    [Congressional Bills 107th Congress]
    [From the U.S. Government Publishing Office]
    [S. 1438 Enrolled Bill (ENR)]

            S.1438

                          One Hundred Seventh Congress

                                     of the

                            United States of America

                              AT THE FIRST SESSION

             Begun and held at the City of Washington on Wednesday,
                 the third day of January, two thousand and one

                                     An Act

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

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

    SECTION 1. SHORT TITLE.

        This Act may be cited as the ``National Defense Authorization Act
    for Fiscal Year 2002''.
    SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.
        (a) Divisions.--This Act is organized into three divisions as
    follows:
            (1) Division A--Department of Defense Authorizations.
            (2) Division B--Military Construction Authorizations.
            (3) Division C--Department of Energy National Security
        Authorizations and Other Authorizations.
        (b) Table of Contents.--The table of contents for this Act is as
    follows:
    Sec. 1. Short title.
    Sec. 2. Organization of Act into divisions; table of contents.
    Sec. 3. Congressional defense committees defined.

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

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

                            Subtitle C--Navy Programs

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

                         Subtitle D--Air Force Programs

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

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

                   Subtitle A--Authorization of Appropriations

    Sec. 201. Authorization of appropriations.
    Sec. 202. Amount for basic and applied research.
    Sec. 203. Supplemental authorization of appropriations for fiscal year
              2001 for research, development, test, and evaluation, Defense-
              wide.

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

                      Subtitle C--Ballistic Missile Defense

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

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

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

                            Subtitle E--Other Matters

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

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

    Sec. 301. Operation and maintenance funding.
    Sec. 302. Working capital funds.
    Sec. 303. Armed Forces Retirement Home.
    Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
    Sec. 305. Funds for renovation of Department of Veterans Affairs
              facilities adjacent to Naval Training Center, Great Lakes,
              Illinois.
    Sec. 306. Defense Language Institute Foreign Language Center expanded
              Arabic language program.

                      Subtitle B--Environmental Provisions

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

       Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

                     Subtitle D--Workforce and Depot Issues

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

                    Subtitle E--Defense Dependents Education

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

                            Subtitle F--Other Matters

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

                   TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

    Sec. 401. End strengths for active forces.
    Sec. 402. Revision in permanent end strength minimum levels.
    Sec. 403. Increase in senior enlisted active duty grade limit for Navy,
              Marine Corps, and Air Force.

                           Subtitle B--Reserve Forces

    Sec. 411. End strengths for Selected Reserve.
    Sec. 412. End strengths for Reserves on active duty in support of the
              reserves.
    Sec. 413. End strengths for military technicians (dual status).
    Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.
    Sec. 415. Limitations on numbers of reserve personnel serving on active
              duty or full-time National Guard duty in certain grades for
              administration of reserve components.

            Subtitle C--Other Matters Relating to Personnel Strengths

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

                   Subtitle D--Authorization of Appropriations

    Sec. 431. Authorization of appropriations for military personnel.

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

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

                 Subtitle B--Reserve Component Personnel Policy

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

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

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

                   Subtitle D--Military Education and Training

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

                  Subtitle E--Recruiting and Accession Programs

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

           Subtitle F--Decorations, Awards, and Posthumous Commissions

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

                         Subtitle G--Funeral Honors Duty

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

                 Subtitle H--Military Spouses and Family Members

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

            Subtitle I--Military Justice and Legal Assistance Matters

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

                            Subtitle J--Other Matters

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

               TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

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

               Subtitle B--Bonuses and Special and Incentive Pays

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

                Subtitle C--Travel and Transportation Allowances

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

               Subtitle D--Retirement and Survivor Benefit Matters

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

                            Subtitle E--Other Matters

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

                        TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--TRICARE Program Improvements

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

                         Subtitle B--Senior Health Care

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

                         Subtitle C--Studies and Reports

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

                            Subtitle D--Other Matters

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

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

              Subtitle A--Procurement Management and Administration

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

                      Subtitle B--Use of Preferred Sources

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

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

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

                            Subtitle D--Other Matters

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

           TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

                          Subtitle B--Space Activities

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

                               Subtitle C--Reports

    Sec. 921. Revised requirement for Chairman of the Joint Chiefs of Staff
              to advise Secretary of Defense on the assignment of roles and
              missions to the Armed Forces.
    Sec. 922. Revised requirements for content of annual report on joint
              warfighting experimentation.
    Sec. 923. Repeal of requirement for one of three remaining required
              reports on activities of Joint Requirements Oversight Council.
    Sec. 924. Revised joint report on establishment of national
              collaborative information analysis capability.

                            Subtitle D--Other Matters

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

                           TITLE X--GENERAL PROVISIONS

                          Subtitle A--Financial Matters

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

                     Subtitle B--Naval Vessels and Shipyards

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

                       Subtitle C--Counter-Drug Activities

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

                          Subtitle D--Strategic Forces

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

               Subtitle E--Other Department of Defense Provisions

    Sec. 1041. Secretary of Defense recommendation on need for Department of
    Defense review of proposed Federal agency actions to consider possible
    impact on national defense.
    Sec. 1042. Department of Defense reports to Congress to be accompanied
    by electronic version upon request.
    Sec. 1043. Department of Defense gift authorities.
    Sec. 1044. Acceleration of research, development, and production of
    medical countermeasures for defense against biological warfare agents.
    Sec. 1045. Chemical and biological protective equipment for military
    personnel and civilian employees of the Department of Defense.
    Sec. 1046. Sale of goods and services by Naval Magazine, Indian Island,
    Alaska.
    Sec. 1047. Report on procedures and guidelines for embarkation of
    civilian guests on naval vessels for public affairs purposes.
    Sec. 1048. Technical and clerical amendments.
    Sec. 1049. Termination of referendum requirement regarding continuation
    of military training on island of Vieques, Puerto Rico, and imposition
    of additional conditions on closure of live-fire training range.

                            Subtitle F--Other Matters

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

                      TITLE XI--CIVILIAN PERSONNEL MATTERS

              Subtitle A--Department of Defense Civilian Personnel

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

               Subtitle B--Civilian Personnel Management Generally

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

                   Subtitle C--Intelligence Civilian Personnel

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

                   Subtitle D--Matters Relating to Retirement

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

                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

           Subtitle A--Matters Related to Arms Control and Monitoring

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

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

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

                               Subtitle C--Reports

    Sec. 1221. Report on significant sales and transfers of military
    hardware, expertise, and technology to the People's Republic of China.
    Sec. 1222. Repeal of requirement for reporting to Congress on military
    deployments to Haiti.
    Sec. 1223. Report by Comptroller General on provision of defense
    articles, services, and military education and training to foreign
    countries and international organizations.

       TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
                                  SOVIET UNION

    Sec. 1301. Specification of Cooperative Threat Reduction programs and
    funds.
    Sec. 1302. Funding allocations.
    Sec. 1303. Limitation on use of funds until submission of reports.
    Sec. 1304. Requirement to consider use of revenue generated by
    activities carried out under Cooperative Threat Reduction programs.
    Sec. 1305. Prohibition against use of funds for second wing of fissile
    material storage facility.
    Sec. 1306. Prohibition against use of funds for certain construction
    activities.
    Sec. 1307. Reports on activities and assistance under Cooperative Threat
    Reduction programs.
    Sec. 1308. Chemical weapons destruction.
    Sec. 1309. Additional matter in annual report on activities and
    assistance under Cooperative Threat Reduction programs.

                     TITLE XIV--ARMED FORCES RETIREMENT HOME

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

              TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

              Subtitle A--Increased Funding for Combating Terrorism

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

           Subtitle B--Policy Matters Relating to Combating Terrorism

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

                      TITLE XVI--UNIFORMED SERVICES VOTING

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

                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    Sec. 2001. Short title; definition.

                                 TITLE XXI--ARMY

    Sec. 2101. Authorized Army construction and land acquisition projects.
    Sec. 2102. Family housing.
    Sec. 2103. Improvements to military family housing units.
    Sec. 2104. Authorization of appropriations, Army.
    Sec. 2105. Modification of authority to carry out certain fiscal year
    2001 projects.
    Sec. 2106. Modification of authority to carry out certain fiscal year
    2000 projects.

                                TITLE XXII--NAVY

    Sec. 2201. Authorized Navy construction and land acquisition projects.
    Sec. 2202. Family housing.
    Sec. 2203. Improvements to military family housing units.
    Sec. 2204. Authorization of appropriations, Navy.
    Sec. 2205. Modification of authority to carry out certain fiscal year
    2001 projects.
    Sec. 2206. Modification of authority to carry out certain fiscal year
    2000 project.

                             TITLE XXIII--AIR FORCE

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

                          TITLE XXIV--DEFENSE AGENCIES

    Sec. 2401. Authorized Defense Agencies construction and land acquisition
    projects.
    Sec. 2402. Energy conservation projects.
    Sec. 2403. Authorization of appropriations, Defense Agencies.
    Sec. 2404. Cancellation of authority to carry out certain fiscal year
    2001 projects.
    Sec. 2405. Modification of authority to carry out certain fiscal year
    2000 projects.
    Sec. 2406. Modification of authority to carry out certain fiscal year
    1999 project.
    Sec. 2407. Modification of authority to carry out certain fiscal year
    1995 project.
    Sec. 2408. Prohibition on expenditures to develop forward operating
    location on Aruba.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                     PROGRAM

    Sec. 2501. Authorized NATO construction and land acquisition projects.
    Sec. 2502. Authorization of appropriations, NATO.

                    TITLE XXVI--GUARD AND RESERVE FACILITIES

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

             TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                        TITLE XXVIII--GENERAL PROVISIONS

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

    Sec. 2801. Increase in thresholds for certain unspecified minor military
    construction projects.
    Sec. 2802. Exclusion of unforeseen environmental hazard remediation from
    limitation on authorized cost variations.
    Sec. 2803. Repeal of annual reporting requirement on military
    construction and military family housing activities.
    Sec. 2804. Funds for housing allowances of members assigned to military
    family housing under alternative authority for acquisition and
    improvement of military housing.
    Sec. 2805. Extension of alternative authority for acquisition and
    improvement of military housing.
    Sec. 2806. Treatment of financing costs as allowable expenses under
    contracts for utility services from utility systems conveyed under
    privatization initiative.

             Subtitle B--Real Property and Facilities Administration

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

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

    Sec. 2821. Lease back of base closure property.

                          Subtitle D--Land Conveyances

                            Part I--Army Conveyances

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

                            Part II--Navy Conveyances

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

                         Part III--Air Force Conveyances

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

                            Subtitle E--Other Matters

    Sec. 2861. Management of the Presidio of San Francisco.
    Sec. 2862. Transfer of jurisdiction for development of Air Force morale,
    welfare, and recreation facility, Park City, Utah.
    Sec. 2863. Alternate site for United States Air Force Memorial,
    preservation of open space on Arlington Ridge tract, and related land
    transfer at Arlington National Cemetery, Virginia.
    Sec. 2864. Establishment of memorial to victims of terrorist attack on
    Pentagon Reservation and authority to accept monetary contributions for
    memorial and repair of Pentagon.
    Sec. 2865. Repeal of limitation on cost of renovation of Pentagon
    Reservation.
    Sec. 2866. Development of United States Army Heritage and Education
    Center at Carlisle Barracks, Pennsylvania.
    Sec. 2867. Effect of limitation on construction of roads or highways,
    Marine Corps Base, Camp Pendleton, California.
    Sec. 2868. Establishment of World War II memorial at additional location
    on Guam.
    Sec. 2869. Demonstration project for purchase of fire, security, police,
    public works, and utility services from local government agencies.
    Sec. 2870. Report on future land needs of United States Military
    Academy, New York, and adjacent community.
    Sec. 2871. Naming of Patricia C. Lamar Army National Guard Readiness
    Center, Oxford, Mississippi.

                 TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

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

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

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

     DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
                              OTHER AUTHORIZATIONS

           TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

    Sec. 3101. National Nuclear Security Administration.
    Sec. 3102. Defense environmental restoration and waste management.
    Sec. 3103. Other defense activities.
    Sec. 3104. Defense environmental management privatization.
    Sec. 3105. Defense nuclear waste disposal.

                    Subtitle B--Recurring General Provisions

    Sec. 3121. Reprogramming.
    Sec. 3122. Limits on minor construction projects.
    Sec. 3123. Limits on construction projects.
    Sec. 3124. Fund transfer authority.
    Sec. 3125. Authority for conceptual and construction design.
    Sec. 3126. Authority for emergency planning, design, and construction
    activities.
    Sec. 3127. Funds available for all national security programs of the
    Department of Energy.
    Sec. 3128. Availability of funds.
    Sec. 3129. Transfer of defense environmental management funds.
    Sec. 3130. Transfer of weapons activities funds.

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    Sec. 3131. Consolidation of Nuclear Cities Initiative program with
    Initiatives for Proliferation Prevention program.
    Sec. 3132. Nuclear Cities Initiative.
    Sec. 3133. Limitation on availability of funds for weapons activities
    for facilities and infrastructure.
    Sec. 3134. Limitation on availability of funds for other defense
    activities for national security programs administrative support.
    Sec. 3135. Termination date of Office of River Protection, Richland,
    Washington.
    Sec. 3136. Support for public education in the vicinity of Los Alamos
    National Laboratory, New Mexico.
    Sec. 3137. Reports on achievement of milestones for National Ignition
    Facility.

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

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

                            Subtitle E--Other Matters

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

                Subtitle F--Rocky Flats National Wildlife Refuge

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

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                      TITLE XXXIV--NAVAL PETROLEUM RESERVES

    Sec. 3401. Authorization of appropriations.

                       TITLE XXXV--MARITIME ADMINISTRATION

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

    SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                              TITLE I--PROCUREMENT

                   Subtitle A--Authorization of Appropriations

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

                            Subtitle B--Army Programs

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

                            Subtitle C--Navy Programs

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

                         Subtitle D--Air Force Programs

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

                  Subtitle A--Authorization of Appropriations

    SEC. 101. ARMY.

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

    SEC. 102. NAVY AND MARINE CORPS.

        (a) Navy.--Funds are hereby authorized to be appropriated for
    fiscal year 2002 for procurement for the Navy as follows:
            (1) For aircraft, $8,323,147,000.
            (2) For weapons, including missiles and torpedoes,
        $1,484,321,000.
            (3) For shipbuilding and conversion, $9,370,972,000.
            (4) For other procurement, $4,282,471,000.
        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 2002 for procurement for the Marine Corps in the amount
    of $1,014,637,000.
        (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
    to be appropriated for fiscal year 2002 for procurement of ammunition
    for the Navy and the Marine Corps in the amount of $466,907,000.

    SEC. 103. AIR FORCE.

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

    SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

    SEC. 105. DEFENSE INSPECTOR GENERAL.

        Funds are hereby authorized to be appropriated for fiscal year 2002
    for procurement for the Inspector General of the Department of Defense
    in the amount of $2,800,000.
        SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.
        There is hereby authorized to be appropriated for fiscal year 2002
    for the Department of Defense for Chemical Agents and Munitions
    Destruction, Defense, the amount of $1,153,557,000 for--
            (1) the destruction of lethal chemical agents and munitions in
        accordance with section 1412 of the Department of Defense
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the United
        States that is not covered by section 1412 of such Act.

    SEC. 107. DEFENSE HEALTH PROGRAM.

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

                           Subtitle B--Army Programs

        SEC. 111. REPEAL OF LIMITATIONS ON BUNKER DEFEAT MUNITIONS PROGRAM.
        Section 116 of the National Defense Authorization Act for Fiscal
    Year 1995 (Public Law 103-337; 108 Stat. 2682) is repealed.
        SEC. 112. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED
          ARTICLES AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES
          WITHOUT REGARD TO AVAILABILITY FROM DOMESTIC SOURCES.
        Section 141(a) of the National Defense Authorization Act for Fiscal
    Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note) is amended--
            (1) by striking ``through 2001'' and inserting ``through
        2002''; and
            (2) by inserting before the period at the end the following:
        ``, except that during fiscal year 2002 the Secretary may only use
        articles manufactured at, and services provided by, not more than
        one Army industrial facility''.
        SEC. 113. LIMITATIONS ON ACQUISITION OF INTERIM ARMORED VEHICLES
          AND DEPLOYMENT OF INTERIM BRIGADE COMBAT TEAMS.
        Section 113 of the Floyd D. Spence National Defense Authorization
    Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398;
    114 Stat. 1654A-23) is amended--
            (1) by redesignating subsection (f) as subsection (j); and
            (2) by inserting after subsection (e) the following new
        subsections:
        ``(f) Waiver of Comparison Requirement.--The Secretary of Defense
    may waive subsections (c) and (e)(1) and submit to the congressional
    defense committees a certification under subsection (e)(2) without
    regard to the requirement in that subsection for the completion of a
    comparison of costs and operational effectiveness if the Secretary
    includes in the submittal a certification of each of the following:
            ``(1) That the results of executed tests and existing analyses
        are sufficient for making a meaningful comparison of the costs and
        operational effectiveness of the interim armored vehicles referred
        to in subparagraph (A) of subsection (c)(1) and the medium armored
        vehicles referred to in subparagraph (B) of such subsection.
            ``(2) That the conduct of a comparative evaluation of those
        vehicles in a realistic field environment would provide no
        significant additional data relevant to that comparison.
            ``(3) That the Secretary has evaluated the existing data on
        cost and operational effectiveness of those vehicles and, taking
        that data into consideration, approves the obligation of funds for
        the acquisition of additional interim armored vehicles.
            ``(4) That sufficient resources will be requested in the
        future-years defense program to fully fund the Army's requirements
        for interim brigade combat teams.
            ``(5) That the force structure resulting from the establishment
        of the interim brigade combat teams and the subsequent achievement
        of operational capability by those teams will not diminish the
        combat power of the Army.
        ``(g) Experimentation Program.--The Secretary of the Army shall
    develop and provide resources for an experimentation program that
    will--
            ``(1) provide information as to the design of the objective
        force; and
            ``(2) include a formal linkage of the interim brigade combat
        teams to that experimentation.
        ``(h) Operational Evaluation.--(1) The Secretary of the Army shall
    conduct an operational evaluation of the initial interim brigade combat
    team. The evaluation shall include deployment of the team to the
    evaluation site and team execution of combat missions across the full
    spectrum of potential threats and operational scenarios.
        ``(2) The operational evaluation under paragraph (1) may not be
    conducted until the plan for such evaluation is approved by the
    Director of Operational Test and Evaluation of the Department of
    Defense.
        ``(i) Limitation on Procurement of Interim Armored Vehicles and
    Deployment of IBCTs.--(1) The actions described in paragraph (2) may
    not be taken until the date that is 30 days after the date on which the
    Secretary of Defense--
            ``(A) submits to Congress a report on the operational
        evaluation carried out under subsection (h); and
            ``(B) certifies to Congress that the results of that
        operational evaluation indicate that the design for the interim
        brigade combat team is operationally effective and operationally
        suitable.
        ``(2) The limitation in paragraph (1) applies to the following
    actions:
            ``(A) Procurement of interim armored vehicles in addition to
        those necessary for equipping the first three interim brigade
        combat teams.
            ``(B) Deployment of any interim brigade combat team outside the
        United States.
        ``(3) The Secretary of Defense may waive the applicability of
    paragraph (1) to a deployment described in paragraph (2)(B) if the
    Secretary--
            ``(A) determines that the deployment is in the national
        security interests of the United States; and
            ``(B) submits to Congress, in writing, a notification of the
        waiver together with a discussion of the reasons for the waiver.''.

                           Subtitle C--Navy Programs

    SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

        Section 123(b)(1) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-25) is amended--
            (1) by striking ``five Virginia class submarines'' and
        inserting ``seven Virginia class submarines''; and
            (2) by striking ``2006'' and inserting ``2007''.
        SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A-18E/F AIRCRAFT
          ENGINES.
        (a) Multiyear Authority.--Beginning with the 2002 program year, the
    Secretary of the Navy may, in accordance with section 2306b of title
    10, United States Code, enter into a multiyear contract for the
    procurement of engines for F/A-18E/F aircraft.
        (b) Required Certifications.--In the case of a contract authorized
    by subsection (a) of this section, a certification under subsection
    (i)(1)(A) of section 2306b of title 10, United States Code, with
    respect to that contract may only be submitted if the certification
    includes an additional certification that each of the conditions
    specified in subsection (a) of that section has been satisfied with
    respect to that contract.
        (c) Congressional Notice-and-Wait Period.--Upon transmission to
    Congress of a certification referred to in subsection (b) with respect
    to a contract authorized by subsection (a), the contract may then be
    entered into only after a period of 30 days has elapsed after the date
    of the transmission of such certification.

    SEC. 123. V-22 OSPREY AIRCRAFT PROGRAM.

        The production rate for V-22 Osprey aircraft may not be increased
    above the minimum sustaining production rate for which funds are
    authorized to be appropriated by this Act until the Secretary of
    Defense certifies to Congress that successful operational testing of
    the aircraft demonstrates that--
            (1) the solutions to the problems regarding the reliability of
        hydraulic system components and flight control software that were
        identified by the panel appointed by the Secretary of Defense on
        January 5, 2001, to review the V-22 aircraft program are adequate
        to achieve low risk for crews and passengers aboard V-22 aircraft
        that are operating under operational conditions;
            (2) the V-22 aircraft can achieve reliability and
        maintainability levels that are sufficient for the aircraft to
        achieve operational availability at the level required for fleet
        aircraft;
            (3) the V-22 aircraft will be operationally effective--
                (A) when employed in operations with other V-22 aircraft;
            and
                (B) when employed in operations with other types of
            aircraft; and
            (4) the V-22 aircraft can be operated effectively, taking into
        consideration the downwash effects inherent in the operation of the
        aircraft, when the aircraft--
                (A) is operated in remote areas with unimproved terrain and
            facilities;
                (B) is deploying and recovering personnel--
                    (i) while hovering within the zone of ground effect;
                and
                    (ii) while hovering outside the zone of ground effect;
                and
                (C) is operated with external loads.
        SEC. 124. REPORT ON STATUS OF V-22 OSPREY AIRCRAFT BEFORE
          RESUMPTION OF FLIGHT TESTING.
        Not later than 30 days before the resumption of flight testing of
    the V-22 Osprey aircraft, the Secretary of Defense shall submit to
    Congress a report containing the following:
            (1) A comprehensive description of the status of the hydraulics
        system and flight control software of the V-22 Osprey aircraft,
        including--
                (A) a description and analysis of any deficiencies in the
            hydraulics system and flight control software of the V-22
            Osprey aircraft; and
                (B) a description and assessment of the actions taken to
            redress each such deficiency.
            (2) A description of the current actions, and any proposed
        actions, of the Department of Defense to implement the
        recommendations of the panel appointed by the Secretary of Defense
        on January 5, 2001, to review the V-22 aircraft program.
            (3) An assessment of the recommendations of the National
        Aeronautics and Space Administration on tiltrotor aeromechanics
        provided in a briefing to the Undersecretary of Defense for
        Acquisition, Logistics, and Technology on August 14, 2001.
            (4) Notice of the waiver, if any, of any item capability or any
        other requirement specified in the Joint Operational Requirements
        Document for the V-22 Osprey aircraft, including a justification of
        each such waiver.

                         Subtitle D--Air Force Programs

        SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 AIRCRAFT.
        (a) Multiyear Authority.--Beginning with the 2002 program year, the
    Secretary of the Air Force may enter into a multiyear contract for the
    procurement of up to 60 C-17 aircraft. Such a contract shall be entered
    into in accordance with section 2306b of title 10, United States Code,
    except that, notwithstanding subsection (k) of such section, such a
    contract may be for a period of six program years.
        (b) Required Certifications.--In the case of a contract authorized
    by subsection (a) of this section, a certification under subsection
    (i)(1)(A) of section 2306b of title 10, United States Code, with
    respect to that contract may only be submitted if the certification
    includes an additional certification that each of the conditions
    specified in subsection (a) of that section has been satisfied with
    respect to that contract.
        (c) Congressional Notice-and-Wait Period.--Upon transmission to
    Congress of a certification referred to in subsection (b) with respect
    to a contract authorized by subsection (a), the contract may then be
    entered into only after a period of 30 days has elapsed after the date
    of the transmission of such certification.

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

                   Subtitle A--Authorization of Appropriations

    Sec. 201. Authorization of appropriations.
    Sec. 202. Amount for basic and applied research.
    Sec. 203. Supplemental authorization of appropriations for fiscal year
              2001 for research, development, test, and evaluation, Defense-
              wide.

         Subtitle B--Program Requirements, Restrictions, and Limitations

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

                      Subtitle C--Ballistic Missile Defense

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

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

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

                            Subtitle E--Other Matters

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

                  Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

    SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

        (a) Fiscal Year 2002.--Of the amounts authorized to be appropriated
    by section 201, $5,070,605,000 shall be available for basic research
    and applied research projects.
        (b) Basic Research and Applied Research Defined.--For purposes of
    this section, the term ``basic research and applied research'' means
    work funded in program elements for defense research and development
    under Department of Defense category 6.1 or 6.2.
        SEC. 203. SUPPLEMENTAL AUTHORIZATION OF APPROPRIATIONS FOR FISCAL
          YEAR 2001 FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION,
          DEFENSE-WIDE.
        In addition to the funds authorized to be appropriated under
    section 201(4) of the Floyd D. Spence National Defense Authorization
    Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398;
    114 Stat. 1654A-32), there is hereby authorized to be appropriated
    $1,000,000 for fiscal year 2001 for the use of the Department of
    Defense for research, development, test, and evaluation, for Defense-
    wide activities.

        Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 211. NAVAL SURFACE FIRE SUPPORT ASSESSMENT.

        (a) Assessment Required.--The Secretary of Defense shall carry out
    an assessment of the requirements for naval surface fire support of
    ground forces operating in the littoral environment, including the role
    of an advanced fire support missile system for Navy combatant vessels.
    The matters assessed shall include the Secretary of the Navy's program
    plan, schedule, and funding for meeting such requirements.
        (b) Report.--Not later than March 31, 2002, the Secretary of
    Defense shall submit to the congressional defense committees a report
    containing the results of the assessment required by subsection (a).
        SEC. 212. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF ADVANCED RADAR
          SYSTEMS.
        (a) Program Required.--The Secretary of Defense shall carry out a
    program to develop and demonstrate advanced technologies and concepts
    leading to advanced radar systems for naval and other applications.
        (b) Description of Program.--The program under subsection (a) shall
    be carried out collaboratively by the Director of Defense Research and
    Engineering, the Secretary of the Navy, the Director of the Defense
    Advanced Research Projects Agency, and other appropriate elements of
    the Department of Defense. The program shall include the following
    activities:
            (1) Activities needed for development and maturation of the
        technologies for advanced electronics materials to extend the range
        and sensitivity of radars.
            (2) Identification of acquisition systems for use of the new
        technology.
        (c) Report.--Not later than March 31, 2002, the Director of Defense
    Research and Engineering shall submit to the congressional defense
    committees a report on the implementation of the program under
    subsection (a). The report shall include the following:
            (1) A description of the management plan for the program and
        any agreements relating to that plan.
            (2) A schedule for the program.
            (3) Identification of the funding required for fiscal year 2003
        and for the future-years defense program to carry out the program.
            (4) A list of program capability goals and objectives.
        SEC. 213. REPEAL OF LIMITATIONS ON TOTAL COST OF ENGINEERING AND
          MANUFACTURING DEVELOPMENT FOR F-22 AIRCRAFT PROGRAM.
        (a) Repeal.--The following provisions of law are repealed:
            (1) Section 217(a) of the National Defense Authorization Act
        for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1660).
            (2) Section 8125 of the Department of Defense Appropriations
        Act, 2001 (Public Law 106-259; 114 Stat. 702).
            (3) Section 219(b) of the Floyd D. Spence National Defense
        Authorization Act for Fiscal Year 2001 (as enacted into law by
        Public Law 106-398; 114 Stat. 1654A-38).
        (b) Conforming Amendments.--(1) Section 217 of the National Defense
    Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat.
    1660), as amended by subsection (a)(1), is further amended--
            (A) in subsection (c)--
                (i) by striking ``limitations set forth in subsections (a)
            and (b)'' and inserting ``limitation set forth in subsection
            (b)''; and
                (ii) by striking paragraph (3); and
            (B) in subsection (d)(2), by striking subparagraphs (D) and
        (E).
        (2) Section 131 of the National Defense Authorization Act for
    Fiscal Year 2000 (Public Law 106-65; 113 Stat. 536) is amended--
            (A) in subsection (a)(2), by striking ``That the'' and all that
        follows through ``respectively,'' and inserting ``That the
        production phase for that program can be executed within the
        limitation on total cost applicable to that program under
        subsection (b)''; and
            (B) in subsection (b)(3), by striking ``for the remainder of
        the engineering and manufacturing development phase and''.

    SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

        Section 217(a) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-36) is amended by striking ``funds
    authorized to be appropriated by this Act may not'' and inserting ``no
    funds authorized to be appropriated to the Department of Defense for
    fiscal year 2002 may''.
        SEC. 215. COOPERATIVE DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS
          AFFAIRS MEDICAL RESEARCH PROGRAM.
        Of the funds authorized to be appropriated by section 201(4),
    $2,500,000 shall be available for the cooperative Department of
    Defense/Department of Veterans Affairs medical research program. The
    Secretary of Defense shall transfer such amount to the Secretary of
    Veterans Affairs for such purpose not later than 30 days after the date
    of the enactment of this Act.
        SEC. 216. C-5 AIRCRAFT RELIABILITY ENHANCEMENT AND REENGINING
          PROGRAM.
        (a) Kit Development.--The Secretary of the Air Force shall ensure
    that engineering manufacturing and development under the C-5 aircraft
    reliability enhancement and reengining program includes kit development
    for at least one C-5A aircraft.
        (b) Aircraft To Be Used for Kit Development.--The C-5A aircraft to
    be used for purposes of the kit development under subsection (a) shall
    be an aircraft from among the 74 C-5A aircraft of the Air Force.

                     Subtitle C--Ballistic Missile Defense

        SEC. 231. TRANSFER OF RESPONSIBILITY FOR PROCUREMENT FOR MISSILE
          DEFENSE PROGRAMS FROM BALLISTIC MISSILE DEFENSE ORGANIZATION TO
          MILITARY DEPARTMENTS.
        (a) Budgeting of Missile Defense Procurement Authority.--Section
    224 of title 10, United States Code is amended--
            (1) in subsection (a), by striking ``procurement'' both places
        it appears and inserting ``research, development, test, and
        evaluation''; and
            (2) by striking subsections (b) and (c) and inserting the
        following:
        ``(b) Transfer Criteria.--(1) The Secretary of Defense shall
    establish criteria for the transfer of responsibility for a ballistic
    missile defense program from the Director of the Ballistic Missile
    Defense Organization to the Secretary of a military department. The
    criteria established for such a transfer shall, at a minimum, address
    the following:
            ``(A) The technical maturity of the program.
            ``(B) The availability of facilities for production.
            ``(C) The commitment of the Secretary of the military
        department concerned to procurement funding for that program, as
        shown by funding through the future-years defense program and other
        defense planning documents.
        ``(2) The Secretary shall submit the criteria established, and any
    modifications to those criteria, to the congressional defense
    committees.
        ``(c) Notification of Transfer.--Before responsibility for a
    ballistic missile defense program is transferred from the Director of
    the Ballistic Missile Defense Organization to the Secretary of a
    military department, the Secretary of Defense shall submit to the
    congressional defense committees notice in writing of the Secretary's
    intent to make that transfer. The Secretary shall include with such
    notice a certification that the program has met the criteria
    established under subsection (b) for such a transfer. The transfer may
    then be carried out after the end of the 60-day period beginning on the
    date of such notice.
        ``(d) Conforming Budget and Planning Transfers.--When a ballistic
    missile defense program is transferred from the Ballistic Missile
    Defense Organization to the Secretary of a military department in
    accordance with this section, the Secretary of Defense shall ensure
    that all appropriate conforming changes are made to proposed or
    projected funding allocations in the future-years defense program under
    section 221 of this title and other Department of Defense program,
    budget, and planning documents.
        ``(e) Follow-on Research, Development, Test, and Evaluation.--The
    Secretary of Defense shall ensure that, before a ballistic missile
    defense program is transferred from the Director of the Ballistic
    Missile Defense Organization to the Secretary of a military department,
    roles and responsibilities for research, development, test, and
    evaluation related to system improvements for that program are clearly
    defined.
        ``(f) Congressional Defense Committees.--In this section, the term
    `congressional defense committees' means the following:
            ``(1) The Committee on Armed Services and the Committee on
        Appropriations of the Senate.
            ``(2) The Committee on Armed Services and the Committee on
        Appropriations of the House of Representatives.''.
        (b) Clerical Amendments.--(1) The heading of that section is
    amended to read as follows:
    ``Sec. 224. Ballistic missile defense programs: display of amounts for
        research, development, test, and evaluation''.
        (2) The item relating to that section in the table of sections at
    the beginning of chapter 9 of such title is amended to read as follows:

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

        SEC. 232. PROGRAM ELEMENTS FOR BALLISTIC MISSILE DEFENSE
          ORGANIZATION.
        (a) Revision in Program Elements.--Subsection (a) of section 223 of
    title 10, United States Code, is amended--
            (1) by striking ``in accordance with the following program
        elements:'' and inserting ``in accordance with program elements
        governing functional areas as follows:''; and
            (2) by striking paragraphs (1) through (12) and inserting the
        following:
            ``(1) Technology.
            ``(2) Ballistic Missile Defense System.
            ``(3) Terminal Defense Segment.
            ``(4) Midcourse Defense Segment.
            ``(5) Boost Defense Segment.
            ``(6) Sensors Segment.''.
        (b) Additional Requirements.--Subsection (b) of such section is
    amended to read as follows:
        ``(b) Separate Program Elements for Programs Entering Engineering
    and Manufacturing Development.--(1) The Secretary of Defense shall
    ensure that each ballistic missile defense program that enters
    engineering and manufacturing development is assigned a separate,
    dedicated program element.
        ``(2) In this subsection, the term `engineering and manufacturing
    development' means the development phase whose primary objectives are
    to--
            ``(A) translate the most promising design approach into a
        stable, interoperable, producible, supportable, and cost-effective
        design;
            ``(B) validate the manufacturing or production process; and
            ``(C) demonstrate system capabilities through testing.''.
        (c) Requirement for Annual Program Goals.--(1) The Secretary of
    Defense shall each year establish cost, schedule, testing, and
    performance goals for the ballistic missile defense programs of the
    Department of Defense for the period covered by the future-years
    defense program that is submitted to Congress that year under section
    221 of title 10, United States Code. Not later than February 1 each
    year, the Secretary shall submit to the congressional defense
    committees a statement of the goals so established.
        (2) The statement of goals submitted under paragraph (1) for any
    year after 2002 shall be an update of the statement submitted under
    that paragraph for the preceding year.
        (3) Each statement of goals submitted under paragraph (1) shall set
    forth cost, schedule, testing, and performance goals that pertain to
    each functional area program element identified in subsection (a), and
    each program element identified in subsection (b), of section 223 of
    title 10, United States Code.
        (d) Annual Program Plan.--(1) With the submission of the statement
    of goals under subsection (c) for any year, the Secretary of Defense
    shall submit to the congressional defense committees a program of
    activities planned to be carried out for each missile defense program
    that enters engineering and manufacturing development (as defined in
    section 223(b)(2) of title 10, United States Code, as added by
    subsection (b)).
        (2) Each program plan under paragraph (1) shall include the
    following:
            (A) A funding profile that includes an estimate of--
                (i) the total expenditures to be made in the fiscal year in
            which the plan is submitted and the following fiscal year,
            together with the estimated total life-cycle costs of the
            program; and
                (ii) a display of such expenditures (shown for significant
            procurement, construction, and research and development) for
            the fiscal year in which the plan is submitted and the
            following fiscal year.
            (B) A program schedule for the fiscal year in which the plan is
        submitted and the following fiscal year for each of the following:
                (i) Significant procurement.
                (ii) Construction.
                (iii) Research and development.
                (iv) Flight tests.
                (v) Other significant testing activities.
        (3) Information specified in paragraph (2) need not be included in
    the plan for any year under paragraph (1) to the extent such
    information has already been provided, or will be provided in the
    current fiscal year, in annual budget justification documents of the
    Department of Defense submitted to Congress or in other required
    reports to Congress.
        (e) Internal DOD Reviews.--(1) The officials and elements of the
    Department of Defense specified in paragraph (2) shall on an ongoing
    basis--
            (A) review the development of goals under subsection (c) and
        the annual program plan under subsection (d); and
            (B) provide to the Secretary of Defense and the Director of the
        Ballistic Missile Defense Organization any comments on such matters
        as considered appropriate.
        (2) Paragraph (1) applies with respect to the following:
            (A) The Under Secretary of Defense for Acquisition, Technology,
        and Logistics.
            (B) The Director of Operational Test and Evaluation.
            (C) The Director of Program Analysis and Evaluation.
            (D) The Joint Requirements Oversight Council.
            (E) The Cost Analysis and Improvement Group.
        (f) Demonstration of Critical Technologies.--(1) The Director of
    the Ballistic Missile Defense Organization shall develop a plan for
    ensuring that each critical technology for a missile defense program is
    successfully demonstrated in an appropriate environment before that
    technology enters into operational service as part of a missile defense
    program.
        (2) The Director of Operational Test and Evaluation of the
    Department of Defense shall monitor the development of the plan under
    paragraph (1) and shall submit to the Director of the Ballistic Missile
    Defense Organization any comments regarding that plan that the Director
    of Operational Test and Evaluation considers appropriate.
        (g) Comptroller General Assessment.--(1) At the conclusion of each
    of fiscal years 2002 and 2003, the Comptroller General of the United
    States shall assess the extent to which the Ballistic Missile Defense
    Organization achieved the goals established under subsection (c) for
    such fiscal year.
        (2) Not later than February 15, 2003, and February 15, 2004, the
    Comptroller General shall submit to the congressional defense
    committees a report on the Comptroller General's assessment under
    paragraph (1) with respect to the preceding fiscal year.
        (h) Annual OT&E Assessment of Test Program.--(1) The Director of
    Operational Test and Evaluation shall each year assess the adequacy and
    sufficiency of the Ballistic Missile Defense Organization test program
    during the preceding fiscal year.
        (2) Not later than February 15 each year the Director shall submit
    to the congressional defense committees a report on the assessment
    under paragraph (1) with respect to the preceding fiscal year.
        SEC. 233. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF THE
          DEPARTMENT OF DEFENSE BY THE NATIONAL DEFENSE LABORATORIES OF THE
          DEPARTMENT OF ENERGY.
        (a) Funds To Carry Out Certain Ballistic Missile Defense
    Activities.--Of the amounts authorized to be appropriated to the
    Department of Defense pursuant to section 201(4), $25,000,000 shall be
    available, subject to subsection (b) and at the discretion of the
    Director of the Ballistic Missile Defense Organization, for research,
    development, and demonstration activities at the national laboratories
    of the Department of Energy in support of the missions of the Ballistic
    Missile Defense Organization, including the following activities:
            (1) Technology development, concept demonstration, and
        integrated testing to enhance performance, reduce risk, and improve
        reliability in hit-to-kill interceptors for ballistic missile
        defense.
            (2) Support for science and engineering teams to assess
        critical technical problems and prudent alternative approaches as
        agreed upon by the Director of the Ballistic Missile Defense
        Organization and the Administrator for Nuclear Security.
        (b) Requirement for Matching Funds From NNSA.--Funds shall be
    available as provided in subsection (a) only if the Administrator for
    Nuclear Security makes available matching funds for the activities
    referred to in subsection (a).
        (c) Memorandum of Understanding.--The activities referred to in
    subsection (a) shall be carried out under the memorandum of
    understanding entered into by the Secretary of Energy and the Secretary
    of Defense for the use of national laboratories for ballistic missile
    defense programs, as required by section 3131 of the National Defense
    Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat.
    2034) and modified pursuant to section 3132 of the Floyd D. Spence
    National Defense Authorization Act for Fiscal Year 2001 (as enacted
    into law by Public Law 106-398; 114 Stat. 1654A-455) to provide for
    jointly funded projects.

    SEC. 234. MISSILE DEFENSE TESTING INITIATIVE.

        (a) Testing Infrastructure.--(1) The Secretary of Defense shall
    ensure that each annual budget request of the Department of Defense--
            (A) is designed to provide for comprehensive testing of
        ballistic missile defense programs during early stages of
        development; and
            (B) includes necessary funding to support and improve test
        infrastructure and provide adequate test assets for the testing of
        such programs.
        (2) The Secretary shall ensure that ballistic missile defense
    programs incorporate, to the greatest possible extent, operationally
    realistic test configurations (referred to as ``test bed''
    configurations) to demonstrate system performance across a broad range
    of capability and, during final stages of operational testing, to
    demonstrate reliable performance.
        (3) The Secretary shall ensure that the test infrastructure for
    ballistic missile defense programs is capable of supporting continued
    testing of ballistic missile defense systems after deployment.
        (b) Requirements for Early Stages of System Development.--In order
    to demonstrate acceptable risk and developmental stability, the
    Secretary of Defense shall ensure that any ballistic missile defense
    program incorporates, to the maximum extent practicable, the following
    elements during the early stages of system development:
            (1) Pursuit of parallel conceptual approaches and technological
        paths for all critical problematic components until effective and
        reliable solutions can be demonstrated.
            (2) Comprehensive ground testing in conjunction with flight-
        testing for key elements of the proposed system that are considered
        to present high risk, with such ground testing to make use of
        existing facilities and combinations of facilities that support
        testing at the highest possible levels of integration.
            (3) Where appropriate, expenditures to enhance the capabilities
        of existing test facilities, or to construct new test facilities,
        to support alternative complementary test methodologies.
            (4) Sufficient funding of test instrumentation to ensure
        accurate measurement of all critical test events.
            (5) Incorporation into the program of sufficient schedule
        flexibility and expendable test assets, including missile
        interceptors and targets, to ensure that failed or aborted tests
        can be repeated in a prudent, but expeditious manner.
            (6) Incorporation into flight-test planning for the program,
        where possible, of--
                (A) methods that make the most cost-effective use of test
            opportunities;
                (B) events to demonstrate engagement of multiple targets,
            ``shoot-look-shoot'', and other planned operational concepts;
            and
                (C) exploitation of opportunities to facilitate early
            development and demonstration of ``family of systems''
            concepts.
        (c) Specific Requirements for Ground-Based Mid-Course Interceptor
    Systems.--For ground-based mid-course interceptor systems, the
    Secretary of Defense shall initiate steps during fiscal year 2002 to
    establish a flight-test capability of launching not less than three
    missile defense interceptors and not less than two ballistic missile
    targets to provide a realistic test infrastructure.
        SEC. 235. CONSTRUCTION OF TEST BED FACILITIES FOR MISSILE DEFENSE
          SYSTEM.
        (a) Authority To Acquire or Construct Facilities.--(1) The
    Secretary of Defense, using funds appropriated to the Department of
    Defense for research, development, test, and evaluation for fiscal
    years after fiscal year 2001 that are available for programs of the
    Ballistic Missile Defense Organization, may carry out all construction
    projects, or portions of construction projects, including projects for
    the acquisition, improvement, or construction of facilities, necessary
    to establish and operate the Missile Defense System Test Bed.
        (2) The authority provided in subsection (a) may be used to
    acquire, improve, or construct facilities at a total cost not to exceed
    $500,000,000.
        (b) Authority To Provide Assistance to Local Communities.--(1)
    Subject to paragraph (2), the Secretary of Defense, using funds
    appropriated to the Department of Defense for research, development,
    test, and evaluation for fiscal year 2002 that are available for
    programs of the Ballistic Missile Defense Organization, may provide
    assistance to local communities to meet the need for increased
    municipal or community services or facilities resulting from the
    construction, installation, or operation of the Missile Defense System
    Test Bed Facilities. Such assistance may be provided by grant or
    otherwise.
        (2) Assistance may be provided to a community under paragraph (1)
    only if the Secretary of Defense determines that there is an immediate
    and substantial increase in the need for municipal or community
    services or facilities as a direct result of the construction,
    installation, or operation of the Missile Defense System Test Bed
    Facilities.

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

    SEC. 251. SHORT TITLE.

        This subtitle may be cited as the ``Air Force Science and
    Technology for the 21st Century Act''.
        SEC. 252. SCIENCE AND TECHNOLOGY INVESTMENT AND DEVELOPMENT
          PLANNING.
        (a) Sense of Congress.--It is the sense of Congress that the
    Secretary of the Air Force should carry out each of the following:
            (1) Continue and improve efforts to ensure that--
                (A) the Air Force science and technology community is
            represented, and the recommendations of that community are
            considered, at all levels of program planning and budgetary
            decisionmaking within the Air Force;
                (B) advocacy for science and technology development is
            institutionalized across all levels of Air Force management in
            a manner that is not dependent on individuals; and
                (C) the value of Air Force science and technology
            development is made increasingly apparent to the warfighters,
            by linking the needs of those warfighters with decisions on
            science and technology development.
            (2) Complete and adopt a policy directive that provides for
        changes in how the Air Force makes budgetary and nonbudgetary
        decisions with respect to its science and technology development
        programs and how it carries out those programs.
            (3) At least once every five years, conduct a review of the
        long-term challenges and short-term objectives of the Air Force
        science and technology programs that is consistent with the review
        specified in section 252 of the Floyd D. Spence National Defense
        Authorization Act for Fiscal Year 2001 (as enacted into law by
        Public Law 106-398; 114 Stat. 1654A-46).
            (4) Ensure that development and science and technology planning
        and investment activities are carried out for future space
        warfighting systems and for future nonspace warfighting systems in
        an integrated manner.
            (5) Elevate the position within the Office of the Secretary of
        the Air Force that has primary responsibility for budget and policy
        decisions for science and technology programs.
        (b) Reinstatement of Development Planning.--(1) The Secretary of
    the Air Force shall reinstate and implement a revised development
    planning process that provides for each of the following:
            (A) Coordinating the needs of Air Force warfighters with
        decisions on science and technology development.
            (B) Giving input into the establishment of priorities among
        science and technology programs.
            (C) Analyzing Air Force capability options for the allocation
        of Air Force resources.
            (D) Developing concepts for technology, warfighting systems,
        and operations with which the Air Force can achieve its critical
        future goals.
            (E) Evaluating concepts for systems and operations that
        leverage technology across Air Force organizational boundaries.
            (F) Ensuring that a ``system-of-systems'' approach is used in
        carrying out the various Air Force capability planning exercises.
            (G) Utilizing existing analysis capabilities within the Air
        Force product centers in a collaborative and integrated manner.
        (2) Not later than one year after the date of the enactment of this
    Act, the Secretary of the Air Force shall submit to Congress a report
    on the implementation of the planning process required by paragraph
    (1). The report shall include the annual amount that the Secretary
    considers necessary to carry out paragraph (1).
        SEC. 253. STUDY AND REPORT ON EFFECTIVENESS OF AIR FORCE SCIENCE
          AND TECHNOLOGY PROGRAM CHANGES.
        (a) Requirement.--The Secretary of the Air Force, in cooperation
    with the National Research Council of the National Academy of Sciences,
    shall carry out a study to determine how the changes to the Air Force
    science and technology program implemented during the past two years
    affect the future capabilities of the Air Force.
        (b) Matters Studied.--(1) The study shall review and assess whether
    such changes as a whole are sufficient to ensure the following:
            (A) That the concerns about the management of the science and
        technology program that have been raised by Congress, the Defense
        Science Board, the Air Force Science Advisory Board, and the Air
        Force Association have been adequately addressed.
            (B) That appropriate and sufficient technology is available to
        ensure the military superiority of the United States and counter
        future high-risk threats.
            (C) That the science and technology investments are balanced to
        meet the near-, mid-, and long-term needs of the Air Force.
            (D) That technologies are made available that can be used to
        respond flexibly and quickly to a wide range of future threats.
            (E) That the Air Force organizational structure provides for a
        sufficiently senior level advocate of science and technology to
        ensure an ongoing, effective presence of the science and technology
        community during the budget and planning process.
        (2) In addition, the study shall assess the specific changes to the
    Air Force science and technology program as follows:
            (A) Whether the biannual science and technology summits provide
        sufficient visibility into, and understanding and appreciation of,
        the value of the science and technology program to the senior level
        of Air Force budget and policy decisionmakers.
            (B) Whether the applied technology councils are effective in
        contributing the input of all levels beneath the senior leadership
        into the coordination, focus, and content of the science and
        technology program.
            (C) Whether the designation of the commander of the Air Force
        Materiel Command as the science and technology budget advocate is
        effective to ensure that an adequate Air Force science and
        technology budget is requested.
            (D) Whether the revised development planning process is
        effective to aid in the coordination of the needs of the Air Force
        warfighters with decisions on science and technology investments
        and the establishment of priorities among different science and
        technology programs.
            (E) Whether the implementation of section 252 of the Floyd D.
        Spence National Defense Authorization Act for Fiscal Year 2001 (as
        enacted into law by Public Law 106-398; 114 Stat. 1654A-46) is
        effective to identify the basis for the appropriate science and
        technology program funding level and investment portfolio.
        (c) Report.--Not later than May 1, 2003, the Secretary of the Air
    Force shall submit to Congress the results of the study.

                           Subtitle E--Other Matters

        SEC. 261. ESTABLISHMENT OF UNMANNED AERIAL VEHICLE JOINT
          OPERATIONAL TEST BED SYSTEM.
        (a) Establishment of Test Bed System.--The commander of the United
    States Joint Forces Command shall establish a government flight
    activity capability (referred to as a ``test bed'') within the
    facilities and resources of that command to evaluate and ensure joint
    interoperability of unmanned aerial vehicle systems. That capability
    shall be independent of the military departments and shall be managed
    directly by the Joint Forces Command.
        (b) Priority for Use of Predator Assets.--The Secretary of the Navy
    shall ensure that the commander of the United States Joint Forces
    Command controls the priority for use of the two Predator unmanned
    aerial vehicles currently undergoing operational testing by the Navy,
    together with associated payloads and antennas and the associated
    tactical control system (TCS) ground station.
        (c) Use by Joint Forces Command.--The items specified to in
    subsection (b) may be used by the commander of the United States Joint
    Forces Command only through the independent joint operational test bed
    system established pursuant to subsection (a) for testing of those
    items, including further development of the associated tactical control
    system (TCS) ground station, other aspects of unmanned aerial vehicle
    interoperability, and participation in such experiments and exercises
    as the commander considers appropriate to the mission of that command.
        SEC. 262. DEMONSTRATION PROJECT TO INCREASE SMALL BUSINESS AND
          UNIVERSITY PARTICIPATION IN OFFICE OF NAVAL RESEARCH EFFORTS TO
          EXTEND BENEFITS OF SCIENCE AND TECHNOLOGY RESEARCH TO FLEET.
        (a) Project Required.--The Secretary of the Navy, acting through
    the Chief of Naval Research, shall carry out a demonstration project to
    increase access to Navy facilities of small businesses and universities
    that are engaged in science and technology research beneficial to the
    fleet.
        (b) Project Elements.--In carrying out the demonstration project,
    the Secretary shall--
            (1) establish and operate a Navy Technology Extension Center at
        a location to be selected by the Secretary;
            (2) permit participants in the Small Business Innovation
        Research Program (SBIR) and Small Business Technology Transfer
        Program (STTR) that are awarded contracts by the Office of Naval
        Research to access and use Navy Major Range Test Facilities Base
        (MRTFB) facilities selected by the Secretary for purposes of
        carrying out such contracts, and charge such participants for such
        access and use at the same established rates that Department of
        Defense customers are charged; and
            (3) permit universities, institutions of higher learning, and
        federally funded research and development centers collaborating
        with participants referred to in paragraph (2) to access and use
        such facilities for such purposes, and charge such entities for
        such access and use at such rates.
        (c) Period of Project.--The demonstration project shall be carried
    out during the three-year period beginning on the date of the enactment
    of this Act.
        (d) Report.--Not later than February 1, 2004, the Secretary shall
    submit to Congress a report on the demonstration project. The report
    shall include a description of the activities carried out under the
    demonstration project and any recommendations for the improvement or
    expansion of the demonstration project that the Secretary considers
    appropriate.
        SEC. 263. COMMUNICATION OF SAFETY CONCERNS FROM OPERATIONAL TEST
          AND EVALUATION OFFICIALS TO PROGRAM MANAGERS.
        Section 139 of title 10, United States Code, is amended--
            (1) by redesignating subsections (f) through (i) as subsections
        (g) through (j), respectively; and
            (2) by inserting after subsection (e) the following new
        subsection:
        ``(f) The Director shall ensure that safety concerns developed
    during the operational test and evaluation of a weapon system under a
    major defense acquisition program are communicated in a timely manner
    to the program manager for that program for consideration in the
    acquisition decisionmaking process.''.

                      TITLE III--OPERATION AND MAINTENANCE

                   Subtitle A--Authorization of Appropriations

    Sec. 301. Operation and maintenance funding.
    Sec. 302. Working capital funds.
    Sec. 303. Armed Forces Retirement Home.
    Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
    Sec. 305. Funds for renovation of Department of Veterans Affairs
              facilities adjacent to Naval Training Center, Great Lakes,
              Illinois.
    Sec. 306. Defense Language Institute Foreign Language Center expanded
              Arabic language program.

                      Subtitle B--Environmental Provisions

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

       Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

                     Subtitle D--Workforce and Depot Issues

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

                    Subtitle E--Defense Dependents Education

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

                            Subtitle F--Other Matters

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

                  Subtitle A--Authorization of Appropriations

    SEC. 301. OPERATION AND MAINTENANCE FUNDING.

        (a) Authorization of Appropriations.--Funds are hereby authorized
    to be appropriated for fiscal year 2002 for the use of the Armed Forces
    and other activities and agencies of the Department of Defense for
    expenses, not otherwise provided for, for operation and maintenance, in
    amounts as follows:
            (1) For the Army, $20,653,241,000.
            (2) For the Navy, $26,461,299,000.
            (3) For the Marine Corps, $2,872,524,000.
            (4) For the Air Force, $25,598,767,000.
            (5) For Defense-wide activities, $11,949,586,000.
            (6) For the Army Reserve, $1,824,146,000.
            (7) For the Naval Reserve, $1,000,050,000.
            (8) For the Marine Corps Reserve, $142,853,000.
            (9) For the Air Force Reserve, $2,029,866,000.
            (10) For the Army National Guard, $3,696,559,000.
            (11) For the Air National Guard, $3,967,361,000.
            (12) For the Defense Inspector General, $149,221,000.
            (13) For the United States Court of Appeals for the Armed
        Forces, $9,096,000.
            (14) For Environmental Restoration, Army, $389,800,000.
            (15) For Environmental Restoration, Navy, $257,517,000.
            (16) For Environmental Restoration, Air Force, $385,437,000.
            (17) For Environmental Restoration, Defense-wide, $23,492,000.
            (18) For Environmental Restoration, Formerly Used Defense
        Sites, $230,255,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid
        programs, $49,700,000.
            (20) For Drug Interdiction and Counter-drug Activities,
        Defense-wide, $820,381,000.
            (21) For the Kaho'olawe Island Conveyance, Remediation, and
        Environmental Restoration Trust Fund, $40,000,000.
            (22) For Defense Health Program, $17,570,750,000.
            (23) For Cooperative Threat Reduction programs, $403,000,000.
            (24) For Overseas Contingency Operations Transfer Fund,
        $2,844,226,000.
            (25) For Support for International Sporting Competitions,
        Defense, $15,800,000.
        (b) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (5) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by $125,000,000, which represents savings resulting from reduced energy
    costs.

    SEC. 302. WORKING CAPITAL FUNDS.

        Funds are hereby authorized to be appropriated for fiscal year 2002
    for the use of the Armed Forces and other activities and agencies of
    the Department of Defense for providing capital for working capital and
    revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $1,656,396,000.
            (2) For the National Defense Sealift Fund, $407,708,000.

    SEC. 303. ARMED FORCES RETIREMENT HOME.

        (a) Amount for Fiscal Year 2002.--There is hereby authorized to be
    appropriated for fiscal year 2002 from the Armed Forces Retirement Home
    Trust Fund the sum of $71,440,000 for the operation of the Armed Forces
    Retirement Home.
        (b) Availability of Amounts Previously Appropriated.--Of amounts
    appropriated from the Armed Forces Retirement Home Trust Fund for
    fiscal year 2002 (and previous fiscal years to the extent such amounts
    remain unobligated), $22,400,000 shall be available, subject to the
    review and approval of the Secretary of Defense, for the development
    and construction of a blended use, multicare facility at the Naval Home
    and for the acquisition of a parcel of real property adjacent to the
    Naval Home consisting of approximately 15 acres.
        SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION
          FUND.
        (a) Transfer Authority.--To the extent provided in appropriations
    Acts, not more than $150,000,000 is authorized to be transferred from
    the National Defense Stockpile Transaction Fund to operation and
    maintenance accounts for fiscal year 2002 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
        (b) Treatment of Transfers.--Amounts transferred under this
    section--
            (1) shall be merged with, and be available for the same
        purposes and the same period as, the amounts in the accounts to
        which transferred; and
            (2) may not be expended for an item that has been denied
        authorization of appropriations by Congress.
        (c) Relationship to Other Transfer Authority.--The transfer
    authority provided in this section is in addition to the transfer
    authority provided in section 1001.
        SEC. 305. FUNDS FOR RENOVATION OF DEPARTMENT OF VETERANS AFFAIRS
          FACILITIES ADJACENT TO NAVAL TRAINING CENTER, GREAT LAKES,
          ILLINOIS.
        (a) Availability of Funds for Renovation.--Subject to subsection
    (b), of the amount authorized to be appropriated by section 301(a)(2)
    for operation and maintenance for the Navy, the Secretary of the Navy
    may make available to the Secretary of Veterans Affairs up to
    $2,000,000 for relocation of Department of Veterans Affairs activities
    and associated renovation of existing facilities at the North Chicago
    Department of Veterans Affairs Medical Center, Illinois.
        (b) Limitation.--The Secretary of the Navy may make funds available
    under subsection (a) only after the Secretary of the Navy and the
    Secretary of Veterans Affairs enter into an appropriate agreement for
    the use by the Secretary of the Navy of approximately 48 acres of real
    property at the North Chicago Department of Veterans Affairs property
    referred to in subsection (a) for expansion of the Naval Training
    Center, Great Lakes, Illinois.
        SEC. 306. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER
          EXPANDED ARABIC LANGUAGE PROGRAM.
        Of the amount authorized to be appropriated by section 301(a)(1)
    for operation and maintenance for the Army, $650,000 may be available
    for the Defense Language Institute Foreign Language Center for an
    expanded Arabic language program.

                      Subtitle B--Environmental Provisions

        SEC. 311. INVENTORY OF UNEXPLODED ORDNANCE, DISCARDED MILITARY
          MUNITIONS, AND MUNITIONS CONSTITUENTS AT DEFENSE SITES (OTHER
          THAN OPERATIONAL RANGES).
        (a) Inventory Required.--(1) Chapter 160 of title 10, United States
    Code, is amended by adding at the end the following new section:
    ``Sec. 2710. Inventory of unexploded ordnance, discarded military
         munitions, and munitions constituents at defense sites (other than
         operational ranges)
        ``(a) Inventory Required.--(1) The Secretary of Defense shall
    develop and maintain an inventory of defense sites that are known or
    suspected to contain unexploded ordnance, discarded military munitions,
    or munitions constituents.
        ``(2) The information in the inventory for each defense site shall
    include, at a minimum, the following:
            ``(A) A unique identifier for the defense site.
            ``(B) An appropriate record showing the location, boundaries,
        and extent of the defense site, including identification of the
        State and political subdivisions of the State in which the defense
        site is located and any Tribal lands encompassed by the defense
        site.
            ``(C) Known persons and entities, other than a military
        department, with any current ownership interest or control of lands
        encompassed by the defense site.
            ``(D) Any restrictions or other land use controls currently in
        place at the defense site that might affect the potential for
        public and environmental exposure to the unexploded ordnance,
        discarded military munitions, or munitions constituents.
        ``(b) Site Prioritization.--(1) The Secretary shall develop, in
    consultation with representatives of the States and Indian Tribes, a
    proposed protocol for assigning to each defense site a relative
    priority for response activities related to unexploded ordnance,
    discarded military munitions, and munitions constituents based on the
    overall conditions at the defense site. After public notice and comment
    on the proposed protocol, the Secretary shall issue a final protocol
    and shall apply the protocol to defense sites listed on the inventory.
    The level of response priority assigned the site shall be included with
    the information required by subsection (a)(2).
        ``(2) In assigning the response priority for a defense site on the
    inventory, the Secretary shall primarily consider factors relating to
    safety and environmental hazard potential, such as the following:
            ``(A) Whether there are known, versus suspected, unexploded
        ordnance, discarded military munitions, or munitions constituents
        on all or any portion of the defense site and the types of
        unexploded ordnance, discarded military munitions, or munitions
        constituents present or suspected to be present.
            ``(B) Whether public access to the defense site is controlled,
        and the effectiveness of these controls.
            ``(C) The potential for direct human contact with unexploded
        ordnance, discarded military munitions, or munitions constituents
        at the defense site and evidence of people entering the site.
            ``(D) Whether a response action has been or is being undertaken
        at the defense site under the Formerly Used Defense Sites program
        or other program.
            ``(E) The planned or mandated dates for transfer of the defense
        site from military control.
            ``(F) The extent of any documented incidents involving
        unexploded ordnance, discarded military munitions, or munitions
        constituents at or from the defense site, including incidents
        involving explosions, discoveries, injuries, reports, and
        investigations.
            ``(G) The potential for drinking water contamination or the
        release of munitions constituents into the air.
            ``(H) The potential for destruction of sensitive ecosystems and
        damage to natural resources.
        ``(3) The priority assigned to a defense site included on the
    inventory shall not impair, alter, or diminish any applicable Federal
    or State authority to establish requirements for the investigation of,
    and response to, environmental problems at the defense site.
        ``(c) Updates and Availability.--(1) The Secretary shall annually
    update the inventory and site prioritization list to reflect new
    information that becomes available. The inventory shall be available in
    published and electronic form.
        ``(2) The Secretary shall work with communities adjacent to a
    defense site to provide information concerning conditions at the site
    and response activities. At a minimum, the Secretary shall provide the
    site inventory information and site prioritization list to appropriate
    Federal, State, tribal, and local officials, and, to the extent the
    Secretary considers appropriate, to civil defense or emergency
    management agencies and the public.
        ``(d) Exceptions.--This section does not apply to the following:
            ``(1) Any locations outside the United States.
            ``(2) The presence of military munitions resulting from combat
        operations.
            ``(3) Operating storage and manufacturing facilities.
            ``(4) Operational ranges.
        ``(e) Definitions.--In this section:
            ``(1) The term `defense site' applies to locations that are or
        were owned by, leased to, or otherwise possessed or used by the
        Department of Defense. The term does not include any operational
        range, operating storage or manufacturing facility, or facility
        that is used for or was permitted for the treatment or disposal of
        military munitions.
            ``(2) The term `discarded military munitions' means military
        munitions that have been abandoned without proper disposal or
        removed from storage in a military magazine or other storage area
        for the purpose of disposal. The term does not include unexploded
        ordnance, military munitions that are being held for future use or
        planned disposal, or military munitions that have been properly
        disposed of, consistent with applicable environmental laws and
        regulations.
            ``(3)(A) The term `military munitions' means all ammunition
        products and components produced for or used by the armed forces
        for national defense and security, including ammunition products or
        components under the control of the Department of Defense, the
        Coast Guard, the Department of Energy, and the National Guard. The
        term includes confined gaseous, liquid, and solid propellants,
        explosives, pyrotechnics, chemical and riot control agents, smokes,
        and incendiaries, including bulk explosives and chemical warfare
        agents, chemical munitions, rockets, guided and ballistic missiles,
        bombs, warheads, mortar rounds, artillery ammunition, small arms
        ammunition, grenades, mines, torpedoes, depth charges, cluster
        munitions and dispensers, demolition charges, and devices and
        components thereof.
            ``(B) The term does not include wholly inert items, improvised
        explosive devices, and nuclear weapons, nuclear devices, and
        nuclear components, except that the term does include nonnuclear
        components of nuclear devices that are managed under the nuclear
        weapons program of the Department of Energy after all required
        sanitization operations under the Atomic Energy Act of 1954 (42
        U.S.C. 2011 et seq.) have been completed.
            ``(4) The term `munitions constituents' means any materials
        originating from unexploded ordnance, discarded military munitions,
        or other military munitions, including explosive and nonexplosive
        materials, and emission, degradation, or breakdown elements of such
        ordnance or munitions.
            ``(5) The term `operational range' means a military range that
        is used for range activities, or a military range that is not
        currently being used, but that is still considered by the Secretary
        to be a range area, is under the jurisdiction, custody, or control
        of the Department of Defense, and has not been put to a new use
        that is incompatible with range activities.
            ``(6) The term `possessions' includes Johnston Atoll, Kingman
        Reef, Midway Island, Nassau Island, Palmyra Island, and Wake
        Island.
            ``(7) The term `Secretary' means the Secretary of Defense.
            ``(8) The term `State' means the several States, the District
        of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
        the Northern Mariana Islands, and the territories and possessions.
            ``(9) The term `unexploded ordnance' means military munitions
        that--
                ``(A) have been primed, fused, armed, or otherwise prepared
            for action;
                ``(B) have been fired, dropped, launched, projected, or
            placed in such a manner as to constitute a hazard to
            operations, installations, personnel, or material; and
                ``(C) remain unexploded either by malfunction, design, or
            any other cause.
            ``(10) The term `United States', in a geographic sense, means
        the States, territories, and possessions and associated navigable
        waters, contiguous zones, and ocean waters of which the natural
        resources are under the exclusive management authority of the
        United States.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``2710. Inventory of unexploded ordnance, discarded military munitions,
    and munitions constituents at defense sites (other than operational
    ranges).''.

