[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1419 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
107th CONGRESS
  1st Session
                                S. 1419

_______________________________________________________________________

                                 AN ACT


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of 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.
Sec. 3. Congressional defense committees defined.
                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical agents and munitions destruction, Defense.
Sec. 107. Defense health programs.
                       Subtitle B--Army Programs

                               (Reserved)

                       Subtitle C--Navy Programs

Sec. 121. Virginia class submarine program.
Sec. 122. Multiyear procurement authority for F/A-18E/F aircraft 
                            engines.
Sec. 123. V-22 Osprey aircraft program.
Sec. 124. Additional matter relating to V-22 Osprey aircraft.
                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-17 aircraft.
                       Subtitle E--Other Matters

Sec. 141. Extension of pilot program on sales of manufactured articles 
                            and services of certain Army industrial 
                            facilities without regard to availability 
                            from domestic sources.
Sec. 142. Procurement of additional M291 skin decontamination kits.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic and applied research.
Sec. 203. Authorization of additional funds.
Sec. 204. Funding for Special Operations Forces Command, Control, 
                            Communications, Computers, and Intelligence 
                            Systems Threat Warning and Situational 
                            Awareness program.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. F-22 aircraft program.
Sec. 212. C-5 aircraft reliability enhancement and reengining.
Sec. 213. Review of alternatives to the V-22 Osprey aircraft.
Sec. 214. Joint biological defense program.
Sec. 215. Report on V-22 Osprey aircraft before decision to resume 
                            flight testing.
Sec. 216. Big Crow Program and Defense Systems Evaluation program.
                       Subtitle C--Other Matters

Sec. 231. Technology Transition Initiative.
Sec. 232. Communication of safety concerns between operational testing 
                            and evaluation officials and program 
                            managers.
Sec. 233. Supplemental Authorization of Appropriations for Fiscal Year 
                            2001 for Research, Development, Test, and 
                            Evaluation Defense-wide.
                  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. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 305. Amount for impact aid for children with severe disabilities.
Sec. 306. Improvements in instrumentation and targets at Army live fire 
                            training ranges.
Sec. 307. Environmental Restoration, Formerly Used Defense Sites.
Sec. 308. Authorization of additional funds.
Sec. 309. Funds for renovation of Department of Veterans Affairs 
                            facilities adjacent to Naval Training 
                            Center, Great Lakes, Illinois.
                  Subtitle B--Environmental Provisions

Sec. 311. Establishment in environmental restoration accounts of sub-
                            accounts for unexploded ordnance and 
                            related constituents.
Sec. 312. Assessment of environmental remediation of unexploded 
                            ordnance and related constituents.
Sec. 313. Department of Defense energy efficiency program.
Sec. 314. Extension of pilot program for sale of air pollution emission 
                            reduction incentives.
Sec. 315. Reimbursement of Environmental Protection Agency for certain 
                            response costs in connection with Hooper 
                            Sands Site, South Berwick, Maine.
Sec. 316. Conformity of surety authority under environmental 
                            restoration program with surety authority 
                            under superfund.
Sec. 317. Procurement of alternative fueled and hybrid electric light 
                            duty trucks.
  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Rebate agreements with producers of foods provided under the 
                            special supplemental food program.
Sec. 322. Reimbursement for use of commissary facilities by military 
                            departments for purposes other than 
                            commissary sales.
Sec. 323. Public releases of commercially valuable information of 
                            commissary stores.
                       Subtitle D--Other Matters

Sec. 331. Codification of authority for Department of Defense support 
                            for counterdrug activities of other 
                            governmental agencies.
Sec. 332. Exclusion of certain expenditures from limitation on private 
                            sector performance of depot-level 
                            maintenance.
Sec. 333. Repair, restoration, and preservation of Lafayette Escadrille 
                            Memorial, Marnes la-Coquette, France.
Sec. 334. Implementation of the Navy-Marine Corps Intranet contract.
Sec. 335. Revision of authority to waive limitation on performance of 
                            depot-level maintenance.
Sec. 336. Reauthorization of warranty claims recovery pilot program.
Sec. 337. Funding for land forces readiness-information operations 
                            sustainment.
Sec. 338. Defense Language Institute Foreign Language Center expanded 
                            Arabic language program.
Sec. 339. Consequence management training.
Sec. 340. Critical infrastructure protection initiative of the Navy.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Authorized daily average active duty strength for Navy 
                            enlisted members in pay grade E-8.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.
Sec. 415. Limitations on numbers of reserve personnel serving on active 
                            duty or full-time National Guard duty in 
                            certain grades for administration of 
                            reserve components.
Sec. 416. Strength and grade limitation accounting for reserve 
                            component members on active duty in support 
                            of a contingency operation.
              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. General officer positions.
Sec. 502. Reduction of time-in-grade requirement for eligibility for 
                            promotion of first lieutenants and 
                            lieutenants (junior grade).
Sec. 503. Promotion of officers to the grade of captain in the Army, 
                            Air Force, or Marine Corps or to the grade 
                            of lieutenant in the Navy without selection 
                            board action.
Sec. 504. Authority to adjust date of rank.
Sec. 505. Extension of deferments of retirement or separation for 
                            medical reasons.
Sec. 506. Exemption from administrative limitations of retired members 
                            ordered to active duty as defense and 
                            service attaches.
Sec. 507. Certifications of satisfactory performance for retirements of 
                            officers in grades above major general and 
                            rear admiral.
Sec. 508. Effective date of mandatory separation or retirement of 
                            regular officer delayed by a suspension of 
                            certain laws under emergency authority of 
                            the President.
Sec. 509. Detail and grade of officer in charge of the United States 
                            Navy Band.
             Subtitle B--Reserve Component Personnel Policy

Sec. 511. Reauthorization and expansion of temporary waiver of the 
                            requirement for a baccalaureate degree for 
                            promotion of certain reserve officers of 
                            the Army.
Sec. 512. Status list of reserve officers on active duty for a period 
                            of three years or less.
Sec. 513. Equal treatment of Reserves and full-time active duty members 
                            for purposes of managing deployments of 
                            personnel.
Sec. 514. Modification of physical examination requirements for members 
                            of the Individual Ready Reserve.
Sec. 515. Members of reserve components afflicted while remaining 
                            overnight at duty station within commuting 
                            distance of home.
Sec. 516. Retirement of reserve personnel without request.
Sec. 517. Space-required travel by Reserves on military aircraft.
                   Subtitle C--Education and Training

Sec. 531. Improved benefits under the Army College First program.
Sec. 532. Repeal of limitation on number of Junior Reserve Officers' 
                            Training Corps units.
Sec. 533. Acceptance of fellowships, scholarships, or grants for legal 
                            education of officers participating in the 
                            funded legal education program.
Sec. 534. Grant of degree by Defense Language Institute Foreign 
                            Language Center.
Sec. 535. Authority for the Marine Corps University to award the degree 
                            of master of strategic studies.
Sec. 536. Foreign persons attending the service academies.
Sec. 537. Expansion of financial assistance program for health-care 
                            professionals in reserve components to 
                            include students in programs of education 
                            leading to initial degree in medicine or 
                            dentistry.
Sec. 538. Pilot program for Department of Veterans Affairs support for 
                            graduate medical education and training of 
                            medical personnel of the Armed Forces.
Sec. 539. Transfer of entitlement to educational assistance under 
                            Montgomery GI Bill by members of the Armed 
                            Forces with critical military skills.
Sec. 540. Participation of regular members of the Armed Forces in the 
                            Senior Reserve Officers' Training Corps.
           Subtitle D--Decorations, Awards, and Commendations

Sec. 551. Authority for award of the Medal of Honor to Humbert R. 
                            Versace for valor during the Vietnam War.
Sec. 552. Review regarding award of Medal of Honor to certain Jewish 
                            American war veterans.
Sec. 553. Issuance of duplicate and replacement Medals of Honor.
Sec. 554. Waiver of time limitations for award of certain decorations 
                            to certain persons.
Sec. 555. Sense of Senate on issuance of Korea Defense Service Medal.
Sec. 556. Retroactive Medal of Honor special pension.
                    Subtitle E--Funeral Honors Duty

Sec. 561. Active duty end strength exclusion for Reserves on active 
                            duty or full-time National Guard duty for 
                            funeral honors duty.
Sec. 562. Participation of retirees in funeral honors details.
Sec. 563. Benefits and protections for members in a funeral honors duty 
                            status.
Sec. 564. Military leave for civilian employees serving as military 
                            members of funeral honors detail.
             Subtitle F--Uniformed Services Overseas Voting

Sec. 571. Sense of the Senate regarding the importance of voting by 
                            members of the uniformed services.
Sec. 572. Standard for invalidation of ballots cast by absent uniformed 
                            services voters in Federal elections.
Sec. 573. Guarantee of residency for military personnel.
Sec. 574. Extension of registration and balloting rights for absent 
                            uniformed services voters to State and 
                            local elections.
Sec. 575. Use of single application as a simultaneous absentee voter 
                            registration application and absentee 
                            ballot application.
Sec. 576. Use of single application for absentee ballots for all 
                            Federal elections.
Sec. 577. Electronic voting demonstration project.
Sec. 578. Federal voting assistance program.
Sec. 579. Maximization of access of recently separated uniformed 
                            services voters to the polls.
Sec. 580. Governors' reports on implementation of Federal voting 
                            assistance program recommendations.
                       Subtitle G--Other Matters

Sec. 581. Persons authorized to be included in surveys of military 
                            families regarding Federal programs.
Sec. 582. Correction and extension of certain Army recruiting pilot 
                            program authorities.
Sec. 583. Offense of drunken operation of a vehicle, aircraft, or 
                            vessel under the Uniform Code of Military 
                            Justice.
Sec. 584. Authority of civilian employees to act as notaries.
Sec. 585. Review of actions of selection boards.
Sec. 586. Acceptance of voluntary legal assistance for the civil 
                            affairs of members and former members of 
                            the uniformed services and their 
                            dependents.
Sec. 587. Extension of Defense Task Force on Domestic Violence.
Sec. 588. Transportation to annual meeting of next-of-kin of persons 
                            unaccounted for from conflicts after World 
                            War II.
Sec. 589. Report on health and disability benefits for pre-accession 
                            training and education programs.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2002.
Sec. 602. Basic pay rate for certain reserve commissioned officers with 
                            prior service as an enlisted member or 
                            warrant officer.
Sec. 603. Reserve component compensation for distributed learning 
                            activities performed as inactive-duty 
                            training.
Sec. 604. Clarifications for transition to reformed basic allowance for 
                            subsistence.
Sec. 605. Increase of basic allowance for housing in the United States.
Sec. 606. Clarification of eligibility for supplemental subsistence 
                            allowance.
Sec. 607. Correction of limitation on additional uniform allowance for 
                            officers.
Sec. 608. Payment for unused leave in excess of 60 days accrued by 
                            members of reserve components on active 
                            duty for one year or less.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses and special pay authorities for 
                            reserve forces.
Sec. 612. Extension of certain bonuses and special pay authorities for 
                            nurse officer candidates, registered 
                            nurses, and nurse anesthetists.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
                            officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
                            and special pays.
Sec. 615. Hazardous duty pay for members of maritime visit, board, 
                            search, and seizure teams.
Sec. 616. Submarine duty incentive pay rates.
Sec. 617. Career sea pay.
Sec. 618. Modification of eligibility requirements for Individual Ready 
                            Reserve bonus for reenlistment, enlistment, 
                            or extension of enlistment.
Sec. 619. Accession bonus for officers in critical skills.
Sec. 620. Modification of the nurse officer candidate accession program 
                            restriction on students attending civilian 
                            educational institutions with Senior 
                            Reserve Officers' Training Programs.
Sec. 621. Eligibility for certain career continuation bonuses for early 
                            commitment to remain on active duty.
Sec. 622. Hostile fire or imminent danger pay.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Eligibility for temporary housing allowance while in travel 
                            or leave status between permanent duty 
                            stations.
Sec. 632. Eligibility for payment of subsistence expenses associated 
                            with occupancy of temporary lodging 
                            incident to reporting to first permanent 
                            duty station.
Sec. 633. Eligibility for dislocation allowance.
Sec. 634. Allowance for dislocation for the convenience of the 
                            Government at home station.
Sec. 635. Travel and transportation allowances for family members to 
                            attend the burial of a deceased member of 
                            the uniformed services.
Sec. 636. Family separation allowance for members electing 
                            unaccompanied tour by reason of health 
                            limitations of dependents.
Sec. 637. Funded student travel for foreign study under an education 
                            program approved by a United States school.
Sec. 638. Transportation or storage of privately owned vehicles on 
                            change of permanent station.
    Subtitle D--Matters Relating to Retirement and Survivor Benefits

Sec. 651. Payment of retired pay and compensation to disabled military 
                            retirees.
Sec. 652. SBP eligibility of survivors of retirement-ineligible members 
                            of the uniformed services who die while on 
                            active duty.
                       Subtitle E--Other Matters

Sec. 661. Education savings plan for reenlistments and extensions of 
                            service in critical specialties.
Sec. 662. Commissary benefits for new members of the Ready Reserve.
Sec. 663. Authorization of transitional compensation and commissary and 
                            exchange benefits for dependents of 
                            commissioned officers of the Public Health 
                            Service and the National Oceanic and 
                            Atmospheric Administration who are 
                            separated for dependent abuse.
             Subtitle F--National Emergency Family Support

Sec. 681. Child care and youth assistance.
Sec. 682. Family education and support services.
                         TITLE VII--HEALTH CARE

               Subtitle A--TRICARE Benefits Modernization

Sec. 701. Requirement for integration of benefits.
Sec. 702. Domiciliary and custodial care.
Sec. 703. Long term care.
Sec. 704. Extended benefits for disabled beneficiaries.
Sec. 705. Conforming repeals.
Sec. 706. Prosthetics and hearing aids.
Sec. 707. Durable medical equipment.
Sec. 708. Rehabilitative therapy.
Sec. 709. Mental health benefits.
Sec. 710. Effective date.
                       Subtitle B--Other Matters

Sec. 711. Repeal of requirement for periodic screenings and 
                            examinations and related care for members 
                            of Army Reserve units scheduled for early 
                            deployment.
Sec. 712. Clarification of eligibility for reimbursement of travel 
                            expenses of adult accompanying patient in 
                            travel for specialty care.
Sec. 713. TRICARE program limitations on payment rates for 
                            institutional health care providers and on 
                            balance billing by institutional and 
                            noninstitutional health care providers.
Sec. 714. Two-year extension of health care management demonstration 
                            program.
Sec. 715. Study of health care coverage of members of the Selected 
                            Reserve.
Sec. 716. Study of adequacy and quality of health care provided to 
                            women under the defense health program.
Sec. 717. Pilot program for Department of Veterans Affairs support for 
                            Department of Defense in the performance of 
                            separation physical examinations.
Sec. 718. Modification of prohibition on requirement of nonavailability 
                            statement or preauthorization.
Sec. 719. Transitional health care to members separated from active 
                            duty.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

         Subtitle A--Procurement Management and Administration

Sec. 801. Management of procurements of services.
Sec. 802. Savings goals for procurements of services.
Sec. 803. Competition requirement for purchases pursuant to multiple 
                            award contracts.
Sec. 804. Risk reduction at initiation of major defense acquisition 
                            program.
Sec. 805. Follow-on production contracts for products developed 
                            pursuant to prototype projects.
         Subtitle B--Defense Acquisition and Support Workforce

Sec. 811. Report on implementation of recommendations of the 
                            Acquisition 2005 Task Force.
Sec. 812. Moratorium on reduction of the defense acquisition and 
                            support workforce.
Sec. 813. Revision of acquisition workforce qualification requirements.
                  Subtitle C--Use of Preferred Sources

Sec. 821. Applicability of competition requirements to purchases from a 
                            required source.
Sec. 822. Consolidation of contract requirements.
Sec. 823. Codification and continuation of Mentor-Protege Program as 
                            permanent program.
Sec. 824. Hubzone small business concerns.
Subtitle D--Amendments to General Contracting Authorities, Procedures, 
                          and Related Matters

Sec. 831. Amendments to conform with administrative changes in 
                            acquisition phase and milestone terminology 
                            and to make related adjustments in certain 
                            requirements applicable at milestone 
                            transition points.
Sec. 832. Inapplicability of limitation to small purchases of miniature 
                            or instrument ball or roller bearings under 
                            certain circumstances.
Sec. 833. Insensitive munitions program.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                Subtitle A--Organization and Management

Sec. 901. Deputy Under Secretary of Defense for Personnel and 
                            Readiness.
Sec. 902. Responsibility of Under Secretary of the Air Force for 
                            acquisition of space launch vehicles and 
                            services.
Sec. 903. Sense of Congress regarding the selection of officers for 
                            assignment as the Commander in Chief, 
                            United States Transportation Command.
Sec. 904. Organizational realignment for Navy Director for 
                            Expeditionary Warfare.
Sec. 905. Revised requirements for content of annual report on joint 
                            warfighting experimentation.
Sec. 906. Suspension of reorganization of engineering and technical 
                            authority policy within the Naval Sea 
                            Systems Command.
Sec. 907. Conforming amendments relating to change of name of Air 
                            Mobility Command.
      Subtitle B--Organization and Management of Space Activities

Sec. 911. Establishment of position of Under Secretary of Defense for 
                            Space, Intelligence, and Information.
Sec. 912. Responsibility for space programs.
Sec. 913. Major force program category for space programs.
Sec. 914. Assessment of implementation of recommendations of Commission 
                            To Assess United States National Security 
                            Space Management and Organization.
Sec. 915. Grade of commander of Air Force Space Command.
Sec. 916. Sense of Congress regarding grade of officer assigned as 
                            Commander of United States Space Command.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Reduction in authorizations of appropriations for Department 
                            of Defense for management efficiencies.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
                            2001.
Sec. 1004. United States contribution to NATO common-funded budgets in 
                            fiscal year 2002.
Sec. 1005. Clarification of applicability of interest penalties for 
                            late payment of interim payments due under 
                            contracts for services.
Sec. 1006. Reliability of Department of Defense financial statements.
Sec. 1007. Financial Management Modernization Executive Committee and 
                            financial feeder systems compliance 
                            process.
Sec. 1008. Combating Terrorism Readiness Initiatives Fund for combatant 
                            commands.
Sec. 1009. Authorization of additional funds.
Sec. 1010. Authorization of 2001 Emergency Supplemental Appropriations 
                            Act for recovery from and response to 
                            terrorist attacks on the United States.
                      Subtitle B--Strategic Forces

Sec. 1011. Repeal of limitation on retirement or dismantlement of 
                            strategic nuclear delivery systems.
Sec. 1012. Bomber force structure.
Sec. 1013. Additional element for revised nuclear posture review.
                   Subtitle C--Reporting Requirements

Sec. 1021. Information and recommendations on congressional reporting 
                            requirements applicable to the Department 
                            of Defense.
Sec. 1022. Report on combating terrorism.
Sec. 1023. Revised requirement for Chairman of the Joint Chiefs of 
                            Staff to advise Secretary of Defense on the 
                            assignment of roles and missions to the 
                            Armed Forces.
Sec. 1024. Revision of deadline for annual report on commercial and 
                            industrial activities.
Sec. 1025. Production and acquisition of vaccines for defense against 
                            biological warfare agents.
Sec. 1026. Extension of times for Commission on the Future of the 
                            United States Aerospace Industry to report 
                            and to terminate.
Sec. 1027. Comptroller General study and report on interconnectivity of 
                            National Guard Distributive Training 
                            Technology Project networks and related 
                            public and private networks.
                Subtitle D--Armed Forces Retirement Home

Sec. 1041. Amendment of Armed Forces Retirement Home Act of 1991.
Sec. 1042. Definitions.
Sec. 1043. Revision of authority establishing the Armed Forces 
                            Retirement Home.
Sec. 1044. Chief Operating Officer.
Sec. 1045. Residents of Retirement Home.
Sec. 1046. Local boards of trustees.
Sec. 1047. Directors, Deputy Directors, and staff of facilities.
Sec. 1048. Disposition of effects of deceased persons and unclaimed 
                            property.
Sec. 1049. Transitional provisions.
Sec. 1050. Conforming and clerical amendments and repeals of obsolete 
                            provisions.
Sec. 1051. Amendments of other laws.
                       Subtitle E--Other Matters

Sec. 1061. Requirement to conduct certain previously authorized 
                            educational programs for children and 
                            youth.
Sec. 1062. Authority to ensure demilitarization of significant military 
                            equipment formerly owned by the Department 
                            of Defense.
Sec. 1063. Conveyances of equipment and related materials loaned to 
                            State and local governments as assistance 
                            for emergency response to a use or 
                            threatened use of a weapon of mass 
                            destruction.
Sec. 1064. Authority to pay gratuity to members of the Armed Forces and 
                            civilian employees of the United States for 
                            slave labor performed for Japan during 
                            World War II.
Sec. 1065. Retention of travel promotional items.
Sec. 1066. Radiation Exposure Compensation Act mandatory 
                            appropriations.
Sec. 1067. Leasing of Navy ships for University National Oceanographic 
                            Laboratory System.
Sec. 1068. Small business procurement competition.
Sec. 1069. Chemical and biological protective equipment for military 
                            and civilian personnel of the Department of 
                            Defense.
Sec. 1070. Authorization of the sale of goods and services by the Naval 
                            Magazine, Indian Island.
Sec. 1071. Assistance for firefighters.
Sec. 1072. Plan to ensure embarkation of civilian guests does not 
                            interfere with operational readiness and 
                            safe operation of Navy vessels.
Sec. 1073. Modernizing and enhancing missile wing helicopter support--
                            study and plan.
Sec. 1074. Sense of the Senate that the Secretary of the Treasury 
                            should immediately issue savings bonds, to 
                            be designated as ``Unity Bonds'', in 
                            response to the terrorist attacks against 
                            the United States on September 11, 2001.
Sec. 1075. Personnel pay and qualifications authority for Department of 
                            Defense Pentagon Reservation civilian law 
                            enforcement and security force.
Sec. 1076. Waiver of vehicle weight limits during periods of national 
                            emergency.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

                   Subtitle A--Intelligence Personnel

Sec. 1101. Authority to increase maximum number of positions in the 
                            Defense Intelligence Senior Executive 
                            Service.
Sec. 1102. Continued applicability of certain civil service protections 
                            for employees integrated into the National 
                            Imagery and Mapping Agency from the Defense 
                            Mapping Agency.
               Subtitle B--Matters Relating to Retirement

Sec. 1111. Federal employment retirement credit for nonappropriated 
                            fund instrumentality service.
Sec. 1112. Improved portability of retirement coverage for employees 
                            moving between civil service employment and 
                            employment by nonappropriated fund 
                            instrumentalities.
Sec. 1113. Repeal of limitations on exercise of voluntary separation 
                            incentive pay authority and voluntary early 
                            retirement authority.
                       Subtitle C--Other Matters

Sec. 1121. Housing allowance for the chaplain for the Corps of Cadets 
                            at the United States Military Academy.
Sec. 1122. Study of adequacy of compensation provided for teachers in 
                            the Department of Defense overseas 
                            dependents' schools.
Sec. 1123. Pilot program for payment of retraining expenses incurred by 
                            employers of persons involuntarily 
                            separated from employment by the Department 
                            of Defense.
Sec. 1124. Participation of personnel in technical standards 
                            development activities.
Sec. 1125. Authority to exempt certain health care professionals from 
                            examination for appointment in the 
                            competitive civil service.
Sec. 1126. Professional credentials.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

  Subtitle A--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

Sec. 1201. Specification of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1202. Funding allocations.
Sec. 1203. Chemical weapons destruction.
Sec. 1204. Management of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1205. Additional matter in annual report on activities and 
                            assistance under Cooperative Threat 
                            Reduction programs.
                       Subtitle B--Other Matters

Sec. 1211. Support of United Nations-sponsored efforts to inspect and 
                            monitor Iraqi weapons activities.
Sec. 1212. Cooperative research and development projects with NATO and 
                            other countries.
Sec. 1213. International cooperative agreements on use of ranges and 
                            other facilities for testing of defense 
                            equipment.
Sec. 1214. Clarification of authority to furnish nuclear test 
                            monitoring equipment to foreign 
                            governments.
Sec. 1215. Participation of government contractors in chemical weapons 
                            inspections at United States Government 
                            facilities under the Chemical Weapons 
                            Convention.
Sec. 1216. Authority to transfer naval vessels to certain foreign 
                            countries.
Sec. 1217. Acquisition of logistical support for security forces.
Sec. 1218. Personal services contracts to be performed by individuals 
                            or organizations abroad.
Sec. 1219. Allied defense burdensharing.
Sec. 1220. Release of restriction on use of certain vessels previously 
                            authorized to be sold.
         TITLE XIII--CONTINGENT AUTHORIZATION OF APPROPRIATIONS

Sec. 1301. Authorization of appropriations contingent on increased 
                            allocation of new budget authority.
Sec. 1302. Reductions.
Sec. 1303. Reference to Concurrent Resolution on the Budget for Fiscal 
                            Year 2002.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for procurement for the Army as follows:
            (1) For aircraft, $2,123,391,000.
            (2) For missiles, $1,807,384,000.
            (3) For weapons and tracked combat vehicles, 
        $2,276,746,000.
            (4) For ammunition, $1,187,565,000.
            (5) For other procurement, $4,024,486,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2002 for procurement for the Navy as follows:
            (1) For aircraft, $8,169,043,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,503,475,000.
            (3) For shipbuilding and conversion, $9,522,121,000.
            (4) For other procurement, $4,293,476,000.
    (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 the Marine Corps in the amount of $476,099,000.

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, $10,892,957,000.
            (2) For ammunition, $885,344,000.
            (3) For missiles, $3,286,136,000.
            (4) For other procurement, $8,081,721,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for Defense-wide procurement in the amount of $1,594,325,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for procurement for the Inspector General of the Department of Defense 
in the amount of $2,800,000.

SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

    There is hereby authorized to be appropriated for the Office of the 
Secretary of Defense for fiscal year 2002 the amount of $1,153,557,000 
for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 107. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $267,915,000.

                       Subtitle B--Army Programs

                               (Reserved)

                       Subtitle C--Navy Programs

SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

    Section 123(b)(1) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-25) is amended--
            (1) by striking ``five Virginia class submarines'' and 
        inserting ``seven Virginia class submarines''; and
            (2) by striking ``through 2006'' and inserting ``2007''.

SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR 
              F/A-18E/F AIRCRAFT ENGINES.

    Beginning with the 2002 program year, the Secretary of the Navy 
may, in accordance with section 2306b of title 10, United States Code, 
enter into a multiyear contract for the procurement of engines for F/A-
18E/F aircraft.

SEC. 123. V-22 OSPREY AIRCRAFT PROGRAM.

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

SEC. 124. ADDITIONAL MATTER RELATING TO V-22 OSPREY AIRCRAFT.

    Not later than 30 days before the recommencement of flights of the 
V-22 Osprey aircraft, the Secretary of Defense shall submit to Congress 
notice of the waiver, if any, of any item capability or any other 
requirement specified in the Joint Operational Requirements Document 
for the V-22 Osprey aircraft, including a justification of each such 
waiver.

                     Subtitle D--Air Force Programs

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

    Beginning with the 2002 program year, the Secretary of the Air 
Force may, in accordance with section 2306b of title 10, United States 
Code, enter into a multiyear contract for the procurement of up to 60 
C-17 aircraft.

                       Subtitle E--Other Matters

SEC. 141. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES 
              AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES 
              WITHOUT REGARD TO AVAILABILITY FROM DOMESTIC SOURCES.

    Section 141(a) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note) is amended by 
striking ``through 2001'' and inserting ``through 2002''.

SEC. 142. PROCUREMENT OF ADDITIONAL M291 SKIN DECONTAMINATION KITS.

    (a) Increase in Authorization of Appropriations for Defense-Wide 
Procurement.--(1) The amount authorized to be appropriated by section 
104 for Defense-wide procurement is hereby increased by $2,400,000, 
with the amount of the increase available for the Navy for procurement 
of M291 skin decontamination kits.
    (2) The amount available under paragraph (1) for procurement of 
M291 skin decontamination kits is in addition to any other amounts 
available under this Act for procurement of M291 skin decontamination 
kits.
    (b) Offset.--The amount authorized to be appropriated by section 
201(4) for research, development, test, and evaluation, Defense-wide, 
is hereby decreased by $2,400,000, with the amount to be derived from 
the amount available for the Technical Studies, Support and Analysis 
program.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2002 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $6,899,170,000.
            (2) For the Navy, $11,134,806,000.
            (3) For the Air Force, $14,459,457,000.
            (4) For Defense-wide activities, $14,099,702,000, of which 
        $221,355,000 is authorized for the Director of Operational Test 
        and Evaluation.
            (5) For the Defense Health Program, $65,304,000.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

    (a) Fiscal Year 2002.--Of the amounts authorized to be appropriated 
by section 201, $5,093,605,000 shall be available for basic research 
and applied research projects.
    (b) Basic Research and Applied Research Defined.--For purposes of 
this section, the term ``basic research and applied research'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1 or 6.2.

SEC. 203. AUTHORIZATION OF ADDITIONAL FUNDS.

    (a) Authorization.--The amount authorized to be appropriated in 
section 201(1) is increased by $2,500,000 in PE62303A214 for Enhanced 
Scramjet Mixing.
    (b) Offset.--The amount authorized to be appropriated by section 
301(5) is reduced by $2,500,000.

SEC. 204. FUNDING FOR SPECIAL OPERATIONS FORCES COMMAND, CONTROL, 
              COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE SYSTEMS 
              THREAT WARNING AND SITUATIONAL AWARENESS PROGRAM.

    (a) Increased Authorization of Appropriations for Research, 
Development, Test, and Evaluation, Defense-Wide.--The amount authorized 
to be appropriated by section 201(4) for research, development, test, 
and evaluation, Defense-wide, is hereby increased by $2,800,000.
    (b) Availability.--Of the amount authorized to be appropriated by 
section 201(4), as increased by subsection (a), $2,800,000 may be 
available for the Special Operations Forces Command, Control, 
Communications, Computers, and Intelligence Systems Threat Warning and 
Situational Awareness (PRIVATEER) program (PE1160405BB).
    (c) Offset.--The amount authorized to be appropriated by section 
301(5) for operation and maintenance for Defense-wide activities is 
hereby reduced by $2,800,000.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. F-22 AIRCRAFT PROGRAM.

    (a) Repeal of Limitations on Total Cost of Engineering and 
Manufacturing Development.--The following provisions of law are 
repealed:
            (1) Section 217(a) of the National Defense Authorization 
        Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1660).
            (2) Section 8125 of the Department of Defense 
        Appropriations Act, 2001 (Public Law 106-259; 114 Stat. 702).
            (3) Section 219(b) of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into law by 
        Public Law 106-398; 114 Stat. 1654A-38).
    (b) Conforming Amendments.--(1) Section 217 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1660) is amended--
            (A) in subsection (c)--
                    (i) by striking ``limitations set forth in 
                subsections (a) and (b)'' and inserting ``limitation 
                set forth in subsection (b)''; and
                    (ii) by striking paragraph (3); and
            (B) in subsection (d)(2), by striking subparagraphs (D) and 
        (E).
    (2) Section 131 of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 536) is amended--
            (A) in subsection (a), by striking paragraph (2) and 
        inserting the following:
            ``(2) That the production phase for that program can be 
        executed within the limitation on total cost applicable to that 
        program under section 217(b) of the National Defense 
        Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
        Stat. 1660).''; and
            (B) in subsection (b)(3), by striking ``for the remainder 
        of the engineering and manufacturing development phase and''.

SEC. 212. C-5 AIRCRAFT RELIABILITY ENHANCEMENT AND REENGINING.

    The Secretary of the Air Force shall ensure that engineering 
manufacturing and development under the C-5 aircraft reliability 
enhancement and reengining program includes kit development for an 
equal number of C-5A and C-5B aircraft.

SEC. 213. REVIEW OF ALTERNATIVES TO THE V-22 OSPREY AIRCRAFT.

    (a) Requirement for Review.--The Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall conduct a review of the 
requirements of the Marine Corps and the Special Operations Command 
that the V-22 Osprey aircraft is intended to meet in order to identify 
the potential alternative means for meeting those requirements if the 
V-22 Osprey aircraft program were to be terminated.
    (b) Matters To Be Included.--The requirements reviewed shall 
include the following:
            (1) The requirements to be met by an aircraft replacing the 
        CH-46 medium lift helicopter.
            (2) The requirements to be met by an aircraft replacing the 
        MH-53 helicopter.
    (c) Funding.--Of the amount authorized to be appropriated by 
section 201(2), $5,000,000 shall be available for carrying out the 
review required by this section.

SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

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

SEC. 215. REPORT ON V-22 OSPREY AIRCRAFT BEFORE DECISION TO RESUME 
              FLIGHT TESTING.

    Not later than 30 days before the planned date to resume flight 
testing of the V-22 Osprey aircraft, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall submit to Congress a 
report containing the following:
            (1) A comprehensive description of the status of the 
        hydraulics system and flight control software of the V-22 
        Osprey Aircraft, including--
                    (A) a description and analysis of any deficiencies 
                in the hydraulics system and flight control software of 
                the V-22 Osprey aircraft; and
                    (B) a description and assessment of the actions 
                taken to redress such deficiencies.
            (2) A description of the current actions, and any proposed 
        actions, of the Department of Defense to implement the 
        recommendations of the Panel to Review the V-22 Program.
            (3) An assessment of the recommendations of the National 
        Aeronautics and Space Administration in its report on tiltrotor 
        aeromechanics.

SEC. 216. BIG CROW PROGRAM AND DEFENSE SYSTEMS EVALUATION PROGRAM.

    (a) Increase in Authorization of Appropriations for Research, 
Development, Test, and Evaluation, Defense-Wide.--The amount authorized 
to be appropriated by section 201(4) for research, development, test, 
and evaluation, Defense-wide, is hereby increased by $6,500,000, with 
the amount of the increase to be available for operational test and 
evaluation (PE605118D).
    (b) Availability of Funds.--Of the amount authorized to be 
appropriated by section 201(4), as increased by subsection (a)--
            (1) $5,000,000 may be available for the Big Crow program; 
        and
            (2) $1,500,000 may be available for the Defense Systems 
        Evaluation (DSE) program.
    (c) Offset.--The amount authorized to be appropriated by section 
301(5) for operation and maintenance for Defense-wide activities is 
hereby reduced by $6,500,000.

                       Subtitle C--Other Matters

SEC. 231. TECHNOLOGY TRANSITION INITIATIVE.

    (a) Establishment and Conduct.--Chapter 139 of title 10, United 
States Code, is amended by inserting after section 2354 the following 
new section 2355:
``Sec. 2355. Technology Transition Initiative
    ``(a) Requirement for Program.--The Secretary of Defense shall 
carry out a Technology Transition Initiative to facilitate the rapid 
transition of new technologies from science and technology programs of 
the Department of Defense into acquisition programs for the production 
of the technologies.
    ``(b) Objectives.--The objectives of the Initiative are as follows:
            ``(1) To successfully demonstrate new technologies in 
        relevant environments.
            ``(2) To ensure that new technologies are sufficiently 
        mature for production.
    ``(c) Management.--(1) The Secretary of Defense shall designate a 
senior official in the Office of the Secretary of Defense to manage the 
Initiative.
    ``(2) In administering the Initiative, the Initiative Manager shall 
report directly to the Under Secretary of Defense for Acquisition, 
Technology, and Logistics.
    ``(3) The Initiative Manager shall--
            ``(A) in consultation with the Commander of the Joint 
        Forces Command, identify promising technologies that have been 
        demonstrated in science and technology programs of the 
        Department of Defense;
            ``(B) identify potential sponsors in the Department of 
        Defense to undertake the transition of such technologies into 
        production;
            ``(C) work with the science and technology community and 
        the acquisition community to develop memoranda of agreement, 
        joint funding agreements, and other cooperative arrangements to 
        provide for the transition of the technologies into production; 
        and
            ``(D) provide funding support for selected projects as 
        provided under subsection (d).
    ``(d) Jointly Funded Projects.--(1) The senior procurement 
executive of each military department shall select technology projects 
of the military department to recommend for funding support under the 
Initiative and shall submit a list of the recommended projects, ranked 
in order of priority, to the Initiative Manager. The projects shall be 
selected, in a competitive process, on the basis of the highest 
potential benefits in areas of interest identified by the Secretary of 
that military department.
    ``(2) The Initiative Manager, in consultation with the Commander of 
the Joint Forces Command, shall select projects for funding support 
from among the projects on the lists submitted under paragraph (1). The 
Initiative Manager shall provide funds, out of the Technology 
Transition Fund, for each selected project. The total amount provided 
for a project shall be an amount that equals or exceeds 50 percent of 
the total cost of the project.
    ``(3) The senior procurement executive of the military department 
shall manage each project selected under paragraph (2) that is 
undertaken by the military department. Memoranda of agreement, joint 
funding agreements, and other cooperative arrangements between the 
science and technology community and the acquisition community shall be 
used in carrying out the project if the senior procurement executive 
determines that it is appropriate to do so to achieve the objectives of 
the project.
    ``(e) Technology Transition Fund.--(1) There is established in the 
Treasury of the United States a fund to be known as the `Technology 
Transition Fund'.
    ``(2) Subject to the authority, direction, and control of the 
Secretary of Defense, the Initiative Manager shall administer the Fund 
consistent with the provisions of this section.
    ``(3) Amounts appropriated for the Initiative shall be deposited in 
the Fund.
    ``(4) Amounts in the Fund shall be available, to the extent 
provided in appropriations Acts, for carrying out the Initiative.
    ``(5) The President shall specify in the budget submitted for a 
fiscal year pursuant to section 1105(a) of title 31 the amount provided 
in that budget for the Initiative.
    ``(f) Definitions.--In this section:
            ``(1) The term `Initiative' means the Technology Transition 
        Initiative carried out under this section.
            ``(2) The term `Initiative Manager' means the official 
        designated to manage the Initiative under subsection (c).
            ``(3) The term `Fund' means the Technology Transition Fund 
        established under subsection (e).
            ``(4) The term `senior procurement executive', with respect 
        to a military department, means the official designated as the 
        senior procurement executive for that military department under 
        section 16(3) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 414(3)).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2354 the following new item:

``2355. Technology Transition Initiative.''.

SEC. 232. COMMUNICATION OF SAFETY CONCERNS BETWEEN OPERATIONAL TESTING 
              AND EVALUATION OFFICIALS AND PROGRAM MANAGERS.

    Section 139 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) The Director shall ensure that safety concerns developed 
during the operational test and evaluation of a weapon system under a 
major defense acquisition program are timely communicated to the 
program manager for consideration in the acquisition decisionmaking 
process.''.

SEC. 233. SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
              2001 FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
              DEFENSE-WIDE.

    Section 201(4) of Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
114 Stat. 1654A-32) is amended by striking ``$10,873,712,000'' and 
inserting ``$10,874,712,000''.

                  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 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, $21,134,982,000.
            (2) For the Navy, $26,927,931,000.
            (3) For the Marine Corps, $2,911,339,000.
            (4) For the Air Force, $25,993,582,000.
            (5) For Defense-wide activities, $12,482,532,000.
            (6) For the Army Reserve, $1,803,146,000.
            (7) For the Naval Reserve, $1,000,369,000.
            (8) For the Marine Corps Reserve, $142,956,000.
            (9) For the Air Force Reserve, $2,029,866,000.
            (10) For the Army National Guard, $3,697,659,000.
            (11) For the Air National Guard, $4,037,161,000.
            (12) For the Defense Inspector General, $149,221,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $9,096,000.
            (14) For Environmental Restoration, Army, $389,800,000.
            (15) For Environmental Restoration, Navy, $257,517,000.
            (16) For Environmental Restoration, Air Force, 
        $385,437,000.
            (17) For Environmental Restoration, Defense-wide, 
        $23,492,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $190,255,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $49,700,000.
            (20) For Drug Interdiction and Counterdrug Activities, 
        Defense-wide, $860,381,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and 
        Environmental Restoration Trust Fund, $60,000,000.
            (22) For the Defense Health Program, $17,546,750,000.
            (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 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, $1,917,186,000.
            (2) For the National Defense Sealift Fund, $506,408,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    (a) Amount for Fiscal Year 2002.--There is hereby authorized to be 
appropriated for fiscal year 2002 from the Armed Forces Retirement Home 
Trust Fund the sum of $71,440,000 for the operation of the Armed Forces 
Retirement Home, including the United States Soldiers' and Airmen's 
Home and the Naval Home.
    (b) Amounts Previously Authorized.--Of amounts appropriated from 
the Armed Forces Retirement Home Trust Fund for fiscal years before 
fiscal year 2002 by Acts enacted before the date of the enactment of 
this Act, an amount of $22,400,000 shall be available for those fiscal 
years, to the same extent as is provided in appropriation Acts, for the 
development and construction of a blended use, multicare facility at 
the Naval Home and for the acquisition of a parcel of real property 
adjacent to the Naval Home, consisting of approximately 15 acres, more 
or less.

SEC. 304. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
              DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT 
              OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
2002.--Of the amount authorized to be appropriated by section 301(5) 
for operation and maintenance for Defense-wide activities, $35,000,000 
shall be available only for the purpose of providing educational 
agencies assistance (as defined in subsection (d)(1)) to local 
educational agencies.
    (b) Notification.--Not later than June 30, 2002, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
educational agencies assistance for fiscal year 2002 of--
            (1) that agency's eligibility for educational agencies 
        assistance; and
            (2) the amount of the educational agencies assistance for 
        which that agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 305. AMOUNT FOR IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated under section 301(5), 
$5,000,000 shall be available for payments under section 363 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-77).

SEC. 306. IMPROVEMENTS IN INSTRUMENTATION AND TARGETS AT ARMY LIVE FIRE 
              TRAINING RANGES.

    (a) Increase in Authorization of Appropriations for Operation and 
Maintenance, Army.--The amount authorized to be appropriated by section 
301(1) for the Army for operation and maintenance is hereby increased 
by $11,900,000 for improvements in instrumentation and targets at Army 
live fire training ranges.
    (b) Offset.--The amount authorized to be appropriated by section 
302(1) for the Department of Defense for the Defense Working Capital 
Funds is hereby decreased by $11,900,000, with the amount of the 
decrease to be allocated to amounts available under that section for 
fuel purchases.

SEC. 307. ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES.

    Of the funds authorized to be appropriated for section 301, 
$230,255,000 shall be available for Environmental Restoration, Formerly 
Used Defense Sites.

SEC. 308. AUTHORIZATION OF ADDITIONAL FUNDS.

    Of the amount authorized to be appropriated by section 301(5), 
$2,000,000 may be available for the replacement and refurbishment of 
air handlers and related control systems at Air Force medical centers.

SEC. 309. FUNDS FOR RENOVATION OF DEPARTMENT OF VETERANS AFFAIRS 
              FACILITIES ADJACENT TO NAVAL TRAINING CENTER, GREAT 
              LAKES, ILLINOIS.

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

                  Subtitle B--Environmental Provisions

SEC. 311. ESTABLISHMENT IN ENVIRONMENTAL RESTORATION ACCOUNTS OF SUB-
              ACCOUNTS FOR UNEXPLODED ORDNANCE AND RELATED 
              CONSTITUENTS.

    Section 2703 of title 10, United States Code, is amended--
            (1) by redesignating subsections (b) through (f) as 
        subsections (c) through (g), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Sub-Accounts for Unexploded Ordnance and Related 
Constituents.--There is hereby established within each environmental 
restoration account established under subsection (a) a sub-account to 
be known as the `Environmental Restoration Sub-Account, Unexploded 
Ordnance and Related Constituents', for the account concerned.''.

SEC. 312. ASSESSMENT OF ENVIRONMENTAL REMEDIATION OF UNEXPLODED 
              ORDNANCE AND RELATED CONSTITUENTS.

    (a) Report Required.--The report submitted to Congress under 
section 2706(a) of title 10, United States Code, in 2002 shall include, 
in addition to the matters required by such section, a comprehensive 
assessment of the extent of unexploded ordnance and related 
constituents at current and former facilities of the Department of 
Defense.
    (b) Elements.--The assessment included under subsection (a) in the 
report referred to in that subsection shall include, at a minimum--
            (1) an estimate of the aggregate projected costs of the 
        remediation of unexploded ordnance and related constituents at 
        all active facilities of the Department;
            (2) an estimate of the aggregate projected costs of the 
        remediation of unexploded ordnance and related constituents at 
        all installations that are being, or have been, closed or 
        realigned under the base closure laws as of the date of the 
        report under subsection (a);
            (3) an estimate of the aggregate projected costs of the 
        remediation of unexploded ordnance and related constituents at 
        all formerly used defense sites;
            (4) a comprehensive plan for addressing the unexploded 
        ordinance and related constituents referred to in paragraphs 
        (1) through (3), including an assessment of the funding 
        required and the period of time over which such funding will be 
        provided; and
            (5) an assessment of the technology available for the 
        remediation of unexploded ordnance and related constituents, an 
        assessment of the impact of improved technology on the cost of 
        remediation of such ordnance and constituents, and a plan for 
        the development and utilization of such improved technology.
    (c) Requirements for Estimates.--(1) The estimates of aggregate 
projected costs under each of paragraphs (1), (2), and (3) of 
subsection (b) shall--
            (A) be stated as a range of aggregate projected costs, 
        including a low estimate and a high estimate;
            (B) set forth the differing assumptions underlying each 
        such low estimate and high estimate, including--
                    (i) any public uses for the facilities, 
                installations, or sites concerned that will be 
                available after the remediation has been completed;
                    (ii) the extent of the cleanup required to make the 
                facilities, installations, or sites concerned available 
                for such uses; and
                    (iii) the technologies to be applied to utilized 
                this purpose; and
            (C) include, and identify separately, an estimate of the 
        aggregate projected costs of the remediation of any ground 
        water contamination that may be caused by unexploded ordnance 
        and related constituents at the facilities, installations, or 
        sites concerned.
    (2) The high estimate of the aggregate projected costs for 
facilities and installations under paragraph (1)(A) shall be based on 
the assumption that all unexploded ordnance and related constituents at 
such facilities and installations will be addressed, regardless of 
whether there are any current plans to close such facilities or 
installations or discontinue training at such facilities or 
installations.
    (3) The estimate of the aggregate projected costs of remediation of 
ground water contamination under paragraph (1)(C) shall be based on a 
comprehensive assessment of the risk of such contamination and of the 
actions required to protect the ground water supplies concerned.

SEC. 313. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY PROGRAM.

    (a) In General.--The Secretary of Defense shall carry out a program 
to significantly improve the energy efficiency of Department of Defense 
facilities through 2010.
    (b) Responsible Officials.--The Secretary shall designate a senior 
official of the Department of Defense to be responsible for managing 
the program for the Department and a senior official of each military 
department to be responsible for managing the program for such 
department.
    (c) Energy Efficiency Goals.--The goal of the program shall be to 
achieve reductions in energy consumption by Department facilities as 
follows:
            (1) In the case of industrial and laboratory facilities, 
        reductions in the average energy consumption per square foot of 
        such facilities, per unit of production or other applicable 
        unit, relative to energy consumption in 1990--
                    (A) by 20 percent by 2005; and
                    (B) by 25 percent by 2010.
            (2) In the case of other facilities, reductions in average 
        energy consumption per gross square foot of such facilities, 
        relative to energy consumption per gross square foot in 1985--
                    (A) by 30 percent by 2005; and
                    (B) by 35 percent by 2010.
    (d) Strategies for Improving Energy Efficiency.--In order to 
achieve the goals set forth in subsection (c), the Secretary shall, to 
the maximum extent practicable--
            (1) purchase energy-efficient products, as so designated by 
        the Environmental Protection Agency and the Department of 
        Energy, and other energy-efficient products;
            (2) utilize energy savings performance contracts, utility 
        energy-efficiency service contracts, and other contracts 
        designed to achieve energy conservation;
            (3) use life-cycle cost analysis, including assessment of 
        life-cycle energy costs, in making decisions about investments 
        in products, services, construction, and other projects;
            (4) conduct energy efficiency audits for approximately 10 
        percent of all Department of Defense facilities each year;
            (5) explore opportunities for energy efficiency in 
        industrial facilities for steam systems, boiler operation, air 
        compressor systems, industrial processes, and fuel switching; 
        and
            (6) retire inefficient equipment on an accelerated basis 
        where replacement results in lower life-cycle costs.
    (e) Reports.-- Not later than January 1, 2002, and annually 
thereafter through 2010, the Secretary shall submit to the 
congressional defense committees a report on progress made toward 
achieving the goals set forth in subsection (c). Each report shall 
include, at a minimum--
            (1) the percentage reduction in energy consumption 
        accomplished as of the date of such report by the Department, 
        and by each of the military departments, in facilities covered 
        by the goals set forth in subsection (c)(1);
            (2) the percentage reduction in energy consumption 
        accomplished as of the date of such report by the Department, 
        and by each of the military departments, in facilities covered 
        by the goals set forth in subsection (c)(2); and
            (3) the steps taken by the Department, and by each of the 
        military departments, to implement the energy efficiency 
        strategies required by subsection (d) in the preceding calendar 
        year.

SEC. 314. EXTENSION OF PILOT PROGRAM FOR SALE OF AIR POLLUTION EMISSION 
              REDUCTION INCENTIVES.

    Section 351(a)(2) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 2701 note) is amended by 
striking ``September 30, 2001'' and inserting ``September 30, 2003''.

SEC. 315. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              RESPONSE COSTS IN CONNECTION WITH HOOPER SANDS SITE, 
              SOUTH BERWICK, MAINE.

    (a) Authority To Reimburse.--Using amounts specified in subsection 
(c), the Secretary of the Navy may pay $1,005,478 to the Hooper Sands 
Special Account within the Hazardous Substance Superfund established by 
section 9507 of the Internal Revenue Code of 1986 (26 U.S.C. 9507) to 
reimburse the Environmental Protection Agency for the response costs 
incurred by the Environmental Protection Agency for actions taken 
between May 12, 1992, and July 31, 2000, pursuant to the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601 et seq.) at the Hooper Sands site in South Berwick, Maine, 
in accordance with the Interagency Agreement entered into by the 
Department of the Navy and the Environmental Protection Agency in 
January 2001.
    (b) Treatment of Reimbursement.--Payment of the amount authorized 
by subsection (a) shall be in full satisfaction of amounts due from the 
Department of the Navy to the Environmental Protection Agency for the 
response costs described in that subsection.
    (c) Source of Funds.--Payment under subsection (a) shall be made 
using amounts authorized to be appropriated by section 301(15) to the 
Environmental Restoration Account, Navy, established by section 
2703(a)(3) of title 10, United States Code.

SEC. 316. CONFORMITY OF SURETY AUTHORITY UNDER ENVIRONMENTAL 
              RESTORATION PROGRAM WITH SURETY AUTHORITY UNDER 
              SUPERFUND.

    Section 2701(j)(1) of title 10, United States Code, is amended by 
striking ``or after December 31, 1999''.

SEC. 317. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID ELECTRIC LIGHT 
              DUTY TRUCKS.

    (a) Defense Fleets Not Covered by Requirement in Energy Policy Act 
of 1992.--(1) The Secretary of Defense shall coordinate with the 
Administrator of General Services to ensure that only hybrid electric 
vehicles are procured by the Administrator for the Department of 
Defense fleet of light duty trucks that is not in a fleet of vehicles 
to which section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) 
applies.
    (2) The Secretary, in consultation with the Administrator, may 
waive the policy regarding the procurement of hybrid electric vehicles 
in paragraph (1) to the extent that the Secretary determines 
necessary--
            (A) in the case of trucks that are exempt from the 
        requirements of section 303 of the Energy Policy Act of 1992 
        (42 U.S.C. 13212) for national security reasons under 
        subsection (b)(3)(E) of such section, to meet specific 
        requirements of the Department of Defense for capabilities of 
        light duty trucks;
            (B) to procure vehicles consistent with the standards 
        applicable to the procurement of fleet vehicles for the Federal 
        Government; or
            (C) to adjust to limitations on the commercial availability 
        of light duty trucks that are hybrid electric vehicles.
    (3) This subsection applies with respect to procurements of light 
duty trucks in fiscal year 2005 and subsequent fiscal years.
    (b) Requirement To Exceed Requirement in Energy Policy Act of 
1992.--(1) The Secretary of Defense shall coordinate with the 
Administrator of General Services to ensure that, of the light duty 
trucks procured in fiscal years after fiscal year 2004 for the fleets 
of light duty vehicles of the Department of Defense to which section 
303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) applies--
            (A) five percent of the total number of such trucks that 
        are procured in each of fiscal years 2005 and 2006 are 
        alternative fueled vehicles or hybrid electric vehicles; and
            (B) ten percent of the total number of such trucks that are 
        procured in each fiscal year after fiscal year 2006 are 
        alternative fueled vehicles or hybrid electric vehicles.
    (2) Light duty trucks acquired for the Department of Defense that 
are counted to comply with section 303 of the Energy Policy Act of 1992 
(42 U.S.C. 13212) for a fiscal year shall be counted to determine the 
total number of light duty trucks procured for the Department of 
Defense for that fiscal year for the purposes of paragraph (1), but 
shall not be counted to satisfy the requirement in that paragraph.
    (c) Report on Plans for Implementation.--At the same time that the 
President submits the budget for fiscal year 2003 to Congress under 
section 1105(a) of title 31, United States Code, the Secretary shall 
submit to Congress a report summarizing the plans for carrying out 
subsections (a) and (b).
    (d) Definitions.--In this section:
            (1) The term ``hybrid electric vehicle'' means a motor 
        vehicle that draws propulsion energy from onboard sources of 
        stored energy that are both--
                    (A) an internal combustion or heat engine using 
                combustible fuel; and
                    (B) a rechargeable energy storage system.
            (2) The term ``alternative fueled vehicle'' has the meaning 
        given that term in section 301 of the Energy Policy Act of 1992 
        (43 U.S.C. 13211).

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 321. REBATE AGREEMENTS WITH PRODUCERS OF FOODS PROVIDED UNDER THE 
              SPECIAL SUPPLEMENTAL FOOD PROGRAM.

    Section 1060a(b) of title 10, United States Code, is amended--
            (1) by striking ``(b) Funding Mechanism.--'' and inserting 
        ``(b) Funding.--(1); and
            (2) by adding at the end the following new paragraph:
    ``(2)(A) In the administration of the program under this section, 
the Secretary of Defense may enter into a contract with a producer of a 
particular brand of food that provides for--
            ``(i) the Secretary of Defense to procure that particular 
        brand of food, exclusive of other brands of the same or similar 
        food, for the purpose of providing the food in commissary 
        stores of the Department of Defense as a supplemental food 
        under the program; and
            ``(ii) the producer to rebate to the Department of Defense 
        amounts equal to agreed portions of the amounts paid by the 
        department for the procurement of that particular brand of food 
        for the program.
    ``(B) The Secretary shall use competitive procedures under chapter 
137 of this title for entering into contracts under this paragraph.
    ``(C) The period covered by a contract entered into under this 
paragraph may not exceed one year. No such contract may be extended by 
a modification of the contract, by exercise of an option, or by any 
other means. Nothing in this subparagraph prohibits a contractor under 
a contract entered into under this paragraph for any year from 
submitting an offer for, and being awarded, a contract that is to be 
entered into under this paragraph for a successive year.
    ``(D) Amounts rebated under a contract entered into under 
subparagraph (A) shall be credited to the appropriation available for 
carrying out the program under this section in the fiscal year in which 
rebated, shall be merged with the other sums in that appropriation, and 
shall be available for the program for the same period as the other 
sums in the appropriation.''.

SEC. 322. REIMBURSEMENT FOR USE OF COMMISSARY FACILITIES BY MILITARY 
              DEPARTMENTS FOR PURPOSES OTHER THAN COMMISSARY SALES.

