency and are not used to reimburse expenses or pay 
contractors under subsection (a)--
            ``(1) shall be credited to the appropriations from which the 
        erroneous payments were made, shall be merged with other amounts 
        in those appropriations, and shall be available for the purposes 
        and period for which such appropriations are available; or
            ``(2) if no such appropriation remains available, shall be 
        deposited in the Treasury as miscellaneous receipts.

    ``(c) Priority of Other Authorized Dispositions.--Notwithstanding 
subsection (b), the authority under such subsection may not be exercised 
to use, credit, or deposit funds collected under such a program as 
provided in that subsection to the extent that any other provision of 
law requires or authorizes the crediting of such funds to a 
nonappropriated fund instrumentality, revolving fund, working-capital 
fund, trust fund, or other fund or account.

``Sec. 3563. Sources of recovery services

    ``(a) Consideration of Available Recovery Resources.--(1) In 
carrying out a program under section 3561 of this title, the head of an 
executive agency shall consider all resources available to that official 
to carry out the program.
    ``(2) The resources considered by the head of an executive agency 
for carrying out the program shall include the resources available to 
the executive agency for such purpose from the following sources:
            ``(A) The executive agency.
            ``(B) Other departments and agencies of the United States.
            ``(C) Private sector sources.

    ``(b) Compliance With Applicable Law and Regulations.--Before 
entering into a contract with a private sector source for the 
performance of services under a program of the executive agency carried 
out under section 3561 of this title, the head of an executive agency 
shall comply with--

[[Page 115 STAT. 1188]]

            ``(1) any otherwise applicable provisions of Office of 
        Management and Budget Circular A-76; and
            ``(2) any other applicable provision of law or regulation 
        with respect to the selection between employees of the United 
        States and private sector sources for the performance of 
        services.

``Sec. 3564. Management improvement programs

    ``In accordance with guidance provided by the Director of the Office 
of Management and Budget under section 3561 of this title, the head of 
an executive agency required to carry out a program under such section 
3561 may carry out a program for improving management processes within 
the executive agency--
            ``(1) to address problems that contribute directly to the 
        occurrence of errors in the paying of contractors of the 
        executive agency; or
            ``(2) to improve the recovery of overpayments due to the 
        agency.
``Sec. 3565. Relationship to authority of inspectors general

    ``Nothing in this subchapter shall be construed as impairing the 
authority of an Inspector General under the Inspector General Act of 
1978 or any other provision of law.

``Sec. 3566. Privacy protections

    ``Any nongovernmental entity that, in the course of recovery 
auditing or recovery activity under this subchapter, obtains information 
that identifies an individual or with respect to which there is a 
reasonable basis to believe that the information can be used to identify 
an individual, may not disclose the information for any purpose other 
than such recovery auditing or recovery activity and governmental 
oversight of such activity, unless disclosure for that other purpose is 
authorized by the individual to the executive agency that contracted for 
the performance of the recovery auditing or recovery activity.

``Sec. 3567. Definition of executive agency

    ``Notwithstanding section 102 of this title, in this subchapter, 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 table of sections at the beginning of chapter 35 of such 
title is amended by adding at the end the following:

                    ``SUBCHAPTER VI--RECOVERY AUDITS

``3561. Identification of errors made by executive agencies in payments 
            to contractors and recovery of amounts erroneously paid.
``3562. Disposition of recovered funds.
``3563. Sources of recovery services.
``3564. Management improvement programs.
``3565. Relationship to authority of inspectors general.
``3566. Privacy protections.
``3567. Definition of executive agency.''.

    (b) Reports.--(1) <<NOTE: Deadline. 31 USC 3561 note.>> Not later 
than 30 months after the date of the enactment of this Act, and annually 
for each of the first two years following the year of the first report, 
the Director of the Office of Management and Budget shall submit to the 
Committee on Government Reform of the House of Representatives and the 
Committee on Governmental Affairs of the Senate, a report

[[Page 115 STAT. 1189]]

on the implementation of subchapter VI of chapter 35 of title 31, United 
States Code (as added by subsection (a)).

    (2) Each report shall include--
            (A) a general description and evaluation of the steps taken 
        by the heads of executive agencies to carry out the programs 
        under such subchapter, including any management improvement 
        programs carried out under section 3564 of such title 31;
            (B) the costs incurred by executive agencies to carry out 
        the programs under such subchapter; and
            (C) the amounts recovered under the programs under such 
        subchapter.

    (c) Conforming Amendment.--Section 3501 of such title is amended by 
inserting ``and subchapter VI'' after ``section 3513''.
SEC. 832. CODIFICATION AND MODIFICATION OF PROVISION OF LAW KNOWN 
                        AS THE ``BERRY AMENDMENT''.

    (a) Buy American Requirements.--(1) Chapter 148 of title 10, United 
States Code, is amended by inserting after section 2533 the following 
new section:
``Sec. 2533a. Requirement to buy certain articles from American 
                      sources; exceptions

    ``(a) Requirement.--Except as provided in subsections (c) through 
(h), funds appropriated or otherwise available to the Department of 
Defense may not be used for the procurement of an item described in 
subsection (b) if the item is not grown, reprocessed, reused, or 
produced in the United States.
    ``(b) Covered Items.--An item referred to in subsection (a) is any 
of the following:
            ``(1) An article or item of--
                    ``(A) food;
                    ``(B) clothing;
                    ``(C) tents, tarpaulins, or covers;
                    ``(D) cotton and other natural fiber products, woven 
                silk or woven silk blends, spun silk yarn for cartridge 
                cloth, synthetic fabric or coated synthetic fabric 
                (including all textile fibers and yarns that are for use 
                in such fabrics), canvas products, or wool (whether in 
                the form of fiber or yarn or contained in fabrics, 
                materials, or manufactured articles); or
                    ``(E) any item of individual equipment manufactured 
                from or containing such fibers, yarns, fabrics, or 
                materials.
            ``(2) Specialty metals, including stainless steel flatware.
            ``(3) Hand or measuring tools.

    ``(c) Availability Exception.--Subsection (a) does not apply to the 
extent that the Secretary of Defense or the Secretary of the military 
department concerned determines that satisfactory quality and sufficient 
quantity of any such article or item described in subsection (b)(1) or 
specialty metals (including stainless steel flatware) grown, 
reprocessed, reused, or produced in the United States cannot be procured 
as and when needed at United States market prices.
    ``(d) Exception for Certain Procurements Outside the United 
States.--Subsection (a) does not apply to the following:
            ``(1) Procurements outside the United States in support of 
        combat operations.

[[Page 115 STAT. 1190]]

            ``(2) Procurements by vessels in foreign waters.
            ``(3) Emergency procurements or procurements of perishable 
        foods by an establishment located outside the United States for 
        the personnel attached to such establishment.

    ``(e) Exception for Specialty Metals and Chemical Warfare Protective 
Clothing.--Subsection (a) does not preclude the procurement of specialty 
metals or chemical warfare protective clothing produced outside the 
United States if--
            ``(1) such procurement is necessary--
                    ``(A) to comply with agreements with foreign 
                governments requiring the United States to purchase 
                supplies from foreign sources for the purposes of 
                offsetting sales made by the United States Government or 
                United States firms under approved programs serving 
                defense requirements; or
                    ``(B) in furtherance of agreements with foreign 
                governments in which both such governments agree to 
                remove barriers to purchases of supplies produced in the 
                other country or services performed by sources of the 
                other country; and
            ``(2) any such agreement with a foreign government complies, 
        where applicable, with the requirements of section 36 of the 
        Arms Export Control Act (22 U.S.C. 2776) and with section 2457 
        of this title.

    ``(f) Exception for Certain Foods.--Subsection (a) does not preclude 
the procurement of foods manufactured or processed in the United States.
    ``(g) Exception for Commissaries, Exchanges, and Other 
Nonappropriated Fund Instrumentalities.--Subsection (a) does not apply 
to items purchased for resale purposes in commissaries, exchanges, or 
nonappropriated fund instrumentalities operated by the Department of 
Defense.
    ``(h) Exception for Small Purchases.--Subsection (a) does not apply 
to purchases for amounts not greater than the simplified acquisition 
threshold referred to in section 2304(g) of this title.
    ``(i) Applicability to Contracts and Subcontracts for Procurement of 
Commercial Items.--This section is applicable to contracts and 
subcontracts for the procurement of commercial items notwithstanding 
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 
430).
    ``(j) Geographic Coverage.--In this section, the term `United 
States' includes the possessions of the United States.''.
    (2) The table of sections at the beginning of subchapter V of such 
chapter is amended by inserting after the item relating to section 2533 
the following new item:
``2533a. Requirement to buy certain articles from American sources; 
              exceptions.''.

    (b) Repeal of Source Provisions.--The following provisions of law 
are repealed:
            (1) Section 9005 of the Department of Defense Appropriations 
        Act, 1993 (Public Law 102-396; 10 U.S.C. 2241 note).
            (2) Section 8109 of the Department of Defense Appropriations 
        Act, 1997 (as contained in section 101(b) of Public Law 104-208; 
        110 Stat. 3009-111; 10 U.S.C. 2241 note).

[[Page 115 STAT. 1191]]

SEC. 833. PERSONAL SERVICES CONTRACTS TO BE PERFORMED BY 
                        INDIVIDUALS OR ORGANIZATIONS ABROAD.

    Section 2 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2669) is amended by adding at the end the following:
            ``(n) exercise the authority provided in subsection (c), 
        upon the request of the Secretary of Defense or the head of any 
        other department or agency of the United States, to enter into 
        personal service contracts with individuals to perform services 
        in support of the Department of Defense or such other department 
        or agency, as the case may be.''.
SEC. 834. REQUIREMENTS REGARDING INSENSITIVE MUNITIONS.

    (a) Requirement To Ensure Safety.--(1) Chapter 141 of title 10, 
United States Code, is amended by inserting after section 2388 the 
following new section:
``Sec. 2389. Ensuring safety regarding insensitive munitions

    ``The Secretary of Defense shall ensure, to the extent practicable, 
that insensitive munitions under development or procurement are safe 
throughout development and fielding when subject to unplanned 
stimuli.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2388 the 
following new item:

``2389. Ensuring safety regarding insensitive munitions.''.

    (b) Report <<NOTE: 10 USC 2389 note.>> Requirement.--At the same 
time that the budgets for fiscal years 2003 through 2005 are submitted 
to Congress under section 1105(a) of title 31, United States Code, the 
Secretary of Defense shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on insensitive 
munitions. The reports shall include the following:
            (1) The number of waivers granted pursuant to Department of 
        Defense Regulation 5000.2-R (June 2001) during the preceding 
        fiscal year, together with a discussion of the justifications 
        for the waivers.
            (2) Identification of the funding proposed for insensitive 
        munitions in the budget with which the report is submitted, 
        together with an explanation of the proposed funding.
SEC. 835. INAPPLICABILITY OF LIMITATION TO SMALL PURCHASES OF 
                        MINIATURE OR INSTRUMENT BALL OR ROLLER 
                        BEARINGS UNDER CERTAIN CIRCUMSTANCES.

    (a) In General.--Section 2534 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(j) Inapplicability to Certain Contracts To Purchase Ball Bearings 
or Roller Bearings.--(1) This section does not apply with respect to a 
contract or subcontract to purchase items described in subsection (a)(5) 
(relating to ball bearings and roller bearings) for which--
            ``(A) the amount of the purchase does not exceed $2,500;
            ``(B) the precision level of the ball or roller bearings to 
        be procured under the contract or subcontract is rated lower 
        than the rating known as Annual Bearing Engineering Committee 
        (ABEC) 5 or Roller Bearing Engineering Committee (RBEC) 5, or an 
        equivalent of such rating;

[[Page 115 STAT. 1192]]

            ``(C) at least two manufacturers in the national technology 
        and industrial base that are capable of producing the ball or 
        roller bearings have not responded to a request for quotation 
        issued by the contracting activity for that contract or 
        subcontract; and
            ``(D) no bearing to be procured under the contract or 
        subcontract has a basic outside diameter (exclusive of flange 
        diameters) in excess of 30 millimeters.

    ``(2) Paragraph (1) does not apply to a purchase if such purchase 
would result in the total amount of purchases of ball bearings and 
roller bearings to satisfy requirements under Department of Defense 
contracts, using the authority provided in such paragraph, to exceed 
$200,000 during the fiscal year of such purchase.''.
    (b) Applicability.--Subsection (j) <<NOTE: 10 USC 2534 note.>> of 
such section 2534 (as added by subsection (a)) shall apply with respect 
to a contract or subcontract to purchase ball bearings or roller 
bearings entered into after the date of the enactment of this Act.
SEC. 836. TEMPORARY <<NOTE: 10 USC 2302 note.>> EMERGENCY 
                        PROCUREMENT AUTHORITY TO FACILITATE THE 
                        DEFENSE AGAINST TERRORISM OR BIOLOGICAL OR 
                        CHEMICAL ATTACK.

    (a) Increased <<NOTE: Applicability.>> Flexibility for Use of 
Streamlined Procedures.--The following special authorities apply to 
procurements of property and services by or for the Department of 
Defense for which funds are obligated during fiscal year 2002 and 2003:
            (1) Micropurchase and simplified acquisition thresholds.--
        For any procurement of property or services for use (as 
        determined by the Secretary of Defense) to facilitate the 
        defense against terrorism or biological or chemical attack 
        against the United States--
                    (A) the amount specified in subsections (c), (d), 
                and (f) of section 32 of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 428) shall be deemed 
                to be $15,000 in the administration of that section with 
                respect to such procurement; and
                    (B) the term ``simplified acquisition threshold'' 
                means, in the case of any contract to be awarded and 
                performed, or purchase to be made--
                          (i) inside the United States in support of a 
                      contingency operation, $250,000; or
                          (ii) outside the United States in support of a 
                      contingency operation, $500,000.
            (2) Commercial item treatment for procurements of 
        biotechnology.--For any procurement of biotechnology property or 
        biotechnology services for use (as determined by the Secretary 
        of Defense) to facilitate the defense against terrorism or 
        biological attack against the United States, the procurement 
        shall be treated as being a procurement of commercial items.

    (b) Recommendations <<NOTE: Deadline. Reports.>> for Additional 
Emergency Procurement Authority To Support Anti-Terrorism Operations.--
Not later than March 1, 2002, the Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report containing the Secretary's recommendations for 
additional emergency procurement authority that the Secretary (subject 
to the direction of the President) determines necessary to support 
operations carried out to combat terrorism.

[[Page 115 STAT. 1193]]

    (c) Termination of Authority.--No contract may be entered into 
pursuant to the authority provided in subsection (a) after September 30, 
2003.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Deputy Under Secretary of Defense for Personnel and Readiness.
Sec. 902. Sense of Congress on functions of new Office of Force 
           Transformation in the Office of the Secretary of Defense.
Sec. 903. Suspension of reorganization of engineering and technical 
           authority policy within the Naval Sea Systems Command pending 
           report to congressional committees.

                      Subtitle B--Space Activities

Sec. 911. Joint management of space programs.
Sec. 912. Requirement to establish in the Air Force an officer career 
           field for space.
Sec. 913. Secretary of Defense report on space activities.
Sec. 914. Comptroller General assessment of implementation of 
           recommendations of Space Commission.
Sec. 915. Sense of Congress regarding officers recommended to be 
           appointed to serve as Commander of United States Space 
           Command.

                           Subtitle C--Reports

Sec. 921. Revised requirement for Chairman of the Joint Chiefs of Staff 
           to advise Secretary of Defense on the assignment of roles and 
           missions to the Armed Forces.
Sec. 922. Revised requirements for content of annual report on joint 
           warfighting experimentation.
Sec. 923. Repeal of requirement for one of three remaining required 
           reports on activities of Joint Requirements Oversight 
           Council.
Sec. 924. Revised joint report on establishment of national 
           collaborative information analysis capability.

                        Subtitle D--Other Matters

Sec. 931. Conforming amendments relating to change of name of Military 
           Airlift Command to Air Mobility Command.
Sec. 932. Organizational realignment for Navy Director for Expeditionary 
           Warfare.

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

SEC. 901. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND 
                        READINESS.

    (a) Establishment of Position.--(1) Chapter 4 of title 10, United 
States Code, is amended by inserting after section 136 the following new 
section:
``Sec. 136a. Deputy Under Secretary of Defense for Personnel and 
                    Readiness

    ``(a) <<NOTE: President. Congress.>> There is a Deputy Under 
Secretary of Defense for Personnel and Readiness, appointed from 
civilian life by the President, by and with the advice and consent of 
the Senate.

    ``(b) The Deputy Under Secretary of Defense for Personnel and 
Readiness shall assist the Under Secretary of Defense for Personnel and 
Readiness in the performance of the duties of that position. The Deputy 
Under Secretary of Defense for Personnel and Readiness shall act for, 
and exercise the powers of, the Under Secretary when the Under Secretary 
is absent or disabled.''.

[[Page 115 STAT. 1194]]

    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 136 the 
following new item:
``136a. Deputy Under Secretary of Defense for Personnel and 
            Readiness.''.

    (b) Executive Level IV.--Section 5315 of title 5, United States 
Code, is amended by inserting after ``Deputy Under Secretary of Defense 
for Policy.'' the following:
            ``Deputy Under Secretary of Defense for Personnel and 
        Readiness.''.

    (c) Reduction in Number of Assistant Secretaries of Defense.--(1) 
Section 138(a) of title 10, United States Code, is amended by striking 
``nine'' and inserting ``eight''.
    (2) Section 5315 of title 5, United States Code, is amended by 
striking ``(9)'' after ``Assistant Secretaries of Defense'' and 
inserting ``(8)''.
    (d) Effective <<NOTE: 5 USC 5315 note.>> Date.--The amendments made 
by subsection (c) shall take effect on the date on which a person is 
first appointed as Deputy Under Secretary of Defense for Personnel and 
Readiness.
SEC. 902. SENSE OF CONGRESS ON FUNCTIONS OF NEW OFFICE OF FORCE 
                        TRANSFORMATION IN THE OFFICE OF THE 
                        SECRETARY OF DEFENSE.

    (a) Findings.--Congress finds the following:
            (1) The Armed Forces should give careful consideration to 
        implementing transformation to meet operational challenges and 
        exploit opportunities resulting from changes in the threat 
        environment and the emergence of new technologies.
            (2) The Department of Defense 2001 Quadrennial Defense 
        Review Report, issued by the Secretary of Defense on September 
        30, 2001, states that ``The purpose of transformation is to 
        maintain or improve U.S. military preeminence in the face of 
        potential disproportionate discontinuous changes in the 
        strategic environment. Transformation must therefore be focused 
        on emerging strategic and operational challenges and the 
        opportunities created by these challenges.''.
            (3) That report further states that ``To support the 
        transformation effort, and to foster innovation and 
        experimentation, the Department will establish a new office 
        reporting directly to the Secretary and Deputy Secretary of 
        Defense.''.

    (b) Sense of Congress on Functions of Office of Force 
Transformation.--It is the sense of Congress that the Director of the 
Office of Force Transformation within the Office of the Secretary of 
Defense should advise the Secretary on--
            (1) development of force transformation strategies to ensure 
        that the military of the future is prepared to dissuade 
        potential military competitors and, if that fails, to fight and 
        win decisively across the spectrum of future conflict;
            (2) ensuring a continuous and broadly focused transformation 
        process;
            (3) service and joint acquisition and experimentation 
        efforts, funding for experimentation efforts, promising 
        operational concepts and technologies, and other transformation 
        activities, as appropriate; and
            (4) development of service and joint operational concepts, 
        transformation implementation strategies, and risk management 
        strategies.

[[Page 115 STAT. 1195]]

    (c) Sense of Congress on Funding.--It is the sense of Congress that 
the Secretary of Defense should consider providing funding adequate for 
sponsoring selective prototyping efforts, war games, and studies and 
analyses and for appropriate staffing, as recommended by the Director of 
the Office of Force Transformation referred to in subsection (b).
SEC. 903. SUSPENSION OF REORGANIZATION OF ENGINEERING AND 
                        TECHNICAL AUTHORITY POLICY WITHIN THE 
                        NAVAL SEA SYSTEMS COMMAND PENDING REPORT 
                        TO CONGRESSIONAL COMMITTEES.

    (a) Suspension of Reorganization.--During the period specified in 
subsection (b), the Secretary of the Navy may not grant final approval 
for any reorganization in engineering or technical authority policy for 
the Naval Sea Systems Command or any of the subsidiary activities of 
that command.
    (b) Report.--Subsection (a) <<NOTE: Applicability. Effective 
date. Termination date.>> applies during the period beginning on the 
date of the enactment of this Act and ending 45 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 of engineering and technical authority policy within 
the Naval Sea Systems Command.

                      Subtitle B--Space Activities

SEC. 911. JOINT MANAGEMENT OF SPACE PROGRAMS.

    (a) In General.--Part IV of subtitle A of title 10, United States 
Code, is amended by inserting after chapter 134 the following new 
chapter:

                      ``CHAPTER 135--SPACE PROGRAMS

``Sec.
``2271. Management of space programs: joint program offices and officer 
            management programs.
``Sec. 2271. Management of space programs: joint program offices 
                    and officer management programs

    ``(a) Joint Program Offices.--The Secretary of Defense shall take 
appropriate actions to ensure, to the maximum extent practicable, that 
space development and acquisition programs of the Department of Defense 
are carried out through joint program offices.
    ``(b) Officer Management Programs.--(1) The Secretary of Defense 
shall take appropriate actions to ensure, to the maximum extent 
practicable, that--
            ``(A) Army, Navy, and Marine Corps officers, as well as Air 
        Force officers, are assigned to the space development and 
        acquisition programs of the Department of Defense; and
            ``(B) Army, Navy, and Marine Corps officers, as well as Air 
        Force officers, are eligible, on the basis of qualification, to 
        hold leadership positions within the joint program offices 
        referred to in subsection (a).

    ``(2) The Secretary of Defense shall designate those positions in 
the Office of the National Security Space Architect of the Department of 
Defense (or any successor office) that qualify as joint duty assignment 
positions for purposes of chapter 38 of this title.''.

[[Page 115 STAT. 1196]]

    (b) Clerical Amendment.--The tables of chapters at the beginning of 
such subtitle and the beginning of part IV of such subtitle are amended 
by inserting after the item relating to chapter 134 the following new 
item:

``135. Space Programs............................................2271''.
SEC. 912. REQUIREMENT TO ESTABLISH IN THE AIR FORCE AN OFFICER 
                        CAREER FIELD FOR SPACE.

    (a) In General.--Chapter 807 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 8084. Officer career field for space

    ``The <<NOTE: Policies and procedures.>> Secretary of the Air Force 
shall establish and implement policies and procedures to develop a 
career field for officers in the Air Force with technical competence in 
space-related matters to have the capabilty to--
            ``(1) develop space doctrine and concepts of space 
        operations;
            ``(2) develop space systems; and
            ``(3) operate space systems.''.

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

``8084. Officer career field for space.''.

SEC. 913. SECRETARY OF DEFENSE REPORT ON SPACE ACTIVITIES.

    (a) Report.--(1) <<NOTE: Deadline.>> Not later than March 15, 2002, 
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 problems in the management and organization 
of the Department of Defense for space activities that were identified 
in the report of the Space Commission, including a description of the 
actions taken by the Secretary to address those problems.

    (2) For purposes of paragraph (1), the term ``report of the Space 
Commission'' means the report of the Commission To Assess United States 
National Security Space Management and Organization, dated January 11, 
2001, and submitted to Congress under section 1623 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
Stat. 815).
    (b) Matters To Be Included.--The report of the Secretary of Defense 
under subsection (a) shall include a description of, and rationale for, 
each of the following:
            (1) Actions taken by the Secretary of Defense to realign 
        management authorities and responsibilities for space programs 
        of the Department of Defense.
            (2) Steps taken to--
                    (A) establish a career field for officers in the Air 
                Force with technical competence in space-related 
                matters, in accordance with section 8084 of title 10, 
                United States Code, as added by section 912;
                    (B) ensure that officers in that career field are 
                treated fairly and objectively within the overall Air 
                Force officer personnel system; and
                    (C) ensure that the primary responsibility for 
                management of that career field is assigned 
                appropriately.
            (3) Other steps taken within the Air Force to ensure proper 
        priority for development of space systems.

[[Page 115 STAT. 1197]]

            (4) Steps taken to ensure that the interests of the Army, 
        the Navy, and the Marine Corps in development and acquisition of 
        space systems, and in the operations of space systems, are 
        protected.
            (5) Steps taken by the Office of the Secretary of Defense 
        and the military departments to ensure that the Army, Navy, and 
        Marine Corps continue to develop military and civilian personnel 
        with the required expertise in space system development, 
        acquisition, management, and operation.
            (6) Steps taken to ensure adequate oversight by the Office 
        of the Secretary of Defense of the actions of the Under 
        Secretary of the Air Force as the acquisition executive for 
        Department of Defense space programs.
            (7) Steps taken to improve oversight of the level of funding 
        provided for space programs and the level of personnel resources 
        provided for space programs.
SEC. 914. COMPTROLLER <<NOTE: 10 USC 2271 note.>> GENERAL 
                        ASSESSMENT OF IMPLEMENTATION OF 
                        RECOMMENDATIONS OF SPACE COMMISSION.

    (a) Assessment.--(1) The Comptroller General shall carry out an 
assessment through February 15, 2003, of the actions taken by the 
Secretary of Defense in implementing the recommendations in the report 
of the Space Commission that are applicable to the Department of 
Defense.
    (2) For purposes of paragraph (1), the term ``report of the Space 
Commission'' means the report of the Commission To Assess United States 
National Security Space Management and Organization, dated January 11, 
2001, and submitted to Congress under section 1623 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
Stat. 815).
    (b) Reports.--Not <<NOTE: Deadlines.>> later than February 15 of 
each of 2002 and 2003, the Comptroller General shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the assessment 
carried out under subsection (a). Each report shall set forth the 
results of the assessment as of the date of such report.
SEC. 915. SENSE OF CONGRESS REGARDING OFFICERS RECOMMENDED TO BE 
                        APPOINTED TO SERVE AS COMMANDER OF UNITED 
                        STATES SPACE COMMAND.

    It is the sense of Congress that the position of commander of the 
United States Space Command, a position of importance and responsibility 
designated by the President under section 601 of title 10, United States 
Code, to carry the grade of general or admiral and covered by section 
604 of that title, relating to recommendations by the Secretary of 
Defense for appointment of officers to certain four-star joint officer 
positions, should be filled by the best qualified officer of the Army, 
Navy, Air Force, or Marine Corps, rather than by officers from the same 
armed force that has traditionally provided officers for that position.

[[Page 115 STAT. 1198]]

                           Subtitle C--Reports

SEC. 921. REVISED REQUIREMENT FOR CHAIRMAN OF THE JOINT CHIEFS OF 
                        STAFF TO ADVISE SECRETARY OF DEFENSE ON 
                        THE ASSIGNMENT OF ROLES AND MISSIONS TO 
                        THE ARMED FORCES.

    (a) Assessment During Quadrennial Defense Review.--Section 118(e) of 
title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e) CJCS Review.--'';
            (2) by designating the second and third sentences as 
        paragraph (3); and
            (3) by inserting after paragraph (1), as designated by 
        paragraph (1) of this subsection, the following new paragraph:

    ``(2) The Chairman shall include as part of that assessment the 
Chairman's assessment of the assignment of functions (or roles and 
missions) to the armed forces, together with any recommendations for 
changes in assignment that the Chairman considers necessary to achieve 
maximum efficiency of the armed forces. In preparing the assessment 
under this paragraph, the Chairman shall consider (among other matters) 
the following:
            ``(A) Unnecessary duplication of effort among the armed 
        forces.
            ``(B) Changes in technology that can be applied effectively 
        to warfare.''.

    (b) Repeal of Requirement for Triennial Report on Assignment of 
Roles and Missions.--Section 153 of such title is amended--
            (1) by striking ``(a) Planning; Advice; Policy 
        Formulation.--''; and
            (2) by striking subsection (b).

    (c) Assessment <<NOTE: 10 USC 118 note.>> With Respect to 2001 
QDR.--With respect to the 2001 Quadrennial Defense Review, the Chairman 
of the Joint Chiefs of Staff shall submit to Congress a separate 
assessment of functions (or roles and missions) of the Armed Forces in 
accordance with paragraph (2) of section 118(e) of title 10, United 
States Code, as added by subsection (a)(3). <<NOTE: Deadline.>> Such 
assessment shall be based on the findings in the 2001 Quadrennial 
Defense Review, issued by the Secretary of Defense on September 30, 
2001, and shall be submitted to Congress not later than one year after 
the date of the enactment of this Act.
SEC. 922. REVISED REQUIREMENTS FOR CONTENT OF ANNUAL REPORT ON 
                        JOINT WARFIGHTING EXPERIMENTATION.

    Section 485(b) of title 10, United States Code, is amended--
            (1) in paragraph (4)(E)--
                    (A) by inserting ``(by lease or by purchase)'' after 
                ``acquire''; and
                    (B) by inserting ``(including any prototype)'' after 
                ``or equipment''; and
            (2) by adding at the end the following new paragraph:
            ``(6) A specific assessment of whether there is a need for a 
        major force program for funding--
                    ``(A) joint warfighting experimentation; and
                    ``(B) the development and acquisition of any 
                technology the value of which has been empirically 
                demonstrated through such experimentation.''.

[[Page 115 STAT. 1199]]

SEC. 923. REPEAL <<NOTE: 10 USC 181 note.>> OF REQUIREMENT FOR ONE 
                        OF THREE REMAINING REQUIRED REPORTS ON 
                        ACTIVITIES OF JOINT REQUIREMENTS OVERSIGHT 
                        COUNCIL.

    Section 916 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 
Stat. 1654A-231) is amended--
            (1) in the section heading, by striking ``semiannual 
        report'' and inserting ``reports'';
            (2) in subsection (a)--
                    (A) by striking ``Semiannual Report'' in the 
                subsection heading and inserting ``Reports Required''; 
                and
                    (B) by striking ``five semiannual''; and
            (3) in subsection (b)--
                    (A) by striking ``September 1, 2002,''; and
                    (B) by striking the period at the end of the last 
                sentence and inserting ``, except that the last report 
                shall cover all of the preceding fiscal year.''.
SEC. 924. REVISED JOINT REPORT ON ESTABLISHMENT OF NATIONAL 
                        COLLABORATIVE INFORMATION ANALYSIS 
                        CAPABILITY.

    (a) Revised Report.--At the same time as the submission of the 
budget for fiscal year 2003 under section 1105 of title 31, United 
States Code, the Secretary of Defense and the Director of Central 
Intelligence shall submit to the congressional defense committees and 
the congressional intelligence committees a revised report assessing 
alternatives for the establishment of a national collaborative 
information analysis capability.
    (b) Matters Included.--The revised report shall cover the same 
matters required to be included in the DOD/CIA report, except that the 
alternative architectures assessed in the revised report shall be 
limited to architectures that include the participation of all Federal 
agencies involved in the collection of intelligence. The revised report 
shall also identify any issues that would require legislative or 
regulatory changes in order to implement the preferred architecture 
identified in the revised report.
    (c) Officials To Be Consulted.--The revised report shall be prepared 
after consultation with all appropriate Federal officials, including the 
following:
            (1) The Secretary of the Treasury.
            (2) The Secretary of Commerce.
            (3) The Secretary of State.
            (4) The Attorney General.
            (5) The Director of the Federal Bureau of Investigation.
            (6) The Administrator of the Drug Enforcement 
        Administration.

    (d) Definitions.--In this section:
            (1) Dod/cia report.--The term ``DOD/CIA report'' means the 
        joint report required by section 933 of the Floyd D. Spence 
        National Defense Authorization Act for Fiscal Year 2001 (as 
        enacted into law by Public Law 106-398; 114 Stat. 1654A-237).
            (2) Congressional intelligence committees.--The term 
        ``congressional intelligence committees'' means the Select 
        Committee on Intelligence of the Senate and the Permanent Select 
        Committee on Intelligence of the House of Representatives.

[[Page 115 STAT. 1200]]

                        Subtitle D--Other Matters

SEC. 931. CONFORMING AMENDMENTS RELATING TO CHANGE OF NAME OF 
                        MILITARY AIRLIFT COMMAND TO AIR MOBILITY 
                        COMMAND.

    (a) Current References in Title 10, United States Code.--Section 
2554(d) of title 10, United States Code, and section 2555(a) of such 
title (relating to transportation services for international Girl Scout 
events) are amended by striking ``Military Airlift Command'' and 
inserting ``Air Mobility Command''.
    (b) Repeal of Obsolete Provision.--Section 8074 of such title is 
amended by striking subsection (c).
    (c) References in Title 37, United States Code.--Sections 430(c) and 
432(b) of title 37, United States Code, are amended by striking 
``Military Airlift Command'' and inserting ``Air Mobility Command''.
SEC. 932. ORGANIZATIONAL REALIGNMENT FOR NAVY DIRECTOR FOR 
                        EXPEDITIONARY WARFARE.

    Section 5038(a) of title 10, United States Code, is amended by 
striking ``Office of the Deputy Chief of Naval Operations for Resources, 
Warfare Requirements, and Assessments'' and inserting ``office of the 
Deputy Chief of Naval Operations with responsibility for warfare 
requirements and programs''.

                       TITLE X--GENERAL PROVISIONS

          Subtitle A--Department of Defense Civilian Personnel

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
                      2001.
Sec. 1004. United States contribution to NATO common-funded budgets in 
                      fiscal year 2002.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
                      operations for fiscal year 2002.
Sec. 1006. Maximum amount for National Foreign Intelligence Program.
Sec. 1007. Clarification of applicability of interest penalties for late 
                      payment of interim payments due under contracts 
                      for services.
Sec. 1008. Reliability of Department of Defense financial statements.
Sec. 1009. Financial Management Modernization Executive Committee and 
                      financial feeder systems compliance process.
Sec. 1010. Authorization of funds for ballistic missile defense programs 
                      or combating terrorism programs of the Department 
                      of Defense.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority to transfer naval vessels to certain foreign 
                      countries.
Sec. 1012. Sale of Glomar Explorer to the lessee.
Sec. 1013. Leasing of Navy ships for university national oceanographic 
                      laboratory system.
Sec. 1014. Increase in limitations on administrative authority of the 
                      Navy to settle admiralty claims.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Extension and restatement of authority to provide Department 
                      of Defense support for counter-drug activities of 
                      other governmental agencies.
Sec. 1022. Extension of reporting requirement regarding Department of 
                      Defense expenditures to support foreign counter-
                      drug activities.
Sec. 1023. Authority to transfer Tracker aircraft currently used by 
                      Armed Forces for counter-drug purposes.
Sec. 1024. Limitation on use of funds for operation of Tethered Aerostat 
                      Radar System pending submission of required 
                      report.

[[Page 115 STAT. 1201]]

                      Subtitle D--Strategic Forces

Sec. 1031. Repeal of limitation on retirement or dismantlement of 
                      strategic nuclear delivery systems.
Sec. 1032. Air Force bomber force structure.
Sec. 1033. Additional element for revised nuclear posture review.
Sec. 1034. Report on options for modernization and enhancement of 
                      missile wing helicopter support.

           Subtitle E--Other Department of Defense Provisions

Sec. 1041. Secretary of Defense recommendation on need for Department of 
                      Defense review of proposed Federal agency actions 
                      to consider possible impact on national defense.
Sec. 1042. Department of Defense reports to Congress to be accompanied 
                      by electronic version upon request.
Sec. 1043. Department of Defense gift authorities.
Sec. 1044. Acceleration of research, development, and production of 
                      medical countermeasures for defense against 
                      biological warfare agents.
Sec. 1045. Chemical and biological protective equipment for military 
                      personnel and civilian employees of the Department 
                      of Defense.
Sec. 1046. Sale of goods and services by Naval Magazine, Indian Island, 
                      Alaska.
Sec. 1047. Report on procedures and guidelines for embarkation of 
                      civilian guests on naval vessels for public 
                      affairs purposes.
Sec. 1048. Technical and clerical amendments.
Sec. 1049. Termination of referendum requirement regarding continuation 
                      of military training on island of Vieques, Puerto 
                      Rico, and imposition of additional conditions on 
                      closure of live-fire training range.

                        Subtitle F--Other Matters

Sec. 1061. Assistance for firefighters.
Sec. 1062. Extension of times for Commission on the Future of the United 
                      States Aerospace industry to report and to 
                      terminate.
Sec. 1063. Appropriations to Radiation Exposure Compensation Trust Fund.
Sec. 1064. Waiver of vehicle weight limits during periods of national 
                      emergency.
Sec. 1065. Repair, restoration, and preservation of Lafayette Escadrille 
                      Memorial, Marnes-la-Coquette, France.

                      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 
2002 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the authorization 
to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$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).

[[Page 115 STAT. 1202]]

SEC. 1002. INCORPORATION <<NOTE: 10 USC 114 note.>> 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 S. 1438 of the One Hundred Seventh 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 <<NOTE: President.>> 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 SUPPLEMENTAL APPROPRIATIONS FOR FISCAL 
                          YEAR 2001.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2001 in the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398) 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 title I of the Supplemental 
Appropriations Act, 2001 (Public Law 107-20).
SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
                          BUDGETS IN FISCAL YEAR 2002.

    (a) Fiscal Year 2002 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2002 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2001, of funds appropriated for fiscal years before 
        fiscal year 2002 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), $708,000 for 
        the Civil Budget.

[[Page 115 STAT. 1203]]

            (2) Of the amount provided in section 301(a)(1), 
        $175,849,000 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 2002.

    (a) Limitation.--Of the amounts authorized to be appropriated by 
section 301(a)(24) for the Overseas Contingency Operations Transfer 
Fund--
            (1) no more than $1,315,600,000 may be obligated for 
        incremental costs of the Armed Forces for Bosnia peacekeeping 
        operations; and
            (2) no more than $1,528,600,000 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:
                    (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 2002.
                    (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 2002 costs associated with United States military 
        forces participating in, or supporting, Bosnia or Kosovo 
        peacekeeping operations.

[[Page 115 STAT. 1204]]

    (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. MAXIMUM AMOUNT FOR NATIONAL FOREIGN INTELLIGENCE 
                          PROGRAM.

    The total amount authorized to be appropriated for the National 
Foreign Intelligence Program for fiscal year 2002 is the sum of the 
following:
            (1) The total amount set forth for the National Foreign 
        Intelligence Program for fiscal year 2002 in the message of the 
        President to Congress transmitted by the President on June 27, 
        2001, and printed as House Document 107-92, captioned 
        ``Communication of the President of the United States 
        Transmitting Requests for Fiscal Year 2002 Budget Amendments for 
        the Department of Defense''.
            (2) The total amount, if any, appropriated for the National 
        Foreign Intelligence Program for fiscal year 2002 pursuant to 
        the 2001 Emergency Supplemental Appropriations Act for Recovery 
        from and Response to Terrorist Attacks on the United States 
        (Public Law 107-38; 115 Stat. 220-221).
            (3) The total amount, if any, appropriated for the National 
        Foreign Intelligence Program for fiscal year 2002 in any law 
        making supplemental appropriations for fiscal year 2002 that is 
        enacted during the second session of the 107th Congress.
SEC. 1007. CLARIFICATION <<NOTE: 31 USC 3902 note.>> OF 
                          APPLICABILITY OF INTEREST PENALTIES FOR 
                          LATE PAYMENT OF INTERIM PAYMENTS DUE 
                          UNDER CONTRACTS FOR SERVICES.

    Section 1010(d) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-251) is amended by inserting before the 
period at the end of the first sentence the following: ``, and shall 
apply with respect to interim payments that are due on or after such 
date under contracts entered into before, on, or after that date''.
SEC. 1008. RELIABILITY <<NOTE: 10 USC 2222 note.>> OF DEPARTMENT 
                          OF DEFENSE FINANCIAL STATEMENTS.

    (a) Annual <<NOTE: Deadline.>> Report on Reliability.--(1) Not later 
than September 30 of each year but subject to subsection (f), the 
Secretary of Defense shall submit to the recipients specified in 
paragraph (3) a report on the reliability of the Department of Defense 
financial statements, including the financial statements of each 
component of the Department that is required to prepare a financial 
statement under section 3515(c) of title 31, United States Code.