        (b) Initial Inventory.--The requirements of section 2710 of title
    10, United States Code, as added by subsection (a), shall be
    implemented as follows:
            (1) The initial inventory required by subsection (a) of such
        section shall be completed not later than May 31, 2003.
            (2) The proposed prioritization protocol required by subsection
        (b) of such section shall be available for public comment not later
        than November 30, 2002.
        SEC. 312. ESTABLISHMENT OF NEW PROGRAM ELEMENT FOR REMEDIATION OF
          UNEXPLODED ORDNANCE, DISCARDED MILITARY MUNITIONS, AND MUNITIONS
          CONSTITUENTS.
        Section 2703 of title 10, United States Code, is amended--
            (1) by redesignating subsections (b) through (f) as subsections
        (c) through (g), respectively; and
            (2) by inserting after subsection (a) the following new
        subsection (b):
        ``(b) Program Elements for Ordnance Remediation.--The Secretary of
    Defense shall establish a program element for remediation of unexploded
    ordnance, discarded military munitions, and munitions constituents
    within each environmental restoration account established under
    subsection (a). The terms `unexploded ordnance', `discarded military
    munitions', and `munitions constituents' have the meanings given such
    terms in section 2710 of this title.''.
        SEC. 313. ASSESSMENT OF ENVIRONMENTAL REMEDIATION OF UNEXPLODED
          ORDNANCE, DISCARDED MILITARY MUNITIONS, AND MUNITIONS
          CONSTITUENTS.
        (a) Inclusion in 2003 Report on Environmental Restoration
    Activities.--The Secretary of Defense shall include in the report
    submitted to Congress under section 2706(a) of title 10, United States
    Code, in 2003 a comprehensive assessment of unexploded ordnance,
    discarded military munitions, and munitions constituents located at
    current and former facilities of the Department of Defense. The
    assessment shall include, at a minimum, the following:
            (1) Separate estimates of the aggregate projected costs of the
        remediation of unexploded ordnance, discarded military munitions,
        and munitions constituents at--
                (A) all operational ranges; and
                (B) all other defense sites.
            (2) A comprehensive plan for addressing the remediation of
        unexploded ordinance, discarded military munitions, and munitions
        constituents at defense sites, including an assessment of the
        funding required and the period of time over which such funding
        will be required.
            (3) An assessment of the technology currently available for the
        remediation of unexploded ordnance, discarded military munitions,
        and munitions constituents.
            (4) An assessment of the impact of improved technology on the
        cost of such remediation and a plan for the development and use of
        such improved technology.
        (b) Requirements for Cost Estimates.--(1) The estimates of
    aggregate projected costs required by subsection (a)(1) shall--
            (A) be stated as a range of aggregate projected costs,
        including a low estimate and a high estimate;
            (B) set forth the differing assumptions underlying each such
        low estimate and high estimate, including--
                (i) any public uses for the operational ranges and other
            defense sites concerned that will be available after the
            remediation is completed;
                (ii) the extent of the remediation required to make the
            operational ranges and other defense sites concerned available
            for such uses; and
                (iii) the technologies to be applied to achieve such level
            of remediation; and
            (C) include, and identify separately, an estimate of the
        aggregate projected costs of the remediation of any ground water
        contamination that may be caused by unexploded ordnance, discarded
        military munitions, or munitions constituents at the operational
        ranges and other defense sites concerned.
        (2) The high estimate of the aggregate projected costs shall be
    based on the assumption that all unexploded ordnance, discarded
    military munitions, and munitions constituents at each operational
    range and other defense site will be addressed, regardless of whether
    there are any current plans to close the range or site or discontinue
    training at the range or site.
        (3) The estimate of the aggregate projected costs of remediation of
    ground water contamination under paragraph (1)(C) shall be based on a
    comprehensive assessment of the risk of such contamination and of the
    actions required to protect the ground water supplies concerned.
        (4) The standards for the report of liabilities of the Department
    of Defense shall not apply to the cost estimates required by subsection
    (a)(1).
        (c) Interim Assessment.--The report submitted to Congress under
    section 2706(a) of title 10, United States Code, in 2002 shall include
    the assessment required by subsection (a) to the extent that the
    information required to be provided as part of the assessment is
    available. The Secretary shall include an explanation of any
    limitations on the information available or qualifications on the
    information provided.
        (d) Definitions.--In this section, the terms ``unexploded
    ordnance'', ``discarded military munitions'', ``munitions
    constituents'', ``operational range'', and ``defense site'' have the
    meanings given such terms in section 2710 of title 10, United States
    Code, as added by section 311.
        SEC. 314. CONFORMITY OF SURETY AUTHORITY UNDER ENVIRONMENTAL
          RESTORATION PROGRAM WITH SURETY AUTHORITY UNDER CERCLA.
        Section 2701(j)(1) of title 10, United States Code, is amended by
    striking ``, or after December 31, 1999''.
        SEC. 315. ELIMINATION OF ANNUAL REPORT ON CONTRACTOR REIMBURSEMENT
          FOR COSTS OF ENVIRONMENTAL RESPONSE ACTIONS.
        (a) Report Elimination.--Section 2706 of title 10, United States
    Code, is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) and (e) as subsections (c)
        and (d), respectively.
        (b) Conforming Amendments.--Subsection (d) of such section, as
    redesignated by subsection (a) of this section, is amended--
            (1) by striking paragraphs (1) and (3); and
            (2) by redesignating paragraphs (2), (4), and (5) as paragraphs
        (1), (2), and (3), respectively.
        SEC. 316. PILOT PROGRAM FOR SALE OF AIR POLLUTION EMISSION
          REDUCTION INCENTIVES.
        (a) Extension.--Section 351(a)(2) of the National Defense
    Authorization Act for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C.
    2701 note) is amended by striking ``September 30, 2001'' and inserting
    ``September 30, 2003''.
        (b) Report Required.--(1) The Secretary of Defense shall prepare a
    report concerning the operation of the pilot program for the sale of
    economic incentives for the reduction of emission of air pollutants
    attributable to military facilities, as authorized by section 351 of
    the National Defense Authorization Act for Fiscal Year 1998 (Public Law
    105-85; 10 U.S.C. 2701 note). The report shall--
            (A) detail all transactions that have been completed under the
        pilot program, the dollar amount of each transaction, and the
        number and type of air pollutants involved in each transaction;
            (B) evaluate the extent to which retention of the proceeds of
        sales under the pilot program, as required by subsection (c) of
        such section, has provided incentives for such sales;
            (C) evaluate the extent of any loss to the United States
        Treasury associated with the pilot program; and
            (D) evaluate the environmental impact of the pilot program.
        (2) Not later than March 1, 2003, the Secretary shall submit the
    report required by paragraph (1) to the Committee on Energy and
    Commerce and the Committee on Armed Services of the House of
    Representatives and the Committee on Environment and Public Works and
    the Committee on Armed Services of the Senate.
        SEC. 317. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY PROGRAM.
        (a) Sense of Congress.--It is the sense of Congress that the
    Secretary of Defense should work to implement fuel efficiency reforms
    that allow for investment decisions based on the true cost of delivered
    fuel, strengthen the linkage between warfighting capability and fuel
    logistics requirements, provide high-level leadership encouraging fuel
    efficiency, target fuel efficiency improvements through science and
    technology investment, and include fuel efficiency in requirements and
    acquisition processes.
        (b) Energy Efficiency Program.--The Secretary shall carry out a
    program to significantly improve the energy efficiency of facilities of
    the Department of Defense through 2010. The Secretary shall designate a
    senior official of the Department of Defense to be responsible for
    managing the program for the Department and a senior official of each
    military department to be responsible for managing the program for such
    department.
        (c) Energy Efficiency Goals.--The goal of the energy efficiency
    program shall be to achieve reductions in energy consumption by
    facilities of the Department of Defense as follows:
            (1) In the case of industrial and laboratory facilities,
        reductions in the average energy consumption per square foot of
        such facilities, per unit of production or other applicable unit,
        relative to energy consumption in 1990--
                (A) by 20 percent by 2005; and
                (B) by 25 percent by 2010.
            (2) In the case of other facilities, reductions in average
        energy consumption per gross square foot of such facilities,
        relative to energy consumption per gross square foot in 1985--
                (A) by 30 percent by 2005; and
                (B) by 35 percent by 2010.
        (d) Strategies for Improving Energy Efficiency.--In order to
    achieve the goals set forth in subsection (c), the Secretary shall, to
    the maximum extent practicable--
            (1) purchase energy-efficient products, as so designated by the
        Environmental Protection Agency and the Department of Energy, and
        other products that are energy-efficient;
            (2) utilize energy savings performance contracts, utility
        energy-efficiency service contracts, and other contracts designed
        to achieve energy conservation;
            (3) use life-cycle cost analysis, including assessment of life-
        cycle energy costs, in making decisions about investments in
        products, services, construction, and other projects;
            (4) conduct energy efficiency audits for approximately 10
        percent of all Department of Defense facilities each year;
            (5) explore opportunities for energy efficiency in industrial
        facilities for steam systems, boiler operation, air compressor
        systems, industrial processes, and fuel switching; and
            (6) retire inefficient equipment on an accelerated basis where
        replacement results in lower life-cycle costs.
        (e) Reporting Requirements.--Not later than January 1, 2002, and
    each January 1 thereafter through 2010, the Secretary shall submit to
    the congressional defense committees the report required to be prepared
    by the Secretary pursuant to section 303 of Executive Order 13123 (64
    Fed. Reg. 30851; 42 U.S.C. 8251 note) regarding the progress made
    toward achieving the energy efficiency goals of the Department of
    Defense.
        SEC. 318. PROCUREMENT OF ALTERNATIVE FUELED AND HYBRID LIGHT DUTY
          TRUCKS.
        (a) Defense Fleets Not Covered by Requirement in Energy Policy Act
    of 1992.--(1) The Secretary of Defense shall coordinate with the
    Administrator of General Services to ensure that only hybrid vehicles
    are procured by the Administrator for the Department of Defense fleet
    of light duty trucks that is not in a fleet of vehicles to which
    section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) applies.
        (2) The Secretary, in consultation with the Administrator, may
    waive the policy regarding the procurement of hybrid vehicles in
    paragraph (1) to the extent that the Secretary determines necessary--
            (A) in the case of trucks that are exempt from the requirements
        of section 303 of the Energy Policy Act of 1992 for national
        security reasons under subsection (b)(3)(E) of such section, to
        meet specific requirements of the Department of Defense for
        capabilities of light duty trucks;
            (B) to procure vehicles consistent with the standards
        applicable to the procurement of fleet vehicles for the Federal
        Government; or
            (C) to adjust to limitations on the commercial availability of
        light duty trucks that are hybrid vehicles.
        (3) This subsection applies with respect to procurements of light
    duty trucks in fiscal year 2005 and subsequent fiscal years.
        (b) Requirement To Exceed Requirement in Energy Policy Act of
    1992.--(1) The Secretary of Defense shall coordinate with the
    Administrator of General Services to ensure that, of the light duty
    trucks procured in fiscal years after fiscal year 2004 for the fleets
    of light duty vehicles of the Department of Defense to which section
    303 of the Energy Policy Act of 1992 applies--
            (A) five percent of the total number of such trucks that are
        procured in each of fiscal years 2005 and 2006 are alternative
        fueled vehicles or hybrid vehicles; and
            (B) ten percent of the total number of such trucks that are
        procured in each fiscal year after fiscal year 2006 are alternative
        fueled vehicles or hybrid vehicles.
        (2) Light duty trucks acquired for the Department of Defense that
    are counted to comply with section 303 of the Energy Policy Act of 1992
    for a fiscal year shall be counted to determine the total number of
    light duty trucks procured for the Department of Defense for that
    fiscal year for the purposes of paragraph (1), but shall not be counted
    to satisfy the requirement in that paragraph.
        (c) Report on Plans for Implementation.--At the same time that the
    President submits the budget for fiscal year 2003 to Congress under
    section 1105(a) of title 31, United States Code, the Secretary shall
    submit to Congress a report summarizing the plans for carrying out
    subsections (a) and (b).
        (d) Definitions.--In this section:
            (1) The term ``hybrid vehicle'' means a motor vehicle that
        draws propulsion energy from onboard sources of stored energy that
        are both--
                (A) an internal combustion or heat engine using combustible
            fuel; and
                (B) a rechargeable energy storage system.
            (2) The term ``alternative fueled vehicle'' has the meaning
        given that term in section 301 of the Energy Policy Act of 1992 (42
        U.S.C. 13211).
        SEC. 319. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR
          CERTAIN RESPONSE COSTS IN CONNECTION WITH HOOPER SANDS SITE,
          SOUTH BERWICK, MAINE.
        (a) Authority To Reimburse.--Using amounts specified in subsection
    (c), the Secretary of the Navy may pay $1,005,478 to the Hooper Sands
    Special Account within the Hazardous Substance Superfund established by
    section 9507 of the Internal Revenue Code of 1986 to reimburse the
    Environmental Protection Agency for the response costs incurred by the
    Environmental Protection Agency for actions taken between May 12, 1992,
    and July 31, 2000, pursuant to the Comprehensive Environmental
    Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et
    seq.) at the Hooper Sands site in South Berwick, Maine, in accordance
    with the interagency agreement entered into by the Department of the
    Navy and the Environmental Protection Agency in January 2001.
        (b) Treatment of Reimbursement.--Payment of the amount authorized
    by subsection (a) shall be in full satisfaction of amounts due from the
    Department of the Navy to the Environmental Protection Agency for the
    response costs described in that subsection.
        (c) Source of Funds.--Payment under subsection (a) shall be made
    using amounts authorized to be appropriated by section 301(a)(15) to
    the Environmental Restoration Account, Navy, established by section
    2703(a)(3) of title 10, United States Code.

    SEC. 320. RIVER MITIGATION STUDIES.

        (a) Port of Orange, Sabine River.--The Secretary of Defense may
    conduct a study regarding protruding structures and submerged objects
    remaining from the World War II Navy ship building industry located at
    the former Navy installation in Orange, Texas, which create
    navigational hazards along the Sabine River and surrounding the Port of
    Orange.
        (b) Philadelphia Naval Shipyard, Delaware River.--The Secretary of
    Defense may conduct a study regarding floating and partially submerged
    debris possibly relating to the Philadelphia Naval Shipyard in that
    portion of the Delaware River from Philadelphia, Pennsylvania, to the
    mouth of the river which create navigational hazards along the river.
        (c) Use of Existing Information.--In conducting a study authorized
    by this section, the Secretary of Defense shall take into account any
    information available from other studies conducted in connection with
    the same navigation channels.
        (d) Consultation.--The Secretary of Defense shall conduct the
    studies authorized by this section in consultation with appropriate
    State and local government entities and Federal agencies.
        (e) Report on Study Results.--Not later than April 30, 2002, the
    Secretary of Defense shall submit to the Committee on Armed Services of
    the House of Representatives and the Committee on Armed Services of the
    Senate a report that--
            (1) summarizes the results of each study conducted under this
        section; and
            (2) contains an evaluation by the Secretary of the extent to
        which the navigational hazards identified in each study are the
        result of Department of Defense activities.
        (f) Cost Sharing.--Nothing in this section is intended to require
    non-Federal cost sharing of the costs incurred by the Secretary of
    Defense to conduct a study authorized by this section.
        (g) Relation to Other Laws and Agreements.--This section is not
    intended to modify any authorities provided to the Secretary of the
    Army by the Water Resources Development Act of 1986 (33 U.S.C. 2201 et
    seq.), nor is it intended to modify any non-Federal cost-sharing
    responsibilities outlined in any local cooperation agreements.

      Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

        SEC. 331. COMMISSARY BENEFITS FOR NEW MEMBERS OF THE READY RESERVE.
        (a) Eligibility.--Section 1063 of title 10, United States Code, is
    amended--
            (1) by redesignating subsections (b) and (c) as subsections (c)
        and (d), respectively; and
            (2) by inserting after subsection (a) the following new
        subsection (b):
        ``(b) Eligibility of New Members.--(1) The Secretary concerned
    shall authorize a new member of the Ready Reserve to use commissary
    stores of the Department of Defense for a number of days accruing at
    the rate of two days for each month in which the member participates
    satisfactorily in training required under section 10147(a)(1) of this
    title or section 502(a) of title 32, as the case may be.
        ``(2) For the purposes of paragraph (1), a person shall be
    considered a new member of the Ready Reserve upon becoming a member and
    continuing without a break in the membership until the earlier of--
            ``(A) the date on which the member becomes eligible to use
        commissary stores under subsection (a); or
            ``(B) December 31 of the first calendar year in which the
        membership has been continuous for the entire year.
        ``(3) A new member may not be authorized under this subsection to
    use commissary stores for more than 24 days for any calendar year.''.
        (b) Required Documentation.--Subsection (d) of such section, as
    redesignated by subsection (a)(1), is amended by adding at the end the
    following new sentence: ``The regulations shall specify the required
    documentation of satisfactory participation in training for the
    purposes of subsection (b).''.
        (c) Conforming Amendment.--Subsection (c) of such section, as
    redesignated by subsection (a)(1), is amended by striking ``Subsection
    (a)'' and inserting ``Subsections (a) and (b)''.
        (d) Clerical Amendments.--(1) The heading for such section is
    amended to read as follows:
    ``Sec. 1063. Use of commissary stores: members of Ready Reserve''.
        (2) Subsection (a) of such section is amended by striking ``of
    Ready Reserve'' and inserting ``With 50 or More Creditable Points''.
        (3) The item relating to such section in the table of sections at
    the beginning of chapter 54 of title 10, United States Code, is amended
    to read as follows:
    ``1063. Use of commissary stores: members of Ready Reserve.''.
        SEC. 332. REIMBURSEMENT FOR USE OF COMMISSARY FACILITIES BY
          MILITARY DEPARTMENTS FOR PURPOSES OTHER THAN COMMISSARY SALES.
        (a) Requirement.--Chapter 147 of title 10, United States Code, is
    amended by inserting after section 2482a the following new section:
    ``Sec. 2483. Commissary stores: reimbursement for use of commissary
         facilities by military departments
        ``(a) Payment Required.--The Secretary of a military department
    shall pay the Defense Commissary Agency the amount determined under
    subsection (b) for any use of a commissary facility by the military
    department for a purpose other than commissary sales or operations in
    support of commissary sales.
        ``(b) Amount.--The amount payable under subsection (a) for use of a
    commissary facility by a military department shall be equal to the
    share of depreciation of the facility that is attributable to that use,
    as determined under regulations prescribed by the Secretary of Defense.
        ``(c) Covered Facilities.--This section applies with respect to a
    commissary facility that is acquired, constructed, converted, expanded,
    installed, or otherwise improved (in whole or in part) with the
    proceeds of an adjustment or surcharge applied under section 2486(c) of
    this title.
        ``(d) Crediting of Payments.--The Director of the Defense
    Commissary Agency shall credit amounts paid under this section for use
    of a facility to an appropriate account to which proceeds of an
    adjustment or surcharge referred to in subsection (c) are credited.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    2482a the following new item:

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

        SEC. 333. PUBLIC RELEASES OF COMMERCIALLY VALUABLE INFORMATION OF
          COMMISSARY STORES.
        (a) Limitations and Authority.--Section 2487 of title 10, United
    States Code, is amended to read as follows:
    ``Sec. 2487. Commissary stores: release of certain commercially
         valuable information to the public
        ``(a) Authority To Limit Release.--(1) The Secretary of Defense may
    limit the release to the public of any information described in
    paragraph (2) if the Secretary determines that it is in the best
    interest of the Department of Defense to limit the release of such
    information. If the Secretary determines to limit the release of any
    such information, the Secretary may provide for limited release of such
    information in accordance with subsection (b).
        ``(2) Paragraph (1) applies to the following:
            ``(A) Information contained in the computerized business
        systems of commissary stores or the Defense Commissary Agency that
        is collected through or in connection with the use of electronic
        scanners in commissary stores, including the following information:
                ``(i) Data relating to sales of goods or services.
                ``(ii) Demographic information on customers.
                ``(iii) Any other information pertaining to commissary
            transactions and operations.
            ``(B) Business programs, systems, and applications (including
        software) relating to commissary operations that were developed
        with funding derived from commissary surcharges.
        ``(b) Release Authority.--(1) The Secretary of Defense may, using
    competitive procedures, enter into a contract to sell information
    described in subsection (a)(2).
        ``(2) The Secretary of Defense may release, without charge,
    information on an item sold in commissary stores to the manufacturer or
    producer of that item or an agent of the manufacturer or producer.
        ``(3) The Secretary of Defense may, by contract entered into with a
    business, grant to the business a license to use business programs
    referred to in subsection (a)(2)(B), including software used in or
    comprising any such program. The fee charged for the license shall be
    based on the costs of similar programs developed and marketed by
    businesses in the private sector, determined by means of surveys.
        ``(4) Each contract entered into under this subsection shall
    specify the amount to be paid for information released or a license
    granted under the contract, as the case may be.
        ``(c) Form of Release.--Information described in subsection (a)(2)
    may not be released, under subsection (b) or otherwise, in a form that
    identifies any customer or that provides information making it possible
    to identify any customer.
        ``(d) Receipts.--Amounts received by the Secretary under this
    section shall be credited to funds derived from commissary surcharges,
    shall be merged with those funds, and shall be available for the same
    purposes as the funds with which merged.
        ``(e) Definition.--In this section, the term `commissary surcharge'
    means any adjustment or surcharge applied under section 2486(c) of this
    title.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 147 of title 10, United States Code, is amended by striking the
    item relating to section 2487 and inserting the following new item:

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

        SEC. 334. REBATE AGREEMENTS WITH PRODUCERS OF FOODS PROVIDED UNDER
          SPECIAL SUPPLEMENTAL FOOD PROGRAM.
        Section 1060a of title 10, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections (f)
        and (g), respectively; and
            (2) by inserting after subsection (d) the following new
        subsection:
        ``(e) Rebate Agreements With Food Producers.--(1) In the
    administration of the program under this section, the Secretary of
    Defense may enter into a contract with a producer of a particular brand
    of food that provides for--
            ``(A) the Secretary of Defense to procure that particular brand
        of food, exclusive of other brands of the same or similar food, for
        the purpose of providing the food in commissary stores of the
        Department of Defense as a supplemental food under the program; and
            ``(B) the producer to rebate to the Secretary amounts equal to
        agreed portions of the amounts paid by the Secretary for the
        procurement of that particular brand of food for the program.
        ``(2) The Secretary of Defense shall use competitive procedures
    under chapter 137 of this title to enter into contracts under this
    subsection.
        ``(3) The period covered by a contract entered into under this
    subsection may not exceed one year. No such contract may be extended by
    a modification of the contract, by exercise of an option, or by any
    other means. Nothing in this paragraph prohibits a contractor under a
    contract entered into under this subsection for any year from
    submitting an offer for, and being awarded, a contract that is to be
    entered into under this subsection for a successive year.
        ``(4) Amounts rebated under a contract entered into under paragraph
    (1) shall be credited to the appropriation available for carrying out
    the program under this section in the fiscal year in which rebated,
    shall be merged with the other sums in that appropriation, and shall be
    available for the program for the same period as the other sums in the
    appropriation.''.
        SEC. 335. CIVIL RECOVERY FOR NONAPPROPRIATED FUND INSTRUMENTALITY
          COSTS RELATED TO SHOPLIFTING.
        Section 3701(b)(1)(B) of title 31, United States Code, is amended
    by inserting before the comma at the end the following: ``, including
    actual and administrative costs related to shoplifting, theft
    detection, and theft prevention''.

                     Subtitle D--Workforce and Depot Issues

        SEC. 341. REVISION OF AUTHORITY TO WAIVE LIMITATION ON PERFORMANCE
          OF DEPOT-LEVEL MAINTENANCE.
        Section 2466 of title 10, United States Code, is amended--
            (1) by striking subsection (c); and
            (2) by inserting after subsection (a) the following new
        subsections:
        ``(b) Waiver of Limitation.--The Secretary of Defense may waive the
    limitation in subsection (a) for a fiscal year if--
            ``(1) the Secretary determines that the waiver is necessary for
        reasons of national security; and
            ``(2) the Secretary submits to Congress a notification of the
        waiver together with the reasons for the waiver.
        ``(c) Prohibition on Delegation of Waiver Authority.--The authority
    to grant a waiver under subsection (b) may not be delegated.''.
        SEC. 342. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON
          PRIVATE SECTOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.
        Section 2474 of title 10, United States Code, is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new
        subsection (f):
        ``(f) Exclusion of Certain Expenditures From Percentage
    Limitation.--(1) Amounts expended out of funds described in paragraph
    (2) for the performance of a depot-level maintenance and repair
    workload by non-Federal Government personnel at a Center of Industrial
    and Technical Excellence shall not be counted for purposes of applying
    the percentage limitation in section 2466(a) of this title if the
    personnel are provided by private industry or other entities outside
    the Department of Defense pursuant to a public-private partnership.
        ``(2) The funds referred to in paragraph (1) are funds available to
    the military departments and Defense Agencies for depot-level
    maintenance and repair workloads for fiscal years 2002 through 2005.
        ``(3) All funds covered by paragraph (1) shall be included as a
    separate item in the reports required under paragraphs (1), (2), and
    (3) of section 2466(e) of this title.''.
        SEC. 343. PROTECTIONS FOR PURCHASERS OF ARTICLES AND SERVICES
          MANUFACTURED OR PERFORMED BY WORKING-CAPITAL FUNDED INDUSTRIAL
          FACILITIES OF THE DEPARTMENT OF DEFENSE.
        (a) General Rule.--Section 2563(c) of title 10, United States Code,
    is amended--
            (1) in paragraph (1)(B), by striking ``in any case of willful
        misconduct or gross negligence'' and inserting ``as provided in
        paragraph (3)''; and
            (2) by adding at the end the following new paragraph:
        ``(3) Paragraph (1)(B) does not apply in any case of willful
    misconduct or gross negligence or in the case of a claim by a purchaser
    of articles or services under this section that damages or injury arose
    from the failure of the Government to comply with quality, schedule, or
    cost performance requirements in the contract to provide the articles
    or services.''.
        (b) Conforming Amendment.--Section 2474(e)(2)(B)(i) of such title
    is amended by striking ``in a case of willful conduct or gross
    negligence'' and inserting ``under the circumstances described in
    section 2563(c)(3) of this title''.
        SEC. 344. REVISION OF DEADLINE FOR ANNUAL REPORT ON COMMERCIAL AND
          INDUSTRIAL ACTIVITIES.
        Section 2461(g) of title 10, United States Code, is amended by
    striking ``February 1'' and inserting ``June 30''.
        SEC. 345. PILOT MANPOWER REPORTING SYSTEM IN DEPARTMENT OF THE
          ARMY.
        (a) Annual Reporting Requirement.--Not later than March 1 of each
    of the fiscal years 2002 through 2004, the Secretary of the Army shall
    submit to Congress a report describing the use during the previous
    fiscal year of non-Federal entities to provide services to the
    Department of the Army.
        (b) Content of Report.--Using information available from existing
    data collection and reporting systems available to the Department of
    the Army and the non-Federal entities referred to in subsection (a),
    the report shall--
            (1) specify the number of work year equivalents performed by
        individuals employed by non-Federal entities in providing services
        to the Department;
            (2) categorize the information by Federal supply class or
        service code; and
            (3) indicate the appropriation from which the services were
        funded and the major organizational element of the Department
        procuring the services.
        (c) Limitation on Requirement for Non-Federal Entities To Provide
    Information.--For the purposes of meeting the requirements set forth in
    subsection (b), the Secretary of the Army may not require the provision
    of information beyond the information that is currently provided to the
    Department of the Army by the non-Federal entities referred to in
    subsection (a), except for the number of work year equivalents
    associated with Department of the Army contracts, identified by
    contract number, to the extent this information is available to the
    contractor from existing data collection systems.
        (d) Repeal of Obsolete Reporting Requirement.--Section 343 of the
    National Defense Authorization Act for Fiscal Year 2000 (Public Law
    106-65; 113 Stat. 569) is repealed.
        SEC. 346. DEVELOPMENT OF ARMY WORKLOAD AND PERFORMANCE SYSTEM AND
          WHOLESALE LOGISTICS MODERNIZATION PROGRAM.
        (a) Relationship Between Systems.--(1) The Army Workload and
    Performance System, including all applications in the master plan
    submitted to Congress on June 8, 2001, and any revisions to the master
    plan, shall be developed in such a manner that its functionality and
    identity are in compliance with all statutory requirements. The Army
    Workload and Performance System shall continue as a standard Army-wide
    manpower system under the supervision and management of the Secretary
    of the Army.
        (2) The requirement in paragraph (1) is intended to encourage the
    sharing of data between the Army Workload and Performance System and
    the Wholesale Logistics Modernization Program and the development of
    the processes necessary to permit or enhance such data sharing.
        (b) Annual Progress Reports.--(1) Not later than February 1 of each
    year, the Secretary of the Army shall submit to Congress a progress
    report on the implementation of the master plan for the Army Workload
    and Performance System during the preceding year. The report shall
    specifically address any changes made to the master plan since the
    previous report.
        (2) The reporting requirement shall terminate when the Secretary
    certifies to Congress that the Army Workload and Performance System is
    fully implemented.
        (c) GAO Evaluation.--Not later than 60 days after the Secretary of
    the Army submits to Congress a progress report under subsection (b),
    the Comptroller General shall submit to Congress an evaluation of the
    report.
        (d) Army Workload and Performance System Defined.--The term ``Army
    Workload and Performance System'' includes all applications in the
    master plan for the System submitted to Congress on June 8, 2001, and
    any revision of such master plan.

                    Subtitle E--Defense Dependents Education

        SEC. 351. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT
          DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF
          DEFENSE CIVILIAN EMPLOYEES.
        (a) Continuation of Department of Defense Program for Fiscal Year
    2002.--Of the amount authorized to be appropriated pursuant to section
    301(a)(5) for operation and maintenance for Defense-wide activities--
            (1) $30,000,000 shall be available only for the purpose of
        providing educational agencies assistance to local educational
        agencies; and
            (2) $1,000,000 shall be available only for the purpose of
        making payments to local educational agencies to assist such
        agencies in adjusting to reductions in the number of military
        dependent students as a result of the closure or realignment of
        military installations, as provided in section 386(d) of the
        National Defense Authorization Act for Fiscal Year 1993 (Public Law
        102-484; 20 U.S.C. 7703 note).
        (b) Notification.--Not later than June 30, 2002, the Secretary of
    Defense shall notify each local educational agency that is eligible for
    assistance or a payment under subsection (a) for fiscal year 2002 of--
            (1) that agency's eligibility for the assistance or payment;
        and
            (2) the amount of the assistance or payment for which that
        agency is eligible.
        (c) Disbursement of Funds.--The Secretary of Defense shall disburse
    funds made available under subsection (a) not later than 30 days after
    the date on which notification to the eligible local educational
    agencies is provided pursuant to subsection (b).
        (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means
        assistance authorized under section 386(b) of the National Defense
        Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20
        U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning given
        that term in section 8013(9) of the Elementary and Secondary
        Education Act of 1965 (20 U.S.C. 7713(9)).
        SEC. 352. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.
        Of the amount authorized to be appropriated pursuant to section
    301(a)(5) for operation and maintenance for Defense-wide activities,
    $5,000,000 shall be available for payments under section 363 of the
    Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001
    (as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20
    U.S.C. 7703a).
        SEC. 353. AVAILABILITY OF AUXILIARY SERVICES OF DEFENSE DEPENDENTS'
          EDUCATION SYSTEM FOR DEPENDENTS WHO ARE HOME SCHOOL STUDENTS.
        Section 1407 of the Defense Dependents' Education Act of 1978 (20
    U.S.C. 926) is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new
        subsection:
        ``(d) Auxiliary Services Available to Home School Students.--(1) A
    dependent who is educated in a home school setting, but who is eligible
    to enroll in a school of the defense dependents' education system,
    shall be permitted to use or receive auxiliary services of that school
    without being required to either enroll in that school or register for
    a minimum number of courses offered by that school. The dependent may
    be required to satisfy other eligibility requirements and comply with
    standards of conduct applicable to students actually enrolled in that
    school who use or receive the same auxiliary services.
        ``(2) For purposes of paragraph (1), the term `auxiliary services'
    includes use of academic resources, access to the library of the
    school, after hours use of school facilities, and participation in
    music, sports, and other extracurricular and interscholastic
    activities.''.
        SEC. 354. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION
          PROVIDED FOR TEACHERS IN THE DEPARTMENT OF DEFENSE OVERSEAS
          DEPENDENTS' SCHOOLS.
        (a) GAO Study Required.--The Comptroller General shall carry out a
    study of the adequacy of the pay and other elements of the compensation
    provided for teachers in the defense dependents' education system
    established under the Defense Dependents' Education Act of 1978 (20
    U.S.C. 921 et seq.).
        (b) Specific Considerations.--In carrying out the study, the
    Comptroller General shall consider the following issues:
            (1) Whether the compensation is adequate for recruiting and
        retaining high quality teachers.
            (2) Whether any revision of the Defense Department Overseas
        Teachers Pay and Personnel Practices Act (20 U.S.C. 901 et seq.) or
        the regulations under that Act is advisable to address any problems
        identified with respect to the recruitment and retention of high
        quality teachers or for other purposes.
        (c) Report.--Not later than May 1, 2002, the Comptroller General
    shall submit to Congress a report containing the results of the study,
    including--
            (1) the Comptroller General's conclusions on the issues
        considered; and
            (2) any recommendations for actions that the Comptroller
        General considers appropriate.

                           Subtitle F--Other Matters

        SEC. 361. AVAILABILITY OF EXCESS DEFENSE PERSONAL PROPERTY TO
          SUPPORT DEPARTMENT OF VETERANS AFFAIRS INITIATIVE TO ASSIST
          HOMELESS VETERANS.
        (a) Transfer Authority.--Subsection (a) of section 2557 of title
    10, United States Code, is amended--
            (1) by striking ``The Secretary'' and inserting ``(1) The
        Secretary''; and
            (2) by adding at the end the following new paragraph:
        ``(2) The Secretary of Defense may make excess clothing, shoes,
    sleeping bags, and related nonlethal excess supplies available to the
    Secretary of Veterans Affairs for distribution to homeless veterans and
    programs assisting homeless veterans. The transfer of nonlethal excess
    supplies to the Secretary of Veterans Affairs under this paragraph
    shall be without reimbursement.''.
        (b) Clerical Amendments.--(1) The heading of such section is
    amended to read as follows:
    ``Sec. 2557. Excess nonlethal supplies: availability for homeless
         veteran initiatives and humanitarian relief''.
        (2) The table of sections at the beginning of chapter 152 of such
    title is amended by striking the item relating to section 2557 and
    inserting the following new item:

    ``2557. Excess nonlethal supplies: availability for homeless veteran
    initiatives and humanitarian relief.''.

        SEC. 362. INCREMENTAL IMPLEMENTATION OF NAVY-MARINE CORPS INTRANET
          CONTRACT.
        (a) Additional Phase-In Authority.--Section 814 of the Floyd D.
    Spence National Defense Authorization Act for Fiscal Year 2001 (as
    enacted into law by Public Law 106-398; 114 Stat. 1654A-215) is
    amended--
            (1) by redesignating subsections (c), (d), (e), and (f) as
        subsections (f), (g), (h), and (i), respectively; and
            (2) by inserting after subsection (b) the following new
        subsections:
        ``(c) Additional Phase-In Authority Pending Second Joint
    Certification.--(1)(A) Notwithstanding subsection (b)(3), the Secretary
    of the Navy may order additional work stations under the Navy-Marine
    Corps Intranet contract in excess of the number provided in the first
    increment of the contract under subsection (b)(2), but not to exceed an
    additional 100,000 work stations. The authority of the Secretary of the
    Navy to order additional work stations under this paragraph is subject
    to approval by both the Under Secretary of Defense for Acquisition,
    Technology, and Logistics and the Chief Information Officer of the
    Department of Defense.
        ``(B) The Under Secretary of Defense for Acquisition, Technology,
    and Logistics and the Chief Information Officer of the Department of
    Defense may not grant approval to the Secretary of the Navy to order
    additional work stations under subparagraph (A) until a three-phase
    customer test and evaluation, observed by the Department of Defense, is
    completed for a statistically significant representative sample of the
    work stations operating on the Navy-Marine Corps Intranet. The test and
    evaluation shall include end user testing of day-to-day operations
    (including e-mail capability and performance), scenario-driven events,
    and scenario-based interoperability testing.
        ``(2)(A) Notwithstanding subsection (b)(3), the Secretary of the
    Navy may order additional work stations under the Navy-Marine Corps
    Intranet contract in excess of the number provided in the first
    increment of the contract under subsection (b)(2) and the number
    ordered under the authority of paragraph (1), but not to exceed an
    additional 150,000 work stations. The authority of the Secretary of the
    Navy to order additional work stations under this paragraph is also
    subject to approval by both the Under Secretary of Defense for
    Acquisition, Technology, and Logistics and the Chief Information
    Officer of the Department of Defense.
        ``(B) The Under Secretary of Defense for Acquisition, Technology,
    and Logistics and the Chief Information Officer of the Department of
    Defense may not grant approval to the Secretary of the Navy to order
    additional work stations under subparagraph (A) until each of the
    following occurs:
            ``(i) There has been a full transition of not less than 20,000
        work stations to the Navy-Marine Corps Intranet.
            ``(ii) The work stations referred to in clause (i) have met
        applicable service-level agreements specified in the Navy-Marine
        Corps Intranet contract, as determined by contractor performance
        measurement under oversight by the Department of the Navy.
            ``(iii) The Chief Information Officer of the Navy certifies to
        the Secretary of the Navy and the Chief Information Officer of the
        Department of Defense that the results of the performance
        evaluation referred to in clause (ii) are acceptable.
        ``(3) Of the work stations ordered under the authority provided by
    paragraph (2), not more than 50 percent may reach the major milestone
    known as `assumption of responsibility' until each of the following
    occurs:
            ``(A) All work stations for the headquarters of the Naval Air
        Systems Command have met applicable service-level agreements
        specified in the Navy-Marine Corps Intranet contract, as determined
        by contractor performance measurement under oversight by the
        Department of the Navy.
            ``(B) The Chief Information Officer of the Navy certifies to
        the Secretary of the Navy and the Chief Information Officer of the
        Department of Defense that the results of the performance
        evaluation referred to in subparagraph (B) are acceptable.
        ``(4) For the purposes of this section, when the information
    infrastructure and systems of a user of a work station are transferred
    into Navy-Marine Corps Intranet infrastructure and systems under the
    Navy-Marine Corps Intranet contract consistent with the applicable
    service-level agreements specified in the Navy-Marine Corps Intranet
    contract, the work station shall be considered as having been provided
    for the Navy-Marine Corps Intranet.
        ``(d) Reporting and Review Requirements.--(1) If work stations are
    ordered using the authority provided by paragraph (1) or (2) of
    subsection (c), the Secretary of the Navy shall submit to Congress a
    report, current as of the date the determination is made to order the
    work stations, on the following:
            ``(A) The number of work stations operating on the Navy-Marine
        Corps Intranet, including the number of work stations regarding
        which assumption of responsibility has occurred.
            ``(B) The status of testing and implementation of the Navy-
        Marine Corps Intranet program.
            ``(C) The number of work stations to be ordered under paragraph
        (1) or (2) of subsection (c), whichever applies.
        ``(2) A report containing the information required by paragraph (1)
    shall also be submitted to Congress when the requirements of paragraph
    (3) of subsection (c) are satisfied and additional work stations under
    the Navy-Marine Corps Intranet contract are authorized to reach
    assumption of responsibility.
        ``(3) The Comptroller General shall conduct a review of the impact
    that participation in the Navy-Marine Corps Intranet program has on
    information technology costs of working capital funded industrial
    facilities of the Department of the Navy and submit the results of the
    review to Congress.''.
        (b) Navy-Marine Corps Intranet Manager.--Such section is further
    amended by inserting after subsection (d), as added by subsection
    (a)(2) of this section, the following new subsection:
        ``(e) Assignment of Navy-Marine Corps Intranet Manager.--The
    Secretary of the Navy shall assign an employee of the Department of the
    Navy to the Navy-Marine Corps Intranet program whose sole
    responsibility will be to oversee and direct the program. The employee
    so assigned may not also be the program executive officer.''.
        (c) Definitions.--Subsection (i) of such section, as redesignated
    by subsection (a)(1) of this section, is amended--
            (1) by striking ``Navy-Marine Corps Intranet Contract
        Defined.--'' and inserting ``Definitions.--(1)''; and
            (2) by adding at the end the following new paragraph:
            ``(2) In this section, the term `assumption of responsibility',
        with respect to a work station, means the point at which the
        contractor team under the Navy-Marine Corps Intranet contract
        assumes operational control of, and responsibility for, the
        existing information infrastructure and systems of a work station,
        in order to prepare for ultimate transition of the work station to
        the Navy-Marine Corps Intranet.''.
        SEC. 363. COMPTROLLER GENERAL STUDY AND REPORT OF NATIONAL GUARD
          DISTRIBUTIVE TRAINING TECHNOLOGY PROJECT.
        (a) Study Required.--The Comptroller General of the United States
    shall conduct a study of the Distributive Training Technology Project
    of the National Guard. The study shall examine--
            (1) current requirements of the National Guard for
        interconnection of networks of the Distributive Training Technology
        Project with other networks, including networks of the Federal
        Emergency Management Agency and other Federal, State, and local
        emergency preparedness and response agencies; and
            (2) future requirements of the National Guard for
        interconnection of networks of the Project with other networks,
        including those Federal and State agencies having disaster response
        functions.
        (b) Elements of Study.--For both the current requirements
    identified under subsection (a)(1) and future requirements identified
    under subsection (a)(2), the study shall examine the following:
            (1) Appropriate connections between the Project and other
        networks.
            (2) Means of protecting the Project from outside intrusion.
            (3) Impediments to interconnectivity, including the extent to
        which national security concerns affect interconnectivity and the
        technological capability of the Department of Defense to impede
        interconnectivity, as well as other concerns or limitations that
        affect interconnectivity.
            (4) Means of improving interconnectivity.
        (c) Report.--Not later than 270 days after the date of the
    enactment of this Act, the Comptroller General shall submit to the
    Committee on Armed Services of the Senate and the Committee on Armed
    Services of the House of Representatives a report on the study
    conducted under subsection (a). The report shall describe the results
    of the study and shall include any recommendations that the Comptroller
    General considers appropriate in light of the study.
        SEC. 364. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT
          PROGRAM.
        (a) Extension of Authority.--Subsection (f) of section 391 of the
    National Defense Authorization Act for Fiscal Year 1998 (Public Law
    105-85; 10 U.S.C. 2304 note) is amended by striking ``September 30,
    2000'' and inserting ``September 30, 2003''.
        (b) Reporting Requirements.--Subsection (g) of such section is
    amended--
            (1) in paragraph (1), by striking ``January 1, 2001'' and
        inserting ``January 1, 2003''; and
            (2) in paragraph (2), by striking ``March 1, 2001'' and
        inserting ``March 1, 2003''.
        SEC. 365. EVALUATION OF CURRENT DEMONSTRATION PROGRAMS TO IMPROVE
          QUALITY OF PERSONAL PROPERTY SHIPMENTS OF MEMBERS.
        (a) Completion of Evaluation; Report.--Not later than March 31,
    2002, the Secretary of Defense shall complete the ongoing evaluation of
    all test programs regarding the transportation of household goods for
    members of the Armed Forces and submit to Congress a report containing
    the results of such evaluation.
        (b) Contents of Report.--The report shall include--
            (1) the results of each test program evaluated, including
        whether the test program satisfied the goals for the movement of
        such household goods (as contained in the General Accounting Report
        NSIAD 97-49) and whether current business processes and information
        technology capabilities require upgrading or other changes to
        improve the transportation of such household goods; and
            (2) recommendations for policy improvements for military
        household moves worldwide, including an estimate of the cost to
        implement each recommendation.
        SEC. 366. SENSE OF CONGRESS REGARDING SECURITY TO BE PROVIDED AT
          2002 WINTER OLYMPIC GAMES.
        It is the sense of Congress that the Secretary of Defense, upon
    receipt of the certification of the Attorney General required by
    section 2564(a) of title 10, United States Code, should authorize the
    provision of assistance in support of essential security and safety at
    the 2002 Winter Olympic Games to be held in Salt Lake City, Utah, and
    other locations in the State of Utah.

                  TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                            Subtitle A--Active Forces

    Sec. 401. End strengths for active forces.
    Sec. 402. Revision in permanent end strength minimum levels.
    Sec. 403. Increase in senior enlisted active duty grade limit for Navy,
              Marine Corps, and Air Force.

                           Subtitle B--Reserve Forces

    Sec. 411. End strengths for Selected Reserve.
    Sec. 412. End strengths for Reserves on active duty in support of the
              reserves.
    Sec. 413. End strengths for military technicians (dual status).
    Sec. 414. Fiscal year 2002 limitation on non-dual status technicians.
    Sec. 415. Limitations on numbers of reserve personnel serving on active
              duty or full-time National Guard duty in certain grades for
              administration of reserve components.

            Subtitle C--Other Matters Relating to Personnel Strengths

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

                   Subtitle D--Authorization of Appropriations

    Sec. 431. Authorization of appropriations for military personnel.

                           Subtitle A--Active Forces

    SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

        The Armed Forces are authorized strengths for active duty personnel
    as of September 30, 2002, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 376,000.
            (3) The Marine Corps, 172,600.
            (4) The Air Force, 358,800.
        SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.
        Section 691(b) of title 10, United States Code, is amended--
            (1) in paragraph (2), by striking ``372,000'' and inserting
        ``376,000''; and
            (2) in paragraph (4), by striking ``357,000'' and inserting
        ``358,800''.
        SEC. 403. INCREASE IN SENIOR ENLISTED ACTIVE DUTY GRADE LIMIT FOR
          NAVY, MARINE CORPS, AND AIR FORCE.
        Section 517(a) of title 10, United States Code, is amended by
    striking ``2 percent (or, in the case of the Army, 2.5 percent)'' and
    inserting ``2.5 percent''.

                           Subtitle B--Reserve Forces

    SEC. 411. 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, 90.
            (4) For the Air National Guard of the United States, 350.
        (b) Non-Dual Status Technicians Defined.--In this section, the term
    ``non-dual status technician'' has the meaning given that term in
    section 10217(a) of title 10, United States Code.
        SEC. 415. LIMITATIONS ON NUMBERS OF RESERVE PERSONNEL SERVING ON
          ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY IN CERTAIN GRADES
          FOR ADMINISTRATION OF RESERVE COMPONENTS.
        (a) Officers.--The text of section 12011 of title 10, United States
    Code, is amended to read as follows:
        ``(a) Limitations.--(1) Of the total number of members of a reserve
    component who are serving on full-time reserve component duty at the
    end of any fiscal year, the number of those members who may be serving
    in each of the grades of major, lieutenant 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.--(1) Upon determining that it is in the
    national interest to do so, the Secretary of Defense may increase for a
    particular fiscal year the number of reserve officers that may be on
    full-time reserve component duty for a reserve component in a grade
    referred to in a table in subsection (a) by a number that does not
    exceed the number equal to 5 percent of the maximum number specified
    for the grade in that table.
        ``(2) Whenever the Secretary exercises the authority provided in
    paragraph (1), the Secretary shall submit to the Committee on Armed
    Services of the Senate and the Committee on Armed Services of the House
    of Representatives notice in writing of the adjustment made.
        ``(e) Full-Time Reserve Component Duty Defined.--In this section,
    the term `full-time reserve component duty' means the following duty:
            ``(1) Active duty described in sections 10211, 10302, 10303,
        10304, 10305, 12310, or 12402 of this title.
            ``(2) Full-time National Guard duty (other than for training)
        under section 502(f) of title 32.
            ``(3) Active duty described in section 708 of title 32.''.
        (b) Senior Enlisted Members.--The text of section 12012 of title
    10, United States Code, is amended to read as follows:
        ``(a) Limitations.--Of the total number of members of a reserve
    component who are serving on full-time reserve component duty at the
    end of any fiscal year, the number of those members in each of pay
    grades of E-8 and E-9 who may be serving on active duty under section
    10211 or 12310, or on full-time National Guard duty under the authority
    of section 502(f) of title 32 (other than 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
    table in subsection (a), the corresponding authorized strengths for
    each of the grades shown in that table for that component are
    determined by mathematical interpolation between the respective numbers
    of the two strengths. If the total number of members of a reserve
    component serving on full-time reserve component duty is more or less
    than the highest or lowest number, respectively, set forth in the first
    column of the table in subsection (a), the Secretary concerned shall
    fix the corresponding strengths for the grades shown in the table at
    the same proportion as is reflected in the nearest limit shown in the
    table.
        ``(c) Reallocations to Lower Grade.--Whenever the number of members
    serving in pay grade E-9 for duty described in subsection (a) is less
    than the number authorized for that grade under this section, the
    difference between the two numbers may be applied to increase the
    number authorized under this section for pay grade E-8.
        ``(d) Secretarial Waiver.--(1) Upon determining that it is in the
    national interest to do so, the Secretary of Defense may increase for a
    particular fiscal year the number of reserve enlisted members that may
    be on active duty or full-time National Guard duty as described in
    subsection (a) for a reserve component in a pay grade referred to in a
    table in subsection (a) by a number that does not exceed the number
    equal to 5 percent of the maximum number specified for that grade and
    reserve component in the table.
        ``(2) Whenever the Secretary exercises the authority provided in
    paragraph (1), the Secretary shall submit to the Committee on Armed
    Services of the Senate and the Committee on Armed Services of the House
    of Representatives notice in writing of the adjustment made.
        ``(e) Full-Time Reserve Component Duty Defined.--In this section,
    the term `full-time reserve component duty' has the meaning given the
    term in section 12011(e) of this title.''.

           Subtitle C--Other Matters Relating to Personnel Strengths

    SEC. 421. ADMINISTRATION OF END STRENGTHS.

        (a) Increase in Percentage by Which Active Component End Strengths
    May Be Increased.--Section 115(c)(1) of title 10, United States Code,
    is amended by striking ``1 percent'' and inserting ``2 percent''.
        (b) Waiver of End Strengths During National Emergency.--The text of
    section 123a of such title is amended to read as follows:
        ``(a) During War or National Emergency.--If at the end of any
    fiscal year there is in effect a war or national emergency, the
    President may waive any statutory end strength with respect to that
    fiscal year. Any such waiver may be issued only for a statutory end
    strength that is prescribed by law before the waiver is issued.
        ``(b) Upon Termination of War or National Emergency.--Upon the
    termination of a war or national emergency with respect to which the
    President has exercised the authority provided by subsection (a), the
    President may defer the effectiveness of any statutory end strength
    with respect to the fiscal year during which the termination occurs.
    Any such deferral may not extend beyond the last day of the sixth month
    beginning after the date of such termination.
        ``(c) Statutory End Strength.--In this section, the term `statutory
    end strength' means any end-strength limitation with respect to a
    fiscal year that is prescribed by law for any military or civilian
    component of the armed forces or of the Department of Defense.''.
        SEC. 422. ACTIVE DUTY END STRENGTH EXEMPTION FOR NATIONAL GUARD AND
          RESERVE PERSONNEL PERFORMING FUNERAL HONORS FUNCTIONS.
        Section 115(d) of title 10, United States Code, is amended by
    adding at the end the following new paragraphs:
            ``(10) Members of reserve components on active duty to prepare
        for and to perform funeral honors functions for funerals of
        veterans in accordance with section 1491 of this title.
            ``(11) Members on full-time National Guard duty to prepare for
        and perform funeral honors functions for funerals of veterans in
        accordance with section 1491 of this title.''.

                  Subtitle D--Authorization of Appropriations

        SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.
        There is hereby authorized to be appropriated to the Department of
    Defense for military personnel for fiscal year 2002 a total of
    $82,307,281,000. The authorization in the preceding sentence supersedes
    any other authorization of appropriations (definite or indefinite) for
    such purpose for fiscal year 2002.

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

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

                 Subtitle B--Reserve Component Personnel Policy

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

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

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

                   Subtitle D--Military Education and Training

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

                  Subtitle E--Recruiting and Accession Programs

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

           Subtitle F--Decorations, Awards, and Posthumous Commissions

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

                         Subtitle G--Funeral Honors Duty

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

                 Subtitle H--Military Spouses and Family Members

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

            Subtitle I--Military Justice and Legal Assistance Matters

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

                            Subtitle J--Other Matters

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

                      Subtitle A--Officer Personnel Policy

        SEC. 501. ENHANCED FLEXIBILITY FOR MANAGEMENT OF SENIOR GENERAL AND
          FLAG OFFICER POSITIONS.
        (a) Repeal of Limit on Number of Officers on Active Duty in Grades
    of General and Admiral.--Section 528 of title 10, United States Code,
    is repealed.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 32 of such title is amended by striking the item relating to
    section 528.
        SEC. 502. CERTIFICATIONS OF SATISFACTORY PERFORMANCE FOR RETIREMENT
          OF OFFICERS IN GRADES ABOVE MAJOR GENERAL AND REAR ADMIRAL.
        Section 1370(c) of title 10, United States Code, is amended by
    adding at the end the following new paragraph:
        ``(3)(A) The Secretary of Defense may delegate authority to make a
    certification with respect to an officer under paragraph (1) only to
    the Under Secretary of Defense for Personnel and Readiness or the
    Deputy Under Secretary of Defense for Personnel and Readiness.
        ``(B) If authority is delegated under subparagraph (A) and, in the
    course of consideration of an officer for a certification under
    paragraph (1), the Under Secretary or (if such authority is delegated
    to both the Under and Deputy Under Secretary) the Deputy Under
    Secretary makes a determination described in subparagraph (C) with
    respect to that officer, the Under Secretary or Deputy Under Secretary,
    as the case may be, may not exercise the delegated authority in that
    case, but shall refer the matter to the Secretary of Defense, who shall
    personally determine whether to issue a certification under paragraph
    (1) with respect to that officer.
        ``(C) A determination referred to in subparagraph (B) is a
    determination that there is potentially adverse information concerning
    an officer and that such information has not previously been submitted
    to the Senate in connection with the consideration by the Senate of a
    nomination of that officer for an appointment for which the advice and
    consent of the Senate is required.''.

    SEC. 503. REVIEW OF ACTIONS OF SELECTION BOARDS.

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

    ``1558. Review of actions of selection boards: correction of military
    records by special boards; judicial review.''.

        (b) Special Selection Boards.--Section 628 of such title is
    amended--
            (1) by redesignating subsection (g) as subsection (k); and
            (2) by inserting after subsection (f) the following new
        subsections:
        ``(g) Judicial Review.--(1)(A) A court of the United States may
    review a determination by the Secretary of a military department under
    subsection (a)(1) or (b)(1) not to convene a special selection board in
    the case of any person. In any such case, the court may set aside the
    Secretary's determination only if the court finds the determination to
    be--
            ``(i) arbitrary or capricious;
            ``(ii) not based on substantial evidence;
            ``(iii) a result of material error of fact or material
        administrative error; or
            ``(iv) otherwise contrary to law.
        ``(B) If a court sets aside a determination by the Secretary of a
    military department not to convene a special selection board under this
    section, it shall remand the case to the Secretary concerned, who shall
    provide for consideration by such a board.
        ``(2) A court of the United States may review the action of a
    special selection board convened under this section or an action of the
    Secretary of the military department concerned on the report of such a
    board. In any such case, a court may set aside the action only if the
    court finds that the action was--
            ``(A) arbitrary or capricious;
            ``(B) not based on substantial evidence;
            ``(C) a result of material error of fact or material
        administrative error; or
            ``(D) otherwise contrary to law.
        ``(3)(A) If, six months after receiving a complete application for
    consideration by a special selection board under this section in any
    case, the Secretary concerned has not convened such a board and has not
    denied consideration by such a board in that case, the Secretary shall
    be deemed for the purposes of this subsection to have denied the
    consideration of the case by such a board.
        ``(B) If, six months after the convening of a special selection
    board under this section in any case, the Secretary concerned has not
    taken final action on the report of the board, the Secretary shall be
    deemed for the purposes of this subsection to have denied relief in
    such case.
        ``(C) Under regulations prescribed under subsection (j), the
    Secretary of a military department may waive the applicability of
    subparagraph (A) or (B) in a case if the Secretary determines that a
    longer period for consideration of the case is warranted. Such a waiver
    may be for an additional period of not more than six months. The
    Secretary concerned may not delegate authority to make a determination
    under this subparagraph.
        ``(h) Limitations of Other Jurisdiction.--No official or court of
    the United States may, with respect to a claim based to any extent on
    the failure of a person to be selected for promotion by a promotion
    board--
            ``(1) consider the claim unless the person has first been
        referred by the Secretary concerned to a special selection board
        convened under this section and acted upon by that board and the
        report of the board has been approved by the President; or
            ``(2) except as provided in subsection (g), grant any relief on
        the claim unless the person has been selected for promotion by a
        special selection board convened under this section to consider the
        person for recommendation for promotion and the report of the board
        has been approved by the President.
        ``(i) Existing Jurisdiction.--Nothing in this section limits--
            ``(1) the jurisdiction of any court of the United States under
        any provision of law to determine the validity of any law,
        regulation, or policy relating to selection boards; or
            ``(2) the authority of the Secretary of a military department
        to correct a military record under section 1552 of this title.
        ``(j) Regulations.--(1) The Secretary of each military department
    shall prescribe regulations to carry out this section. Regulations
    under this subsection may not apply to subsection (g), other than to
    paragraph (3)(C) of that subsection.
        ``(2) The Secretary may prescribe in the regulations under
    paragraph (1) the circumstances under which consideration by a special
    selection board may be provided for under this section, including the
    following:
            ``(A) The circumstances under which consideration of a person's
        case by a special selection board is contingent upon application by
        or for that person.
            ``(B) Any time limits applicable to the filing of an
        application for such consideration.
        ``(3) Regulations prescribed by the Secretary of a military
    department under this subsection may not take effect until approved by
    the Secretary of Defense.''.
        (c) Effective Date.--(1) Except as provided in paragraph (2), the
    amendments made by this section shall apply with respect to any
    proceeding pending on or after the date of the enactment of this Act
    without regard to whether a challenge to an action of a selection board
    of any of the Armed Forces being considered in the proceeding was
    initiated before, on, or after that date.
        (2) The amendments made by this section shall not apply with
    respect to any action commenced in a court of the United States before
    the date of the enactment of this Act.
        SEC. 504. TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT FOR
          ELIGIBILITY FOR PROMOTION FOR CERTAIN ACTIVE-DUTY LIST OFFICERS
          IN GRADES OF FIRST LIEUTENANT AND LIEUTENANT (JUNIOR GRADE).
        (a) Authority.--Subsection (a)(1)(B) of section 619 of title 10,
    United States Code, is amended by inserting before the period at the
    end the following: ``, except that the minimum period of service in
    effect under this subparagraph before October 1, 2005, shall be
    eighteen months''.
        (b) Stylistic Amendments.--Such section is further amended as
    follows:
            (1) Subsection (a) is amended by striking ``(a)(1)'' and
        inserting ``(a) Time-in-Grade Requirements.--(1)''.
            (2) Subsection (b) is amended by striking ``(b)(1)'' and
        inserting ``(b) Continued Eligibility for Consideration for
        Promotion of Officers Who Have Previously Failed of Selection.--
        (1)''.
            (3) Subsection (c) is amended by striking ``(c)(1)'' and
        inserting ``(c) Officers To Be Considered by Promotion Boards.--
        (1)''.
            (4) Subsection (d) is amended by inserting ``Certain Officers
        Not To Be Considered.--'' after ``(d)''.
        (c) Technical Amendment.--Subsection (a)(4) of such section is
    amended by striking ``clause (A)'' and inserting ``subparagraph (A)''.
        SEC. 505. AUTHORITY FOR PROMOTION WITHOUT SELECTION BOARD
          CONSIDERATION FOR ALL FULLY QUALIFIED OFFICERS IN GRADE OF FIRST
          LIEUTENANT OR LIEUTENANT (JUNIOR GRADE) IN THE NAVY.
        (a) Active-Duty List Promotions.--(1) Section 624(a) of title 10,
    United States Code, is amended by adding at the end the following new
    paragraph:
        ``(3)(A) Except as provided in subsection (d), officers on the
    active-duty list in the grade of first lieutenant or, in the case of
    the Navy, lieutenant (junior grade) who are on an approved all-fully-
    qualified-officers list shall be promoted to the next higher grade in
    accordance with regulations prescribed by the Secretary concerned.
        ``(B) An all-fully-qualified-officers list shall be considered to
    be approved for purposes of subparagraph (A) when the list is approved
    by the President. When so approved, such a list shall be treated in the
    same manner as a promotion list under this chapter.
        ``(C) The Secretary of a military department may make a
    recommendation to the President for approval of an all-fully-qualified-
    officers list only when the Secretary determines that all officers on
    the list are needed in the next higher grade to accomplish mission
    objectives.
        ``(D) For purposes of this paragraph, an all-fully-qualified-
    officers list is a list of all officers on the active-duty list in a
    grade who the Secretary of the military department concerned
    determines--
            ``(i) are fully qualified for promotion to the next higher
        grade; and
            ``(ii) would be eligible for consideration for promotion to the
        next higher grade by a selection board convened under section
        611(a) of this title upon the convening of such a board.''.
        (2) Section 631 of such title is amended by adding at the end the
    following new subsection:
        ``(d) For the purposes of this chapter, an officer of the Army, Air
    Force, or Marine Corps who holds the grade of first lieutenant, and an
    officer of the Navy who holds the grade of lieutenant (junior grade),
    shall be treated as having failed of selection for promotion if the
    Secretary of the military department concerned determines that the
    officer would be eligible for consideration for promotion to the next
    higher grade by a selection board convened under section 611(a) of this
    title if such a board were convened but is not fully qualified for
    promotion when recommending for promotion under section 624(a)(3) of
    this title all fully qualified officers of the officer's armed force in
    such grade who would be eligible for such consideration.''.
        (3) Section 611 of such title is amended--
            (A) in subsection (a)--
                (i) by striking ``Under'' and all that follows through
            ``require,'' and inserting ``Whenever the needs of the service
            require, the Secretary of the military department concerned'';
            and
                (ii) by adding at the end the following new sentence: ``The
            preceding sentence does not require the convening of a
            selection board in the case of officers in the permanent grade
            of first lieutenant or, in the case of the Navy, lieutenant
            (junior grade) when the Secretary concerned recommends for
            promotion to the next higher grade under section 624(a)(3) of
            this title all such officers whom the Secretary finds to be
            fully qualified for promotion.'';
            (B) in subsection (b), by striking ``Under'' and all that
        follows through ``require,'' and inserting ``Whenever the needs of
        the service require, the Secretary of the military department
        concerned''; and
            (C) by adding at the end the following new subsection:
        ``(c) The convening of selection boards under subsections (a) and
    (b) shall be under regulations prescribed by the Secretary of
    Defense.''.
        (b) Reserve Active-Status List Promotions.--(1) Section 14308(b) of
    title 10, United States Code, is amended by adding at the end the
    following new paragraph:
        ``(4)(A) Officers in the permanent grade of first lieutenant or, in
    the case of the Navy, lieutenant (junior grade) who are on an approved
    all-fully-qualified-officers list shall be promoted to the next higher
    grade in accordance with regulations prescribed by the Secretary
    concerned. Such promotions shall be in the manner specified in section
    12203 of this title.
        ``(B) An all-fully-qualified-officers list shall be considered to
    be approved for purposes of subparagraph (A) when the list is approved
    by the President. When so approved, such a list shall be treated in the
    same manner as a promotion list under this chapter and chapter 1403 of
    this title.
        ``(C) The Secretary of a military department may make a
    recommendation to the President for approval of an all-fully-qualified-
    officers list only when the Secretary determines that all officers on
    the list are needed in the next higher grade to accomplish mission
    objectives.
        ``(D) For purposes of this paragraph, an all-fully-qualified-
    officers list is a list of all officers on the reserve active-status
    list in a grade who the Secretary of the military department concerned
    determines--
            ``(i) are fully qualified for promotion to the next higher
        grade; and
            ``(ii) would be eligible for consideration for promotion to the
        next higher grade by a selection board convened under section
        14101(a) of this title upon the convening of such a board.''.
        (2) Section 14504 of such title is amended by adding at the end the
    following new subsection:
        ``(c) Officers in Grade of First Lieutenant or Lieutenant (Junior
    Grade) Found Not Fully Qualified for Promotion.--For the purposes of
    this chapter, an officer of the Army, Air Force, or Marine Corps on a
    reserve active-status list who holds the grade of first lieutenant, and
    an officer of the Navy on a reserve active-status list who holds the
    grade of lieutenant (junior grade), shall be treated as having failed
    of selection for promotion if the Secretary of the military department
    concerned determines that the officer would be eligible for
    consideration for promotion to the next higher grade by a selection
    board convened under section 14101(a) of this title if such a board
    were convened but is not fully qualified for promotion when
    recommending for promotion under section 14308(b)(4) of this title all
    fully qualified officers of the officer's armed force in such grade who
    would be eligible for such consideration.''.
        (3) Section 14101(a) of such title is amended by adding at the end
    the following new paragraph:
        ``(3) Paragraph (1) does not require the convening of a selection
    board in the case of officers in the permanent grade of first
    lieutenant or, in the case of the Navy, lieutenant (junior grade) when
    the Secretary concerned recommends for promotion to the next higher
    grade under section 14308(b)(4) of this title all such officers whom
    the Secretary finds to be fully qualified for promotion.''.
        (c) Conforming Amendments.--Title 10, United States Code, is
    amended as follows:
            (1)(A) Section 619(d) is amended by adding at the end the
        following new paragraph:
            ``(4) An officer in the grade of first lieutenant or, in the
        case of the Navy, lieutenant (junior grade) who is on an approved
        all-fully-qualified-officers list under section 624(a)(3) of this
        title.''.
            (B) Section 14301(c) is amended by adding at the end the
        following new paragraph:
            ``(5) An officer in the grade of first lieutenant or, in the
        case of the Navy, lieutenant (junior grade) who is on an approved
        all-fully-qualified-officers list under section 14308(b)(4) of this
        title.''.
            (2)(A) Section 624(d) is amended--
                (i) in the second sentence of paragraph (1), by inserting
            after ``on the promotion list'' the following: ``(including an
            approved all-fully-qualified-officers list, if applicable)'';
            and
                (ii) in the second sentence of paragraph (2), by inserting
            after ``to such grade, the officer'' the following: ``shall be
            retained on the promotion list (including an approved all-
            fully-qualified-officers list, if applicable) and''.
            (B) Section 14311 is amended--
                (i) in subsection (a)(2), by inserting after ``on the
            promotion list'' the following: ``(including an approved all-
            fully-qualified-officers list, if applicable)''; and
                (ii) in subsection (b), by inserting in the second sentence
            after ``on the promotion list'' the following: ``(including an
            approved all-fully-qualified-officers list, if applicable)''.
            (3)(A) Section 628(a)(1) is amended by inserting after ``not so
        considered,'' the following: ``or the name of a person that should
        have been placed on an all-fully-qualified-officers list under
        section 624(a)(3) of this title was not so placed,''.
            (B) Section 14502(a)(1) is amended by inserting after ``because
        of administrative error,'' the following: ``or whose name was not
        placed on an all-fully-qualified-officers list under section
        14308(b)(4) of this title because of administrative error,''.
            (4) Section 1211(e) is amended by inserting after ``a promotion
        list,'' the following: ``an approved all-fully-qualified-officers
        list,''.
        (d) Technical Amendments To Strike Certain DOPMA References to
    Regular Officers.--Chapter 36 of such title is amended as follows:
            (1) Section 624(c) is amended--
                (A) by inserting ``, in the case of officers of the Army,
            Air Force, or Marine Corps,'' after ``captain''; and
                (B) by inserting ``, in the case of officers of the Navy,''
            after ``or lieutenant'' the second place it appears.
            (2) Section 630 is amended by striking ``regular'' both places
        it appears.
            (3) Sections 631(a) and 632(a) are each amended--
                (A) by striking ``Regular Army, Regular Air Force, or
            Regular Marine Corps'' and inserting ``Army, Air Force, or
            Marine Corps on the active-duty list'';
                (B) by striking ``Regular Navy'' and inserting ``Navy on
            the active-duty list''; and
                (C) by striking ``regular'' each place it appears.
            (4)(A) The heading of section 630 and the item relating to that
        section in the table of sections at the beginning of subchapter III
        are each amended by striking the third word.
            (B) The heading of section 631 and the item relating to that
        section in the table of sections at the beginning of subchapter III
        are each amended by striking the eighth word.
            (C) The heading of section 632 and the item relating to that
        section in the table of sections at the beginning of subchapter III
        are each amended by striking the eighth and twenty-first words.
        SEC. 506. AUTHORITY TO ADJUST DATE OF RANK OF CERTAIN PROMOTIONS
          DELAYED BY REASON OF UNUSUAL CIRCUMSTANCES.
        (a) Active Duty Officers.--Subsection 741(d) of title 10, United
    States Code, is amended by adding at the end the following new
    paragraph:
        ``(4)(A) The Secretary concerned may adjust the date of rank of an
    officer appointed under section 624(a) of this title to a higher grade
    that is not a general officer or flag officer grade if the appointment
    of that officer to that grade is delayed from the date on which (as
    determined by the Secretary) it would otherwise have been made by
    reason of unusual circumstances (as determined by the Secretary) that
    cause an unintended delay in--
            ``(i) the processing or approval of the report of the selection
        board recommending the appointment of that officer to that grade;
        or
            ``(ii) the processing or approval of the promotion list
        established on the basis of that report.
        ``(B) The adjusted date of rank applicable to the grade of an
    officer under subparagraph (A) shall be consistent--
            ``(i) with the officer's position on the promotion list for
        that grade and competitive category when additional officers in
        that grade and competitive category were needed; and
            ``(ii) with compliance with the applicable authorized strengths
        for officers in that grade and competitive category.
        ``(C) The adjusted date of rank applicable to the grade of an
    officer under subparagraph (A) shall be the effective date for--
            ``(i) the officer's pay and allowances for that grade; and
            ``(ii) the officer's position on the active-duty list.
        ``(D) When under subparagraph (A) the Secretary concerned adjusts
    the date of rank of an officer in a grade to which the officer was
    appointed by and with the advice and consent of the Senate and the
    adjustment is to a date before the date of the advice and consent of
    the Senate to that appointment, the Secretary shall promptly transmit
    to the Committee on Armed Services of the Senate a notification of that
    adjustment. Any such notification shall include the name of the officer
    and a discussion of the reasons for the adjustment of date of rank.
        ``(E) Any adjustment in date of rank under this paragraph shall be
    made under regulations prescribed by the Secretary of Defense, which
    shall apply uniformly among the Army, Navy, Air Force, and Marine
    Corps.''.
        (b) Reserve Officers.--(1) Section 14308(c) of such title is
    amended--
            (A) by redesignating paragraph (2) as paragraph (3); and
            (B) by inserting after paragraph (1) the following new
        paragraph (2):
        ``(2) The date of rank of an officer appointed to a higher grade
    under this section may be adjusted in the same manner as an adjustment
    may be made under section 741(d)(4) of this title in the date of rank
    of an officer appointed to a higher grade under section 624(a) of this
    title. In any use of the authority under the preceding sentence,
    subparagraph (C)(ii) of such section shall be applied by substituting
    `reserve active-status list' for `active-duty list'.''.
        (2) Paragraph (3) of such section, as redesignated by paragraph
    (1)(A), is amended by inserting ``provided in paragraph (2) or as
    otherwise'' after ``Except as''.
        (c) Effective Date.--(1) Paragraph (4) of section 741(d) of title
    10, United States Code, as added by subsection (a), and paragraph (2)
    of section 14308(c) of such title, as added by subsection (b), shall
    apply with respect to any report of a selection board recommending
    officers for promotion to the next higher grade that is submitted to
    the Secretary of the military department concerned on or after the date
    of the enactment of this Act.
        (2) The Secretary of the military department concerned may apply
    the applicable paragraph referred to in paragraph (1) in the case of an
    appointment of an officer to a higher grade resulting from a report of
    a selection board submitted to the Secretary before the date of the
    enactment of this Act if the Secretary determines that such appointment
    would have been made on an earlier date that is on or after October 1,
    2001, and was delayed under the circumstances specified in paragraph
    (4) of section 741(d) of title 10, United States Code, as added by
    subsection (a).
        SEC. 507. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF
          MANDATORY RETIREMENT OR SEPARATION.
        The text of section 640 of title 10, United States Code, is amended
    to read as follows:
        ``(a) If the Secretary of the military department concerned
    determines that the evaluation of the physical condition of an officer
    and determination of the officer's entitlement to retirement or
    separation for physical disability require hospitalization or medical
    observation and that such hospitalization or medical observation cannot
    be completed with confidence in a manner consistent with the member's
    well being before the date on which the officer would otherwise be
    required to retire or be separated under this title, the Secretary may
    defer the retirement or separation of the officer under this title.
        ``(b) A deferral of retirement or separation under subsection (a)
    may not extend for more than 30 days after completion of the evaluation
    requiring hospitalization or medical observation.''.
        SEC. 508. AUTHORITY FOR LIMITED EXTENSION ON ACTIVE DUTY OF MEMBERS
          SUBJECT TO MANDATORY RETIREMENT OR SEPARATION.
        (a) Section 12305 Stop-Loss Authority.--Section 12305 of title 10,
    United States Code, is amended by adding at the end the following new
    subsection:
        ``(c) Upon the termination of a suspension made under the authority
    of subsection (a) of a provision of law otherwise requiring the
    separation or retirement of officers on active duty because of age,
    length of service or length of service in grade, or failure of
    selection for promotion, the Secretary concerned shall extend by up to
    90 days the otherwise required separation or retirement date of any
    officer covered by the suspended provision whose separation or
    retirement date, but for the suspension, would have been before the
    date of the termination of the suspension or within 90 days after the
    date of such termination.''.
        (b) Section 123 Stop-Loss Authority.--Section 123 of such title is
    amended by adding at the end the following new subsection:
        ``(d) Upon the termination of a suspension made under the authority
    of subsection (a) of a provision of law otherwise requiring the
    separation or retirement of officers on active duty because of age,
    length of service or length of service in grade, or failure of
    selection for promotion, the Secretary concerned shall extend by up to
    90 days the otherwise required separation or retirement date of any
    officer covered by the suspended provision whose separation or
    retirement date, but for the suspension, would have been before the
    date of the termination of the suspension or within 90 days after the
    date of such termination.''.
        SEC. 509. EXEMPTION FROM CERTAIN ADMINISTRATIVE LIMITATIONS FOR
          RETIRED OFFICERS ORDERED TO ACTIVE DUTY AS DEFENSE OR SERVICE
          ATTACHES.
        (a) Limitation of Period of Recalled Service.--Section 688(e)(2) of
    title 10, United States Code, is amended by adding at the end the
    following new subparagraph:
            ``(D) An officer who is assigned to duty as a defense attache
        or service attache for the period of active duty to which
        ordered.''.
        (b) Limitation on Number of Recalled Officers on Active Duty.--
    Section 690(b)(2) of such title is amended by adding at the end the
    following new subparagraph:
            ``(E) An officer who is assigned to duty as a defense attache
        or service attache for the period of active duty to which
        ordered.''.
        (c) Applicability.--The amendments made by subsections (a) and (b)
    shall apply with respect to officers serving on active duty as a
    defense attache or service attache on or after the date of the
    enactment of this Act.
        SEC. 510. OFFICER IN CHARGE OF UNITED STATES NAVY BAND.
        (a) Detail and Grade.--Section 6221 of title 10, United States
    Code, is amended to read as follows:
    ``Sec. 6221. United States Navy Band; officer in charge
        ``(a) There is a Navy band known as the United States Navy Band.
        ``(b)(1) An officer of the Navy designated for limited duty under
    section 5589 or 5596 of this title who is serving in a grade above
    lieutenant may be detailed by the Secretary of the Navy as Officer in
    Charge of the United States Navy Band.
        ``(2) While serving as Officer in Charge of the United States Navy
    Band, an officer shall hold the grade of captain if appointed to that
    grade by the President, by and with the advice and consent of the
    Senate. Such an appointment may be made notwithstanding section 5596(d)
    of this title.''.
        (b) Clerical Amendment.--The item relating to such section in the
    table of sections at the beginning of chapter 565 of such title is
    amended to read as follows:
    ``6221. United States Navy Band; officer in charge.''.