    (a) Requirement.--Chapter 147 of title 10, United States Code, is 
amended by inserting after section 2482a the following new section:
``Sec. 2483. Commissary stores: reimbursement for use of commissary 
              facilities by military departments
    ``(a) Payment Required.--The Secretary of a military department 
shall pay the Defense Commissary Agency the amount determined under 
subsection (b) for any use of a commissary facility by the military 
department for a purpose other than commissary sales or operations in 
support of commissary sales.
    ``(b) Amount.--The amount payable under subsection (a) for use of a 
commissary facility by a military department shall be equal to the 
share of depreciation of the facility that is attributable to that use, 
as determined under regulations prescribed by the Secretary of Defense.
    ``(c) Covered Facilities.--This section applies with respect to a 
commissary facility that is acquired, constructed, converted, expanded, 
installed, or otherwise improved (in whole or in part) with the 
proceeds of an adjustment or surcharge applied under section 2486(c) of 
this title.
    ``(d) Crediting of Payments.--The Director of the Defense 
Commissary Agency shall credit amounts paid under this section for use 
of a facility to an appropriate account to which proceeds of an 
adjustment or surcharge referred to in subsection (c) are credited.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2482a the following new item:

``2483. Commissary stores: reimbursement for use of commissary 
                            facilities by military departments.''.

SEC. 323. PUBLIC RELEASES OF COMMERCIALLY VALUABLE INFORMATION OF 
              COMMISSARY STORES.

    (a) Limitations and Authority.--Section 2487 of title 10, United 
States Code, is amended to read as follows:
``Sec. 2487. Commissary stores: release of certain commercially 
              valuable information to the public
    ``(a) Authority To Limit Release.--(1) The Secretary of Defense may 
limit the release to the public of any information described in 
paragraph (2) if the Secretary determines that it is in the best 
interest of the Department of Defense to limit the release of such 
information. If the Secretary determines to limit the release of any 
such information, the Secretary may provide for limited release of such 
information in accordance with subsection (b).
    ``(2) Paragraph (1) applies to the following:
            ``(A) Information contained in the computerized business 
        systems of commissary stores or the Defense Commissary Agency 
        that is collected through or in connection with the use of 
        electronic scanners in commissary stores, including the 
        following information:
                    ``(i) Data relating to sales of goods or services.
                    ``(ii) Demographic information on customers.
                    ``(iii) Any other information pertaining to 
                commissary transactions and operations.
            ``(B) Business programs, systems, and applications 
        (including software) relating to commissary operations that 
        were developed with funding derived from commissary surcharges.
    ``(b) Release Authority.--(1) The Secretary of Defense may, using 
competitive procedures, enter into a contract to sell information 
described in subsection (a)(2).
    ``(2) The Secretary of Defense may release, without charge, 
information on an item sold in commissary stores to--
            ``(A) the manufacturer or producer of that item; or
            ``(B) the manufacturer or producer's agent when necessary 
        to accommodate electronic ordering of the item by commissary 
        stores.
    ``(3) The Secretary of Defense may, by contract entered into with a 
business, grant to the business a license to use business programs 
referred to in subsection (a)(2)(B), including software used in or 
comprising any such program. The fee charged for the license shall be 
based on the costs of similar programs developed and marketed by 
businesses in the private sector, determined by means of surveys.
    ``(4) Each contract entered into under this subsection shall 
specify the amount to be paid for information released or a license 
granted under the contract, as the case may be.
    ``(c) Form of Release.--Information described in subsection (a)(2) 
may not be released, under subsection (b) or otherwise, in a form that 
identifies any customer or that provides information making it possible 
to identify any customer.
    ``(d) Receipts.--Amounts received by the Secretary under this 
section shall be credited to funds derived from commissary surcharges, 
shall be merged with those funds, and shall be available for the same 
purposes as the funds with which merged.
    ``(e) Definitions.--In this section, the term `commissary 
surcharge' means any adjustment or surcharge applied under section 
2486(c) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 147 of such title is amended to read as follows:

``2487. Commissary stores: release of certain commercially valuable 
                            information to the public.''.

                       Subtitle D--Other Matters

SEC. 331. CODIFICATION OF AUTHORITY FOR DEPARTMENT OF DEFENSE SUPPORT 
              FOR COUNTERDRUG ACTIVITIES OF OTHER GOVERNMENTAL 
              AGENCIES.

    (a) Authority.--(1) Chapter 18 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 383. Additional support for counterdrug activities of other 
              agencies
    ``(a) Support to Other Agencies.--The Secretary of Defense may 
provide support for the counterdrug activities of any other department 
or agency of the Federal Government or of any State, local, or foreign 
law enforcement agency for any of the purposes set forth in subsection 
(b) if such support is requested--
            ``(1) by the official who has responsibility for the 
        counterdrug activities of the department or agency of the 
        Federal Government, in the case of support for the department 
        or agency;
            ``(2) by the appropriate official of a State or local 
        government, in the case of support for the State or local law 
        enforcement agency; or
            ``(3) by an appropriate official of a department or agency 
        of the Federal Government that has counterdrug 
        responsibilities, in the case of support for a foreign law 
        enforcement agency.
    ``(b) Types of Support.--The purposes for which the Secretary may 
provide support under subsection (a) are the following:
            ``(1) The maintenance and repair of equipment that has been 
        made available to any department or agency of the Federal 
        Government or to any State or local government by the 
        Department of Defense for the purposes of--
                    ``(A) preserving the potential future utility of 
                such equipment for the Department of Defense; and
                    ``(B) upgrading such equipment to ensure 
                compatibility of that equipment with other equipment 
                used by the Department of Defense.
            ``(2) The maintenance, repair, or upgrading of equipment 
        (including computer software), other than equipment referred to 
        in subparagraph (A) for the purpose of--
                    ``(A) ensuring that the equipment being maintained 
                or repaired is compatible with equipment used by the 
                Department of Defense; and
                    ``(B) upgrading such equipment to ensure the 
                compatibility of that equipment with equipment used by 
                the Department of Defense.
            ``(3) The transportation of personnel of the United States 
        and foreign countries (including per diem expenses associated 
        with such transportation), and the transportation of supplies 
        and equipment, for the purpose of facilitating counterdrug 
        activities within or outside the United States.
            ``(4) The establishment (including an unspecified minor 
        military construction project) and operation of bases of 
        operations or training facilities for the purpose of 
        facilitating counterdrug activities of the Department of 
        Defense or any Federal, State, or local law enforcement agency 
        within or outside the United States or counterdrug activities 
        of a foreign law enforcement agency outside the United States.
            ``(5) Counterdrug related training of law enforcement 
        personnel of the Federal Government, of State and local 
        governments, and of foreign countries, including associated 
        support expenses for trainees and the provision of materials 
        necessary to carry out such training.
            ``(6) The detection, monitoring, and communication of the 
        movement of--
                    ``(A) air and sea traffic within 25 miles of and 
                outside the geographic boundaries of the United States; 
                and
                    ``(B) surface traffic outside the geographic 
                boundary of the United States and within the United 
                States not to exceed 25 miles of the boundary if the 
                initial detection occurred outside of the boundary.
            ``(7) Construction of roads and fences and installation of 
        lighting to block drug smuggling corridors across international 
        boundaries of the United States.
            ``(8) Establishment of command, control, communications, 
        and computer networks for improved integration of law 
        enforcement, active military, and National Guard activities.
            ``(9) The provision of linguist and intelligence analysis 
        services.
            ``(10) Aerial and ground reconnaissance.
    ``(c) Limitation on Counterdrug Requirements.--The Secretary of 
Defense may not limit the requirements for which support may be 
provided under subsection (a) only to critical, emergent, or 
unanticipated requirements.
    ``(d) Contract Authority.--In carrying out subsection (a), the 
Secretary of Defense may acquire services or equipment by contract for 
support provided under that subsection if the Department of Defense 
would normally acquire such services or equipment by contract for the 
purpose of conducting a similar activity for the Department of Defense.
    ``(e) Limited Waiver of Prohibition--Notwithstanding section 376 of 
this title, the Secretary of Defense may provide support pursuant to 
subsection (a) in any case in which the Secretary determines that the 
provision of such support would adversely affect the military 
preparedness of the United States in the short term if the Secretary 
determines that the importance of providing such support outweighs such 
short-term adverse effect.
    ``(f) Conduct of Training or Operation to Aid Civilian Agencies.--
In providing support pursuant to subsection (a), the Secretary of 
Defense may plan and execute otherwise valid military training or 
operations (including training exercises undertaken pursuant to section 
1206(a) of the National Defense Authorization Act for Fiscal Years 1990 
and 1991 (Public Law 101-189; 103 Stat. 1564; 10 U.S.C. 124 note)) for 
the purpose of aiding civilian law enforcement agencies.
    ``(g) Relationship to Other Laws.--(1) The authority provided in 
this section for the support of counterdrug activities by the 
Department of Defense is in addition to, and except as provided in 
paragraph (2), not subject to the requirements of any other provision 
of this chapter.
    ``(2) Support under this section shall be subject to the provisions 
of section 375 and, except as provided in subsection (e), section 376 
of this title.
    ``(h) Congressional Notification of Facilities Projects.--(1) When 
a decision is made to carry out a military construction project 
described in paragraph (2), the Secretary of Defense shall submit to 
the committees of Congress named in paragraph (3) a written notice of 
the decision, including the justification for the project and the 
estimated cost of the project. The project may be commenced only after 
the end of the 21-day period beginning on the date on which the written 
notice is received by the committees.
    ``(2) Paragraph (1) applies to an unspecified minor military 
construction project that--
            ``(A) is intended for the modification or repair of a 
        Department of Defense facility for the purpose set forth in 
        subsection (b)(4); and
            ``(B) has an estimated cost of more than $500,000.
    ``(3) The committees referred to in paragraph (1) are as follows:
            ``(A) The Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
            ``(B) The Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``383. Additional support for counterdrug activities of other 
                            agencies.''.
    (b) Repeal of Superseded Provision.--Section 1004 of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 10 
U.S.C. 374 note) is repealed.
    (c) Savings Provision.--The repeal of section 1004 of the National 
Defense Authorization Act for Fiscal Year 1991 by subsection (b) shall 
not affect any support provided under that section that is ongoing as 
of the date of the enactment of this Act. The support may be continued 
in accordance with section 383 of title 10, United States Code, as 
added by subsection (a).

SEC. 332. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON PRIVATE 
              SECTOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

    (a) Amounts Excluded.--Amounts expended out of funds described in 
subsection (b) for the performance of a depot-level maintenance and 
repair workload by non-Federal Government personnel at a Center of 
Industrial and Technical Excellence designated pursuant to section 
2474(a) of title 10, United States Code, shall not be counted for 
purposes of section 2466(a) of such title if the personnel are provided 
by private industry pursuant to a public-private partnership undertaken 
by the Center under section 2474(b) of such title.
    (b) Funds for Fiscal Years 2002 through 2004.--The funds referred 
to in subsection (a) are funds available to the military departments 
for depot-level maintenance and repair workloads for fiscal years 2002, 
2003, and 2004.

SEC. 333. REPAIR, RESTORATION, AND PRESERVATION OF LAFAYETTE ESCADRILLE 
              MEMORIAL, MARNES LA-COQUETTE, FRANCE.

    (a) Authority To Make Grant.--The Secretary of the Air Force may, 
using amounts specified in subsection (d), make a grant to the 
Lafayette Escadrille Memorial Foundation, Inc., for purposes of the 
repair, restoration, and preservation of the structure, plaza, and 
surrounding grounds of the Lafayette Escadrille Memorial in Marnes la-
Coquette, France.
    (b) Grant Amount.--The amount of the grant under subsection (a) may 
not exceed $2,000,000.
    (c) Use of Grant.--Amounts from the grant under this section shall 
be used solely for the purposes described in subsection (a). None of 
such amounts may be used for remuneration of any entity or individual 
associated with fundraising for any project for such purposes.
    (d) Funds for Grant.--Funds for the grant under this section shall 
be derived from amounts authorized to be appropriated by section 301(4) 
for operation and maintenance for the Air Force for fiscal year 2002.

SEC. 334. IMPLEMENTATION OF THE NAVY-MARINE CORPS INTRANET CONTRACT.

    (a) Additional Phase-In Authority.--Subsection (b) of section 814 
of the Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted by Public Law 106-398; 114 Stat. 1654A-215) is 
amended by adding at the end the following new paragraphs:
    ``(5)(A) The Secretary of the Navy may, before the submittal of the 
joint certification referred to in paragraph (3)(D), contract for one 
or more additional increments of work stations under the Navy-Marine 
Corps Intranet contract, with the number of work stations to be ordered 
in each additional increment to be determined by the Under Secretary of 
Defense for Acquisition, Technology, and Logistics.
    ``(B) Upon determining the number of work stations in an additional 
increment for purposes of subparagraph (A), the Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall submit to the 
congressional defense committees a report, current as of the date of 
such determination, on the following:
            ``(i) The number of work stations operating on the Navy-
        Marine Corps Intranet.
            ``(ii) The status of testing and implementation of the 
        Navy-Marine Corps Intranet program.
            ``(iii) The number of work stations to be contracted for in 
        the additional increment.
    ``(C) The Under Secretary of Defense for Acquisition, Technology, 
and Logistics may not make a determination to order any number of work 
stations to be contracted for under subparagraph (A) in excess of the 
number permitted under paragraph (2) until--
            ``(i) the completion of a three-phase contractor test and 
        user evaluation, observed by the Department of Defense, of the 
        work stations operating on the Navy-Marine Corps Intranet at 
        the first three sites under the Navy-Marine Corps Intranet 
        program; and
            ``(ii) the Chief Information Officer of the Navy has 
        certified to the Secretary of the Navy and the Chief 
        Information Officer of the Department of Defense that the 
        results of the test and evaluation referred to in clause (i) 
        are acceptable.
    ``(D) The Under Secretary of Defense for Acquisition, Technology, 
and Logistics may not make a determination to order any number of work 
stations to be contracted for under subparagraph (A) in excess of the 
number provided for under subparagraph (C) until--
            ``(i) there has been a full transition of not less than 
        20,000 work stations to the Navy-Marine Corps Intranet;
            ``(ii) the work stations referred to in clause (i) have met 
        service-level agreements specified in the Navy-Marine Corps 
        Intranet contract for not less than 30 days, as determined by 
        contractor performance measurement under oversight by the 
        Department of the Navy; and
            ``(iii) the Chief Information Officer of the Department of 
        Defense and the Assistant Secretary of Defense for Command, 
        Control, Communications, and Intelligence jointly certify to 
        the congressional defense committees that the results of 
        testing of the work stations referred to in clause (i) are 
        acceptable.''.
    (b) Definitions.--Subsection (f) of that section is amended to read 
as follows:
    ``(f) Definitions.--In this section:
            ``(1) The term `Navy-Marine Corps Intranet contract' means 
        a contract providing for a long-term arrangement of the 
        Department of the Navy with the commercial sector that imposes 
        on the contractor a responsibility for, and transfers to the 
        contractor the risk of, providing and managing the significant 
        majority of desktop, server, infrastructure, and communication 
        assets and services of the Department of the Navy.
            ``(2) The term `provide', in the case of a work station 
        under the Navy-Marine Corps Intranet contract, means transfer 
        of the legacy information infrastructure and systems of the 
        user of the work station to Navy-Marine Corps Intranet 
        infrastructure and systems of the work station under the Navy-
        Marine Corps Intranet contract and performance thereof 
        consistent with the service-level agreements specified in the 
        Navy-Marine Corps Intranet contract.''.

SEC. 335. REVISION OF AUTHORITY TO WAIVE LIMITATION ON PERFORMANCE OF 
              DEPOT-LEVEL MAINTENANCE.

    (a) In General.--Section 2466(c) of title 10, United States Code, 
is amended to read as follows:
    ``(c) Waiver of Limitation.--(1) The Secretary of Defense may waive 
the limitation in subsection (a) for a fiscal year if--
            ``(A) the Secretary of Defense determines that the waiver 
        is necessary for reasons of national security; and
            ``(B) the Secretary of Defense submits to Congress a 
        notification of the waiver together with the reasons for the 
        waiver; and
    ``(2) The Secretary of Defense may not delegate the authority to 
exercise the waiver authority under paragraph (1).''.
    (b) Report.--The Secretary of Defense shall provide a report to 
Congress not later than January 31, 2002 that outlines the Secretary's 
strategy regarding the operations of the public depots.

SEC. 336. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

    (a) Extension of Authority.--Subsection (f) of section 391 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 111 Stat. 1716; 10 U.S.C. 2304 note) is amended by striking 
``September 30, 1999'' and inserting ``September 30, 2003''.
    (b) Reporting Requirements.--Subsection (g) of such section is 
amended--
            (1) in paragraph (1), by striking ``January 1, 2000'' and 
        inserting ``January 1, 2003''; and
            (2) in paragraph (2), by striking ``March 1, 2000'' and 
        inserting ``March 1, 2003''.

SEC. 337. FUNDING FOR LAND FORCES READINESS-INFORMATION OPERATIONS 
              SUSTAINMENT.

    Of the amount authorized to be appropriated by section 301(6), 
$5,000,000 may be available for land forces readiness-information 
operations sustainment.

SEC. 338. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER EXPANDED 
              ARABIC LANGUAGE PROGRAM.

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

SEC. 339. CONSEQUENCE MANAGEMENT TRAINING.

    Of the amount authorized to be appropriated by section 301(5), 
$5,000,000 may be available for the training of members of the Armed 
Forces (including reserve component personnel) in the management of the 
consequences of an incident involving the use or threat of use of a 
weapon of mass destruction.

SEC. 340. CRITICAL INFRASTRUCTURE PROTECTION INITIATIVE OF THE NAVY.

    Of the amount authorized to be appropriated by section 301(2), 
$6,000,000 shall be available for the critical infrastructure 
protection initiative of the Navy.

              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.

SEC. 402. AUTHORIZED DAILY AVERAGE ACTIVE DUTY STRENGTH FOR NAVY 
              ENLISTED MEMBERS IN PAY GRADE E-8.

    (a) In General.--Section 517(a) of title 10, United States Code, is 
amended by inserting ``or the Navy'' after ``in the case of the Army''.
    (b) Applicability.--The amendment made by subsection (a) shall take 
effect on October 1, 2001, and shall apply with respect to fiscal years 
beginning on or after that date.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 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 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2002, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 23,698.
            (2) The Army Reserve, 13,406.
            (3) The Naval Reserve, 14,811.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 11,591.
            (6) The Air Force Reserve, 1,437.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2002 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 6,249.
            (2) For the Army National Guard of the United States, 
        23,615.
            (3) For the Air Force Reserve, 9,818.
            (4) For the Air National Guard of the United States, 
        22,422.

SEC. 414. FISCAL YEAR 2002 LIMITATION ON NON-DUAL STATUS TECHNICIANS.

    (a) Limitation.--The number of non-dual status technicians employed 
by the reserve components of the Army and the Air Force as of September 
30, 2002, may not exceed the following:
            (1) For the Army Reserve, 1,095.
            (2) For the Army National Guard of the United States, 
        1,600.
            (3) For the Air Force Reserve, 0.
            (4) For the Air National Guard of the United States, 350.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given the term in 
section 10217(a) of title 10, United States Code.

SEC. 415. LIMITATIONS ON NUMBERS OF RESERVE PERSONNEL SERVING ON ACTIVE 
              DUTY OR FULL-TIME NATIONAL GUARD DUTY IN CERTAIN GRADES 
              FOR ADMINISTRATION OF RESERVE COMPONENTS.

    (a) Officers.--The text of section 12011 of title 10, United States 
Code, is amended to read as follows:
    ``(a) Limitations.--(1) Of the total number of members of a reserve 
component who are serving on full-time reserve component duty at the 
end of any fiscal year, the number of those members who may be serving 
in each of the grades of major, lieutenant colonel, and colonel may 
not, as of the end of that fiscal year, exceed the number determined in 
accordance with the following table:


----------------------------------------------------------------------------------------------------------------
                                                         Number of officers of that reserve component who may be
                                                                        serving in the grade of:
   ``Total number of members of a reserve component    ---------------------------------------------------------
     serving on full-time reserve component duty:                              Lieutenant
                                                              Major             Colonel             Colonel
----------------------------------------------------------------------------------------------------------------
Army Reserve:
10,000................................................              1,390                740              230
11,000................................................              1,529                803              242
12,000................................................              1,668                864              252
13,000................................................              1,804                924              262
14,000................................................              1,940                984              272
15,000................................................              2,075              1,044              282
16,000................................................              2,210              1,104              291
17,000................................................              2,345              1,164              300
18,000................................................              2,479              1,223              309
19,000................................................              2,613              1,282              318
20,000................................................              2,747              1,341              327
21,000................................................              2,877              1,400              336
 
Army National Guard:
20,000................................................              1,500                850              325
22,000................................................              1,650                930              350
24,000................................................              1,790              1,010              370
26,000................................................              1,930              1,085              385
28,000................................................              2,070              1,160              400
30,000................................................              2,200              1,235              405
32,000................................................              2,330              1,305              408
34,000................................................              2,450              1,375              411
36,000................................................              2,570              1,445              411
38,000................................................              2,670              1,515              411
40,000................................................              2,770              1,580              411
42,000................................................              2,837              1,644              411
 
Marine Corps Reserve:
1,100.................................................                106                 56               20
1,200.................................................                110                 60               21
1,300.................................................                114                 63               22
1,400.................................................                118                 66               23
1,500.................................................                121                 69               24
1,600.................................................                124                 72               25
1,700.................................................                127                 75               26
1,800.................................................                130                 78               27
1,900.................................................                133                 81               28
2,000.................................................                136                 84               29
2,100.................................................                139                 87               30
2,200.................................................                141                 90               31
2,300.................................................                143                 92               32
2,400.................................................                145                 94               33
2,500.................................................                147                 96               34
2,600.................................................                149                 98               35
 
Air Force Reserve:
500...................................................                 83                 85               50
1,000.................................................                155                165               95
1,500.................................................                220                240              135
2,000.................................................                285                310              170
2,500.................................................                350                369              203
3,000.................................................                413                420              220
3,500.................................................                473                464              230
4,000.................................................                530                500              240
4,500.................................................                585                529              247
5,000.................................................                638                550              254
5,500.................................................                688                565              261
6,000.................................................                735                575              268
7,000.................................................                770                595              280
8,000.................................................                805                615              290
10,000................................................                835                635              300
 
Air National Guard:
5,000.................................................                333                335              251
6,000.................................................                403                394              260
7,000.................................................                472                453              269
8,000.................................................                539                512              278
9,000.................................................                606                571              287
10,000................................................                673                630              296
11,000................................................                740                688              305
12,000................................................                807                742              314
13,000................................................                873                795              323
14,000................................................                939                848              332
15,000................................................              1,005                898              341
16,000................................................              1,067                948              350
17,000................................................              1,126                998              359
18,000................................................              1,185              1,048              368
19,000................................................              1,235              1,098              377
20,000................................................              1,283              1,148              380.
----------------------------------------------------------------------------------------------------------------

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


----------------------------------------------------------------------------------------------------------------
                                                         Number of officers who may be serving in the grade of:
 ``Total number of members of Naval Reserve serving on ---------------------------------------------------------
           full-time reserve component duty:                Lieutenant
                                                            commander          Commander            Captain
----------------------------------------------------------------------------------------------------------------
10,000................................................                807                447              141
11,000................................................                867                467              153
12,000................................................                924                485              163
13,000................................................                980                503              173
14,000................................................              1,035                521              183
15,000................................................              1,088                538              193
16,000................................................              1,142                555              203
17,000................................................              1,195                565              213
18,000................................................              1,246                575              223
19,000................................................              1,291                585              233
20,000................................................              1,334                595              242
21,000................................................              1,364                603              250
22,000................................................              1,384                610              258
23,000................................................              1,400                615              265
24,000................................................              1,410                620              270.
----------------------------------------------------------------------------------------------------------------

    ``(b) Determinations by Interpolation.--If the total number of 
members of a reserve component serving on full-time reserve component 
duty is between any two consecutive numbers in the first column of the 
appropriate table in paragraph (1) or (2) of subsection (a), the 
corresponding authorized strengths for each of the grades shown in that 
table for that component are determined by mathematical interpolation 
between the respective numbers of the two strengths. If the total 
number of members of a reserve component serving on full-time reserve 
component duty is more or less than the highest or lowest number, 
respectively, set forth in the first column of the appropriate table in 
paragraph (1) or (2) of subsection (a), the Secretary concerned shall 
fix the corresponding strengths for the grades shown in that table at 
the same proportion as is reflected in the nearest limit shown in the 
table.
    ``(c) Reallocations to Lower Grades.--Whenever the number of 
officers serving in any grade for duty described in subsection (a) is 
less than the number authorized for that grade under this section, the 
difference between the two numbers may be applied to increase the 
number authorized under this section for any lower grade.
    ``(d) Secretarial Waiver.--Upon determining that it is in the 
national interest to do so, the Secretary of Defense may increase for a 
particular fiscal year the number of reserve officers that may be on 
full-time reserve component duty for a reserve component in a grade 
referred to in a table in subsection (a) by a number that does not 
exceed the number equal to 5 percent of the maximum number specified 
for the grade in that table.
    ``(e) Full-Time Reserve Component Duty Defined.--In this section, 
the term `full-time reserve component duty' means the following duty:
            ``(1) Active duty described in sections 10211, 10302, 
        10303, 10304, 10305, 12310, or 12402 of this title.
            ``(2) Full-time National Guard duty (other than for 
        training) under section 502(f) of title 32.
            ``(3) Active duty described in section 708 of title 32.''.
    (b) Senior Enlisted Members.--The text of section 12012 of title 
10, United States Code, is amended to read as follows:
    ``(a) Limitations.--(1) Of the total number of members of a reserve 
component who are serving on full-time reserve component duty at the 
end of any fiscal year, the number of those members in each of pay 
grades of 
E-8 and E-9 who may be serving on active duty under section 10211 or 
12310, or on full-time National Guard duty under the authority of 
section 502(f) of title 32 (other than for training) in connection with 
organizing, administering, recruiting, instructing, or training the 
reserve components or the National Guard may not, as of the end of that 
fiscal year, exceed the number determined in accordance with the 
following table:


------------------------------------------------------------------------
                                     Number of members of that reserve
  ``Total number of members of a    component who may be serving in the
reserve component serving on full-               grade of:
   time reserve component duty:   --------------------------------------
                                          E-8                 E-9
------------------------------------------------------------------------
Army Reserve:
10,000...........................              1,052              154
11,000...........................              1,126              168
12,000...........................              1,195              180
13,000...........................              1,261              191
14,000...........................              1,327              202
15,000...........................              1,391              213
16,000...........................              1,455              224
17,000...........................              1,519              235
18,000...........................              1,583              246
19,000...........................              1,647              257
20,000...........................              1,711              268
21,000...........................              1,775              278
 
Army National Guard:
20,000...........................              1,650              550
22,000...........................              1,775              615
24,000...........................              1,900              645
26,000...........................              1,945              675
28,000...........................              1,945              705
30,000...........................              1,945              725
32,000...........................              1,945              730
34,000...........................              1,945              735
36,000...........................              1,945              738
38,000...........................              1,945              741
40,000...........................              1,945              743
42,000...........................              1,945              743
 
Naval Reserve:
10,000...........................                340              143
11,000...........................                364              156
12,000...........................                386              169
13,000...........................                407              182
14,000...........................                423              195
15,000...........................                435              208
16,000...........................                447              221
17,000...........................                459              234
18,000...........................                471              247
19,000...........................                483              260
20,000...........................                495              273
21,000...........................                507              286
22,000...........................                519              299
23,000...........................                531              312
24,000...........................                540              325
 
Marine Corps Reserve:
1,100............................                 50               11
1,200............................                 55               12
1,300............................                 60               13
1,400............................                 65               14
1,500............................                 70               15
1,600............................                 75               16
1,700............................                 80               17
1,800............................                 85               18
1,900............................                 89               19
2,000............................                 93               20
2,100............................                 96               21
2,200............................                 99               22
2,300............................                101               23
2,400............................                103               24
2,500............................                105               25
2,600............................                107               26
 
Air Force Reserve:
500..............................                 75               40
1,000............................                145               75
1,500............................                208              105
2,000............................                270              130
2,500............................                325              150
3,000............................                375              170
3,500............................                420              190
4,000............................                460              210
4,500............................                495              230
5,000............................                530              250
5,500............................                565              270
6,000............................                600              290
7,000............................                670              330
8,000............................                740              370
10,000...........................                800              400
 
Air National Guard
5,000............................              1,020              405
6,000............................              1,070              435
7,000............................              1,120              465
8,000............................              1,170              490
9,000............................              1,220              510
10,000...........................              1,270              530
11,000...........................              1,320              550
12,000...........................              1,370              570
13,000...........................              1,420              589
14,000...........................              1,470              608
15,000...........................              1,520              626
16,000...........................              1,570              644
17,000...........................              1,620              661
18,000...........................              1,670              678
19,000...........................              1,720              695
20,000...........................              1,770              712.
------------------------------------------------------------------------

    ``(b) Determinations by Interpolation.--If the total number of 
members of a reserve component serving on full-time reserve component 
duty is between any two consecutive numbers in the first column of the 
appropriate table in paragraph (1) or (2) of subsection (a), the 
corresponding authorized strengths for each of the grades shown in that 
table for that component are determined by mathematical interpolation 
between the respective numbers of the two strengths. If the total 
number of members of a reserve component serving on full-time reserve 
component duty is more or less than the highest or lowest number, 
respectively, set forth in the first column of the table in subsection 
(a), the Secretary concerned shall fix the corresponding strengths for 
the grades shown in the table at the same proportion as is reflected in 
the nearest limit shown in the table.
    ``(c) Reallocations to Lower Grade.--Whenever the number of 
officers serving in pay grade E-9 for duty described in subsection (a) 
is less than the number authorized for that grade under this section, 
the difference between the two numbers may be applied to increase the 
number authorized under this section for pay grade E-8.
    ``(d) Secretarial Waiver.--Upon determining that it is in the 
national interest to do so, the Secretary of Defense may increase for a 
particular fiscal year the number of reserve enlisted members that may 
be on active duty or full-time National Guard duty as described in 
subsection (a) for a reserve component in a pay grade referred to in a 
table in subsection (a) by a number that does not exceed the number 
equal to 5 percent of the maximum number specified for that grade and 
reserve component in the table.
    ``(e) Full-Time Reserve Component Duty Defined.--In this section, 
the term `full-time reserve component duty' has the meaning given the 
term in section 12011(e) of this title.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.

SEC. 416. STRENGTH AND GRADE LIMITATION ACCOUNTING FOR RESERVE 
              COMPONENT MEMBERS ON ACTIVE DUTY IN SUPPORT OF A 
              CONTINGENCY OPERATION.

    (a) Active Duty Strength Accounting.--Section 115(c)(1) of title 
10, United States Code, is amended to read as follows:
            ``(1) increase the end strength authorized pursuant to 
        subsection (a)(1)(A) for a fiscal year for any of the armed 
        forces by--
                    ``(A) a number equal to not more than 1 percent of 
                that end strength; and
                    ``(B) the number (if any) of the members of the 
                reserve components that, as determined by the 
                Secretary, are on active duty under section 12301(d) of 
                this title in support of a contingency operation.''.
    (b) Limitation on Authorized Daily Average for Members in Pay 
Grades E-8 and E-9 on Active Duty.--Section 517 of such title is 
amended by adding at the end 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 grade E-8 or 
E-9 in a fiscal year, as determined under subsection (a), by the number 
(if any) of enlisted members of a reserve component of that armed force 
in that pay grade who, as determined by the Secretary, are on active 
duty under section 12301(d) of this title in support of a contingency 
operation.''.
    (c) Limitation on Authorized Strengths for Commissioned Officers in 
Pay Grades O-4, O-5, and O-6 on Active Duty.--Section 523(b) of such 
title is amended--
            (1) in paragraphs (1) and (2) of subsection (a), by 
        striking ``Except as provided in subsection (c)'' and inserting 
        ``Except as provided in subsections (c) and (e)''; and
            (2) by adding at the end the following new subsection:
    ``(e) The Secretary of Defense may increase the limitation on the 
total number of commissioned officers of an armed force authorized to 
be serving on active duty at the end of any fiscal year in the grade of 
O-4, O-5, or 
O-6, determined under subsection (a), by the number (if any) of 
commissioned officers of a reserve component of that armed force in 
that grade who, as determined by the Secretary, are serving on active 
duty under section 12301(d) of this title in support of a contingency 
operation.''.
    (d) Limitation on Authorized Strengths for General and Flag 
Officers on Active Duty.--Section 526(a) of such title is amended--
            (1) by striking ``Limitations.--The'' and inserting 
        ``Limitations.--(1) Except as provided in paragraph (2), the'';
            (2) by redesignating paragraphs (1), (2), (3), and (4) as 
        subparagraphs (A), (B), (C), and (D), respectively; and
            (3) by adding at the end the following new paragraph (2):
    ``(2) The Secretary of Defense may increase the limitation on the 
number of general and flag officers on active duty, determined under 
paragraph (1), by the number (if any) of reserve component general and 
flag officers who, as determined by the Secretary, are serving on 
active duty under section 12301(d) of this title in support of a 
contingency operation.''.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2002 a total of 
$82,396,900,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2002.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. GENERAL OFFICER POSITIONS.

    (a) Increased Grade for Vice Chief of National Guard Bureau.--
Section 10505(c) of title 10, United States Code, is amended by 
striking ``major general'' and inserting ``lieutenant general''.
    (b) Increased Grade for Heads of Nurse Corps of the Armed Forces.--
(1) Section 3069(b) of title 10, United States Code, is amended by 
striking ``brigadier general'' in the second sentence and inserting 
``major general''.
    (2) The first sentence of section 5150(c) of such title is 
amended--
            (A) by inserting ``rear admiral (upper half) in the case of 
        an officer in the Nurse Corps or'' after ``for promotion to the 
        grade of''; and
            (B) by inserting ``in the case of an officer in the Medical 
        Service Corps'' after ``rear admiral (lower half)''.
    (3) Section 8069(b) of such title is amended by striking 
``brigadier general'' in the second sentence and inserting ``major 
general''.
    (c) Appointment and Grade of Chief of Army Veterinary Corps.--(1) 
Chapter 307 of title 10, United States Code, is amended by inserting 
after section 3070 the following new section 3071:
``Sec. 3071. Veterinary Corps: composition; Chief and assistant chief; 
              appointment; grade
    ``(a) Composition.--The Veterinary Corps consists of the Chief and 
assistant chief of that corps and other officers in grades prescribed 
by the Secretary of the Army.
    ``(b) Chief.--The Secretary of the Army shall appoint the Chief 
from the officers of the Regular Army in that corps whose regular grade 
is above lieutenant colonel and who are recommended by the Surgeon 
General. An appointee who holds a lower regular grade shall be 
appointed in the regular grade of brigadier general. The Chief serves 
during the pleasure of the Secretary, but not for more than four years, 
and may not be reappointed to the same position.
    ``(c) Assistant Chief.--The Surgeon General shall appoint the 
assistant chief from the officers of the Regular Army in that corps 
whose regular grade is above lieutenant colonel. The assistant chief 
serves during the pleasure of the Surgeon General, but not for more 
than four years and may not be reappointed to the same position.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3070 the 
following new item:

``3071. Veterinary Corps: composition; Chief and assistant chief; 
                            appointment; grade.''.
    (d) Exclusions From Limitation of Active Duty Officers in Grades 
Above Major General.--Section 525(b) of title 10, United States Code, 
is amended--
            (1) in paragraph (2)(B), by striking ``16.2 percent'' and 
        inserting ``17.5 percent'';
            (2) in paragraph (3)--
                    (A) by inserting ``(A)'' after ``(3)''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(B) An officer while serving as the Senior Military Assistant to 
the Secretary of Defense, if serving in the grade of general or 
lieutenant general, or admiral or vice admiral, is in addition to the 
number that would otherwise be permitted for his armed force for that 
grade under paragraph (1) or (2).''; and
            (3) by striking paragraph (6) and inserting the following:
    ``(6)(A) An officer while serving in a position named in 
subparagraph (B) is in addition to the number that would otherwise be 
permitted for that officer's armed force for officers serving on active 
duty in grades above major general under paragraph (1).
    ``(B) Subparagraph (A) applies with respect to the following 
positions:
            ``(i) Chief of the National Guard Bureau.
            ``(ii) Vice Chief of the National Guard Bureau.''.
    (e) Repeal of Limitation on Number of Officers on Active Duty in 
the Grades of General or Admiral.--(1) Section 528 of title 10, United 
States Code, is repealed.
    (2) The table of sections at the beginning of chapter 32 of such 
title is amended by striking the item relating to section 528.

SEC. 502. REDUCTION OF TIME-IN-GRADE REQUIREMENT FOR ELIGIBILITY FOR 
              PROMOTION OF FIRST LIEUTENANTS AND LIEUTENANTS (JUNIOR 
              GRADE).

    Paragraph (1) of section 619(a) of title 10, United States Code, is 
amended by striking ``the following period of service'' and all that 
follows through the end of the paragraph and inserting ``eighteen 
months of service in the grade in which he holds a permanent 
appointment.''.

SEC. 503. PROMOTION OF OFFICERS TO THE GRADE OF CAPTAIN IN THE ARMY, 
              AIR FORCE, OR MARINE CORPS OR TO THE GRADE OF LIEUTENANT 
              IN THE NAVY WITHOUT SELECTION BOARD ACTION.

    (a) Active-Duty List Promotions.--(1) Section 611(a) of title 10, 
United States Code, is amended by striking ``Under'' and inserting 
``Except in the case of promotions recommended under section 624(a)(3) 
of this title, under''.
    (2) Section 624(a) of such title is amended by adding at the end 
the following new paragraph (3):
    ``(3) The President may, upon a recommendation of the Secretary of 
the military department concerned approved by the President, promote to 
the grade of captain (for officers of the Regular Army, Regular Air 
Force, or Regular Marine Corps) or lieutenant (for officers of the 
Regular Navy) all fully qualified officers on the active-duty list in 
the permanent or temporary grade of first lieutenant or lieutenant 
(junior grade), respectively, who would be eligible for consideration 
for promotion to the next higher grade by a selection board convened 
under section 611(a) of this title. The Secretary of a military 
department may make such a recommendation whenever the Secretary 
determines that all such officers are needed in the next higher grade 
to accomplish mission objectives. Promotions under this paragraph shall 
be effectuated under regulations prescribed by the Secretary of the 
military department concerned.''.
    (3) Section 631 of such title is amended by adding at the end the 
following new subsection (d):
    ``(d) For the purposes of this chapter--
            ``(1) a recommendation made by the Secretary of the 
        military department concerned under section 624(a)(3) of this 
        title that is approved by the President shall be treated in the 
        same manner as a report of a promotion selection board convened 
        under section 611(a) of this title that is approved by the 
        President; and
            ``(2) an officer of the Regular Army, Regular Air Force, or 
        Regular Marine Corps who holds the regular grade of first 
        lieutenant, and an officer of the Regular Navy who holds the 
        regular grade of lieutenant (junior grade), shall be treated as 
        having failed of selection for promotion if the Secretary of 
        the military department concerned determines that the officer 
        would be eligible for consideration for promotion to the next 
        higher grade by a selection board convened under section 611(a) 
        of this title but is not fully qualified for promotion when 
        recommending for promotion under section 624(a)(3) of this 
        title all fully qualified officers of the officer's armed force 
        in such grade who would be eligible for such consideration.''.
    (b) Reserve Active-Status List Promotions.--(1) Section 14101(a) of 
such title is amended by striking ``Whenever'' and inserting ``Except 
in the case of promotions recommended under section 14308(b)(4) of this 
title, whenever''.
    (2) Section 14308(b) of such title is amended by adding at the end 
the following new paragraph (4):
    ``(4) The President may, upon a recommendation of the Secretary of 
the military department concerned approved by the President, promote to 
the grade of captain (for officers of a reserve component of the Army, 
Air Force, or Marine Corps) or lieutenant (for officers of the Naval 
Reserve) all fully qualified officers on the reserve active-status list 
in the permanent grade of first lieutenant or lieutenant (junior 
grade), respectively, who would be eligible for consideration for 
promotion to the next higher grade by a selection board convened under 
section 14101(a) of this title. The Secretary of a military department 
may make such a recommendation whenever the Secretary determines that 
all such officers are needed in the next higher grade to accomplish 
mission objectives. Promotions under this paragraph shall be 
effectuated under regulations prescribed by the Secretary of the 
military department concerned.''.
    (3) Section 14504 of such title is amended by adding at the end the 
following new subsection (c):
    ``(c) For the purposes of this chapter--
            ``(1) a recommendation made by the Secretary of the 
        military department concerned under section 14308(b)(4) of this 
        title that is approved by the President shall be treated the 
        same as a report of a promotion selection board convened under 
        section 14101(a) of this title that is approved by the 
        President; and
            ``(2) an officer on a reserve active-status list who holds 
        the grade of first lieutenant (in the case of an officer in a 
        reserve component of the Army, Air Force, or Marine Corps) or 
        the grade of lieutenant (junior grade) (in the case of an 
        officer of the Naval Reserve) shall be treated as having failed 
        of selection for promotion if the Secretary of the military 
        department concerned determines that the officer would be 
        eligible for consideration for promotion to the next higher 
        grade by a selection board convened under section 14101(a) of 
        this title but is not fully qualified for promotion when 
        recommending for promotion under section 14308(b)(4) of this 
        title all fully qualified officers of that officer's reserve 
        component in such grade who would be eligible for such 
        consideration.''.

SEC. 504. AUTHORITY TO ADJUST DATE OF RANK.

    (a) Active Duty Officers.--Subsection 741(d) of title 10, United 
States Code, is amended, by adding at the end the following new 
paragraph (4):
    ``(4)(A) The Secretary concerned may adjust the date of rank of an 
officer appointed to a higher grade under section 624(a) of this title 
if the appointment is to a grade below O-7 and is delayed by reason of 
unusual circumstances that cause an unintended delay in the processing 
or approval of--
            ``(i) a report of a selection board recommending the 
        appointment of the officer to that grade; or
            ``(ii) the promotion list established on the basis of that 
        report.
    ``(B) The adjusted date of rank applicable to the grade of an 
officer under subparagraph (A) shall be consistent with the officer's 
position on the promotion list for that grade and competitive category 
when additional officers in that grade and competitive category were 
needed and shall also be consistent with compliance with the applicable 
authorized strengths for officers in that grade and competitive 
category.
    ``(C) The adjusted date of rank applicable to the grade of an 
officer under subparagraph (A) shall be the effective date for the 
officer's pay and allowances for the grade and for the officer's 
position on the active-duty list.
    ``(D) In the case of an officer whose appointment to a higher grade 
under this section is made by and with the advice and consent of the 
Senate, the Secretary concerned shall transmit to the Committee on 
Armed Services of the Senate a notification of any adjustment of a date 
of rank for the appointment of an officer to a higher grade under 
subparagraph (A) to a date that is prior to the date of the advice and 
consent of the Senate on the appointment. The notification shall 
include the name of the officer and a discussion of the reasons for the 
adjustment.''.
    (b) Reserve Officers.--Section 14308(c) of such title is amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2)(A) The Secretary concerned may adjust the date of rank of an 
officer appointed to a higher grade under this section if the 
appointment is to a grade below O-7 and is delayed by reason of unusual 
circumstances that cause an unintended delay in the processing or 
approval of--
            ``(i) a report of a selection board recommending the 
        appointment of the officer to that grade; or
            ``(ii) the promotion list established on the basis of that 
        report.
    ``(B) The adjusted date of rank applicable to the grade of an 
officer under subparagraph (A) shall be consistent with the officer's 
position on the promotion list for that grade and competitive category 
when additional officers in that grade and competitive category were 
needed and shall also be consistent with compliance with the applicable 
authorized strengths for officers in that grade and competitive 
category.
    ``(C) The adjusted date of rank applicable to the grade of an 
officer under subparagraph (A) shall be the effective date for the 
officer's pay and allowances for the grade and for the officer's 
position on the active-duty list.
    ``(D) In the case of an officer whose appointment to a higher grade 
under this section is made by and with the advice and consent of the 
Senate, the Secretary concerned shall transmit to the Committee on 
Armed Services of the Senate a notification of any adjustment of a date 
of rank for the appointment of an officer to a higher grade under 
subparagraph (A) to a date that is prior to the date of the advice and 
consent of the Senate on the appointment. The notification shall 
include the name of the officer and a discussion of the reasons for the 
adjustment.''; and
            (3) in paragraph (3), as redesignated by paragraph (1), by 
        inserting ``provided in paragraph (2) or as otherwise'' after 
        ``Except as''.

SEC. 505. EXTENSION OF DEFERMENTS OF RETIREMENT OR SEPARATION FOR 
              MEDICAL REASONS.

    Section 640 of title 10, United States Code, is amended--
            (1) by inserting ``(a) Deferment.--'' before ``The 
        Secretary''; and
            (b) by adding at the end the following new subsection:
    ``(b) Authority To Extend.--In the case of an officer whose 
retirement or separation under any of sections 632 through 638, or 
section 1251, of this title is deferred under subsection (a), the 
Secretary of the military department concerned may extend the deferment 
by an additional period of not more than 30 days following the 
completion of the evaluation of the officer's physical condition if the 
Secretary determines that continuation of the officer would facilitate 
the officer's transition to civilian life.''.

SEC. 506. EXEMPTION FROM ADMINISTRATIVE LIMITATIONS OF RETIRED MEMBERS 
              ORDERED TO ACTIVE DUTY AS DEFENSE AND SERVICE ATTACHES.

    (a) Limitation of Period of Recalled Service.--Section 688(e)(2) of 
title 10, United States Code, is amended by adding at the end the 
following new subparagraph (D):
            ``(D) An officer who is assigned to duty as a defense 
        attache or service attache for the period of active duty to 
        which ordered.''.
    (b) Limitation on Number of Recalled Officers on Active Duty.--
Section 690(b)(2) of such title is amended by adding at the end the 
following new subparagraph (E):
            ``(E) An officer who is assigned to duty as a defense 
        attache or service attache for the period of active duty to 
        which ordered.''.
    (c) Applicability.--The amendments made by subsections (a) and (b) 
shall apply with respect to officers serving on active duty as a 
defense attache or service attache on or after the date of the 
enactment of this Act.

SEC. 507. CERTIFICATIONS OF SATISFACTORY PERFORMANCE FOR RETIREMENTS OF 
              OFFICERS IN GRADES ABOVE MAJOR GENERAL AND REAR ADMIRAL.

    Section 1370(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(3)(A) The Secretary of Defense may delegate authority to make a 
certification for an officer under paragraph (1) to the Under Secretary 
of Defense for Personnel and Readiness or the Deputy Under Secretary of 
Defense for Personnel and Readiness. The certification authority may 
not be delegated to any other official.
    ``(B) If an official to whom authority is delegated under 
subparagraph (A) determines in the case of an officer that there is 
potentially adverse information on the officer and that the information 
has not previously been reported to the Senate in connection with the 
action of the Senate on a previous appointment of that officer under 
section 601 of this title, the official may not exercise the authority 
in that case, but shall refer the case to the Secretary of Defense. The 
Secretary of Defense shall personally issue or withhold a certification 
for an officer under paragraph (1) in any case referred to the 
Secretary under the preceding sentence.''.

SEC. 508. EFFECTIVE DATE OF MANDATORY SEPARATION OR RETIREMENT OF 
              REGULAR OFFICER DELAYED BY A SUSPENSION OF CERTAIN LAWS 
              UNDER EMERGENCY AUTHORITY OF THE PRESIDENT.

    Section 12305 of title 10, United States Code, is amended by adding 
at the end the following new subsection (c):
    ``(c) In the case of an officer of the Regular Army, Regular Navy, 
Regular Air Force, or Regular Marine Corps whose mandatory separation 
or retirement under section 632, 633, 634, 635, 636, 637, or 1251 of 
this title is delayed by reason of a suspension under this section, the 
separation or retirement of the officer upon termination of the 
suspension shall take effect on the date elected by the officer, but 
not later than 90 days after the date of the termination of the 
suspension.''.

SEC. 509. DETAIL AND GRADE OF OFFICER IN CHARGE OF THE UNITED STATES 
              NAVY BAND.

    Section 6221 of title 10, United States Code, is amended--
            (1) by inserting ``(a) Establishment.--''; and
            (2) by adding at the end the following new subsection:
    ``(b) Officer in Charge.--(1) An officer serving in a grade above 
lieutenant may be detailed as Officer in Charge of the United States 
Navy Band.
    ``(2) While serving as Officer in Charge of the United States Navy 
Band, an officer holds the grade of captain if appointed to that grade 
by the President, by and with the advice and consent of the Senate, 
notwithstanding the limitation in section 5596(d) of this title.''.

             Subtitle B--Reserve Component Personnel Policy

SEC. 511. REAUTHORIZATION AND EXPANSION OF TEMPORARY WAIVER OF THE 
              REQUIREMENT FOR A BACCALAUREATE DEGREE FOR PROMOTION OF 
              CERTAIN RESERVE OFFICERS OF THE ARMY.

    (a) Reauthorization.--Subsection (b) of section 516 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 112 Stat. 2008; 10 U.S.C. 12205 note) is amended 
by striking ``September 30, 2000'' and inserting ``September 30, 
2003''.
    (b) Expansion of Eligibility.--Subsection (a) of such section is 
amended by striking ``before the date of the enactment of this Act''.

SEC. 512. STATUS LIST OF RESERVE OFFICERS ON ACTIVE DUTY FOR A PERIOD 
              OF THREE YEARS OR LESS.

    (a) Clarification.--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), 
                under a call or order to active duty specifying a 
                period of three years or less and continuation 
                (pursuant to regulations prescribed by the Secretary 
                concerned) on the reserve active-status list;''.
    (b) Retroactive Adjustments.--(1) The Secretary of the military 
department concerned--
            (A) may place on the active-duty list of the armed force 
        concerned any officer under the jurisdiction of the Secretary 
        who was placed on the reserve active-status list under 
        subparagraph (D) of section 641(1) of title 10, United States 
        Code, as added by section 521(2) of the Floyd D. Spence 
        National Defense Authorization Act for Fiscal Year 2001 (as 
        enacted into law by Public Law 106-398; 114 Stat. 1654A-108); 
        and
            (B) for the purposes of chapter 36 of such title (other 
        than section 640 of such title and, in the case of a warrant 
        officer, section 628 of such title), shall treat an officer 
        placed on the active-duty list under subparagraph (A) as having 
        been on the active-duty list continuously from the date on 
        which the officer was placed on the reserve active-status list 
        as described in that subparagraph.
    (2) The Secretary of the military department concerned may place on 
the reserve active-status list of the armed force concerned, effective 
as of the date of the enactment of this Act, any officer who was placed 
on the active-duty list before that date and after October 29, 1997, 
while on active duty under section 12301(d) of title 10, United States 
Code, other than as described under section 641(1)(C) of such title, 
under a call or order to active duty specifying a period of three years 
or less.

SEC. 513. EQUAL TREATMENT OF RESERVES AND FULL-TIME ACTIVE DUTY MEMBERS 
              FOR PURPOSES OF MANAGING DEPLOYMENTS OF PERSONNEL.

    (a) Residence of Reserves at Home Station.--Section 991(b)(2) of 
title 10, United States Code, is amended to read as follows:
    ``(2) In the case of a member of a reserve component who is 
performing active service pursuant to orders that do not establish a 
permanent change of station, the housing referred to in paragraph (1) 
is any housing (which may include the member's residence) that the 
member usually occupies for use during off-duty time when on garrison 
duty at the member's permanent duty station or homeport, as the case 
may be.''.
    (b) Effective Date.--This section and the amendment made by this 
section shall take effect on October 1, 2001, and shall apply with 
respect to duty performed on or after that date.

SEC. 514. MODIFICATION OF PHYSICAL EXAMINATION REQUIREMENTS FOR MEMBERS 
              OF THE INDIVIDUAL READY RESERVE.

    Section 10206 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in the first sentence--
                            (i) by striking ``Ready Reserve'' and 
                        inserting ``Selected Reserve''; and
                            (ii) by striking ``his'' and inserting 
                        ``the member's''; and
                    (B) in the second sentence, by striking ``Each 
                Reserve'' and inserting the following:
    ``(c) Each Reserve'';
            (2) by redesignating subsection (b) as subsection (d); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) A member of the Individual Ready Reserve or inactive National 
Guard shall be examined for physical fitness as necessary to determine 
the member's physical fitness for military duty or for promotion, 
attendance at a school of the armed forces, or other action related to 
career progression.''.

SEC. 515. MEMBERS OF RESERVE COMPONENTS AFFLICTED WHILE REMAINING 
              OVERNIGHT AT DUTY STATION WITHIN COMMUTING DISTANCE OF 
              HOME.

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

SEC. 516. RETIREMENT OF RESERVE PERSONNEL WITHOUT REQUEST.

    (a) Retired Reserve.--Section 10154(2) of title 10, United States 
Code, is amended by striking ``upon their request''.
    (b) Retirement for Failure of Selection of Promotion.--(1) 
Paragraph (2) of section 14513 of such title is amended by striking ``, 
if the officer is qualified and applies for such transfer'' and 
inserting ``if the officer is qualified for the transfer and does not 
request (in accordance with regulations prescribed by the Secretary 
concerned) not to be transferred to the Retired Reserve''.
    (2)(A) The heading for such section is amended to read as follows:
``Sec. 14513. Transfer, retirement, or discharge for failure of 
              selection of promotion''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 1407 of title 10, United States Code, is 
amended to read as follows:

``14513. Transfer, retirement, or discharge for failure of selection 
                            for promotion.''.
    (c) Retirement for Years of Service or After Selection for Early 
Removal.--Section 14514 of such title is amended--
            (1) in paragraph (1), by striking ``, if the officer is 
        qualified and applies for such transfer'' and inserting ``if 
        the officer is qualified for the transfer and does not request 
        (in accordance with regulations prescribed by the Secretary 
        concerned) not to be transferred to the Retired Reserve''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) be discharged from the officer's reserve appointment 
        if the officer is not qualified for transfer to the Retired 
        Reserve or has requested (in accordance with regulations 
        prescribed by the Secretary concerned) not to be so 
        transferred.''.
    (d) Retirement for Age.--Section 14515 of such title is amended--
            (1) in paragraph (1), by striking ``, if the officer is 
        qualified and applies for such transfer'' and inserting ``if 
        the officer is qualified for the transfer and does not request 
        (in accordance with regulations prescribed by the Secretary 
        concerned) not to be transferred to the Retired Reserve''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) be discharged from the officer's reserve appointment 
        if the officer is not qualified for transfer to the Retired 
        Reserve or has requested (in accordance with regulations 
        prescribed by the Secretary concerned) not to be so 
        transferred.''.
    (e) Discharge or Retirement of Warrant Officers for Years of 
Service or Age.--(1) Chapter 1207 of such title is amended by adding at 
the end the following new section:
``Sec. 12244. Warrant officers: discharge or retirement for years of 
              service or for age
    ``Each reserve warrant officer of the Army, Navy, Air Force, or 
Marine Corps who is in an active status and has reached the maximum 
years of service or age prescribed by the Secretary concerned shall--
            ``(1) be transferred to the Retired Reserve if the warrant 
        officer is qualified for the transfer and does not request (in 
        accordance with regulations prescribed by the Secretary 
        concerned) not to be transferred to the Retired Reserve; or
            ``(2) be discharged if the warrant officer is not qualified 
        for transfer to the Retired Reserve or has requested (in 
        accordance with regulations prescribed by the Secretary 
        concerned) not to be so transferred.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``12244. Warrant officers: discharge or retirement for years of service 
                            or for age.''.
    (f) Discharge or Retirement of Enlisted Members for Years of 
Service or Age.--(1) Chapter 1203 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 12108. Enlisted members: discharge or retirement for years of 
              service or for age
    ``Each reserve enlisted member of the Army, Navy, Air Force, or 
Marine Corps who is in an active status and has reached the maximum 
years of service or age prescribed by the Secretary concerned shall--
            ``(1) be transferred to the Retired Reserve if the member 
        is qualified for the transfer and does not request (in 
        accordance with regulations prescribed by the Secretary 
        concerned) not to be transferred to the Retired Reserve; or
            ``(2) be discharged if the member is not qualified for 
        transfer to the Retired Reserve or has requested (in accordance 
        with regulations prescribed by the Secretary concerned) not to 
        be so transferred.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``12108. Enlisted members: discharge or retirement for years of service 
                            or for age.''.
    (g) Effective Date.--This section and the amendments made by this 
section shall take effect on the first day of the first month that is 
more than 180 days after the date of the enactment of this Act.