    (2) The annual report shall contain the following:

[[Page 115 STAT. 1205]]

            (A) A conclusion regarding whether the policies and 
        procedures of the Department of Defense, and the systems used 
        within the Department of Defense, for the preparation of 
        financial statements allow the achievement of reliability in 
        those financial statements.
            (B) For each of the financial statements prepared for the 
        Department of Defense for the fiscal year in which the report is 
        submitted, a conclusion regarding the expected reliability of 
        the financial statement (evaluated on the basis of Office of 
        Management and Budget guidance on financial statements), 
        together with a discussion of the major deficiencies to be 
        expected in the statement.
            (C) A summary of the specific sections of the annual 
        Financial Management Improvement Plan of the Department of 
        Defense, current as of the date of the report, that--
                    (i) detail the priorities, milestones, and measures 
                of success that apply to the preparation of the 
                financial statements;
                    (ii) detail the planned improvements in the process 
                for the preparation of financial statements that are to 
                be implemented within 12 months after the date on which 
                the plan is issued; and
                    (iii) provide an estimate of when each financial 
                statement will convey reliable information.

    (3) The annual report shall be submitted to the following:
            (A) The Committee on Armed Services and the Committee on 
        Governmental Affairs of the Senate.
            (B) The Committee on Armed Services and the Committee on 
        Government Reform of the House of Representatives.
            (C) The Director of the Office of Management and Budget.
            (D) The Secretary of the Treasury.
            (E) The Comptroller General of the United States.

    (4) The Secretary of Defense shall make a copy of the annual report 
available to the Inspector General of the Department of Defense.
    (b) Minimization of Use of Resources for Unreliable Financial 
Statements.--(1) With respect to each financial statement for a fiscal 
year that the Secretary of Defense assesses as being expected to be 
unreliable in the annual report under subsection (a), the Under 
Secretary of Defense (Comptroller) shall take appropriate actions to 
minimize, consistent with the benefits to be derived, the resources 
(including contractor support) that are used to develop, compile, and 
report the financial statement.
    (2) With the annual budget justifications for the Department of 
Defense submitted to Congress each year, the Under Secretary of Defense 
(Comptroller) shall submit, with respect to the fiscal year in which 
submitted, the preceding fiscal year, and the following fiscal year, the 
following information:
            (A) An estimate of the resources that the Department of 
        Defense is saving or expects to save as a result of actions 
        taken and to be taken under paragraph (1) with respect to the 
        preparation of financial statements.
            (B) A discussion of how the resources saved as estimated 
        under subparagraph (A) have been redirected or are to be 
        redirected from the preparation of financial statements to the 
        improvement of systems underlying financial management within 
        the Department of Defense and to the improvement

[[Page 115 STAT. 1206]]

        of financial management policies, procedures, and internal 
        controls within the Department of Defense.

    (c) Information <<NOTE: Deadline.>> to Auditors.--Not later than 
October 31 of each year, the Under Secretary of Defense (Comptroller) 
and the Assistant Secretary of each military department with 
responsibility for financial management and comptroller functions shall 
each provide to the auditors of the financial statement of that 
official's department for the fiscal year ending during the preceding 
month that official's preliminary management representation, in writing, 
regarding the expected reliability of the financial statement. The 
representation shall be consistent with guidance issued by the Director 
of the Office of Management and Budget and shall include the basis for 
the reliability assessment stated in the representation.

    (d) Limitation on Inspector General Audits.--(1) On each financial 
statement that an official asserts is unreliable under subsection (b) or 
(c), the Inspector General of the Department of Defense shall only 
perform the audit procedures required by generally accepted government 
auditing standards consistent with any representation made by 
management.
    (2) With the annual budget justifications for the Department of 
Defense submitted to Congress each year, the Under Secretary of Defense 
(Comptroller) shall submit, with respect to the fiscal year in which 
submitted, the preceding fiscal year, and the following fiscal year, 
information which the Inspector General shall report to the Under 
Secretary, as follows:
            (A) An estimate of the resources that the Inspector General 
        is saving or expects to save as a result of actions taken and to 
        be taken under paragraph (1) with respect to the auditing of 
        financial statements.
            (B) A discussion of how the resources saved as estimated 
        under subparagraph (A) have been redirected or are to be 
        redirected from the auditing of financial statements to the 
        oversight and improvement of systems underlying financial 
        management within the Department of Defense and to the oversight 
        and improvement of financial management policies, procedures, 
        and internal controls within the Department of Defense.

    (e) Effective <<NOTE: Applicability.>> Date.--The requirements of 
this section shall apply with respect to financial statements for fiscal 
years after fiscal year 2001 and to the auditing of those financial 
statements.

    (f) Termination of Applicability.--If the Secretary of Defense 
certifies to the Inspector General of the Department of Defense that the 
financial statement for the Department of Defense, or a financial 
statement for a component of the Department of Defense, for a fiscal 
year is reliable, this section shall not apply with respect to that 
financial statement or to any successive financial statement for the 
Department of Defense, or for that component, as the case may be, for 
any later fiscal year.
SEC. 1009. FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE COMMITTEE 
                          AND FINANCIAL FEEDER SYSTEMS COMPLIANCE 
                          PROCESS.

    (a) Executive Committee.--(1) Chapter 7 of title 10, United States 
Code, is amended by adding at the end the following new section:

[[Page 115 STAT. 1207]]

``Sec. 185. Financial Management Modernization Executive Committee

    ``(a) Establishment of Financial Management Modernization Executive 
Committee.--(1) The Secretary of Defense shall establish a Financial 
Management Modernization Executive Committee.
    ``(2) The Committee shall be composed of the following:
            ``(A) The Under Secretary of Defense (Comptroller), who 
        shall be the chairman of the committee.
            ``(B) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            ``(C) The Under Secretary of Defense for Personnel and 
        Readiness.
            ``(D) The Chief Information Officer of the Department of 
        Defense.
            ``(E) Such additional personnel of the Department of Defense 
        (including appropriate personnel of the military departments and 
        Defense Agencies) as are designated by the Secretary.

    ``(3) The Committee shall be accountable to the Senior Executive 
Council (composed of the Secretary of Defense, the Deputy Secretary of 
Defense, the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, the Secretary of the Army, the Secretary of the Navy, and the 
Secretary of the Air Force).
    ``(b) Duties.--In addition to other matters assigned to it by the 
Secretary of Defense, the Committee shall have the following duties:
            ``(1) To establish a process that ensures that each critical 
        accounting system, financial management system, and data feeder 
        system of the Department of Defense is compliant with applicable 
        Federal financial management and reporting requirements.
            ``(2) To develop a management plan for the implementation of 
        the financial and data feeder systems compliance process 
        established pursuant to paragraph (1).
            ``(3) To supervise and monitor the actions that are 
        necessary to implement the management plan developed pursuant to 
        paragraph (2), as approved by the Secretary of Defense.
            ``(4) To ensure that a Department of Defense financial 
        management enterprise architecture is developed and maintained 
        in accordance with--
                    ``(A) the overall business process transformation 
                strategy of the Department; and
                    ``(B) the architecture framework of the Department 
                for command, control, communications, computers, 
                intelligence, surveillance, and reconnaissance 
                functions.
            ``(5) To ensure that investments in existing or proposed 
        financial management systems for the Department comply with the 
        overall business practice transformation strategy of the 
        Department and the financial management enterprise architecture 
        developed under paragraph (4).
            ``(6) To provide an annual accounting of each financial and 
        data feeder system investment technology project to ensure that 
        each such project is being implemented at acceptable cost and 
        within a reasonable schedule and is contributing to tangible, 
        observable improvements in mission performance.

[[Page 115 STAT. 1208]]

    ``(c) Management Plan for Implementation of Financial Data Feeder 
Systems Compliance Process.--The management plan developed under 
subsection (b)(2) shall include among its principal elements at least 
the following elements:
            ``(1) <<NOTE: Records.>> A requirement for the establishment 
        and maintenance of a complete inventory of all budgetary, 
        accounting, finance, and data feeder systems that support the 
        transformed business processes of the Department and produce 
        financial statements.
            ``(2) A phased process (consisting of the successive phases 
        of Awareness, Evaluation, Renovation, Validation, and 
        Compliance) for improving systems referred to in paragraph (1) 
        that provides for mapping financial data flow from the cognizant 
        Department business function source (as part of the overall 
        business process transformation strategy of the Department) to 
        Department financial statements.
            ``(3) <<NOTE: Reports.>> Periodic submittal to the Secretary 
        of Defense, the Deputy Secretary of Defense, and the Senior 
        Executive Council (or any combination thereof) of reports on the 
        progress being made in achieving financial management 
        transformation goals and milestones included in the annual 
        financial management improvement plan in 2002.
            ``(4) Documentation of the completion of each phase 
        specified in paragraph (2) of improvements made to each 
        accounting, finance, and data feeder system of the Department.
            ``(5) Independent audit by the Inspector General of the 
        Department, the audit agencies of the military departments, and 
        private sector firms contracted to conduct validation audits (or 
        any combination thereof) at the validation phase for each 
        accounting, finance, and data feeder system.

    ``(d) Data Feeder Systems.--In this section, the term `data feeder 
system' has the meaning given that term in section 2222(c)(2) of this 
title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``185. Financial Management Modernization Executive Committee.''.

    (b) Annual Financial Management Improvement Plan.--(1) Subsection 
(a) of section 2222 of title 10, United States Code, is amended--
            (A) by striking ``Biennial'' in the subsection heading and 
        inserting ``Annual'';
            (B) by striking ``a biennial'' in the first sentence and 
        inserting ``an annual''; and
            (C) by striking ``even-numbered'' in the second sentence.

    (2) Subsection (c) of such section is amended--
            (A) by redesignating paragraph (2) as paragraph (3); and
            (B) by inserting after paragraph (1) the following new 
        paragraph (2):

    ``(2) In each such plan, the Secretary shall include the following:
            ``(A) A description of the actions to be taken in the fiscal 
        year beginning in the year in which the plan is submitted to 
        implement the annual performance goals, and the performance 
        milestones, included in the financial management improvement 
        plan submitted in 2002 pursuant to paragraphs (1) and (2), 
        respectively, of section 1009(c) of the National Defense 
        Authorization Act for Fiscal Year 2002.

[[Page 115 STAT. 1209]]

            ``(B) An estimate of the amount expended in the fiscal year 
        ending in the year in which the plan is submitted to implement 
        the financial management improvement plan in such preceding 
        calendar year, set forth by system.
            ``(C) If an element of the financial management improvement 
        plan submitted in the fiscal year ending in the year in which 
        the plan is submitted was not implemented, a justification for 
        the lack of implementation of such element.''.

    (3)(A) The heading of such section is amended to read as follows:
``Sec. 2222. Annual financial management improvement plan''.

    (B) The item relating to section 2222 in the table of sections at 
the beginning of chapter 131 of such title is amended to read as 
follows:

``2222. Annual financial management improvement plan.''.

    (c) Additional <<NOTE: 10 USC 2222 note.>> Elements for Financial 
Management Improvement Plan in 2002.--In the annual financial management 
improvement plan submitted under section 2222 of title 10, United States 
Code, in 2002, the Secretary of Defense shall include the following:
            (1) Measurable annual performance goals for improvement of 
        the financial management of the Department of Defense.
            (2) Performance milestones for initiatives under that plan 
        for transforming the financial management operations of the 
        Department of Defense and for implementing a financial 
        management architecture for the Department.
            (3) An assessment of the anticipated annual cost of any 
        plans for transforming the financial management operations of 
        the Department of Defense and for implementing a financial 
        management architecture for the Department.
            (4) A discussion of the following:
                    (A) The roles and responsibilities of appropriate 
                Department officials to ensure the supervision and 
                monitoring of the compliance of each accounting, 
                finance, and data feeder system of the Department with--
                          (i) the business practice transformation 
                      strategy of the Department;
                          (ii) the financial management architecture of 
                      the Department; and
                          (iii) applicable Federal financial management 
                      systems and reporting requirements.
                    (B) A summary of the actions taken by the Financial 
                Management Modernization Executive Committee to ensure 
                that such systems comply with--
                          (i) the business practice transformation 
                      strategy of the Department;
                          (ii) the financial management architecture of 
                      the Department; and
                          (iii) applicable Federal financial management 
                      systems and reporting requirements.

    (d) Effective <<NOTE: 10 USC 2222 note.>> Date.--Paragraph (2) of 
section 2222(c) of title 10, United States Code, as added by subsection 
(b)(2), shall not apply with respect to the annual financial management 
improvement plan submitted under section 2222 of title 10, United States 
Code, in 2002.

[[Page 115 STAT. 1210]]

SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE DEFENSE 
                          PROGRAMS OR COMBATING TERRORISM PROGRAMS 
                          OF THE DEPARTMENT OF DEFENSE.

    (a) Authorization.--There is hereby authorized to be appropriated 
for fiscal year 2002 for the military functions of the Department of 
Defense, in addition to amounts authorized to be appropriated in titles 
I, II, and III, the amount of $1,300,000,000, to be available, in 
accordance with subsection (b), for the following purposes:
            (1) Research, development, test, and evaluation for 
        ballistic missile defense programs of the Ballistic Missile 
        Defense Organization.
            (2) Activities of the Department of Defense for combating 
        terrorism.

    (b) Allocation by President.--(1) The amount authorized to be 
appropriated by subsection (a) shall be allocated between the purposes 
stated in paragraphs (1) and (2) of that subsection in such manner as 
may be determined by the President based upon the national security 
interests of the United States. The amount authorized in subsection (a) 
shall not be available for any other purpose.
    (2) Upon an allocation of such amount by the President, the amount 
so allocated shall be transferred to the appropriate regular 
authorization account under this division in the same manner as provided 
in section 1001. Transfers under this paragraph shall not be counted for 
the purposes of section 1001(a)(2).
    (3) <<NOTE: Deadline. Reports.>> Not later than 15 days after an 
allocation is made under this subsection, the Secretary of Defense shall 
submit to the congressional defense committees a report describing the 
allocation and the Secretary's plan for the use by the Department of 
Defense of the funds made available pursuant to such allocation.

                 Subtitle B--Naval Vessels and Shipyards

SEC. 1011. 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) Poland.--To the Government of Poland, the OLIVER HAZARD 
        PERRY class guided missile frigate WADSWORTH (FFG 9).
            (2) Turkey.--To the Government of Turkey, the KNOX class 
        frigates CAPODANNO (FF 1093), THOMAS C. HART (FF 1092), DONALD 
        B. BEARY (FF 1085), McCANDLESS (FF 1084), REASONER (FF 1063), 
        and BOWEN (FF 1079).

    (b) Transfers by Sale.--The President is authorized to transfer 
vessels to foreign governments and foreign governmental entities on a 
sale basis under section 21 of the Arms Export Control Act (22 U.S.C. 
2761) as follows:
            (1) Taiwan.--To the Taipei Economic and Cultural 
        Representative Office in the United States (which is the Taiwan 
        instrumentality designated pursuant to section 10(a) of the 
        Taiwan Relations Act), the KIDD class guided missile

[[Page 115 STAT. 1211]]

        destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 995), 
        and CHANDLER (DDG 996).
            (2) Turkey.--To the Government of Turkey, the OLIVER HAZARD 
        PERRY class guided missile frigates ESTOCIN (FFG 15) and SAMUEL 
        ELIOT MORISON (FFG 13).

    (c) Grants Not Counted in Annual Total of Transferred Excess Defense 
Articles.--The value of a vessel transferred to another country on a 
grant basis 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.
    (d) Costs of Transfers on Grant Basis.--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).
    (e) Waiver Authority.--For a vessel transferred on a grant basis 
pursuant to authority provided by subsection (a)(2), the President may 
waive reimbursement of charges for the lease of that vessel under 
section 61(a) of the Arms Export Control Act (22 U.S.C. 2796(a)) for a 
period of one year before the date of the transfer of that vessel.
    (f) Repair <<NOTE: President.>> 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.

    (g) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the two-year period 
beginning on the date of the enactment of this Act.
SEC. 1012. SALE OF GLOMAR EXPLORER TO THE LESSEE.

    (a) Authority.--The Secretary of the Navy may convey by sale all 
right, title, and interest of the United States in and to the vessel 
GLOMAR EXPLORER (AG 193) to the person who, on the date of the enactment 
of this Act, is the lessee of the vessel.
    (b) Consideration.--The price for which the vessel is sold under 
subsection (a) shall be a fair and reasonable amount determined by the 
Secretary of the Navy.
    (c) Additional Terms.--The Secretary may require such additional 
terms in connection with the conveyance authorized by this section as 
the Secretary considers appropriate.
    (d) Proceeds of Sale.--Amounts received by the Secretary from the 
sale under this section may, to the extent provided in an appropriations 
Act, be credited to the appropriation available for providing salvage 
facilities under section 7361 of title 10, United States Code, and are 
authorized to remain available until expended for that purpose.

[[Page 115 STAT. 1212]]

SEC. 1013. LEASING OF NAVY SHIPS FOR UNIVERSITY NATIONAL 
                          OCEANOGRAPHIC LABORATORY SYSTEM.

    Subsection (g) of section 2667 of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(3) Paragraph (1) does not apply to a renewal or extension of a 
lease by the Secretary of the Navy with a selected institution for 
operation of a ship within the University National Oceanographic 
Laboratory System if, under the lease, each of the following applies:
            ``(A) Use of the ship is restricted to federally supported 
        research programs and to non-Federal uses under specific 
        conditions with approval by the Secretary of the Navy.
            ``(B) Because of the anticipated value to the Navy of the 
        oceanographic research and training that will result from the 
        ship's operation, no monetary lease payments are required from 
        the lessee under the initial lease or under any renewal or 
        extension.
            ``(C) The lessee is required to maintain the ship in a good 
        state of repair, readiness, and efficient operating condition, 
        conform to all applicable regulatory requirements, and assume 
        full responsibility for the safety of the ship, its crew, and 
        scientific personnel aboard.''.
SEC. 1014. INCREASE IN LIMITATIONS ON ADMINISTRATIVE AUTHORITY OF 
                          THE NAVY TO SETTLE ADMIRALTY CLAIMS.

    (a) Admiralty Claims Against the United States.--Section 7622 of 
title 10, United States Code, is amended--
            (1) in subsections (a) and (b), by striking ``$1,000,000'' 
        and inserting ``$15,000,000''; and
            (2) in subsection (c), by striking ``$100,000'' and 
        inserting ``$1,000,000''.

    (b) Admiralty Claims by the United States.--Section 7623 of such 
title is amended--
            (1) in subsection (a)(2), by striking ``$1,000,000'' and 
        inserting ``$15,000,000''; and
            (2) in subsection (c), by striking ``$100,000'' and 
        inserting ``$1,000,000''.

    (c) Effective <<NOTE: 10 USC 7622 note.>> Date.--The amendments made 
by this section shall apply with respect to any claim accruing on or 
after February 1, 2001.

                   Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION AND RESTATEMENT OF AUTHORITY TO PROVIDE 
                          DEPARTMENT OF DEFENSE SUPPORT FOR 
                          COUNTER-DRUG ACTIVITIES OF OTHER 
                          GOVERNMENTAL AGENCIES.

    Section 1004 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) is amended to read as 
follows:
``SEC. 1004. ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES.

    ``(a) Support to Other Agencies.--During fiscal years 2002 through 
2006, the Secretary of Defense may provide support for the counter-drug 
activities of any other department or agency of the Federal Government 
or of any State, local, or foreign law

[[Page 115 STAT. 1213]]

enforcement agency for any of the purposes set forth in subsection (b) 
if such support is requested--
            ``(1) by the official who has responsibility for the 
        counter-drug activities of the department or agency of the 
        Federal Government, in the case of support for other departments 
        or agencies of the Federal Government;
            ``(2) by the appropriate official of a State or local 
        government, in the case of support for State or local law 
        enforcement agencies; or
            ``(3) by an appropriate official of a department or agency 
        of the Federal Government that has counter-drug 
        responsibilities, in the case of support for foreign law 
        enforcement agencies.

    ``(b) Types of Support.--The purposes for which the Secretary of 
Defense may provide support under subsection (a) are the following:
            ``(1) The maintenance and repair of equipment that has been 
        made available to any department or agency of the Federal 
        Government or to any State or local government by the Department 
        of Defense for the purposes of--
                    ``(A) preserving the potential future utility of 
                such equipment for the Department of Defense; and
                    ``(B) upgrading such equipment to ensure 
                compatibility of that equipment with other equipment 
                used by the Department of Defense.
            ``(2) The maintenance, repair, or upgrading of equipment 
        (including computer software), other than equipment referred to 
        in paragraph (1) for the purpose of--
                    ``(A) ensuring that the equipment being maintained 
                or repaired is compatible with equipment used by the 
                Department of Defense; and
                    ``(B) upgrading such equipment to ensure the 
                compatibility of that equipment with equipment used by 
                the Department of Defense.
            ``(3) The transportation of personnel of the United States 
        and foreign countries (including per diem expenses associated 
        with such transportation), and the transportation of supplies 
        and equipment, for the purpose of facilitating counter-drug 
        activities within or outside the United States.
            ``(4) The establishment (including an unspecified minor 
        military construction project) and operation of bases of 
        operations or training facilities for the purpose of 
        facilitating counter-drug activities of the Department of 
        Defense or any Federal, State, or local law enforcement agency 
        within or outside the United States or counter-drug activities 
        of a foreign law enforcement agency outside the United States.
            ``(5) Counter-drug related training of law enforcement 
        personnel of the Federal Government, of State and local 
        governments, and of foreign countries, including associated 
        support expenses for trainees and the provision of materials 
        necessary to carry out such training.
            ``(6) The detection, monitoring, and communication of the 
        movement of--
                    ``(A) air and sea traffic within 25 miles of and 
                outside the geographic boundaries of the United States; 
                and
                    ``(B) surface traffic outside the geographic 
                boundary of the United States and within the United 
                States not

[[Page 115 STAT. 1214]]

                to exceed 25 miles of the boundary if the initial 
                detection occurred outside of the boundary.
            ``(7) Construction of roads and fences and installation of 
        lighting to block drug smuggling corridors across international 
        boundaries of the United States.
            ``(8) Establishment of command, control, communications, and 
        computer networks for improved integration of law enforcement, 
        active military, and National Guard activities.
            ``(9) The provision of linguist and intelligence analysis 
        services.
            ``(10) Aerial and ground reconnaissance.

    ``(c) Limitation on Counter-Drug Requirements.--The Secretary of 
Defense may not limit the requirements for which support may be provided 
under subsection (a) only to critical, emergent, or unanticipated 
requirements.
    ``(d) Contract Authority.--In carrying out subsection (a), the 
Secretary of Defense may acquire services or equipment by contract for 
support provided under that subsection if the Department of Defense 
would normally acquire such services or equipment by contract for the 
purpose of conducting a similar activity for the Department of Defense.
    ``(e) Limited Waiver of Prohibition.--Notwithstanding section 376 of 
title 10, United States Code, the Secretary of Defense may provide 
support pursuant to subsection (a) in any case in which the Secretary 
determines that the provision of such support would adversely affect the 
military preparedness of the United States in the short term if the 
Secretary determines that the importance of providing such support 
outweighs such short-term adverse effect.
    ``(f) Conduct of Training or Operation To Aid Civilian Agencies.--In 
providing support pursuant to subsection (a), the Secretary of Defense 
may plan and execute otherwise valid military training or operations 
(including training exercises undertaken pursuant to section 1206(a) of 
the National Defense Authorization Act for Fiscal Years 1990 and 1991 
(Public Law 101-189; 103 Stat. 1564)) for the purpose of aiding civilian 
law enforcement agencies.
    ``(g) Relationship to Other Laws.--(1) The authority provided in 
this section for the support of counter-drug activities by the 
Department of Defense is in addition to, and except as provided in 
paragraph (2), not subject to the requirements of chapter 18 of title 
10, United States Code.
    ``(2) Support under this section shall be subject to the provisions 
of section 375 and, except as provided in subsection (e), section 376 of 
title 10, United States Code.
    ``(h) Congressional Notification of Facilities Projects.--(1) When a 
decision is made to carry out a military construction project described 
in paragraph (2), the Secretary of Defense shall submit to the 
congressional defense committees written notice of the decision, 
including the justification for the project and the estimated cost of 
the project. The project may be commenced only after the end of the 21-
day period beginning on the date on which the written notice is received 
by Congress.
    ``(2) Paragraph (1) applies to an unspecified minor military 
construction project that--
            ``(A) is intended for the modification or repair of a 
        Department of Defense facility for the purpose set forth in 
        subsection (b)(4); and

[[Page 115 STAT. 1215]]

            ``(B) has an estimated cost of more than $500,000.''.
SEC. 1022. EXTENSION OF REPORTING REQUIREMENT REGARDING DEPARTMENT 
                          OF DEFENSE EXPENDITURES TO SUPPORT 
                          FOREIGN COUNTER-DRUG ACTIVITIES.

    Section 1022 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 
Stat. 1654A-255) is amended--
            (1) by inserting ``and April 15, 2002,'' after ``January 1, 
        2001,''; and
            (2) by striking ``fiscal year 2000'' and inserting ``the 
        preceding fiscal year''.
SEC. 1023. AUTHORITY TO TRANSFER TRACKER AIRCRAFT CURRENTLY USED 
                          BY ARMED FORCES FOR COUNTER-DRUG 
                          PURPOSES.

    (a) Transfer Authority.--The Secretary of Defense may transfer to 
the administrative jurisdiction and operational control of another 
Federal agency all Tracker aircraft in the inventory of the Department 
of Defense.
    (b) Effect of Failure To Transfer.--If the transfer authority 
provided by subsection (a) is not exercised by the Secretary of Defense 
by September 30, 2002, any Tracker aircraft remaining in the inventory 
of the Department of Defense may not be used by the Armed Forces for 
counter-drug purposes after that date.
SEC. 1024. LIMITATION ON USE OF FUNDS FOR OPERATION OF TETHERED 
                          AEROSTAT RADAR SYSTEM PENDING SUBMISSION 
                          OF REQUIRED REPORT.

    Not more than 50 percent of the funds appropriated or otherwise made 
available for fiscal year 2002 for operation of the Tethered Aerostat 
Radar System, which is used by the Armed Forces in maritime, air, and 
land counter-drug detection and monitoring, may be obligated or expended 
until such time as the Secretary of Defense submits to Congress the 
report on the status of the Tethered Aerostat Radar System required by 
section 1025 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 
Stat. 1654A-256).

                      Subtitle D--Strategic Forces

SEC. 1031. REPEAL OF LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
                          STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    Section 1302 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1948) is repealed.
SEC. 1032. AIR FORCE BOMBER FORCE STRUCTURE.

    (a) Limitation.--None <<NOTE: Reports.>> of the funds available to 
the Department of Defense for fiscal year 2002 may be obligated or 
expended for retiring or dismantling any of the 93 B-1B Lancer bombers 
in service as of June 1, 2001, or for transferring or reassigning any of 
those aircraft from the unit or facility to which assigned as of that 
date, until 15 days after the Secretary of the Air Force submits to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the Air Force 
bomber force structure.

[[Page 115 STAT. 12167]]

    (b) Matters To Be Included.--The report under subsection (a) shall 
set forth the following:
            (1) The Air Force plan for the modernization of the B-1B 
        aircraft fleet, including a transition plan for implementation 
        of that modernization plan and a description of the basing 
        options for the aircraft in that fleet.
            (2) The amount and type of bomber force structure in the Air 
        Force appropriate to meet the requirements of the national 
        security strategy of the United States.
            (3) Specifications of new missions to be assigned to the 
        National Guard units that currently fly B-1 aircraft and the 
        transition of those units and their facilities from the current 
        B-1 mission to their future missions.
            (4) A description of the potential effect of the proposed 
        consolidation and reduction of the B-1 fleet on other National 
        Guard units in the affected States.
            (5) A justification of the cost and projected savings of 
        consolidating and reducing the B-1 fleet.

    (c) Amount and Type of Bomber Force Structure Defined.--In this 
section, the term ``amount and type of bomber force structure'' means 
the number of B-2 aircraft, B-52 aircraft, and B-1 aircraft that are 
required to carry out the current national security strategy.
SEC. 1033. ADDITIONAL ELEMENT FOR REVISED NUCLEAR POSTURE REVIEW.

    Section 1041(b) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-262) <<NOTE: 10 USC 118 note.>> is amended 
by adding at the end the following new paragraph:
            ``(7) The possibility of deactivating or dealerting nuclear 
        warheads or delivery systems immediately, or immediately after a 
        decision to retire any specific warhead, class of warheads, or 
        delivery system.''.
SEC. 1034. REPORT ON OPTIONS FOR MODERNIZATION AND ENHANCEMENT OF 
                          MISSILE WING HELICOPTER SUPPORT.

    (a) Report Required.--The Secretary of Defense shall prepare a 
report regarding the options for providing the helicopter support 
missions for the Air Force intercontinental ballistic missile wings at 
Minot Air Force Base, North Dakota, Malmstrom Air Force Base, Montana, 
and F.E. Warren Air Force Base, Wyoming, for as long as these missions 
are required. The report shall include the Secretary's recommendations 
on a preferred option.
    (b) Options.--Options to be reviewed under subsection (a) include 
the following:
            (1) The current plan of the Air Force for replacement or 
        modernization of UH-1N helicopters currently flown by the Air 
        Force at the missile wings.
            (2) Replacement of the UH-1N helicopters currently flown by 
        the Air Force with UH-60 Black Hawk helicopters, the UH-1Y 
        helicopter, or another platform.
            (3) Replacement of the UH-1N helicopters with UH-60 
        helicopters and transition of the mission to the Army National 
        Guard, as detailed in the Air Force Space Command/Army National 
        Guard plan entitled ``ARNG Helicopter Support to Air Force Space 
        Command'' and dated November 2000.

[[Page 115 STAT. 1217]]

            (4) Replacement of the UH-1N helicopters with UH-60 
        helicopters or another platform, and establishment of composite 
        units combining active duty Air Force and Army National Guard 
        personnel.
            (5) Such other options as the Secretary of Defense considers 
        appropriate.

    (c) Factors.--Factors to be considered in preparing the report under 
subsection (a) include the following:
            (1) Any implications of transferring the helicopter support 
        missions on the command and control of, and responsibility for, 
        missile field force protection.
            (2) Current and future operational requirements, and the 
        capabilities of the UH-1N or UH-60 helicopter or other aircraft 
        to meet such requirements.
            (3) Cost, with particular attention to opportunities to 
        realize efficiencies over the long run.
            (4) Implications for personnel training and retention.
            (5) Evaluation of the assumptions used in the plan specified 
        in subsection (b)(3).

    (d) Consideration.--In preparing the report under subsection (a), 
the Secretary of Defense shall consider carefully the views of the 
Secretary of the Army, the Secretary of the Air Force, the commander of 
the United States Strategic Command, and the Chief of the National Guard 
Bureau.
    (e) Submission <<NOTE: Deadline.>> of Report.--The report required 
by subsection (a) shall be submitted to the congressional defense 
committees not later than the date on which the President submits to 
Congress the budget under section 1105 of title 31, United States Code, 
for fiscal year 2003.

           Subtitle E--Other Department of Defense Provisions

SEC. 1041. SECRETARY OF DEFENSE RECOMMENDATION ON NEED FOR 
                          DEPARTMENT OF DEFENSE REVIEW OF PROPOSED 
                          FEDERAL AGENCY ACTIONS TO CONSIDER 
                          POSSIBLE IMPACT ON NATIONAL DEFENSE.

    (a) Recommendation on Need for Defense Impact Review Process.--The 
Secretary of Defense shall submit to the President the Secretary's 
recommendation as to whether there should be established within the 
executive branch a defense impact review process. The Secretary shall 
submit a copy of such recommendation to Congress.
    (b) Defense Impact Review Process.--(1) For purposes of this 
section, the term ``defense impact review process'' means a formal 
process within the executive branch--
            (A) to provide for review by the Department of Defense of 
        certain proposed actions of other Federal departments and 
        agencies to identify any reasonably foreseeable significant 
        adverse impact of such a proposed action on national defense; 
        and
            (B) when such a review indicates that a proposed agency 
        action may have such an adverse impact--
                    (i) to afford the Secretary of Defense a timely 
                opportunity to make recommendations for means to 
                eliminate or mitigate any such adverse impact; and

[[Page 115 STAT. 1218]]

                    (ii) to afford an opportunity for those 
                recommendations to be given reasonable and timely 
                consideration by the agency to which provided.

    (2) For purposes of such a review process, the proposed agency 
actions subject to review would be those for which a significant adverse 
impact on national defense is reasonably foreseeable and that meet such 
additional criteria as may be specified by the Secretary of Defense.
    (c) Time <<NOTE: Deadline.>> for Submission of Recommendation.--The 
Secretary shall submit the Secretary's recommendation under subsection 
(a) not later than 180 days after the date of the enactment of this Act.
SEC. 1042. DEPARTMENT OF DEFENSE REPORTS TO CONGRESS TO 
                          BE ACCOMPANIED BY ELECTRONIC VERSION 
                          UPON REQUEST.

    (a) In General.--Chapter 23 of title 10, United States Code, is 
amended by inserting after the table of sections the following new 
section:
``Sec. 480. Reports to Congress: submission in electronic form

    ``(a) Requirement.--Whenever the Secretary of Defense or any other 
official of the Department of Defense submits to Congress (or any 
committee of either House of Congress) a report that the Secretary (or 
other official) is required by law to submit, the Secretary (or other 
official) shall, upon request by any committee of Congress to which the 
report is submitted or referred, provide to Congress (or each such 
committee) a copy of the report in an electronic medium.
    ``(b) Exception.--Subsection (a) does not apply to a report 
submitted in classified form.
    ``(c) Definition.--In this section, the term `report' includes any 
certification, notification, or other communication in writing.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting before the item relating to section 
481 the following new item:

``480. Reports to Congress: submission in electronic form.''.

SEC. 1043. DEPARTMENT OF DEFENSE GIFT AUTHORITIES.

    (a) Authority To Make Loans and Gifts.--(1) Subsection (a) of 
section 7545 of title 10, United States Code, is amended by striking 
``(a) Subject to'' and all that follows through ``to--'' and inserting 
the following:
    ``(a) Authority To Make Loans and Gifts.--The Secretary of the Navy 
may lend or give, without expense to the United States, items described 
in subsection (b) that are not needed by the Department of the Navy to 
any of the following:''.
    (2) Such subsection is further amended--
            (A) by capitalizing the first letter after the paragraph 
        designation in each of paragraphs (1) through (12);
            (B) by striking the semicolon at the end of paragraphs (1) 
        through (10) and inserting a period;
            (C) by striking ``; or'' at the end of paragraph (11) and 
        inserting a period;
            (D) in paragraph (5), by striking ``World War I or World War 
        II'' and inserting ``a foreign war'';
            (E) in paragraph (6), by striking ``soldiers' monument'' and 
        inserting ``servicemen's monument''; and

[[Page 115 STAT. 1219]]

            (F) in paragraph (8), by inserting ``or memorial'' after 
        ``museum''.

    (b) Additional Items Authorized To Be Donated by Secretary of the 
Navy.--Such section is further amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (d) and (e), respectively;
            (2) by inserting after subsection (a) the following new 
        subsections:

    ``(b) Items Eligible for Disposal.--This section applies to the 
following types of property held by the Department of the Navy:
            ``(1) Captured, condemned, or obsolete ordnance material.
            ``(2) Captured, condemned, or obsolete combat or shipboard 
        material.

    ``(c) Regulations.--A loan or gift made under this section shall be 
subject to regulations prescribed by the Secretary and to regulations 
under section 205 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 486).''; and
            (3) by adding at the end the following new subsection:

    ``(f) Authority To Transfer a Portion of a Vessel.--The Secretary 
may lend, give, or otherwise transfer any portion of the hull or 
superstructure of a vessel stricken from the Naval Vessel Register and 
designated for scrapping to a qualified organization specified in 
subsection (a). The terms and conditions of an agreement for the 
transfer of a portion of a vessel under this section shall include a 
requirement that the transferee will maintain the material conveyed in a 
condition that will not diminish the historical value of the material or 
bring discredit upon the Navy.''.
    (c) Clerical Amendments.--Such section is further amended--
            (1) in subsection (d) (as redesignated by subsection 
        (b)(1)), by inserting ``Maintenance of the Records of the 
        Government.--'' after the subsection designation; and
            (2) in subsection (e) (as redesignated by subsection 
        (b)(1)), by inserting ``Alternative Authorities To Make Gifts or 
        Loans.--'' after the subsection designation.

    (d) Conforming Amendments.--Section 2572(a) of such title is 
amended--
            (1) in paragraph (1), by inserting ``, county, or other 
        political subdivision of a State'' before the period at the end;
            (2) in paragraph (2), by striking ``soldiers' monument'' and 
        inserting ``servicemen's monument''; and
            (3) in paragraph (4), by inserting ``or memorial'' after 
        ``An incorporated museum''.
SEC. 1044. ACCELERATION OF RESEARCH, DEVELOPMENT, AND PRODUCTION 
                          OF MEDICAL COUNTERMEASURES FOR DEFENSE 
                          AGAINST BIOLOGICAL WARFARE AGENTS.

    (a) Aggressive <<NOTE: 10 USC 2370a note.>> Program Required.--(1) 
The Secretary of Defense shall carry out a program to aggressively 
accelerate the research, development, testing, and licensure of new 
medical countermeasures for defense against the biological warfare 
agents that are the highest threat.

    (2) The program shall include the following activities:
            (A) <<NOTE: Anthrax.>> As the program's first priority, 
        investment in multiple new technologies for medical 
        countermeasures for defense against the biological warfare 
        agents that are the highest threat, including for the prevention 
        and treatment of anthrax.

[[Page 115 STAT. 1220]]

            (B) Leveraging of ideas and technologies from the biological 
        technology industry.

    (b) Study <<NOTE: Contracts.>> Required.--(1) The Secretary of 
Defense shall enter into a contract with the Institute of Medicine and 
the National Research Council under which the Institute and Council, in 
consultation with the Secretary, shall carry out a study of the review 
and approval process for new medical countermeasures for biological 
warfare agents. The purpose of the study shall be to identify--
            (A) new approaches to accelerating such process; and
            (B) definitive and reasonable methods for assuring the 
        agencies responsible for regulating such countermeasures that 
        such countermeasures will be effective in preventing disease in 
        humans or in providing safe and effective therapy against such 
        agents.

    (2) <<NOTE: Deadline.>> Not later than June 1, 2002, the Institute 
and Council shall jointly submit to Congress a report on the results of 
the study.

    (c) Facility for Production of Vaccines.--(1) Subject to paragraph 
(2) and to the availability of funds for such purposes appropriated 
pursuant to an authorization of appropriations, the Secretary of Defense 
may--
            (A) design and construct a facility on a Department of 
        Defense installation for the production of vaccines to meet the 
        requirements of the Department of Defense to prevent or mitigate 
        the physiological effects of exposure to biological warfare 
        agents;
            (B) operate that facility;
            (C) qualify and validate that facility for the production of 
        vaccines in accordance with the requirements of the Food and 
        Drug Administration; and
            (D) contract with a private-sector source for the production 
        of vaccines in that facility.

    (2) The authority under paragraph (1)(A) to construct a facility may 
be exercised only to the extent that a project for such construction is 
authorized by law in accordance with section 2802 of title 10, United 
States Code.
    (3) The Secretary shall use competitive procedures under chapter 137 
of title 10, United States Code, to enter into contracts to carry out 
subparagraphs (A), (B), and (D) of paragraph (1).
    (d) Plan Required.--(1) The Secretary shall develop a long-range 
plan to provide for the production and acquisition of vaccines to meet 
the requirements of the Department of Defense to prevent or mitigate the 
physiological effects of exposure to biological warfare agents.
    (2) The plan shall include the following:
            (A) An evaluation of the need for one or more vaccine 
        production facilities that are specifically dedicated to meeting 
        the requirements of the Department of Defense and other national 
        interests.
            (B) An evaluation of the options for the means of production 
        of such vaccines, including--
                    (i) use of public facilities, private facilities, or 
                a combination of public and private facilities; and
                    (ii) management and operation of the facilities by 
                the Federal Government, one or more private persons, or 
                a combination of the Federal Government and one or more 
                private persons.