                 Subtitle B--Reserve Component Personnel Policy

        SEC. 511. PLACEMENT ON ACTIVE-DUTY LIST OF CERTAIN RESERVE OFFICERS
          ON ACTIVE DUTY FOR A PERIOD OF THREE YEARS OR LESS.
        (a) Clarification of Exemption.--Section 641(1)(D) of title 10,
    United States Code, is amended to read as follows:
                ``(D) on active duty under section 12301(d) of this title,
            other than as provided under subparagraph (C), if the call or
            order to active duty, under regulations prescribed by the
            Secretary concerned, specifies a period of three years or less
            and continued placement on the reserve active-status list;''.
        (b) Retroactive Application.--(1) The Secretary of the military
    department concerned may provide that an officer who was excluded from
    the active-duty list under section 641(1)(D) of title 10, United States
    Code, as amended by section 521 of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-108), shall be considered to have been on
    the active-duty list during the period beginning on the date on which
    the officer was so excluded and ending on the date of the enactment of
    this Act.
        (2) The Secretary of the military department concerned may provide
    that a Reserve officer who was placed on the active-duty list on or
    after October 30, 1997, shall be placed on the reserve active-status
    list if the officer otherwise meets the conditions specified in section
    641(1)(D) of title 10, United States Code, as amended by subsection
    (a).
        SEC. 512. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT FOR
          APPOINTMENT OF RESERVE OFFICERS TO GRADES ABOVE FIRST LIEUTENANT.
        (a) Reauthorization of Waiver Authority for Army OCS Graduates and
    Inclusion of Certain Marine Officers.--Section 12205 of title 10,
    United States Code, is amended by adding at the end the following new
    subsection:
        ``(d) Waiver Authority for Army OCS Graduates and Certain Marine
    Corps Officers.--(1) The Secretary of the Army may waive the
    applicability of subsection (a) to any officer whose original
    appointment in the Army as a Reserve officer is through the Army
    Officer Candidate School program.
        ``(2) The Secretary of the Navy may waive the applicability of
    subsection (a) to any officer whose original appointment in the Marine
    Corps as a Reserve officer is through the Marine Corps meritorious
    commissioning program.
        ``(3) Any such waiver shall be made on a case-by-case basis,
    considering the individual circumstances of the officer involved, and
    may continue in effect for no more than two years after the waiver is
    granted. The Secretary concerned may provide for such a waiver to be
    effective before the date of the waiver, as appropriate in an
    individual case.''.
        (b) Effective Date.--Subsection (d) of section 12205 of title 10,
    United States Code, as added by subsection (a), shall apply with
    respect to officers appointed before, on, or after the date of the
    enactment of this Act.
        SEC. 513. IMPROVED DISABILITY BENEFITS FOR CERTAIN RESERVE
          COMPONENT MEMBERS.
        (a) Medical and Dental Care.--Sections 1074a(a)(3) and
    1076(a)(2)(C) of title 10, United States Code, are each amended by
    striking ``, if the'' and all that follows through ``member's
    residence''.
        (b) Eligibility for Disability Retirement or Separation.--Sections
    1204(2)(B)(iii) and 1206(2)(B)(iii) of title 10, United States Code,
    are each amended by striking ``, if the'' and all that follows through
    ``member's residence''.
        (c) Recovery, Care, and Disposition of Remains.--Section
    1481(a)(2)(D) of title 10, United States Code, is amended by striking
    ``, if the site is outside reasonable commuting distance from the
    member's residence''.
        (d) Entitlement to Basic Pay.--Subsections (g)(1)(D) and (h)(1)(D)
    of section 204 of title 37, United States Code, are amended by striking
    ``, if the site is outside reasonable commuting distance from the
    member's residence''.
        (e) Compensation for Inactive-Duty Training.--Section 206(a)(3)(C)
    of title 37, United States Code, is amended by striking ``, if the site
    is outside reasonable commuting distance from the member's residence''.
        SEC. 514. TIME-IN-GRADE REQUIREMENT FOR RESERVE COMPONENT OFFICERS
          RETIRED WITH A NONSERVICE CONNECTED DISABILITY.
        Section 1370(d)(3)(B) of title 10, United States Code, is amended
    to read as follows:
        ``(B) A person covered by subparagraph (A) who has completed at
    least six months of satisfactory service in grade may be credited with
    satisfactory service in the grade in which serving at the time of
    transfer or discharge, notwithstanding failure of the person to
    complete three years of service in that grade, if that person is
    transferred from an active status or discharged as a reserve
    commissioned officer--
            ``(i) solely due to the requirements of a nondiscretionary
        provision of law requiring that transfer or discharge due to the
        person's age or years of service; or
            ``(ii) because the person no longer meets the qualifications
        for membership in the Ready Reserve solely because of a physical
        disability, as determined, at a minimum, by a medical evaluation
        board and at the time of such transfer or discharge such person
        (pursuant to section 12731b of this title or otherwise) meets the
        service requirements established by section 12731(a) of this title
        for eligibility for retired pay under chapter 1223 of this title,
        unless the disability is described in section 12731b of this
        title.''.
        SEC. 515. EQUAL TREATMENT OF RESERVES AND FULL-TIME ACTIVE DUTY
          MEMBERS FOR PURPOSES OF MANAGING PERSONNEL DEPLOYMENTS.
        (a) Residence of Reserves at Home Station.--Paragraph (2) of
    section 991(b) of title 10, United States Code, is amended to read as
    follows:
        ``(2) In the case of a member of a reserve component who is
    performing active service pursuant to orders that do not establish a
    permanent change of station, the housing referred to in paragraph (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.--The amendment made by this section shall apply
    with respect to duty performed on or after October 1, 2001.
        SEC. 516. MODIFICATION OF PHYSICAL EXAMINATION REQUIREMENTS FOR
          MEMBERS OF THE INDIVIDUAL READY RESERVE.
        (a) IRR Requirement.--Section 10206 of title 10, United States
    Code, is amended--
            (1) in the matter in subsection (a) preceding paragraph (1), by
        striking ``Ready Reserve'' and inserting ``Selected Reserve'';
            (2) by designating the second sentence of subsection (a) as
        subsection (c);
            (3) by redesignating subsection (b) as subsection (d); and
            (4) by inserting after subsection (a) the following new
        subsection (b):
        ``(b) A member of the Individual Ready Reserve or inactive National
    Guard shall be examined for physical fitness as necessary to determine
    the member's physical fitness for--
            ``(1) military duty or promotion;
            ``(2) attendance at a school of the armed forces; or
            ``(3) other action related to career progression.''.
        (b) Technical Amendment.--Subsection (a)(1) of such section is
    amended by striking ``his'' and inserting ``the member's''.
        SEC. 517. RETIREMENT OF RESERVE MEMBERS WITHOUT REQUIREMENT FOR
          FORMAL APPLICATION OR REQUEST.
        (a) Retired Reserve.--Section 10154(2) of title 10, United States
    Code, is amended by striking ``upon their request''.
        (b) Retirement for Failure of Selection of Promotion.--(1)
    Paragraph (2) of section 14513 of such title is amended by striking ``,
    if the officer is qualified and applies for such transfer'' and
    inserting ``if the officer is qualified for such transfer and does not
    request (in accordance with regulations prescribed by the Secretary
    concerned) not to be transferred to the Retired Reserve''.
        (2)(A) The heading for such section is amended to read as follows:
    ``Sec. 14513. Failure of selection for promotion: transfer, retirement,
          or discharge''.
        (B) The item relating to such section in the table of sections at
    the beginning of chapter 1407 of such title is amended to read as
    follows:

    ``14513. Failure of selection for promotion: transfer, retirement, or
    discharge.''.

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

    ``12244. Warrant officers: discharge or retirement for years of service
    or for age.''.

        (f) Discharge or Retirement of Enlisted Members for Years of
    Service or Age.--(1) Chapter 1203 of such title is amended by adding at
    the end the following new section:
    ``Sec. 12108. Enlisted members: discharge or retirement for years of
          service or for age
        ``Each reserve enlisted member of the Army, Navy, Air Force, or
    Marine Corps who is in an active status and has reached the maximum
    years of service or age prescribed by the Secretary concerned shall--
            ``(1) be transferred to the Retired Reserve if the member is
        qualified for such transfer and does not request (in accordance
        with regulations prescribed by the Secretary concerned) not to be
        transferred to the Retired Reserve; or
            ``(2) be discharged if the member is not qualified for transfer
        to the Retired Reserve or has requested (in accordance with
        regulations prescribed by the Secretary concerned) not to be so
        transferred.''.
        (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.--The amendments made by this section shall take
    effect on the first day of the first month that begins more than 180
    days after the date of the enactment of this Act.
        SEC. 518. SPACE-REQUIRED TRAVEL BY RESERVES ON MILITARY AIRCRAFT.
        (a) Correction of Impairment to Authorized Travel With
    Allowances.--Subsection (a) of section 18505 of title 10, United States
    Code, is amended by striking ``annual training duty or'' each place it
    appears.
        (b) Conforming Amendments.--The heading for such section, and the
    item relating to such section in the table of sections at the beginning
    of chapter 1805 of such title, are each amended by striking the fourth,
    fifth, sixth, and seventh words.
        SEC. 519. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM
          PREMIUMS FOR CERTAIN RESERVISTS CALLED TO ACTIVE DUTY IN SUPPORT
          OF CONTINGENCY OPERATIONS.
        (a) In General.--Subsection (e) of section 8906 of title 5, United
    States Code, is amended by adding at the end the following new
    paragraph:
        ``(3)(A) An employing agency may pay both the employee and
    Government contributions, and any additional administrative expenses
    otherwise chargeable to the employee, with respect to health care
    coverage for an employee described in subparagraph (B) and the family
    of such employee.
        ``(B) An employee referred to in subparagraph (A) is an employee
    who--
            ``(i) is enrolled in a health benefits plan under this chapter;
            ``(ii) is a member of a reserve component of the armed forces;
            ``(iii) is called or ordered to active duty in support of a
        contingency operation (as defined in section 101(a)(13) of title
        10);
            ``(iv) is placed on leave without pay or separated from service
        to perform active duty; and
            ``(v) serves on active duty for a period of more than 30
        consecutive days.
        ``(C) Notwithstanding the one-year limitation on coverage described
    in paragraph (1)(A), payment may be made under this paragraph for a
    period not to exceed 18 months.''.
        (b) Conforming Amendment.--The matter preceding paragraph (1) in
    subsection (f) of such section is amended to read as follows:
        ``(f) The Government contribution, and any additional payments
    under subsection (e)(3)(A), for health benefits for an employee shall
    be paid--''.
        (c) Applicability.--The amendments made by this section apply with
    respect to employees called to active duty on or after December 8,
    1995, and an agency may make retroactive payments to such employees for
    premiums paid on or after such date.

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

        SEC. 521. NOMINATIONS AND PROMOTIONS FOR JOINT SPECIALTY OFFICERS.
        (a) Selection of Officers for the Joint Speciality.--Paragraph (2)
    of section 661(b) of title 10, United States Code, is amended by
    striking ``The Secretaries'' and all that follows through ``officers--
    '' and inserting ``Each officer on the active-duty list on the date of
    the enactment of the National Defense Authorization Act for Fiscal Year
    2002 who has not before that date been nominated for the joint
    specialty by the Secretary of a military department, and each officer
    who is placed on the active-duty list after such date, who meets the
    requirements of subsection (c) shall automatically be considered to
    have been nominated for the joint specialty. From among those officers
    considered to be nominated for the joint specialty, the Secretary may
    select for the joint specialty only officers--''.
        (b) Promotion Rate for Officers With the Joint Specialty.--
    Paragraph (2) of section 662(a) of such title is amended by striking
    ``promoted at a rate'' and inserting ``promoted--
                ``(A) during the three-year period beginning on the date of
            the enactment of the National Defense Authorization Act for
            Fiscal Year 2002, at a rate not less than the rate for officers
            of the same armed force in the same grade and competitive
            category; and
                ``(B) after the end of the period specified in subparagraph
            (A), at a rate''.

    SEC. 522. JOINT DUTY CREDIT.

        Paragraph (4) of section 664(i) of title 10, United States Code, is
    amended--
            (1) in subparagraph (E), by striking ``The'' and inserting
        ``Except as provided in subparagraph (F), the''; and
            (2) by adding at the end the following new subparagraph:
            ``(F) Service in a temporary joint task force assignment not
        involved in combat or combat-related operations may not be credited
        for the purposes of joint duty, unless, and only if--
                ``(i) the service of the officer and the nature of the
            joint task force not only meet all criteria of this section,
            except subparagraph (E), but also any additional criteria the
            Secretary may establish;
                ``(ii) the Secretary has specifically approved the
            operation conducted by the joint task force as one that
            qualifies for joint service credit, and notifies Congress upon
            each approval, providing the criteria that led to that
            approval; and
                ``(iii) the operation is conducted by the joint task force
            in an environment where an extremely fragile state of peace and
            high potential for hostilities coexist.''.
        SEC. 523. RETROACTIVE JOINT SERVICE CREDIT FOR DUTY IN CERTAIN
          JOINT TASK FORCES.
        (a) Authority.--In accordance with section 664(i) of title 10,
    United States Code, as amended by section 522, the Secretary of Defense
    may award joint service credit to any officer who served on the staff
    of a United States joint task force headquarters in an operation and
    during the period set forth in subsection (b) and who meets the
    criteria specified in such section. To determine which officers qualify
    for such retroactive credit, the Secretary shall undertake a case-by-
    case review of the records of officers.
        (b) Eligible Operations.--Service in the following operations,
    during the specified periods, may be counted for credit under
    subsection (a):
            (1) Operation Northern Watch, during the period beginning on
        August 1, 1992, and ending on a date to be determined.
            (2) Operation Southern Watch, during the period beginning on
        August 27, 1992, and ending on a date to be determined.
            (3) Operation Able Sentry, during the period beginning on June
        26, 1993, and ending on February 28, 1999.
            (4) Operation Joint Endeavor, during the period beginning on
        December 25, 1995, and ending on December 19, 1996.
            (5) Operation Joint Guard, during the period beginning on
        December 20, 1996, and ending on June 20, 1998.
            (6) Operation Desert Thunder, beginning on January 24, 1998,
        and ending on December 15, 1998.
            (7) Operation Joint Forge, beginning on June 20, 1998, and
        ending on June 10, 1999.
            (8) Operation Noble Anvil, beginning on March 24, 1999, and
        ending on July 20, 1999.
            (9) Operation Joint Guardian, beginning on June 11, 1999, and
        ending on a date to be determined.
        (c) Report.--Not later than one year after the date of the
    enactment of this Act, the Secretary of Defense shall submit to
    Congress a report of the numbers, by service, grade, and operation, of
    the officers given joint service credit in accordance with this
    section.
        SEC. 524. REVISION TO ANNUAL REPORT ON JOINT OFFICER MANAGEMENT.
        Section 667 of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                (A) by inserting ``(A)'' after ``(1)''; and
                (B) by adding at the end the following new subparagraph:
            ``(B) The number of officers who meet the criteria for
        selection for the joint specialty but were not selected, together
        with the reasons why.'';
            (2) by amending paragraph (2) to read as follows:
            ``(2) The number of officers with the joint specialty, shown by
        grade and branch or specialty and by education.'';
            (3) in paragraph (3)--
                (A) in subparagraph (A) and (B), by striking ``nominated''
            and inserting ``selected'';
                (B) by inserting ``and'' at the end of subparagraph (D);
                (C) by striking subparagraph (E); and
                (D) by redesignating subparagraph (F) as subparagraph (E);
            (4) in paragraph (4)(A), by striking ``nominated'' and
        inserting ``selected'';
            (5) in paragraph (14)--
                (A) by inserting ``(A)'' after ``(14)''; and
                (B) by adding at the end the following new subparagraph:
            ``(B) An assessment of the extent to which the Secretary of
        each military department is assigning personnel to joint duty
        assignments in accordance with this chapter and the policies,
        procedures, and practices established by the Secretary of Defense
        under section 661(a) of this title.''; and
            (6) in paragraph (16), by striking ``section 664(i)'' in the
        matter preceding subparagraph (A) and in subparagraph (B) and
        inserting ``subparagraphs (E) and (F) of section 664(i)(4)''.
        SEC. 525. REQUIREMENT FOR SELECTION FOR JOINT SPECIALTY BEFORE
          PROMOTION TO GENERAL OR FLAG OFFICER GRADE.
        (a) Requirement.--Subsection (a) of section 619a of title 10,
    United States Code, is amended by striking ``unless'' and all that
    follows and inserting ``unless--
            ``(1) the officer has completed a full tour of duty in a joint
        duty assignment (as described in section 664(f) of this title); and
            ``(2) for appointments after September 30, 2007, the officer
        has been selected for the joint specialty in accordance with
        section 661 of this title.''.
        (b) Waiver Authority.--Subsection (b) of that section is amended by
    striking ``may waive subsection (a) in the following circumstances:''
    and inserting ``may waive paragraph (1) or paragraph (2) of subsection
    (a), or both paragraphs (1) and (2) of subsection (a), in the following
    circumstances:''.
        (c) Proposed Legislative Changes.--Not later than December 1, 2002,
    the Secretary of Defense shall submit to Congress a draft proposal for
    such legislative changes as the Secretary considers needed to implement
    the amendment made by subsections (a) and (b).
        SEC. 526. INDEPENDENT STUDY OF JOINT OFFICER MANAGEMENT AND JOINT
          PROFESSIONAL MILITARY EDUCATION REFORMS.
        (a) Study.--The Secretary of Defense shall provide for an
    independent study of the joint officer management system and the joint
    professional military education system. The Secretary shall ensure that
    the entity conducting the study is provided such information and
    support as required. The Secretary shall include in the contract for
    the study a requirement that the entity conducting the study submit a
    report to Congress on the study not later than one year after the date
    of the enactment of this Act.
        (b) Matters To Be Included With Respect to Joint Officer
    Management.--With respect to the joint officer management system, the
    entity conducting the independent study shall provide for the
    following:
            (1) Assessment of implications for joint officer education,
        development, and management that would result from proposed joint
        organizational operational concepts (such as standing joint task
        forces) and from emerging officer management and personnel reforms
        (such as longer careers and more stabilization), that are under
        consideration by the Secretary of Defense.
            (2) Assessment of the effectiveness of the current joint
        officer management system to develop and use joint specialty
        qualified officers in meeting both current and future requirements
        for joint specialty officers.
            (3) Recommendations, based on empirical and other data, to
        improve the effectiveness of the joint officer management system,
        especially with regard to the following:
                (A) The proper mix and sequencing of education assignments
            and experience assignments (to include, with respect to both
            types of assignments, consideration of the type and quality,
            and the length, of such assignments) to qualify an officer as a
            joint specialty officer, as well as the implications of
            adopting a variable joint duty tour length and the advisability
            and implications of a system of qualifying officers as joint
            specialty officers that uses multiple shorter qualification
            tracks to selection as a joint specialty officer than are now
            codified.
                (B) The system of using joint specialty officers, including
            the continued utility of such measures as--
                    (i) the required fill of positions on the joint duty
                assignment list, as specified in paragraphs (1) and (4) of
                section 661(d) of title 10, United States Code;
                    (ii) the fill by such officers of a required number of
                critical billets, as prescribed by section 661(d)(2) of
                such title;
                    (iii) the mandated fill by general and flag officers of
                a minimum number of critical billets, as prescribed by
                section 661(d)(3) of such title; and
                    (iv) current promotion policy objectives for officers
                with the joint specialty, officers serving on the Joint
                Staff, and officers serving in joint duty assignment list
                positions, as prescribed by section 662 of such title.
                (C) Changes in policy and law required to provide officers
            the required joint specialty qualification before promotion to
            general or flag officer grade.
                (D) A determination of the number of reserve component
            officers who would be qualified for designation as a joint
            specialty officer by reason of experience or education if the
            standards of existing law, including waiver authorities, were
            applied to them, and recommendations for a process for
            qualifying and employing future reserve component officers as
            joint specialty officers.
        (c) Matters To Be Included With Respect to Joint Professional
    Military Education.--With respect to the joint professional military
    education system, the entity conducting the independent study shall
    provide for the following:
            (1) The number of officers who under the current system (A)
        qualified as joint specialty officers by attending joint
        professional military education programs before their first joint
        duty assignment, (B) qualified as joint specialty officers after
        arriving at their first joint duty assignment but before completing
        that assignment, and (C) qualified as joint specialty officers
        without any joint professional military education.
            (2) Recommended initiatives (include changes in officer
        personnel management law, if necessary) to provide incentives and
        otherwise facilitate attendance at joint professional military
        education programs before an officer's first joint duty assignment.
            (3) Recommended goals for attendance at the Joint Forces Staff
        College en route to a first joint duty assignment.
            (4) An assessment of the continuing utility of statutory
        requirements for use of officers following joint professional
        military education, as prescribed by section 662(d) of title 10,
        United States Code.
            (5) Determination of whether joint professional military
        education programs should remain principally an in-resident, multi-
        service experience and what role non-resident or distributive
        learning can or should play in future joint professional military
        education programs.
            (6) Examination of options for the length of and increased
        capacity at Joint Forces Staff College, and whether other in-
        resident joint professional military education sources should be
        opened, and if opened, how they might be properly accredited and
        overseen to provide instruction at the level of the program
        designated as ``joint professional military education''.
        (d) Chairman of Joint Chiefs of Staff.--With respect to the roles
    of the Secretary of Defense and the Chairman of the Joint Chiefs of
    Staff, the entity conducting the independent study shall--
            (1) provide for an evaluation of the current roles of the
        Secretary of Defense, the Chairman of the Joint Chiefs of Staff,
        and joint staff in law, policy, and implementation with regard to
        establishing and maintaining oversight of joint officer management,
        career guidelines, and joint professional military education; and
            (2) make recommendations to improve and strengthen those roles.
        (e) Requirements for Study Entity.--In providing for the
    independent study required by subsection (a), the Secretary of Defense
    shall ensure that the entity conducting the study--
            (1) is not a Department of Defense organization; and
            (2) shall, at a minimum, involve in the study, in an integral
        way, the following persons:
                (A) The Chairman of the Joint Chiefs of Staff and available
            former Chairmen of the Joint Chiefs of Staff.
                (B) Members and former members of the Joint Staff, the
            Armed Forces, the Congress, and congressional staff who are or
            who have been significantly involved in the development,
            implementation, or modification of joint officer management and
            joint professional military education.
                (C) Experts in joint officer management and education from
            civilian academic and research centers.

    SEC. 527. PROFESSIONAL DEVELOPMENT EDUCATION.

        (a) Executive Agent for Funding.--(1) Effective beginning with
    fiscal year 2003, the Secretary of Defense shall be the executive agent
    for funding professional development education operations of all
    components of the National Defense University, including the Joint
    Forces Staff College. The Secretary may not delegate the Secretary's
    functions and responsibilities under the preceding sentence to the
    Secretary of a military department.
        (2) Nothing in this subsection affects policies in effect on the
    date of the enactment of this Act with respect to--
            (A) the reporting of the President of the National Defense
        University to the Chairman of the Joint Chiefs of Staff; or
            (B) provision of logistical and base operations support for
        components of the National Defense University by the military
        departments.
        (b) Preparation of Budget Requests.--Section 2162(b) of title 10,
    United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new
        paragraph:
        ``(2) As executive agent for funding professional development
    education at the National Defense University, including the Joint
    Forces Staff College, the Secretary of Defense, with the advice of the
    Chairman of the Joint Chiefs of Staff, shall prepare the annual budget
    for professional development education operations at the National
    Defense University and set forth that request as a separate budget
    request in the materials submitted to Congress in support of the budget
    request for the Department of Defense. Nothing in the preceding
    sentence affects policies in effect on the date of the enactment of
    this paragraph with respect to budgeting for the funding of logistical
    and base operations support for components of the National Defense
    University through the military departments.''.
        (c) Funding Source.--(1) Section 2165 of title 10, United States
    Code, is amended by adding at the end the following new subsection:
        ``(d) Source of Funds for Professional Development Education
    Operations.--Funding for the professional development education
    operations of the National Defense University shall be provided from
    funds made available to the Secretary of Defense from the annual
    appropriation `Operation and Maintenance, Defense-wide'.''.
        (2) Subsection (d) of section 2165 of title 10, United States Code,
    as added by paragraph (1), shall become effective beginning with fiscal
    year 2003.
        SEC. 528. AUTHORITY FOR NATIONAL DEFENSE UNIVERSITY TO ENROLL
          CERTAIN PRIVATE SECTOR CIVILIANS.
        (a) In General.--(1) Chapter 108 of title 10, United States Code,
    is amended by adding at the end the following new section:
    ``Sec. 2167. National Defense University: admission of private sector
         civilians to professional military education program
        ``(a) Authority for Admission.--The Secretary of Defense may permit
    eligible private sector employees who work in organizations relevant to
    national security to receive instruction at the National Defense
    University in accordance with this section. No more than the equivalent
    of 10 full-time student positions may be filled at any one time by
    private sector employees enrolled under this section. Upon successful
    completion of the course of instruction in which enrolled, any such
    private sector employee may be awarded an appropriate diploma or degree
    under section 2165 of this title.
        ``(b) Eligible Private Sector Employees.--For purposes of this
    section, an eligible private sector employee is an individual employed
    by a private firm that is engaged in providing to the Department of
    Defense or other Government departments or agencies significant and
    substantial defense-related systems, products, or services or whose
    work product is relevant to national security policy or strategy. A
    private sector employee admitted for instruction at the National
    Defense University remains eligible for such instruction only so long
    as that person remains employed by the same firm.
        ``(c) Annual Certification by Secretary of Defense.--Private sector
    employees may receive instruction at the National Defense University
    during any academic year only if, before the start of that academic
    year, the Secretary of Defense determines, and certifies to the
    Committee on Armed Services of the Senate and the Committee on Armed
    Services of the House of Representatives, that providing instruction to
    private sector employees under this section during that year will
    further national security interests of the United States.
        ``(d) Program Requirements.--The Secretary of Defense shall ensure
    that--
            ``(1) the curriculum for the professional military education
        program in which private sector employees may be enrolled under
        this section is not readily available through other schools and
        concentrates on national security relevant issues; and
            ``(2) the course offerings at the National Defense University
        continue to be determined solely by the needs of the Department of
        Defense.
        ``(e) Tuition.--The President of the National Defense University
    shall charge students enrolled under this section a rate--
            ``(1) that is at least the rate charged for employees of the
        United States outside the Department of Defense, less
        infrastructure costs, and
            ``(2) that considers the value to the school and course of the
        private sector student.
        ``(f) Standards of Conduct.--While receiving instruction at the
    National Defense University, students enrolled under this section, to
    the extent practicable, are subject to the same regulations governing
    academic performance, attendance, norms of behavior, and enrollment as
    apply to Government civilian employees receiving instruction at the
    university.
        ``(g) Use of Funds.--Amounts received by the National Defense
    University for instruction of students enrolled under this section
    shall be retained by the university to defray the costs of such
    instruction. The source, and the disposition, of such funds shall be
    specifically identified in records of the university.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``2167. National Defense University: admission of private sector
    civilians to professional military education program.''.

        (b) Effective Date.--Section 2167 of title 10, United States Code,
    as added by subsection (a), shall take effect on January 1, 2002.
        SEC. 529. CONTINUATION OF RESERVE COMPONENT PROFESSIONAL MILITARY
          EDUCATION TEST.
        (a) Continuation of Concept Validation Test.--During fiscal year
    2002, the Secretary of Defense shall continue the concept validation
    test of Reserve component joint professional military education that
    was begun in fiscal year 2001 at the National Defense University.
        (b) Pilot Program.--If the Secretary of Defense determines that the
    results of the concept validation test referred to in subsection (a)
    warrant conducting a pilot program of the concept that was the subject
    of the test, the Secretary shall conduct such a pilot program during
    fiscal year 2003.
        (c) Funding.--The Secretary shall provide funds for the concept
    validation test under subsection (a) and for any pilot program under
    subsection (b) from funds appropriated to the Secretary of Defense in
    addition to those appropriated for operations of the National Defense
    University.

                  Subtitle D--Military Education and Training

        SEC. 531. DEFENSE LANGUAGE INSTITUTE FOREIGN LANGUAGE CENTER.
        (a) Authority To Confer Associate of Arts Degree.--Chapter 108 of
    title 10, United States Code, is amended by adding after section 2167,
    as added by section 528(a)(1), the following new section:
    ``Sec. 2168. Defense Language Institute Foreign Language Center: degree
         of Associate of Arts in foreign language
        ``(a) Subject to subsection (b), the Commandant of the Defense
    Language Institute may confer an Associate of Arts degree in a foreign
    language upon any graduate of the Foreign Language Center of the
    Institute who fulfills the requirements for that degree.
        ``(b) A degree may be conferred upon a student under this section
    only if the Provost of the Center certifies to the Commandant that the
    student has satisfied all the requirements prescribed for the degree.
        ``(c) The authority provided by subsection (a) shall be exercised
    under regulations prescribed by the Secretary of Defense.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding after the item relating to section
    2167, as added by section 528(a)(2), the following new item:

    ``2168. Defense Language Institute Foreign Language Center: degree of
    Associate of Arts in foreign language.''.

        SEC. 532. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD DEGREE
          OF MASTER OF STRATEGIC STUDIES.
        (a) Marine Corps War College Degree.--Section 7102 of title 10,
    United States Code, is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new
        subsection (b):
        ``(b) Marine Corps War College.--Upon the recommendation of the
    Director and faculty of the Marine Corps War College of the Marine
    Corps University, the President of the Marine Corps University may
    confer the degree of master of strategic studies upon graduates of the
    Marine Corps War College who fulfill the requirements for that
    degree.''.
        (b) Conforming Amendments.--(1) Subsection (a) of such section is
    amended by striking ``upon graduates'' and all that follows and
    inserting ``upon graduates of the Command and Staff College who fulfill
    the requirements for that degree.''.
        (2) Subsection (c) of such section, as redesignated by subsection
    (a)(1), is amended by striking ``subsection (a)'' and inserting
    ``subsections (a) and (b)''.
        (3)(A) The heading of such section is amended to read as follows:
    ``Sec. 7102. Marine Corps University: masters degrees; board of
         advisors''.
        (B) The item relating to such section in the table of sections at
    the beginning of chapter 609 of such title is amended to read as
    follows:

    ``7102. Marine Corps University: masters degrees; board of advisors.''.

        (c) Codification of Requirement for Board of Advisors.--(1) Section
    7102 of title 10, United States Code, as amended by subsections (a) and
    (b), is further amended by adding at the end the following new
    subsection:
        ``(d) Board of Advisors.--The Secretary of the Navy shall establish
    a board of advisors for the Marine Corps University. The Secretary
    shall ensure that the board is established so as to meet all
    requirements of the appropriate regional accrediting association.''.
        (2) Section 912 of the National Defense Authorization Act for
    Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 7102 note) is repealed.
        (d) Effective Date.--The authority to confer the degree of master
    of strategic studies under section 7102(b) of title 10, United States
    Code (as added by subsection (a)) may not be exercised until the
    Secretary of Education determines, and certifies to the President of
    the Marine Corps University, that the requirements established by the
    Marine Corps War College of the Marine Corps University for that degree
    are in accordance with generally applicable requirements for a degree
    of master of arts. Upon receipt of such a certification, the President
    of the University shall promptly transmit a copy of the certification
    to the Committee on Armed Services of the Senate and Committee on Armed
    Services of the House of Representatives.
        SEC. 533. FOREIGN STUDENTS ATTENDING THE SERVICE ACADEMIES.
        (a) United States Military Academy.--(1) Subsection (a)(1) of
    section 4344 of title 10, United States Code, is amended by striking
    ``not more than 40 persons'' and inserting ``not more than 60
    persons''.
        (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver of
        reimbursement is granted by the Secretary of Defense'' in the first
        sentence; and
            (B) by striking paragraph (3) and inserting the following:
        ``(3) The Secretary of Defense may waive, in whole or in part, the
    requirement for reimbursement of the cost of instruction for a cadet
    under paragraph (2). In the case of a partial waiver, the Secretary
    shall establish the amount waived.''.
        (3) The amendments made by paragraph (2) shall not apply with
    respect to any person who entered the United States Military Academy to
    receive instruction under section 4344 of title 10, United States Code,
    before the date of the enactment of this Act.
        (b) United States Naval Academy.--(1) Subsection (a)(1) of section
    6957 of such title is amended by striking ``not more than 40 persons''
    and inserting ``not more than 60 persons''.
        (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver of
        reimbursement is granted by the Secretary of Defense'' in the first
        sentence; and
            (B) by striking paragraph (3) and inserting the following:
        ``(3) The Secretary of Defense may waive, in whole or in part, the
    requirement for reimbursement of the cost of instruction for a
    midshipman under paragraph (2). In the case of a partial waiver, the
    Secretary shall establish the amount waived.''.
        (3) The amendments made by paragraph (2) shall not apply with
    respect to any person who entered the United States Naval Academy to
    receive instruction under section 6957 of title 10, United States Code,
    before the date of the enactment of this Act.
        (c) United States Air Force Academy.--(1) Subsection (a)(1) of
    section 9344 of such title is amended by striking ``not more than 40
    persons'' and inserting ``not more than 60 persons''.
        (2) Subsection (b) of such section is amended--
            (A) in paragraph (2), by striking ``unless a written waiver of
        reimbursement is granted by the Secretary of Defense'' in the first
        sentence; and
            (B) by striking paragraph (3) and inserting the following:
        ``(3) The Secretary of Defense may waive, in whole or in part, the
    requirement for reimbursement of the cost of instruction for a cadet
    under paragraph (2). In the case of a partial waiver, the Secretary
    shall establish the amount waived.''.
        (3) The amendments made by paragraph (2) shall not apply with
    respect to any person who entered the United States Air Force Academy
    to receive instruction under section 9344 of title 10, United States
    Code, before the date of the enactment of this Act.
        (d) Effective Date.--The amendments made by this section shall not
    apply with respect to any academic year that began before the date of
    the enactment of this Act.
        SEC. 534. INCREASE IN MAXIMUM AGE FOR APPOINTMENT AS A CADET OR
          MIDSHIPMAN IN SENIOR RESERVE OFFICERS' TRAINING CORPS SCHOLARSHIP
          PROGRAMS.
        (a) General ROTC Scholarship Program.--Section 2107(a) of title 10,
    United States Code, is amended--
            (1) by striking ``27 years of age on June 30'' and inserting
        ``31 years of age on December 31''; and
            (2) by striking ``, except that'' and all that follows through
        ``on such date'' the second place it appears.
        (b) Army Reserve and Army National Guard ROTC Scholarship
    Program.--Section 2107a(a)(1) of such title is amended--
            (1) by striking ``27 years of age on June 30'' and inserting
        ``31 years of age on December 31''; and
            (2) by striking ``, except that'' and all that follows through
        ``on such date'' the second place it appears.
        SEC. 535. PARTICIPATION OF REGULAR ENLISTED MEMBERS OF THE ARMED
          FORCES IN SENIOR RESERVE OFFICERS' TRAINING CORPS PROGRAM.
        (a) Eligibility.--Section 2104(b)(3) of title 10, United States
    Code, is amended by striking ``a reserve component of''.
        (b) Pay Rate While on Field Training or Practice Cruise.--Section
    209(c) of title 37, United States Code, is amended by inserting before
    the period at the end the following: ``, except that the rate for a
    cadet or midshipman who is a member of the regular component of an
    armed force shall be the rate of basic pay applicable to the member
    under section 203 of this title''.
        SEC. 536. AUTHORITY TO MODIFY THE SERVICE OBLIGATION OF CERTAIN
          ROTC CADETS IN MILITARY JUNIOR COLLEGES RECEIVING FINANCIAL
          ASSISTANCE.
        (a) Authority To Modify Agreements.--Subsection (b) of section
    2107a of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by redesignating paragraphs (1), (2), (3), (4), (5), and
        (6) as subparagraphs (A), (B), (C), (D), (E), and (F),
        respectively;
            (3) by designating the sentence following subparagraph (F), as
        so redesignated, as paragraph (2); and
            (4) by adding at the end the following new paragraph:
        ``(3) In the case of a cadet under this section at a military
    junior college, the Secretary may, at any time and with the consent of
    the cadet concerned, modify an agreement described in paragraph (1)(F)
    submitted by the cadet to reduce or eliminate the troop program unit
    service obligation specified in the agreement and to establish, in lieu
    of that obligation, an active duty service obligation. Such a
    modification may be made only if the Secretary determines that it is in
    the best interests of the United States to do so.''.
        (b) Retroactive Application.--The authority of the Secretary of
    Defense under paragraph (3) of section 2107a(b) of title 10, United
    States Code, as added by subsection (a), may be exercised with regard
    to any agreement described in paragraph (1)(F) of such section
    (including agreements related to participation in the Advanced Course
    of the Army Reserve Officers' Training Corps at a military college or
    civilian institution) that was entered into during the period beginning
    on January 1, 1991, and ending on July 12, 2000 (in addition to any
    agreement described in that paragraph that is entered into on or after
    the date of the enactment of this Act).
        (c) Technical Amendment.--Subsection (h) of such section is amended
    by striking ``military college'' in the second sentence and inserting
    ``military junior college''.
        SEC. 537. REPEAL OF LIMITATION ON NUMBER OF JUNIOR RESERVE
          OFFICERS' TRAINING CORPS UNITS.
        Section 2031(a)(1) of title 10, United States Code, is amended by
    striking the second sentence.
        SEC. 538. MODIFICATION OF NURSE OFFICER CANDIDATE ACCESSION PROGRAM
          RESTRICTION ON STUDENTS ATTENDING EDUCATIONAL INSTITUTIONS WITH
          SENIOR RESERVE OFFICERS' TRAINING PROGRAMS.
        Section 2130a of title 10, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``that does not have a
        Senior Reserve Officers' Training Program established under section
        2102 of this title''; and
            (2) in subsection (b)(1), by inserting before the semicolon at
        the end ``or that has a Senior Reserve Officers' Training Program
        for which the student is ineligible''.
        SEC. 539. RESERVE HEALTH PROFESSIONALS STIPEND PROGRAM EXPANSION.
        (a) Purpose of Program.--Subsection (a) of section 16201 of title
    10, United States Code, is amended--
            (1) by striking ``specialties critically needed in wartime'';
            (2) by striking ``training in such specialties'' and inserting
        ``training that leads to a degree in medicine or dentistry or
        training in a health professions specialty that is critically
        needed in wartime''; and
            (3) by striking ``training in certain health care specialties''
        and inserting ``health care education and training''.
        (b) Medical and Dental Student Stipend.--Such section is further
    amended--
            (1) by redesignating subsections (b), (c), (d), and (e) as
        subsections (c), (d), (e), and (f), respectively; and
            (2) by inserting after subsection (a) the following new
        subsection (b):
        ``(b) Medical and Dental School Students.--(1) Under the stipend
    program under this chapter, the Secretary of the military department
    concerned may enter into an agreement with a person who--
            ``(A) is eligible to be appointed as an officer in a reserve
        component;
            ``(B) is enrolled or has been accepted for enrollment in an
        institution in a course of study that results in a degree in
        medicine or dentistry;
            ``(C) signs an agreement that, unless sooner separated, the
        person will--
                ``(i) complete the educational phase of the program;
                ``(ii) accept a reappointment or redesignation within the
            person's reserve component, if tendered, based upon the
            person's health profession, following satisfactory completion
            of the educational and intern programs; and
                ``(iii) participate in a residency program; and
            ``(D) if required by regulations prescribed by the Secretary of
        Defense, agrees to apply for, if eligible, and accept, if offered,
        residency training in a health profession skill which has been
        designated by the Secretary of Defense as a critically needed
        wartime skill.
        ``(2) Under the agreement--
            ``(A) the Secretary of the military department concerned shall
        agree to pay the participant a stipend, in the amount determined
        under subsection (f), for the period or the remainder of the period
        that the student is satisfactorily progressing toward a degree in
        medicine or dentistry while enrolled in an accredited medical or
        dental school;
            ``(B) the participant shall not be eligible to receive such
        stipend before appointment, designation, or assignment as an
        officer for service in the Ready Reserve;
            ``(C) the participant shall be subject to such active duty
        requirements as may be specified in the agreement and to active
        duty in time of war or national emergency as provided by law for
        members of the Ready Reserve; and
            ``(D) the participant shall agree to serve in the Selected
        Reserve, upon successful completion of the program, for the period
        of service applicable under paragraph (3).
        ``(3)(A) Subject to subparagraph (B), the period for which a
    participant is required to serve in the Selected Reserve under the
    agreement pursuant to paragraph (2)(D) shall be one year for each
    period of six months, or part thereof, for which the participant is
    provided a stipend pursuant to the agreement.
        ``(B) In the case of a participant who enters into a subsequent
    agreement under subsection (c) and successfully completes residency
    training in a specialty designated by the Secretary of Defense as a
    specialty critically needed by the military department in wartime, the
    requirement to serve in the Selected Reserve may be reduced to one year
    for each year, or part thereof, for which the stipend was provided
    while enrolled in medical or dental school.''.
        (c) Wartime Critical Skills.--Subsection (c) of such section (as
    redesignated by subsection (b)(1)) is amended--
            (1) by inserting ``Wartime'' after ``Critical'' in the heading;
        and
            (2) by inserting ``or has been appointed as a medical or dental
        officer in the Reserve of the armed force concerned'' in paragraph
        (1)(B) before the semicolon at the end.
        (d) Service Obligation Requirement.--Paragraph (2)(D) of subsection
    (c) of such section (as redesignated by subsection (b)(1)) and
    paragraph (2)(D) of subsection (d) of such section (as so redesignated)
    are amended by striking ``two years in the Ready Reserve for each
    year,'' and inserting ``one year in the Ready Reserve for each six
    months,''.
        (e) Cross-Reference.--Paragraph (2)(A) of subsection (c) of such
    section (as redesignated by subsection (b)(1)) and paragraph (2)(A) of
    subsection (d) of such section (as so redesignated) are amended by
    striking ``subsection (e)'' and inserting ``subsection (f)''.
        SEC. 540. HOUSING ALLOWANCE FOR THE CHAPLAIN FOR THE CORPS OF
          CADETS AT THE UNITED STATES MILITARY ACADEMY.
        (a) Authority.--The second sentence of section 4337 of title 10,
    United States Code, is amended by striking ``the same allowances'' and
    all that follows through ``captain'' and inserting ``a monthly housing
    allowance in the same amount as the basic allowance for housing allowed
    to a lieutenant colonel''.
        (b) Effective Date.--The amendment made by subsection (a) shall
    take effect on the first day of the first month beginning on or after
    the date of the enactment of this Act.

                 Subtitle E--Recruiting and Accession Programs

    SEC. 541. 18-MONTH ENLISTMENT PILOT PROGRAM.

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

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

        ``(a) During the pilot program period, the Secretary of the Army
    shall carry out a pilot program with the objective of increasing
    participation of prior service persons in the Selected Reserve and
    providing assistance in building the pool of participants in the
    Individual Ready Reserve.
        ``(b) Under the program, the Secretary may, notwithstanding section
    505(c) of this title, accept persons for original enlistment in the
    Army for a term of enlistment consisting of 18 months service on active
    duty, to be followed by three years of service in the Selected Reserve
    and then service in the Individual Ready Reserve to complete the
    military service obligation.
        ``(c) Under regulations and conditions established by the Secretary
    of the Army, a member enlisting under this section may, at the end of
    the 18-month period of service on active duty under that enlistment, be
    permitted to reenlist for continued service on active duty in lieu of
    the service in the Selected Reserve and the Individual Ready Reserve
    otherwise required under the terms of the member's enlistment.
        ``(d) No more than 10,000 persons may be accepted for enlistment in
    the Army through the program under this section.
        ``(e) A person enlisting in the Army through the program under this
    section is eligible for an enlistment bonus under section 309 of title
    37, notwithstanding the enlistment time period specified in subsection
    (a) of that section.
        ``(f) For purposes of this section, the pilot program period is the
    period beginning on the date selected by the Secretary of the Army for
    the commencement of the pilot program, which date shall be not later
    than October 1, 2003, and ending on December 31, 2007.
        ``(g) Not later than December 31, 2007, and December 31, 2012, the
    Secretary of the Army shall submit to the Committee on Armed Services
    of the Senate and the Committee on Armed Services of the House of
    Representatives a report on the program under this section. In each
    such report, the Secretary shall set forth the views of the Secretary
    on the success of the program in meeting the objectives stated in
    subsection (a) and whether the program should be continued and, if so,
    whether it should be modified or expanded.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:
    ``3264. 18-month enlistment pilot program.''.

        (b) Implementation Report.--The Secretary of the Army shall submit
    to the Committee on Armed Services of the Senate and the Committee on
    Armed Services of the House of Representatives a report on the
    Secretary's plan for implementation of section 3264 of title 10, United
    States Code, as added by subsection (a). Such report shall be submitted
    not later than March 1, 2002.
        SEC. 542. IMPROVED BENEFITS UNDER THE ARMY COLLEGE FIRST PROGRAM.
        (a) Increased Maximum Period of Delayed Entry.--Section 573 of the
    National Defense Authorization Act for Fiscal Year 2000 (Public Law
    106-65; 113 Stat. 623; 10 U.S.C. 513 note) is amended--
            (1) in subsection (b)--
                (A) by striking the matter preceding paragraph (1) and
            inserting the following:
        ``(b) Delayed Entry With Allowance for Higher Education.--Under the
    pilot program, the Secretary may--
            ``(1) exercise the authority under section 513 of title 10,
        United States Code--'';
                (B) by redesignating paragraphs (1) and (2) as
            subparagraphs (A) and (B), respectively, and realigning those
            subparagraphs four ems from the left margin;
                (C) at the end of subparagraph (A), as so redesignated, by
            inserting ``and'' after the semicolon; and
                (D) in subparagraph (B), as so redesignated, by striking
            ``two years after the date of such enlistment as a Reserve
            under paragraph (1)'' and inserting ``the maximum period of
            delay determined for that person under subsection (c)''; and
            (2) in subsection (c)--
                (A) by striking ``paragraph (2)'' and inserting ``paragraph
            (1)(B)'';
                (B) by striking ``two-year period'' and inserting ``30-
            month period''; and
                (C) by striking ``paragraph (1)'' and inserting ``paragraph
            (1)(A)''.
        (b) Allowance Eligibility and Amount.--(1) Such section is further
    amended--
            (A) in subsection (b), by striking paragraph (3) and inserting
        the following:
            ``(2) subject to paragraph (2) of subsection (d) and except as
        provided in paragraph (3) of that subsection, pay an allowance to a
        person accepted for enlistment under paragraph (1)(A) for each
        month of the period during which that person is enrolled in and
        pursuing a program described in paragraph (1)(B)''; and
            (B) in subsection (d)--
                (i) by redesignating paragraph (2) as paragraph (4);
                (ii) by striking paragraph (1) and inserting the following
            new paragraphs:
        ``(1) The monthly allowance paid under subsection (b)(2) shall be
    equal to the amount of the subsistence allowance provided for certain
    members of the Senior Reserve Officers' Training Corps with the
    corresponding number of years of participation under section 209(a) of
    title 37, United States Code.
        ``(2) An allowance may not be paid to a person under this section
    for more than 24 months.
        ``(3) A member of the Selected Reserve of a reserve component may
    be paid an allowance under this section only for months during which
    the member performs satisfactorily as a member of a unit of the reserve
    component that trains as prescribed in section 10147(a)(1) of title 10,
    United States Code, or section 502(a) of title 32, United States Code.
    Satisfactory performance shall be determined under regulations
    prescribed by the Secretary.''.
        (2) The heading for such subsection is amended by striking ``Amount
    of''.
        (c) Ineligibility for Loan Repayments; Recoupment.--Such section is
    further amended--
            (1) by redesignating subsections (e), (f), and (g) as
        subsections (g), (h), and (i), respectively; and
            (2) by inserting after subsection (d) the following new
        subsections:
        ``(e) Ineligibility for Loan Repayments.--A person who has received
    an allowance under this section is not eligible for any benefits under
    chapter 109 of title 10, United States Code.
        ``(f) Recoupment of Allowance.--(1) A person who, after receiving
    an allowance under this section, fails to complete the total period of
    service required of that person in connection with delayed entry
    authorized for the person under section 513 of title 10, United States
    Code, shall repay the United States the amount which bears the same
    ratio to the total amount of that allowance paid to the person as the
    unserved part of the total required period of service bears to the
    total period.
        ``(2) An obligation to repay the United States imposed under
    paragraph (1) is for all purposes a debt owed to the United States.
        ``(3) A discharge of a person in bankruptcy under title 11, United
    States Code, that is entered less than five years after the date on
    which the person was, or was to be, enlisted in the regular Army
    pursuant to the delayed entry authority under section 513 of title 10,
    United States Code, does not discharge that person from a debt arising
    under paragraph (1).
        ``(4) The Secretary of the Army may waive, in whole or in part, a
    debt arising under paragraph (1) in any case for which the Secretary
    determines that recovery would be against equity and good conscience or
    would be contrary to the best interests of the United States.''.
        (d) Effective Date.--The amendments made by this section shall
    apply with respect to persons who, on or after the date of the
    enactment of this Act, are enlisted as described in subsection (a) of
    section 513 of title 10, United States Code, with delayed entry
    authorized under that section.
        SEC. 543. CORRECTION AND EXTENSION OF CERTAIN ARMY RECRUITING PILOT
          PROGRAM AUTHORITIES.
        (a) Contract Recruiting Initiatives.--Subsection (d)(2) of section
    561 of the Floyd D. Spence National Defense Authorization Act for
    Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat.
    1654A-130) is amended--
            (1) in subparagraphs (A) and (D), by inserting ``and Army
        Reserve'' after ``Regular Army''; and
            (2) in subparagraph (B), by striking ``and chain of command''.
        (b) Extension of Authority.--Subsection (e) of such section is
    amended by striking ``December 31, 2005'' and inserting ``September 30,
    2007''.
        (c) Extension of Time for Reports.--Subsection (g) of such section
    is amended by striking ``February 1, 2006'' and inserting ``February 1,
    2008''.
        SEC. 544. MILITARY RECRUITER ACCESS TO SECONDARY SCHOOL STUDENTS.
        (a) Access to Secondary Schools.--Paragraph (1) of section 503(c)
    of title 10, United States Code, is amended to read as follows:
        ``(c) Access to Secondary Schools.--(1)(A) Each local educational
    agency receiving assistance under the Elementary and Secondary
    Education Act of 1965--
            ``(i) shall provide to military recruiters the same access to
        secondary school students as is provided generally to postsecondary
        educational institutions or to prospective employers of those
        students; and
            ``(ii) shall, upon a request made by military recruiters for
        military recruiting purposes, provide access to secondary school
        student names, addresses, and telephone listings, notwithstanding
        section 444(a)(5)(B) of the General Education Provisions Act (20
        U.S.C. 1232g(a)(5)(B)).
        ``(B) A local educational agency may not release a student's name,
    address, and telephone listing under subparagraph (A)(ii) without the
    prior written consent of a parent of the student if the student, or a
    parent of the student, has submitted a request to the local educational
    agency that the student's information not be released for a purpose
    covered by that subparagraph without prior written parental consent.
    Each local education agency shall notify parents of the rights provided
    under the preceding sentence.''.
        (b) Effective Date.--The amendment made by subsection (a) shall
    take effect on July 1, 2002, immediately after the amendment to section
    503(c) of title 10, United States Code, made, effective that date, by
    section 563(a) of the Floyd D. Spence National Defense Authorization
    Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398;
    114 Stat. 1654A-131).
        (c) Notification.--The Secretary of Education shall provide to
    local educational agencies notice of the provisions of subsection (c)
    of section 503 of title 10, United States Code, as in effect upon the
    amendments made by subsection (a). Such notice shall be provided not
    later than 120 days after the date of the enactment of this Act and
    shall be provided in consultation with the Secretary of Defense.
        SEC. 545. PERMANENT AUTHORITY FOR USE OF MILITARY RECRUITING FUNDS
          FOR CERTAIN EXPENSES AT DEPARTMENT OF DEFENSE RECRUITING
          FUNCTIONS.
        (a) Repeal of Termination Provision.--Section 520c of title 10,
    United States Code, is amended by striking subsection (c).
        (b) Technical Amendments.--Subsection (a) of such section is
    amended--
            (1) in paragraph (4), by striking ``recruiting events'' and
        inserting ``recruiting functions''; and
            (2) in paragraph (5), by striking ``recruiting efforts'' the
        first place it appears and inserting ``recruiting functions''.
        SEC. 546. REPORT ON HEALTH AND DISABILITY BENEFITS FOR PRE-
          ACCESSION TRAINING AND EDUCATION PROGRAMS.
        (a) Study.--The Secretary of Defense shall conduct a review of the
    health and disability benefit programs available to recruits and
    officer candidates engaged in training, education, or other types of
    programs while not yet on active duty and to cadets and midshipmen
    attending the service academies. The review shall be conducted with the
    participation of the Secretaries of the military departments.
        (b) Report.--Not 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.
            (6) An analysis of health and disability benefits under laws
        administered by the Department of Veterans Affairs and the
        Department of Labor for which those persons become eligible upon
        being injured in training or education and a discussion of how
        those benefits compare to the benefits those persons would receive
        if retired for physical disability by the Department of Defense.

          Subtitle F--Decorations, Awards, and Posthumous Commissions

        SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO HUMBERT R.
          VERSACE, JON E. SWANSON, AND BEN L. SALOMON FOR VALOR.
        (a) Waiver of Time Limitations.--Notwithstanding the time
    limitations specified in section 3744 of title 10, United States Code,
    or any other time limitation with respect to the awarding of certain
    medals to persons who served in the military service, the President may
    award the Medal of Honor under section 3741 of that title to any of the
    persons named in subsections (b), (c), and (d) for the acts of valor
    referred to in those respective subsections.
        (b) Humbert R. Versace.--Subsection (a) applies with respect to
    Humbert R. Versace, for conspicuous acts of gallantry and intrepidity
    at the risk of his life and beyond the call of duty between October 29,
    1963, and September 26, 1965, while interned as a prisoner of war by
    the Vietnamese Communist National Liberation Front (Viet Cong) in the
    Republic of Vietnam.
        (c) Jon E. Swanson.--Subsection (a) applies with respect to Jon E.
    Swanson, for conspicuous acts of gallantry and intrepidity at the risk
    of his life and beyond the call of duty on February 26, 1971, while
    piloting a Scout helicopter on a close-support reconnaissance mission
    in support of the Army of the Republic of Vietnam Task Force 333 in the
    Kingdom of Cambodia.
        (d) Ben L. Salomon.--Subsection (a) applies with respect to Ben L.
    Salomon, for conspicuous acts of gallantry and intrepidity at the risk
    of his life and beyond the call of duty on July 7, 1944, while
    defending the soldiers under his care as the Surgeon, 2d Battalion,
    105th Infantry Regiment, 27th Infantry Division against an overwhelming
    enemy force at Saipan, Marianas Islands.
        SEC. 552. REVIEW REGARDING AWARD OF MEDAL OF HONOR TO CERTAIN
          JEWISH AMERICAN AND HISPANIC AMERICAN WAR VETERANS.
        (a) Review Required.--The Secretary of each military department
    shall review the service records of each Jewish American war veteran or
    Hispanic American war veteran described in subsection (b) to determine
    whether that veteran should be awarded the Medal of Honor.
        (b) Covered Jewish American War Veterans and Hispanic American War
    Veterans.--The Jewish American war veterans and Hispanic American war
    veterans whose service records are to be reviewed under subsection (a)
    are the following:
            (1) Any Jewish American war veteran or Hispanic American war
        veteran who was awarded the Distinguished Service Cross, the Navy
        Cross, or the Air Force Cross before the date of the enactment of
        this Act.
            (2) Any other Jewish American war veteran or Hispanic American
        war veteran whose name is submitted to the Secretary concerned for
        such purpose before the end of the one-year period beginning on the
        date of the enactment of this Act.
        (c) Consultations.--In carrying out the review under subsection
    (a), the Secretary of each military department shall consult with the
    Jewish War Veterans of the United States of America and with such other
    veterans service organizations as the Secretary considers appropriate.
        (d) Recommendation Based on Review.--If the Secretary concerned
    determines, based upon the review under subsection (a) of the service
    records of any Jewish American war veteran or Hispanic American war
    veteran, that the award of the Medal of Honor to that veteran is
    warranted, the Secretary shall submit to the President a recommendation
    that the President award the Medal of Honor to that veteran.
        (e) Authority To Award Medal of Honor.--A Medal of Honor may be
    awarded to a Jewish American war veteran or Hispanic American war
    veteran in accordance with a recommendation of the Secretary concerned
    under subsection (d).
        (f) Waiver of Time Limitations.--An award of the Medal of Honor may
    be made under subsection (e) without regard to--
            (1) section 3744, 6248, or 8744 of title 10, United States
        Code, as applicable; and
            (2) any regulation or other administrative restriction on--
                (A) the time for awarding the Medal of Honor; or
                (B) the awarding of the Medal of Honor for service for
            which a Distinguished Service Cross, Navy Cross, or Air Force
            Cross has been awarded.
        (g) Definition.--For purposes of this section, the term ``Jewish
    American war veteran'' means any person who served in the Armed Forces
    during World War II or a later period of war and who identified himself
    or herself as Jewish on his or her military personnel records.
        SEC. 553. AUTHORITY TO ISSUE DUPLICATE MEDALS OF HONOR AND TO
          REPLACE STOLEN MILITARY DECORATIONS.
        (a) Army.--(1)(A) Chapter 357 of title 10, United States Code, is
    amended by adding at the end the following new section:

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

        ``A person awarded a medal of honor shall, upon written application
    of that person, be issued, without charge, one duplicate medal of honor
    with ribbons and appurtenances. Such duplicate medal of honor shall be
    marked, in such manner as the Secretary of the Army may determine, as a
    duplicate or for display purposes only.''.
        (B) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:
    ``3754. Medal of honor: duplicate medal.''.

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

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

        ``A person awarded a medal of honor shall, upon written application
    of that person, be issued, without charge, one duplicate medal of honor
    with ribbons and appurtenances. Such duplicate medal of honor shall be
    marked, in such manner as the Secretary of the Navy may determine, as a
    duplicate or for display purposes only.''.
        (B) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:
    ``6256. Medal of honor: duplicate medal.''.

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

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

        ``A person awarded a medal of honor shall, upon written application
    of that person, be issued, without charge, one duplicate medal of honor
    with ribbons and appurtenances. Such duplicate medal of honor shall be
    marked, in such manner as the Secretary of the Air Force may determine,
    as a duplicate or for display purposes only.''.
        (B) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:
    ``8754. Medal of honor: duplicate medal.''.

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

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

        ``A person awarded a medal of honor shall, upon written application
    of that person, be issued, without charge, one duplicate medal of honor
    with ribbons and appurtenances. Such duplicate medal of honor shall be
    marked, in such manner as the Secretary may determine, as a duplicate
    or for display purposes only.''.
        (B) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 503 the
    following new item:
    ``504. Medal of honor: duplicate medal.''.

        (2) Section 501 of such title is amended by inserting ``stolen,''
    before ``lost,''.
        (e) Definition of Medal of Honor for Purposes of Federal
    Unauthorized-Use Crime.--Section 704(b)(2)(B) of title 18, United
    States Code, is amended to read as follows:
            ``(B) As used in this subsection, `Congressional Medal of
        Honor' means--
                ``(i) a medal of honor awarded under section 3741, 6241, or
            8741 of title 10 or section 491 of title 14;
                ``(ii) a duplicate medal of honor issued under section
            3754, 6256, or 8754 of title 10 or section 504 of title 14; or
                ``(iii) a replacement of a medal of honor provided under
            section 3747, 6253, or 8747 of title 10 or section 501 of title
            14.''.
        SEC. 554. RETROACTIVE MEDAL OF HONOR SPECIAL PENSION.
        (a) Entitlement.--Notwithstanding any other provision of law,
    Robert R. Ingram of Jacksonville, Florida, who was awarded the Medal of
    Honor pursuant to Public Law 105-103 (111 Stat. 2218), shall be
    entitled to the special pension provided for under section 1562 of
    title 38, United States Code (and antecedent provisions of law), for
    months that begin after March 1966.
        (b) Amount.--The amount of special pension payable under subsection
    (a) for a month beginning before the date of the enactment of this Act
    shall be the amount of special pension provided for by law for that
    month for persons entered and recorded in the Army, Navy, Air Force,
    and Coast Guard Medal of Honor Roll (or antecedent Medal of Honor Roll
    required by law).
        SEC. 555. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN
          DECORATIONS TO CERTAIN PERSONS.
        (a) Waiver.--Any limitation established by law or policy for the
    time within which a recommendation for the award of a military
    decoration or award must be submitted shall not apply to awards of
    decorations described in this section, the award of each such
    decoration having been determined by the Secretary concerned to be
    warranted in accordance with section 1130 of title 10, United States
    Code.
        (b) Silver 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. 556. SENSE OF CONGRESS ON ISSUANCE OF CERTAIN MEDALS.
        It is the sense of Congress that the Secretary of Defense should
    consider authorizing--
            (1) the issuance of a campaign medal, to be known as the Korea
        Defense Service Medal, to each person who while a member of the
        Armed Forces served in the Republic of Korea, or the waters
        adjacent thereto, during the period beginning on July 28, 1954, and
        ending on such date thereafter as the Secretary considers
        appropriate;
            (2) the issuance of a campaign medal, to be known as the Cold
        War Service Medal, to each person who while a member of the Armed
        Forces served satisfactorily on active duty during the Cold War;
        and
            (3) the award of the Vietnam Service Medal to any member or
        former member of the Armed Forces who was awarded the Armed Forces
        Expeditionary Medal for participation in military operations
        designated as Operation Frequent Wind arising from the evacuation
        of Vietnam on April 29 and 30, 1975.
        SEC. 557. SENSE OF CONGRESS ON DEVELOPMENT OF A MORE COMPREHENSIVE,
          UNIFORM POLICY FOR THE AWARD OF DECORATIONS TO MILITARY AND
          CIVILIAN PERSONNEL OF THE DEPARTMENT OF DEFENSE.
        (a) Findings.--Congress makes the following findings:
            (1) The role and importance of civilian nationals of the United
        States as Federal employees and contractors in support of
        operations of the Armed Forces worldwide has continued to expand.
            (2) The expanded role performed by those civilians, both in the
        United States and overseas, has greatly increased the risk to those
        civilians of injury and death from hostile actions taken against
        United States Armed Forces, as demonstrated by the terrorist attack
        on the Pentagon on September 11, 2001, in which scores of
        Department of Defense civilian and contractor personnel were killed
        or wounded.
            (3) On September 20, 2001, the Deputy Secretary of Defense
        approved the creation of a new award, a medal for the defense of
        freedom, to be awarded to civilians employed by the Department of
        Defense who are killed or wounded as a result of hostile action and
        at the same time directed that a comprehensive review be conducted
        to develop a more uniform approach to the award of decorations to
        military and civilian personnel of the Department of Defense.
        (b) Commendation of Creation of New Award.--Congress commends the
    decision announced by the Deputy Secretary of Defense on September 20,
    2001, to approve the creation of a new award, a medal for the defense
    of freedom, to be awarded to civilians employed by the Department of
    Defense who are killed or wounded as a result of hostile action.
        (c) Sense of Congress.--It is the sense of Congress that the
    Secretary of Defense should act expeditiously to develop a more
    comprehensive, uniform policy for the award of decorations to military
    and civilian personnel of the Department of Defense.
        SEC. 558. POSTHUMOUS ARMY COMMISSION IN THE GRADE OF CAPTAIN IN THE
          CHAPLAINS CORPS TO ELLA E. GIBSON FOR SERVICE AS CHAPLAIN OF THE
          FIRST WISCONSIN HEAVY ARTILLERY REGIMENT DURING THE CIVIL WAR.
        The President is authorized and requested to posthumously appoint
    Ella E. Gibson to the grade of captain in the Chaplains Corps of the
    Army, the commission to issue as of the date of her appointment as
    chaplain to the First Wisconsin Heavy Artillery regiment during the
    Civil War and to be considered to have been in effect during the time
    during which she faithfully performed the services of a chaplain to
    that regiment and for which Congress by law (Private Resolution 31 of
    the 40th Congress, approved March 3, 1869) previously provided for her
    to be paid the full pay and emoluments of a chaplain in the United
    States Army as if she had been regularly commissioned and mustered into
    service.