SEC. 517. SPACE-REQUIRED TRAVEL BY RESERVES ON MILITARY AIRCRAFT.

    (a) Correction of Impairment to Authorized Travel With 
Allowances.--Section 18505(a) of title 10, United States Code, is 
amended by striking ``annual training duty or'' each place it appears.
    (b) Conforming Amendments.--(1) The heading for such section is 
amended to read as follows:
``Sec. 18505. Reserves traveling for inactive-duty training: space-
              required travel on military aircraft''.
    (2) The item relating to such section in the table of contents at 
the beginning of chapter 1805 of title 10, United States Code, is 
amended to read as follows:

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

                   Subtitle C--Education and Training

SEC. 531. IMPROVED BENEFITS UNDER THE ARMY COLLEGE FIRST PROGRAM.

    (a) Increased Maximum Period of Delayed Entry.--Section 573 of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 113 Stat. 623; 10 U.S.C. 513 note) is amended--
            (1) in subsection (b)--
                    (A) by striking the matter preceding paragraph (1) 
                and inserting the following:
    ``(b) Delayed Entry With Allowance for Higher Education.--Under the 
pilot program, the Secretary may--
            ``(1) exercise the authority under section 513 of title 10, 
        United States Code--'';
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and realigning 
                those subparagraphs four ems from the left margin;
                    (C) in subparagraph (A), as so redesignated, by 
                inserting ``and'' after the semicolon; and
                    (D) in subparagraph (B), as so redesignated, by 
                striking ``two years after the date of such enlistment 
                as a Reserve under paragraph (1)'' and inserting ``the 
                maximum period of delay determined for the person under 
                subsection (c)''; and
            (2) in subsection (c)--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraph (1)(B)'';
                    (B) by striking ``two-year period'' and inserting 
                ``30-month period''; and
                    (C) by striking ``paragraph (1)'' and inserting 
                ``paragraph (1)(A)''.
    (b) Allowance Eligibility and Amount.--(1) Such section is further 
amended--
            (A) in subsection (b), by striking paragraph (3) and 
        inserting the following:
            ``(2) subject to paragraph (2) of subsection (d) and except 
        as provided in paragraph (3) of such subsection, pay an 
        allowance to the person for each month of that period during 
        which the member is enrolled in and pursuing such a program''; 
        and
            (B) in subsection (d)--
                    (i) by redesignating paragraph (2) as paragraph 
                (4);
                    (ii) by striking paragraph (1) and inserting the 
                following new paragraphs:
    ``(1) The monthly allowance paid under subsection (b)(2) shall be 
equal to the amount of the subsistence allowance provided for certain 
members of the Senior Reserve Officers' Training Corps under section 
209(a) of title 37, United States Code.
    ``(2) An allowance may not be paid to a person under this section 
for more than 24 months.
    ``(3) A member of the Selected Reserve of a reserve component may 
be paid an allowance under this section only for months during which 
the member performs satisfactorily as a member of a unit of the reserve 
component that trains as prescribed in section 10147(a)(1) of title 10, 
United States Code, or section 502(a) of title 32, United States Code. 
Satisfactory performance shall be determined under regulations 
prescribed by the Secretary.''
    (2) The heading for such subsection is amended by striking ``Amount 
of''.
    (c) Ineligibility for Loan Repayments.--Such section is further 
amended--
            (1) by redesignating subsections (e), (f), and (g) as 
        subsections (g), (h), and (i), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Ineligibility for Loan Repayments.--A person who has received 
an allowance under this section is not eligible for any benefits under 
chapter 109 of title 10, United States Code.
    (d) Recoupment of Allowance.--Such section, as amended by 
subsection (c), is further amended by inserting after subsection (e) 
the following new subsection:
    ``(f) Recoupment of Allowance.--(1) A person who, after receiving 
an allowance under this section, fails to complete the total period of 
service required of that person in connection with delayed entry 
authorized for the person under section 513 of title 10, United States 
Code, shall repay the United States the amount which bears the same 
ratio to the total amount of that allowance paid to the person as the 
unserved part of the total required period of service bears to the 
total period.
          ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
          ``(3) A discharge of a person in bankruptcy under title 11, 
United States Code, that is entered less than five years after the date 
on which the person was, or was to be, enlisted in the regular Army 
pursuant to the delayed entry authority under section 513 of title 10, 
United States Code, does not discharge that person from a debt arising 
under paragraph (1).
    ``(4) The Secretary of the Army may waive, in whole or in part, a 
debt arising under paragraph (1) in any case for which the Secretary 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001, and shall apply with respect to persons who, 
on or after that date, are enlisted as described in subsection (a) of 
section 513 of title 10, United States Code, with delayed entry 
authorized under that section.

SEC. 532. REPEAL OF LIMITATION ON NUMBER OF JUNIOR RESERVE OFFICERS' 
              TRAINING CORPS UNITS.

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

SEC. 533. ACCEPTANCE OF FELLOWSHIPS, SCHOLARSHIPS, OR GRANTS FOR LEGAL 
              EDUCATION OF OFFICERS PARTICIPATING IN THE FUNDED LEGAL 
              EDUCATION PROGRAM.

    (a) FLEP Detail.--Section 2004 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(g) Acceptance of a fellowship, scholarship, or grant as 
financial assistance for training described in subsection (a) in 
accordance with section 2603(a) of this title does not disqualify the 
officer accepting it from also being detailed at a law school for that 
training under this section. Service obligations incurred under 
subsection (b)(2)(C) and section 2603(b) of this title with respect to 
the same training shall be served consecutively.''.
    (b) Fellowships, Scholarships, or Grants.--Section 2603 of such 
title is amended by adding at the end the following new subsection:
    ``(c) A detail of an officer for training at a law school under 
section 2004 of this title does not disqualify the officer from also 
accepting a fellowship, scholarship, or grant under this section as 
financial assistance for that training. Service obligations incurred 
under subsection (b) and section 2004(b)(2)(C) of this title with 
respect to the same training shall be served consecutively.''.

SEC. 534. GRANT OF DEGREE BY DEFENSE LANGUAGE INSTITUTE FOREIGN 
              LANGUAGE CENTER.

    (a) Authority.--Chapter 108 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2167. Defense Language Institute: associate of arts
    ``Under regulations prescribed by the Secretary of Defense, the 
Commandant of the Foreign Language Center of the Defense Language 
Institute may confer an associate of arts degree in foreign language 
upon graduates of the Institute who fulfill the requirements for the 
degree, as certified by the Provost of the Institute.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2167. Defense Language Institute: associate of arts.''.

SEC. 535. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD THE DEGREE 
              OF MASTER OF STRATEGIC STUDIES.

    (a) Authority.--(1) Subsection (a) of section 7102 of title 10, 
United States Code, is amended to read as follows:
    ``(a) Authority.--Upon the recommendation of the Director and 
faculty of a college of the Marine Corps University, the President of 
the Marine Corps University may confer a degree upon graduates of the 
college who fulfill the requirements for the degree, as follows:
            ``(1) For the Marine Corps War College, the degree of 
        master of strategic studies.
            ``(2) For the Command and Staff College, the degree of 
        master of military studies.''.
    (2)(A) The heading for such section is amended to read as follows:
``Sec. 7102. Marine Corps University: masters degrees''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 609 of title 10, United States Code, is 
amended to read as follows:

``7102. Marine Corps University: masters degrees.''.
    (b) Condition for Initial Exercise of Authority.--(1) The President 
of the Marine Corps University may exercise the authority provided 
under section 7102(a)(1) of title 10, United States Code, only after 
the Secretary of Education has notified the Secretary of the Navy of a 
determination made under paragraph (2) 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 the requirements typically imposed for awards of the 
degree of master of arts by institutions of higher education in the 
United States.
    (2) The Secretary of Education shall review the requirements 
established by the Marine Corps War College of the Marine Corps 
University for the degree of master of strategic studies, determine 
whether the requirements are in accordance with the requirements 
typically imposed for awards of the degree of master of arts by 
institutions of higher education in the United States, and notify the 
Secretary of the Navy of the determination.

SEC. 536. FOREIGN PERSONS ATTENDING THE SERVICE ACADEMIES.

    (a) United States Military Academy.--(1) Subsection (a)(1) of 
section 4344 of title 10, United States Code, is amended by striking 
``not more than 40 persons'' and inserting ``not more than 60 
persons''.
    (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver 
        of reimbursement is granted by the Secretary of Defense'' in 
        the first sentence; and
            (B) by striking paragraph (3) and inserting the following:
    ``(3) The Secretary of Defense may waive, in whole or in part, the 
requirement for reimbursement of the cost of instruction for a cadet 
under paragraph (2). In the case of a partial waiver, the Secretary 
shall establish the amount waived.''.
    (b) United States Naval Academy.--(1) Subsection (a)(1) of section 
6957 of such title is amended by striking ``not more than 40 persons'' 
and inserting ``not more than 60 persons''.
    (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver 
        of reimbursement is granted by the Secretary of Defense'' in 
        the first sentence; and
            (B) by striking paragraph (3) and inserting the following:
    ``(3) The Secretary of Defense may waive, in whole or in part, the 
requirement for reimbursement of the cost of instruction for a 
midshipman under paragraph (2). In the case of a partial waiver, the 
Secretary shall establish the amount waived.''.
    (c) United States Air Force Academy.--(1) Subsection (a)(1) of 
section 9344 of such title is amended by striking ``not more than 40 
persons'' and inserting ``not more than 60 persons''.
    (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver 
        of reimbursement is granted by the Secretary of Defense'' in 
        the first sentence; and
            (B) by striking paragraph (3) and inserting the following:
    ``(3) The Secretary of Defense may waive, in whole or in part, the 
requirement for reimbursement of the cost of instruction for a cadet 
under paragraph (2). In the case of a partial waiver, the Secretary 
shall establish the amount waived.''.
    (d) Applicability.--The amendments made by this section shall apply 
with respect to academic years that begin after October 1, 2001.

SEC. 537. EXPANSION OF FINANCIAL ASSISTANCE PROGRAM FOR HEALTH-CARE 
              PROFESSIONALS IN RESERVE COMPONENTS TO INCLUDE STUDENTS 
              IN PROGRAMS OF EDUCATION LEADING TO INITIAL DEGREE IN 
              MEDICINE OR DENTISTRY.

    (a) Medical and Dental Student Stipend.--Section 16201 of title 10, 
United States Code, is amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Programs Leading to Initial Medical or Dental Degree.--(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 of the armed forces; and
            ``(B) is enrolled or has been accepted for enrollment in an 
        accredited medical or dental school in a program of education 
        and training that results in an initial degree in medicine or 
        dentistry.
    ``(2) Under the agreement--
            ``(A) the Secretary of the military department concerned 
        shall agree to pay the participant a stipend, in the amount 
        determined under subsection (f), for the period or the 
        remainder of the period that the student is satisfactorily 
        progressing toward an initial degree in medicine or dentistry 
        in a program of 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--
                    ``(i) to complete the program of education and 
                training in which enrolled or accepted for enrollment 
                as described in paragraph (1)(B);
                    ``(ii) to accept an appointment or designation in 
                the participant's reserve component, if tendered, based 
                upon the participant's health profession, following 
                satisfactory completion of the educational and 
                internship components of the program of education and 
                training;
                    ``(iii) if required by regulations prescribed by 
                the Secretary of Defense, to apply for (if eligible) 
                and accept (if offered) residency training in a health 
                profession skill that has been designated by the 
                Secretary of Defense as a skill critically needed by 
                the armed forces in wartime; and
                    ``(iv) to serve in the Selected Reserve, upon 
                successful completion of the program, for the period of 
                service applicable under paragraph (3).
    ``(3)(A) Except as provided in subparagraph (B), the minimum period 
for which a participant shall serve in the Selected Reserve under the 
agreement pursuant to paragraph (2)(D)(iv) shall be one year in the 
Selected Reserve for each six months, or part thereof, for which the 
participant is provided a stipend pursuant to the agreement.
    ``(B) If a participant referred to in subparagraph (A) enters into 
an agreement under subsection (b) and, after completing a program of 
education and training for which a stipend was provided under this 
subsection, successfully completes residency training in the specialty 
covered by the agreement, the minimum period for which the participant 
shall serve in the Selected Reserve under that agreement and the 
agreement under this subsection shall be one year for each year, or 
part thereof, for which a stipend was provided under this chapter.''.
    (b) Amount of Stipend.--Subsection (f) of such section, as 
redesignated by subsection (a), is amended by striking ``or (c)'' and 
inserting ``, (c), or (e)''.
    (c) Eligibility for Assistance for Graduate Medical or Dental 
Training.--Subsection (b) of such section is amended--
            (1) by striking ``Specialties.--'' and inserting ``Wartime 
        Specialties.--''; and
            (2) in paragraph (1)(B), by inserting ``, or has been 
        appointed,'' after ``assignment''.
    (d) Service Obligation for Stipend for Other Professional 
Programs.--(1) Subsection (b)(2)(D) of such section by striking ``agree 
to serve, upon successful completion of the program, two years in the 
Ready Reserve for each year,'' and inserting ``agree (subject to 
subsection (e)(3)(B)) to serve, upon successful completion of the 
program, one year in the Ready Reserve for each six months,''.
    (2) Subsection (c)(2)(D) of such section is 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) Conforming Amendments.--(1) Subsection (a) of such section is 
amended--
            (A) in the first sentence--
                    (i) by inserting ``in health professions and'' 
                after ``qualified''; and
                    (ii) by striking ``training in such'' and inserting 
                ``education and training in such professions and''; and
            (B) in the second sentence, by striking ``training in 
        certain'' and inserting ``education and training in certain 
        health professions and''.
    (2) Subsections (b)(2)(A) and (c)(2)(A) of such section are amended 
by striking ``subsection (e)'' and inserting ``subsection (f)''.

SEC. 538. PILOT PROGRAM FOR DEPARTMENT OF VETERANS AFFAIRS SUPPORT FOR 
              GRADUATE MEDICAL EDUCATION AND TRAINING OF MEDICAL 
              PERSONNEL OF THE ARMED FORCES.

    (a) Requirement for Program.--The Secretary of Defense and the 
Secretary of Veterans Affairs may jointly carry out a pilot program of 
graduate medical education and training for medical personnel of the 
Armed Forces.
    (b) Department of Veterans Affairs Medical Centers.--Under any 
pilot program carried out under this section, the Secretary of Defense 
and the Secretary of Veterans Affairs shall provide for medical 
personnel of the Armed Forces to pursue one or more programs of 
graduate medical education and training in one or more medical centers 
of the Department of Veterans Affairs.
    (c) Agreement.--The Secretary of Defense and the Secretary of 
Veterans Affairs shall enter into an agreement for carrying out any 
pilot program under this section. The agreement shall provide a means 
for the Secretary of Defense to defray the costs incurred by the 
Secretary of Veterans Affairs in providing the graduate medical 
education and training in, or the use of, the facility or facilities of 
the Department of Veterans Affairs participating in the pilot program.
    (d) Use of Existing Authorities.--To carry out the pilot program, 
the Secretary of Defense and the Secretary of Veterans Affairs shall 
exercise authorities provided to the Secretaries, respectively, under 
other laws relating to the furnishing or support of medical education 
and the cooperative use of facilities.
    (e) Period of Program.--Any pilot program carried out under this 
section shall begin not later than August 1, 2002, and shall terminate 
on July 31, 2007.
    (f) Annual Report.--(1) Not later than January 31, 2003, and 
January 31 of each year thereafter, the Secretary of Defense and the 
Secretary of Veterans Affairs shall jointly submit to Congress a report 
on the conduct of any pilot program carried out under this section. The 
report shall cover the preceding year and shall include the 
Secretaries' assessment of the efficacy of providing for medical 
personnel of the Armed Forces to pursue programs of graduate medical 
education and training in medical centers of the Department of Veterans 
Affairs.
    (2) The reporting requirement under this subsection shall terminate 
upon the submittal of the report due on January 31, 2008.

SEC. 539. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE UNDER 
              MONTGOMERY GI BILL BY MEMBERS OF THE ARMED FORCES WITH 
              CRITICAL MILITARY SKILLS.

    (a) Authority To Transfer to Family Members.--(1) Subchapter II of 
chapter 30 of title 38, United States Code, is amended by adding at the 
end the following new section:
``Sec. 3020. Transfer of entitlement to basic educational assistance: 
              members of the Armed Forces with critical military skills
    ``(a) In General.--Subject to the provisions of this section, each 
Secretary concerned may, for the purpose of enhancing recruitment and 
retention of members of the Armed Forces with critical military skills 
and at such Secretary's sole discretion, permit an individual described 
in subsection (b) who is entitled to basic educational assistance under 
this subchapter to elect to transfer, in whole or in part, up to 18 
months of such individual's entitlement to such assistance to the 
dependents specified in subsection (c).
    ``(b) Eligible Individuals.--An individual referred to in 
subsection (a) is any member of the Armed Forces who, at the time of 
the approval by the Secretary concerned of the member's request to 
transfer entitlement to basic educational assistance under this 
section--
            ``(1) has completed six years of service in the Armed 
        Forces;
            ``(2) either--
                    ``(A) has a critical military skill designated by 
                the Secretary concerned for purposes of this section; 
                or
                    ``(B) is in a military specialty designated by the 
                Secretary concerned for purposes of this section as 
                requiring critical military skills; and
            ``(3) enters into an agreement to serve at least four more 
        years as a member of the Armed Forces.
    ``(c) Eligible Dependents.--An individual approved to transfer an 
entitlement to basic educational assistance under this section may 
transfer the individual's entitlement as follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in 
        paragraphs (1) and (2).
    ``(d) Limitation on Months of Transfer.--The total number of months 
of entitlement transferred by an individual under this section may not 
exceed 18 months.
    ``(e) Designation of Transferee.--An individual transferring an 
entitlement to basic educational assistance under this section shall--
            ``(1) designate the dependent or dependents to whom such 
        entitlement is being transferred and the percentage of such 
        entitlement to be transferred to each such dependent; and
            ``(2) specify the period for which the transfer shall be 
        effective for each dependent designated under paragraph (1).
    ``(f) Time for Transfer; Revocation and Modification.--(1) Subject 
to the time limitation for use of entitlement under section 3031 of 
this title, an individual approved to transfer entitlement to basic 
educational assistance under this section may transfer such entitlement 
at any time after the approval of individual's request to transfer such 
entitlement without regard to whether the individual is a member of the 
Armed Forces when the transfer is executed.
    ``(2)(A) An individual transferring entitlement under this section 
may modify or revoke at any time the transfer of any unused portion of 
the entitlement so transferred.
    ``(B) The modification or revocation of the transfer of entitlement 
under this paragraph shall be made by the submittal of written notice 
of the action to both the Secretary concerned and the Secretary of 
Veterans Affairs.
    ``(g) Commencement of Use.--A dependent to whom entitlement to 
basic educational assistance is transferred under this section may not 
commence the use of the transferred entitlement until the following:
            ``(1) In the case of entitlement transferred to a spouse, 
        the completion by the individual making the transfer of 6 years 
        of service in the Armed Forces.
            ``(2) In the case of entitlement transferred to a child, 
        both--
                    ``(A) the completion by the individual making the 
                transfer of 10 years of service in the Armed Forces; 
                and
                    ``(B) either--
                            ``(i) the completion by the child of the 
                        requirements of a secondary school diploma (or 
                        equivalency certificate); or
                            ``(ii) the attainment by the child of 18 
                        years of age.
    ``(h) Additional Administrative Matters.--(1) The use of any 
entitlement to basic educational assistance transferred under this 
section shall be charged against the entitlement of the individual 
making the transfer at the rate of one month for each month of 
transferred entitlement that is used.
    ``(2) Except as provided under subsection (e)(2) and subject to 
paragraphs (4) and (5), a dependent to whom entitlement is transferred 
under this section is entitled to basic educational assistance under 
this subchapter in the same manner and at the same rate as the 
individual from whom the entitlement was transferred.
    ``(3) The death of an individual transferring an entitlement under 
this section shall not affect the use of the entitlement by the 
individual to whom the entitlement is transferred.
    ``(4) Notwithstanding section 3031 of this title, a child to whom 
entitlement is transferred under this section may not use any 
entitlement so transferred after attaining the age of 26 years.
    ``(5) The administrative provisions of this chapter (including the 
provisions set forth in section 3034(a)(1) of this title) shall apply 
to the use of entitlement transferred under this section, except that 
the dependent to whom the entitlement is transferred shall be treated 
as the eligible veteran for purposes of such provisions.
    ``(6) The purposes for which a dependent to whom entitlement is 
transferred under this section may use such entitlement shall include 
the pursuit and completion of the requirements of a secondary school 
diploma (or equivalency certificate).
    ``(i) Overpayment.--(1) In the event of an overpayment of basic 
educational assistance with respect to a dependent to whom entitlement 
is transferred under this section, the dependent and the individual 
making the transfer shall be jointly and severally liable to the United 
States for the amount of the overpayment for purposes of section 3685 
of this title.
    ``(2) Except as provided in paragraph (3), if an individual 
transferring entitlement under this section fails to complete the 
service agreed to by the individual under subsection (b)(3) in 
accordance with the terms of the agreement of the individual under that 
subsection, the amount of any transferred entitlement under this 
section that is used by a dependent of the individual as of the date of 
such failure shall be treated as an overpayment of basic educational 
assistance under paragraph (1).
    ``(3) Paragraph (2) shall not apply in the case of an individual 
who fails to complete service agreed to by the individual--
            ``(A) by reason of the death of the individual; or
            ``(B) for a reason referred to in section 
        3011(a)(1)(A)(ii)(I) of this title.
    ``(j) Approvals of Transfer Subject to Availability of 
Appropriations.--The Secretary concerned may approve transfers of 
entitlement to basic educational assistance under this section in a 
fiscal year only to the extent that appropriations for military 
personnel are available in the fiscal year for purposes of making 
deposits in the Department of Defense Education Benefits Fund under 
section 2006 of title 10 in the fiscal year to cover the present value 
of future benefits payable from the Fund for the Department of Defense 
portion of payments of basic educational assistance attributable to 
increased usage of benefits as a result of such transfers of 
entitlement in the fiscal year.
    ``(k) Regulations.--The Secretary of Defense shall prescribe 
regulations for purposes of this section. Such regulations shall 
specify the manner and effect of an election to modify or revoke a 
transfer of entitlement under subsection (f)(2), and shall specify the 
manner of the applicability of the administrative provisions referred 
to in subsection (h)(5) to a dependent to whom entitlement is 
transferred under this section.
    ``(l) Annual Reports.--(1) Not later than January 31, 2003, and 
each year thereafter, each Secretary concerned shall submit to the 
Committees on Armed Services of the Senate and House of Representatives 
a report on the transfers of entitlement to basic educational 
assistance under this section that were approved by such Secretary 
during the preceding year.
    ``(2) Each report shall set forth--
            ``(A) the number of transfers of entitlement under this 
        section that were approved by such Secretary during the 
        preceding year; or
            ``(B) if no transfers of entitlement under this section 
        were approved by such Secretary during that year, a 
        justification for such Secretary's decision not to approve any 
        such transfers of entitlement during that year.
    ``(m) Secretary Concerned Defined.--Notwithstanding section 101(25) 
of this title, in this section, the term `Secretary concerned' means--
            ``(1) the Secretary of the Army with respect to matters 
        concerning the Army;
            ``(2) the Secretary of the Navy with respect to matters 
        concerning the Navy or the Marine Corps;
            ``(3) the Secretary of the Air Force with respect to 
        matters concerning the Air Force; and
            ``(4) the Secretary of the Defense with respect to matters 
        concerning the Coast Guard, or the Secretary of Transportation 
        when it is not operating as a service in the Navy.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3019 the 
following new item:

``3020. Transfer of entitlement to basic educational assistance: 
                            members of the Armed Forces with critical 
                            military skills.''.
    (b) Treatment Under Department of Defense Education Benefits 
Fund.--Section 2006(b)(2) of title 10, United States Code, is amended 
by adding at the end the following:
                    ``(D) The present value of future benefits payable 
                from the Fund for the Department of Defense portion of 
                payments of educational assistance under subchapter II 
                of chapter 30 of title 38 attributable to increased 
                usage of benefits as a result of transfers of 
                entitlement to basic educational assistance under 
                section 3020 of that title during such period.''.
    (c) Plan for Implementation.--Not later than June 30, 2002, the 
Secretary of Defense shall submit to Congress a report describing the 
manner in which the Secretaries of the military departments and the 
Secretary of Transportation propose to exercise the authority granted 
by section 3020 of title 38, United States Code, as added by subsection 
(a). The report shall include the regulations prescribed under 
subsection (k) of that section for purposes of the exercise of the 
authority.
    (d) Funding for Fiscal Year 2002.--Of the amount authorized to be 
appropriated to the Department of Defense for military personnel for 
fiscal year 2002 by section 421, $30,000,000 may be available in fiscal 
year 2002 for deposit into the Department of Defense Education Benefits 
Fund under section 2006 of title 10, United States Code, for purposes 
of covering payments of amounts under subparagraph (D) of section 
2006(b)(2) of title 10, United States Code (as added by subsection 
(b)), as a result of transfers of entitlement to basic educational 
assistance under section 3020 of title 38, United States Code (as added 
by subsection (a)).

SEC. 540. PARTICIPATION OF REGULAR MEMBERS OF THE ARMED FORCES IN THE 
              SENIOR RESERVE OFFICERS' TRAINING CORPS.

    (a) Eligibility.--Section 2104(b)(3) of title 10, United States 
Code, is amended by inserting ``the regular component or'' after 
``enlist in''.
    (b) Pay Rate While on Field Training or Practice Cruise.--Section 
209(c) of title 37, United States Code, is amended by inserting before 
the period at the end the following: ``, except that the rate for a 
cadet or midshipmen who is a member of the regular component of an 
armed force shall be the rate of basic pay applicable to the member 
under section 203 of this title''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2001.

           Subtitle D--Decorations, Awards, and Commendations

SEC. 551. 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. 552. REVIEW REGARDING AWARD OF MEDAL OF HONOR TO CERTAIN JEWISH 
              AMERICAN WAR VETERANS.

    (a) Review Required.--The Secretary of each military department 
shall review the service records of each Jewish American war veteran 
described in subsection (b) to determine whether or not that veteran 
should be awarded the Medal of Honor.
    (b) Covered Jewish American War Veterans.--The Jewish American war 
veterans whose service records are to be reviewed under subsection (a) 
are the following:
            (1) Any Jewish American war veteran who was previously 
        awarded the Distinguished Service Cross, the Navy Cross, or the 
        Air Force Cross.
            (2) Any other Jewish American war veteran whose name is 
        submitted to the Secretary concerned for such purpose by the 
        Jewish War Veterans of the United States of America before the 
        end of the one-year period beginning on the date of the 
        enactment of this Act.
    (c) Consultations.--In carrying out the review under subsection 
(a), the Secretary of each military department shall consult with the 
Jewish War Veterans of the United States of America and with such other 
veterans service organizations as the Secretary considers appropriate.
    (d) Recommendation Based on Review.--If the Secretary concerned 
determines, based upon the review under subsection (a) of the service 
records of any Jewish American war veteran, that the award of the Medal 
of Honor to that veteran is warranted, the Secretary shall submit to 
the President a recommendation that the President award the Medal of 
Honor to that veteran.
    (e) Authority To Award Medal of Honor.--A Medal of Honor may be 
awarded to a Jewish American war veteran in accordance with a 
recommendation of the Secretary concerned under subsection (d).
    (f) Waiver of Time Limitations.--An award of the Medal of Honor may 
be made under subsection (e) without regard to--
            (1) section 3744, 6248, or 8744 of title 10, United States 
        Code, as applicable; and
            (2) any regulation or other administrative restriction on--
                    (A) the time for awarding the Medal of Honor; or
                    (B) the awarding of the Medal of Honor for service 
                for which a Distinguished Service Cross, Navy Cross, 
                Air Force Cross, or any other decoration has been 
                awarded.
    (g) Jewish American War Veteran Defined.--In this section, the term 
``Jewish American war veteran'' means any person who served in the 
Armed Forces during World War II or a later period of war and who 
identified himself or herself as Jewish on his or her military 
personnel records.

SEC. 553. ISSUANCE OF DUPLICATE AND REPLACEMENT MEDALS OF HONOR.

    (a) Army.--(1)(A) Chapter 357 of title 10, United States Code, is 
amended by inserting after section 3747 the following new section:
``Sec. 3747a. Medal of honor: issuance of duplicate
    ``(a) Issuance.--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 to the person one duplicate medal of honor, with 
ribbons and appurtenances. No charge may be imposed for the issuance of 
the duplicate medal.
    ``(b) Special Marking.--A duplicate medal of honor issued under 
this section shall be marked as a duplicate or for display purposes 
only. The Secretary shall prescribe the manner in which the duplicate 
medal is marked.
    ``(c) Issuance Not To Be Considered Additional Award.--The issuance 
of a duplicate medal of honor under of this section may not be 
considered an award of more than one medal of honor prohibited by 
section 3744(a) of this title.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3747 the 
following:

``3747a. Medal of honor: issuance of duplicate.''.
    (2) Section 3747 of title 10, United States Code, is amended by 
striking ``lost'' and inserting ``stolen, lost,''.
    (b) Navy and Marine Corps.--(1)(A) Chapter 567 of such title is 
amended by inserting after section 6253 the following new section:
``Sec. 6253a. Medal of honor: issuance of duplicate
    ``(a) Issuance.--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 to the person one duplicate medal of honor, with 
ribbons and appurtenances. No charge may be imposed for the issuance of 
the duplicate medal.
    ``(b) Special Marking.--A duplicate medal of honor issued under 
this section shall be marked as a duplicate or for display purposes 
only. The Secretary shall prescribe the manner in which the duplicate 
medal is marked.
    ``(c) Issuance Not To Be Considered Additional Award.--The issuance 
of a duplicate medal of honor under this section may not be considered 
an award of more than one medal of honor prohibited by section 6247 of 
this title.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 6253 the 
following:

``6253a. Medal of honor: issuance of duplicate.''.
    (2) Section 6253 of title 10, United States Code, is amended by 
striking ``lost'' and inserting ``stolen, lost,''.
    (c) Air Force.--(1)(A) Chapter 857 of such title is amended by 
inserting after section 8747 the following new section:
``Sec. 8747a. Medal of honor: issuance of duplicate
    ``(a) Issuance.--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 to the person one duplicate medal of honor, 
with ribbons and appurtenances. No charge may be imposed for the 
issuance of the duplicate medal.
    ``(b) Special Marking.--A duplicate medal of honor issued under 
this section shall be marked as a duplicate or for display purposes 
only. The Secretary shall prescribe the manner in which the duplicate 
medal is marked.
    ``(c) Issuance Not To Be Considered Additional Award.--The issuance 
of a duplicate medal of honor under this section may not be considered 
an award of more than one medal of honor prohibited by section 8744(a) 
of this title.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 8747 the 
following:

``8747a. Medal of honor: issuance of duplicate.''.
    (2) Section 8747 of title 10, United States Code, is amended by 
striking ``lost'' and inserting ``stolen, lost,''.

SEC. 554. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
              TO CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of 
decorations described in this section, the award of each such 
decoration having been determined by the Secretary concerned to be 
warranted in accordance with section 1130 of title 10, United States 
Code.
    (b) Silver Star.--Subsection (a) applies to the award of the Silver 
Star to Wayne T. Alderson, of Glassport, Pennsylvania, for gallantry in 
action from March 15 to March 18, 1945, while serving as a member of 
the Army.
    (c) Distinguished Flying Cross.--Subsection (a) applies to the 
award of the Distinguished Flying Cross for service during World War II 
(including multiple awards to the same individual) in the case of each 
individual concerning whom the Secretary of the Navy (or an officer of 
the Navy acting on behalf of the Secretary) submitted to the Committee 
on Armed Services of the House of Representatives and the Committee on 
Armed Services of the Senate, during the period beginning on October 
30, 2000, and ending on the day before the date of the enactment of 
this Act, a notice as provided in section 1130(b) of title 10, United 
States Code, that the award of the Distinguished Flying Cross to that 
individual is warranted and that a waiver of time restrictions 
prescribed by law for recommendation for such award is recommended.

SEC. 555. SENSE OF SENATE ON ISSUANCE OF KOREA DEFENSE SERVICE MEDAL.

    It is the sense of the Senate that the Secretary of Defense should 
consider authorizing the issuance of a campaign medal, to be known as 
the Korea Defense Service Medal, to each person who while a member of 
the Armed Forces served in the Republic of Korea, or the waters 
adjacent thereto, during the period beginning on July 28, 1954, and 
ending on such date after that date as the Secretary considers 
appropriate.

SEC. 556. RETROACTIVE MEDAL OF HONOR SPECIAL PENSION.

    (a) Entitlement.--Notwithstanding any other provision of law, 
Robert R. Ingram of Jacksonville, Florida, who was awarded the Medal of 
Honor pursuant to Public Law 105-103 (111 Stat. 2218), shall be 
entitled to the special pension provided for under section 1562 of 
title 38, United States Code (and antecedent provisions of law), for 
months that begin after March 1966.
    (b) Amount.--The amount of special pension payable under subsection 
(a) for a month beginning before the date of the enactment of this Act 
shall be the amount of special pension provided for by law for that 
month for persons entered and recorded in the Army, Navy, Air Force, 
and Coast Guard Medal of Honor Roll (or antecedent Medal of Honor Roll 
required by law).

                    Subtitle E--Funeral Honors Duty

SEC. 561. ACTIVE DUTY END STRENGTH EXCLUSION FOR RESERVES ON ACTIVE 
              DUTY OR FULL-TIME NATIONAL GUARD DUTY FOR FUNERAL HONORS 
              DUTY.

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

SEC. 562. PARTICIPATION OF RETIREES IN FUNERAL HONORS DETAILS.

    (a) Authority.--(1) Subsection (b)(2) of section 1491 of title 10, 
United States Code, is amended by inserting ``, members or former 
members of the armed forces in a retired status,'' in the second 
sentence after ``members of the armed forces''.
    (2) Subsection (h) of such section is amended to read as follows:
    ``(h) Definitions.--In this section:
            ``(1) The term `retired status', with respect to a member 
        or former member of the armed forces, means that the member or 
        former member--
                    ``(A) is on a retired list of an armed force;
                    ``(B) is entitled to receive retired or retainer 
                pay; or
                    ``(C) except for not having attained 60 years of 
                age, would be entitled to receive retired pay upon 
                application under chapter 1223 of this title.
            ``(2) The term `veteran' means a decedent who--
                    ``(A) served in the active military, naval, or air 
                service (as defined in section 101(24) of title 38) and 
                who was discharged or released therefrom under 
                conditions other than dishonorable; or
                    ``(B) was a member or former member of the Selected 
                Reserve described in section 2301(f) of title 38.''.
    (b) Funeral Honors Duty Allowance.--Section 435(a) of title 37, 
United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a) Allowance 
        Authorized.--''; and
            (2) by adding at the end the following new paragraph:
    ``(2)(A) The Secretary concerned may authorize payment of an 
allowance to a member or former member of the armed forces in a retired 
status (as defined in section 1491(h) of title 10) for participating as 
a member of a funeral honors detail under section 1491 of title 10 for 
a period of at least two hours, including time for preparation.
    ``(B) An allowance paid to a member or former member under 
subparagraph (A) shall be in addition to any retired or retainer pay or 
other compensation to which the member or former member is entitled 
under this title or title 10 or 38.''.

SEC. 563. BENEFITS AND PROTECTIONS FOR MEMBERS IN A FUNERAL HONORS DUTY 
              STATUS.

    (a) Funeral Honors Duty Defined.--Section 101(d) of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
            ``(8) The term `funeral honors duty' means duty under 
        section 12503 of this title or section 115 of title 32.''.
    (b) Applicability of Uniform Code of Military Justice.--Section 802 
of title 10, United States Code, is amended--
            (1) in subsection (a)(3), by inserting ``or engaged in 
        funeral honors duty'' after ``on inactive-duty training''; and
            (2) in subsection (d)(2)(B), by inserting ``or engaged in 
        funeral honors duty'' after ``on inactive-duty training''.
    (c) Commissary Stores Privileges for Dependents of a Deceased 
Reserve Component Member.--Section 1061(b) of such title is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or'' the first place it appears; 
                and
                    (B) by inserting ``, or funeral honors duty'' 
                before the semicolon; and
            (2) in paragraph (2)--
                    (A) by striking ``or'' the third place it appears; 
                and
                    (B) by inserting ``, or funeral honors duty'' 
                before the period.
    (d) Payment of a Death Gratuity.--(1) Section 1475(a) of such title 
is amended--
            (A) in paragraph (2), by inserting ``or while engaged in 
        funeral honors duty'' after ``Public Health Service)''; and
            (B) in paragraph (3)--
                    (i) by striking ``or inactive duty training'' the 
                first place it appears and inserting ``inactive-duty 
                training'';
                    (ii) by inserting ``or funeral honors duty,'' after 
                ``Public Health Service),''; and
                    (iii) by striking ``or inactive duty training'' the 
                second place it appears and inserting ``, inactive-duty 
                training, or funeral honors duty''.
    (2) Section 1476(a) of such title is amended--
            (A) in paragraph (1)--
                    (i) in subparagraph (A), by striking ``or'';
                    (ii) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                    (iii) by adding at the end the following new 
                subparagraph:
            ``(C) funeral honors duty.''; and
            (B) in paragraph (2)(A), by striking ``or inactive-duty 
        training'' and inserting ``, inactive-duty training, or funeral 
        honors duty''.
    (e) Military Authority for Members of the Coast Guard Reserve.--(1) 
Section 704 of title 14, United States Code, is amended by striking 
``or inactive-duty training'' in the second sentence and inserting ``, 
inactive-duty training, or funeral honors duty''.
    (2) Section 705(a) of such title is amended by inserting ``on 
funeral honors duty,'' after ``on inactive-duty training,''.
    (f) Veterans Benefits.--Section 101(24) of title 38, United States 
Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph 
        (C)(ii) and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph 
        (D):
            ``(D) any period of funeral honors duty (as defined in 
        section 101(d) of title 10) during which the individual 
        concerned was disabled or died from an injury incurred or 
        aggravated in line of duty.''.
    (g) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2001.

SEC. 564. MILITARY LEAVE FOR CIVILIAN EMPLOYEES SERVING AS MILITARY 
              MEMBERS OF FUNERAL HONORS DETAIL.

    Section 6323(a) of title 5, United States Code, is amended--
            (1) in the first sentence of paragraph (1), by striking 
        ``active duty, inactive duty training'' and all that follows 
        through ``National Guard'' and inserting ``military duty or 
        training described in paragraph (4)''; and
            (2) by adding at the end the following new paragraph:
    ``(4) The entitlement under paragraph (1) applies to the 
performance of duty or training as a Reserve of the armed forces or 
member of the National Guard, as follows:
            ``(A) Active duty.
            ``(B) Inactive duty training (as defined in section 101 of 
        title 37).
            ``(C) Field or coast defense training under sections 502 
        through 505 of title 32.
            ``(D) Funeral honors duty under section 12503 of title 10 
        or section 115 of title 32.''.

             Subtitle F--Uniformed Services Overseas Voting

SEC. 571. SENSE OF THE SENATE REGARDING THE IMPORTANCE OF VOTING BY 
              MEMBERS OF THE UNIFORMED SERVICES.

    (a) Sense of the Senate.--It is the sense of the Senate that each 
administrator of a Federal, State, or local election should--
            (1) be aware of the importance of the ability of each 
        uniformed services voter to exercise their right to vote; and
            (2) perform their duties with the intent to ensure that--
                    (A) each uniformed services voter receives the 
                utmost consideration and cooperation when voting;
                    (B) each valid ballot cast by such a voter is duly 
                counted; and
                    (C) all eligible American voters, regardless of 
                race, ethnicity, disability, the language they speak, 
                or the resources of the community in which they live 
                should have an equal opportunity to cast a vote and 
                have that vote counted.
    (b) Uniformed Services Voter Defined.--In this section, the term 
``uniformed services voter'' means--
            (1) a member of a uniformed service (as defined in section 
        101(a)(5) of title 10, United States Code) in active service;
            (2) a member of the merchant marine (as defined in section 
        107 of the Uniformed and Overseas Citizens Absentee Voting Act 
        (42 U.S.C. 1973ff-6)); and
            (3) a spouse or dependent of a member referred to in 
        subparagraph (A) or (B) who is qualified to vote.

SEC. 572. STANDARD FOR INVALIDATION OF BALLOTS CAST BY ABSENT UNIFORMED 
              SERVICES VOTERS IN FEDERAL ELECTIONS.

    (a) In General.--Section 102 of the Uniformed and Overseas Citizens 
Absentee Voting Act (42 U.S.C. 1973ff-1) is amended--
            (1) by striking ``Each State'' and inserting ``(a) In 
        General.--Each State''; and
            (2) by adding at the end the following:
    ``(c) Standards for Invalidation of Certain Ballots.--
            ``(1) In general.--A State may not refuse to count a ballot 
        submitted in an election for Federal office by an absent 
        uniformed services voter solely--
                    ``(A) on the grounds that the ballot lacked a 
                notarized witness signature, an address, other than on 
                a Federal write-in absentee ballot (SF186) or a 
                postmark: Provided, That there are other indicia that 
                the vote was cast in a timely manner; or
                    ``(B) on the basis of a comparison of signatures on 
                ballots, envelopes, or registration forms unless there 
                is a lack of reasonable similarity between the 
                signatures.
            ``(2) No effect on filing deadlines under state law.--
        Nothing in this subsection may be construed to affect the 
        application to ballots submitted by absent uniformed services 
        voters of any ballot submission deadline applicable under State 
        law.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to ballots described in section 102(c) of the 
Uniformed and Overseas Citizens Absentee Voting Act (as added by such 
subsection) that are submitted with respect to elections that occur 
after the date of enactment of this Act.

SEC. 573. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

    Article VII of the Soldiers' and Sailors' Civil Relief Act of 1940 
(50 U.S.C. App. 590 et seq.) is amended by adding at the end the 
following:
    ``Sec. 704. (a) For purposes of voting for any Federal office (as 
defined in section 301 of the Federal Election Campaign Act of 1971 (2 
U.S.C. 431)) or a State or local office, a person who is absent from a 
State in compliance with military or naval orders shall not, solely by 
reason of that absence--
            ``(1) be deemed to have lost a residence or domicile in 
        that State, without regard to whether or not the person intends 
        to return to that State;
            ``(2) be deemed to have acquired a residence or domicile in 
        any other State; or
            ``(3) be deemed to have become a resident in or a resident 
        of any other State.
    ``(b) In this section, the term `State' includes a territory or 
possession of the United States, a political subdivision of a State, 
territory, or possession, and the District of Columbia.''.

SEC. 574. EXTENSION OF REGISTRATION AND BALLOTING RIGHTS FOR ABSENT 
              UNIFORMED SERVICES VOTERS TO STATE AND LOCAL ELECTIONS.

    (a) In General.--Section 102 of the Uniformed and Overseas Citizens 
Absentee Voting Act (42 U.S.C. 1973ff-1), as amended by section 
572(a)(1), is further amended by inserting after subsection (a) the 
following new subsection:
    ``(b) Elections for State and Local Offices.--Each State shall--
            ``(1) permit absent uniformed services voters to use 
        absentee registration procedures and vote by absentee ballot in 
        general, special, primary, and runoff elections for State and 
        local offices; and
            ``(2) accept and process, with respect to any election 
        described in paragraph (1), any otherwise valid voter 
        registration application from an absent uniformed services 
        voter if the application is received by the appropriate State 
        election official not less than 30 days before the date of the 
        election.''.
    (b) Conforming Amendment.--The heading for title I of such Act is 
amended by striking ``FOR FEDERAL OFFICE''.

SEC. 575. USE OF SINGLE APPLICATION AS A SIMULTANEOUS ABSENTEE VOTER 
              REGISTRATION APPLICATION AND ABSENTEE BALLOT APPLICATION.

    Subsection (a) of section 102 of the Uniformed and Overseas 
Citizens Absentee Voting Act (42 U.S.C. 1973ff-1), as redesignated by 
section 572(a)(1), is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting a semicolon; and
            (3) by inserting after paragraph (3) the following new 
        paragraph (4):
            ``(4) accept and process the official post card form 
        (prescribed under section 101) as a simultaneous absentee voter 
        registration application and absentee ballot application; 
        and''.

SEC. 576. USE OF SINGLE APPLICATION FOR ABSENTEE BALLOTS FOR ALL 
              FEDERAL ELECTIONS.

    Subsection (a) of section 102 of the Uniformed and Overseas 
Citizens Absentee Voting Act (42 U.S.C. 1973ff-1), as amended by 
section 575, is further amended by inserting after paragraph (4) the 
following new paragraph (5):
            ``(5) accept and process, with respect to all general, 
        special, primary, and runoff elections for Federal office 
        occurring during a year, any otherwise valid absentee ballot 
        application from an absent uniformed services voter or overseas 
        voter if a single application for any such election is received 
        by the appropriate State election official not less than 30 
        days before the first election for Federal office occurring 
        during the year.''.

SEC. 577. ELECTRONIC VOTING DEMONSTRATION PROJECT.

    (a) Establishment of demonstration project.--
            (1) In general.--Subject to paragraph (2), the Secretary of 
        Defense shall carry out a demonstration project under which 
        absent uniformed services voters (as defined in section 107(1) 
        of the Uniformed and Overseas Citizens Absentee Voting Act (42 
        U.S.C. 1973ff-6(1))) are permitted to cast ballots in the 
        regularly scheduled general election for Federal office for 
        November 2002, through an electronic voting system.
            (2) Authority to delay implementation.--If the Secretary of 
        Defense determines that the implementation of the demonstration 
        project under paragraph (1) with respect to the regularly 
        scheduled general election for Federal office for November 2002 
        may adversely affect the national security of the United 
        States, the Secretary may delay the implementation of such 
        demonstration project until the regularly scheduled general 
        election for Federal office for November 2004. The Secretary 
        shall notify the Armed Services Committees of the Senate and 
        the House of Representatives of any decision to delay 
        implementation of the demonstration project.
    (b) Coordination With State Election Officials.--To the greatest 
extent practicable, the Secretary of Defense shall carry out the 
demonstration project under this section through cooperative agreements 
with State election officials.
    (c) Report to Congress.--Not later than June 1, 2003, the Secretary 
of Defense shall submit a report to Congress analyzing the 
demonstration project conducted under this section, and shall include 
in the report any recommendations the Secretary of Defense considers 
appropriate for continuing the project on an expanded basis for absent 
uniformed services voters during the next regularly scheduled general 
election for Federal office.

SEC. 578. FEDERAL VOTING ASSISTANCE PROGRAM.

    (a) In General.--The Secretary of Defense shall promulgate 
regulations to require each of the Armed Forces to ensure their 
compliance with any directives issued by the Secretary of Defense in 
implementing the Federal Voting Assistance Program (referred to in this 
section as the ``Program'') or any similar program.
    (b) Review and Report.--(1) The Inspector General of each of the 
Armed Forces shall--
            (A) conduct an annual review of the effectiveness of the 
        Program or any similar program;
            (B) conduct an annual review of the compliance with the 
        Program or any similar program of the branch; and
            (C) submit an annual report to the Inspector General of the 
        Department of Defense on the results of the reviews under 
        subparagraphs (A) and (B).
    (2) Not later than March 31, 2003, and annually thereafter, the 
Inspector General of the Department of Defense shall submit a report to 
Congress on--
            (A) the effectiveness of the Program or any similar 
        program; and
            (B) the level of compliance with the Program or any similar 
        program of the branches of the Armed Forces.

SEC. 579. MAXIMIZATION OF ACCESS OF RECENTLY SEPARATED UNIFORMED 
              SERVICES VOTERS TO THE POLLS.

    (a) Absentee Registration.--For purposes of voting in any primary, 
special, general, or runoff election for Federal office (as defined in 
section 301 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
431)), each State shall, with respect to any uniformed services voter 
(as defined in section 571(b)) requesting to vote in the State accept 
and process, with respect to any primary, special, general, or runoff 
election, any otherwise valid voter registration application submitted 
by such voter.
    (b) Voting by Recently Separated Uniformed Services Voters.--Each 
State shall permit each recently separated uniformed services voter to 
vote in any election for which a voter registration application has 
been accepted and processed under subsection (a) if that voter--
            (1) has registered to vote under such subsection; and
            (2) is eligible to vote in that election under State law.
    (c) Definitions.--In this section:
            (1) The term ``State'' means a State of the United States, 
        the District of Columbia, the Commonwealth of Puerto Rico, or a 
        territory or possession of the United States.
            (2) The term ``recently separated uniformed services 
        voter'' means any individual who was a uniformed services voter 
        (as defined in section 571(b)) on the date that is 60 days 
        before the date on which the individual seeks to vote and who--
                    (A) presents to the election official Department of 
                Defense form 214 evidencing their former status as such 
                a voter, or any other official proof of such status; 
                and
                    (B) is no longer such a voter; and
                    (C) is otherwise qualified to vote.

SEC. 580. GOVERNORS' REPORTS ON IMPLEMENTATION OF FEDERAL VOTING 
              ASSISTANCE PROGRAM RECOMMENDATIONS.

    (a) Reports.--Not later than 90 days after the date on which a 
State receives a legislative recommendation, the State shall submit a 
report on the status of the implementation of that recommendation to 
the Presidential designee and to each Member of Congress that 
represents that State.
    (b) Period of Applicability.--This section applies with respect to 
legislative recommendations received by States during the period 
beginning on the date of enactment of this Act and ending three years 
after such date.
    (c) Definitions.--In this section:
            (1) The term ``legislative recommendation'' means a 
        recommendation of the Presidential designee suggesting a 
        modification in the laws of a State for the purpose of 
        maximizing the access to the polls of absent uniformed services 
        voters and overseas voters, including each recommendation made 
        under section 104 of the Uniformed and Overseas Citizens 
        Absentee Voting Act (42 U.S.C. 1973ff-3).
            (2) The term ``Presidential designee'' means the head of 
        the executive department designated under section 101 of the 
        Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C. 
        1973ff).

                       Subtitle G--Other Matters

SEC. 581. PERSONS AUTHORIZED TO BE INCLUDED IN SURVEYS OF MILITARY 
              FAMILIES REGARDING FEDERAL PROGRAMS.

    (a) Addition of Certain Family Members and Survivors.--Subsection 
(a) of section 1782 of title 10, United States Code, is amended to read 
as follows:
    ``(a) Authority.--The Secretary of Defense may conduct surveys of 
persons to determine the effectiveness of Federal programs relating to 
military families and the need for new programs, as follows:
            ``(1) Members of the armed forces on active duty or in an 
        active status.
            ``(2) Retired members of the armed forces.
            ``(3) Members of the families of such members and retired 
        members of the armed forces (including surviving members of the 
        families of deceased members and deceased retired members).''.
    (b) Federal Recordkeeping Requirements.--Subsection (c) of such 
section is amended to read as follows:
    ``(c) Federal Recordkeeping Requirements.--With respect to a survey 
authorized under subsection (a) that includes a person referred to in 
that subsection who is not an employee of the United States or is not 
considered an employee of the United States for the purposes of section 
3502(3)(A)(i) of title 44, the person shall be considered as being an 
employee of the United States for the purposes of that section.''.

SEC. 582. CORRECTION AND EXTENSION OF CERTAIN ARMY RECRUITING PILOT 
              PROGRAM AUTHORITIES.

    (a) Contract Recruiting Initiatives.--Subsection (d)(2) of section 
561 of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 
1654A-130) is amended--
            (1) in subparagraphs (A) and (D), by inserting ``and Army 
        Reserve'' after ``Regular Army''; and
            (2) in subparagraph (B), by striking ``and chain of 
        command''.
    (b) Extension of Authority.--Subsection (e) of such section is 
amended by striking ``December 31, 2005'' and inserting ``September 30, 
2007''.
    (c) Extension of Time for Reports.--Subsection (g) of such section 
is amended by striking ``February 1, 2006'' and inserting ``February 1, 
2008''.

SEC. 583. OFFENSE OF DRUNKEN OPERATION OF A VEHICLE, AIRCRAFT, OR 
              VESSEL UNDER THE UNIFORM CODE OF MILITARY JUSTICE.

    (a) Lower Standard of Alcohol Concentration.--Section 911 of title 
10, United States Code (article 111 of the Uniform Code of Military 
Justice), is amended by striking ``0.10 grams'' both places it appears 
in paragraph (2) and inserting ``0.08 grams''.
    (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 
acts described in paragraph (2) of section 911 of title 10, United 
States Code, that are committed on or after that date.

SEC. 584. AUTHORITY OF CIVILIAN EMPLOYEES TO ACT AS NOTARIES.

    (a) Clarification of Status of Civilian Attorneys Eligible To Act 
as Notaries.--Subsection (b) of section 1044a of title 10, United 
States Code, is amended by striking ``legal assistance officers'' in 
paragraph (2) and inserting ``legal assistance attorneys''.
    (b) Other Civilian Employees Designated To Act as Notaries 
Abroad.--Such subsection is further amended by adding at the end the 
following new paragraph:
            ``(5) For the performance of notarial acts at locations 
        outside the United States, all employees of a military 
        department or the Coast Guard who are designated by regulations 
        of the Secretary concerned or by statute to have those powers 
        for exercise outside the United States.''.

SEC. 585. REVIEW OF ACTIONS OF SELECTION BOARDS.