[[Page 115 STAT. 1221]]

            (C) A specification of the means that the Secretary 
        determines is most appropriate for the production of such 
        vaccines.

    (3) The Secretary shall ensure that the plan is consistent with the 
requirement for safe and effective vaccines approved by the Food and 
Drug Administration.
    (4) In preparing the plan, the Secretary shall--
            (A) consider and, as the Secretary determines appropriate, 
        include the information compiled and the analyses developed in 
        preparing the reports required by sections 217 and 218 of the 
        Floyd D. Spence National Defense Authorization Act for Fiscal 
        Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 
        1654A-36, 1654A-37); and
            (B) consult with the heads of other appropriate departments 
        and agencies of the Federal Government.

    (e) Report.--Not <<NOTE: Deadline.>> later than February 1, 2002, 
the Secretary shall submit to the congressional defense committees a 
report on the plan required by subsection (d). The report shall include, 
at a minimum, the contents of the plan and the following matters:
            (1) A description of the policies and requirements of the 
        Department of Defense regarding acquisition and use of such 
        vaccines.
            (2) The estimated schedule for the acquisition of such 
        vaccines in accordance with the plan.
            (3) A discussion of the options considered under subsection 
        (d)(2)(B) for the means of production of such vaccines.
            (4) The Secretary's recommendations for the most appropriate 
        course of action to meet the requirements specified in 
        subsection (d)(1), together with the justification for such 
        recommendations and the long-term cost of implementing such 
        recommendations.

    (f) Funding.--Of the amount authorized to be appropriated under 
section 201(4) for research, development, test, and evaluation, Defense-
wide, $5,000,000 may be available in Program Element 62384BP, and 
$5,000,000 may be available in Program Element 63384BP, for the program 
required by subsection (a).
SEC. 1045. CHEMICAL AND BIOLOGICAL PROTECTIVE EQUIPMENT FOR 
                          MILITARY PERSONNEL AND CIVILIAN 
                          EMPLOYEES OF THE DEPARTMENT OF DEFENSE.

    Not <<NOTE: Deadline.>> later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to Congress 
a report on the requirements of the Department of Defense, including the 
reserve components, regarding chemical and biological protective 
equipment. The report shall set forth the following:
            (1) A description of any current shortfalls with respect to 
        requirements regarding chemical and biological protective 
        equipment for military personnel, whether for individuals or 
        units.
            (2) An assessment of what should be the appropriate level of 
        protection for civilian employees of the Department of Defense 
        against chemical and biological attack.
            (3) A plan for providing required chemical and biological 
        protective equipment for military personnel and civilian 
        employees of the Department of Defense.
            (4) An assessment of the costs associated with carrying out 
        the plan described in paragraph (3).

[[Page 115 STAT. 1222]]

SEC. 1046. SALE OF GOODS AND SERVICES BY NAVAL MAGAZINE, INDIAN 
                          ISLAND, ALASKA.

    (a) Sale Authorized.--Subject to subsections (c) and (d) of section 
2563 of title 10, United States Code, the Secretary of the Navy may sell 
to a person outside the Department of Defense any article or service 
provided by the Naval Magazine, Indian Island, Alaska, that is not 
available from a United States commercial source.
    (b) Crediting of Proceeds.--The proceeds from the sale of any 
article or service under this section shall be credited to the 
appropriation supporting the maintenance and operation of the Naval 
Magazine, Indian Island, for the fiscal year in which the proceeds are 
received.
SEC. 1047. REPORT ON PROCEDURES AND GUIDELINES FOR EMBARKATION OF 
                          CIVILIAN GUESTS ON NAVAL VESSELS FOR 
                          PUBLIC AFFAIRS PURPOSES.

    Not later than February 1, 2002, the Secretary of the Navy 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 in detail the procedures and guidelines of the Navy for 
the embarkation of civilian guests on naval vessels for public affairs 
purposes. The report shall include the following:
            (1) Procedures for nominating and approving civilian guests 
        for embarkation on naval vessels.
            (2) Procedures for ensuring that civilian guest embarkations 
        are conducted only as part of regularly scheduled operations.
            (3) Guidelines regarding the operation of equipment by 
        civilian guests on naval vessels.
            (4) Any other procedures or guidelines the Secretary 
        considers necessary or appropriate to ensure that operational 
        readiness and safety are not hindered by activities related to 
        the embarkation of civilian guests on naval vessels.

SEC. 1048. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) The tables of chapters at the beginning of subtitle A, 
        and at the beginning of part II of subtitle A, are each amended 
        by striking the period after ``1111'' in the item relating to 
        chapter 56.
            (2) Section 119(g)(2) is amended by striking ``National 
        Security Subcommittee'' and inserting ``Subcommittee on 
        Defense''.
            (3) Section 130c(b)(3)(C) is amended by striking 
        ``subsection (f)'' and inserting ``subsection (g)''.
            (4) Section 176(a)(3) is amended by striking ``Chief Medical 
        Director'' and inserting ``Under Secretary for Health''.
            (5)(A) Section 503(c) is amended in paragraph (6)(A)(i) by 
        striking ``14101(18)'' and ``8801(18)'' and inserting ``14101'' 
        and ``8801'', respectively.
            (B) <<NOTE: 10 USC 503 note.>> The amendment made by 
        subparagraph (A) shall take effect on July 1, 2002, immediately 
        after the amendment to such section effective that date by 
        section 563(a) of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into law by 
        Public Law 106-398; 114 Stat. 1654A-131).

[[Page 115 STAT. 1223]]

            (6) Section 663(e) is amended--
                    (A) by striking ``Armed Forces Staff College'' in 
                paragraph (1) and inserting ``Joint Forces Staff 
                College''; and
                    (B) by striking ``Armed Forces Staff College'' and 
                inserting ``Joint Forces Staff College''.
            (7) Section 667(17) is amended by striking ``Armed Forces 
        Staff College'' both places it appears and inserting ``Joint 
        Forces Staff College''.
            (8) Section 874(a) is amended by inserting after ``a 
        sentence of confinement for life without eligibility for 
        parole'' the following: ``that is adjudged for an offense 
        committed after October 29, 2000''.
            (9) Section 1056(c)(2) is amended by striking ``, not later 
        than September 30, 1991,''.
            (10) The table of sections at the beginning of chapter 55 is 
        amended by transferring the item relating to section 1074i, as 
        inserted by section 758(b) of the Floyd D. Spence National 
        Defense Authorization Act for Fiscal Year 2001 (as enacted by 
        Public Law 106-398; 114 Stat. 1654A-200), so as to appear after 
        the item relating to section 1074h.
            (11) Section 1097a(e) is amended by striking ``section 
        1072'' and inserting ``section 1072(2)''.
            (12) Sections 1111(a) and 1114(a)(1) are each amended by 
        striking ``hereafter'' and inserting ``hereinafter''.
            (13) Section 1116 is amended--
                    (A) in subsection (a)(2)(B), by inserting an open 
                parenthesis before ``other than for training''; and
                    (B) in subsection (b)(2)(D), by striking ``section 
                111(c)(4)'' and inserting ``section 1115(c)(4)''.
            (14) The heading for subchapter II of chapter 75 is 
        transferred within that chapter so as to appear before the table 
        of sections at the beginning of that subchapter (as if the 
        amendment made by section 721(c)(1) of the National Defense 
        Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
        Stat. 694) had inserted that heading following section 1471 
        instead of before section 1475).
            (15) Section 1611(d) is amended by striking ``with''.
            (16) Section 2166(e)(9) is amended by striking ``App. 2'' 
        and inserting ``App.''.
            (17) Section 2323(a)(1)(C) is amended--
                    (A) by striking ``section 1046(3)'' and inserting 
                ``section 365(3)'';
                    (B) by striking ``20 U.S.C. 1135d-5(3)'' and 
                inserting ``20 U.S.C. 1067k''; and
                    (C) by striking ``, which, for the purposes of this 
                section'' and all that follows through the period at the 
                end and inserting a period.
            (18) Section 2375(b) is amended by inserting ``(41 U.S.C. 
        430)'' after ``section 34 of the Office of Federal Procurement 
        Policy Act''.
            (19) Section 2376(1) is amended by inserting ``(41 U.S.C. 
        403)'' after ``section 4 of the Office of Federal Procurement 
        Policy Act''.
            (20) Section 2410f(a) is amended by inserting after 
        ``inscription'' the following: ``, or another inscription with 
        the same meaning,''.

[[Page 115 STAT. 1224]]

            (21) Section 2461a(a)(2) is amended by striking 
        ``effeciency'' and inserting ``efficiency''.
            (22) Section 2467 is amended--
                    (A) in subsection (a)(2)--
                          (i) by striking ``, United States Code'' in 
                      subparagraph (A); and
                          (ii) by striking ``such'' in subparagraphs (B) 
                      and (C); and
                    (B) in subsection (b)(2)(A), by striking ``United 
                States Code,''.
            (23) Section 2535 is amended--
                    (A) in subsection (a)--
                          (i) by striking ``intent of Congress'' and 
                      inserting ``intent of Congress--'';
                          (ii) by realigning clauses (1), (2), (3), and 
                      (4) so that each such clause appears as a separate 
                      paragraph indented two ems from the left margin; 
                      and
                          (iii) in paragraph (1), as so realigned, by 
                      striking ``Armed Forces'' and inserting ``armed 
                      forces'';
                    (B) in subsection (b)(1)--
                          (i) by striking ``in this section, the 
                      Secretary is authorized and directed to--'' and 
                      inserting ``in subsection (a), the Secretary of 
                      Defense shall--''; and
                          (ii) by striking ``defense industrial 
                      reserve'' in subparagraph (A) and inserting 
                      ``Defense Industrial Reserve''; and
                    (C) in subsection (c)--
                          (i) by striking paragraph (1);
                          (ii) by redesignating paragraph (2) as 
                      paragraph (1) and in that paragraph--
                                    (I) by striking ``means'' and 
                                inserting 
                                ``means--'';
                                    (II) by realigning clauses (A), (B), 
                                and (C) so that each such clause appears 
                                as a separate subparagraph indented four 
                                ems from the left margin; and
                                    (III) by inserting ``and'' at the 
                                end of subparagraph (B), as so 
                                realigned; and
                          (iii) by redesignating paragraph (3) as 
                      paragraph (2).
            (24) Section 2541c is amended by striking ``subtitle'' both 
        places it appears in the matter preceding paragraph (1) and 
        inserting ``subchapter''.
            (25) The second section 2582, added by section 1(a) of 
        Public Law 106-446 (114 Stat. 1932), is redesignated as section 
        2583, and the item relating to that section in the table of 
        sections at the beginning of chapter 153 is revised to conform 
        to such redesignation.
            (26)(A) Section 2693(a) is amended--
                    (i) in the matter preceding paragraph (1), by 
                inserting ``of Defense'' after ``Secretary''; and
                    (ii) in paragraph (3)--
                          (I) by inserting ``to the Secretary of 
                      Defense'' after ``certifies'';
                          (II) by inserting ``(42 U.S.C. 3762a)'' after 
                      ``of 1968''; and

[[Page 115 STAT. 1225]]

                          (III) by striking ``to the public agencies 
                      referred to in section 515(a)(1) or 515(a)(3) of 
                      title I of such Act'' and inserting ``to a public 
                      agency referred to in paragraph (1) or (3) of 
                      subsection (a) of such section''.
            (B)(i) The heading of such section is amended to read as 
        follows:
``Sec. 2693. Conveyance of certain property: Department of Justice 
                    correctional options program''.
            (ii) The item relating to such section in the table of 
        sections at the beginning of chapter 159 is amended to read as 
        follows:
``2693. Conveyance of certain property: Department of Justice 
            correctional options program.''.

            (27) Section 3014(f)(3) is amended by striking ``the number 
        equal to'' and all that follows and inserting ``67.''.
            (28) Section 5014(f)(3) is amended by striking ``the number 
        equal to'' and all that follows and inserting ``74.''.
            (29) Section 8014(f)(3) is amended by striking ``the number 
        equal to'' and all that follows and inserting ``60.''.
            (30) Section 9783(e)(1) is amended by striking 
        ``40101(a)(2)'' and inserting ``40102(a)(2)''.
            (31) Section 12741(a)(2) is amended by striking ``received'' 
        and inserting ``receive''.

    (b) Amendments Relating to Change in Title of Under Secretary of 
Defense for Acquisition, Technology, and Logistics.--Title 10, United 
States Code, is further amended as follows:
            (1) Section 133a(b) is amended by striking ``shall assist 
        the Under Secretary of Defense for Acquisition and Technology'' 
        and inserting ``shall assist the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics''.
            (2) The following provisions are each amended by striking 
        ``Under Secretary of Defense for Acquisition and Technology'' 
        and inserting ``Under Secretary of Defense for Acquisition, 
        Technology, and Logistics'': sections 139(c), 139(g) (as 
        redesignated by section 263), 171(a)(3), 179(a)(1), 1702, 1703, 
        1707(a), 1722(a), 1722(b)(2)(B), 1735(c)(1), 1737(c)(1), 
        1737(c)(2)(B), 1741(b), 1746(a), 1761(b)(4), 1763, 2302c(a)(2), 
        2304(f)(1)(B)(iii), 2304(f)(6)(B), 2311(c)(1), 2311(c)(2)(B), 
        2350a(e)(1)(A), 2350a(e)(2)(B), 2350a(f)(1), 2399(b)(3), 
        2435(b), 2435(d)(2), 2521(a), and 2534(i)(3).
            (3)(A) The heading for section 1702 is amended to read as 
        follows:
``Sec. 1702. Under Secretary of Defense for Acquisition, 
                    Technology, and Logistics: authorities and 
                    responsibilities''.
            (B) The item relating to section 1702 in the table of 
        sections at the beginning of subchapter I of chapter 87 is 
        amended to read as follows:
``1702. Under Secretary of Defense for Acquisition, Technology, and 
            Logistics: authorities and responsibilities.''.

            (4) Section 2503(b) is amended by striking ``Under Secretary 
        of Defense for Acquisition'' and inserting ``Under Secretary of 
        Defense for Acquisition, Technology, and Logistics''.

[[Page 115 STAT. 1226]]

    (c) Amendments To Substitute Calendar Dates for Date-of-Enactment 
References.--Title 10, United States Code, is further amended as 
follows:
            (1) Section 130c(d)(1) is amended by striking ``the date of 
        the enactment of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001'' and inserting ``October 
        30, 2000,''.
            (2) Section 184(a) is amended by striking ``the date of the 
        enactment of this section,'' and inserting ``October 30, 
        2000,''.
            (3) Section 986(a) is amended by striking ``the date of the 
        enactment of this section,'' and inserting ``October 30, 
        2000,''.
            (4) Section 1074g(a)(8) is amended by striking ``the date of 
        the enactment of this section'' and inserting ``October 5, 
        1999,''.
            (5) Section 1079(h)(2) is amended by striking ``the date of 
        the enactment of this paragraph'' and inserting ``February 10, 
        1996,''.
            (6) Section 1206(5) is amended by striking ``the date of the 
        enactment of the National Defense Authorization Act for Fiscal 
        Year 2000,'' and inserting ``October 5, 1999,''.
            (7) Section 1405(c)(1) is amended by striking ``the date of 
        the enactment of the National Defense Authorization Act for 
        Fiscal Year 1995,'' and inserting ``October 5, 1994,''.
            (8) Section 1407(f)(2) is amended by striking ``the date of 
        the enactment of this subsection--'' and inserting ``October 30, 
        2000--''.
            (9) Section 1408(d)(6) is amended by striking ``the date of 
        the enactment of this paragraph'' and inserting ``August 22, 
        1996,''.
            (10) Section 1511(b) is amended by striking ``the date of 
        the enactment of this chapter.'' and inserting ``February 10, 
        1996.''.
            (11) Section 2461a(b)(1) is amended by striking ``the date 
        of the enactment of this section,'' and inserting ``October 30, 
        2000,''.
            (12) Section 4021(c)(1) is amended by striking ``the date of 
        the enactment of this section.'' and inserting ``November 29, 
        1989.''.
            (13) Section 6328(a) is amended by striking ``the date of 
        the enactment of this section'' and inserting ``February 10, 
        1996,''.
            (14) Section 7439 is amended--
                    (A) in subsection (a)(2), by striking ``one year 
                after the date of the enactment of this section,'' and 
                inserting ``November 18, 1998,'';
                    (B) in subsection (b)(1), by striking ``the date of 
                the enactment of this section,'' and inserting 
                ``November 18, 1997,'';
                    (C) in subsection (b)(2), by striking ``the end of 
                the one-year period beginning on the date of the 
                enactment of this section.'' and inserting ``November 
                18, 1998.''; and
                    (D) in subsection (f)(2), by striking ``the date of 
                the enactment of this section'' and inserting ``November 
                18, 1997,''.
            (15) Section 12533 is amended--

[[Page 115 STAT. 1227]]

                    (A) in each of subsections (b) and (c)(1), by 
                striking ``the date of the enactment of this section.'' 
                and inserting ``November 18, 1997.''; and
                    (B) in each of subsections (c)(2) and (d), by 
                striking ``the date of the enactment of this section'' 
                and inserting ``November 18, 1997,''.
            (16) Section 12733(3) is amended--
                    (A) in subparagraph (B), by striking ``the date of 
                the enactment of the Floyd D. Spence National Defense 
                Authorization Act for Fiscal Year 2001;'' and inserting 
                ``October 30, 2000;''; and
                    (B) in subparagraph (C), by striking ``the date of 
                the enactment of the Floyd D. Spence National Defense 
                Authorization Act for Fiscal Year 2001'' and inserting 
                ``October 30, 2000,''.

    (d) Amendments Relating to Change in Title of McKinney-Vento 
Homeless Assistance Act.--The following provisions are each amended by 
striking ``Stewart B. McKinney Homeless Assistance Act'' and inserting 
``McKinney-Vento Homeless Assistance Act'':
            (1) Sections 2814(j)(2), 2854a(d)(2), and 2878(d)(4) of 
        title 10, United States Code.
            (2) Sections 2905(b)(6)(A) and 2910(11) 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).
            (3) Section 204(b)(6)(A) of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public Law 100-
        526; 10 U.S.C. 2687 note).
            (4) Section 2915(c)(10) of the National Defense 
        Authorization Act for Fiscal Year 1994 (10 U.S.C. 2687 note).
            (5) Section 2(e)(4)(A) of the Base Closure Community 
        Redevelopment and Homeless Assistance Act of 1994 (Public Law 
        103-421; 10 U.S.C. 2687 note).
            (6) Section 1053(a) of the National Defense Authorization 
        Act for Fiscal Year 1997 (110 Stat. 2650).

    (e) Amendments To Repeal Obsolete Provisions.--Title 10, United 
States Code, is further amended as follows:
            (1) Section 1144 is amended--
                    (A) in subsection (a)(3), by striking the second 
                sentence; and
                    (B) by striking subsection (e).
            (2) Section 1581(b) is amended--
                    (A) by striking ``(1)'' and all that follows through 
                ``The Secretary of Defense shall deposit'' and inserting 
                ``The Secretary of Defense shall deposit''; and
                    (B) by striking ``on or after December 5, 1991,''.
            (3) Subsection (e) of section 1722 is repealed.
            (4) Subsection 1732(a) is amended by striking the second 
        sentence.
            (5) Section 1734 is amended--
                    (A) in subsection (b)(1)(B), by striking ``on and 
                after October 1, 1991,''; and
                    (B) in subsection (e)(2), by striking the last 
                sentence.
            (6)(A) Section 1736 is repealed.
            (B) The table of sections at the beginning of subchapter III 
        of chapter 87 is amended by striking the item relating to 
        section 1736.
            (7)(A) Sections 1762 and 1764 are repealed.

[[Page 115 STAT. 1228]]

            (B) The table of sections at the beginning of subchapter V 
        of chapter 87 is amended by striking the items relating to 
        sections 1762 and 1764.
            (8) Section 2112(a) is amended by striking ``, with the 
        first class graduating not later than September 21, 1982''.
            (9) Section 2218(d)(1) is amended by striking ``for fiscal 
        years after fiscal year 1993''.
            (10)(A) Section 2468 is repealed.
            (B) The table of sections at the beginning of chapter 146 is 
        amended by striking the item relating to section 2468.
            (11) Section 2832 is amended--
                    (A) by striking ``(a)'' before ``The Secretary of 
                Defense''; and
                    (B) by striking subsection (b).
            (12) Section 7430(b)(2) is amended--
                    (A) by striking ``at a price less than'' and all 
                that follows through ``the current sales price'' and 
                inserting ``at a price less than the current sales 
                price'';
                    (B) by striking ``; or'' and inserting a period; and
                    (C) by striking subparagraph (B).

    (f) Public Law 106-398.--Effective as of October 30, 2000, and as if 
included therein as enacted, the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398) <<NOTE: 5 USC 8464 note.>> is amended as follows:
            (1) Section 525(b)(1) (114 Stat. 1654A-109) <<NOTE: 10 USC 
        10218 note.>> is amended by striking ``subsection (c)'' and 
        inserting ``subsections (a) and (b)''.
            (2) Section 1152(c)(2) (114 Stat. 1654A-323) <<NOTE: 5 USC 
        8464.>> is amended by inserting ``inserting'' after ``and''.

    (g) Public Law 106-65.--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) <<NOTE: 10 USC 819 note.>> is 
amended as follows:
            (1) <<NOTE: 10 USC 6954.>> Section 531(b)(2)(A) (113 Stat. 
        602) is amended by inserting ``in subsection (a),'' after 
        ``(A)''.
            (2) Section 549(a)(2) (113 Stat. 611) is amended by striking 
        ``such chapter'' and inserting ``chapter 49 of title 10, United 
        States Code,''.
            (3) Section 576(a)(3) (10 U.S.C. 1501 note; 113 Stat. 625) 
        is amended by adding a period at the end.
            (4) <<NOTE: 10 USC 819.>> Section 577(a)(2) (113 Stat. 625) 
        is amended by striking ``bad conduct'' in the first quoted 
        matter and inserting ``bad-conduct''.
            (5) Section 811(d)(3)(B)(v) (10 U.S.C. 2302 note; 113 Stat. 
        709) is amended by striking ``Mentor-Protegee'' and inserting 
        ``Mentor-Protege''.
            (6) <<NOTE: 10 USC 113 note.>> Section 1052(b)(1) (113 Stat. 
        764) is amended by striking `` `The Department'' and inserting 
        ``the `Department''.
            (7) Section 1053(a)(5) (10 U.S.C. 113 note; 113 Stat. 764) 
        is amended by inserting ``and'' before ``Marines''.
            (8) Section 1402(f)(2)(A) (22 U.S.C. 2778 note; 113 Stat. 
        799) is amended by striking ``3201 note'' and inserting 
        ``6305(4)''.
            (9) Section 2902(d) (10 U.S.C. 111 note; 113 Stat. 882) is 
        amended by striking ``section 2871(b)'' and inserting ``section 
        2881(b)''.

[[Page 115 STAT. 1229]]

    (h) Public Law 102-484.--The National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484) is amended as follows:
            (1) Section 3161(c)(6)(C) (42 U.S.C. 7274h(c)(6)(C)) is 
        amended by striking ``title IX of the Public Works and Economic 
        Development Act of 1965 (42 U.S.C. 3241 et seq.)'' and inserting 
        ``title II of the Public Works and Economic Development Act of 
        1965 (42 U.S.C. 3141 et seq.)''.
            (2) Section 4416(b)(1) (10 U.S.C. 12681 note) is amended by 
        striking ``force reduction period'' and inserting ``force 
        reduction transition period''.
            (3) Section 4461(5) (10 U.S.C. 1143 note) is amended by 
        adding a period at the end.

    (i) Other Laws.--
            (1) Section 1083(c) of the National Defense Authorization 
        Act for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 113 note) 
        is amended by striking ``Names'' and inserting ``Name''.
            (2) Section 845(d)(1)(B)(ii) of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 
        U.S.C. 2371 note) is amended by inserting a closing parenthesis 
        after ``41 U.S.C. 414(3))''.
            (3) Section 1123(b) of the National Defense Authorization 
        Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 
        Stat. 1556) is amended by striking ``Armed Forces Staff 
        College'' each place it appears and inserting ``Joint Forces 
        Staff College''.
            (4) Section 1412(g)(2)(C)(vii) of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521(g)(2)(C)(vii)) is 
        amended by striking ``(c)(3)'' and inserting ``(c)(4)''.
            (5) Section 8336 of title 5, United States Code, is 
        amended--
                    (A) in subsection (d)(2), by striking ``subsection 
                (o)'' and inserting ``subsection (p)''; and
                    (B) by redesignating the second subsection (o), 
                added by section 1152(a)(2) of the Floyd D. Spence 
                National Defense Authorization Act for Fiscal Year 2001 
                (as enacted by Public Law 106-398; 114 Stat. 1654A-320), 
                as subsection (p).
            (6) Section 9001(3) of title 5, United States Code, is 
        amended by striking ``and'' at the end of subparagraph (A) and 
        inserting ``or''.
            (7) Section 318(h)(3) of title 37, United States Code, is 
        amended by striking ``subsection (a)'' and inserting 
        ``subsection (b)''.
            (8) Section 3695(a)(5) of title 38, United States Code, is 
        amended by striking ``1610'' and inserting ``1611''.
            (9) Section 13(b) of the Peace Corps Act (22 U.S.C. 2512(b)) 
        is amended by striking ``, subject to section 5532 of title 5, 
        United States Code''.
            (10) Section 127(g)(6) of the Trade Deficit Review 
        Commission Act (19 U.S.C. 2213 note), as amended by section 
        311(b) of the Legislative Branch Appropriations Act, 2000 
        (Public Law 106-57; 113 Stat. 428), is amended--
                    (A) by striking ``authorities.--'' and all that 
                follows through ``An individual'' and inserting 
                ``authorities.--An individual''; and
                    (B) by striking subparagraph (B).

[[Page 115 STAT. 1230]]

            (11) Section 28 of the Atomic Energy Act of 1954 (42 U.S.C. 
        2038) is amended in the last sentence by striking 
        ``, subject to'' and all that follows through the period at the 
        end and inserting a period.
            (12) Section 3212 of the National Nuclear Security 
        Administration Act (50 U.S.C. 2402) is amended by redesignating 
        the second subsection (e), added by section 3159(a) of the Floyd 
        D. Spence National Defense Authorization Act for Fiscal Year 
        2001 (as enacted by Public Law 106-398; 114 Stat. 1654A-469), as 
        subsection (f).

    (j) Coordination <<NOTE: 10 USC 101 note.>> 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. 1049. TERMINATION OF REFERENDUM REQUIREMENT REGARDING 
                          CONTINUATION OF MILITARY TRAINING ON 
                          ISLAND OF VIEQUES, PUERTO RICO, AND 
                          IMPOSITION OF ADDITIONAL CONDITIONS ON 
                          CLOSURE OF TRAINING RANGE.

    (a) In General.--Title XV of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-348) is amended by striking sections 1503, 
1504, and 1505 and inserting the following new sections:
``SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL TRAINING 
                            RANGE.

    ``(a) Conditional Authority To Close.--The Secretary of the Navy may 
close the Vieques Naval Training Range on the island of Vieques, Puerto 
Rico, and discontinue training at that range only if the Secretary 
certifies to the President and Congress that both of the following 
conditions are satisfied:
            ``(1) One or more alternative training facilities exist 
        that, individually or collectively, provide an equivalent or 
        superior level of training for units of the Navy and the Marine 
        Corps stationed or deployed in the eastern United States.
            ``(2) The alternative facility or facilities are available 
        and fully capable of supporting such Navy and Marine Corps 
        training immediately upon cessation of training on Vieques.

    ``(b) Consultation Required.--In determining whether the conditions 
specified in paragraphs (1) and (2) of subsection (a) are satisfied, the 
Secretary of the Navy shall take into account the written views and 
recommendations of the Chief of Naval Operations and the Commandant of 
the Marine Corps. The Secretary shall submit these written views and 
recommendations to Congress with the certification submitted under 
subsection (a).
``SEC. 1504. CLOSURE OF VIEQUES NAVAL TRAINING RANGE AND DISPOSAL 
                            OF CLOSED RANGE.

    ``(a) Termination of Training and Related Closures.--If the 
conditions specified in section 1503(a) are satisfied and the Secretary 
of the Navy makes a determination to close the Vieques Naval Training 
Range and discontinue live-fire training at that range the Secretary of 
the Navy shall--
            ``(1) terminate all Navy and Marine Corps training 
        operations on the island of Vieques;

[[Page 115 STAT. 1231]]

            ``(2) terminate all Navy and Marine Corps operations at 
        Naval Station Roosevelt Roads, Puerto Rico, that are related 
        exclusively to the use of the training range on the island of 
        Vieques by the Navy and the Marine Corps; and
            ``(3) close the Navy installations and facilities on the 
        island of Vieques, other than properties exempt from conveyance 
        and transfer under section 1506.

    ``(b) Transfer to Secretary of the Interior.--Upon termination of 
Navy and Marine Corps training operations on the island of Vieques, the 
Secretary of the Navy shall transfer, without reimbursement, to the 
administrative jurisdiction of the Secretary of the Interior--
            ``(1) the Live Impact Area on the island of Vieques;
            ``(2) all Department of Defense real properties on the 
        eastern side of the island that are identified as conservation 
        zones; and
            ``(3) all other Department of Defense real properties on the 
        eastern side of the island.

    ``(c) Administration by Secretary of the Interior.--
            ``(1) Retention and administration.--The Secretary of the 
        Interior shall retain, and may not dispose of any of, the 
        properties transferred under paragraphs (2) and (3) of 
        subsection (b) and shall administer such properties as wildlife 
        refuges under the National Wildlife Refuge System Administration 
        Act of 1966 (16 U.S.C. 668dd et seq.) pending the enactment of a 
        law that addresses the disposition of such properties.
            ``(2) Live impact area.--The Secretary of the Interior shall 
        assume responsibility for the administration of the Live Impact 
        Area upon transfer under paragraph (1) of subsection (b), 
        administer that area as a wilderness area under the Wilderness 
        Act (16 U.S.C. 1131 et seq.), and deny public access to the 
        area.

    ``(d) Live Impact Area Defined.--In this section, the term `Live 
Impact Area' means the parcel of real property, consisting of 
approximately 900 acres (more or less), on the island of Vieques that is 
designated by the Secretary of the Navy for targeting by live ordnance 
in the training of forces of the Navy and Marine Corps.''.
    (b) Conforming Amendment.--Section 1507(c) of such Act (114 Stat. 
1654A-355) is amended by striking ``the issuance of a proclamation 
described in section 1504(a) or''.

                        Subtitle F--Other Matters

SEC. 1061. ASSISTANCE FOR FIREFIGHTERS.

    (a) Authorization of Appropriations.--Subsection (e) of section 33 
of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229) 
is amended to read as follows:
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        $900,000,000 for each of the fiscal years 2002 through 2004 for 
        the purposes of this section.
            ``(2) Administrative expenses.--Of the funds appropriated 
        pursuant to paragraph (1) for a fiscal year, the Director may 
        use not more than three percent of the funds to cover salaries 
        and expenses and other administrative costs incurred by the

[[Page 115 STAT. 1232]]

        Director to operate the office established under subsection 
        (b)(2) and make grants and provide assistance under this 
        section.''.

    (b) Response to Terrorism or Use of Weapons of Mass Destruction.--
Subsection (b)(3) of such section is amended--
            (1) in subparagraph (B), by inserting ``(including response 
        to a terrorism incident or use of a weapon of mass 
        destruction)'' after ``response'';
            (2) in subparagraph (H), by striking ``and monitoring'' and 
        inserting ``, monitoring, and response to a terrorism incident 
        or use of a weapon of mass destruction''; and
            (3) in subparagraph (I), by inserting ``, including 
        protective equipment to respond to a terrorism incident or the 
        use of a weapon of mass destruction'' after ``personnel'' the 
        second place it appears.

    (c) Technical Amendments.--Subsection (b)(3) of such section is 
further amended--
            (1) by striking ``the grant funds--'' in the matter 
        preceding subparagraph (A) and inserting ``the grant funds for 
        one or more of the following purposes:'';
            (2) by capitalizing the initial letter of the first word of 
        each of subparagraphs (A) through (N);
            (3) by striking the semicolon at the end of each of 
        subparagraphs (A) through (L) and inserting a period; and
            (4) by striking ``; or'' at the end of subparagraph (M) and 
        inserting a period.
SEC. 1062. EXTENSION OF TIMES FOR COMMISSION ON THE FUTURE OF THE 
                          UNITED STATES AEROSPACE INDUSTRY TO 
                          REPORT AND TO TERMINATE.

    (a) Deadline for Report.--Subsection (d)(1) of section 1092 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-
302) <<NOTE: 42 USC 2451 note.>> is amended by striking ``March 1, 
2002'' and inserting ``one year after the date of the first official 
meeting of the Commission''.

    (b) Termination <<NOTE: 42 USC 2451 note.>> of Commission.--
Subsection (g) of such section is amended by striking ``30 days'' and 
inserting ``60 days''.
SEC. 1063. APPROPRIATIONS TO RADIATION EXPOSURE COMPENSATION TRUST 
                          FUND.

    Section 3(e) of the Radiation Exposure Compensation Act (42 U.S.C. 
2210 note) is amended to read as follows:
    ``(e) Appropriation.--
            ``(1) In general.--There are appropriated to the Fund, out 
        of any money in the Treasury not otherwise appropriated, for 
        fiscal year 2002 and each fiscal year thereafter through fiscal 
        year 2011, such sums as may be necessary, not to exceed the 
        applicable maximum amount specified in paragraph (2), to carry 
        out the purposes of the Fund.
            ``(2) Limitation.--Appropriation of amounts to the Fund 
        pursuant to paragraph (1) is subject to the following maximum 
        amounts:
                    ``(A) For fiscal year 2002, $172,000,000.
                    ``(B) For fiscal year 2003, $143,000,000.
                    ``(C) For fiscal year 2004, $107,000,000.
                    ``(D) For fiscal year 2005, $65,000,000.
                    ``(E) For fiscal year 2006, $47,000,000.
                    ``(F) For fiscal year 2007, $29,000,000.

[[Page 115 STAT. 1233]]

                    ``(G) For fiscal year 2008, $29,000,000.
                    ``(H) For fiscal year 2009, $23,000,000.
                    ``(I) For fiscal year 2010, $23,000,000.
                    ``(J) For fiscal year 2011, $17,000,000.''.
SEC. 1064. WAIVER OF VEHICLE WEIGHT LIMITS DURING PERIODS OF 
                          NATIONAL EMERGENCY.

    Section 127 of title 23, United States Code, is amended by adding at 
the end the following new subsection:
    ``(h) Waiver for a Route in State of Maine During Periods of 
National Emergency.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the Secretary, in consultation with the Secretary 
        of Defense, may waive or limit the application of any vehicle 
        weight limit established under this section with respect to the 
        portion of Interstate Route 95 in the State of Maine between 
        Augusta and Bangor for the purpose of making bulk shipments of 
        jet fuel to the Air National Guard Base at Bangor International 
        Airport during a period of national emergency in order to 
        respond to the effects of the national emergency.
            ``(2) Applicability.--Emergency limits established under 
        paragraph (1) shall preempt any inconsistent State vehicle 
        weight limits.''.
SEC. 1065. REPAIR, RESTORATION, AND PRESERVATION OF LAFAYETTE 
                          ESCADRILLE MEMORIAL, MARNES-LA-COQUETTE, 
                          FRANCE.

    (a) Authority To Make Grant.--(1) Subject to subsections (b) and 
(c), the Secretary of the Air Force may make a grant to the Lafayette 
Escadrille Memorial Foundation, Inc., to be used solely for the purpose 
of repairing, restoring, and preserving the structure, plaza, and 
surrounding grounds of the Lafayette Escadrille Memorial in Marnes la-
Coquette, France.
    (2) The amount of the grant may not exceed $2,000,000.
    (b) Contribution of Funds by France.--The Secretary of the Air Force 
may not make the grant authorized by subsection (a) until 30 days after 
the Secretary submits to Congress a report indicating that the 
government of France has also contributed funds toward the repair, 
restoration, and preservation of the memorial. The report shall specify 
the amount of the funds contributed by the government of France and 
describe the purpose for which the funds are to be used.
    (c) Conditions on Receipt of Grant.--(1) The grant under subsection 
(a) shall be subject to the following conditions:
            (A) That the Lafayette Escadrille Memorial Foundation submit 
        to the Secretary of the Air Force an annual report, until the 
        grant funds are fully expended, containing an itemized 
        accounting of expenditures of grant funds and describing the 
        progress made to repair, restore, and preserve the memorial.
            (B) That the Secretary and the Comptroller General of the 
        United States, or any of their duly authorized representatives, 
        be given access for the purpose of audit and examination to any 
        books, documents, papers, and records of the Lafayette 
        Escadrille Memorial Foundation.
            (C) That none of the grant funds be used for remuneration of 
        any entity or individual associated with fundraising for any 
        project in connection with the repair, restoration, and 
        preservation of the memorial.

[[Page 115 STAT. 1234]]

    (2) The Secretary shall transmit to Congress a copy of each report 
received under paragraph (1)(A).
    (d) Report on Architectural and Engineering Costs.--Not later than 
one year after the date of the enactment of this Act, the Secretary of 
the Air Force shall submit to Congress a report containing an estimate 
of the architectural and engineering costs to be incurred to fully 
repair, restore, and preserve the memorial and ensure the long-term 
structural integrity of the memorial. The estimate shall be prepared by 
a private United States entity, under contract with the Secretary. Funds 
for the contract shall also be derived from the amount specified in 
subsection (e).
    (e) Funds for Grant.--Funds for the grant under subsection (a) shall 
be derived only from amounts authorized to be appropriated under section 
301(a)(4) for operation and maintenance for the Air Force.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

          Subtitle A--Department of Defense Civilian Personnel

Sec. 1101. Personnel pay and qualifications authority for Department of 
                      Defense Pentagon Reservation civilian law 
                      enforcement and security force.
Sec. 1102. Pilot program for payment of retraining expenses.
Sec. 1103. Authority of civilian employees to act as notaries.
Sec. 1104. Authority to appoint certain health care professionals in the 
                      excepted service.

           Subtitle B--Civilian Personnel Management Generally

Sec. 1111. Authority to provide hostile fire pay.
Sec. 1112. Payment of expenses to obtain professional credentials.
Sec. 1113. Parity in establishment of wage schedules and rates for 
                      prevailing rate employees.
Sec. 1114. Modification of limitation on premium pay.
Sec. 1115. Participation of personnel in technical standards development 
                      activities.
Sec. 1116. Retention of travel promotional items.
Sec. 1117. Applicability of certain laws to certain individuals assigned 
                      to work in the Federal Government.

               Subtitle C--Intelligence Civilian Personnel

Sec. 1121. Authority to increase maximum number of positions in the 
                      Defense Intelligence Senior Executive Service.

               Subtitle D--Matters Relating To Retirement

Sec. 1131. Improved portability of retirement coverage for employees 
                      moving between civil service employment and 
                      employment by nonappropriated fund 
                      instrumentalities.
Sec. 1132. Federal employment retirement credit for nonappropriated fund 
                      instrumentality service.
Sec. 1133. Modification of limitations on exercise of voluntary 
                      separation incentive pay authority and voluntary 
                      early retirement authority.

          Subtitle A--Department of Defense Civilian Personnel

SEC. 1101. PERSONNEL PAY AND QUALIFICATIONS AUTHORITY FOR 
                          DEPARTMENT OF DEFENSE PENTAGON 
                          RESERVATION CIVILIAN LAW ENFORCEMENT AND 
                          SECURITY FORCE.

    Section 2674(b) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before the text in the first 
        paragraph of that subsection;

[[Page 115 STAT. 1235]]

            (2) by redesignating paragraphs (1) and (2) as subparagraphs 
        (A) and (B), respectively; and
            (3) by adding at the end the following new paragraph:

    ``(2) For positions for which the permanent duty station is the 
Pentagon Reservation, the Secretary, in his sole and exclusive 
discretion, may without regard to the pay provisions of title 5, fix the 
rates of basic pay for such positions occupied by civilian law 
enforcement and security personnel appointed under the authority of this 
section so as to place such personnel on a comparable basis with 
personnel of other similar Federal law enforcement and security 
organizations within the vicinity of the Pentagon Reservation, not to 
exceed the basic pay for personnel performing similar duties in the 
United States Secret Service Uniformed Division or the United States 
Park Police.''.
SEC. 1102. PILOT <<NOTE: 10 USC 1597 note.>> PROGRAM FOR PAYMENT 
                          OF RETRAINING EXPENSES.