                        Subtitle G--Funeral Honors Duty

        SEC. 561. PARTICIPATION OF MILITARY RETIREES IN FUNERAL HONORS
          DETAILS.
        (a) Authority.--Subsection (b)(2) of section 1491 of title 10,
    United States Code, is amended--
            (1) in the first sentence, by inserting ``(other than members
        in a retired status)'' after ``members of the armed forces''; and
            (2) in the second sentence, by inserting ``(including members
        in a retired status),'' after ``members of the armed forces''.
        (b) Funeral Honors Duty Allowance.--Section 435(a) of title 37,
    United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a) Allowance Authorized.--'';
        and
            (2) by adding at the end the following new paragraph:
        ``(2) The Secretary concerned may also authorize payment of that
    allowance to a member of the armed forces in a retired status for any
    day on which the member serves in a funeral honors detail under section
    1491 of title 10, if the time required for service in such detail
    (including time for preparation) is not less than two hours. The amount
    of an allowance paid to a member under this paragraph shall be in
    addition to any other compensation to which the member may be entitled
    under this title or title 10 or 38.''.
        SEC. 562. FUNERAL HONORS DUTY PERFORMED BY RESERVE AND GUARD
          MEMBERS TO BE TREATED AS INACTIVE-DUTY TRAINING FOR CERTAIN
          PURPOSES.
        (a) Reserve Members.--Section 12503(a) of title 10, United States
    Code, is amended by adding at the end the following new sentence:
    ``Performance of funeral honors duty by a Reserve not on active duty
    shall be treated as inactive-duty training (including with respect to
    travel to and from such duty) for purposes of any provision of law
    other than sections 206 and 435 of title 37.''.
        (b) National Guard Members.--Section 115(a) of title 32, United
    States Code, is amended by adding at the end the following new
    sentence: ``Performance of funeral honors duty by such a member not on
    active duty or full-time National Guard duty shall be treated as
    inactive-duty training (including with respect to travel to and from
    such duty) for purposes of any provision of law other than sections 206
    and 435 of title 37.''.
        (c) Effective Date.--The amendments made by this section shall
    apply to funeral honors duty performed on or after October 30, 2000.
        SEC. 563. USE OF MILITARY LEAVE FOR FUNERAL HONORS DUTY BY RESERVE
          MEMBERS AND NATIONAL GUARDSMEN.
        Section 6323(a)(1) of title 5, United States Code, is amended by
    inserting ``funeral honors duty (as described in section 12503 of title
    10 and section 115 of title 32),'' after ``(as defined in section 101
    of title 37),''.
        SEC. 564. AUTHORITY TO PROVIDE APPROPRIATE ARTICLES OF CLOTHING AS
          A CIVILIAN UNIFORM FOR CIVILIANS PARTICIPATING IN FUNERAL HONOR
          DETAILS.
        Section 1491(d) of title 10, United States Code, is amended by
    adding at the end the following new paragraph:
            ``(3) Articles of clothing for members of a veterans
        organization or other organization referred to in subsection (b)(2)
        that, as determined by the Secretary concerned, are appropriate as
        a civilian uniform for persons participating in a funeral honors
        detail.''.

                Subtitle H--Military Spouses and Family Members

        SEC. 571. IMPROVED FINANCIAL AND OTHER ASSISTANCE TO MILITARY
          SPOUSES FOR JOB TRAINING AND EDUCATION.
        (a) Examination of Existing Employment Assistance Programs.--(1)
    The Secretary of Defense shall examine existing Department of Defense
    and other Federal, State, and nongovernmental programs with the
    objective of improving retention of military personnel by increasing
    the employability of military spouses and assisting those spouses in
    gaining access to financial and other assistance for job training and
    education.
        (2) In conducting the examination, the Secretary shall give
    priority to facilitating and increasing access of military spouses to
    existing Department of Defense, Federal, State, and nongovernmental
    sources for the types of financial assistance set forth in paragraph
    (3), but shall also specifically assess whether the Department of
    Defense should begin a program for direct financial assistance to
    military spouses for some or all of those types of assistance and
    whether such a program of direct financial assistance would enhance
    retention.
        (3) In conducting the examination pursuant to paragraph (1), the
    Secretary should focus on financial assistance for military spouses for
    one or more of the following purposes:
            (A) Career-related education.
            (B) Certification and license fees for employment-related
        purposes.
            (C) Apprenticeships and internships.
            (D) Technical training.
            (E) Training to improve job skills.
            (F) Career counseling.
            (G) Skills assessment.
            (H) Job-search skills.
            (I) Job-related transportation.
            (J) Child care.
            (K) Any additional employment-related purpose specified by the
        Secretary for the purposes of the examination under paragraph (1).
        (4) Not later than March 30, 2002, the Secretary of Defense shall
    submit to the Committee on Armed Services of the Senate and the
    Committee on Armed Services of the House of Representatives a report on
    the results of the examination under paragraph (1).
        (b) Review of Department of Defense Policies.--(1) The Secretary of
    Defense shall review Department of Defense policies that affect
    employment and education opportunities for military spouses in the
    Department of Defense in order to further expand those opportunities.
    The review shall include the consideration of providing, to the extent
    authorized by law, separate spouse preferences for employment by
    appropriated and nonappropriated fund operations.
        (2) Not later than March 30, 2002, the Secretary of Defense shall
    submit to the Committee on Armed Services of the Senate and the
    Committee on Armed Services of the House of Representatives a report on
    the results of the review under paragraph (1).
        (c) Spouse Employment Assistance.--Section 1784 of title 10, United
    States Code, is amended by adding at the end the following new
    subsections:
        ``(d) Space-Available Use of Facilities for Spouse Training
    Purposes.--Under regulations prescribed by the Secretary of Defense,
    the Secretary of a military department may make available to a non-
    Department of Defense entity space in non-excess facilities controlled
    by that Secretary for the purpose of the non-Department of Defense
    entity providing employment-related training for military spouses.
        ``(e) Employment by Other Federal Agencies.--The Secretary of
    Defense shall work with the Director of the Office of Personnel
    Management and the heads of other Federal departments and agencies to
    expand and facilitate the use of existing Federal programs and
    resources in support of military spouse employment.
        ``(f) Private-Sector Employment.--The Secretary of Defense--
            ``(1) shall seek to develop partnerships with firms in the
        private sector to enhance employment opportunities for spouses of
        members of the armed forces and to provide for improved job
        portability for such spouses, especially in the case of the spouse
        of a member of the armed forces accompanying the member to a new
        geographical area because of a change of permanent duty station of
        the member; and
            ``(2) shall work with the United States Chamber of Commerce and
        other appropriate private-sector entities to facilitate the
        formation of such partnerships.
        ``(g) Employment With DOD Contractors.--The Secretary of Defense
    shall examine and seek ways for incorporating hiring preferences for
    qualified spouses of members of the armed forces into contracts between
    the Department of Defense and private-sector entities.''.
        SEC. 572. PERSONS AUTHORIZED TO BE INCLUDED IN SURVEYS OF MILITARY
          FAMILIES REGARDING FEDERAL PROGRAMS.
        (a) Extension of Survey Authority.--Subsection (a) of section 1782
    of title 10, United States Code, is amended to read as follows:
        ``(a) Authority.--The Secretary of Defense, in order to determine
    the effectiveness of Federal programs relating to military families and
    the need for new programs, may conduct surveys of--
            ``(1) members of the armed forces who are on active duty, in an
        active status, or retired;
            ``(2) family members of such members; and
            ``(3) survivors of deceased retired members and of members who
        died while on active duty.''.
        (b) Federal Recordkeeping Requirements.--Subsection (c) of such
    section is amended to read as follows:
        ``(c) Federal Recordkeeping Requirements.--With respect to a survey
    authorized under subsection (a) that includes a person referred to in
    that subsection who is not an employee of the United States or is not
    otherwise considered an employee of the United States for the purposes
    of section 3502(3)(A)(i) of title 44, the person shall be considered as
    being an employee of the United States for the purposes of that
    section.''.
        SEC. 573. CLARIFICATION OF TREATMENT OF CLASSIFIED INFORMATION
          CONCERNING PERSONS IN A MISSING STATUS.
        Section 1506(b)(2) of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking the period at the end and inserting ``of all
        missing persons from the conflict or period of war to which the
        classified information pertains.''; and
            (3) by adding at the end the following new subparagraph:
        ``(B) For purposes of subparagraph (A), information shall be
    considered to be made reasonably accessible if placed in a separate and
    distinct file that is available for review by persons specified in
    subparagraph (A) upon the request of any such person either to review
    the separate file or to review the personnel file of the missing person
    concerned.''.
        SEC. 574. TRANSPORTATION TO ANNUAL MEETING OF NEXT-OF-KIN OF
          PERSONS UNACCOUNTED FOR FROM CONFLICTS AFTER WORLD WAR II.
        (a) Authority for Department of Defense To Provide
    Transportation.--Chapter 157 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 2647. Next-of-kin of persons unaccounted for from conflicts
         after World War II: transportation to annual meetings
        ``The Secretary of Defense may provide transportation for the next-
    of-kin of persons who are unaccounted for from the Korean conflict, the
    Cold War, Vietnam War era, or the Persian Gulf War to and from an
    annual meeting in the United States. Such transportation shall be
    provided under such regulations as the Secretary of Defense may
    prescribe.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

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

        SEC. 575. AMENDMENTS TO CHARTER OF DEFENSE TASK FORCE ON DOMESTIC
          VIOLENCE.
        (a) Members Appointed From Private Sector.--Subsection (h)(1) of
    section 591 of the National Defense Authorization Act for Fiscal Year
    2000 (Public Law 106-65; 113 Stat. 639; 10 U.S.C. 1562 note) is
    amended--
            (1) by inserting ``who is a member of the Armed Forces or
        civilian officer or employee of the United States'' after ``Each
        member of the task force'';
            (2) by striking ``, but shall'' and all that follows and
        inserting a period; and
            (3) by adding at the end the following new sentence: ``Other
        members of the task force shall be appointed in accordance with,
        and subject to, section 3161 of title 5, United States Code.''.
        (b) Extension of Termination Date.--Subsection (j) of such section
    is amended by striking ``three years after the date of the enactment of
    this Act'' and inserting ``on April 24, 2003''.

           Subtitle I--Military Justice and Legal Assistance Matters

        SEC. 581. BLOOD ALCOHOL CONTENT LIMIT FOR THE OFFENSE UNDER THE
          UNIFORM CODE OF MILITARY JUSTICE OF DRUNKEN OPERATION OF A
          VEHICLE, AIRCRAFT, OR VESSEL.
        Section 911 of title 10, United States Code (article 111 of the
    Uniform Code of Military Justice), is amended--
            (1) by inserting ``(a)'' before ``Any person'';
            (2) by striking ``0.10 grams'' the first place it appears and
        all that follows through ``chemical analysis'' and inserting ``in
        excess of the applicable limit under subsection (b)''; and
            (3) by adding at the end the following:
        ``(b)(1) For purposes of subsection (a), the applicable limit on
    the alcohol concentration in a person's blood or breath is as follows:
            ``(A) In the case of the operation or control of a vehicle,
        aircraft, or vessel in the United States, such limit is the blood
        alcohol content limit under the law of the State in which the
        conduct occurred, except as may be provided under paragraph (2) for
        conduct on a military installation that is in more than one State
        and subject to the maximum blood alcohol content limit specified in
        paragraph (3).
            ``(B) In the case of the operation or control of a vehicle,
        aircraft, or vessel outside the United States, the applicable blood
        alcohol content limit is the maximum blood alcohol content limit
        specified in paragraph (3) or such lower limit as the Secretary of
        Defense may by regulation prescribe.
        ``(2) In the case of a military installation that is in more than
    one State, if those States have different blood alcohol content limits
    under their respective State laws, the Secretary may select one such
    blood alcohol content limit to apply uniformly on that installation.
        ``(3) For purposes of paragraph (1), the maximum blood alcohol
    content limit with respect to alcohol concentration in a person's blood
    is 0.10 grams of alcohol per 100 milliliters of blood and with respect
    to alcohol concentration in a person's breath is 0.10 grams of alcohol
    per 210 liters of breath, as shown by chemical analysis.
        ``(4) In this subsection:
            ``(A) The term `blood alcohol content limit' means the maximum
        permissible alcohol concentration in a person's blood or breath for
        purposes of operation or control of a vehicle, aircraft, or vessel.
            ``(B) The term `United States' includes the District of
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
        Guam, and American Samoa and the term `State' includes each of
        those jurisdictions.''.
        SEC. 582. REQUIREMENT THAT COURTS-MARTIAL CONSIST OF NOT LESS THAN
          12 MEMBERS IN CAPITAL CASES.
        (a) Classification of General Court-Martial in Capital Cases.--
    Section 816(1)(A) of title 10, United States Code (article 16(1)(A) of
    the Uniform Code of Military Justice) is amended by inserting after
    ``five members'' the following: ``or, in a case in which the accused
    may be sentenced to a penalty of death, the number of members
    determined under section 825a of this title (article 25a)''.
        (b) Number of Members Required.--(1) Chapter 47 of title 10, United
    States Code (the Uniform Code of Military Justice), is amended by
    inserting after section 825 (article 25) the following new section:
    ``Sec. 825a. Art. 25a. Number of members in capital cases
        ``In a case in which the accused may be sentenced to a penalty of
    death, the number of members shall be not less than 12, unless 12
    members are not reasonably available because of physical conditions or
    military exigencies, in which case the convening authority shall
    specify a lesser number of members not less than five, and the court
    may be assembled and the trial held with not less than the number of
    members so specified. In such a case, the convening authority shall
    make a detailed written statement, to be appended to the record,
    stating why a greater number of members were not reasonably
    available.''.
        (2) The table of sections at the beginning of subchapter V of such
    chapter is amended by inserting after the item relating to section 825
    (article 25) the following new item:
    ``825a. 25a. Number of members in capital cases.''.

        (c) Absent and Additional Members.--Section 829(b) of such title
    (article 29 of the Uniform Code of Military Justice) is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by striking ``five members'' both places it appears and
        inserting ``the applicable minimum number of members''; and
            (3) by adding at the end the following new paragraph:
        ``(2) In this section, the term `applicable minimum number of
    members' means five members or, in a case in which the death penalty
    may be adjudged, the number of members determined under section 825a of
    this title (article 25a).''.
        (d) Effective Date.--The amendments made by this section shall
    apply with respect to offenses committed after December 31, 2002.
        SEC. 583. ACCEPTANCE OF VOLUNTARY LEGAL ASSISTANCE FOR THE CIVIL
          AFFAIRS OF MEMBERS AND FORMER MEMBERS OF THE UNIFORMED SERVICES
          AND THEIR DEPENDENTS.
        (a) Authority.--Subsection (a) of section 1588 of title 10, United
    States Code, is amended by adding at the end the following new
    paragraph:
            ``(5) Legal services voluntarily provided as legal assistance
        under section 1044 of this title.''.
        (b) Defense of Legal Malpractice.--Subsection (d)(1) of that
    section is amended by adding at the end the following new subparagraph:
            ``(E) Section 1054 of this title (relating to legal
        malpractice), for a person voluntarily providing legal services
        accepted under subsection (a)(5), as if the person were providing
        the services as an attorney of a legal staff within the Department
        of Defense.''.

                           Subtitle J--Other Matters

        SEC. 591. CONGRESSIONAL REVIEW PERIOD FOR CHANGE IN GROUND COMBAT
          EXCLUSION POLICY.
        Section 542(b) of the National Defense Authorization Act for Fiscal
    Year 1994 (Public Law 103-160; 10 U.S.C. 113 note) is amended--
            (1) in paragraph (1)--
                (A) by striking ``not less than 90 days''; and
                (B) by adding at the end the following new sentence: ``Such
            a change may then be implemented only after the end of a period
            of 30 days of continuous session of Congress (excluding any day
            on which either House of Congress is not in session) following
            the date on which the report is received.''; and
            (2) by adding at the end the following new paragraph:
        ``(5) For purposes of this subsection, the continuity of a session
    of Congress is broken only by an adjournment of the Congress sine
    die.''.
        SEC. 592. PER DIEM ALLOWANCE FOR LENGTHY OR NUMEROUS DEPLOYMENTS.
        (a) Funding Source for Allowance.--Section 436(a) of title 37,
    United States Code, is amended by adding at the end the following new
    sentence: ``The Secretary shall pay the allowance from appropriations
    available for operation and maintenance for the armed force in which
    the member serves.''.
        (b) Expanded Report Regarding Management of Individual Member
    Deployments.--Section 574(d) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-138) is amended in the second sentence by
    striking paragraphs (1) and (2) and inserting the following new
    paragraphs:
            ``(1) a discussion of the experience in tracking and recording
        the deployments of members of the Armed Forces and the payment of
        the per diem allowance for lengthy or numerous deployments in
        accordance with section 436 of title 37, United States Code;
            ``(2) specific comments regarding the effect of section 991 of
        title 10, United States Code, and section 436 of title 37, United
        States Code, on the readiness of the Navy and Marine Corps given
        the deployment intensive mission of these services; and
            ``(3) any recommendations for revision of section 991 of title
        10, United States Code, or section 436 of title 37, United States
        Code, that the Secretary considers appropriate.''.
        SEC. 593. CLARIFICATION OF DISABILITY SEVERANCE PAY COMPUTATION.
        (a) Clarification.--Section 1212(a)(2) of title 10, United States
    Code, is amended by striking ``for promotion'' in subparagraph (C) and
    the first place it appears in subparagraph (D).
        (b) Effective Date.--The amendments made by subsection (a) shall
    apply with respect to members separated under section 1203 or 1206 of
    title 10, United States Code, on or after date of the enactment of this
    Act.
        SEC. 594. TRANSPORTATION OR STORAGE OF PRIVATELY OWNED VEHICLES ON
          CHANGE OF PERMANENT STATION.
        (a) Advance Payment of Storage Costs.--Subsection (b) of section
    2634 of title 10, United States Code, is amended by adding at the end
    the following new paragraph:
        ``(4) Storage costs payable under this subsection may be paid in
    advance.''.
        (b) Shipment on Permanent Change of Station Within CONUS.--
    Subsection (h)(1) of such section is amended by striking ``includes''
    in the second sentence and all that follows and inserting ``includes
    the following:
                ``(A) An authorized change in home port of a vessel.
                ``(B) A transfer or assignment between two permanent
            stations in the continental United States when--
                    ``(i) the member cannot, because of injury or the
                conditions of the order, drive the motor vehicle between
                the permanent duty stations; or
                    ``(ii) the Secretary concerned determines that it is
                advantageous and cost-effective to the United States for
                one motor vehicle of the member to be transported between
                the permanent duty stations.''.
        (c) Effective Date.--The amendments made by this section apply to
    orders to make a change of permanent station that are issued on or
    after the date of the enactment of this Act.
        SEC. 595. REPEAL OF REQUIREMENT FOR FINAL COMPTROLLER GENERAL
          REPORT RELATING TO ARMY END STRENGTH ALLOCATIONS.
        Section 552 of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 319; 10 U.S.C. 115 note) is
    repealed.
        SEC. 596. CONTINUED DEPARTMENT OF DEFENSE ADMINISTRATION OF
          NATIONAL GUARD CHALLENGE PROGRAM AND DEPARTMENT OF DEFENSE
          STARBASE PROGRAM.
        (a) National Guard Challenge Program.--Section 509(b) of title 32,
    United States Code, is amended--
            (1) in paragraph (2)(A), by striking ``in a fiscal year'' and
        inserting ``in fiscal year 2001 or 2002''; and
            (2) by adding at the end the following new paragraph:
        ``(4) The Secretary of Defense shall remain the executive agent to
    carry out the National Guard Challenge Program regardless of the source
    of funds for the program or any transfer of jurisdiction over the
    program within the executive branch. As provided in subsection (a), the
    Secretary may use the National Guard to conduct the program.''.
        (b) STARBASE Program.--Section 2193b(f) of title 10, United States
    Code, is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:
        ``(2) The Secretary of Defense shall remain the executive agent to
    carry out the program regardless of the source of funds for the program
    or any transfer of jurisdiction over the program within the executive
    branch.''.
        (c) Repeal of Contingent Funding for JROTC.--(1) Section 2033 of
    title 10, United States Code, is repealed.
        (2) The table of sections at the beginning of chapter 102 of such
    title is amended by striking the item relating to section 2033.
        (3) The amendments made by this subsection shall take effect on
    October 1, 2002.
        SEC. 597. REPORT ON DEFENSE SCIENCE BOARD RECOMMENDATION ON
          ORIGINAL APPOINTMENTS IN REGULAR GRADES FOR ACADEMY GRADUATES AND
          CERTAIN OTHER NEW OFFICERS.
        The Secretary of Defense shall submit to the Committee on Armed
    Services of the Senate and the Committee on Armed Services of the House
    of Representatives a report on the legislative and policy changes
    required to implement the recommendation of the Defense Science Board
    (made in its report entitled ``Final Report on Human Resources
    Strategy'' and dated February 28, 2000) that all officers be given
    initial regular commissions. The Secretary shall include in that report
    a description of the measures necessary to transition the current
    active-duty officer corps to an all-regular status, if the Board's
    recommendation were adopted, and shall provide the Secretary's position
    with regard to implementing that recommendation. The report shall be
    submitted not later than six months after the date of the enactment of
    this Act.
        SEC. 598. SENSE OF CONGRESS REGARDING THE SELECTION OF OFFICERS FOR
          RECOMMENDATION FOR APPOINTMENT AS COMMANDER, UNITED STATES
          TRANSPORTATION COMMAND.
        (a) Findings.--Congress makes the following findings:
            (1) The Goldwater-Nichols Department of Defense Reorganization
        Act of 1986 (Public Law 99-433) envisioned that officers would be
        selected for recommendation to the President for appointment as the
        commander of a combatant command under chapter 6 of title 10,
        United States Code (as added by that Act), on the basis of being
        the best qualified officer for that position, rather than the best
        qualified officer of the armed force that had historically supplied
        officers to serve in that position.
            (2) In order to provide for greater competition among the Armed
        Forces for selection of officers for assignment as the commanders
        of the combatant commands and assignment to certain other joint
        positions in the grade of general or admiral, Congress provided
        temporary relief from the limitation on the number of officers
        serving on active duty in the grade of general or admiral in
        section 405 of the National Defense Authorization Act for Fiscal
        Year 1995 and thereafter extended that relief until September 30,
        2003, but has also required that the Secretary of Defense be
        furnished the name of at least one officer from each of the Armed
        Forces for consideration for appointment to each such position.
            (3) Most of the positions of commanders of the combatant
        commands have been filled successively by officers of more than one
        of the Armed Forces since the enactment of the Goldwater-Nichols
        Department of Defense Reorganization Act of 1986.
            (4) However, general officers of the Air Force with only
        limited experience in the transportation services have usually
        filled the position of commander of the United States
        Transportation Command.
            (5) The United States Transportation Command could benefit from
        the appointment of future commanders selected from the Army, Navy
        and Marine Corps, in addition to the Air Force.
        (b) Sense of Congress.--It is the sense of Congress that the
    Secretary of Defense, when considering officers for recommendation to
    the President for appointment as commander of the United States
    Transportation Command, should not rely upon officers of one service
    which has traditionally provided officers to fill that position but
    should select for such recommendation the best qualified officer of the
    Army, Navy, Air Force, or Marine Corps.

              TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

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

               Subtitle B--Bonuses and Special and Incentive Pays

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

                Subtitle C--Travel and Transportation Allowances

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

               Subtitle D--Retirement and Survivor Benefit Matters

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

                            Subtitle E--Other Matters

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

                         Subtitle A--Pay and Allowances

        SEC. 601. INCREASE 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  $11,601.9  $11,659.2  $11,901.3  $12,324.00
                                         0          0          0
    O-9.............       0.00  10,147.50  10,293.60  10,504.80   10,873.80
    O-8.............   9,259.50   9,614.70   9,852.00   9,852.00    9,852.00
    O-7.............   8,694.90   8,694.90   8,694.90   8,694.90    8,738.70
    O-6.............   6,627.00   6,948.30   7,131.00   7,316.10    7,675.20
    O-5.............   5,919.00   6,079.80   6,262.80   6,262.80    6,262.80
    O-4.............   5,310.60   5,310.60   5,310.60   5,310.60    5,310.60
    O-3\3\..........   4,549.50   4,549.50   4,549.50   4,549.50    4,549.50
    O-2\3\..........   3,344.10   3,344.10   3,344.10   3,344.10    3,344.10
    O-1\3\..........   2,638.50   2,638.50   2,638.50   2,638.50    2,638.50
    ------------------------------------------------------------------------
    \1\Notwithstanding the basic pay rates specified in this table, the
      actual rate of basic pay for commissioned officers in pay grades O-7
      through O-10 may not exceed the rate of pay for level III of the
      Executive Schedule and the actual rate of basic pay for all other
      officers may not exceed the rate of pay for level V of the Executive
      Schedule.
    \2\Subject to the preceding footnote, while serving as Chairman or Vice
      Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
      Chief of Naval Operations, Chief of Staff of the Air Force, Commandant
      of the Marine Corps, or Commandant of the Coast Guard, the rate of
      basic pay for this grade is $13,598.10, regardless of cumulative years
      of service computed under section 205 of title 37, United States Code.
    \3\This table does not apply to commissioned officers in pay grade O-1,
      O-2, or O-3 who have been credited with over 4 years of active duty
      service as an enlisted member or warrant officer.

      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) Application of Amendments.--The amendments made by subsection
    (a) shall apply with respect to months beginning on or after the date
    of the enactment of this Act.
        SEC. 603. RESERVE COMPONENT COMPENSATION FOR DISTRIBUTED LEARNING
          ACTIVITIES PERFORMED AS INACTIVE-DUTY TRAINING.
        (a) Compensation Authorized.--Section 206(d) of title 37, United
    States Code, is amended--
            (1) by striking ``This section'' and inserting ``(1) Except as
        provided in paragraph (2), this section'';
            (2) by striking ``an armed force'' and inserting ``a uniformed
        service''; and
            (3) by adding at the end the following new paragraph:
        ``(2) A member of the Selected Reserve of the Ready Reserve may be
    paid compensation under this section at a rate and under terms
    determined by the Secretary of Defense, but not to exceed the rate
    otherwise applicable to the member under subsection (a), upon the
    member's successful completion of a course of instruction undertaken by
    the member using electronic-based distributed learning methodologies to
    accomplish training requirements related to unit readiness or
    mobilization, as directed for the member by the Secretary concerned.
    The compensation may be paid regardless of whether the course of
    instruction was under the direct control of the Secretary concerned or
    included the presence of an instructor.''.
        (b) Definition of Inactive-Duty Training.--Section 101(22) of such
    title is amended by inserting after ``but'' the following: ``(except as
    provided in section 206(d)(2) of this title)''.

    SEC. 604. SUBSISTENCE ALLOWANCES.

        (a) Baseline Amount for Calculating Allowance for Enlisted
    Members.--Section 402(b) of title 37, United States Code, is amended by
    adding at the end the following new paragraph:
        ``(4) For purposes of implementing paragraph (2), the monthly rate
    of basic allowance for subsistence that was in effect for an enlisted
    member for calendar year 2001 is deemed to be $233.''.
        (b) Rate for Enlisted Members When Messing Facilities Not
    Available.--(1) Notwithstanding section 402 of title 37, United States
    Code, the Secretary of Defense, and the Secretary of Transportation
    with respect to the Coast Guard when it is not operating as a service
    in the Navy, may prescribe a rate of basic allowance for subsistence to
    apply to enlisted members of the uniformed services when messing
    facilities of the United States are not available. The rate may be
    higher than the rate of basic allowance for subsistence that would
    otherwise be applicable to the members under that section, but may not
    be higher than the highest rate that was in effect for enlisted members
    of the uniformed 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 paragraph (1).
        (c) Continuation of BAS Transitional Authority.--Notwithstanding
    the repeal of subsections (c) through (f) of section 602 of the
    National Defense Authorization Act for Fiscal Year 1998 (Public Law
    105-85; 37 U.S.C. 402 note) by section 603(c) of the Floyd D. Spence
    National Defense Authorization Act for Fiscal Year 2001 (as enacted
    into law by Public Law 106-398; 114 Stat. 1654A-145), the basic
    allowance for subsistence shall be paid in accordance with such
    subsections for October, November, and December of 2001.
        (d) Eligibility for Supplemental Subsistence Allowance.--Section
    402a(b)(1) of title 37, United States Code, is amended by inserting
    ``with dependents'' after ``a member of the armed forces''.
        SEC. 605. ELIGIBILITY FOR TEMPORARY HOUSING ALLOWANCE WHILE IN
          TRAVEL OR LEAVE STATUS BETWEEN PERMANENT DUTY STATIONS.
        (a) Repeal of Pay Grade Limitation.--Section 403(i) of title 37,
    United States Code, is amended by striking ``who is in a pay grade E-4
    (4 or more years of service) or above''.
        (b) Effective Date; Application.--The amendment made by this
    section shall take effect on January 1, 2003, and apply to members of
    the uniformed services in a travel or leave status between permanent
    duty stations on or after that date.

    SEC. 606. UNIFORM ALLOWANCE FOR OFFICERS.

        (a) Relation to Initial Uniform Allowance.--Section 416(b)(1) of
    title 37, United States Code, is amended by striking ``$200'' and
    inserting ``$400''.
        (b) Effective Date.--The amendment made by this section shall take
    effect as of October 1, 2000.
        SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS ELECTING
          UNACCOMPANIED TOUR BY REASON OF HEALTH LIMITATIONS OF DEPENDENTS.
        (a) Entitlement to Allowance.--Section 427(c) of title 37, United
    States Code, is amended--
            (1) by striking ``A member'' in the first sentence and
        inserting ``(1) Except as provided in paragraph (2) or (3), a
        member'';
            (2) in the second sentence, by striking ``The Secretary
        concerned may waive the preceding sentence'' and inserting the
        following:
        ``(3) The Secretary concerned may waive paragraph (1)''; and
            (3) by inserting after the first sentence the following new
        paragraph:
        ``(2) The prohibition in the first sentence of paragraph (1) does
    not apply to a member who elects to serve an unaccompanied tour of duty
    because a dependent cannot accompany the member to or at that permanent
    station for certified medical reasons.''.
        (b) Application of Amendment.--Paragraph (2) of section 427(c) of
    title 37, United States Code, as added by subsection (a)(3), shall
    apply with respect to pay periods beginning on or after January 1,
    2002, for a member of the uniformed services covered by such paragraph
    regardless of the date on which the member first made the election to
    serve an unaccompanied tour of duty.

               Subtitle B--Bonuses and Special and Incentive Pays

        SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY
          AUTHORITIES FOR RESERVE FORCES.
        (a) Special Pay for Health Professionals in Critically Short
    Wartime Specialties.--Section 302g(f) of title 37, United States Code,
    is amended by striking ``December 31, 2001'' and inserting ``December
    31, 2002''.
        (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of such
    title is amended by striking ``December 31, 2001'' and inserting
    ``December 31, 2002''.
        (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of such
    title is amended by striking ``December 31, 2001'' and inserting
    ``December 31, 2002''.
        (d) Special Pay for Enlisted Members Assigned to Certain High
    Priority Units.--Section 308d(c) of such title is amended by striking
    ``December 31, 2001'' and inserting ``December 31, 2002''.
        (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of such
    title is amended by striking ``December 31, 2001'' and inserting
    ``December 31, 2002''.
        (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section
    308h(g) of such title is amended by striking ``December 31, 2001'' and
    inserting ``December 31, 2002''.
        (g) Prior Service Enlistment Bonus.--Section 308i(f) of such title
    is amended by striking ``December 31, 2001'' and inserting ``December
    31, 2002''.
        (h) Repayment of Education Loans for Certain Health Professionals
    Who Serve in the Selected Reserve.--Section 16302(d) of title 10,
    United States Code, is amended by striking ``January 1, 2002'' and
    inserting ``January 1, 2003''.
        SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY
          AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED NURSES, AND
          NURSE ANESTHETISTS.
        (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1)
    of title 10, United States Code, is amended by striking ``December 31,
    2001'' and inserting ``December 31, 2002''.
        (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
    title 37, United States Code, is amended by striking ``December 31,
    2001'' and inserting ``December 31, 2002''.
        (c) Incentive Special Pay for Nurse Anesthetists.--Section
    302e(a)(1) of title 37, United States Code, is amended by striking
    ``December 31, 2001'' and inserting ``December 31, 2002''.
        SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES
          FOR NUCLEAR OFFICERS.
        (a) Special Pay for Nuclear-Qualified Officers Extending Period of
    Active Service.--Section 312(e) of such title is amended by striking
    ``December 31, 2001'' and inserting ``December 31, 2002''.
        (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title
    is amended by striking ``December 31, 2001'' and inserting ``December
    31, 2002''.
        (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such
    title is amended by striking ``December 31, 2001'' and inserting
    ``December 31, 2002''.
        SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY
          AUTHORITIES.
        (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,
    United States Code, is amended by striking ``December 31, 2001'' and
    inserting ``December 31, 2002''.
        (b) Reenlistment Bonus for Active Members.--Section 308(g) of such
    title is amended by striking ``December 31, 2001'' and inserting
    ``December 31, 2002''.
        (c) Enlistment Bonus for Active Members.--Section 309(e) of such
    title is amended by striking ``December 31, 2001'' and inserting
    ``December 31, 2002''.
        (d) Retention Bonus for Members With Critical Military Skills.--
    Section 323(i) of such title is amended by striking ``December 31,
    2001'' and inserting ``December 31, 2002''.
        SEC. 615. HAZARDOUS DUTY PAY FOR MEMBERS OF MARITIME VISIT, BOARD,
          SEARCH, AND SEIZURE TEAMS.
        (a) Additional Type of Duty Eligible for Pay.--Section 301(a) of
    title 37, United States Code, is amended--
            (1) in paragraph (10), by striking ``or'' at the end;
            (2) by redesignating paragraph (11) as paragraph (12); and
            (3) by inserting after paragraph (10) the following new
        paragraph:
            ``(11) involving regular participation as a member of a team
        conducting visit, board, search, and seizure operations aboard
        vessels in support of maritime interdiction operations; or''.
        (b) Monthly Amount.--Subsection (c) of such section is amended--
            (1) in paragraph (1), by striking ``(10)'' and inserting
        ``(11)''; and
            (2) in paragraph (2)(A), by striking ``(11)'' and inserting
        ``(12)''.
        (c) Application of Amendment.--Paragraph (11) of section 301(a) of
    title 37, United States Code, as added by subsection (a)(3), shall
    apply to duty described in such paragraph that is performed on or after
    January 1, 2002.
        SEC. 616. ELIGIBILITY FOR CERTAIN CAREER CONTINUATION BONUSES FOR
          EARLY COMMITMENT TO REMAIN ON ACTIVE DUTY.
        (a) Aviation Officers.--Section 301b(b)(4) of title 37, United
    States Code, is amended by inserting before the period at the end the
    following: ``or is within one year of completing such commitment''.
        (b) Surface Warfare Officers.--Section 319(a)(3) of such title is
    amended by inserting before the period at the end the following: ``or
    is within one year of completing such commitment''.
        SEC. 617. SECRETARIAL DISCRETION IN PRESCRIBING SUBMARINE DUTY
          INCENTIVE PAY RATES.
        (a) Authority of Secretary of the Navy; Maximum Rate.--Subsection
    (b) of section 301c of title 37, United States Code, is amended to read
    as follows:
        ``(b) Monthly Rates.--The Secretary of the Navy shall prescribe the
    monthly rates of submarine duty incentive pay, except that the maximum
    monthly rate may not exceed $1,000.''.
        (b) Conforming and Clerical Amendments.--Such section is further
    amended--
            (1) in subsection (a)--
                (A) by inserting ``Eligibility Requirements.--'' after
            ``(a)''; and
                (B) by striking ``set forth in'' each place it appears and
            inserting ``prescribed pursuant to'';
            (2) in subsection (c), by inserting ``Exceptions.--'' after
        ``(c)''; and
            (3) in subsection (d)--
                (A) by inserting ``Applicability to Certain Naval Reserve
            Duty.--'' after ``(d)''; and
                (B) by striking ``authorized by'' and inserting
            ``prescribed pursuant to''.
        (c) Transition.--The tables set forth in subsection (b) of section
    301c of title 37, United States Code, as in effect on the day before
    the date of the enactment of this Act, shall continue to apply until
    the later of the following:
            (1) January 1, 2002.
            (2) The date on which the Secretary of the Navy prescribes new
        submarine duty incentive pay rates as authorized by the amendment
        made by subsection (a).
        SEC. 618. CONFORMING ACCESSION BONUS FOR DENTAL OFFICERS AUTHORITY
          WITH AUTHORITIES FOR OTHER SPECIAL PAY AND BONUSES.
        Section 302h(a)(1) of title 37, United States Code, is amended by
    striking ``the date of the enactment of this section, and ending on
    September 30, 2002'' and inserting ``September 23, 1996, and ending on
    December 31, 2002''.
        SEC. 619. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR INDIVIDUAL
          READY RESERVE BONUS FOR REENLISTMENT, ENLISTMENT, OR EXTENSION OF
          ENLISTMENT.
        (a) Eligibility Based on Qualifications in Critically Short Wartime
    Skills or Specialties.--Subsection (a) of section 308h of title 37,
    United States Code, is amended to read as follows:
        ``(a) Authority and Eligibility Requirements.--(1) The Secretary
    concerned may pay a bonus as provided in subsection (b) to an eligible
    person who reenlists, enlists, or voluntarily extends an enlistment in
    a reserve component of an armed force for assignment to an element
    (other than the Selected Reserve) of the Ready Reserve of that armed
    force if the reenlistment, enlistment, or extension is for a period of
    three years, or for a period of six years, beyond any other period the
    person is obligated to serve.
        ``(2) A person is eligible for a bonus under this section if the
    person--
            ``(A) is or has been a member of an armed force;
            ``(B) is qualified in a skill or specialty designated by the
        Secretary concerned as a critically short wartime skill or
        critically short wartime specialty; and
            ``(C) has not failed to complete satisfactorily any original
        term of enlistment in the armed forces.
        ``(3) For the purposes of this section, the Secretary concerned may
    designate a skill or specialty as a critically short wartime skill or
    critically short wartime specialty for an armed force under the
    jurisdiction of the Secretary if the Secretary determines that--
            ``(A) the skill or specialty is critical to meet wartime
        requirements of the armed force; and
            ``(B) there is a critical shortage of personnel in that armed
        force who are qualified in that skill or specialty.''.
        (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (b), by inserting ``Bonus Amounts; Payment.--
        '' after ``(b)'';
            (2) in subsection (c), by inserting ``Repayment of Bonus.--''
        after ``(c)'';
            (3) in subsection (d), by inserting ``Treatment of
        Reimbursement Obligation.--'' after ``(d)'';
            (4) in subsection (e), by inserting ``Effect of Bankruptcy.--''
        after ``(e)'';
            (5) in subsection (f), by inserting ``Regulations.--'' after
        ``(f)''; and
            (6) in subsection (g), by inserting ``Termination of
        Authority.--'' after ``(g)''.
        (c) Regulations.--Not later than 180 days after the date of the
    enactment of this Act, the Secretaries of the military departments
    shall prescribe such regulations as may be necessary for administering
    subsection (a) of section 308h of title 37, United States Code, as
    amended by this section.
        (d) Application of Amendment.--Subsection (a) of section 308h of
    title 37, United States Code, as amended by this section, shall apply
    with respect to reserve component reenlistments, enlistments, and
    extensions of enlistments that are executed on or after the first day
    of the first month that begins more than 180 days after the date of the
    enactment of this Act. Subsection (a) of such section 308h, as in
    effect on the day before the date of the enactment of this Act, shall
    continue to apply with respect to reserve component reenlistments,
    enlistments, and extensions of enlistments that are executed before the
    first day of that first month.
        SEC. 620. INSTALLMENT PAYMENT AUTHORITY FOR 15-YEAR CAREER STATUS
          BONUS.
        (a) Member Election.--Section 322(d) of title 37, United States
    Code, is amended--
            (1) in paragraph (1), by striking ``paid in a single lump sum
        of'' and inserting ``equal to'';
            (2) by redesignating paragraph (2) as paragraph (4), and in
        such paragraph, by striking ``The bonus'' and inserting ``The lump
        sum payment of the bonus, and the first installment payment in the
        case of members who elect to receive the bonus in installments,'';
        and
            (3) by inserting after paragraph (1) the following new
        paragraphs:
        ``(2) A member electing to receive the bonus under this section
    shall elect one of the following payment options:
            ``(A) A single lump sum of $30,000.
            ``(B) Two installments of $15,000 each.
            ``(C) Three installments of $10,000 each.
            ``(D) Four installments of $7,500 each.
            ``(E) Five installments of $6,000 each.
        ``(3) If a member elects installment payments under paragraph (2),
    the second installment (and subsequent installments, as applicable)
    shall be paid on the earlier of the following dates:
            ``(A) The annual anniversary date of the payment of the first
        installment.
            ``(B) January 15 of each succeeding calendar year.''.
        (b) Application to Existing Agreements.--The Secretary concerned
    (as defined in section 101(5) of title 37, United States Code) shall
    extend to each member of the uniformed services who has executed the
    written agreement required by subsection (a)(2) of section 322 of such
    title before the date of the enactment of this Act, but who has not
    received the lump sum payment by that date, an opportunity to make the
    election authorized by subsection (d) of such section, as amended by
    this section.
        SEC. 621. ACCESSION BONUS FOR NEW OFFICERS IN CRITICAL SKILLS.
        (a) Bonus Authorized.--Chapter 5 of title 37, United States Code,
    is amended by adding at the end the following new section:
    ``Sec. 324. Special pay: accession bonus for new officers in critical
        skills
        ``(a) Accession Bonus Authorized.--Under regulations prescribed by
    the Secretary concerned, a person who executes a written agreement to
    accept a commission as an officer of the armed forces and serve on
    active duty in a designated critical officer skill for the period
    specified in the agreement may, upon acceptance of the agreement by the
    Secretary concerned, be paid an accession bonus in an amount determined
    by the Secretary concerned.
        ``(b) Designation of Critical Officer Skills.--(1) The Secretary
    concerned shall designate the critical officer skills for the purposes
    of this section. A skill may be designated as a critical officer skill
    for an armed force under this subsection if--
            ``(1) in order to meet requirements of the armed force, it is
        critical for the armed force to have a sufficient number of
        officers who are qualified in that skill; and
            ``(2) in order to mitigate a current or projected significant
        shortage of personnel in the armed force who are qualified in that
        skill, it is critical to access into that armed force in sufficient
        numbers persons who are qualified in that skill or are to be
        trained in that skill.
        ``(c) Limitation on Amount of Bonus.--The amount of an accession
    bonus under subsection (a) may not exceed $60,000.
        ``(d) Payment Method.--Upon acceptance of a written agreement under
    subsection (a) by the Secretary concerned, the total amount of the
    accession bonus payable under the agreement becomes fixed. The
    agreement shall specify whether the accession bonus will be paid by the
    Secretary in a lump sum or installments.
        ``(e) Relation to Other Accession Bonus Authority.--An individual
    may not receive an accession bonus under this section and section 302d,
    302h, 302j, or 312b of this title for the same period of service.
        ``(f) Repayment for Failure To Commence or Complete Obligated
    Service.--(1) An individual who, after having received all or part of
    the accession bonus under an agreement referred to in subsection (a),
    fails to accept a commission as an officer or to commence or complete
    the total period of active duty service specified in the agreement
    shall repay to the United States the amount that bears the same ratio
    to the total amount of the bonus authorized for such person as the
    unserved part of the period of agreed active duty service bears to the
    total period of the agreed active duty service. However, the amount
    required to be repaid by the individual may not exceed the amount of
    the accession bonus that was paid to the individual.
        ``(2) Subject to paragraph (3), an obligation to repay the United
    States imposed under paragraph (1) is for all purposes a debt owed to
    the United States. A discharge in bankruptcy under title 11 that is
    entered less than five years after the termination of an agreement
    entered into under subsection (a) does not discharge the individual
    signing the agreement from a debt arising under such agreement or under
    paragraph (1).
        ``(3) The Secretary concerned may waive, in whole or in part, the
    repayment requirement under paragraph (1) on a case-by-case basis if
    the Secretary concerned determines that repayment would be against
    equity and good conscience or would be contrary to the best interests
    of the United States.
        ``(g) Termination of Authority.--No agreement under this section
    may be entered into after December 31, 2002.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``324. Special pay: accession bonus for new officers in critical
    skills.''.

        SEC. 622. EDUCATION SAVINGS PLAN TO ENCOURAGE REENLISTMENTS AND
          EXTENSIONS OF SERVICE IN CRITICAL SPECIALTIES.
        (a) Establishment of Savings Plan.--(1) Chapter 5 of title 37,
    United States Code, is amended by inserting after section 324, as added
    by section 621, the following new section:
    ``Sec. 325. Incentive bonus: savings plan for education expenses and
        other contingencies
        ``(a) Benefit and Eligibility.--The Secretary concerned may
    purchase United States savings bonds under this section for a member of
    the armed forces who is eligible as follows:
            ``(1) A member who, before completing three years of service on
        active duty, enters into a commitment to perform qualifying
        service.
            ``(2) A member who, after completing three years of service on
        active duty, but not more than nine years of service on active
        duty, enters into a commitment to perform qualifying service.
            ``(3) A member who, after completing nine years of service on
        active duty, enters into a commitment to perform qualifying
        service.
        ``(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
    enlistment or other agreement from a debt arising under the enlistment
    or agreement, respectively, or this subsection.
        ``(h) Relationship to Other Special Pays.--The benefit authorized
    under this section is in addition to any other bonus or incentive or
    special pay that is paid or payable to a member under any other
    provision of this chapter for any portion of the same qualifying
    service.
        ``(i) Regulations.--This section shall be administered under
    regulations prescribed by the Secretary of Defense for the armed forces
    under his jurisdiction and by the Secretary of Transportation for the
    Coast Guard when the Coast Guard is not operating as a service in the
    Navy.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 324, as added
    by section 621(b), the following new item:

    ``325. Incentive bonus: savings plan for education expenses and other
    contingencies.''.

        (b) Application of Amendment.--Section 325 of title 37, United
    States Code, as added by subsection (a), shall apply with respect to
    reenlistments and other agreements for qualifying service, as described
    in that section, that are entered into on or after October 1, 2001.
        (c) Funding For Fiscal Year 2002.--Of the amount authorized to be
    appropriated to the Department of Defense for military personnel for
    fiscal year 2002 by section 421, $20,000,000 may be available in that
    fiscal year for the purchase of United States savings bonds under
    section 325 of title 37, United States Code, as added by subsection
    (a).
        SEC. 623. CONTINUATION OF PAYMENT OF SPECIAL AND INCENTIVE PAY AT
          UNREDUCED RATES DURING STOP LOSS PERIODS.
        (a) Authority to Continue.--(1) Chapter 17 of title 37, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 909. Special and incentive pay: payment at unreduced rates
        during suspension of personnel laws
        ``(a) Authority To Continue Payment at Unreduced Rates.--To ensure
    fairness and recognize the contributions of members of the armed forces
    to military essential missions, the Secretary of the military
    department concerned may authorize members who are involuntarily
    retained on active duty under section 123 or 12305 of title 10 or any
    other provision of law and who, immediately before retention on active
    duty, were entitled or eligible for special pay or incentive pay under
    chapter 5 of this title, to receive that special pay or incentive pay
    for qualifying service performed during the retention period, without a
    reduction in the payment rate below the rate the members received
    immediately before retention on active duty, notwithstanding any
    requirement otherwise applicable to that special pay or incentive pay
    that would reduce the payment rate by reason of the years of service of
    the members.
        ``(b) Suspension During Time of War.--Subsection (a) does not apply
    with respect to a special pay or incentive pay under chapter 5 of this
    title, whenever the authority to provide that special pay or incentive
    pay is suspended by the President or the Secretary of Defense during a
    time of war.
        ``(c) Qualifying Service Defined.--In this section, the term
    `qualifying service' means service for which a particular special pay
    or incentive pay is payable under the authority of a provision of
    chapter 5 of this title.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``909. Special and incentive pay: payment at unreduced rates during
    suspension of personnel laws.''.

        (b) Application of Amendments.--Section 909 of title 37, United
    States Code, as added by subsection (a)(1), shall apply with respect to
    pay periods beginning after September 11, 2001.
        SEC. 624. RETROACTIVE AUTHORIZATION FOR IMMINENT DANGER PAY FOR
          SERVICE IN CONNECTION WITH OPERATION ENDURING FREEDOM.
        (a) Retroactive Authorization.--The Secretary of Defense may
    provide for the payment of imminent danger pay under section 310 of
    title 37, United States Code, to members of the Armed Forces assigned
    to duty in the areas specified in subsection (b) in connection with the
    contingency operation known as Operation Enduring Freedom with respect
    to periods of duty served in those areas during the period beginning on
    September 19, 2001, and ending October 31, 2001.
        (b) Specified Areas.--The areas referred to in subsection (a) are
    the following:
            (1) The land areas of Kyrgyzstan, Oman, the United Arab
        Emirates, and Uzbekistan.
            (2) The Red Sea, the Gulf of Aden, the Gulf of Oman, and the
        Arabian Sea (that portion north of 10+ north latitude and west of
        68+ east longitude).

                Subtitle C--Travel and Transportation Allowances

        SEC. 631. MINIMUM PER DIEM RATE FOR TRAVEL AND TRANSPORTATION
          ALLOWANCE FOR TRAVEL PERFORMED UPON A CHANGE OF PERMANENT STATION
          AND CERTAIN OTHER TRAVEL.
        Section 404(d) of title 37, United States Code, is amended by
    adding at the end the following new paragraph:
        ``(5) Effective January 1, 2003, the per diem rates established
    under paragraph (2)(A) for travel performed in connection with a change
    of permanent station or for travel described in paragraph (2) or (3) of
    subsection (a) shall be equal to the standard per diem rates
    established in the Federal travel regulation for travel within the
    continental United States of civilian employees and their dependents,
    unless the Secretaries concerned determine that a higher rate for
    members is more appropriate.''.
        SEC. 632. ELIGIBILITY FOR PAYMENT OF SUBSISTENCE EXPENSES
          ASSOCIATED WITH OCCUPANCY OF TEMPORARY LODGING INCIDENT TO
          REPORTING TO FIRST PERMANENT DUTY STATION.
        (a) Inclusion of Officers.--Subsection (a)(2)(C) of section 404a of
    title 37, United States Code, is amended by striking ``an enlisted
    member'' and inserting ``a member''.
        (b) Increase in Maximum Daily Authorized Rate.--Subsection (e) of
    such section is amended by striking ``$110'' and inserting ``$180''.
        (c) Effective Date; Application.--The amendments made by this
    section shall take effect on January 1, 2002, and apply with respect to
    an order issued on or after that date to a member of the uniformed
    services to report to the member's first permanent duty station.
        SEC. 633. REIMBURSEMENT OF MEMBERS FOR MANDATORY PET QUARANTINE
          FEES FOR HOUSEHOLD PETS.
        (a) Increase in Maximum Reimbursement Amount.--Section 406(a)(1) of
    title 37, United States Code, is amended in the last sentence by
    striking ``$275'' and inserting ``$550''.
        (b) Application of Amendment.--The amendment made by subsection (a)
    shall apply with respect to the reimbursement of members of the
    uniformed services for mandatory pet quarantine fees incurred in
    connection with the mandatory quarantine of a household pet underway on
    the date of the enactment of this Act or beginning on or after that
    date.
        SEC. 634. INCREASED WEIGHT ALLOWANCE FOR TRANSPORTATION OF BAGGAGE
          AND HOUSEHOLD EFFECTS FOR JUNIOR ENLISTED MEMBERS.
        (a) Increased Weight Allowances.--The table in section 406(b)(1)(C)
    of title 37, United States Code, is amended--
            (1) by striking the two footnotes; and
            (2) by striking the items relating to pay grade E-1 through E-4
        and inserting the following new items:

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

        (b) Effective Date; Application.--The amendments made by this
    section shall take effect on January 1, 2003, and apply with respect to
    an order in connection with a change of temporary or permanent station
    issued on or after that date.
        SEC. 635. ELIGIBILITY OF ADDITIONAL MEMBERS FOR DISLOCATION
          ALLOWANCE.
        (a) Eligibility for Primary Dislocation Allowance.--Subsection (a)
    of section 407 of title 37, United States Code, is amended--
            (1) in paragraph (2), by adding at the end the following new
        subparagraphs:
            ``(F) A member whose dependents actually move from the member's
        place of residence in connection with the performance of orders for
        the member to report to the member's first permanent duty station
        if the move--
                ``(i) is to the permanent duty station or a designated
            location; and
                ``(ii) is an authorized move.
            ``(G) Each of two members married to each other who--
                ``(i) is without dependents;
                ``(ii) actually moves with the member's spouse to a new
            permanent duty station; and
                ``(iii) is assigned to family quarters of the United States
            at or in the vicinity of the new duty station.''; and
            (2) by adding at the end the following new paragraph:
        ``(4) If a primary dislocation allowance is payable to two members
    described in paragraph (2)(G) who are married to each other, the amount
    of the allowance payable to such members shall be the amount otherwise
    payable under this subsection to the member in the higher pay grade, or
    to either member if both members are in the same pay grade. The
    allowance shall be paid jointly to both members.''.
        (b) Conforming Amendment.--Subsection (e) of such section is
    amended by inserting ``(except as provided in subsection (a)(2)(F))''
    after ``first duty station''.
        (c) Application of Amendments.--The amendments made by this section
    shall apply with respect to an order issued on or after January 1,
    2002, in connection with a change of permanent station or for a member
    of the uniformed services to report to the member's first permanent
    duty station.
        SEC. 636. PARTIAL DISLOCATION ALLOWANCE AUTHORIZED FOR HOUSING
          MOVES ORDERED FOR GOVERNMENT CONVENIENCE.
        (a) Authorization of Partial Dislocation Allowance.--Section 407 of
    title 37, United States Code, is amended--
            (1) by redesignating subsections (f) and (g) as subsections (g)
        and (h), respectively; and
            (2) by inserting after subsection (e) the following new
        subsection:
        ``(f) Partial Dislocation Allowance.--(1) Under regulations
    prescribed by the Secretary concerned, a member ordered to occupy or
    vacate family housing provided by the United States to permit the
    privatization or renovation of housing or for any other reason (other
    than pursuant to a permanent change of station) may be paid a partial
    dislocation allowance of $500.
        ``(2) Effective on the same date that the monthly rates of basic
    pay for all members are increased under section 1009 of this title or
    another provision of law, the Secretary of Defense shall adjust the
    rate of the partial dislocation allowance authorized by this subsection
    by the percentage equal to the average percentage increase in the rates
    of basic pay.
        ``(3) Subsections (c) and (d) do not apply to the partial
    dislocation allowance authorized by this subsection.''.
        (b) Application of Amendment.--Subsection (f) of title 37, United
    States Code, as added by subsection (a)(2), shall apply with respect to
    an order to move for a member of a uniformed service that is issued on
    or after the date of the enactment of this Act.
        SEC. 637. ALLOWANCES FOR TRAVEL PERFORMED IN CONNECTION WITH
          MEMBERS TAKING AUTHORIZED LEAVE BETWEEN CONSECUTIVE OVERSEAS
          TOURS.
        Section 411b(a)(1) of title 37, United States Code, is amended by
    striking ``, or his designee, or to a place no farther distant than his
    home of record''.
        SEC. 638. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY MEMBERS
          TO ATTEND BURIAL OF A DECEASED MEMBER OF THE UNIFORMED SERVICES.
        (a) Consolidation of Authorities.--Section 411f of title 37, United
    States Code, is amended to read as follows:
    ``Sec. 411f. Travel and transportation allowances: transportation for
         survivors of deceased member to attend the member's burial
         ceremonies
        ``(a) Allowances Authorized.--(1) The Secretary concerned may
    provide round trip travel and transportation allowances to eligible
    relatives of a member of the uniformed services who dies while on
    active duty or inactive duty in order that the eligible relatives may
    attend the burial ceremony of the deceased member.
        ``(2) The Secretary concerned may also provide round trip travel
    and transportation allowances to an attendant who accompanies an
    eligible relative provided travel and transportation allowances under
    paragraph (1) for travel to the burial ceremony if the Secretary
    concerned determines that--
            ``(A) the accompanied eligible relative is unable to travel
        unattended because of age, physical condition, or other justifiable
        reason; and
            ``(B) there is no other eligible relative of the deceased
        member traveling to the burial ceremony who is eligible for travel
        and transportation allowances under paragraph (1) and is qualified
        to serve as the attendant.
        ``(b) Limitations.--(1) Except as provided in paragraphs (2) and
    (3), allowances under subsection (a) are limited to travel and
    transportation to a location in the United States, Puerto Rico, and the
    possessions of the United States and may not exceed the rates for two
    days and the time necessary for such travel.
        ``(2) If a deceased member was ordered or called to active duty
    from a place outside the United States, Puerto Rico, or the possessions
    of the United States, the allowances authorized under subsection (a)
    may be provided to and from such place and may not exceed the rates for
    two days and the time necessary for such travel.
        ``(3) If a deceased member is interred in a cemetery maintained by
    the American Battle Monuments Commission, the travel and transportation
    allowances authorized under subsection (a) may be provided to and from
    such cemetery and may not exceed the rates for two days and the time
    necessary for such travel.
        ``(c) Eligible Relatives.--(1) The following members of the family
    of a deceased member of the uniformed services are eligible for the
    travel and transportation allowances under subsection (a)(1):
            ``(A) The surviving spouse (including a remarried surviving
        spouse) of the deceased member.
            ``(B) The unmarried child or children of the deceased member
        referred to in section 401(a)(2) of this title.
            ``(C) If no person described in subparagraph (A) or (B) is
        provided travel and transportation allowances under subsection
        (a)(1), the parent or parents of the deceased member (as defined in
        section 401(b)(2) of this title).
        ``(2) If no person described in paragraph (1) is provided travel
    and transportation allowances under subsection (a)(1), the travel and
    transportation allowances may be provided to--
            ``(A) the person who directs the disposition of the remains of
        the deceased member under section 1482(c) of title 10, or, in the
        case of a deceased member whose remains are commingled and buried
        in a common grave in a national cemetery, the person who would have
        been designated under such section to direct the disposition of the
        remains if individual identification had been made; and
            ``(B) up to two additional persons closely related to the
        deceased member who are selected by the person referred to in
        subparagraph (A).
        ``(d) Expanded Allowances Related to Recovery of Remains From
    Vietnam Conflict.--(1) The Secretary of Defense may provide round trip
    travel and transportation allowances for the family of a deceased
    member of the armed forces who died while classified as a prisoner of
    war or as missing in action during the Vietnam conflict and whose
    remains are returned to the United States in order that the family
    members may attend the burial ceremony of the deceased member.
        ``(2) The allowances under paragraph (1) shall include round trip
    transportation from the places of residence of such family members to
    the burial ceremony and such living expenses and other allowances as
    the Secretary of Defense considers appropriate.
        ``(3) For purposes of paragraph (1), eligible family members of the
    deceased member of the armed forces include the following:
            ``(A) The surviving spouse (including a remarried surviving
        spouse) of the deceased member.
            ``(B) The child or children, including children described in
        section 401(b)(1) of this title, of the deceased member.
            ``(C) The parent or parents of the deceased member (as defined
        in section 401(b)(2) of this title).
            ``(D) If no person described in subparagraph (A), (B), or (C)
        is provided travel and transportation allowances under paragraph
        (1), any brothers, sisters, halfbrothers, halfsisters,
        stepbrothers, and stepsisters of the deceased member.
        ``(e) Burial Ceremony Defined.--In this section, the term `burial
    ceremony' includes the following:
            ``(1) An interment of casketed or cremated remains.
            ``(2) A placement of cremated remains in a columbarium.
            ``(3) A memorial service for which reimbursement is authorized
        under section 1482(d)(2) of title 10.
            ``(4) A burial of commingled remains that cannot be
        individually identified in a common grave in a national cemetery.
        ``(f) Regulations.--The Secretaries concerned shall prescribe
    uniform regulations to carry out this section.''.
        (b) Repeal of Superseded Laws; Conforming Amendment.--(1) Section
    1482 of title 10, United States Code, is amended by striking subsection
    (d) and redesignating subsections (e), (f), and (g) as subsections (d),
    (e), and (f), respectively.
        (2) Section 1481(a)(9) of such title is amended by striking
    ``section 1482(g)'' and inserting ``section 1482(f)''.
        (3) The Funeral Transportation and Living Expense Benefits Act of
    1974 (Public Law 93-257; 37 U.S.C. 406 note) is repealed.
        (c) Application of Amendment.--Section 411f of title 37, United
    States Code, as amended by subsection (a), shall apply with respect to
    burial ceremonies of deceased members of the uniformed services that
    occur on or after the date of the enactment of this Act.
        SEC. 639. FUNDED STUDENT TRAVEL FOR FOREIGN STUDY UNDER AN
          EDUCATION PROGRAM APPROVED BY A UNITED STATES SCHOOL.
        (a) Availability of Allowance.--Subsection (a) of section 430 of
    title 37, United States Code, is amended to read as follows:
        ``(a) Availability of Allowance.--(1) Under regulations prescribed
    by the Secretary of Defense, a member of a uniformed service may be
    paid the allowance set forth in subsection (b) if the member--
            ``(A) is assigned to a permanent duty station outside the
        continental United States;
            ``(B) is accompanied by the member's dependents at or near that
        duty station (unless the member's only dependents are in the
        category of dependent described in paragraph (2)); and
            ``(C) has an eligible dependent child described in paragraph
        (2).
        ``(2) An eligible dependent child of a member referred to in
    paragraph (1)(C) is a child who--
            ``(A) is under 23 years of age and unmarried;
            ``(B) is enrolled in a school in the continental United States
        for the purpose of obtaining a formal education; and
            ``(C) is attending that school or is participating in a foreign
        study program approved by that school and, pursuant to that foreign
        study program, is attending a school outside the United States for
        a period of not more than one year.''.
        (b) Type of Allowance Authorized.--Subsection (b) of such section
    is amended--
            (1) by inserting ``Allowance Authorized.--'' after ``(b)'';
            (2) in the first sentence of paragraph (1), by striking ``each
        unmarried dependent child,'' and all that follows through ``the
        school being attended'' and inserting ``each eligible dependent
        child of the member of one annual trip between the school being
        attended by that child''; and
            (3) by adding at the end the following new paragraph:
        ``(3) The transportation allowance paid under paragraph (1) for an
    annual trip of an eligible dependent child who is attending a school
    outside the United States may not exceed the transportation allowance
    that would be paid under this section for the annual trip of that child
    between the child's school in the continental United States and the
    member's duty station outside the continental United States and
    return.''.
        (c) Clerical and Conforming Amendments.--Such section is further
    amended--
            (1) in subsection (c), by inserting ``Use of Airlift and
        Sealift Command.--'' after ``(c)'';
            (2) in subsection (d)--
                (A) by inserting ``Attendance at School in Alaska or
            Hawaii.--'' after ``(d)''; and
                (B) by striking ``subsection (a)(3)'' and inserting
            ``subsection (a)(2)'';
            (3) in subsection (e), by inserting ``Exception.--'' after
        ``(e)''; and
            (4) in subsection (f), by inserting ``Definitions.--'' after
        ``(f)''.
        (d) Application of Amendments.--The amendments made by this section
    shall apply with respect to travel described in subsection (b) of
    section 430 of title 37, United States Code, as amended by this
    section, that commences on or after the date of the enactment of this
    Act.

              Subtitle D--Retirement and Survivor Benefit Matters

        SEC. 641. CONTINGENT AUTHORITY FOR CONCURRENT RECEIPT OF MILITARY
          RETIRED PAY AND VETERANS' DISABILITY COMPENSATION AND ENHANCEMENT
          OF SPECIAL COMPENSATION AUTHORITY.
        (a) Restoration of Retired Pay Benefits.--Chapter 71 of title 10,
    United States Code, is amended by adding at the end the following new
    section:
    ``Sec. 1414. Members eligible for retired pay who have service-
         connected disabilities: payment of retired pay and veterans'
         disability compensation; contingent authority
        ``(a) Payment of Both Retired Pay and Compensation.--Subject to
    subsection (b), a member or former member of the uniformed services who
    is entitled to retired pay (other than as specified in subsection (c))
    and who is also entitled to veterans' disability compensation is
    entitled to be paid both without regard to sections 5304 and 5305 of
    title 38, subject to the enactment of qualifying offsetting legislation
    as specified in subsection (f).
        ``(b) Special Rule for Chapter 61 Career Retirees.--The retired pay
    of a member retired under chapter 61 of this title with 20 years or
    more of service otherwise creditable under section 1405 of this title
    at the time of the member's retirement is subject to reduction under
    sections 5304 and 5305 of title 38, but only to the extent that the
    amount of the member's retired pay under chapter 61 of this title
    exceeds the amount of retired pay to which the member would have been
    entitled under any other provision of law based upon the member's
    service in the uniformed services if the member had not been retired
    under chapter 61 of this title.
        ``(c) Exception.--Subsection (a) does not apply to a member retired
    under chapter 61 of this title with less than 20 years of service
    otherwise creditable under section 1405 of this title at the time of
    the member's retirement.
        ``(d) Definitions.--In this section:
            ``(1) The term `retired pay' includes retainer pay, emergency
        officers' retirement pay, and naval pension.
            ``(2) The term `veterans' disability compensation' has the
        meaning given the term `compensation' in section 101(12) of title
        38.
        ``(e) Effective Date.--If qualifying offsetting legislation (as
    defined in subsection (f)) is enacted, the provisions of subsection (a)
    shall take effect on--
            ``(1) the first day of the first month beginning after the date
        of the enactment of such qualifying offsetting legislation; or
            ``(2) the first day of the fiscal year that begins in the
        calendar year in which such legislation is enacted, if that date is
        later than the date specified in paragraph (1).
        ``(f) Effectiveness Contingent on Enactment of Offsetting
    Legislation.--(1) The provisions of subsection (a) shall be effective
    only if--
            ``(A) the President, in the budget for any fiscal year,
        proposes the enactment of legislation that, if enacted, would be
        qualifying offsetting legislation; and
            ``(B) after that budget is submitted to Congress, there is
        enacted qualifying offsetting legislation.
        ``(2) In this subsection:
            ``(A) The term `qualifying offsetting legislation' means
        legislation (other than an appropriations Act) that includes
        provisions that--
                ``(i) offset fully the increased outlays to be made by
            reason of the provisions of subsection (a) for each of the
            first 10 fiscal years beginning after the date of the enactment
            of such legislation;
                ``(ii) expressly state that they are enacted for the
            purpose of the offset described in clause (i); and
                ``(iii) are included in full on the PayGo scorecard.
            ``(B) The term `PayGo scorecard' means the estimates that are
        made by the Director of the Congressional Budget Office and the
        Director of the Office of Management and Budget under section
        252(d) of the Balanced Budget and Emergency Deficit Control Act of
        1985 (2 U.S.C. 902(d)) with respect to the ten fiscal years
        following the date of the enactment of the legislation that is
        qualifying offsetting legislation for purposes of this section.''.
        (b) Conforming Termination of Special Compensation Program.--
    Section 1413(a) of such title is amended by adding at the end the
    following new sentence: ``If the provisions of subsection (a) of
    section 1414 of this title become effective in accordance with
    subsection (f) of that section, payments under this section shall be
    terminated effective as of the month beginning on the effective date
    specified in subsection (e) of that section.''.
        (c) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``1414. Members eligible for retired pay who have service-connected
    disabilities: payment of retired pay and veterans' disability
    compensation; contingent authority.''.