    (a) In General.--(1) Chapter 79 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 1558. Exclusive remedies in cases involving selection boards
    ``(a) Correction of Military Records.--The Secretary concerned may 
correct a person's military records in accordance with a recommendation 
made by a special board. Any such correction shall be effective, 
retroactively, as of the effective date of the action taken on a report 
of a previous selection board that resulted in the action corrected in 
the person's military records.
    ``(b) Relief Associated With Corrections of Certain Actions.--(1) 
The Secretary concerned shall ensure that a person receives relief 
under paragraph (2) or (3), as the person may elect, if the person--
            ``(A) was separated or retired from an armed force, or 
        transferred to the retired reserve or to inactive status in a 
        reserve component, as a result of a recommendation of a 
        selection board; and
            ``(B) becomes entitled to retention on or restoration to 
        active duty or active status in a reserve component as a result 
        of a correction of the person's military records under 
        subsection (a).
    ``(2)(A) With the consent of a person referred to in paragraph (1), 
the person shall be retroactively and prospectively restored to the 
same status, rights, and entitlements (less appropriate offsets against 
back pay and allowances) in the person's armed force as the person 
would have had if the person had not been selected to be separated, 
retired, or transferred to the retired reserve or to inactive status in 
a reserve component, as the case may be, as a result of an action 
corrected under subsection (a). An action under this subparagraph is 
subject to subparagraph (B).
    ``(B) Nothing in subparagraph (A) shall be construed to permit a 
person to be on active duty or in an active status in a reserve 
component after the date on which the person would have been separated, 
retired, or transferred to the retired reserve or to inactive status in 
a reserve component if the person had not been selected to be 
separated, retired, or transferred to the retired reserve or to 
inactive status in a reserve component, as the case may be, in an 
action of a selection board that is corrected under subsection (a).
    ``(3) If the person does not consent to a restoration of status, 
rights, and entitlements under paragraph (2), the person shall receive 
back pay and allowances (less appropriate offsets) and service credit 
for the period beginning on the date of the person's separation, 
retirement, or transfer to the retired reserve or to inactive status in 
a reserve component, as the case may be, and ending on the earlier of--
            ``(A) the date on which the person would have been so 
        restored under paragraph (2), as determined by the Secretary 
        concerned; or
            ``(B) the date on which the person would otherwise have 
        been separated, retired, or transferred to the retired reserve 
        or to inactive status in a reserve component, as the case may 
        be.
    ``(c) Finality of Unfavorable Action.--If a special board makes a 
recommendation not to correct the military records of a person 
regarding action taken in the case of that person on the basis of a 
previous report of a selection board, the action previously taken on 
that report shall be considered as final as of the date of the action 
taken on that report.
    ``(d) Regulations.--(1) The Secretary concerned may prescribe 
regulations to carry out this section (other than subsection (e)) with 
respect to the armed force or armed forces under the jurisdiction of 
the Secretary.
    ``(2) The Secretary may prescribe in the regulations the 
circumstances under which consideration by a special board may be 
provided for under this section, including the following:
            ``(A) The circumstances under which consideration of a 
        person's case by a special board is contingent upon application 
        by or for that person.
            ``(B) Any time limits applicable to the filing of an 
        application for consideration.
    ``(3) Regulations prescribed by the Secretary of a military 
department under this subsection shall be subject to the approval of 
the Secretary of Defense.
    ``(e) Judicial Review.--(1) A person challenging for any reason the 
action or recommendation of a selection board, or the action taken by 
the Secretary concerned on the report of a selection board, is not 
entitled to relief in any judicial proceeding unless the person has 
first been considered by a special board under this section or the 
Secretary concerned has denied such consideration.
    ``(2) A court of the United States may review a determination by 
the Secretary concerned not to convene a special board in the case of 
any person. In any such case, a court may set aside the Secretary's 
determination only if the court finds the determination to be arbitrary 
or capricious, not based on substantial evidence, or otherwise contrary 
to law. If a court sets aside a determination not to convene a special 
board, it shall remand the case to the Secretary concerned, who shall 
provide for consideration of the person by a special board.
    ``(3) A court of the United States may review a recommendation of a 
special board or an action of the Secretary concerned on the report of 
a special board convened for consideration of a person. In any such 
case, a court may set aside the recommendation or action, as the case 
may be, only if the court finds that the recommendation or action was 
contrary to law or involved a material error of fact or a material 
administrative error. If a court sets aside the recommendation of a 
special board, it shall remand the case to the Secretary concerned, who 
shall provide for reconsideration of the person by another special 
board. If a court sets aside the action of the Secretary concerned on 
the report of a special board, it shall remand the case to the 
Secretary concerned for a new action on the report of the special 
board.
    ``(4)(A) If, not later than six months after receiving a complete 
application for consideration by a special board in any case, the 
Secretary concerned has not convened a special board and has not denied 
consideration by a special board in that case, the Secretary shall be 
deemed to have denied the consideration of the case for the purposes of 
this subsection.
    ``(B) If, not later than one year after the convening of a special 
board in any case, the Secretary concerned has not taken final action 
on the report of the special board, the Secretary shall be deemed to 
have denied relief in such case for the purposes of this subsection.
    ``(C) Under regulations prescribed under subsection (d), the 
Secretary concerned may waive the applicability of subparagraph (A) or 
(B) in a case if the Secretary determines that a longer period for 
consideration of the case is warranted. The Secretary of a military 
department may not delegate authority to make a determination under 
this subparagraph.
    ``(f) Exclusivity of Remedies.--Notwithstanding any other provision 
of law, but subject to subsection (g), the remedies provided under this 
section are the only remedies available to a person for correcting an 
action or recommendation of a selection board regarding that person or 
an action taken on the report of a selection board regarding that 
person.
    ``(g) Existing Jurisdiction.--(1) Nothing in this section limits 
the jurisdiction of any court of the United States under any provision 
of law to determine the validity of any statute, regulation, or policy 
relating to selection boards, except that, in the event that any such 
statute, regulation, or policy is held invalid, the remedies prescribed 
in this section shall be the sole and exclusive remedies available to 
any person challenging the recommendation of a special board on the 
basis of the invalidity.
    ``(2) Nothing in this section limits authority to correct a 
military record under section 1552 of this title.
    ``(h) Inapplicability to Coast Guard.--This section does not apply 
to the Coast Guard when it is not operating as a service in the Navy.
    ``(i) Definitions.--In this section:
            ``(1) The term `special board'--
                    ``(A) means a board that the Secretary concerned 
                convenes under any authority to consider whether to 
                recommend a person for appointment, enlistment, 
                reenlistment, assignment, promotion, retention, 
                separation, retirement, or transfer to inactive status 
                in a reserve component instead of referring the records 
                of that person for consideration by a previously 
                convened selection board which considered or should 
                have considered that person;
                    ``(B) includes a board for the correction of 
                military or naval records convened under section 1552 
                of this title, if designated as a special board by the 
                Secretary concerned; and
                    ``(C) does not include a promotion special 
                selection board convened under section 628 or 14502 of 
                this title.
            ``(2) The term `selection board'--
                    ``(A) means a selection board convened under 
                section 573(c), 580, 580a, 581, 611(b), 637, 638, 638a, 
                14101(b), 14701, 14704, or 14705 of this title, and any 
                other board convened by the Secretary concerned under 
                any authority to recommend persons for appointment, 
                enlistment, reenlistment, assignment, promotion, or 
                retention in the armed forces or for separation, 
                retirement, or transfer to inactive status in a reserve 
                component for the purpose of reducing the number of 
                persons serving in the armed forces; and
                    ``(B) does not include--
                            ``(i) a promotion board convened under 
                        section 573(a), 611(a), or 14101(a) of this 
                        title;
                            ``(ii) a special board;
                            ``(iii) a special selection board convened 
                        under section 628 of this title; or
                            ``(iv) a board for the correction of 
                        military records convened under section 1552 of 
                        this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``1558. Exclusive remedies in cases involving selection boards .''.
    (b) Special Selection Boards.--Section 628 of such title is 
amended--
            (1) by redesignating subsection (g) as subsection (j); and
            (2) by inserting after subsection (f) the following:
    ``(g) Judicial Review.--(1) A court of the United States may review 
a determination by the Secretary concerned under subsection (a)(1) or 
(b)(1) not to convene a special selection board in the case of an 
officer or former officer of the armed forces. If the court finds the 
determination to be arbitrary or capricious, not based on substantial 
evidence, or otherwise contrary to law, it shall remand the case to the 
Secretary concerned, who shall provide for consideration of the officer 
or former officer by a special selection board under this section.
    ``(2) A court of the United States may review the action of a 
special selection board convened under this section upon the request of 
an officer or former officer of the armed forces and any action taken 
by the President on the report of the board. If the court finds that 
the action was contrary to law or involved a material error of fact or 
a material administrative error, it shall remand the case to the 
Secretary concerned, who shall provide for reconsideration of the 
officer or former officer by another special selection board.
    ``(3)(A) For the purposes of this subsection, the Secretary 
concerned shall be deemed to have determined not to convene a special 
selection board under subsection (a)(1) or (b)(1) in the case of an 
officer or former officer of the armed forces upon a failure of the 
Secretary to make a determination on the convening of a special 
selection board in that case within six months after receiving a 
properly completed request to convene a special selection board under 
that authority in that case.
    ``(B) Under regulations prescribed by the Secretary concerned, the 
Secretary may waive the applicability of subparagraph (A) in the case 
of a request for the convening of a special selection board if the 
Secretary determines that a longer period for consideration of the 
request is warranted. The Secretary concerned may not delegate 
authority to make a determination under this subparagraph.
    ``(h) Limitations of Other Jurisdiction.--(1) No official or court 
of the United States may, with respect to a claim based to any extent 
on the failure of an officer or former officer of the armed forces to 
be selected for promotion by a promotion board--
            ``(A) consider the claim unless the officer or former 
        officer has first been referred by the Secretary concerned to a 
        special selection board convened under this section and acted 
        upon by that board and the report of the board has been 
        approved by the President; or
            ``(B) except as provided in subsection (g), grant any 
        relief on the claim unless the officer or former officer has 
        been selected for promotion by a special selection board 
        convened under this section to consider the officer for 
        recommendation for promotion and the report of the board has 
        been approved by the President.
    ``(i) Existing Jurisdiction.--(1) Nothing in this section limits 
the jurisdiction of any court of the United States under any provision 
of law to determine the validity of any statute, regulation, or policy 
relating to selection boards, except that, in the event that any such 
statute, regulation, or policy is held invalid, the remedies prescribed 
in this section shall be the sole and exclusive remedies available to 
any person challenging the recommendation of a selection board on the 
basis of the invalidity.
    ``(2) Nothing in this section limits authority to correct a 
military record under section 1552 of this title.''.
    (c) Effective Date and Applicability.--(1) The amendments made by 
this section shall take effect on the date of the enactment of this Act 
and, except as provided in paragraph (2), shall apply with respect to 
any proceeding pending on or after that date without regard to whether 
a challenge to an action of a selection board of any of the Armed 
Forces being considered in such proceeding was initiated before, on, or 
after that date.
    (2) The amendments made by this section shall not apply with 
respect to any action commenced in a court of the United States before 
the date of the enactment of this Act.

SEC. 586. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE FOR THE CIVIL 
              AFFAIRS OF MEMBERS AND FORMER MEMBERS OF THE UNIFORMED 
              SERVICES AND THEIR DEPENDENTS.

    (a) Authority.--Subsection (a) of section 1588 of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(5) Legal services voluntarily provided as legal 
        assistance under section 1044 of this title.''.
    (b) Defense of Legal Malpractice.--Subsection (d)(1) of that 
section is amended by adding at the end the following new subparagraph:
            ``(E) Section 1054 of this title (relating to legal 
        malpractice), for a person voluntarily providing legal services 
        accepted under subsection (a)(5), as if the person were 
        providing the services as an attorney of a legal staff within 
        the Department of Defense.''.

SEC. 587. EXTENSION OF DEFENSE TASK FORCE ON DOMESTIC VIOLENCE.

    Section 591(j) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 641, 10 U.S.C. 1562 note) is 
amended by striking ``three years after the date of the enactment of 
this Act'' and inserting ``April 24, 2003''.

SEC. 588. TRANSPORTATION TO ANNUAL MEETING OF NEXT-OF-KIN OF PERSONS 
              UNACCOUNTED FOR FROM CONFLICTS AFTER WORLD WAR II.

    (a) In General.--(1) Chapter 157 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 2647. Transportation to annual meeting of next-of-kin of persons 
              unaccounted for from conflicts after World War II
    ``The Secretary of Defense may provide transportation for the next-
of-kin of persons who are unaccounted for from the Korean conflict, the 
Cold War, Vietnam War era, or the Persian Gulf War to and from those 
annual meetings sanctioned by the Department of Defense in the United 
States. Such transportation shall be provided under such regulations as 
the Secretary of Defense may prescribe.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2647. Transportation to annual meeting of next-of-kin of persons 
                            unaccounted for from conflicts after World 
                            War II.''.
    (b) Effective Date.--Section 2647 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 2001, or 
the date of the enactment of this Act, whichever is later.

SEC. 589. REPORT ON HEALTH AND DISABILITY BENEFITS FOR PRE-ACCESSION 
              TRAINING AND EDUCATION PROGRAMS.

    (a) Study.--The Secretary of Defense shall conduct a review of the 
health and disability benefit programs available to recruits and 
officer candidates engaged in training, education, or other types of 
programs while not yet on active duty and to cadets and midshipmen 
attending the service academies. The review shall be conducted with the 
participation of the Secretaries of the military departments.
    (b) Report.--Not later than March 1, 2002, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
the findings of the review. The report shall include the following with 
respect to persons described in subsection (a):
            (1) A statement of the process and detailed procedures 
        followed by each of the Armed Forces under the jurisdiction of 
        the Secretary of a military department to provide health care 
        and disability benefits to all such persons injured in 
        training, education, or other types of programs conducted by 
        the Secretary of a military department.
            (2) Information on the total number of cases of such 
        persons requiring health care and disability benefits and the 
        total number of cases and average value of health care and 
        disability benefits provided under the authority for each 
        source of benefits available to those persons.
            (3) A discussion of the issues regarding health and 
        disability benefits for such persons that are encountered by 
        the Secretary during the review, to include discussions with 
        individuals who have received those benefits.
            (4) A statement of the processes and detailed procedures 
        followed by each of the Armed Forces under the jurisdiction of 
        the Secretary of a military department to provide recruits and 
        officer candidates with succinct information on the eligibility 
        requirements (including information on when they become 
        eligible) for health care benefits under the Defense health 
        care program, and the nature and availability of the benefits 
        under the program.
            (5) A discussion of the necessity for legislative changes 
        and specific legislative proposals needed to improve the 
        benefits provided those persons.

          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 within each 
pay grade are as follows:
      

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,180.20   7,415.40   7,571.10   7,614.90    7,809.30
O-7.............   5,966.40   6,371.70   6,371.70   6,418.20    6,657.90
O-6.............   4,422.00   4,857.90   5,176.80   5,176.80    5,196.60
O-5.............   3,537.00   4,152.60   4,440.30   4,494.30    4,673.10
O-4.............   3,023.70   3,681.90   3,927.60   3,982.50    4,210.50
O-3\3\..........   2,796.60   3,170.40   3,421.80   3,698.70    3,875.70
O-2\3\..........   2,416.20   2,751.90   3,169.50   3,276.30    3,344.10
O-1\3\..........   2,097.60   2,183.10   2,638.50   2,638.50    2,638.50
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,135.10   8,210.70   8,519.70   8,608.50    8,874.30
O-7.............   6,840.30   7,051.20   7,261.80   7,472.70    8,135.10
O-6.............   5,418.90   5,448.60   5,448.60   5,628.60    6,305.70
O-5.............   4,673.10   4,813.50   5,073.30   5,413.50    5,755.80
O-4.............   4,395.90   4,696.20   4,930.20   5,092.50    5,255.70
O-3\3\..........   4,070.10   4,232.40   4,441.20   4,549.50    4,549.50
O-2\3\..........   3,344.10   3,344.10   3,344.10   3,344.10    3,344.10
O-1\3\..........   2,638.50   2,638.50   2,638.50   2,638.50    2,638.50
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  11,601.90  11,659.20  11,901.30   12,324.00
O-9.............       0.00  10,147.50  10,293.60  10,504.80   10,873.80
O-8.............   9,259.50   9,614.70   9,852.00   9,852.00    9,852.00
O-7.............   8,694.90   8,694.90   8,694.90   8,694.90    8,738.70
O-6.............   6,627.00   6,948.30   7,131.00   7,316.10    7,675.20
O-5.............   5,919.00   6,079.80   6,262.80   6,262.80    6,262.80
O-4.............   5,310.60   5,310.60   5,310.60   5,310.60    5,310.60
O-3\3\..........   4,549.50   4,549.50   4,549.50   4,549.50    4,549.50
O-2\3\..........   3,344.10   3,344.10   3,344.10   3,344.10    3,344.10
O-1\3\..........   2,638.50   2,638.50   2,638.50   2,638.50    2,638.50
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades 0-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\Subject to the preceding footnote, while serving as Chairman or Vice
  Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
  Chief of Naval Operations, Chief of Staff of the Air Force, Commandant
  of the Marine Corps, or Commandant of the Coast Guard, the rate of
  basic pay for this grade is $13,598.10, regardless of cumulative years
  of service computed under section 205 of title 37, United States Code.
\3\This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00   3,698.70    3,875.70
O-2E............       0.00       0.00       0.00   3,276.30    3,344.10
O-1E............       0.00       0.00       0.00   2,638.50    2,818.20
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............   4,070.10   4,232.40   4,441.20   4,617.00    4,717.50
O-2E............   3,450.30   3,630.00   3,768.90   3,872.40    3,872.40
O-1E............   2,922.30   3,028.50   3,133.20   3,276.30    3,276.30
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............   4,855.20   4,855.20   4,855.20   4,855.20    4,855.20
O-2E............   3,872.40   3,872.40   3,872.40   3,872.40    3,872.40
O-1E............   3,276.30   3,276.30   3,276.30   3,276.30    3,276.30
------------------------------------------------------------------------


                           WARRANT OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   2,889.60   3,108.60   3,198.00   3,285.90   3,437.10
W-3..............   2,638.80   2,862.00   2,862.00   2,898.90   3,017.40
W-2..............   2,321.40   2,454.00   2,569.80   2,654.10   2,726.40
W-1..............   2,049.90   2,217.60   2,330.10   2,402.70   2,511.90
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,586.50   3,737.70   3,885.30   4,038.00   4,184.40
W-3..............   3,152.40   3,330.90   3,439.50   3,558.30   3,693.90
W-2..............   2,875.20   2,984.40   3,093.90   3,200.40   3,318.00
W-1..............   2,624.70   2,737.80   2,850.00   2,963.70   3,077.10
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00   4,965.60   5,136.00   5,307.00   5,478.60
W-4..............   4,334.40   4,480.80   4,632.60   4,782.00   4,935.30
W-3..............   3,828.60   3,963.60   4,098.30   4,233.30   4,368.90
W-2..............   3,438.90   3,559.80   3,680.10   3,801.30   3,801.30
W-1..............   3,189.90   3,275.10   3,275.10   3,275.10   3,275.10
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


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

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

    (a) Service Credit.--Section 203(d) of title 37, United States 
Code, is amended--
            (1) by inserting ``(1)'' after ``(d)'';
            (2) by striking ``active service as a warrant officer or as 
        a warrant officer and an enlisted member'' and inserting 
        ``service described in paragraph (2)''; and
            (3) by adding at the end the following new paragraph:
    ``(2) Service to be taken into account for purposes of computing 
basic pay under paragraph (1) is as follows:
            ``(A) Active service as a warrant officer or as a warrant 
        officer and an enlisted member, in the case of--
                    ``(i) a commissioned officer on active duty who is 
                paid from funds appropriated for active-duty personnel; 
                or
                    ``(ii) a commissioned officer on active Guard and 
                Reserve duty.
            ``(B) In the case of a commissioned officer (not referred 
        to in subparagraph (A)(ii)) who is paid from funds appropriated 
        for reserve personnel, service as a warrant officer, or as a 
        warrant officer and enlisted member, for which at least 1,460 
        points have been credited to the officer for the purposes of 
        section 12732(a)(2) of title 10.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2001, and shall apply with respect to months 
beginning on or after that date.

SEC. 603. RESERVE COMPONENT COMPENSATION FOR DISTRIBUTED LEARNING 
              ACTIVITIES PERFORMED AS INACTIVE-DUTY TRAINING.

    (a) Compensation Authorized.--Section 206(d) of title 37, United 
States Code, is amended to read as follows:
    ``(d)(1) Compensation is payable under this section to a member in 
a grade below E-7 for a period of instruction or duty in pursuit of the 
satisfaction of educational requirements imposed on members of the 
uniformed services by law or regulations if--
            ``(A) the particular activity in pursuit of the 
        satisfaction of such requirements is an activity approved for 
        that period of instruction or duty by the commander who 
        prescribes the instruction or duty for the member for that 
        period; and
            ``(B) the member attains the learning objectives required 
        for the period of instruction or duty, as determined under 
        regulations prescribed by the Secretary concerned.
    ``(2) Acceptable means of pursuit of the satisfaction of 
educational requirements for the purposes of compensation under this 
section include any means (which may include electronic, documentary, 
or distributed learning) that is authorized for the attainment of 
educational credit toward the satisfaction of those requirements in 
regulations prescribed by the Secretary concerned.''.
    (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. 604. CLARIFICATIONS FOR TRANSITION TO REFORMED BASIC ALLOWANCE FOR 
              SUBSISTENCE.

    (a) Baseline Amount for Calculating Allowance for Enlisted 
Members.--For the purposes of section 402(b)(2) of title 37, United 
States Code, the monthly rate of basic allowance for subsistence that 
is in effect for an enlisted member for the year ending December 31, 
2001, is $233.
    (b) Rate for Enlisted Members When Messing Facilities Not 
Available.--(1) Notwithstanding section 402 of title 37, United States 
Code, the Secretary of Defense, or the Secretary of Transportation with 
respect to the Coast Guard when it is not operating as a service in the 
Navy, may prescribe a rate of basic allowance for subsistence to apply 
to enlisted members of the uniformed services when messing facilities 
of the United States are not available. The rate may be higher than the 
rate of basic allowance for subsistence that would otherwise be 
applicable to the members under that section, but may not be higher 
than the highest rate that was in effect for enlisted members of the 
uniformed services under those circumstances before the date of the 
enactment of this Act.
    (2) Paragraph (1) shall cease to be effective on the first day of 
the first month for which the basic allowance for subsistence 
calculated for enlisted members of the uniformed services under section 
402 of title 37, United States Code, exceeds the rate of the basic 
allowance for subsistence prescribed under that paragraph.
    (c) Date for Early Termination of BAS Transitional Authority.--
Section 603(c) of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
114 Stat. 1654A-145) is amended by striking ``October 1, 2001,'' and 
inserting ``January 1, 2002,''.

SEC. 605. INCREASE IN BASIC ALLOWANCE FOR HOUSING IN THE UNITED STATES.

    (a) Acceleration of Increase.--Subsection 403(b)(1) of title 37, 
United States Code, is amended by adding at the end the following: 
``After September 30, 2002, the rate prescribed for a grade and 
dependency status for a military housing area in the United States may 
not be less than the median cost of adequate housing for members in 
that grade and dependency status in that area, as determined on the 
basis of the costs of adequate housing determined for the area under 
paragraph (2).''.
    (b) Fiscal Year 2002 Rates.--(1) Subject to subsection (b)(3) of 
section 403 of title 37, United States Code, in the administration of 
such section 403 for fiscal year 2002, the monthly amount of a basic 
allowance for housing for an area of the United States for a member of 
a uniformed service shall be equal to 92.5 percent of the monthly cost 
of adequate housing in that area, as determined by the Secretary of 
Defense, for members of the uniformed services serving in the same pay 
grade and with the same dependency status as the member.
    (2) In addition to the amount determined by the Secretary of 
Defense under section 403(b)(3) of title 37, United States Code, to be 
the total amount to be paid during fiscal year 2002 for the basic 
allowance for housing for military housing areas inside the United 
States, $232,000,000 of the amount authorized to be appropriated by 
section 421 for military personnel may be used by the Secretary to 
further increase the total amount available for the basic allowance for 
housing for military housing areas inside the United States.

SEC. 606. CLARIFICATION OF ELIGIBILITY FOR SUPPLEMENTAL SUBSISTENCE 
              ALLOWANCE.

    Section 402a(b)(1) of title 37, United States Code, is amended by 
inserting ``with dependents'' after ``a member of the armed forces''.

SEC. 607. CORRECTION OF LIMITATION ON ADDITIONAL UNIFORM ALLOWANCE FOR 
              OFFICERS.

    Section 416(b)(1) of title 37, United States Code, is amended by 
striking ``$200'' and inserting ``$400''.

SEC. 608. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60 DAYS ACCRUED BY 
              MEMBERS OF RESERVE COMPONENTS ON ACTIVE DUTY FOR ONE YEAR 
              OR LESS.

    (a) Eligibility.--Section 501(b)(5) of title 37, United States 
Code, is amended by--
            (1) striking ``or'' at the end of subparagraph (B);
            (2) striking the period at the end of subparagraph (C) and 
        inserting ``; or''; and
            (3) adding at the end the following new subparagraph:
            ``(D) by a member of a reserve component while serving on 
        active duty, full-time National Guard duty, or active duty for 
        training for a period of more than 30 days but not in excess of 
        365 days.''.
    (b) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2001, and shall apply with 
respect to periods of active duty that begin on or after that date.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
              RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(f) of title 37, United States Code, 
is amended by striking ``December 31, 2001'' and inserting ``December 
31, 2002''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2001'' and inserting ``December 31, 2002''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2001'' and 
inserting ``December 31, 2002''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of such title 
is amended by striking ``December 31, 2001'' and inserting ``December 
31, 2002''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking ``January 1, 2002'' and 
inserting ``January 1, 2003''.

SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES FOR 
              NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND NURSE 
              ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2001'' and inserting ``December 31, 2002''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2001'' and inserting ``December 31, 2002''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking 
``December 31, 2001'' and inserting ``December 31, 2002''.

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

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of such title is amended by striking 
``December 31, 2001'' and inserting ``December 31, 2002''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2001'' and inserting ``December 
31, 2002''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.

SEC. 614. 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 ``December 31, 2002,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (c) Bonus for Enlistment for Two or More Years.--Section 309(e) of 
such title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2002''.
    (d) Retention Bonus for Members With Critical Skills.--Section 
323(i) of such title is amended by striking ``December 31, 2001'' and 
inserting ``December 31, 2002''.

SEC. 615. HAZARDOUS DUTY PAY FOR MEMBERS OF MARITIME VISIT, BOARD, 
              SEARCH, AND SEIZURE TEAMS.

    (a) Eligibility.--Section 301(a) of title 37, United States Code, 
is amended--
            (1) by striking ``or'' at the end of paragraph (10);
            (2) by striking the period at the end of paragraph (11) and 
        inserting ``; or''; and
            (3) by inserting at the end the following new paragraph:
            ``(12) involving regular participation as a member of a 
        team conducting visit, board, search, and seizure operations 
        aboard vessels in support of maritime interdiction 
        operations.''.
    (b) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2001.

SEC. 616. SUBMARINE DUTY INCENTIVE PAY RATES.

    (a) Authority.--Section 301c of title 37, United States Code, is 
amended by striking subsection (b) and inserting the following:
    ``(b) The Secretary of the Navy shall prescribe the monthly rates 
of submarine duty incentive pay. The maximum monthly rate may not 
exceed $1,000.''.
    (b) Conforming Amendments.--(1) Subsection (a) of such section is 
amended--
            (A) by striking ``in the amount set forth in subsection 
        (b)'' in paragraphs (1) and (2); and
            (B) in paragraph (4), by striking ``that pay in the amount 
        set forth in subsection (b)'' and inserting ``submarine duty 
        incentive pay''.
    (2) Subsection (d) of such section is amended by striking ``monthly 
incentive pay authorized by subsection (b)'' and inserting ``monthly 
submarine duty incentive pay authorized''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2002.

SEC. 617. CAREER SEA PAY.

    (a) In General.--Section 305a(d) of title 37, United States Code, 
is amended by adding at the end the following: ``Under no circumstances 
shall a member of the uniformed services be excluded from this 
entitlement by virtue of his or her rank, no matter how junior, or 
subjected to a minimum time in service or underway in order to rate 
this entitlement.''.
    (b) Effective Date and Applicability.--The amendment made by 
subsection (a) shall take effect on October 1, 2001, and shall apply 
with respect to pay periods beginning on or after that date.

SEC. 618. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR INDIVIDUAL READY 
              RESERVE BONUS FOR REENLISTMENT, ENLISTMENT, OR EXTENSION 
              OF ENLISTMENT.

    (a) Eligibility Based on Qualifications in Critically Short Wartime 
Skills or Specialties.--Section 308h(a) of title 37, United States 
Code, is amended to read as follows:
    ``(a)(1) The Secretary concerned may pay a bonus as provided in 
subsection (b) to an eligible person who reenlists, enlists, or 
voluntarily extends an enlistment in a reserve component of an armed 
force for assignment to an element (other than the Selected Reserve) of 
the Ready Reserve of that armed force if the reenlistment, enlistment, 
or extension is for a period of three years, or for a period of six 
years, beyond any other period the person is obligated to serve.
    ``(2) A person is eligible for a bonus under this section if the 
person--
            ``(A) is or has been a member of an armed force;
            ``(B) is qualified in a skill or specialty designated by 
        the Secretary concerned as a critically short wartime skill or 
        critically short wartime specialty, respectively; and
            ``(C) has not failed to complete satisfactorily any 
        original term of enlistment in the armed forces.
    ``(3) For the purposes of this section, the Secretary concerned may 
designate a skill or specialty as a critically short wartime skill or 
critically short wartime specialty, respectively, for an armed force 
under the jurisdiction of the Secretary if the Secretary determines 
that--
            ``(A) the skill or specialty is critical to meet wartime 
        requirements of the armed force; and
            ``(B) there is a critical shortage of personnel in that 
        armed force who are qualified in that skill or specialty.''.
    (b) Regulations.--The Secretaries of the military departments shall 
prescribe the regulations necessary for administering section 308h of 
title 37, United States Code, as amended by this section, not later 
than the effective date determined under subsection (c)(1).
    (c) Effective Date.--This section and the amendments made by this 
section--
            (1) shall take effect on the first day of the first month 
        that begins more than 180 days after the date of the enactment 
        of this Act; and
            (2) shall apply with respect to reserve component 
        reenlistments, enlistments, and extensions of enlistments that 
        are executed on or after the first day of that month.

SEC. 619. ACCESSION BONUS FOR OFFICERS IN CRITICAL SKILLS.

    (a) In General.--(1) Chapter 5 of title 37, United States Code, is 
amended by inserting after section 323 the following new section:
``Sec. 324. Special pay: critical officer skills accession bonus
    ``(a) Accession Bonus Authorized.--A person who executes a written 
agreement to accept a commission as an officer of an armed force and 
serve on active duty in a designated critical officer skill for the 
period specified in the agreement may be paid an accession bonus upon 
acceptance of the written agreement by the Secretary concerned.
    ``(b) Designation of Critical Officer Skills.--(1) The Secretary of 
Defense, or the Secretary of Transportation with respect to the Coast 
Guard when it is not operating as a service in the Navy, shall 
designate the critical officer skills for the purposes of this section. 
The Secretary of Defense may so designate a skill for any one or more 
of the armed forces.
    ``(2) A skill may be designated as a critical officer skill for an 
armed force for the purposes of this section if--
            ``(A) in order to meet requirements of the armed force, it 
        is critical for the armed force to have a sufficient number of 
        officers who are qualified in that skill; and
            ``(B) in order to mitigate a current or projected 
        significant shortage of personnel in the armed force who are 
        qualified in that skill, it is critical to access into that 
        armed force in sufficient numbers persons who are qualified in 
        that skill or are to be trained in that skill.
    ``(c) Amount of Bonus.--The amount of a bonus paid with respect to 
a critical officer skill shall be determined under regulations jointly 
prescribed by the Secretary of Defense and the Secretary of 
Transportation, but may not exceed $20,000.
    ``(d) 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 
section 302d, 302h, or 312b of this title.
    ``(e) Payment Method.--Upon acceptance of a written agreement 
referred to in subsection (a) by the Secretary concerned, the total 
amount payable pursuant to the agreement under this section becomes 
fixed and may be paid by the Secretary in either a lump sum or 
installments.
    ``(f) Repayment for Failure To Complete Obligated Service.--(1) A 
person who, after having received all or part of the bonus under this 
section pursuant to an agreement referred to in subsection (a), fails 
to accept an appointment as a commissioned officer or to commence or 
complete the total period of active duty service in a designated 
critical officer skill as provided in the agreement shall refund to the 
United States the amount that bears the same ratio to the total amount 
of the bonus authorized for such person as the unserved part of the 
period of agreed active duty service in a designated critical officer 
skill bears to the total period of the agreed active duty service, but 
not more than the amount that was paid to the person.
    ``(2) Subject to paragraph (3), an obligation to reimburse the 
United States imposed under paragraph (1) is for all purposes a debt 
owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of a written agreement entered 
into under subsection (a) does not discharge the person signing the 
agreement from a debt arising under such agreement or under paragraph 
(1).
    ``(g) Termination of Authority.--No bonus may be paid under this 
section with respect to an agreement entered into after December 31, 
2002.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 323 the 
following new item:

``324. Special pay: critical officer skills accession bonus.''.
    (b) Effective Date.--Section 324 of title 37, United States Code 
(as added by subsection (a)), shall take effect on October 1, 2001.

SEC. 620. 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 subsection (a)(2), by striking ``that does not have 
        a Senior Reserve Officers' Training Program established under 
        section 2102 of this title''; and
            (2) in subsection (b)(1), by striking ``that does not have 
        a Senior Reserve Officers' Training Program established under 
        section 2102 of this title'' and inserting ``and, in the case 
        of a student so enrolled at a civilian institution that has a 
        Senior Reserve Officers' Training Program established under 
        section 2102 of this title, is not eligible to participate in 
        the Senior Reserve Officers' Training Program''.

SEC. 621. ELIGIBILITY FOR CERTAIN CAREER CONTINUATION BONUSES FOR EARLY 
              COMMITMENT TO REMAIN ON ACTIVE DUTY.

    (a) Aviation Officers.--Section 301b(b)(4) of title 37, United 
States Code, is amended by striking ``has completed'' and inserting 
``is within one year of the completion of''.
    (b) Surface Warfare Officers.--Section 319(a)(3) of title 37, 
United States Code, is amended by striking ``has completed'' and 
inserting ``is within one year of the completion of''.

SEC. 622. HOSTILE FIRE OR IMMINENT DANGER PAY.

    (a) In General.--Chapter 59, Subchapter IV of title 5, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5949 Hostile fire or imminent danger pay
    ``(a) The head of an Executive agency may pay an employee special 
pay at the rate of $150 for any month in which the employee, while on 
duty in the United States--
            ``(1) was subject to hostile fire or explosion of hostile 
        mines;
            ``(2) was in an area of the Pentagon in which the employee 
        was in imminent danger of being exposed to hostile fire or 
        explosion of hostile mines and in which, during the period on 
        duty in that area, other employees were subject to hostile fire 
        or explosion of hostile mines;
            ``(3) was killed, injured, or wounded by hostile fire, 
        explosion of a hostile mine, or any other hostile action; or
            ``(4) was in an area of the Pentagon in which the employee 
        was subject to the threat of physical harm or imminent danger 
        on the basis of civil insurrection, civil war, terrorism, or 
        wartime conditions.
    ``(b) An employee covered by subsection (a)(3) who is hospitalized 
for the treatment of his injury or wound may be paid special pay under 
this section for not more than three additional months during which the 
employee is so hospitalized.
    ``(c) For the purpose of this section, ``United States'' means the 
several States, the District of Columbia, the Commonwealth of Puerto 
Rico, the Commonwealth of the Northern Mariana Islands, and the 
territories and possessions of the United States.
    ``(d) An employee may be paid special pay under this section in 
addition to other pay and allowances to which entitled. Payments under 
this section may not be considered to be part of basic pay of an 
employee.''.
    (b) Technical Amendment.--The table of sections at the beginning of 
chapter 59 of such title is amended by inserting at the end the 
following new item:

``5949. Hostile fire or imminent danger pay.''.
    (c) Effective Date.--This provision is effective as if enacted into 
law on September 11, 2001, and may be applied to any hostile action 
that took place on that date or thereafter.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. ELIGIBILITY FOR TEMPORARY HOUSING ALLOWANCE WHILE IN TRAVEL 
              OR LEAVE STATUS BETWEEN PERMANENT DUTY STATIONS.

    (a) Personnel in Grades Below E-4.--Section 403(i) of title 37, 
United States Code, is amended by striking ``who is in a pay grade E-4 
(4 or more years of service) or above''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2001.

SEC. 632. ELIGIBILITY FOR PAYMENT OF SUBSISTENCE EXPENSES ASSOCIATED 
              WITH OCCUPANCY OF TEMPORARY LODGING INCIDENT TO REPORTING 
              TO FIRST PERMANENT DUTY STATION.

    (a) Officer Personnel.--Section 404a(a)(2)(C) of title 37, United 
States Code, is amended by striking ``an enlisted member'' and 
inserting ``a member''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2001.

SEC. 633. ELIGIBILITY FOR DISLOCATION ALLOWANCE.

    (a) Members With Dependents When Ordered to First Duty Station.--
Section 407 of title 37, United States Code, is amended--
            (1) in subsection (a)(2), by adding at the end the 
        following new subparagraph:
            ``(F) A member whose dependents actually move from the 
        member's place of residence in connection with the performance 
        of orders for the member to report to the member's first 
        permanent duty station if the move--
                    ``(i) is to the permanent duty station or a 
                designated location; and
                    ``(ii) is an authorized move.''; and
            (2) in subsection (e), by inserting ``(except as provided 
        in subsection (a)(2)(F))'' after ``first duty station''.
    (b) Married Members Without Dependents Assigned to Government 
Family Quarters.--Subsection (a) of such section, as amended by 
subsection (a), is further amended--
            (1) by adding at the end of paragraph (2) the following new 
        subparagraph:
            ``(G) Each of two members married to each other who--
                    ``(i) is without dependents;
                    ``(ii) actually moves with the member's spouse to a 
                new permanent duty station; and
                    ``(iii) is assigned to family quarters of the 
                United States at or in the vicinity of the new duty 
                station.''; and
            (2) by adding at the end of the subsection the following 
        new paragraph:
    ``(4) If a primary dislocation allowance is payable to two members 
described in subparagraph (G) of paragraph (2) who are married to each 
other, the amount of the allowance payable to such members shall be the 
amount otherwise payable under this subsection to the member in the 
higher pay grade, or to either member if both members are in the same 
pay grade. The allowance shall be paid jointly to both members.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2001.

SEC. 634. ALLOWANCE FOR DISLOCATION FOR THE CONVENIENCE OF THE 
              GOVERNMENT AT HOME STATION.

    (a) Authority.--(1) Chapter 7 of title 37, United States Code is 
amended by inserting after section 407 the following new section:
``Sec. 407a. Travel and transportation: allowance for dislocation for 
              the convenience of the Government at home station
    ``(a) Authority.--Under regulations prescribed by the Secretary 
concerned, a member of the uniformed services may be paid a dislocation 
allowance under this section when ordered, for the convenience of the 
Government and not pursuant to a permanent change of station, to occupy 
or to vacate family housing provided by the Department of Defense, or 
by the Department of Transportation in the case of the Coast Guard.
    ``(b) Amount.--(1) Subject to paragraph (2), the amount of a 
dislocation allowance paid under this section is $500.
    ``(2) Effective on the same date that the monthly rates of basic 
pay for members of the uniformed services are increased under section 
1009 of this title or by a law increasing those rates by a percentage 
specified in the law, the amount of the dislocation allowance provided 
under this section shall be increased by the percentage by which the 
monthly rates of basic pay are so increased.
    ``(c) Advance Payment.--A dislocation allowance payable under this 
section may be paid in advance.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 407 the 
following new item:

``407a. Travel and transportation: allowance for dislocation for the 
                            convenience of the Government at home 
                            station.''.
    (b) Effective Date.--Section 407a of title 37, United States Code, 
shall take effect on October 1, 2001.

SEC. 635. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY MEMBERS TO 
              ATTEND THE BURIAL OF A DECEASED MEMBER OF THE UNIFORMED 
              SERVICES.

    (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)'';
                    (B) by striking ``the dependents of a member'' and 
                inserting ``eligible members of the family of a member 
                of the uniformed services'';
                    (C) by striking ``such dependents'' and inserting 
                ``such persons''; and
                    (D) by inserting at the end the following new 
                paragraph:
    ``(2) An attendant accompanying a person provided travel and 
transportation allowances under this section for travel to the burial 
ceremony for a deceased member may also be provided under the uniform 
regulations round trip travel and transportation allowances for travel 
to the burial ceremony if--
            ``(A) the accompanied person is unable to travel unattended 
        because of age, physical condition, or other justifiable 
        reason, as determined under the uniform regulations; and
            ``(B) there is no other eligible member of the family of 
        the deceased member traveling to the burial ceremony who is 
        eligible for travel and transportation allowances under this 
        section and is qualified to serve as the attendant.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Except as provided in 
                        paragraph (2)'' and inserting ``Limitations.--
                        (1) Except as provided in paragraphs (2) and 
                        (3)''; and
                            (ii) by inserting before the period at the 
                        end the following: ``and the time necessary for 
                        such travel'';
                    (B) in paragraph (2), by striking ``be extended to 
                accommodate'' and inserting ``not exceed the rates for 
                2 days and''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(3) If a deceased member is interred in a cemetery maintained by 
the American Battle Monuments Commission, the travel and transportation 
allowances authorized under this section may be provided to and from 
such cemetery and may not exceed the rates for 2 days and the time 
necessary for such travel.''; and
            (3) by striking subsection (c) and inserting the following:
    ``(c) Eligible Members of Family.--The following members of the 
family of a deceased member of the uniformed services are eligible for 
the travel and transportation allowances under this section:
            ``(1) The surviving spouse (including a remarried surviving 
        spouse) of the deceased member.
            ``(2) The unmarried child or children of the deceased 
        member referred to in section 401(a)(2) of this title.
            ``(3) If no person described in paragraphs (1) and (2) is 
        provided travel and transportation allowances under this 
        section, the parent or parents of the deceased member (as 
        defined in section 401(b)(2) of this title).
            ``(4) If no person described in paragraphs (1), (2), and 
        (3) is provided travel and transportation allowances under this 
        section, then--
                    ``(A) the person who directs the disposition of the 
                remains of the deceased member under section 1482(c) of 
                title 10, or, in the case of a deceased member whose 
                remains are commingled and buried in a common grave in 
                a national cemetery, the person who would have been 
                designated under such section to direct the disposition 
                of the remains if individual identification had been 
                made; and
                    ``(B) up to two additional persons closely related 
                to the deceased member who are selected by the person 
                referred to in subparagraph (A).
    ``(d) Definitions.--In this section:
            ``(1) The term `burial ceremony' includes the following:
                    ``(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(d)(2) of title 10.
                    ``(D) A burial of commingled remains that cannot be 
                individually identified in a common grave in a national 
                cemetery.
            ``(2) The term `member of the family' includes a person 
        described in section 1482(c)(4) of title 10 who, except for 
        this paragraph, would not otherwise be considered a family 
        member.''.
    (b) Repeal of Superseded Laws.--(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 (Public Law 93-257; 88 Stat. 53; 37 U.S.C. 406 note) is repealed.
    (c) Applicability.--The amendments made by this Act shall apply 
with respect to deaths that occur on or after the later of--
            (1) October 1, 2001; or
            (2) the date of the enactment of this Act.

SEC. 636. FAMILY SEPARATION ALLOWANCE FOR MEMBERS ELECTING 
              UNACCOMPANIED TOUR BY REASON OF HEALTH LIMITATIONS OF 
              DEPENDENTS.

    (a) Eligibility.--Section 427(c) of title 37, United States Code, 
is amended--
            (1) in the first sentence, by striking ``A member who 
        elects'' and inserting ``(1) Except as provided in paragraph 
        (2), a member who elects'';
            (2) in the second sentence, by striking ``The Secretary 
        concerned may waive the preceding sentence'' and inserting the 
        following:
    ``(3) The Secretary concerned may waive paragraph (1)''; and
            (3) by inserting after paragraph (1) (as designated by the 
        amendment made by paragraph (1) of this section) the following 
        new paragraph:
    ``(2) The prohibition in the first sentence of paragraph (1) does 
not apply in the case of a member who elects to serve a tour of duty 
unaccompanied by his dependents at the member's permanent station 
because a dependent cannot accompany the member to or at that permanent 
station for medical reasons certified by a health care professional in 
accordance with regulations prescribed for the administration of this 
section.''.
    (b) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2001.

SEC. 637. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY UNDER AN EDUCATION 
              PROGRAM APPROVED BY A UNITED STATES SCHOOL.

    (a) Authority.--Section 430 of title 37, United States Code, is 
amended--
            (1) in subsection (a)(3)--
                    (A) by striking ``attending'' and inserting 
                ``enrolled in''; and
                    (B) by inserting before the comma at the end the 
                following: ``and is attending that school or is 
                participating in a foreign study program approved by 
                that school and, pursuant to that program, is attending 
                a school outside the United States for a period of not 
                more than one year''; and
            (2) in subsection (b)--
                    (A) in the first sentence of paragraph (1), by 
                striking ``each unmarried dependent child,'' and all 
                that follows through ``the school being attended'' and 
                inserting ``each unmarried dependent child (described 
                in subsection (a)(3)) of one annual trip between the 
                school being attended by that child''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) The transportation allowance paid under paragraph (1) for an 
annual trip of a dependent child described in subsection (a)(3) who is 
attending a school outside the United States may not exceed the 
transportation allowance that would be paid under this section for the 
annual trip of that child between the child's school in the continental 
United States and the member's duty station outside the continental 
United States and return.''.
    (b) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2001, and shall apply with 
respect to travel that originates outside the continental United States 
(as defined in section 430(f) of title 37, United States Code), on or 
after that date.

SEC. 638. TRANSPORTATION OR STORAGE OF PRIVATELY OWNED VEHICLES ON 
              CHANGE OF PERMANENT STATION.

    (a) Advance Payment of Storage Costs.--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.''.
    (b) Shipment in Permanent Change of Station Within CONUS.--
Subsection (h)(1) of such section is amended--
            (1) by striking ``includes'' in the second sentence and all 
        that follows and inserting ``includes the following:''; and
            (2) by adding at the end the following subparagraphs:
                    ``(A) An authorized change in home port of a 
                vessel.
                    ``(B) A transfer or assignment between two 
                permanent stations in the continental United States 
                when--
                            ``(i) the member cannot, because of injury 
                        or the conditions of the order, drive the motor 
                        vehicle between the permanent duty stations; or
                            ``(ii) the Secretary concerned determines 
                        that it is advantageous and cost-effective to 
                        the Government for one motor vehicle of the 
                        member to be transported between the permanent 
                        duty stations.''.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2001.

    Subtitle D--Matters Relating to Retirement and Survivor Benefits

SEC. 651. PAYMENT OF RETIRED PAY AND COMPENSATION TO DISABLED MILITARY 
              RETIREES.

    (a) Restoration of Retired Pay Benefits.--Chapter 71 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 1414. Members eligible for retired pay who have service-
              connected disabilities: payment of retired pay and 
              veterans' disability compensation
    ``(a) Payment of Both Retired Pay and Compensation.--Except as 
provided in subsection (b), a member or former member of the uniformed 
services who is entitled to retired pay (other than as specified in 
subsection (c)) and who is also entitled to veterans' disability 
compensation is entitled to be paid both without regard to sections 
5304 and 5305 of title 38.
    ``(b) Special Rule for Chapter 61 Career Retirees.--The retired pay 
of a member retired under chapter 61 of this title with 20 years or 
more of service otherwise creditable under section 1405 of this title 
at the time of the member's retirement is subject to reduction under 
sections 5304 and 5305 of title 38, but only to the extent that the 
amount of the member's retired pay under chapter 61 of this title 
exceeds the amount of retired pay to which the member would have been 
entitled under any other provision of law based upon the member's 
service in the uniformed services if the member had not been retired 
under chapter 61 of this title.
    ``(c) Exception.--Subsection (a) does not apply to a member retired 
under chapter 61 of this title with less than 20 years of service 
otherwise creditable under section 1405 of this title at the time of 
the member's retirement.
    ``(d) Definitions.--In this section:
            ``(1) The term `retired pay' includes retainer pay, 
        emergency officers' retirement pay, and naval pension.
            ``(2) The term `veterans' disability compensation' has the 
        meaning given the term `compensation' in section 101(13) of 
        title 38.''.
    (b) Repeal of Special Compensation Program.--Section 1413 of such 
title is repealed.
    (c) Clerical Amendments.--The table of sections at the beginning of 
such chapter is amended--
            (1) by striking the item relating to section 1413; and
            (2) by adding at the end the following new item:

``1414. Members eligible for retired pay who have service-connected 
                            disabilities: payment of retired pay and 
                            veterans' disability compensation.''.
    (d) Effective Date.--(1) The amendments made by this section shall 
take effect on October 1, 2002.
    (2) No benefits may be paid to any person by reason of section 1414 
of title 10, United States Code, as added by the amendment made by 
subsection (a), for any period before the effective date under 
paragraph (1).

SEC. 652. SBP ELIGIBILITY OF SURVIVORS OF RETIREMENT-INELIGIBLE MEMBERS 
              OF THE UNIFORMED SERVICES WHO DIE WHILE ON ACTIVE DUTY.

    (a) Surviving Spouse Annuity.--Section 1448(d) of title 10, United 
States Code, is amended by striking paragraph (1) and inserting the 
following:
            ``(1) Surviving spouse annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the surviving 
        spouse of--
                    ``(A) a member who dies while on active duty 
                after--
                            ``(i) becoming eligible to receive retired 
                        pay;
                            ``(ii) qualifying for retired pay except 
                        that the member has not applied for or been 
                        granted that pay; or
                            ``(iii) completing 20 years of active 
                        service but before the member is eligible to 
                        retire as a commissioned officer because the 
                        member has not completed 10 years of active 
                        commissioned service; or
                    ``(B) a member not described in subparagraph (A) 
                who dies in line of duty while on active duty.''.
    (b) Computation of Survivor Annuity.--Section 1451(c)(1) of title 
10, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``based upon his years of active 
                service when he died.'' and inserting ``based upon the 
                following:''; and
                    (B) by adding at the end the following new clauses:
                            ``(i) In the case of an annuity payable 
                        under section 1448(d) of this title by reason 
                        of the death of a member in line of duty, the 
                        retired pay base computed for the member under 
                        section 1406(b) or 1407 of this title as if the 
                        member had been retired under section 1201 of 
                        this title on the date of the member's death 
                        with a disability rated as total.
                            ``(ii) In the case of an annuity payable 
                        under section 1448(d)(1)(A) of this title by 
                        reason of the death of a member not in line of 
                        duty, the member's years of active service when 
                        he died.
                            ``(iii) In the case of an annuity under 
                        section 1448(f) of this title, the member's 
                        years of active service when he died.''; and
            (2) in subparagraph (B)(i), by striking ``if the member or 
        former member'' and all that follows and inserting ``as 
        described in subparagraph (A).''.
    (c) Conforming Amendments.--(1) The heading for subsection (d) of 
section 1448 of such title is amended by striking ``Retirement-
Eligible''.
    (2) Subsection (d)(3) of such section is amended by striking 
``1448(d)(1)(B) or 1448(d)(1)(C)'' and inserting ``clause (ii) or (iii) 
of section 1448(d)(1)(A)''.
    (d) Extension and Increase of Objectives for Receipts From 
Disposals of Certain Stockpile Materials Authorized for Several Fiscal 
Years Beginning With Fiscal Year 1999.--Section 3303(a) of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 112 Stat. 2262; 50 U.S.C. 98d note) is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) in paragraph (4)--
                    (A) by striking ``$720,000,000'' and inserting 
                ``$760,000,000''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(5) $770,000,000 by the end of fiscal year 2011.''.
    (e) Effective Date and Applicability.--This section and the 
amendments made by this section shall take effect as of September 10, 
2001, and shall apply with respect to deaths of members of the Armed 
Forces occurring on or after that date.

                       Subtitle E--Other Matters

SEC. 661. EDUCATION SAVINGS PLAN FOR REENLISTMENTS AND EXTENSIONS OF 
              SERVICE IN CRITICAL SPECIALTIES.

    (a) Establishment of Savings Plan.--(1) Chapter 5 of title 37, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 324. Incentive bonus: savings plan for education expenses and 
              other contingencies
    ``(a) Benefit and Eligibility.--The Secretary concerned may 
purchase United States savings bonds under this section for a member of 
the armed forces who is eligible as follows:
            ``(1) A member who, before completing three years of 
        service on active duty, enters into a commitment to perform 
        qualifying service.
            ``(2) A member who, after completing three years of service 
        on active duty but not more than nine years of service on 
        active duty, enters into a commitment to perform qualifying 
        service.
            ``(3) A member who, after completing nine years of service 
        on active duty, enters into a commitment to perform qualifying 
        service.
    ``(b) Qualifying Service.--For the purposes of this section, 
qualifying service is service on active duty in a specialty designated 
by the Secretary concerned as critical to meet requirements (whether or 
not such specialty is designated as critical to meet wartime or 
peacetime requirements) for a period that--
            ``(1) is not less than six years; and
            ``(2) does not include any part of a period for which the 
        member is obligated to serve on active duty under an enlistment 
        or other agreement for which a benefit has previously been paid 
        under this section.
    ``(c) Forms of Commitment to Additional Service.--For the purposes 
of this section, a commitment means--
            ``(1) in the case of an enlisted member, a reenlistment; 
        and
            ``(2) in the case of a commissioned officer, an agreement 
        entered into with the Secretary concerned.
    ``(d) Amounts of Bonds.--The total of the face amounts of the 
United States savings bonds authorized to be purchased for a member 
under this section for a commitment shall be as follows:
            ``(1) In the case of a purchase for a member under 
        paragraph (1) of subsection (a), $5,000.
            ``(2) In the case of a purchase for a member under 
        paragraph (2) of subsection (a), the amount equal to the excess 
        of $15,000 over the total of the face amounts of any United 
        States savings bonds previously purchased for the member under 
        this section.
            ``(3) In the case of a purchase for a member under 
        paragraph (3) of subsection (a), the amount equal to the excess 
        of $30,000 over the total of the face amounts of any United 
        States savings bonds previously purchased for the member under 
        this section.
    ``(e) Total Amount of Benefit.--The total amount of the benefit 
authorized for a member when United States savings bonds are purchased 
for the member under this section by reason of a commitment by that 
member shall be the sum of--
            ``(1) the purchase price of the United States savings 
        bonds; and
            ``(2) the amounts that would be deducted and withheld for 
        the payment of individual income taxes if the total amount 
        computed under this subsection for that commitment were paid to 
        the member as a bonus.
    ``(f) Amount Withheld for Taxes.--The total amount payable for a 
member under subsection (e)(2) for a commitment by that member shall be 
withheld, credited, and otherwise treated in the same manner as amounts 
deducted and withheld from the basic pay of the member.
    ``(g) Repayment for Failure To Complete Obligated Service.--(1) If 
a person fails to complete the qualifying service for which the person 
is obligated under a commitment for which a benefit has been paid under 
this section, the person shall refund to the United States the amount 
that bears the same ratio to the total amount paid for the person (as 
computed under subsection (e)) for that particular commitment as the 
uncompleted part of the period of qualifying service bears to the total 
period of the qualifying service for which obligated.
    ``(2) Subject to paragraph (3), an obligation to reimburse the 
United States imposed under paragraph (1) is for all purposes a debt 
owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an enlistment or other 
agreement under this section does not discharge the person signing such 
reenlistment or other agreement from a debt arising under the 
reenlistment or agreement, respectively, or this subsection.
    ``(h) Relationship to Other Special Pays.--The benefit authorized 
under this section is in addition to any other bonus or incentive or 
special pay that is paid or payable to a member under any other 
provision of this chapter for any portion of the same qualifying 
service.
    ``(i) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the armed forces 
under his jurisdiction and by the Secretary of Transportation for the 
Coast Guard when the Coast Guard is not operating as a service in the 
Navy.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``324. Incentive bonus: savings plan for education and other 
                            contingencies.''.
    (b) Effective Date.--Section 324 of title 37, United States Code 
(as added by subsection (a)), shall take effect on October 1, 2001, and 
shall apply with respect to reenlistments and other agreements for 
qualifying service (described in that section) that are entered into on 
or after that date.
    (c) Funding For Fiscal Year 2002.--Of the amount authorized to be 
appropriated to the Department of Defense for military personnel for 
fiscal year 2002 by section 421, $20,000,000 may be available in that 
fiscal year for the purchase of United States savings bonds under 
section 324 of title 37, United States Code (as added by subsection 
(a)).

SEC. 662. COMMISSARY BENEFITS FOR NEW MEMBERS OF THE READY RESERVE.

    (a) Eligibility.--Section 1063 of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Eligibility of New Members.--(1) The Secretary concerned 
shall authorize a new member of the Ready Reserve to use commissary 
stores of the Department of Defense for a number of days accruing at 
the rate of two days for each month in which the member participates 
satisfactorily in training required under section 10147(a)(1) of this 
title or section 502(a) of title 32, as the case may be.
    ``(2) For the purposes of paragraph (1), a person shall be 
considered a new member of the Ready Reserve upon becoming a member and 
continuing without a break in the membership until the earlier of--
            ``(A) the date on which the member becomes eligible to use 
        commissary stores under subsection (a); or
            ``(B) December 31 of the first calendar year in which the 
        membership has been continuous for the entire year.
    ``(3) A new member may not be authorized under this subsection to 
use commissary stores for more than 24 days for any calendar year.''.
    (b) Required Documentation.--Subsection (d) of such section, as 
redesignated by subsection (a)(1), is amended by adding at the end the 
following: ``The regulations shall specify the required documentation 
of satisfactory participation in training for the purposes of 
subsection (b).''.
    (c) Conforming Amendment.--Subsection (c) of such section, as 
redesignated by subsection (a)(1), is amended by striking ``Subsection 
(a)'' and inserting ``Subsections (a) and (b)''.
    (d) Clerical Amendments.--(1) The heading for such section is 
amended to read as follows:
``Sec. 1063. Use of commissary stores: members of Ready Reserve''.
    (2) Subsection (a) of such section is amended by striking ``of 
Ready Reserve'' and inserting ``With 50 or More Creditable Points''.
    (3) The item relating to such section in the table of sections at 
the beginning of chapter 54 of title 10, United States Code, is amended 
to read as follows:

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

SEC. 663. AUTHORIZATION OF TRANSITIONAL COMPENSATION AND COMMISSARY AND 
              EXCHANGE BENEFITS FOR DEPENDENTS OF COMMISSIONED OFFICERS 
              OF THE PUBLIC HEALTH SERVICE AND THE NATIONAL OCEANIC AND 
              ATMOSPHERIC ADMINISTRATION WHO ARE SEPARATED FOR 
              DEPENDENT ABUSE.

