[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2586 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2586

     To authorize appropriations for fiscal year 2002 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2002, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2001

 Mr. Stump (for himself and Mr. Skelton) (both by request) introduced 
   the following bill; which was referred to the Committee on Armed 
                                Services

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 2002 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2002, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 2002''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                          TITLE I--PROCUREMENT

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. Defense health program.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Sec. 201. Authorization of appropriations.
                  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. Contract authority for Defense Working Capital Funds.
                  Subtitle B--Environmental Provisions

Sec. 310. Reimburse EPA for certain costs in connection with Hooper 
                            Sands site, in South Berwick, Maine.
Sec. 311. Elimination of report on contractor reimbursement costs.
  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 315. Costs payable to the Department of Defense and other Federal 
                            agencies for services provided to the 
                            Defense Commissary Agency.
Sec. 316. Reimbursement for non-commissary use of commissary 
                            facilities.
Sec. 317. Commissary contracts and other agencies and 
                            instrumentalities.
Sec. 318. Operation of commissary stores.
                       Subtitle D--Other Matters

Sec. 320. Reimbursement, for reserve intelligence support.
Sec. 321. Disposal of obsolete and excess materials contained in the 
                            national defense stockpile.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End Strengths for active forces.
                       Subtitle B--Reserve Forces

Sec. 405. End strengths for selected reserve.
Sec. 406. End strengths for reserves on active duty in support of the 
                            reserves.
Sec. 407. End strengths for military technicians (dual status).
Sec. 408. Fiscal year 2002 limitation on number of non-dual status 
                            technicians.
Sec. 409. Authorized strengths: reserve officers and senior enlisted 
                            members on active duty or full-time 
                            National Guard duty for administration of 
                            the reserves or National Guard.
Sec. 410. Increase in authorized strengths for Air Force officers on 
                            active duty in the grade of major.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Elimination of certain medical and dental requirements for 
                            Army early-deployers.
Sec. 502. Medical deferment of mandatory retirement or separation.
Sec. 503. Officer in charge; United States Navy Band.
Sec. 504. Removal of requirement for certification for certain flag 
                            officers to retire in their highest grade.
             Subtitle B--Reserve Component Personnel Policy

See. 511. Retirement of reserve personnel.
Sec. 512. Amendment to reserve PERSTEMPO definition.
See. 513. Individual ready reserve physical examination requirement.
Sec. 514. Funeral honors duty performed by members of the National 
                            Guard.
Sec. 515. Strength and grade ceiling accounting for reserve component 
                            members on active duty in support of a 
                            contingency operation.
Sec. 516. Reserve health professionals stipend program expansion.
Sec. 517. Reserve officers on active duty for a period of three years 
                            or less.
Sec. 518. Active duty end strength exemption for National Guard and 
                            reserve personnel performing funeral honors 
                            functions.
See. 519. Clarification of functions that may be assigned to active 
                            guard and reserve personnel on full-time 
                            National Guard duty.
See. 520. Authority for temporary waiver of the requirement for a 
                            baccalaureate degree for promotion of 
                            certain reserve officers of the Army.
Sec. 521. Authority of the President to suspend certain laws relating 
                            to promotion, retirement and separation; 
                            duties.
                   Subtitle C--Education and Training

Sec. 531. Authority for the Marine Corps University to award the degree 
                            of master of strategic studies.
Sec. 532. Reserve component distributed learning.
Sec. 533. Repeal of limitation on number of junior reserve officers' 
                            training corps (JROTC) units.
Sec. 534. Modification of the Nurse Officer Candidate Accession Program 
                            restriction on students attending civilian 
                            educational institutions with Senior 
                            Reserve Officers' Training Programs.
Sec. 535. Defense Language Institute Foreign Language Center.
           Subtitle D--Decorations, Awards, and Commendations

Sec. 541. Authority for award of the Medal of Honor to Humbert R. 
                            Versace for valor during the Vietnam War.
Sec. 542. Issuance of duplicate Medal of Honor.
Sec. 543. Repeal of limitation on award of Bronze Star to members in 
                            receipt of special pay.
              Subtitle E--Uniform Code of Military Justice

Sec. 551. Revision of punitive UCMJ article regarding drunken operation 
                            of vehicle, aircraft, or vessel.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2002.
Sec. 602. Partial dislocation allowance authorized under certain 
                            circumstances.
Sec. 603. Funeral honors duty allowance for retirees.
Sec. 604. Basic pay rate for certain reserve commissioned officers with 
                            prior service as an enlisted member or 
                            warrant officer.
Sec. 605. Family separation allowance.
Sec. 606. Housing Allowance for the Chaplain for the Corps of Cadets, 
                            United States Military Academy.
Sec. 607. Clarifying amendment that space-required travel for annual 
                            training reserve duty does not obviate 
                            transportation allowances.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Authorize the Secretary of the Navy to prescribe submarine 
                            duty incentive pay rates.
Sec. 612. Extension of authorities relating to payment of other bonuses 
                            and special pays.
Sec. 613. Extension of certain bonuses and special pay authorities for 
                            nurse officer candidates, registered 
                            nurses, nurse anesthetists, and dental 
                            officers.
Sec. 614. Extension of authorities relating to nuclear officer special 
                            pays.
See. 615. Extension of special and incentive pays.
Sec. 616. Accession bonus for officers in critical skills.
Sec. 617. Critical wartime skill requirement for eligibility for the 
                            individual ready reserve bonus.
Sec. 618. Hazardous duty incentive pay: maritime board and search.
            Subtitle C--Travel and Transportation Allowances

Sec. 621. Funded student travel: exchange programs.
Sec. 622. Payment of vehicle storage costs in advance.
Sec. 623. Travel and transportation allowances for family members to 
                            attend the burial of a deceased member of 
                            the Armed Forces.
Sec. 624. Shipment of privately owned vehicles when executing CONUS 
                            permanent change of station moves.
                           Subtitle D--Other

See. 631. Montgomery G I Bill--selected reserve eligibility period.
Sec. 632. Improved disability benefits for certain reserve component 
                            members.
Sec. 633. Acceptance of scholarships by officers participating in the 
                            funded legal education program.
        TITLE VII--ACQUISITION POLICY AND ACQUISITION MANAGEMENT

                     Subtitle A--Acquisition Policy

Sec. 701. Acquisition milestone changes.
Sec. 702. Clarification of inapplicability of the requirement for core 
                            logistics capabilities standards to the 
                            nuclear refueling of an aircraft carrier.
Sec. 703. Depot maintenance utilization waiver.
                   Subtitle B--Acquisition Workforce

See. 705. Tenure requirement for critical acquisition positions.
       Subtitle C--General Contracting Procedures and Limitations

Sec. 710. Amendment of law applicable to contracts for architectural 
                            and engineering services and construction 
                            design.
Sec. 711. Streamlining procedures for the purchase of certain goods.
Sec. 712. Repeal of the requirement for the limitations on the use of 
                            Air Force civil engineering supply function 
                            contracts.
Sec. 713. Modification of limitation on retirement or dismantlement of 
                            strategic nuclear delivery systems.
          Subtitle D--Military Construction General Provisions

Sec. 715. Exclusion of unforeseen environmental hazard remediation from 
                            the limitation on cost increases for 
                            military construction and family housing 
                            construction projects.
Sec. 716. Increase of overseas minor construction threshold using 
                            operations and maintenance funds.
Sec. 717. Leasebacks of base closure property.
Sec. 718. Alternative authority for acquisition and improvement of 
                            military housing.
Sec. 719. Annual report to congress on design and construction.
      TITLE VIII--DEPARTMENT OF DEFENSE ORGANIZATION AND POSITIONS

     Subtitle A--Department of Defense Organizations and Positions

Sec. 801. Organizational alignment change for director for 
                            expeditionary warfare.
Sec. 802. Change of name for Air Mobility Command.
See. 803. Transfer of intelligence positions in support of the National 
                            Imagery and Mapping Agency.
                          Subtitle B--Reports

Sec. 811. Amendment to National Guard and reserve component equipment: 
                            annual report to Congress.
Sec. 812. Elimination of triennial report on the roles and missions of 
                            the Armed Forces.
Sec. 813. Change in due date of commercial activities report.
                       Subtitle C--Other Matters

Sec. 821. Documents, historical artifacts, and obsolete or surplus 
                            materiel: loan, donation, or exchange.
See. 822. Charter air transportation of members of the Armed Forces.
                      TITLE IX--GENERAL PROVISIONS

             Subtitle A--Matters Relating to Other Nations

Sec. 901. Recognition of assistance from foreign nationals.
          Subtitle B--Department of Defense Civilian Personnel

Sec. 911. Authority for designated civilian employees abroad to act as 
                            a notary.
Sec. 912. Inapplicability of requirement for studies and reports when 
                            all directly affected Department of Defense 
                            civilian employees are reassigned to 
                            comparable federal positions.
Sec. 913. Pilot program for payment of retraining expenses.
                       Subtitle C--Other Matters

Sec. 921. Authority to ensure demilitarization of significant military 
                            equipment formerly owned by the Department 
                            of Defense.
Sec. 922. Department of Defense gift initiatives.
Sec. 923. Repeal of the joint requirements oversight council semi-
                            annual report.

                          TITLE I--PROCUREMENT

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for procurement for the Army as follows:
            (1) For aircraft, $1,925,491,000.
            (2) For missiles, $1,859,634,000.
            (3) For weapons and tracked combat vehicles, 
        $2,276,746,000.
            (4) For ammunition, $1,193,365,000.
            (5) For other procurement, $3,961,737,000.
            (6) For chemical agents and munitions destruction, 
        $1,153,557,000 for--
                    (A) the destruction of lethal chemical weapons in 
                accordance with section 1412 of the Department of 
                Defense Authorization Act, 1986 (50 U.S.C. 1521) and
                    (B) the destruction of chemical warfare material of 
                the United States that is not covered by section 1412 
                of such Act.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds axe hereby authorized to be appropriated for 
fiscal year 2002 for procurement for the Navy as follows:
            (1) For aircraft, $8,252,543,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,433,475,000.
            (3) For shipbuilding and conversion, $9,344,121,000.
            (4) For other procurement, $4,097,576,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2002 for procurement for the Marine Corps in the amount 
of $981,724,000.
    (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 Marine Corps in the amount of $457,099,000.

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, $10,744,458,000.
            (2) For missiles, $3,233,536,000.
            (3) For procurement of ammunition, $865,344,000.
            (4) For other procurement, $8,158,521,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for defense-wide procurement in the amount of $1,603,927,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for procurement for the Defense Inspector General in the amount of 
$1,800,000.

SEC. 106. 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.

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

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for the use of the Armed Forces for research, development, test, and 
evaluation, as follows:
            (1) For the Army, $6,693,920,000.
            (2) For the Navy, $11,123,389,000.
            (3) For the Air Force, $14,343,982,000.
            (4) For Defense-wide research, development, test, and 
        evaluation, $15,268,142,000, of which $217,355,000 is 
        authorized for the Director of Operational Test and Evaluation.
            (5) For the Defense Health Program, $65,304,000.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for the use of the Armed Forces of the United States 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, $21,191,680,000.
            (2) For the Navy, $26,961,382,000.
            (3) For the Marine Corps, $2,892,314,000.
            (4) For the Air Force, $26,146,770,000.
            (5) For the Defense-wide activities, $12,518,631,000.
            (6) For the Army Reserve, $1,787,246,000.
            (7) For the Naval Reserve, $1,003,690,000.
            (8) For the Marine Corps Reserve, $144,023,000.
            (9) For the Air Force Reserve, $2,029,866,000.
            (10) For the Army National Guard, $3,677,359,000.
            (11) For the Air National Guard, $3,867,361,000.
            (12) For the Defense Inspector General, $150,221,000.
            (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, $190,255,000.
            (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, $25,000,000.
            (22) For the Defense Health Program, $17,565,750,000.
            (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.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for the use of the Armed Forces of the United States 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, $1,951,986,000.
            (2) For the National Defense Sealift Fund, $506,408,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    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, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

SEC. 304. CONTRACT AUTHORITY FOR DEFENSE WORKING CAPITAL FUNDS.