        (d) Prohibition of Retroactive Benefits.--If the provisions of
    subsection (a) of section 1414 of title 10, United States Code, becomes
    effective in accordance with subsection (f) of that section, no benefit
    may be paid to any person by reason of those provisions for any period
    before the effective date specified in subsection (e) of that section.
        (e) Enhancement of Special Compensation Authority.--(1) Subsection
    (b) of section 1413 of title 10, United States Code, is amended by
    striking paragraphs (1), (2), and (3) and inserting the following:
            ``(1) For payments for months beginning with February 2002 and
        ending with December 2002, the following:
                ``(A) For any month for which the retiree has a qualifying
            service-connected disability rated as total, $300.
                ``(B) For any month for which the retiree has a qualifying
            service-connected disability rated as 90 percent, $200.
                ``(C) For any month for which the retiree has a qualifying
            service-connected disability rated as 80 percent or 70 percent,
            $100.
                ``(D) For any month for which the retiree has a qualifying
            service-connected disability rated as 60 percent, $50.
            ``(2) For payments for months beginning with January 2003 and
        ending with September 2004, the following:
                ``(A) For any month for which the retiree has a qualifying
            service-connected disability rated as total, $325.
                ``(B) For any month for which the retiree has a qualifying
            service-connected disability rated as 90 percent, $225.
                ``(C) For any month for which the retiree has a qualifying
            service-connected disability rated as 80 percent, $125.
                ``(D) For any month for which the retiree has a qualifying
            service-connected disability rated as 70 percent, $100.
                ``(E) For any month for which the retiree has a qualifying
            service-connected disability rated as 60 percent, $50.
            ``(3) For payments for months after September 2004, the
        following:
                ``(A) For any month for which the retiree has a qualifying
            service-connected disability rated as total, $350.
                ``(B) For any month for which the retiree has a qualifying
            service-connected disability rated as 90 percent, $250.
                ``(C) For any month for which the retiree has a qualifying
            service-connected disability rated as 80 percent, $150.
                ``(D) For any month for which the retiree has a qualifying
            service-connected disability rated as 70 percent, $125.
                ``(E) For any month for which the retiree has a qualifying
            service-connected disability rated as 60 percent, $50.''.
        (2) Subsection (d)(2) of such section is amended by striking ``70
    percent'' and inserting ``60 percent''.
        (3) The amendments made by this subsection shall take effect on
    February 1, 2002.
        SEC. 642. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING SPOUSES OF
          MEMBERS WHO DIE WHILE ON ACTIVE DUTY AND NOT ELIGIBLE FOR
          RETIREMENT.
        (a) Surviving Spouse Annuity.--Paragraph (1) of section 1448(d) of
    title 10, United States Code, is amended to read as follows:
            ``(1) Surviving spouse annuity.--The Secretary concerned shall
        pay an annuity under this subchapter to the surviving spouse of--
                ``(A) a member who dies while on active duty after--
                    ``(i) becoming eligible to receive retired pay;
                    ``(ii) qualifying for retired pay except that the
                member has not applied for or been granted that pay; or
                    ``(iii) completing 20 years of active service but
                before the member is eligible to retire as a commissioned
                officer because the member has not completed 10 years of
                active commissioned service; or
                ``(B) a member not described in subparagraph (A) who dies
            in line of duty while on active duty.''.
        (b) Computation of Annuity.--Section 1451(c)(1) of such title is
    amended--
            (1) in subparagraph (A)--
                (A) by striking ``based upon his years of active service
            when he died.'' and inserting ``when he died determined as
            follows:
                    ``(i) In the case of an annuity provided under section
                1448(d) of this title (other than in a case covered by
                clause (ii)), such retired pay shall be computed as if the
                member had been retired under section 1201 of this title on
                the date of the member's death with a disability rated as
                total.
                    ``(ii) In the case of an annuity provided under section
                1448(d)(1)(A) of this title by reason of the death of a
                member not in line of duty, such retired pay shall be
                computed based upon the member's years of active service
                when he died.
                    ``(iii) In the case of an annuity provided under
                section 1448(f) of this title, such retired pay shall be
                computed based upon the member or former member's years of
                active service when he died computed under section 12733 of
                this title.''; and
            (2) in subparagraph (B)(i), by striking ``if the member or
        former member'' and all that follows and inserting ``as determined
        under subparagraph (A).''.
        (c) Conforming Amendments.--(1) The heading for subsection (d) of
    section 1448 of such title is amended by striking ``Retirement-
    Eligible''.
        (2) Subsection (c)(3) of section 1451 of such title is amended by
    striking ``1448(d)(1)(B) or 1448(d)(1)(C)'' and inserting ``clause (ii)
    or (iii) of section 1448(d)(1)(A)''.
        (d) Effective Date.--The amendments made by this section shall take
    effect as of September 10, 2001, and shall apply with respect to deaths
    of members of the Armed Forces occurring on or after that date.

                           Subtitle E--Other Matters

        SEC. 651. PAYMENT FOR UNUSED LEAVE IN EXCESS OF 60 DAYS ACCRUED BY
          MEMBERS OF RESERVE COMPONENTS ON ACTIVE DUTY FOR ONE YEAR OR
          LESS.
        (a) Eligibility.--Section 501(b)(5) of title 37, United States
    Code, is amended by--
            (1) striking ``or'' at the end of subparagraph (B);
            (2) striking the period at the end of subparagraph (C) and
        inserting ``; or''; and
            (3) adding at the end the following new subparagraph:
            ``(D) by a member of a reserve component while serving on
        active duty, full-time National Guard duty, or active duty for
        training for a period of more than 30 days but not in excess of 365
        days.''.
        (b) Application of Amendment.--Subparagraph (D) of section
    501(b)(5) of title 37, United States Code, as added by subsection
    (a)(3), shall apply with respect to periods of active duty beginning on
    or after October 1, 2001.
        SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES
          OF MEMBERS OF THE ARMED FORCES.
        (a) Authority.--During fiscal year 2002, the Secretary of Defense
    may provide assistance for families of members of the Armed Forces
    serving on active duty in order to ensure that the children of such
    members obtain needed child care, education, and other youth services.
        (b) Primary Purpose of Assistance.--The assistance authorized by
    this section should be directed primarily toward providing needed
    family support, including child care, education, and other youth
    services, for children of members of the Armed Forces who are deployed,
    assigned to duty, or ordered to active duty in connection with the
    contingency operation known as Operation Enduring Freedom.
        SEC. 653. AUTHORIZATION OF TRANSITIONAL COMPENSATION AND COMMISSARY
          AND EXCHANGE BENEFITS FOR DEPENDENTS OF COMMISSIONED OFFICERS OF
          THE PUBLIC HEALTH SERVICE AND THE NATIONAL OCEANIC AND
          ATMOSPHERIC ADMINISTRATION WHO ARE SEPARATED FOR DEPENDENT ABUSE.
        (a) Commissioned Officers of the Public Health Service.--Section
    221(a) of the Public Health Service Act (42 U.S.C. 213a(a)) is amended
    by adding at the end the following new paragraph:
            ``(17) Section 1059, Transitional compensation and commissary
        and exchange benefits for dependents of members separated for
        dependent abuse.''.
        (b) Commissioned Officers of the National Oceanic and Atmospheric
    Administration.--Section 3(a) of the Act entitled ``An Act to revise,
    codify, and enact into law, title 10 of the United States Code,
    entitled `Armed Forces', and title 32 of the United States Code,
    entitled `National Guard''', approved August 10, 1956 (33 U.S.C.
    857a(a)), is amended by adding at the end the following new paragraph:
            ``(17) Section 1059, Transitional compensation and commissary
        and exchange benefits for dependents of members separated for
        dependent abuse.''.
        SEC. 654. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE UNDER
          MONTGOMERY GI BILL BY MEMBERS OF THE ARMED FORCES WITH CRITICAL
          MILITARY SKILLS.
        (a) Authority To Transfer to Family Members.--(1) Subchapter II of
    chapter 30 of title 38, United States Code, is amended by adding at the
    end the following new section:
    ``Sec. 3020. Transfer of entitlement to basic educational assistance:
         members of the Armed Forces with critical military skills
        ``(a) In General.--Subject to the provisions of this section, each
    Secretary concerned may, for the purpose of enhancing recruitment and
    retention of members of the Armed Forces with critical military skills
    and at such Secretary's sole discretion, permit an individual described
    in subsection (b) who is entitled to basic educational assistance under
    this subchapter to elect to transfer to one or more of the dependents
    specified in subsection (c) a portion of such individual's entitlement
    to such assistance, subject to the limitation under subsection (d).
        ``(b) Eligible Individuals.--An individual referred to in
    subsection (a) is any member of the Armed Forces who, at the time of
    the approval by the Secretary concerned of the member's request to
    transfer entitlement to basic educational assistance under this
    section--
            ``(1) has completed six years of service in the Armed Forces;
            ``(2) either--
                ``(A) has a critical military skill designated by the
            Secretary concerned for purposes of this section; or
                ``(B) is in a military specialty designated by the
            Secretary concerned for purposes of this section as requiring
            critical military skills; and
            ``(3) enters into an agreement to serve at least four more
        years as a member of the Armed Forces.
        ``(c) Eligible Dependents.--An individual approved to transfer an
    entitlement to basic educational assistance under this section may
    transfer the individual's entitlement as follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in
        paragraphs (1) and (2).
        ``(d) Limitation on Months of Transfer.--The total number of months
    of entitlement transferred by an individual under this section may not
    exceed 18 months.
        ``(e) Designation of Transferee.--An individual transferring an
    entitlement to basic educational assistance under this section shall--
            ``(1) designate the dependent or dependents to whom such
        entitlement is being transferred;
            ``(2) designate the number of months of such entitlement to be
        transferred to each such dependent; and
            ``(3) specify the period for which the transfer shall be
        effective for each dependent designated under paragraph (1).
        ``(f) Time for Transfer; Revocation and Modification.--(1) Subject
    to the time limitation for use of entitlement under section 3031 of
    this title, an individual approved to transfer entitlement to basic
    educational assistance under this section may transfer such entitlement
    at any time after the approval of the individual's request to transfer
    such entitlement without regard to whether the individual is a member
    of the Armed Forces when the transfer is executed.
        ``(2)(A) An individual transferring entitlement under this section
    may modify or revoke at any time the transfer of any unused portion of
    the entitlement so transferred.
        ``(B) 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--
            ``(1) in the case of entitlement transferred to a spouse, the
        completion by the individual making the transfer of six years of
        service in the Armed Forces; or
            ``(2) in the case of entitlement transferred to a child, both--
                ``(A) the completion by the individual making the transfer
            of 10 years of service in the Armed Forces; and
                ``(B) either--
                    ``(i) the completion by the child of the requirements
                of a secondary school diploma (or equivalency certificate);
                or
                    ``(ii) the attainment by the child of 18 years of age.
        ``(h) Additional Administrative Matters.--(1) The use of any
    entitlement to basic educational assistance transferred under this
    section shall be charged against the entitlement of the individual
    making the transfer at the rate of one month for each month of
    transferred entitlement that is used.
        ``(2) Except as provided under subsection (e)(2) and subject to
    paragraphs (4) and (5), a dependent to whom entitlement is transferred
    under this section is entitled to basic educational assistance under
    this subchapter in the same manner and at the same rate as the
    individual from whom the entitlement was transferred.
        ``(3) The death of an individual transferring an entitlement under
    this section shall not affect the use of the entitlement by the
    dependent to whom the entitlement is transferred.
        ``(4) Notwithstanding section 3031 of this title, a child to whom
    entitlement is transferred under this section may not use any
    entitlement so transferred after attaining the age of 26 years.
        ``(5) The administrative provisions of this chapter (including the
    provisions set forth in section 3034(a)(1) of this title) shall apply
    to the use of entitlement transferred under this section, except that
    the dependent to whom the entitlement is transferred shall be treated
    as the eligible veteran for purposes of such provisions.
        ``(6) The purposes for which a dependent to whom entitlement is
    transferred under this section may use such entitlement shall include
    the pursuit and completion of the requirements of a secondary school
    diploma (or equivalency certificate).
        ``(i) Overpayment.--(1) In the event of an overpayment of basic
    educational assistance with respect to a dependent to whom entitlement
    is transferred under this section, the dependent and the individual
    making the transfer shall be jointly and severally liable to the United
    States for the amount of the overpayment for purposes of section 3685
    of this title.
        ``(2) Except as provided in paragraph (3), if an individual
    transferring entitlement under this section fails to complete the
    service agreed to by the individual under subsection (b)(3) in
    accordance with the terms of the agreement of the individual under that
    subsection, the amount of any transferred entitlement under this
    section that is used by a dependent of the individual as of the date of
    such failure shall be treated as an overpayment of basic educational
    assistance under paragraph (1).
        ``(3) Paragraph (2) shall not apply in the case of an individual
    who fails to complete service agreed to by the individual--
            ``(A) by reason of the death of the individual; or
            ``(B) for a reason referred to in section 3011(a)(1)(A)(ii)(I)
        of this title.
        ``(j) Approvals of Transfer Subject to Availability of
    Appropriations.--The Secretary concerned may approve transfers of
    entitlement to basic educational assistance under this section in a
    fiscal year only to the extent that appropriations for military
    personnel are available in that fiscal year for purposes of making
    deposits in the Department of Defense Education Benefits Fund under
    section 2006 of title 10 in that fiscal year to cover the present value
    of future benefits payable from the Fund for the Department of Defense
    portion of payments of basic educational assistance attributable to
    increased usage of benefits as a result of such transfers of
    entitlement in that fiscal year.
        ``(k) Regulations.--The Secretary of Defense shall prescribe
    regulations for purposes of this section. Such regulations shall
    specify the manner and effect of an election to modify or revoke a
    transfer of entitlement under subsection (f)(2) and shall specify the
    manner of the applicability of the administrative provisions referred
    to in subsection (h)(5) to a dependent to whom entitlement is
    transferred under this section.
        ``(l) Annual Report.--(1) Not later than January 31 each year
    (beginning in 2003), the Secretary of Defense shall submit to the
    Committees on Armed Services and the Committees on Veterans' Affairs of
    the Senate and House of Representatives a report on the transfers of
    entitlement to basic educational assistance under this section that
    were approved by each Secretary concerned during the preceding fiscal
    year.
        ``(2) Each report shall set forth--
            ``(A) the number of transfers of entitlement under this section
        that were approved by such Secretary during the preceding fiscal
        year; or
            ``(B) if no transfers of entitlement under this section were
        approved by such Secretary during that fiscal year, a justification
        for such Secretary's decision not to approve any such transfers of
        entitlement during that fiscal year.
        ``(m) Secretary Concerned Defined.--Notwithstanding section 101(25)
    of this title, in this section, the term `Secretary concerned' means--
            ``(1) the Secretary of the Army with respect to matters
        concerning the Army;
            ``(2) the Secretary of the Navy with respect to matters
        concerning the Navy or the Marine Corps;
            ``(3) the Secretary of the Air Force with respect to matters
        concerning the Air Force; and
            ``(4) the Secretary of Defense with respect to matters
        concerning the Coast Guard, or the Secretary of Transportation when
        it is not operating as a service in the Navy.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 3019 the
    following new item:

    ``3020. Transfer of entitlement to basic educational assistance: members
    of the Armed Forces with critical military skills.''.

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

                       TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--TRICARE Program Improvements

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

                         Subtitle B--Senior Health Care

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

                         Subtitle C--Studies and Reports

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

                            Subtitle D--Other Matters

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

                    Subtitle A--TRICARE Program Improvements

        SEC. 701. SUB-ACUTE AND LONG-TERM CARE PROGRAM REFORM.
        (a) In General.--(1) Chapter 55 of title 10, United States Code, is
    amended by inserting after section 1074i the following new section:

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

        ``(a) Establishment.--The Secretary of Defense shall establish an
    effective, efficient, and integrated sub-acute care benefits program
    under this chapter (hereinafter referred to in this section as the
    `program'). Except as otherwise provided in this section, the types of
    health care authorized under the program shall be the same as those
    provided under section 1079 of this title. The Secretary, after
    consultation with the other administering Secretaries, shall promulgate
    regulations to carry out this section.
        ``(b) Benefits.--(1) The program shall include a uniform skilled
    nursing facility benefit that shall be provided in the manner and under
    the conditions described in section 1861 (h) and (i) of the Social
    Security Act (42 U.S.C. 1395x (h) and (i)), except that the limitation
    on the number of days of coverage under section 1812 (a) and (b) of
    such Act (42 U.S.C. 1395d (a) and (b)) shall not be applicable under
    the program. Skilled nursing facility care for each spell of illness
    shall continue to be provided for as long as medically necessary and
    appropriate.
        ``(2) In this subsection:
            ``(A) The term `skilled nursing facility' has the meaning given
        such term in section 1819(a) of the Social Security Act (42 U.S.C.
        1395i-3(a)).
            ``(B) The term `spell of illness' has the meaning given such
        term in section 1861(a) of such Act (42 U.S.C. 1395x(a)).
        ``(3) The program shall include a comprehensive, part-time or
    intermittent home health care benefit that shall be provided in the
    manner and under the conditions described in section 1861(m) of the
    Social Security Act (42 U.S.C. 1395x(m)).''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1074i the
    following new item:
    ``1074j. Sub-acute care program.''.

        (b) Extended Benefits for Disabled Beneficiaries.--Section 1079 of
    title 10, United States Code, is amended by striking subsections (d),
    (e), and (f) and inserting the following new subsections:
        ``(d)(1) The Secretary of Defense shall establish a program to
    provide extended benefits for eligible dependents, which may include
    the provision of comprehensive health care services, including case
    management services, to assist in the reduction of the disabling
    effects of a qualifying condition of an eligible dependent.
    Registration shall be required to receive the extended benefits.
        ``(2) The Secretary of Defense, after consultation with the other
    administering Secretaries, shall promulgate regulations to carry out
    this subsection.
        ``(3) In this subsection:
            ``(A) The term `eligible dependent' means a dependent of a
        member of the uniformed services on active duty for a period of
        more than 30 days, as described in subparagraph (A), (D), or (I) of
        section 1072(2) of this title, who has a qualifying condition.
            ``(B) The term `qualifying condition' means the condition of a
        dependent who is moderately or severely mentally retarded, has a
        serious physical disability, or has an extraordinary physical or
        psychological condition.
        ``(e) Extended benefits for eligible dependents under subsection
    (d) may include comprehensive health care services (including services
    necessary to maintain, or minimize or prevent deterioration of,
    function of the patient) and case management services with respect to
    the qualifying condition of such a dependent, and include, to the
    extent such benefits are not provided under provisions of this chapter
    other than under this section, the following:
            ``(1) Diagnosis.
            ``(2) Inpatient, outpatient, and comprehensive home health care
        supplies and services which may include cost effective and
        medically appropriate services other than part-time or intermittent
        services (within the meaning of such terms as used in the second
        sentence of section 1861(m) of the Social Security Act).
            ``(3) Training, rehabilitation, special education, and
        assistive technology devices.
            ``(4) Institutional care in private nonprofit, public, and
        State institutions and facilities and, if appropriate,
        transportation to and from such institutions and facilities.
            ``(5) Custodial care, notwithstanding the prohibition in
        section 1077(b)(1) of this title.
            ``(6) Respite care for the primary caregiver of the eligible
        dependent.
            ``(7) Such other services and supplies as determined
        appropriate by the Secretary, notwithstanding the limitations in
        subsection (a)(13).
        ``(f)(1) Members shall be required to share in the cost of any
    benefits provided to their dependents under subsection (d) as follows:
            ``(A) Members in the lowest enlisted pay grade shall be
        required to pay the first $25 incurred each month, and members in
        the highest commissioned pay grade shall be required to pay the
        first $250 incurred each month. The amounts to be paid by members
        in all other pay grades shall be determined under regulations to be
        prescribed by the Secretary of Defense in consultation with the
        administering Secretaries.
            ``(B) A member who has more than one dependent incurring
        expenses in a given month under a plan covered by subsection (d)
        shall not be required to pay an amount greater than would be
        required if the member had only one such dependent.
        ``(2) In the case of extended benefits provided under paragraph (3)
    or (4) of subsection (e) to a dependent of a member of the uniformed
    services--
            ``(A) the Government's share of the total cost of providing
        such benefits in any month shall not exceed $2,500, except for
        costs that a member is exempt from paying under paragraph (3); and
            ``(B) the member shall pay (in addition to any amount payable
        under paragraph (1)) the amount, if any, by which the amount of
        such total cost for the month exceeds the Government's maximum
        share under subparagraph (A).
        ``(3) A member of the uniformed services who incurs expenses under
    paragraph (2) for a month for more than one dependent shall not be
    required to pay for the month under subparagraph (B) of that paragraph
    an amount greater than the amount the member would otherwise be
    required to pay under that subparagraph for the month if the member
    were incurring expenses under that subparagraph for only one dependent.
        ``(4) To qualify for extended benefits under paragraph (3) or (4)
    of subsection (e), a dependent of a member of the uniformed services
    shall be required to use public facilities to the extent such
    facilities are available and adequate, as determined under joint
    regulations of the administering Secretaries.
        ``(5) The Secretary of Defense, in consultation with the other
    administering Secretaries, shall prescribe regulations to carry out
    this subsection.''.
        (c) Definitions of Custodial Care and Domiciliary Care.--Section
    1072 of title 10, United States Code, is amended by adding at the end
    the following new paragraphs:
            ``(8) The term `custodial care' means treatment or services,
        regardless of who recommends such treatment or services or where
        such treatment or services are provided, that--
                ``(A) can be rendered safely and reasonably by a person who
            is not medically skilled; or
                ``(B) is or are designed mainly to help the patient with
            the activities of daily living.
            ``(9) The term `domiciliary care' means care provided to a
        patient in an institution or homelike environment because--
                ``(A) providing support for the activities of daily living
            in the home is not available or is unsuitable; or
                ``(B) members of the patient's family are unwilling to
            provide the care.''.
        (d) Continuation of Individual Case Management Services for Certain
    Eligible Beneficiaries.--(1) Notwithstanding the termination of the
    Individual Case Management Program by subsection (g), the Secretary of
    Defense shall, in any case in which the Secretary makes the
    determination described in paragraph (2), continue to provide payment
    as if such program were in effect for home health care or custodial
    care services provided to an eligible beneficiary that would otherwise
    be excluded from coverage under regulations implementing chapter 55 of
    title 10, United States Code.
        (2) The determination referred to in paragraph (1) is a
    determination that discontinuation of payment for services not
    otherwise provided under such chapter would result in the provision of
    services inadequate to meet the needs of the eligible beneficiary and
    would be unjust to such beneficiary.
        (3) For purposes of this subsection, ``eligible beneficiary'' means
    a covered beneficiary (as that term is defined in section 1072 of title
    10, United States Code) who, before the effective date of this section,
    was provided custodial care services under the Individual Case
    Management Program for which the Secretary provided payment.
        (e) Report on Initiatives Regarding Long-Term Care.--The Secretary
    of Defense shall, not later than April 1, 2002, submit to Congress a
    report on the feasibility and desirability of establishing new
    initiatives, taking into account chapter 90 of title 5, United States
    Code, to improve the availability of long-term care for members and
    retired members of the uniformed services and their families.
        (f) Reference in Title 10 to Long-Term Care Program in Title 5.--
    (1) Chapter 55 of title 10, United States Code, is amended by inserting
    after section 1074j (as added by subsection (a)) the following new
    section:

    ``Sec. 1074k. Long-term care insurance

        ``Provisions regarding long-term care insurance for members and
    certain former members of the uniformed services and their families are
    set forth in chapter 90 of title 5.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1074j (as added
    by subsection (a)) the following new item:
    ``1074k. Long-term care insurance.''.

        (g) Conforming Amendments.--(1) The following provisions of law are
    repealed:
            (A) Section 703 of the National Defense Authorization Act for
        Fiscal Year 2000 (Public Law 106-65; 113 Stat. 682; 10 U.S.C. 1077
        note).
            (B) Section 8118 of the Department of Defense Appropriations
        Act, 2000 (Public Law 106-79; 113 Stat. 1260).
            (C) Section 8100 of the Department of Defense Appropriations
        Act, 2001 (Public Law 106-259; 114 Stat. 696).
        (2) Section 1079 of title 10, United States Code, is amended in
    subsection (a) by striking paragraph (17).

    SEC. 702. PROSTHETICS AND HEARING AIDS.

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

    SEC. 703. DURABLE MEDICAL EQUIPMENT.

        (a) Items Authorized.--Section 1077 of title 10, United States
    Code, as amended by section 702, is further amended--
            (1) in subsection (a)(12), by striking ``such as wheelchairs,
        iron lungs, and hospital beds'' and inserting ``which''; and
            (2) by adding at the end the following new subsection:
        ``(f)(1) Items that may be provided to a patient under subsection
    (a)(12) include the following:
            ``(A) Any durable medical equipment that can improve, restore,
        or maintain the function of a malformed, diseased, or injured body
        part, or can otherwise minimize or prevent the deterioration of the
        patient's function or condition.
            ``(B) Any durable medical equipment that can maximize the
        patient's function consistent with the patient's physiological or
        medical needs.
            ``(C) Wheelchairs.
            ``(D) Iron lungs.
            ``(E) Hospital beds.
        ``(2) In addition to the authority to provide durable medical
    equipment under subsection (a)(12), any customization of equipment
    owned by the patient that is durable medical equipment authorized to be
    provided to the patient under this section or section 1079(a)(5) of
    this title, and any accessory or item of supply for any such equipment,
    may be provided to the patient if the customization, accessory, or item
    of supply is essential for--
            ``(A) achieving therapeutic benefit for the patient;
            ``(B) making the equipment serviceable; or
            ``(C) otherwise assuring the proper functioning of the
        equipment.''.
        (b) Provision of Items on Rental Basis.--Paragraph (5) of section
    1079(a) of such title is amended to read as follows:
            ``(5) Durable equipment provided under this section may be
        provided on a rental basis.''.

    SEC. 704. REHABILITATIVE THERAPY.

        Section 1077(a) of title 10, United States Code, as amended by
    sections 702 and 703, is further amended by inserting after paragraph
    (16) the following new paragraph:
            ``(17) Any rehabilitative therapy to improve, restore, or
        maintain function, or to minimize or prevent deterioration of
        function, of a patient when prescribed by a physician.''.

    SEC. 705. REPORT ON MENTAL HEALTH BENEFITS.

        (a) Requirement for Study.--The Secretary of Defense shall carry
    out a study to determine the adequacy of the scope and 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. 706. CLARIFICATION OF ELIGIBILITY FOR REIMBURSEMENT OF TRAVEL
          EXPENSES OF ADULT ACCOMPANYING PATIENT IN TRAVEL FOR SPECIALTY
          CARE.
        Section 1074i of title 10, United States Code, is amended by
    inserting before the period at the end the following: ``and, when
    accompaniment by an adult is necessary, for a parent or guardian of the
    covered beneficiary or another member of the covered beneficiary's
    family who is at least 21 years of age''.
        SEC. 707. TRICARE PROGRAM LIMITATIONS ON PAYMENT RATES FOR
          INSTITUTIONAL HEALTH CARE PROVIDERS AND ON BALANCE BILLING BY
          INSTITUTIONAL AND NONINSTITUTIONAL HEALTH CARE PROVIDERS.
        (a) Institutional Providers.--Section 1079(j) of title 10, United
    States Code, is amended--
            (1) in paragraph (2)(A)--
                (A) by striking ``(A)''; and
                (B) by striking ``may be determined under joint
            regulations'' and inserting ``shall be determined under joint
            regulations'';
            (2) by redesignating subparagraph (B) of paragraph (2) as
        paragraph (4), and, in such paragraph, as so redesignated, by
        striking ``subparagraph (A),'' and inserting ``this subsection,'';
        and
            (3) by inserting before paragraph (4), as redesignated by
        paragraph (2), the following new paragraph (3):
        ``(3) A contract for a plan covered by this section shall include a
    clause that prohibits each provider of services under the plan from
    billing any person covered by the plan for any balance of charges for
    services in excess of the amount paid for those services under the
    joint regulations referred to in paragraph (2), except for any unpaid
    amounts of deductibles or copayments that are payable directly to the
    provider by the person.''.
        (b) Noninstitutional Providers.--Section 1079(h)(4) of such title
    is amended--
            (1) by inserting ``(A)'' after ``(4)''; and
            (2) by adding at the end the following new subparagraph:
        ``(B) 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 the date that is 90 days after the date of the enactment of
    this Act.
        SEC. 708. IMPROVEMENTS IN ADMINISTRATION OF THE TRICARE PROGRAM.
        (a) Flexibility in Contracting.--(1) During the one-year period
    following the date of the enactment of this Act, section 1072(7) of
    title 10, United States Code, shall be deemed to be amended by striking
    ``the competitive selection of contractors to financially underwrite''.
        (2) The terms and conditions of any contract to provide health care
    services under the TRICARE program entered into during the period
    described in paragraph (1) shall not be considered to be modified or
    terminated as a result of the termination of such period.
        (b) Reduction of Contract Start-Up Time.--Section 1095c(b) of such
    title is amended--
            (1) in paragraph (1)--
                (A) by striking ``The'' and inserting ``Except as provided
            in paragraph (3), the''; and
                (B) by striking ``contract.'' and all that follows through
            ``as soon as practicable after the award of the''; and
            (2) by adding at the end the following new paragraph:
        ``(3) The Secretary may reduce the nine-month start-up period
    required under paragraph (1) if--
            ``(A) the Secretary--
                ``(i) determines that a shorter period is sufficient to
            ensure effective implementation of all contract requirements;
            and
                ``(ii) submits notification to the Committees on Armed
            Services of the House of Representatives and the Senate of the
            Secretary's intent to reduce the nine-month start-up period;
            and
            ``(B) 60 days have elapsed since the date of such
        notification.''.

                         Subtitle B--Senior Health Care

        SEC. 711. CLARIFICATIONS AND IMPROVEMENTS REGARDING THE DEPARTMENT
          OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND.
        (a) Clarification Regarding Coverage.--Subsection (b) of section
    1111 of title 10, United States Code, is amended to read as follows:
        ``(b) In this chapter:
            ``(1) The term `uniformed services retiree health care
        programs' means the provisions of this title or any other provision
        of law creating an entitlement to or eligibility for health care
        for a member or former member of a participating uniformed service
        who is entitled to retired or retainer pay, and an eligible
        dependent under such program.
            ``(2) The term `eligible dependent' means a dependent described
        in section 1076(a)(2) (other than a dependent of a member on active
        duty), 1076(b), 1086(c)(2), or 1086(c)(3) of this title.
            ``(3) The term `medicare-eligible', with respect to any person,
        means entitled to benefits under part A of title XVIII of the
        Social Security Act (42 U.S.C. 1395c et seq.).
            ``(4) The term `participating uniformed service' means the
        Army, Navy, Air Force, and Marine Corps, and any other uniformed
        service that is covered by an agreement entered into under
        subsection (c).''.
        (b) Participation of Other Uniformed Services.--(1) Section 1111 of
    such title is further amended by adding at the end the following new
    subsection:
        ``(c) The Secretary of Defense may enter into an agreement with any
    other administering Secretary (as defined in section 1072(3) of this
    title) for participation in the Fund by a uniformed service under the
    jurisdiction of that Secretary. Any such agreement shall require that
    Secretary to determine contributions to the Fund on behalf of the
    members of the uniformed service under the jurisdiction of that
    Secretary in a manner comparable to the determination with respect to
    contributions to the Fund made by the Secretary of Defense under
    section 1116 of this title, and such administering Secretary may make
    such contributions.''.
        (2) Section 1112 of such title is amended by adding at the end the
    following new paragraph:
            ``(4) Amounts paid into the Fund pursuant to section 1111(c) of
        this title.''.
        (3) Section 1115 of such title is amended--
            (A) in subsection (a), by inserting ``participating'' before
        ``uniformed services'';
            (B) in subparagraphs (A)(ii) and (B)(ii) of subsection (b)(1),
        by inserting ``under the jurisdiction of the Secretary of Defense''
        after ``uniformed services'';
            (C) in subsection (b)(2), by inserting ``(or to the other
        executive department having jurisdiction over the participating
        uniformed service)'' after ``Department of Defense''; and
            (D) in subparagraphs (A) and (B) of subsection (c)(1), by
        inserting ``participating'' before ``uniformed services''.
        (4) Section 1116(a) of such title is amended in paragraphs (1)(B)
    and (2)(B) by inserting ``under the jurisdiction of the Secretary of
    Defense'' after ``uniformed services''.
        (c) Clarification of Payments From the Fund.--(1) Subsection (a) of
    section 1113 of such title is amended to read as follows:
        ``(a) There shall be paid from the Fund amounts payable for the
    costs of all uniformed service retiree health care programs for the
    benefit of members or former members of a participating uniformed
    service who are entitled to retired or retainer pay and are medicare
    eligible, and eligible dependents who are medicare eligible.''.
        (2) Such section is further amended by adding at the end the
    following new subsections:
        ``(c)(1) In carrying out subsection (a), the Secretary of Defense
    may transfer periodically from the Fund to applicable appropriations of
    the Department of Defense, or to applicable appropriations of other
    departments or agencies, such amounts as the Secretary determines
    necessary to cover the costs chargeable to those appropriations for
    uniformed service retiree health care programs for beneficiaries under
    those programs who are medicare-eligible. Such transfers may include
    amounts necessary for the administration of such programs. Amounts so
    transferred shall be merged with and be available for the same purposes
    and for the same time period as the appropriation to which transferred.
    Upon a determination that all or part of the funds transferred from the
    Fund are not necessary for the purposes for which transferred, such
    amounts may be transferred back to the Fund. This transfer authority is
    in addition to any other transfer authority that may be available to
    the Secretary.
        ``(2) A transfer from the Fund under paragraph (1) may not be made
    to an appropriation after the end of the second fiscal year after the
    fiscal year that the appropriation is available for obligation. A
    transfer back to the Fund under paragraph (1) may not be made after the
    end of the second fiscal year after the fiscal year for which the
    appropriation to which the funds were originally transferred is
    available for obligation.
        ``(d) The Secretary of Defense shall by regulation establish the
    method or methods for calculating amounts to be transferred under
    subsection (c). Such method or methods may be based (in whole or in
    part) on a proportionate share of the volume (measured as the Secretary
    determines appropriate) of health care services provided or paid for
    under uniformed service retiree health care programs for beneficiaries
    under those programs who are medicare-eligible in relation to the total
    volume of health care services provided or paid for under Department of
    Defense health care programs.
        ``(e) The regulations prescribed by the Secretary under subsection
    (d) shall be provided to the Comptroller General not less than 60 days
    before such regulations become effective. The Comptroller General
    shall, not later than 30 days after receiving such regulations, report
    to the Secretary of Defense and Congress on the adequacy and
    appropriateness of the regulations.
        ``(f) If the Secretary of Defense enters into an agreement with
    another administering Secretary pursuant to section 1111(c), the
    Secretary of Defense may take the actions described in subsections (c),
    (d), and (e) on behalf of the beneficiaries and programs of the other
    participating uniformed service.''.
        (d) Source of Funds for Monthly Accrual Payments Into the Fund.--
    Section 1116 of such title is further amended--
            (1) in subsection (a)(2)(B) (as amended by subsection (b)(4)),
        by striking the sentence beginning ``Amounts paid into''; and
            (2) by adding at the end the following new subsection:
        ``(c) Amounts paid into the Fund under subsection (a) shall be paid
    from funds available for the health care programs of the participating
    uniformed services under the jurisdiction of the respective
    administering Secretaries.''.
        (e) Technical Amendments.--(1) Sections 1111(a), 1115(c)(2),
    1116(a)(1)(A), and 1116(a)(2)(A) of such title are amended by striking
    ``Department of Defense retiree health care programs'' and inserting
    ``uniformed services retiree health care programs''.
        (2) The heading for section 1111 of such title is amended to read
    as follows:
    ``Sec. 1111. Establishment and purpose of Fund; definitions; authority
         to enter into agreements''.
        (3) The item relating to section 1111 in the table of sections at
    the beginning of chapter 56 of such title is amended to read as
    follows:

    ``1111. Establishment and purpose of Fund; definitions; authority to
    enter into agreements.''.

        (f) Effective Date.--The amendments made by this section shall take
    effect as if included in the enactment of chapter 56 of title 10,
    United States Code, by section 713(a)(1) of the Floyd D. Spence
    National Defense Authorization Act for Fiscal Year 2001 (as enacted
    into law by Public Law 106-398; 114 Stat. 1654A-179).
        (g) First Year Contributions.--With respect to contributions under
    section 1116(a) of title 10, United States Code, for the first year
    that the Department of Defense Medicare-Eligible Retiree Health Care
    Fund is established under chapter 56 of such title, if the Board of
    Actuaries is unable to execute its responsibilities with respect to
    such section, the Secretary of Defense may make contributions under
    such section using methods and assumptions developed by the Secretary.

                        Subtitle C--Studies and Reports

        SEC. 721. COMPTROLLER GENERAL STUDY OF HEALTH CARE COVERAGE OF
          MEMBERS OF THE RESERVE COMPONENTS OF THE ARMED FORCES AND THE
          NATIONAL GUARD.
        (a) Requirement for Study.--The Comptroller General shall carry out
    a study of the needs of members of the reserve components of the Armed
    Forces and the National Guard and their families for health care
    benefits. The study shall include the following:
            (1) An analysis of how members of the reserve components of the
        Armed Forces and the National Guard currently obtain coverage for
        health care benefits when not on active duty, together with
        statistics on enrollments in health care benefits plans,
        including--
                (A) the percentage of such members who are not covered by
            an employer health benefits plan;
                (B) the percentage of such members who are not covered by
            an individual health benefits plan; and
                (C) the percentage of such members who are not covered by
            any health insurance or other health benefits plan.
            (2) An assessment of the disruptions in health benefits
        coverage that a mobilization of members of the reserve components
        of the Armed Forces and the National Guard causes for the members
        and their families.
            (3) An assessment of the cost and effectiveness of various
        options for preventing or reducing disruptions described in
        paragraph (2), including--
                (A) providing health care benefits to all members of the
            reserve components of the Armed Forces and the National Guard
            and their families through the TRICARE program, the Federal
            Employees Health Benefits Program, or otherwise;
                (B) revising and extending the program of transitional
            medical and dental care that is provided under section 1074b of
            title 10, United States Code, for members of the Armed Forces
            upon release from active duty served in support of a
            contingency operation;
                (C) requiring the health benefits plans of such members,
            including individual health benefits plans and group health
            benefits plans, to permit such members to elect to resume
            coverage under such health benefits plans upon release from
            active duty in support of a contingency operation;
                (D) allowing members of the reserve components of the Armed
            Forces and the National Guard to participate in TRICARE
            Standard using various cost-sharing arrangements;
                (E) providing employers of members of the reserve
            components of the Armed Forces and the National Guard with the
            option of paying the costs of participation in the TRICARE
            program for such members and their families using various cost-
            sharing arrangements;
                (F) providing financial assistance for paying premiums or
            other subscription charges for continuation of coverage by
            private sector health insurance or other health benefits plans;
            and
                (G) any other options that the Comptroller General
            determines advisable to consider.
        (b) Report.--Not later than May 1, 2002, the Comptroller General
    shall submit to Congress a report describing the findings of the study
    conducted under subsection (a).
        SEC. 722. COMPTROLLER GENERAL STUDY OF ADEQUACY AND QUALITY OF
          HEALTH CARE PROVIDED TO WOMEN UNDER THE DEFENSE HEALTH PROGRAM.
        (a) Requirement for Study.--The Comptroller General shall carry out
    a study of the adequacy and quality of the health care provided to
    women under chapter 55 of title 10, United States Code.
        (b) Specific Consideration.--The study shall include an intensive
    review of the availability and quality of reproductive health care
    services.
        (c) Report.--The Comptroller General shall submit a report on the
    results of the study to Congress not later than May 1, 2002.
        SEC. 723. REPEAL OF OBSOLETE REPORT REQUIREMENT.
        Section 701 of the National Defense Authorization Act for Fiscal
    Year 2000 (Public Law 106-65; 10 U.S.C. 1074g note) is amended by
    striking subsection (d).
        SEC. 724. COMPTROLLER GENERAL REPORT ON REQUIREMENT TO PROVIDE
          SCREENINGS, PHYSICAL EXAMINATIONS, AND OTHER CARE FOR CERTAIN
          MEMBERS.
        (a) Report Required.--The Comptroller General shall prepare a
    report on the advisability, need, and cost effectiveness of the
    requirements under section 1074a(d) of title 10, United States Code,
    that the Secretary of the Army provide medical and dental screenings,
    physical examinations, and certain dental care for early deploying
    members of the Selected Reserve. The report shall include any
    recommendations for changes to such requirements based on the most
    current information available on the value of periodic physical
    examinations and any role such examinations play in monitoring force
    and individual member pre-deployment and post-deployment health status.
        (b) Deadline for Submission.--The report required by subsection (a)
    shall be provided to the Committees on Armed Services of the Senate and
    the House of Representatives not later than June 1, 2002.

                           Subtitle D--Other Matters

        SEC. 731. PROHIBITION AGAINST REQUIRING MILITARY RETIREES TO
          RECEIVE HEALTH CARE SOLELY THROUGH THE DEPARTMENT OF DEFENSE.
        (a) Prohibition.--Chapter 55 of title 10, United States Code, is
    amended by inserting after section 1086a the following new section:
    ``Sec. 1086b. Prohibition against requiring retired members to receive
          health care solely through the Department of Defense
        ``The Secretary of Defense may not take any action that would
    require, or have the effect of requiring, a member or former member of
    the armed forces who is entitled to retired or retainer pay to enroll
    to receive health care from the Federal Government only through the
    Department of Defense.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    1086a the following new item:

    ``1086b. Prohibition against requiring retired members to receive health
    care solely through the Department of Defense.''.

        SEC. 732. FEES FOR TRAUMA AND OTHER MEDICAL CARE PROVIDED TO
          CIVILIANS.
        (a) Requirement To Implement Procedures.--(1) Chapter 55 of title
    10, United States Code, is amended by inserting after section 1079a the
    following new section:
    ``Sec. 1079b. Procedures for charging fees for care provided to
          civilians; retention and use of fees collected
        ``(a) Requirement To Implement Procedures.--The Secretary of
    Defense shall implement procedures under which a military medical
    treatment facility may charge civilians who are not covered
    beneficiaries (or their insurers) fees representing the costs, as
    determined by the Secretary, of trauma and other medical care provided
    to such civilians.
        ``(b) Use of Fees Collected.--A military medical treatment facility
    may retain and use the amounts collected under subsection (a) for--
            ``(1) trauma consortium activities;
            ``(2) administrative, operating, and equipment costs; and
            ``(3) readiness training.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 1079a the
    following new item:

    ``1079b. Procedures for charging fees for care provided to civilians;
    retention and use of fees collected.''.

        (b) Deadline for Implementation.--The Secretary of Defense shall
    begin to implement the procedures required by section 1079b(a) of title
    10, United States Code (as added by subsection (a)), not later than one
    year after the date of the enactment of this Act.
        SEC. 733. ENHANCEMENT OF MEDICAL PRODUCT DEVELOPMENT.
        Section 980 of title 10, United States Code, is amended--
            (1) by inserting ``(a)'' before ``Funds''; and
            (2) by adding at the end the following new subsection:
        ``(b) The Secretary of Defense may waive the prohibition in this
    section with respect to a specific research project to advance the
    development of a medical product necessary to the armed forces if the
    research project may directly benefit the subject and is carried out in
    accordance with all other applicable laws.''.
        SEC. 734. PILOT PROGRAM PROVIDING FOR DEPARTMENT OF VETERANS
          AFFAIRS SUPPORT IN THE PERFORMANCE OF SEPARATION PHYSICAL
          EXAMINATIONS.
        (a) Authority.--The Secretary of Defense and the Secretary of
    Veterans Affairs may jointly carry out a pilot program under which the
    Secretary of Veterans Affairs may perform the physical examinations
    required for members of the uniformed services separating from the
    uniformed services who are in one or more geographic areas designated
    for the pilot program by the Secretaries.
        (b) Reimbursement.--The Secretary of Defense shall reimburse the
    Secretary of Veterans Affairs for the cost incurred by the Secretary of
    Veterans Affairs in performing, under the pilot program, the elements
    of physical examination that are required by the Secretary concerned in
    connection with the separation of a member of a uniformed service.
    Reimbursements shall be paid out of funds available for the performance
    of separation physical examinations of members of that uniformed
    service in facilities of the uniformed services.
        (c) Agreement.--(1) If the Secretary of Defense and the Secretary
    of Veterans Affairs carry out the pilot program authorized by this
    section, the Secretaries shall enter into an agreement specifying the
    geographic areas in which the pilot program is carried out and the
    means for making reimbursement payments under subsection (b).
        (2) The other administering Secretaries shall also enter into the
    agreement to the extent that the Secretary of Defense determines
    necessary to apply the pilot program, including the requirement for
    reimbursement, to the uniformed services not under the jurisdiction of
    the Secretary of a military department.
        (d) Consultation Requirement.--In developing and carrying out the
    pilot program, the Secretary of Defense shall consult with the other
    administering Secretaries.
        (e) Period of Program.--The Secretary of Defense and the Secretary
    of Veterans Affairs may carry out the pilot program under this section
    beginning not later than July 1, 2002, and terminating on December 31,
    2005.
        (f) Reports.--(1) If the Secretary of Defense and the Secretary of
    Veterans Affairs carry out the pilot program authorized by this
    section--
            (A) not later than January 31, 2004, the Secretaries shall
        jointly submit to Congress an interim report on the conduct of the
        pilot program; and
            (B) not later than March 1, 2005, the Secretaries shall jointly
        submit to Congress a final report on the conduct of the pilot
        program.
        (2) Reports under this subsection shall include the Secretaries'
    assessment, as of the date of the report, of the efficacy of the
    performance of separation physical examinations as provided for under
    the pilot program.
        (g) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning
        given that term in section 1072(3) of title 10, United States Code.
            (2) The term ``Secretary concerned'' has the meaning given that
        term in section 101(5) of title 37, United States Code.
        SEC. 735. MODIFICATION OF PROHIBITION ON REQUIREMENT OF
          NONAVAILABILITY STATEMENT OR PREAUTHORIZATION.
        (a) Clarification of Covered Beneficiaries.--Subsection (a) of
    section 721 of the Floyd D. Spence National Defense Authorization Act
    for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114
    Stat. 1654A-184) is amended by striking ``covered beneficiary under
    chapter 55 of title 10, United States Code, who is enrolled in TRICARE
    Standard,'' and inserting ``covered beneficiary under TRICARE Standard
    pursuant to chapter 55 of title 10, United States Code,''.
        (b) Repeal of Requirement for Notification Regarding Health Care
    Received From Another Source.--Subsection (b) of such section is
    repealed.
        (c) Waiver Authority.--Such section, as so amended, is further
    amended by striking subsection (c) and inserting the following new
    subsections:
        ``(b) Waiver Authority.--The Secretary may waive the prohibition in
    subsection (a) if--
            ``(1) the Secretary--
                ``(A) demonstrates that significant costs would be avoided
            by performing specific procedures at the affected military
            medical treatment facility or facilities;
                ``(B) determines that a specific procedure must be provided
            at the affected military medical treatment facility or
            facilities to ensure the proficiency levels of the
            practitioners at the facility or facilities; or
                ``(C) determines that the lack of nonavailability statement
            data would significantly interfere with TRICARE contract
            administration;
            ``(2) the Secretary provides notification of the Secretary's
        intent to grant a waiver under this subsection to covered
        beneficiaries who receive care at the military medical treatment
        facility or facilities that will be affected by the decision to
        grant a waiver under this subsection;
            ``(3) the Secretary notifies the Committees on Armed Services
        of the House of Representatives and the Senate of the Secretary's
        intent to grant a waiver under this subsection, the reason for the
        waiver, and the date that a nonavailability statement will be
        required; and
            ``(4) 60 days have elapsed since the date of the notification
        described in paragraph (3).
        ``(c) Waiver Exception for Maternity Care.--Subsection (b) shall
    not apply with respect to maternity care.''.
        (d) Effective Date.--(1) Subsection (a) of such section is amended
    by striking ``under any new contract for the provision of health care
    services''.
        (2) Subsection (d) of such section is amended by striking ``take
    effect on October 1, 2001.'' and inserting ``take effect on the earlier
    of the following:
            ``(1) The date that a new contract entered into by the
        Secretary to provide health care services under TRICARE Standard
        takes effect.
            ``(2) The date that is two years after the date of the
        enactment of the National Defense Authorization Act for Fiscal Year
        2002.''.
        (e) Report.--Not later than March 1, 2002, the Secretary of Defense
    shall submit to the Committees on Armed Services of the House of
    Representatives and the Senate a report on the Secretary's plans for
    implementing section 721 of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001, as amended by this section.
        SEC. 736. TRANSITIONAL HEALTH CARE FOR MEMBERS SEPARATED FROM
          ACTIVE DUTY.
        (a) Permanent Authority for Involuntarily Separated Members and
    Mobilized Reserves.--Subsection (a) of section 1145 of title 10, United
    States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (2), a member''
        and all that follows through ``of the member),'' and inserting
        ``paragraph (3), a member of the armed forces who is separated from
        active duty as described in paragraph (2)'';
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following new
        paragraph (2):
        ``(2) This subsection applies to the following members of the armed
    forces:
            ``(A) A member who is involuntarily separated from active duty.
            ``(B) A member of a reserve component who is separated from
        active duty to which called or ordered in support of a contingency
        operation if the active duty is active duty for a period of more
        than 30 days.
            ``(C) A member who is separated from active duty for which the
        member is involuntarily retained under section 12305 of this title
        in support of a contingency operation.
            ``(D) A member who is separated from active duty served
        pursuant to a voluntary agreement of the member to remain on active
        duty for a period of less than one year in support of a contingency
        operation.''; and
            (4) in paragraph (3), as redesignated by paragraph (2), by
        striking ``involuntarily'' each place it appears.
        (b) Conforming Amendments.--Such section 1145 is further amended--
            (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.
        SEC. 737. 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. 738. JOINT DOD-VA PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL
          EDUCATION AND TRAINING FOR PHYSICIANS.
        (a) In General.--The Secretary of Defense and the Secretary of
    Veterans Affairs may jointly carry out a pilot program under which
    graduate medical education and training is provided to military
    physicians and physician employees of the Department of Defense and the
    Department of Veterans Affairs through one or more programs carried out
    in military medical treatment facilities of the Department of Defense
    and medical centers of the Department of Veterans Affairs.
        (b) Cost-Sharing Agreement.--If the Secretary of Defense and the
    Secretary of Veterans Affairs carry out a pilot program under
    subsection (a), the Secretaries shall enter into an agreement for
    carrying out the pilot program under which means are established for
    each respective Secretary to assist in paying the costs, with respect
    to individuals under the jurisdiction of such Secretary, incurred by
    the other Secretary in providing medical education and training under
    the pilot program.
        (c) Use of Existing Authorities.--To carry out the pilot program,
    the Secretary of Defense and the Secretary of Veterans Affairs shall
    exercise authorities provided to the Secretaries, respectively, under
    other laws relating to the furnishing or support of medical education
    and the cooperative use of facilities.
        (d) Period of Program.--If the Secretary of Defense and the
    Secretary of Veterans Affairs carry out a pilot program under
    subsection (a), such pilot program shall begin not later than August 1,
    2002, and shall terminate on July 31, 2007.
        (e) Reports.--If the Secretary of Defense and the Secretary of
    Veterans Affairs carry out a pilot program under subsection (a), not
    later than January 31, 2003, and January 31 of each year thereafter
    through 2008, the Secretaries shall jointly submit to Congress a report
    on the pilot program. The report shall cover the preceding year and
    shall include each Secretary's assessment of the efficacy of providing
    education and training under the program.

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

              Subtitle A--Procurement Management and Administration

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

                      Subtitle B--Use of Preferred Sources

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

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

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

                            Subtitle D--Other Matters

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

             Subtitle A--Procurement Management and Administration

    SEC. 801. MANAGEMENT OF PROCUREMENT OF SERVICES.

        (a) Responsibility of Under Secretary of Defense for Acquisition,
    Technology, and Logistics.--Section 133(b)(2) of title 10, United
    States Code, is amended by inserting ``of goods and services'' after
    ``procurement''.
        (b) Requirement for Management Structure.--(1) Chapter 137 of such
    title is amended by inserting after section 2328 the following new
    section:
    ``Sec. 2330. Procurement of services: management structure
        ``(a) Requirement for Management Structure.--(1) The Secretary of
    Defense shall establish and implement a management structure for the
    procurement of services for the Department of Defense. The management
    structure shall be comparable to the management structure that applies
    to the procurement of products by the Department.
        ``(2) The management structure required by paragraph (1) shall--
            ``(A) provide for a designated official in each military
        department to exercise responsibility for the management of the
        procurement of services for such department;
            ``(B) provide for a designated official for Defense Agencies
        and other defense components outside the military departments to
        exercise responsibility for the management of the procurement of
        services for such Defense Agencies and components;
            ``(C) include a means by which employees of the departments,
        Defense Agencies, and components are accountable to such designated
        officials for carrying out the requirements of subsection (b); and
            ``(D) establish specific dollar thresholds and other criteria
        for advance approvals of purchases under subsection (b)(1)(C) and
        delegations of activity under subsection (b)(2).
        ``(b) Contracting Responsibilities of Designated Officials.--(1)
    The responsibilities of an official designated under subsection (a)
    shall include, with respect to the procurement of services for the
    military department or Defense Agencies and components by that
    official, the following:
            ``(A) Ensuring that the services are procured by means of
        contracts or task orders that are in the best interests of the
        Department of Defense and are entered into or issued and managed in
        compliance with applicable statutes, regulations, directives, and
        other requirements, regardless of whether the services are procured
        through a contract or task order of the Department of Defense or
        through a contract entered into or task order issued by an official
        of the United States outside the Department of Defense.
            ``(B) Analyzing data collected under section 2330a of this
        title on contracts that are entered into for the procurement of
        services.
            ``(C) Approving, in advance, any procurement of services above
        the thresholds established pursuant to subsection (a)(2)(D) that is
        to be made through the use of--
                ``(i) a contract or task order that is not a performance-
            based contract or task order; or
                ``(ii) a contract entered into, or a task order issued, by
            an official of the United States outside the Department of
            Defense.
        ``(2) The responsibilities of a designated official may be
    delegated to other employees of the Department of Defense in accordance
    with the criteria established by the Secretary of Defense.
        ``(c) Definition.--In this section, the term `performance-based',
    with respect to a contract or a task order means that the contract or
    task order, respectively, includes the use of performance work
    statements that set forth requirements in clear, specific, and
    objective terms with measurable outcomes.''.
        (2) Not later than 180 days after the date of the enactment of this
    Act--
            (A) the Secretary of Defense shall establish and implement the
        management structure required under section 2330 of title 10,
        United States Code (as added by paragraph (1)); and
            (B) the Under Secretary of Defense for Acquisition, Technology,
        and Logistics shall issue guidance for officials in the management
        structure established under such section 2330 regarding how to
        carry out their responsibilities under that section.
        (c) Tracking of Procurement of Services.--Chapter 137 of title 10,
    United States Code, as amended by subsection (b), is further amended by
    inserting after section 2330 the following new section:
    ``Sec. 2330a. Procurement of services: tracking of purchases
        ``(a) Data Collection Required.--The Secretary of Defense shall
    establish a data collection system to provide management information
    with regard to each purchase of services by a military department or
    Defense Agency in excess of the simplified acquisition threshold,
    regardless of whether such a purchase is made in the form of a
    contract, task order, delivery order, military interdepartmental
    purchase request, or any other form of interagency agreement.
        ``(b) Data To Be Collected.--The data required to be collected
    under subsection (a) includes the following:
            ``(1) The services purchased.
            ``(2) The total dollar amount of the purchase.
            ``(3) The form of contracting action used to make the purchase.
            ``(4) Whether the purchase was made through--
                ``(A) a performance-based contract, performance-based task
            order, or other performance-based arrangement that contains
            firm fixed prices for the specific tasks to be performed;
                ``(B) any other performance-based contract, performance-
            based task order, or performance-based arrangement; or
                ``(C) any contract, task order, or other arrangement that
            is not performance based.
            ``(5) In the case of a purchase made through an agency other
        than the Department of Defense, the agency through which the
        purchase is made.
            ``(6) The extent of competition provided in making the purchase
        and whether there was more than one offer.
            ``(7) Whether the purchase was made from--
                ``(A) a small business concern;
                ``(B) a small business concern owned and controlled by
            socially and economically disadvantaged individuals; or
                ``(C) a small business concern owned and controlled by
            women.
        ``(c) Compatibility With Data Collection System for Information
    Technology Purchases.--To the maximum extent practicable, a single data
    collection system shall be used to collect data under this section and
    information under section 2225 of this title.
        ``(d) Definitions.--In this section:
            ``(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 weapon systems by the Department of Defense.
        (2) The program review structure for the procurement of services
    shall, at a minimum, include the following:
            (A) Standards for determining which procurements should be
        subject to review by either the senior procurement executive of a
        military department or the senior procurement executive of the
        Department of Defense under such section, including criteria based
        on dollar thresholds, program criticality, or other appropriate
        measures.
            (B) Appropriate key decision points at which those reviews
        should take place.
            (C) A description of the specific matters that should be
        reviewed.
        (e) Comptroller 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. Procurement of services: contracts for professional and
         technical services''.
        (2) The table of sections at the beginning of chapter 137 of such
    title is amended by striking the item relating to section 2331 and
    inserting the following new items:
    ``2330.  Procurement of services: management structure.
    ``2330a.Procurement of services: tracking of purchases.
    ``2331.  Procurement of services: contracts for professional and
              technical services.''.
        SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.
        (a) Goals.--(1) It shall be an objective of the Department of
    Defense to achieve savings in expenditures for procurements of services
    through the use of--
            (A) performance-based services contracting;
            (B) appropriate competition for task orders under services
        contracts; and
            (C) program review, spending analyses, and improved management
        of services contracts.
        (2) In furtherance of such objective, the Department of Defense
    shall have goals to use improved management practices to achieve, over
    10 fiscal years, reductions in the total amount that would otherwise be
    expended by the Department for the procurement of services (other than
    military construction) in a fiscal year by the amount equal to 10
    percent of the total amount of the expenditures of the Department for
    fiscal year 2000 for procurement of services (other than military
    construction), as follows:
            (A) By fiscal year 2002, a three percent reduction.
            (B) By fiscal year 2003, a four percent reduction.
            (C) By fiscal year 2004, a five percent reduction.
            (D) By fiscal year 2011, a ten percent reduction.
        (b) Annual Report.--Not later than March 1, 2002, and annually
    thereafter through March 1, 2006, the Secretary of Defense shall submit
    to the congressional defense committees a report on the progress made
    toward meeting the objective and goals established in subsection (a).
    Each report shall include, at a minimum, the following information:
            (1) A summary of the steps taken or planned to be taken in the
        fiscal year of the report to improve the management of procurements
        of services.
            (2) A summary of the steps planned to be taken in the following
        fiscal year to improve the management of procurements of services.
            (3) An estimate of the amount that will be expended by the
        Department of Defense for procurements of services in the fiscal
        year of the report.
            (4) An estimate of the amount that will be expended by the
        Department of Defense for procurements of services in the following
        fiscal year.
            (5) An estimate of the amount of savings that, as a result of
        improvement of the management practices used by the Department of
        Defense, will be achieved for the procurement of services by the
        Department in the fiscal year of the report and in the following
        fiscal year.
        SEC. 803. COMPETITION REQUIREMENT FOR PURCHASE OF SERVICES 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
    services by the Department of Defense pursuant to multiple award
    contracts.
        (b) Content of Regulations.--(1) The regulations required by
    subsection (a) shall provide, at a minimum, that each individual
    purchase of services in excess of $100,000 that is made under a
    multiple award contract shall be made on a competitive basis unless a
    contracting officer of the Department of Defense--
            (A) waives the requirement on the basis of a determination
        that--
                (i) one of the circumstances described in paragraphs (1)
            through (4) of section 2304c(b) of title 10, United States
            Code, applies to such individual purchase; or
                (ii) a statute expressly authorizes or requires that the
            purchase be made from a specified source; and
            (B) justifies the determination in writing.
        (2) For purposes of this subsection, an individual purchase of
    services is made on a competitive basis only if it is made pursuant to
    procedures that--
            (A) require fair notice of the intent to make that purchase
        (including a description of the work to be performed and the basis
        on which the selection will be made) to be provided to all
        contractors offering such services under the multiple award
        contract; and
            (B) afford all contractors responding to the notice a fair
        opportunity to make an offer and have that offer fairly considered
        by the official making the purchase.
        (3) Notwithstanding paragraph (2), notice may be provided to fewer
    than all contractors offering such services under a multiple award
    contract described in subsection (c)(2)(A) if notice is provided to as
    many contractors as practicable.
        (4) A purchase may not be made pursuant to a notice that is
    provided to fewer than all contractors under paragraph (3) unless--
            (A) offers were received from at least three qualified
        contractors; or
            (B) a contracting officer of the Department of Defense
        determines in writing that no additional qualified contractors were
        able to be identified despite reasonable efforts to do so.
        (c) Definitions.--In this section:
            (1) The term ``individual purchase'' means a task order,
        delivery order, or other purchase.
            (2) The term ``multiple award contract'' means--
                (A) a contract that is entered into by the Administrator of
            General Services under the multiple award schedule program
            referred to in section 2302(2)(C) of title 10, United States
            Code;
                (B) a multiple award task order contract that is entered
            into under the authority of sections 2304a through 2304d of
            title 10, United States Code, or sections 303H through 303K of
            the Federal Property and Administrative Services Act of 1949
            (41 U.S.C. 253h through 253k); and
                (C) any other indefinite delivery, indefinite quantity
            contract that is entered into by the head of a Federal agency
            with two or more sources pursuant to the same solicitation.
            (3) The term ``Defense Agency'' has the meaning given that term
        in section 101(a)(11) of title 10, United States Code.
        (d) Applicability.--The regulations promulgated by the Secretary
    pursuant to subsection (a) shall take effect not later than 180 days
    after the date of the enactment of this Act and shall apply to all
    individual purchases of services that are made under multiple award
    contracts on or after the effective date, without regard to whether the
    multiple award contracts were entered into before, on, or after such
    effective date.
        SEC. 804. REPORTS ON MATURITY OF TECHNOLOGY AT INITIATION OF MAJOR
          DEFENSE ACQUISITION PROGRAMS.
        (a) Reports Required.--Not later than March 1 of each of years 2003
    through 2006, the Secretary of Defense shall submit to the Committees
    on Armed Services of the Senate and the House of Representatives a
    report on the implementation of the requirement in paragraph
    4.7.3.2.2.2 of Department of Defense Instruction 5000.2, as in effect
    on the date of enactment of this Act, that technology must have been
    demonstrated in a relevant environment (or, preferably, in an
    operational environment) to be considered mature enough to use for
    product development in systems integration.
        (b) Contents of Reports.--Each report required by subsection (a)
    shall--
            (1) identify each case in which a major defense acquisition
        program entered system development and demonstration during the
        preceding calendar year and into which key technology has been
        incorporated that does not meet the technological maturity
        requirement described in subsection (a), and provide a
        justification for why such key technology was incorporated; and
            (2) identify any determination of technological maturity with
        which the Deputy Under Secretary of Defense for Science and
        Technology did not concur and explain how the issue has been or
        will be resolved.
        (c) Major Defense Acquisition Program Defined.--In this section,
    the term ``major defense acquisition program'' has the meaning given
    that term in section 139(a)(2) of title 10, United States Code.

                      Subtitle B--Use of Preferred Sources

        SEC. 811. APPLICABILITY OF COMPETITION REQUIREMENTS TO PURCHASES
          FROM A REQUIRED SOURCE.
        (a) Conditions for Competition.--(1) Chapter 141 of title 10,
    United States Code, is amended by adding at the end the following:
    ``Sec. 2410n. Products of Federal Prison Industries: procedural
          requirements
        ``(a) Market Research Before Purchase.--Before purchasing a product
    listed in the latest edition of the Federal Prison Industries catalog
    under section 4124(d) of title 18, the Secretary of Defense shall
    conduct market research to determine whether the Federal Prison
    Industries product is comparable in price, quality, and time of
    delivery to products available from the private sector.
        ``(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. 812. EXTENSION OF MENTOR-PROTEGE PROGRAM.

        Section 831 of the National Defense Authorization Act for Fiscal
    Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) is amended--
            (1) in subsection (j)--
                (A) in paragraph (1), by striking ``September 30, 2002''
            and inserting ``September 30, 2005''; and
                (B) in paragraph (2), by striking ``September 30, 2005''
            and inserting ``September 30, 2008''; and
            (2) in subsection (l)(3), by striking ``2004'' and inserting
        ``2007''.
        SEC. 813. INCREASE OF ASSISTANCE LIMITATION REGARDING PROCUREMENT
          TECHNICAL ASSISTANCE PROGRAM.
        Section 2414(a)(1) of title 10, United States Code, is amended by
    striking ``$300,000'' and inserting ``$600,000''.

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

        SEC. 821. AMENDMENTS TO CONFORM WITH ADMINISTRATIVE CHANGES IN
          ACQUISITION PHASE AND MILESTONE TERMINOLOGY AND TO MAKE RELATED
          ADJUSTMENTS IN CERTAIN REQUIREMENTS APPLICABLE AT MILESTONE
          TRANSITION POINTS.
        (a) Acquisition Phase Terminology.--The following provisions of
    title 10, United States Code, are amended by striking ``engineering and
    manufacturing development'' each place it appears and inserting
    ``system development and demonstration'': sections 2366(c) and 2434(a),
    and subsections (b)(3)(A)(i), (c)(3)(A), and (h)(1) of section 2432.
        (b) Milestone Transition Points.--(1) Section 811(c) of the Floyd
    D. Spence National Defense Authorization Act for Fiscal Year 2001 (as
    enacted into law by Public Law 106-398; 114 Stat. 1654A-211), is
    amended by striking ``Milestone I approval, Milestone II approval, or
    Milestone III approval (or the equivalent) of a major automated
    information system'' and inserting ``approval of a major automated
    information system at Milestone B or C or for full rate production, or
    an equivalent approval,''.
        (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. 822. FOLLOW-ON PRODUCTION CONTRACTS FOR PRODUCTS DEVELOPED
          PURSUANT TO PROTOTYPE PROJECTS.
        Section 845 of the National Defense Authorization Act for Fiscal
    Year 1994 (10 U.S.C. 2371 note) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new
        subsection (f):
        ``(f) Follow-On Production Contracts.--(1) A transaction entered
    into under this section for a prototype project that satisfies the
    conditions set forth in subsection (d)(1)(B)(i) may provide for the
    award of a follow-on production contract to the participants in the
    transaction for a specific number of units at specific target prices.
    The number of units specified in the transaction shall be determined on
    the basis of a balancing of the level of the investment made in the
    project by the participants other than the Federal Government with the
    interest of the Federal Government in having competition among sources
    in the acquisition of the product or products prototyped under the
    project.
        ``(2) A follow-on production contract provided for in a transaction
    under paragraph (1) may be awarded to the participants in the
    transaction without the use of competitive procedures, notwithstanding
    the requirements of section 2304 of title 10, United States Code, if--
            ``(A) competitive procedures were used for the selection of
        parties for participation in the transaction;
            ``(B) the participants in the transaction successfully
        completed the prototype project provided for in the transaction;
            ``(C) the number of units provided for in the follow-on
        production contract does not exceed the number of units specified
        in the transaction for such a follow-on production contract; and
            ``(D) the prices established in the follow-on production
        contract do not exceed the target prices specified in the
        transaction for such a follow-on production contract.''.
        SEC. 823. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED
          PROCEDURES TO CERTAIN COMMERCIAL ITEMS.
        Section 4202 of the Clinger-Cohen Act of 1996 (divisions D and E of
    Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended in
    subsection (e) by striking ``January 1, 2002'' and inserting ``January
    1, 2003''.