    (a) Commissioned Officers of the Public Health Service.--Section 
221(a) of the Public Health Service Act (42 U.S.C. 213a(a)) is amended 
by adding at the end the following new paragraph:
            ``(17) Section 1059, Transitional compensation and 
        commissary and exchange benefits for dependents of members 
        separated for dependent abuse.''.
    (b) Commissioned Officers of the National Oceanic and Atmospheric 
Administration.--Section 3(a) of the Act entitled ``An Act to revise, 
codify, and enact into law, title 10 of the United States Code, 
entitled `Armed Forces', and title 32 of the United States Code, 
entitled `National Guard''', approved August 10, 1956 (33 U.S.C. 
857a(a)), is amended by adding at the end the following new paragraph:
            ``(17) Section 1059, Transitional compensation and 
        commissary and exchange benefits for dependents of members 
        separated for dependent abuse.''.

             Subtitle F--National Emergency Family Support

SEC. 681. CHILD CARE AND YOUTH ASSISTANCE.

    (a) Authority.--The Secretary of Defense may provide assistance for 
families of members of the Armed Forces serving on active duty during 
fiscal year 2002, in order to ensure that the children of such families 
obtain needed child care and youth services.
    (b) Appropriate Primary Objective.--The assistance authorized by 
this section should be directed primarily toward providing needed 
family support, including child care and youth services for children of 
such personnel who are deployed, assigned, or ordered to active duty in 
connection with operations of the Armed Forces under the national 
emergency.

SEC. 682. FAMILY EDUCATION AND SUPPORT SERVICES.

     During fiscal year 2002, the Secretary of Defense is authorized to 
provide family education and support services to families of members of 
the Armed Services to the same extent that these services were provided 
during the Persian Gulf War.

                         TITLE VII--HEALTH CARE

               Subtitle A--TRICARE Benefits Modernization

SEC. 701. REQUIREMENT FOR INTEGRATION OF BENEFITS.

    (a) In General.--The Secretary of Defense shall--
            (1) terminate the Individual Case Management Program 
        carried out under section 1079(a)(17) of title 10, United 
        States Code (as in effect on September 30, 2001); and
            (2) integrate the beneficiaries under that program, and the 
        furnishing of care to those beneficiaries, into the TRICARE 
        program as modified pursuant to the amendments made by this 
        subtitle.
    (b) Repeal of Separate Authority.--Section 1079 of title 10, United 
States Code, is amended by striking paragraph (17).
    (c) Savings Provision.--Nothing in this subtitle or the amendments 
made by this subtitle shall be construed--
            (1) to modify any eligibility requirement for any person 
        receiving benefits under the Individual Case Management Program 
        before October 1, 2001; or
            (2) to terminate any benefits available under that program 
        before that date.
    (d) Consultation Requirement.--The Secretary of Defense shall 
consult with the other administering Secretaries referred to in section 
1072(3) of title 10, United States Code, in carrying out this section.

SEC. 702. DOMICILIARY AND CUSTODIAL CARE.

    Section 1072 of title 10, United States Code, is amended by adding 
at the end the following new paragraphs:
            ``(8) The term `domiciliary care' means treatment or 
        services involving assistance with the performance of 
        activities of daily living that is provided to a patient in a 
        home-like setting because--
                    ``(A) the treatment or services are not available, 
                or are not suitable to be provided, to the patient in 
                the patient's home; or
                    ``(B) no member of the patient's family is willing 
                to provide the treatment or services.
            ``(9) The term `custodial care'--
                    ``(A) means treatment or services that--
                            ``(i) could be provided safely and 
                        reasonably by a person not trained as a 
                        physician, nurse, paramedic, or other health 
                        care provider; or
                            ``(ii) are provided principally to assist 
                        the recipient of the treatment or services with 
                        the performance of activities of daily living; 
                        and
                    ``(B) includes any treatment or service described 
                in subparagraph (A) without regard to--
                            ``(i) the source of any recommendation to 
                        provide the treatment or service; and
                            ``(ii) the setting in which the treatment 
                        or service is provided.''.

SEC. 703. LONG TERM CARE.

    (a) Limitation.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074i the following new section:
``Sec. 1074j. Long term care benefits program
    ``(a) Requirement for Program.--The Secretary of Defense shall 
provide long term health care benefits under the TRICARE program in an 
effective and efficient manner that integrates those benefits with the 
benefits provided on a less than a long term basis under the TRICARE 
program.
    ``(b) Authorized Care.--The types of health care authorized to be 
provided under this section shall include the following:
            ``(1) The types of health care authorized to be acquired by 
        contract under section 1079 of this title.
            ``(2) Extended care services.
            ``(3) Post-hospital extended care services.
            ``(4) Comprehensive intermittent home health services.
    ``(c) Duration of Post-Hospital Extended Care Services.--The post-
hospital extended care services provided in a skilled nursing facility 
to a patient during a spell of illness under subsection (b)(3) shall 
continue for as long as is medically necessary and appropriate. The 
limitation on the number of days of coverage under subsections (a)(2) 
and (b)(2)(A) of section 1812 of the Social Security Act (42 U.S.C. 
1395d) shall not apply with respect to the care provided that patient.
    ``(d) Regulations.--The Secretary of Defense shall, after 
consultation with the other administering Secretaries, prescribe 
regulations to carry out this section.
    ``(e) Definitions.--In this section:
            ``(1) The term `extended care services' has the meaning 
        given the term in subsection (h) of section 1861 of the Social 
        Security Act (42 U.S.C. 1395x).
            ``(2) The term `post-hospital extended services' has the 
        meaning given the term in subsection (i) of section 1861 of the 
        Social Security Act (42 U.S.C. 1395x).
            ``(3) The term `home health services' has the meaning given 
        the term in subsection (m) of section 1861 of the Social 
        Security Act (42 U.S.C. 1395x).
            ``(4) The term `skilled nursing facility' has the meaning 
        given the term in section 1819(a) of the Social Security Act 
        (42 U.S.C. 1395i-3(a)).
            ``(5) The term `spell of illness' has the meaning given the 
        term in subsection (a) of section 1861 of the Social Security 
        Act (42 U.S.C. 1395x).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1074i the following new item:

``1074j. Long term care benefits program.''.

SEC. 704. EXTENDED BENEFITS FOR DISABLED BENEFICIARIES.

    Section 1079 of title 10, United States Code, is amended by 
striking subsections (d), (e), and (f) and inserting the following:
    ``(d)(1) The health care benefits contracted for under this section 
shall include extended benefits for dependents referred to in the first 
sentence of subsection (a) who have any of the following qualifying 
conditions:
            ``(A) Moderate or severe mental retardation.
            ``(B) A serious physical disability.
            ``(C) Any extraordinary physical or psychological 
        condition.
    ``(2) The extended benefits under paragraph (1) may include 
comprehensive health care, including services necessary to maintain 
function, or to minimize or prevent deterioration of function, of the 
patient, and case management services, to the extent not otherwise 
provided under this chapter with respect to a qualifying condition, as 
follows:
            ``(A) Diagnosis.
            ``(B) Inpatient, outpatient, and comprehensive home health 
        supplies and services.
            ``(C) Training and rehabilitation, including special 
        education and assistive technology devices.
            ``(D) Institutional care in private nonprofit, public, and 
        State institutions and facilities and, when appropriate, 
        transportation to and from such institutions and facilities.
            ``(E) Any other services and supplies determined 
        appropriate under regulations prescribed under paragraph (9).
    ``(3) The extended benefits under paragraph (1) may also include 
respite care for the primary caregiver of a dependent eligible for 
extended benefits under this subsection.
    ``(4) Home health supplies and services may be provided to a 
dependent under paragraph (2)(B) as other than part-time or 
intermittent services (as determined in accordance with the second 
sentence of section 1861(m) of the Social Security Act (42 U.S.C. 
1395x(m)) only if--
            ``(A) the provision of such supplies and services in the 
        home of the dependent is medically appropriate; and
            ``(B) the cost of the provision of such supplies and 
        services to the dependent is equal to or less than the cost of 
        the provision of similar supplies and services to the dependent 
        in a skilled nursing facility.
    ``(5) Subsection (a)(13) shall not apply to the provision of care 
and services determined appropriate to be provided as extended benefits 
under this subsection.
    ``(6) Subject to paragraph (7), a member of the uniformed services 
shall pay a share of the cost of any care and services provided as 
extended benefits to any of the dependents of the member under this 
subsection as follows:
            ``(A) In the case of a member in the lowest enlisted pay 
        grade, the first $25 of the cumulative costs of all care 
        furnished to one or more dependents of the member in a month.
            ``(B) In the case of a member in the highest commissioned 
        pay grade, the first $250 of the cumulative costs of all care 
        furnished to one or more dependents of the member in a month.
            ``(C) In the case of a member in any other pay grade, a 
        fixed amount of the cumulative costs of all care furnished to 
        one or more dependents of the member in a month, as prescribed 
        for that pay grade in regulations prescribed under paragraph 
        (9).
    ``(7)(A) In the case of extended benefits provided under 
subparagraph (C) or (D) of paragraph (2) to a dependent of a member of 
the uniformed services--
            ``(i) the Government's share of the total cost of providing 
        such benefits in any month shall not exceed $2,500, except for 
        costs that a member is exempt from paying under subparagraph 
        (B); and
            ``(ii) the member shall pay (in addition to any amount 
        payable under paragraph (6)) the amount, if any, by which the 
        amount of such total cost for the month exceeds the 
        Government's maximum share under clause (i).
    ``(B) A member of the uniformed services who incurs expenses under 
subparagraph (A) for a month for more than one dependent shall not be 
required to pay for the month under clause (ii) of that subparagraph an 
amount greater than the amount the member would otherwise be required 
to pay under that clause for the month if the member were incurring 
expenses under that subparagraph for only one dependent.
    ``(8) To qualify for extended benefits under subparagraph (C) or 
(D) of paragraph (2), a dependent of a member of the uniformed services 
shall be required to use public facilities to the extent such 
facilities are available and adequate, as determined under joint 
regulations of the administering Secretaries.
    ``(9) The Secretary of Defense, in consultation with the other 
administering Secretaries, shall prescribe regulations to carry out 
this subsection.''.

SEC. 705. CONFORMING REPEALS.

    The following provisions of law are repealed:
            (1) Section 703 of the National Defense Authorization Act 
        for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 682; 10 
        U.S.C. 1077 note).
            (2) Section 8118 of the Department of Defense 
        Appropriations Act, 2000 (Public Law 106-79; 113 Stat. 1260).
            (3) Section 8100 of the Department of Defense 
        Appropriations Act, 2001 (Public Law 106-259; 114 Stat. 696).

SEC. 706. PROSTHETICS AND HEARING AIDS.

    Section 1077 of title 10 United States Code, is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(16) A hearing aid, but only for a dependent of a member 
        of the uniformed services on active duty and only if the 
        dependent has a profound hearing loss, as determined under 
        standards prescribed in regulations by the Secretary of Defense 
        in consultation with the administering Secretaries.'';
            (2) in subsection (b)(2), by striking ``Hearing aids, 
        orthopedic footwear,'' and inserting ``Orthopedic footwear''; 
        and
            (3) by adding at the end the following new subsection:
    ``(f)(1) Authority to provide a prosthetic device under subsection 
(a)(15) includes authority to provide the following:
            ``(A) Any accessory or item of supply that is used in 
        conjunction with the device for the purpose of achieving 
        therapeutic benefit and proper functioning.
            ``(B) Services necessary to train the recipient of the 
        device in the use of the device.
            ``(C) Repair of the device for normal wear and tear or 
        damage.
            ``(D) Replacement of the device if the device is lost or 
        irreparably damaged or the cost of repair would exceed 60 
        percent of the cost of replacement.
    ``(2) An augmentative communication device may be provided as a 
voice prosthesis under subsection (a)(15).
    ``(3) A prosthetic device customized for a patient may be provided 
under this section only by a prosthetic practitioner who is qualified 
to customize the device, as determined under regulations prescribed by 
the Secretary of Defense in consultation with the administering 
Secretaries.''.

SEC. 707. DURABLE MEDICAL EQUIPMENT.

    (a) Items Authorized.--Section 1077 of title 10, United States 
Code, as amended by section 706, is further amended--
            (1) in subsection (a)(12), by striking ``such as 
        wheelchairs, iron lungs, and hospital beds,'' and inserting 
        ``which''; and
            (2) by adding at the end the following new subsection:
    ``(g)(1) Items that may be provided to a patient under subsection 
(a)(12) include the following:
            ``(A) Any durable medical equipment that can improve, 
        restore, or maintain the function of a malformed, diseased, or 
        injured body part, or can otherwise minimize or prevent the 
        deterioration of the patient's function or condition.
            ``(B) Any durable medical equipment that can maximize the 
        patient's function consistent with the patient's physiological 
        or medical needs.
            ``(C) Wheelchairs.
            ``(D) Iron lungs,
            ``(E) Hospital beds.
    ``(2) In addition to the authority to provide durable medical 
equipment under subsection (a)(12), any customization of equipment 
owned by the patient that is durable medical equipment authorized to be 
provided to the patient under this section or section 1079(a)(5) of 
this title, and any accessory or item of supply for any such equipment, 
may be provided to the patient if the customization, accessory, or item 
of supply is essential for--
            ``(A) achieving therapeutic benefit for the patient;
            ``(B) making the equipment serviceable; or
            ``(C) otherwise assuring the proper functioning of the 
        equipment.''.
    (b) Provision of Items on Rental Basis.--Paragraph (5) of section 
1079(a) of such title is amended to read as follows:
            ``(5) Durable equipment provided under this section may be 
        provided on a rental basis.''.

SEC. 708. REHABILITATIVE THERAPY.

    Section 1077(a) of title 10, United States Code, as amended by 
section 706(1), is further amended by inserting after paragraph (16) 
the following new paragraph:
            ``(17) Any rehabilitative therapy to improve, restore, or 
        maintain function, or to minimize or prevent deterioration of 
        function, of a patient when prescribed by a physician.''.

SEC. 709. MENTAL HEALTH BENEFITS.

    (a) Requirement for Study.--The Secretary of Defense shall carry 
out a study to determine the adequacy of the scope and availability of 
outpatient mental health benefits provided for members of the Armed 
Forces and covered beneficiaries under the TRICARE program.
    (b) Report.--Not later than March 31, 2002, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the study, including the conclusions and 
any recommendations for legislation that the Secretary considers 
appropriate.

SEC. 710. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect on October 1, 2001.

                       Subtitle B--Other Matters

SEC. 711. REPEAL OF REQUIREMENT FOR PERIODIC SCREENINGS AND 
              EXAMINATIONS AND RELATED CARE FOR MEMBERS OF ARMY RESERVE 
              UNITS SCHEDULED FOR EARLY DEPLOYMENT.

    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. 712. CLARIFICATION OF ELIGIBILITY FOR REIMBURSEMENT OF TRAVEL 
              EXPENSES OF ADULT ACCOMPANYING PATIENT IN TRAVEL FOR 
              SPECIALTY CARE.

    Section 1074i of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``and, when 
accompaniment by an adult is necessary, for a parent or guardian of the 
covered beneficiary or another member of the covered beneficiary's 
family who is at least 21 years of age''.

SEC. 713. TRICARE PROGRAM LIMITATIONS ON PAYMENT RATES FOR 
              INSTITUTIONAL HEALTH CARE PROVIDERS AND ON BALANCE 
              BILLING BY INSTITUTIONAL AND NONINSTITUTIONAL HEALTH CARE 
              PROVIDERS.

    (a) Institutional Providers.--Section 1079(j) of title 10, United 
States Code, is amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``(A)''; and
                    (B) by striking ``may be determined under joint 
                regulations'' and inserting ``shall be determined under 
                joint regulations'';
            (2) by redesignating subparagraph (B) of paragraph (2) as 
        paragraph (4), and, in such paragraph, as so redesignated, by 
        striking ``subparagraph (A),'' and inserting ``this 
        subsection,''; and
            (3) by inserting before paragraph (4), as redesignated by 
        paragraph (2), the following new paragraph (3):
    ``(3) A contract for a plan covered by this section shall include a 
clause that prohibits each provider of services under the plan from 
billing any person covered by the plan for any balance of charges for 
services in excess of the amount paid for those services under the 
joint regulations referred to in paragraph (2), except for any unpaid 
amounts of deductibles or copayments that are payable directly to the 
provider by the person.''.
    (b) Noninstitutional Providers.--Section 1079(h)(4) of such title 
is amended--
            (1) by inserting ``(A)'' after ``(4)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) The regulations shall include a restriction that prohibits an 
individual health care professional (or other noninstitutional health 
care provider) from billing a beneficiary for services for more than 
the amount that is equal to--
            ``(i) the excess of the limiting charge (as defined in 
        section 1848(g)(2) of the Social Security Act (42 U.S.C. 1395w-
        4(g)(2))) that would be applicable if the services had been 
        provided by the professional (or other provider) as an 
        individual health care professional (or other noninstitutional 
        health care provider) on a nonassignment-related basis under 
        part B of title XVIII of such Act over the amount that is 
        payable by the United States for those services under this 
        subsection, plus
            ``(ii) any unpaid amounts of deductibles or copayments that 
        are payable directly to the professional (or other provider) by 
        the beneficiary.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2001.

SEC. 714. TWO-YEAR EXTENSION OF HEALTH CARE MANAGEMENT DEMONSTRATION 
              PROGRAM.

    (a) Extension.--Subsection (d) of section 733 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted by Public Law 106-398; 114 Stat. 1654A-191) is amended by 
striking ``December 31, 2001'' and inserting ``December 31, 2003''.
    (b) Report.--Subsection (e) of that section is amended--
            (1) by striking ``Reports.--'' and inserting ``Report.--''; 
        and
            (2) by striking ``March 15, 2002'' and inserting ``March 
        15, 2004''.

SEC. 715. STUDY OF HEALTH CARE COVERAGE OF MEMBERS OF THE SELECTED 
              RESERVE.

    (a) Requirement for Study.--The Comptroller General shall carry out 
a study of the needs of members of the Selected Reserve of the Ready 
Reserve of the Armed Forces and their families for health care 
benefits.
    (b) Report.--Not later than March 1, 2002, the Comptroller General 
shall submit to Congress a report on the study under subsection (a). 
The report shall include the following matters:
            (1) An analysis of how members of the Selected Reserve 
        currently obtain coverage for health care benefits when not on 
        active duty, together with statistics on enrollments in health 
        care benefits plans, including--
                    (A) the percentage of members of the Selected 
                Reserve who are not covered by an employer health 
                benefits plan;
                    (B) the percentage of members of the Selected 
                Reserve who are not covered by an individual health 
                benefits plan; and
                    (C) the percentage of members of the Selected 
                Reserve who are not covered by any health insurance or 
                other health benefits plan.
            (2) An assessment of the disruptions in health benefits 
        coverage that a mobilization of members of the Selected Reserve 
        has caused for the members and their families.
            (3) An assessment of the cost and effectiveness of various 
        options for preventing or reducing disruptions described in 
        paragraph (2), including--
                    (A) providing health care benefits to all members 
                of the Selected Reserve and their families through 
                TRICARE, the Federal Employees Health Benefits Program, 
                or otherwise;
                    (B) revising and extending the program of 
                transitional medical and dental care that is provided 
                under section 1074b of title 10, United States Code, 
                for members of the Armed Forces upon release from 
                active duty served in support of a contingency 
                operation;
                    (C) requiring the health benefits plans of members 
                of the Selected Reserve, including individual health 
                benefits plans and group health benefits plans, to 
                permit members of the Selected Reserve to elect to 
                resume coverage under such health benefits plans upon 
                release from active duty in support of a contingency 
                operation;
                    (D) providing financial assistance for paying 
                premiums or other subscription charges for continuation 
                of coverage by private sector health insurance or other 
                health benefits plans; and
                    (E) any other options that the Comptroller General 
                determines advisable to consider.

SEC. 716. STUDY OF ADEQUACY AND QUALITY OF HEALTH CARE PROVIDED TO 
              WOMEN UNDER THE DEFENSE HEALTH PROGRAM.

    (a) Requirement for Study.--The Comptroller General shall carry out 
a study of the adequacy and quality of the health care provided to 
women under chapter 55 of title 10, United States Code.
    (b) Specific Consideration.--The study shall include an intensive 
review of the availability and quality of reproductive health care 
services.
    (c) Report.--The Comptroller General shall submit a report on the 
results of the study to Congress not later than April 1, 2002.

SEC. 717. PILOT PROGRAM FOR DEPARTMENT OF VETERANS AFFAIRS SUPPORT FOR 
              DEPARTMENT OF DEFENSE IN THE PERFORMANCE OF SEPARATION 
              PHYSICAL EXAMINATIONS.

    (a) Authority.--The Secretary of Defense and the Secretary of 
Veterans Affairs may jointly carry out a pilot program for the 
performance of the physical examinations required in connection with 
the separation of members of the uniformed services. The requirements 
of this section shall apply to a pilot program, if any, that is carried 
out under the authority of this subsection.
    (b) Performance of Physical Examinations by Department of Veterans 
Affairs.--Under the pilot program, the Secretary of Veterans Affairs 
shall perform the physical examinations of members of the uniformed 
services separating from the uniformed services who are in one or more 
geographic areas designated for the pilot program by the Secretaries.
    (c) Reimbursement.--The Secretary of Defense shall provide for 
reimbursing the Secretary of Veterans Affairs for the cost incurred by 
the Secretary of Veterans Affairs in performing, under the pilot 
program, the items of physical examination that are required by the 
Secretary concerned in connection with the separation of a member of a 
uniformed service. Reimbursements shall be paid out of funds available 
for the performance of separation physical examinations of members of 
that uniformed service in facilities of the uniformed services.
    (d) Agreement.--(1) The Secretary of Defense and the Secretary of 
Veterans Affairs shall enter into an agreement for carrying out a pilot 
program established under this section. The agreement shall specify the 
geographic area in which the pilot program is carried out and the means 
for making reimbursement payments.
    (2) The other administering Secretaries shall also enter into the 
agreement to the extent that the Secretary of Defense determines 
necessary to apply the pilot program, including the requirement for 
reimbursement, to the uniformed services not under the jurisdiction of 
the Secretary of a military department.
    (e) Consultation Requirement.--In developing and carrying out the 
pilot program, the Secretary of Defense shall consult with the other 
administering Secretaries.
    (f) Period of Program.--Any pilot program established under this 
section shall begin not later than July 1, 2002, and terminate on 
December 31, 2005.
    (g) Reports.--(1) Not later than January 31, 2004, the Secretary of 
Defense and the Secretary of Veterans Affairs shall jointly submit to 
Congress an interim report on the conduct of the pilot program.
    (2) Not later than March 1, 2005, the Secretary of Defense and the 
Secretary of Veterans Affairs shall jointly submit to Congress a final 
report on the conduct of the pilot program.
    (3) Each report under this subsection shall include the 
Secretaries' assessment, as of the date of such report, of the efficacy 
of the performance of separation physical examinations as provided for 
under the pilot program.
    (h) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given the term in section 1072(3) of title 10, United States 
        Code.
            (2) The term ``Secretary concerned'' has the meaning given 
        the term in section 101(5) of title 37, United States Code.

SEC. 718. MODIFICATION OF PROHIBITION ON REQUIREMENT OF NONAVAILABILITY 
              STATEMENT OR PREAUTHORIZATION.

    (a) Clarification of Covered Beneficiaries.--Subsection (a) of 
section 721 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted in Public Law 106-398; 114 Stat. 
1654A-184) is amended by striking ``covered beneficiary under chapter 
55 of title 10, United States Code, who is enrolled in TRICARE 
Standard,`` and inserting ``covered beneficiary under TRICARE Standard 
pursuant to chapter 55 of title 10, United States Code,''.
    (b) Repeal of Requirement for Notification Regarding Health Care 
Received From Another Source.--Subsection (b) of such section is 
repealed.
    (c) Waiver Authority.--Such section, as so amended, is further 
amended by striking subsection (c) and inserting the following:
    ``(b) Waiver Authority.--The Secretary may waive the prohibition in 
subsection (a) if--
            ``(1) the Secretary--
                    ``(A) demonstrates that significant costs would be 
                avoided by performing specific procedures at the 
                affected military medical treatment facility or 
                facilities;
                    ``(B) determines that a specific procedure must be 
                provided at the affected military medical treatment 
                facility or facilities to ensure the proficiency levels 
                of the practitioners at the facility or facilities; or
                    ``(C) determines that the lack of nonavailability 
                statement data would significantly interfere with 
                TRICARE contract administration;
            ``(2) the Secretary provides notification of the 
        Secretary's intent to grant a waiver under this subsection to 
        covered beneficiaries who receive care at the military medical 
        treatment facility or facilities that will be affected by the 
        decision to grant a waiver under this subsection;
            ``(3) the Secretary notifies the Committees on Armed 
        Services of the House of Representatives and the Senate of the 
        Secretary's intent to grant a waiver under this subsection, the 
        reason for the waiver, and the date that a nonavailability 
        statement will be required; and
            ``(4) 60 days have elapsed since the date of the 
        notification described in paragraph (3).''.
    (d) Delay of Effective Date.--Subsection (d) of such section is 
amended--
            (1) by striking ``take effect on October 1, 2001'' and 
        inserting ``be effective beginning on the date that is two 
        years after the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2002''; and
            (2) by redesignating the subsection as subsection (c).
    (e) Report.--Not later than March 1, 2002, the Secretary of Defense 
shall submit to the Committees on Armed Services of the House of 
Representatives and the Senate a report on the Secretary's plans for 
implementing section 721 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001, as amended by this section.

SEC. 719. TRANSITIONAL HEALTH CARE TO MEMBERS SEPARATED FROM ACTIVE 
              DUTY.

    (a) Permanent Authority for Involuntarily Separated Members and 
Mobilized Reserves.--Subsection (a) of section 1145 of title 10, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (2), a 
        member'' and all that follows through ``of the member),'' and 
        inserting ``paragraph (3), a member of the armed forces who is 
        separated from active duty as described in paragraph (2)'';
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) This subsection applies to the following members of the armed 
forces:
            ``(A) A member who is involuntarily separated from active 
        duty.
            ``(B) A member of a reserve component who is separated from 
        active duty to which called or ordered in support of a 
        contingency operation if the active duty is active duty for a 
        period of more than 30 days.
            ``(C) A member who is separated from active duty for which 
        the member is involuntarily retained under section 12305 of 
        this title in support of a contingency operation.
            ``(D) A member who is separated from active duty served 
        pursuant to a voluntary agreement of the member to remain on 
        active duty for a period of less than one year in support of a 
        contingency operation.''; and
            (4) in paragraph (3), as redesignated by paragraph (2), is 
        amended by striking ``involuntary'' each place it appears.
    (b) Conforming Amendments.--Such section 1145 is further amended--
            (1) in subsection (c)(1), by striking ``during the period 
        beginning on October 1, 1990, and ending on December 31, 
        2001''; and
            (2) in subsection (e), by striking the first sentence.
    (c) Repeal of Superseded Authority.--(1) Section 1074b of title 10, 
United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 55 of such 
title is amended by striking the item relating to section 1074b.
    (d) Transition Provision.--Notwithstanding the repeal of section 
1074b of title 10, United States Code, by subsection (c), the 
provisions of that section, as in effect before the date of the 
enactment of this Act, shall continue to apply to a member of the Armed 
Forces who is released from active duty in support of a contingency 
operation before that date.

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

         Subtitle A--Procurement Management and Administration

SEC. 801. MANAGEMENT OF PROCUREMENTS OF SERVICES.

    (a) Responsibility of Under Secretary of Defense for Acquisition, 
Technology, and Logistics.--Section 133(b) of title 10, United States 
Code, is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by redesignating paragraph (5) as paragraph (6); and
            (3) by inserting after paragraph (4) the following new 
        paragraph (5):
            ``(5) managing the procurements of services for the 
        Department of Defense; and''.
    (b) Requirement for Management Structure.--(1) Chapter 137 of such 
title is amended by inserting after section 2328 the following new 
section:
``Sec. 2330. Procurements of services: management structure
    ``(a) Requirement for Management Structure.--The Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall establish a 
structure for the management of procurements of services for the 
Department of Defense.
    ``(b) Delegation of Authority.--(1) The management structure shall 
provide for a designated official in each Defense Agency, military 
department, and command to exercise the responsibility for the 
management of the procurements of services for the official's Defense 
Agency, military department, or command, respectively.
    ``(2) For the exercise of the responsibility under paragraph (1), a 
designated official shall report, and be accountable, to--
            ``(A) the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics; and
            ``(B) such other officials as the Under Secretary may 
        prescribe for the management structure.
    ``(3) Paragraph (2) shall not affect the responsibility of a 
designated official for a military department who is not the Secretary 
of that military department to report, and be accountable, to the 
Secretary of the military department.
    ``(c) Contracting Responsibilities of Designated Officials.--The 
responsibilities of an official designated under subsection (b) shall 
include, with respect to the procurements of services for the Defense 
Agency, military department, or command of that official, the 
following:
            ``(1) Ensuring that the services are procured by means of 
        contracts or task orders that are in the best interests of the 
        Department of Defense and are entered into or issued and 
        managed in compliance with the applicable statutes, 
        regulations, directives, and other requirements, regardless of 
        whether the services are procured through a contract of the 
        Department of Defense or through a contract entered into by an 
        official of the United States outside the Department of 
        Defense.
            ``(2) Establishing within the Department of Defense 
        appropriate contract vehicles for use in the procurement of 
        services so as to ensure that officials of the Department of 
        Defense are accountable for the procurement of the services in 
        accordance with the requirements of paragraph (1).
            ``(3) Analyzing data collected under section 2330a of this 
        title on contracts that are entered into for the procurement of 
        services.
            ``(4) Approving, in advance, any procurement of services 
        that is to be made through the use of--
                    ``(A) a contract or task order that is not a 
                performance-based contract or task order; or
                    ``(B) a contract entered into, or a task order 
                issued, by an official of the United States outside the 
                Department of Defense.
    ``(d) Definition.--In this section, the term `performance-based', 
with respect to a contract or a task order means that the contract or 
task- order, respectively, includes the use of performance work 
statements that set forth contract requirements in clear, specific, and 
objective terms with measurable outcomes.''.
    (2) Not later than 180 days after the date of the enactment of this 
Act, the Under Secretary of Defense for Acquisition, Technology, and 
Logistics shall issue guidance for officials in the management 
structure established under section 2330 of title 10, United States 
Code (as added by paragraph (1)), regarding how to carry out their 
responsibilities under that section. The guidance shall include, at a 
minimum, the following:
            (A) Specific dollar thresholds, approval levels, and 
        criteria for advance approvals under subsection (c)(4) of such 
        section 2330.
            (B) A prohibition on the procurement of services through 
        the use of a contract entered into, or a task order issued, by 
        an official of the United States outside the Department of 
        Defense that is not a performance-based contract or task order, 
        unless an appropriate official in the management structure 
        established under such section 2330 determines in writing that 
        the use of that means for the procurement is justified on the 
        basis of exceptional circumstances as being in the best 
        interests of the Department of Defense.
    (c) Tracking of Procurements of Services.--Chapter 137 of title 10, 
United States Code, as amended by subsection (b), is further amended by 
inserting after section 2330 the following new section:
``Sec. 2330a. Procurements of services: tracking
    ``(a) Data Collection Required.--The Secretary of Defense shall 
establish a data collection system to provide management information 
with regard to each purchase of services by a military department or 
Defense Agency in excess of the simplified acquisition threshold, 
regardless of whether such a purchase is made in the form of a 
contract, task order, delivery order, military interdepartmental 
purchase request, or any other form of interagency agreement.
    ``(b) Data To Be Collected.--The data required to be collected 
under subsection (a) includes the following:
            ``(1) The services purchased.
            ``(2) The total dollar amount of the purchase.
            ``(3) The form of contracting action used to make the 
        purchase.
            ``(4) Whether the purchase was made through--
                    ``(A) a performance-based contract, performance-
                based task order, or other performance-based 
                arrangement that contains firm fixed prices for the 
                specific tasks to be performed;
                    ``(B) any other performance-based contract, 
                performance-based task order, or performance-based 
                arrangement; or
                    ``(C) any contract, task order, or other 
                arrangement that is not performance based.
            ``(5) In the case of a purchase made through an agency 
        other than the Department of Defense--
                    ``(A) the agency through which the purchase is 
                made; and
                    ``(B) the reasons for making the purchase through 
                that agency.
            ``(6) The extent of competition provided in making the 
        purchase (including the number of offerors).
            ``(7) whether the purchase was made from--
                    ``(A) a small business concern;
                    ``(B) a small business concern owned and controlled 
                by socially and economically disadvantaged individuals; 
                or
                    ``(C) a small business concern owned and controlled 
                by women.
    ``(c) Compatibility With Data Collection System for Information 
Technology Purchases.--To the maximum extent practicable, a single data 
collection system shall be used to collect data under this section and 
information under section 2225 of this title.
    ``(d) Definitions.--In this section:
            ``(1) The term `performance-based', with respect to a 
        contract, task order, or arrangement, means that the contract, 
        task order, or arrangement, respectively, includes the use of 
        performance work statements that set forth contract 
        requirements in clear, specific, and objective terms with 
        measurable outcomes.
            ``(2) The definitions set forth in section 2225(f) of this 
        title for the terms `simplified acquisition threshold', `small 
        business concern', `small business concern owned and controlled 
        by socially and economically disadvantaged individuals', and 
        `small business concern owned and controlled by women' shall 
        apply.''.
    (d) Requirement for Program Review Structure.--(1) Not later than 
180 days after the date of the enactment of this Act, the Secretary of 
Defense shall issue and implement a policy that applies to the 
procurement of services by the Department of Defense a program review 
structure that is similar to the one developed for and applied to the 
procurement of systems by the Department of Defense.
    (2) The program review structure for the procurement of services 
shall, at a minimum, include the following:
            (A) Standards for determining which procurements should be 
        subject to review by either the senior procurement executive of 
        a military department or the senior procurement executive of 
        the Department of Defense under such section, including 
        criteria based on dollar thresholds, program criticality, or 
        other appropriate measures.
            (B) Appropriate milestones at which those reviews should 
        take place.
            (C) A description of the specific matters that should be 
        reviewed.
    (e) Comptroller General Review.--Not later than 90 days after the 
date on which the Secretary issues the policy required by subsection 
(d) and the Under Secretary of Defense for Acquisition, Technology, and 
Logistics issues the guidance required by subsection (b)(2), the 
Comptroller General shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives an assessment of the 
compliance with the requirements of this section and the amendments 
made by this section.
    (f) Definitions.--In this section:
            (1) The term ``senior procurement executive'' means the 
        official designated as the senior procurement executive under 
        section 16(3) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 414(3)).
            (2) The term ``performance-based'', with respect to a 
        contract or a task order means that the contract or task order, 
        respectively, includes the use of performance work statements 
        that set forth contract requirements in clear, specific, and 
        objective terms with measurable outcomes.
    (g) Clerical Amendments.--(1) The heading for section 2331 of title 
10, United States Code, is amended to read as follows:
``Sec. 2331. Procurements of services: contracts for professional and 
              technical services''.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking the item relating to section 2331 and 
inserting the following new items:

``2330. Procurements of services: management structure.
``2330a. Procurements of services: tracking.
``2331. Procurements of services: contracts for professional and 
                            technical services.''.

SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.

    (a) Goals.--(1) It shall be an objective of the Department of 
Defense to achieve savings in expenditures for procurements of services 
through the use of--
            (A) performance-based services contracting;
            (B) competition for task orders under services contracts; 
        and
            (C) program review, spending analyses, and improved 
        management of services contracts.
    (2) In furtherance of that objective, the Department of Defense 
shall have goals to use improved management practices to achieve, over 
10 fiscal years, reductions in the total amount that would otherwise be 
expended by the Department for the procurement of services (other than 
military construction) in a fiscal year by the amount equal to 10 
percent of the total amount of the expenditures of the Department for 
fiscal year 2000 for procurement of services (other than military 
construction), as follows:
            (A) By fiscal year 2002, a three percent reduction.
            (B) By fiscal year 2003, a four percent reduction.
            (C) By fiscal year 2004, a five percent reduction.
            (D) By fiscal year 2011, a ten percent reduction.
    (b) Annual Report.--Not later than March 1, 2002, and annually 
thereafter through March 1, 2006, the Secretary of Defense shall submit 
to the congressional defense committees a report on the progress made 
toward meeting the objective and goals established in subsection (a). 
Each report shall include, at a minimum, the following information:
            (1) A summary of the steps taken or planned to be taken in 
        the fiscal year of the report to improve the management of 
        procurements of services.
            (2) A summary of the steps planned to be taken in the 
        following fiscal year to improve the management of procurements 
        of services.
            (3) An estimate of the amount that will be expended by the 
        Department of Defense for procurements of services in the 
        fiscal year of the report.
            (4) An estimate of the amount that will be expended by the 
        Department of Defense for procurements of services in the 
        following fiscal year.
            (5) An estimate of the amount of savings that, as a result 
        of improvement of the management practices used by the 
        Department of Defense, will be achieved for the procurement of 
        services by the Department in the fiscal year of the report and 
        in the following fiscal year.
    (c) Review and Report by Comptroller General.--The Comptroller 
General shall review each report submitted by the Secretary pursuant to 
subsection (b), and within 90 days after the date of the report, submit 
to Congress a report containing the Comptroller General's assessment of 
the extent to which the Department of Defense has taken steps necessary 
to achieve the objective and goals established by subsection (a). In 
each report the Comptroller General shall, at a minimum, address--
            (1) the accuracy and reliability of the estimates included 
        in the Secretary's report; and
            (2) the effectiveness of the improvements in management 
        practices that have been taken, and those that are planned to 
        be taken, in the Department of Defense to achieve savings in 
        procurements of services by the Department.

SEC. 803. COMPETITION REQUIREMENT FOR PURCHASES PURSUANT TO MULTIPLE 
              AWARD CONTRACTS.

    (a) Regulations Required.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall promulgate 
in the Department of Defense Supplement to the Federal Acquisition 
Regulation regulations requiring competition in the purchase of 
products and services by the Department of Defense pursuant to multiple 
award contracts.
    (b) Content of Regulations.--The regulations required by subsection 
(a) shall provide, at a minimum, that each individual procurement of 
products and services in excess of $50,000 that is made under a 
multiple award contract shall be made on a competitive basis unless a 
contracting officer of the Department of Defense--
            (1) waives the requirement on the basis of a determination 
        that one of the circumstances described in paragraphs (1) 
        through (4) of section 2304(c) of title 10, United States Code, 
        applies to such individual procurement; and
            (2) justifies the determination in writing.
    (c) Reporting Requirement.--The Secretary shall submit to the 
congressional defense committees each year a report on the use of the 
waiver authority provided in the regulations prescribed under 
subsection (b). The report for a year shall include, at a minimum, for 
each military department and each Defense Agency, the following:
            (1) The number of the waivers granted.
            (2) The dollar value of the procurements for which the 
        waivers were granted.
            (3) The bases on which the waivers were granted.
    (d) Definitions.--In this section:
            (1) The term ``individual procurement'' means a task order, 
        delivery order, or other purchase.
            (2) The term ``multiple award contract'' means--
                    (A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 
                2302(2)(C) of title 10, United States Code;
                    (B) a multiple award task order contract or 
                delivery order contract that is entered into under the 
                authority of sections 2304a through 2304d of title 10, 
                United States Code, or sections 303H through 303K of 
                the Federal Property and Administrative Services Act of 
                1949 (41 U.S.C. 253h through 253k); and
                    (C) any other indeterminate delivery, indeterminate 
                quantity contract that is entered into by the head of a 
                Federal agency with two or more sources pursuant to the 
                same solicitation.
            (3) The term ``competitive basis'', with respect to an 
        individual procurement of products or services under a multiple 
        award contract, means procedures that--
                    (A) require fair notice to be provided to all 
                contractors offering such products or services under 
                the multiple award contract of the intent to make that 
                procurement; and
                    (B) afford all such contractors a fair opportunity 
                to make an offer and have that offer fully and fairly 
                considered by the official making the procurement.
            (4) The term ``Defense Agency'' has the meaning given that 
        term in section 101(a)(11) of title 10, United States Code.
    (e) Applicability.--The regulations promulgated by the Secretary 
pursuant to subsection (a) shall take effect not later than 180 days 
after the date of the enactment of this Act and shall apply to all 
individual procurements that are made under multiple award contracts on 
or after the effective date, without regard to whether the multiple 
award contracts were entered into before, on, or after such effective 
date.

SEC. 804. RISK REDUCTION AT INITIATION OF MAJOR DEFENSE ACQUISITION 
              PROGRAM.

    (a) Standard for Technological Maturity.--(1) Chapter 144 of title 
10, United States Code, is amended by inserting after section 2431 the 
following new section:
``Sec. 2431a. Risk reduction at program initiation
    ``(a) Requirement for Demonstration of Critical Technologies.--Each 
critical technology that is to be used in production under a major 
defense acquisition program shall be successfully demonstrated in a 
relevant environment, as determined in writing by the Under Secretary 
of Defense for Acquisition, Technology, and Logistics.
    ``(b) Prohibition.--Neither of the following actions may be taken 
in a major defense acquisition program before the requirement of 
subsection (a) has been satisfied for the program:
            ``(1) Milestone B approval.
            ``(2) Initiation of the program without a Milestone B 
        approval.
    ``(c) Waiver.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics may waive the prohibition in subsection (b) 
with respect to a major defense acquisition program if the Milestone 
Decision Authority for the program certifies to the Under Secretary 
that exceptional circumstances justify proceeding with an action 
described in that subsection for the program before compliance with 
subsection (a).
    ``(d) Annual Report on Waivers.--(1) The Secretary of Defense shall 
submit to the Committees on Armed Services and on Appropriations of the 
Senate and the House of Representatives each year the justification for 
any waiver granted with respect to a major defense acquisition program 
under subsection (c) during the fiscal year covered by the report.
    ``(2) The report for a fiscal year shall be submitted with the 
submission of the weapons development and procurement schedules under 
section 2431 of this title and shall cover the fiscal year preceding 
the fiscal year in which submitted.
    ``(e) Definitions.--In this section:
            ``(1) The term `Milestone B approval' means approval to 
        begin integrated system development and demonstration.
            ``(2) The term `Milestone Decision Authority' means the 
        official of the Department of Defense who is designated in 
        accordance with criteria prescribed by the Secretary of Defense 
        to approve entry of a major defense acquisition program into 
        the next phase of the acquisition process.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2431 the 
following:

``2431a. Risk reduction at program initiation.''.
    (b) Effective Date and Applicability.--(1) Section 2431a of title 
10, United States Code (as added by subsection (a)), shall take effect 
on the date of the enactment of this Act and shall apply to--
            (A) any major defense acquisition program that is initiated 
        on or after that date without a Milestone B approval having 
        been issued for the program; and
            (B) any major defense acquisition program that is initiated 
        more than 6 months after that date with a Milestone B approval 
        having been issued for the program before the initiation of the 
        program.
    (2) In paragraph (1):
            (A) The term ``major defense acquisition program'' has the 
        meaning given the term in section 2430 of title 10, United 
        States Code.
            (B) The term ``Milestone B approval'' has the meaning given 
        the term under section 2431a(d) of title 10, United States Code 
        (as added by subsection (a)).

SEC. 805. FOLLOW-ON PRODUCTION CONTRACTS FOR PRODUCTS DEVELOPED 
              PURSUANT TO PROTOTYPE PROJECTS.

    Section 845 of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Follow-On Production Contracts.--(1) A transaction entered 
into under this section for a prototype project that satisfies the 
conditions set forth in subsection (d)(1)(B)(i) may provide for the 
award of a follow-on production contract to the participants in the 
transaction for a specific number of units at specific target prices. 
The number of units specified in the transaction shall be determined on 
the basis of a balancing of the level of the investment made in the 
project by the participants other than the Federal Government with the 
interest of the Federal Government in having competition among sources 
in the acquisition of the product or products prototyped under the 
project.
    ``(2) A follow-on production contract provided for in a transaction 
under paragraph (1) may be awarded to the participants in the 
transaction without the use of competitive procedures, notwithstanding 
the requirements of section 2304 of title 10, United States Code, if--
            ``(A) competitive procedures were used for the selection of 
        parties for participation in the transaction;
            ``(B) the participants in the transaction successfully 
        completed the prototype project provided for in the 
        transaction;
            ``(C) the number of units provided for in the follow-on 
        production contract does not exceed the number of units 
        specified in the transaction for such a follow-on production 
        contract; and
            ``(D) the prices established in the follow-on production 
        contract do not exceed the target prices specified in the 
        transaction for such a follow-on production contract.''.

         Subtitle B--Defense Acquisition and Support Workforce

SEC. 811. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE 
              ACQUISITION 2005 TASK FORCE.

    (a) Requirement for Report.--Not later than March 1, 2002, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report on the extent 
of the implementation of the recommendations set forth in the final 
report of the Department of Defense Acquisition 2005 Task Force, 
entitled ``Shaping the Civilian Acquisition Workforce of the Future''.
    (b) Content of Report.--The report shall include the following:
            (1) For each recommendation in the final report that is 
        being implemented or that the Secretary plans to implement--
                    (A) a summary of all actions that have been taken 
                to implement the recommendation; and
                    (B) a schedule, with specific milestones, for 
                completing the implementation of the recommendation.
            (2) For each recommendation in the final report that the 
        Secretary does not plan to implement--
                    (A) the reasons for the decision not to implement 
                the recommendation; and
                    (B) a summary of any alternative actions the 
                Secretary plans to take to address the purposes 
                underlying the recommendation.
            (3) A summary of any additional actions the Secretary plans 
        to take to address concerns raised in the final report about 
        the size and structure of the acquisition workforce of the 
        Department of Defense.
    (c) Comptroller General Review.--Not later than 60 days after the 
date on which the Secretary submits the report required by subsection 
(a), the Comptroller General shall--
            (1) review the report; and
            (2) submit to the committees referred to in subsection (a) 
        the Comptroller General's assessment of the extent to which the 
        report--
                    (A) complies with the requirements of this section; 
                and
                    (B) addresses the concerns raised in the final 
                report about the size and structure of the acquisition 
                workforce of the Department of Defense.

SEC. 812. MORATORIUM ON REDUCTION OF THE DEFENSE ACQUISITION AND 
              SUPPORT WORKFORCE.

    (a) Prohibition.--Notwithstanding any other provision of law, the 
defense acquisition and support workforce may not be reduced, during 
fiscal years 2002, 2003, and 2004, below the level of that workforce as 
of September 30, 2001, determined on the basis of full-time equivalent 
positions.
    (b) Waiver Authority.--The Secretary of Defense may waive the 
prohibition in subsection (a) and reduce the level of the defense 
acquisition and support workforce upon submitting to Congress the 
Secretary's certification that the defense acquisition and support 
workforce, at the level to which reduced, will be able efficiently and 
effectively to perform the workloads that are required of that 
workforce consistent with the cost-effective management of the defense 
acquisition system to obtain best value equipment and with ensuring 
military readiness.
    (c) Defense Acquisition and Support Workforce Defined.--In this 
section, the term ``defense acquisition and support workforce'' means 
Armed Forces and civilian personnel who are assigned to, or are 
employed in, an organization of the Department of Defense that is--
            (1) an acquisition organization specified in Department of 
        Defense Instruction 5000.58, dated January 14, 1992; or
            (2) an organization not so specified that has acquisition 
        as its predominant mission, as determined by the Secretary of 
        Defense.

SEC. 813. REVISION OF ACQUISITION WORKFORCE QUALIFICATION REQUIREMENTS.

    (a) Special Requirements for Members of a Contingency Contracting 
Force.--(1) Subchapter II of chapter 87 of title 10, United States 
Code, is amended by inserting after section 1724 the following new 
section:
``Sec. 1724a. Contingency contracting force: qualification requirements
    ``(a) Contingency Contracting Force.--The Secretary of Defense may 
identify as a contingency contracting force the acquisition positions 
described in subsections (a) and (b) of section 1724 of this title that 
involve duties requiring the personnel in those positions to deploy to 
perform contracting functions in support of a contingency operation or 
other Department of Defense operation.
    ``(b) Qualification Requirements.--The Secretary of Defense shall 
prescribe the qualification requirements for a person appointed to a 
position in any contingency contracting force identified under 
subsection (a). The requirements shall include requirements that the 
person--
            ``(1) either--
                    ``(A) have completed the credits of study as 
                described in section 1724(a)(3)(B) of this title;
                    ``(B) have passed an examination considered by the 
                Secretary of Defense to demonstrate that the person has 
                skills, knowledge, or abilities comparable to that of a 
                person who has completed the credits of study described 
                in such section; or
                    ``(C) through a combination of having completed 
                some of the credits of study described in such section 
                and having passed an examination, have demonstrated 
                that the person has skills, knowledge, or abilities 
                comparable to that of a person who has completed all of 
                the credits of study described in such section; and
            ``(2) have satisfied such additional requirements for 
        education and experience as the Secretary may prescribe.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 1724 the 
following new item:

``1724a. Contingency contracting force: qualification requirements.''.
    (b) Exceptions to Generally Applicable Qualification 
Requirements.--Subsection (c) of such section is amended to read as 
follows:
    ``(c) Exceptions.--(1) The requirements imposed under subsection 
(a) or (b) of this section shall not apply to a person for either of 
the following purposes:
            ``(A) In the case of an employee, to qualify to serve in 
        the position in which the employee was serving on October 1, 
        1993, or in any other position in the same or lower grade and 
        involving the same or lower level of responsibilities as the 
        position in which the employee was serving on such date.
            ``(B) To qualify to serve in an acquisition position in any 
        contingency contracting force identified under section 1724a of 
        this title.
    ``(2) Subject to paragraph (3), the requirements imposed under 
subsection (a) or (b) shall not apply to a person who, before October 
1, 2000, served--
            ``(A) as a contracting officer in an executive agency with 
        authority to award or administer contracts in excess of the 
        simplified acquisition threshold (referred to in section 
        2304(g) of this title); or
            ``(B) in a position in an executive agency either as an 
        employee in the GS-1102 occupational series or as a member of 
        the armed forces in a similar occupational specialty.
    ``(3) For the exception in subparagraph (A) or (B) of paragraph (2) 
to apply to an employee with respect to the requirements imposed under 
subsection (a) or (b), the employee must--
            ``(A) before October 1, 2000--
                    ``(i) have received a baccalaureate degree as 
                described in subparagraph (A) of subsection (a)(3);
                    ``(ii) have completed credits of study as described 
                in subparagraph (B) of subsection (a)(3);
                    ``(iii) have passed an examination considered by 
                the Secretary of Defense to demonstrate skills, 
                knowledge, or abilities comparable to that of a person 
                who has completed credits of study as described in 
                subparagraph (B) of subsection (a)(3); or
                    ``(iv) have been granted a waiver of the 
                applicability of the requirements imposed under 
                subsection (a) or (b), as the case may be; or
            ``(B) on October 1, 1991, had at least 10 years of 
        experience in one or more acquisition positions in the 
        Department of Defense, comparable positions in other government 
        agencies or the private sector, or similar positions in which 
        an individual obtains experience directly relevant to the field 
        of contracting.''.
    (c) Clarification of Applicability of Waiver Authority to Members 
of the Armed Forces.--Subsection (d) of such section is amended by 
striking ``employee or member of'' in the first sentence and inserting 
``employee of, or a member of an armed force in,''.
    (d) Office of Personnel Management Approval of Generally Applicable 
Discretionary Requirements.--Section 1725 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by striking ``section 1723 or under 
        section 1724(a)(4) of this title'' in the first sentence and 
        inserting ``section 1723, 1724(a)(4), or 1724a(b)(2)''; and
            (2) in subsection (b), by striking ``subsection (a)(3) or 
        (b) of section 1724 of this title'' in the first sentence and 
        inserting ``subsection (a)(3), (b), or (c)(3)(A)(iii) of 
        section 1724 of this title or under subparagraph (B) or (C) of 
        section 1724a(b)(1) of this title''.
    (e) Technical Corrections.--Sections 1724(a)(3)(B) and 1732(c)(2) 
of such title are amended by striking ``business finance'' and 
inserting ``business, finance''.

                  Subtitle C--Use of Preferred Sources

SEC. 821. APPLICABILITY OF COMPETITION REQUIREMENTS TO PURCHASES FROM A 
              REQUIRED SOURCE.

    (a) Conditions for Competition.--(1) Chapter 141 of title 10, 
United States Code, is amended by adding at the end the following:
``Sec. 2410n. Products of Federal Prison Industries: procedural 
              requirements
    ``(a) Market Research Before Purchase.--Before purchasing a product 
listed in the latest edition of the Federal Prison Industries catalog 
under section 4124(d) of title 18, the Secretary of Defense shall 
conduct market research to determine whether the Federal Prison 
Industries product is comparable in price, quality, and time of 
delivery to products available from the private sector.
    ``(b) Limited Competition Requirement.--If the Secretary determines 
that a Federal Prison Industries product is not comparable in price, 
quality, and time of delivery to products available from the private 
sector, the Secretary shall use competitive procedures for the 
procurement of the product. In conducting such a competition, the 
Secretary shall consider a timely offer from Federal Prison Industries 
for award in accordance with the specifications and evaluation factors 
specified in the solicitation.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``2410n. Products of Federal Prison Industries: procedural 
                            requirements.''.
    (b) Applicability.--Section 2410n of title 10, United States Code 
(as added by subsection (a)), shall apply to purchases initiated on or 
after October 1, 2001.

SEC. 822. CONSOLIDATION OF CONTRACT REQUIREMENTS.