    Contract authority in the amount of $427, 100,000, to remain 
available until September 30, 2002, is hereby authorized and 
appropriated to the Defense Working Capital Fund for the procurement, 
lease-purchase with substantial private sector risk, capital or 
operating multiple-year lease, of a capital asset, multiple-year time 
charter of a commercial craft or vessel and associated services.

                  Subtitle B--Environmental Provisions

SEC. 310. REIMBURSE EPA FOR CERTAIN COSTS IN CONNECTION WITH HOOPER 
              SANDS SITE, IN SOUTH BERWICK, MAINE.

    (a) Authority To Reimburse EPA.--Using funds described in 
subsection (b), the Secretary of the Navy may pay $1,005,478.00 to the 
Hooper Sands Special Account within the Hazardous Substance Superfund 
established by section 9507 of the Internal Revenue Code of 1986 (26 
U.S.C. 9507) to reimburse the Environmental Protection Agency in full 
for the Remaining Past Response Costs incurred by the agency for 
actions taken 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, pursuant to an Interagency 
Agreement entered into by the Department of the Navy and the 
Environmental Protection Agency in January 2001.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using the amounts authorized to be appropriated by paragraph (15) 
of section 301 to the Environmental Restoration, Navy account, 
established by section 2703(a)(3) of title 10, United States Code.

SEC. 311. ELIMINATION OF REPORT ON CONTRACTOR REIMBURSEMENT COSTS.

    Section 2706 of title 10, United States Code, is amended by 
striking subsection (c) and redesignating subsections (d) and (e) as 
subsections (c) and (d), respectively.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 315. COSTS PAYABLE TO THE DEPARTMENT OF DEFENSE AND OTHER FEDERAL 
              AGENCIES FOR SERVICES PROVIDED TO THE DEFENSE COMMISSARY 
              AGENCY.

    Section 2482(b)(1) of title 10, United States Code, is amended by 
striking ``However, the Defense Commissary Agency may not pay for any 
such service provided by the United States Transportation Command any 
amount that exceeds the price at which the service could be procured 
through full and open competition, as such term is defined in section 
4(6) of the Office of Federal Procurement Policy Act (41 U.S.C. 
403(6)).'' and inserting ``The Defense Commissary Agency may not pay 
for any service provided by a Defense working capital fund activity 
which exceeds the price at which the service could be procured through 
full and open competition by the Defense Commissary Agency, as such 
term is defined in section 4(6) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(6)). In determining the cost for providing 
such service the Defense Commissary Agency may pay a Defense working 
capital fund activity those administrative and handling costs it would 
be required to pay for the provision of such services had the Defense 
Commissary Agency acquired them under full and open competition. Under 
no circumstances will any costs associated with mobilization 
requirements, maintenance of readiness, or establishment or maintenance 
of infrastructure to support such mobilization or readiness 
requirements, be included in rates charged the Defense Commissary 
Agency.''.

SEC. 316. REIMBURSEMENT FOR NON-COMMISSARY USE OF COMMISSARY 
              FACILITIES.

    (a) In General.--Chapter 147 of title 10, United States Code, is 
amended by inserting at the beginning of the chapter the following new 
section:
``Sec. 2481. Reimbursement for non-commissary use of commissary 
              facilities
    ``If a commissary facility acquired, constructed or improved (in 
whole or in part) with commissary surcharge revenues is used for non-
commissary purposes, the Secretary of the military department concerned 
shall reimburse the commissary surcharge revenues for the commissary's 
share of the depreciated value of the facility.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter 147 is amended by inserting before the item relating to 
section 2482 the following new item:

``2481. Reimbursement for non-commissary use of commissary 
                            facilities.''.

SEC. 317. COMMISSARY CONTRACTS AND OTHER AGENCIES AND 
              INSTRUMENTALITIES.

    Section 2482(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):
            ``(2) Where the Secretary of Defense authorizes the Defense 
        Commissary Agency to sell limited exchange merchandise as 
        commissary store inventory under section 2486(b)(11) of this 
        title, the Defense Commissary Agency shall enter into a 
        contract or other agreement to obtain such merchandise 
        available from the Armed Service Exchanges, provided that such 
        merchandise shall be obtained at a cost of no more than the 
        exchange retail price less the amount of commissary surcharge 
        authorized to be collected by section 2486 of this title. If 
        such merchandise is procured by the Defense Commissary Agency 
        from other than the Armed Service Exchanges, the limitations 
        provided in section 2486(e) of this title apply.''.

SEC. 318. OPERATION OF COMMISSARY STORES.

    Section 2482(a) of title 10, United States Code, is amended by 
striking ``A contract with a private person'' and all that remains to 
the end of the subsection.

                       Subtitle D--Other Matters

SEC. 320. REIMBURSEMENT FOR RESERVE INTELLIGENCE SUPPORT.

    (a) Appropriations available to the Department of Defense for 
operations and maintenance may be used to reimburse National Guard and 
Reserve units or organizations for the pay, allowances and other 
expenses which are incurred by such National Guard and Reserve units or 
organizations when members of the National Guard or Reserve provide 
intelligence, including counterintelligence, support to Combatant 
Commands, Defense Agencies and Joint Intelligence Activities, including 
the activities and programs included within the National Foreign 
Intelligence Program, the Joint Military Intelligence Program, and the 
Tactical Intelligence and Related Activities aggregate.
    (b) Nothing in this section authorizes deviation from established 
Reserve and National Guard personnel and training procedures.

SEC. 321. DISPOSAL OF OBSOLETE AND EXCESS MATERIALS CONTAINED IN THE 
              NATIONAL DEFENSE STOCKPILE.

    Subject to the conditions specified in section 10(c) of the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h-1(c)), 
the President may dispose of the following obsolete and excess 
materials contained in the National Defense Stockpile in the following 
quantities:
            Bauxite, Refractory, 40,000 short tons.
            Chromium Metal, 3,512 short tons.
            Iridium, 25,140 troy ounces.
            Jewel Bearings, 30,273,221 pieces.
            Manganese, Ferro HC, 209,074 short tons.
            Palladium, 11 troy ounces.
            Quartz Crystal, 216,648 pounds.
            Tantalum Metal Ingot, 120,228 pounds contained tantalum.
            Tantalum Metal Powder, 36,020 pounds contained tantalum.
            Thorium Nitrate, 600,000 pounds.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 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.

                       Subtitle B--Reserve Forces

SEC. 405. 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.
    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 increased proportionately by the total authorized strengths of 
such units and by the total number of such individual members.

SEC. 406. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
              RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2002, the following number of Reserves to be serving on full-time 
active duty or, in the case of members of the National Guard, full-time 
National Guard duty for the purpose of organizing, administering, 
recruiting, instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 22,974.
            (2) The Army Reserve, 13,108.
            (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. 407. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    The Reserve Components of the Army and the Air Force are authorized 
strengths for military technicians (dual status) as of September 30, 
2002, as follows:
            (1) For the Army Reserve, 5,999.
            (2) For the Army National Guard of the United States, 
        23,128.
            (3) For the Air Force Reserve, 9,818.
            (4) For the Air National Guard of the United States, 
        22,422.

SEC. 408. FISCAL YEAR 2002 LIMITATION ON NUMBER OF NON-DUAL STATUS 
              TECHNICIANS.

    The number of civilian employees who are non-dual status 
technicians of a reserve component of the Army or 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, 0.
            (4) For the Air National Guard of the United States, 350.

SEC. 409. AUTHORIZED STRENGTHS: RESERVE OFFICERS AND SENIOR ENLISTED 
              MEMBERS ON ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY 
              FOR ADMINISTRATION OF THE RESERVES OR NATIONAL GUARD.

    (a) In General.--Section 12011 of title 10, United States Code, is 
amended by amending the body of the section to read as follows:
    ``(a) Ceilings for Full-Time Reserve Component Field Grade 
Officers.--The number of reserve officers of the reserve components of 
the Army, Navy, Air Force, and Marine Corps who may be on active duty 
in the pay grades of O-4, O-5, O-6 for duty described in sections 
10211, 10302 through 10305, 123 10, or 12402 of this title, or full-
time National Guard duty (other than for training) under section 502(f) 
of title 32, or section 708 of title 32, may not, at the end of any 
fiscal year, exceed a number for that grade and reserve component in 
accordance with the following tables:

                          ``Army National Guard
------------------------------------------------------------------------
  AGR Population        O-4 (MAJ)         O-5 (LTC)         O-6 (COL)
------------------------------------------------------------------------
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
------------------------------------------------------------------------


                           ``U.S. Army Reserve
------------------------------------------------------------------------
  AGR Population        O-4 (MAJ)         O-5 (LTC)         O-6 (COL)
------------------------------------------------------------------------
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
------------------------------------------------------------------------


                          ``U.S. Naval Reserve
------------------------------------------------------------------------
  AGR Population        O-4 (MAJ)         O-5 (LTC)         O-6 (COL)
------------------------------------------------------------------------
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
22,000              1,384             610               258
23,000              1,400             615               265
24,000              1,410             620               270
------------------------------------------------------------------------


                       ``U.S. Marine Corps Reserve
------------------------------------------------------------------------
  AGR Population        O-4 (MAJ)         O-5 (LTC)         O-6 (COL)
------------------------------------------------------------------------
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 National Guard
------------------------------------------------------------------------
  AGR Population        O-4 (MAJ)         O-5 (LTC)         O-6 (COL)
------------------------------------------------------------------------
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
------------------------------------------------------------------------


                        ``U.S. Air Force Reserve
------------------------------------------------------------------------
  AGR Population        O-4 (MAJ)         O-5 (LTC)         O-6 (COL)
------------------------------------------------------------------------
500                 83                85                50
1,000               155               165               95
1,500               220               240               135
2,000               285               310               170
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
------------------------------------------------------------------------

    ``(b) Grade Substitutions for Lower Grade Ceilings.--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.
    ``(c) Determination of Authorized Ceilings.--If the total number of 
members serving in the grades prescribed in the above tables is between 
any two consecutive numbers in the first column of the appropriate 
table, 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 numbers of members serving on AGR duty in the first column 
are greater or less than the figures listed in the first column of the 
appropriate table, the Secretary concerned shall fix the corresponding 
strengths for the grades shown in that table at the same proportion as 
reflected in the nearest limit shown in the table.
    ``(d) Secretarial Waiver.--Upon determination by the Secretary of 
Defense that such action is in the national interest, the Secretary may 
increase the number of reserve officers that may be on active duty or 
full-time National Guard duty in a controlled grade authorized pursuant 
to subsection (a) for the current fiscal year for any of the Reserve 
components by a number equal to not more than 5 percent of the 
authorized strength in that controlled grade.''.
    (b) In General.--Section 12012 of title 10, United States Code, is 
amended by amending the body of the section to read as follows:
     ``(a) Ceilings for Full-Time Reserve Component Senior Enlisted 
Members.--The number of enlisted members in pay grades of E-8 and E-9 
for who may be 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 for training) in connection with organizing, 
administering, recruiting, instructing, or training the reserve 
components or the National Guard may not, at the end of any fiscal 
year, exceed a number determined in accordance with the following 
tables:

                          ``Army National Guard
------------------------------------------------------------------------
     AGR Population              E-8 (MSG)               E-9 (SGM)
------------------------------------------------------------------------
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
------------------------------------------------------------------------


                           ``U.S. Army Reserve
------------------------------------------------------------------------
     AGR Population              E-8 (MSG)               E-9 (SGM)
------------------------------------------------------------------------
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
------------------------------------------------------------------------


                          ``U.S. Naval Reserve
------------------------------------------------------------------------
     AGR Population             E-8 (SCPO)              E-9 (MCPO)
------------------------------------------------------------------------
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
------------------------------------------------------------------------


                       ``U.S. Marine Corps Reserve
------------------------------------------------------------------------
     AGR Population            E-8 (IST SGT)           E-9 (SGTMAJ)
------------------------------------------------------------------------
1,100                     50                      11
1,200                     55                      12
1,300                     60                      13
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 National Guard
------------------------------------------------------------------------
     AGR Population             E-8 (SMSGT)             E-9 (CMSGT)
------------------------------------------------------------------------
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
------------------------------------------------------------------------


                        ``U.S. Air Force Reserve
------------------------------------------------------------------------
     AGR Population             E-8 (SMSGT)             F-9 (CMSGT)
------------------------------------------------------------------------
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
------------------------------------------------------------------------

    ``(b) Grade Substitution for Lower Grade Ceilings.--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.
    ``(c) Determination of Authorized Ceilings.--If the total number of 
members serving in the grades prescribed in the above tables is 
between, any two consecutive

numbers in the first column of the appropriate table, 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 numbers of 
members serving on AGR duty in the first column are greater or less 
than the figures listed in the first column of the appropriate table, 
the Secretary concerned shall fix the corresponding strengths for the 
grades shown in that table at the same proportion as reflected in the 
nearest limit shown in the table.
    ``(d) Secretarial Waiver.--Upon determination by the Secretary of 
Defense that such action is in the national interest, the Secretary may 
increase the number of senior reserve enlisted members that may be on 
active duty or full-time National Guard duty in a controlled grade 
authorized pursuant to subsection (a) for the current fiscal year for 
any of the Reserve components by a number equal to not more than 5 
percent of the authorized strength in that controlled grade.''.