    SEC. 824. ACQUISITION WORKFORCE QUALIFICATIONS.

        (a) Qualifications.--Section 1724 of title 10, United States Code,
    is amended--
            (1) in subsection (a)--
                (A) by striking the matter preceding paragraph (1) and
            inserting the following:
        ``(a) Contracting Officers.--The Secretary of Defense shall require
    that, in order to qualify to serve in an acquisition position as a
    contracting officer with authority to award or administer contracts for
    amounts above the simplified acquisition threshold referred to in
    section 2304(g) of this title, an employee of the Department of Defense
    or member of the armed forces (other than the Coast Guard) must, except
    as provided in subsections (c) and (d)--'';
                (B) in paragraph (1)--
                    (i) by striking ``mandatory''; and
                    (ii) by striking ``at the grade level'' and all that
                follows and inserting ``(A) in the case of an employee,
                serving in the position within the grade of the General
                Schedule in which the employee is serving, and (B) in the
                case of a member of the armed forces, in the member's
                grade;''; and
                (C) in paragraph (3)(A), by inserting a comma after
            ``business'';
            (2) by striking subsection (b) and inserting the following new
        subsection:
        ``(b) GS-1102 Series Positions and Similar Military Positions.--(1)
    The Secretary of Defense shall require that in order to qualify to
    serve in a position in the Department of Defense that is in the GS-1102
    occupational series an employee or potential employee of the Department
    of Defense meet the requirements set forth in paragraph (3) of
    subsection (a). The Secretary may not require that in order to serve in
    such a position an employee or potential employee meet any of the
    requirements of paragraphs (1) and (2) of that subsection.
        ``(2) The Secretary of Defense shall require that in order for a
    member of the armed forces to be selected for an occupational specialty
    within the armed forces that (as determined by the Secretary) is
    similar to the GS-1102 occupational series a member of the armed forces
    meet the requirements set forth in paragraph (3) of subsection (a). The
    Secretary may not require that in order to be selected for such an
    occupational specialty a member meet any of the requirements of
    paragraphs (1) and (2) of that subsection.''; and
            (3) by striking subsections (c) and (d) inserting the following
        new subsections:
        ``(c) Exceptions.--The qualification requirements imposed by the
    Secretary of Defense pursuant to subsections (a) and (b) shall not
    apply to an employee of the Department of Defense or member of the
    armed forces who--
            ``(1) served as a contracting officer with authority to award
        or administer contracts in excess of the simplified acquisition
        threshold on or before September 30, 2000;
            ``(2) served, on or before September 30, 2000, in a position
        either as an employee in the GS-1102 series or as a member of the
        armed forces in a similar occupational specialty;
            ``(3) is in the contingency contracting force; or
            ``(4) is described in subsection (e)(1)(B).
        ``(d) Waiver.--The acquisition career program board concerned may
    waive any or all of the requirements of subsections (a) and (b) with
    respect to an employee of the Department of Defense or member of the
    armed forces if the board certifies that the individual possesses
    significant potential for advancement to levels of greater
    responsibility and authority, based on demonstrated job performance and
    qualifying experience. With respect to each waiver granted under this
    subsection, the board shall set forth in a written document the
    rationale for its decision to waive such requirements. Such document
    shall be submitted to and retained by the Director of Acquisition
    Education, Training, and Career Development.
        ``(e) Developmental Opportunities.--(1) The Secretary of Defense
    may--
            ``(A) establish or continue one or more programs for the
        purpose of recruiting, selecting, appointing, educating,
        qualifying, and developing the careers of individuals to meet the
        requirements in subparagraphs (A) and (B) of subsection (a)(3);
            ``(B) appoint individuals to developmental positions in those
        programs; and
            ``(C) separate from the civil service after a three-year
        probationary period any individual appointed under this subsection
        who fails to meet the requirements described in subsection (a)(3).
        ``(2) To qualify for any developmental program described in
    paragraph (1)(B), an individual shall have--
            ``(A) been awarded a baccalaureate degree, with a grade point
        average of at least 3.0 (or the equivalent), from an accredited
        institution of higher education authorized to grant baccalaureate
        degrees; or
            ``(B) completed at least 24 semester credit hours or the
        equivalent of study from an accredited institution of higher
        education in any of the disciplines of accounting, business,
        finance, law, contracts, purchasing, economics, industrial
        management, marketing, quantitative methods, or organization and
        management.
        ``(f) Contingency Contracting Force.--The Secretary shall establish
    qualification requirements for the contingency contracting force
    consisting of members of the armed forces whose mission is to deploy in
    support of contingency operations and other operations of the
    Department of Defense, including--
            ``(1) completion of at least 24 semester credit hours or the
        equivalent of study from an accredited institution of higher
        education or similar educational institution in any of the
        disciplines of accounting, business, finance, law, contracts,
        purchasing, economics, industrial management, marketing,
        quantitative methods, or organization and management; or
            ``(2) passing an examination that demonstrates skills,
        knowledge, or abilities comparable to that of an individual who has
        completed at least 24 semester credit hours or the equivalent of
        study in any of the disciplines described in paragraph (1).''.
        (b) Clerical Amendment.--Section 1732(c)(2) of such title is
    amended by inserting a comma after ``business''.
        SEC. 825. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE
          ACQUISITION 2005 TASK FORCE.
        (a) Requirement 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.

                           Subtitle D--Other Matters

        SEC. 831. IDENTIFICATION OF ERRORS MADE BY EXECUTIVE AGENCIES IN
          PAYMENTS TO CONTRACTORS AND RECOVERY OF AMOUNTS ERRONEOUSLY PAID.
        (a) Program Required.--(1) Chapter 35 of title 31, United States
    Code, is amended by adding at the end the following new subchapter:

                        ``SUBCHAPTER VI--RECOVERY AUDITS

    ``Sec. 3561. Identification of errors made by executive agencies in
         payments to contractors and recovery of amounts erroneously paid
        ``(a) Program Required.--The head of each executive agency that
    enters into contracts with a total value in excess of $500,000,000 in a
    fiscal year shall carry out a cost-effective program for identifying
    any errors made in paying the contractors and for recovering any
    amounts erroneously paid to the contractors.
        ``(b) Recovery Audits and Activities.--A program of an executive
    agency under subsection (a) shall include recovery audits and recovery
    activities. The head of the executive agency shall determine, in
    accordance with guidance provided under subsection (c), the classes of
    contracts to which recovery audits and recovery activities are
    appropriately applied.
        ``(c) OMB Guidance.--The Director of the Office of Management and
    Budget shall issue guidance for the conduct of programs under
    subsection (a). The guidance shall include the following:
            ``(1) Definitions of the terms `recovery audit' and `recovery
        activity' for the purposes of the programs.
            ``(2) The classes of contracts to which recovery audits and
        recovery activities are appropriately applied under the programs.
            ``(3) Protections for the confidentiality of--
                ``(A) sensitive financial information that has not been
            released for use by the general public; and
                ``(B) information that could be used to identify a person.
            ``(4) Policies and procedures for ensuring that the
        implementation of the programs does not result in duplicative
        audits of contractor records.
            ``(5) Policies regarding the types of contracts executive
        agencies may use for the procurement of recovery services,
        including guidance for use, in appropriate circumstances, of a
        contingency contract pursuant to which the head of an executive
        agency may pay a contractor an amount equal to a percentage of the
        total amount collected for the United States pursuant to that
        contract.
            ``(6) Protections for a contractor's records and facilities
        through restrictions on the authority of a contractor under a
        contract for the procurement of recovery services for an executive
        agency--
                ``(A) to require the production of any record or
            information by any person other than an officer, employee, or
            agent of the executive agency;
                ``(B) to establish, or otherwise have, a physical presence
            on the property or premises of any private sector entity for
            the purposes of performing the contract; or
                ``(C) to act as agents for the Government in the recovery
            of funds erroneously paid to contractors.
            ``(7) Policies for the appropriate types of management
        improvement programs authorized by section 3564 of this title that
        executive agencies may carry out to address overpayment problems
        and the recovery of overpayments.
    ``Sec. 3562. Disposition of recovered funds
        ``(a) Availability of Funds for Recovery Audits and Activities
    Program.--Funds collected under a program carried out by an executive
    agency under section 3561 of this title shall be available to the
    executive agency for the following purposes:
            ``(1) To reimburse the actual expenses incurred by the
        executive agency in the administration of the program.
            ``(2) To pay contractors for services under the program in
        accordance with the guidance issued under section 3561(c)(5) of
        this title.
        ``(b) Funds Not Used for Program.--Any amounts erroneously paid by
    an executive agency that are recovered under such a program of an
    executive agency and are not used to reimburse expenses or pay
    contractors under subsection (a)--
            ``(1) shall be credited to the appropriations from which the
        erroneous payments were made, shall be merged with other amounts in
        those appropriations, and shall be available for the purposes and
        period for which such appropriations are available; or
            ``(2) if no such appropriation remains available, shall be
        deposited in the Treasury as miscellaneous receipts.
        ``(c) Priority of Other Authorized Dispositions.--Notwithstanding
    subsection (b), the authority under such subsection may not be
    exercised to use, credit, or deposit funds collected under such a
    program as provided in that subsection to the extent that any other
    provision of law requires or authorizes the crediting of such funds to
    a nonappropriated fund instrumentality, revolving fund, working-capital
    fund, trust fund, or other fund or account.

    ``Sec. 3563. Sources of recovery services

        ``(a) Consideration of Available Recovery Resources.--(1) In
    carrying out a program under section 3561 of this title, the head of an
    executive agency shall consider all resources available to that
    official to carry out the program.
        ``(2) The resources considered by the head of an executive agency
    for carrying out the program shall include the resources available to
    the executive agency for such purpose from the following sources:
            ``(A) The executive agency.
            ``(B) Other departments and agencies of the United States.
            ``(C) Private sector sources.
        ``(b) Compliance With Applicable Law and Regulations.--Before
    entering into a contract with a private sector source for the
    performance of services under a program of the executive agency carried
    out under section 3561 of this title, the head of an executive agency
    shall comply with--
            ``(1) any otherwise applicable provisions of Office of
        Management and Budget Circular A-76; and
            ``(2) any other applicable provision of law or regulation with
        respect to the selection between employees of the United States and
        private sector sources for the performance of services.

    ``Sec. 3564. Management improvement programs

        ``In accordance with guidance provided by the Director of the
    Office of Management and Budget under section 3561 of this title, the
    head of an executive agency required to carry out a program under such
    section 3561 may carry out a program for improving management processes
    within the executive agency--
            ``(1) to address problems that contribute directly to the
        occurrence of errors in the paying of contractors of the executive
        agency; or
            ``(2) to improve the recovery of overpayments due to the
        agency.
    ``Sec. 3565. Relationship to authority of inspectors general
        ``Nothing in this subchapter shall be construed as impairing the
    authority of an Inspector General under the Inspector General Act of
    1978 or any other provision of law.

    ``Sec. 3566. Privacy protections

        ``Any nongovernmental entity that, in the course of recovery
    auditing or recovery activity under this subchapter, obtains
    information that identifies an individual or with respect to which
    there is a reasonable basis to believe that the information can be used
    to identify an individual, may not disclose the information for any
    purpose other than such recovery auditing or recovery activity and
    governmental oversight of such activity, unless disclosure for that
    other purpose is authorized by the individual to the executive agency
    that contracted for the performance of the recovery auditing or
    recovery activity.

    ``Sec. 3567. Definition of executive agency

        ``Notwithstanding section 102 of this title, in this subchapter,
    the term `executive agency' has the meaning given that term in section
    4(1) of the Office of Federal Procurement Policy Act (41 U.S.C.
    403(1)).''.
        (2) The table of sections at the beginning of chapter 35 of such
    title is amended by adding at the end the following:

                        ``SUBCHAPTER VI--RECOVERY AUDITS

    ``3561. Identification of errors made by executive agencies in payments
    to contractors and recovery of amounts erroneously paid.

    ``3562. Disposition of recovered funds.

    ``3563. Sources of recovery services.

    ``3564. Management improvement programs.

    ``3565. Relationship to authority of inspectors general.

    ``3566. Privacy protections.

    ``3567. Definition of executive agency.''.

        (b) Reports.--(1) Not later than 30 months after the date of the
    enactment of this Act, and annually for each of the first two years
    following the year of the first report, the Director of the Office of
    Management and Budget shall submit to the Committee on Government
    Reform of the House of Representatives and the Committee on
    Governmental Affairs of the Senate, a report on the implementation of
    subchapter VI of chapter 35 of title 31, United States Code (as added
    by subsection (a)).
        (2) Each report shall include--
            (A) a general description and evaluation of the steps taken by
        the heads of executive agencies to carry out the programs under
        such subchapter, including any management improvement programs
        carried out under section 3564 of such title 31;
            (B) the costs incurred by executive agencies to carry out the
        programs under such subchapter; and
            (C) the amounts recovered under the programs under such
        subchapter.
        (c) Conforming Amendment.--Section 3501 of such title is amended by
    inserting ``and subchapter VI'' after ``section 3513''.
        SEC. 832. CODIFICATION AND MODIFICATION OF PROVISION OF LAW KNOWN
          AS THE ``BERRY AMENDMENT''.
        (a) Buy American Requirements.--(1) Chapter 148 of title 10, United
    States Code, is amended by inserting after section 2533 the following
    new section:
    ``Sec. 2533a. Requirement to buy certain articles from American
          sources; exceptions
        ``(a) Requirement.--Except as provided in subsections (c) through
    (h), funds appropriated or otherwise available to the Department of
    Defense may not be used for the procurement of an item described in
    subsection (b) if the item is not grown, reprocessed, reused, or
    produced in the United States.
        ``(b) Covered Items.--An item referred to in subsection (a) is any
    of the following:
            ``(1) An article or item of--
                ``(A) food;
                ``(B) clothing;
                ``(C) tents, tarpaulins, or covers;
                ``(D) cotton and other natural fiber products, woven silk
            or woven silk blends, spun silk yarn for cartridge cloth,
            synthetic fabric or coated synthetic fabric (including all
            textile fibers and yarns that are for use in such fabrics),
            canvas products, or wool (whether in the form of fiber or yarn
            or contained in fabrics, materials, or manufactured articles);
            or
                ``(E) any item of individual equipment manufactured from or
            containing such fibers, yarns, fabrics, or materials.
            ``(2) Specialty metals, including stainless steel flatware.
            ``(3) Hand or measuring tools.
        ``(c) Availability Exception.--Subsection (a) does not apply to the
    extent that the Secretary of Defense or the Secretary of the military
    department concerned determines that satisfactory quality and
    sufficient quantity of any such article or item described in subsection
    (b)(1) or specialty metals (including stainless steel flatware) grown,
    reprocessed, reused, or produced in the United States cannot be
    procured as and when needed at United States market prices.
        ``(d) Exception for Certain Procurements Outside the United
    States.--Subsection (a) does not apply to the following:
            ``(1) Procurements outside the United States in support of
        combat operations.
            ``(2) Procurements by vessels in foreign waters.
            ``(3) Emergency procurements or procurements of perishable
        foods by an establishment located outside the United States for the
        personnel attached to such establishment.
        ``(e) Exception for Specialty Metals and Chemical Warfare
    Protective Clothing.--Subsection (a) does not preclude the procurement
    of specialty metals or chemical warfare protective clothing produced
    outside the United States if--
            ``(1) such procurement is necessary--
                ``(A) to comply with agreements with foreign governments
            requiring the United States to purchase supplies from foreign
            sources for the purposes of offsetting sales made by the United
            States Government or United States firms under approved
            programs serving defense requirements; or
                ``(B) in furtherance of agreements with foreign governments
            in which both such governments agree to remove barriers to
            purchases of supplies produced in the other country or services
            performed by sources of the other country; and
            ``(2) any such agreement with a foreign government complies,
        where applicable, with the requirements of section 36 of the Arms
        Export Control Act (22 U.S.C. 2776) and with section 2457 of this
        title.
        ``(f) Exception for Certain Foods.--Subsection (a) does not
    preclude the procurement of foods manufactured or processed in the
    United States.
        ``(g) Exception for Commissaries, Exchanges, and Other
    Nonappropriated Fund Instrumentalities.--Subsection (a) does not apply
    to items purchased for resale purposes in commissaries, exchanges, or
    nonappropriated fund instrumentalities operated by the Department of
    Defense.
        ``(h) Exception for Small Purchases.--Subsection (a) does not apply
    to purchases for amounts not greater than the simplified acquisition
    threshold referred to in section 2304(g) of this title.
        ``(i) Applicability to Contracts and Subcontracts for Procurement
    of Commercial Items.--This section is applicable to contracts and
    subcontracts for the procurement of commercial items notwithstanding
    section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
    430).
        ``(j) Geographic Coverage.--In this section, the term `United
    States' includes the possessions of the United States.''.
        (2) The table of sections at the beginning of subchapter V of such
    chapter is amended by inserting after the item relating to section 2533
    the following new item:

    ``2533a. Requirement to buy certain articles from American sources;
    exceptions.''.

        (b) Repeal of Source Provisions.--The following provisions of law
    are repealed:
            (1) Section 9005 of the Department of Defense Appropriations
        Act, 1993 (Public Law 102-396; 10 U.S.C. 2241 note).
            (2) Section 8109 of the Department of Defense Appropriations
        Act, 1997 (as contained in section 101(b) of Public Law 104-208;
        110 Stat. 3009-111; 10 U.S.C. 2241 note).
        SEC. 833. PERSONAL SERVICES CONTRACTS TO BE PERFORMED BY
          INDIVIDUALS OR ORGANIZATIONS ABROAD.
        Section 2 of the State Department Basic Authorities Act of 1956 (22
    U.S.C. 2669) is amended by adding at the end the following:
            ``(n) exercise the authority provided in subsection (c), upon
        the request of the Secretary of Defense or the head of any other
        department or agency of the United States, to enter into personal
        service contracts with individuals to perform services in support
        of the Department of Defense or such other department or agency, as
        the case may be.''.
        SEC. 834. REQUIREMENTS REGARDING INSENSITIVE MUNITIONS.
        (a) Requirement To Ensure Safety.--(1) Chapter 141 of title 10,
    United States Code, is amended by inserting after section 2388 the
    following new section:
    ``Sec. 2389. Ensuring safety regarding insensitive munitions
        ``The Secretary of Defense shall ensure, to the extent practicable,
    that insensitive munitions under development or procurement are safe
    throughout development and fielding when subject to unplanned
    stimuli.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2388 the
    following new item:
    ``2389. Ensuring safety regarding insensitive munitions.''.

        (b) Report Requirement.--At the same time that the budgets for
    fiscal years 2003 through 2005 are submitted to Congress under section
    1105(a) of title 31, United States Code, the Secretary of Defense shall
    submit to the Committees on Armed Services of the Senate and the House
    of Representatives a report on insensitive munitions. The reports shall
    include the following:
            (1) The number of waivers granted pursuant to Department of
        Defense Regulation 5000.2-R (June 2001) during the preceding fiscal
        year, together with a discussion of the justifications for the
        waivers.
            (2) Identification of the funding proposed for insensitive
        munitions in the budget with which the report is submitted,
        together with an explanation of the proposed funding.
        SEC. 835. INAPPLICABILITY OF LIMITATION TO SMALL PURCHASES OF
          MINIATURE OR INSTRUMENT BALL OR ROLLER BEARINGS UNDER CERTAIN
          CIRCUMSTANCES.
        (a) In General.--Section 2534 of title 10, United States Code, is
    amended by adding at the end the following new subsection:
        ``(j) Inapplicability to Certain Contracts To Purchase Ball
    Bearings or Roller Bearings.--(1) This section does not apply with
    respect to a contract or subcontract to purchase items described in
    subsection (a)(5) (relating to ball bearings and roller bearings) for
    which--
            ``(A) the amount of the purchase does not exceed $2,500;
            ``(B) the precision level of the ball or roller bearings to be
        procured under the contract or subcontract is rated lower than the
        rating known as Annual Bearing Engineering Committee (ABEC) 5 or
        Roller Bearing Engineering Committee (RBEC) 5, or an equivalent of
        such rating;
            ``(C) at least two manufacturers in the national technology and
        industrial base that are capable of producing the ball or roller
        bearings have not responded to a request for quotation issued by
        the contracting activity for that contract or subcontract; and
            ``(D) no bearing to be procured under the contract or
        subcontract has a basic outside diameter (exclusive of flange
        diameters) in excess of 30 millimeters.
        ``(2) Paragraph (1) does not apply to a purchase if such purchase
    would result in the total amount of purchases of ball bearings and
    roller bearings to satisfy requirements under Department of Defense
    contracts, using the authority provided in such paragraph, to exceed
    $200,000 during the fiscal year of such purchase.''.
        (b) Applicability.--Subsection (j) of such section 2534 (as added
    by subsection (a)) shall apply with respect to a contract or
    subcontract to purchase ball bearings or roller bearings entered into
    after the date of the enactment of this Act.
        SEC. 836. TEMPORARY EMERGENCY PROCUREMENT AUTHORITY TO FACILITATE
          THE DEFENSE AGAINST TERRORISM OR BIOLOGICAL OR CHEMICAL ATTACK.
        (a) Increased Flexibility for Use of Streamlined Procedures.--The
    following special authorities apply to procurements of property and
    services by or for the Department of Defense for which funds are
    obligated during fiscal year 2002 and 2003:
            (1) Micropurchase and simplified acquisition thresholds.--For
        any procurement of property or services for use (as determined by
        the Secretary of Defense) to facilitate the defense against
        terrorism or biological or chemical attack against the United
        States--
                (A) the amount specified in subsections (c), (d), and (f)
            of section 32 of the Office of Federal Procurement Policy Act
            (41 U.S.C. 428) shall be deemed to be $15,000 in the
            administration of that section with respect to such
            procurement; and
                (B) the term ``simplified acquisition threshold'' means, in
            the case of any contract to be awarded and performed, or
            purchase to be made--
                    (i) inside the United States in support of a
                contingency operation, $250,000; or
                    (ii) outside the United States in support of a
                contingency operation, $500,000.
            (2) Commercial item treatment for procurements of
        biotechnology.--For any procurement of biotechnology property or
        biotechnology services for use (as determined by the Secretary of
        Defense) to facilitate the defense against terrorism or biological
        attack against the United States, the procurement shall be treated
        as being a procurement of commercial items.
        (b) Recommendations for Additional Emergency Procurement Authority
    To Support Anti-Terrorism Operations.--Not later than March 1, 2002,
    the Secretary of Defense shall submit to the Committees on Armed
    Services of the Senate and the House of Representatives a report
    containing the Secretary's recommendations for additional emergency
    procurement authority that the Secretary (subject to the direction of
    the President) determines necessary to support operations carried out
    to combat terrorism.
        (c) Termination of Authority.--No contract may be entered into
    pursuant to the authority provided in subsection (a) after September
    30, 2003.

          TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

                          Subtitle B--Space Activities

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

                               Subtitle C--Reports

    Sec. 921. Revised requirement for Chairman of the Joint Chiefs of Staff
              to advise Secretary of Defense on the assignment of roles and
              missions to the Armed Forces.
    Sec. 922. Revised requirements for content of annual report on joint
              warfighting experimentation.
    Sec. 923. Repeal of requirement for one of three remaining required
              reports on activities of Joint Requirements Oversight Council.
    Sec. 924. Revised joint report on establishment of national
              collaborative information analysis capability.

                            Subtitle D--Other Matters

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

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

        SEC. 901. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND
          READINESS.
        (a) Establishment of Position.--(1) Chapter 4 of title 10, United
    States Code, is amended by inserting after section 136 the following
    new section:
    ``Sec. 136a. Deputy Under Secretary of Defense for Personnel and
         Readiness
        ``(a) 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 ``(9)'' after ``Assistant Secretaries of Defense'' and
    inserting ``(8)''.
        (d) Effective Date.--The amendments made by subsection (c) shall
    take effect on the date on which a person is first appointed as Deputy
    Under Secretary of Defense for Personnel and Readiness.
        SEC. 902. SENSE OF CONGRESS ON FUNCTIONS OF NEW OFFICE OF FORCE
          TRANSFORMATION IN THE OFFICE OF THE SECRETARY OF DEFENSE.
        (a) Findings.--Congress finds the following:
            (1) The Armed Forces should give careful consideration to
        implementing transformation to meet operational challenges and
        exploit opportunities resulting from changes in the threat
        environment and the emergence of new technologies.
            (2) The Department of Defense 2001 Quadrennial Defense Review
        Report, issued by the Secretary of Defense on September 30, 2001,
        states that ``The purpose of transformation is to maintain or
        improve U.S. military preeminence in the face of potential
        disproportionate discontinuous changes in the strategic
        environment. Transformation must therefore be focused on emerging
        strategic and operational challenges and the opportunities created
        by these challenges.''.
            (3) That report further states that ``To support the
        transformation effort, and to foster innovation and
        experimentation, the Department will establish a new office
        reporting directly to the Secretary and Deputy Secretary of
        Defense.''.
        (b) Sense of Congress on Functions of Office of Force
    Transformation.--It is the sense of Congress that the Director of the
    Office of Force Transformation within the Office of the Secretary of
    Defense should advise the Secretary on--
            (1) development of force transformation strategies to ensure
        that the military of the future is prepared to dissuade potential
        military competitors and, if that fails, to fight and win
        decisively across the spectrum of future conflict;
            (2) ensuring a continuous and broadly focused transformation
        process;
            (3) service and joint acquisition and experimentation efforts,
        funding for experimentation efforts, promising operational concepts
        and technologies, and other transformation activities, as
        appropriate; and
            (4) development of service and joint operational concepts,
        transformation implementation strategies, and risk management
        strategies.
        (c) Sense of Congress on Funding.--It is the sense of Congress that
    the Secretary of Defense should consider providing funding adequate for
    sponsoring selective prototyping efforts, war games, and studies and
    analyses and for appropriate staffing, as recommended by the Director
    of the Office of Force Transformation referred to in subsection (b).
        SEC. 903. SUSPENSION OF REORGANIZATION OF ENGINEERING AND TECHNICAL
          AUTHORITY POLICY WITHIN THE NAVAL SEA SYSTEMS COMMAND PENDING
          REPORT TO CONGRESSIONAL COMMITTEES.
        (a) Suspension of Reorganization.--During the period specified in
    subsection (b), the Secretary of the Navy may not grant final approval
    for any reorganization in engineering or technical authority policy for
    the Naval Sea Systems Command or any of the subsidiary activities of
    that command.
        (b) Report.--Subsection (a) applies during the period beginning on
    the date of the enactment of this Act and ending 45 days after the date
    on which the Secretary submits to the congressional defense committees
    a report that sets forth in detail the Navy's plans and justification
    for the reorganization of engineering and technical authority policy
    within the Naval Sea Systems Command.

                          Subtitle B--Space Activities

    SEC. 911. JOINT MANAGEMENT OF SPACE PROGRAMS.

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

                         ``CHAPTER 135--SPACE PROGRAMS

    ``Sec.

    ``2271. Management of space programs: joint program offices and officer
    management programs.

    ``Sec. 2271. Management of space programs: joint program offices and
         officer management programs
        ``(a) Joint Program Offices.--The Secretary of Defense shall take
    appropriate actions to ensure, to the maximum extent practicable, that
    space development and acquisition programs of the Department of Defense
    are carried out through joint program offices.
        ``(b) Officer Management Programs.--(1) The Secretary of Defense
    shall take appropriate actions to ensure, to the maximum extent
    practicable, that--
            ``(A) Army, Navy, and Marine Corps officers, as well as Air
        Force officers, are assigned to the space development and
        acquisition programs of the Department of Defense; and
            ``(B) Army, Navy, and Marine Corps officers, as well as Air
        Force officers, are eligible, on the basis of qualification, to
        hold leadership positions within the joint program offices referred
        to in subsection (a).
        ``(2) The Secretary of Defense shall designate those positions in
    the Office of the National Security Space Architect of the Department
    of Defense (or any successor office) that qualify as joint duty
    assignment positions for purposes of chapter 38 of this title.''.
        (b) Clerical Amendment.--The tables of chapters at the beginning of
    such subtitle and the beginning of part IV of such subtitle are amended
    by inserting after the item relating to chapter 134 the following new
    item:

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

        SEC. 912. REQUIREMENT TO ESTABLISH IN THE AIR FORCE AN OFFICER
          CAREER FIELD FOR SPACE.
        (a) In General.--Chapter 807 of title 10, United States Code, is
    amended by adding at the end the following new section:

    ``Sec. 8084. Officer career field for space

        ``The Secretary of the Air Force shall establish and implement
    policies and procedures to develop a career field for officers in the
    Air Force with technical competence in space-related matters to have
    the capabilty to--
            ``(1) develop space doctrine and concepts of space operations;
            ``(2) develop space systems; and
            ``(3) operate space systems.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:
    ``8084. Officer career field for space.''.
        SEC. 913. SECRETARY OF DEFENSE REPORT ON SPACE ACTIVITIES.
        (a) Report.--(1) Not later than March 15, 2002, the Secretary of
    Defense shall submit to the Committee on Armed Services of the Senate
    and the Committee on Armed Services of the House of Representatives a
    report on problems in the management and organization of the Department
    of Defense for space activities that were identified in the report of
    the Space Commission, including a description of the actions taken by
    the Secretary to address those problems.
        (2) For purposes of paragraph (1), the term ``report of the Space
    Commission'' means the report of the Commission To Assess United States
    National Security Space Management and Organization, dated January 11,
    2001, and submitted to Congress under section 1623 of the National
    Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
    Stat. 815).
        (b) Matters To Be Included.--The report of the Secretary of Defense
    under subsection (a) shall include a description of, and rationale for,
    each of the following:
            (1) Actions taken by the Secretary of Defense to realign
        management authorities and responsibilities for space programs of
        the Department of Defense.
            (2) Steps taken to--
                (A) establish a career field for officers in the Air Force
            with technical competence in space-related matters, in
            accordance with section 8084 of title 10, United States Code,
            as added by section 912;
                (B) ensure that officers in that career field are treated
            fairly and objectively within the overall Air Force officer
            personnel system; and
                (C) ensure that the primary responsibility for management
            of that career field is assigned appropriately.
            (3) Other steps taken within the Air Force to ensure proper
        priority for development of space systems.
            (4) Steps taken to ensure that the interests of the Army, the
        Navy, and the Marine Corps in development and acquisition of space
        systems, and in the operations of space systems, are protected.
            (5) Steps taken by the Office of the Secretary of Defense and
        the military departments to ensure that the Army, Navy, and Marine
        Corps continue to develop military and civilian personnel with the
        required expertise in space system development, acquisition,
        management, and operation.
            (6) Steps taken to ensure adequate oversight by the Office of
        the Secretary of Defense of the actions of the Under Secretary of
        the Air Force as the acquisition executive for Department of
        Defense space programs.
            (7) Steps taken to improve oversight of the level of funding
        provided for space programs and the level of personnel resources
        provided for space programs.
        SEC. 914. COMPTROLLER GENERAL ASSESSMENT OF IMPLEMENTATION OF
          RECOMMENDATIONS OF SPACE COMMISSION.
        (a) Assessment.--(1) The Comptroller General shall carry out an
    assessment through February 15, 2003, of the actions taken by the
    Secretary of Defense in implementing the recommendations in the report
    of the Space Commission that are applicable to the Department of
    Defense.
        (2) For purposes of paragraph (1), the term ``report of the Space
    Commission'' means the report of the Commission To Assess United States
    National Security Space Management and Organization, dated January 11,
    2001, and submitted to Congress under section 1623 of the National
    Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
    Stat. 815).
        (b) Reports.--Not later than February 15 of each of 2002 and 2003,
    the Comptroller General shall submit to the Committee on Armed Services
    of the Senate and the Committee on Armed Services of the House of
    Representatives a report on the assessment carried out under subsection
    (a). Each report shall set forth the results of the assessment as of
    the date of such report.
        SEC. 915. SENSE OF CONGRESS REGARDING OFFICERS RECOMMENDED TO BE
          APPOINTED TO SERVE AS COMMANDER OF UNITED STATES SPACE COMMAND.
        It is the sense of Congress that the position of commander of the
    United States Space Command, a position of importance and
    responsibility designated by the President under section 601 of title
    10, United States Code, to carry the grade of general or admiral and
    covered by section 604 of that title, relating to recommendations by
    the Secretary of Defense for appointment of officers to certain four-
    star joint officer positions, should be filled by the best qualified
    officer of the Army, Navy, Air Force, or Marine Corps, rather than by
    officers from the same armed force that has traditionally provided
    officers for that position.

                              Subtitle C--Reports

        SEC. 921. REVISED REQUIREMENT FOR CHAIRMAN OF THE JOINT CHIEFS OF
          STAFF TO ADVISE SECRETARY OF DEFENSE ON THE ASSIGNMENT OF ROLES
          AND MISSIONS TO THE ARMED FORCES.
        (a) Assessment During Quadrennial Defense Review.--Section 118(e)
    of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e) CJCS Review.--'';
            (2) by designating the second and third sentences as paragraph
        (3); and
            (3) by inserting after paragraph (1), as designated by
        paragraph (1) of this subsection, the following new paragraph:
        ``(2) The Chairman shall include as part of that assessment the
    Chairman's assessment of the assignment of functions (or roles and
    missions) to the armed forces, together with any recommendations for
    changes in assignment that the Chairman considers necessary to achieve
    maximum efficiency of the armed forces. In preparing the assessment
    under this paragraph, the Chairman shall consider (among other matters)
    the following:
            ``(A) Unnecessary duplication of effort among the armed forces.
            ``(B) Changes in technology that can be applied effectively to
        warfare.''.
        (b) Repeal of Requirement for Triennial Report on Assignment of
    Roles and Missions.--Section 153 of such title is amended--
            (1) by striking ``(a) Planning; Advice; Policy Formulation.--
        ''; and
            (2) by striking subsection (b).
        (c) Assessment With Respect to 2001 QDR.--With respect to the 2001
    Quadrennial Defense Review, the Chairman of the Joint Chiefs of Staff
    shall submit to Congress a separate assessment of functions (or roles
    and missions) of the Armed Forces in accordance with paragraph (2) of
    section 118(e) of title 10, United States Code, as added by subsection
    (a)(3). Such assessment shall be based on the findings in the 2001
    Quadrennial Defense Review, issued by the Secretary of Defense on
    September 30, 2001, and shall be submitted to Congress not later than
    one year after the date of the enactment of this Act.
        SEC. 922. REVISED REQUIREMENTS FOR CONTENT OF ANNUAL REPORT ON
          JOINT WARFIGHTING EXPERIMENTATION.
        Section 485(b) of title 10, United States Code, is amended--
            (1) in paragraph (4)(E)--
                (A) by inserting ``(by lease or by purchase)'' after
            ``acquire''; and
                (B) by inserting ``(including any prototype)'' after ``or
            equipment''; and
            (2) by adding at the end the following new paragraph:
            ``(6) A specific assessment of whether there is a need for a
        major force program for funding--
                ``(A) joint warfighting experimentation; and
                ``(B) the development and acquisition of any technology the
            value of which has been empirically demonstrated through such
            experimentation.''.
        SEC. 923. REPEAL OF REQUIREMENT FOR ONE OF THREE REMAINING REQUIRED
          REPORTS ON ACTIVITIES OF JOINT REQUIREMENTS OVERSIGHT COUNCIL.
        Section 916 of the Floyd D. Spence National Defense Authorization
    Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398;
    114 Stat. 1654A-231) is amended--
            (1) in the section heading, by striking ``semiannual report''
        and inserting ``reports'';
            (2) in subsection (a)--
                (A) by striking ``Semiannual Report'' in the subsection
            heading and inserting ``Reports Required''; and
                (B) by striking ``five semiannual''; and
            (3) in subsection (b)--
                (A) by striking ``September 1, 2002,''; and
                (B) by striking the period at the end of the last sentence
            and inserting ``, except that the last report shall cover all
            of the preceding fiscal year.''.
        SEC. 924. REVISED JOINT REPORT ON ESTABLISHMENT OF NATIONAL
          COLLABORATIVE INFORMATION ANALYSIS CAPABILITY.
        (a) Revised Report.--At the same time as the submission of the
    budget for fiscal year 2003 under section 1105 of title 31, United
    States Code, the Secretary of Defense and the Director of Central
    Intelligence shall submit to the congressional defense committees and
    the congressional intelligence committees a revised report assessing
    alternatives for the establishment of a national collaborative
    information analysis capability.
        (b) Matters Included.--The revised report shall cover the same
    matters required to be included in the DOD/CIA report, except that the
    alternative architectures assessed in the revised report shall be
    limited to architectures that include the participation of all Federal
    agencies involved in the collection of intelligence. The revised report
    shall also identify any issues that would require legislative or
    regulatory changes in order to implement the preferred architecture
    identified in the revised report.
        (c) Officials To Be Consulted.--The revised report shall be
    prepared after consultation with all appropriate Federal officials,
    including the following:
            (1) The Secretary of the Treasury.
            (2) The Secretary of Commerce.
            (3) The Secretary of State.
            (4) The Attorney General.
            (5) The Director of the Federal Bureau of Investigation.
            (6) The Administrator of the Drug Enforcement Administration.
        (d) Definitions.--In this section:
            (1) Dod/cia report.--The term ``DOD/CIA report'' means the
        joint report required by section 933 of the Floyd D. Spence
        National Defense Authorization Act for Fiscal Year 2001 (as enacted
        into law by Public Law 106-398; 114 Stat. 1654A-237).
            (2) Congressional intelligence committees.--The term
        ``congressional intelligence committees'' means the Select
        Committee on Intelligence of the Senate and the Permanent Select
        Committee on Intelligence of the House of Representatives.

                           Subtitle D--Other Matters

        SEC. 931. CONFORMING AMENDMENTS RELATING TO CHANGE OF NAME OF
          MILITARY AIRLIFT COMMAND TO AIR MOBILITY COMMAND.
        (a) Current References in Title 10, United States Code.--Section
    2554(d) of title 10, United States Code, and section 2555(a) of such
    title (relating to transportation services for international Girl Scout
    events) are amended by striking ``Military Airlift Command'' and
    inserting ``Air Mobility Command''.
        (b) Repeal of Obsolete Provision.--Section 8074 of such title is
    amended by striking subsection (c).
        (c) References in Title 37, United States Code.--Sections 430(c)
    and 432(b) of title 37, United States Code, are amended by striking
    ``Military Airlift Command'' and inserting ``Air Mobility Command''.
        SEC. 932. ORGANIZATIONAL REALIGNMENT FOR NAVY DIRECTOR FOR
          EXPEDITIONARY WARFARE.
        Section 5038(a) of title 10, United States Code, is amended by
    striking ``Office of the Deputy Chief of Naval Operations for
    Resources, Warfare Requirements, and Assessments'' and inserting
    ``office of the Deputy Chief of Naval Operations with responsibility
    for warfare requirements and programs''.

                          TITLE X--GENERAL PROVISIONS

              Subtitle A--Department of Defense Civilian Personnel

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

                     Subtitle B--Naval Vessels and Shipyards

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

                       Subtitle C--Counter-Drug Activities

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

                          Subtitle D--Strategic Forces

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

               Subtitle E--Other Department of Defense Provisions

    Sec. 1041. Secretary of Defense recommendation on need for Department of
    Defense review of proposed Federal agency actions to consider possible
    impact on national defense.
    Sec. 1042. Department of Defense reports to Congress to be accompanied
    by electronic version upon request.
    Sec. 1043. Department of Defense gift authorities.
    Sec. 1044. Acceleration of research, development, and production of
    medical countermeasures for defense against biological warfare agents.
    Sec. 1045. Chemical and biological protective equipment for military
    personnel and civilian employees of the Department of Defense.
    Sec. 1046. Sale of goods and services by Naval Magazine, Indian Island,
    Alaska.
    Sec. 1047. Report on procedures and guidelines for embarkation of
    civilian guests on naval vessels for public affairs purposes.
    Sec. 1048. Technical and clerical amendments.
    Sec. 1049. Termination of referendum requirement regarding continuation
    of military training on island of Vieques, Puerto Rico, and imposition
    of additional conditions on closure of live-fire training range.

                            Subtitle F--Other Matters

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

                         Subtitle A--Financial Matters

    SEC. 1001. TRANSFER AUTHORITY.

        (a) Authority To Transfer Authorizations.--(1) Upon determination
    by the Secretary of Defense that such action is necessary in the
    national interest, the Secretary may transfer amounts of authorizations
    made available to the Department of Defense in this division for fiscal
    year 2002 between any such authorizations for that fiscal year (or any
    subdivisions thereof). Amounts of authorizations so transferred shall
    be merged with and be available for the same purposes as the
    authorization to which transferred.
        (2) The total amount of authorizations that the Secretary may
    transfer under the authority of this section may not exceed
    $2,000,000,000.
        (b) Limitations.--The authority provided by this section to
    transfer authorizations--
            (1) may only be used to provide authority for items that have a
        higher priority than the items from which authority is transferred;
        and
            (2) may not be used to provide authority for an item that has
        been denied authorization by Congress.
        (c) Effect on Authorization Amounts.--A transfer made from one
    account to another under the authority of this section shall be deemed
    to increase the amount authorized for the account to which the amount
    is transferred by an amount equal to the amount transferred.
        (d) Notice to Congress.--The Secretary shall promptly notify
    Congress of each transfer made under subsection (a).
    SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.
        (a) Status of Classified Annex.--The Classified Annex prepared by
    the committee of conference to accompany the conference report on the
    bill S. 1438 of the One Hundred Seventh Congress and transmitted to the
    President is hereby incorporated into this Act.
        (b) Construction With Other Provisions of Act.--The amounts
    specified in the Classified Annex are not in addition to amounts
    authorized to be appropriated by other provisions of this Act.
        (c) Limitation on Use of Funds.--Funds appropriated pursuant to an
    authorization contained in this Act that are made available for a
    program, project, or activity referred to in the Classified Annex may
    only be expended for such program, project, or activity in accordance
    with such terms, conditions, limitations, restrictions, and
    requirements as are set out for that program, project, or activity in
    the Classified Annex.
        (d) Distribution of Classified Annex.--The President shall provide
    for appropriate distribution of the Classified Annex, or of appropriate
    portions of the annex, within the executive branch of the Government.
    SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR
    2001.
        Amounts authorized to be appropriated to the Department of Defense
    for fiscal year 2001 in the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398) are hereby adjusted, with respect to any such authorized
    amount, by the amount by which appropriations pursuant to such
    authorization were increased (by a supplemental appropriation) or
    decreased (by a rescission), or both, in title I of the Supplemental
    Appropriations Act, 2001 (Public Law 107-20).
    SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN
    FISCAL YEAR 2002.
        (a) Fiscal Year 2002 Limitation.--The total amount contributed by
    the Secretary of Defense in fiscal year 2002 for the common-funded
    budgets of NATO may be any amount up to, but not in excess of, the
    amount specified in subsection (b) (rather than the maximum amount that
    would otherwise be applicable to those contributions under the fiscal
    year 1998 baseline limitation).
        (b) Total Amount.--The amount of the limitation applicable under
    subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of fiscal
        year 2001, of funds appropriated for fiscal years before fiscal
        year 2002 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be made
        under section 2501.
        (c) Authorized Amounts.--Amounts authorized to be appropriated by
    titles II and III of this Act are available for contributions for the
    common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $708,000 for the
        Civil Budget.
            (2) Of the amount provided in section 301(a)(1), $175,849,000
        for the Military Budget.
        (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-funded
        budgets of NATO'' means the Military Budget, the Security
        Investment Program, and the Civil Budget of the North Atlantic
        Treaty Organization (and any successor or additional account or
        program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term ``fiscal
        year 1998 baseline limitation'' means the maximum annual amount of
        Department of Defense contributions for common-funded budgets of
        NATO that is set forth as the annual limitation in section
        3(2)(C)(ii) of the resolution of the Senate giving the advice and
        consent of the Senate to the ratification of the Protocols to the
        North Atlantic Treaty of 1949 on the Accession of Poland, Hungary,
        and the Czech Republic (as defined in section 4(7) of that
        resolution), approved by the Senate on April 30, 1998.
    SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND KOSOVO PEACEKEEPING
    OPERATIONS FOR FISCAL YEAR 2002.
        (a) Limitation.--Of the amounts authorized to be appropriated by
    section 301(a)(24) for the Overseas Contingency Operations Transfer
    Fund--
            (1) no more than $1,315,600,000 may be obligated for
        incremental costs of the Armed Forces for Bosnia peacekeeping
        operations; and
            (2) no more than $1,528,600,000 may be obligated for
        incremental costs of the Armed Forces for Kosovo peacekeeping
        operations.
        (b) Presidential Waiver.--The President may waive the limitation in
    subsection (a)(1), or the limitation in subsection (a)(2), after
    submitting to Congress the following:
            (1) The President's written certification that the waiver is
        necessary in the national security interests of the United States.
            (2) The President's written certification that exercising the
        waiver will not adversely affect the readiness of United States
        military forces.
            (3) A report setting forth the following:
                (A) The reasons that the waiver is necessary in the
            national security interests of the United States.
                (B) The specific reasons that additional funding is
            required for the continued presence of United States military
            forces participating in, or supporting, Bosnia peacekeeping
            operations, or Kosovo peacekeeping operations, as the case may
            be, for fiscal year 2002.
                (C) A discussion of the impact on the military readiness of
            United States Armed Forces of the continuing deployment of
            United States military forces participating in, or supporting,
            Bosnia peacekeeping operations, or Kosovo peacekeeping
            operations, as the case may be.
            (4) A supplemental appropriations request for the Department of
        Defense for such amounts as are necessary for the additional fiscal
        year 2002 costs associated with United States military forces
        participating in, or supporting, Bosnia or Kosovo peacekeeping
        operations.
        (c) Peacekeeping Operations Defined.--For the purposes of this
    section:
            (1) The term ``Bosnia peacekeeping operations'' has the meaning
        given such term in section 1004(e) of the Strom Thurmond National
        Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261;
        112 Stat. 2112).
            (2) The term ``Kosovo peacekeeping operations''--
                (A) means the operation designated as Operation Joint
            Guardian and any other operation involving the participation of
            any of the Armed Forces in peacekeeping or peace enforcement
            activities in and around Kosovo; and
                (B) includes, with respect to Operation Joint Guardian or
            any such other operation, each activity that is directly
            related to the support of the operation.
    SEC. 1006. MAXIMUM AMOUNT FOR NATIONAL FOREIGN INTELLIGENCE PROGRAM.
        The total amount authorized to be appropriated for the National
    Foreign Intelligence Program for fiscal year 2002 is the sum of the
    following:
            (1) The total amount set forth for the National Foreign
        Intelligence Program for fiscal year 2002 in the message of the
        President to Congress transmitted by the President on June 27,
        2001, and printed as House Document 107-92, captioned
        ``Communication of the President of the United States Transmitting
        Requests for Fiscal Year 2002 Budget Amendments for the Department
        of Defense''.
            (2) The total amount, if any, appropriated for the National
        Foreign Intelligence Program for fiscal year 2002 pursuant to the
        2001 Emergency Supplemental Appropriations Act for Recovery from
        and Response to Terrorist Attacks on the United States (Public Law
        107-38; 115 Stat. 220-221).
            (3) The total amount, if any, appropriated for the National
        Foreign Intelligence Program for fiscal year 2002 in any law making
        supplemental appropriations for fiscal year 2002 that is enacted
        during the second session of the 107th Congress.
    SEC. 1007. CLARIFICATION OF APPLICABILITY OF INTEREST PENALTIES FOR
    LATE PAYMENT OF INTERIM PAYMENTS DUE UNDER CONTRACTS FOR SERVICES.
        Section 1010(d) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-251) is amended by inserting before the
    period at the end of the first sentence the following: ``, and shall
    apply with respect to interim payments that are due on or after such
    date under contracts entered into before, on, or after that date''.
    SEC. 1008. RELIABILITY OF DEPARTMENT OF DEFENSE FINANCIAL STATEMENTS.
        (a) Annual Report on Reliability.--(1) Not later than September 30
    of each year but subject to subsection (f), the Secretary of Defense
    shall submit to the recipients specified in paragraph (3) a report on
    the reliability of the Department of Defense financial statements,
    including the financial statements of each component of the Department
    that is required to prepare a financial statement under section 3515(c)
    of title 31, United States Code.
        (2) The annual report shall contain the following:
            (A) A conclusion regarding whether the policies and procedures
        of the Department of Defense, and the systems used within the
        Department of Defense, for the preparation of financial statements
        allow the achievement of reliability in those financial statements.
            (B) For each of the financial statements prepared for the
        Department of Defense for the fiscal year in which the report is
        submitted, a conclusion regarding the expected reliability of the
        financial statement (evaluated on the basis of Office of Management
        and Budget guidance on financial statements), together with a
        discussion of the major deficiencies to be expected in the
        statement.
            (C) A summary of the specific sections of the annual Financial
        Management Improvement Plan of the Department of Defense, current
        as of the date of the report, that--
                (i) detail the priorities, milestones, and measures of
            success that apply to the preparation of the financial
            statements;
                (ii) detail the planned improvements in the process for the
            preparation of financial statements that are to be implemented
            within 12 months after the date on which the plan is issued;
            and
                (iii) provide an estimate of when each financial statement
            will convey reliable information.
        (3) The annual report shall be submitted to the following:
            (A) The Committee on Armed Services and the Committee on
        Governmental Affairs of the Senate.
            (B) The Committee on Armed Services and the Committee on
        Government Reform of the House of Representatives.
            (C) The Director of the Office of Management and Budget.
            (D) The Secretary of the Treasury.
            (E) The Comptroller General of the United States.
        (4) The Secretary of Defense shall make a copy of the annual report
    available to the Inspector General of the Department of Defense.
        (b) Minimization of Use of Resources for Unreliable Financial
    Statements.--(1) With respect to each financial statement for a fiscal
    year that the Secretary of Defense assesses as being expected to be
    unreliable in the annual report under subsection (a), the Under
    Secretary of Defense (Comptroller) shall take appropriate actions to
    minimize, consistent with the benefits to be derived, the resources
    (including contractor support) that are used to develop, compile, and
    report the financial statement.
        (2) With the annual budget justifications for the Department of
    Defense submitted to Congress each year, the Under Secretary of Defense
    (Comptroller) shall submit, with respect to the fiscal year in which
    submitted, the preceding fiscal year, and the following fiscal year,
    the following information:
            (A) An estimate of the resources that the Department of Defense
        is saving or expects to save as a result of actions taken and to be
        taken under paragraph (1) with respect to the preparation of
        financial statements.
            (B) A discussion of how the resources saved as estimated under
        subparagraph (A) have been redirected or are to be redirected from
        the preparation of financial statements to the improvement of
        systems underlying financial management within the Department of
        Defense and to the improvement of financial management policies,
        procedures, and internal controls within the Department of Defense.
        (c) Information to Auditors.--Not later than October 31 of each
    year, the Under Secretary of Defense (Comptroller) and the Assistant
    Secretary of each military department with responsibility for financial
    management and comptroller functions shall each provide to the auditors
    of the financial statement of that official's department for the fiscal
    year ending during the preceding month that official's preliminary
    management representation, in writing, regarding the expected
    reliability of the financial statement. The representation shall be
    consistent with guidance issued by the Director of the Office of
    Management and Budget and shall include the basis for the reliability
    assessment stated in the representation.
        (d) Limitation on Inspector General Audits.--(1) On each financial
    statement that an official asserts is unreliable under subsection (b)
    or (c), the Inspector General of the Department of Defense shall only
    perform the audit procedures required by generally accepted government
    auditing standards consistent with any representation made by
    management.
        (2) With the annual budget justifications for the Department of
    Defense submitted to Congress each year, the Under Secretary of Defense
    (Comptroller) shall submit, with respect to the fiscal year in which
    submitted, the preceding fiscal year, and the following fiscal year,
    information which the Inspector General shall report to the Under
    Secretary, as follows:
            (A) An estimate of the resources that the Inspector General is
        saving or expects to save as a result of actions taken and to be
        taken under paragraph (1) with respect to the auditing of financial
        statements.
            (B) A discussion of how the resources saved as estimated under
        subparagraph (A) have been redirected or are to be redirected from
        the auditing of financial statements to the oversight and
        improvement of systems underlying financial management within the
        Department of Defense and to the oversight and improvement of
        financial management policies, procedures, and internal controls
        within the Department of Defense.
        (e) Effective Date.--The requirements of this section shall apply
    with respect to financial statements for fiscal years after fiscal year
    2001 and to the auditing of those financial statements.
        (f) Termination of Applicability.--If the Secretary of Defense
    certifies to the Inspector General of the Department of Defense that
    the financial statement for the Department of Defense, or a financial
    statement for a component of the Department of Defense, for a fiscal
    year is reliable, this section shall not apply with respect to that
    financial statement or to any successive financial statement for the
    Department of Defense, or for that component, as the case may be, for
    any later fiscal year.
    SEC. 1009. FINANCIAL MANAGEMENT MODERNIZATION EXECUTIVE COMMITTEE AND
    FINANCIAL FEEDER SYSTEMS COMPLIANCE PROCESS.
        (a) Executive Committee.--(1) Chapter 7 of title 10, United States
    Code, is amended by adding at the end the following new section:
    ``Sec. 185. Financial Management Modernization Executive Committee
        ``(a) Establishment of Financial Management Modernization Executive
    Committee.--(1) The Secretary of Defense shall establish a Financial
    Management Modernization Executive Committee.
        ``(2) The Committee shall be composed of the following:
            ``(A) The Under Secretary of Defense (Comptroller), who shall
        be the chairman of the committee.
            ``(B) The Under Secretary of Defense for Acquisition,
        Technology, and Logistics.
            ``(C) The Under Secretary of Defense for Personnel and
        Readiness.
            ``(D) The Chief Information Officer of the Department of
        Defense.
            ``(E) Such additional personnel of the Department of Defense
        (including appropriate personnel of the military departments and
        Defense Agencies) as are designated by the Secretary.
        ``(3) The Committee shall be accountable to the Senior Executive
    Council (composed of the Secretary of Defense, the Deputy Secretary of
    Defense, the Under Secretary of Defense for Acquisition, Technology,
    and Logistics, the Secretary of the Army, the Secretary of the Navy,
    and the Secretary of the Air Force).
        ``(b) Duties.--In addition to other matters assigned to it by the
    Secretary of Defense, the Committee shall have the following duties:
            ``(1) To establish a process that ensures that each critical
        accounting system, financial management system, and data feeder
        system of the Department of Defense is compliant with applicable
        Federal financial management and reporting requirements.
            ``(2) To develop a management plan for the implementation of
        the financial and data feeder systems compliance process
        established pursuant to paragraph (1).
            ``(3) To supervise and monitor the actions that are necessary
        to implement the management plan developed pursuant to paragraph
        (2), as approved by the Secretary of Defense.
            ``(4) To ensure that a Department of Defense financial
        management enterprise architecture is developed and maintained in
        accordance with--
                ``(A) the overall business process transformation strategy
            of the Department; and
                ``(B) the architecture framework of the Department for
            command, control, communications, computers, intelligence,
            surveillance, and reconnaissance functions.
            ``(5) To ensure that investments in existing or proposed
        financial management systems for the Department comply with the
        overall business practice transformation strategy of the Department
        and the financial management enterprise architecture developed
        under paragraph (4).
            ``(6) To provide an annual accounting of each financial and
        data feeder system investment technology project to ensure that
        each such project is being implemented at acceptable cost and
        within a reasonable schedule and is contributing to tangible,
        observable improvements in mission performance.
        ``(c) Management Plan for Implementation of Financial Data Feeder
    Systems Compliance Process.--The management plan developed under
    subsection (b)(2) shall include among its principal elements at least
    the following elements:
            ``(1) A requirement for the establishment and maintenance of a
        complete inventory of all budgetary, accounting, finance, and data
        feeder systems that support the transformed business processes of
        the Department and produce financial statements.
            ``(2) A phased process (consisting of the successive phases of
        Awareness, Evaluation, Renovation, Validation, and Compliance) for
        improving systems referred to in paragraph (1) that provides for
        mapping financial data flow from the cognizant Department business
        function source (as part of the overall business process
        transformation strategy of the Department) to Department financial
        statements.
            ``(3) Periodic submittal to the Secretary of Defense, the
        Deputy Secretary of Defense, and the Senior Executive Council (or
        any combination thereof) of reports on the progress being made in
        achieving financial management transformation goals and milestones
        included in the annual financial management improvement plan in
        2002.
            ``(4) Documentation of the completion of each phase specified
        in paragraph (2) of improvements made to each accounting, finance,
        and data feeder system of the Department.
            ``(5) Independent audit by the Inspector General of the
        Department, the audit agencies of the military departments, and
        private sector firms contracted to conduct validation audits (or
        any combination thereof) at the validation phase for each
        accounting, finance, and data feeder system.
        ``(d) Data Feeder Systems.--In this section, the term `data feeder
    system' has the meaning given that term in section 2222(c)(2) of this
    title.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``185. Financial Management Modernization Executive Committee.''.

        (b) Annual Financial Management Improvement Plan.--(1) Subsection
    (a) of section 2222 of title 10, United States Code, is amended--
            (A) by striking ``Biennial'' in the subsection heading and
        inserting ``Annual'';
            (B) by striking ``a biennial'' in the first sentence and
        inserting ``an annual''; and
            (C) by striking ``even-numbered'' in the second sentence.
        (2) Subsection (c) of such section is amended--
            (A) by redesignating paragraph (2) as paragraph (3); and
            (B) by inserting after paragraph (1) the following new
        paragraph (2):
        ``(2) In each such plan, the Secretary shall include the following:
            ``(A) A description of the actions to be taken in the fiscal
        year beginning in the year in which the plan is submitted to
        implement the annual performance goals, and the performance
        milestones, included in the financial management improvement plan
        submitted in 2002 pursuant to paragraphs (1) and (2), respectively,
        of section 1009(c) of the National Defense Authorization Act for
        Fiscal Year 2002.
            ``(B) An estimate of the amount expended in the fiscal year
        ending in the year in which the plan is submitted to implement the
        financial management improvement plan in such preceding calendar
        year, set forth by system.
            ``(C) If an element of the financial management improvement
        plan submitted in the fiscal year ending in the year in which the
        plan is submitted was not implemented, a justification for the lack
        of implementation of such element.''.
        (3)(A) The heading of such section is amended to read as follows:
    ``Sec. 2222. Annual financial management improvement plan''.
        (B) The item relating to section 2222 in the table of sections at
    the beginning of chapter 131 of such title is amended to read as
    follows:
    ``2222. Annual financial management improvement plan.''.

        (c) Additional Elements for Financial Management Improvement Plan
    in 2002.--In the annual financial management improvement plan submitted
    under section 2222 of title 10, United States Code, in 2002, the
    Secretary of Defense shall include the following:
            (1) Measurable annual performance goals for improvement of the
        financial management of the Department of Defense.
            (2) Performance milestones for initiatives under that plan for
        transforming the financial management operations of the Department
        of Defense and for implementing a financial management architecture
        for the Department.
            (3) An assessment of the anticipated annual cost of any plans
        for transforming the financial management operations of the
        Department of Defense and for implementing a financial management
        architecture for the Department.
            (4) A discussion of the following:
                (A) The roles and responsibilities of appropriate
            Department officials to ensure the supervision and monitoring
            of the compliance of each accounting, finance, and data feeder
            system of the Department with--
                    (i) the business practice transformation strategy of
                the Department;
                    (ii) the financial management architecture of the
                Department; and
                    (iii) applicable Federal financial management systems
                and reporting requirements.
                (B) A summary of the actions taken by the Financial
            Management Modernization Executive Committee to ensure that
            such systems comply with--
                    (i) the business practice transformation strategy of
                the Department;
                    (ii) the financial management architecture of the
                Department; and
                    (iii) applicable Federal financial management systems
                and reporting requirements.
        (d) Effective Date.--Paragraph (2) of section 2222(c) of title 10,
    United States Code, as added by subsection (b)(2), shall not apply with
    respect to the annual financial management improvement plan submitted
    under section 2222 of title 10, United States Code, in 2002.
    SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE DEFENSE
    PROGRAMS OR COMBATING TERRORISM PROGRAMS OF THE DEPARTMENT OF DEFENSE.
        (a) Authorization.--There is hereby authorized to be appropriated
    for fiscal year 2002 for the military functions of the Department of
    Defense, in addition to amounts authorized to be appropriated in titles
    I, II, and III, the amount of $1,300,000,000, to be available, in
    accordance with subsection (b), for the following purposes:
            (1) Research, development, test, and evaluation for ballistic
        missile defense programs of the Ballistic Missile Defense
        Organization.
            (2) Activities of the Department of Defense for combating
        terrorism.
        (b) Allocation by President.--(1) The amount authorized to be
    appropriated by subsection (a) shall be allocated between the purposes
    stated in paragraphs (1) and (2) of that subsection in such manner as
    may be determined by the President based upon the national security
    interests of the United States. The amount authorized in subsection (a)
    shall not be available for any other purpose.
        (2) Upon an allocation of such amount by the President, the amount
    so allocated shall be transferred to the appropriate regular
    authorization account under this division in the same manner as
    provided in section 1001. Transfers under this paragraph shall not be
    counted for the purposes of section 1001(a)(2).
        (3) Not later than 15 days after an allocation is made under this
    subsection, the Secretary of Defense shall submit to the congressional
    defense committees a report describing the allocation and the
    Secretary's plan for the use by the Department of Defense of the funds
    made available pursuant to such allocation.

                    Subtitle B--Naval Vessels and Shipyards

    SEC. 1011. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN
    COUNTRIES.
        (a) Transfers by Grant.--The President is authorized to transfer
    vessels to foreign countries on a grant basis under section 516 of the
    Foreign Assistance Act of 1961 (22 U.S.C. 2321j) as follows:
            (1) Poland.--To the Government of Poland, the OLIVER HAZARD
        PERRY class guided missile frigate WADSWORTH (FFG 9).
            (2) Turkey.--To the Government of Turkey, the KNOX class
        frigates CAPODANNO (FF 1093), THOMAS C. HART (FF 1092), DONALD B.
        BEARY (FF 1085), McCANDLESS (FF 1084), REASONER (FF 1063), and
        BOWEN (FF 1079).
        (b) Transfers by Sale.--The President is authorized to transfer
    vessels to foreign governments and foreign governmental entities on a
    sale basis under section 21 of the Arms Export Control Act (22 U.S.C.
    2761) as follows:
            (1) Taiwan.--To the Taipei Economic and Cultural Representative
        Office in the United States (which is the Taiwan instrumentality
        designated pursuant to section 10(a) of the Taiwan Relations Act),
        the KIDD class guided missile destroyers KIDD (DDG 993), CALLAGHAN
        (DDG 994), SCOTT (DDG 995), and CHANDLER (DDG 996).
            (2) Turkey.--To the Government of Turkey, the OLIVER HAZARD
        PERRY class guided missile frigates ESTOCIN (FFG 15) and SAMUEL
        ELIOT MORISON (FFG 13).
        (c) Grants Not Counted in Annual Total of Transferred Excess
    Defense Articles.--The value of a vessel transferred to another country
    on a grant basis under section 516 of the Foreign Assistance Act of
    1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a)
    shall not be counted for the purposes of subsection (g) of that section
    in the aggregate value of excess defense articles transferred to
    countries under that section in any fiscal year.
        (d) Costs of Transfers on Grant Basis.--Any expense incurred by the
    United States in connection with a transfer authorized by this section
    shall be charged to the recipient (notwithstanding section 516(e)(1) of
    the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)(1))) in the case
    of a transfer authorized to be made on a grant basis under subsection
    (a).
        (e) Waiver Authority.--For a vessel transferred on a grant basis
    pursuant to authority provided by subsection (a)(2), the President may
    waive reimbursement of charges for the lease of that vessel under
    section 61(a) of the Arms Export Control Act (22 U.S.C. 2796(a)) for a
    period of one year before the date of the transfer of that vessel.
        (f) Repair and Refurbishment in United States Shipyards.--To the
    maximum extent practicable, the President shall require, as a condition
    of the transfer of a vessel under this section, that the country to
    which the vessel is transferred have such repair or refurbishment of
    the vessel as is needed, before the vessel joins the naval forces of
    that country, performed at a shipyard located in the United States,
    including a United States Navy shipyard.
        (g) Expiration of Authority.--The authority to transfer a vessel
    under this section shall expire at the end of the two-year period
    beginning on the date of the enactment of this Act.
    SEC. 1012. SALE OF GLOMAR EXPLORER TO THE LESSEE.
        (a) Authority.--The Secretary of the Navy may convey by sale all
    right, title, and interest of the United States in and to the vessel
    GLOMAR EXPLORER (AG 193) to the person who, on the date of the
    enactment of this Act, is the lessee of the vessel.
        (b) Consideration.--The price for which the vessel is sold under
    subsection (a) shall be a fair and reasonable amount determined by the
    Secretary of the Navy.
        (c) Additional Terms.--The Secretary may require such additional
    terms in connection with the conveyance authorized by this section as
    the Secretary considers appropriate.
        (d) Proceeds of Sale.--Amounts received by the Secretary from the
    sale under this section may, to the extent provided in an
    appropriations Act, be credited to the appropriation available for
    providing salvage facilities under section 7361 of title 10, United
    States Code, and are authorized to remain available until expended for
    that purpose.
    SEC. 1013. LEASING OF NAVY SHIPS FOR UNIVERSITY NATIONAL OCEANOGRAPHIC
    LABORATORY SYSTEM.
        Subsection (g) of section 2667 of title 10, United States Code, is
    amended by adding at the end the following new paragraph:
        ``(3) Paragraph (1) does not apply to a renewal or extension of a
    lease by the Secretary of the Navy with a selected institution for
    operation of a ship within the University National Oceanographic
    Laboratory System if, under the lease, each of the following applies:
            ``(A) Use of the ship is restricted to federally supported
        research programs and to non-Federal uses under specific conditions
        with approval by the Secretary of the Navy.
            ``(B) Because of the anticipated value to the Navy of the
        oceanographic research and training that will result from the
        ship's operation, no monetary lease payments are required from the
        lessee under the initial lease or under any renewal or extension.
            ``(C) The lessee is required to maintain the ship in a good
        state of repair, readiness, and efficient operating condition,
        conform to all applicable regulatory requirements, and assume full
        responsibility for the safety of the ship, its crew, and scientific
        personnel aboard.''.
    SEC. 1014. INCREASE IN LIMITATIONS ON ADMINISTRATIVE AUTHORITY OF THE
    NAVY TO SETTLE ADMIRALTY CLAIMS.
        (a) Admiralty Claims Against the United States.--Section 7622 of
    title 10, United States Code, is amended--
            (1) in subsections (a) and (b), by striking ``$1,000,000'' and
        inserting ``$15,000,000''; and
            (2) in subsection (c), by striking ``$100,000'' and inserting
        ``$1,000,000''.
        (b) Admiralty Claims by the United States.--Section 7623 of such
    title is amended--
            (1) in subsection (a)(2), by striking ``$1,000,000'' and
        inserting ``$15,000,000''; and
            (2) in subsection (c), by striking ``$100,000'' and inserting
        ``$1,000,000''.
        (c) Effective Date.--The amendments made by this section shall
    apply with respect to any claim accruing on or after February 1, 2001.