    (a) Amendment to Title 10.--(1) Chapter 141 of title 10, United 
States Code, is amended by inserting after section 2381 the following 
new section:
``Sec. 2382. Consolidation of contract requirements: policy and 
              restrictions
    ``(a) Policy.--The Secretary of Defense shall require the Secretary 
of each military department, the head of each Defense Agency, and the 
head of each Department of Defense Field Activity to ensure that the 
decisions made by that official regarding consolidation of contract 
requirements of the department, agency, or activity as the case may be, 
are made with a view to providing small business concerns with 
appropriate opportunities to participate in Department of Defense 
procurements as prime contractors and appropriate opportunities to 
participate in such procurements as subcontractors.
    ``(b) Limitation on Use of Acquisition Strategies Involving 
Consolidation.--(1) An official of a military department, Defense 
Agency, or Department of Defense Field Activity may not execute an 
acquisition strategy that includes a consolidation of contract 
requirements of the military department, agency, or activity with a 
total value in excess of $5,000,000, unless the senior procurement 
executive concerned first--
            ``(A) conducts market research;
            ``(B) identifies any alternative contracting approaches 
        that would involve a lesser degree of consolidation of contract 
        requirements; and
            ``(C) determines that the consolidation is necessary and 
        justified.
    ``(2) A senior procurement executive may determine that an 
acquisition strategy involving a consolidation of contract requirements 
is necessary and justified for the purposes of paragraph (1) if the 
benefits of the acquisition strategy substantially exceed the benefits 
of each of the possible alternative contracting approaches identified 
under subparagraph (B) of that paragraph. However, savings in 
administrative or personnel costs alone do not constitute, for such 
purposes, a sufficient justification for a consolidation of contract 
requirements in a procurement unless the total amount of the cost 
savings is expected to be substantial in relation to the total cost of 
the procurement.
    ``(3) Benefits considered for the purposes of paragraphs (1) and 
(2) may include cost and, regardless of whether quantifiable in dollar 
amounts--
            ``(A) quality;
            ``(B) acquisition cycle;
            ``(C) terms and conditions; and
            ``(D) any other benefit.
    ``(c) Definitions.--In this section:
            ``(1) The terms `consolidation of contract requirements' 
        and `consolidation', with respect to contract requirements of a 
        military department, Defense Agency, or Department of Defense 
        Field Activity, mean a use of a solicitation to obtain offers 
        for a single contract or a multiple award contract to satisfy 
        two or more requirements of that department, agency, or 
        activity for goods or services that have previously been 
        provided to, or performed for, that department, agency, or 
        activity under two or more separate contracts smaller in cost 
        than the total cost of the contract for which the offers are 
        solicited.
            ``(2) The term ``multiple award contract'' means--
                    ``(A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 
                2302(2)(C) of this title;
                    ``(B) a multiple award task order contract or 
                delivery order contract that is entered into under the 
                authority of sections 2304a through 2304d of this title 
                or sections 303H through 303K of the Federal Property 
                and Administrative Services Act of 1949 (41 U.S.C. 253h 
                through 253k); and
                    ``(C) any other indeterminate delivery, 
                indeterminate quantity contract that is entered into by 
                the head of a Federal agency with two or more sources 
                pursuant to the same solicitation.
            ``(3) The term `senior procurement executive concerned' 
        means--
                    ``(A) with respect to a military department, the 
                official designated under section 16(3) of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 414(3)) as 
                the senior procurement executive for the military 
                department; or
                    ``(B) with respect to a Defense Agency or a 
                Department of Defense Field Activity, the official so 
                designated for the Department of Defense.
            ``(4) The term `small business concern' means a business 
        concern that is determined by the Administrator of the Small 
        Business Administration to be a small-business concern by 
        application of the standards prescribed under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2381 the 
following new item:

``2382. Consolidation of contract requirements: policy and 
                            restrictions.''.
    (b) Data Review.--(1) The Secretary of Defense shall revise the 
data collection systems of the Department of Defense to ensure that 
such systems are capable of identifying each procurement that involves 
a consolidation of contract requirements within the department with a 
total value in excess of $5,000,000.
    (2) The Secretary shall ensure that appropriate officials of the 
Department of Defense periodically review the information collected 
pursuant to paragraph (1) in cooperation with the Small Business 
Administration--
            (A) to determine the extent of the consolidation of 
        contract requirements in the Department of Defense; and
            (B) to assess the impact of the consolidation of contract 
        requirements on the availability of opportunities for small 
        business concerns to participate in Department of Defense 
        procurements, both as prime contractors and as subcontractors.
    (3) In this subsection:
            (A) The term ``bundling of contract requirements'' has the 
        meaning given that term in section 3(o)(2) of the Small 
        Business Act (15 U.S.C. 632(o)(2)).
            (B) The term ``consolidation of contract requirements'' has 
        the meaning given that term in section 2382(c)(1) of title 10, 
        United States Code, as added by subsection (a).
    (c) Evaluation of Bundling Effects.--Section 15(h)(2) of the Small 
Business Act (15 U.S.C. 644(h)(2)) is amended--
            (1) in subparagraph (C), by inserting ``, and whether 
        contract bundling played a role in the failure,'' after 
        ``agency goals''; and
            (2) by adding at the end the following:
            ``(G) The number and dollar value of consolidations of 
        contract requirements with a total value in excess of 
        $5,000,000, including the number of such consolidations that 
        were awarded to small business concerns as prime 
        contractors.''.
    (d) Reporting Requirement.--Section 15(p) of the Small Business Act 
(15 U.S.C. 644(p)) is amended to read as follows:
    ``(p) Reporting Requirement.--
            ``(1) In general.--The Administrator shall conduct a study 
        examining the best means to determine the accuracy of the 
        market research required under subsection (e)(2) for each 
        bundled contract, to determine if the anticipated benefits were 
        realized, or if they were not realized, the reasons there for.
            ``(2) Provision of information.--A Federal agency shall 
        provide to the appropriate procurement center representative a 
        copy of market research required under subsection (e)(2) for 
        consolidations of contract requirements with a total value in 
        excess of $5,000,000, upon request.
            ``(3) Report.--Not later than 270 days after the date of 
        enactment of the National Defense Authorization Act for Fiscal 
        Year 2002, the Administrator shall submit a report to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives on the results of the study conducted under 
        this subsection.''.

SEC. 823. CODIFICATION AND CONTINUATION OF MENTOR-PROTEGE PROGRAM AS 
              PERMANENT PROGRAM.

    (a) In General.--(1) Chapter 141 of title 10, United States Code, 
is amended by inserting after section 2402 the following new section:
``Sec. 2403. Mentor-Protege Program
    ``(a) Establishment of Program.--The Secretary of Defense shall 
carry out a program known as the `Mentor-Protege Program'.
    ``(b) Purpose.--The purpose of the program is to provide incentives 
for major Department of Defense contractors to furnish eligible small 
business concerns (as defined in subsection (l)(2)) with assistance 
designed to enhance the capabilities of eligible small business 
concerns to perform as subcontractors and suppliers under Department of 
Defense contracts and other contracts and subcontracts in order to 
increase the participation of such business concerns as subcontractors 
and suppliers under Department of Defense contracts, other Federal 
Government contracts, and commercial contracts.
    ``(c) Program Participants.--(1) A business concern meeting the 
eligibility requirements set out in subsection (d) may enter into 
agreements under subsection (e) and furnish assistance to eligible 
small business concerns upon making application to the Secretary of 
Defense and being approved for participation in the program by the 
Secretary. A business concern participating in the program pursuant to 
such an approval shall be known, for the purposes of the program, as a 
`mentor firm'.
    ``(2) An eligible small business concern may obtain assistance from 
a mentor firm upon entering into an agreement with the mentor firm as 
provided in subsection (e). An eligible small business concern may not 
be a party to more than one agreement to receive such assistance at any 
time. An eligible small business concern receiving such assistance 
shall be known, for the purposes of the program, as a `protege firm'.
    ``(3) In entering into an agreement pursuant to subsection (e), a 
mentor firm may rely in good faith on a written representation of a 
business concern that such business concern is a small business concern 
described in subsection (l)(2)(A). The Administrator of the Small 
Business Administration shall determine the status of such business 
concern as such a small business concern in the event of a protest 
regarding the status of the business concern. If at any time the 
business concern is determined by the Administrator not to be such a 
small business concern, assistance furnished to the business concern by 
the mentor firm after the date of the determination may not be 
considered assistance furnished under the program.
    ``(d) Mentor Firm Eligibility.--Subject to subsection (c)(1), a 
mentor firm eligible for award of Federal contracts may enter into an 
agreement with one or more protege firms under subsection (e) and 
provide assistance under the program pursuant to that agreement if--
            ``(1) during the fiscal year preceding the fiscal year in 
        which the mentor firm enters into the agreement, the total 
        amount of the Department of Defense contracts awarded such 
        mentor firm and the subcontracts awarded such mentor firm under 
        Department of Defense contracts was equal to or greater than 
        $100,000,000; or
            ``(2) the mentor firm demonstrates the capability to assist 
        in the development of protege firms, and is approved by the 
        Secretary of Defense pursuant to criteria specified in the 
        regulations prescribed pursuant to subsection (k).
    ``(e) Mentor-Protege Agreement.--Before providing assistance to a 
protege firm under the program, a mentor firm shall enter into a 
mentor-protege agreement with the protege firm regarding the assistance 
to be provided by the mentor firm. The agreement shall include the 
following:
            ``(1) A developmental program for the protege firm, in such 
        detail as may be reasonable, including--
                    ``(A) factors to assess the protege firm's 
                developmental progress under the program; and
                    ``(B) the anticipated number and type of 
                subcontracts to be awarded the protege firm.
            ``(2) A program participation term for any period of not 
        more than three years, except that the term may be a period of 
        up to five years if the Secretary of Defense determines in 
        writing that unusual circumstances justify a program 
        participation term in excess of three years.
            ``(3) Procedures for the protege firm to terminate the 
        agreement voluntarily and for the mentor firm to terminate the 
        agreement for cause.
    ``(f) Forms of Assistance.--A mentor firm may provide a protege 
firm the following:
            ``(1) Assistance, by using mentor firm personnel, in--
                    ``(A) general business management, including 
                organizational management, financial management, and 
                personnel management, marketing, business development, 
                and overall business planning;
                    ``(B) engineering and technical matters such as 
                production, inventory control, and quality assurance; 
                and
                    ``(C) any other assistance designed to develop the 
                capabilities of the protege firm under the 
                developmental program referred to in subsection (e).
            ``(2) Award of subcontracts on a noncompetitive basis to 
        the protege firm under the Department of Defense or other 
        contracts.
            ``(3) Payment of progress payments for performance of the 
        protege firm under such a subcontract in amounts as provided 
        for in the subcontract, but in no event may any such progress 
        payment exceed 100 percent of the costs incurred by the protege 
        firm for the performance.
            ``(4) Advance payments under such subcontracts.
            ``(5) Loans.
            ``(6) Cash in exchange for an ownership interest in the 
        protege firm, not to exceed 10 percent of the total ownership 
        interest.
            ``(7) Assistance obtained by the mentor firm for the 
        protege firm from one or more of the following:
                    ``(A) Small business development centers 
                established pursuant to section 21 of the Small 
                Business Act (15 U.S.C. 648).
                    ``(B) Entities providing procurement technical 
                assistance pursuant to chapter 142 of this title.
                    ``(C) A historically Black college or university or 
                a minority institution of higher education.
    ``(g) Incentives for Mentor Firms.--(1) The Secretary of Defense 
may provide to a mentor firm reimbursement for the total amount of any 
progress payment or advance payment made under the program by the 
mentor firm to a protege firm in connection with a Department of 
Defense contract awarded the mentor firm.
    ``(2)(A) The Secretary of Defense may provide to a mentor firm 
reimbursement for the costs of the assistance furnished to a protege 
firm pursuant to paragraphs (1) and (7) of subsection (f) as provided 
for in a line item in a Department of Defense contract under which the 
mentor firm is furnishing products or services to the Department, 
subject to a maximum amount of reimbursement specified in such 
contract. The preceding sentence does not apply in a case in which the 
Secretary of Defense determines in writing that unusual circumstances 
justify reimbursement using a separate contract.
    ``(B) The determinations made in annual performance reviews of a 
mentor firm's mentor-protege agreement under subsection (j)(2) shall be 
a major factor in the determinations of amounts of reimbursement, if 
any, that the mentor firm is eligible to receive in the remaining years 
of the program participation term under the agreement.
    ``(C) The total amount reimbursed under this paragraph to a mentor 
firm for costs of assistance furnished in a fiscal year to a protege 
firm may not exceed $1,000,000, except in a case in which the Secretary 
of Defense determines in writing that unusual circumstances justify a 
reimbursement of a higher amount.
    ``(3)(A) Costs incurred by a mentor firm in providing assistance to 
a protege firm that are not reimbursed pursuant to paragraph (2) shall 
be recognized as credit in lieu of subcontract awards for purposes of 
determining whether the mentor firm attains a subcontracting 
participation goal applicable to such mentor firm under a Department of 
Defense contract, under a contract with another executive agency, or 
under a divisional or company-wide subcontracting plan negotiated with 
the Department of Defense or another executive agency.
    ``(B) The amount of the credit given a mentor firm for any such 
unreimbursed costs shall be equal to--
            ``(i) four times the total amount of such costs 
        attributable to assistance provided by entities described in 
        subsection (f)(7);
            ``(ii) three times the total amount of such costs 
        attributable to assistance furnished by the mentor firm's 
        employees; and
            ``(iii) two times the total amount of any other such costs.
    ``(C) Under regulations prescribed pursuant to subsection (k), the 
Secretary of Defense shall adjust the amount of credit given a mentor 
firm pursuant to subparagraphs (A) and (B) if the Secretary determines 
that the firm's performance regarding the award of subcontracts to 
eligible small business concerns has declined without justifiable 
cause.
    ``(4) A mentor firm shall receive credit toward the attainment of a 
subcontracting participation goal applicable to such mentor firm for 
each subcontract for a product or service awarded under such contract 
by a mentor firm to a business concern that, except for its size, would 
be a small business concern owned and controlled by socially and 
economically disadvantaged individuals, but only if--
            ``(A) the size of such business concern is not more than 
        two times the maximum size specified by the Administrator of 
        the Small Business Administration for purposes of determining 
        whether a business concern furnishing such product or service 
        is a small business concern; and
            ``(B) the business concern formerly had a mentor-protege 
        agreement with such mentor firm that was not terminated for 
        cause.
    ``(h) Relationship to Small Business Act.--(1) For purposes of the 
Small Business Act, no determination of affiliation or control (either 
direct or indirect) may be found between a protege firm and its mentor 
firm on the basis that the mentor firm has agreed to furnish (or has 
furnished) to its protege firm pursuant to a mentor-protege agreement 
any form of developmental assistance described in subsection (f).
    ``(2) Notwithstanding section 8 of the Small Business Act (15 
U.S.C. 637), the Small Business Administration may not determine an 
eligible small business concern to be ineligible to receive any 
assistance authorized under the Small Business Act on the basis that 
such business concern has participated in the Mentor-Protege Program or 
has received assistance pursuant to any developmental assistance 
agreement authorized under such program.
    ``(3) The Small Business Administration may not require a firm that 
is entering into, or has entered into, an agreement under subsection 
(e) as a protege firm to submit the agreement, or any other document 
required by the Secretary of Defense in the administration of the 
Mentor-Protege Program, to the Small Business Administration for 
review, approval, or any other purpose.
    ``(i) Participation in Mentor-Protege Program Not To Be a Condition 
for Award of a Contract or Subcontract.--A mentor firm may not require 
a business concern to enter into an agreement with the mentor firm 
pursuant to subsection (e) as a condition for being awarded a contract 
by the mentor firm, including a subcontract under a contract awarded to 
the mentor firm.
    ``(j) Reports and Reviews.--(1) The mentor firm and protege firm 
under a mentor-protege agreement shall submit to the Secretary of 
Defense an annual report on the progress made by the protege firm in 
employment, revenues, and participation in Department of Defense 
contracts during the fiscal year covered by the report. The requirement 
for submission of an annual report applies with respect to each fiscal 
year covered by the program participation term under the agreement and 
each of the two fiscal years following the expiration of the program 
participation term. The Secretary shall prescribe the timing and form 
of the annual report.
    ``(2)(A) The Secretary shall conduct an annual performance review 
of each mentor-protege agreement that provides for reimbursement of 
costs. The Secretary shall determine on the basis of the review 
whether--
            ``(i) all costs reimbursed to the mentor firm under the 
        agreement were reasonably incurred to furnish assistance to the 
        protege firm in accordance with the requirements of this 
        section and applicable regulations; and
            ``(ii) the mentor firm and protege firm accurately reported 
        progress made by the protege firm in employment, revenues, and 
        participation in Department of Defense contracts during the 
        program participation term covered by the mentor-protege 
        agreement and the two fiscal years following the expiration of 
        the program participation term.
    ``(B) The Secretary shall act through the Commander of the Defense 
Contract Management Command in carrying out the reviews and making the 
determinations under subparagraph (A).
    ``(k) Regulations and Policies.--(1) The Secretary of Defense shall 
prescribe regulations to carry out the Mentor-Protege Program. The 
regulations shall include the following:
            ``(A) The requirements set forth in section 8(d) of the 
        Small Business Act (15 U.S.C. 673(d)).
            ``(B) Procedures by which mentor firms may terminate 
        participation in the program.
    ``(2) The Department of Defense policy regarding the Mentor-Protege 
Program shall be published and maintained as an appendix to the 
Department of Defense Supplement to the Federal Acquisition Regulation.
    ``(l) Definitions.--In this section:
            ``(1) The term `small business concern' means a business 
        concern that meets the requirements of section 3(a) of the 
        Small Business Act (15 U.S.C. 632(a)) and the regulations 
        promulgated pursuant thereto.
            ``(2) The term `eligible small business concern' is a small 
        business concern that--
            ``(A) is either--
                    ``(i) a disadvantaged small business concern; or
                    ``(ii) a small business concern owned and 
                controlled by women; and
            ``(B) is eligible for the award of Federal contracts.
            ``(3) The term `disadvantaged small business concern' 
        means--
                    ``(A) a small business concern owned and controlled 
                by socially and economically disadvantaged individuals, 
                as defined in section 8(d)(3)(C) of the Small Business 
                Act (15 U.S.C. 637(d)(3)(C));
                    ``(B) a business entity owned and controlled by an 
                Indian tribe as defined by section 8(a)(13) of the 
                Small Business Act (15 U.S.C. 637(a)(13));
                    ``(C) a business entity owned and controlled by a 
                Native Hawaiian Organization as defined by section 
                8(a)(15) of the Small Business Act (15 U.S.C. 
                637(a)(15)); or
                    ``(D) a qualified organization employing the 
                severely disabled.
            ``(4) The term `small business concern owned and controlled 
        by women' has the meaning given such term in section 8(d)(3)(D) 
        of the Small Business Act (15 U.S.C. 637(d)(3)(D)).
            ``(5) The term `historically Black college and university' 
        means any of the historically Black colleges and universities 
        referred to in section 2323 of this title.
            ``(6) The term `minority institution of higher education' 
        means an institution of higher education with a student body 
        that reflects the composition specified in paragraphs (3), (4), 
        and (5) of section 312(b) of the Higher Education Act of 1965 
        (20 U.S.C. 1058(b)), as in effect on September 30, 1992.
            ``(7) The term `subcontracting participation goal', with 
        respect to a Department of Defense contract, means a goal for 
        the extent of the participation by eligible small business 
        concerns in the subcontracts awarded under such contract, as 
        established pursuant to section 2323 of this title and section 
        8(d) of the Small Business Act (15 U.S.C. 637(d)).
            ``(8) The term `qualified organization employing the 
        severely disabled' means a business entity operated on a for-
        profit or nonprofit basis that--
                    ``(A) uses rehabilitative engineering to provide 
                employment opportunities for severely disabled 
                individuals and integrates severely disabled 
                individuals into its workforce;
                    ``(B) employs severely disabled individuals at a 
                rate that averages not less than 20 percent of its 
                total workforce;
                    ``(C) employs each severely disabled individual in 
                its workforce generally on the basis of 40 hours per 
                week; and
                    ``(D) pays not less than the minimum wage 
                prescribed pursuant to section 6 of the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 206) to those 
                employees who are severely disabled individuals.
            ``(9) The term `severely disabled individual' means an 
        individual who has a physical or mental disability which 
        constitutes a substantial handicap to employment and which, in 
        accordance with criteria prescribed by the Committee for 
        Purchase From People Who Are Blind or Severely Disabled 
        established by the first section of the Javits-Wagner-O'Day Act 
        (41 U.S.C. 46), is of such a nature that the individual is 
        otherwise prevented from engaging in normal competitive 
        employment.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2402 the 
following new item:

``2403. Mentor-Protege Program.''.
    (b) Repeal of Superseded Law.--Section 831 of the National Defense 
Authorization Act for Fiscal Year 1991 (10 U.S.C. 2302 note) is 
repealed.
    (c) Continuation of Temporary Reporting Requirement.--(1) Not later 
than six months after the end of each of fiscal years 2001 through 
2004, the Secretary of Defense shall submit to Congress an annual 
report on the Mentor-Protege Program for that fiscal year.
    (2) The annual report for a fiscal year shall include, at a 
minimum, the following:
            (A) The number of mentor-protege agreements that were 
        entered into during the fiscal year.
            (B) The number of mentor-protege agreements that were in 
        effect during the fiscal year.
            (C) The total amount reimbursed during the fiscal year to 
        mentor firms pursuant to section 2403(g) of title 10, United 
        States Code (as added by subsection (a)), or section 831(g) of 
        the National Defense Authorization Act for fiscal year 1991 (as 
        in effect on the day before the date of the enactment of this 
        Act).
            (D) Each mentor-protege agreement, if any, that was 
        approved during the fiscal year in accordance with section 
        2403(e)(2) of title 10, United States Code (as added by 
        subsection (a)), or section 831(e)(2) of the National Defense 
        Authorization Act for Fiscal Year 1991 (as in effect on the day 
        before the date of the enactment of this Act) to provide a 
        program participation term in excess of three years, together 
        with the justification for the approval.
            (E) Each reimbursement of a mentor firm in excess of the 
        limitation in subsection (g)(2)(C) of section 2403 of title 10, 
        United States Code (as added by subsection (a)), or subsection 
        (g)(2)(C) of section 831 of the National Defense Authorization 
        Act for Fiscal Year 1991 (as in effect on the day before the 
        date of the enactment of this Act) that was made during the 
        fiscal year pursuant to an approval granted in accordance with 
        that subsection, together with the justification for the 
        approval.
            (F) Trends in the progress made in employment, revenues, 
        and participation in Department of Defense contracts by the 
        protege firms participating in the program during the fiscal 
        year and the protege firms that completed or otherwise 
        terminated participation in the program during the preceding 
        two fiscal years.
    (d) Continuation of Requirement for GAO Study and Report.--Nothing 
in this section shall be construed as modifying the requirements of 
section 811(d)(3) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 709).
    (e) Savings Provisions.--(1) All orders, determinations, rules, 
regulations, contracts, privileges, and other administrative actions 
that--
            (A) have been issued, made, granted, or allowed to become 
        effective under the pilot Mentor-Protege Program under section 
        831 of the National Defense Authorization Act for Fiscal Year 
        1991, as in effect on the day before the date of the enactment 
        of this Act, including any such action taken by a court of 
        competent jurisdiction, and
            (B) are in effect at the end of such day, or were final 
        before the date of the enactment of this Act and are to become 
        effective on or after that date,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the Secretary of Defense or a court of competent jurisdiction or by 
operation of law.
    (2) This section and the amendments made by this section shall not 
affect any proceedings, including notices of proposed rulemaking, that 
are pending before the Department of Defense as of the date of the 
enactment of this Act, with respect to the administration of the pilot 
Mentor-Protege Program under section 831 of the National Defense 
Authorization Act for Fiscal Year 1991, as in effect on the day before 
that date, but such proceedings and applications shall be continued. 
Orders shall be issued in such proceedings, appeals shall be taken 
therefrom, and payments shall be made pursuant to such orders, as if 
this section had not been enacted, and orders issued in any such 
proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this section 
shall be deemed to prohibit the discontinuance or modification of any 
such proceeding under the same terms and conditions and to the same 
extent that such proceeding could have been discontinued or modified if 
this section had not been enacted.
    (3) The amendment made by subsection (a)(1), and the repeal of 
section 831 of the National Defense Authorization Act for Fiscal Year 
1991 by subsection (b), shall not be construed as modifying or 
otherwise affecting the requirement in section 811(f)(2) of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 113 Stat. 709).

SEC. 824. HUBZONE SMALL BUSINESS CONCERNS.

    Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is 
amended--
            (1) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively; and
            (2) by inserting after paragraph (3) the following:
            ``(4) Rule of construction relating to citizenship.--
                    ``(A) In general.--A small business concern 
                described in subparagraph (B) meets the United States 
                citizenship requirement of paragraph (3)(A) if, at the 
                time of application by the concern to become a 
                qualified HUBZone small business concern for purposes 
                of any contract and at such times as the Administrator 
                shall require, no non-citizen has filed a disclosure 
                under section 13(d)(1) of the Securities Exchange Act 
                of 1934 (15 U.S.C. 78m(d)(1)) as the beneficial owner 
                of more than 10 percent of the outstanding shares of 
                that small business concern.
                    ``(B) Concerns described.--A small business concern 
                is described in this subparagraph if the small business 
                concern--
                            ``(i) has a class of securities registered 
                        under section 12 of the Securities Exchange Act 
                        of 1934 (15 U.S.C. 78l); and
                            ``(ii) files reports with the Securities 
                        and Exchange Commission as a small business 
                        issuer.''.
                    ``(C) Non-citizens.--In this paragraph, the term 
                `non-citizen' means
                            ``(i) an individual that is not a United 
                        States citizen; and
                            ``(ii) any other person that is not 
                        organized under the laws of any State or the 
                        United States.''.

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

SEC. 831. AMENDMENTS TO CONFORM WITH ADMINISTRATIVE CHANGES IN 
              ACQUISITION PHASE AND MILESTONE TERMINOLOGY AND TO MAKE 
              RELATED ADJUSTMENTS IN CERTAIN REQUIREMENTS APPLICABLE AT 
              MILESTONE TRANSITION POINTS.

    (a) Acquisition Phase Terminology.--The following provisions of 
title 10, United States Code, are amended by striking ``engineering and 
manufacturing development'' each place it appears and inserting 
``system development and demonstration'': sections 2366(c) and 2434(a), 
and subsections (b)(3)(A)(i), (c)(3)(A), and (h)(1) of section 2432.
    (b) Milestone Transition Points.--(1) Section 811(c) of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-211), is 
amended by striking ``Milestone I approval, Milestone II approval, or 
Milestone III approval (or the equivalent) of a major automated 
information system'' and inserting ``approval of a major automated 
information system at Milestone B or C or for full rate production, or 
an equivalent approval,''.
    (2) Department of Defense Directive 5000.1, as revised in 
accordance with subsection (b) of section 811 of such Act, shall be 
further revised as necessary to comply with subsection (c) of such 
section, as amended by paragraph (1), within 60 days after the date of 
the enactment of this Act.
    (c) Adjustments to Requirement for Determination of Quantity for 
Low-Rate Initial Production.--Section 2400(a) of title 10, United 
States Code, is amended--
            (1) by striking ``milestone II'' each place it appears in 
        paragraphs (1)(A), (2), (4) and (5) and inserting ``milestone 
        B''; and
            (2) in paragraph (2), by striking ``engineering and 
        manufacturing development'' and inserting ``system development 
        and demonstration''.
    (d) Adjustments to Requirements for Baseline Description and the 
Related Limitation.--Section 2435 of title 10, United States Code, is 
amended--
            (1) in subsection (b), by striking ``engineering and 
        manufacturing development'' and inserting ``system development 
        and demonstration''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``demonstration 
                and validation'' and inserting ``system development and 
                demonstration'';
                    (B) in paragraph (2), by striking ``engineering and 
                manufacturing development'' and inserting ``production 
                and deployment''; and
                    (C) in paragraph (3), by striking ``production and 
                deployment'' and inserting ``full rate production''.

SEC. 832. INAPPLICABILITY OF LIMITATION TO SMALL PURCHASES OF MINIATURE 
              OR INSTRUMENT BALL OR ROLLER BEARINGS UNDER CERTAIN 
              CIRCUMSTANCES.

    Section 2534(g)(2) of title 10, United States Code, is amended--
            (1) by striking ``contracts'' and inserting ``a contract'';
            (2) by striking the period at the end and inserting 
        ``unless the head of the contracting activity determines that--
        ''; and
            (3) by adding at the end the following:
            ``(A) the amount of the purchase does not exceed $25,000;
            ``(B) the precision level of the ball or roller bearings to 
        be procured under the contract is rated lower than the rating 
        known as Annual Bearing Engineering Committee (ABEC) 5 or 
        Roller Bearing Engineering Committee (RBEC) 5, or an equivalent 
        of such rating;
            ``(C) at least two manufacturers in the national technology 
        and industrial base that are capable of producing the ball or 
        roller bearings have not responded to a request for quotation 
        issued by the contracting activity for that contract; and
            ``(D) no bearing to be procured under the contract has a 
        basic outside diameter (exclusive of flange diameters) in 
        excess of 30 millimeters.''.

SEC. 833. INSENSITIVE MUNITIONS PROGRAM.

    (a) Requirement for Program.--Chapter 141 of title 10, United 
States Code, is amended by inserting after section 2404 the following 
new section 2405:
``Sec. 2405. Insensitive munitions program
    ``(a) Requirement for Program.--The Secretary of Defense shall 
carry out a program to ensure, to the extent practicable, that 
munitions under development or in procurement are safe throughout 
development and fielding when subjected to unplanned stimuli.
    ``(b) Content of Program.--The program shall include safety 
criteria, safety procedures, and requirements to conform to those 
criteria and procedures.
    ``(c) Reporting Requirement.--At the same time that the budget for 
a fiscal year is submitted to Congress under section 1105(a) of title 
31, the Secretary shall submit to Congress a report on the insensitive 
munitions program. The report shall include the following matters:
            ``(1) The waivers of requirements referred to in subsection 
        (b) that have been granted under the program during the fiscal 
        year preceding fiscal year in which the report is submitted, 
        together with a discussion of the justifications for the 
        waivers.
            ``(2) Identification of the funding proposed for the 
        program in that budget, together with an explanation of the 
        proposed funding.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2404 the following new item:

``2405. Insensitive munitions program.''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                Subtitle A--Organization and Management

SEC. 901. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND 
              READINESS.

    (a) Establishment of Position.--(1) Chapter 4 of title 10, United 
States Code, is amended by inserting after section 136 the following 
new section:
``Sec. 136a. Deputy Under Secretary of Defense for Personnel and 
              Readiness
    ``(a) There is a Deputy Under Secretary of Defense for Personnel 
and Readiness, appointed from civilian life by the President, by and 
with the advice and consent of the Senate.
    ``(b) The Deputy Under Secretary of Defense for Personnel and 
Readiness shall assist the Under Secretary of Defense for Personnel and 
Readiness in the performance of the duties of that position. The Deputy 
Under Secretary of Defense for Personnel and Readiness shall act for, 
and exercise the powers of, the Under Secretary when the Under 
Secretary is absent or disabled.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 136 the 
following new item:

``136a. Deputy Under Secretary of Defense for Personnel and 
                            Readiness.''.
    (b) Executive Level IV.--Section 5315 of title 5, United States 
Code, is amended by inserting after ``Deputy Under Secretary of Defense 
for Policy.'' the following:
            ``Deputy Under Secretary of Defense for Personnel and 
        Readiness.''.
    (c) Reduction in Number of Assistant Secretaries of Defense.--(1) 
Section 138(a) of title 10, United States Code, is amended by striking 
``nine'' and inserting ``eight''.
    (2) Section 5315 of title 5, United States Code, is amended by 
striking ``Assistant Secretaries of Defense (9).'' and inserting the 
following:
            ``Assistant Secretaries of Defense (8).''.

SEC. 902. RESPONSIBILITY OF UNDER SECRETARY OF THE AIR FORCE FOR 
              ACQUISITION OF SPACE LAUNCH VEHICLES AND SERVICES.

    Section 8015(b) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Under Secretary shall be responsible for planning and 
contracting for, and for managing, the acquisition of space launch 
vehicles and space launch services for the Department of Defense and 
the National Reconnaissance Office.''.

SEC. 903. SENSE OF CONGRESS REGARDING THE SELECTION OF OFFICERS FOR 
              ASSIGNMENT AS THE COMMANDER IN CHIEF, UNITED STATES 
              TRANSPORTATION COMMAND.

    (a) Findings.--Congress makes the following findings:
            (1) The Goldwater-Nichols Department of Defense 
        Reorganization Act of 1986 envisioned that an officer would be 
        assigned to serve as the commander of a combatant command on 
        the basis of being the best qualified officer for the 
        assignment rather than the best qualified officer of the armed 
        force that has historically supplied an officer to serve in 
        that assignment.
            (2) In order to provide for greater competition among the 
        Armed Forces for selection of officers for assignment as the 
        commanders of the combatant commands and assignment to certain 
        other joint positions in the grade of general or admiral, 
        Congress provided temporary relief from the limitation on the 
        number of officers serving on active duty in the grade of 
        general or admiral in section 405 of the National Defense 
        Authorization Act for Fiscal Year 1995 and thereafter extended 
        that relief until September 30, 2003, but has also required 
        that the Secretary of Defense be furnished the name of at least 
        one officer from each of the Armed Forces for consideration for 
        appointment to each such position.
            (3) Most of the positions of commanders of the combatant 
        commands have been filled successively by officers of more than 
        one of the Armed Forces since the enactment of the Goldwater-
        Nichols Department of Defense Reorganization Act of 1986.
            (4) However, general officers of the Air Force with only 
        limited experience in the transportation services have usually 
        filled the position of Commander in Chief of the United States 
        Transportation Command.
            (5) The United States Transportation Command and its 
        component commands could benefit from the appointment of an 
        officer selected from the two armed forces that are the primary 
        users of their transportation resources, namely the Army and 
        the Marine Corps.
    (b) Sense of Congress.-- In light of the findings set forth in 
subsection (a), it is the sense of Congress that the Secretary of 
Defense should, when considering officers for recommendation to the 
President for appointment as the Commander in Chief, United States 
Transportation Command, give careful consideration to recommending an 
officer of the Army or the Marine Corps.

SEC. 904. ORGANIZATIONAL REALIGNMENT FOR NAVY DIRECTOR FOR 
              EXPEDITIONARY WARFARE.

    Section 5038(a) of title 10, United States Code, is amended by 
striking ``Office of the Deputy Chief of Naval Operations for 
Resources, Warfare Requirements, and Assessments'' and inserting 
``Office of the Deputy Chief of Naval Operations for Warfare 
Requirements and Programs''.

SEC. 905. REVISED REQUIREMENTS FOR CONTENT OF ANNUAL REPORT ON JOINT 
              WARFIGHTING EXPERIMENTATION.

    Section 485(b) of title 10, United States Code, is amended--
            (1) by inserting before the period at the end of paragraph 
        (1) the following: ``, together with a specific assessment of 
        whether there is a need for a major force program for funding 
        joint warfighting experimentation and for funding the 
        development and acquisition of any technology the value of 
        which has been empirically demonstrated through such 
        experimentation''; and
            (2) in paragraph (4)(E)--
                    (A) by inserting ``(by lease or by purchase)'' 
                after ``acquire''; and
                    (B) by inserting ``(including any prototype)'' 
                after ``or equipment''.

SEC. 906. SUSPENSION OF REORGANIZATION OF ENGINEERING AND TECHNICAL 
              AUTHORITY POLICY WITHIN THE NAVAL SEA SYSTEMS COMMAND.

    (a) Suspension.--During the period specified in subsection (b), the 
Secretary of the Navy may not commence or continue any change in 
engineering or technical authority policy for the Naval Sea Systems 
Command or its subsidiary activities.
    (b) Duration.--Subsection (a) applies during the period beginning 
on the date of enactment of this Act and ending 60 days after the date 
on which the Secretary submits to the congressional defense committees 
a report that sets forth in detail the Navy's plans and justification 
for the reorganization of engineering and technical authority policy 
within the Naval Sea Systems Command.

SEC. 907. CONFORMING AMENDMENTS RELATING TO CHANGE OF NAME OF AIR 
              MOBILITY COMMAND.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended--
            (1) by striking ``Military Airlift Command'' in sections 
        2554(d) and 2555(a) and inserting ``Air Mobility Command''; and
            (2) in section 8074, by striking subsection (c).
    (b) Title 37, United States Code.--Sections 430(c) and 432(b) of 
title 37, United States Code, are amended by striking ``Military 
Airlift Command'' and inserting ``Air Mobility Command''.

      Subtitle B--Organization and Management of Space Activities

SEC 911. ESTABLISHMENT OF POSITION OF UNDER SECRETARY OF DEFENSE FOR 
              SPACE, INTELLIGENCE, AND INFORMATION.

    (a) Authority of Secretary of Defense To Establish Position.--Upon 
the direction of the President, the Secretary of Defense may, subject 
to subsection (b), establish in the Office of the Secretary of Defense 
the position of Under Secretary of Defense for Space, Intelligence, and 
Information. If the position is so established, the Under Secretary of 
Defense for Space, Intelligence, and Information shall perform duties 
and exercise powers as set forth under section 137 of title 10, United 
States Code, as amended by subsection (d).
    (b) Deadline for Exercise of Authority.--The Secretary may not 
exercise the authority in subsection (a) after December 31, 2003.
    (c) Notice of Exercise of Authority.--If the authority in 
subsection (a) is exercised, the Secretary shall immediately notify 
Congress of the establishment of the position of Under Secretary of 
Defense for Space, Intelligence, and Information, together with the 
date on which the position is established.
    (d) Nature of Position.--
            (1) In general.--Effective as of the date provided for in 
        paragraph (7), chapter 4 of title 10, United States Code, is 
        amended--
                    (A) by redesignating section 137 as section 139a 
                and by transferring such section (as so redesignated) 
                within such chapter so as to appear after section 139; 
                and
                    (B) by inserting after section 136 the following 
                new section 137:
``Sec. 137. Under Secretary of Defense for Space, Intelligence, and 
              Information
    ``(a) There is an Under Secretary of Defense for Space, 
Intelligence, and Information, appointed from civilian life by the 
President, by and with the advice and consent of the Senate.
    ``(b) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary of Defense for Space, 
Intelligence, and Information shall perform such duties and exercise 
such powers relating to the space, intelligence, and information 
programs and activities of the Department of Defense as the Secretary 
of Defense may prescribe. The duties and powers prescribed for the 
Under Secretary shall include the following:
            ``(1) In coordination with the Under Secretary of Defense 
        for Policy, the establishment of policy on space.
            ``(2) In coordination with the Under Secretary of Defense 
        for Acquisition, Technology, and Logistics, the acquisition of 
        space systems.
            ``(3) The deployment and use of space assets.
            ``(4) The oversight of research, development, acquisition, 
        launch, and operation of space, intelligence, and information 
        assets.
            ``(5) The coordination of military intelligence activities 
        within the Department.
            ``(6) The coordination of intelligence activities of the 
        Department and the intelligence community in order to meet the 
        long-term intelligence requirements of the United States.
            ``(7) The coordination of space activities of the 
        Department with commercial and civilian space activities.
    ``(c) The Secretary of Defense shall designate the Under Secretary 
of Defense for Space, Intelligence, and Information as the Chief 
Information Officer of the Department of Defense under section 
3506(a)(2)(B) of title 44.
    ``(d) The Under Secretary of Defense for Space, Intelligence, and 
Information takes precedence in the Department of Defense after the 
Under Secretary of Defense for Personnel and Readiness.''.
            (2) Additional assistant secretary of defense.--Section 
        138(a) of that title is amended by striking ``nine Assistant 
        Secretaries of Defense'' and inserting ``ten Assistant 
        Secretaries of Defense''.
            (3) Duties of assistant secretaries of defense for space, 
        intelligence, and information.--Section 138(b) of that title is 
        amended by adding at the end the following new paragraph:
    ``(7) Two of the Assistant Secretaries shall have as their 
principal duties supervision of activities relating to space, 
intelligence, and information. The Assistant Secretaries shall each 
report to the Under Secretary of Defense for Space, Intelligence, and 
Information in the performance of such duties.''.
            (4) Conforming amendments.--Section 131(b) of that title is 
        amended--
                    (A) by redesignating paragraphs (6) through (11) as 
                paragraphs (7) through (12), respectively; and
                    (B) by inserting after paragraph (5) the following 
                new paragraph (6):
            ``(6) The Under Secretary of Defense for Space, 
        Intelligence, and Information.''.
            (5) Pay levels.--(A) Section 5314 of title 5, United States 
        Code, is amended by inserting after ``Under Secretary of 
        Defense for Personnel and Readiness'' the following:
            ``Under Secretary of Defense for Space, Intelligence, and 
        Information.''.
            (B) Section 5315 of title 5, United States Code, is amended 
        in the item relating to Assistant Secretaries of Defense by 
        striking ``(9)'' and inserting ``(10)''.
            (6) Clerical amendments.--The table of sections at the 
        beginning of chapter 4 of title 10, United States Code, is 
        amended--
                    (A) by striking the item relating to section 137 
                and inserting the following new item:

``137. Under Secretary of Defense for Space, Intelligence, and 
                            Information.''; and
                    (B) by inserting after the item relating to section 
                139 the following new item:

``139a. Director of Defense Research and Engineering.''.
            (7) Effective date.--The amendments made by this subsection 
        shall take effect as of the date specified in the notification 
        provided by the Secretary of Defense to Congress under 
        subsection (c) of the exercise of the authority in subsection 
        (a).
    (e) Report.--(1) Not later than 30 days before an exercise of the 
authority provided in subsection (a), the President shall submit to 
Congress a report on the proposed organization of the office of the 
Under Secretary of Defense for Space, Intelligence, and Information.
    (2) If the Secretary of Defense has not exercised the authority 
granted in subsection (a) on the date that is one year after the date 
of the enactment of this Act, the Secretary shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives on that date a report describing the actions taken by 
the Secretary to address the problems in the management and 
organization of the Department of Defense for space activities that are 
identified by the Commission To Assess United States National Security 
Space Management and Organization in the report of the Commission 
submitted under section 1623 of the National Defense Authorization Act 
for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 815).

SEC. 912. RESPONSIBILITY FOR SPACE PROGRAMS.

    (a) In General.--Part IV of subtitle A of title 10, United States 
Code, is amended by inserting after chapter 134 the following new 
chapter:

                     ``CHAPTER 135--SPACE PROGRAMS

``Sec.
``2271. Responsibility for space programs.
``Sec. 2271. Responsibility for space programs
    ``(a) Responsibility of Secretary of Air Force as Executive 
Agent.--The Secretary of the Air Force shall be the executive agent of 
the Department of Defense for functions of the Department designated by 
the Secretary of Defense with respect to the following:
            ``(1) Planning for the acquisition programs, projects, and 
        activities of the Department that relate to space.
            ``(2) Efficient execution of the programs, projects, and 
        activities.
    ``(b) Responsibility of Under Secretary of Air Force as Acquisition 
Executive.--The Under Secretary of the Air Force shall be the 
acquisition executive of the Department of the Air Force for the 
programs, projects, and activities referred to in subsection (a).
    ``(c) Responsibility of Under Secretary of Air Force as Director of 
NRO.--The Under Secretary of the Air Force shall act as the Director of 
the National Reconnaissance Office.
    ``(d) Coordination of Duties of Under Secretary of Air Force.--In 
carrying out duties under subsections (b) and (c), the Under Secretary 
of the Air Force shall coordinate the space programs, projects, and 
activities of the Department of Defense and the programs, projects, and 
activities of the National Reconnaissance Office.
    ``(e) Space Career Field.--(1) The Under Secretary of the Air Force 
shall establish and implement policies and procedures to develop a 
cadre of technically competent officers with the capability to develop 
space doctrine, concepts of space operations, and space systems for the 
Department of the Air Force.
    ``(2) The Secretary of the Air Force shall assign to the commander 
of Air Force Space Command primary responsibility for--
            ``(A) establishing and implementing education and training 
        programs for space programs, projects, and activities of the 
        Department of the Air Force; and
            ``(B) management of the space career field under paragraph 
        (1).
    ``(f) Joint Program Management.--The Under Secretary of the Air 
Force shall take appropriate actions to ensure that, to maximum extent 
practicable, Army, Navy, Marine Corps, and Air Force personnel are 
assigned, on a joint duty assignment basis, as follows:
            ``(1) To carry out the space development and acquisition 
        programs of the Department of Defense; and
            ``(2) To the Office of the National Security Space 
        Architect.''.
    (b) Clerical Amendment.--The tables of chapters at the beginning of 
such subtitle and at the beginning of part IV of such subtitle are 
amended by inserting after the item relating to chapter 134 the 
following new item:

``135. Space Programs.......................................    2271''.

SEC. 913. MAJOR FORCE PROGRAM CATEGORY FOR SPACE PROGRAMS.

    (a) Requirement.--The Secretary of Defense shall create a major 
force program category for space programs for purposes of the future-
years defense program under section 221 of title 10, United States 
Code.
    (b) Commencement.--The category created under subsection (a) shall 
be included in each future-years defense program submitted to Congress 
under section 221 of title 10, United States Code, in fiscal years 
after fiscal year 2002.

SEC. 914. ASSESSMENT OF IMPLEMENTATION OF RECOMMENDATIONS OF COMMISSION 
              TO ASSESS UNITED STATES NATIONAL SECURITY SPACE 
              MANAGEMENT AND ORGANIZATION.

    (a) Comptroller General Assessment.--The Comptroller General shall 
carry out an assessment of the progress made by the Department of 
Defense in implementing the recommendations of the Commission To Assess 
United States National Security Space Management and Organization as 
contained in the report of the Commission submitted under section 1623 
of the National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65; 113 Stat. 815).
    (b) Reports.--Not later than February 15 of each of 2002 and 2003, 
the Comptroller General shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report on the 
assessment carried out under subsection (a). Each report shall set 
forth the results of the assessment as of the date of such report.

SEC. 915. GRADE OF COMMANDER OF AIR FORCE SPACE COMMAND.

    (a) In General.--Chapter 845 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 8584. Commander of Air Force Space Command
    ``(a) Grade.--The officer serving as commander of the Air Force 
Space Command shall, while so serving, have the grade of general.
    ``(b) Limitation on Concurrent Command Assignments.--The officer 
serving as commander of the Air Force Space Command may not, while so 
serving, serve as commander-in-chief of the United States Space Command 
(or any successor combatant command with responsibility for space) or 
as commander of the United States element of the North American Air 
Defense Command.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``8584. Commander of Air Force Space Command.''.

SEC. 916. SENSE OF CONGRESS REGARDING GRADE OF OFFICER ASSIGNED AS 
              COMMANDER OF UNITED STATES SPACE COMMAND.

    It is the sense of Congress that the Secretary of Defense should 
assign the best qualified officer of the Army, Marine Corps, or Air 
Force with the grade of general, or of the Navy with the grade of 
admiral, to the position of Commander of the United States Space 
Command.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 2002 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. REDUCTION IN AUTHORIZATIONS OF APPROPRIATIONS FOR DEPARTMENT 
              OF DEFENSE FOR MANAGEMENT EFFICIENCIES.

    Notwithstanding any other provision of this Act, the total amount 
authorized to be appropriated for the Department of Defense by 
divisions A and B of this Act is hereby reduced by $1,630,000,000, to 
reflect savings to be achieved through implementation of the provisions 
of title VIII and other management efficiencies and business process 
reforms.

SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
              2001.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2001 in the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398) are hereby adjusted, with respect to any such authorized 
amount, by the amount by which appropriations pursuant to such 
authorization were increased (by a supplemental appropriation) or 
decreased (by a rescission), or both, in title I of the Supplemental 
Appropriations Act, 2001 (Public Law 107-20).

SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2002.

    (a) Fiscal Year 2002 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2002 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2001, of funds appropriated for fiscal years before 
        fiscal year 2002 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $708,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $175,849,000 
        for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

SEC. 1005. CLARIFICATION OF APPLICABILITY OF INTEREST PENALTIES FOR 
              LATE PAYMENT OF INTERIM PAYMENTS DUE UNDER CONTRACTS FOR 
              SERVICES.

    Section 1010(d) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-251) is amended by inserting before the 
period at the end of the first sentence the following: ``, and shall 
apply with respect to interim payments that are due on or after such 
date under contracts entered into before, on, or after that date''.

SEC. 1006. RELIABILITY OF DEPARTMENT OF DEFENSE FINANCIAL STATEMENTS.

    (a) Annual Report on Reliability.--(1) Not later than July 1 of 
each year, the Secretary of Defense shall submit to the recipients 
referred to in paragraph (3) a report on the reliability of the 
Department of Defense financial statements, including the financial 
statements of each component of the department that is required to 
prepare a financial statement under section 3515(c) of title 31, United 
States Code.
    (2) The annual report shall contain the following:
            (A) A conclusion regarding whether the policies and 
        procedures of the Department of Defense, and the systems used 
        within the Department of Defense, for the preparation of 
        financial statements allow the achievement of reliability in 
        the financial statements.
            (B) For each of the financial statements prepared for the 
        Department of Defense for the fiscal year in which the report 
        is submitted, a conclusion regarding the expected reliability 
        of the financial statement (evaluated on the basis of Office of 
        Management and Budget guidance on financial statements), 
        together with a discussion of the major deficiencies to be 
        expected in the statement.
            (C) A summary of the specific sections of the annual 
        Financial Management Improvement Plan of the Department of 
        Defense, current as of the date of the report, that--
                    (i) detail the priorities, milestones, and measures 
                of success that apply to the preparation of the 
                financial statements;
                    (ii) detail the planned improvements in the process 
                for the preparation of financial statements that are to 
                be implemented within 12 months after the date on which 
                the plan is issued; and
                    (iii) provide an estimate of when each financial 
                statement will convey reliable information.
    (3) The annual report shall be submitted to the following:
            (A) The Committee on Armed Services and the Committee on 
        Governmental Affairs of the Senate.
            (B) The Committee on Armed Services and the Committee on 
        Government Reform of the House of Representatives.
            (C) The Director of the Office of Management and Budget.
            (D) The Secretary of the Treasury.
            (E) The Comptroller General of the United States.
    (4) The Secretary of Defense shall make a copy of the annual report 
available to the Inspector General of the Department of Defense.
    (b) Minimization of Use of Resources for Unreliable Financial 
Statements.--(1) With respect to each financial statement for a fiscal 
year that the Secretary of Defense assesses as being expected to be 
unreliable in the annual report under subsection (a), the Under 
Secretary of Defense (Comptroller) or the Assistant Secretary 
(Financial Management and Comptroller) of the military department 
concerned shall take appropriate actions to minimize the resources, 
including contractor support, that are used to develop, compile, and 
report the financial statement.
    (2)(A) With the annual budget justifications for the Department of 
Defense submitted to Congress each year, the Under Secretary of Defense 
(Comptroller) shall submit, with respect to the fiscal year in which 
submitted, the preceding fiscal year, and the following fiscal year, 
the following information:
            (i) An estimate of the resources that the Department of 
        Defense is saving or expects to save as a result of actions 
        taken and to be taken under paragraph (1) with respect to the 
        preparation of financial statements.
            (ii) A discussion of how the resources saved as estimated 
        under clause (i) have been redirected or are to be redirected 
        from the preparation of financial statements to the improvement 
        of systems underlying financial management within the 
        Department of Defense and to the improvement of financial 
        management policies, procedures, and internal controls within 
        the Department of Defense.
    (B) The Assistant Secretaries (Financial Management and 
Comptroller) of the Army, Navy, and Air Force shall provide the Under 
Secretary of Defense (Comptroller) with the information necessary for 
making the estimate required by subparagraph (A)(i).
    (c) Information to Auditors.--Not later than October 31 of each 
year, the Under Secretary of Defense (Comptroller) and the Assistant 
Secretaries (Financial Management and Comptroller) of the Army, Navy, 
and Air Force shall each provide to the auditors of the financial 
statement of that official's department for the fiscal year ending 
during the preceding month the official's preliminary management 
representation, in writing, regarding the expected reliability of the 
financial statement. The representation shall be consistent with 
guidance issued by the Director of the Office of Management and Budget 
and shall include the basis for the reliability assessment stated in 
the representation.
    (d) Limitation on Inspector General Audits.--(1) On each financial 
statement that an official asserts is unreliable under subsection (b) 
or (c), the Inspector General of the Department of Defense shall only 
perform the audit procedures required by generally accepted government 
auditing standards consistent with any representation made by 
management.
    (2)(A) With the annual budget justifications for the Department of 
Defense submitted to Congress each year, the Under Secretary of Defense 
(Comptroller) shall submit, with respect to the fiscal year in which 
submitted, the preceding fiscal year, and the following fiscal year, 
information which the Inspector General shall report to the Under 
Secretary, as follows:
            (i) An estimate of the resources that the Inspector General 
        is saving or expects to save as a result of actions taken and 
        to be taken under paragraph (1) with respect to the auditing of 
        financial statements.
            (ii) A discussion of how the resources saved as estimated 
        under clause (i) have been redirected or are to be redirected 
        from the auditing of financial statements to the oversight and 
        improvement of systems underlying financial management within 
        the Department of Defense and to the oversight and improvement 
        of financial management policies, procedures, and internal 
        controls within the Department of Defense.
    (e) Period of Applicability.--(1) Except as provided in paragraph 
(2), the requirements of this section shall apply with respect to 
financial statements for fiscal years after fiscal year 2000 and before 
fiscal year 2006 and to the auditing of those financial statements.
    (2) If the Secretary of Defense certifies to the Inspector General 
of the Department of Defense that the financial statement for the 
Department of Defense, or a financial statement for a component of the 
Department of Defense, for a fiscal year is reliable, this section 
shall not apply with respect to that financial statement or to any 
successive financial statement for the department or that component, as 
the case may be, for any later fiscal year.

SEC. 1007. FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE COMMITTEE AND 
              FINANCIAL FEEDER SYSTEMS COMPLIANCE PROCESS.

    (a) Establishment of Financial Management Modernization Executive 
Committee.--(1) The Secretary of Defense shall establish a Financial 
Management Modernization Executive Committee.
    (2) The Committee shall be composed of the Under Secretary of 
Defense (Comptroller), the Under Secretary of Defense (Acquisition, 
Technology, and Logistics), the Under Secretary of Defense (Personnel 
and Readiness), the chief information officer of the Department of 
Defense, and other key managers of the Department of Defense (including 
key managers in Defense Agencies and military departments) who are 
designated by the Secretary.
    (3) The Under Secretary of Defense (Comptroller) shall be the 
Chairman of the Committee.
    (4) The Committee shall be accountable to the Senior Executive 
Council composed of the Secretary of Defense, the Deputy Secretary of 
Defense, the Under Secretary of Defense for Acquisition, Technology, 
and Logistics, the Secretary of the Army, the Secretary of the Navy, 
and the Secretary of the Air Force.
    (b) Duties.--The Financial Management Modernization Executive 
Committee shall have the following duties:
            (1) To establish a financial and feeder systems compliance 
        process that ensures that each critical accounting, financial 
        management, and feeder system of the Department of Defense is 
        compliant with applicable Federal financial management and 
        reporting requirements.
            (2) To develop a management plan for the implementation of 
        the financial and feeder systems compliance process.
            (3) To supervise and monitor the actions that are necessary 
        to implement the management plan, as approved by the Secretary 
        of Defense.
            (4) To ensure that a Department of Defense financial 
        management enterprise architecture is development and 
        maintained in accordance with--
                    (A) the overall business process transformation 
                strategy of the Department; and
                    (B) the Command, Control, Communications, 
                Computers, Intelligence, Surveillance, and 
                Reconnaissance Architecture Framework of the 
                Department.
            (5) To ensure that investments in existing or proposed 
        financial management systems for the Department comply with the 
        overall business practice transformation strategy of the 
        Department and the financial management enterprise architecture 
        developed under paragraph (4).
            (6) To provide an annual accounting of all financial and 
        feeder system investment technology projects to ensure that 
        such projects are being implemented at acceptable cost and 
        within a reasonable schedule, and are contributing to tangible, 
        observable improvements in mission performance.
    (c) Management Plan for Implementation of Financial Feeder Systems 
Compliance Process.--The management plan developed under subsection 
(b)(2) shall include among its principal elements at least the 
following elements:
            (1) A requirement to establish and maintain a complete 
        inventory of all budgetary, accounting, finance, and feeder 
        systems that support the transformed business processes of the 
        Department and produce financial statements.
            (2) A phased process for improving systems that provides 
        for mapping financial data flow from sources to cognizant 
        Department business functions (as part of the overall business 
        process transformation strategy of the Department) and 
        financial statements before other actions are initiated.
            (3) Periodic submittal to the Secretary of Defense, the 
        Deputy Secretary of Defense, the Senior Executive Council, or 
        any combination thereof, of reports on the progress being made 
        in achieving financial management transformation goals and 
        milestone included in the annual financial management 
        improvement plan in 2002 in accordance with subsection (e).
            (4) Documentation of the completion of each phase--
        Awareness, Evaluation, Renovation, Validation, and Compliance--
        of improvements made to each accounting, finance, and feeder 
        system.
            (5) Independent audit by the Inspector General of the 
        Department, the audit agencies of the military department, 
        private sector firms contracted to conduct validation audits, 
        or any combination thereof, at the validation phase for each 
        accounting, finance, and feeder system.
    (d) Annual Financial Management Improvement Plan.--(1) Subsection 
(a) of section 2222 of title 10, United States Code, is amended to read 
as follows:
    ``(a) Annual Plan Required.--The Secretary of Defense shall submit 
to Congress an annual strategic plan for the improvement of financial 
management within the Department of Defense. The plan shall be 
submitted not later than September 30 each year.''.
    (2)(A) The section heading of such section is amended to read as 
follows:
``Sec. 2222. Annual financial management improvement plan''.
    (B) The table of sections at the beginning of chapter 131 of such 
title is amended by striking the item relating to section 2222 and 
inserting the following new item:

``2222. Annual financial management improvement plan.''.
    (e) Additional Elements for Financial Management Improvement Plan 
in 2002.--In the annual financial management improvement plan submitted 
under section 2222 of title 10, United States Code (as amended by 
subsection (d)), in 2002, the Secretary shall include the following:
            (1) Measurable annual performance goals for improvement of 
        the financial management of the Department.
            (2) Performance milestones for initiatives under the plan 
        for transforming the financial management operations of the 
        Department and for implementing a financial management 
        architecture for the Department.
            (3) An assessment of the anticipated annual cost of any 
        plans for transforming the financial management operations of 
        the Department and for implementing a financial management 
        architecture for the Department.
            (4) A discussion of the following:
                    (A) The roles and responsibilities of appropriate 
                Department officials to ensure the supervision and 
                monitoring of the compliance of each accounting, 
                finance, and feeder system of the Department with the 
                business practice transformation strategy of the 
                Department, the financial management architecture of 
                the Department, and applicable Federal financial 
                management systems and reporting requirements.
                    (B) A summary of the actions taken by the Financial 
                Management Modernization Executive Committee to ensure 
                that such systems comply with the business practice 
                transformation strategy of the Department, the 
                financial management architecture of the Department, 
                and applicable Federal financial management systems and 
                reporting requirements.
    (f) Additional Elements for Financial Management Improvement Plan 
After 2002.--In each annual financial management improvement plan 
submitted under section 2222 of title 10, United States Code (as 
amended by subsection (d)), after 2002, the Secretary shall include the 
following:
            (1) A description of the actions to be taken in the fiscal 
        year beginning in the year in which the plan is submitted to 
        implement the goals and milestones included in the financial 
        management improvement plan in 2002 under paragraphs (1) and 
        (2) of subsection (e).
            (2) An estimate of the amount expended in the fiscal year 
        ending in the year in which the plan is submitted to implement 
        the financial management improvement plan in such preceding 
        calendar year, set forth by system.
            (3) If an element of the financial management improvement 
        plan submitted in the fiscal year ending in the year in which 
        the plan is submitted was not implemented, a justification for 
        the lack of implementation of such element.