SEC. 410. INCREASE IN AUTHORIZED STRENGTHS FOR AIR FORCE OFFICERS ON 
              ACTIVE DUTY IN THE GRADE OF MAJOR.

    The table in section 523(a)(1) of title 10, United States Code, is 
amended by striking the figures under the

heading ``Major'' relating to the Air Force and inserting the 
following:

            ``9,861
            ``10,727
            ``11,593
            ``12,460
            ``13,326
            ``14,192
            ``15,058
            ``15,925
            ``16,792
            ``17,657
            ``18,524
            ``19,389
            ``20,256
            ``21,123
            ``21,989
            ``22,855
            ``23,721
            ``24,588
            ``25,454.''.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. ELIMINATION OF CERTAIN MEDICAL AND DENTAL REQUIREMENTS FOR 
              ARMY EARLY-DEPLOYERS.

    Section 1074a of title 10, United States Code, is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsection (e) as subsection (d).

SEC. 502. MEDICAL DEFERMENT OF MANDATORY RETIREMENT OR SEPARATION.

    Section 640 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' at the beginning of the paragraph;
            (2) by striking ``cannot'' and inserting ``may not''; and
            (3) by adding at the end the following new subparagraph 
        (b):
    ``(b) An officer whose mandatory retirement or separation under 
this chapter or chapter 63 of this title is subject to deferral under 
this section, may be extended for a period not to exceed 30 days 
following completion of the evaluation requiring hospitalization or 
medical observation.''.

SEC. 503. OFFICER IN CHARGE; UNITED STATES NAVY BAND.

    (a) Detail and Grade.--Chapter 565 of title 10, United States Code, 
is amended by inserting after section 6221 the following new section:
``Sec. 6221a. United States Navy Band: officer in charge
    ``An officer serving in a grade not below lieutenant commander may 
be detailed as Officer in Charge of the United States Navy Band. While 
so serving, an officer who holds a grade lower than captain shall hold 
the grade of captain if he is appointed to that grade by the President, 
by and with the advice and consent of the Senate. Such appointment may 
occur notwithstanding the limitation of subsection 5596(d) of this 
title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter 565 is amended by inserting after the item referring to 
section 6221 the following new item:

``6221a. United States Navy Band: officer in charge.''.

SEC. 504. REMOVAL OF REQUIREMENT FOR CERTIFICATION FOR CERTAIN FLAG 
              OFFICERS TO RETIRE IN THEIR HIGHEST GRADE.

    Section 1370(c)(1) of title 10, United States Code, is amended--
            (1) by striking ``certifies in writing to the President and 
        Congress'' and inserting ``determines in writing''; and
            (2) by adding at the end of the paragraph the following new 
        sentence: ``The Secretary of Defense shall issue regulations to 
        implement this paragraph.''.

             Subtitle B--Reserve Component Personnel Policy

SEC. 511. RETIREMENT OF RESERVE PERSONNEL.

    (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) Section 
14513 of such title 10 is amended--
            (A) in the heading, by inserting ``or retirement'' after 
        ``Separation''; and
            (B) in paragraph (2), by striking ``and applies'' and 
        inserting ``unless the officer requests not to be transferred 
        to the Retired Reserve'' before the semicolon.
    (2) The table of sections at the beginning of chapter 1407 of such 
title 10 is amended by striking the item relating to section 14513 and 
inserting the following new item:

``14513. Separation or retirement for failure of selection for 
                            promotion.''.
    (c) Retirement for Years of Service or After Selection for Early 
Removal.--Section 14514 of such title 10 is amended--
            (1) in paragraph (1), by striking ``and applies'' and 
        inserting `` unless the officer requests not to be transferred 
        to the Retired Reserve'' before the semicolon; and
            (2) in paragraph (2), by striking ``does not apply for such 
        transfer'' and inserting ``has requested not to be transferred 
        to the Retired Reserve'' after ``is not qualified or''.
    (d) Retirement for Age.--Section 14515 of such title 10 is 
amended--
            (1) in paragraph (1), by striking ``and applies'' and 
        inserting ``unless the officer requests not to be transferred 
        to the Retired Reserve'' before the semicolon; and
            (2) in paragraph (2), by striking ``does not apply for 
        transfer'' and inserting ``has requested not to be 
        transferred'' following ``is riot qualified or''.
    (e) Discharge or Retirement of Warrant Officers for Years of 
Service or Age.--(1) Chapter 1207 of such title 10 is amended by adding 
at the end the following new section:
``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 so qualified for such transfer, unless the warrant 
        officer requests not to be transferred to the Retired Reserve; 
        or
            ``(2) if the warrant officer is not qualified for such 
        transfer or requests not to be 42 transferred to the Retired 
        Reserve, be discharged.''.
    (2) The table of sections at the beginning of such chapter 1207 of 
title 10 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 10 is amended by 
adding, at the end the following new section:
``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 so qualified for such transfer, unless the member requests 
        not to be transferred to the Retired Reserve; or
            ``(2) if the member is not qualified for such transfer or 
        requests not to be transferred to the Retired Reserve, be 
        discharged.''.
    (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.''.

SEC. 512. AMENDMENT TO RESERVE PERSTEMPO DEFINITION.

    Section 991(b) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting ``active'' before 
        ``service'' and adding at the end the following new sentence: 
        ``For the purpose of this definition, the housing in which a 
        member of a reserve component resides is either the housing the 
        member normally occupies when on garrison duty or the member's 
        permanent civilian residence.'';
            (2) by striking paragraph (2);
            (3) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3) respectively; and
            (4) in paragraph (3) (as redesignated), by striking ``in 
        paragraphs (1) and (2).'' and inserting ``in paragraph (1).''.

SEC. 513. INDIVIDUAL READY RESERVE PHYSICAL EXAMINATION REQUIREMENT.

    Section 10206 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``Ready Reserve'' and 
        inserting ``Selected Reserve'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection:
    ``(b) As determined by the Secretary concerned, each member of the 
Individual Ready Reserve or Inactive National Guard shall be provided a 
physical examination, if required--
            ``(1) to determine the member's fitness for military duty; 
        or
            ``(2) for promotion, attendance at a military school or 
        other career progression requirements.''.

SEC. 514. FUNERAL HONORS DUTY PERFORMED BY MEMBERS OF THE NATIONAL 
              GUARD.

    Section 1491 (b) of title 10, United States Code, is amended by 
inserting after paragraph (2) the following new paragraph:
    ``(3) A member of the Army National Guard of the United States or 
Air National Guard of the United States who serves as a member of a 
funeral honors detail while serving in a duty status authorized under 
state law shall be considered to be a member of the armed forces for 
the purpose of fulfilling the two member funeral honors detail 
requirement in paragraph (2).''.

SEC. 515. STRENGTH AND GRADE CEILING ACCOUNTING FOR RESERVE COMPONENT 
              MEMBERS ON ACTIVE DUTY IN SUPPORT OF A CONTINGENCY 
              OPERATION.

    (a) Active Duty Strength Accounting--Section 11 5(c) of title 10, 
United States Code is amended--
            (1) in subparagraph (1), by striking ``and'' at the end of 
        the subparagraph;
            (2) in subparagraph (2), by striking the period and adding 
        ``; and'' at the end of the subparagraph; and
            (3) by adding the following new subparagraph:
            ``(3) increase the end strength authorized pursuant to 
        subsection (a)(1)(A) for a fiscal year for any of the armed 
        forces by a number equal to the number of members of the 
        reserve components on active duty under section 12301(d) of 
        this title in support of a contingency operation as defined in 
        section 101(a)(13) of this title.''.
    (b) Increase in Authorized Daily Average for Members in Pay Grades 
E-8 and E-9 on Active Duty Under Certain Circumstances.--Section 517 of 
such title 10 is amended at the end by adding the following new 
paragraph:
    ``(d) The Secretary of Defense may increase the authorized daily 
average number of enlisted members on active duty in an armed force in 
pay grades E-8 and E-9 in a fiscal year pursuant to subsection (a) by 
the number of enlisted members of a reserve component in that armed 
force in the pay grades of E-8 and E-9 on active duty under section 
12301(d) of this title in support of a contingency operation as defined 
in section 101(a)(13) of this title,''.
    (c) Increase in Authorized Strengths for Commissioned Officers in 
Pay Grades O-4, O-5 and O-6 on Active Duty Under Certain 
Circumstances.--Section 523 of such title 10 is amended--
            (1) in paragraphs (a)(1) and (a)(2), by striking 
        ``subsection (c)'' and inserting ``subsections (c) and (e)''; 
        and
            (2) by adding at the end the following new subsection:
    ``(e) The Secretary of Defense may increase the authorized total 
number of commissioned officers serving on active duty at the end of 
any fiscal year pursuant to subsection (a) by the number of 
commissioned officers of a reserve component of the Army, Navy, Air 
Force, or Marine Corps on active duty under section 12301(d) of this 
title in support of a contingency operation as defined in section 
101(a)(13) of this title.''.
    (d) Increase, in Authorized Strengths for General and Flag Officers 
on Active Duty Under Certain Circumstances.--Section 526(a) of such 
title 10 is amended by--
            (1) striking ``the'' the first time it appears;
            (2) inserting ``(1) Except as provided in paragraph (2), 
        the'' following ``Limitations.--'';
            (3) redesignating paragraphs (1), (2), (3) and (4) as 
        subparagraphs (A), (B), (C) and (D), respectively; and
            (4) inserting after subparagraph (D) (as redesignated by 
        section (d)(3)) the following new paragraph:
            ``(2) The Secretary of Defense may increase the number of 
        general and flag officers on active duty pursuant to paragraph 
        (1) by the number of reserve component general and flag 
        officers on active duty under section 12301(d) of this title in 
        support of a contingency operation as defined in section 
        101(a)(13) of this title.''.

SEC. 516. RESERVE HEALTH PROFESSIONALS STIPEND PROGRAM EXPANSION.

    (a) Purpose of Program.--Section 16201(a) of title 10, United 
States Code, is amended to read as follows:
    ``(a) Establishment of Program.--For the purposes of obtaining 
adequate numbers of commissioned officers in the reserve components who 
are qualified in health professions, the Secretary of each military 
department may establish and maintain a program to provide financial 
assistance under this chapter to persons engaged in training that leads 
to a degree in medicine or dentistry, and to a health professions 
specialty critically needed in wartime. Under such a program, the 
Secretary concerned may agree to pay a financial stipend to persons 
engaged in health care education and training in return for a 
commitment to subsequent service in the Ready Reserve.''.
    (b) Medical and Dental Student Stipend.--Section 16201 of such 
title 10 is amended by--
            (1) redesignating subsections (b), (c), (d) and (e) as 
        subsections (c), (d), (e) and (f);
            (2) inserting the following new subsection:
    ``(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 his reserve component, if tendered, based upon 
                his 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 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, upon successful 
        completion of the program, one year in the Selected Reserve for 
        each six months, or part thereof, for which the stipend is 
        provided. 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.--Section 16201(c) (as redesignated by 
section (b)) is amended--
            (1) by inserting ``Wartime'' following ``Critical'' in the 
        heading; and
            (2) in paragraph (1)(B), by inserting ``or has been 
        appointed as a medical or dental officer in the Reserve of the 
        armed force concerned'' before the semicolon at the end.
    (d) Service Obligation Requirement.--Subparagraph (2)(D) of 
subsection (c) (as redesignated by section (b)) and subparagraph (2)(D) 
of subsection (d) (as redesignated by section (b)) 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) Clerical Amendments.--Subparagraphs (2)(A) of subsection (c) 
(as redesignated by section (b)) and subparagraph (2)(A) of subsection 
(d) (as redesignated by section (b)) are amended by striking 
``subsection (e)'' and inserting ``subsection (f)''.