                      Subtitle C--Counter-Drug Activities

    SEC. 1021. EXTENSION AND RESTATEMENT OF AUTHORITY TO PROVIDE DEPARTMENT
    OF DEFENSE SUPPORT FOR COUNTER-DRUG ACTIVITIES OF OTHER GOVERNMENTAL
    AGENCIES.
        Section 1004 of the National Defense Authorization Act for Fiscal
    Year 1991 (Public Law 101-510; 10 U.S.C. 374 note) is amended to read
    as follows:
    ``SEC. 1004. ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES.
        ``(a) Support to Other Agencies.--During fiscal years 2002 through
    2006, the Secretary of Defense may provide support for the counter-drug
    activities of any other department or agency of the Federal Government
    or of any State, local, or foreign law enforcement agency for any of
    the purposes set forth in subsection (b) if such support is requested--
            ``(1) by the official who has responsibility for the counter-
        drug activities of the department or agency of the Federal
        Government, in the case of support for other departments or
        agencies of the Federal Government;
            ``(2) by the appropriate official of a State or local
        government, in the case of support for State or local law
        enforcement agencies; or
            ``(3) by an appropriate official of a department or agency of
        the Federal Government that has counter-drug responsibilities, in
        the case of support for foreign law enforcement agencies.
        ``(b) Types of Support.--The purposes for which the Secretary of
    Defense may provide support under subsection (a) are the following:
            ``(1) The maintenance and repair of equipment that has been
        made available to any department or agency of the Federal
        Government or to any State or local government by the Department of
        Defense for the purposes of--
                ``(A) preserving the potential future utility of such
            equipment for the Department of Defense; and
                ``(B) upgrading such equipment to ensure compatibility of
            that equipment with other equipment used by the Department of
            Defense.
            ``(2) The maintenance, repair, or upgrading of equipment
        (including computer software), other than equipment referred to in
        paragraph (1) for the purpose of--
                ``(A) ensuring that the equipment being maintained or
            repaired is compatible with equipment used by the Department of
            Defense; and
                ``(B) upgrading such equipment to ensure the compatibility
            of that equipment with equipment used by the Department of
            Defense.
            ``(3) The transportation of personnel of the United States and
        foreign countries (including per diem expenses associated with such
        transportation), and the transportation of supplies and equipment,
        for the purpose of facilitating counter-drug activities within or
        outside the United States.
            ``(4) The establishment (including an unspecified minor
        military construction project) and operation of bases of operations
        or training facilities for the purpose of facilitating counter-drug
        activities of the Department of Defense or any Federal, State, or
        local law enforcement agency within or outside the United States or
        counter-drug activities of a foreign law enforcement agency outside
        the United States.
            ``(5) Counter-drug related training of law enforcement
        personnel of the Federal Government, of State and local
        governments, and of foreign countries, including associated support
        expenses for trainees and the provision of materials necessary to
        carry out such training.
            ``(6) The detection, monitoring, and communication of the
        movement of--
                ``(A) air and sea traffic within 25 miles of and outside
            the geographic boundaries of the United States; and
                ``(B) surface traffic outside the geographic boundary of
            the United States and within the United States not to exceed 25
            miles of the boundary if the initial detection occurred outside
            of the boundary.
            ``(7) Construction of roads and fences and installation of
        lighting to block drug smuggling corridors across international
        boundaries of the United States.
            ``(8) Establishment of command, control, communications, and
        computer networks for improved integration of law enforcement,
        active military, and National Guard activities.
            ``(9) The provision of linguist and intelligence analysis
        services.
            ``(10) Aerial and ground reconnaissance.
        ``(c) Limitation on Counter-Drug Requirements.--The Secretary of
    Defense may not limit the requirements for which support may be
    provided under subsection (a) only to critical, emergent, or
    unanticipated requirements.
        ``(d) Contract Authority.--In carrying out subsection (a), the
    Secretary of Defense may acquire services or equipment by contract for
    support provided under that subsection if the Department of Defense
    would normally acquire such services or equipment by contract for the
    purpose of conducting a similar activity for the Department of Defense.
        ``(e) Limited Waiver of Prohibition.--Notwithstanding section 376
    of title 10, United States Code, the Secretary of Defense may provide
    support pursuant to subsection (a) in any case in which the Secretary
    determines that the provision of such support would adversely affect
    the military preparedness of the United States in the short term if the
    Secretary determines that the importance of providing such support
    outweighs such short-term adverse effect.
        ``(f) Conduct of Training or Operation To Aid Civilian Agencies.--
    In providing support pursuant to subsection (a), the Secretary of
    Defense may plan and execute otherwise valid military training or
    operations (including training exercises undertaken pursuant to section
    1206(a) of the National Defense Authorization Act for Fiscal Years 1990
    and 1991 (Public Law 101-189; 103 Stat. 1564)) for the purpose of
    aiding civilian law enforcement agencies.
        ``(g) Relationship to Other Laws.--(1) The authority provided in
    this section for the support of counter-drug activities by the
    Department of Defense is in addition to, and except as provided in
    paragraph (2), not subject to the requirements of chapter 18 of title
    10, United States Code.
        ``(2) Support under this section shall be subject to the provisions
    of section 375 and, except as provided in subsection (e), section 376
    of title 10, United States Code.
        ``(h) Congressional Notification of Facilities Projects.--(1) When
    a decision is made to carry out a military construction project
    described in paragraph (2), the Secretary of Defense shall submit to
    the congressional defense committees written notice of the decision,
    including the justification for the project and the estimated cost of
    the project. The project may be commenced only after the end of the 21-
    day period beginning on the date on which the written notice is
    received by Congress.
        ``(2) Paragraph (1) applies to an unspecified minor military
    construction project that--
            ``(A) is intended for the modification or repair of a
        Department of Defense facility for the purpose set forth in
        subsection (b)(4); and
            ``(B) has an estimated cost of more than $500,000.''.
    SEC. 1022. EXTENSION OF REPORTING REQUIREMENT REGARDING DEPARTMENT OF
    DEFENSE EXPENDITURES TO SUPPORT FOREIGN COUNTER-DRUG ACTIVITIES.
        Section 1022 of the Floyd D. Spence National Defense Authorization
    Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398;
    114 Stat. 1654A-255) is amended--
            (1) by inserting ``and April 15, 2002,'' after ``January 1,
        2001,''; and
            (2) by striking ``fiscal year 2000'' and inserting ``the
        preceding fiscal year''.
    SEC. 1023. AUTHORITY TO TRANSFER TRACKER AIRCRAFT CURRENTLY USED BY
    ARMED FORCES FOR COUNTER-DRUG PURPOSES.
        (a) Transfer Authority.--The Secretary of Defense may transfer to
    the administrative jurisdiction and operational control of another
    Federal agency all Tracker aircraft in the inventory of the Department
    of Defense.
        (b) Effect of Failure To Transfer.--If the transfer authority
    provided by subsection (a) is not exercised by the Secretary of Defense
    by September 30, 2002, any Tracker aircraft remaining in the inventory
    of the Department of Defense may not be used by the Armed Forces for
    counter-drug purposes after that date.
    SEC. 1024. LIMITATION ON USE OF FUNDS FOR OPERATION OF TETHERED
    AEROSTAT RADAR SYSTEM PENDING SUBMISSION OF REQUIRED REPORT.
        Not more than 50 percent of the funds appropriated or otherwise
    made available for fiscal year 2002 for operation of the Tethered
    Aerostat Radar System, which is used by the Armed Forces in maritime,
    air, and land counter-drug detection and monitoring, may be obligated
    or expended until such time as the Secretary of Defense submits to
    Congress the report on the status of the Tethered Aerostat Radar System
    required by section 1025 of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-256).

                          Subtitle D--Strategic Forces

    SEC. 1031. REPEAL OF LIMITATION ON RETIREMENT OR DISMANTLEMENT OF
    STRATEGIC NUCLEAR DELIVERY SYSTEMS.
        Section 1302 of the National Defense Authorization Act for Fiscal
    Year 1998 (Public Law 105-85; 111 Stat. 1948) is repealed.
    SEC. 1032. AIR FORCE BOMBER FORCE STRUCTURE.
        (a) Limitation.--None of the funds available to the Department of
    Defense for fiscal year 2002 may be obligated or expended for retiring
    or dismantling any of the 93 B-1B Lancer bombers in service as of June
    1, 2001, or for transferring or reassigning any of those aircraft from
    the unit or facility to which assigned as of that date, until 15 days
    after the Secretary of the Air Force submits to the Committee on Armed
    Services of the Senate and the Committee on Armed Services of the House
    of Representatives a report on the Air Force bomber force structure.
        (b) Matters To Be Included.--The report under subsection (a) shall
    set forth the following:
            (1) The Air Force plan for the modernization of the B-1B
        aircraft fleet, including a transition plan for implementation of
        that modernization plan and a description of the basing options for
        the aircraft in that fleet.
            (2) The amount and type of bomber force structure in the Air
        Force appropriate to meet the requirements of the national security
        strategy of the United States.
            (3) Specifications of new missions to be assigned to the
        National Guard units that currently fly B-1 aircraft and the
        transition of those units and their facilities from the current B-1
        mission to their future missions.
            (4) A description of the potential effect of the proposed
        consolidation and reduction of the B-1 fleet on other National
        Guard units in the affected States.
            (5) A justification of the cost and projected savings of
        consolidating and reducing the B-1 fleet.
        (c) Amount and Type of Bomber Force Structure Defined.--In this
    section, the term ``amount and type of bomber force structure'' means
    the number of B-2 aircraft, B-52 aircraft, and B-1 aircraft that are
    required to carry out the current national security strategy.
    SEC. 1033. ADDITIONAL ELEMENT FOR REVISED NUCLEAR POSTURE REVIEW.
        Section 1041(b) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-262) is amended by adding at the end the
    following new paragraph:
            ``(7) The possibility of deactivating or dealerting nuclear
        warheads or delivery systems immediately, or immediately after a
        decision to retire any specific warhead, class of warheads, or
        delivery system.''.
    SEC. 1034. REPORT ON OPTIONS FOR MODERNIZATION AND ENHANCEMENT OF
    MISSILE WING HELICOPTER SUPPORT.
        (a) Report Required.--The Secretary of Defense shall prepare a
    report regarding the options for providing the helicopter support
    missions for the Air Force intercontinental ballistic missile wings at
    Minot Air Force Base, North Dakota, Malmstrom Air Force Base, Montana,
    and F.E. Warren Air Force Base, Wyoming, for as long as these missions
    are required. The report shall include the Secretary's recommendations
    on a preferred option.
        (b) Options.--Options to be reviewed under subsection (a) include
    the following:
            (1) The current plan of the Air Force for replacement or
        modernization of UH-1N helicopters currently flown by the Air Force
        at the missile wings.
            (2) Replacement of the UH-1N helicopters currently flown by the
        Air Force with UH-60 Black Hawk helicopters, the UH-1Y helicopter,
        or another platform.
            (3) Replacement of the UH-1N helicopters with UH-60 helicopters
        and transition of the mission to the Army National Guard, as
        detailed in the Air Force Space Command/Army National Guard plan
        entitled ``ARNG Helicopter Support to Air Force Space Command'' and
        dated November 2000.
            (4) Replacement of the UH-1N helicopters with UH-60 helicopters
        or another platform, and establishment of composite units combining
        active duty Air Force and Army National Guard personnel.
            (5) Such other options as the Secretary of Defense considers
        appropriate.
        (c) Factors.--Factors to be considered in preparing the report
    under subsection (a) include the following:
            (1) Any implications of transferring the helicopter support
        missions on the command and control of, and responsibility for,
        missile field force protection.
            (2) Current and future operational requirements, and the
        capabilities of the UH-1N or UH-60 helicopter or other aircraft to
        meet such requirements.
            (3) Cost, with particular attention to opportunities to realize
        efficiencies over the long run.
            (4) Implications for personnel training and retention.
            (5) Evaluation of the assumptions used in the plan specified in
        subsection (b)(3).
        (d) Consideration.--In preparing the report under subsection (a),
    the Secretary of Defense shall consider carefully the views of the
    Secretary of the Army, the Secretary of the Air Force, the commander of
    the United States Strategic Command, and the Chief of the National
    Guard Bureau.
        (e) Submission of Report.--The report required by subsection (a)
    shall be submitted to the congressional defense committees not later
    than the date on which the President submits to Congress the budget
    under section 1105 of title 31, United States Code, for fiscal year
    2003.

               Subtitle E--Other Department of Defense Provisions

    SEC. 1041. SECRETARY OF DEFENSE RECOMMENDATION ON NEED FOR DEPARTMENT
    OF DEFENSE REVIEW OF PROPOSED FEDERAL AGENCY ACTIONS TO CONSIDER
    POSSIBLE IMPACT ON NATIONAL DEFENSE.
        (a) Recommendation on Need for Defense Impact Review Process.--The
    Secretary of Defense shall submit to the President the Secretary's
    recommendation as to whether there should be established within the
    executive branch a defense impact review process. The Secretary shall
    submit a copy of such recommendation to Congress.
        (b) Defense Impact Review Process.--(1) For purposes of this
    section, the term ``defense impact review process'' means a formal
    process within the executive branch--
            (A) to provide for review by the Department of Defense of
        certain proposed actions of other Federal departments and agencies
        to identify any reasonably foreseeable significant adverse impact
        of such a proposed action on national defense; and
            (B) when such a review indicates that a proposed agency action
        may have such an adverse impact--
                (i) to afford the Secretary of Defense a timely opportunity
            to make recommendations for means to eliminate or mitigate any
            such adverse impact; and
                (ii) to afford an opportunity for those recommendations to
            be given reasonable and timely consideration by the agency to
            which provided.
        (2) For purposes of such a review process, the proposed agency
    actions subject to review would be those for which a significant
    adverse impact on national defense is reasonably foreseeable and that
    meet such additional criteria as may be specified by the Secretary of
    Defense.
        (c) Time for Submission of Recommendation.--The Secretary shall
    submit the Secretary's recommendation under subsection (a) not later
    than 180 days after the date of the enactment of this Act.
    SEC. 1042. DEPARTMENT OF DEFENSE REPORTS TO CONGRESS TO
    BE ACCOMPANIED BY ELECTRONIC VERSION UPON REQUEST.
        (a) In General.--Chapter 23 of title 10, United States Code, is
    amended by inserting after the table of sections the following new
    section:
    ``Sec. 480. Reports to Congress: submission in electronic form
        ``(a) Requirement.--Whenever the Secretary of Defense or any other
    official of the Department of Defense submits to Congress (or any
    committee of either House of Congress) a report that the Secretary (or
    other official) is required by law to submit, the Secretary (or other
    official) shall, upon request by any committee of Congress to which the
    report is submitted or referred, provide to Congress (or each such
    committee) a copy of the report in an electronic medium.
        ``(b) Exception.--Subsection (a) does not apply to a report
    submitted in classified form.
        ``(c) Definition.--In this section, the term `report' includes any
    certification, notification, or other communication in writing.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting before the item relating to
    section 481 the following new item:
    ``480. Reports to Congress: submission in electronic form.''.
    SEC. 1043. DEPARTMENT OF DEFENSE GIFT AUTHORITIES.
        (a) Authority To Make Loans and Gifts.--(1) Subsection (a) of
    section 7545 of title 10, United States Code, is amended by striking
    ``(a) Subject to'' and all that follows through ``to--'' and inserting
    the following:
        ``(a) Authority To Make Loans and Gifts.--The Secretary of the Navy
    may lend or give, without expense to the United States, items described
    in subsection (b) that are not needed by the Department of the Navy to
    any of the following:''.
        (2) Such subsection is further amended--
            (A) by capitalizing the first letter after the paragraph
        designation in each of paragraphs (1) through (12);
            (B) by striking the semicolon at the end of paragraphs (1)
        through (10) and inserting a period;
            (C) by striking ``; or'' at the end of paragraph (11) and
        inserting a period;
            (D) in paragraph (5), by striking ``World War I or World War
        II'' and inserting ``a foreign war'';
            (E) in paragraph (6), by striking ``soldiers' monument'' and
        inserting ``servicemen's monument''; and
            (F) in paragraph (8), by inserting ``or memorial'' after
        ``museum''.
        (b) Additional Items Authorized To Be Donated by Secretary of the
    Navy.--Such section is further amended--
            (1) by redesignating subsections (b) and (c) as subsections (d)
        and (e), respectively;
            (2) by inserting after subsection (a) the following new
        subsections:
        ``(b) Items Eligible for Disposal.--This section applies to the
    following types of property held by the Department of the Navy:
            ``(1) Captured, condemned, or obsolete ordnance material.
            ``(2) Captured, condemned, or obsolete combat or shipboard
        material.
        ``(c) Regulations.--A loan or gift made under this section shall be
    subject to regulations prescribed by the Secretary and to regulations
    under section 205 of the Federal Property and Administrative Services
    Act of 1949 (40 U.S.C. 486).''; and
            (3) by adding at the end the following new subsection:
        ``(f) Authority To Transfer a Portion of a Vessel.--The Secretary
    may lend, give, or otherwise transfer any portion of the hull or
    superstructure of a vessel stricken from the Naval Vessel Register and
    designated for scrapping to a qualified organization specified in
    subsection (a). The terms and conditions of an agreement for the
    transfer of a portion of a vessel under this section shall include a
    requirement that the transferee will maintain the material conveyed in
    a condition that will not diminish the historical value of the material
    or bring discredit upon the Navy.''.
        (c) Clerical Amendments.--Such section is further amended--
            (1) in subsection (d) (as redesignated by subsection (b)(1)),
        by inserting ``Maintenance of the Records of the Government.--''
        after the subsection designation; and
            (2) in subsection (e) (as redesignated by subsection (b)(1)),
        by inserting ``Alternative Authorities To Make Gifts or Loans.--''
        after the subsection designation.
        (d) Conforming Amendments.--Section 2572(a) of such title is
    amended--
            (1) in paragraph (1), by inserting ``, county, or other
        political subdivision of a State'' before the period at the end;
            (2) in paragraph (2), by striking ``soldiers' monument'' and
        inserting ``servicemen's monument''; and
            (3) in paragraph (4), by inserting ``or memorial'' after ``An
        incorporated museum''.
    SEC. 1044. ACCELERATION OF RESEARCH, DEVELOPMENT, AND PRODUCTION OF
    MEDICAL COUNTERMEASURES FOR DEFENSE AGAINST BIOLOGICAL WARFARE AGENTS.
        (a) Aggressive Program Required.--(1) The Secretary of Defense
    shall carry out a program to aggressively accelerate the research,
    development, testing, and licensure of new medical countermeasures for
    defense against the biological warfare agents that are the highest
    threat.
        (2) The program shall include the following activities:
            (A) As the program's first priority, investment in multiple new
        technologies for medical countermeasures for defense against the
        biological warfare agents that are the highest threat, including
        for the prevention and treatment of anthrax.
            (B) Leveraging of ideas and technologies from the biological
        technology industry.
        (b) Study Required.--(1) The Secretary of Defense shall enter into
    a contract with the Institute of Medicine and the National Research
    Council under which the Institute and Council, in consultation with the
    Secretary, shall carry out a study of the review and approval process
    for new medical countermeasures for biological warfare agents. The
    purpose of the study shall be to identify--
            (A) new approaches to accelerating such process; and
            (B) definitive and reasonable methods for assuring the agencies
        responsible for regulating such countermeasures that such
        countermeasures will be effective in preventing disease in humans
        or in providing safe and effective therapy against such agents.
        (2) Not later than June 1, 2002, the Institute and Council shall
    jointly submit to Congress a report on the results of the study.
        (c) Facility for Production of Vaccines.--(1) Subject to paragraph
    (2) and to the availability of funds for such purposes appropriated
    pursuant to an authorization of appropriations, the Secretary of
    Defense may--
            (A) design and construct a facility on a Department of Defense
        installation for the production of vaccines to meet the
        requirements of the Department of Defense to prevent or mitigate
        the physiological effects of exposure to biological warfare agents;
            (B) operate that facility;
            (C) qualify and validate that facility for the production of
        vaccines in accordance with the requirements of the Food and Drug
        Administration; and
            (D) contract with a private-sector source for the production of
        vaccines in that facility.
        (2) The authority under paragraph (1)(A) to construct a facility
    may be exercised only to the extent that a project for such
    construction is authorized by law in accordance with section 2802 of
    title 10, United States Code.
        (3) The Secretary shall use competitive procedures under chapter
    137 of title 10, United States Code, to enter into contracts to carry
    out subparagraphs (A), (B), and (D) of paragraph (1).
        (d) Plan Required.--(1) The Secretary shall develop a long-range
    plan to provide for the production and acquisition of vaccines to meet
    the requirements of the Department of Defense to prevent or mitigate
    the physiological effects of exposure to biological warfare agents.
        (2) The plan shall include the following:
            (A) An evaluation of the need for one or more vaccine
        production facilities that are specifically dedicated to meeting
        the requirements of the Department of Defense and other national
        interests.
            (B) An evaluation of the options for the means of production of
        such vaccines, including--
                (i) use of public facilities, private facilities, or a
            combination of public and private facilities; and
                (ii) management and operation of the facilities by the
            Federal Government, one or more private persons, or a
            combination of the Federal Government and one or more private
            persons.
            (C) A specification of the means that the Secretary determines
        is most appropriate for the production of such vaccines.
        (3) The Secretary shall ensure that the plan is consistent with the
    requirement for safe and effective vaccines approved by the Food and
    Drug Administration.
        (4) In preparing the plan, the Secretary shall--
            (A) consider and, as the Secretary determines appropriate,
        include the information compiled and the analyses developed in
        preparing the reports required by sections 217 and 218 of the Floyd
        D. Spence National Defense Authorization Act for Fiscal Year 2001
        (as enacted into law by Public Law 106-398; 114 Stat. 1654A-36,
        1654A-37); and
            (B) consult with the heads of other appropriate departments and
        agencies of the Federal Government.
        (e) Report.--Not later than February 1, 2002, the Secretary shall
    submit to the congressional defense committees a report on the plan
    required by subsection (d). The report shall include, at a minimum, the
    contents of the plan and the following matters:
            (1) A description of the policies and requirements of the
        Department of Defense regarding acquisition and use of such
        vaccines.
            (2) The estimated schedule for the acquisition of such vaccines
        in accordance with the plan.
            (3) A discussion of the options considered under subsection
        (d)(2)(B) for the means of production of such vaccines.
            (4) The Secretary's recommendations for the most appropriate
        course of action to meet the requirements specified in subsection
        (d)(1), together with the justification for such recommendations
        and the long-term cost of implementing such recommendations.
        (f) Funding.--Of the amount authorized to be appropriated under
    section 201(4) for research, development, test, and evaluation,
    Defense-wide, $5,000,000 may be available in Program Element 62384BP,
    and $5,000,000 may be available in Program Element 63384BP, for the
    program required by subsection (a).
    SEC. 1045. CHEMICAL AND BIOLOGICAL PROTECTIVE EQUIPMENT FOR MILITARY
    PERSONNEL AND CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE.
        Not later than 120 days after the date of the enactment of this
    Act, the Secretary of Defense shall submit to Congress a report on the
    requirements of the Department of Defense, including the reserve
    components, regarding chemical and biological protective equipment. The
    report shall set forth the following:
            (1) A description of any current shortfalls with respect to
        requirements regarding chemical and biological protective equipment
        for military personnel, whether for individuals or units.
            (2) An assessment of what should be the appropriate level of
        protection for civilian employees of the Department of Defense
        against chemical and biological attack.
            (3) A plan for providing required chemical and biological
        protective equipment for military personnel and civilian employees
        of the Department of Defense.
            (4) An assessment of the costs associated with carrying out the
        plan described in paragraph (3).
    SEC. 1046. SALE OF GOODS AND SERVICES BY NAVAL MAGAZINE, INDIAN ISLAND,
    ALASKA.
        (a) Sale Authorized.--Subject to subsections (c) and (d) of section
    2563 of title 10, United States Code, the Secretary of the Navy may
    sell to a person outside the Department of Defense any article or
    service provided by the Naval Magazine, Indian Island, Alaska, that is
    not available from a United States commercial source.
        (b) Crediting of Proceeds.--The proceeds from the sale of any
    article or service under this section shall be credited to the
    appropriation supporting the maintenance and operation of the Naval
    Magazine, Indian Island, for the fiscal year in which the proceeds are
    received.
    SEC. 1047. REPORT ON PROCEDURES AND GUIDELINES FOR EMBARKATION OF
    CIVILIAN GUESTS ON NAVAL VESSELS FOR PUBLIC AFFAIRS PURPOSES.
        Not later than February 1, 2002, the Secretary of the Navy shall
    submit to the Committee on Armed Services of the Senate and the
    Committee on Armed Services of the House of Representatives a report
    setting forth in detail the procedures and guidelines of the Navy for
    the embarkation of civilian guests on naval vessels for public affairs
    purposes. The report shall include the following:
            (1) Procedures for nominating and approving civilian guests for
        embarkation on naval vessels.
            (2) Procedures for ensuring that civilian guest embarkations
        are conducted only as part of regularly scheduled operations.
            (3) Guidelines regarding the operation of equipment by civilian
        guests on naval vessels.
            (4) Any other procedures or guidelines the Secretary considers
        necessary or appropriate to ensure that operational readiness and
        safety are not hindered by activities related to the embarkation of
        civilian guests on naval vessels.

    SEC. 1048. TECHNICAL AND CLERICAL AMENDMENTS.

        (a) Title 10, United States Code.--Title 10, United States Code, is
    amended as follows:
            (1) The tables of chapters at the beginning of subtitle A, and
        at the beginning of part II of subtitle A, are each amended by
        striking the period after ``1111'' in the item relating to chapter
        56.
            (2) Section 119(g)(2) is amended by striking ``National
        Security Subcommittee'' and inserting ``Subcommittee on Defense''.
            (3) Section 130c(b)(3)(C) is amended by striking ``subsection
        (f)'' and inserting ``subsection (g)''.
            (4) Section 176(a)(3) is amended by striking ``Chief Medical
        Director'' and inserting ``Under Secretary for Health''.
            (5)(A) Section 503(c) is amended in paragraph (6)(A)(i) by
        striking ``14101(18)'' and ``8801(18)'' and inserting ``14101'' and
        ``8801'', respectively.
            (B) The amendment made by subparagraph (A) shall take effect on
        July 1, 2002, immediately after the amendment to such section
        effective that date by section 563(a) of the Floyd D. Spence
        National Defense Authorization Act for Fiscal Year 2001 (as enacted
        into law by Public Law 106-398; 114 Stat. 1654A-131).
            (6) Section 663(e) is amended--
                (A) by striking ``Armed Forces Staff College'' in paragraph
            (1) and inserting ``Joint Forces Staff College''; and
                (B) by striking ``Armed Forces Staff College'' and
            inserting ``Joint Forces Staff College''.
            (7) Section 667(17) is amended by striking ``Armed Forces Staff
        College'' both places it appears and inserting ``Joint Forces Staff
        College''.
            (8) Section 874(a) is amended by inserting after ``a sentence
        of confinement for life without eligibility for parole'' the
        following: ``that is adjudged for an offense committed after
        October 29, 2000''.
            (9) Section 1056(c)(2) is amended by striking ``, not later
        than September 30, 1991,''.
            (10) The table of sections at the beginning of chapter 55 is
        amended by transferring the item relating to section 1074i, as
        inserted by section 758(b) of the Floyd D. Spence National Defense
        Authorization Act for Fiscal Year 2001 (as enacted by Public Law
        106-398; 114 Stat. 1654A-200), so as to appear after the item
        relating to section 1074h.
            (11) Section 1097a(e) is amended by striking ``section 1072''
        and inserting ``section 1072(2)''.
            (12) Sections 1111(a) and 1114(a)(1) are each amended by
        striking ``hereafter'' and inserting ``hereinafter''.
            (13) Section 1116 is amended--
                (A) in subsection (a)(2)(B), by inserting an open
            parenthesis before ``other than for training''; and
                (B) in subsection (b)(2)(D), by striking ``section
            111(c)(4)'' and inserting ``section 1115(c)(4)''.
            (14) The heading for subchapter II of chapter 75 is transferred
        within that chapter so as to appear before the table of sections at
        the beginning of that subchapter (as if the amendment made by
        section 721(c)(1) of the National Defense Authorization Act for
        Fiscal Year 2000 (Public Law 106-65; 113 Stat. 694) had inserted
        that heading following section 1471 instead of before section
        1475).
            (15) Section 1611(d) is amended by striking ``with''.
            (16) Section 2166(e)(9) is amended by striking ``App. 2'' and
        inserting ``App.''.
            (17) Section 2323(a)(1)(C) is amended--
                (A) by striking ``section 1046(3)'' and inserting ``section
            365(3)'';
                (B) by striking ``20 U.S.C. 1135d-5(3)'' and inserting ``20
            U.S.C. 1067k''; and
                (C) by striking ``, which, for the purposes of this
            section'' and all that follows through the period at the end
            and inserting a period.
            (18) Section 2375(b) is amended by inserting ``(41 U.S.C.
        430)'' after ``section 34 of the Office of Federal Procurement
        Policy Act''.
            (19) Section 2376(1) is amended by inserting ``(41 U.S.C.
        403)'' after ``section 4 of the Office of Federal Procurement
        Policy Act''.
            (20) Section 2410f(a) is amended by inserting after
        ``inscription'' the following: ``, or another inscription with the
        same meaning,''.
            (21) Section 2461a(a)(2) is amended by striking ``effeciency''
        and inserting ``efficiency''.
            (22) Section 2467 is amended--
                (A) in subsection (a)(2)--
                    (i) by striking ``, United States Code'' in
                subparagraph (A); and
                    (ii) by striking ``such'' in subparagraphs (B) and (C);
                and
                (B) in subsection (b)(2)(A), by striking ``United States
            Code,''.
            (23) Section 2535 is amended--
                (A) in subsection (a)--
                    (i) by striking ``intent of Congress'' and inserting
                ``intent of Congress--'';
                    (ii) by realigning clauses (1), (2), (3), and (4) so
                that each such clause appears as a separate paragraph
                indented two ems from the left margin; and
                    (iii) in paragraph (1), as so realigned, by striking
                ``Armed Forces'' and inserting ``armed forces'';
                (B) in subsection (b)(1)--
                    (i) by striking ``in this section, the Secretary is
                authorized and directed to--'' and inserting ``in
                subsection (a), the Secretary of Defense shall--''; and
                    (ii) by striking ``defense industrial reserve'' in
                subparagraph (A) and inserting ``Defense Industrial
                Reserve''; and
                (C) in subsection (c)--
                    (i) by striking paragraph (1);
                    (ii) by redesignating paragraph (2) as paragraph (1)
                and in that paragraph--

                        (I) by striking ``means'' and inserting
                    ``means--'';
                        (II) by realigning clauses (A), (B), and (C) so
                    that each such clause appears as a separate
                    subparagraph indented four ems from the left margin;
                    and
                        (III) by inserting ``and'' at the end of
                    subparagraph (B), as so realigned; and

                    (iii) by redesignating paragraph (3) as paragraph (2).
            (24) Section 2541c is amended by striking ``subtitle'' both
        places it appears in the matter preceding paragraph (1) and
        inserting ``subchapter''.
            (25) The second section 2582, added by section 1(a) of Public
        Law 106-446 (114 Stat. 1932), is redesignated as section 2583, and
        the item relating to that section in the table of sections at the
        beginning of chapter 153 is revised to conform to such
        redesignation.
            (26)(A) Section 2693(a) is amended--
                (i) in the matter preceding paragraph (1), by inserting
            ``of Defense'' after ``Secretary''; and
                (ii) in paragraph (3)--
                    (I) by inserting ``to the Secretary of Defense'' after
                ``certifies'';
                    (II) by inserting ``(42 U.S.C. 3762a)'' after ``of
                1968''; and
                    (III) by striking ``to the public agencies referred to
                in section 515(a)(1) or 515(a)(3) of title I of such Act''
                and inserting ``to a public agency referred to in paragraph
                (1) or (3) of subsection (a) of such section''.
            (B)(i) The heading of such section is amended to read as
        follows:
    ``Sec. 2693. Conveyance of certain property: Department of Justice
         correctional options program''.
            (ii) The item relating to such section in the table of sections
        at the beginning of chapter 159 is amended to read as follows:

    ``2693. Conveyance of certain property: Department of Justice
    correctional options program.''.

            (27) Section 3014(f)(3) is amended by striking ``the number
        equal to'' and all that follows and inserting ``67.''.
            (28) Section 5014(f)(3) is amended by striking ``the number
        equal to'' and all that follows and inserting ``74.''.
            (29) Section 8014(f)(3) is amended by striking ``the number
        equal to'' and all that follows and inserting ``60.''.
            (30) Section 9783(e)(1) is amended by striking ``40101(a)(2)''
        and inserting ``40102(a)(2)''.
            (31) Section 12741(a)(2) is amended by striking ``received''
        and inserting ``receive''.
        (b) Amendments Relating to Change in Title of Under Secretary of
    Defense for Acquisition, Technology, and Logistics.--Title 10, United
    States Code, is further amended as follows:
            (1) Section 133a(b) is amended by striking ``shall assist the
        Under Secretary of Defense for Acquisition and Technology'' and
        inserting ``shall assist the Under Secretary of Defense for
        Acquisition, Technology, and Logistics''.
            (2) The following provisions are each amended by striking
        ``Under Secretary of Defense for Acquisition and Technology'' and
        inserting ``Under Secretary of Defense for Acquisition, Technology,
        and Logistics'': sections 139(c), 139(g) (as redesignated by
        section 263), 171(a)(3), 179(a)(1), 1702, 1703, 1707(a), 1722(a),
        1722(b)(2)(B), 1735(c)(1), 1737(c)(1), 1737(c)(2)(B), 1741(b),
        1746(a), 1761(b)(4), 1763, 2302c(a)(2), 2304(f)(1)(B)(iii),
        2304(f)(6)(B), 2311(c)(1), 2311(c)(2)(B), 2350a(e)(1)(A),
        2350a(e)(2)(B), 2350a(f)(1), 2399(b)(3), 2435(b), 2435(d)(2),
        2521(a), and 2534(i)(3).
            (3)(A) The heading for section 1702 is amended to read as
        follows:
    ``Sec. 1702. Under Secretary of Defense for Acquisition, Technology,
         and Logistics: authorities and responsibilities''.
            (B) The item relating to section 1702 in the table of sections
        at the beginning of subchapter I of chapter 87 is amended to read
        as follows:

    ``1702. Under Secretary of Defense for Acquisition, Technology, and
    Logistics: authorities and responsibilities.''.

            (4) Section 2503(b) is amended by striking ``Under Secretary of
        Defense for Acquisition'' and inserting ``Under Secretary of
        Defense for Acquisition, Technology, and Logistics''.
        (c) Amendments To Substitute Calendar Dates for Date-of-Enactment
    References.--Title 10, United States Code, is further amended as
    follows:
            (1) Section 130c(d)(1) is amended by striking ``the date of the
        enactment of the Floyd D. Spence National Defense Authorization Act
        for Fiscal Year 2001'' and inserting ``October 30, 2000,''.
            (2) Section 184(a) is amended by striking ``the date of the
        enactment of this section,'' and inserting ``October 30, 2000,''.
            (3) Section 986(a) is amended by striking ``the date of the
        enactment of this section,'' and inserting ``October 30, 2000,''.
            (4) Section 1074g(a)(8) is amended by striking ``the date of
        the enactment of this section'' and inserting ``October 5, 1999,''.
            (5) Section 1079(h)(2) is amended by striking ``the date of the
        enactment of this paragraph'' and inserting ``February 10, 1996,''.
            (6) Section 1206(5) is amended by striking ``the date of the
        enactment of the National Defense Authorization Act for Fiscal Year
        2000,'' and inserting ``October 5, 1999,''.
            (7) Section 1405(c)(1) is amended by striking ``the date of the
        enactment of the National Defense Authorization Act for Fiscal Year
        1995,'' and inserting ``October 5, 1994,''.
            (8) Section 1407(f)(2) is amended by striking ``the date of the
        enactment of this subsection--'' and inserting ``October 30, 2000--
        ''.
            (9) Section 1408(d)(6) is amended by striking ``the date of the
        enactment of this paragraph'' and inserting ``August 22, 1996,''.
            (10) Section 1511(b) is amended by striking ``the date of the
        enactment of this chapter.'' and inserting ``February 10, 1996.''.
            (11) Section 2461a(b)(1) is amended by striking ``the date of
        the enactment of this section,'' and inserting ``October 30,
        2000,''.
            (12) Section 4021(c)(1) is amended by striking ``the date of
        the enactment of this section.'' and inserting ``November 29,
        1989.''.
            (13) Section 6328(a) is amended by striking ``the date of the
        enactment of this section'' and inserting ``February 10, 1996,''.
            (14) Section 7439 is amended--
                (A) in subsection (a)(2), by striking ``one year after the
            date of the enactment of this section,'' and inserting
            ``November 18, 1998,'';
                (B) in subsection (b)(1), by striking ``the date of the
            enactment of this section,'' and inserting ``November 18,
            1997,'';
                (C) in subsection (b)(2), by striking ``the end of the one-
            year period beginning on the date of the enactment of this
            section.'' and inserting ``November 18, 1998.''; and
                (D) in subsection (f)(2), by striking ``the date of the
            enactment of this section'' and inserting ``November 18,
            1997,''.
            (15) Section 12533 is amended--
                (A) in each of subsections (b) and (c)(1), by striking
            ``the date of the enactment of this section.'' and inserting
            ``November 18, 1997.''; and
                (B) in each of subsections (c)(2) and (d), by striking
            ``the date of the enactment of this section'' and inserting
            ``November 18, 1997,''.
            (16) Section 12733(3) is amended--
                (A) in subparagraph (B), by striking ``the date of the
            enactment of the Floyd D. Spence National Defense Authorization
            Act for Fiscal Year 2001;'' and inserting ``October 30,
            2000;''; and
                (B) in subparagraph (C), by striking ``the date of the
            enactment of the Floyd D. Spence National Defense Authorization
            Act for Fiscal Year 2001'' and inserting ``October 30, 2000,''.
        (d) Amendments Relating to Change in Title of McKinney-Vento
    Homeless Assistance Act.--The following provisions are each amended by
    striking ``Stewart B. McKinney Homeless Assistance Act'' and inserting
    ``McKinney-Vento Homeless Assistance Act'':
            (1) Sections 2814(j)(2), 2854a(d)(2), and 2878(d)(4) of title
        10, United States Code.
            (2) Sections 2905(b)(6)(A) and 2910(11) of the Defense Base
        Closure and Realignment Act of 1990 (part A of title XXIX of Public
        Law 101-510; 10 U.S.C. 2687 note).
            (3) Section 204(b)(6)(A) of the Defense Authorization
        Amendments and Base Closure and Realignment Act (Public Law 100-
        526; 10 U.S.C. 2687 note).
            (4) Section 2915(c)(10) of the National Defense Authorization
        Act for Fiscal Year 1994 (10 U.S.C. 2687 note).
            (5) Section 2(e)(4)(A) of the Base Closure Community
        Redevelopment and Homeless Assistance Act of 1994 (Public Law 103-
        421; 10 U.S.C. 2687 note).
            (6) Section 1053(a) of the National Defense Authorization Act
        for Fiscal Year 1997 (110 Stat. 2650).
        (e) Amendments To Repeal Obsolete Provisions.--Title 10, United
    States Code, is further amended as follows:
            (1) Section 1144 is amended--
                (A) in subsection (a)(3), by striking the second sentence;
            and
                (B) by striking subsection (e).
            (2) Section 1581(b) is amended--
                (A) by striking ``(1)'' and all that follows through ``The
            Secretary of Defense shall deposit'' and inserting ``The
            Secretary of Defense shall deposit''; and
                (B) by striking ``on or after December 5, 1991,''.
            (3) Subsection (e) of section 1722 is repealed.
            (4) Subsection 1732(a) is amended by striking the second
        sentence.
            (5) Section 1734 is amended--
                (A) in subsection (b)(1)(B), by striking ``on and after
            October 1, 1991,''; and
                (B) in subsection (e)(2), by striking the last sentence.
            (6)(A) Section 1736 is repealed.
            (B) The table of sections at the beginning of subchapter III of
        chapter 87 is amended by striking the item relating to section
        1736.
            (7)(A) Sections 1762 and 1764 are repealed.
            (B) The table of sections at the beginning of subchapter V of
        chapter 87 is amended by striking the items relating to sections
        1762 and 1764.
            (8) Section 2112(a) is amended by striking ``, with the first
        class graduating not later than September 21, 1982''.
            (9) Section 2218(d)(1) is amended by striking ``for fiscal
        years after fiscal year 1993''.
            (10)(A) Section 2468 is repealed.
            (B) The table of sections at the beginning of chapter 146 is
        amended by striking the item relating to section 2468.
            (11) Section 2832 is amended--
                (A) by striking ``(a)'' before ``The Secretary of
            Defense''; and
                (B) by striking subsection (b).
            (12) Section 7430(b)(2) is amended--
                (A) by striking ``at a price less than'' and all that
            follows through ``the current sales price'' and inserting ``at
            a price less than the current sales price'';
                (B) by striking ``; or'' and inserting a period; and
                (C) by striking subparagraph (B).
        (f) Public Law 106-398.--Effective as of October 30, 2000, and as
    if included therein as enacted, the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398) is amended as follows:
            (1) Section 525(b)(1) (114 Stat. 1654A-109) is amended by
        striking ``subsection (c)'' and inserting ``subsections (a) and
        (b)''.
            (2) Section 1152(c)(2) (114 Stat. 1654A-323) is amended by
        inserting ``inserting'' after ``and''.
        (g) Public Law 106-65.--Effective as of October 5, 1999, and as if
    included therein as enacted, the National Defense Authorization Act for
    Fiscal Year 2000 (Public Law 106-65) is amended as follows:
            (1) Section 531(b)(2)(A) (113 Stat. 602) is amended by
        inserting ``in subsection (a),'' after ``(A)''.
            (2) Section 549(a)(2) (113 Stat. 611) is amended by striking
        ``such chapter'' and inserting ``chapter 49 of title 10, United
        States Code,''.
            (3) Section 576(a)(3) (10 U.S.C. 1501 note; 113 Stat. 625) is
        amended by adding a period at the end.
            (4) Section 577(a)(2) (113 Stat. 625) is amended by striking
        ``bad conduct'' in the first quoted matter and inserting ``bad-
        conduct''.
            (5) Section 811(d)(3)(B)(v) (10 U.S.C. 2302 note; 113 Stat.
        709) is amended by striking ``Mentor-Protegee'' and inserting
        ``Mentor-Protege''.
            (6) Section 1052(b)(1) (113 Stat. 764) is amended by striking
        ```The Department'' and inserting ``the `Department''.
            (7) Section 1053(a)(5) (10 U.S.C. 113 note; 113 Stat. 764) is
        amended by inserting ``and'' before ``Marines''.
            (8) Section 1402(f)(2)(A) (22 U.S.C. 2778 note; 113 Stat. 799)
        is amended by striking ``3201 note'' and inserting ``6305(4)''.
            (9) Section 2902(d) (10 U.S.C. 111 note; 113 Stat. 882) is
        amended by striking ``section 2871(b)'' and inserting ``section
        2881(b)''.
        (h) Public Law 102-484.--The National Defense Authorization Act for
    Fiscal Year 1993 (Public Law 102-484) is amended as follows:
            (1) Section 3161(c)(6)(C) (42 U.S.C. 7274h(c)(6)(C)) is amended
        by striking ``title IX of the Public Works and Economic Development
        Act of 1965 (42 U.S.C. 3241 et seq.)'' and inserting ``title II of
        the Public Works and Economic Development Act of 1965 (42 U.S.C.
        3141 et seq.)''.
            (2) Section 4416(b)(1) (10 U.S.C. 12681 note) is amended by
        striking ``force reduction period'' and inserting ``force reduction
        transition period''.
            (3) Section 4461(5) (10 U.S.C. 1143 note) is amended by adding
        a period at the end.
        (i) Other Laws.--
            (1) Section 1083(c) of the National Defense Authorization Act
        for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 113 note) is
        amended by striking ``Names'' and inserting ``Name''.
            (2) Section 845(d)(1)(B)(ii) of the National Defense
        Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10
        U.S.C. 2371 note) is amended by inserting a closing parenthesis
        after ``41 U.S.C. 414(3))''.
            (3) Section 1123(b) of the National Defense Authorization Act
        for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1556)
        is amended by striking ``Armed Forces Staff College'' each place it
        appears and inserting ``Joint Forces Staff College''.
            (4) Section 1412(g)(2)(C)(vii) of the Department of Defense
        Authorization Act, 1986 (50 U.S.C. 1521(g)(2)(C)(vii)) is amended
        by striking ``(c)(3)'' and inserting ``(c)(4)''.
            (5) Section 8336 of title 5, United States Code, is amended--
                (A) in subsection (d)(2), by striking ``subsection (o)''
            and inserting ``subsection (p)''; and
                (B) by redesignating the second subsection (o), added by
            section 1152(a)(2) of the Floyd D. Spence National Defense
            Authorization Act for Fiscal Year 2001 (as enacted by Public
            Law 106-398; 114 Stat. 1654A-320), as subsection (p).
            (6) Section 9001(3) of title 5, United States Code, is amended
        by striking ``and'' at the end of subparagraph (A) and inserting
        ``or''.
            (7) Section 318(h)(3) of title 37, United States Code, is
        amended by striking ``subsection (a)'' and inserting ``subsection
        (b)''.
            (8) Section 3695(a)(5) of title 38, United States Code, is
        amended by striking ``1610'' and inserting ``1611''.
            (9) Section 13(b) of the Peace Corps Act (22 U.S.C. 2512(b)) is
        amended by striking ``, subject to section 5532 of title 5, United
        States Code''.
            (10) Section 127(g)(6) of the Trade Deficit Review Commission
        Act (19 U.S.C. 2213 note), as amended by section 311(b) of the
        Legislative Branch Appropriations Act, 2000 (Public Law 106-57; 113
        Stat. 428), is amended--
                (A) by striking ``authorities.--'' and all that follows
            through ``An individual'' and inserting ``authorities.--An
            individual''; and
                (B) by striking subparagraph (B).
            (11) Section 28 of the Atomic Energy Act of 1954 (42 U.S.C.
        2038) is amended in the last sentence by striking
        ``, subject to'' and all that follows through the period at the end
        and inserting a period.
            (12) Section 3212 of the National Nuclear Security
        Administration Act (50 U.S.C. 2402) is amended by redesignating the
        second subsection (e), added by section 3159(a) of the Floyd D.
        Spence National Defense Authorization Act for Fiscal Year 2001 (as
        enacted by Public Law 106-398; 114 Stat. 1654A-469), as subsection
        (f).
        (j) Coordination With Other Amendments.--For purposes of applying
    amendments made by provisions of this Act other than provisions of this
    section, this section shall be treated as having been enacted
    immediately before the other provisions of this Act.
    SEC. 1049. TERMINATION OF REFERENDUM REQUIREMENT REGARDING CONTINUATION
    OF MILITARY TRAINING ON ISLAND OF VIEQUES, PUERTO RICO, AND IMPOSITION
    OF ADDITIONAL CONDITIONS ON CLOSURE OF TRAINING RANGE.
        (a) In General.--Title XV of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-348) is amended by striking sections 1503,
    1504, and 1505 and inserting the following new sections:
    ``SEC. 1503. CONDITIONS ON CLOSURE OF VIEQUES NAVAL TRAINING RANGE.
        ``(a) Conditional Authority To Close.--The Secretary of the Navy
    may close the Vieques Naval Training Range on the island of Vieques,
    Puerto Rico, and discontinue training at that range only if the
    Secretary certifies to the President and Congress that both of the
    following conditions are satisfied:
            ``(1) One or more alternative training facilities exist that,
        individually or collectively, provide an equivalent or superior
        level of training for units of the Navy and the Marine Corps
        stationed or deployed in the eastern United States.
            ``(2) The alternative facility or facilities are available and
        fully capable of supporting such Navy and Marine Corps training
        immediately upon cessation of training on Vieques.
        ``(b) Consultation Required.--In determining whether the conditions
    specified in paragraphs (1) and (2) of subsection (a) are satisfied,
    the Secretary of the Navy shall take into account the written views and
    recommendations of the Chief of Naval Operations and the Commandant of
    the Marine Corps. The Secretary shall submit these written views and
    recommendations to Congress with the certification submitted under
    subsection (a).
    ``SEC. 1504. CLOSURE OF VIEQUES NAVAL TRAINING RANGE AND DISPOSAL OF
    CLOSED RANGE.
        ``(a) Termination of Training and Related Closures.--If the
    conditions specified in section 1503(a) are satisfied and the Secretary
    of the Navy makes a determination to close the Vieques Naval Training
    Range and discontinue live-fire training at that range the Secretary of
    the Navy shall--
            ``(1) terminate all Navy and Marine Corps training operations
        on the island of Vieques;
            ``(2) terminate all Navy and Marine Corps operations at Naval
        Station Roosevelt Roads, Puerto Rico, that are related exclusively
        to the use of the training range on the island of Vieques by the
        Navy and the Marine Corps; and
            ``(3) close the Navy installations and facilities on the island
        of Vieques, other than properties exempt from conveyance and
        transfer under section 1506.
        ``(b) Transfer to Secretary of the Interior.--Upon termination of
    Navy and Marine Corps training operations on the island of Vieques, the
    Secretary of the Navy shall transfer, without reimbursement, to the
    administrative jurisdiction of the Secretary of the Interior--
            ``(1) the Live Impact Area on the island of Vieques;
            ``(2) all Department of Defense real properties on the eastern
        side of the island that are identified as conservation zones; and
            ``(3) all other Department of Defense real properties on the
        eastern side of the island.
        ``(c) Administration by Secretary of the Interior.--
            ``(1) Retention and administration.--The Secretary of the
        Interior shall retain, and may not dispose of any of, the
        properties transferred under paragraphs (2) and (3) of subsection
        (b) and shall administer such properties as wildlife refuges under
        the National Wildlife Refuge System Administration Act of 1966 (16
        U.S.C. 668dd et seq.) pending the enactment of a law that addresses
        the disposition of such properties.
            ``(2) Live impact area.--The Secretary of the Interior shall
        assume responsibility for the administration of the Live Impact
        Area upon transfer under paragraph (1) of subsection (b),
        administer that area as a wilderness area under the Wilderness Act
        (16 U.S.C. 1131 et seq.), and deny public access to the area.
        ``(d) Live Impact Area Defined.--In this section, the term `Live
    Impact Area' means the parcel of real property, consisting of
    approximately 900 acres (more or less), on the island of Vieques that
    is designated by the Secretary of the Navy for targeting by live
    ordnance in the training of forces of the Navy and Marine Corps.''.
        (b) Conforming Amendment.--Section 1507(c) of such Act (114 Stat.
    1654A-355) is amended by striking ``the issuance of a proclamation
    described in section 1504(a) or''.

                           Subtitle F--Other Matters

    SEC. 1061. ASSISTANCE FOR FIREFIGHTERS.

        (a) Authorization of Appropriations.--Subsection (e) of section 33
    of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229)
    is amended to read as follows:
        ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated
        $900,000,000 for each of the fiscal years 2002 through 2004 for the
        purposes of this section.
            ``(2) Administrative expenses.--Of the funds appropriated
        pursuant to paragraph (1) for a fiscal year, the Director may use
        not more than three percent of the funds to cover salaries and
        expenses and other administrative costs incurred by the Director to
        operate the office established under subsection (b)(2) and make
        grants and provide assistance under this section.''.
        (b) Response to Terrorism or Use of Weapons of Mass Destruction.--
    Subsection (b)(3) of such section is amended--
            (1) in subparagraph (B), by inserting ``(including response to
        a terrorism incident or use of a weapon of mass destruction)''
        after ``response'';
            (2) in subparagraph (H), by striking ``and monitoring'' and
        inserting ``, monitoring, and response to a terrorism incident or
        use of a weapon of mass destruction''; and
            (3) in subparagraph (I), by inserting ``, including protective
        equipment to respond to a terrorism incident or the use of a weapon
        of mass destruction'' after ``personnel'' the second place it
        appears.
        (c) Technical Amendments.--Subsection (b)(3) of such section is
    further amended--
            (1) by striking ``the grant funds--'' in the matter preceding
        subparagraph (A) and inserting ``the grant funds for one or more of
        the following purposes:'';
            (2) by capitalizing the initial letter of the first word of
        each of subparagraphs (A) through (N);
            (3) by striking the semicolon at the end of each of
        subparagraphs (A) through (L) and inserting a period; and
            (4) by striking ``; or'' at the end of subparagraph (M) and
        inserting a period.
    SEC. 1062. EXTENSION OF TIMES FOR COMMISSION ON THE FUTURE OF THE
    UNITED STATES AEROSPACE INDUSTRY TO REPORT AND TO TERMINATE.
        (a) Deadline for Report.--Subsection (d)(1) of section 1092 of the
    Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001
    (as enacted into law by Public Law 106-398; 114 Stat. 1654A-302) is
    amended by striking ``March 1, 2002'' and inserting ``one year after
    the date of the first official meeting of the Commission''.
        (b) Termination of Commission.--Subsection (g) of such section is
    amended by striking ``30 days'' and inserting ``60 days''.
    SEC. 1063. APPROPRIATIONS TO RADIATION EXPOSURE COMPENSATION TRUST
    FUND.
        Section 3(e) of the Radiation Exposure Compensation Act (42 U.S.C.
    2210 note) is amended to read as follows:
        ``(e) Appropriation.--
            ``(1) In general.--There are appropriated to the Fund, out of
        any money in the Treasury not otherwise appropriated, for fiscal
        year 2002 and each fiscal year thereafter through fiscal year 2011,
        such sums as may be necessary, not to exceed the applicable maximum
        amount specified in paragraph (2), to carry out the purposes of the
        Fund.
            ``(2) Limitation.--Appropriation of amounts to the Fund
        pursuant to paragraph (1) is subject to the following maximum
        amounts:
                ``(A) For fiscal year 2002, $172,000,000.
                ``(B) For fiscal year 2003, $143,000,000.
                ``(C) For fiscal year 2004, $107,000,000.
                ``(D) For fiscal year 2005, $65,000,000.
                ``(E) For fiscal year 2006, $47,000,000.
                ``(F) For fiscal year 2007, $29,000,000.
                ``(G) For fiscal year 2008, $29,000,000.
                ``(H) For fiscal year 2009, $23,000,000.
                ``(I) For fiscal year 2010, $23,000,000.
                ``(J) For fiscal year 2011, $17,000,000.''.
    SEC. 1064. WAIVER OF VEHICLE WEIGHT LIMITS DURING PERIODS OF NATIONAL
    EMERGENCY.
        Section 127 of title 23, United States Code, is amended by adding
    at the end the following new subsection:
        ``(h) Waiver for a Route in State of Maine During Periods of
    National Emergency.--
            ``(1) In general.--Notwithstanding any other provision of this
        section, the Secretary, in consultation with the Secretary of
        Defense, may waive or limit the application of any vehicle weight
        limit established under this section with respect to the portion of
        Interstate Route 95 in the State of Maine between Augusta and
        Bangor for the purpose of making bulk shipments of jet fuel to the
        Air National Guard Base at Bangor International Airport during a
        period of national emergency in order to respond to the effects of
        the national emergency.
            ``(2) Applicability.--Emergency limits established under
        paragraph (1) shall preempt any inconsistent State vehicle weight
        limits.''.
    SEC. 1065. REPAIR, RESTORATION, AND PRESERVATION OF LAFAYETTE
    ESCADRILLE MEMORIAL, MARNES-LA-COQUETTE, FRANCE.
        (a) Authority To Make Grant.--(1) Subject to subsections (b) and
    (c), the Secretary of the Air Force may make a grant to the Lafayette
    Escadrille Memorial Foundation, Inc., to be used solely for the purpose
    of repairing, restoring, and preserving the structure, plaza, and
    surrounding grounds of the Lafayette Escadrille Memorial in Marnes la-
    Coquette, France.
        (2) The amount of the grant may not exceed $2,000,000.
        (b) Contribution of Funds by France.--The Secretary of the Air
    Force may not make the grant authorized by subsection (a) until 30 days
    after the Secretary submits to Congress a report indicating that the
    government of France has also contributed funds toward the repair,
    restoration, and preservation of the memorial. The report shall specify
    the amount of the funds contributed by the government of France and
    describe the purpose for which the funds are to be used.
        (c) Conditions on Receipt of Grant.--(1) The grant under subsection
    (a) shall be subject to the following conditions:
            (A) That the Lafayette Escadrille Memorial Foundation submit to
        the Secretary of the Air Force an annual report, until the grant
        funds are fully expended, containing an itemized accounting of
        expenditures of grant funds and describing the progress made to
        repair, restore, and preserve the memorial.
            (B) That the Secretary and the Comptroller General of the
        United States, or any of their duly authorized representatives, be
        given access for the purpose of audit and examination to any books,
        documents, papers, and records of the Lafayette Escadrille Memorial
        Foundation.
            (C) That none of the grant funds be used for remuneration of
        any entity or individual associated with fundraising for any
        project in connection with the repair, restoration, and
        preservation of the memorial.
        (2) The Secretary shall transmit to Congress a copy of each report
    received under paragraph (1)(A).
        (d) Report on Architectural and Engineering Costs.--Not later than
    one year after the date of the enactment of this Act, the Secretary of
    the Air Force shall submit to Congress a report containing an estimate
    of the architectural and engineering costs to be incurred to fully
    repair, restore, and preserve the memorial and ensure the long-term
    structural integrity of the memorial. The estimate shall be prepared by
    a private United States entity, under contract with the Secretary.
    Funds for the contract shall also be derived from the amount specified
    in subsection (e).
        (e) Funds for Grant.--Funds for the grant under subsection (a)
    shall be derived only from amounts authorized to be appropriated under
    section 301(a)(4) for operation and maintenance for the Air Force.

                      TITLE XI--CIVILIAN PERSONNEL MATTERS

              Subtitle A--Department of Defense Civilian Personnel

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

               Subtitle B--Civilian Personnel Management Generally

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

                   Subtitle C--Intelligence Civilian Personnel

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

                   Subtitle D--Matters Relating To Retirement

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

              Subtitle A--Department of Defense Civilian Personnel

    SEC. 1101. PERSONNEL PAY AND QUALIFICATIONS AUTHORITY FOR DEPARTMENT OF
    DEFENSE PENTAGON RESERVATION CIVILIAN LAW ENFORCEMENT AND SECURITY
    FORCE.
        Section 2674(b) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before the text in the first paragraph
        of that subsection;
            (2) by redesignating paragraphs (1) and (2) as subparagraphs
        (A) and (B), respectively; and
            (3) by adding at the end the following new paragraph:
        ``(2) For positions for which the permanent duty station is the
    Pentagon Reservation, the Secretary, in his sole and exclusive
    discretion, may without regard to the pay provisions of title 5, fix
    the rates of basic pay for such positions occupied by civilian law
    enforcement and security personnel appointed under the authority of
    this section so as to place such personnel on a comparable basis with
    personnel of other similar Federal law enforcement and security
    organizations within the vicinity of the Pentagon Reservation, not to
    exceed the basic pay for personnel performing similar duties in the
    United States Secret Service Uniformed Division or the United States
    Park Police.''.
    SEC. 1102. PILOT PROGRAM FOR PAYMENT OF RETRAINING EXPENSES.
        (a) Authority To Carry Out Pilot Program.--(1) The Secretary of
    Defense may establish a pilot program to facilitate the reemployment of
    eligible employees of the Department of Defense who are involuntarily
    separated due to a reduction in force, relocation as a result of a
    transfer of function, realignment, or change of duty station. Under the
    pilot program, the Secretary may pay retraining incentives to encourage
    non-Federal employers to hire and retain such eligible employees.
        (2) Under the pilot program, the Secretary may enter into an
    agreement with a non-Federal employer under which the employer agrees--
            (A) to employ an eligible employee for at least 12 months at a
        salary that is mutually agreeable to the employer and the eligible
        employee; and
            (B) to certify to the Secretary the amount of costs incurred by
        the employer for any necessary training (as defined by the
        Secretary) provided to such eligible employee in connection with
        the employment.
        (3) The Secretary may pay a retraining incentive to the non-Federal
    employer upon the employee's completion of 12 months of continuous
    employment with that employer. The Secretary shall determine the amount
    of the incentive, except that in no event may such amount exceed the
    lesser of the amount certified with respect to such eligible employee
    under paragraph (2)(B), or $10,000.
        (4) In a case in which an eligible employee does not remain
    employed by the non-Federal employer for at least 12 months, the
    Secretary may pay to the employer a prorated amount of what would have
    been the full retraining incentive if the eligible employee had
    remained employed for such 12-month period.
        (b) Eligible Employees.--For purposes of this section, an eligible
    employee is an employee of the Department of Defense, serving under an
    appointment without time limitation, who has been employed by the
    Department for a continuous period of at least 12 months and who has
    been given notice of separation pursuant to a reduction in force,
    relocation as a result of a transfer of function, realignment, or
    change of duty station, except that such term does not include--
            (1) a reemployed annuitant under the retirement systems
        described in subchapter III of chapter 83 of title 5, United States
        Code, or chapter 84 of such title, or another retirement system for
        employees of the Federal Government;
            (2) an employee who, upon separation from Federal service, is
        eligible for an immediate annuity under subchapter III of chapter
        83 of such title, or subchapter II of chapter 84 of such title; or
            (3) an employee who is eligible for disability retirement under
        any of the retirement systems referred to in paragraph (1).
        (c) Duration.--No incentive may be paid under the pilot program for
    training commenced after September 30, 2005.
        (d) Definitions.--In this section:
            (1) The term ``non-Federal employer'' means an employer that is
        not an Executive agency, as defined in section 105 of title 5,
        United States Code, or an entity in the legislative or judicial
        branch of the Federal Government.
            (2) The term ``reduction in force'' has the meaning of that
        term as used in chapter 35 of such title 5.
            (3) The term ``realignment'' has the meaning given that term in
        section 2910 of the Defense Base Closure and Realignment Act of
        1990 (title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).
    SEC. 1103. AUTHORITY OF CIVILIAN EMPLOYEES TO ACT AS NOTARIES.
        (a) Clarification of Status of Civilian Attorneys Eligible To Act
    as Notaries.--Subsection (b) of section 1044a of title 10, United
    States Code, is amended by striking ``legal assistance officers'' in
    paragraph (2) and inserting ``legal assistance attorneys''.
        (b) Other Civilian Employees Designated To Act as Notaries
    Abroad.--Such subsection is further amended by adding at the end the
    following new paragraph:
            ``(5) For the performance of notarial acts at locations outside
        the United States, all employees of a military department or the
        Coast Guard who are designated by regulations of the Secretary
        concerned or by statute to have those powers for exercise outside
        the United States.''.
    SEC. 1104. AUTHORITY TO APPOINT CERTAIN HEALTH CARE PROFESSIONALS IN
    THE EXCEPTED SERVICE.
        (a) Authority.--Chapter 81 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 1599c. Appointment in excepted service of certain health care
          professionals
        ``(a) Authority.--The Secretary of Defense may appoint in the
    excepted service without regard to the provisions of subchapter I of
    chapter 33 of title 5 (except as provided in section 3328 of such title
    and in subsection (c) of this section) an individual who has--
            ``(1) a recognized degree or certificate from an accredited
        institution in a covered health care profession or occupation; and
            ``(2) successfully completed a clinical education program
        affiliated with the Department of Defense or the Department of
        Veterans Affairs.
        ``(b) Covered Health Care Profession or Occupation.--For purposes
    of subsection (a), a covered health care profession or occupation is
    any of the following:
            ``(1) Physician.
            ``(2) Dentist.
            ``(3) Podiatrist.
            ``(4) Optometrist.
            ``(5) Nurse.
            ``(6) Physician assistant.
            ``(7) Expanded-function dental auxiliary.
        ``(c) Preferences in Hiring.--In using the authority provided by
    this section, the Secretary shall apply the principles of preference
    for the hiring of veterans and other individuals established in
    subchapter I of chapter 33 of title 5.
        ``(d) Probationary Period.--There shall be an initial probationary
    period of two years for appointments made under the authority of this
    section.
        ``(e) Promotions and Advancement.--(1) Promotions of individuals
    appointed under the authority of this section shall be made only after
    an examination performed in accordance with regulations prescribed by
    the Secretary.
        ``(2) Advancement of such individuals within a pay grade may be
    made in increments of the minimum rate of basic pay of the grade in
    accordance with regulations prescribed by the Secretary.
        ``(f) Review of Records by Board.--The record of each individual
    appointed under the authority of this section in the medical, dental,
    and nursing services shall be reviewed periodically by a board, which
    shall be appointed in accordance with regulations prescribed by the
    Secretary. If such board finds that such individual is not fully
    qualified and satisfactory, such individual shall be separated from
    service.
        ``(g) Adjustment of Pay.--In accordance with regulations prescribed
    by the Secretary, the grade and annual rate of basic pay of an
    individual appointed under this section whose level of assignment is
    changed from a level of assignment in which the grade level is based on
    both the nature of the assignment and qualifications may be adjusted to
    the grade and annual rate of basic pay otherwise appropriate.
        ``(h) Appointment to Additional Positions.--(1) The Secretary may
    use the authority of this subsection (subject to paragraph (2)) to
    establish the qualifications for, and appoint and advance an individual
    in the Department of Defense as--
            ``(A) a clinical or counseling psychologist (if such
        psychologist holds a diploma as a diplomate in psychology from an
        accrediting authority approved by the Secretary);
            ``(B) a certified or registered respiratory therapist;
            ``(C) a licensed physical therapist;
            ``(D) a licensed practical or vocational nurse;
            ``(E) a pharmacist; or
            ``(F) an occupational therapist.
        ``(2) Notwithstanding any other provision of this title or any
    other law, all matters relating to adverse actions, disciplinary
    actions, and grievance procedures involving an individual appointed to
    a position described in paragraph (1) (including such actions and
    procedures involving an employee in a probationary status) shall be
    resolved under the provisions of title 5 as though such individual had
    been appointed under such title.
        ``(i) Reinstatement.--In determining eligibility for reinstatement
    in the civil service of individuals appointed to positions in the
    Department of Defense under this section who at the time of appointment
    have a civil service status and whose employment in the Department of
    Defense is terminated, the period of service performed in the
    Department shall be included in computing the period of service under
    applicable civil service regulations.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``1599c. Appointment in excepted service of certain health care
    professionals.''.

              Subtitle B--Civilian Personnel Management Generally

    SEC. 1111. AUTHORITY TO PROVIDE HOSTILE FIRE PAY.

        (a) In General.--Subchapter IV of chapter 59 of title 5, United
    States Code, is amended by adding at the end the following new section:

    ``Sec. 5949. Hostile fire pay

        ``(a) The head of an Executive agency may pay an employee hostile
    fire pay at the rate of $150 for any month in which the employee was--
            ``(1) subject to hostile fire or explosion of hostile mines;
            ``(2) on duty in an area in which the employee was in imminent
        danger of being exposed to hostile fire or explosion of hostile
        mines and in which, during the period on duty in that area, other
        employees were subject to hostile fire or explosion of hostile
        mines; or
            ``(3) killed, injured, or wounded by hostile fire, explosion of
        a hostile mine, or any other hostile action.
        ``(b) An employee covered by subsection (a)(3) who is hospitalized
    for the treatment of his or her injury or wound may be paid hostile
    fire pay under this section for not more than three additional months
    during which the employee is so hospitalized.
        ``(c) An employee may be paid hostile fire pay under this section
    in addition to other pay and allowances to which entitled, except that
    an employee may not be paid hostile fire pay under this section for
    periods of time during which the employee receives payment under
    section 5925 of this title because of exposure to political violence or
    payment under section 5928 of this title.''.
        (b) Technical Amendment.--The table of sections at the beginning of
    chapter 59 of such title is amended by inserting at the end the
    following new item:
    ``5949. Hostile fire pay.''.