    (a) Authority To Carry Out Pilot Program.--(1) The Secretary of 
Defense may establish a pilot program to facilitate the reemployment of 
eligible employees of the Department of Defense who are involuntarily 
separated due to a reduction in force, relocation as a result of a 
transfer of function, realignment, or change of duty station. Under the 
pilot program, the Secretary may pay retraining incentives to encourage 
non-Federal employers to hire and retain such eligible employees.
    (2) Under the pilot program, the Secretary may enter into an 
agreement with a non-Federal employer under which the employer agrees--
            (A) to employ an eligible employee for at least 12 months at 
        a salary that is mutually agreeable to the employer and the 
        eligible employee; and
            (B) to certify to the Secretary the amount of costs incurred 
        by the employer for any necessary training (as defined by the 
        Secretary) provided to such eligible employee in connection with 
        the employment.

    (3) The Secretary may pay a retraining incentive to the non-Federal 
employer upon the employee's completion of 12 months of continuous 
employment with that employer. The Secretary shall determine the amount 
of the incentive, except that in no event may such amount exceed the 
lesser of the amount certified with respect to such eligible employee 
under paragraph (2)(B), or $10,000.
    (4) In a case in which an eligible employee does not remain employed 
by the non-Federal employer for at least 12 months, the Secretary may 
pay to the employer a prorated amount of what would have been the full 
retraining incentive if the eligible employee had remained employed for 
such 12-month period.
    (b) Eligible Employees.--For purposes of this section, an eligible 
employee is an employee of the Department of Defense, serving under an 
appointment without time limitation, who has been employed by the 
Department for a continuous period of at least 12 months and who has 
been given notice of separation pursuant to a reduction in force, 
relocation as a result of a transfer of function, realignment, or change 
of duty station, except that such term does not include--
            (1) a reemployed annuitant under the retirement systems 
        described in subchapter III of chapter 83 of title 5, United

[[Page 115 STAT. 1236]]

        States Code, or chapter 84 of such title, or another retirement 
        system for employees of the Federal Government;
            (2) an employee who, upon separation from Federal service, 
        is eligible for an immediate annuity under subchapter III of 
        chapter 83 of such title, or subchapter II of chapter 84 of such 
        title; or
            (3) an employee who is eligible for disability retirement 
        under any of the retirement systems referred to in paragraph 
        (1).

    (c) Duration.--No incentive may be paid under the pilot program for 
training commenced after September 30, 2005.
    (d) Definitions.--In this section:
            (1) The term ``non-Federal employer'' means an employer that 
        is not an Executive agency, as defined in section 105 of title 
        5, United States Code, or an entity in the legislative or 
        judicial branch of the Federal Government.
            (2) The term ``reduction in force'' has the meaning of that 
        term as used in chapter 35 of such title 5.
            (3) The term ``realignment'' has the meaning given that term 
        in section 2910 of the Defense Base Closure and Realignment Act 
        of 1990 (title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
SEC. 1103. AUTHORITY OF CIVILIAN EMPLOYEES TO ACT AS NOTARIES.

    (a) Clarification of Status of Civilian Attorneys Eligible To Act as 
Notaries.--Subsection (b) of section 1044a of title 10, United States 
Code, is amended by striking ``legal assistance officers'' in paragraph 
(2) and inserting ``legal assistance attorneys''.
    (b) Other Civilian Employees Designated To Act as Notaries Abroad.--
Such subsection is further amended by adding at the end the following 
new paragraph:
            ``(5) For the performance of notarial acts at locations 
        outside the United States, all employees of a military 
        department or the Coast Guard who are designated by regulations 
        of the Secretary concerned or by statute to have those powers 
        for exercise outside the United States.''.
SEC. 1104. AUTHORITY TO APPOINT CERTAIN HEALTH CARE PROFESSIONALS 
                          IN THE EXCEPTED SERVICE.

    (a) Authority.--Chapter 81 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1599c. Appointment in excepted service of certain health 
                      care professionals

    ``(a) Authority.--The Secretary of Defense may appoint in the 
excepted service without regard to the provisions of subchapter I of 
chapter 33 of title 5 (except as provided in section 3328 of such title 
and in subsection (c) of this section) an individual who has--
            ``(1) a recognized degree or certificate from an accredited 
        institution in a covered health care profession or occupation; 
        and
            ``(2) successfully completed a clinical education program 
        affiliated with the Department of Defense or the Department of 
        Veterans Affairs.

[[Page 115 STAT. 1237]]

    ``(b) Covered Health Care Profession or Occupation.--For purposes of 
subsection (a), a covered health care profession or occupation is any of 
the following:
            ``(1) Physician.
            ``(2) Dentist.
            ``(3) Podiatrist.
            ``(4) Optometrist.
            ``(5) Nurse.
            ``(6) Physician assistant.
            ``(7) Expanded-function dental auxiliary.

    ``(c) Preferences in Hiring.--In using the authority provided by 
this section, the Secretary shall apply the principles of preference for 
the hiring of veterans and other individuals established in subchapter I 
of chapter 33 of title 5.
    ``(d) Probationary Period.--There shall be an initial probationary 
period of two years for appointments made under the authority of this 
section.
    ``(e) Promotions and Advancement.--(1) Promotions of individuals 
appointed under the authority of this section shall be made only after 
an examination performed in accordance with regulations prescribed by 
the Secretary.
    ``(2) Advancement of such individuals within a pay grade may be made 
in increments of the minimum rate of basic pay of the grade in 
accordance with regulations prescribed by the Secretary.
    ``(f) Review of Records by Board.--The record of each individual 
appointed under the authority of this section in the medical, dental, 
and nursing services shall be reviewed periodically by a board, which 
shall be appointed in accordance with regulations prescribed by the 
Secretary. If such board finds that such individual is not fully 
qualified and satisfactory, such individual shall be separated from 
service.
    ``(g) Adjustment of Pay.--In accordance with regulations prescribed 
by the Secretary, the grade and annual rate of basic pay of an 
individual appointed under this section whose level of assignment is 
changed from a level of assignment in which the grade level is based on 
both the nature of the assignment and qualifications may be adjusted to 
the grade and annual rate of basic pay otherwise appropriate.
    ``(h) Appointment to Additional Positions.--(1) The Secretary may 
use the authority of this subsection (subject to paragraph (2)) to 
establish the qualifications for, and appoint and advance an individual 
in the Department of Defense as--
            ``(A) a clinical or counseling psychologist (if such 
        psychologist holds a diploma as a diplomate in psychology from 
        an accrediting authority approved by the Secretary);
            ``(B) a certified or registered respiratory therapist;
            ``(C) a licensed physical therapist;
            ``(D) a licensed practical or vocational nurse;
            ``(E) a pharmacist; or
            ``(F) an occupational therapist.

    ``(2) Notwithstanding any other provision of this title or any other 
law, all matters relating to adverse actions, disciplinary actions, and 
grievance procedures involving an individual appointed to a position 
described in paragraph (1) (including such actions and procedures 
involving an employee in a probationary status) shall be resolved under 
the provisions of title 5 as though such individual had been appointed 
under such title.

[[Page 115 STAT. 1238]]

    ``(i) Reinstatement.--In determining eligibility for reinstatement 
in the civil service of individuals appointed to positions in the 
Department of Defense under this section who at the time of appointment 
have a civil service status and whose employment in the Department of 
Defense is terminated, the period of service performed in the Department 
shall be included in computing the period of service under applicable 
civil service regulations.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``1599c. Appointment in excepted service of certain health care 
              professionals.''.

           Subtitle B--Civilian Personnel Management Generally

SEC. 1111. AUTHORITY TO PROVIDE HOSTILE FIRE PAY.

    (a) In General.--Subchapter IV of chapter 59 of title 5, United 
States Code, is amended by adding at the end the following new section:

``Sec. 5949. Hostile fire pay

    ``(a) The head of an Executive agency may pay an employee hostile 
fire pay at the rate of $150 for any month in which the employee was--
            ``(1) subject to hostile fire or explosion of hostile mines;
            ``(2) on duty in an area in which the employee was in 
        imminent danger of being exposed to hostile fire or explosion of 
        hostile mines and in which, during the period on duty in that 
        area, other employees were subject to hostile fire or explosion 
        of hostile mines; or
            ``(3) killed, injured, or wounded by hostile fire, explosion 
        of a hostile mine, or any other hostile action.

    ``(b) An employee covered by subsection (a)(3) who is hospitalized 
for the treatment of his or her injury or wound may be paid hostile fire 
pay under this section for not more than three additional months during 
which the employee is so hospitalized.
    ``(c) An employee may be paid hostile fire pay under this section in 
addition to other pay and allowances to which entitled, except that an 
employee may not be paid hostile fire pay under this section for periods 
of time during which the employee receives payment under section 5925 of 
this title because of exposure to political violence or payment under 
section 5928 of this title.''.
    (b) Technical Amendment.--The table of sections at the beginning of 
chapter 59 of such title is amended by inserting at the end the 
following new item:

``5949. Hostile fire pay.''.

    (c) Effective <<NOTE: 10 USC 5949 note.>> Date.--This provision is 
effective as if enacted into law on September 11, 2001, and may be 
applied with respect to any hostile action that took place on or after 
that date.
SEC. 1112. PAYMENT OF EXPENSES TO OBTAIN PROFESSIONAL CREDENTIALS.

    (a) In General.--Chapter 57 of title 5, United States Code, is 
amended by adding at the end the following new section:

[[Page 115 STAT. 1239]]

``Sec. 5757. Payment of expenses to obtain professional 
                    credentials

    ``(a) An agency may use appropriated funds or funds otherwise 
available to the agency to pay for--
            ``(1) expenses for employees to obtain professional 
        credentials, including expenses for professional accreditation, 
        State-imposed and professional licenses, and professional 
        certification; and
            ``(2) examinations to obtain such credentials.

    ``(b) The authority under subsection (a) may not be exercised on 
behalf of any employee occupying or seeking to qualify for appointment 
to any position that is excepted from the competitive service because of 
the confidential, policy-determining, policy-making, or policy-
advocating character of the position.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:
``5757. Payment of expenses to obtain professional credentials.''.
SEC. 1113. PARITY IN ESTABLISHMENT OF WAGE SCHEDULES AND RATES FOR 
                          PREVAILING RATE EMPLOYEES.

    (a) In General.--Paragraph (2) of section 5343(d) of title 5, United 
States Code, is amended to read as follows:
    ``(2) When the lead agency determines that there is a number of 
comparable positions in private industry insufficient to establish the 
wage schedules and rates, such agency shall establish the wage schedules 
and rates on the basis of--
            ``(A) local private industry rates; and
            ``(B) rates paid for comparable positions in private 
        industry in the nearest wage area that such agency determines is 
        most similar in the nature of its population, employment, 
        manpower, and industry to the local wage area for which the wage 
        survey is being made.''.

    (b) Effective <<NOTE: 5 USC 5343 note.>> Date.--Wage adjustments 
made pursuant to the amendment made by this section shall take effect in 
each applicable wage area on the first normal effective date of the 
applicable wage survey adjustment that occurs after the date of the 
enactment of this Act.
SEC. 1114. MODIFICATION OF LIMITATION ON PREMIUM PAY.

    (a) In General.--Section 5547 of title 5, United States Code, is 
amended to read as follows:

``Sec. 5547. Limitation on premium pay

    ``(a) An employee may be paid premium pay under sections 5542, 5545 
(a), (b), and (c), 5545a, and 5546 (a) and (b) only to the extent that 
the payment does not cause the aggregate of basic pay and such premium 
pay for any pay period for such employee to exceed the greater of--
            ``(1) the maximum rate of basic pay payable for GS-15 
        (including any applicable locality-based comparability payment 
        under section 5304 or similar provision of law and any 
        applicable special rate of pay under section 5305 or similar 
        provision of law); or
            ``(2) the rate payable for level V of the Executive 
        Schedule.

    ``(b)(1) Subject to regulations prescribed by the Office of 
Personnel Management, subsection (a) shall not apply to an employee

[[Page 115 STAT. 1240]]

who is paid premium pay by reason of work in connection with an 
emergency (including a wildfire emergency) that involves a direct threat 
to life or property, including work performed in the aftermath of such 
an emergency.
    ``(2) Notwithstanding paragraph (1), no employee referred to in such 
paragraph may be paid premium pay under the provisions of law cited in 
subsection (a) if, or to the extent that, the aggregate of the basic pay 
and premium pay under those provisions for such employee would, in any 
calendar year, exceed the greater of--
            ``(A) the maximum rate of basic pay payable for GS-15 in 
        effect at the end of such calendar year (including any 
        applicable locality-based comparability payment under section 
        5304 or similar provision of law and any applicable special rate 
        of pay under section 5305 or similar provision of law); or
            ``(B) the rate payable for level V of the Executive Schedule 
        in effect at the end of such calendar year.

    ``(3) Subject to regulations prescribed by the Office of Personnel 
Management, the head of an agency may determine that subsection (a) 
shall not apply to an employee who is paid premium pay to perform work 
that is critical to the mission of the agency. Such employees may be 
paid premium pay under the provisions of law cited in subsection (a) if, 
or to the extent that, the aggregate of the basic pay and premium pay 
under those provisions for such employee would not, in any calendar 
year, exceed the greater of--
            ``(A) the maximum rate of basic pay payable for GS-15 in 
        effect at the end of such calendar year (including any 
        applicable locality-based comparability payment under section 
        5304 or similar provision of law and any applicable special rate 
        of pay under section 5305 or similar provision of law); or
            ``(B) the rate payable for level V of the Executive Schedule 
        in effect at the end of such calendar year.

    ``(c) <<NOTE: Regulations.>> The Office of Personnel Management 
shall prescribe regulations governing the methods of applying subsection 
(b)(2) and (b)(3) to employees who receive premium pay under section 
5545(c) or 5545a, or to firefighters covered by section 5545b who 
receive overtime pay for hours in their regular tour of duty, and the 
method of payment to such employees. Such regulations may limit the 
payment of such premium pay on a biweekly basis.

    ``(d) This section shall not apply to any employee of the Federal 
Aviation Administration or the Department of Defense who is paid premium 
pay under section 5546a.''.
    (b) Conforming Amendment.--Section 118 of the Treasury and General 
Government Appropriations Act, 2001 (as enacted into law by section 1(3) 
of Public Law 106-554; <<NOTE: 5 USC 5547 note.>> 114 Stat. 2763A-134) 
is amended by striking ``limitation on the rate of pay payable during a 
pay period contained in section 5547(c)(2)'' and inserting 
``restrictions contained in section 5547''.

    (c) Effective <<NOTE: 5 USC 5547 note.>> Date.--The amendments made 
by subsections (a) and (b) shall take effect on the first day of the 
first pay period beginning on or after the date that is 120 days 
following the date of enactment of this Act.

[[Page 115 STAT. 1241]]

SEC. 1115. PARTICIPATION OF PERSONNEL IN TECHNICAL STANDARDS 
                          DEVELOPMENT ACTIVITIES.

    Subsection (d) of section 12 of the National Technology Transfer and 
Advancement Act of 1995 (Pub. Law 104-113; 15 U.S.C. 272 note) is 
amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
            ``(4) Expenses of government personnel.--Section 5946 of 
        title 5, United States Code, shall not apply with respect to any 
        activity of an employee of a Federal agency or department that 
        is determined by the head of that agency or department as being 
        an activity undertaken in carrying out this subsection.''.
SEC. 1116. RETENTION <<NOTE: 5 USC 5702 note.>> OF TRAVEL 
                          PROMOTIONAL ITEMS.

    (a) Definition.--In this section, the term ``agency'' has the 
meaning given that term under section 5701 of title 5, United States 
Code.
    (b) Retention of Travel Promotional Items.--To the extent provided 
under subsection (c), a Federal employee, member of the Foreign Service, 
member of a uniformed service, any family member or dependent of such an 
employee or member, or other individual who receives a promotional item 
(including frequent flyer miles, upgrade, or access to carrier clubs or 
facilities) as a result of using travel or transportation services 
obtained at Federal Government expense or accepted under section 1353 of 
title 31, United States Code, may retain the promotional item for 
personal use if the promotional item is obtained under the same terms as 
those offered to the general public and at no additional cost to the 
Federal Government.
    (c) Limitation.--Subsection (b)--
            (1) applies only to travel that--
                    (A) is at the expense of an agency; or
                    (B) is accepted by an agency under section 1353 of 
                title 31, United States Code; and
            (2) does not apply to travel by any officer, employee, or 
        other official of the Government who is not in or under any 
        agency.

    (d) Regulatory Authority.--Any agency with authority to prescribe 
regulations governing the acquisition, acceptance, use, or disposal of 
any travel or transportation services obtained at Government expense or 
accepted under section 1353 of title 31, United States Code, may 
prescribe regulations to carry out subsection (b) with respect to those 
travel or transportation services.
    (e) Repeal of Superseded Law.--Section 6008 of the Federal 
Acquisition Streamlining Act of 1994 (5 U.S.C. 5702 note; Public Law 
103-355) is repealed.
    (f) Applicability.--This section shall apply with respect to 
promotional items received before, on, or after the date of enactment of 
this Act.
SEC. 1117. APPLICABILITY OF CERTAIN LAWS TO CERTAIN INDIVIDUALS 
                          ASSIGNED TO WORK IN THE FEDERAL 
                          GOVERNMENT.

    Section 3374(c)(2) of title 5, United States Code, is amended by 
inserting ``the Ethics in Government Act of 1978, section 27

[[Page 115 STAT. 1242]]

of the Office of Federal Procurement Policy Act,'' after ``chapter 73 of 
this title,''.

               Subtitle C--Intelligence Civilian Personnel

SEC. 1121. AUTHORITY TO INCREASE MAXIMUM NUMBER OF POSITIONS IN 
                          THE DEFENSE INTELLIGENCE SENIOR 
                          EXECUTIVE SERVICE.

    Section 1606(a) of title 10, United States Code, is amended by 
striking ``517'' and inserting ``544''.

               Subtitle D--Matters Relating To Retirement

SEC. 1131. IMPROVED PORTABILITY OF RETIREMENT COVERAGE FOR 
                          EMPLOYEES MOVING BETWEEN CIVIL SERVICE 
                          EMPLOYMENT AND EMPLOYMENT BY 
                          NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Civil Service Retirement System.--Section 8347(q) of title 5, 
United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
            (2) in paragraph (2)(B)--
                    (A) by striking ``vested''; and
                    (B) by striking ``, as the term'' and all that 
                follows through ``such system''.

    (b) Federal Employees' Retirement System.--Section 8461(n) of such 
title is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
            (2) in paragraph (2)(B)--
                    (A) by striking ``vested''; and
                    (B) by striking ``, as the term'' and all that 
                follows through ``such system''.
SEC. 1132. FEDERAL EMPLOYMENT RETIREMENT CREDIT FOR 
                          NONAPPROPRIATED FUND INSTRUMENTALITY 
                          SERVICE.

    (a) Civil Service Retirement System.--(1) Section 8332(b) of title 
5, United States Code, is amended--
            (A) by striking ``and'' at the end of paragraph (15);
            (B) by striking the period at the end of paragraph (16) and 
        inserting ``; and'';
            (C) by inserting after paragraph (16) the following new 
        paragraph:
            ``(17) service performed by any individual as an employee 
        paid from nonappropriated funds of an instrumentality of the 
        Department of Defense or the Coast Guard described in section

[[Page 115 STAT. 1243]]

        2105(c) that is not covered by paragraph (16) and that is not 
        otherwise creditable, if the individual elects (in accordance 
        with regulations prescribed by the Office) to have such service 
        credited under this paragraph.'';
            (D) in the last sentence, by inserting ``or (17)'' after 
        ``service of the type described in paragraph (16)''; and
            (E) by inserting after the last sentence the following: 
        ``Service credited under paragraph (17) may not also be credited 
        under any other retirement system provided for employees paid 
        from nonappropriated funds of a nonappropriated fund 
        instrumentality.''.

    (2) Section 8334 of such title is amended by adding at the end the 
following new subsection:
    ``(n) Notwithstanding subsection (c), no deposit may be made with 
respect to service credited under section 8332(b)(17).''.
    (3) Section 8339 of such title is amended by adding at the end the 
following new subsection:
    ``(u) The annuity of an employee retiring under this subchapter with 
service credited under section 8332(b)(17) shall be reduced by the 
amount necessary to ensure that the present value of the annuity payable 
to the employee is actuarially equivalent to the present value of the 
annuity that would be payable to the employee under this subchapter if 
it were computed--
            ``(1) on the basis of service that does not include service 
        credited under section 8332(b)(17); and
            ``(2) assuming the employee separated from service on the 
        actual date of the separation of the employee.

The amount of the reduction shall be computed under regulations 
prescribed by the Office of Personnel Management for the administration 
of this subsection.''.
    (b) Federal Employees' Retirement System.--(1) Section 8411 of such 
title is amended--
            (A) in subsection (b)--
                    (i) by striking ``and'' at the end of paragraph (4);
                    (ii) by striking the period at the end of paragraph 
                (5) and inserting ``; and''; and
                    (iii) by inserting after paragraph (5) the following 
                new paragraph:
            ``(6) service performed by any individual as an employee 
        paid from nonappropriated funds of an instrumentality of the 
        Department of Defense or the Coast Guard described in section 
        2105(c) that is not otherwise creditable, if the individual 
        elects (in accordance with regulations prescribed by the Office) 
        to have such service credited under this paragraph.''; and
            (B) by adding at the end the following new subsection:

    ``(k)(1) The Office of Personnel Management shall accept, for the 
purposes of this chapter, the certification of the head of a 
nonappropriated fund instrumentality of the United States concerning 
service of the type described in subsection (b)(6) that was performed 
for such nonappropriated fund instrumentality.
    ``(2) Service credited under subsection (b)(6) may not also be 
credited under any other retirement system provided for employees paid 
from nonappropriated funds of a nonappropriated fund instrumentality.''.
    (2)(A) Section 8422 of such title is amended by adding at the end 
the following new subsection:

[[Page 115 STAT. 1244]]

    ``(h) No deposit may be made with respect to service credited under 
section 8411(b)(6).''.
    (B) The heading for such section is amended to read as follows:
``Sec. 8422. Deductions from pay; contributions for other 
                    service''.

    (C) The item relating to such section in the table of contents at 
the beginning of chapter 84 of title 5, United States Code, is amended 
to read as follows:
``8422. Deductions from pay; contributions for other service.''.

    (3) Section 8415 of such title is amended by adding at the end the 
following new subsection:
    ``(j) The annuity of an employee retiring under this chapter with 
service credited under section 8411(b)(6) shall be reduced by the amount 
necessary to ensure that the present value of the annuity payable to the 
employee under this subchapter is actuarially equivalent to the present 
value of the annuity that would be payable to the employee under this 
subchapter if it were computed--
            ``(1) on the basis of service that does not include service 
        credited under section 8411(b)(6); and
            ``(2) assuming the employee separated from service on the 
        actual date of the separation of the employee.

The amount of the reduction shall be computed under regulations 
prescribed by the Office of Personnel Management for the administration 
of this subsection.''.
    (c) Applicability.--The <<NOTE: 5 USC 8332 note.>> amendments made 
by this section shall apply only to separations from service as an 
employee of the United States on or after the date of the enactment of 
this Act.
SEC. 1133. MODIFICATION OF LIMITATIONS ON EXERCISE OF VOLUNTARY 
                          SEPARATION INCENTIVE PAY AUTHORITY AND 
                          VOLUNTARY EARLY RETIREMENT AUTHORITY.

    (a) In General.--Section 1153(b) of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-323) <<NOTE: 5 USC 5597 note.>> is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1) Subject to paragraph (2), 
                the'' and inserting ``The'';
                    (B) by striking ``in each of fiscal years 2002 and 
                2003, not more than 4000 employees of the Department of 
                Defense are'' and inserting ``in fiscal year 2002 not 
                more than 2000 employees of the Department of Defense 
                are, and in fiscal year 2003 not more than 6000 
                employees of the Department of Defense are''; and
                    (C) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively; and
            (2) by striking paragraph (2).

    (b) Construction.--The <<NOTE: 5 USC 5597 note.>> amendments made by 
subsection (a) may be superceded by another provision of law that takes 
effect after the date of the enactment of this Act, and before October 
1, 2003, establishing a uniform system of providing voluntary separation 
incentives (including a system for requiring approval of plans by the 
Office of Management and Budget) for employees of the Federal 
Government.

[[Page 115 STAT. 1245]]

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

       Subtitle A--Matters Related to Arms Control and Monitoring

Sec. 1201. Clarification of authority to furnish nuclear test monitoring 
                      equipment to foreign governments.
Sec. 1202. Limitation on funding for Joint Data Exchange Center in 
                      Moscow.
Sec. 1203. Support of United Nations-sponsored efforts to inspect and 
                      monitor Iraqi weapons activities.
Sec. 1204. Authority for employees of Federal Government contractors to 
                      accompany chemical weapons inspection teams at 
                      Government-owned facilities.
Sec. 1205. Plan for securing nuclear weapons, material, and expertise of 
                      the states of the former Soviet Union.

   Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

Sec. 1211. Acquisition of logistical support for security forces.
Sec. 1212. Extension of authority for international cooperative research 
                      and development projects.
Sec. 1213. Cooperative agreements with foreign countries and 
                      international organizations for reciprocal use of 
                      test facilities.
Sec. 1214. Sense of Congress on allied defense burdensharing.

                           Subtitle C--Reports

Sec. 1221. Report on significant sales and transfers of military 
                      hardware, expertise, and technology to the 
                      People's Republic of China.
Sec. 1222. Repeal of requirement for reporting to Congress on military 
                      deployments to Haiti.
Sec. 1223. Report by Comptroller General on provision of defense 
                      articles, services, and military education and 
                      training to foreign countries and international 
                      organizations.

       Subtitle A--Matters Related to Arms Control and Monitoring

SEC. 1201. CLARIFICATION OF AUTHORITY TO FURNISH NUCLEAR TEST 
                          MONITORING EQUIPMENT TO FOREIGN 
                          GOVERNMENTS.

    (a) Redesignation of Existing Section.--(1) The second section 2555 
of title 10, United States Code, added by section 1203(a) of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-324), is 
redesignated as section 2565.
    (2) The item relating to that section in the table of sections at 
the beginning of chapter 152 of that title is amended to read as 
follows:
``2565. Nuclear test monitoring equipment: furnishing to foreign 
            governments.''.

    (b) Clarification of Authority.--Section 2565 of that title, as so 
redesignated by subsection (a), is amended--
            (1) in subsection (a)--
                    (A) by striking ``Convey or'' in the subsection 
                heading and inserting ``Transfer Title to or 
                Otherwise'';
                    (B) in paragraph (1)--
                          (i) by striking ``convey'' and inserting 
                      ``transfer title''; and
                          (ii) by striking ``and'' at the end;
                    (C) by striking the period at the end of paragraph 
                (2) and inserting ``; and''; and

[[Page 115 STAT. 1246]]

                    (D) by adding at the end the following new 
                paragraph:
            ``(3) inspect, test, maintain, repair, or replace any such 
        equipment.''; and
            (2) in subsection (b)--
                    (A) by striking ``conveyed or otherwise provided'' 
                and inserting ``provided to a foreign government'';
                    (B) by inserting ``and'' at the end of paragraph 
                (1);
                    (C) by striking ``; and'' at the end of paragraph 
                (2) and inserting a period; and
                    (D) by striking paragraph (3).
SEC. 1202. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN 
                          MOSCOW.

    (a) Limitation.--Not more than 50 percent of the funds made 
available to the Department of Defense for fiscal year 2002 for 
activities associated with the Joint Data Exchange Center in Moscow, 
Russia, may be obligated for any such activity until--
            (1) the United States and the Russian Federation enter into 
        a cost-sharing agreement as described in subsection (d) of 
        section 1231 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001, as enacted into law by 
        Public Law 106-398 (114 Stat. 1654A-329);
            (2) the United States and the Russian Federation enter into 
        an agreement or agreements exempting the United States and any 
        United States person from Russian taxes, and from liability 
        under Russian laws, with respect to activities associated with 
        the Joint Data Exchange Center;
            (3) 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 copy of each agreement 
        referred to in paragraphs (1) and (2); and
            (4) a period of 30 days has expired after the date of the 
        final submission under paragraph (3).

    (b) Joint Data Exchange Center.--For purposes of this section, the 
term ``Joint Data Exchange Center'' means the United States-Russian 
Federation joint center for the exchange of data to provide early 
warning of launches of ballistic missiles and for notification of such 
launches that is provided for in a joint United States-Russian 
Federation memorandum of agreement signed in Moscow in June 2000.
SEC. 1203. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT 
                          AND MONITOR IRAQI WEAPONS ACTIVITIES.

    (a) Limitation on Amount of Assistance in Fiscal Year 2002.--The 
total amount of the assistance for fiscal year 2002 that is provided by 
the Secretary of Defense under section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the 
Department of Defense in support of activities under that Act may not 
exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f) of 
section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 
U.S.C. 5859a) is amended by striking ``2001'' and inserting ``2002''.

[[Page 115 STAT. 1247]]

SEC. 1204. AUTHORITY FOR EMPLOYEES OF FEDERAL GOVERNMENT 
                          CONTRACTORS TO ACCOMPANY CHEMICAL 
                          WEAPONS INSPECTION TEAMS AT GOVERNMENT-
                          OWNED FACILITIES.

    (a) Authority.--Section 303(b)(2) of the Chemical Weapons Convention 
Implementation Act of 1998 (22 U.S.C. 6723(b)(2)) is amended by 
inserting after ``designation of employees of the Federal Government'' 
the following: ``(and, in the case of an inspection of a United States 
Government facility, the designation of contractor personnel who shall 
be led by an employee of the Federal Government)''.
    (b) Credentials.--Section 304(c) of such Act (22 U.S.C. 6724(c)) is 
amended by striking ``Federal government'' and inserting ``Federal 
Government (and, in the case of an inspection of a United States 
Government facility, any accompanying contractor personnel)''.
SEC. 1205. PLAN FOR SECURING NUCLEAR WEAPONS, MATERIAL, AND 
                          EXPERTISE OF THE STATES OF THE FORMER 
                          SOVIET UNION.

    (a) Plan <<NOTE: Deadline. President.>> Required.--Not later than 
June 15, 2002, the President shall submit to Congress a plan, that has 
been developed in coordination with all relevant Federal agencies--
            (1) for cooperating with Russia on disposing, as soon as 
        practicable, of nuclear weapons and weapons-usable nuclear 
        material in Russia that Russia does not retain in its nuclear 
        arsenals;
            (2) for assisting Russia in downsizing its nuclear weapons 
        research and production complex;
            (3) for cooperating with the other states of the former 
        Soviet Union on disposing, as soon as practicable, of all 
        nuclear weapons and weapons-usable nuclear material in such 
        states; and
            (4) for preventing the outflow from the states of the former 
        Soviet Union of scientific expertise that could be used for 
        developing nuclear weapons, other weapons of mass destruction, 
        and delivery systems for such weapons.

    (b) Content of Plan.--The plan required by subsection (a) shall 
include the following:
            (1) Specific goals and measurable objectives for programs 
        that are designed to carry out the objectives described in 
        subsection (a).
            (2) Criteria for success for such programs, and a strategy 
        for eventual termination of United States contributions to such 
        programs and assumption of the ongoing support of those programs 
        by others.
            (3) A description of any administrative and organizational 
        changes necessary to improve the coordination and effectiveness 
        of such programs. In particular, the plan shall include 
        consideration of the creation of an interagency committee that 
        would have primary responsibilities within the executive branch 
        for--
                    (A) monitoring United States nonproliferation 
                efforts in the states of the former Soviet Union;
                    (B) coordinating the implementation of United States 
                policy with respect to such efforts; and
                    (C) recommending to the President integrated 
                policies, budget options, and private sector and 
                international contributions for such programs.

[[Page 115 STAT. 1248]]

            (4) An estimate of the cost of carrying out such programs.

    (c) Consultation.--In developing the plan required by subsection 
(a), the President--
            (1) is encouraged to consult with the relevant states of the 
        former Soviet Union regarding the practicality of various 
        options; and
            (2) shall consult with the majority and minority leadership 
        of the appropriate committees of Congress.

   Subtitle B--Matters Relating to Allies and Friendly Foreign Nations

SEC. 1211. ACQUISITION OF LOGISTICAL SUPPORT FOR SECURITY FORCES.

    Section 5 of the Multinational Force and Observers Participation 
Resolution (22 U.S.C. 3424) is amended by adding at the end the 
following new subsection:
    ``(d)(1) <<NOTE: Contracts.>> The United States may use contractors 
to provide logistical support to the Multinational Force and Observers 
under this section in lieu of providing such support through a 
logistical support unit comprised of members of the United States Armed 
Forces.

    ``(2) Notwithstanding subsections (a) and (b) and section 7(b), 
support by a contractor under this subsection may be provided without 
reimbursement whenever the President determines that such action 
enhances or supports the national security interests of the United 
States.''.
SEC. 1212. EXTENSION OF AUTHORITY FOR INTERNATIONAL COOPERATIVE 
                          RESEARCH AND DEVELOPMENT PROJECTS.

    (a) Eligibility of Friendly Foreign Countries.--Section 2350a of 
title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a) Authority To 
                Engage in Cooperative R&D Projects.--'';
                    (B) by striking ``major allies of the United States 
                or NATO organizations'' and inserting ``countries or 
                organizations referred to in paragraph (2)''; and
                    (C) by adding at the end the following new 
                paragraph:

    ``(2) The countries and organizations with which the Secretary may 
enter into a memorandum of agreement (or other formal agreement) under 
paragraph (1) are as follows:
            ``(A) The North Atlantic Treaty Organization.
            ``(B) A NATO organization.
            ``(C) A member nation of the North Atlantic Treaty 
        Organization.
            ``(D) A major non-NATO ally.
            ``(E) Any other friendly foreign country.'';
            (2) in subsection (b)(1)--
                    (A) by striking ``its major non-NATO allies'' and 
                inserting ``a country or organization referred to in 
                subsection (a)(2)''; and
                    (B) by striking ``(NATO)'';
            (3) in subsection (d)--

[[Page 115 STAT. 1249]]

                    (A) in paragraph (1), by striking ``the major allies 
                of the United States'' and inserting ``countries and 
                organizations referred to in subsection (a)(2)''; and
                    (B) in paragraph (2)--
                          (i) by striking ``major ally of the United 
                      States'' and inserting ``country or organization 
                      referred to in subsection (a)(2)''; and
                          (ii) by striking ``that ally's contribution'' 
                      and inserting ``the contribution of that country 
                      or organization'';
            (4) in subsection (e)(2)--
                    (A) in subparagraph (A), by striking ``one or more 
                of the major allies of the United States'' and inserting 
                ``any country or organization referred to in subsection 
                (a)(2)'';
                    (B) in subparagraph (B), by striking ``major allies 
                of the United States or NATO organizations'' and 
                inserting ``countries and organizations referred to in 
                subsection (a)(2)'';
                    (C) in subparagraph (C), by striking ``major allies 
                of the United States'' and inserting ``countries and 
                organizations referred to in subsection (a)(2)''; and
                    (D) in subparagraph (D), by striking ``major allies 
                of the United States'' and inserting ``countries and 
                organizations referred to in subsection (a)(2)'';
            (5) paragraphs (1)(A) and (4)(A) of subsection (g), by 
        striking ``major allies of the United States and other friendly 
        foreign countries'' and inserting ``countries referred to in 
        subsection (a)(2)'';
            (6) in subsection (h), by striking ``major allies of the 
        United States'' and inserting ``member nations of the North 
        Atlantic Treaty Organization, major non-NATO allies, and other 
        friendly foreign countries''; and
            (7) in subsection (i)--
                    (A) in paragraph (1), by striking ``major allies of 
                the United States or NATO organizations'' and inserting 
                ``countries and organizations referred to in subsection 
                (a)(2)'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively.

    (b) Notice-and-Wait Requirement.--Subsection (a) of such section is 
further amended by adding at the end the following new paragraph:
    ``(3) If such a memorandum of understanding (or other formal 
agreement) is with a country referred to in subparagraph (E) of 
paragraph (2), such memorandum (or agreement) may go into effect only 
after the Secretary submits to the Committees on Armed Services and on 
Foreign Relations of the Senate and to the Committees on Armed Services 
and on International Relations of the House of Representatives a report 
with respect to the proposed memorandum (or agreement) and a period of 
30 days has passed after the report has been submitted.''.
    (c) Delegation of Authority To Determine Eligibility of Projects.--
Subsection (b)(2) of such section is amended by striking ``to the Deputy 
Secretary of Defense'' and all that follows through the period at the 
end and inserting ``to the Deputy Secretary of Defense and to one other 
official of the Department of Defense.''.

[[Page 115 STAT. 1250]]

    (d) Revision of Requirement for Annual Report on Eligible 
Countries.--Subsection (f)(2) of such section is amended to read as 
follows:
    ``(2) <<NOTE: Deadline.>> Not later than January 1 of each year, the 
Secretary of Defense shall submit to the Committees on Armed Services 
and on Foreign Relations of the Senate and to the Committees on Armed 
Services and on International Relations of the House of Representatives 
a report specifying--
            ``(A) the countries that are eligible to participate in a 
        cooperative project agreement under this section; and
            ``(B) the criteria used to determine the eligibility of such 
        countries.''.

    (e) Conforming Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 2350a. Cooperative research and development agreements: 
                      NATO organizations; allied and friendly 
                      foreign countries''.

    (2) The item relating to such section in the table of sections at 
the beginning of subchapter II of chapter 138 of title 10, United States 
Code, is amended to read as follows:
``2350a. Cooperative research and development agreements: NATO 
              organizations; allied and friendly foreign countries.''.
SEC. 1213. COOPERATIVE AGREEMENTS WITH FOREIGN COUNTRIES AND 
                          INTERNATIONAL ORGANIZATIONS FOR 
                          RECIPROCAL USE OF TEST FACILITIES.

    (a) Authority.--Subchapter II of chapter 138 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2350l. Cooperative agreements for reciprocal use of test 
                      facilities: foreign countries and 
                      international organizations

    ``(a) Authority.--The Secretary of Defense, with the concurrence of 
the Secretary of State, may enter into a memorandum of understanding (or 
other formal agreement) with a foreign country or international 
organization to provide for the testing, on a reciprocal basis, of 
defense equipment (1) by the United States using test facilities of that 
country or organization, and (2) by that country or organization using 
test facilities of the United States.
    ``(b) Payment of Costs.--A memorandum or other agreement under 
subsection (a) shall provide that, when a party to the agreement uses a 
test facility of another party to the agreement, the party using the 
test facility is charged by the party providing the test facility in 
accordance with the following principles:
            ``(1) The user party shall be charged the amount equal to 
        the direct costs incurred by the provider party in furnishing 
        test and evaluation services by the providing party's officers, 
        employees, or governmental agencies.
            ``(2) The user party may also be charged indirect costs 
        relating to the use of the test facility, but only to the extent 
        specified in the memorandum or other agreement.

    ``(c) Determination of Indirect Costs; Delegation of Authority.--(1) 
The Secretary of Defense shall determine the appropriateness of the 
amount of indirect costs charged by the United States pursuant to 
subsection (b)(2).