SEC. 517. 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), provided the 
        call or order to active duty, as prescribed in regulations of 
        the Secretary concerned, specifies a period of three years or 
        less and continued placement on the reserve active-status 
        list;''.
    (b) Retroactive Application.--(1) Officers who were placed on the 
reserve active status list under section 641(1)(D), as amended by 
section 521 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (Public Law 106-398; 114 Stat. 1654A-108), may be 
considered, as determined by the Secretary concerned, to have been on 
the active-duty list during the period beginning on the date of 
enactment of Public Law 106-398 through the date of enactment of this 
Act.
    ``(2) Officers who were placed on the active duty list on or after 
October 30, 1997, may, at the discretion of the Secretary concerned, be 
placed on the reserve active-status list upon enactment of this Act, 
provided they otherwise meet the conditions specified in section 
641(1)(D) as amended by this Act.

SEC. 518. 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 
to perform funeral honors functions for funerals of veterans in 
accordance with section 1491 of this title.''.

SEC. 519. CLARIFICATION OF FUNCTIONS THAT MAY BE ASSIGNED TO ACTIVE 
              GUARD AND RESERVE PERSONNEL ON FULL-TIME NATIONAL GUARD 
              DUTY.

    Section 12310(b) of title 10, United States Code, is amended by 
inserting ``, or a Reserve who is a member of the National Guard 
serving on full-time National Guard duty under section 502(f) of title 
32 in connection with functions referred to in subsection (a),'' after 
``on active duty as described in subsection (a)''.

SEC. 520. AUTHORITY FOR TEMPORARY WAIVER OF THE REQUIREMENT FOR A 
              BACCALAUREATE DEGREE FOR PROMOTION OF CERTAIN RESERVE 
              OFFICERS OF THE ARMY.

    Section 516 of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 1920, 2008) is 
amended--
            (1) in subsection (a), by striking ``(a) Waiver Authority 
        for Army OCS Graduates.--'' and ``before the date of the 
        enactment of this Act''; and
            (2) in subsection (b), by striking ``2000'' and inserting 
        ``2003''.

SEC. 521. AUTHORITY OF THE PRESIDENT TO SUSPEND CERTAIN LAWS RELATING 
              TO PROMOTION, RETIREMENT AND SEPARATION; DUTIES.

    Section 12305 of title 10, United States Code, is amended by adding 
at the end the following new subsection (c):
    ``(c) Active duty members whose mandatory separations or 
retirements incident to section 1251 or sections 632-637 of this title 
are delayed pursuant to invocation of this section, will be afforded up 
to 90 days following termination of the suspension before being 
separated of retired.''.

                   Subtitle C--Education and Training

SEC. 531. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD THE DEGREE 
              OF MASTER OF STRATEGIC STUDIES.

    (a) Authority to Confer Degree.--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 
college who fulfill the requirements for the degree.
    (b) Regulation.--The Secretary of the Navy shall promulgate 
regulations under which the Director of the faculty of the Marine Corps 
War College of the Marine Corps University shall administer the 
authority in subsection (a).
    (e) Effective Date.--The authority to award degrees provided by 
subsection (a) shall become effective on the date on which the 
Secretary of Education determines that the requirements established by 
the Marine Corps War College of the Marine Corps University for the 
degree of master of strategic studies are in accordance with generally 
applicable requirements for a degree of master of arts.

SEC. 532. RESERVE COMPONENT DISTRIBUTED LEARNING.

    (a) Compensation for Distributed Learning.--Section 206(d) of title 
37, United States Code, is amended to read as follows:
    ``(d) A member of a Reserve Component may be paid compensation 
under this section for the successful completion of courses of 
instruction undertaken by electronic, paper-based, or other distributed 
learning. Distributed Learning is structured learning that takes place 
without 55 requiring the physical presence of an instructor. To be 
compensable, the instruction must be required by law, Department of 
Defense policy, or service regulation and may be accomplished either 
independently or as part of a group.''.
    (b) Definition of Inactive-Duty Training.--Section 101(22) of title 
37, United States Code, is amended by striking ``, but does not include 
work or study in connection with a correspondence course of a uniformed 
service''.

SEC. 533. REPEAL OF LIMITATION ON NUMBER OF JUNIOR RESERVE OFFICERS' 
              TRAINING CORPS (JROTC) UNITS.

    Section 2031(a)(1) of title 10, United States Code, is amended by 
striking the second sentence.

SEC. 534. MODIFICATION OF THE NURSE OFFICER CANDIDATE ACCESSION PROGRAM 
              RESTRICTION ON STUDENTS ATTENDING CIVILIAN EDUCATIONAL 
              INSTITUTIONS WITH SENIOR RESERVE OFFICERS' TRAINING 
              PROGRAMS.

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

SEC. 535. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER.

    (a) Subject to subsection (b), the Commandant of the Defense 
Language Institute Foreign Language Center (Institute) may confer an 
Associate of Arts degree in Foreign Language upon graduates of the 
Institute who fulfill the requirements for the degree.
    (b) No degree may be conferred upon any student under this section 
unless the Provost certifies to the Commandant of the Institute that 
the student has satisfied all the requirements prescribed for such 
degree.
    (c) The authority provided by subsection (a) shall be exercised 
under regulations prescribed by the Secretary of Defense.

           Subtitle D--Decorations, Awards, and Commendations

SEC. 541. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO HUMBERT R. 
              VERSACE FOR VALOR DURING THE VIETNAM WAR.

    (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 Humbert R. 
Versace for the acts of valor referred to in subsection (b).
    (b) Action Described.--The acts of valor referred to in subsection 
(a) are the actions of Humbert R. Versace 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.

SEC. 542. ISSUANCE OF DUPLICATE MEDAL OF HONOR.

            (a) Section 3747 of title 10, United States Code, is 
        amended--
            (1) in the section heading, by adding at the end ``; 
        issuance of duplicate medal of honor'';
            (2) by striking ``Any medal of honor'' and inserting ``(a) 
        Replacement of Medals.--Any medal of honor'';
            (3) by inserting ``stolen,'' before ``lost or destroyed,''; 
        and
            (4) by adding at the end the following new subsection:
    ``(b) Issuance of Duplicate Medal of Honor.--Upon written 
application by a person to whom a medal of honor has been awarded under 
this chapter, the Secretary of the Army may issue such person, without 
charge, one duplicate medal of honor, with ribbons and appurtenances. 
Such duplicate shall be marked, in a manner the Secretary may 
determine, as a duplicate or for display purposes only. The issuance of 
a duplicate medal of honor under the authority of this subsection shall 
not constitute the award of more than one medal of honor within the 
meaning of section 3744(a) of this title.''.
    (b) Section 6253 of such title is amended--
            (1) in the section heading, by adding at the end ``; 
        issuance of duplicate medal of honor'';
            (2) by striking ``The Secretary of the Navy may replace'' 
        and inserting ``(a) Replacement of Medals.--The Secretary of 
        the Navy may replace'';
            (3) by inserting ``stolen,'' before ``lost or destroyed''; 
        and
            (4) by adding at the end the following new subsection:
    ``(b) Issuance of Duplicate Medal of Honor.--Upon written 
application by a person to whom a medal of honor has been awarded under 
this chapter, the Secretary of the Navy may issue such person, without 
charge, one duplicate medal of honor, with ribbons and appurtenances. 
Such duplicate shall be marked, in a manner the Secretary may 
determine, as a duplicate or for display purposes only. The issuance of 
a duplicate medal of honor under the authority of this subsection shall 
not constitute the award of more than one medal of honor within the 
meaning of section 6247 of this title.''.
    (c) Section 8747 of such title is amended--
            (1) in the section heading, by adding at the end ``; 
        issuance of duplicate medal of honor'';
            (2) by striking ``Any medal of honor'' and inserting ``(a) 
        Replacement of Medals.--Any medal of honor'';
            (3) by inserting ``stolen,'' before ``lost or destroyed,''; 
        and
            (4) by adding at the end the following new subsection:
    ``(b) Issuance of Duplicate Medal of Honor.--Upon written 
application by a person to whom a medal of honor has been awarded under 
this chapter, the Secretary of the Air Force may issue such person, 
without charge, one duplicate medal of honor, with ribbons and 
appurtenances. Such duplicate shall be marked, in a manner the 
Secretary may determine, as a duplicate or for display purposes only. 
The issuance of a duplicate medal of honor under the authority of this 
subsection shall not constitute the award of more than one medal of 
honor within the meaning of section 8744(a) of this title.''.
    (d) Clerical Amendments.--(1) The item relating to section 3747 of 
such title in the table of sections at the beginning of chapter 357 of 
such title is amended to read as follows:

``3747. Medal of honor; distinguished-service cross; distinguished-
                            service medal; silver star: replacement; 
                            issuance of duplicate medal of honor.'';
    (2) The item relating to section 6253 of such title in the table of 
sections at the beginning of chapter 567 of such title is amended to 
read as follows:

``6253. Replacement; issuance of duplicate medal of honor.''; and
    (3) The item relating to section 8747 of such title in the table of 
sections at the beginning of chapter 857 of such title is amended to 
read as follows:

``8747. Medal of honor; Air Force cross; distinguished-service cross; 
                            distinguished-service medal; silver star: 
                            replacement; issuance of duplicate medal of 
                            honor.''.

SEC. 543. REPEAL OF LIMITATION ON AWARD OF BRONZE STAR TO MEMBERS IN 
              RECEIPT OF SPECIAL PAY.

    Section 1133 of title 10, United States Code, is repealed.

              Subtitle E--Uniform Code of Military Justice

SEC. 551. REVISION OF PUNITIVE UCMJ ARTICLE REGARDING DRUNKEN OPERATION 
              OF VEHICLE, AIRCRAFT, OR VESSEL.