SEC. 1008. COMBATING TERRORISM READINESS INITIATIVES FUND FOR COMBATANT 
              COMMANDS.

    (a) Funding for Initiatives.--Chapter 6 of title 10, United States 
Code, is amended by inserting after section 166a the following new 
section:
``Sec. 166b. Combatant commands: funding for combating terrorism 
              readiness initiatives
    ``(a) Combating Terrorism Readiness Initiatives Fund.--From funds 
made available in any fiscal year for the budget account in the 
Department of Defense known as the `Combating Terrorism Readiness 
Initiatives Fund', the Chairman of the Joint Chiefs of Staff may 
provide funds to the commander of a combatant command, upon the request 
of the commander, or, with respect to a geographic area or areas not 
within the area of responsibility of a commander of a combatant 
command, to an officer designated by the Chairman of the Joint Chiefs 
of Staff for such purpose. The Chairman may provide such funds for 
initiating any activity named in subsection (b) and for maintaining and 
sustaining the activity for the fiscal year in which initiated and one 
additional fiscal year.
    ``(b) Authorized Activities.--Activities for which funds may be 
provided under subsection (a) are the following:
            ``(1) Procurement and maintenance of physical security 
        equipment.
            ``(2) Improvement of physical security sites.
            ``(3) Under extraordinary circumstances--
                    ``(A) physical security management planning;
                    ``(B) procurement and support of security forces 
                and security technicians;
                    ``(C) security reviews and investigations and 
                vulnerability assessments; and
                    ``(D) any other activity relating to physical 
                security.
    ``(c) Priority.--The Chairman of the Joint Chiefs of Staff, in 
considering requests for funds in the Combating Terrorism Readiness 
Initiatives Fund, should give priority consideration to emergency or 
emergent unforeseen high-priority requirements for combating terrorism.
    ``(d) Relationship to Other Funding.--Any amount provided by the 
Chairman of the Joint Chiefs of Staff for a fiscal year out of the 
Combating Terrorism Readiness Initiatives Fund for an activity referred 
to in subsection (b) shall be in addition to amounts otherwise 
available for that activity for that fiscal year.
    ``(e) Limitation.--Funds may not be provided under this section for 
any activity that has been denied authorization by Congress.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
166a the following new item:

``166b. Combatant commands: funding for combating terrorism readiness 
                            initiatives.''.

SEC. 1009. AUTHORIZATION OF ADDITIONAL FUNDS.

    (a) Authorization.--$1,300,000,000 is hereby authorized, in 
addition to the funds authorized elsewhere in division A of this Act, 
for whichever of the following purposes the President determines to be 
in the national security interests of the United States--
            (1) research, development, test and evaluation for 
        ballistic missile defense; and
            (2) activities for combating terrorism.

SEC. 1010. AUTHORIZATION OF 2001 EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
              ACT FOR RECOVERY FROM AND RESPONSE TO TERRORIST ATTACKS 
              ON THE UNITED STATES.

    (a) Authorization.--Amounts authorized to be appropriated to the 
Department of Defense for fiscal year 2001 in the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as enacted 
into law by Public Law 106-398) are hereby adjusted by the amounts of 
appropriations made available to the Department of Defense pursuant to 
the 2001 Emergency Supplemental Appropriations Act for Recovery from 
and Response to Terrorist Attacks on the United States.
    (b) Quarterly Report.--(1) Promptly after the end of each quarter 
of a fiscal year, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the use of funds made available to the 
Department of Defense pursuant to the 2001 Emergency Supplemental 
Appropriations Act for Recovery from and Response to Terrorist Attacks 
on the United States.
    (2) The first report under paragraph (1) shall be submitted not 
later than January 2, 2002.
    (c) Proposed Allocation and Plan.--The Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives, not later than 15 days after the date on which the 
Director of the Office of Management and Budget submits to the 
Committees on Appropriations of the Senate and House of Representatives 
the proposed allocation and plan required by the 2001 Emergency 
Supplemental Appropriations Act for Recovery from and Response to 
Terrorist Attacks on the United States, a proposed allocation and plan 
for the use of the funds made available to the Department of Defense 
pursuant to that Act.

                      Subtitle B--Strategic Forces

SEC. 1011. REPEAL OF LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
              STRATEGIC NUCLEAR DELIVERY SYSTEMS.

    Section 1302 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1948) is repealed.

SEC. 1012. BOMBER FORCE STRUCTURE.

    (a) Limitation.--None of the funds available to the Department of 
Defense for fiscal year 2002 may be obligated or expended for retiring 
or dismantling any of the 93 B-1B Lancer bombers in service as of June 
1, 2001, or for transferring or reassigning any of those aircraft from 
the unit or facility to which assigned as of that date, until 30 days 
after the latest of the following:
            (1) The date on which the President transmits to Congress 
        the national security strategy report required in 2001 pursuant 
        to section 108(a)(1) of the National Security Act of 1947 (50 
        U.S.C. 404a(a)(1)).
            (2) The date on which the Secretary of Defense submits to 
        the Committee on Armed Services of the Senate and the Committee 
        on Armed Services of the House of Representatives the 
        Quadrennial Defense Review (QDR) under section 118 of title 10, 
        United States Code, that is required to be submitted under that 
        section not later than September 30, 2001.
            (3) The date on which the Secretary of Defense submits to 
        the committees referred to in paragraph (2) a report that sets 
        forth--
                    (A) the changes in national security considerations 
                from those applicable to the air force bomber studies 
                conducted during 1992, 1995, and 1999 that warrant 
                changes in the current configuration of the bomber 
                fleet;
                    (B) the role of manned bomber aircraft appropriate 
                to meet the requirements of the national security 
                strategy referred to in paragraph (1);
                    (C) the amount and type of bomber force structure 
                in the United States Air Force appropriate to meet the 
                requirements of the national security strategy referred 
                to in paragraph (1);
                    (D) the results of a comparative analysis of the 
                cost of basing, maintaining, operating, and upgrading 
                the B-1B Lancer bomber fleet in the active force of the 
                Air Force with the cost of basing, maintaining, 
                operating, and upgrading the B-1B Lancer bomber fleet 
                in a mix of active and reserve component forces of the 
                Air Force; and
                    (E) the plans of the Department of Defense for 
                assigning new missions to the National Guard units that 
                currently fly B-1 aircraft and for the transition of 
                those units and their facilities from the current B-1 
                mission to such new missions.
            (4) The date on which the Secretary of Defense submits to 
        Congress the report on the results of the Revised Nuclear 
        Posture Review conducted under section 1042 of the Floyd D. 
        Spence National Defense Authorization Act for Fiscal Year 2001 
        (as enacted into law by Public Law 106-398; 114 Stat. 1654A-
        262), as amended by section 1013 of this Act.
    (b) GAO Study and Report.--The Comptroller General of the United 
States shall conduct a study on the matters specified in subsection 
(a)(3). The Comptroller General shall submit to Congress a report 
containing the results of the study not later than January 31, 2002.
    (c) Amount and Type of Bomber Force Structure Defined.--In this 
section, the term ``amount and type of bomber force structure'' means 
the required numbers of B-2 aircraft, B-52 aircraft, and B-1 aircraft 
consistent with the requirements of the national security strategy 
referred to in subsection (a)(1).

SEC. 1013. ADDITIONAL ELEMENT FOR REVISED NUCLEAR POSTURE REVIEW.

    Section 1041(b) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted by Public Law 106-
398; 114 Stat. 1654A-262) is amended by adding at the end the following 
new paragraph:
            ``(7) The possibility of deactivating or dealerting nuclear 
        warheads or delivery systems immediately, or immediately after 
        a decision to retire any specific warhead, class of warheads, 
        or delivery system or systems.''.

                   Subtitle C--Reporting Requirements

SEC. 1021. INFORMATION AND RECOMMENDATIONS ON CONGRESSIONAL REPORTING 
              REQUIREMENTS APPLICABLE TO THE DEPARTMENT OF DEFENSE.

    (a) Compilation of Reporting Requirements.--The Secretary of 
Defense shall compile a list of all provisions of law in effect on the 
date of the enactment of this Act that require or request the 
President, with respect to the national defense functions of the 
Federal Government, or any officer or employee of the Department of 
Defense, to submit a report, notification, or study to Congress or any 
committee of Congress. The preceding sentence does not apply to a 
provision of law that requires or requests only one report, 
notification, or study.
    (b) Submittal of Compilation.--(1) The Secretary shall submit the 
list compiled under subsection (a) to Congress not later than 60 days 
after the date of the enactment of this Act.
    (2) In submitting the list, the Secretary shall specify for each 
provision of law compiled in the list--
            (A) the date of the enactment of such provision of law and 
        a current citation in law for such provision of law; and
            (B) the Secretary's assessment of the continuing utility of 
        any report, notification, or study arising under such provision 
        of law, both for the executive branch and for Congress.
    (3) The Secretary may also include with the list any 
recommendations that the Secretary considers appropriate for the 
consolidation of reports, notifications, and studies under the 
provisions of law described in subsection (a), together with a proposal 
for legislation to implement such recommendations.

SEC. 1022. REPORT ON COMBATING TERRORISM.

    (a) Requirement for Report.--The Secretary of Defense shall submit 
to Congress a report on the Department of Defense policies, plans, and 
procedures for combating terrorism.
    (b) Content.--(1) The Secretary shall identify and explain in the 
report the Department of Defense structure, strategy, roles, 
relationships, and responsibilities for combating terrorism.
    (2) The report shall also include a discussion of the following 
matters:
            (A) The policies, plans, and procedures relating to how the 
        Assistant Secretary of Defense for Special Operations and Low 
        Intensity Conflict and the Joint Task Force-Civil Support of 
        the Joint Forces Command are to perform, and coordinate the 
        performance of, their functions for combating terrorism with--
                    (i) the various teams in the Department of Defense 
                that have responsibilities to respond to acts or 
                threats of terrorism, including--
                            (I) the weapons of mass destruction civil 
                        support teams when operating as the National 
                        Guard under the command of the Governor of a 
                        State, the Governor of Puerto Rico, or the 
                        Commanding General of the District of Columbia 
                        National Guard, as the case may be; and
                            (II) the weapons of mass destruction civil 
                        support teams when operating as the Army 
                        National Guard of the United States or the Air 
                        National Guard of the United States under the 
                        command of the President;
                    (ii) the Army's Director of Military Support;
                    (iii) the various teams in other departments and 
                agencies of the Federal Government that have 
                responsibilities to respond to acts or threats of 
                terrorism;
                    (iv) the organizations outside the Federal 
                Government, including any private sector entities, that 
                are to function as first responders to acts or threats 
                of terrorism; and
                    (v) the units and organizations of the reserve 
                components of the Armed Forces that have missions 
                relating to combating terrorism.
            (B) Any preparedness plans to combat terrorism that are 
        developed for installations of the Department of Defense by the 
        commanders of the installations and the integration of those 
        plans with the plans of the teams and other organizations 
        described in subparagraph (A).
            (C) The policies, plans, and procedures for using and 
        coordinating the Joint Staff's integrated vulnerability 
        assessment teams inside the United States and outside the 
        United States.
            (D) The missions of Fort Leonard Wood and other 
        installations for training units, weapons of mass destruction 
        civil support teams and other teams, and individuals in 
        combating terrorism.
    (3) The report shall also include the Secretary's views on the 
appropriate number and missions of the Department of Defense teams 
referred to in paragraph (2)(A)(i).
    (c) Time for Submittal.--The Secretary shall submit the report 
under this section not later than 180 days after the date of the 
enactment of this Act.

SEC. 1023. REVISED REQUIREMENT FOR CHAIRMAN OF THE JOINT CHIEFS OF 
              STAFF TO ADVISE SECRETARY OF DEFENSE ON THE ASSIGNMENT OF 
              ROLES AND MISSIONS TO THE ARMED FORCES.

    (a) Assessment During Defense Quadrennial Review.--Subsection 
118(e) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e) CJCS Review.--''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Chairman shall include in the assessment submitted under 
paragraph (1), the Chairman's assessment of the assignment of functions 
(or roles and missions) to the armed forces together with any 
recommendations for changes in assignment that the Chairman considers 
necessary to achieve the maximum efficiency of the armed forces. In 
making the assessment, the Chairman should consider (among other 
matters) the following:
            ``(A) Unnecessary duplication of effort among the armed 
        forces.
            ``(B) Changes in technology that can be applied effectively 
        to warfare.''.
    (b) Repeal of Requirement for Triennial Report on Assignment of 
Roles and Missions.--Section 153 of such title is amended by striking 
subsection (b).
    (c) Conforming Amendment.--Subsection (a) of such section 153 is 
amended by striking ``(a) Planning; Advice; Policy Formulation.--''.

SEC. 1024. REVISION OF DEADLINE FOR ANNUAL REPORT ON COMMERCIAL AND 
              INDUSTRIAL ACTIVITIES.

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

SEC. 1025. PRODUCTION AND ACQUISITION OF VACCINES FOR DEFENSE AGAINST 
              BIOLOGICAL WARFARE AGENTS.

    (a) Government Facility.--(1) Subject to the availability of funds 
appropriated and authorized to be appropriated for such purposes, the 
Secretary of Defense may--
            (A) design, construct, and operate on an installation of 
        the Department of Defense a facility for the production of 
        vaccines described in subsection (b)(1);
            (B) qualify and validate the facility for the production of 
        vaccines in accordance with the requirements of the Food and 
        Drug Administration; and
            (C) contract with a private sector source for the 
        production of vaccines in that facility.
    (2) The Secretary shall use competitive procedures under chapter 
137 of title 10, United States Code, to enter into contracts to carry 
out subparagraphs (A) and (C) of paragraph (1).
    (b) Plan.--(1) The Secretary of Defense shall develop a long-range 
plan to provide for the production and acquisition of vaccines to meet 
the requirements of the Department of Defense to prevent or mitigate 
the physiological effects of exposure to biological warfare agents.
    (2) The plan shall include the following:
            (A) An evaluation of the need for one or more vaccine 
        production facilities that are specifically dedicated to 
        meeting the requirements of the Department of Defense and other 
        national interests.
            (B) An evaluation of the alternative options for the means 
        of production of the vaccines, including--
                    (i) use of public facilities, private facilities, 
                or a combination of public and private facilities; and
                    (ii) management and operation of the facilities by 
                the Federal Government, one or more private persons, or 
                a combination of the Federal Government and one or more 
                private persons.
            (C) The means for producing the vaccines that the Secretary 
        determines most appropriate.
    (3) The Secretary shall ensure that the plan is consistent with the 
requirement for safe and effective vaccines approved by the Food and 
Drug Administration.
    (4) In preparing the plan, the Secretary shall--
            (A) consider and, as the Secretary determines appropriate, 
        include the information compiled and the analyses developed in 
        meeting the reporting requirements set forth in sections 217 
        and 218 of the Floyd D. Spence National Defense Authorization 
        Act for Fiscal Year 2001 (as enacted into law by Public Law 
        106-398; 114 Stat. 1654A-36 and 1654A-37); and
            (B) consult with the heads of other appropriate departments 
        and agencies of the Federal Government.
    (c) Report.--Not later than February 1, 2002, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the plan for the production of vaccines required by subsection (b). 
The report shall include, at a minimum, the plan and the following 
matters:
            (1) A description of the policies and requirements of the 
        Department of Defense regarding acquisition and use of the 
        vaccines.
            (2) The estimated schedule for the acquisition of the 
        vaccines in accordance with the plan.
            (3) A discussion of the options considered for production 
        of the vaccines under subsection (b)(2)(B).
            (4) The Secretary's recommendations for the most 
        appropriate course of action to meet the requirements described 
        in subsection (b)(1), together with the justification for the 
        recommendations and the long-term cost of implementing the 
        recommendations.

SEC. 1026. EXTENSION OF TIMES FOR COMMISSION ON THE FUTURE OF THE 
              UNITED STATES AEROSPACE INDUSTRY TO REPORT AND TO 
              TERMINATE.

    (a) Submittal of Report.--Subsection (d) of section 1092 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-302) is 
amended by striking ``Not later than March 1, 2002,'' and inserting 
``Not later than one year after the date of its first meeting,''.
    (b) Termination.--Subsection (g) of such section is amended by 
striking ``30 days'' and inserting ``60 days''.

SEC. 1027. COMPTROLLER GENERAL STUDY AND REPORT ON INTERCONNECTIVITY OF 
              NATIONAL GUARD DISTRIBUTIVE TRAINING TECHNOLOGY PROJECT 
              NETWORKS AND RELATED PUBLIC AND PRIVATE NETWORKS.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study of the interconnectivity between the voice, data, 
and video networks of the National Guard Distributive Training 
Technology Project (DTTP) and other Department of Defense, Federal, 
State, and private voice, data, and video networks, including the 
networks of the distance learning project of the Army known as 
Classroom XXI, networks of public and private institutions of higher 
education, and networks of the Federal Emergency Management Agency and 
other Federal, State, and local emergency preparedness and response 
agencies.
    (b) Purposes.--The purposes of the study under subsection (a) are 
as follows:
            (1) To identify existing capabilities, and future 
        requirements, for transmission of voice, data, and video for 
        purposes of operational support of disaster response, homeland 
        defense, command and control of premobilization forces, 
        training of military personnel, training of first responders, 
        and shared use of the networks of the Distributive Training 
        Technology Project by government and members of the networks.
            (2) To identify appropriate connections between the 
        networks of the Distributive Training Technology Project and 
        networks of the Federal Emergency Management Agency, State 
        emergency management agencies, and other Federal and State 
        agencies having disaster response functions.
            (3) To identify requirements for connectivity between the 
        networks of the Distributive Training Technology Project and 
        other Department of Defense, Federal, State, and private 
        networks referred to in subsection (a) in the event of a 
        significant disruption of providers of public services.
            (4) To identify means of protecting the networks of the 
        Distributive Training Technology Project from outside 
        intrusion, including an assessment of the manner in which so 
        protecting the networks facilitates the mission of the National 
        Guard and homeland defense.
            (5) To identify impediments to interconnectivity between 
        the networks of the Distributive Training Technology Project 
        and such other networks.
            (6) To identify means of improving interconnectivity 
        between the networks of the Distributive Training Technology 
        Project and such other networks.
    (c) Particular Matters.--In conducting the study, the Comptroller 
General shall consider, in particular, the following:
            (1) Whether, and to what extent, national security concerns 
        impede interconnectivity between the networks of the 
        Distributive Training Technology Project and other Department 
        of Defense, Federal, State, and private networks referred to in 
        subsection (a).
            (2) Whether, and to what extent, limitations on the 
        technological capabilities of the Department of Defense impede 
        interconnectivity between the networks of the Distributive 
        Training Technology Project and such other networks.
            (3) Whether, and to what extent, other concerns or 
        limitations impede interconnectivity between the networks of 
        the Distributive Training Technology Project and such other 
        networks.
            (4) Whether, and to what extent, any national security, 
        technological, or other concerns justify limitations on 
        interconnectivity between the networks of the Distributive 
        Training Technology Project and such other networks.
            (5) Potential improvements in National Guard or other 
        Department technologies in order to improve interconnectivity 
        between the networks of the Distributive Training Technology 
        Project and such other networks.
    (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the study conducted under subsection (a). 
The report shall describe the results of the study, and include any 
recommendations that the Comptroller General considers appropriate in 
light of the study.

                Subtitle D--Armed Forces Retirement Home

SEC. 1041. AMENDMENT OF ARMED FORCES RETIREMENT HOME ACT OF 1991.

    Except as otherwise expressly provided, whenever in this subtitle 
an amendment or repeal is expressed in terms of an amendment to, or a 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Armed 
Forces Retirement Home Act of 1991 (title XV of Public Law 101-510; 24 
U.S.C. 401 et seq.).

SEC. 1042. DEFINITIONS.

    Section 1502 (24 U.S.C. 401) is amended--
            (1) by striking paragraphs (1), (2), (3), (4), and (5), and 
        inserting the following:
            ``(1) The term `Retirement Home' includes the institutions 
        established under section 1511, as follows:
                    ``(A) The Armed Forces Retirement Home--Washington.
                    ``(B) The Armed Forces Retirement Home--Gulfport.
            ``(2) The term `Local Board' means a Local Board of 
        Trustees established under section 1516.
            ``(3) The terms `Armed Forces Retirement Home Trust Fund' 
        and `Fund' mean the Armed Forces Retirement Home Trust Fund 
        established under section 1519(a).'';
            (2) by redesignating paragraphs (6), (7), and (8) as 
        paragraphs (4), (5), and (6); and
            (3) in paragraph (5), as so redesignated--
                    (A) in subparagraph (C), by striking ``, Manpower 
                and Personnel'' and inserting ``for Personnel''; and
                    (B) in subparagraph (D), by striking ``with 
                responsibility for personnel matters'' and inserting 
                ``for Manpower and Reserve Affairs''.

SEC. 1043. REVISION OF AUTHORITY ESTABLISHING THE ARMED FORCES 
              RETIREMENT HOME.

    Section 1511 (24 U.S.C. 411) is amended to read as follows:

``SEC. 1511. ESTABLISHMENT OF THE ARMED FORCES RETIREMENT HOME.

    ``(a) Independent Establishment.--The Armed Forces Retirement Home 
is an independent establishment in the executive branch.
    ``(b) Purpose.--The purpose of the Retirement Home is to provide, 
through the Armed Forces Retirement Home--Washington and the Armed 
Forces Retirement Home--Gulfport, residences and related services for 
certain retired and former members of the Armed Forces.
    ``(c) Facilities.--(1) Each facility of the Retirement Home 
referred to in paragraph (2) is a separate establishment of the 
Retirement Home.
    ``(2) The United States Soldiers' and Airmen's Home is hereby 
redesignated as the Armed Forces Retirement Home--Washington. The Naval 
Home is hereby redesignated as the Armed Forces Retirement Home--
Gulfport.
    ``(d) Operation.--(1) The Chief Operating Officer of the Armed 
Forces Retirement Home is the head of the Retirement Home. The Chief 
Operating Officer is subject to the authority, direction, and control 
of the Secretary of Defense.
    ``(2) Each facility of the Retirement Home shall be maintained as a 
separate establishment of the Retirement Home for administrative 
purposes and shall be under the authority, direction, and control of 
the Director of that facility. The Director of each facility of the 
Retirement Home is subject to the authority, direction, and control of 
the Chief Operating Officer.
    ``(e) Property and Facilities.--(1) The Retirement Home shall 
include such property and facilities as may be acquired under paragraph 
(2) or accepted under section 1515(f) for inclusion in the Retirement 
Home.
    ``(2) The Secretary of Defense may acquire, for the benefit of the 
Retirement Home, property and facilities for inclusion in the 
Retirement Home.
    ``(3) The Secretary of Defense may dispose of any property of the 
Retirement Home, by sale, lease, or otherwise, that the Secretary 
determines is excess to the needs of the Retirement Home. The proceeds 
from such a disposal of property shall be deposited in the Armed Forces 
Retirement Home Trust Fund. No such disposal of real property shall be 
effective earlier than 120 days after the date on which the Secretary 
transmits a notification of the proposed disposal to the Committees on 
Armed Services of the Senate and the House of Representatives.
    ``(f) Department of Defense Support.--The Secretary of Defense may 
make available from the Department of Defense to the Retirement Home, 
on a nonreimbursable basis, administrative support and office services, 
legal and policy planning assistance, access to investigative 
facilities of the Inspector General of the Department of Defense and of 
the military departments, and any other support necessary to enable the 
Retirement Home to carry out its functions under this title.
    ``(g) Accreditation.--The Chief Operating Officer shall endeavor to 
secure for each facility of the Retirement Home accreditation by a 
nationally recognized civilian accrediting organization, such as the 
Continuing Care Accreditation Commission and the Joint Commission for 
Accreditation of Health Organizations.
    ``(h) Annual Report.--The Secretary of Defense shall transmit to 
Congress an annual report on the financial and other affairs of the 
Retirement Home for each fiscal year.''.

SEC. 1044. CHIEF OPERATING OFFICER.

    (a) Establishment and Authority of Position.--Section 1515 (24 
U.S.C. 415) is amended to read as follows:

``SEC. 1515. CHIEF OPERATING OFFICER.

    ``(a) Appointment.--(1) The Secretary of Defense shall appoint the 
Chief Operating Officer of the Retirement Home. The Secretary of 
Defense may make the appointment without regard to the provisions of 
title 5, United States Code, governing appointments in the civil 
service.
    ``(2) The Chief Operating Officer shall serve at the pleasure of 
the Secretary of Defense.
    ``(3) The Secretary of Defense shall evaluate the performance of 
the Chief Operating Officer at least once each year.
    ``(b) Qualifications.--To qualify for appointment as the Chief 
Operating Officer, a person shall--
            ``(1) be a continuing care retirement community 
        professional;
            ``(2) have appropriate leadership and management skills; 
        and
            ``(3) have experience and expertise in the operation and 
        management of retirement homes and in the provision of long-
        term medical care for older persons.
    ``(c) Responsibilities.--(1) The Chief Operating Officer shall be 
responsible to the Secretary of Defense for the overall direction, 
operation, and management of the Retirement Home and shall report to 
the Secretary on those matters.
    ``(2) The Chief Operating Officer shall supervise the operation and 
administration of the Armed Forces Retirement Home--Washington and the 
Armed Forces Retirement Home--Gulfport, including the Local Boards of 
those facilities.
    ``(3) The Chief Operating Officer shall perform the following 
duties:
            ``(A) Issue, and ensure compliance with, appropriate rules 
        for the operation of the Retirement Home.
            ``(B) Periodically visit, and inspect the operation of, the 
        facilities of the Retirement Home.
            ``(C) Periodically examine and audit the accounts of the 
        Retirement Home.
            ``(D) Establish any advisory body or bodies that the Chief 
        Operating Officer considers to be necessary.
    ``(d) Compensation.--(1) The Secretary of Defense may prescribe the 
pay of the Chief Operating Officer without regard to the provisions of 
title 5, United States Code, governing classification and pay, except 
that the basic pay, including locality pay, of the Chief Operating 
Officer may not exceed the limitations established in section 5307 of 
such title.
    ``(2) In addition to basic pay and any locality pay prescribed for 
the Chief Operating Officer, the Secretary may award the Chief 
Operating Officer, not more than once each year, a bonus based on the 
performance of the Chief Operating Officer for the year. The Secretary 
shall prescribe the amount of any such bonus.
    ``(e) Administrative Staff.--(1) The Chief Operating Officer may, 
subject to the approval of the Secretary of Defense, appoint a staff to 
assist in the performance of the Chief Operating Officer's duties in 
the overall administration of the Retirement Home.
    ``(2) The Chief Operating Officer shall prescribe the rates of pay 
applicable to the members of the staff appointed under paragraph (1), 
without regard to the provisions of title 5, United States Code, 
regarding classification and pay, except that--
            ``(A) a staff member who is a member of the Armed Forces on 
        active duty or who is a full-time officer or employee of the 
        United States may not receive additional pay by reason of 
        service on the administrative staff; and
            ``(B) the limitations in section 5373 of title 5, United 
        States Code, relating to pay set by administrative action, 
        shall apply to the rates of pay prescribed under this 
        paragraph.
    ``(f) Acceptance of Gifts.--(1) The Chief Operating Officer may 
accept gifts of money, property, and facilities on behalf of the 
Retirement Home.
    ``(2) Monies received as gifts, or realized from the disposition of 
property and facilities received as gifts, shall be deposited in the 
Armed Forces Retirement Home Trust Fund.''.
    (b) Transfer of Authorities.--(1) The following provisions are 
amended by striking ``Retirement Home Board'' each place it appears and 
inserting ``Chief Operating Officer'':
            (A) Section 1512 (24 U.S.C. 412), relating to eligibility 
        and acceptance for residence in the Armed Forces Retirement 
        Home.
            (B) Section 1513(a) (24 U.S.C. 412(a)), relating to 
        services provided to residents of the Armed Forces Retirement 
        Home.
            (C) Section 1518(c) (24 U.S.C. 418(c)), relating to 
        inspection of the Armed Forces Retirement Home.
    (2) Section 1519(c) (24 U.S.C. 419(c)), relating to authority to 
invest funds in the Armed Forces Retirement Home Trust Fund, is amended 
by striking ``Director'' and inserting ``Chief Operating Officer''.
    (3) Section 1521(a) (24 U.S.C. 421(a)), relating to payment of 
residents for services, is amended by striking ``Chairman of the Armed 
Forces Retirement Board'' and inserting ``Chief Operating Officer''.
    (4) Section 1522 (24 U.S.C. 422), relating to authority to accept 
certain uncompensated services, is amended--
            (A) in subsection (a)--
                    (i) by striking ``Chairman of the Retirement Home 
                Board or the Director of each establishment'' and 
                inserting ``Chief Operating Officer or the Director of 
                a facility''; and
                    (ii) by striking ``unless'' and all that follows 
                through ``Retirement Home Board'';
            (B) in subsection (b)(1)--
                    (i) by striking ``Chairman of the Retirement Home 
                Board or the Director of the establishment'' and 
                inserting ``Chief Operating Officer or the Director of 
                a facility''; and
                    (ii) by inserting ``offering the services'' after 
                ``notify the person'';
            (C) in subsection (b)(2), by striking ``Chairman'' and 
        inserting ``Chief Operating Officer'';
            (D) in subsection (c), by striking ``Chairman of the 
        Retirement Home Board or the Director of an establishment'' and 
        inserting ``Chief Operating Officer or the Director of a 
        facility''; and
            (E) in subsection (e)--
                    (i) by striking ``Chairman of the Retirement Board 
                or the Director of the establishment'' in the first 
                sentence and inserting ``Chief Operating Officer or the 
                Director of a facility''; and
                    (ii) by striking ``Chairman'' in the second 
                sentence and inserting ``Chief Operating Officer''.
    (5) Section 1523(b) (24 U.S.C. 423(b)), relating to preservation of 
historic buildings and grounds at the Armed Forces Retirement Home--
Washington, is amended by striking ``Chairman of the Retirement Home 
Board'' and inserting ``Chief Operating Officer''.

SEC. 1045. RESIDENTS OF RETIREMENT HOME.

    (a) Repeal of Requirement of Resident To Reapply After Substantial 
Absence.--Subsection (e) of section 1512 (24 U.S.C. 412) is repealed.
    (b) Fees Paid by Residents.--Section 1514 (24 U.S.C. 414) is 
amended to read as follows:

``SEC. 1514. FEES PAID BY RESIDENTS.

    ``(a) Monthly Fees.--The Director of each facility of the 
Retirement Home shall collect a monthly fee from each resident of that 
facility.
    ``(b) Deposit of Fees.--The Directors shall deposit fees collected 
under subsection (a) in the Armed Forces Retirement Home Trust Fund.
    ``(c) Fixing Fees.--(1) The Chief Operating Officer, with the 
approval of the Secretary of Defense, shall from time to time prescribe 
the fees required by subsection (a). Changes to such fees shall be 
based on the financial needs of the Retirement Home and the ability of 
the residents to pay. A change of a fee may not take effect until 120 
days after the Secretary of Defense transmits a notification of the 
change to the Committees on Armed Services of the Senate and the House 
of Representatives.
    ``(2) The fee shall be fixed as a percentage of the monthly income 
and monthly payments (including Federal payments) received by a 
resident. The fee shall be subject to a limitation on maximum monthly 
amount. The percentage shall be the same for each facility of the 
Retirement Home. The Secretary of Defense may make any adjustment in a 
percentage or limitation on maximum amount that the Secretary 
determines appropriate.
    ``(d) Transitional Fee Structures.--(1) Until different fees are 
prescribed and take effect under subsection (c), the percentages and 
limitations on maximum monthly amount that are applicable to fees 
charged residents of the Retirement Home are (subject to any adjustment 
that the Secretary of Defense determines appropriate) as follows:
            ``(A) For months beginning before January 1, 2002--
                    ``(i) for a permanent health care resident, 65 
                percent (without limitation on maximum monthly amount); 
                and
                    ``(ii) for a resident who is not a permanent health 
                care resident, 40 percent (without limitation on 
                maximum monthly amount).
            ``(B) For months beginning after December 31, 2001--
                    ``(i) for an independent living resident, 35 
                percent, but not to exceed $1,000 each month;
                    ``(ii) for an assisted living resident, 40 percent, 
                but not to exceed $1,500 each month; and
                    ``(iii) for a long-term care resident, 65 percent, 
                but not to exceed $2,500 each month.
    ``(2) Notwithstanding the limitations on maximum monthly amount 
prescribed under subsection (c) or set forth in paragraph (1)(B), until 
an independent living resident or assisted living resident of the Armed 
Forces Retirement Home--Gulfport occupies a renovated room at that 
facility, as determined by the Secretary of Defense, the limitation on 
maximum monthly amount applicable to the resident for months beginning 
after December 31, 2001, shall be--
            ``(A) in the case of an independent living resident, $800; 
        and
            ``(B) in the case of an assisted living resident, $1,300.

SEC. 1046. LOCAL BOARDS OF TRUSTEES.

    Section 1516 (24 U.S.C. 416) is amended to read as follows:

``SEC. 1516. LOCAL BOARDS OF TRUSTEES.

    ``(a) Establishment.--Each facility of the Retirement Home shall 
have a Local Board of Trustees.
    ``(b) Duties.--The Local Board for a facility shall serve in an 
advisory capacity to the Director of the facility and to the Chief 
Operating Officer.
    ``(c) Composition.--(1) The Local Board for a facility shall 
consist of at least 11 members who (except as otherwise specifically 
provided) shall be appointed by the Secretary of Defense in 
consultation with each of the Secretaries of the military departments 
concerned. At least one member of the Local Board shall have a 
perspective that is oriented toward the Retirement Home overall. The 
Local Board for a facility shall consist of the following members:
            ``(A) One member who is a civilian expert in nursing home 
        or retirement home administration and financing from the 
        geographical area of the facility.
            ``(B) One member who is a civilian expert in gerontology 
        from the geographical area of the facility.
            ``(C) One member who is a service expert in financial 
        management.
            ``(D) One representative of the Department of Veterans 
        Affairs regional office nearest in proximity to the facility, 
        who shall be designated by the Secretary of Veterans Affairs.
            ``(E) One representative of the resident advisory committee 
        or council of the facility, who shall be a nonvoting member.
            ``(F) One enlisted representative of the Services' Retiree 
        Advisory Council.
            ``(G) The senior noncommissioned officer of one of the 
        Armed Forces.
            ``(H) One senior representative of the military hospital 
        nearest in proximity to the facility.
            ``(I) One senior judge advocate from one of the Armed 
        Forces.
            ``(J) The Director of the facility, who shall be a 
        nonvoting member.
            ``(K) One senior representative of one of the chief 
        personnel officers of the Armed Forces.
            ``(L) Other members designated by the Secretary of Defense 
        (if the Local Board is to have more than 11 members).
    ``(2) The Secretary of Defense shall designate one member of a 
Local Board to serve as the chairman of the Local Board at the pleasure 
of the Secretary of Defense.
    ``(d) Terms.--(1) Except as provided in subsections (e), (f), and 
(g), the term of office of a member of a Local Board shall be five 
years.
    ``(2) Unless earlier terminated by the Secretary of Defense, a 
person may continue to serve as a member of the Local Board after the 
expiration of the member's term until a successor is appointed or 
designated, as the case may be.
    ``(e) Early Expiration of Term.--A member of a Local Board who is a 
member of the Armed Forces or an employee of the United States serves 
as a member of the Local Board only for as long as the member is 
assigned to or serving in a position for which the duties include the 
duty to serve as a member of the Local Board.
    ``(f) Vacancies.--(1) A vacancy in the membership of a Local Board 
shall be filled in the manner in which the original appointment or 
designation was made, as the case may be.
    ``(2) A member appointed or designated to fill a vacancy occurring 
before the end of the term of the predecessor of the member shall be 
appointed or designated, as the case may be, for the remainder of the 
term for which the predecessor was appointed.
    ``(3) A vacancy in a Local Board shall not affect its authority to 
perform its duties.
    ``(g) Early Termination.--The Secretary of Defense may terminate 
the appointment of a member of a Local Board before the expiration of 
the member's term for any reason that the Secretary determines 
appropriate.
    ``(h) Compensation.--(1) Except as provided in paragraph (2), a 
member of a Local Board shall--
            ``(A) be provided a stipend consistent with the daily 
        government consultant fee for each day on which the member is 
        engaged in the performance of services for the Local Board; and
            ``(B) while away from home or regular place of business in 
        the performance of services for the Local Board, be allowed 
        travel expenses (including per diem in lieu of subsistence) in 
        the same manner as a person employed intermittently in 
        Government under sections 5701 through 5707 of title 5, United 
        States Code.
    ``(2) A member of a Local Board who is a member of the Armed Forces 
on active duty or a full-time officer or employee of the United States 
shall receive no additional pay by reason of serving a member of a 
Local Board.''.

SEC. 1047. DIRECTORS, DEPUTY DIRECTORS, AND STAFF OF FACILITIES.

    Section 1517 (24 U.S.C. 417) is amended to read as follows:

``SEC. 1517. DIRECTORS, DEPUTY DIRECTORS, AND STAFF OF FACILITIES.

    ``(a) Appointment.--The Secretary of Defense shall appoint a 
Director and a Deputy Director for each facility of the Retirement 
Home.
    ``(b) Director.--The Director of a facility shall--
            ``(1) be a member of the Armed Forces serving on active 
        duty in a grade above lieutenant colonel or commander;
            ``(2) have appropriate leadership and management skills; 
        and
            ``(3) be required to pursue a course of study to receive 
        certification as a retirement facilities director by an 
        appropriate civilian certifying organization, if the Director 
        is not so certified at the time of appointment.
    ``(c) Duties of Director.--(1) The Director of a facility shall be 
responsible for the day-to-day operation of the facility, including the 
acceptance of applicants to be residents of that facility.
    ``(2) The Director of a facility shall keep accurate and complete 
records of the facility.
    ``(d) Deputy Director.--(1) The Deputy Director of a facility 
shall--
            ``(A) be a civilian with experience as a continuing care 
        retirement community professional or a member of the Armed 
        Forces serving on active duty in a grade above major or 
        lieutenant commander; and
            ``(B) have appropriate leadership and management skills.
    ``(2) The Deputy Director of a facility shall--
            ``(A) be appointed without regard to the provisions of 
        title 5, United States Code, governing appointments in the 
        competitive service; and
            ``(B) serve at the pleasure of the Secretary of Defense, 
        without regard to the provisions of title 5, United States 
        Code.
    ``(e) Duties of Deputy Director.--The Deputy Director of a facility 
shall, under the authority, direction, and control of the Director of 
the facility, perform such duties as the Director may assign.
    ``(f) Staff.--(1) The Director of a facility may, subject to the 
approval of the Chief Operating Officer, appoint and prescribe the pay 
of such principal staff as the Director considers appropriate to assist 
the Director in operating the facility.
    ``(2) The principal staff of a facility shall include persons with 
experience and expertise in the operation and management of retirement 
homes and in the provision of long-term medical care for older persons.
    ``(3) The Director of a facility may exercise the authority under 
paragraph (1) without regard to the provisions of title 5, United 
States Code, governing appointments in the competitive service, 
classification, and pay, except that the limitations in section 5373 of 
such title (relating to pay set by administrative action) shall apply 
to the rates of pay prescribed under this paragraph.
    ``(g) Annual Evaluation of Directors.--(1) The Chief Operating 
Officer shall evaluate the performance of each of the Directors of the 
facilities of the Retirement Home each year.
    ``(2) The Chief Operating Officer shall submit to the Secretary of 
Defense any recommendations regarding a Director that the Chief 
Operating Officer determines appropriate taking into consideration the 
annual evaluation.''.

SEC. 1048. DISPOSITION OF EFFECTS OF DECEASED PERSONS AND UNCLAIMED 
              PROPERTY.

    (a) Legal Representation for Retirement Home.--Subsection (b)(2)(A) 
of section 1520 (24 U.S.C. 420) is amended by inserting ``who is a 
full-time officer or employee of the United States or a member of the 
Armed Forces on active duty'' after ``may designate an attorney''.
    (b) Correction of Reference.--Subsection (b)(1)(B) of such section 
is amended by inserting ``Armed Forces'' before ``Retirement Home Trust 
Fund''.

SEC. 1049. TRANSITIONAL PROVISIONS.

    Part B is amended by striking sections 1531, 1532, and 1533 and 
inserting the following:

``SEC. 1531. TEMPORARY CONTINUATION OF ARMED FORCES RETIREMENT HOME 
              BOARD.

    ``Until the Secretary of Defense appoints the first Chief Operating 
Officer after the enactment of the National Defense Authorization Act 
for Fiscal Year 2002, the Armed Forces Retirement Home Board, as 
constituted on the day before the date of the enactment of that Act, 
shall continue to serve and shall perform the duties of the Chief 
Operating Officer.

``SEC. 1532. TEMPORARY CONTINUATION OF DIRECTOR OF THE ARMED FORCES 
              RETIREMENT HOME--WASHINGTON.

    ``The person serving as the Director of the Armed Forces Retirement 
Home--Washington on the day before the enactment of the National 
Defense Authorization Act for Fiscal Year 2002 may continue to serve as 
the Director of that facility until April 2, 2002.

``SEC. 1533. TEMPORARY CONTINUATION OF INCUMBENT DEPUTY DIRECTORS.

    ``A person serving as the Deputy Director of a facility of the 
Retirement Home on the day before the enactment of the National Defense 
Authorization Act for Fiscal Year 2002 may continue to serve, at the 
pleasure of the Secretary of Defense, as the Deputy Director until the 
date on which a Deputy Director is appointed for that facility under 
section 1517, except that the service in that position may not continue 
under this section after December 31, 2004.''.

SEC. 1050. CONFORMING AND CLERICAL AMENDMENTS AND REPEALS OF OBSOLETE 
              PROVISIONS.

    (a) Conforming Amendments.--(1) Section 1513(b) (24 U.S.C. 413(b)), 
relating to services provided to residents of the Armed Forces 
Retirement Home, is amended by striking ``maintained as a separate 
establishment'' in the second sentence.
    (2) The heading for section 1519 (24 U.S.C. 419) is amended to read 
as follows:

``SEC. 1519. ARMED FORCES RETIREMENT HOME TRUST FUND.''.

    (3) Section 1520 (24 U.S.C. 420), relating to disposition of 
effects of deceased persons and unclaimed property, is amended--
            (A) in subsection (a), by striking ``each facility that is 
        maintained as a separate establishment'' and inserting ``a 
        facility'';
            (B) in subsection (b)(2)(A), by striking ``maintained as a 
        separate establishment''; and
            (C) in subsection (e), by striking ``Directors'' and 
        inserting ``Director of the facility''.
    (4)(A) Section 1523 (24 U.S.C. 423), relating to preservation of 
historic buildings and grounds at the Armed Forces Retirement Home--
Washington, is amended by striking ``United States Soldiers' and 
Airmen's Home'' each place it appears and inserting ``Armed Forces 
Retirement Home--Washington''.
    (B) The heading for such section is amended to read as follows:

``SEC. 1523. PRESERVATION OF HISTORIC BUILDINGS AND GROUNDS AT THE 
              ARMED FORCES RETIREMENT HOME--WASHINGTON.''.

    (5) Section 1524 (24 U.S.C. 424), relating to conditional 
supervisory control of the Retirement Home Board, is repealed.
    (b) Repeal of Obsolete Provisions.--The following provisions are 
repealed:
            (1) Section 1512(f) (24 U.S.C. 412(f)), relating to the 
        applicability of certain eligibility requirements.
            (2) Section 1519(d) (24 U.S.C. 419(d)), relating to 
        transitional accounts in the Armed Forces Retirement Home Trust 
        Fund.
            (3) Part C, relating to effective date and authorization of 
        appropriations.
    (c) Addition of Table of Contents.--Title XV of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 
Stat. 1722) is amended by inserting after the heading for such title 
the following:

``Sec. 1501. Short title.
``Sec. 1502. Definitions.
        ``Part A--Establishment and Operation of Retirement Home

``Sec. 1511. Establishment of the Armed Forces Retirement Home.
``Sec. 1512. Residents of Retirement Home.
``Sec. 1513. Services provided residents.
``Sec. 1514. Fees paid by residents.
``Sec. 1515. Chief Operating Officer.
``Sec. 1516. Local Boards of Trustees.
``Sec. 1517. Directors, Deputy Directors, and staff of facilities.
``Sec. 1518. Inspection of Retirement Home.
``Sec. 1519. Armed Forces Retirement Home Trust Fund.
``Sec. 1520. Disposition of effects of deceased persons; unclaimed 
                            property.
``Sec. 1521. Payment of residents for services.
``Sec. 1522. Authority to accept certain uncompensated services.
``Sec. 1523. Preservation of historic buildings and grounds at the 
                            Armed Forces Retirement Home--Washington.
                   ``Part B--Transitional Provisions

``Sec. 1531. Temporary Continuation of Armed Forces Retirement Home 
                            Board.
``Sec. 1532. Temporary Continuation of Director of the Armed Forces 
                            Retirement Home--Washington.
``Sec. 1533. Temporary Continuation of Incumbent Deputy Directors.''.

SEC. 1051. AMENDMENTS OF OTHER LAWS.

    (a) Employee Performance Appraisals.--Section 4301(2) of title 5, 
United States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (G);
            (2) by striking ``and'' at the end of subparagraph (H) and 
        inserting ``or''; and
            (3) by inserting at the end the following new subparagraph:
                    ``(I) the Chief Operating Officer and the Deputy 
                Directors of the Armed Forces Retirement Home; and''.
    (b) Exclusion of Certain Officers From Certain Limitations 
Applicable to General and Flag Officers on Active Duty.--(1) Section 
525 of title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(e) An officer while serving as a Director of the Armed Forces 
Retirement Home, if serving in the grade of major general or rear 
admiral, is in addition to the number that would otherwise be permitted 
for that officer's armed force for that grade under subsection (a).''.
    (2)(A) Section 526 of such title is amended by adding at the end 
the following new subsection:
    ``(e) Exclusion of Directors of Armed Forces Retirement Home.--The 
limitations of this section do not apply to a general or flag officer 
while the officer is assigned as the Director of a facility of the 
Armed Forces Retirement Home.''.
    (B) Subsection (d) of such section is amended by inserting 
``Reserve Component'' after ``Exclusion of Certain''.
    (3) Section 688(e)(2) of such title is amended by adding at the end 
the following new subparagraph:
            ``(D) A general officer or flag officer assigned as the 
        Director of a facility of the Armed Forces Retirement Home for 
        the period of active duty to which ordered.''.
    (4) Section 690 of title 10, United States Code, is amended--
            (A) in subsection (a)--
                    (i) by striking the second sentence and inserting 
                the following: ``The following officers are not counted 
                for the purposes of this subsection:''; and
                    (ii) by adding at the end the following:
            ``(1) A retired officer ordered to active duty for a period 
        of 60 days or less.
            ``(2) A general or flag officer who is assigned as the 
        Director of a facility of the Armed Forces Retirement Home for 
        the period of active duty to which ordered.''; and
            (B) in subsection (b), by adding at the end of paragraph 
        (2) the following new subparagraph:
            ``(E) A general officer or flag officer assigned as the 
        Director of a facility of the Armed Forces Retirement Home for 
        the period of active duty to which ordered.''.

                       Subtitle E--Other Matters

SEC. 1061. REQUIREMENT TO CONDUCT CERTAIN PREVIOUSLY AUTHORIZED 
              EDUCATIONAL PROGRAMS FOR CHILDREN AND YOUTH.

    (a) National Guard Challenge Program.--Section 509(a) of title 32, 
United States Code, is amended by striking ``The Secretary of Defense 
may'' and inserting ``The Secretary of Defense shall''.
    (b) STARBASE Program.--Section 2193b(a) of title 10, United States 
Code, is amended by striking ``The Secretary of Defense may'' and 
inserting ``The Secretary of Defense shall''.

SEC. 1062. AUTHORITY TO ENSURE DEMILITARIZATION OF SIGNIFICANT MILITARY 
              EQUIPMENT FORMERLY OWNED BY THE DEPARTMENT OF DEFENSE.

    (a) Prohibition.--It is unlawful for any person to possess 
significant military equipment formerly owned by the Department of 
Defense unless--
            (1) the military equipment has been demilitarized in 
        accordance with standards prescribed by the Secretary of 
        Defense;
            (2) the person is in possession of the military equipment 
        for the purpose of demilitarizing the equipment pursuant to a 
        Federal Government contract; or
            (3) the person is specifically authorized by law or 
        regulation to possess the military equipment.
    (b) Referral to Attorney General.--The Secretary of Defense shall 
notify the Attorney General of any potential violation of subsection 
(a) of which the Secretary becomes aware.
    (c) Authority To Require Demilitarization.--(1) The Attorney 
General may require any person who, in violation of subsection (a), is 
in possession of significant military equipment formerly owned by the 
Department of Defense--
            (A) to demilitarize the equipment;
            (B) to have the equipment demilitarized by a third party; 
        or
            (C) to return the equipment to the Federal Government for 
        demilitarization.
    (2) When the demilitarization of significant military equipment is 
carried out pursuant to subparagraph (A) or (B) of paragraph (1), an 
officer or employee of the United States designated by the Attorney 
General shall have the right to confirm, by inspection or other means 
authorized by the Attorney General, that the equipment has been 
demilitarized.
    (3) If significant military equipment is not demilitarized or 
returned to the Federal Government for demilitarization as required 
under paragraph (1) within a reasonable period after the Attorney 
General notifies the person in possession of the equipment of the 
requirement to do so, the Attorney General may request that a court of 
the United States issue a warrant authorizing the seizure of the 
military equipment in the same manner as is provided for a search 
warrant. If the court determines that there is probable cause to 
believe that the person is in possession of significant military 
equipment in violation of subsection (a), the court shall issue a 
warrant authorizing the seizure of such equipment.
    (d) Demilitarization of Equipment.--(1) The Attorney General shall 
transfer any military equipment returned to the Federal Government or 
seized pursuant to subsection (c) to the Department of Defense for 
demilitarization.
    (2) If the person in possession of significant military equipment 
obtained the equipment in accordance with any other provision of law, 
the Secretary of Defense shall bear all costs of transportation and 
demilitarization of the equipment and shall either--
            (A) return the equipment to the person upon completion of 
        the demilitarization; or
            (B) reimburse the person for the cost incurred by that 
        person to acquire the equipment if the Secretary determines 
        that the cost to demilitarize and return the property to the 
        person would be prohibitive.
    (e) Establishment of Demilitarization Standards.--(1) The Secretary 
of Defense shall prescribe regulations regarding the demilitarization 
of military equipment.
    (2) The regulations shall be designed to ensure that--
            (A) the equipment, after demilitarization, does not 
        constitute a significant risk to public safety and does not 
        have--
                    (i) a significant capability for use as a weapon; 
                or
                    (ii) a uniquely military capability; and
            (B) any person from whom private property is taken for 
        public use under this section receives just compensation for 
        the taking of the property.
    (3) The regulations shall, at a minimum, define--
            (A) the classes of significant military equipment requiring 
        demilitarization before disposal; and
            (B) what constitutes demilitarization for each class of 
        significant military equipment.
    (f) Definition of Significant Military Equipment.--In this section, 
the term ``significant military equipment'' means equipment that has a 
capability described in clause (i) or (ii) of subsection (e)(2) and--
            (1) is a defense article listed on the United States 
        Munitions List maintained under section 38 of the Arms Export 
        Control Act (22 U.S.C. 2778) that is designated on that list as 
        significant military equipment; or
            (2) is designated by the Secretary of Defense under the 
        regulations prescribed under subsection (e) as being equipment 
        that it is necessary in the interest of public safety to 
        demilitarize before disposal by the United States.

SEC. 1063. CONVEYANCES OF EQUIPMENT AND RELATED MATERIALS LOANED TO 
              STATE AND LOCAL GOVERNMENTS AS ASSISTANCE FOR EMERGENCY 
              RESPONSE TO A USE OR THREATENED USE OF A WEAPON OF MASS 
              DESTRUCTION.

    Section 1412(e) of the Defense Against Weapons of Mass Destruction 
Act of 1996 (title XIV of Public Law 104-201; 110 Stat. 2718; 50 U.S.C. 
2312(e)) is amended by adding at the end the following new paragraph:
            ``(5) A conveyance of ownership of United States property 
        to a State or local government, without cost and without regard 
        to subsection (f) and title II of the Federal Property and 
        Administrative Services Act of 1949 (or any other provision of 
        law relating to the disposal of property of the United States), 
        if the property is equipment, or equipment and related 
        materials, that is in the possession of the State or local 
        government on the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2002 pursuant to a loan of 
        the property as assistance under this section.''.

SEC. 1064. AUTHORITY TO PAY GRATUITY TO MEMBERS OF THE ARMED FORCES AND 
              CIVILIAN EMPLOYEES OF THE UNITED STATES FOR SLAVE LABOR 
              PERFORMED FOR JAPAN DURING WORLD WAR II.

    (a) Payment of Gratuity Authorized.--The Secretary of Veterans 
Affairs may pay a gratuity to a covered veteran or civilian internee, 
or to the surviving spouse of a covered veteran or civilian internee, 
in the amount of $20,000.
    (b) Covered Veteran or Civilian Internee Defined.--In this section, 
the term ``covered veteran or civilian internee'' means any individual 
who--
            (1) was a member of the Armed Forces, a civilian employee 
        of the United States, or an employee of a contractor of the 
        United States during World War II;
            (2) served in or with United States combat forces during 
        World War II;
            (3) was captured and held as a prisoner of war or prisoner 
        by Japan in the course of such service; and
            (4) was required by the Imperial Government of Japan, or 
        one or more Japanese corporations, to perform slave labor 
        during World War II.
    (c) Relationship to Other Payments.--Any amount paid a person under 
this section for activity described in subsection (b) is in addition to 
any other amount paid such person for such activity under any other 
provision of law.

SEC. 1065. RETENTION OF TRAVEL PROMOTIONAL ITEMS.

    (a) In General.--To the extent provided in subsection (b), a 
Federal employee, member of the foreign service, member of a uniformed 
service, any family member or dependent of such an employee or member, 
or other individual traveling at Government expense who receives a 
promotional item (including frequent flyer miles, upgrades, or access 
to carrier clubs or facilities) as a result of using travel or 
transportation services procured by the United States or accepted under 
section 1353 of title 31, United States Code, may retain the 
promotional item for personal use if the promotional item is obtained 
under the same terms as those offered to the general public and at no 
additional cost to the Government.
    (b) Applicability to Executive Branch Only.--Subsection (a)--
            (1) applies only to travel that is at the expense of the 
        executive branch; and
            (2) does not apply to travel by any officer, employee, or 
        other official of the Government outside the executive branch.
    (c) Conforming Amendment.--Section 6008 of the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103-355; 5 U.S.C. 5702 note) is 
amended by adding at the end the following new subsection:
    ``(d) Inapplicability to Executive Branch.--The guidelines issued 
under subsection (a) and the requirement under subsection (b) shall not 
apply to any agency of the executive branch or to any Federal employee 
or other personnel in the executive branch.''.
    (d) Applicability.--This section shall apply with respect to 
promotional items received before, on, or after the date of enactment 
of this Act.