[[Page 115 STAT. 1251]]

    ``(2) The Secretary may delegate the authority under paragraph (1) 
only to the Deputy Secretary of Defense and to one other official of the 
Department of Defense.
    ``(d) Retention of Funds Collected by the United States.--Amounts 
collected by the United States from a party using a test facility of the 
United States pursuant to a memorandum or other agreement under this 
section shall be credited to the appropriation accounts from which the 
costs incurred by the United States in providing such test facility were 
paid.
    ``(e) Definitions.--In this section:
            ``(1) The term `direct cost', with respect to the use of a 
        test facility pursuant to a memorandum or other agreement under 
        subsection (a)--
                    ``(A) means any item of cost that is easily and 
                readily identified to a specific unit of work or output 
                within the test facility where the use occurred, that 
                would not have been incurred if such use had not 
                occurred; and
                    ``(B) may include costs of labor, materials, 
                facilities, utilities, equipment, supplies, and any 
                other resources of the test facility that are consumed 
                or damaged in connection with--
                          ``(i) the use; or
                          ``(ii) the maintenance of the test facility 
                      for purposes of the use.
            ``(2) The term `indirect cost', with respect to the use of a 
        test facility pursuant to a memorandum or other agreement under 
        subsection (a)--
                    ``(A) means any item of cost that is not easily and 
                readily identified to a specific unit of work or output 
                within the test facility where the use occurred; and
                    ``(B) may include general and administrative 
                expenses for such activities as supporting base 
                operations, manufacturing, supervision, procurement of 
                office supplies, and utilities that are accumulated 
                costs allocated among several users.
            ``(3) The term `test facility' means a range or other 
        facility at which testing of defense equipment may be carried 
        out.''.

    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:
``2350l. Cooperative agreements for reciprocal use of test facilities: 
              foreign countries and international organizations.''.
SEC. 1214. SENSE OF CONGRESS ON ALLIED DEFENSE BURDENSHARING.

    It is the sense of Congress that--
            (1) the efforts of the President to increase defense 
        burdensharing by allied and friendly nations deserve strong 
        support; and
            (2) host nation support agreements with those nations in 
        which United States military personnel are assigned to permanent 
        duty ashore should be negotiated consistent with section 
        1221(a)(1) of the National Defense Authorization Act for Fiscal 
        Year 1998 (Public Law 105-85; 50 U.S.C. 1541(a)(1)), which sets 
        forth a goal of obtaining from any such host nation financial 
        contributions that amount to 75 percent of the nonpersonnel

[[Page 115 STAT. 1252]]

        costs incurred by the United States Government for stationing 
        United States military personnel in that nation.

                           Subtitle C--Reports

SEC. 1221. REPORT ON SIGNIFICANT SALES AND TRANSFERS OF MILITARY 
                          HARDWARE, EXPERTISE, AND TECHNOLOGY TO 
                          THE PEOPLE'S REPUBLIC OF CHINA.

    Section 1202 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 781; 10 U.S.C. 113 note) is 
amended by adding at the end the following new subsection:
    ``(d) Report on Significant Sales and Transfers to China.--(1) The 
report <<NOTE: Deadline.>> to be submitted under this section not later 
than March 1, 2002, shall include in a separate section a report 
describing any significant sale or transfer of military hardware, 
expertise, and technology to the People's Republic of China. The report 
shall set forth the history of such sales and transfers since 1995, 
forecast possible future sales and transfers, and address the 
implications of those sales and transfers for the security of the United 
States and its friends and allies in Asia.

    ``(2) The report shall include analysis and forecasts of the 
following matters related to military cooperation between selling states 
and the People's Republic of China:
            ``(A) The extent in each selling state of government 
        knowledge, cooperation, or condoning of sales or transfers of 
        military hardware, expertise, or technology to the People's 
        Republic of China.
            ``(B) An itemization of significant sales and transfers of 
        military hardware, expertise, or technology from each selling 
        state to the People's Republic of China that have taken place 
        since 1995, with a particular focus on command, control, 
        communications, and intelligence systems.
            ``(C) Significant assistance by any selling state to key 
        research and development programs of China, including programs 
        for development of weapons of mass destruction and delivery 
        vehicles for such weapons, programs for development of advanced 
        conventional weapons, and programs for development of 
        unconventional weapons.
            ``(D) The extent to which arms sales by any selling state to 
        the People's Republic of China are a source of funds for 
        military research and development or procurement programs in the 
        selling state.

    ``(3) The report under paragraph (1) shall include, with respect to 
each area of analysis and forecasts specified in paragraph (2)--
            ``(A) an assessment of the military effects of such sales or 
        transfers to entities in the People's Republic of China;
            ``(B) an assessment of the ability of the People's 
        Liberation Army to assimilate such sales or transfers, mass 
        produce new equipment, or develop doctrine for use; and
            ``(C) the potential threat of developments related to such 
        effects on the security interests of the United States and its 
        friends and allies in Asia.''.

[[Page 115 STAT. 1253]]

SEC. 1222. REPEAL OF REQUIREMENT FOR REPORTING TO CONGRESS ON 
                          MILITARY DEPLOYMENTS TO HAITI.

    Section 1232(b) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 788; 50 U.S.C. 1541 note) is 
repealed.
SEC. 1223. REPORT BY COMPTROLLER GENERAL ON PROVISION OF DEFENSE 
                          ARTICLES, SERVICES, AND MILITARY 
                          EDUCATION AND TRAINING TO FOREIGN 
                          COUNTRIES AND INTERNATIONAL 
                          ORGANIZATIONS.

    (a) Study.--The Comptroller General shall conduct a study of the 
following:
            (1) The benefits derived by each foreign country or 
        international organization from the receipt of defense articles, 
        defense services, or military education and training provided 
        after December 31, 1989, pursuant to the drawdown of such 
        articles, services, or education and training from the stocks of 
        the Department of Defense under section 506, 516, or 552 of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2318, 2321j, or 2348a) 
        or any other provision of law.
            (2) Any benefits derived by the United States from the 
        provision of defense articles, defense services, and military 
        education and training described in paragraph (1).
            (3) The effect on the readiness of the Armed Forces as a 
        result of the provision by the United States of defense 
        articles, defense services, and military education and training 
        described in paragraph (1).
            (4) The cost to the Department of Defense with respect to 
        the provision of defense articles, defense services, and 
        military education and training described in paragraph (1).

    (b) Reports.--(1) <<NOTE: Deadline.>> Not later than April 15, 2002, 
the Comptroller General shall submit to Congress an interim report 
containing the results to that date of the study conducted under 
subsection (a).

    (2) <<NOTE: Deadline.>> Not later than August 1, 2002, the 
Comptroller General shall submit to Congress a final report containing 
the results of the study conducted under subsection (a).

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
                      funds.
Sec. 1302. Funding allocations.
Sec. 1303. Limitation on use of funds until submission of reports.
Sec. 1304. Requirement to consider use of revenue generated by 
                      activities carried out under Cooperative Threat 
                      Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
                      material storage facility.
Sec. 1306. Prohibition against use of funds for certain construction 
                      activities.
Sec. 1307. Reports on activities and assistance under Cooperative Threat 
                      Reduction programs.
Sec. 1308. Chemical weapons destruction.
Sec. 1309. Additional matter in annual report on activities and 
                      assistance under Cooperative Threat Reduction 
                      programs.

[[Page 115 STAT. 1254]]

SEC. 1301. SPECIFICATION <<NOTE: 22 USC 5952 note.>> OF 
                          COOPERATIVE THREAT REDUCTION PROGRAMS 
                          AND FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note).
    (b) Fiscal Year 2002 Cooperative Threat Reduction Funds Defined.--As 
used in this title, the term ``fiscal year 2002 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $403,000,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2002 in 
section 301(23) for Cooperative Threat Reduction programs, not more than 
the following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $133,405,000.
            (2) For strategic nuclear arms elimination in Ukraine, 
        $51,500,000.
            (3) For nuclear weapons transportation security in Russia, 
        $9,500,000.
            (4) For nuclear weapons storage security in Russia, 
        $56,000,000.
            (5) For biological weapons proliferation prevention 
        activities in the former Soviet Union, $17,000,000.
            (6) For activities designated as Other Assessments/
        Administrative Support, $13,221,000.
            (7) For defense and military contacts, $18,650,000.
            (8) For chemical weapons destruction in Russia, $50,000,000.
            (9) For weapons of mass destruction infrastructure 
        elimination activities in Kazakhstan, $6,000,000.
            (10) For weapons of mass destruction infrastructure 
        elimination activities in Ukraine, $6,024,000.
            (11) For activities to assist Russia in the elimination of 
        plutonium production reactors, $41,700,000.

    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2002 Cooperative Threat Reduction funds may be 
obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (11) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the amount 
of funds to be obligated or expended. Nothing in the preceding sentence 
shall be construed as authorizing the obligation or expenditure of 
fiscal year 2002 Cooperative Threat Reduction funds for a purpose for 
which the obligation or expenditure of such funds is specifically 
prohibited under this title or any other provision of law.

[[Page 115 STAT. 1255]]

    (c) Limited Authority To Vary Individual Amounts.--(1) Subject to 
paragraphs (2) and (3), in any case in which the Secretary of Defense 
determines that it is necessary to do so in the national interest, the 
Secretary may obligate amounts appropriated for fiscal year 2002 for a 
purpose listed in any of the paragraphs in subsection (a) in excess of 
the amount specifically authorized for such purpose.
    (2) An obligation of funds for a purpose stated in any of the 
paragraphs in subsection (a) in excess of the specific amount authorized 
for such purpose may be made using the authority provided in paragraph 
(1) only after--
            (A) <<NOTE: Notification.>> the Secretary submits to 
        Congress notification of the intent to do so together with a 
        complete discussion of the justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.

    (3) The Secretary may not, under the authority provided in paragraph 
(1), obligate amounts for the purposes stated in paragraph (6), (7), or 
(11) of subsection (a) in excess of 115 percent of the amount 
specifically authorized for such purposes.
    (d) Modification of Authority To Vary Individual Amounts of FY 2001 
Funds.--Section 1302(c)(3) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-340) is amended by striking ``(4),''.
SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF REPORTS.

    Not more than 50 percent of fiscal year 2002 Cooperative Threat 
Reduction funds may be obligated or expended until 30 days after the 
date of the submission of--
            (1) the report required to be submitted in fiscal year 2001 
        under section 1308(a) of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into law by 
        Public Law 106-398; 114 Stat. 1654A-341); and
            (2) the multiyear plan required to be submitted for fiscal 
        year 2001 under section 1308(h) of such Act.
SEC. 1304. REQUIREMENT <<NOTE: 22 USC 5952 note.>> TO CONSIDER USE 
                          OF REVENUE GENERATED BY ACTIVITIES 
                          CARRIED OUT UNDER COOPERATIVE THREAT 
                          REDUCTION PROGRAMS.

    The Secretary of Defense shall consider the use of revenue generated 
by activities carried out under Cooperative Threat Reduction programs in 
negotiating and executing contracts with Russia to carry out such 
programs.
SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF 
                          FISSILE MATERIAL STORAGE FACILITY.

    (a) Prohibition.--No <<NOTE: 22 USC 5952 note.>> fiscal year 2002 
Cooperative Threat Reduction funds and no funds authorized to be 
appropriated for Cooperative Threat Reduction programs for any prior 
fiscal year may be used for the construction of a second wing for a 
storage facility for Russian fissile material.

    (b) Conforming Amendment.--Section 1304 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as enacted into 
law by Public Law 106-398; 114 Stat. 1654A-341) <<NOTE: 22 USC 5952 
note.>> is amended to read as follows:

[[Page 115 STAT. 1256]]

``SEC. 1304. LIMITATION ON USE OF FUNDS FOR FISSILE MATERIAL 
                            STORAGE FACILITY.

    ``Out of funds authorized to be appropriated for Cooperative Threat 
Reduction programs for fiscal year 2001 or any other fiscal year, not 
more than $412,600,000 may be used for planning, design, or construction 
of the first wing for the storage facility for Russian fissile material 
referred to in section 1302(a)(5) other than planning, design, or 
construction to improve security at such first wing.''.
SEC. 1306. PROHIBITION AGAINST USE OF FUNDS FOR CERTAIN 
                          CONSTRUCTION ACTIVITIES.

    No fiscal year 2002 Cooperative Threat Reduction funds may be used 
for construction activities carried out under Russia's program to 
eliminate the production of weapons grade plutonium.
SEC. 1307. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER COOPERATIVE 
                          THREAT REDUCTION PROGRAMS.

    Section 1308(c)(4) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-342) <<NOTE: 22 USC 5959.>> is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by striking ``audits'' and all that follows 
                through ``conducted'' and inserting ``means (including 
                program management, audits, examinations, and other 
                means) used''; and
                    (B) by striking ``and that such assistance is being 
                used for its intended purpose'' and inserting ``, that 
                such assistance is being used for its intended purpose, 
                and that such assistance is being used efficiently and 
                effectively'';
            (2) in subparagraph (C), by inserting ``and an assessment of 
        whether the assistance being provided is being used effectively 
        and efficiently'' before the semicolon; and
            (3) in subparagraph (D), by striking ``audits, examinations, 
        and other''.

SEC. 1308. CHEMICAL WEAPONS DESTRUCTION.

    Section 1305 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C. 5952 note) is 
amended by inserting before the period at the end the following: ``until 
the Secretary of Defense submits to Congress a certification that there 
has been--
            ``(1) information provided by Russia, that the United States 
        assesses to be full and accurate, regarding the size of the 
        chemical weapons stockpile of Russia;
            ``(2) a demonstrated annual commitment by Russia to allocate 
        at least $25,000,000 to chemical weapons elimination;
            ``(3) development by Russia of a practical plan for 
        destroying its stockpile of nerve agents;
            ``(4) enactment of a law by Russia that provides for the 
        elimination of all nerve agents at a single site;
            ``(5) an agreement by Russia to destroy or convert its 
        chemical weapons production facilities at Volgograd and 
        Novocheboksark; and
            ``(6) a demonstrated commitment from the international 
        community to fund and build infrastructure needed to support and 
        operate the facility.''.

[[Page 115 STAT. 1257]]

SEC. 1309. ADDITIONAL MATTER IN ANNUAL REPORT ON ACTIVITIES AND 
                          ASSISTANCE UNDER COOPERATIVE THREAT 
                          REDUCTION PROGRAMS.

    Section 1308(c) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-341) (as amended by section 
1308) <<NOTE: 22 USC 5959.>> is further amended by adding at the end of 
the following new paragraph:
            ``(6) A description of the amount of the financial 
        commitment from the international community, and from Russia, 
        for the chemical weapons destruction facility located at 
        Shchuch'ye, Russia, for the fiscal year beginning in the year in 
        which the report is submitted.''.

                 TITLE XIV--ARMED FORCES RETIREMENT HOME

Sec. 1401. Amendment of Armed Forces Retirement Home Act of 1991.
Sec. 1402. Definitions.
Sec. 1403. Revision of authority establishing the Armed Forces 
           Retirement Home.
Sec. 1404. Chief Operating Officer.
Sec. 1405. Residents of Retirement Home.
Sec. 1406. Local Boards of Trustees.
Sec. 1407. Directors, Deputy Directors, Associate Directors, and staff 
           of facilities.
Sec. 1408. Disposition of effects of deceased persons and unclaimed 
           property.
Sec. 1409. Transitional provisions.
Sec. 1410. Conforming and clerical amendments and repeals of obsolete 
           provisions.

SEC. 1401. AMENDMENT OF ARMED FORCES RETIREMENT HOME ACT OF 1991.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or a 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Armed 
Forces Retirement Home Act of 1991 (title XV of Public Law 101-510; 24 
U.S.C. 401 et seq.).

SEC. 1402. DEFINITIONS.

    Section 1502 (24 U.S.C. 401) is amended--
            (1) by striking paragraphs (1), (2), (3), (4), and (5), and 
        inserting the following new paragraphs:
            ``(1) The term `Retirement Home' includes the institutions 
        established under section 1511, as follows:
                    ``(A) The Armed Forces Retirement Home--Washington.
                    ``(B) The Armed Forces Retirement Home--Gulfport.
            ``(2) The term `Local Board' means a Local Board of Trustees 
        established under section 1516.
            ``(3) The terms `Armed Forces Retirement Home Trust Fund' 
        and `Fund' mean the Armed Forces Retirement Home Trust Fund 
        established under section 1519(a).'';
            (2) by redesignating paragraphs (6), (7), and (8) as 
        paragraphs (4), (5), and (6), respectively; and
            (3) in paragraph (5), as so redesignated--
                    (A) in subparagraph (C), by striking ``, Manpower 
                and Personnel'' and inserting ``for Personnel''; and
                    (B) in subparagraph (D), by striking ``with 
                responsibility for personnel matters'' and inserting 
                ``for Manpower and Reserve Affairs''.

[[Page 115 STAT. 1258]]

SEC. 1403. REVISION OF AUTHORITY ESTABLISHING THE ARMED FORCES 
                          RETIREMENT HOME.

    Section 1511 (24 U.S.C. 411) is amended to read as follows:
``SEC. 1511. ESTABLISHMENT OF THE ARMED FORCES RETIREMENT HOME.

    ``(a) Independent Establishment.--The Armed Forces Retirement Home 
is an independent establishment in the executive branch.
    ``(b) Purpose.--The purpose of the Retirement Home is to provide, 
through the Armed Forces Retirement Home--Washington and the Armed 
Forces Retirement Home--Gulfport, residences and related services for 
certain retired and former members of the Armed Forces.
    ``(c) Facilities.--(1) Each facility of the Retirement Home referred 
to in paragraph (2) is a separate establishment of the Retirement Home.
    ``(2) The United States Soldiers' and Airmen's Home is hereby 
redesignated as the Armed Forces Retirement Home--Washington. The Naval 
Home is hereby redesignated as the Armed Forces Retirement Home--
Gulfport.
    ``(d) Operation.--(1) The Chief Operating Officer of the Armed 
Forces Retirement Home is the head of the Retirement Home. The Chief 
Operating Officer is subject to the authority, direction, and control of 
the Secretary of Defense.
    ``(2) Each facility of the Retirement Home shall be maintained as a 
separate establishment of the Retirement Home for administrative 
purposes and shall be under the authority, direction, and control of the 
Director of that facility. The Director of each facility of the 
Retirement Home is subject to the authority, direction, and control of 
the Chief Operating Officer.
    ``(e) Property and Facilities.--(1) The Retirement Home shall 
include such property and facilities as may be acquired under paragraph 
(2) or accepted under section 1515(f) for inclusion in the Retirement 
Home.
    ``(2) The Secretary of Defense may acquire, for the benefit of the 
Retirement Home, property and facilities for inclusion in the Retirement 
Home.
    ``(3) The Secretary of Defense may dispose of any property of the 
Retirement Home, by sale, lease, or otherwise, that the Secretary 
determines is excess to the needs of the Retirement Home. The proceeds 
from such a disposal of property shall be deposited in the Armed Forces 
Retirement Home Trust Fund. No such disposal of real property shall be 
effective earlier than 120 days after the date on which the Secretary 
transmits a notification of the proposed disposal to the Committees on 
Armed Services of the Senate and the House of Representatives.
    ``(f) Department of Defense Support.--The Secretary of Defense may 
make available from the Department of Defense to the Retirement Home, on 
a nonreimbursable basis, administrative support and office services, 
legal and policy planning assistance, access to investigative facilities 
of the Inspector General of the Department of Defense and of the 
military departments, and any other support necessary to enable the 
Retirement Home to carry out its functions under this title.

[[Page 115 STAT. 1259]]

    ``(g) Accreditation.--The Chief Operating Officer shall endeavor to 
secure for each facility of the Retirement Home accreditation by a 
nationally recognized civilian accrediting organization, such as the 
Continuing Care Accreditation Commission and the Joint Commission for 
Accreditation of Health Organizations.
    ``(h) Annual Report.--The Secretary of Defense shall transmit to 
Congress an annual report on the financial and other affairs of the 
Retirement Home for each fiscal year.''.

SEC. 1404. CHIEF OPERATING OFFICER.

    (a) Establishment and Authority of Position.--Section 1515 (24 
U.S.C. 415) is amended to read as follows:

``SEC. 1515. CHIEF OPERATING OFFICER.

    ``(a) Appointment.--(1) The Secretary of Defense shall appoint the 
Chief Operating Officer of the Retirement Home.
    ``(2) The Chief Operating Officer shall serve at the pleasure of the 
Secretary of Defense.
    ``(3) The Secretary of Defense shall evaluate the performance of the 
Chief Operating Officer at least once each year.
    ``(b) Qualifications.--To qualify for appointment as the Chief 
Operating Officer, a person shall--
            ``(1) be a continuing care retirement community 
        professional;
            ``(2) have appropriate leadership and management skills; and
            ``(3) have experience and expertise in the operation and 
        management of retirement homes and in the provision of long-term 
        medical care for older persons.

    ``(c) Responsibilities.--(1) The Chief Operating Officer shall be 
responsible to the Secretary of Defense for the overall direction, 
operation, and management of the Retirement Home and shall report to the 
Secretary on those matters.
    ``(2) The Chief Operating Officer shall supervise the operation and 
administration of the Armed Forces Retirement Home--Washington and the 
Armed Forces Retirement Home--Gulfport, including the Local Boards of 
those facilities.
    ``(3) The Chief Operating Officer shall perform the following 
duties:
            ``(A) Issue, and ensure compliance with, appropriate rules 
        for the operation of the Retirement Home.
            ``(B) Periodically visit, and inspect the operation of, the 
        facilities of the Retirement Home.
            ``(C) Periodically examine and audit the accounts of the 
        Retirement Home.
            ``(D) Establish any advisory body or bodies that the Chief 
        Operating Officer considers to be necessary.

    ``(d) Compensation.--(1) The Secretary of Defense may prescribe the 
pay of the Chief Operating Officer, except that the annual rate of basic 
pay, including locality pay, of the Chief Operating Officer may not 
exceed the annual rate of basic pay payable for level III of the 
Executive Schedule under section 5314 of title 5, United States Code.
    ``(2) In addition to basic pay and any locality pay prescribed for 
the Chief Operating Officer, the Secretary may award the Chief Operating 
Officer, not more than once each year, a bonus based on the performance 
of the Chief Operating Officer for the year. The Secretary shall 
prescribe the amount of any such bonus.

[[Page 115 STAT. 1260]]

    ``(3) The total amount of the basic pay and bonus paid the Chief 
Operating Officer for a year under this section may not exceed the 
annual rate of basic pay payable for level I of the Executive Schedule 
under section 5312 of title 5, United States Code.
    ``(e) Administrative Staff.--(1) The Chief Operating Officer may, 
subject to the approval of the Secretary of Defense, appoint a staff to 
assist in the performance of the Chief Operating Officer's duties in the 
overall administration of the Retirement Home.
    ``(2) The Chief Operating Officer shall prescribe the rates of pay 
applicable to the members of the staff appointed under paragraph (1), 
except that--
            ``(A) a staff member who is a member of the Armed Forces on 
        active duty or who is a full-time officer or employee of the 
        United States may not receive additional pay by reason of 
        service on the administrative staff; and
            ``(B) the limitations in section 5373 of title 5, United 
        States Code, relating to pay set by administrative action, shall 
        apply to the rates of pay prescribed under this paragraph.

    ``(f) Acceptance of Gifts.--(1) The Chief Operating Officer may 
accept gifts of money, property, and facilities on behalf of the 
Retirement Home.
    ``(2) Monies received as gifts, or realized from the disposition of 
property and facilities received as gifts, shall be deposited in the 
Armed Forces Retirement Home Trust Fund.''.
    (b) Transfer of Authorities.--(1) The following provisions are 
amended by striking ``Retirement Home Board'' each place it appears and 
inserting ``Chief Operating Officer'':
            (A) Section 1512 (24 U.S.C. 412), relating to eligibility 
        and acceptance for residence in the Armed Forces Retirement 
        Home.
            (B) Section 1513(a) (24 U.S.C. 412(a)), <<NOTE: 24 USC 
        413.>> relating to services provided to residents of the Armed 
        Forces Retirement Home.
            (C) Section 1518(c) (24 U.S.C. 418(c)), relating to 
        inspection of the Armed Forces Retirement Home.

    (2) Section 1519(c) (24 U.S.C. 419(c)), relating to authority to 
invest funds in the Armed Forces Retirement Home Trust Fund, is amended 
by striking ``Director'' and inserting ``Chief Operating Officer''.
    (3) Section 1521(a) (24 U.S.C. 421(a)), relating to payment of 
residents for services, is amended by striking ``Chairman of the Armed 
Forces Retirement Board'' and inserting ``Chief Operating Officer''.
    (4) Section 1522 (24 U.S.C. 422), relating to authority to accept 
certain uncompensated services, is amended--
            (A) in subsection (a)--
                    (i) by striking ``Chairman of the Retirement Home 
                Board or the Director of each establishment'' and 
                inserting ``Chief Operating Officer or the Director of a 
                facility''; and
                    (ii) by striking ``unless'' and all that follows 
                through ``Retirement Home Board'';
            (B) in subsection (b)(1)--
                    (i) by striking ``Chairman of the Retirement Home 
                Board or the Director of the establishment'' and 
                inserting ``Chief Operating Officer or the Director of a 
                facility''; and
                    (ii) by inserting ``offering the services'' after 
                ``notify the person'';

[[Page 115 STAT. 1261]]

            (C) in subsection (b)(2), by striking ``Chairman'' and 
        inserting ``Chief Operating Officer'';
            (D) in subsection (c), by striking ``Chairman of the 
        Retirement Home Board or the Director of an establishment'' and 
        inserting ``Chief Operating Officer or the Director of a 
        facility''; and
            (E) in subsection (e)--
                    (i) by striking ``Chairman of the Retirement Board 
                or the Director of the establishment'' in the first 
                sentence and inserting ``Chief Operating Officer or the 
                Director of a facility''; and
                    (ii) by striking ``Chairman'' in the second sentence 
                and inserting ``Chief Operating Officer''.

    (5) Section 1523(b) (24 U.S.C. 423(b)), relating to preservation of 
historic buildings and grounds at the Armed Forces Retirement Home--
Washington, is amended by striking ``Chairman of the Retirement Home 
Board'' and inserting ``Chief Operating Officer''.

SEC. 1405. RESIDENTS OF RETIREMENT HOME.

    (a) Repeal of Requirement of Resident To Reapply After Substantial 
Absence.--Subsection (e) of section 1512 (24 U.S.C. 412) is repealed.
    (b) Fees Paid by Residents.--Section 1514 (24 U.S.C. 414) is amended 
to read as follows:

``SEC. 1514. FEES PAID BY RESIDENTS.

    ``(a) Monthly Fees.--The Director of each facility of the Retirement 
Home shall collect a monthly fee from each resident of that facility.
    ``(b) Deposit of Fees.--The Directors shall deposit fees collected 
under subsection (a) in the Armed Forces Retirement Home Trust Fund.
    ``(c) Fixing Fees.--(1) The Chief Operating Officer, with the 
approval of the Secretary of Defense, shall from time to time prescribe 
the fees required by subsection (a). Changes to such fees shall be based 
on the financial needs of the Retirement Home and the ability of the 
residents to pay. A change of a fee may not take effect until 120 days 
after the Secretary of Defense transmits a notification of the change to 
the Committees on Armed Services of the Senate and the House of 
Representatives.
    ``(2) The fee shall be fixed as a percentage of the monthly income 
and monthly payments (including Federal payments) received by a 
resident. The percentage shall be the same for each facility of the 
Retirement Home. The Secretary of Defense may make any adjustment in a 
percentage that the Secretary determines appropriate.
    ``(3) The fee shall be subject to a limitation on maximum monthly 
amount. The amount of the limitation shall be increased, effective on 
January 1 of each year, by the percentage of the increase in retired pay 
and retainer pay that takes effect on the preceding December 1 under 
subsection (b) of section 1401a of title 10, United States Code, without 
regard to paragraph (3) of such subsection. The first increase in a 
limitation on maximum monthly amount shall take effect on January 1, 
2003.
    ``(d) Transitional Fee Structures.--(1) Until different fees are 
prescribed and take effect under subsection (c), the percentages and 
limitations on maximum monthly amount that are applicable to fees 
charged residents of the Retirement Home are (subject

[[Page 115 STAT. 1262]]

to any adjustment that the Secretary of Defense determines appropriate) 
as follows:
            ``(A) For months beginning before January 1, 2002--
                    ``(i) for a permanent health care resident, 65 
                percent (without limitation on maximum monthly amount); 
                and
                    ``(ii) for a resident who is not a permanent health 
                care resident, 40 percent (without limitation on maximum 
                monthly amount).
            ``(B) For months beginning after December 31, 2001--
                    ``(i) for an independent living resident, 35 
                percent, but not to exceed $1,000 each month;
                    ``(ii) for an assisted living resident, 40 percent, 
                but not to exceed $1,500 each month; and
                    ``(iii) for a long-term care resident, 65 percent, 
                but not to exceed $2,500 each month.

    ``(2) Notwithstanding the limitations on maximum monthly amount 
prescribed under subsection (c) or set forth in paragraph (1)(B), until 
the earlier of December 31, 2006, or the date on which an independent 
living resident or assisted living resident of the Armed Forces 
Retirement Home--Gulfport occupies a renovated room at that facility, as 
determined by the Secretary of Defense, the limitation on maximum 
monthly amount applicable to the resident for months beginning after 
December 31, 2001, shall be--
            ``(A) in the case of an independent living resident, $800; 
        and
            ``(B) in the case of an assisted living resident, $1,300.''.

SEC. 1406. LOCAL BOARDS OF TRUSTEES.

    Section 1516 (24 U.S.C. 416) is amended to read as follows:

``SEC. 1516. LOCAL BOARDS OF TRUSTEES.

    ``(a) Establishment.--Each facility of the Retirement Home shall 
have a Local Board of Trustees.
    ``(b) Duties.--The Local Board for a facility shall serve in an 
advisory capacity to the Director of the facility and to the Chief 
Operating Officer.
    ``(c) Composition.--(1) The Local Board for a facility shall consist 
of at least 11 members who (except as otherwise specifically provided) 
shall be appointed by the Secretary of Defense in consultation with each 
of the Secretaries of the military departments concerned. At least one 
member of the Local Board shall have a perspective that is oriented 
toward the Retirement Home overall. The Local Board for a facility shall 
consist of the following members:
            ``(A) One member who is a civilian expert in nursing home or 
        retirement home administration and financing from the 
        geographical area of the facility.
            ``(B) One member who is a civilian expert in gerontology 
        from the geographical area of the facility.
            ``(C) One member who is a service expert in financial 
        management.
            ``(D) One representative of the Department of Veterans 
        Affairs regional office nearest in proximity to the facility, 
        who shall be designated by the Secretary of Veterans Affairs.
            ``(E) One representative of the resident advisory committee 
        or council of the facility.
            ``(F) One enlisted representative of the Services' Retiree 
        Advisory Council.

[[Page 115 STAT. 1263]]

            ``(G) The senior noncommissioned officer of one of the Armed 
        Forces.
            ``(H) One senior representative of the military hospital 
        nearest in proximity to the facility.
            ``(I) One senior judge advocate from one of the Armed 
        Forces.
            ``(J) The Director of the facility, who shall be a nonvoting 
        member.
            ``(K) One senior representative of one of the chief 
        personnel officers of the Armed Forces.
            ``(L) Other members designated by the Secretary of Defense 
        (if the Local Board is to have more than 11 members).

    ``(2) The Secretary of Defense shall designate one member of a Local 
Board to serve as the chairman of the Local Board at the pleasure of the 
Secretary of Defense.
    ``(d) Terms.--(1) Except as provided in subsections (e), (f), and 
(g), the term of office of a member of a Local Board shall be five 
years.
    ``(2) Unless earlier terminated by the Secretary of Defense, a 
person may continue to serve as a member of the Local Board after the 
expiration of the member's term until a successor is appointed or 
designated, as the case may be.
    ``(e) Early Expiration of Term.--A member of a Local Board who is a 
member of the Armed Forces or an employee of the United States serves as 
a member of the Local Board only for as long as the member is assigned 
to or serving in a position for which the duties include the duty to 
serve as a member of the Local Board.
    ``(f) Vacancies.--(1) A vacancy in the membership of a Local Board 
shall be filled in the manner in which the original appointment or 
designation was made, as the case may be.
    ``(2) A member appointed or designated to fill a vacancy occurring 
before the end of the term of the predecessor of the member shall be 
appointed or designated, as the case may be, for the remainder of the 
term for which the predecessor was appointed.
    ``(3) A vacancy in a Local Board shall not affect its authority to 
perform its duties.
    ``(g) Early Termination.--The Secretary of Defense may terminate the 
appointment of a member of a Local Board before the expiration of the 
member's term for any reason that the Secretary determines appropriate.
    ``(h) Compensation.--(1) Except as provided in paragraph (2), a 
member of a Local Board shall--
            ``(A) be provided a stipend consistent with the daily 
        government consultant fee for each day on which the member is 
        engaged in the performance of services for the Local Board; and
            ``(B) while away from home or regular place of business in 
        the performance of services for the Local Board, be allowed 
        travel expenses (including per diem in lieu of subsistence) in 
        the same manner as a person employed intermittently in 
        Government under sections 5701 through 5707 of title 5, United 
        States Code.

    ``(2) A member of a Local Board who is a member of the Armed Forces 
on active duty or a full-time officer or employee of the United States 
shall receive no additional pay by reason of serving as a member of a 
Local Board.''.

[[Page 115 STAT. 1264]]

SEC. 1407. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS, AND 
                          STAFF OF FACILITIES.

    Section 1517 (24 U.S.C. 417) is amended to read as follows:
``SEC. 1517. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS, AND 
                            STAFF OF FACILITIES.

    ``(a) Appointment.--The Secretary of Defense shall appoint a 
Director, a Deputy Director, and an Associate Director for each facility 
of the Retirement Home.
    ``(b) Director.--The Director of a facility shall--
            ``(1) be a civilian with experience as a continuing care 
        retirement community professional or a member of the Armed 
        Forces serving on active duty in a grade below brigadier general 
        or, in the case of the Navy, rear admiral (lower half);
            ``(2) have appropriate leadership and management skills; and
            ``(3) be required to pursue a course of study to receive 
        certification as a retirement facilities director by an 
        appropriate civilian certifying organization, if the Director is 
        not so certified at the time of appointment.

    ``(c) Duties of Director.--(1) The Director of a facility shall be 
responsible for the day-to-day operation of the facility, including the 
acceptance of applicants to be residents of that facility.
    ``(2) The Director of a facility shall keep accurate and complete 
records of the facility.
    ``(d) Deputy Director.--(1) The Deputy Director of a facility 
shall--
            ``(A) be a civilian with experience as a continuing care 
        retirement community professional or a member of the Armed 
        Forces serving on active duty in a grade below colonel or, in 
        the case of the Navy, captain; and
            ``(B) have appropriate leadership and management skills.

    ``(2) The Deputy Director of a facility shall serve at the pleasure 
of the Secretary of Defense.
    ``(e) Duties of Deputy Director.--The Deputy Director of a facility 
shall, under the authority, direction, and control of the Director of 
the facility, perform such duties as the Director may assign.
    ``(f) Associate Director.--(1) The Associate Director of a facility 
shall--
            ``(A) be a member of the Armed Forces serving on active duty 
        in the grade of Sergeant Major, Master Chief Petty Officer, or 
        Chief Master Sergeant or a member or former member retired in 
        that grade; and
            ``(B) have appropriate leadership and management skills.

    ``(2) The Associate Director of a facility shall serve at the 
pleasure of the Secretary of Defense.
    ``(g) Duties of Associate Director.--The Associate Director of a 
facility shall, under the authority, direction, and control of the 
Director and Deputy Director of the facility, serve as ombudsman for the 
residents and perform such other duties as the Director may assign.
    ``(h) Staff.--(1) The Director of a facility may, subject to the 
approval of the Chief Operating Officer, appoint and prescribe the pay 
of such principal staff as the Director considers appropriate to assist 
the Director in operating the facility.

[[Page 115 STAT. 1265]]

    ``(2) The principal staff of a facility shall include persons with 
experience and expertise in the operation and management of retirement 
homes and in the provision of long-term medical care for older persons.
    ``(i) Annual Evaluation of Directors.--(1) The Chief Operating 
Officer shall evaluate the performance of each of the Directors of the 
facilities of the Retirement Home each year.
    ``(2) The Chief Operating Officer shall submit to the Secretary of 
Defense any recommendations regarding a Director that the Chief 
Operating Officer determines appropriate taking into consideration the 
annual evaluation.''.
SEC. 1408. DISPOSITION OF EFFECTS OF DECEASED PERSONS AND 
                          UNCLAIMED PROPERTY.

    (a) Legal Representation for Retirement Home.--Subsection (b)(2)(A) 
of section 1520 (24 U.S.C. 420) is amended by inserting ``who is a full-
time officer or employee of the United States or a member of the Armed 
Forces on active duty'' after ``may designate an attorney''.
    (b) Correction of Reference.--Subsection (b)(1)(B) of such section 
is amended by inserting ``Armed Forces'' before ``Retirement Home Trust 
Fund''.

SEC. 1409. TRANSITIONAL PROVISIONS.

    Part B <<NOTE: 10 USC 2772 note; 24 USC 431.>>  is amended by 
striking sections 1531, 1532, and 1533 and inserting the following new 
sections:
``SEC. 1531. TEMPORARY <<NOTE: 24 USC 431.>>  CONTINUATION OF 
                            ARMED FORCES RETIREMENT HOME BOARD.

    ``Until the Secretary of Defense appoints the first Chief Operating 
Officer after the enactment of the National Defense Authorization Act 
for Fiscal Year 2002, the Armed Forces Retirement Home Board, as 
constituted on the day before the date of the enactment of that Act, 
shall continue to serve and shall perform the duties of the Chief 
Operating Officer.
``SEC. 1532. <<NOTE: 24 USC 432.>>  DIRECTORS OF FACILITIES.

    ``(a) Active Duty Officers.--During the three-year period beginning 
on the date of the enactment of the National Defense Authorization Act 
for Fiscal Year 2002, the Directors and Deputy Directors of the 
facilities shall be members of the Armed Forces serving on active duty, 
notwithstanding the authority in subsections (b) and (d) of section 1517 
for the Directors and Deputy Directors to be civilians.
    ``(b) Temporary Continuation of Director of the Armed Forces 
Retirement Home--Washington.--The person serving as the Director of the 
Armed Forces Retirement Home--Washington on the day before the enactment 
of the National Defense Authorization Act for Fiscal Year 2002 may 
continue to serve as the Director of that facility until April 2, 2002.
``SEC. 1533. TEMPORARY <<NOTE: 24 USC 433.>>  CONTINUATION OF 
                            INCUMBENT DEPUTY DIRECTORS.

    ``A person serving as the Deputy Director of a facility of the 
Retirement Home on the day before the enactment of the National Defense 
Authorization Act for Fiscal Year 2002 may continue to serve, at the 
pleasure of the Secretary of Defense, as the Deputy Director until the 
date on which a Deputy Director is appointed

[[Page 115 STAT. 1266]]

for that facility under section 1517, except that the service in that 
position may not continue under this section after December 31, 2004.''.
SEC. 1410. CONFORMING AND CLERICAL AMENDMENTS AND REPEALS OF 
                          OBSOLETE PROVISIONS.

    (a) Conforming Amendments.--(1) Section 1513(b) (24 U.S.C. 413(b)), 
relating to services provided to residents of the Armed Forces 
Retirement Home, is amended by striking ``maintained as a separate 
establishment'' in the second sentence.
    (2) The heading for section 1519 (24 U.S.C. 419) is amended to read 
as follows:
``SEC. 1519. ARMED FORCES RETIREMENT HOME TRUST FUND.''.

    (3) Section 1520 (24 U.S.C. 420), relating to disposition of effects 
of deceased persons and unclaimed property, is amended--
            (A) in subsection (a), by striking ``each facility that is 
        maintained as a separate establishment'' and inserting ``a 
        facility'';
            (B) in subsection (b)(2)(A), by striking ``maintained as a 
        separate establishment''; and
            (C) in subsection (e), by striking ``Directors'' and 
        inserting ``Director of the facility''.

    (4)(A) Section 1523 (24 U.S.C. 423), relating to preservation of 
historic buildings and grounds at the Armed Forces Retirement Home--
Washington, is amended by striking ``United States Soldiers' and 
Airmen's Home'' each place it appears and inserting ``Armed Forces 
Retirement Home--Washington''.
    (B) The heading for such section is amended to read as follows:
``SEC. 1523. PRESERVATION OF HISTORIC BUILDINGS AND GROUNDS AT THE 
                            ARMED FORCES RETIREMENT HOME--
                            WASHINGTON.''.