    (a) Standard for Drunken Operation of Vehicle, Aircraft, or 
Vessel.--Paragraph (2) of section 911 of title 10, United States Code 
(article 111 of the Uniform Code of Military Justice), is amended by 
striking ``0.10 grams or more of alcohol'' and inserting ``0.08 grams 
or more of alcohol'' both places such term appears.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act and shall apply to 
offenses committed on or after that date.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE 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.
    (b) Increase in Basic Pay.--Effective on January 1, 2002, the rates 
of monthly basic pay for members of the uniformed services shall be as 
follows:

                                            MONTHLY BASIC PAY*,**,***
----------------------------------------------------------------------------------------------------------------
                                                   Years of service (computed under 37 U.S.C. 205)
             Pay grade              ----------------------------------------------------------------------------
                                         <2         2          3          4          6          8          10
----------------------------------------------------------------------------------------------------------------
COMMISSIONED OFFICERS
----------------------------------------------------------------------------------------------------------------
0-10...............................          0          0          0          0          0          0          0
0-9................................          0          0          0          0          0          0          0
0-8................................    7180.20    7415.40    7571.10    7614.90    7809.30    8135.10    8210.70
0-7................................    5966.40    6371.70    6371.70    6418.20    6657.90    6840.30    7051.20
0-6................................    4422.00    4857.90    5176.80    5176.80    5196.60    5418.90    5448.60
0-5................................    3537.00    4152.60    4440.30    4494.30    4673.10    4673.10    4813.50
0-4................................    3023.70    3681.90    3927.60    3982.50    4210.50    4395.90    4696.20
0-3................................    2796.60    3170.40    3421.80    3698.70    3875.70    4070.10    4232.40
0-2................................    2416.20    2751.90    3169.50    3276.30    3344.10    3344.10    3344.10
0-1................................    2097.60    2183.10    2638.50    2638.50    2638.50    2638.50    2638.50
----------------------------------------------------------------------------------------------------------------
                 12                      14         16         18         20         22         24         26
----------------------------------------------------------------------------------------------------------------
     0                                       0          0          0   11601.90   11659.20   11901.30   12324.00
     0                                       0          0          0   10147.50   10293.60   10504.80   10873.80
8519.70                                8608.50    8874.30    9259.50    9614.70    9852.00    9852.00    9852.00
7261.80                                7472.70    8135.10    8694.90    8694.90    8694.90    8694.90    8738.70
5448.60                                5628.60    6305.70    6627.00    6948.30    7131.00    7316.10    7675.20
5073.30                                5413.50    5755.80    5919.00    6079.80    6262.80    6262.80    6262.80
4930.20                                5092.50    5255.70    5310.60    5310.60    5310.60    5310.60    5310.60
4441.20                                4549.50    4549.50    4549.50    4549.50    4549.50    4549.50    4549.50
3344.10                                3344.10    3344.10    3344.10    3344.10    3344.10    3344.10    3344.10
2638.50                                2638.50    2638.50    2638.50    2638.50    2638.50    2638.50    2638.50
----------------------------------------------------------------------------------------------------------------


                           COMMISSIONED OFFICERS WITH OVER 4 YEARS ACTIVE DUTY SERVICE
----------------------------------------------------------------------------------------------------------------
                                         <2         2          3          4          6          8          10
----------------------------------------------------------------------------------------------------------------
AS AN ENLISTED MEMBER OR WARRANT OFFICER
----------------------------------------------------------------------------------------------------------------
0-3E...............................       0.00       0.00       0.00    3698.70    3875.70    4070.10    4232.40
0-2E...............................       0.00       0.00       0.00    3276.30    3344.10    3450.30    3630.00
O-IE...............................       0.00       0.00       0.00    2638.50    2818.20    2922.30    3028.50
----------------------------------------------------------------------------------------------------------------
                 12                      14         16         18         20         22         24         26
----------------------------------------------------------------------------------------------------------------
4441.20                                4617.00    4717.50    4855.20    4855.20    4855.20    4855.20    4855.20
3768.90                                3872.40    3872.40    3872.40    3872.40    3872.40    3872.40    3872.40
3133.20                                3276.30    3276.30    3276.30    3276.30    3276.30    3276.30    3276.30
----------------------------------------------------------------------------------------------------------------
WARRANT OFFICERS
----------------------------------------------------------------------------------------------------------------
                                         <2         2          3          4          6          8          10
----------------------------------------------------------------------------------------------------------------
W-5................................       0.00       0.00       0.00       0.00       0.00       0.00       0.00
W-4................................    2889.60    3108.60    3198.00    3285.90    3437.10    3586.50    3737.70
W-3................................    2638.80    2862.00    2862.00    2898.90    3017.40    3152.40    3330.90
W-2................................    2321.40    2454.00    2569.80    2654.10    2726.40    2875.20    2984.40
W-1................................    2049.90    2217.60    2330.10    2402.70    2511.90    2624.70    2737.80
----------------------------------------------------------------------------------------------------------------
                 12                      14         16         18         20         22         24         26
----------------------------------------------------------------------------------------------------------------
   0.00                                   0.00       0.00       0.00    4965.60    5136.00    5307.00    5478.60
3885.30                                4038.00    4184.40    4334.40    4480.80    4632.60    4782.00    4935.30
3439.50                                3558.30    3693.90    3828.60    3963.60    4098.30    4233.30    4368.90
3093.90                                3200.40    3318.00    3438.90    3559.80    3680.10    3801.30    3801.30
2850.00                                2963.70    3077.10    3189.90    3275.10    3275.10    3275.10    3275.10
----------------------------------------------------------------------------------------------------------------
ENLISTED MEMBERS
----------------------------------------------------------------------------------------------------------------
                                         <2         2          3          4          6          8          10
----------------------------------------------------------------------------------------------------------------
E-9................................       0.00       0.00       0.00       0.00       0.00       0.00    3423.90
E-8................................       0.00       0.00       0.00       0.00       0.00    2858.10    2940.60
E-7................................    1986.90    2169.00    2251.50    2332.50    2417.40    2562.90    2645.10
E-6................................    1701.00    1870,80    1953.60    2033.70    2117.40    2254.50    2337.30
E-5................................    1561.50    1665,30    1745.70    1828.50    1912.80    2030.10    2110.20
E-4................................    1443.60    1517.70    1599.60    1680.30    1752.30    1752.30    1752.30
E-3................................    1303.50    1385.40    1468.50    1468.50    1468.50    1468.50    1468.50
E-2................................    1239.30    1239.30    1239.30    1239.30    1239.30    1239.30    1239.30
E-1 >4+............................    1105.50    1105.50    1105.50    1105.50    1105.50    1105.50    1105.50
E-1 <4++...........................    1022.70       0.00       0.00       0.00       0.00       0.00       0.00
----------------------------------------------------------------------------------------------------------------
                 12                      14         16         18         20         22         24         26
----------------------------------------------------------------------------------------------------------------
3501.30                                3599.40    3714.60    3830.40    3944.10    4098.30    4251.30    4467.00
3017.70                                3110.10    3210.30    3314.70    3420.30    3573.00    3724.80    3937.80
2726.40                                2808.00    2892.60    2975.10    3057.30    3200.40    3292.80    3526.80
2417.40                                2499.30    2558.10    2602.80    2602.80    2602.80    2602.80    2602.80
2193.30                                2193.30    2193.30    2193.30    2193.30    2193.30    2193.30    2193.30
1752.30                                1752.30    1752.30    1752.30    1752.30    1752.30    1752.30    1752.30
1468.50                                1468.50    1468.50    1468.50    1468.50    1468.50    1468.50    1468.50
1239.30                                1239.30    1239.30    1239.30    1239.30    1239.30    1239.30    1239.30
1105.50                                1105.50    1105.50    1105.50    1105.50    1105.50    1105.50    1105.50
   0.00                                   0.00       0.00       0.00       0.00       0.00       0.00      0.00
----------------------------------------------------------------------------------------------------------------
*Basic pay for 0-7 to 0-10 is limited to the rate of basic pay for level III of the Executive Schedule. Basic
  pay for 0-6 and below is limited to level V of the Executive Schedule.
**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, 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.
***While serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy or Coast Guard, Chief
  Master Sergeant of the Air Force, or Sergeant Major of the Marine Corps, 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.
+Applies to personnel who have served 4 months or more on active duty.
++Applies to personnel who have served less than 4 months on active duty.

SEC. 602. PARTIAL DISLOCATION ALLOWANCE AUTHORIZED UNDER CERTAIN 
              CIRCUMSTANCES.

    (a) Authorization of Partial Dislocation Allowance.--Section 407 of 
title 37, United States Code is amended--
            (1) by redesignating subsections (c) through (g) as 
        subsections (d) through (h), respectively;
            (2) in subsections (a)(1) and (b)(1), by striking 
        ``subsection (c)'' and inserting ``subsection (d)'';
            (3) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Partial Dislocation Allowance.--(1) Under regulations 
prescribed by the Secretary concerned, a member ordered to occupy or to 
vacate Government family housing for the convenience of the Government 
(including pursuant to the privatization or renovation of housing), and 
not pursuant to a permanent change of station, may be paid a partial 
dislocation allowance of $500.
    ``(2) Effective on the same date that the monthly rates of basic 
pay for members are increased for a subsequent calendar year, the 
Secretary of Defense shall adjust the rate for the partial dislocation 
allowance for that calendar year by the percentage equal to the 
percentage increase in the rate of basic pay for that calendar year.
    ``(3) Payments made under this subsection are not subject to the 
fiscal year limitations in subsection (e).''; and
            (4) in subsection (d)(1) as redesignated by paragraph (1), 
        by striking at the beginning ``The amount'' and inserting 
        ``Except as provided in subsection (c), the amount''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.

SEC. 603. FUNERAL HONORS DUTY ALLOWANCE FOR RETIREES.

    Section 435 of title 37, United States Code, is amended--
            (1) in subsection (a), by inserting before the period at 
        the end ``or a retired member of the armed forces who performs 
        at least two hours of duty preparing for or performing honors 
        at the funeral of a veteran''; and
            (2) by adding at the end the following new subsection:
    ``(d) Concurrent Payment.--Notwithstanding any other provision of 
law, the allowance paid to a retired member of the armed forces under 
subsection (a) shall be in addition to any other compensation 
authorized under title 10, title 37, and title 38 to which the retired 
member may be entitled.''.

SEC. 604. BASIC PAY RATE FOR CERTAIN RESERVE COMMISSIONED OFFICERS WITH 
              PRIOR SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER.

    Section 203(d) of title 37, United States Code, is amended by 
inserting ``, or who earns a total of more than 1,460 points credited 
under section 12732(a)(2) of title 10 while serving as a warrant 
officer or as a warrant officer and enlisted member'' following ``or as 
a warrant officer and enlisted member''.

SEC. 605. FAMILY SEPARATION ALLOWANCE.

    Section 427(c) of title 37, United States Code, is amended by 
amending the first sentence to read as follows:
    ``A member who elects to serve an unaccompanied tour of duty 
because dependent movement to the permanent station is denied for 
certified medical reasons is entitled to an allowance under subsection 
(a)(1)(A). In all other cases, a member who elects to serve a tour 
unaccompanied by his dependents at a permanent station to which 
movement of his dependents is authorized at the expense of the United 
States under section 406 of this title is not entitled to an allowance 
under subsection (a)(1)(A).''.

SEC. 606. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR THE CORPS OF CADETS, 
              UNITED STATES MILITARY ACADEMY.

    Section 4337 of title 10, United States Code, is amended by 
striking the second sentence and inserting ``Notwithstanding any other 
provision of law, the chaplain is entitled to the same basic allowance 
for housing allowed to a lieutenant colonel, and to fuel and light for 
quarters in kind.''.

SEC. 607. CLARIFYING AMENDMENT THAT SPACE-REQUIRED TRAVEL FOR ANNUAL 
              TRAINING RESERVE DUTY DOES NOT OBVIATE TRANSPORTATION 
              ALLOWANCES.

    Section 18505(a) of title 10, United States Code, is amended by 
striking ``annual training duty or'' each time such term appears.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. AUTHORIZE THE SECRETARY OF THE NAVY TO PRESCRIBE SUBMARINE 
              DUTY INCENTIVE PAY RATES.

    (a) In General.--Section 301c of title 37, United States Code, is 
amended by striking subsection (b) and inserting the following:
    ``(b) A member who meets the requirements prescribed in subsection 
(a) is entitled to monthly submarine duty incentive pay in an amount 
prescribed by the Secretary of the Navy, but not more than $1,000 per 
month.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2002.

SEC. 612. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES 
              AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2001'' and 
inserting ``September 30, 2003''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title 37 is amended by striking ``December 31, 2001'' and inserting 
``September 30, 2003''.
    (c) Enlistment Bonus.--Section 309(e) of such title 37 is amended 
by striking ``December 31, 2001'' and inserting ``September 30, 2003''.
    (d) Retention Bonus for Members Qualified in a Critical Military 
Skill.--Section 323(i) of such title 37 is amended by striking 
``December 31, 2001'' and inserting ``September 30, 2003''.

SEC. 613. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
              NURSE OFFICER CANDIDATES, REGISTERED NURSES, NURSE 
              ANESTHETISTS, AND DENTAL OFFICERS.

    (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 ``September 30, 2003''.
    (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 ``September 30, 2003''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title 37 is amended by striking ``December 31, 
2001'' and inserting ``September 30, 2003''.
    (d) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title 37 is amended by striking ``September 30, 2002'' and 
inserting ``September 30, 2003''.

SEC. 614. EXTENSION OF AUTHORITIES RELATING TO NUCLEAR OFFICER SPECIAL 
              PAYS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking ``December 31, 2001'' and inserting ``December 31, 
2003''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
37 is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2003''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title 37 is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2003''.