SEC. 1066. RADIATION EXPOSURE COMPENSATION ACT MANDATORY 
              APPROPRIATIONS.

    Section 3(e) of the Radiation Exposure Compensation Act (42 U.S.C. 
2210 note) is amended to read as follows:
    ``(e) Appropriation.--
            ``(1) In general.--Subject to the limits in paragraph (2), 
        there are appropriated, out of any money in the Treasury not 
        otherwise appropriated, for the fiscal year 2002, and each 
        fiscal year thereafter through 2011, such sums as may be 
        necessary to the Fund for the purpose of making payments to 
        eligible beneficiaries under this Act.
            ``(2) Limitation.--Amounts appropriated pursuant to 
        paragraph (1) may not exceed--
                    ``(A) in fiscal year 2002, $172,000,000;
                    ``(B) in fiscal year 2003, $143,000,000;
                    ``(C) in fiscal year 2004, $107,000,000;
                    ``(D) in fiscal year 2005, $65,000,000;
                    ``(E) in fiscal year 2006, $47,000,000;
                    ``(F) in fiscal year 2007, $29,000,000;
                    ``(G) in fiscal year 2008, $29,000,000;
                    ``(H) in fiscal year 2009, $23,000,000;
                    ``(I) in fiscal year 2010, $23,000,000; and
                    ``(J) in fiscal year 2011, $17,000,000.''.

SEC. 1067. LEASING OF NAVY SHIPS FOR UNIVERSITY NATIONAL OCEANOGRAPHIC 
              LABORATORY SYSTEM.

    Subsection (g) of section 2667 of title 10, United States Code 
(section 1061, National Defense Authorization Act, 1998, P.L. 105-85) 
is amended by adding a new paragraph at the end as follows:
            ``(3) The requirements of paragraph (1) shall not apply to 
        renewals or extensions of a lease with a selected institution 
        for operation of a ship within the University National 
        Oceanographic Laboratory System, if--
                    ``(A) use of the ship is restricted to federally 
                supported research programs and non-Federal uses under 
                specific conditions with approval by the Secretary of 
                the Navy;
                    ``(B) because of the anticipated value to the Navy 
                of the oceanographic research and training that will 
                result from the ship's operation, no monetary lease 
                payments are required from the lessee under the initial 
                lease or under any renewals or extensions; and
                    ``(C) the lessee is required to maintain the ship 
                in a good state of repair readiness, and efficient 
                operating conditions, conform to all applicable 
                regulatory requirements, and assume full responsibility 
                for the safety of the ship, its crew, and scientific 
                personnel aboard.''.

SEC. 1068. SMALL BUSINESS PROCUREMENT COMPETITION.

    (a) Definition of Covered Contracts.--Section 15(e)(4) of the Small 
Business Act (15 U.S.C. 644(e)(4)) is amended--
            (1) by inserting after ``bundled contract'' the following: 
        ``, the aggregate dollar value of which is anticipated to be 
        less than $5,000,000, or any contract, whether or not the 
        contract is a bundled contract, the aggregate dollar value of 
        which is anticipated to be $5,000,000 or more'';
            (2) by striking ``In the'' and inserting the following:
                    ``(A) In general.--In the''; and
            (3) by adding at the end the following:
                    ``(B) Contracting goals.--
                            ``(i) In general.--A contract award under 
                        this paragraph to a team that is comprised 
                        entirely of small business concerns shall be 
                        counted toward the small business contracting 
                        goals of the contracting agency, as required by 
                        this Act.
                            ``(ii) Preponderance test.--The ownership 
                        of the small business that conducts the 
                        preponderance of the work in a contract awarded 
                        to a team described in clause (i) shall 
                        determine the category or type of award for 
                        purposes of meeting the contracting goals of 
                        the contracting agency.''.
    (b) Proportionate Work Requirements for Bundled Contracts.--
            (1) Section 8.--Section 8(a)(14)(A) of the Small Business 
        Act (15 U.S.C. 637(a)(14)(A)) is amended--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(iii) notwithstanding clauses (i) and (ii), in the case 
        of a bundled contract--
                    ``(I) the concern will perform work for at least 33 
                percent of the aggregate dollar value of the 
                anticipated award;
                    ``(II) no other concern will perform a greater 
                proportion of the work on that contract; and
                    ``(III) no other concern that is not a small 
                business concern will perform work on the contract.''.
            (2) Qualified hubzone small business concerns.--Section 
        3(p)(5)(A)(i)(III) of the Small Business Act (15 U.S.C. 
        632(p)(5)(A)(i)(III)) is amended--
                    (A) in item (bb), by striking ``and'' at the end;
                    (B) by redesignating item (cc) as item (dd); and
                    (C) by inserting after item (bb) the following:
                                            ``(cc) notwithstanding 
                                        items (aa) and (bb), in the 
                                        case of a bundled contract, the 
                                        concern will perform work for 
                                        at least 33 percent of the 
                                        aggregate dollar value of the 
                                        anticipated award, no other 
                                        concern will perform a greater 
                                        proportion of the work on that 
                                        contract, and no other concern 
                                        that is not a small business 
                                        concern will perform work on 
                                        the contract; and''.
            (3) Section 15.--Section 15(o)(1) of the Small Business Act 
        (15 U.S.C. 644(o)(1)) is amended--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(C) notwithstanding subparagraphs (A) and (B), in the 
        case of a bundled contract--
                    ``(i) the concern will perform work for at least 33 
                percent of the aggregate dollar value of the 
                anticipated award;
                    ``(ii) no other concern will perform a greater 
                proportion of the work on that contract; and
                    ``(iii) no other concern that is not a small 
                business concern will perform work on the contract.''.
    (c) Small Business Procurement Competition Pilot Program.--
            (1) Definitions.--In this subsection--
                    (A) the term ``Administrator'' means the 
                Administrator of the Small Business Administration;
                    (B) the term ``Federal agency'' has the same 
                meaning as in section 3 of the Small Business Act (15 
                U.S.C. 632);
                    (C) the term ``Program'' means the Small Business 
                Procurement Competition Program established under 
                paragraph (2);
                    (D) the term ``small business concern'' has the 
                same meaning as in section 3 of the Small Business Act 
                (15 U.S.C. 632); and
                    (E) the term ``small business-only joint ventures'' 
                means a team described in section 15(e)(4) of the Small 
                Business Act (15 U.S.C. 644(e)(4)) comprised of only 
                small business concerns.
            (2) Establishment of program.--The Administrator shall 
        establish in the Small Business Administration a pilot program 
        to be known as the ``Small Business Procurement Competition 
        Program''.
            (3) Purposes of program.--The purposes of the Program are--
                    (A) to encourage small business-only joint ventures 
                to compete for contract awards to fulfill the 
                procurement needs of Federal agencies;
                    (B) to facilitate the formation of joint ventures 
                for procurement purposes among small business concerns;
                    (C) to engage in outreach to small business-only 
                joint ventures for Federal agency procurement purposes; 
                and
                    (D) to engage in outreach to the Director of the 
                Office of Small and Disadvantaged Business Utilization 
                and the procurement officer within each Federal agency.
            (4) Outreach.--Under the Program, the Administrator shall 
        establish procedures to conduct outreach to small business 
        concerns interested in forming small business-only joint 
        ventures for the purpose of fulfilling procurement needs of 
        Federal agencies, subject to the rules of the Administrator, in 
        consultation with the heads of those Federal agencies.
            (5) Regulatory authority.--The Administrator shall 
        promulgate such regulations as may be necessary to carry out 
        this subsection.
            (6) Small business administration database.--The 
        Administrator shall establish and maintain a permanent database 
        that identifies small business concerns interested in forming 
        small business-only joint ventures, and shall make the database 
        available to each Federal agency and to small business concerns 
        in electronic form to facilitate the formation of small 
        business-only joint ventures.
            (7) Termination of program.--The Program (other than the 
        database established under paragraph (6)) shall terminate 3 
        years after the date of enactment of this Act.
            (8) Report to congress.--Not later than 60 days before the 
        date of termination of the Program, the Administrator shall 
        submit a report to Congress on the results of the Program, 
        together with any recommendations for improvements to the 
        Program and its potential for use Governmentwide.
            (9) Relationship to other laws.--Nothing in this subsection 
        waives or modifies the applicability of any other provision of 
        law to procurements of any Federal agency in which small 
        business-only joint ventures may participate under the Program.

SEC. 1069. CHEMICAL AND BIOLOGICAL PROTECTIVE EQUIPMENT FOR MILITARY 
              AND CIVILIAN PERSONNEL OF THE DEPARTMENT OF DEFENSE.

    (a) Report Required.--(1) Not later than 120 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the requirements of the Department of Defense, 
including the reserve components, for chemical and biological 
protective equipment.
    (2) The report shall set forth the following:
            (A) A description of any current shortfalls in requirements 
        for chemical and biological protective equipment, whether for 
        individuals or units, for military personnel.
            (B) A plan for providing appropriate chemical and 
        biological protective equipment for all military personnel and 
        for all civilian personnel of the Department of Defense.
            (C) An assessment of the costs associated with carrying out 
        the plan under subparagraph (B).
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense should consider utilizing funds available to the 
Secretary for chemical and biological defense programs, including funds 
available for such program under this Act and funds available for such 
programs under the 2001 Emergency Supplemental Appropriations Act for 
Recovery from and Response to Terrorist Attacks on the United States, 
to provide an appropriate level of protection from chemical and 
biological attack, including protective equipment, for all military 
personnel and for all civilian personnel of the Department of Defense 
who are not currently protected from chemical or biological attack.

SEC. 1070. AUTHORIZATION OF THE SALE OF GOODS AND SERVICES BY THE NAVAL 
              MAGAZINE, INDIAN ISLAND.

    The Secretary of the Navy may sell to a person outside the 
Department of Defense articles and services provided by the Naval 
Magazine, Indian Island facility that are not available from any United 
States commercial source: Provided, That a sale pursuant to this 
section shall conform to the requirements of section 2563 (c) and (d) 
of title 10, United States Code: Provided further, That the proceeds 
from the sales of articles and services under this section shall be 
credited to operation and maintenance funds of the Navy, that are 
current when the proceeds are received.

SEC. 1071. ASSISTANCE FOR FIREFIGHTERS.

    Section 33(e) of the Federal Fire Prevention and Control Act of 
1974 (15 U.S.C. 2229(e)) is amended by striking paragraph (2) and 
inserting the following new paragraphs:
            ``(2) $600,000,000 for fiscal year 2002.
            ``(3) $800,000,000 for fiscal year 2003.
            ``(4) $1,000,000,000 for fiscal year 2004.''.

SEC. 1072. PLAN TO ENSURE EMBARKATION OF CIVILIAN GUESTS DOES NOT 
              INTERFERE WITH OPERATIONAL READINESS AND SAFE OPERATION 
              OF NAVY VESSELS.

    (a) Plan.--The Secretary of the Navy shall, not later than February 
1, 2002, submit to Congress a plan to ensure that the embarkation of 
selected civilian guests does not interfere with the operational 
readiness and safe operation of Navy vessels. The plan shall include, 
at a minimum--
            (1) procedures to ensure that guest embarkations are 
        conducted only within the framework of regularly scheduled 
        operations and that underway operations are not conducted 
        solely to accommodate nonofficial civilian guests,
            (2) guidelines for the maximum number of guests that can be 
        embarked on the various classes of Navy vessels,
            (3) guidelines and procedures for supervising civilians 
        operating or controlling any equipment on Navy vessels,
            (4) guidelines to ensure that proper standard operating 
        procedures are not hindered by activities related to hosting 
        civilians,
            (5) any other guidelines or procedures the Secretary shall 
        consider necessary or appropriate.
    (b) Definition.--For the purposes of this section, civilian guests 
are defined as civilians invited to embark on Navy ships solely for the 
purpose of furthering public awareness of the Navy and its mission. It 
does not include civilians conducting official business.

SEC. 1073. MODERNIZING AND ENHANCING MISSILE WING HELICOPTER SUPPORT--
              STUDY AND PLAN.

    (a) Report and Recommendations.--With the submission of the fiscal 
year 2003 budget request, the Secretary of Defense shall provide to the 
congressional defense committees a report and the Secretary's 
recommendations on options for providing the helicopter support 
missions for the ICBM wings at Minot AFB, North Dakota; Malmstrom AFB, 
Montana; and F.E. Warren AFB, Wyoming, for as long as these missions 
are required.
    (b) Options.--Options to be reviewed include--
            (1) the Air Force's current plan for replacement or 
        modernization of UH-1N helicopters currently flown by the Air 
        Force at the missile wings;
            (2) replacement of the UH-1N helicopters currently flown by 
        the Air Force with UH-60 Black Hawk helicopters, the UH-1Y, or 
        another platform;
            (3) replacement of UH-1N helicopters with UH-60 helicopters 
        and transition of the mission to the Army National Guard, as 
        detailed in a November 2000 Air Force Space Command/Army 
        National Guard plan, ``ARNG Helicopter Support to Air Force 
        Space Command'';
            (4) replacement of UH-1N helicopters with UH-60 helicopters 
        or another platform, and establishment of composite units 
        combining active duty Air Force and Army National Guard 
        personnel; and
            (5) other options as the Secretary deems appropriate.
    (c) Factors.--Factors to be considered in this analysis include--
            (1) any implications of transferring the helicopter support 
        missions on the command and control of and responsibility for 
        missile field force protection;
            (2) current and future operational requirements, and the 
        capabilities of the UH-1N, the UH-60 or other aircraft to meet 
        them;
            (3) cost, with particular attention to opportunities to 
        realize efficiencies over the long run;
            (4) implications for personnel training and retention; and
            (5) evaluation of the assumptions used in the plan 
        specified in subsection (b)(3).
    (d) Consideration.--The Secretary shall consider carefully the 
views of the Secretary of the Army, Secretary of the Air Force, 
Commander in Chief of the United States Strategic Command, and the 
Chief of the National Guard Bureau.

SEC. 1074. SENSE OF THE SENATE THAT THE SECRETARY OF THE TREASURY 
              SHOULD IMMEDIATELY ISSUE SAVINGS BONDS, TO BE DESIGNATED 
              AS ``UNITY BONDS'', IN RESPONSE TO THE TERRORIST ATTACKS 
              AGAINST THE UNITED STATES ON SEPTEMBER 11, 2001.

    (a) Findings.--The Senate finds that--
            (1) a national tragedy occurred on September 11, 2001, 
        whereby enemies of freedom and democracy attacked the United 
        States of America and injured or killed thousands of innocent 
        victims;
            (2) the perpetrators of these reprehensible attacks 
        destroyed brick and mortar buildings, but the American spirit 
        and the American people have become stronger as they have 
        united in defense of their country;
            (3) the American people have responded with incredible acts 
        of heroism, kindness, and generosity;
            (4) the outpouring of volunteers, blood donors, and 
        contributions of food and money demonstrates that America will 
        unite to provide relief to the victims of these cowardly 
        terrorist acts;
            (5) the American people stand together to resist all 
        attempts to steal their freedom; and
            (6) united, Americans will be victorious over their 
        enemies, whether known or unknown.
    (b) Sense of the Senate.--It is the sense of the Senate that--
            (1) the Secretary of the Treasury should--
                    (A) immediately issue savings bonds, to be 
                designated as ``Unity Bonds''; and
                    (B) report quarterly to Congress on the revenue 
                raised from the sale of Unity Bonds; and
            (2) the proceeds from the sale of Unity Bonds should be 
        directed to the purposes of rebuilding America and fighting the 
        war on terrorism.

SEC. 1075. PERSONNEL PAY AND QUALIFICATIONS AUTHORITY FOR DEPARTMENT OF 
              DEFENSE PENTAGON RESERVATION CIVILIAN LAW ENFORCEMENT AND 
              SECURITY FORCE.

    Section 2674(b) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before the text in the first 
        paragraph of that subsection;
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively; and
            (3) by adding at the end the following new paragraph:
    ``(2) For positions whose permanent duty station is the Pentagon 
Reservation, the Secretary, in his sole and exclusive discretion, may 
without regard to the pay provisions of title 5, fix the rates of basic 
pay for such positions occupied by civilian law enforcement and 
security personnel appointed under the authority of this section so as 
to place such personnel on a comparable basis with other similar 
Federal law enforcement and security organizations within the vicinity 
of the Pentagon Reservation, not to exceed basic pay for personnel 
performing similar duties in the Uniformed Division of the Secret 
Service or the Park Police.

SEC. 1076. WAIVER OF VEHICLE WEIGHT LIMITS DURING PERIODS OF NATIONAL 
              EMERGENCY.

    Section 127 of title 23, United States Code, is amended by adding 
at the end the following:
    ``(h) Waiver for a Route in State of Maine During Periods of 
National Emergency.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the Secretary, in consultation with the Secretary 
        of Defense, may waive or limit the application of any vehicle 
        weight limit established under this section with respect to the 
        portion of Interstate Route 95 in the State of Maine between 
        Augusta and Bangor for the purpose of making bulk shipments of 
        jet fuel to the Air National Guard Base at Bangor International 
        Airport during a period of national emergency in order to 
        respond to the effects of the national emergency.
            ``(2) Applicability.--Emergency limits established under 
        paragraph (1) shall preempt any inconsistent State vehicle 
        weight limits.''.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

                   Subtitle A--Intelligence Personnel

SEC. 1101. AUTHORITY TO INCREASE MAXIMUM NUMBER OF POSITIONS IN THE 
              DEFENSE INTELLIGENCE SENIOR EXECUTIVE SERVICE.

    Section 1606(a) of title 10, United States Code, is amended by 
striking ``517.'' and inserting the following: ``517, except that the 
Secretary may increase such maximum number by one position for each 
Senior Intelligence Service position in the Central Intelligence Agency 
that is permanently eliminated by the Director of Central Intelligence 
after the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2002. In no event may the number of positions in 
the Defense Intelligence Senior Executive Service exceed 544.''.

SEC. 1102. CONTINUED APPLICABILITY OF CERTAIN CIVIL SERVICE PROTECTIONS 
              FOR EMPLOYEES INTEGRATED INTO THE NATIONAL IMAGERY AND 
              MAPPING AGENCY FROM THE DEFENSE MAPPING AGENCY.

    Section 1612(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4)(A) If not otherwise applicable to an employee described in 
subparagraph (B), subchapters II and IV of chapter 75 of title 5 shall 
continue to apply to the employee for as long as the employee serves on 
and after October 1, 1996, without a break in service, as an employee 
of the Department of Defense in any position, or successively in two or 
more positions, in the National Imagery and Mapping Agency.
    ``(B) This paragraph applies to a person who--
            ``(i) on September 30, 1996, was employed as an employee of 
        the Department of Defense in a position in the Defense Mapping 
        Agency to whom subchapters II and IV of title 5 applied; and
            ``(ii) on October 1, 1996, became an employee of the 
        National Imagery and Mapping Agency under paragraph 1601(a) of 
        this title.''.

               Subtitle B--Matters Relating to Retirement

SEC. 1111. FEDERAL EMPLOYMENT RETIREMENT CREDIT FOR NONAPPROPRIATED 
              FUND INSTRUMENTALITY SERVICE.

    (a) Civil Service Retirement System.--(1) Section 8332(b) of title 
5, United States Code, is amended--
            (A) by striking ``and'' at the end of paragraph (15);
            (B) by striking the period at the end of paragraph (16) and 
        inserting ``; and'';
            (C) by inserting after paragraph (16) the following new 
        paragraph:
            ``(17) service performed by any individual as an employee 
        of a nonappropriated fund instrumentality of the Department of 
        Defense or the Coast Guard described in section 2105(c) of this 
        title that is not covered by paragraph (16), if the individual 
        elects (in accordance with regulations prescribed by the 
        Office) at the time of separation from service to have such 
        service credited under this paragraph.'';
            (D) in the last sentence, by inserting ``or (17)'' after 
        ``service of the type described in paragraph (16)''; and
            (E) by inserting after the last sentence the following: 
        ``Service credited under paragraph (17) may not also be 
        credited under any other retirement system provided for 
        employees of a nonappropriated fund instrumentality.''.
    (2) Section 8334 of such title is amended by adding at the end the 
following new subsection:
    ``(o) Notwithstanding subsection (c), no deposit may be made with 
respect to service credited under section 8332(b)(17) of this title.''.
    (3) Section 8339 of such title is amended by adding at the end the 
following new subsection:
    ``(u) The annuity of an employee retiring under this subchapter 
with service credited under section 8332(b)(17) of this title shall be 
reduced to the maximum amount necessary to ensure that the present 
value of the annuity payable to the employee is actuarially equivalent 
to the present value of the annuity that would be payable to the 
employee under this subchapter if it were computed on the basis of 
service that does not include service credited under section 
8332(b)(17) of this title. The amount of the reduction shall be 
computed under regulations prescribed by the Office of Personnel 
Management for the administration of this subsection.''.
    (b) Federal Employees' Retirement System.--(1) Section 8411 of such 
title is amended--
            (A) in subsection (b)--
                    (i) by striking ``and'' at the end of paragraph 
                (4);
                    (ii) by striking the period at the end of paragraph 
                (5) and inserting ``; and''; and
                    (iii) by inserting after paragraph (5) the 
                following new paragraph:
            ``(6) service performed by any individual as an employee of 
        a nonappropriated fund instrumentality of the Department of 
        Defense or the Coast Guard described in section 2105(c) of this 
        title, if the individual elects (in accordance with regulations 
        prescribed by the Office) at the time of separation from 
        service to have such service credited under this paragraph.''; 
        and
            (B) by adding at the end the following new subsection:
    ``(k)(1) The Office of Personnel Management shall accept, for the 
purposes if this chapter, the certification of the head of a 
nonappropriated fund instrumentality of the United States concerning 
service of the type described in subsection (b)(6) that was performed 
for such nonappropriated fund instrumentality.
    ``(2) Service credited under subsection (b)(6) may not also be 
credited under any other retirement system provided for employees of a 
nonappropriated fund instrumentality.''.
    (2)(A) Section 8422 of such title is amended by adding at the end 
the following new subsection:
    ``(g) No deposit may be made with respect to service credited under 
section 8411(b)(6) of this title.''.
    (B) The heading for such section is amended to read as follows:
``Sec. 8422. Deductions from pay; contributions for other service''.
    (C) The item relating to such section in the table of contents at 
the beginning of chapter 84 of title 5, United States Code, is amended 
to read as follows:

``8422. Deductions from pay; contributions for other service.''.
    (3) Section 8415 of such title is amended by adding at the end the 
following new subsection:
    ``(j) The annuity of an employee retiring under this chapter with 
service credited under section 8411(b)(6) of this title shall be 
reduced to the maximum amount necessary to ensure that the present 
value of the annuity payable to the employee under this subchapter is 
actuarially equivalent to the present value of the annuity that would 
be payable to the employee under this subchapter if it were computed on 
the basis of service that does not include service credited under 
section 8411(b)(6) of this title. The amount of the reduction shall be 
computed under regulations prescribed by the Office of Personnel 
Management for the administration of this subsection.''.
    (c) Applicability.--The amendments made by this section shall apply 
only to separations from service as an employee of the United States on 
or after the date of the enactment of this Act.

SEC. 1112. IMPROVED PORTABILITY OF RETIREMENT COVERAGE FOR EMPLOYEES 
              MOVING BETWEEN CIVIL SERVICE EMPLOYMENT AND EMPLOYMENT BY 
              NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Civil Service Retirement System.--Section 8347(q) of title 5, 
United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
            (2) in paragraph (2)(B)--
                    (A) by striking ``vested''; and
                    (B) by striking ``, as the term'' and all that 
                follows through ``such system''.
    (b) Federal Employees' Retirement System.--Section 8461(n) of such 
title is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
            (2) in paragraph (2)(B)--
                    (A) by striking ``vested''; and
                    (B) by striking ``, as the term'' and all that 
                follows through ``such system''.

SEC. 1113. REPEAL OF LIMITATIONS ON EXERCISE OF VOLUNTARY SEPARATION 
              INCENTIVE PAY AUTHORITY AND VOLUNTARY EARLY RETIREMENT 
              AUTHORITY.

    Section 1153(b) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-323) is amended--
            (1) in paragraph (1), by striking ``Subject to paragraph 
        (2), the'' and inserting ``The'';
            (2) by striking paragraph (2); and
            (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively.

                       Subtitle C--Other Matters

SEC. 1121. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR THE CORPS OF CADETS 
              AT THE UNITED STATES MILITARY ACADEMY.

    Section 4337 of title 10, United States Code, is amended by 
striking the second sentence and inserting the following: ``The 
chaplain is entitled to a housing allowance equal to the basic 
allowance for housing that is applicable for an officer in pay grade O-
5 at the Academy under section 403 of title 37, and to fuel and light 
for quarters in kind.''.

SEC. 1122. STUDY OF ADEQUACY OF COMPENSATION PROVIDED FOR TEACHERS IN 
              THE DEPARTMENT OF DEFENSE OVERSEAS DEPENDENTS' SCHOOLS.

    (a) Requirement for Study.--The Comptroller General shall carry out 
a study of the adequacy of the pay and other elements of the 
compensation provided for teachers in the defense dependents' education 
system established under the Defense Dependents' Education Act of 1978 
(20 U.S.C. 921 et seq.).
    (b) Specific Considerations.--In carrying out the study, the 
Comptroller General shall consider the following issues:
            (1) Whether the compensation is adequate for recruiting and 
        retaining high quality teachers.
            (2) Whether any revision of the Defense Department Overseas 
        Teachers Pay and Personnel Practices Act (20 U.S.C. 901 et seq) 
        or the regulations under that Act is advisable to address any 
        problems identified with respect to the recruitment and 
        retention of high quality teachers or for other purposes.
    (c) Report.--The Comptroller General shall submit a report on the 
results of the study to Congress not later than March 1, 2002. The 
report shall include the following:
            (1) The Comptroller General's conclusions on the issues 
        considered.
            (2) Any recommendations for actions that the Comptroller 
        General considers appropriate.

SEC. 1123. PILOT PROGRAM FOR PAYMENT OF RETRAINING EXPENSES INCURRED BY 
              EMPLOYERS OF PERSONS INVOLUNTARILY SEPARATED FROM 
              EMPLOYMENT BY THE DEPARTMENT OF DEFENSE.

    (a) Authority.--The Secretary of Defense may carry out a pilot 
program in accordance with this section to facilitate the reemployment 
of employees of the Department of Defense who are being separated as 
described in subsection (b) by providing employers outside the Federal 
Government with retraining incentive payments to encourage those 
employers to hire, train, and retain such employees.
    (b) Covered Employees.--A retraining incentive payment may be made 
under subsection (c) with respect to a person who--
            (1) has been involuntarily separated from employment by the 
        United States due to--
                    (A) a reduction in force (within the meaning of 
                chapter 35 of title 5, United States Code); or
                    (B) a relocation resulting from a transfer of 
                function (within the meaning of section 3503 of title 
                5, United States Code), realignment, or change of duty 
                station; and
            (2) when separated--
                    (A) was employed without time limitation in a 
                position in the Department of Defense;
                    (B) had been employed in such position or any 
                combination of positions in the Department of Defense 
                for a continuous period of at least one year;
                    (C) was not a reemployed annuitant under subchapter 
                III of chapter 83 of title 5, United States Code, 
                chapter 84 of such title, or another retirement system 
                for employees of the Federal Government;
                    (D) was not eligible for an immediate annuity under 
                subchapter III of chapter 83 of title 5, United States 
                Code, or subchapter II of chapter 84 of such title; and
                    (E) was not eligible for disability retirement 
                under any of the retirement systems referred to in 
                subparagraph (C).
    (c) Retraining Incentive.--(1) Under the pilot program, the 
Secretary may pay a retraining incentive to any person outside the 
Federal Government that, pursuant to an agreement entered into under 
subsection (d), employs a former employee of the United States referred 
to in subsection (b).
    (2) For employment of a former employee that is continuous for one 
year, the amount of any retraining incentive paid to the employer under 
paragraph (1) shall be the lesser of--
            (A) the amount equal to the total cost incurred by the 
        employer for any necessary training provided to the former 
        employee in connection with the employment by that employer, as 
        determined by the Secretary taking into consideration a 
        certification by the employer under subsection (d); or
            (B) $10,000.
    (3) For employment of a former employee that terminates within one 
year after the employment begins, the amount of any retraining 
incentive paid to the employer under paragraph (1) shall be equal to 
the amount that bears the same ratio to the amount computed under 
paragraph (2) as the period of continuous employment of the employee by 
that employer bears to one year.
    (4) The cost of the training of a former employee of the United 
States for which a retraining incentive is paid to an employer under 
this subsection may include any cost incurred by the employer for 
training that commenced for the former employee after the former 
employee, while still employed by the Department of Defense, received a 
notice of the separation from employment by the United States.
    (5) Not more than one retraining incentive may be paid with respect 
to a former employee under this subsection.
    (d) Employer Agreement.--Under the pilot program, the Secretary 
shall enter into an agreement with an employer outside the Federal 
Government that provides for the employer--
            (1) to employ a person described in subsection (b) for at 
        least one year for a salary or rate of pay that is mutually 
        agreeable to the employer and such person; and
            (2) to certify to the Secretary the cost incurred by the 
        employer for any necessary training provided to such person in 
        connection with the employment of the person by that employer.
    (e) Necessary Training.--For the purposes of this section, the 
necessity of training provided a former employee of the Department of 
Defense shall be determined under regulations prescribed by the 
Secretary of Defense for the administration of this section.
    (f) Termination of Pilot Program.--No retraining incentive may be 
paid under this section for training commenced after September 30, 
2005.

SEC. 1124. PARTICIPATION OF PERSONNEL IN TECHNICAL STANDARDS 
              DEVELOPMENT ACTIVITIES.

    Subsection (d) of section 12 of the National Technology Transfer 
and Advancement Act of 1995 (109 Stat. 783; 15 U.S.C. 272 note) is 
amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
            ``(4) Expenses of government personnel.--Section 5946 of 
        title 5, United States Code, shall not apply with respect to 
        any activity of an employee of a Federal agency or department 
        that is determined by the head of that agency or department as 
        being an activity undertaken in carrying out this 
        subsection.''.

SEC. 1125. AUTHORITY TO EXEMPT CERTAIN HEALTH CARE PROFESSIONALS FROM 
              EXAMINATION FOR APPOINTMENT IN THE COMPETITIVE CIVIL 
              SERVICE.

    (a) Authority To Exempt.--Chapter 81 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 1599d. Appointment in competitive civil service of certain 
              health care professionals: exemption from examination
    ``(a) Authority To Exempt.--The Secretary of Defense may appoint in 
the competitive civil service without regard to the provisions of 
subchapter I of chapter 33 of title 5 (other than sections 3303, 3321, 
and 3328 of such title) an individual who has a recognized degree or 
certificate from an accredited institution in a covered health-care 
profession or occupation.
    ``(b) Covered Health-Care Profession or Occupation.--For purposes 
of subsection (a), a covered health-care profession or occupation is 
any of the following:
            ``(1) Physician.
            ``(2) Dentist.
            ``(3) Podiatrist.
            ``(4) Optometrist.
            ``(5) Pharmacist.
            ``(6) Nurse.
            ``(7) Physician assistant.
            ``(8) Audiologist.
            ``(9) Expanded-function dental auxiliary.
            ``(10) Dental hygienist.
    ``(c) Preferences in Hiring.--In using the authority provided by 
this section, the Secretary shall apply the principles of preference 
for the hiring of veterans and other persons established in subchapter 
I of chapter 33 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:

``1599d. Appointment in competitive civil service of certain health 
                            care professionals: exemption from 
                            examination.''.

SEC. 1126. PROFESSIONAL CREDENTIALS.

    (a) In General.--Chapter 57 of title 5, United States Code, as 
amended by this Act, is amended by adding at the end the following:
``Sec. 5758. Expenses for credentials
    ``(a) An agency may use appropriated or other available funds to 
pay for--
            ``(1) employee credentials, including professional 
        accreditation, State-imposed and professional licenses, and 
        professional certifications; and
            ``(2) examinations to obtain such credentials.
    ``(b) No authority under subsection (a) may be exercised on behalf 
of any employee occupying or seeking to qualify for appointment to any 
position which is excepted from the competitive service because of its 
confidential, policy-determining, policy-making, or policy-advocating 
character.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 57 of title 5, United States Code, is amended by adding at the 
end the following:

``5758. Expenses for credentials.''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

  Subtitle A--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note).
    (b) Fiscal Year 2002 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2002 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1202. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $403,000,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2002 in 
section 301(23) for Cooperative Threat Reduction programs, not more 
than the following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $133,405,000.
            (2) For strategic nuclear arms elimination in Ukraine, 
        $51,500,000.
            (3) For weapons of mass destruction infrastructure 
        elimination in Ukraine, $6,024,000.
            (4) For weapons of mass destruction infrastructure 
        elimination in Kazakhstan, $6,000,000.
            (5) For weapons transportation security in Russia, 
        $9,500,000.
            (6) For weapons storage security in Russia, $56,000,000.
            (7) For implementation of a cooperative program with the 
        Government of Russia to eliminate the production of weapons 
        grade plutonium at Russian reactors, $41,700,000.
            (8) For biological weapons proliferation prevention 
        activities in the former Soviet Union, $17,000,000.
            (9) For chemical weapons destruction in Russia, 
        $50,000,000.
            (10) For activities designated as Other Assessments/
        Administrative Support, $13,221,000.
            (11) For defense and military contacts, $18,650,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2002 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (11) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the 
amount of funds to be obligated or expended. Nothing in the preceding 
sentence shall be construed as authorizing the obligation or 
expenditure of fiscal year 2002 Cooperative Threat Reduction funds for 
a purpose for which the obligation or expenditure of such funds is 
specifically prohibited under this title or any other provision of law.
    (c) Limited Authority To Vary Individual Amounts.--(1) Subject to 
paragraph (2), in any case in which the Secretary of Defense determines 
that it is necessary to do so in the national interest, the Secretary 
may obligate amounts appropriated for fiscal year 2002 for a purpose 
listed in any of the paragraphs in subsection (a) in excess of the 
amount specifically authorized for such purpose.
    (2) An obligation of funds for a purpose stated in any of the 
paragraphs in subsection (a) in excess of the specific amount 
authorized for such purpose may be made using the authority provided in 
paragraph (1) only after--
            (A) the Secretary submits to Congress notification of the 
        intent to do so together with a complete discussion of the 
        justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts for the purposes stated in paragraph 
(7), (10) or (11) of subsection (a) in excess of 115 percent of the 
amount specifically authorized for such purposes.

SEC. 1203. CHEMICAL WEAPONS DESTRUCTION.

    Section 1305 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C. 5952 note) is 
amended--
            (1) by inserting ``(a) Limitation.--'' before ``No fiscal 
        year'';
            (2) in subsection (a), as so designated, by inserting 
        before the period at the end the following: ``until the 
        Secretary of Defense submits to Congress a certification that 
        there has been--
            ``(1) full and accurate disclosure by Russia of the size of 
        its existing chemical weapons stockpile;
            ``(2) a demonstrated annual commitment by Russia to 
        allocate at least $25,000,000 to chemical weapons elimination;
            ``(3) development by Russia of a practical plan for 
        destroying its stockpile of nerve agents;
            ``(4) enactment of a law by Russia that provides for the 
        elimination of all nerve agents at a single site;
            ``(5) an agreement by Russia to destroy or convert its 
        chemical weapons production facilities at Volgograd and 
        Novocheboksark; and
            ``(6) a demonstrated commitment from the international 
        community to fund and build infrastructure needed to support 
        and operate the facility.''; and
            (3) by adding at the end the following new subsection:
    ``(b) Omission of Certain Information.--The Secretary may omit from 
the certification under subsection (a) the matter specified in 
paragraph (1) of that subsection, and the certification with the matter 
so omitted shall be effective for purposes of that subsection, if the 
Secretary includes with the certification notice to Congress of a 
determination by the Secretary that it is not in the national security 
interests of the United States for the matter specified in that 
paragraph to be included in the certification, together with a 
justification of the determination.''.

SEC. 1204. MANAGEMENT OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Authority over Management.--The Secretary of Defense shall have 
authority, direction, and control over the management of Cooperative 
Threat Reduction programs and the funds for such programs.
    (b) Implementing Agent.--The Defense Threat Reduction Agency shall 
be the implementing agent of the Department of Defense for the 
functions of the Department relating to Cooperative Threat Reduction 
programs.
    (c) Specification of Funds in Department of Defense Budget.--The 
budget justification materials submitted to Congress in support of the 
budget of the Department of Defense for each fiscal year (as submitted 
with the budget of the President under section 1105(a) of title 31, 
United States Code) shall include amounts, if any, requested for such 
fiscal year for Cooperative Threat Reduction programs.

SEC. 1205. ADDITIONAL MATTER IN ANNUAL REPORT ON ACTIVITIES AND 
              ASSISTANCE UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.

    Section 1308(c) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (at enacted by Public Law 106-
398; 114 Stat. 1654A-341) is amended by adding at the end of the 
following new paragraph:
            ``(6) A description of the amount of the financial 
        commitment from the international community, and from Russia, 
        for the chemical weapons destruction facility located at 
        Shchuch'ye, Russia, for the fiscal year beginning in the year 
        in which the report is submitted.''.

                       Subtitle B--Other Matters

SEC. 1211. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND 
              MONITOR IRAQI WEAPONS ACTIVITIES.

    (a) Limitation on Amount of Assistance in Fiscal Year 2002--The 
total amount of the assistance for fiscal year 2002 that is provided by 
the Secretary of Defense under section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the 
Department of Defense in support of activities under that Act may not 
exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f) 
of section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(22 U.S.C. 5859a) is amended by striking ``2001'' and inserting 
``2002''.

SEC. 1212. COOPERATIVE RESEARCH AND DEVELOPMENT PROJECTS WITH NATO AND 
              OTHER COUNTRIES.

    (a) Eligibility of Friendly Foreign Countries.--Section 2350a of 
title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' after ``(a) Authority To 
                Engage in Cooperative R&D Projects.--';
                    (B) by striking ``major allies of the United States 
                or NATO organizations'' and inserting ``countries or 
                organizations referred to in paragraph (2)''; and
                    (C) by adding at the end the following new 
                paragraph:
    ``(2) The countries and organizations with which the Secretary may 
enter into a memorandum of agreement (or other formal agreement) under 
paragraph (1) are as follows:
            ``(A) The North Atlantic Treaty Organization.
            ``(B) A NATO organization.
            ``(C) A member nation of the North Atlantic Treaty 
        Organization.
            ``(D) A major non-NATO ally.
            ``(E) Any other friendly foreign country.'';
            (2) in subsection (b), by striking ``its major non-NATO 
        allies'' and inserting ``a country or organization referred to 
        in subsection (a)(2)'';
            (3) in subsection (d)--
                    (A) in paragraph (1), by striking ``the major 
                allies of the United States'' and inserting ``countries 
                and organizations referred to in subsection (a)(2)''; 
                and
                    (B) in paragraph (2)--
                            (i) by striking ``major ally of the United 
                        States'' and inserting ``country or 
                        organization referred to in subsection 
                        (a)(2)''; and
                            (ii) by striking ``ally's'' and inserting 
                        ``country's or organization's'';
            (4) in subsection (e)(2)--
                    (A) in subparagraph (A), by striking ``one or more 
                of the major allies of the United States'' and 
                inserting ``any country or organization referred to in 
                subsection (a)(2)'';
                    (B) in subparagraph (B), by striking ``major allies 
                of the United States or NATO organizations'' and 
                inserting ``countries and organizations referred to in 
                subsection (a)(2)'';
                    (C) in subparagraph (C), by striking ``major allies 
                of the United States'' and inserting ``countries and 
                organizations referred to in subsection (a)(2)''; and
                    (D) in subparagraph (D), by striking ``major allies 
                of the United States'' and inserting ``countries and 
                organizations referred to in subsection (a)(2)'';
            (5) paragraphs (1)(A) and (4)(A) of subsection (g), by 
        striking ``major allies of the United States and other friendly 
        foreign countries'' and inserting ``countries referred to in 
        subsection (a)(2)''; and
            (6) in subsection (i)--
                    (A) in paragraph (1), by striking ``major allies of 
                the United States or NATO organizations'' and inserting 
                ``countries and organizations referred to in subsection 
                (a)(2)'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (4) as paragraph 
                (2), and by transferring that paragraph, as so 
                redesignated, within that subsection and inserting the 
                paragraph after paragraph (1).
    (b) Delegation of Authority To Determine Eligibility of Projects.--
Subsection (b)(2) of such section is amended by striking ``or the Under 
Secretary of Defense for Acquisition and Technology'' and inserting 
``and to one other official of the Department of Defense''.
    (c) Revision of Requirement for Annual Report on Eligible 
Countries.--Subsection (f)(2) of such section is amended to read as 
follows:
    ``(2) Not later than January 1 of each year, the Secretary of 
Defense shall submit to the Committees on Armed Services and on Foreign 
Relations of the Senate and to the Committees on Armed Services and on 
International Relations of the House of Representatives a report 
specifying--
            ``(A) the countries that are eligible to participate in a 
        cooperative project agreement under this section; and
            ``(B) the criteria used to determine the eligibility of 
        such countries.''.
    (d) Conforming Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 2350a. Cooperative research and development agreements: NATO and 
              foreign countries''.
    (2) The item relating to such section in the table of sections at 
the beginning of subchapter II of chapter 138 of title 10, United 
States Code, is amended to read as follows:

``2350a. Cooperative research and development agreements: NATO and 
                            foreign countries.''.

SEC. 1213. INTERNATIONAL COOPERATIVE AGREEMENTS ON USE OF RANGES AND 
              OTHER FACILITIES FOR TESTING OF DEFENSE EQUIPMENT.

    (a) Authority.--Chapter 138 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2350l. Cooperative use of ranges and other facilities for 
              testing of defense equipment: agreements with foreign 
              countries and international organizations
    ``(a) Authority.--The Secretary of Defense, with the concurrence of 
the Secretary of State, may enter into a memorandum of understanding 
(or other formal agreement) with a foreign country or international 
organization to provide reciprocal access by the United States and such 
country or organization to each other's ranges and other facilities for 
testing of defense equipment.
    ``(b) Payment of Costs.--A memorandum or other agreement entered 
into under subsection (a) shall include provisions for charging a user 
of a range or other facility for test and evaluation services furnished 
by the officers, employees, or governmental agencies of the supplying 
country or international organization under the memorandum or other 
agreement. The provisions for charging a user shall conform to the 
following pricing principles:
            ``(1) The user shall be charged the amount equal to the 
        direct costs incurred by the country or international 
        organization to supply the services.
            ``(2) The user may also be charged indirect costs of the 
        use of the range or other facility, but only to the extent 
        specified in the memorandum or other agreement.
    ``(c) Retention of Funds Collected by the United States.--Amounts 
collected from the user of a range or other facility of the United 
States under a memorandum of understanding or other formal agreement 
entered into under subsection (a) shall be credited to the 
appropriation from which the costs incurred by the United States in 
providing support for the use of the range or other facility by that 
user were paid.
    ``(d) Delegation of Authority.--The Secretary of Defense may 
delegate only to the Deputy Secretary of Defense and to one other 
official of the Department of Defense authority to determine the 
appropriateness of the amount of indirect costs charged the United 
States under a memorandum or other agreement entered into under 
subsection (a).
    ``(e) Definitions.--In this section:
            ``(1) The term `direct cost', with respect to testing and 
        evaluation under a memorandum or other agreement entered into 
        under subsection (a)--
                    ``(A) means any item of cost that--
                            ``(i) is easily and readily identified to a 
                        specific unit of work or output within the 
                        range or other facility where the testing and 
                        evaluation occurred under the memorandum or 
                        other agreement; and
                            ``(ii) would not have been incurred if the 
                        testing and evaluation had not taken place; and
                    ``(B) may include costs of labor, materials, 
                facilities, utilities, equipment, supplies, and any 
                other resources of the range or other facility that are 
                consumed or damaged in connection with--
                            ``(i) the conduct of the test and 
                        evaluation; or
                            ``(ii) the maintenance of the range or 
                        other facility for the use of the country or 
                        international organization under the memorandum 
                        or other agreement.
            ``(2) The term `indirect cost', with respect to testing and 
        evaluation under a memorandum or other agreement entered into 
        under subsection (a)--
                    ``(A) means any item of cost that cannot readily be 
                identified directly to a specific unit of work or 
                output; and
                    ``(B) may include general and administrative 
                expenses for such activities as supporting base 
                operations, manufacturing, supervision, procurement of 
                office supplies, and utilities that are accumulated 
                costs allocated among several users.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2350l. Cooperative use of ranges and other facilities for testing of 
                            defense equipment: agreements with foreign 
                            countries and international 
                            organizations.''.

SEC. 1214. CLARIFICATION OF AUTHORITY TO FURNISH NUCLEAR TEST 
              MONITORING EQUIPMENT TO FOREIGN GOVERNMENTS.

    (a) Redesignation of Existing Authority.--(1) Section 2555 of title 
10, United States Code, as added by section 1203 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as enacted by 
Public Law 106-398; 114 Stat. 1654A-324), is redesignated as section 
2565 of that title.
    (2) The table of sections at the beginning of chapter 152 of that 
title is amended by striking the item relating to section 2555, as so 
added, and inserting the following new item:

``2565. Nuclear test monitoring equipment: furnishing to foreign 
                            governments.''.
    (b) Clarification of Authority.--Section 2565 of that title, as so 
redesignated by subsection (a), is further amended--
            (1) in subsection (a)--
                    (A) by striking ``Convey or'' in the subsection 
                heading and inserting ``Transfer Title to or 
                Otherwise'';
                    (B) in paragraph (1)--
                            (i) by striking ``convey'' and inserting 
                        ``transfer title''; and
                            (ii) by striking ``and'' at the end;
                    (C) by striking the period at the end of paragraph 
                (2) and inserting ``; and''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(3) inspect, test, maintain, repair, or replace any such 
        equipment.''; and
            (2) in subsection (b)--
                    (A) by striking ``conveyed or otherwise provided'' 
                and inserting ``provided to a foreign government'';
                    (B) by inserting ``and'' at the end of paragraph 
                (1);
                    (C) by striking ``; and'' at the end of paragraph 
                (2) and inserting a period; and
                    (D) by striking paragraph (3).

SEC. 1215. PARTICIPATION OF GOVERNMENT CONTRACTORS IN CHEMICAL WEAPONS 
              INSPECTIONS AT UNITED STATES GOVERNMENT FACILITIES UNDER 
              THE CHEMICAL WEAPONS CONVENTION.

    (a) Authority.--Section 303(b)(2) of the Chemical Weapons 
Convention Implementation Act of 1998 (22 U.S.C. 6723(b)(2)) is amended 
by inserting after ``designation of employees of the Federal 
Government'' the following: ``(and, in the case of an inspection of a 
United States Government facility, the designation of contractor 
personnel who shall be led by an employee of the Federal Government)''.
    (b) Credentials.--Section 304(c) of such Act (22 U.S.C. 6724(c)) is 
amended by striking ``Federal government'' and inserting ``Federal 
Government (and, in the case of an inspection of a United States 
Government facility, any accompanying contractor personnel)''.

SEC. 1216. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN 
              COUNTRIES.

    (a) Transfers by Grant.--The President is authorized to transfer 
vessels to foreign countries on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
            (1) Poland.--To the Government of Poland, the OLIVER HAZARD 
        PERRY class guided missile frigate WADSWORTH (FFG 9).
            (2) Turkey.--To the Government of Turkey, the KNOX class 
        frigates CAPODANNO (FF 1093), THOMAS C. HART (FF 1092), DONALD 
        B. BEARY (FF 1085), McCANDLESS (FF 1084), REASONER (FF 1063), 
        and BOWEN (FF 1079).
    (b) Transfers by Sale.--The President is authorized to transfer 
vessels to foreign governments and foreign governmental entities on a 
sale basis under section 21 of the Arms Export Control Act (22 U.S.C. 
2761) as follows:
            (1) Taiwan.--To the Taipei Economic and Cultural 
        Representative Office in the United States (which is the Taiwan 
        instrumentality designated pursuant to section 10(a) of the 
        Taiwan Relations Act), the KIDD class guided missile destroyers 
        KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 995), and 
        CHANDLER (DDG 996).
            (2) Turkey.--To the Government of Turkey, the OLIVER HAZARD 
        PERRY class guided missile frigates ESTOCIN (FFG 15) and SAMUEL 
        ELIOT MORISON (FFG 13).
    (c) Additional Congressional Notification Not Required.--Except as 
provided in subsection (d), the following provisions do not apply with 
respect to transfers authorized by this section:
            (1) Section 516(f) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2321j(f)).
            (2) Section 524 of the Foreign Operations, Export 
        Financing, and Related Programs Appropriation Act, 2001 (as 
        enacted by Public Law 106-429; 114 Stat. 1900A-30) and any 
        similar successor provision.
    (d) Grants Not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of a vessel transferred to another country 
on a grant basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a) 
shall not be counted for the purposes of subsection (g) of that section 
in the aggregate value of excess defense articles transferred to 
countries under that section in any fiscal year.
    (e) Costs of Transfers on Grant Basis.--Any expense incurred by the 
United States in connection with a transfer authorized by this section 
shall be charged to the recipient (notwithstanding section 516(e)(1) of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case 
of a transfer authorized to be made on a grant basis under subsection 
(a).
    (f) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the President shall require, as a condition 
of the transfer of a vessel under this section, that the country to 
which the vessel is transferred have such repair or refurbishment of 
the vessel as is needed, before the vessel joins the naval forces of 
that country, performed at a shipyard located in the United States, 
including a United States Navy shipyard.
    (g) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the 2-year period 
beginning on the date of the enactment of this Act.

SEC. 1217. ACQUISITION OF LOGISTICAL SUPPORT FOR SECURITY FORCES.

    Section 5 of the Multinational Force and Observers Participation 
Resolution (22 U.S.C. 3424) is amended by adding at the end the 
following new subsection:
    ``(d)(1) The United States may use contractors to provide 
logistical support to the Multinational Force and Observers under this 
section in lieu of providing such support through a logistical support 
unit composed of members of the United States Armed Forces.
    ``(2) Notwithstanding subsections (a) and (b) and section 7(b), 
support by a contractor under this subsection may be provided without 
reimbursement whenever the President determines that such action 
enhances or supports the national security interests of the United 
States.''.

SEC. 1218. PERSONAL SERVICES CONTRACTS TO BE PERFORMED BY INDIVIDUALS 
              OR ORGANIZATIONS ABROAD.

    Section 2 of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2669) is amended by adding at the end the following:
            ``(n) exercise the authority provided in subsection (c), 
        upon the request of the Secretary of Defense or the head of any 
        other department or agency of the United States, to enter into 
        personal service contracts with individuals to perform services 
        in support of the Department of Defense or such other 
        department or agency, as the case may be.''.

SEC. 1219. ALLIED DEFENSE BURDENSHARING.

    It is the sense of the Senate that--
            (1) the efforts of the President to increase defense 
        burdendsharing by allied and friendly nations deserve strong 
        support;
            (2) host nations support agreements with those nations in 
        which United States military personnel are assigned to 
        permanent duty ashore should be negotiated consistent with 
        section 1221(a)(1) of the National Defense Authorization Act 
        for Fiscal Year 1998 (P.L. 105-85) which sets forth a goal of 
        obtaining financial contributions from host nations that amount 
        to 75 percent of the nonpersonnel costs incurred by the United 
        States Government for stationing military personnel in those 
        nations.

SEC. 1220. RELEASE OF RESTRICTION ON USE OF CERTAIN VESSELS PREVIOUSLY 
              AUTHORIZED TO BE SOLD.

    Section 3603(a) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
2273) is amended by striking ``for full use as an oiler''.

         TITLE XIII--CONTINGENT AUTHORIZATION OF APPROPRIATIONS

SEC. 1301. AUTHORIZATION OF APPROPRIATIONS CONTINGENT ON INCREASED 
              ALLOCATION OF NEW BUDGET AUTHORITY.

    (a) In General.--Notwithstanding any other provision of this Act, 
the total amounts authorized to be appropriated under subtitle A of 
title I, sections 201, 301, and 302, and division B are authorized to 
be appropriated in accordance with those provisions without reduction 
under section 1302 only if--
            (1) the Chairman of the Committee on the Budget of the 
        Senate--
                    (A) determines, for the purposes of section 217(b) 
                of the Concurrent Resolution on the Budget for Fiscal 
                Year 2002, that the appropriation of all of the amounts 
                specified in section 1302 would not, when taken 
                together with all other previously enacted legislation 
                (except for legislation enacted pursuant to section 211 
                of such concurrent resolution) reduce the on-budget 
                surplus below the level of the Medicare Hospital 
                Insurance Trust Fund surplus in any fiscal year covered 
                by the concurrent resolution; and
                    (B) increases the allocation of new budget 
                authority for defense spending in accordance with 
                section 217(a) of the Concurrent Resolution on the 
                Budget for Fiscal Year 2002; or
            (2) the Senate--
                    (A) by a vote of at least three-fifths of the 
                Members of the Senate duly chosen and sworn, waives the 
                point of order under section 302(f) of the 
                Congressional Budget and Impoundment Control Act of 
                1974 with respect to an appropriation bill or 
                resolution that provides new budget authority for the 
                National Defense major functional category (050) in 
                excess of the amount specified for the defense category 
                in section 203(c)(1)(A) of the Concurrent Resolution on 
                the Budget for Fiscal Year 2002; and
                    (B) approves the appropriation bill or resolution.
    (b) Full or Partial Authorization.--(1) If the total amount of the 
new budget authority allocated or available for the National Defense 
major functional category (050) for fiscal year 2002 is increased as 
described in subsection (a) by at least $18,448,601,000 over the amount 
of the new budget authority allocated for that category for fiscal year 
2002 by the Concurrent Resolution on the Budget for Fiscal Year 2002, 
the reductions under section 1302 shall not be made.
    (2) If the total amount of new budget authority allocated or 
available for the National Defense major functional category (050) for 
fiscal year 2002 is increased as described in subsection (a) by less 
than $18,448,601,000 over the amount of the new budget authority 
allocated for that category for fiscal year 2002 by the Concurrent 
Resolution on the Budget for Fiscal Year 2002, each of the total 
amounts referred to in section 1302 shall be reduced by a proportionate 
amount of the difference between $18,448,601,000 and the amount of the 
increase in the allocated new budget authority.

SEC. 1302. REDUCTIONS.

    Until such time as the amount of the new budget authority allocated 
or available for the National Defense major functional category (050) 
for fiscal year 2002 is increased as described in section 1301(a), the 
total amounts authorized to be appropriated by provisions of this Act 
are reduced as follows:
            (1) For the total amount authorized to be appropriated for 
        procurement by subtitle A of title I, the reduction is 
        $2,100,854,000.
            (2) For the total amount authorized to be appropriated for 
        research, development, test and evaluation by section 201, the 
        reduction is $3,033,434,000.
            (3) For the total amount authorized to be appropriated for 
        operation and maintenance by section 301, the reduction is 
        $8,737,773,000.
            (4) For the total amount authorized to be appropriated for 
        working capital and revolving funds by section 302, the 
        reduction is $1,018,394,000.
            (5) For the total amount authorized to be appropriated by 
        division B, the reduction is $348,065,000.

SEC. 1303. REFERENCE TO CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 
              YEAR 2002.

    For the purposes of this title, a reference to the Concurrent 
Resolution on the Budget for Fiscal Year 2002 is a reference to House 
Concurrent Resolution 83 (107th Congress, 1st session).

            Passed the Senate October 2, 2001.

            Attest:

                                                             Secretary.
107th CONGRESS

  1st Session

                                S. 1419

_______________________________________________________________________

                                 AN ACT

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