    (5) Section 1524 (24 U.S.C. 424), relating to conditional 
supervisory control of the Retirement Home Board, is repealed.
    (b) Repeal of Obsolete Provisions.--The following provisions are 
repealed:
            (1) Section 1512(f) (24 U.S.C. 412(f)), relating to the 
        applicability of certain eligibility requirements.
            (2) Section 1519(d) (24 U.S.C. 419(d)), relating to 
        transitional accounts in the Armed Forces Retirement Home Trust 
        Fund.
            (3) Part C, <<NOTE: 24 USC 401 note, 441.>>  relating to 
        effective date and authorization of appropriations.

    (c) Addition of Table of Contents.--Section 1501 (24 U.S.C. 401 
note) is amended--
            (1) by inserting ``(a) Short Title.--'' before ``This 
        title''; and
            (2) by adding at the end the following new subsection:

    ``(b) Table of Contents.--The table of contents for this title is as 
follows:
``Sec. 1501. Short title; table of contents.
``Sec. 1502. Definitions.

        ``Part A--Establishment and Operation of Retirement Home

``Sec. 1511. Establishment of the Armed Forces Retirement Home.
``Sec. 1512. Residents of Retirement Home.
``Sec. 1513. Services provided residents.
``Sec. 1514. Fees paid by residents.

[[Page 115 STAT. 1267]]

``Sec. 1515. Chief Operating Officer.
``Sec. 1516. Local Boards of Trustees.
``Sec. 1517. Directors, Deputy Directors, Associate Directors, and staff 
                        of facilities.
``Sec. 1518. Inspection of Retirement Home.
``Sec. 1519. Armed Forces Retirement Home Trust Fund.
``Sec. 1520. Disposition of effects of deceased persons; unclaimed 
                        property.
``Sec. 1521. Payment of residents for services.
``Sec. 1522. Authority to accept certain uncompensated services.
``Sec. 1523. Preservation of historic buildings and grounds at the Armed 
                        Forces Retirement Home--Washington.

                    ``Part B--Transitional Provisions

``Sec. 1531. Temporary Continuation of Armed Forces Retirement Home 
                        Board.
``Sec. 1532. Directors of Facilities.
``Sec. 1533. Temporary Continuation of Incumbent Deputy Directors.''.

          TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

          Subtitle A--Increased Funding for Combating Terrorism

Sec. 1501. Definitions.
Sec. 1502. Authorization of emergency appropriations for fiscal year 
                      2001 made by Public Law 107-38 and allocated for 
                      national defense functions.
Sec. 1503. Authorization of emergency supplemental appropriations for 
                      fiscal year 2002.
Sec. 1504. Authorization of use of funds for military construction 
                      projects.
Sec. 1505. Treatment of transferred amounts.
Sec. 1506. Quarterly reports.

       Subtitle B--Policy Matters Relating to Combating Terrorism

Sec. 1511. Study and report on the role of the Department of Defense 
                      with respect to homeland security.
Sec. 1512. Combating Terrorism Readiness Initiatives Fund for combatant 
                      commands.
Sec. 1513. Conveyances of equipment and related materials loaned to 
                      State and local governments as assistance for 
                      emergency response to a use or threatened use of a 
                      weapon of mass destruction.
Sec. 1514. Two-year extension of advisory panel to assess domestic 
                      response capabilities for terrorism involving 
                      weapons of mass destruction.

          Subtitle A--Increased Funding for Combating Terrorism

SEC. 1501. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``ETR Supplemental Appropriations Act, 2001'' 
        means the 2001 Emergency Supplemental Appropriations Act for 
        Recovery from and Response to Terrorist Attacks on the United 
        States (Public Law 107-38).
            (2) The term ``Emergency Supplemental Appropriations Act, 
        2002'' means an Act (or a portion of an Act) making available 
        for obligation emergency appropriations that were provided, 
        subject to enactment in a subsequent appropriation Act, in the 
        ETR Supplemental Appropriations Act, 2001.
SEC. 1502. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR FISCAL 
                          YEAR 2001 MADE BY PUBLIC LAW 107-38 AND 
                          ALLOCATED FOR NATIONAL DEFENSE 
                          FUNCTIONS.

    (a) Adjustment in Authorization Amounts.--(1) Subject to paragraph 
(2), amounts authorized to be appropriated for fiscal year 2001 in the 
Floyd D. Spence National Defense Authorization

[[Page 115 STAT. 1268]]

Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398) are 
hereby increased, with respect to any such authorized amount, by the 
amount (if any) by which appropriations pursuant to such authorization 
are increased by amounts appropriated in the ETR Supplemental 
Appropriations Act, 2001, and transferred by the President (before the 
date of the enactment of this Act) to the Department of Defense or the 
National Nuclear Security Administration and subsequently allocated to 
such appropriations.
    (2) Authorization amounts may not be increased under paragraph (1) 
in excess of amounts derived from allocation of the amounts specified in 
subsection (b), for the Department of Defense, and in subsection (c), 
for the National Nuclear Security Administration.
    (b) Department of Defense.--Amounts referred to in subsection (a)(2) 
for the Department of Defense are amounts for emergency expenses to 
respond to the terrorist attacks on the United States that occurred on 
September 11, 2001, allocated to the Department of Defense for fiscal 
year 2001 for the use of the Armed Forces and other activities and 
agencies of the Department of Defense, including the purposes stated in 
section 1504, in the total amount of $13,741,000,000, as follows:
            (1) Increased situational awareness.--For Increased 
        Situational Awareness, $4,272,000,000.
            (2) Enhanced force protection.--For Enhanced Force 
        Protection, $1,509,000,000.
            (3) Improved command and control.--For Improved Command and 
        Control, $1,403,000,000.
            (4) Increased worldwide posture.--For Increased Worldwide 
        Posture, $3,603,000,000.
            (5) Offensive counterterrorism.--For Offensive 
        Counterterrorism, $1,459,000,000.
            (6) Initial crisis response.--For Initial Crisis Response, 
        $637,000,000.
            (7) Pentagon repair and upgrade.--For Pentagon Repair and 
        Upgrade Activities, $530,000,000.
            (8) Fuel costs.--For increased fuel costs, $100,000,000.
            (9) Airport and border security.--For airport and border 
        security, $228,000,000.

    (c) NNSA.--The amount referred to in subsection (a)(2) for the 
National Nuclear Security Administration is the amount of $5,000,000 for 
emergency expenses to respond to the terrorist attacks on the United 
States that occurred on September 11, 2001, allocated for fiscal year 
2001 atomic energy defense activities of the National Nuclear Security 
Administration for weapons activities.
    (d) Treatment as Additional Authorizations.--The amounts authorized 
to be appropriated by this section are in addition to amounts otherwise 
authorized to be appropriated by the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398) or any other Act, for fiscal year 2001 for the use of the 
Armed Forces and other activities and agencies of the Department of 
Defense and for the use of the National Nuclear Security Administration.

[[Page 115 STAT. 1269]]

SEC. 1503. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
                          FOR FISCAL YEAR 2002.

    (a) Department of Defense.--For emergency expenses to respond to the 
September 11, 2001, terrorist attacks on the United States, funds are 
hereby authorized to be appropriated to the Defense Emergency Response 
Fund for fiscal year 2002 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense, including the 
purposes stated in section 1504, in the total amount of $7,349,000,000, 
as follows:
            (1) Increased situational awareness.--For Increased 
        Situational Awareness, $1,735,000,000.
            (2) Enhanced force protection.--For Enhanced Force 
        Protection, $881,000,000.
            (3) Improved command and control.--For Improved Command and 
        Control, $219,000,000.
            (4) Increased worldwide posture.--For Increased Worldwide 
        Posture, $2,938,000,000.
            (5) Offensive counterterrorism.--For Offensive 
        Counterterrorism, $545,000,000.
            (6) Initial crisis response.--For Initial Crisis Response, 
        $106,000,000.
            (7) Pentagon repair and upgrade.--For Pentagon Repair and 
        Upgrade Activities, $925,000,000.

    (b) NNSA.--For emergency expenses to respond to the September 11, 
2001, terrorist attacks on the United States and for other expenses to 
increase the security of the Nation's nuclear weapons complex, funds are 
hereby authorized to be appropriated for fiscal year 2002 for the atomic 
energy defense activities of the National Nuclear Security 
Administration in the amount of $106,000,000, to be available for 
weapons activities.
    (c) Department of Energy.--For emergency expenses to respond to the 
September 11, 2001, terrorist attacks on the United States, funds are 
hereby authorized to be appropriated for fiscal year 2002 to the 
Department of Energy in the total amount of $11,700,000, as follows:
            (1) For Defense Environmental Restoration and Waste 
        Management, $8,200,000.
            (2) For Other Defense Activities, $3,500,000.

    (d) Transfer of Defense Funds.--In order to carry out the specified 
purposes in subsection (a), the Secretary of Defense may transfer 
amounts authorized by subsection (a) from the Defense Emergency Response 
Fund to any other defense appropriations account, including the account 
``Support for International Sporting Events, Defense'' and any military 
construction account as provided in section 1504.
    (e) Availability.--Amounts appropriated pursuant to authorizations 
in this section may remain available until expended, if so provided in 
appropriations Acts.
    (f) Source of Funds.--Amounts appropriated pursuant to 
authorizations in this section shall be derived from amounts provided, 
subject to subsequent appropriation, in the ETR Supplemental 
Appropriations Act, 2001.
    (g) Treatment as Additional Authorizations.--The amounts authorized 
to be appropriated by this section are in addition to amounts otherwise 
authorized to be appropriated, by the other provisions of this Act or by 
any other Act, for fiscal year 2001 for the use of the Armed Forces and 
other activities and agencies

[[Page 115 STAT. 1270]]

of the Department of Defense and for the use of the National Nuclear 
Security Administration.
SEC. 1504. AUTHORIZATION OF USE OF FUNDS FOR MILITARY CONSTRUCTION 
                          PROJECTS.

    (a) Authority for Use of Funds.--Qualified emergency defense 
appropriations may be used to acquire real property and carry out 
military construction projects not otherwise authorized by law that the 
Secretary of Defense determines are necessary to respond to or protect 
against acts or threatened acts of terrorism or to respond to the 
terrorist attacks on the United States that occurred on September 11, 
2001.
    (b) Project Authorization.--Any project with respect to which the 
Secretary makes a determination under subsection (a) and that is to be 
carried out using qualified emergency defense appropriations is hereby 
authorized for purposes of section 2802 of title 10, United States Code.
    (c) Qualified Emergency Defense Appropriations.--For purposes of 
this subsection, the term ``qualified emergency defense appropriations'' 
means emergency appropriations available to the Department of Defense 
that are authorized by section 1502 or 1503.

SEC. 1505. TREATMENT OF TRANSFERRED AMOUNTS.

    Amounts transferred under authority of section 1502 or 1503 shall be 
merged with, and shall be available for the same purposes and for the 
same time period as, the accounts to which transferred. The transfer 
authority under those sections is in addition to the transfer authority 
provided by section 1001 or any other provision of law.

SEC. 1506. QUARTERLY REPORTS.

    (a) Quarterly Report.--Promptly after the end of each quarter of a 
fiscal year, the Secretary of Defense and the Director of Central 
Intelligence shall each submit to the congressional defense committees a 
report (in classified and unclassified form, as needed) on the use of 
funds authorized by this subtitle. Each such report shall, at a minimum, 
specify the following:
            (1) Any balance of funds remaining in the Defense Emergency 
        Response Fund as of the end of the quarter covered by the 
        report.
            (2) The accounts to which funds have been transferred or are 
        to be transferred and the amount of each such transfer.
            (3) Within such accounts, each project to which any such 
        funds have been transferred or are to be transferred and the 
        amount of funds obligated and the amount expended for each such 
        project as of the end of the quarter covered by the report.

    (b) Initial Report.--The <<NOTE: Deadline.>>  first report under 
subsection (a) shall be submitted not later than January 2, 2002.

    (c) Final Report.--No further report under subsection (a) is 
required after all funds made available to the Department of Defense 
pursuant to such Act have been obligated.

[[Page 115 STAT. 1271]]

       Subtitle B--Policy Matters Relating to Combating Terrorism

SEC. 1511. STUDY AND REPORT ON THE ROLE OF THE DEPARTMENT OF 
                          DEFENSE WITH RESPECT TO HOMELAND 
                          SECURITY.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
on the appropriate role of the Department of Defense with respect to 
homeland security. The study shall identify and describe the policies, 
plans, and procedures of the Department of Defense for combating 
terrorism, including for the provision of support for the consequence 
management activities of other Federal, State, and local agencies. The 
study shall specifically identify the following:
            (1) The strategy, roles, and responsibilities of the 
        Department of Defense for combating terrorism.
            (2) How the Department of Defense will interact with the 
        Office of Homeland Security and how intelligence sharing efforts 
        of the Department of Defense will be organized relative to other 
        Federal agencies and departments and State and local 
        governments.
            (3) The ability of the Department of Defense to protect the 
        United States from airborne threats, including threats 
        originating from within the borders of the United States.
            (4) Improvements that could be made to enhance the security 
        of the people of the United States against terrorist threats and 
        recommended actions (including legislative action) and programs 
        to address and overcome existing vulnerabilities.
            (5) The policies, plans, and procedures relating to how the 
        civilian official in the Department of Defense responsible for 
        combating terrorism and the Joint Task Force Civil Support of 
        the Joint Forces Command will coordinate the performance of 
        functions for combating terrorism with--
                    (A) teams in the Department of Defense that have 
                responsibilities for responding to acts or threats of 
                terrorism, including--
                          (i) weapons of mass destruction civil support 
                      teams when operating as the National Guard under 
                      the command of the Governor of a State, the 
                      Governor of Puerto Rico, or the Commanding General 
                      of the District of Columbia National Guard;
                          (ii) weapons of mass destruction civil support 
                      teams when operating as the Army National Guard of 
                      the United States or the Air National Guard of the 
                      United States under the command of the President;
                          (iii) teams in the departments and agencies of 
                      the Federal Government other than the Department 
                      of Defense that have responsibilities for 
                      responding to acts or threats of terrorism;
                          (iv) organizations outside the Federal 
                      Government, including any State, local and private 
                      entities, that function as first responders to 
                      acts or threats of terrorism; and
                          (v) units and organizations of the Reserve 
                      Components of the Armed Forces that have missions 
                      relating to combating terrorism;

[[Page 115 STAT. 1272]]

                    (B) the Director of Military Support of the 
                Department of the Army;
                    (C) any preparedness plans to combat terrorism that 
                are developed for installations of the Department of 
                Defense by the commanders of the installations and the 
                integration of those plans with the plans of the teams 
                and organizations described in subparagraph (A);
                    (D) the policies, plans and procedures for using and 
                coordinating the integrated vulnerability assessment 
                teams of the Joint Staff inside and outside the United 
                States; and
                    (E) the missions of Fort Leonard Wood and other 
                installations for training units, weapons of mass 
                destruction civil support teams and other teams, and 
                individuals in combating terrorism.
            (6) The appropriate number and missions of the teams 
        referred to in paragraph (5)(A)(i).
            (7) How the Department of Defense Weapons of Mass 
        Destruction Civil Support Teams should interact with the Federal 
        Bureau of Investigation and the Federal Emergency Management 
        Agency during crisis response and consequence management 
        situations.

    (b) Report.--Not <<NOTE: Deadline.>>  later than 180 days after the 
date of the enactment of this Act, the Secretary shall submit to 
Congress a report including the findings of the study conducted under 
subsection (a).
SEC. 1512. COMBATING TERRORISM READINESS INITIATIVES FUND FOR 
                          COMBATANT COMMANDS.

    (a) Funding for Initiatives.--Chapter 6 of title 10, United States 
Code, is amended by inserting after section 166a the following new 
section:
``Sec. 166b. Combatant commands: funding for combating terrorism 
                    readiness initiatives

    ``(a) Combating Terrorism Readiness Initiatives Fund.--From funds 
made available in any fiscal year for the budget account in the 
Department of Defense known as the `Combating Terrorism Readiness 
Initiatives Fund', the Chairman of the Joint Chiefs of Staff may provide 
funds to the commander of a combatant command, upon the request of the 
commander, or, with respect to a geographic area or areas not within the 
area of responsibility of a commander of a combatant command, to an 
officer designated by the Chairman of the Joint Chiefs of Staff for such 
purpose. The Chairman may provide such funds for initiating any activity 
named in subsection (b) and for maintaining and sustaining the activity 
for the fiscal year in which initiated and one additional fiscal year.
    ``(b) Authorized Activities.--Activities for which funds may be 
provided under subsection (a) are the following:
            ``(1) Procurement and maintenance of physical security 
        equipment.
            ``(2) Improvement of physical security sites.
            ``(3) Under extraordinary circumstances--
                    ``(A) physical security management planning;
                    ``(B) procurement and support of security forces and 
                security technicians;

[[Page 115 STAT. 1273]]

                    ``(C) security reviews and investigations and 
                vulnerability assessments; and
                    ``(D) any other activity relating to physical 
                security.

    ``(c) Priority.--The Chairman of the Joint Chiefs of Staff, in 
considering requests for funds in the Combating Terrorism Readiness 
Initiatives Fund, should give priority consideration to emergency or 
emergent unforeseen high-priority requirements for combating terrorism.
    ``(d) Relationship to Other Funding.--Any amount provided by the 
Chairman of the Joint Chiefs of Staff for a fiscal year out of the 
Combating Terrorism Readiness Initiatives Fund for an activity referred 
to in subsection (b) shall be in addition to amounts otherwise available 
for that activity for that fiscal year.
    ``(e) Limitation.--Funds may not be provided under this section for 
any activity that has been denied authorization by Congress.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
166a the following new item:
``166b. Combatant commands: funding for combating terrorism readiness 
            initiatives.''.
SEC. 1513. CONVEYANCES OF EQUIPMENT AND RELATED MATERIALS LOANED 
                          TO STATE AND LOCAL GOVERNMENTS AS 
                          ASSISTANCE FOR EMERGENCY RESPONSE TO A 
                          USE OR THREATENED USE OF A WEAPON OF 
                          MASS DESTRUCTION.

    Section 1412(e) of the Defense Against Weapons of Mass Destruction 
Act of 1996 (title XIV of Public Law 104-201; 110 Stat. 2718; 50 U.S.C. 
2312(e)) is amended by adding at the end the following new paragraph:
            ``(5) A conveyance of ownership of United States property to 
        a State or local government, without cost and without regard to 
        subsection (f) and title II of the Federal Property and 
        Administrative Services Act of 1949 (or any other provision of 
        law relating to the disposal of property of the United States), 
        if the property is equipment, or equipment and related 
        materials, that is in the possession of the State or local 
        government on the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2002 pursuant to a loan of the 
        property as assistance under this section.''.
SEC. 1514. TWO-YEAR EXTENSION OF ADVISORY PANEL TO ASSESS DOMESTIC 
                          RESPONSE CAPABILITIES FOR TERRORISM 
                          INVOLVING WEAPONS OF MASS DESTRUCTION.

    (a) Extension of Advisory Panel.--Section 1405 of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999 (50 U.S.C. 2301 
note) is amended--
            (1) in subsection (h)(2), by striking ``2001'' and inserting 
        ``2003''; and
            (2) in subsection (l), by striking ``three years'' and 
        inserting ``five years''.

    (b) Pay and Expenses of Members.--(1) Subsection (k) of such section 
is amended to read as follows:
    ``(k) Compensation of Panel Members.--The provisions of paragraph 
(4) of section 591(c) of the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1999 (as contained in section 
101(d) of division A of the Omnibus Consolidated and Emergency 
Supplemental Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 
2681-212)), shall apply to members of the panel

[[Page 115 STAT. 1274]]

in the same manner as to members of the National Commission on Terrorism 
under that paragraph.''.
    (2) The <<NOTE: 50 USC 2301 note.>>  amendment made by paragraph (1) 
shall apply with respect to periods of service on the advisory panel 
under section 1405 of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 on or after the date of the enactment of this 
Act.

                  TITLE XVI--UNIFORMED SERVICES VOTING

Sec. 1601. Sense of Congress regarding the importance of voting.
Sec. 1602. Voting assistance programs.
Sec. 1603. Guarantee of residency for military personnel.
Sec. 1604. Electronic voting demonstration project.
Sec. 1605. Governors' reports on implementation of recommendations for 
                      changes in State law made under Federal Voting 
                      Assistance Program.
Sec. 1606. Simplification of voter registration and absentee ballot 
                      application procedures for absent uniformed 
                      services and overseas voters.
Sec. 1607. Use of certain Department of Defense facilities as polling 
                      places.
SEC. 1601. SENSE <<NOTE: 42 USC 1973ff note.>>  OF CONGRESS 
                          REGARDING THE IMPORTANCE OF VOTING.

    (a) Sense of Congress.--It is the sense of Congress that each person 
who is an administrator of a Federal, State, or local election--
            (1) should be aware of the importance of the ability of each 
        uniformed services voter to exercise the right to vote; and
            (2) should perform that person's duties as an election 
        administrator with the intent to ensure that--
                    (A) each uniformed services voter receives the 
                utmost consideration and cooperation when voting;
                    (B) each valid ballot cast by such a voter is duly 
                counted; and
                    (C) all eligible American voters, regardless of 
                race, ethnicity, disability, the language they speak, or 
                the resources of the community in which they live, 
                should have an equal opportunity to cast a vote and to 
                have that vote counted.

    (b) Uniformed Services Voter Defined.--In this section, the term 
``uniformed services voter'' means--
            (1) a member of a uniformed service (as defined in section 
        101(a)(5) of title 10, United States Code) in active service;
            (2) a member of the merchant marine (as defined in section 
        107 of the Uniformed and Overseas Citizens Absentee Voting Act 
        (42 U.S.C. 1973ff-6)); and
            (3) a spouse or dependent of a member referred to in 
        paragraph (1) or (2) who is qualified to vote.

SEC. 1602. VOTING ASSISTANCE PROGRAMS.

    (a) In General.--(1) Chapter 80 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1566. Voting assistance: compliance assessments; assistance

    ``(a) Regulations.--The Secretary of Defense shall prescribe 
regulations to require that the Army, Navy, Air Force, and Marine

[[Page 115 STAT. 1275]]

Corps ensure their compliance with any directives issued by the 
Secretary of Defense in implementing any voting assistance program.
    ``(b) Voting Assistance Programs Defined.--In this section, the term 
`voting assistance programs' means--
            ``(1) the Federal Voting Assistance Program carried out 
        under the Uniformed and Overseas Citizens Absentee Voting Act 
        (42 U.S.C. 1973ff et seq.); and
            ``(2) any similar program.

    ``(c) Annual Effectiveness and Compliance Reviews.--(1) The 
Inspector General of each of the Army, Navy, Air Force, and Marine Corps 
shall conduct--
            ``(A) an annual review of the effectiveness of voting 
        assistance programs; and
            ``(B) an annual review of the compliance with voting 
        assistance programs of that armed force.

    ``(2) Upon the completion of each annual review under paragraph (1), 
each Inspector General specified in that paragraph shall submit to the 
Inspector General of the Department of Defense a report on the results 
of each such review. Such report shall be submitted in time each year to 
be reflected in the report of the Inspector General of the Department of 
Defense under paragraph (3).
    ``(3) Not <<NOTE: Deadline. Reports.>>  later than March 31 each 
year, the Inspector General of the Department of Defense shall submit to 
Congress a report on--
            ``(A) the effectiveness during the preceding calendar year 
        of voting assistance programs; and
            ``(B) the level of compliance during the preceding calendar 
        year with voting assistance programs of each of the Army, Navy, 
        Air Force, and Marine Corps.

    ``(d) Inspector General Assessments.--(1) The Inspector General of 
the Department of Defense shall periodically conduct at Department of 
Defense installations unannounced assessments of the compliance at those 
installations with--
            ``(A) the requirements of the Uniformed and Overseas 
        Citizens Absentee Voting Act (42 U.S.C. 1973ff et seq.);
            ``(B) Department of Defense regulations regarding that Act 
        and the Federal Voting Assistance Program carried out under that 
        Act; and
            ``(C) other requirements of law regarding voting by members 
        of the armed forces.

    ``(2) The Inspector General shall conduct an assessment under 
paragraph (1) at not less than 10 Department of Defense installations 
each calendar year.
    ``(3) Each assessment under paragraph (1) shall include a review of 
such compliance--
            ``(A) within units to which are assigned, in the aggregate, 
        not less than 20 percent of the personnel assigned to duty at 
        that installation;
            ``(B) within a representative survey of members of the armed 
        forces assigned to that installation and their dependents; and
            ``(C) within unit voting assistance officers to measure 
        program effectiveness.

    ``(e) Regular Military Department Assessments.--The Secretary of 
each military department shall include in the set of

[[Page 115 STAT. 1276]]

issues and programs to be reviewed during any management effectiveness 
review or inspection at the installation level an assessment of 
compliance with the Uniformed and Overseas Citizens Absentee Voting Act 
(42 U.S.C. 1973ff et seq.) and with Department of Defense regulations 
regarding the Federal Voting Assistance Program.
    ``(f) Voting Assistance Officers.--Voting assistance officers shall 
be appointed or assigned under Department of Defense regulations. 
Commanders at all levels are responsible for ensuring that unit voting 
officers are trained and equipped to provide information and assistance 
to members of the armed forces on voting matters. Performance evaluation 
reports pertaining to a member who has been assigned to serve as a 
voting assistance officer shall comment on the performance of the member 
as a voting assistance officer.
    ``(g) Delivery of Mail From Overseas Preceding Federal Elections.--
(1) During the four months preceding a general Federal election month, 
the Secretary of Defense shall periodically conduct surveys of all 
overseas locations and vessels at sea with military units responsible 
for collecting mail for return shipment to the United States and all 
port facilities in the United States and overseas where military-related 
mail is collected for shipment to overseas locations or to the United 
States. The purpose of each survey shall be to determine if voting 
materials are awaiting shipment at any such location and, if so, the 
length of time that such materials have been held at that location. 
During the fourth and third months before a general Federal election 
month, such surveys shall be conducted biweekly. During the second and 
first months before a general Federal election month, such surveys shall 
be conducted weekly.
    ``(2) The Secretary shall ensure that voting materials are 
transmitted expeditiously by military postal authorities at all times.
    ``(3) In this section, the term `general Federal election month' 
means November in an even-numbered year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:
``1566. Voting assistance: compliance assessments; assistance.''.

    (b) <<NOTE: Deadline. 10 USC 1566 note.>>  Initial Report.--The 
first report under section 1566(c)(3) of title 10, United States Code, 
as added by subsection (a), shall be submitted not later than March 31, 
2003.
SEC. 1603. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

    Article VII of the Soldiers' and Sailors' Civil Relief Act of 1940 
(50 U.S.C. App. 590 et seq.) is amended by adding at the end the 
following:
    ``Sec. 704. <<NOTE: 50 USC app. 594.>>  (a) For purposes of voting 
for any Federal office (as defined in section 301 of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 431)) or a State or local 
office, a person who is absent from a State in compliance with military 
or naval orders shall not, solely by reason of that absence--
            ``(1) be deemed to have lost a residence or domicile in that 
        State, without regard to whether or not the person intends to 
        return to that State;
            ``(2) be deemed to have acquired a residence or domicile in 
        any other State; or
            ``(3) be deemed to have become a resident in or a resident 
        of any other State.

[[Page 115 STAT. 1277]]

    ``(b) In this section, the term `State' includes a territory or 
possession of the United States, a political subdivision of a State, 
territory, or possession, and the District of Columbia.''.
SEC. 1604. ELECTRONIC <<NOTE: 42 USC 1973ff note.>>  VOTING 
                          DEMONSTRATION PROJECT.

    (a) Establishment of Demonstration Project.--
            (1) In general.--Subject to paragraph (2), the Secretary of 
        Defense shall carry out a demonstration project under which 
        absent uniformed services voters are permitted to cast ballots 
        in the regularly scheduled general election for Federal office 
        for November 2002 through an electronic voting system. The 
        project shall be carried out with participation of sufficient 
        numbers of absent uniformed services voters so that the results 
        are statistically relevant.
            (2) Authority to delay implementation.--If the Secretary of 
        Defense determines that the implementation of the demonstration 
        project under paragraph (1) with respect to the regularly 
        scheduled general election for Federal office for November 2002 
        may adversely affect the national security of the United States, 
        the Secretary may delay the implementation of such demonstration 
        project until the regularly scheduled general election for 
        Federal office for November 2004. The Secretary shall notify the 
        Committee on Armed Services and the Committee on Rules and 
        Administration of the Senate and the Committee on Armed Services 
        and the Committee on House Administration of the House of 
        Representatives of any decision to delay implementation of the 
        demonstration project.

    (b) Coordination With State Election Officials.--The Secretary shall 
carry out the demonstration project under this section through 
cooperative agreements with State election officials of States that 
agree to participate in the project.
    (c) Report to Congress.--Not <<NOTE: Deadline.>>  later than June 1 
of the year following the year in which the demonstration project is 
conducted under this section, the Secretary of Defense shall submit to 
Congress a report analyzing the demonstration project. The Secretary 
shall include in the report any recommendations the Secretary considers 
appropriate for continuing the project on an expanded basis for absent 
uniformed services voters during the next regularly scheduled general 
election for Federal office.

    (d) Definitions.--In this section:
            (1) Absent uniformed services voter.--The term ``absent 
        uniformed services voter'' has the meaning given that term in 
        section 107(1) of the Uniformed and Overseas Citizens Absentee 
        Voting Act (42 U.S.C. 1973ff-6(1)).
            (2) State.--The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin 
        Islands, and American Samoa.
SEC. 1605. GOVERNORS' <<NOTE: 42 USC 1973ff note.>>  REPORTS ON 
                          IMPLEMENTATION OF RECOMMENDATIONS FOR 
                          CHANGES IN STATE LAW MADE UNDER FEDERAL 
                          VOTING ASSISTANCE PROGRAM.

    (a) Reports.--(1) Whenever a State receives a uniformed services 
voting assistance legislative recommendation from the Secretary of 
Defense, acting as the Presidential designee, the chief executive 
authority of that State shall, not later than 90 days after receipt of 
that recommendation, provide a report on the status of implementation of 
that recommendation by that State.

[[Page 115 STAT. 1278]]

    (2) If a legislative recommendation referred to in paragraph (1) has 
been implemented, in whole or in part, by a State, the report of the 
chief executive authority of that State under that paragraph with 
respect to that recommendation shall include a description of the 
changes made to State law to implement the recommendation. If the 
recommendation has not been implemented, the report shall include a 
statement of the status of the recommendation before the State 
legislature and a statement of any recommendation the chief executive 
officer has made or intends to make to the legislature with respect to 
that recommendation.
    (3) Any report under paragraph (1) shall be transmitted to the 
Secretary of Defense, acting as the Presidential designee. The Secretary 
shall transmit a copy of the response to each Member of Congress who 
represents that State.
    (b) Period of Applicability.--This section applies with respect to 
any uniformed services voting assistance legislative recommendation 
transmitted to a State by the Secretary of Defense, acting as the 
Presidential designee, during the three-year period beginning on the 
date of the enactment of this Act.
    (c) Definitions.--In this section:
            (1) The term ``uniformed services voting assistance 
        legislative recommendation'' means a recommendation of the 
        Presidential designee for a modification in the laws of a State 
        for the purpose of improving the access to the polls of absent 
        uniformed services voters and overseas voters.
            (2) The term ``Presidential designee'' means the head of the 
        executive department designated by the President under section 
        101(a) of the Uniformed and Overseas Citizens Absentee Voting 
        Act (42 U.S.C. 1973ff(a)).
            (3) The term ``State'' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, Guam, the Virgin Islands, and 
        American Samoa.
            (4) The term ``Member of Congress'' includes a Delegate or 
        Resident Commissioner to the Congress.
SEC. 1606. SIMPLIFICATION OF VOTER REGISTRATION AND ABSENTEE 
                          BALLOT APPLICATION PROCEDURES FOR ABSENT 
                          UNIFORMED SERVICES AND OVERSEAS VOTERS.

    (a) Requirement for States To Accept Official Form for Simultaneous 
Voter Registration and Absentee Ballot Application.--
            (1) In general.--Section 102 of the Uniformed and Overseas 
        Citizens Absentee Voting Act (42 U.S.C. 1973ff-1) is amended--
                    (A) in paragraph (2)--
                          (i) by striking ``general, special, primary, 
                      or runoff'';
                          (ii) by inserting ``and absentee ballot 
                      application'' after ``voter registration 
                      application'';
                          (iii) by striking ``and'' after the semicolon 
                      at the end;
                    (B) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) use the official post card form (prescribed under 
        section 101) for simultaneous voter registration application and 
        absentee ballot application.''.

[[Page 115 STAT. 1279]]

            (2) Conforming amendment.--Section 101(b)(2) of such Act (42 
        U.S.C. 1973ff(b)(2)) is amended by striking ``as recommended in 
        section 104'' and inserting ``as required under section 
        102(4)''.

    (b) Use of Single Application for All Subsequent Elections.--Section 
104 of such Act (42 U.S.C. 1973ff-3) is amended to read as follows:
``SEC. 104. USE OF SINGLE APPLICATION FOR ALL SUBSEQUENT 
                          ELECTIONS.

    ``(a) In General.--If a State accepts and processes an official post 
card form (prescribed under section 101) submitted by an absent 
uniformed services voter or overseas voter for simultaneous voter 
registration and absentee ballot application (in accordance with section 
102(a)(4)) and the voter requests that the application be considered an 
application for an absentee ballot for each subsequent election for 
Federal office held in the State during that year, the State shall 
provide an absentee ballot to the voter for each subsequent election for 
Federal office held in the State during that year.
    ``(b) Exception for Voters Changing Registration.--Subsection (a) 
shall not apply with respect to a voter registered to vote in a State 
for any election held after the voter notifies the State that the voter 
no longer wishes to be registered to vote in the State or after the 
State determines that the voter has registered to vote in another State.
    ``(c) Revision of Official Post Card Form.--The Presidential 
designee shall revise the official post card form (prescribed under 
section 101) to enable a voter using the form to--
            ``(1) request an absentee ballot for each election for 
        Federal office held in a State during a year; or
            ``(2) request an absentee ballot for only the next scheduled 
        election for Federal office held in a State.

    ``(d) No Effect on Voter Removal Programs.--Nothing in this section 
may be construed to prevent a State from removing any voter from the 
rolls of registered voters in the State under any program or method 
permitted under section 8 of the National Voter Registration Act of 
1993.''.
SEC. 1607. USE OF CERTAIN DEPARTMENT OF DEFENSE FACILITIES AS 
                          POLLING PLACES.

    (a) Use of Military Facilities.--Section 2670 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(b) Use of Certain Facilities as Polling Places.--(1) 
Notwithstanding chapter 29 of title 18 (including sections 592 and 593 
of such title) or any other provision of law, the Secretary of Defense 
or Secretary of a military department may not (except as provided in 
paragraph (3)) prohibit the designation or use of a qualifying facility 
under the jurisdiction of the Secretary as an official polling place for 
local, State, or Federal elections.
    ``(2) A Department of Defense facility is a qualifying facility for 
purposes of this subsection if as of December 31, 2000--
            ``(A) the facility is designated as an official polling 
        place by a State or local election official; or
            ``(B) the facility has been used as such an official polling 
        place since January 1, 1996.

[[Page 115 STAT. 1280]]

    ``(3) The limitation in paragraph (1) may be waived by the Secretary 
of Defense or Secretary of the military department concerned with 
respect to a particular Department of Defense facility if the Secretary 
of Defense or Secretary concerned determines that local security 
conditions require prohibition of the designation or use of that 
facility as an official polling place for any election.''.
    (b) Conforming and Clerical Amendments.--(1) Such section is further 
amended--
            (A) by striking ``Under'' and inserting ``(a) Use by Red 
        Cross.--Under''; and
            (B) by striking ``this section'' and inserting ``this 
        subsection''.

    (2) The heading of such section is amended to read as follows:
``Sec. 2670. Military installations: use by American National Red 
                    Cross; use as polling places''.

    (3) The item relating to such section in the table of sections at 
the beginning of chapter 159 of such title is amended to read as 
follows:
``2670. Military installations: use by American National Red Cross; use 
            as polling places.''.

DIVISION <<NOTE: Military Construction Authorization Act for Fiscal Year 
2002.>>  B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE; DEFINITION.

    (a) Short Title.--This division may be cited as the ``Military 
Construction Authorization Act for Fiscal Year 2002''.
    (b) Definition of Fiscal Year 2001 Defense Authorization Act.--In 
this division, the term ``Spence Act'' means the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001, as enacted into 
law by Public Law 106-398 (114 Stat. 1654).

                             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 
           2001 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
           2000 projects.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION 
                          PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


[[Page 115 STAT. 1281]]



                     Army: Inside the United States
------------------------------------------------------------------------
            State              Installation or location       Amount
------------------------------------------------------------------------
Alabama......................  Anniston Army Depot.....       $5,150,000
                               Fort Rucker.............      $18,200,000
                               Redstone Arsenal........       $9,900,000
Alaska.......................  Fort Richardson.........     $115,000,000
                               Fort Wainwright.........      $27,200,000
Arizona......................  Fort Huachuca...........       $6,100,000
                               Yuma Proving Ground.....       $3,100,000
California...................  Defense Language               $5,900,000
                                Institute.
                               Fort Irwin..............      $23,000,000
Colorado.....................  Fort Carson.............      $66,000,000
District of Columbia.........  Fort McNair.............      $11,600,000
Georgia......................  Fort Benning............      $23,900,000
                               Fort Gillem.............      $34,600,000
                               Fort Gordon.............      $34,000,000
                               Fort Stewart/Hunter Army      $39,800,000
                                Air Field..............
Hawaii.......................  Kahuku Windmill Site....         $900,000
                               Navy Public Works             $11,800,000
                                Center, Pearl Harbor...
                               Pohakuloa Training             $6,600,000
                                Facility...............
                               Wheeler Army Air Field..      $50,000,000
Illinois.....................  Rock Island Arsenal.....       $3,500,000
Kansas.......................  Fort Riley..............      $10,900,000
Kentucky.....................  Fort Campbell...........      $88,900,000
                               Fort Knox...............      $12,000,000
Louisiana....................  Fort Polk...............      $21,200,000
Maryland.....................  Aberdeen Proving Ground.      $58,300,000
                               Fort Meade..............      $11,200,000
Missouri.....................  Fort Leonard Wood.......       $7,850,000
New Jersey...................  Fort Monmouth...........      $20,000,000
                               Picatinny Arsenal.......      $10,200,000
New Mexico...................  White Sands Missile            $7,600,000
                                Range.
New York.....................  Fort Drum...............      $56,350,000
North Carolina...............  Fort Bragg..............      $21,300,000
                               Sunny Point Military          $11,400,000
                                Ocean Terminal.........
Oklahoma.....................  Fort Sill...............       $5,100,000
South Carolina...............  Fort Jackson............      $65,650,000
Texas........................  Corpus Christi Army           $10,400,000
                                Depot.
                               Fort Sam Houston........       $2,250,000
                               Fort Bliss..............       $5,000,000
                               Fort Hood...............     $104,200,000
Virginia.....................  Fort Belvoir............      $35,950,000
                               Fort Eustis.............      $34,650,000
                               Fort Lee................      $23,900,000
Washington...................  Fort Lewis..............     $238,200,000
                                                        ----------------
                                   Total:..............   $1,358,750,000
------------------------------------------------------------------------


[[Page 115 STAT. 1282]]

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the locations outside the United States, and 
in the amounts, set forth in the following table:

                     Army: Outside the United States
------------------------------------------------------------------------
           Country             Installation or location       Amount
------------------------------------------------------------------------
Germany......................  Area Support Group,           $36,000,000
                                Bamberg................
                               Area Support Group,           $13,500,000
                                Darmstadt..............
                               Baumholder..............       $9,000,000
                               Hanau...................       $7,200,000
                               Heidelberg..............      $15,300,000
                               Mannheim................      $16,000,000
                               Wiesbaden Air Base......      $26,300,000
Japan........................  Camp Schab..............       $3,800,000
Korea........................  Camp Carroll............      $16,593,000
                               Camp Casey..............       $8,500,000
                               Camp Hovey..............      $35,750,000
                               Camp Humphreys..........      $14,500,000
                               Camp Jackson............       $6,100,000
                               Camp Stanley............      $28,000,000
                               Camp Yongsan............      $12,800,000
Kwajalein....................  Kwajalein Atoll.........      $11,000,000
                                                        ----------------
                                   Total:..............     $260,343,000
------------------------------------------------------------------------

  
    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(3), the Secretary 
of the Army may acquire real property and carry out military 
construction projects for the installation and location, and in the 
amount, set forth in the following table:
      

                       Army: Unspecified Worldwide
------------------------------------------------------------------------
           Location                  Installation             Amount
------------------------------------------------------------------------
Unspecified Worldwide........  Classified Location.....       $4,000,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(6)(A), the Secretary of the Army may construct or acquire family 
housing units (including land acquisition) at the installations, for the 
purposes, and in the amounts set forth in the following table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright............  32 Units...................   $12,000,000
Arizona.................................  Fort Huachuca..............  72 Units...................   $10,800,000
Kansas..................................  Fort Leavenworth...........  80 Units...................   $20,000,000
Texas...................................  Fort Bliss.................  76 Units...................   $13,600,000
                                          Fort Sam Houston...........  80 Units...................   $11,200,000
Korea...................................  Camp Humphreys.............  54 Units...................   $12,800,000
                                                                                                   -------------
                                                                           Total:.................   $80,400,000
----------------------------------------------------------------------------------------------------------------


[[Page 115 STAT. 1283]]

    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2104(a)(6)(A), the Secretary 
of the Army may carry out architectural and engineering services and 
construction design activities with respect to the construction or 
improvement of family housing units in an amount not to exceed 
$11,592,000.
SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(6)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $220,750,000.
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2001, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Army in the total amount of $3,155,594,000, as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $1,127,750,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $260,343,000.
            (3) For a military construction project at an unspecified 
        worldwide location authorized by section 2101(c), $4,000,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $18,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $159,533,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $312,742,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $1,089,573,000.
            (7) For the construction of a cadet development center at 
        the United States Military Academy, West Point, New York, 
        authorized by section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 1999 (division B of Public Law 
        105-261; 112 Stat. 2182), $37,900,000.
            (8) For the construction of phase 2C of a barracks complex, 
        Tagaytay Street, at Fort Bragg, North Carolina, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 
        825), $17,500,000.
            (9) For the construction of phase 1C of a barracks complex, 
        Wilson Street, at Schofield Barracks, Hawaii, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 
        825), $23,000,000.