SEC. 615. EXTENSION OF SPECIAL AND INCENTIVE PAYS.

    (a) Special Pay for Reserve 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 of 
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. 616. ACCESSION BONUS FOR OFFICERS IN CRITICAL SKILLS.

    (a) In General.--Chapter 5 of title 37, United States Code, is 
amended by inserting after section 323 the following new section:
``Sec. 324. Special Pay: officer critical skills accession bonus
    ``(a) Accession Bonus Authorized.--Under regulations prescribed by 
the Secretary of Defense and the Secretary of Transportation with 
respect to the Coast Guard when it is not operated as a service in the 
Navy, and subject to the limitations in subsection (b), an individual 
who executes a written agreement to accept a commission as an officer 
of an armed force and serve on active duty in an officer critical skill 
for the period specified in the agreement may be paid an accession 
bonus not to exceed $20,000 upon acceptance of the written agreement by 
the Secretary concerned.
    ``(b) Limitation on Eligibility for Bonus.--An individual may not 
be paid a bonus under subsection (a) if the individual has received, or 
is receiving, an accession bonus for the same period of service under 
subsections 302d, 302h, or 312b.
    ``(c) Proration.--The term of an agreement and the amount of the 
payment under subsection (a) may be prorated.
    ``(d) Payment Method.--Upon acceptance of the written agreement by 
the Secretary concerned, the total amount payable pursuant to the 
agreement under subsection (a) becomes fixed and may be paid by the 
Secretary in either a lump sum or installments.
    ``(e) Repayment.--(1) If an individual who has entered into an 
agreement under subsection (a) has received all or part of a bonus 
under this section fails to accept an appointment or to commence or 
complete the total period of active duty in the designated critical 
skill specified in the agreement, the Secretary concerned may require 
the individual to repay the United States, on a pro rata basis and to 
the extent that the Secretary determines conditions and circumstances 
warrant, any or all sums paid to the individual under this section.
    ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of a written 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).
    ``(f) Definition.--In this section, the term ``officer critical 
skill'' means a skill designated as critical with respect to accession 
of officers to the skill by the Secretary of Defense, or by the 
Secretary of Transportation with respect to the Coast Guard when it is 
not operating as a service in the Navy.
    ``(g) Termination of Bonus Authority.--No bonus may be paid under 
this section with respect to any agreement to continue on active duty 
in the armed forces entered into after September 30, 2003, and no 
agreement under this section may be entered into after that date.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title 37 is amended by inserting after the item 
relating to section 323 the following new item:

``324. Special Pay: officer critical skills accession bonus.''

SEC. 617. CRITICAL WARTIME SKILL REQUIREMENT FOR ELIGIBILITY FOR THE 
              INDIVIDUAL READY RESERVE BONUS.

    Section 308h(a)(1) of title 37, United States Code, is amended--
            (1) by striking ``a combat or combat support skill of''; 
        and
            (2) by inserting ``is qualified in a skill or specialty 
        designated by the Secretary concerned as critically short to 
        meet wartime requirements and'' after ``and who''.

SEC. 618. HAZARDOUS DUTY INCENTIVE PAY: MARITIME BOARD AND SEARCH.

    Section 301(a) of title 37, United States Code, is amended by 
inserting after paragraph (11) the following new paragraph:
            ``(12) involving regular participation as a member of a 
        team conducting visit, board, search, and seizure operations as 
        defined by the Secretary concerned, aboard vessels in support 
        of maritime interdiction operations as designated by such 
        Secretary.

            Subtitle C--Travel and Transportation Allowances

SEC. 621. FUNDED STUDENT TRAVEL: EXCHANGE PROGRAMS.

    Section 430 of title 37, United States Code, is amended--
            (1) in subsection (a)(3), by inserting ``(or a school 
        outside the United States if the dependent is attending that 
        school for less than one year under a program approved by the 
        school in the continental United States at which the dependent 
        is enrolled)'' after ``United States''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``(or a school 
                outside the United States if the dependent is attending 
                that school for less than one year under a program 
                approved by the school in the continental United States 
                at which the dependent is enrolled)'' after ``United 
                States'' the first place it appears; and
                    (B) by adding at the end the following new 
                subparagraph:
            ``(3) The transportation allowance under paragraph (1) for 
        a dependent child who is attending a school outside the United 
        States for less than one year under a program approved by the 
        school in the continental United States at which the dependent 
        is enrolled shall not exceed the allowance the member would be 
        paid for a trip between the school in the continental United 
        States and the member's duty station outside the continental 
        United States and return.''.

SEC. 622. PAYMENT OF VEHICLE STORAGE COSTS IN ADVANCE.

    Section 2634(b) 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.''.

SEC. 623. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY MEMBERS TO 
              ATTEND THE BURIAL OF A DECEASED MEMBER OF THE ARMED 
              FORCES.

    (a) Consolidation of Authorities.--Section 411f of title 37, United 
States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``Allowances Authorized.--(1)'' 
                after ``(a)''; and
                    (B) by inserting at the end following new 
                paragraph:
            ``(2) If a dependent of a deceased member who is authorized 
        travel and transportation allowances under this section is 
        unable to travel unattended to the burial ceremonies of the 
        deceased member--
                    ``(A) because of--
                            ``(i) age;
                            ``(ii) physical condition; or
                            ``(iii) other justifiable reason, as 
                        determined under uniform regulations prescribed 
                        by the Secretaries concerned; and
                    ``(B) there is no other dependent qualified for 
                travel and transportation allowances under this section 
                available and qualified to serve as an attendant for 
                the dependent while traveling to and attending the 
                burial ceremonies, an attendant may be paid round trip 
                travel and transportation allowances under this 
                section.'';
            (2) in subsection (b)(1)--
                    (A) by striking ``(b)(1) Except as provided in 
                paragraph (2)'' and inserting
    ``(b) Limitation on Allowances.--(1) Except as provided in 
paragraphs (2) and (3)''; and
                    (B) by inserting before the period at the end the 
                following: ``and the time necessary for such travel''; 
                and
            (3) in subsection (b)(2), by striking ``be extended to 
        accommodate'' and inserting ``not exceed the rates for two days 
        and'';
            (4) by adding at the end of subsection (b) the following 
        new paragraph:
            ``(3) If a deceased member is interred in a cemetery 
        maintained by the American Battle Monuments Commission, the 
        allowances authorized under this section may be provided to and 
        from such cemetery and may not exceed the rates for two days 
        and time necessary for such travel.''; and
            (5) by amending subsection (c) to read as follows:
    ``(c) Definitions.--(1) In this section, the term `dependents' 
means--
            ``(A) the surviving spouse (including a remarried surviving 
        spouse) of the deceased member and any child of the deceased 
        member as defined in section 401(a)(2) of this title;
            ``(B) if no person described in subparagraph (A) is paid 
        travel and transportation allowances under this section, the 
        parents (as defined in section 401(b)(2)) of the deceased 
        member; or
            ``(C) if no person described in subparagraph (A) or (B) is 
        paid travel and transportation allowances under this section, 
        then--
                    ``(i) the person who directs the disposition of the 
                remains of the deceased member under section 1482(c) or 
                chapter 74 of title 10 and two additional persons 
                selected by that person who are closely related to the 
                deceased member; or
                    ``(ii) 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 section 1482(c) of such title to 
                direct the disposition of the remains if individual 
                identification had been made and two additional persons 
                selected by that person who are closely related to the 
                deceased member.
    ``(2) In this section, the term `burial ceremonies' includes--
            ``(A) an interment of casketed or cremated remains;
            ``(B) a placement of cremated remains in a columbarium:
            ``(C) a memorial service for which reimbursement is 
        authorized under section 1482(e)(2) of title 10; and
            ``(D) a burial of commingled remains that cannot be 
        individually identified in a common grave in a national 
        cemetery.''.
    (b) Conforming Amendments.--(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) The Funeral Transportation and Living Expense Benefits Act of 
1974 (37 U.S.C. 406 note; Public Law 93-257) is repealed.

SEC. 624. SHIPMENT OF PRIVATELY OWNED VEHICLES WHEN EXECUTING CONUS 
              PERMANENT CHANGE OF STATION MOVES.

    Section 2634(h)(1) of title 10, United States Code, is amended by 
inserting before the period at the end ``, or when the Secretary 
concerned determines that the transport of a vehicle upon transfer is 
advantageous and cost-effective to the Government''.

                           Subtitle D--Other

SEC. 631. MONTGOMERY GI BILL--SELECTED RESERVE ELIGIBILITY PERIOD.

    Section 16133(a) of title 10, United States Code, is amended by 
striking ``10-year'' and inserting ``14-year''.

SEC. 632. IMPROVED DISABILITY BENEFITS FOR CERTAIN RESERVE COMPONENT 
              MEMBERS.

    (a) Medical and Dental Care for Members.--Section 1074a(a)(3) of 
title 10, United States Code, is amended by inserting before the 
period: ``, or if otherwise authorized under applicable regulations''.
    (b) Medical and Dental Care for Dependents.--Section 1076(a)(2)(C) 
of such title is amended by inserting before the period: ``, or if 
otherwise authorized under applicable regulations''.
    (c) Eligibility for Disability Retirement or Separation.--(1) 
Section 1204(2)(B)(iii) of such title is amended by inserting before 
the semicolon: ``, or if otherwise authorized under applicable 
regulations''.
    (2) Section 1206(2)(C) of such title is amended by inserting before 
the semicolon: ``, or if otherwise authorized under applicable 
regulations''.
    (d) Recovery, Care, and Disposition of Remains.--Section 
1481(a)(2)(D) of such title is amended by inserting before the 
semicolon: ``, or if otherwise authorized under applicable 
regulations''.
    (e) Entitlement to Basic Pay.--(1) Section 204(g)(1)(D) of title 
37, United States Code, is amended by inserting before the period: ``, 
or if otherwise authorized under applicable regulations''.
    (2) Section 204(h)(1)(D) of such title is amended by inserting 
before the period: ``, or if otherwise authorized under applicable 
regulations''.
    (f) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C) 
of such title is amended by inserting before the period: ``, or if 
otherwise authorized under applicable regulations''.

SEC. 633. ACCEPTANCE OF SCHOLARSHIPS BY OFFICERS PARTICIPATING IN THE 
              FUNDED LEGAL EDUCATION PROGRAM.

    (a) Acceptance of Scholarship.--Section 2004 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(g) An officer detailed at a law school under this section also 
may accept a fellowship, scholarship, or grant under section 2603 of 
this title. Any service obligation incurred under section 2603 shall be 
served consecutively with the service obligation incurred under 
subsection (b)(2)(C).''.
    (b) Conforming Amendment.--Section 2603 of such title 10 is amended 
by adding at the end the following new subsection:
    ``(c) A member who accepts a fellowship, scholarship, or grant in 
accordance with subsection (a) also may be detailed at a law school 
under section 2004 of this title. Any service obligation incurred under 
section 2004 shall be served consecutively with the service obligation 
incurred under subsection (b).''.

        TITLE VII--ACQUISITION POLICY AND ACQUISITION MANAGEMENT

                     Subtitle A--Acquisition Policy

SEC. 701. ACQUISITION MILESTONE CHANGES.

    (a) System Development and Demonstration.--Section 2366(c) of title 
10, United States Code, is amended--
            (1) in paragraph (1) by striking ``engineering and 
        manufacturing development'' and inserting ``system development 
        and demonstration''; and
            (2) in paragraph (2) by striking ``engineering and 
        manufacturing development'' and inserting ``system development 
        and demonstration''.
    (b) Milestone B.--Section 2400 of title 10, United States Code, is 
amended--
            (1) in subsections (a)(1)(A), (a)(2), (a)(4) and (a)(5), by 
        striking ``milestone II'' each place it appears and inserting 
        ``milestone B''; and
            (2) in subsection (a)(2), by striking ``engineering and 
        manufacturing development'' and inserting ``system development 
        and demonstration''.
    (c) System Development and Demonstration.--Section 2432 of title 
10, United States Code, is amended in subsections (b)(3)(A), (c)(3)(A), 
and (h)(1) by striking ``engineering and manufacturing development'' 
each place it appears and inserting ``system development and 
demonstration''.
    (d) Section 2434 of title 10, United States Code, is amended in 
subsection (a) by striking ``engineering and manufacturing 
development'' and inserting ``system development and demonstration''.
    (e) System Development and Demonstration and Full Rate 
Production.--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'';
            (2) in subsection (c)(1), by striking ``demonstration and 
        validation'' and inserting ``system development and 
        demonstration'';
            (3) in subsection (c)(2), by striking ``engineering and 
        manufacturing development'' and inserting ``production and 
        deployment''; and
            (4) in subsection (c)(3), by striking ``production and 
        deployment'' and inserting ``full rate production''.
    (f) Milestone Designators.--Section 8102(b) of Public Law 106-259 
is amended--
            (1) by striking ``milestone I'' and inserting ``milestone 
        B'';
            (2) by striking ``milestone II'' and inserting ``milestone 
        C''; and
            (3) by striking ``milestone III'' and inserting ``full rate 
        production''.
    (g) Milestone Designators.--Section 81l(c) of Public Law 106-398 is 
amended--
            (1) by striking ``Milestone I'' and inserting ``Milestone 
        B'';
            (2) by striking ``Milestone II'' and inserting ``Milestone 
        C''; and
            (3) by striking ``Milestone III'' and inserting ``full rate 
        production''.

SEC. 702. CLARIFICATION OF INAPPLICABILITY OF THE REQUIREMENT FOR CORE 
              LOGISTICS CAPABILITIES STANDARDS TO THE NUCLEAR REFUELING 
              OF AN AIRCRAFT CARRIER.

    Section 2464(a)(3) of title 10, United States Code, is amended--
            (1) by striking ``nuclear aircraft carriers,''; and
            (2) by adding at the end the following new sentence: ``Core 
        logistics capabilities identified under paragraphs (1) and (2) 
        shall not include nuclear refueling of an aircraft carrier.''.

SEC. 703. DEPOT MAINTENANCE UTILIZATION WAIVER.

    Section 2466(c) of title 10, United States Code, is amended by 
striking ``the waiver is'' and inserting ``a depot is fully utilized 
within existing resources and, where multiple depots are capable of 
performing the same maintenance activities that the utilization of 
another such depot is uneconomical, or that the waiver is otherwise''.

                   Subtitle B--Acquisition Workforce

SEC. 705. TENURE REQUIREMENT FOR CRITICAL ACQUISITION POSITIONS.

    Section 1734 of title 10, United States Code, is amended--
            (1) in paragraph (a)(1), by inserting ``as a program 
        manager, deputy program manager, or senior contracting official 
        of a major system, as that term is defined in section 2302(5) 
        of this title, and any person assigned to such other critical 
        acquisition position as the Secretary of Defense may prescribe 
        by regulation,'' after ``critical acquisition position''.
            (2) in paragraph (a)(2), by inserting ``as a program 
        manager, deputy program manager, or senior contracting official 
        of a major system, as that term is defined in section 2302(5) 
        of this title, and any person assigned to such other critical 
        acquisition position as the Secretary of Defense may prescribe 
        by regulation,'' after ``critical acquisition position''.

       Subtitle C--General Contracting Procedures and Limitations

SEC. 710. AMENDMENT OF LAW APPLICABLE TO CONTRACTS FOR ARCHITECTURAL 
              AND ENGINEERING SERVICES AND CONSTRUCTION DESIGN.

    Section 2855 of title 10, United States Code, is amended--
            (1) in subsection (a) by striking ``(a)''; and
            (2) by striking subsection (b).

SEC. 711. STREAMLINING PROCEDURES FOR THE PURCHASE OF CERTAIN GOODS.

    Section 2534(g)(2) of title 10, United States Code, is amended by 
inserting before the period at the end: ``unless the head of a 
contracting activity determines--
                    ``(A) that the amount of the purchase is $25,000 or 
                less;
                    ``(B) the precision level of the ball or roller 
                bearings is rated lower than Annual Bearing Engineering 
                Committee (ABEC) 5 or Roller Bearing Engineering 
                Committee (RBEC) 5, or their equivalent;
                    ``(C) at least two manufacturers in the national 
                technology and industrial base capable of producing the 
                ball or roller bearings decline to respond to a request 
                for quotation for the required items; and
                    ``(D) the bearings are neither miniature nor 
                instrument ball bearings, i.e. rolling contact ball 
                bearings with a basic outside diameter (exclusive of 
                flange diameters) of 30 millimeters or less.''.

SEC. 712. REPEAL OF THE REQUIREMENT FOR LIMITATIONS ON THE USE OF AIR 
              FORCE CIVIL ENGINEERING SUPPLY FUNCTION CONTRACTS.

    Section 345 of the National Defense Authorization Act for Fiscal 
Year 1999 (Public Law 105-261, 112 Stat. 1978) is repealed.

SEC. 713. MODIFICATION OF LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
              STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    Section 1302(a) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948), as amended by 
section 1501 (a) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 806), is further amended by 
striking paragraph (1)(D).

          Subtitle D--Military Construction General Provisions

SEC. 715. EXCLUSION OF UNFORESEEN ENVIRONMENTAL HAZARD REMEDIATION FROM 
              THE LIMITATION ON COST INCREASES FOR MILITARY 
              CONSTRUCTION AND FAMILY HOUSING CONSTRUCTION PROJECTS.

    Section 2853(d) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' immediately following ``apply 
        to''; and
            (2) by inserting immediately before the period at the end 
        ``; or (2) the costs associated with environmental hazard 
        remediation such as asbestos removal, radon abatement, lead-
        based paint removal or abatement, and any other legally 
        required environmental hazard remediation, provided that such 
        remediation requirements could not be reasonably anticipated at 
        the time of budget submission''.

SEC. 716. INCREASE OF OVERSEAS MINOR CONSTRUCTION THRESHOLD USING 
              OPERATIONS AND MAINTENANCE FUNDS.

    Section 2805 of title 10, United States Code, amended--
            (1) in subsection (b)(1), by striking ``$500,000'' and 
        inserting ``$750,000'';
            (2) in subsection (c)(1)(A), by striking ``$1,000,000'' and 
        inserting ``$1,500,000''; and
            (3) in subsection (c)(1)(B), by striking ``$500,000'' and 
        inserting ``$750,000''.

SEC. 717. LEASEBACKS OF BASE CLOSURE PROPERTY.

    (a) 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 as follows:
            (1) in clause (iii), by striking ``A'' and inserting 
        ``Except as provided in clause (v) below, a''
            (2) by adding at the end the following new clause (v):
                            ``(v) Notwithstanding clause (iii) or 
                        chapter 137 of title 10, United States Code, 
                        where the department or agency concerned leases 
                        a substantial portion of the installation, the 
                        department or agency may obtain, at a rate no 
                        higher than that charged to non-Federal 
                        tenants, facility services for the leased 
                        property and common area maintenance from the 
                        redevelopment authority or the redevelopment 
                        authority's assignee as a provision of a lease 
                        under clause (i). Facility services and common 
                        area maintenance shall not include municipal 
                        services that the state or local government is 
                        required by law to provide to all landowners in 
                        its jurisdiction without direct charge, or 
                        firefighting or security-guard functions.''.
    (b) 1988 Law.--Section 204(b)(4) of the Defense Authorization 
Amendments and Base Closure and Realignment Act of (Public Law 100-526; 
10 U.S.C. 2687 note) is amended by adding at the end the following new 
subparagraph (J):
                    ``(J)(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) Except as provided in clause (v) below, 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) or chapter 137 
                of title 10, United States Code, where the department 
                or agency concerned leases a substantial portion of the 
                installation, the department or agency may obtain, at a 
                rate no higher than that charged to non-Federal 
                tenants, facility services for the leased property and 
                common area maintenance from the redevelopment 
                authority or the redevelopment authority's assignee as 
                a provision of a lease under clause (i). Facility 
                services and common area maintenance shall not include 
                municipal services that the state or local government 
                is required by law to provide to all landowners in its 
                jurisdiction without direct charge, or firefighting or 
                security-guard functions.''.

SEC. 718. 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 adding at the end the following new section:
``Sec. 2886. Reimbursement of funds related to the execution of 
              military family housing privatization projects
    ``The Secretary of Defense may, during the first year of an 
initiative under this Subchapter, transfer funds from appropriations 
available for the operation and maintenance of family housing to 
appropriations available for the pay of military personnel in such 
amounts as are necessary to offset additional housing allowance costs 
incurred as a result of such initiative.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by inserting after the item relating to 
section 2885 the following:

``2886. Reimbursement of funds related to the execution of military 
                            family housing privatization projects.''.

SEC. 719. ANNUAL REPORT TO CONGRESS ON DESIGN AND CONSTRUCTION.

    (a) In General.--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 referring to section 2861.

      TITLE VIII--DEPARTMENT OF DEFENSE ORGANIZATION AND POSITIONS

     Subtitle A--Department of Defense Organizations and Positions

SEC. 801. ORGANIZATIONAL ALIGNMENT CHANGE FOR 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 for Warfare 
Requirements and Programs''.

SEC. 802. CHANGE OF NAME FOR AIR MOBILITY COMMAND.

    (a) Section 2544(d) of title 10, United States Code, is amended by 
striking ``Military Airlift Command'' and inserting ``Air Mobility 
Command''.
    (b) Section 2545(a) of such title is amended by striking ``Military 
Airlift Command'' and inserting ``Air Mobility Command''.
    (c) Section 8074 of such title is amended by striking subsection 
(c).
    (d) Section 430(c) of title 37, United States Code, is amended by 
striking ``Military Airlift Command'' and inserting ``Air Mobility 
Command''.
    (e) Section 432(b) of such title is amended by striking ``Military 
Airlift Command'' and inserting ``Air Mobility Command''.

SEC. 803. TRANSFER OF INTELLIGENCE POSITIONS IN SUPPORT OF THE NATIONAL 
              IMAGERY AND MAPPING AGENCY.

    Section 1606 of title 10, United States Code, is amended by 
striking ``517'' and inserting ``544''.

                          Subtitle B--Reports

SEC. 811. AMENDMENT TO NATIONAL GUARD AND RESERVE COMPONENT EQUIPMENT: 
              ANNUAL REPORT TO CONGRESS.

    Section 10541 of title 10, United States Code, is amended to read 
as follows:
    ``(a) The Secretary of Defense shall submit to the Congress each 
year, not later than March 1, a written report concerning the equipment 
of the National Guard and the Reserve components of the armed forces, 
to include the U.S. Coast Guard Reserve. This report shall cover the 
current fiscal year and three succeeding years. The focus should be on 
major items of equipment which address large dollar-value requirements, 
critical Reserve component shortages and major procurement items. 
Specific major items of equipment shall include ships, aircraft, combat 
vehicles and key combat support equipment.
    ``(b) Each annual report under this section should include the 
following:
            ``(1) Major items of equipment required and on-hand in the 
        inventories of each Reserve component.
            ``(2) Major items of equipment which are expected to be 
        procured from commercial sources or transferred from the Active 
        component to the Reserve components of each Service.
            ``(3) Major items of equipment in the inventories of each 
        Reserve component which are substitutes for a required major 
        item of equipment.
            ``(4) A narrative explanation of the plan of the Secretary 
        concerned to equip each Reserve component, including an 
        explanation of the plan to equip units of the Reserve 
        components that are short major items of equipment at the 
        outset of war or a contingency operation.
            ``(5) A narrative discussing the current status of the 
        compatibility and interoperability of equipment between the 
        Reserve components and the active forces, the effect of that 
        level of compatibility or interoperability on combat 
        effectiveness, and a plan to achieve full equipment 
        compatibility and interoperability.
            ``(6) A narrative discussing modernization shortfalls and 
        maintenance backlogs within the Reserve components and the 
        effect of those shortfalls on combat effectiveness.
            ``(7) A narrative discussing the overall age and condition 
        of equipment currently in the inventory of each Reserve 
        component.
    ``(c) Each report under this section shall be expressed in the same 
format and with the same level of detail as the information presented 
in the Future Years Defense Program Procurement Annex prepared by the 
Department of Defense.''.