[[Page 115 STAT. 1284]]

            (10) For construction of phase 2 of a basic combat training 
        complex at Fort Leonard Wood, Missouri, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A-
        389), as amended by section 2105 of this Act, $27,000,000.
            (11) For the construction of phase 2 of a battle simulation 
        center at Fort Drum, New York, authorized by section 2101(a) of 
        the Military Construction Authorization Act for Fiscal Year 2001 
        (division B of the Spence Act; 114 Stat. 1654A-389), as amended 
        by section 2105 of this Act, $9,000,000.
            (12) For the construction of phase 1 of a barracks complex, 
        Butner Road, at Fort Bragg, North Carolina, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 
        1654A-389), $49,000,000.
            (13) For the construction of phase 1 of a barracks complex, 
        Longstreet Road, at Fort Bragg, North Carolina, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 
        1654A-389), $27,000,000.
            (14) For the construction of a multipurpose digital training 
        range at Fort Hood, Texas, authorized by section 2101(a) of the 
        Military Construction Authorization Act for Fiscal Year 2001 
        (division B of the Spence Act; 114 Stat. 1654A-389), as amended 
        by section 2105 of this Act, $13,000,000.
            (15) For the homeowners assistance program, as authorized by 
        section 2832(a) of title 10, United States Code, $10,119,000, to 
        remain available until expended.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a);
            (2) $52,000,000 (the balance of the amount authorized under 
        section 2201(a) for construction of a barracks complex, D 
        Street, at Fort Richardson, Alaska);
            (3) $41,000,000 (the balance of the amount authorized under 
        section 2201(a) for construction of phase 1 of a barracks 
        complex, Nelson Boulevard, at Fort Carson, Colorado);
            (4) $36,000,000 (the balance of the amount authorized under 
        section 2201(a) for construction of phase 1 of a basic combat 
        training complex at Fort Jackson, South Carolina); and
            (5) $102,000,000 (the balance of the amount authorized under 
        section 2201(a) for construction of a barracks complex, 17th & B 
        Streets, at Fort Lewis, Washington).

    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (15) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$29,866,000, which represents the combination of savings resulting from 
adjustments to foreign currency exchange rates for military 
construction, military family housing construction, and military family 
housing support outside the

[[Page 115 STAT. 1285]]

United States and savings resulting from favorable bids, reduced 
overhead charges, and cancellations due to force structure changes.
SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 2001 PROJECTS.

    (a) Modification.--The table in section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2001 (division B of the 
Spence Act; 114 Stat. 1654A-389) is amended--
            (1) in the item relating to Fort Leonard Wood, Missouri, by 
        striking ``$65,400,000'' in the amount column and inserting 
        ``$69,800,000'';
            (2) in the item relating to Fort Drum, New York, by striking 
        ``$18,000,000'' in the amount column and inserting 
        ``$21,000,000'';
            (3) in the item relating to Fort Hood, Texas, by striking 
        ``$36,492,000'' in the amount column and inserting 
        ``$39,492,000''; and
            (4) by striking the amount identified as the total in the 
        amount column and inserting ``$626,374,000''.

    (b) Conforming Amendments.--Section 2104 of that Act (114 Stat. 
1654A-391) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``$1,925,344,000'' and inserting 
        ``$1,935,744,000''; and
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``$22,600,000'' 
                and inserting ``$27,000,000'';
                    (B) in paragraph (3), by striking ``$10,000,000'' 
                and inserting ``$13,000,000''; and
                    (C) in paragraph (6), by striking ``$6,000,000'' and 
                inserting ``$9,000,000''.
SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 2000 PROJECTS.

    Section 2104 of the Military Construction Authorization Act for 
Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 826), as 
amended by section 2105(c) of the Spence Act; 114 Stat. 1654A-393), is 
amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``$2,358,331,000'' and inserting 
                ``$2,321,931,000''; and
                    (B) in paragraph (1), by striking ``$930,058,000'' 
                and inserting ``$893,658,000''; and
            (2) in subsection (b)(7), by striking ``$102,500,000'' and 
        inserting ``$138,900,000''.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
           2001 projects.
Sec. 2206. Modification of authority to carry out certain fiscal year 
           2000 project.

[[Page 115 STAT. 1286]]

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION 
                          PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


                     Navy: Inside the United States
------------------------------------------------------------------------
            State              Installation or location       Amount
------------------------------------------------------------------------
Arizona......................  Marine Corps Air              $22,570,000
                                Station, Yuma..........
California...................  Marine Air-Ground Task        $75,125,000
                                Force Training Center,
                                Twentynine Palms.......
                               Marine Corps Air               $4,470,000
                                Station, Camp Pendleton
                               Marine Corps Base, Camp       $96,490,000
                                Pendleton..............
                               Naval Air Facility, El        $23,520,000
                                Centro.................
                               Naval Air Station,            $10,010,000
                                Lemoore................
                               Naval Air Warfare             $30,200,000
                                Center, China Lake.....
                               Naval Air Warfare             $13,730,000
                                Center, Point Mugu, San
                                Nicholas Island........
                               Naval Amphibious Base,         $8,610,000
                                Coronado...............
                               Naval Construction            $12,400,000
                                Battalion Center, Port
                                Hueneme................
                               Naval Construction             $3,780,000
                                Training Center, Port
                                Hueneme................
                               Naval Station, San Diego      $47,240,000
District of Columbia.........  Naval Air Facility,            $9,810,000
                                Washington.............
Florida......................  Naval Air Station, Key        $11,400,000
                                West.
                               Naval Air Station,             $2,140,000
                                Whiting Field, Milton..
                               Naval Station, Mayport..      $16,420,000
                               Naval Station, Pensacola       $3,700,000
Hawaii.......................  Marine Corps Base,            $24,920,000
                                Kaneohe................
                               Naval Magazine Lualualei       $6,000,000
                               Naval Shipyard, Pearl         $20,000,000
                                Harbor.
                               Naval Station, Pearl          $54,700,000
                                Harbor.
                               Navy Public Works             $16,900,000
                                Center, Pearl Harbor...
Illinois.....................  Naval Training Center,        $82,260,000
                                Great Lakes............
Indiana......................  Naval Surface Warfare         $14,930,000
                                Center, Crane..........
Maine........................  Naval Air Station,            $67,395,000
                                Brunswick.
                               Naval Shipyard,               $14,620,000
                                Portsmouth.............
Maryland.....................  Naval Air Warfare              $2,260,000
                                Center, Patuxent River.
                               Naval Air Warfare              $5,100,000
                                Center, St. Inigoes....
                               Naval Explosive                $1,250,000
                                Ordinance Disposal
                                Technology Center,
                                Indian Head............
Mississippi..................  Naval Air Station,             $3,370,000
                                Meridian.
                               Naval Construction            $21,660,000
                                Battalion Center,
                                Gulfport...............
                               Naval Station,                 $4,680,000
                                Pascaguola.............
Missouri.....................  Marine Corps Support           $9,010,000
                                Activity, Kansas City..
Nevada.......................  Naval Air Station,             $6,150,000
                                Fallon.................
New Jersey...................  Naval Weapons Station,         $4,370,000
                                Earle..................

[[Page 115 STAT. 1287]]

 
North Carolina...............  Marine Corps Air               $4,050,000
                                Station, New River.....
                               Marine Corps Base, Camp       $67,070,000
                                Lejeune................
Pennsylvania.................  Naval Foundry and             $14,800,000
                                Propeller Center,
                                Philadelphia...........
Rhode Island.................  Naval Station, Newport..      $15,290,000
                               Naval Underwater Warfare       $9,370,000
                                Center, Newport........
South Carolina...............  Marine Corps Air               $8,020,000
                                Station, Beaufort......
                               Marine Corps Recruit           $5,430,000
                                Depot, Parris Island...
Tennessee....................  Naval Support Activity,        $3,900,000
                                Millington.............
Virginia.....................  Marine Corps Air               $3,790,000
                                Facility, Quantico.....
                               Marine Corps Combat Dev        $9,390,000
                                Com....................
                               Naval Amphibious Base,         $9,090,000
                                Little Creek...........
                               Naval Station, Norfolk..     $139,270,000
Washington...................  Naval Air Station,             $7,370,000
                                Whidbey Island.........
                               Naval Station, Everett..       $6,820,000
                               Strategic Weapons              $3,900,000
                                Facility, Bangor.......
                                                        ----------------
                                   Total:..............   $1,058,750,000
------------------------------------------------------------------------

  
    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the locations outside the United States, and 
in the amounts, set forth in the following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country             Installation or location       Amount
------------------------------------------------------------------------
Greece.......................  Naval Support Activity        $12,240,000
                                Joint Headquarters
                                Command, Larissa.......
                               Naval Support Activity,        $3,210,000
                                Souda Bay..............
Guam.........................  Naval Station, Guam.....       $9,300,000
                               Navy Public Works             $14,800,000
                                Center, Guam.
Iceland......................  Naval Air Station,             $2,820,000
                                Keflavik.
Italy........................  Naval Air Station,             $3,060,000
                                Sigonella.
Spain........................  Naval Station, Rota.....       $2,240,000
                                                        ----------------
                                   Total:..............      $47,670,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may construct or acquire family 
housing units (including land acquisition) at the installations, for the 
purposes, and in the amounts set forth in the following table:

[[Page 115 STAT. 1288]]



                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                     Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Marine Corps Air Station,     51 Units..................    $9,017,000
                                           Yuma......................
California..............................  Marine Air-Ground Task        74 Units..................   $16,250,000
                                           Force Training Center,
                                           Twentynine Palms..........
Hawaii..................................  Marine Corps Base, Kaneohe.  172 Units..................   $46,996,000
                                          Naval Station, Pearl Harbor   70 Units..................   $16,827,000
Mississippi.............................  Naval Construction           160 Units..................   $23,354,000
                                           Battalion Center, Gulfport
Virginia................................  Marine Corps Combat           60 Units..................    $7,000,000
                                           Development Command,
                                           Quantico..................
Italy...................................  Naval Air Station,            10 Units..................    $2,403,000
                                           Sigonella.................
                                                                                                   -------------
                                                                           Total:.................  $121,847,000
----------------------------------------------------------------------------------------------------------------

  
    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2204(a)(5)(A), the Secretary 
of the Navy may carry out architectural and engineering services and 
construction design activities with respect to the construction or 
improvement of military family housing units in an amount not to exceed 
$6,499,000.
SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $203,434,000.
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2001, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Navy in the total amount of $2,366,742,000, as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $1,005,410,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $47,670,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $10,546,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $39,557,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $331,780,000.
                    (B) For support of military housing (including 
                functions described in section 2833 of title 10, United 
                States Code), $910,095,000.

[[Page 115 STAT. 1289]]

            (6) For construction of phase 6 of a large anachoic chamber 
        facility at the Patuxent River Naval Air Warfare Center, 
        Maryland, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 1993 (division B 
        of Public Law 102-484; 106 Stat. 2590), $10,770,000.
            (7) For construction of the Commander-in-Chief Headquarters, 
        Pacific Command, Camp H.M. Smith, Hawaii, authorized by section 
        2201(a) of the Military Construction Authorization Act for 
        Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 
        828), as amended by section 2206 of this Act, $37,580,000.
            (8) For repair of a pier at Naval Station, San Diego, 
        California, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2001 (division B 
        of the Spence Act; 114 Stat. 1654A-396), $17,500,000.
            (9) For replacement of a pier at Naval Station, Bremerton, 
        Washington, formerly Naval Shipyard, Bremerton, Puget Sound, 
        Washington, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2001 (division B 
        of the Spence Act; 114 Stat. 1654A-396), as amended by section 
        2205 of this Act, $24,460,000.
            (10) For construction of an industrial skills center at 
        Puget Sound Naval Shipyard, Bremerton, Washington, formerly 
        Naval Shipyard, Bremerton, Puget Sound, Washington, authorized 
        by section 2201(a) of the Military Construction Authorization 
        Act for Fiscal Year 2001 (division B of the Spence Act; 114 
        Stat. 1654A-396), as amended by section 2205 of this Act, 
        $14,000,000.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a);
            (2) $33,240,000 (the balance of the amount authorized under 
        section 2201(a) for replacement of a pier, increment I, at Naval 
        Station, Norfolk, Virginia); and
            (3) $20,100,000 (the balance of the amount authorized under 
        section 2201(a) for a combined propulsion and explosives lab at 
        Naval Air Warfare Center, China Lake, California).

    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (10) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$82,626,000, which represents the combination of savings resulting from 
adjustments to foreign currency exchange rates for military 
construction, military family housing construction, and military family 
housing support outside the United States and savings resulting from 
favorable bids, reduced overhead charges, and cancellations due to force 
structure changes.
SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 2001 PROJECTS.

    (a) Authorized Construction and Land Acquisition.--The table in 
section 2201(a) of the Military Construction Authorization Act for 
Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A-395) is 
amended--

[[Page 115 STAT. 1290]]

            (1) in the item relating to Naval Shipyard, Bremerton, Puget 
        Sound, Washington, by striking ``$100,740,000'' in the amount 
        column and inserting ``$102,460,000'';
            (2) in the item relating to Naval Station, Bremerton, 
        Washington, by striking ``$11,930,000'' in the amount column and 
        inserting ``$1,930,000''; and
            (3) by striking the amount identified as the total in the 
        amount column and inserting ``$803,217,000''.

    (b) Planning and Design.--Section 2204(a) of that Act (114 Stat. 
1654A-398) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``$2,227,995,000'' and inserting ``$2,208,407,000''; and
            (2) in paragraph (4), by striking ``$73,335,000'' and 
        inserting ``$53,747,000''.

    (c) Conforming Amendment.--Section 2204(b)(4) of that Act (114 Stat. 
1654A-398) is amended by striking ``$10,280,000'' and inserting 
``$14,000,000''.
SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 2000 PROJECT.

    (a) Modification.--The table in section 2201(a) of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B of 
Public Law 106-65; 113 Stat. 828) is amended--
            (1) in the item relating to Camp H.M. Smith, Hawaii, by 
        striking ``$86,050,000'' in the amount column and inserting 
        ``$89,050,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$820,230,000''.

    (b) Conforming Amendment.--Section 2204(b)(3) of that Act (113 Stat. 
831) is amended by striking ``$70,180,000'' and inserting 
``$73,180,000''.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
           projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Modification of authority to carry out certain fiscal year 
           2001 projects.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
                          PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the following 
table:

[[Page 115 STAT. 1291]]



                   Air Force: Inside the United States
------------------------------------------------------------------------
            State              Installation or location       Amount
------------------------------------------------------------------------
Alabama......................  Maxwell Air Force Base..      $34,400,000
Alaska.......................  Eareckson Air Force Base       $4,600,000
                               Elmendorf Air Force Base      $32,200,000
Arizona......................  Davis-Monthan Air Force       $23,500,000
                                Base...................
                               Luke Air Force Base.....       $4,500,000
Arkansas.....................  Little Rock Air Force         $18,100,000
                                Base...................
California...................  Beale Air Force Base....       $7,900,000
                               Edwards Air Force Base..      $16,300,000
                               Los Angeles Air Force         $23,000,000
                                Base.
                               Travis Air Force Base...      $10,100,000
                               Vandenberg Air Force          $11,800,000
                                Base.
Colorado.....................  Buckley Air Force Base..      $23,200,000
                               Schriever Air Force Base      $30,400,000
                               United States Air Force       $25,500,000
                                Academy................
Delaware.....................  Dover Air Force Base....       $7,300,000
District of Columbia.........  Bolling Air Force Base..       $2,900,000
Florida......................  Cape Canaveral Air Force       $7,800,000
                                Station................
                               Eglin Air Force Base....      $11,400,000
                               Hurlburt Field..........      $10,400,000
                               Tyndall Air Force Base..      $20,350,000
Georgia......................  Moody Air Force Base....       $8,600,000
                               Robins Air Force Base...      $14,650,000
Idaho........................  Mountain Home Air Force       $14,600,000
                                Base...................
Kansas.......................  McConnell Air Force Base       $5,100,000
Louisiana....................  Barksdale Air Force Base       $5,000,000
Maryland.....................  Andrews Air Force Base..      $19,420,000
Massachusetts................  Hanscom Air Force Base..       $9,400,000
Mississippi..................  Columbus Air Force Base.       $5,000,000
                               Keesler Air Force Base..      $28,600,000
Montana......................  Malmstrom Air Force Base       $4,650,000
Nevada.......................  Nellis Air Force Base...      $31,600,000
New Jersey...................  McGuire Air Force Base..      $36,550,000
New Mexico...................  Cannon Air Force Base...       $9,400,000
                               Kirtland Air Force Base.      $19,800,000
North Carolina...............  Pope Air Force Base.....      $17,800,000
North Dakota.................  Grand Forks Air Force          $7,800,000
                                Base.
Ohio.........................  Wright-Patterson Air          $28,250,000
                                Force Base.............
Oklahoma.....................  Altus Air Force Base....      $20,200,000
                               Tinker Air Force Base...      $21,400,000
South Carolina...............  Shaw Air Force Base.....       $5,800,000
South Dakota.................  Ellsworth Air Force Base      $12,200,000
Tennessee....................  Arnold Air Force Base...      $24,400,000
Texas........................  Dyess Air Force Base....      $16,800,000
                               Lackland Air Force Base.      $12,800,000
                               Laughlin Air Force Base.      $15,600,000
                               Sheppard Air Force Base.      $45,200,000
Utah.........................  Hill Air Force Base.....      $44,000,000
Virginia.....................  Langley Air Force Base..      $47,300,000
Washington...................  Fairchild Air Force Base       $2,800,000
                               McChord Air Force Base..      $20,700,000
Wyoming......................  F. E. Warren Air Force        $10,200,000
                                Base.
                                                        ----------------
                                   Total:..............     $891,270,000
------------------------------------------------------------------------

  
    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:

[[Page 115 STAT. 1292]]



                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country             Installation or location       Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Force Base.      $42,900,000
                               Spangdahlem Air Base....       $8,700,000
Guam.........................  Andersen Air Force Base.      $10,150,000
Italy........................  Aviano Air Base.........      $11,800,000
Korea........................  Kunsan Air Base.........      $12,000,000
                               Osan Air Base...........     $101,142,000
Oman.........................  Masirah.................       $8,000,000
Turkey.......................  Eskisehir...............       $4,000,000
                               Incirlik................       $5,500,000
United Kingdom...............  Royal Air Force,              $11,300,000
                                Lakenheath.
                               Royal Air Force,              $22,400,000
                                Mildenhall.
Wake Island..................  Wake Island.............      $25,000,000
                                                        ----------------
                                   Total:..............     $262,892,000
------------------------------------------------------------------------

  
    (c) Unspecified Worldwide.--Using the amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(3), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installation and location, and in 
the amount, set forth in the following table:
      

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location                  Installation             Amount
------------------------------------------------------------------------
Unspecified Worldwide........  Classified Location.....       $4,458,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                 State                     Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................  Luke Air Force Base........  120 Units.................     $15,712,000
California.............................  Travis Air Force Base......  118 Units.................     $18,150,000
Colorado...............................  Buckley Air Force Base.....   55 Units.................     $11,400,000
Delaware...............................  Dover Air Force Base.......  120 Units.................     $18,145,000
District of Columbia...................  Bolling Air Force Base.....  136 Units.................     $16,926,000
Hawaii.................................  Hickam Air Force Base......  102 Units.................     $25,037,000
Idaho..................................  Mountain Home Air Force       56 Units.................     $10,000,000
                                          Base......................
Louisiana..............................  Barksdale Air Force Base...   56 Units.................      $7,300,000
South Dakota...........................  Ellsworth Air Force Base...   78 Units.................     $13,700,000
Virginia...............................  Langley Air Force Base.....    4 Units.................      $1,200,000
Portugal...............................  Lajes Field, Azores........   64 Units.................     $13,230,000
                                                                                                 ---------------
                                                                          Total:................    $150,800,000
----------------------------------------------------------------------------------------------------------------


[[Page 115 STAT. 1293]]

    (b) Planning and Design.--Using amounts appropriated pursuant to the 
authorization of appropriations in section 2304(a)(6)(A), the Secretary 
of the Air Force may carry out architectural and engineering services 
and construction design activities with respect to the construction or 
improvement of military family housing units in an amount not to exceed 
$24,558,000.
SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$375,345,000.
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2001, for military 
construction, land acquisition, and military family housing functions of 
the Department of the Air Force in the total amount of $2,573,122,000, 
as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $879,270,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $223,592,000.
            (3) For a military construction project at an unspecified 
        worldwide location authorized by section 2301(c), $4,458,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $11,250,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $94,970,000.
            (6) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $550,703,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $844,715,000.
            (7) $12,600,000 for construction of an air freight terminal 
        and base supply complex at McGuire Air Force Base, New Jersey, 
        authorized by section 2301(a) of the Military Construction 
        Authorization Act for Fiscal Year 2001 (division B of the Spence 
        Act; 114 Stat. 1654A-399), as amended by section 2305 of this 
        Act.

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a);
            (2) $12,000,000 (the balance of the amount authorized under 
        section 2301(a) for a maintenance depot hanger at Hill Air Force 
        Base, Utah);
            (3) $15,300,000 (the balance of the amount authorized under 
        section 2301(b) for repair of an airfield runway at Wake 
        Island); and

[[Page 115 STAT. 1294]]

            (4) $24,000,000 (the balance of the amount authorized under 
        section 2301(b) for a civil engineer complex at Osan Air Force 
        Base, Korea).

    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (7) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$48,436,000, which represents the combination of savings resulting from 
adjustments to foreign currency exchange rates for military 
construction, military family housing construction, and military family 
housing support outside the United States and savings resulting from 
favorable bids, reduced overhead charges, and cancellations due to force 
structure changes.
SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 2001 PROJECTS.

    (a) McGuire Air Force Base.--The table in section 2301(a) of the 
Military Construction Authorization Act for Fiscal Year 2001 (division B 
of the Spence Act; 114 Stat. 1654A-399) is amended--
            (1) in the item relating to McGuire Air Force Base, New 
        Jersey, by striking ``$29,772,000'' in the amount column and 
        inserting ``$32,972,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$748,955,000''.

    (b) Mountain Home Air Force Base.--The table in section 2302(a) of 
that Act (114 Stat. 1654A-400) is amended in the item relating to 
Mountain Home Air Force Base, Idaho, by striking ``119 Units'' in the 
purpose column and inserting ``46 Units''.
    (c) Conforming Amendment.--Section 2304(b)(2) of that Act (114 Stat. 
1654A-402) is amended by striking ``$9,400,000'' and inserting 
``$12,600,000''.

                      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. Cancellation of authority to carry out certain fiscal year 
                      2001 projects.
Sec. 2405. Modification of authority to carry out certain fiscal year 
                      2000 projects.
Sec. 2406. Modification of authority to carry out certain fiscal year 
                      1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
                      1995 project.
Sec. 2408. Prohibition on expenditures to develop forward operating 
                      location on Aruba.
SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                          ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2403(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:

[[Page 115 STAT. 1295]]



               Defense Agencies: Inside the United States
------------------------------------------------------------------------
            Agency             Installation or location       Amount
------------------------------------------------------------------------
Defense Education Activity...  Laurel Bay, South             $12,850,000
                                Carolina...............
                               Marine Corps Base, Camp        $8,857,000
                                Lejeune, North Carolina
Defense Logistics Agency.....  Defense Distribution          $30,000,000
                                Depot Tracy, California
                               Defense Distribution New      $19,900,000
                                Cumberland,
                                Pennsylvania...........
                               Eielson Air Force Base,        $8,800,000
                                Alaska.................
                               Fort Belvoir, Virginia..         $900,000
                               Grand Forks Air Force          $9,110,000
                                Base, North Dakota.....
                               Hickam Air Force Base,        $29,200,000
                                Hawaii.................
                               McGuire Air Force Base,        $4,400,000
                                New Jersey.............
                               Minot Air Force Base,         $14,000,000
                                North Dakota...........
                               Philadelphia,                  $2,429,000
                                Pennsylvania...........
                               Pope Air Force Base,           $3,400,000
                                North Carolina.........
Special Operations Command...  Aberdeen Proving Ground,       $3,200,000
                                Maryland...............
                               CONUS Classified........       $2,400,000
                               Fort Benning, Georgia...       $5,100,000
                               Fort Bragg, North             $33,562,000
                                Carolina...............
                               Fort Lewis, Washington..       $6,900,000
                               Hurlburt Field, Florida.      $13,400,000
                               MacDill Air Force Base,       $12,000,000
                                Florida................
                               Naval Station, San            $13,650,000
                                Diego, California......
TRICARE Management Activity..  Andrews Air Force Base,       $10,250,000
                                Maryland...............
                               Dyess Air Force Base,          $3,300,000
                                Texas..................
                               F. E. Warren Air Force         $2,700,000
                                Base, Wyoming..........
                               Fort Hood, Texas........      $12,200,000
                               Fort Stewart/Hunter Army      $11,000,000
                                Air Field, Georgia.....
                               Holloman Air Force Base,       $5,700,000
                                New Mexico.............
                               Hurlburt Field, Florida.       $8,800,000
                               Marine Corps Base, Camp       $15,300,000
                                Pendleton, California..
                               Marine Corps Logistics         $5,800,000
                                Base, Albany, Georgia..
                               Naval Air Station,             $6,600,000
                                Whidbey Island,
                                Washington.............
                               Naval Hospital,                $1,600,000
                                Twentynine Palms,
                                California.............
                               Naval Station, Mayport,       $24,000,000
                                Florida................
                               Naval Station, Norfolk,       $21,000,000
                                Virginia...............
                               Schriever Air Force            $4,000,000
                                Base, Colorado.........
Washington Headquarters        Pentagon Reservation,         $25,000,000
 Services....................   Virginia...............
                                                        ----------------
                                   Total:..............     $391,308,000
------------------------------------------------------------------------


[[Page 115 STAT. 1296]]

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2403(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:
      

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
            Agency             Installation or location       Amount
------------------------------------------------------------------------
Defense Education Activity...  Aviano Air Base, Italy..       $3,647,000
                               Geilenkirchen AB,              $1,733,000
                                Germany................
                               Heidelberg, Germany.....       $3,312,000
                               Kaiserslautern, Germany.       $1,439,000
                               Kitzingen, Germany......       $1,394,000
                               Landstuhl, Germany......       $1,444,000
                               Ramstein Air Force Base,       $2,814,000
                                Germany................
                               Royal Air Force,              $22,132,000
                                Feltwell, United
                                Kingdom................
                               Vogelweh Annex, Germany.       $1,558,000
                               Wiesbaden Air Base,            $1,378,000
                                Germany................
                               Wuerzburg, Germany......       $2,684,000
Defense Logistics Agency.....  Anderson Air Force Base,      $20,000,000
                                Guam...................
                               Camp Casey, Korea.......       $5,500,000
                               Naval Station, Rota,           $3,000,000
                                Spain..................
                               Yokota Air Base, Japan..      $13,000,000
Office Secretary of Defense..  Comalapa Air Base, El         $12,577,000
                                Salvador...............
TRICARE Management Activity..  Heidelberg, Germany.....      $28,000,000
                               Lajes Field, Azores,           $3,750,000
                                Portugal...............
                               Thule, Greenland........      $10,800,000
                                                        ----------------
                                   Total:..............     $140,162,000
------------------------------------------------------------------------


SEC. 2402. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2403(a)(6), the Secretary of Defense may carry 
out energy conservation projects under section 2865 of title 10, United 
States Code, in the amount of $27,100,000.
SEC. 2403. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2001, for military 
construction, land acquisition, and military family housing functions of 
the Department of Defense (other than the military departments), in the 
total amount of $1,481,208,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $391,308,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $140,162,000.
            (3) For unspecified minor construction projects under 
        section 2805 of title 10, United States Code, $24,492,000.
            (4) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $10,000,000.

[[Page 115 STAT. 1297]]

            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $54,496,000.
            (6) For energy conservation projects authorized by section 
        2402, $27,100,000.
            (7) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note), $632,713,000.
            (8) For military family housing functions:
                    (A) For improvement of military family housing and 
                facilities, $250,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $43,762,000, of which not more 
                than $37,298,000 may be obligated or expended for the 
                leasing of military family housing units worldwide.
                    (C) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $2,000,000.
            (9) For the construction of phase 6 of an ammunition 
        demilitarization facility at Pine Bluff Arsenal, Arkansas, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1995 (division B of Public Law 
        103-337; 108 Stat. 3040), as amended by section 2407 of the 
        Military Construction Authorization Act for Fiscal Year 1996 
        (division B of Public Law 104-106; 110 Stat. 539), section 2408 
        of the Military Construction Authorization Act for Fiscal Year 
        1998 (division B of Public Law 105-85; 111 Stat. 1982), section 
        2406 of the Military Construction Authorization Act for Fiscal 
        Year 1999 (division B of Public Law 105-261; 112 Stat. 2197), 
        and section 2407 of this Act, $26,000,000.
            (10) For the construction of phase 3 of an ammunition 
        demilitarization facility at Pueblo Army Depot, Colorado, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1997 (division B of Public Law 
        104-201; 110 Stat. 2775), as amended by section 2406 of the 
        Military Construction Authorization Act for Fiscal Year 2000 
        (division B of Public Law 106-65; 113 Stat. 839), $11,000,000.
            (11) For construction of phase 4 of an ammunition 
        demilitarization facility at Newport Army Depot, Indiana, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1999 (division B of Public Law 
        105-261; 112 Stat. 2193), $66,000,000.
            (12) For construction of phase 4 of an ammunition 
        demilitarization facility at Aberdeen Proving Ground, Maryland, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1999 (division B of Public Law 
        105-261; 112 Stat. 2193), as amended by section 2406 of this 
        Act, $66,500,000.
            (13) For the construction of phase 2 of an ammunition 
        demilitarization facility at Blue Grass Army Depot, Kentucky, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 2000 (division B of Public Law 
        106-65, 113 Stat. 836), as amended by section 2405 of this Act, 
        $3,000,000.

[[Page 115 STAT. 1298]]

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2401 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a).
    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (13) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced by 
$17,575,000, which represents the combination of savings resulting from 
adjustments to foreign currency exchange rates for military 
construction, military family housing construction, and military family 
housing support outside the United States and savings resulting from 
favorable bids, reduced overhead charges, and cancellations due to force 
structure changes.
SEC. 2404. CANCELLATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 2001 PROJECTS.

    (a) Cancellation of Projects at Camp Pendleton, California.--The 
table in section 2401(a) of the Military Construction Authorization Act 
for Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A-402) 
is amended--
            (1) under the agency heading TRICARE Management Activity, by 
        striking the item relating to Marine Corps Base, Camp Pendleton, 
        California; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$242,756,000''.

    (b) Cancellation of Projects at Unspecified Worldwide Locations.--
Section 2401(c) of that Act (114 Stat. 1654A-404) is amended by striking 
``$451,135,000'' and inserting ``$30,065,000''.
    (c) Treatment of Authorization of Appropriations for Certain 
Canceled Projects.--Of the amount authorized to be appropriated by 
section 2403(a) of that Act (114 Stat. 1654A-404), and paragraph (1) of 
that section, $14,150,000 shall be available for purposes relating to 
construction of the Portsmouth Naval Hospital, Virginia, as authorized 
by section 2401(a) of the Military Construction Authorization Act for 
Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 103 Stat. 
1640).
    (d) Reduction in Authorization of Appropriations for Projects at 
Unspecified Worldwide Locations.--Section 2403 of that Act (114 Stat. 
1654A-404) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``$1,883,902,000'' and inserting 
                ``$1,828,872,000''; and
                    (B) in paragraph (3), by striking ``$85,095,000'' 
                and inserting ``$30,065,000''; and
            (2) in subsection (b), by striking ``may not exceed--'' and 
        all that follows through the end of the subsection and inserting 
        ``may not exceed the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a).''.
SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 2000 PROJECTS.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B of 
Public Law 106-65; 113 Stat. 835) is amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization, in the item relating to Blue Grass Army Depot,

[[Page 115 STAT. 1299]]

        Kentucky, by striking ``$206,800,000'' in the amount column and 
        inserting ``$254,030,000'';
            (2) under the agency heading relating to TRICARE Management 
        Agency--
                    (A) in the item relating to Fort Wainwright, Alaska, 
                by striking ``$133,000,000'' in the amount column and 
                inserting ``$215,000,000''; and
                    (B) by striking the item relating to Naval Air 
                Station, Whidbey Island, Washington; and
            (3) by striking the amount identified as the total in the 
        amount column and inserting ``$711,950,000''.

    (b) Treatment of Authorization of Appropriations for Canceled 
Whidbey Island Project.--Of the amount authorized to be appropriated by 
section 2405(a) of that Act (113 Stat. 837), and paragraph (1) of that 
section, $4,700,000 shall be available for purposes relating to 
construction of the Portsmouth Naval Hospital, Virginia, as authorized 
by section 2401(a) of the Military Construction Authorization Act for 
Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 103 Stat. 
1640).
    (c) Conforming Amendments.--Section 2405(b) of that Act (113 Stat. 
839) is amended--
            (1) in paragraph (2), by striking ``$115,000,000'' and 
        inserting ``$197,000,000''; and
            (2) in paragraph (3), by striking ``$184,000,000'' and 
        inserting ``$231,230,000''.
SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 1999 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B of 
Public Law 105-261; 112 Stat. 2193) is amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization, in the item relating to Aberdeen Proving 
        Ground, Maryland, by striking ``$186,350,000'' in the amount 
        column and inserting ``$223,950,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$727,616,000''.

    (b) Conforming Amendment.--Section 2404(b)(3) of that Act (112 Stat. 
2196) is amended by striking ``$158,000,000'' and inserting 
``$195,600,000''.
SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL 
                          YEAR 1995 PROJECT.

    The table in section 2401 of the Military Construction Authorization 
Act for Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 
3040), as amended by section 2407 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public Law 104-
106; 110 Stat. 539), section 2408 of the Military Construction 
Authorization Act for Fiscal Year 1998 (division B of Public Law 105-85; 
111 Stat. 1982), and section 2406 of the Military Construction 
Authorization Act for Fiscal Year 1999 (division B of Public Law 105-
261; 112 Stat. 2197), is amended under the agency heading relating to 
Chemical Agents and Munitions Destruction, in the item relating to Pine 
Bluff Arsenal, Arkansas, by striking ``$154,400,000'' in the amount 
column and inserting ``$177,400,000''.

[[Page 115 STAT. 1300]]

SEC. 2408. PROHIBITION ON EXPENDITURES TO DEVELOP FORWARD 
                          OPERATING LOCATION ON ARUBA.

    None of the funds appropriated under the heading ``military 
construction, defense-wide'' in chapter 3 of title III of the Emergency 
Supplemental Act, 2000 (Public Law 106-246; 114 Stat. 579), may be used 
by the Secretary of Defense to develop any forward operating location on 
the island of Aruba.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION 
                          PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment Program as provided in 
section 2806 of title 10, United States Code, in an amount not to exceed 
the sum of the amount authorized to be appropriated for this purpose in 
section 2502 and the amount collected from the North Atlantic Treaty 
Organization as a result of construction previously financed by the 
United States.
SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2001, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment Program authorized by 
section 2501, in the amount of $162,600,000.

                TITLE XXVI--GUARD AND RESERVE FACILITIES

Sec. 2601. Authorized guard and reserve construction and land 
           acquisition projects.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
                          ACQUISITION PROJECTS.

    (a) In General.--There are authorized to be appropriated for fiscal 
years beginning after September 30, 2001, for the costs of acquisition, 
architectural and engineering services, and construction of facilities 
for the Guard and Reserve Forces, and for contributions therefor, under 
chapter 1803 of title 10, United States Code (including the cost of 
acquisition of land for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $393,253,000; and
                    (B) for the Army Reserve, $168,969,000.

[[Page 115 STAT. 1301]]

            (2) For the Department of the Navy, for the Naval and Marine 
        Corps Reserve, $52,896,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United States, 
                $253,852,000; and
                    (B) for the Air Force Reserve, $73,032,000.

         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 1999 
                      projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1998 
                      projects.
Sec. 2704. Effective date.
SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
                          SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
            (1) October 1, 2004; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 2005.

    (b) Exception.--Subsection (a) shall not apply to authorizations for 
military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic Treaty 
Organization Security Investment program (and authorizations of 
appropriations therefor) for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2004; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 2005 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization Security 
        Investment program.
SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999 
                          PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B of 
Public Law 105-261; 112 Stat. 2199), authorizations set forth in the 
tables in subsection (b), as provided in section 2302 or 2601 of that 
Act, shall remain in effect until October 1, 2002, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2003, whichever is later.

[[Page 115 STAT. 1302]]

    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

                               Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,998,000
                                                                    units)......................
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    units)......................
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    units)......................
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base..............   units)......................
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Massachusetts.........................  Westfield................  Army Aviation Support              $9,274,000
                                                                    Facility....................
South Carolina........................  Spartanburg..............  Readiness Center.............      $5,260,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1998 
                          PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1998 (division B of 
Public Law 105-85; 111 Stat. 1984), authorizations set forth in the 
tables in subsection (b), as provided in section 2102, 2202, or 2302 of 
that Act and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 2001 (division B of the Spence Act; 
114 Stat. 1654A-408), shall remain in effect until October 1, 2002, or 
the date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2003, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

                                  Army: Extension of 1998 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Maryland..............................  Fort Meade...............  Family Housing Construction        $7,900,000
                                                                    (56 units)..................
----------------------------------------------------------------------------------------------------------------



[[Page 115 STAT. 1303]]


                                 Navy: Extension of 1998 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
California............................  Naval Complex, San Diego.  Replace Family Housing (94        $13,500,000
                                                                    units)......................
California............................  Marine Corps Air Station,  Family Housing Construction       $28,881,000
                                         Miramar.................   (166 units).................
Louisiana.............................  Naval Complex, New         Replace Family Housing (100       $11,930,000
                                         Orleans.................   units)......................
Texas.................................  Naval Air Station, Corpus  Family Housing Construction       $22,250,000
                                         Christi.................   (212 units).................
----------------------------------------------------------------------------------------------------------------



                               Air Force: Extension of 1998 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (180       $20,900,000
                                                                    units)......................
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on 
the later of--
            (1) October 1, 2001; or
            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in thresholds for certain unspecified minor military 
                      construction projects.
Sec. 2802. Exclusion of unforeseen environmental hazard remediation from 
                      limitation on authorized cost variations.
Sec. 2803. Repeal of annual reporting requirement on military 
                      construction and military family housing 
                      activities.
Sec. 2804. Funds for housing allowances of members assigned to military 
                      family housing under alternative authority for 
                      acquisition and improvement of military housing.
Sec. 2805. Extension of alternative authority for acquisition and 
                      improvement of military housing.
Sec. 2806. Treatment of financing costs as allowable expenses under 
                      contracts for utility services from utility 
                      systems conveyed under privatization initiative.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Use of military installations for certain recreational 
                      activities.
Sec. 2812. Availability of proceeds of sales of Department of Defense 
                      property from certain closed military 
                      installations.
Sec. 2813. Pilot program to provide additional tools for efficient 
                      operation of military installations.
Sec. 2814. Demonstration program on reduction in long-term facility 
                      maintenance costs.