SEC. 812. ELIMINATION OF TRIENNIAL REPORT ON THE ROLES AND MISSIONS OF 
              THE ARMED FORCES.

    (a) Repeal of Requirement for Report on Assignment of Roles and 
Missions.--Section 153 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking the catchline and 
        section designator ``(a) Planning; Advice; Policy 
        Formulation.--''; and
            (2) by striking subsection (b).
    (b) Roles and Missions as Part of Defense Quadrennial Review.--
Subsection 118(e) of such title is amended by inserting after the first 
sentence the following two new sentences: ``The Chairman shall also 
include his assessment of the assignment of functions (or roles and 
missions) to the Armed Forces and recommendations for change the 
Chairman considers necessary to achieve the maximum efficiency of the 
Armed Forces. This roles and missions assessment should consider the 
unnecessary duplication of effort among the armed forces and changes in 
technology that can be applied effectively to warfare.''.

SEC. 813. CHANGE IN DUE DATE OF COMMERCIAL ACTIVITIES REPORT.

    Section 2461(g) of title 10, United States Code, is amended by 
striking ``February 1'' and inserting ``June 30''.

                       Subtitle C--Other Matters

SEC. 821. DOCUMENTS, HISTORICAL ARTIFACTS, AND OBSOLETE OR SURPLUS 
              MATERIEL: LOAN, DONATION, OR EXCHANGE.

    (a) In General.--Section 2572 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by striking ``subsection (c)'' and 
        inserting ``subsection (c)(1)'';
            (2) in subsection (b), by striking ``subsection (c)'' and 
        inserting ``subsection (c)(2)''; and
            (3) in subsection (c)--
                    (A) by striking ``(c) This section'' and inserting 
                ``(c)(1) Subsection (a)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Subsection (b) applies to the following types of 
        property held by a military department or the Coast Guard: 
        books, manuscripts, works of art, historical artifacts, 
        drawings, plans, models, and obsolete or surplus materiel.''.
    (b) Conforming Amendment.--The heading of such section is amended 
by striking ``condemned or obsolete combat'' and inserting ``obsolete 
or   surplus''.

SEC. 822. CHARTER AIR TRANSPORTATION OF MEMBERS OF THE ARMED FORCES.

    Section 2640 of title 10, United States Code, is amended--
            (1) in subsection (a)(1)(A), by striking ``an'' after 
        ``contract with'' and inserting ``a domestic or foreign'';
            (2) in subsection (b)(5), by striking ``check-rides'' and 
        inserting ``cockpit safety observations'';
            (3) in subsection (e), by striking ``Military Airlift 
        Command'' and inserting ``Air Mobility Command'';
            (4) in subsection (g), by striking ``in an emergency''; and
            (5) in subsection (j)(1), by striking ``air carrier,''

                      TITLE IX--GENERAL PROVISIONS

             Subtitle A--Matters Relating to Other Nations

SEC. 901. RECOGNITION OF ASSISTANCE FROM FOREIGN NATIONALS.

    (a) In General.--Chapter 57 of title 10, United States Code, is 
amended by inserting after section 1133 the following:
``Sec. 1134. Recognition of assistance from foreign nationals
    ``The Secretary of Defense may issue regulations, with the 
concurrence of the Secretary of State, authorizing members of the armed 
forces or civilian officers or employees of the Department of Defense 
to present to foreign nationals plaques, trophies, non-currency coins, 
certificates, and other suitable commemorative items or mementos to 
recognize achievements or performance, not involving combat, that 
assists the armed forces of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1133 the following new item:

``1134. Recognition of assistance from foreign nationals.''.

          Subtitle B--Department of Defense Civilian Personnel

SEC. 911. AUTHORITY FOR DESIGNATED CIVILIAN EMPLOYEES ABROAD TO ACT AS 
              A NOTARY.

    (a) Clarification of Status of Civilian Attorneys Acting as a 
Notary.--Section 1044a(b)(2) of title 10, United States Code, is 
amended by striking ``legal assistance officers'' and inserting ``legal 
assistance attorneys''.
    (b) Authority for Designated Civilian Employees Abroad To Act as a 
Notary.--Subsection (b)(4) of such section 1044a is amended by 
inserting ``and, when outside the United States, all civilian employees 
of the armed forces of suitable training,'' after ``duty status''.

SEC. 912. INAPPLICABILITY OF REQUIREMENT FOR STUDIES AND REPORTS WHEN 
              ALL DIRECTLY AFFECTED DEPARTMENT OF DEFENSE CIVILIAN 
              EMPLOYEES ARE REASSIGNED TO COMPARABLE FEDERAL POSITIONS.

    Section 2461 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(i) Inapplicability When All Directly Affected Department of 
Defense Civilian Employees Are Reassigned to Comparable Federal 
Positions.--The provisions of this section shall not apply when all 
directly affected Department of Defense civilian employees serving on 
permanent appointments are reassigned to comparable Federal positions 
for which they are qualified.''.

SEC. 913. PILOT PROGRAM FOR PAYMENT OF RETRAINING EXPENSES.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2410o. Pilot program for payment of retraining expenses
    ``(a) Authority.--The Secretary of Defense may establish a pilot 
program for the payment of retraining expenses in accordance with this 
section to facilitate the reemployment of eligible employees of the 
Department of Defense who are being involuntarily separated due to a 
reduction-in-force or due to relocation resulting from 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 employees.
    ``(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 of Defense for a continuous period of at least 12 months 
and who has been given notice of separation pursuant to a reduction in 
force, except that such term does not include--
            ``(1) a re-employed annuitant under subchapter III of 
        chapter 83 of title 5, chapter 84 of such title, or another 
        retirement system for employees of the Government;
            ``(2) an employee who, upon separation from Federal 
        service, is eligible for an immediate annuity under subchapter 
        III of chapter 83 of title 5 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) Retraining Incentive.--(1) Under the pilot program, the 
Secretary may enter into an agreement with a non-Federal employer under 
which the non-Federal employer agrees--
            ``(A) to employ an eligible person referred to in 
        subsection (a) for at least 12 months for a salary that is 
        mutually agreeable to the employer and such person; and
            ``(B) to certify to the Secretary the cost incurred by the 
        employer for any necessary training, as defined by the 
        Secretary, provided to such eligible employee in connection 
        with the employment by that employer.
    ``(2) 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. Subject to this section, the 
Secretary shall prescribe the amount of the incentive.
    ``(3) The Secretary may pay a prorated amount of the full 
retraining incentive to the non-Federal employer for an employee who 
does not remain employed by the non-Federal employer for at least 12 
months.
    ``(4) In no event may the amount of retraining incentive paid for 
the training of any one person under the pilot program exceed the 
amount certified for that person under paragraph (1) or $10,000, 
whichever is greater.
    ``(d) Duration.--No incentive may be paid under the pilot program 
for training commenced after September 30, 2005.
    ``(e) 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, or the legislative or judicial branch of the Federal 
        Government.
            ``(2) The terms `reduction-in-force' and `transfer of 
        function' shall have the same meaning as in chapter 35 of title 
        5.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2410o. Pilot program for payment of retraining expenses.''.

                       Subtitle C--Other Matters

SEC. 921. AUTHORITY TO ENSURE DEMILITARIZATION OF SIGNIFICANT MILITARY 
              EQUIPMENT FORMERLY OWNED BY THE DEPARTMENT OF DEFENSE.

    (a) In General.--Chapter 153 of title 10, United States Code, is 
amended by inserting after section 2572 the following new section:
``Sec. 2573. Continued authority to require demilitarization of 
              significant military equipment after disposal
    ``(a) Authority To Require Demilitarization.--The Secretary of 
Defense may require any person in possession of significant military 
equipment formerly owned by the Department of Defense--
            ``(1) to demilitarize the equipment:
            ``(2) to have the equipment demilitarized by a third party; 
        or
            ``(3) to return the equipment to the Government for 
        demilitarization.
    ``(b) Cost and Validation of Demilitarization.--When the 
demilitarization of significant military equipment is carried out by 
the person in possession of the equipment pursuant to paragraph (1) or 
(2) of subsection (a), the person shall be solely responsible for all 
demilitarization costs, and the United States shall have the right to 
validate that the equipment has been demilitarized.
    ``(c) Return of Equipment to Government.--When the Secretary of 
Defense requires the return of significant military equipment for 
demilitarization by the Government, the Secretary shall bear all costs 
to transport and demilitarize the equipment. If the person in 
possession of the significant military equipment obtained the property 
in the manner authorized by law or regulation and the Secretary 
determines that the cost to demilitarize and return the property to the 
person is prohibitive, the Secretary shall reimburse the person for the 
purchase cost of the property and for the reasonable transportation 
costs incurred by the person to purchase the equipment.
    ``(d) Establishment of Demilitarization Standards.--The Secretary 
shall issue regulations to prescribe what constitutes demilitarization 
for each type of significant military equipment, with the objective of 
ensuring that the equipment does not pose a significant risk to public 
safety and does not provide a significant weapon capability or 
military-unique capability and ensure that any person from whom private 
property is taken for public use under this section receives just 
compensation.
    ``(e) Exceptions.--This section does not apply--
            ``(1) when a person is in possession of significant 
        military equipment formerly owned by the Department of Defense 
        for the purpose of demilitarizing the equipment pursuant to a 
        Government contract.
            ``(2) to small arms weapons issued under the Defense 
        Civilian Marksmanship Program established in Title 36, United 
        States Code.
            ``(3) to issues by the Department of Defense to museums 
        where modified demilitarization has been performed in 
        accordance with the Department of Defense Demilitarization 
        Manual, DoD 4160.21-M-1; or
            ``(4) to other issues and undemilitarized significant 
        military equipment under the provisions of the provisions of 
        the Department of Defense Demilitarization Manual, DoD 4160.21-
        M-1.
    ``(f) Definition of Significant Military Equipment.--In this 
section, the term `significant military equipment' means--
            ``(1) an article for which special export controls are 
        warranted under the Arms Export Control Act (22 U.S.C. 2751 et 
        seq.) because of its capacity for substantial military utility 
        or capability, as identified on the United States Munitions 
        List maintained under section 121.1 of title 22, Code of 
        Federal Regulations; and
            (2) any other article designated by the Department of 
        Defense as requiring demilitarization before its disposal.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2572 the following new item:

``2573. Continued authority to require demilitarization of significant 
                            military equipment after disposal.''.

SEC. 922. DEPARTMENT OF DEFENSE GIFT INITIATIVES.

    (a) Loan or Gift of Obsolete Material and Articles of Historical 
Interest.--Section 7545 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting the following catchline after the 
                subsection designator: ``Additional Items To Be Donated 
                by the Secretary of the Navy.--'';
                    (B) by striking ``books, manuscripts, works of art, 
                drawings,'' and all that follows to the dash and 
                inserting ``obsolete combat or shipboard material not 
                needed by the Department of the Navy, to'';
                    (C) in paragraph (5), by striking ``World War I or 
                World War II'' and inserting ``a foreign war'';
                    (D) in paragraph (6), by striking ``soldiers'' and 
                inserting ``servicemen's''; and
                    (E) in paragraph (8), by inserting ``or memorial'' 
                after ``a museum''; and
            (2) in subsection (b), by inserting the following catchline 
        after the subsection designator: ``Maintenance of the Records 
        of the Government.--'';
            (3) in subsection (c), by inserting the following catchline 
        after the subsection designator: ``Secretarial Authority To 
        Make Gifts or Loans.--''; and
            (4) by adding at the end the following new subsection:
    ``(d) 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 listed under 
subsection (a). The terms and conditions of any 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.''.
    (b) Loan, Gift, or Exchange of Documents, Historical Artifacts, and 
Condemned or Obsolete, Combat Material.--Section 2572(a)(1) of such 
title 10 is amended by striking the period after ``A municipal 
corporation'' and inserting county or other political subdivision of a 
state.''.

SEC. 923. REPEAL OF THE JOINT REQUIREMENTS OVERSIGHT COUNCIL SEMI-
              ANNUAL REPORT.

     Section 916 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (Public Law 106-398; 114 Stat. 1654) is 
repealed.
                                 <all>