[[Page 115 STAT. 1304]]

Sec. 2815. Base efficiency project at Brooks Air Force Base, Texas.

 Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

Sec. 2821. Lease back of base closure property.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Land conveyance, Whittier-Anchorage Pipeline Tank Farm, 
                      Anchorage, Alaska.
Sec. 2832. Lease authority, Fort DeRussy, Hawaii.
Sec. 2833. Modification of land exchange, Rock Island Arsenal, Illinois.
Sec. 2834. Land conveyance, Fort Des Moines, Iowa.
Sec. 2835. Modification of land conveyances, Fort Dix, New Jersey.
Sec. 2836. Land conveyance, Engineer Proving Ground, Fort Belvoir, 
                      Virginia.
Sec. 2837. Land exchange and consolidation, Fort Lewis, Washington.
Sec. 2838. Land conveyance, Army Reserve Center, Kewaunee, Wisconsin.

                        Part II--Navy Conveyances

Sec. 2841. Transfer of jurisdiction, Centerville Beach Naval Station, 
                      Humboldt County, California.
Sec. 2842. Land conveyance, Port of Long Beach, California.
Sec. 2843. Conveyance of pier, Naval Base, San Diego, California.
Sec. 2844. Modification of authority for conveyance of Naval Computer 
                      and Telecommunications Station, Cutler, Maine.
Sec. 2845. Land transfer and conveyance, Naval Security Group Activity, 
                      Winter Harbor, Maine.
Sec. 2846. Land acquisition, Perquimans County, North Carolina.
Sec. 2847. Land conveyance, Naval Weapons Industrial Reserve Plant, 
                      Toledo, Ohio.
Sec. 2848. Modification of land conveyance, former United States Marine 
                      Corps Air Station, Eagle Mountain Lake, Texas.

                     Part III--Air Force Conveyances

Sec. 2851. Conveyance of avigation easements, former Norton Air Force 
                      Base, California.
Sec. 2852. Reexamination of land conveyance, Lowry Air Force Base, 
                      Colorado.
Sec. 2853. Water rights conveyance, Andersen Air Force Base, Guam.
Sec. 2854. Conveyance of segment of Loring petroleum pipeline, Maine, 
                      and related easements.
Sec. 2855. Land conveyance, petroleum terminal serving former Loring Air 
                      Force Base and Bangor Air National Guard Base, 
                      Maine.
Sec. 2856. Land conveyances, certain former Minuteman III ICBM 
                      facilities in North Dakota.
Sec. 2857. Land conveyances, Charleston Air Force Base, South Carolina.
Sec. 2858. Transfer of jurisdiction, Mukilteo Tank Farm, Everett, 
                      Washington.

                        Subtitle E--Other Matters

Sec. 2861. Management of the Presidio of San Francisco.
Sec. 2862. Transfer of jurisdiction for development of Air Force morale, 
                      welfare, and recreation facility, Park City, Utah.
Sec. 2863. Alternate site for United States Air Force Memorial, 
                      preservation of open space on Arlington Ridge 
                      tract, and related land transfer at Arlington 
                      National Cemetery, Virginia.
Sec. 2864. Establishment of memorial to victims of terrorist attack on 
                      Pentagon Reservation and authority to accept 
                      monetary contributions for memorial and repair of 
                      Pentagon.
Sec. 2865. Repeal of limitation on cost of renovation of Pentagon 
                      Reservation.
Sec. 2866. Development of United States Army Heritage and Education 
                      Center at Carlisle Barracks, Pennsylvania.
Sec. 2867. Effect of limitation on construction of roads or highways, 
                      Marine Corps Base, Camp Pendleton, California.
Sec. 2868. Establishment of World War II memorial at additional location 
                      on Guam.
Sec. 2869. Demonstration project for purchase of fire, security, police, 
                      public works, and utility services from local 
                      government agencies.
Sec. 2870. Report on future land needs of United States Military 
                      Academy, New York, and adjacent community.
Sec. 2871. Naming of Patricia C. Lamar Army National Guard Readiness 
                      Center, Oxford, Mississippi.

[[Page 115 STAT. 1305]]

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

SEC. 2801. INCREASE IN THRESHOLDS FOR CERTAIN UNSPECIFIED MINOR 
                          MILITARY CONSTRUCTION PROJECTS.

    (a) Projects Requiring Advance Approval of Secretary Concerned.--
Subsection (b)(1) of section 2805 of title 10, United States Code, is 
amended by striking ``$500,000'' and inserting ``$750,000''.
    (b) Projects Using Amounts for Operation and Maintenance.--
Subsection (c)(1) of that section is amended--
            (1) in subparagraph (A), by striking ``$1,000,000'' and 
        inserting ``$1,500,000''; and
            (2) in subparagraph (B), by striking ``$500,000'' and 
        inserting ``$750,000''.
SEC. 2802. EXCLUSION OF UNFORESEEN ENVIRONMENTAL HAZARD 
                          REMEDIATION FROM LIMITATION ON 
                          AUTHORIZED COST VARIATIONS.

    Subsection (d) of section 2853 of title 10, United States Code, is 
amended to read as follows:
    ``(d) The limitation on cost increases in subsection (a) does not 
apply to the following:
            ``(1) The settlement of a contractor claim under a contract.
            ``(2) The costs associated with the required remediation of 
        an environmental hazard in connection with a military 
        construction project or military family housing project, such as 
        asbestos removal, radon abatement, lead-based paint removal or 
        abatement, or any other legally required environmental hazard 
        remediation, if the required remediation could not have 
        reasonably been anticipated at the time the project was approved 
        originally by Congress.''.
SEC. 2803. REPEAL OF ANNUAL REPORTING REQUIREMENT ON MILITARY 
                          CONSTRUCTION AND MILITARY FAMILY HOUSING 
                          ACTIVITIES.

    (a) Repeal.--Section 2861 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter III of chapter 169 of such title is amended by striking the 
item relating to section 2861.
SEC. 2804. FUNDS FOR HOUSING ALLOWANCES OF MEMBERS ASSIGNED TO 
                          MILITARY FAMILY HOUSING UNDER 
                          ALTERNATIVE AUTHORITY FOR ACQUISITION 
                          AND IMPROVEMENT OF MILITARY HOUSING.

    (a) In General.--Subchapter IV of chapter 169 of title 10, United 
States Code, is amended by inserting after section 2883 the following 
new section:
``Sec. 2883a. Funds for housing allowances of members of the armed 
                      forces assigned to certain military family 
                      housing units

    ``(a) Authority to Transfer Funds To Cover Housing Allowances.--
During the fiscal year in which a contract is awarded for the 
acquisition or construction of military family

[[Page 115 STAT. 1306]]

housing units under this subchapter that are not to be owned by the 
United States, the Secretary of Defense may transfer the amount 
determined under subsection (b) with respect to such housing from 
appropriations available for support of military housing for the armed 
force concerned for that fiscal year to appropriations available for pay 
and allowances of military personnel of that same armed force for that 
same fiscal year.
    ``(b) Amount Transferred.--The total amount authorized to be 
transferred under subsection (a) in connection with a contract under 
this subchapter may not exceed an amount equal to any additional amounts 
payable during the fiscal year in which the contract is awarded to 
members of the armed forces assigned to the acquired or constructed 
housing units as basic allowance for housing under section 403 of title 
37 that would not otherwise have been payable to such members if not for 
assignment to such housing units.
    ``(c) Transfers Subject to Appropriations.--The transfer of funds 
under the authority of subsection (a) is limited to such amounts as may 
be provided in advance in appropriations Acts.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
that subchapter is amended by inserting after the item relating to 
section 2883 the following new item:
``2883a. Funds for housing allowances of members of the armed forces 
              assigned to certain military family housing units.''.
SEC. 2805. EXTENSION OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
                          IMPROVEMENT OF MILITARY HOUSING.

    Section 2885 of title 10, United States Code, is amended by striking 
``2004'' and inserting ``2012''.
SEC. 2806. TREATMENT OF FINANCING COSTS AS ALLOWABLE EXPENSES 
                          UNDER CONTRACTS FOR UTILITY SERVICES 
                          FROM UTILITY SYSTEMS CONVEYED UNDER 
                          PRIVATIZATION INITIATIVE.

    (a) Evaluation of Federal Acquisition Regulation.--The Secretary of 
Defense shall conduct an evaluation of the Federal Acquisition 
Regulation to determine whether or not it is advisable to modify the 
Federal Acquisition Regulation to provide that a contract for utility 
services from a utility system conveyed under section 2688(a) of title 
10, United States Code, may include terms and conditions that recognize 
financing costs, such as return on equity and interest on debt, as an 
allowable expense when incurred by the conveyee of the utility system to 
acquire, operate, renovate, replace, upgrade, repair, or expand the 
utility system. The Secretary shall complete the evaluation not later 
than 90 days after the date of the enactment of this Act.
    (b) Submission of Recommendation to Federal Acquisition Regulatory 
Council.--If the Secretary determines under subsection (a) that it is 
advisable to modify the Federal Acquisition Regulation to provide that a 
contract described in such subsection may include terms and conditions 
described in such subsection, the Secretary shall submit the results of 
the evaluation to the Federal Acquisition Regulatory Council together 
with a recommendation regarding the amendments to the Federal 
Acquisition Regulation necessary to effectuate the modification.

[[Page 115 STAT. 1307]]

         Subtitle B--Real Property and Facilities Administration

SEC. 2811. USE OF MILITARY INSTALLATIONS FOR CERTAIN RECREATIONAL 
                          ACTIVITIES.

    (a) Waiver Authority.--Section 2671 of title 10, United States Code, 
is amended--
            (1) in subsection (b), by striking ``(b)'' and inserting 
        ``(e) Regulations.--'' and transferring the subsection to the 
        end of the section; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):

    ``(b) Waiver Authority.--(1) The Secretary of Defense may waive or 
otherwise modify the fish and game laws of a State or Territory 
otherwise applicable under subsection (a)(1) to hunting, fishing, or 
trapping at a military installation or facility if the Secretary 
determines that the application of such laws to such hunting, fishing, 
or trapping without modification could result in undesirable 
consequences for public health or safety at the installation or 
facility. The authority to waive such laws includes the authority to 
extend, but not reduce, the specified season for certain hunting, 
fishing, or trapping. The Secretary may not waive the requirements under 
subsection (a)(2) regarding a license for such hunting, fishing, or 
trapping or any fee imposed by a State or Territory to obtain such a 
license.
    ``(2) If the Secretary determines that a waiver of fish and game 
laws of a State or Territory is appropriate under paragraph (1), the 
Secretary shall provide written notification to the appropriate State or 
Territory officials stating the reasons for, and extent of, the waiver. 
The notification shall be provided at least 30 days before 
implementation of the waiver.''.
    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``General Requirements 
        for Hunting, Fishing, and Trapping.--'' after ``(a)'';
            (2) in subsection (c), by inserting ``Violations.--'' after 
        ``(c)''; and
            (3) in subsection (d), by inserting ``Relation to Treaty 
        Rights.--'' after ``(d)''.
SEC. 2812. AVAILABILITY OF PROCEEDS OF SALES OF DEPARTMENT OF 
                          DEFENSE PROPERTY FROM CERTAIN CLOSED 
                          MILITARY INSTALLATIONS.

    (a) Modification of Availability Percentages.--Subsection (h)(2) of 
section 204 of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 485) is amended by striking subparagraphs (A) and (B) 
and inserting the following new subparagraphs:
            ``(A) In the case of property located at a military 
        installation that is closed, such amount shall be available for 
        facility maintenance and repair or environmental restoration by 
        the military department that had jurisdiction over such property 
        before the closure of the military installation.
            ``(B) In the case of property located at any other military 
        installation--

[[Page 115 STAT. 1308]]

                    ``(i) 50 percent of such amount shall be available 
                for facility maintenance and repair or environmental 
                restoration at the military installation where such 
                property was located before it was disposed of or 
                transferred; and
                    ``(ii) 50 percent of such amount shall be available 
                for facility maintenance and repair and for 
                environmental restoration by the military department 
                that had jurisdiction over such property before it was 
                disposed of or transferred.''.

    (b) Relation to Other Laws.--Subsection (h) of such section is 
further amended--
            (1) in paragraph (1), by inserting ``pursuant to a base 
        closure law'' after ``realignment'' in the first sentence; and
            (2) in paragraph (5), by inserting before the period at the 
        end the following: ``, and the term `base closure law' shall 
        have the meaning given that term in section 2667(h)(2) of such 
        title''.
SEC. 2813. PILOT <<NOTE: 10 USC 2661 note.>>  PROGRAM TO PROVIDE 
                          ADDITIONAL TOOLS FOR EFFICIENT OPERATION 
                          OF MILITARY INSTALLATIONS.

    (a) Initiative Authorized.--The Secretary of Defense may carry out a 
pilot program (to be known as the ``Pilot Efficient Facilities 
Initiative'') for purposes of determining the potential for increasing 
the efficiency and effectiveness of the operation of military 
installations.
    (b) Designation of Participating Military Installations.--(1) The 
Secretary of Defense may designate up to two military installations of 
each military department for participation in the Initiative.
    (2) Before designating a military installation under paragraph (1), 
the Secretary shall consult with employees at the installation and 
communities in the vicinity of the installation regarding the 
Initiative.
    (3) <<NOTE: Notification. Deadline.>>  The Secretary shall transmit 
to Congress written notification of the designation of a military 
installation to participate in the Initiative not later than 30 days 
before taking any action to carry out the Initiative at the 
installation. The notification shall include a description of the steps 
taken by the Secretary to comply with paragraph (2).

    (c) Management Plan.--(1) As part of the notification required under 
subsection (b), the Secretary of Defense shall submit a management plan 
for the Initiative at the military installation designated in the 
notification.
    (2) The management plan for a designated military installation shall 
include a description of--
            (A) each proposed lease of real or personal property located 
        at the military installation;
            (B) each proposed disposal of real or personal property 
        located at the installation;
            (C) each proposed leaseback of real or personal property 
        leased or disposed of at the installation;
            (D) each proposed conversion of services at the installation 
        from Federal Government performance to non-Federal Government 
        performance, including performance by contract with a State or 
        local government or private entity or performance as 
        consideration for the lease or disposal of property at the 
        installation; and

[[Page 115 STAT. 1309]]

            (E) each other action proposed to be taken to improve 
        mission effectiveness and reduce the cost of providing quality 
        installation support at the installation.

    (3) With respect to each proposed action described under paragraph 
(2), the management plan shall include--
            (A) an estimate of the savings expected to be achieved as a 
        result of the action;
            (B) each regulation not required by statute that is proposed 
        to be waived to implement the action; and
            (C) each statute or regulation required by statute that is 
        proposed to be waived to implement the action, including--
                    (i) an explanation of the reasons for the proposed 
                waiver; and
                    (ii) a description of the action to be taken to 
                protect the public interests served by the statute or 
                regulation, as the case may be, in the event of the 
                waiver.

    (4) The management plan shall include measurable criteria for the 
evaluation of the effects of the actions taken pursuant to the 
Initiative at the designated military installation.
    (d) Waiver of Statutory Requirements.--The Secretary of Defense may 
waive any statute, or regulation required by statute, for purposes of 
carrying out the Initiative only if specific authority for the waiver of 
such statute or regulation is provided in a law that is enacted after 
the date of the enactment of this Act.
    (e) Installation <<NOTE: Establishment.>>  Efficiency Initiative 
Fund.--(1) There is established on the books of the Treasury a fund to 
be known as the ``Installation Efficiency Initiative Fund''.

    (2) There shall be deposited in the Fund all cash rents, payments, 
reimbursements, proceeds, and other amounts from leases, sales, or other 
conveyances or transfers, joint activities, and other actions taken 
under the Initiative.
    (3) To the extent provided in advance in authorization Acts and 
appropriations Acts, amounts in the Fund shall be available to the 
Secretary of Defense for purposes of managing capital assets and 
providing support services at military installations participating in 
the Initiative. Amounts in the Fund may be used for such purposes in 
addition to, or in combination with, other amounts authorized to be 
appropriated for such purposes. Amounts in the Fund shall be available 
for such purposes for five years.
    (4) Subject to applicable financial management regulations, the 
Secretary shall structure the Fund, and provide administrative policies 
and procedures, in order to provide proper control of deposits in and 
disbursements from the Fund.
    (f) <<NOTE: Deadline.>>  Report.--Not later than December 31, 2004, 
the Secretary of Defense shall submit to Congress a report on the 
Initiative. The report shall contain a description of the actions taken 
under the Initiative and include such other information, including 
recommendations, as the Secretary considers appropriate regarding the 
Initiative.

    (g) Definitions.--In this section:
            (1) The term ``Initiative'' means the Pilot Efficient 
        Facilities Initiative.
            (2) The term ``Fund'' means the Installation Efficiency 
        Initiative Fund.
            (3) The term ``military installation'' has the meaning given 
        such term in section 2687(e) of title 10, United States Code.

[[Page 115 STAT. 1310]]

    (h) Termination.--The authority of the Secretary of Defense to carry 
out the Initiative shall terminate December 31, 2005.
SEC. 2814. DEMONSTRATION <<NOTE: 10 USC 2809 note.>>  PROGRAM ON 
                          REDUCTION IN LONG-TERM FACILITY 
                          MAINTENANCE COSTS.

    (a) Authority To Carry Out Program.--The Secretary of the Army may 
conduct a demonstration program to assess the feasibility and 
desirability of including facility maintenance requirements in 
construction contracts for military construction projects for the 
purpose of determining whether such requirements facilitate reductions 
in the long-term facility maintenance costs of the military departments.
    (b) Contracts.--Not more than three contracts entered into in any 
year may contain requirements referred to in subsection (a) for the 
purpose of the demonstration program. The demonstration program may only 
cover contracts entered into on or after the date of the enactment of 
this Act.
    (c) Effective Period of Requirements.--The effective period of a 
requirement referred to in subsection (a) that is included in a contract 
for the purpose of the demonstration program may not exceed five years.
    (d) <<NOTE: Deadline.>>  Reporting Requirements.--Not later than 
January 31, 2005, the Secretary of the Army shall submit to Congress a 
report on the demonstration program, including the following:
            (1) A description of all contracts that contain requirements 
        referred to in subsection (a) for the purpose of the 
        demonstration program.
            (2) An evaluation of the demonstration program and a 
        description of the experience of the Secretary with respect to 
        such contracts.
            (3) Any recommendations, including recommendations for the 
        termination, continuation, or expansion of the demonstration 
        program, that the Secretary considers appropriate.

    (e) Expiration.--The authority under subsection (a) to include 
requirements referred to in that subsection in contracts under the 
demonstration program shall expire on September 30, 2006.
    (f) Funding.--Amounts authorized to be appropriated for the Army for 
a fiscal year for military construction shall be available for the 
demonstration program under this section in such fiscal year.
SEC. 2815. BASE EFFICIENCY PROJECT AT BROOKS AIR FORCE BASE, 
                          TEXAS.

    (a) Administration of Project.--Section 136(m)(9) of the Military 
Construction Appropriations Act, 2001 (division A of Public Law 106-246; 
114 Stat. 524), is amended by striking ``, who shall be a civilian 
official of the Department appointed by the President with the advice 
and consent of the Senate''.
    (b) <<NOTE: Deadline.>>  Indemnification of Transferees.--Not later 
than March 1, 2002, the Secretary of Defense shall submit to Congress a 
report evaluating the base efficiency project conducted under section 
136 of the Military Construction Appropriations Act, 2001 (division A of 
Public Law 106-246; 114 Stat. 520). The evaluation shall address whether 
the disposal of real property under subsection (e) or other provisions 
of that section requires any additional authority for the Secretary 
beyond the authority provided under existing law to hold harmless, 
defend, and indemnify the recipients of the property against claims 
arising out of Department of Defense activities

[[Page 115 STAT. 1311]]

on the property before disposal. If the Secretary determines that 
inclusion of such an indemnity provision would facilitate activities 
under the base efficiency project, the Secretary shall include a 
recommendation in the report regarding the nature and extent of the 
indemnification to be provided.

 Subtitle C--Implementation of Prior Base Closure and Realignment Rounds

SEC. 2821. LEASE BACK OF BASE CLOSURE PROPERTY.

    (a) 1988 Law.--Section 204(b)(4) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note) is amended--
            (1) by redesignating subparagraphs (E), (F), (G), (H), and 
        (I) as subparagraphs (F), (G), (H), (I), and (J), respectively; 
        and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph (E):

    ``(E)(i) The Secretary may transfer real property at an installation 
approved for closure or realignment under this title (including property 
at an installation approved for realignment which will be retained by 
the Department of Defense or another Federal agency after realignment) 
to the redevelopment authority for the installation if the redevelopment 
authority agrees to lease, directly upon transfer, one or more portions 
of the property transferred under this subparagraph to the Secretary or 
to the head of another department or agency of the Federal Government. 
Subparagraph (B) shall apply to a transfer under this subparagraph.
    ``(ii) A lease under clause (i) shall be for a term of not to exceed 
50 years, but may provide for options for renewal or extension of the 
term by the department or agency concerned.
    ``(iii) A lease under clause (i) may not require rental payments by 
the United States.
    ``(iv) A lease under clause (i) shall include a provision specifying 
that if the department or agency concerned ceases requiring the use of 
the leased property before the expiration of the term of the lease, the 
remainder of the lease term may be satisfied by the same or another 
department or agency of the Federal Government using the property for a 
use similar to the use under the lease. Exercise of the authority 
provided by this clause shall be made in consultation with the 
redevelopment authority concerned.
    ``(v) Notwithstanding clause (iii), if a lease under clause (i) 
involves a substantial portion of the installation, the department or 
agency concerned may obtain facility services for the leased property 
and common area maintenance from the redevelopment authority or the 
redevelopment authority's assignee as a provision of the lease. The 
facility services and common area maintenance shall be provided at a 
rate no higher than the rate charged to non-Federal tenants of the 
transferred property. Facility services and common area maintenance 
covered by the lease shall not include--
            ``(I) municipal services that a State or local government is 
        required by law to provide to all landowners in its jurisdiction 
        without direct charge; or
            ``(II) firefighting or security-guard functions.''.

[[Page 115 STAT. 1312]]

    (b) 1990 Law.--Section 2905(b)(4)(E) 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 adding at the end the following new 
clause:
    ``(v) Notwithstanding clause (iii), if a lease under clause (i) 
involves a substantial portion of the installation, the department or 
agency concerned may obtain facility services for the leased property 
and common area maintenance from the redevelopment authority or the 
redevelopment authority's assignee as a provision of the lease. The 
facility services and common area maintenance shall be provided at a 
rate no higher than the rate charged to non-Federal tenants of the 
transferred property. Facility services and common area maintenance 
covered by the lease shall not include--
            ``(I) municipal services that a State or local government is 
        required by law to provide to all landowners in its jurisdiction 
        without direct charge; or
            ``(II) firefighting or security-guard functions.''.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, WHITTIER-ANCHORAGE PIPELINE TANK FARM, 
                          ANCHORAGE, ALASKA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the Port of Anchorage, an entity of the Municipality of Anchorage, 
Alaska (in this section referred to as the ``Port''), all right, title, 
and interest of the United States in and to two adjoining parcels of 
real property, including any improvements thereon, consisting of 
approximately 48 acres in Anchorage, Alaska, which are known as the 
Whittier-Anchorage Pipeline Tank Farm, for the purpose of permitting the 
Port to use the parcels for economic development.
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the Port shall pay to the United States an amount, in 
cash or in-kind, equal to not less than the fair market value of the 
conveyed property, as determined by the Secretary. The Secretary may 
authorize the Port to carry out, as in-kind consideration, environmental 
remediation activities for the property to be conveyed.
    (c) Time for Conveyance.--The Secretary may delay the conveyance 
under subsection (a) until such time as the Army studies relating to the 
Alaska deployment of the Interim Brigade Combat Team in Alaska are 
completed.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Port.
    (e) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.
SEC. 2832. LEASE AUTHORITY, FORT DERUSSY, HAWAII.

    (a) Lease Authorized.--Notwithstanding section 809 of the Military 
Construction Authorization Act, 1968 (Public Law 90-

[[Page 115 STAT. 1313]]

110; 81 Stat. 309), and section 2814(b) of the Military Construction 
Authorization Act, 1989 (Public Law 100-456; 102 Stat. 2117), the 
Secretary of the Army may enter into a lease with the City and County of 
Honolulu, Hawaii, for the purpose of making available to the City and 
County a parcel of real property at Fort DeRussy, Hawaii, for the 
construction and operation of a parking facility. The size and location 
of the parcel shall be determined by the Secretary.
    (b) Terms and Conditions.--The lease under subsection (a) may be for 
such term of years, require such consideration, and contain such other 
terms and conditions as the Secretary considers appropriate to protect 
the interests of the United States.
    (c) Relationship to Other Lease Authority.--Section 2667 of title 
10, United States Code, shall not apply to the lease under subsection 
(a).
    (d) Disposition of Money Rentals.--All money rentals received 
pursuant to the lease under subsection (a) shall be--
            (1) retained by the Secretary;
            (2) credited to an appropriation account that supports the 
        operation and maintenance of Fort DeRussy; and
            (3) available for such purpose until expended.
SEC. 2833. MODIFICATION OF LAND EXCHANGE, ROCK ISLAND ARSENAL, 
                          ILLINOIS.

    (a) Additional Conveyance Authorized.--Subsection (a) of section 
2832 of the Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65; 113 Stat. 857) is amended--
            (1) by  inserting  ``(1)''  after  ``Conveyance  
        Authorized.--''; and
            (2) by adding at the end the following new paragraph:

    ``(2) The Secretary may convey to the City all right, title, and 
interest of the United States in and to an additional parcel of real 
property, including improvements thereon, at the Rock Island Arsenal 
consisting of approximately .513 acres.''.
    (b) Consideration.--Subsection (b) of such section is amended--
            (1) by inserting ``(1)'' after ``Consideration.--'';
            (2) by striking ``subsection (a)'' both places it appears 
        and inserting ``subsection (a)(1)''; and
            (3) by adding at the end the following new paragraph:

    ``(2) As consideration for the conveyance under subsection (a)(2), 
the City shall convey to the Secretary all right, title, and interest of 
the City in and to a parcel of real property consisting of approximately 
.063 acres and construct on the parcel, at the City's expense, a new 
access ramp to the Rock Island Arsenal.''.
SEC. 2834. LAND CONVEYANCE, FORT DES MOINES, IOWA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to Fort Des Moines Memorial Park, Inc., a 
nonprofit organization (in this section referred to as the ``Memorial 
Park''), all right, title, and interest of the United States in and to a 
parcel of real property, including improvements thereon, consisting of 
approximately 4.6 acres located at Fort Des Moines United States Army 
Reserve Center, Des Moines, Iowa, for the purpose of the establishment 
of the Fort Des Moines Memorial Park and Education Center.

[[Page 115 STAT. 1314]]

    (b) Condition of Conveyance.--The conveyance under subsection (a) 
shall be subject to the condition that the Memorial Park use the 
property for museum and park purposes.
    (c) Reversion.--If the Secretary determines at any time that the 
real property conveyed under subsection (a) is not being used for museum 
and park purposes, all right, title, and interest in and to the real 
property, including any improvements thereon, shall revert to the United 
States, and the United States shall have the right of immediate entry 
thereon.
    (d) Reimbursement for Costs of Conveyance.--(1) The Memorial Park 
shall reimburse the Secretary for the excess costs incurred by the 
Secretary for any environmental assessment, study, or analysis, or for 
any other excess costs incurred by the Secretary, in connection with the 
conveyance authorized by this section, if the excess costs were incurred 
as a result of a request by the Memorial Park. In this paragraph, the 
term ``excess costs'' means costs in excess of those costs considered 
reasonable and necessary by the Secretary to comply with existing law to 
make the conveyance authorized by subsection (a).
    (2) Section 2695(c) of title 10, United States Code, shall apply to 
any amount received under this subsection.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Memorial Park.
    (f) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.
SEC. 2835. MODIFICATION OF LAND CONVEYANCES, FORT DIX, NEW JERSEY.

    Section 2835(c) of the Military Construction Authorization Act for 
Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 2004) is 
amended by adding at the end the following new paragraph:
    ``(3) Notwithstanding paragraph (1) or (2), the Borough and Board 
may exchange between each other, without the consent of the Secretary, 
all or any portion of the property conveyed under subsection (a) so long 
as the property continues to be used by the grantees for economic 
development or educational purposes.''.
SEC. 2836. LAND CONVEYANCE, ENGINEER PROVING GROUND, FORT BELVOIR, 
                          VIRGINIA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the Commonwealth of Virginia (in this section referred to as the 
``Commonwealth'') all right, title, and interest of United States in and 
to two parcels of real property, including any improvements thereon, 
located at the Engineer Proving Ground, Fort Belvoir, Virginia, as 
follows:
            (1) The parcel, consisting of approximately 170 acres, that 
        is to be used for construction of a portion of the Fairfax 
        County Parkway.
            (2) The parcel, consisting of approximately 11.45 acres, 
        that is subject to an easement previously granted to the 
        Commonwealth as Army easement DACA 31-3-96-440 for the 
        construction of a portion of Interstate Highway 95.

    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the Commonwealth shall--

[[Page 115 STAT. 1315]]

            (1) design and construct, at its expense and for public 
        benefit, the portion of the Fairfax County Parkway through the 
        Engineer Proving Ground;
            (2) provide a conceptual design for eventual incorporation 
        and construction by others of access into the Engineer Proving 
        Ground at the Rolling Road Interchange from Fairfax County 
        Parkway as specified in Virginia Department of Transportation 
        Project #R000-029-249, C514;
            (3) provide such easements or rights of way for utilities 
        under or across the Fairfax County Parkway as the Secretary 
        considers appropriate for the optimum development of the 
        Engineer Proving Ground; and
            (4) pay the United States an amount, jointly determined by 
        the Secretary and the Commonwealth, appropriate to cover the 
        costs of constructing a replacement building for building 5089 
        located on the Engineer Proving Ground.

    (c) Responsibility for Environmental Cleanup.--The Secretary shall 
retain liability under the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.), and 
any other applicable environmental statute or regulation, for any 
environmental hazard on the property conveyed under subsection (a) as of 
the date of the conveyance under that subsection.
    (d) Acceptance and Disposition of Funds.--(1) The Secretary of the 
Army may accept the funds paid by the Commonwealth as consideration 
under subsection (b)(4) and shall credit the accepted funds to the 
appropriation or appropriations that are appropriate for paying the 
costs of the replacement of Building 5089, located on the Engineer 
Proving Ground, Fort Belvoir, Virginia, consistent with paragraphs (2) 
and (3) of this subsection.
    (2) Funds accepted under paragraph (1) shall be available, until 
expended, for the replacement of Building 5089.
    (3) Funds appropriated pursuant to the authorization of 
appropriations in section 301(a)(1), and funds appropriated pursuant to 
the authorization of appropriations in section 2104(a)(4), shall be 
available in accordance with section 2805 of title 10, United States 
Code, for the excess, if any, of the cost of the replacement of Building 
5089 over the amount available for such project under paragraph (2).
    (e) Description of Property.--(1) The exact acreage and legal 
description of the real property to be conveyed under subsection (a)(1) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Commonwealth.
    (2) The exact acreage and legal description of the real property to 
be conveyed under subsection (a)(2) are as set forth in Army easement 
DACA 31-3-96-440.
    (f) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.
SEC. 2837. LAND EXCHANGE AND CONSOLIDATION, FORT LEWIS, 
                          WASHINGTON.

    (a) Exchange Authorized.--(1) The Secretary of the Army may convey 
to the Nisqually Tribe, a federally recognized Indian tribe whose tribal 
lands are located within the State of Washington, all right, title, and 
interest of the United States in and to two

[[Page 115 STAT. 1316]]

parcels of real property, including any improvements thereon, consisting 
of approximately 138 acres at Fort Lewis, Washington, in exchange for 
the real property described in subsection (b).
    (2) The property authorized for conveyance under paragraph (1) does 
not include Bonneville Power Administration transmission facilities or 
the right of way described in subsection (c).
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the Nisqually Tribe shall--
            (1) acquire from Thurston County, Washington, several 
        parcels of real property consisting of approximately 416 acres 
        that are owned by the county, are located within the boundaries 
        of Fort Lewis, and are currently leased by the Army; and
            (2) convey fee title over the acquired property to the 
        Secretary.

    (c) Right-of-Way for Bonneville Power Administration.--The Secretary 
may use the authority provided in section 2668 of title 10, United 
States Code, to convey to the Bonneville Power Administration a right-
of-way that authorizes the Bonneville Power Administration to use real 
property at Fort Lewis as a route for the Grand Coulee-Olympia and 
Olympia-White River electric transmission lines and appurtenances for 
the purpose of facilitating the removal of such transmission lines from 
tribal lands of the Nisqually Tribe.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) and 
acquired under subsection (b) shall be determined by surveys 
satisfactory to the Secretary and the Nisqually Tribe. The cost of a 
survey shall be borne by the recipient of the property being surveyed.
    (e) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyances under 
this section as the Secretary considers appropriate to protect the 
interests of the United States.
SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, KEWAUNEE, 
                          WISCONSIN.

    (a) Conveyance Authorized.--The Administrator of General Services 
may convey, without consideration, to the City of Kewaunee, Wisconsin 
(in this section referred to as the ``City''), all right, title, and 
interest of the United States in and to a parcel of Federal real 
property, including improvements thereon, that is located at 401 5th 
Street in Kewaunee, Wisconsin, and contains a surplus Army Reserve 
Center. After such conveyance, the property may be used and occupied 
only by the City or by another local or State government entity approved 
by the City.
    (b) Reversionary Interest.--(1) During the 20-year period beginning 
on the date the Administrator makes the conveyance under subsection (a), 
if the Administrator determines that the conveyed property is not being 
used and occupied in accordance with such subsection, all right, title, 
and interest in and to the property, including any improvements thereon, 
shall revert to the United States.
    (2) Upon reversion, the Administrator shall immediately proceed to a 
public sale of the property. The Administrator shall deposit the net 
proceeds from the public sale in the land and water conservation fund 
established under section 2 of the Land and Water Conservation Fund Act 
of 1965 (16 U.S.C 460l-5).

[[Page 115 STAT. 1317]]

    (c) Additional Limitation on Use.--The property conveyed under 
subsection (a) shall not be used for commercial purposes.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Administrator. The 
cost of the survey shall be borne by the City.
    (e) Additional Terms and Conditions.--The Administrator may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Administrator considers appropriate to 
protect the interests of the United States.

                        PART II--NAVY CONVEYANCES

SEC. 2841. TRANSFER OF JURISDICTION, CENTERVILLE BEACH NAVAL 
                          STATION, HUMBOLDT COUNTY, CALIFORNIA.

    (a) Transfer Authorized.--The Secretary of the Navy may transfer, 
without reimbursement, to the administrative jurisdiction of the 
Secretary of the Interior the real property, including any improvements 
thereon, consisting of the closed Centerville Beach Naval Station in 
Humboldt County, California, for the purpose of permitting the Secretary 
of the Interior to manage the real property as open space or for other 
public purposes.
    (b) Legal Description.--The exact acreage and legal description of 
the real property to be transferred under this section shall be 
determined by a survey satisfactory to the Secretary of the Navy. The 
cost of the survey shall be borne by the Secretary of the Interior.
    (c) Additional Terms and Conditions.--The Secretary of the Navy may 
require such additional terms and conditions in connection with the 
transfer under subsection (a) as the Secretary of the Navy considers 
appropriate to protect the interests of the United States.
SEC. 2842. LAND CONVEYANCE, PORT OF LONG BEACH, CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
the City of Long Beach, California, acting by and through its Board of 
Harbor Commissioners (in this section referred to as the ``City''), all 
right, title, and interest of the United States in and to up to 11.08 
acres of real property, including any improvements thereon, comprising a 
portion of the Navy Mole at the former Long Beach Naval Complex, Long 
Beach, California, for the purpose of permitting the City to use the 
property to support the reuse of other former Navy property conveyed to 
the City.
    (b) Consideration.--(1) Subject to paragraph (2), as consideration 
for the conveyance under subsection (a), the City shall--
            (A) convey to the Secretary all right, title, and interest 
        of the City in and to a parcel of real property of equal size on 
        the Mole that is acceptable to the Secretary; and
            (B) construct on the property conveyed under subparagraph 
        (A) suitable replacement fuel transfer and storage facilities 
        for the Navy, similar or equivalent to the facilities on the 
        property to be conveyed under subsection (a), as determined 
        necessary by the Secretary.

    (2) If the Secretary determines that replacement fuel transfer and 
storage facilities are not required by the Navy, the Secretary may make 
the conveyance under subsection (a) at no cost to the City.

[[Page 115 STAT. 1318]]

    (c) Time for Conveyance.--Unless the Secretary makes the 
determination referred to in subsection (b)(2), the conveyance to the 
City authorized by subsection (a) shall be made only after the Secretary 
determines that the replacement fuel transfer and storage facilities 
have been constructed and are ready for use.
    (d) Construction Schedule.--The City shall construct the replacement 
fuel transfer and storage facilities pursuant to such schedule and in 
such a manner so as to not interrupt or otherwise adversely affect the 
capability of the Navy to accomplish its mission.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsections (a) 
and (b) shall be determined by surveys satisfactory to the Secretary. 
The City shall be responsible for conducting the surveys.
    (f) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyances under 
this section as the Secretary considers appropriate to protect the 
interests of the United States.
SEC. 2843. CONVEYANCE OF PIER, NAVAL BASE, SAN DIEGO, CALIFORNIA.

    (a) Conveyance Authorized.--(1) The Secretary of the Navy may 
convey, without consideration, to the San Diego Aircraft Carrier Museum 
or its designee (in this section referred to as the ``Museum'') all 
right, title, and interest of the United States in and to the property 
known as Pier 11A at Naval Base, San Diego, California, together with 
associated structures and interests in the land underlying the pier, if 
any, for the purpose of permitting the Museum to use the property to 
berth a vessel and operate a museum for the general public.
    (2) The Secretary may not make the conveyance until such time as the 
Museum certifies that the Museum has acquired an interest in property 
from the State of California or a political subdivision of the State to 
facilitate the use of the conveyed pier to berth a vessel and operate a 
museum for the general public.
    (b) Assumption of Liability.--The Museum shall expressly accept any 
and all liability pertaining to the physical condition of the property 
conveyed under subsection (a) and shall hold the United States harmless 
from any and all liability arising from the property's physical 
condition.
    (c) Reimbursement for Costs of Conveyance.--(1) The Museum shall 
reimburse the Secretary for the excess costs incurred by the Secretary 
for any environmental assessment, study, or analysis, or for any other 
excess costs incurred by the Secretary, in connection with the 
conveyance authorized by this section, if the excess costs were incurred 
as a result of a request by the Museum. In this paragraph, the term 
``excess costs'' means costs in excess of those costs considered 
reasonable and necessary by the Secretary to comply with existing law to 
make the conveyance authorized by subsection (a).
    (2) Section 2695(c) of title 10, United States Code, shall apply to 
any amount received by the Secretary under this subsection.
    (d) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) shall be 
determined by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the Museum.
    (e) Additional Terms and Conditions.--The Secretary may require such 
additional terms and conditions in connection with

[[Page 115 STAT. 1319]]

the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.
SEC. 2844. MODIFICATION OF AUTHORITY FOR CONVEYA