        (c) Effective Date.--This provision is effective as if enacted into
    law on September 11, 2001, and may be applied with respect to any
    hostile action that took place on or after that date.
    SEC. 1112. PAYMENT OF EXPENSES TO OBTAIN PROFESSIONAL CREDENTIALS.
        (a) In General.--Chapter 57 of title 5, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 5757. Payment of expenses to obtain professional credentials
        ``(a) An agency may use appropriated funds or funds otherwise
    available to the agency to pay for--
            ``(1) expenses for employees to obtain professional
        credentials, including expenses for professional accreditation,
        State-imposed and professional licenses, and professional
        certification; and
            ``(2) examinations to obtain such credentials.
        ``(b) The authority under subsection (a) may not be exercised on
    behalf of any employee occupying or seeking to qualify for appointment
    to any position that is excepted from the competitive service because
    of the confidential, policy-determining, policy-making, or policy-
    advocating character of the position.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``5757. Payment of expenses to obtain professional credentials.''.

    SEC. 1113. PARITY IN ESTABLISHMENT OF WAGE SCHEDULES AND RATES FOR
    PREVAILING RATE EMPLOYEES.
        (a) In General.--Paragraph (2) of section 5343(d) of title 5,
    United States Code, is amended to read as follows:
        ``(2) When the lead agency determines that there is a number of
    comparable positions in private industry insufficient to establish the
    wage schedules and rates, such agency shall establish the wage
    schedules and rates on the basis of--
            ``(A) local private industry rates; and
            ``(B) rates paid for comparable positions in private industry
        in the nearest wage area that such agency determines is most
        similar in the nature of its population, employment, manpower, and
        industry to the local wage area for which the wage survey is being
        made.''.
        (b) Effective Date.--Wage adjustments made pursuant to the
    amendment made by this section shall take effect in each applicable
    wage area on the first normal effective date of the applicable wage
    survey adjustment that occurs after the date of the enactment of this
    Act.
    SEC. 1114. MODIFICATION OF LIMITATION ON PREMIUM PAY.
        (a) In General.--Section 5547 of title 5, United States Code, is
    amended to read as follows:

    ``Sec. 5547. Limitation on premium pay

        ``(a) An employee may be paid premium pay under sections 5542, 5545
    (a), (b), and (c), 5545a, and 5546 (a) and (b) only to the extent that
    the payment does not cause the aggregate of basic pay and such premium
    pay for any pay period for such employee to exceed the greater of--
            ``(1) the maximum rate of basic pay payable for GS-15
        (including any applicable locality-based comparability payment
        under section 5304 or similar provision of law and any applicable
        special rate of pay under section 5305 or similar provision of
        law); or
            ``(2) the rate payable for level V of the Executive Schedule.
        ``(b)(1) Subject to regulations prescribed by the Office of
    Personnel Management, subsection (a) shall not apply to an employee who
    is paid premium pay by reason of work in connection with an emergency
    (including a wildfire emergency) that involves a direct threat to life
    or property, including work performed in the aftermath of such an
    emergency.
        ``(2) Notwithstanding paragraph (1), no employee referred to in
    such paragraph may be paid premium pay under the provisions of law
    cited in subsection (a) if, or to the extent that, the aggregate of the
    basic pay and premium pay under those provisions for such employee
    would, in any calendar year, exceed the greater of--
            ``(A) the maximum rate of basic pay payable for GS-15 in effect
        at the end of such calendar year (including any applicable
        locality-based comparability payment under section 5304 or similar
        provision of law and any applicable special rate of pay under
        section 5305 or similar provision of law); or
            ``(B) the rate payable for level V of the Executive Schedule in
        effect at the end of such calendar year.
        ``(3) Subject to regulations prescribed by the Office of Personnel
    Management, the head of an agency may determine that subsection (a)
    shall not apply to an employee who is paid premium pay to perform work
    that is critical to the mission of the agency. Such employees may be
    paid premium pay under the provisions of law cited in subsection (a)
    if, or to the extent that, the aggregate of the basic pay and premium
    pay under those provisions for such employee would not, in any calendar
    year, exceed the greater of--
            ``(A) the maximum rate of basic pay payable for GS-15 in effect
        at the end of such calendar year (including any applicable
        locality-based comparability payment under section 5304 or similar
        provision of law and any applicable special rate of pay under
        section 5305 or similar provision of law); or
            ``(B) the rate payable for level V of the Executive Schedule in
        effect at the end of such calendar year.
        ``(c) The Office of Personnel Management shall prescribe
    regulations governing the methods of applying subsection (b)(2) and
    (b)(3) to employees who receive premium pay under section 5545(c) or
    5545a, or to firefighters covered by section 5545b who receive overtime
    pay for hours in their regular tour of duty, and the method of payment
    to such employees. Such regulations may limit the payment of such
    premium pay on a biweekly basis.
        ``(d) This section shall not apply to any employee of the Federal
    Aviation Administration or the Department of Defense who is paid
    premium pay under section 5546a.''.
        (b) Conforming Amendment.--Section 118 of the Treasury and General
    Government Appropriations Act, 2001 (as enacted into law by section
    1(3) of Public Law 106-554; 114 Stat. 2763A-134) is amended by striking
    ``limitation on the rate of pay payable during a pay period contained
    in section 5547(c)(2)'' and inserting ``restrictions contained in
    section 5547''.
        (c) Effective Date.--The amendments made by subsections (a) and (b)
    shall take effect on the first day of the first pay period beginning on
    or after the date that is 120 days following the date of enactment of
    this Act.
    SEC. 1115. PARTICIPATION OF PERSONNEL IN TECHNICAL STANDARDS
    DEVELOPMENT ACTIVITIES.
        Subsection (d) of section 12 of the National Technology Transfer
    and Advancement Act of 1995 (Pub. Law 104-113; 15 U.S.C. 272 note) is
    amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new
        paragraph (4):
            ``(4) Expenses of government personnel.--Section 5946 of title
        5, United States Code, shall not apply with respect to any activity
        of an employee of a Federal agency or department that is determined
        by the head of that agency or department as being an activity
        undertaken in carrying out this subsection.''.
    SEC. 1116. RETENTION OF TRAVEL PROMOTIONAL ITEMS.
        (a) Definition.--In this section, the term ``agency'' has the
    meaning given that term under section 5701 of title 5, United States
    Code.
        (b) Retention of Travel Promotional Items.--To the extent provided
    under subsection (c), a Federal employee, member of the Foreign
    Service, member of a uniformed service, any family member or dependent
    of such an employee or member, or other individual who receives a
    promotional item (including frequent flyer miles, upgrade, or access to
    carrier clubs or facilities) as a result of using travel or
    transportation services obtained at Federal Government expense or
    accepted under section 1353 of title 31, United States Code, may retain
    the promotional item for personal use if the promotional item is
    obtained under the same terms as those offered to the general public
    and at no additional cost to the Federal Government.
        (c) Limitation.--Subsection (b)--
            (1) applies only to travel that--
                (A) is at the expense of an agency; or
                (B) is accepted by an agency under section 1353 of title
            31, United States Code; and
            (2) does not apply to travel by any officer, employee, or other
        official of the Government who is not in or under any agency.
        (d) Regulatory Authority.--Any agency with authority to prescribe
    regulations governing the acquisition, acceptance, use, or disposal of
    any travel or transportation services obtained at Government expense or
    accepted under section 1353 of title 31, United States Code, may
    prescribe regulations to carry out subsection (b) with respect to those
    travel or transportation services.
        (e) Repeal of Superseded Law.--Section 6008 of the Federal
    Acquisition Streamlining Act of 1994 (5 U.S.C. 5702 note; Public Law
    103-355) is repealed.
        (f) Applicability.--This section shall apply with respect to
    promotional items received before, on, or after the date of enactment
    of this Act.
    SEC. 1117. APPLICABILITY OF CERTAIN LAWS TO CERTAIN INDIVIDUALS
    ASSIGNED TO WORK IN THE FEDERAL GOVERNMENT.
        Section 3374(c)(2) of title 5, United States Code, is amended by
    inserting ``the Ethics in Government Act of 1978, section 27 of the
    Office of Federal Procurement Policy Act,'' after ``chapter 73 of this
    title,''.

                  Subtitle C--Intelligence Civilian Personnel

    SEC. 1121. AUTHORITY TO INCREASE MAXIMUM NUMBER OF POSITIONS IN THE
    DEFENSE INTELLIGENCE SENIOR EXECUTIVE SERVICE.
        Section 1606(a) of title 10, United States Code, is amended by
    striking ``517'' and inserting ``544''.

                   Subtitle D--Matters Relating To Retirement

    SEC. 1131. IMPROVED PORTABILITY OF RETIREMENT COVERAGE FOR EMPLOYEES
    MOVING BETWEEN CIVIL SERVICE EMPLOYMENT AND EMPLOYMENT BY
    NONAPPROPRIATED FUND INSTRUMENTALITIES.
        (a) Civil Service Retirement System.--Section 8347(q) of title 5,
    United States Code, is amended--
            (1) in paragraph (1)--
                (A) by inserting ``and'' at the end of subparagraph (A);
                (B) by striking subparagraph (B); and
                (C) by redesignating subparagraph (C) as subparagraph (B);
            and
            (2) in paragraph (2)(B)--
                (A) by striking ``vested''; and
                (B) by striking ``, as the term'' and all that follows
            through ``such system''.
        (b) Federal Employees' Retirement System.--Section 8461(n) of such
    title is amended--
            (1) in paragraph (1)--
                (A) by inserting ``and'' at the end of subparagraph (A);
                (B) by striking subparagraph (B); and
                (C) by redesignating subparagraph (C) as subparagraph (B);
            and
            (2) in paragraph (2)(B)--
                (A) by striking ``vested''; and
                (B) by striking ``, as the term'' and all that follows
            through ``such system''.
    SEC. 1132. FEDERAL EMPLOYMENT RETIREMENT CREDIT FOR NONAPPROPRIATED
    FUND INSTRUMENTALITY SERVICE.
        (a) Civil Service Retirement System.--(1) Section 8332(b) of title
    5, United States Code, is amended--
            (A) by striking ``and'' at the end of paragraph (15);
            (B) by striking the period at the end of paragraph (16) and
        inserting ``; and'';
            (C) by inserting after paragraph (16) the following new
        paragraph:
            ``(17) service performed by any individual as an employee paid
        from nonappropriated funds of an instrumentality of the Department
        of Defense or the Coast Guard described in section 2105(c) that is
        not covered by paragraph (16) and that is not otherwise creditable,
        if the individual elects (in accordance with regulations prescribed
        by the Office) to have such service credited under this
        paragraph.'';
            (D) in the last sentence, by inserting ``or (17)'' after
        ``service of the type described in paragraph (16)''; and
            (E) by inserting after the last sentence the following:
        ``Service credited under paragraph (17) may not also be credited
        under any other retirement system provided for employees paid from
        nonappropriated funds of a nonappropriated fund instrumentality.''.
        (2) Section 8334 of such title is amended by adding at the end the
    following new subsection:
        ``(n) Notwithstanding subsection (c), no deposit may be made with
    respect to service credited under section 8332(b)(17).''.
        (3) Section 8339 of such title is amended by adding at the end the
    following new subsection:
        ``(u) The annuity of an employee retiring under this subchapter
    with service credited under section 8332(b)(17) shall be reduced by the
    amount necessary to ensure that the present value of the annuity
    payable to the employee is actuarially equivalent to the present value
    of the annuity that would be payable to the employee under this
    subchapter if it were computed--
            ``(1) on the basis of service that does not include service
        credited under section 8332(b)(17); and
            ``(2) assuming the employee separated from service on the
        actual date of the separation of the employee.
    The amount of the reduction shall be computed under regulations
    prescribed by the Office of Personnel Management for the administration
    of this subsection.''.
        (b) Federal Employees' Retirement System.--(1) Section 8411 of such
    title is amended--
            (A) in subsection (b)--
                (i) by striking ``and'' at the end of paragraph (4);
                (ii) by striking the period at the end of paragraph (5) and
            inserting ``; and''; and
                (iii) by inserting after paragraph (5) the following new
            paragraph:
            ``(6) service performed by any individual as an employee paid
        from nonappropriated funds of an instrumentality of the Department
        of Defense or the Coast Guard described in section 2105(c) that is
        not otherwise creditable, if the individual elects (in accordance
        with regulations prescribed by the Office) to have such service
        credited under this paragraph.''; and
            (B) by adding at the end the following new subsection:
        ``(k)(1) The Office of Personnel Management shall accept, for the
    purposes of this chapter, the certification of the head of a
    nonappropriated fund instrumentality of the United States concerning
    service of the type described in subsection (b)(6) that was performed
    for such nonappropriated fund instrumentality.
        ``(2) Service credited under subsection (b)(6) may not also be
    credited under any other retirement system provided for employees paid
    from nonappropriated funds of a nonappropriated fund
    instrumentality.''.
        (2)(A) Section 8422 of such title is amended by adding at the end
    the following new subsection:
        ``(h) No deposit may be made with respect to service credited under
    section 8411(b)(6).''.
        (B) The heading for such section is amended to read as follows:
    ``Sec. 8422. Deductions from pay; contributions for other service''.
        (C) The item relating to such section in the table of contents at
    the beginning of chapter 84 of title 5, United States Code, is amended
    to read as follows:

    ``8422. Deductions from pay; contributions for other service.''.

        (3) Section 8415 of such title is amended by adding at the end the
    following new subsection:
        ``(j) The annuity of an employee retiring under this chapter with
    service credited under section 8411(b)(6) shall be reduced by the
    amount necessary to ensure that the present value of the annuity
    payable to the employee under this subchapter is actuarially equivalent
    to the present value of the annuity that would be payable to the
    employee under this subchapter if it were computed--
            ``(1) on the basis of service that does not include service
        credited under section 8411(b)(6); and
            ``(2) assuming the employee separated from service on the
        actual date of the separation of the employee.
    The amount of the reduction shall be computed under regulations
    prescribed by the Office of Personnel Management for the administration
    of this subsection.''.
        (c) Applicability.--The amendments made by this section shall apply
    only to separations from service as an employee of the United States on
    or after the date of the enactment of this Act.
    SEC. 1133. MODIFICATION OF LIMITATIONS ON EXERCISE OF VOLUNTARY
    SEPARATION INCENTIVE PAY AUTHORITY AND VOLUNTARY EARLY RETIREMENT
    AUTHORITY.
        (a) In General.--Section 1153(b) of the Floyd D. Spence National
    Defense Authorization Act for Fiscal Year 2001 (as enacted into law by
    Public Law 106-398; 114 Stat. 1654A-323) is amended--
            (1) in paragraph (1)--
                (A) by striking ``(1) Subject to paragraph (2), the'' and
            inserting ``The'';
                (B) by striking ``in each of fiscal years 2002 and 2003,
            not more than 4000 employees of the Department of Defense are''
            and inserting ``in fiscal year 2002 not more than 2000
            employees of the Department of Defense are, and in fiscal year
            2003 not more than 6000 employees of the Department of Defense
            are''; and
                (C) by redesignating subparagraphs (A) and (B) as
            paragraphs (1) and (2), respectively; and
            (2) by striking paragraph (2).
        (b) Construction.--The amendments made by subsection (a) may be
    superceded by another provision of law that takes effect after the date
    of the enactment of this Act, and before October 1, 2003, establishing
    a uniform system of providing voluntary separation incentives
    (including a system for requiring approval of plans by the Office of
    Management and Budget) for employees of the Federal Government.

                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

           Subtitle A--Matters Related to Arms Control and Monitoring

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

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

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

                               Subtitle C--Reports

    Sec. 1221. Report on significant sales and transfers of military
    hardware, expertise, and technology to the People's Republic of China.
    Sec. 1222. Repeal of requirement for reporting to Congress on military
    deployments to Haiti.
    Sec. 1223. Report by Comptroller General on provision of defense
    articles, services, and military education and training to foreign
    countries and international organizations.

           Subtitle A--Matters Related to Arms Control and Monitoring

    SEC. 1201. CLARIFICATION OF AUTHORITY TO FURNISH NUCLEAR TEST
    MONITORING EQUIPMENT TO FOREIGN GOVERNMENTS.
        (a) Redesignation of Existing Section.--(1) The second section 2555
    of title 10, United States Code, added by section 1203(a) of the Floyd
    D. Spence National Defense Authorization Act for Fiscal Year 2001 (as
    enacted into law by Public Law 106-398; 114 Stat. 1654A-324), is
    redesignated as section 2565.
        (2) The item relating to that section in the table of sections at
    the beginning of chapter 152 of that title is amended to read as
    follows:

    ``2565. Nuclear test monitoring equipment: furnishing to foreign
    governments.''.

        (b) Clarification of Authority.--Section 2565 of that title, as so
    redesignated by subsection (a), is amended--
            (1) in subsection (a)--
                (A) by striking ``Convey or'' in the subsection heading and
            inserting ``Transfer Title to or Otherwise'';
                (B) in paragraph (1)--
                    (i) by striking ``convey'' and inserting ``transfer
                title''; and
                    (ii) by striking ``and'' at the end;
                (C) by striking the period at the end of paragraph (2) and
            inserting ``; and''; and
                (D) by adding at the end the following new paragraph:
            ``(3) inspect, test, maintain, repair, or replace any such
        equipment.''; and
            (2) in subsection (b)--
                (A) by striking ``conveyed or otherwise provided'' and
            inserting ``provided to a foreign government'';
                (B) by inserting ``and'' at the end of paragraph (1);
                (C) by striking ``; and'' at the end of paragraph (2) and
            inserting a period; and
                (D) by striking paragraph (3).
    SEC. 1202. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN
    MOSCOW.
        (a) Limitation.--Not more than 50 percent of the funds made
    available to the Department of Defense for fiscal year 2002 for
    activities associated with the Joint Data Exchange Center in Moscow,
    Russia, may be obligated for any such activity until--
            (1) the United States and the Russian Federation enter into a
        cost-sharing agreement as described in subsection (d) of section
        1231 of the Floyd D. Spence National Defense Authorization Act for
        Fiscal Year 2001, as enacted into law by Public Law 106-398 (114
        Stat. 1654A-329);
            (2) the United States and the Russian Federation enter into an
        agreement or agreements exempting the United States and any United
        States person from Russian taxes, and from liability under Russian
        laws, with respect to activities associated with the Joint Data
        Exchange Center;
            (3) the Secretary of Defense submits to the Committee on Armed
        Services of the Senate and the Committee on Armed Services of the
        House of Representatives a copy of each agreement referred to in
        paragraphs (1) and (2); and
            (4) a period of 30 days has expired after the date of the final
        submission under paragraph (3).
        (b) Joint Data Exchange Center.--For purposes of this section, the
    term ``Joint Data Exchange Center'' means the United States-Russian
    Federation joint center for the exchange of data to provide early
    warning of launches of ballistic missiles and for notification of such
    launches that is provided for in a joint United States-Russian
    Federation memorandum of agreement signed in Moscow in June 2000.
    SEC. 1203. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND
    MONITOR IRAQI WEAPONS ACTIVITIES.
        (a) Limitation on Amount of Assistance in Fiscal Year 2002.--The
    total amount of the assistance for fiscal year 2002 that is provided by
    the Secretary of Defense under section 1505 of the Weapons of Mass
    Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the
    Department of Defense in support of activities under that Act may not
    exceed $15,000,000.
        (b) Extension of Authority To Provide Assistance.--Subsection (f)
    of section 1505 of the Weapons of Mass Destruction Control Act of 1992
    (22 U.S.C. 5859a) is amended by striking ``2001'' and inserting
    ``2002''.
    SEC. 1204. AUTHORITY FOR EMPLOYEES OF FEDERAL GOVERNMENT CONTRACTORS TO
    ACCOMPANY CHEMICAL WEAPONS INSPECTION TEAMS AT GOVERNMENT-OWNED
    FACILITIES.
        (a) Authority.--Section 303(b)(2) of the Chemical Weapons
    Convention Implementation Act of 1998 (22 U.S.C. 6723(b)(2)) is amended
    by inserting after ``designation of employees of the Federal
    Government'' the following: ``(and, in the case of an inspection of a
    United States Government facility, the designation of contractor
    personnel who shall be led by an employee of the Federal Government)''.
        (b) Credentials.--Section 304(c) of such Act (22 U.S.C. 6724(c)) is
    amended by striking ``Federal government'' and inserting ``Federal
    Government (and, in the case of an inspection of a United States
    Government facility, any accompanying contractor personnel)''.
    SEC. 1205. PLAN FOR SECURING NUCLEAR WEAPONS, MATERIAL, AND EXPERTISE
    OF THE STATES OF THE FORMER SOVIET UNION.
        (a) Plan Required.--Not later than June 15, 2002, the President
    shall submit to Congress a plan, that has been developed in
    coordination with all relevant Federal agencies--
            (1) for cooperating with Russia on disposing, as soon as
        practicable, of nuclear weapons and weapons-usable nuclear material
        in Russia that Russia does not retain in its nuclear arsenals;
            (2) for assisting Russia in downsizing its nuclear weapons
        research and production complex;
            (3) for cooperating with the other states of the former Soviet
        Union on disposing, as soon as practicable, of all nuclear weapons
        and weapons-usable nuclear material in such states; and
            (4) for preventing the outflow from the states of the former
        Soviet Union of scientific expertise that could be used for
        developing nuclear weapons, other weapons of mass destruction, and
        delivery systems for such weapons.
        (b) Content of Plan.--The plan required by subsection (a) shall
    include the following:
            (1) Specific goals and measurable objectives for programs that
        are designed to carry out the objectives described in subsection
        (a).
            (2) Criteria for success for such programs, and a strategy for
        eventual termination of United States contributions to such
        programs and assumption of the ongoing support of those programs by
        others.
            (3) A description of any administrative and organizational
        changes necessary to improve the coordination and effectiveness of
        such programs. In particular, the plan shall include consideration
        of the creation of an interagency committee that would have primary
        responsibilities within the executive branch for--
                (A) monitoring United States nonproliferation efforts in
            the states of the former Soviet Union;
                (B) coordinating the implementation of United States policy
            with respect to such efforts; and
                (C) recommending to the President integrated policies,
            budget options, and private sector and international
            contributions for such programs.
            (4) An estimate of the cost of carrying out such programs.
        (c) Consultation.--In developing the plan required by subsection
    (a), the President--
            (1) is encouraged to consult with the relevant states of the
        former Soviet Union regarding the practicality of various options;
        and
            (2) shall consult with the majority and minority leadership of
        the appropriate committees of Congress.

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

    SEC. 1211. ACQUISITION OF LOGISTICAL SUPPORT FOR SECURITY FORCES.
        Section 5 of the Multinational Force and Observers Participation
    Resolution (22 U.S.C. 3424) is amended by adding at the end the
    following new subsection:
        ``(d)(1) The United States may use contractors to provide
    logistical support to the Multinational Force and Observers under this
    section in lieu of providing such support through a logistical support
    unit comprised of members of the United States Armed Forces.
        ``(2) Notwithstanding subsections (a) and (b) and section 7(b),
    support by a contractor under this subsection may be provided without
    reimbursement whenever the President determines that such action
    enhances or supports the national security interests of the United
    States.''.
    SEC. 1212. EXTENSION OF AUTHORITY FOR INTERNATIONAL COOPERATIVE
    RESEARCH AND DEVELOPMENT PROJECTS.
        (a) Eligibility of Friendly Foreign Countries.--Section 2350a of
    title 10, United States Code, is amended--
            (1) in subsection (a)--
                (A) by inserting ``(1)'' after ``(a) Authority To Engage in
            Cooperative R&D Projects.--'';
                (B) by striking ``major allies of the United States or NATO
            organizations'' and inserting ``countries or organizations
            referred to in paragraph (2)''; and
                (C) by adding at the end the following new paragraph:
        ``(2) The countries and organizations with which the Secretary may
    enter into a memorandum of agreement (or other formal agreement) under
    paragraph (1) are as follows:
            ``(A) The North Atlantic Treaty Organization.
            ``(B) A NATO organization.
            ``(C) A member nation of the North Atlantic Treaty
        Organization.
            ``(D) A major non-NATO ally.
            ``(E) Any other friendly foreign country.'';
            (2) in subsection (b)(1)--
                (A) by striking ``its major non-NATO allies'' and inserting
            ``a country or organization referred to in subsection (a)(2)'';
            and
                (B) by striking ``(NATO)'';
            (3) in subsection (d)--
                (A) in paragraph (1), by striking ``the major allies of the
            United States'' and inserting ``countries and organizations
            referred to in subsection (a)(2)''; and
                (B) in paragraph (2)--
                    (i) by striking ``major ally of the United States'' and
                inserting ``country or organization referred to in
                subsection (a)(2)''; and
                    (ii) by striking ``that ally's contribution'' and
                inserting ``the contribution of that country or
                organization'';
            (4) in subsection (e)(2)--
                (A) in subparagraph (A), by striking ``one or more of the
            major allies of the United States'' and inserting ``any country
            or organization referred to in subsection (a)(2)'';
                (B) in subparagraph (B), by striking ``major allies of the
            United States or NATO organizations'' and inserting ``countries
            and organizations referred to in subsection (a)(2)'';
                (C) in subparagraph (C), by striking ``major allies of the
            United States'' and inserting ``countries and organizations
            referred to in subsection (a)(2)''; and
                (D) in subparagraph (D), by striking ``major allies of the
            United States'' and inserting ``countries and organizations
            referred to in subsection (a)(2)'';
            (5) paragraphs (1)(A) and (4)(A) of subsection (g), by striking
        ``major allies of the United States and other friendly foreign
        countries'' and inserting ``countries referred to in subsection
        (a)(2)'';
            (6) in subsection (h), by striking ``major allies of the United
        States'' and inserting ``member nations of the North Atlantic
        Treaty Organization, major non-NATO allies, and other friendly
        foreign countries''; and
            (7) in subsection (i)--
                (A) in paragraph (1), by striking ``major allies of the
            United States or NATO organizations'' and inserting ``countries
            and organizations referred to in subsection (a)(2)'';
                (B) by striking paragraph (2); and
                (C) by redesignating paragraphs (3) and (4) as paragraphs
            (2) and (3), respectively.
        (b) Notice-and-Wait Requirement.--Subsection (a) of such section is
    further amended by adding at the end the following new paragraph:
        ``(3) If such a memorandum of understanding (or other formal
    agreement) is with a country referred to in subparagraph (E) of
    paragraph (2), such memorandum (or agreement) may go into effect only
    after the Secretary submits to the Committees on Armed Services and on
    Foreign Relations of the Senate and to the Committees on Armed Services
    and on International Relations of the House of Representatives a report
    with respect to the proposed memorandum (or agreement) and a period of
    30 days has passed after the report has been submitted.''.
        (c) Delegation of Authority To Determine Eligibility of Projects.--
    Subsection (b)(2) of such section is amended by striking ``to the
    Deputy Secretary of Defense'' and all that follows through the period
    at the end and inserting ``to the Deputy Secretary of Defense and to
    one other official of the Department of Defense.''.
        (d) 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.''.
        (e) Conforming Amendments.--(1) The heading of such section is
    amended to read as follows:
    ``Sec. 2350a. Cooperative research and development agreements: NATO
          organizations; allied and friendly foreign countries''.
        (2) The item relating to such section in the table of sections at
    the beginning of subchapter II of chapter 138 of title 10, United
    States Code, is amended to read as follows:

    ``2350a. Cooperative research and development agreements: NATO
    organizations; allied and friendly foreign countries.''.

    SEC. 1213. COOPERATIVE AGREEMENTS WITH FOREIGN COUNTRIES AND
    INTERNATIONAL ORGANIZATIONS FOR RECIPROCAL USE OF TEST FACILITIES.
        (a) Authority.--Subchapter II of chapter 138 of title 10, United
    States Code, is amended by adding at the end the following new section:
    ``Sec. 2350l. Cooperative agreements for reciprocal use of test
          facilities: foreign countries and international organizations
        ``(a) Authority.--The Secretary of Defense, with the concurrence of
    the Secretary of State, may enter into a memorandum of understanding
    (or other formal agreement) with a foreign country or international
    organization to provide for the testing, on a reciprocal basis, of
    defense equipment (1) by the United States using test facilities of
    that country or organization, and (2) by that country or organization
    using test facilities of the United States.
        ``(b) Payment of Costs.--A memorandum or other agreement under
    subsection (a) shall provide that, when a party to the agreement uses a
    test facility of another party to the agreement, the party using the
    test facility is charged by the party providing the test facility in
    accordance with the following principles:
            ``(1) The user party shall be charged the amount equal to the
        direct costs incurred by the provider party in furnishing test and
        evaluation services by the providing party's officers, employees,
        or governmental agencies.
            ``(2) The user party may also be charged indirect costs
        relating to the use of the test facility, but only to the extent
        specified in the memorandum or other agreement.
        ``(c) Determination of Indirect Costs; Delegation of Authority.--
    (1) The Secretary of Defense shall determine the appropriateness of the
    amount of indirect costs charged by the United States pursuant to
    subsection (b)(2).
        ``(2) The Secretary may delegate the authority under paragraph (1)
    only to the Deputy Secretary of Defense and to one other official of
    the Department of Defense.
        ``(d) Retention of Funds Collected by the United States.--Amounts
    collected by the United States from a party using a test facility of
    the United States pursuant to a memorandum or other agreement under
    this section shall be credited to the appropriation accounts from which
    the costs incurred by the United States in providing such test facility
    were paid.
        ``(e) Definitions.--In this section:
            ``(1) The term `direct cost', with respect to the use of a test
        facility pursuant to a memorandum or other agreement under
        subsection (a)--
                ``(A) means any item of cost that is easily and readily
            identified to a specific unit of work or output within the test
            facility where the use occurred, that would not have been
            incurred if such use had not occurred; and
                ``(B) may include costs of labor, materials, facilities,
            utilities, equipment, supplies, and any other resources of the
            test facility that are consumed or damaged in connection with--
                    ``(i) the use; or
                    ``(ii) the maintenance of the test facility for
                purposes of the use.
            ``(2) The term `indirect cost', with respect to the use of a
        test facility pursuant to a memorandum or other agreement under
        subsection (a)--
                ``(A) means any item of cost that is not easily and readily
            identified to a specific unit of work or output within the test
            facility where the use occurred; and
                ``(B) may include general and administrative expenses for
            such activities as supporting base operations, manufacturing,
            supervision, procurement of office supplies, and utilities that
            are accumulated costs allocated among several users.
            ``(3) The term `test facility' means a range or other facility
        at which testing of defense equipment may be carried out.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by adding at the end the following new item:

    ``2350l. Cooperative agreements for reciprocal use of test facilities:
    foreign countries and international organizations.''.

    SEC. 1214. SENSE OF CONGRESS ON ALLIED DEFENSE BURDENSHARING.
        It is the sense of Congress that--
            (1) the efforts of the President to increase defense
        burdensharing by allied and friendly nations deserve strong
        support; and
            (2) host nation support agreements with those nations in which
        United States military personnel are assigned to permanent duty
        ashore should be negotiated consistent with section 1221(a)(1) of
        the National Defense Authorization Act for Fiscal Year 1998 (Public
        Law 105-85; 50 U.S.C. 1541(a)(1)), which sets forth a goal of
        obtaining from any such host nation financial contributions that
        amount to 75 percent of the nonpersonnel costs incurred by the
        United States Government for stationing United States military
        personnel in that nation.

                              Subtitle C--Reports

    SEC. 1221. REPORT ON SIGNIFICANT SALES AND TRANSFERS OF MILITARY
    HARDWARE, EXPERTISE, AND TECHNOLOGY TO THE PEOPLE'S REPUBLIC OF CHINA.
        Section 1202 of the National Defense Authorization Act for Fiscal
    Year 2000 (Public Law 106-65; 113 Stat. 781; 10 U.S.C. 113 note) is
    amended by adding at the end the following new subsection:
        ``(d) Report on Significant Sales and Transfers to China.--(1) The
    report to be submitted under this section not later than March 1, 2002,
    shall include in a separate section a report describing any significant
    sale or transfer of military hardware, expertise, and technology to the
    People's Republic of China. The report shall set forth the history of
    such sales and transfers since 1995, forecast possible future sales and
    transfers, and address the implications of those sales and transfers
    for the security of the United States and its friends and allies in
    Asia.
        ``(2) The report shall include analysis and forecasts of the
    following matters related to military cooperation between selling
    states and the People's Republic of China:
            ``(A) The extent in each selling state of government knowledge,
        cooperation, or condoning of sales or transfers of military
        hardware, expertise, or technology to the People's Republic of
        China.
            ``(B) An itemization of significant sales and transfers of
        military hardware, expertise, or technology from each selling state
        to the People's Republic of China that have taken place since 1995,
        with a particular focus on command, control, communications, and
        intelligence systems.
            ``(C) Significant assistance by any selling state to key
        research and development programs of China, including programs for
        development of weapons of mass destruction and delivery vehicles
        for such weapons, programs for development of advanced conventional
        weapons, and programs for development of unconventional weapons.
            ``(D) The extent to which arms sales by any selling state to
        the People's Republic of China are a source of funds for military
        research and development or procurement programs in the selling
        state.
        ``(3) The report under paragraph (1) shall include, with respect to
    each area of analysis and forecasts specified in paragraph (2)--
            ``(A) an assessment of the military effects of such sales or
        transfers to entities in the People's Republic of China;
            ``(B) an assessment of the ability of the People's Liberation
        Army to assimilate such sales or transfers, mass produce new
        equipment, or develop doctrine for use; and
            ``(C) the potential threat of developments related to such
        effects on the security interests of the United States and its
        friends and allies in Asia.''.
    SEC. 1222. REPEAL OF REQUIREMENT FOR REPORTING TO CONGRESS ON MILITARY
    DEPLOYMENTS TO HAITI.
        Section 1232(b) of the National Defense Authorization Act for
    Fiscal Year 2000 (Public Law 106-65; 113 Stat. 788; 50 U.S.C. 1541
    note) is repealed.
    SEC. 1223. REPORT BY COMPTROLLER GENERAL ON PROVISION OF DEFENSE
    ARTICLES, SERVICES, AND MILITARY EDUCATION AND TRAINING TO FOREIGN
    COUNTRIES AND INTERNATIONAL ORGANIZATIONS.
        (a) Study.--The Comptroller General shall conduct a study of the
    following:
            (1) The benefits derived by each foreign country or
        international organization from the receipt of defense articles,
        defense services, or military education and training provided after
        December 31, 1989, pursuant to the drawdown of such articles,
        services, or education and training from the stocks of the
        Department of Defense under section 506, 516, or 552 of the Foreign
        Assistance Act of 1961 (22 U.S.C. 2318, 2321j, or 2348a) or any
        other provision of law.
            (2) Any benefits derived by the United States from the
        provision of defense articles, defense services, and military
        education and training described in paragraph (1).
            (3) The effect on the readiness of the Armed Forces as a result
        of the provision by the United States of defense articles, defense
        services, and military education and training described in
        paragraph (1).
            (4) The cost to the Department of Defense with respect to the
        provision of defense articles, defense services, and military
        education and training described in paragraph (1).
        (b) Reports.--(1) Not later than April 15, 2002, the Comptroller
    General shall submit to Congress an interim report containing the
    results to that date of the study conducted under subsection (a).
        (2) Not later than August 1, 2002, the Comptroller General shall
    submit to Congress a final report containing the results of the study
    conducted under subsection (a).

      TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
                                  SOVIET UNION

    Sec. 1301. Specification of Cooperative Threat Reduction programs and
    funds.
    Sec. 1302. Funding allocations.
    Sec. 1303. Limitation on use of funds until submission of reports.
    Sec. 1304. Requirement to consider use of revenue generated by
    activities carried out under Cooperative Threat Reduction programs.
    Sec. 1305. Prohibition against use of funds for second wing of fissile
    material storage facility.
    Sec. 1306. Prohibition against use of funds for certain construction
    activities.
    Sec. 1307. Reports on activities and assistance under Cooperative Threat
    Reduction programs.
    Sec. 1308. Chemical weapons destruction.
    Sec. 1309. Additional matter in annual report on activities and
    assistance under Cooperative Threat Reduction programs.

    SEC. 1301. 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. 1302. FUNDING ALLOCATIONS.

        (a) Funding for Specific Purposes.--Of the $403,000,000 authorized
    to be appropriated to the Department of Defense for fiscal year 2002 in
    section 301(23) for Cooperative Threat Reduction programs, not more
    than the following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia,
        $133,405,000.
            (2) For strategic nuclear arms elimination in Ukraine,
        $51,500,000.
            (3) For nuclear weapons transportation security in Russia,
        $9,500,000.
            (4) For nuclear weapons storage security in Russia,
        $56,000,000.
            (5) For biological weapons proliferation prevention activities
        in the former Soviet Union, $17,000,000.
            (6) For activities designated as Other Assessments/
        Administrative Support, $13,221,000.
            (7) For defense and military contacts, $18,650,000.
            (8) For chemical weapons destruction in Russia, $50,000,000.
            (9) For weapons of mass destruction infrastructure elimination
        activities in Kazakhstan, $6,000,000.
            (10) For weapons of mass destruction infrastructure elimination
        activities in Ukraine, $6,024,000.
            (11) For activities to assist Russia in the elimination of
        plutonium production reactors, $41,700,000.
        (b) Report on Obligation or Expenditure of Funds for Other
    Purposes.--No fiscal year 2002 Cooperative Threat Reduction funds may
    be obligated or expended for a purpose other than a purpose listed in
    paragraphs (1) through (11) of subsection (a) until 30 days after the
    date that the Secretary of Defense submits to Congress a report on the
    purpose for which the funds will be obligated or expended and the
    amount of funds to be obligated or expended. Nothing in the preceding
    sentence shall be construed as authorizing the obligation or
    expenditure of fiscal year 2002 Cooperative Threat Reduction funds for
    a purpose for which the obligation or expenditure of such funds is
    specifically prohibited under this title or any other provision of law.
        (c) Limited Authority To Vary Individual Amounts.--(1) Subject to
    paragraphs (2) and (3), in any case in which the Secretary of Defense
    determines that it is necessary to do so in the national interest, the
    Secretary may obligate amounts appropriated for fiscal year 2002 for a
    purpose listed in any of the paragraphs in subsection (a) in excess of
    the amount specifically authorized for such purpose.
        (2) An obligation of funds for a purpose stated in any of the
    paragraphs in subsection (a) in excess of the specific amount
    authorized for such purpose may be made using the authority provided in
    paragraph (1) only after--
            (A) the Secretary submits to Congress notification of the
        intent to do so together with a complete discussion of the
        justification for doing so; and
            (B) 15 days have elapsed following the date of the
        notification.
        (3) The Secretary may not, under the authority provided in
    paragraph (1), obligate amounts for the purposes stated in paragraph
    (6), (7), or (11) of subsection (a) in excess of 115 percent of the
    amount specifically authorized for such purposes.
        (d) Modification of Authority To Vary Individual Amounts of FY 2001
    Funds.--Section 1302(c)(3) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-340) is amended by striking ``(4),''.
    SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF REPORTS.
        Not more than 50 percent of fiscal year 2002 Cooperative Threat
    Reduction funds may be obligated or expended until 30 days after the
    date of the submission of--
            (1) the report required to be submitted in fiscal year 2001
        under section 1308(a) of the Floyd D. Spence National Defense
        Authorization Act for Fiscal Year 2001 (as enacted into law by
        Public Law 106-398; 114 Stat. 1654A-341); and
            (2) the multiyear plan required to be submitted for fiscal year
        2001 under section 1308(h) of such Act.
    SEC. 1304. REQUIREMENT TO CONSIDER USE OF REVENUE GENERATED BY
    ACTIVITIES CARRIED OUT UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.
        The Secretary of Defense shall consider the use of revenue
    generated by activities carried out under Cooperative Threat Reduction
    programs in negotiating and executing contracts with Russia to carry
    out such programs.
    SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF FISSILE
    MATERIAL STORAGE FACILITY.
        (a) Prohibition.--No fiscal year 2002 Cooperative Threat Reduction
    funds and no funds authorized to be appropriated for Cooperative Threat
    Reduction programs for any prior fiscal year may be used for the
    construction of a second wing for a storage facility for Russian
    fissile material.
        (b) Conforming Amendment.--Section 1304 of the Floyd D. Spence
    National Defense Authorization Act for Fiscal Year 2001 (as enacted
    into law by Public Law 106-398; 114 Stat. 1654A-341) is amended to read
    as follows:
    ``SEC. 1304. LIMITATION ON USE OF FUNDS FOR FISSILE MATERIAL STORAGE
    FACILITY.
        ``Out of funds authorized to be appropriated for Cooperative Threat
    Reduction programs for fiscal year 2001 or any other fiscal year, not
    more than $412,600,000 may be used for planning, design, or
    construction of the first wing for the storage facility for Russian
    fissile material referred to in section 1302(a)(5) other than planning,
    design, or construction to improve security at such first wing.''.
    SEC. 1306. PROHIBITION AGAINST USE OF FUNDS FOR CERTAIN CONSTRUCTION
    ACTIVITIES.
        No fiscal year 2002 Cooperative Threat Reduction funds may be used
    for construction activities carried out under Russia's program to
    eliminate the production of weapons grade plutonium.
    SEC. 1307. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER COOPERATIVE
    THREAT REDUCTION PROGRAMS.
        Section 1308(c)(4) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-342) is amended--
            (1) in the matter preceding subparagraph (A)--
                (A) by striking ``audits'' and all that follows through
            ``conducted'' and inserting ``means (including program
            management, audits, examinations, and other means) used''; and
                (B) by striking ``and that such assistance is being used
            for its intended purpose'' and inserting ``, that such
            assistance is being used for its intended purpose, and that
            such assistance is being used efficiently and effectively'';
            (2) in subparagraph (C), by inserting ``and an assessment of
        whether the assistance being provided is being used effectively and
        efficiently'' before the semicolon; and
            (3) in subparagraph (D), by striking ``audits, examinations,
        and other''.

    SEC. 1308. CHEMICAL WEAPONS DESTRUCTION.

        Section 1305 of the National Defense Authorization Act for Fiscal
    Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C. 5952 note) is
    amended by inserting before the period at the end the following:
    ``until the Secretary of Defense submits to Congress a certification
    that there has been--
            ``(1) information provided by Russia, that the United States
        assesses to be full and accurate, regarding the size of the
        chemical weapons stockpile of Russia;
            ``(2) a demonstrated annual commitment by Russia to allocate at
        least $25,000,000 to chemical weapons elimination;
            ``(3) development by Russia of a practical plan for destroying
        its stockpile of nerve agents;
            ``(4) enactment of a law by Russia that provides for the
        elimination of all nerve agents at a single site;
            ``(5) an agreement by Russia to destroy or convert its chemical
        weapons production facilities at Volgograd and Novocheboksark; and
            ``(6) a demonstrated commitment from the international
        community to fund and build infrastructure needed to support and
        operate the facility.''.
    SEC. 1309. ADDITIONAL MATTER IN ANNUAL REPORT ON ACTIVITIES AND
    ASSISTANCE UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.
        Section 1308(c) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-341) (as amended by section 1308) is
    further amended by adding at the end of the following new paragraph:
            ``(6) A description of the amount of the financial commitment
        from the international community, and from Russia, for the chemical
        weapons destruction facility located at Shchuch'ye, Russia, for the
        fiscal year beginning in the year in which the report is
        submitted.''.

                    TITLE XIV--ARMED FORCES RETIREMENT HOME

    Sec. 1401. Amendment of Armed Forces Retirement Home Act of 1991.
    Sec. 1402. Definitions.
    Sec. 1403. Revision of authority establishing the Armed Forces
              Retirement Home.
    Sec. 1404. Chief Operating Officer.
    Sec. 1405. Residents of Retirement Home.
    Sec. 1406. Local Boards of Trustees.
    Sec. 1407. Directors, Deputy Directors, Associate Directors, and staff
              of facilities.
    Sec. 1408. Disposition of effects of deceased persons and unclaimed
              property.
    Sec. 1409. Transitional provisions.
    Sec. 1410. Conforming and clerical amendments and repeals of obsolete
              provisions.
    SEC. 1401. AMENDMENT OF ARMED FORCES RETIREMENT HOME ACT OF 1991.
        Except as otherwise expressly provided, whenever in this title an
    amendment or repeal is expressed in terms of an amendment to, or a
    repeal of, a section or other provision, the reference shall be
    considered to be made to a section or other provision of the Armed
    Forces Retirement Home Act of 1991 (title XV of Public Law 101-510; 24
    U.S.C. 401 et seq.).

    SEC. 1402. DEFINITIONS.

        Section 1502 (24 U.S.C. 401) is amended--
            (1) by striking paragraphs (1), (2), (3), (4), and (5), and
        inserting the following new paragraphs:
            ``(1) The term `Retirement Home' includes the institutions
        established under section 1511, as follows:
                ``(A) The Armed Forces Retirement Home--Washington.
                ``(B) The Armed Forces Retirement Home--Gulfport.
            ``(2) The term `Local Board' means a Local Board of Trustees
        established under section 1516.
            ``(3) The terms `Armed Forces Retirement Home Trust Fund' and
        `Fund' mean the Armed Forces Retirement Home Trust Fund established
        under section 1519(a).'';
            (2) by redesignating paragraphs (6), (7), and (8) as paragraphs
        (4), (5), and (6), respectively; and
            (3) in paragraph (5), as so redesignated--
                (A) in subparagraph (C), by striking ``, Manpower and
            Personnel'' and inserting ``for Personnel''; and
                (B) in subparagraph (D), by striking ``with responsibility
            for personnel matters'' and inserting ``for Manpower and
            Reserve Affairs''.
    SEC. 1403. REVISION OF AUTHORITY ESTABLISHING THE ARMED FORCES
    RETIREMENT HOME.
        Section 1511 (24 U.S.C. 411) is amended to read as follows:
    ``SEC. 1511. ESTABLISHMENT OF THE ARMED FORCES RETIREMENT HOME.
        ``(a) Independent Establishment.--The Armed Forces Retirement Home
    is an independent establishment in the executive branch.
        ``(b) Purpose.--The purpose of the Retirement Home is to provide,
    through the Armed Forces Retirement Home--Washington and the Armed
    Forces Retirement Home--Gulfport, residences and related services for
    certain retired and former members of the Armed Forces.
        ``(c) Facilities.--(1) Each facility of the Retirement Home
    referred to in paragraph (2) is a separate establishment of the
    Retirement Home.
        ``(2) The United States Soldiers' and Airmen's Home is hereby
    redesignated as the Armed Forces Retirement Home--Washington. The Naval
    Home is hereby redesignated as the Armed Forces Retirement Home--
    Gulfport.
        ``(d) Operation.--(1) The Chief Operating Officer of the Armed
    Forces Retirement Home is the head of the Retirement Home. The Chief
    Operating Officer is subject to the authority, direction, and control
    of the Secretary of Defense.
        ``(2) Each facility of the Retirement Home shall be maintained as a
    separate establishment of the Retirement Home for administrative
    purposes and shall be under the authority, direction, and control of
    the Director of that facility. The Director of each facility of the
    Retirement Home is subject to the authority, direction, and control of
    the Chief Operating Officer.
        ``(e) Property and Facilities.--(1) The Retirement Home shall
    include such property and facilities as may be acquired under paragraph
    (2) or accepted under section 1515(f) for inclusion in the Retirement
    Home.
        ``(2) The Secretary of Defense may acquire, for the benefit of the
    Retirement Home, property and facilities for inclusion in the
    Retirement Home.
        ``(3) The Secretary of Defense may dispose of any property of the
    Retirement Home, by sale, lease, or otherwise, that the Secretary
    determines is excess to the needs of the Retirement Home. The proceeds
    from such a disposal of property shall be deposited in the Armed Forces
    Retirement Home Trust Fund. No such disposal of real property shall be
    effective earlier than 120 days after the date on which the Secretary
    transmits a notification of the proposed disposal to the Committees on
    Armed Services of the Senate and the House of Representatives.
        ``(f) Department of Defense Support.--The Secretary of Defense may
    make available from the Department of Defense to the Retirement Home,
    on a nonreimbursable basis, administrative support and office services,
    legal and policy planning assistance, access to investigative
    facilities of the Inspector General of the Department of Defense and of
    the military departments, and any other support necessary to enable the
    Retirement Home to carry out its functions under this title.
        ``(g) Accreditation.--The Chief Operating Officer shall endeavor to
    secure for each facility of the Retirement Home accreditation by a
    nationally recognized civilian accrediting organization, such as the
    Continuing Care Accreditation Commission and the Joint Commission for
    Accreditation of Health Organizations.
        ``(h) Annual Report.--The Secretary of Defense shall transmit to
    Congress an annual report on the financial and other affairs of the
    Retirement Home for each fiscal year.''.

    SEC. 1404. CHIEF OPERATING OFFICER.

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

    ``SEC. 1515. CHIEF OPERATING OFFICER.

        ``(a) Appointment.--(1) The Secretary of Defense shall appoint the
    Chief Operating Officer of the Retirement Home.
        ``(2) The Chief Operating Officer shall serve at the pleasure of
    the Secretary of Defense.
        ``(3) The Secretary of Defense shall evaluate the performance of
    the Chief Operating Officer at least once each year.
        ``(b) Qualifications.--To qualify for appointment as the Chief
    Operating Officer, a person shall--
            ``(1) be a continuing care retirement community professional;
            ``(2) have appropriate leadership and management skills; and
            ``(3) have experience and expertise in the operation and
        management of retirement homes and in the provision of long-term
        medical care for older persons.
        ``(c) Responsibilities.--(1) The Chief Operating Officer shall be
    responsible to the Secretary of Defense for the overall direction,
    operation, and management of the Retirement Home and shall report to
    the Secretary on those matters.
        ``(2) The Chief Operating Officer shall supervise the operation and
    administration of the Armed Forces Retirement Home--Washington and the
    Armed Forces Retirement Home--Gulfport, including the Local Boards of
    those facilities.
        ``(3) The Chief Operating Officer shall perform the following
    duties:
            ``(A) Issue, and ensure compliance with, appropriate rules for
        the operation of the Retirement Home.
            ``(B) Periodically visit, and inspect the operation of, the
        facilities of the Retirement Home.
            ``(C) Periodically examine and audit the accounts of the
        Retirement Home.
            ``(D) Establish any advisory body or bodies that the Chief
        Operating Officer considers to be necessary.
        ``(d) Compensation.--(1) The Secretary of Defense may prescribe the
    pay of the Chief Operating Officer, except that the annual rate of
    basic pay, including locality pay, of the Chief Operating Officer may
    not exceed the annual rate of basic pay payable for level III of the
    Executive Schedule under section 5314 of title 5, United States Code.
        ``(2) In addition to basic pay and any locality pay prescribed for
    the Chief Operating Officer, the Secretary may award the Chief
    Operating Officer, not more than once each year, a bonus based on the
    performance of the Chief Operating Officer for the year. The Secretary
    shall prescribe the amount of any such bonus.
        ``(3) The total amount of the basic pay and bonus paid the Chief
    Operating Officer for a year under this section may not exceed the
    annual rate of basic pay payable for level I of the Executive Schedule
    under section 5312 of title 5, United States Code.
        ``(e) Administrative Staff.--(1) The Chief Operating Officer may,
    subject to the approval of the Secretary of Defense, appoint a staff to
    assist in the performance of the Chief Operating Officer's duties in
    the overall administration of the Retirement Home.
        ``(2) The Chief Operating Officer shall prescribe the rates of pay
    applicable to the members of the staff appointed under paragraph (1),
    except that--
            ``(A) a staff member who is a member of the Armed Forces on
        active duty or who is a full-time officer or employee of the United
        States may not receive additional pay by reason of service on the
        administrative staff; and
            ``(B) the limitations in section 5373 of title 5, United States
        Code, relating to pay set by administrative action, shall apply to
        the rates of pay prescribed under this paragraph.
        ``(f) Acceptance of Gifts.--(1) The Chief Operating Officer may
    accept gifts of money, property, and facilities on behalf of the
    Retirement Home.
        ``(2) Monies received as gifts, or realized from the disposition of
    property and facilities received as gifts, shall be deposited in the
    Armed Forces Retirement Home Trust Fund.''.
        (b) Transfer of Authorities.--(1) The following provisions are
    amended by striking ``Retirement Home Board'' each place it appears and
    inserting ``Chief Operating Officer'':
            (A) Section 1512 (24 U.S.C. 412), relating to eligibility and
        acceptance for residence in the Armed Forces Retirement Home.
            (B) Section 1513(a) (24 U.S.C. 412(a)), 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. 1405. RESIDENTS OF RETIREMENT HOME.

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

    ``SEC. 1514. FEES PAID BY RESIDENTS.

        ``(a) Monthly Fees.--The Director of each facility of the
    Retirement Home shall collect a monthly fee from each resident of that
    facility.
        ``(b) Deposit of Fees.--The Directors shall deposit fees collected
    under subsection (a) in the Armed Forces Retirement Home Trust Fund.
        ``(c) Fixing Fees.--(1) The Chief Operating Officer, with the
    approval of the Secretary of Defense, shall from time to time prescribe
    the fees required by subsection (a). Changes to such fees shall be
    based on the financial needs of the Retirement Home and the ability of
    the residents to pay. A change of a fee may not take effect until 120
    days after the Secretary of Defense transmits a notification of the
    change to the Committees on Armed Services of the Senate and the House
    of Representatives.
        ``(2) The fee shall be fixed as a percentage of the monthly income
    and monthly payments (including Federal payments) received by a
    resident. The percentage shall be the same for each facility of the
    Retirement Home. The Secretary of Defense may make any adjustment in a
    percentage that the Secretary determines appropriate.
        ``(3) The fee shall be subject to a limitation on maximum monthly
    amount. The amount of the limitation shall be increased, effective on
    January 1 of each year, by the percentage of the increase in retired
    pay and retainer pay that takes effect on the preceding December 1
    under subsection (b) of section 1401a of title 10, United States Code,
    without regard to paragraph (3) of such subsection. The first increase
    in a limitation on maximum monthly amount shall take effect on January
    1, 2003.
        ``(d) Transitional Fee Structures.--(1) Until different fees are
    prescribed and take effect under subsection (c), the percentages and
    limitations on maximum monthly amount that are applicable to fees
    charged residents of the Retirement Home are (subject to any adjustment
    that the Secretary of Defense determines appropriate) as follows:
            ``(A) For months beginning before January 1, 2002--
                ``(i) for a permanent health care resident, 65 percent
            (without limitation on maximum monthly amount); and
                ``(ii) for a resident who is not a permanent health care
            resident, 40 percent (without limitation on maximum monthly
            amount).
            ``(B) For months beginning after December 31, 2001--
                ``(i) for an independent living resident, 35 percent, but
            not to exceed $1,000 each month;
                ``(ii) for an assisted living resident, 40 percent, but not
            to exceed $1,500 each month; and
                ``(iii) for a long-term care resident, 65 percent, but not
            to exceed $2,500 each month.
        ``(2) Notwithstanding the limitations on maximum monthly amount
    prescribed under subsection (c) or set forth in paragraph (1)(B), until
    the earlier of December 31, 2006, or the date on which an independent
    living resident or assisted living resident of the Armed Forces
    Retirement Home--Gulfport occupies a renovated room at that facility,
    as determined by the Secretary of Defense, the limitation on maximum
    monthly amount applicable to the resident for months beginning after
    December 31, 2001, shall be--
            ``(A) in the case of an independent living resident, $800; and
            ``(B) in the case of an assisted living resident, $1,300.''.

    SEC. 1406. LOCAL BOARDS OF TRUSTEES.

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

    ``SEC. 1516. LOCAL BOARDS OF TRUSTEES.

        ``(a) Establishment.--Each facility of the Retirement Home shall
    have a Local Board of Trustees.
        ``(b) Duties.--The Local Board for a facility shall serve in an
    advisory capacity to the Director of the facility and to the Chief
    Operating Officer.
        ``(c) Composition.--(1) The Local Board for a facility shall
    consist of at least 11 members who (except as otherwise specifically
    provided) shall be appointed by the Secretary of Defense in
    consultation with each of the Secretaries of the military departments
    concerned. At least one member of the Local Board shall have a
    perspective that is oriented toward the Retirement Home overall. The
    Local Board for a facility shall consist of the following members:
            ``(A) One member who is a civilian expert in nursing home or
        retirement home administration and financing from the geographical
        area of the facility.
            ``(B) One member who is a civilian expert in gerontology from
        the geographical area of the facility.
            ``(C) One member who is a service expert in financial
        management.
            ``(D) One representative of the Department of Veterans Affairs
        regional office nearest in proximity to the facility, who shall be
        designated by the Secretary of Veterans Affairs.
            ``(E) One representative of the resident advisory committee or
        council of the facility.
            ``(F) One enlisted representative of the Services' Retiree
        Advisory Council.
            ``(G) The senior noncommissioned officer of one of the Armed
        Forces.
            ``(H) One senior representative of the military hospital
        nearest in proximity to the facility.
            ``(I) One senior judge advocate from one of the Armed Forces.
            ``(J) The Director of the facility, who shall be a nonvoting
        member.
            ``(K) One senior representative of one of the chief personnel
        officers of the Armed Forces.
            ``(L) Other members designated by the Secretary of Defense (if
        the Local Board is to have more than 11 members).
        ``(2) The Secretary of Defense shall designate one member of a
    Local Board to serve as the chairman of the Local Board at the pleasure
    of the Secretary of Defense.
        ``(d) Terms.--(1) Except as provided in subsections (e), (f), and
    (g), the term of office of a member of a Local Board shall be five
    years.
        ``(2) Unless earlier terminated by the Secretary of Defense, a
    person may continue to serve as a member of the Local Board after the
    expiration of the member's term until a successor is appointed or
    designated, as the case may be.
        ``(e) Early Expiration of Term.--A member of a Local Board who is a
    member of the Armed Forces or an employee of the United States serves
    as a member of the Local Board only for as long as the member is
    assigned to or serving in a position for which the duties include the
    duty to serve as a member of the Local Board.
        ``(f) Vacancies.--(1) A vacancy in the membership of a Local Board
    shall be filled in the manner in which the original appointment or
    designation was made, as the case may be.
        ``(2) A member appointed or designated to fill a vacancy occurring
    before the end of the term of the predecessor of the member shall be
    appointed or designated, as the case may be, for the remainder of the
    term for which the predecessor was appointed.
        ``(3) A vacancy in a Local Board shall not affect its authority to
    perform its duties.
        ``(g) Early Termination.--The Secretary of Defense may terminate
    the appointment of a member of a Local Board before the expiration of
    the member's term for any reason that the Secretary determines
    appropriate.
        ``(h) Compensation.--(1) Except as provided in paragraph (2), a
    member of a Local Board shall--
            ``(A) be provided a stipend consistent with the daily
        government consultant fee for each day on which the member is
        engaged in the performance of services for the Local Board; and
            ``(B) while away from home or regular place of business in the
        performance of services for the Local Board, be allowed travel
        expenses (including per diem in lieu of subsistence) in the same
        manner as a person employed intermittently in Government under
        sections 5701 through 5707 of title 5, United States Code.
        ``(2) A member of a Local Board who is a member of the Armed Forces
    on active duty or a full-time officer or employee of the United States
    shall receive no additional pay by reason of serving as a member of a
    Local Board.''.
    SEC. 1407. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS, AND STAFF
    OF FACILITIES.
        Section 1517 (24 U.S.C. 417) is amended to read as follows:
    ``SEC. 1517. DIRECTORS, DEPUTY DIRECTORS, ASSOCIATE DIRECTORS, AND
    STAFF OF FACILITIES.
        ``(a) Appointment.--The Secretary of Defense shall appoint a
    Director, a Deputy Director, and an Associate Director for each
    facility of the Retirement Home.
        ``(b) Director.--The Director of a facility shall--
            ``(1) be a civilian with experience as a continuing care
        retirement community professional or a member of the Armed Forces
        serving on active duty in a grade below brigadier general or, in
        the case of the Navy, rear admiral (lower half);
            ``(2) have appropriate leadership and management skills; and
            ``(3) be required to pursue a course of study to receive
        certification as a retirement facilities director by an appropriate
        civilian certifying organization, if the Director is not so
        certified at the time of appointment.
        ``(c) Duties of Director.--(1) The Director of a facility shall be
    responsible for the day-to-day operation of the facility, including the
    acceptance of applicants to be residents of that facility.
        ``(2) The Director of a facility shall keep accurate and complete
    records of the facility.
        ``(d) Deputy Director.--(1) The Deputy Director of a facility
    shall--
            ``(A) be a civilian with experience as a continuing care
        retirement community professional or a member of the Armed Forces
        serving on active duty in a grade below colonel or, in the case of
        the Navy, captain; and
            ``(B) have appropriate leadership and management skills.
        ``(2) The Deputy Director of a facility shall serve at the pleasure
    of the Secretary of Defense.
        ``(e) Duties of Deputy Director.--The Deputy Director of a facility
    shall, under the authority, direction, and control of the Director of
    the facility, perform such duties as the Director may assign.
        ``(f) Associate Director.--(1) The Associate Director of a facility
    shall--
            ``(A) be a member of the Armed Forces serving on active duty in
        the grade of Sergeant Major, Master Chief Petty Officer, or Chief
        Master Sergeant or a member or former member retired in that grade;
        and
            ``(B) have appropriate leadership and management skills.
        ``(2) The Associate Director of a facility shall serve at the
    pleasure of the Secretary of Defense.
        ``(g) Duties of Associate Director.--The Associate Director of a
    facility shall, under the authority, direction, and control of the
    Director and Deputy Director of the facility, serve as ombudsman for
    the residents and perform such other duties as the Director may assign.
        ``(h) Staff.--(1) The Director of a facility may, subject to the
    approval of the Chief Operating Officer, appoint and prescribe the pay
    of such principal staff as the Director considers appropriate to assist
    the Director in operating the facility.
        ``(2) The principal staff of a facility shall include persons with
    experience and expertise in the operation and management of retirement
    homes and in the provision of long-term medical care for older persons.
        ``(i) Annual Evaluation of Directors.--(1) The Chief Operating
    Officer shall evaluate the performance of each of the Directors of the
    facilities of the Retirement Home each year.
        ``(2) The Chief Operating Officer shall submit to the Secretary of
    Defense any recommendations regarding a Director that the Chief
    Operating Officer determines appropriate taking into consideration the
    annual evaluation.''.
    SEC. 1408. DISPOSITION OF EFFECTS OF DECEASED PERSONS AND UNCLAIMED
    PROPERTY.
        (a) Legal Representation for Retirement Home.--Subsection (b)(2)(A)
    of section 1520 (24 U.S.C. 420) is amended by inserting ``who is a
    full-time officer or employee of the United States or a member of the
    Armed Forces on active duty'' after ``may designate an attorney''.
        (b) Correction of Reference.--Subsection (b)(1)(B) of such section
    is amended by inserting ``Armed Forces'' before ``Retirement Home Trust
    Fund''.

    SEC. 1409. TRANSITIONAL PROVISIONS.

        Part B is amended by striking sections 1531, 1532, and 1533 and
    inserting the following new sections:
    ``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. DIRECTORS OF FACILITIES.
        ``(a) Active Duty Officers.--During the three-year period beginning
    on the date of the enactment of the National Defense Authorization Act
    for Fiscal Year 2002, the Directors and Deputy Directors of the
    facilities shall be members of the Armed Forces serving on active duty,
    notwithstanding the authority in subsections (b) and (d) of section
    1517 for the Directors and Deputy Directors to be civilians.
        ``(b) Temporary Continuation of Director of the Armed Forces
    Retirement Home--Washington.--The person serving as the Director of the
    Armed Forces Retirement Home--Washington on the day before the
    enactment of the National Defense Authorization Act for Fiscal Year
    2002 may continue to serve as the Director of that facility until April
    2, 2002.
    ``SEC. 1533. TEMPORARY 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. 1410. CONFORMING AND CLERICAL AMENDMENTS AND REPEALS OF OBSOLETE
    PROVISIONS.
        (a) Conforming Amendments.--(1) Section 1513(b) (24 U.S.C. 413(b)),
    relating to services provided to residents of the Armed Forces
    Retirement Home, is amended by striking ``maintained as a separate
    establishment'' in the second sentence.
        (2) The heading for section 1519 (24 U.S.C. 419) is amended to read
    as follows:
    ``SEC. 1519. ARMED FORCES RETIREMENT HOME TRUST FUND.''.
        (3) Section 1520 (24 U.S.C. 420), relating to disposition of
    effects of deceased persons and unclaimed property, is amended--
            (A) in subsection (a), by striking ``each facility that is
        maintained as a separate establishment'' and inserting ``a
        facility'';
            (B) in subsection (b)(2)(A), by striking ``maintained as a
        separate establishment''; and
            (C) in subsection (e), by striking ``Directors'' and inserting
        ``Director of the facility''.
        (4)(A) Section 1523 (24 U.S.C. 423), relating to preservation of
    historic buildings and grounds at the Armed Forces Retirement Home--
    Washington, is amended by striking ``United States Soldiers' and
    Airmen's Home'' each place it appears and inserting ``Armed Forces
    Retirement Home--Washington''.
        (B) The heading for such section is amended to read as follows:
    ``SEC. 1523. PRESERVATION OF HISTORIC BUILDINGS AND GROUNDS AT THE
    ARMED FORCES RETIREMENT HOME--WASHINGTON.''.
        (5) Section 1524 (24 U.S.C. 424), relating to conditional
    supervisory control of the Retirement Home Board, is repealed.
        (b) Repeal of Obsolete Provisions.--The following provisions are
    repealed:
            (1) Section 1512(f) (24 U.S.C. 412(f)), relating to the
        applicability of certain eligibility requirements.
            (2) Section 1519(d) (24 U.S.C. 419(d)), relating to
        transitional accounts in the Armed Forces Retirement Home Trust
        Fund.
            (3) Part C, relating to effective date and authorization of
        appropriations.
        (c) Addition of Table of Contents.--Section 1501 (24 U.S.C. 401
    note) is amended--
            (1) by inserting ``(a) Short Title.--'' before ``This title'';
        and
            (2) by adding at the end the following new subsection:
        ``(b) Table of Contents.--The table of contents for this title is
    as follows:
    ``Sec. 1501. Short title; table of contents.
    ``Sec. 1502. Definitions.

            ``Part A--Establishment and Operation of Retirement Home

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

                        ``Part B--Transitional Provisions

    ``Sec. 1531. Temporary Continuation of Armed Forces Retirement Home
    Board.
    ``Sec. 1532. Directors of Facilities.
    ``Sec. 1533. Temporary Continuation of Incumbent Deputy Directors.''.

              TITLE XV--ACTIVITIES RELATING TO COMBATING TERRORISM

              Subtitle A--Increased Funding for Combating Terrorism

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

           Subtitle B--Policy Matters Relating to Combating Terrorism

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

             Subtitle A--Increased Funding for Combating Terrorism

    SEC. 1501. DEFINITIONS.

        For purposes of this subtitle:
            (1) The term ``ETR Supplemental Appropriations Act, 2001''
        means the 2001 Emergency Supplemental Appropriations Act for
        Recovery from and Response to Terrorist Attacks on the United
        States (Public Law 107-38).
            (2) The term ``Emergency Supplemental Appropriations Act,
        2002'' means an Act (or a portion of an Act) making available for
        obligation emergency appropriations that were provided, subject to
        enactment in a subsequent appropriation Act, in the ETR
        Supplemental Appropriations Act, 2001.
    SEC. 1502. AUTHORIZATION OF EMERGENCY APPROPRIATIONS FOR FISCAL YEAR
    2001 MADE BY PUBLIC LAW 107-38 AND ALLOCATED FOR NATIONAL DEFENSE
    FUNCTIONS.
        (a) Adjustment in Authorization Amounts.--(1) Subject to paragraph
    (2), amounts authorized to be appropriated for fiscal year 2001 in the
    Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001
    (as enacted into law by Public Law 106-398) are hereby increased, with
    respect to any such authorized amount, by the amount (if any) by which
    appropriations pursuant to such authorization are increased by amounts
    appropriated in the ETR Supplemental Appropriations Act, 2001, and
    transferred by the President (before the date of the enactment of this
    Act) to the Department of Defense or the National Nuclear Security
    Administration and subsequently allocated to such appropriations.
        (2) Authorization amounts may not be increased under paragraph (1)
    in excess of amounts derived from allocation of the amounts specified
    in subsection (b), for the Department of Defense, and in subsection
    (c), for the National Nuclear Security Administration.
        (b) Department of Defense.--Amounts referred to in subsection
    (a)(2) for the Department of Defense are amounts for emergency expenses
    to respond to the terrorist attacks on the United States that occurred
    on September 11, 2001, allocated to the Department of Defense for
    fiscal year 2001 for the use of the Armed Forces and other activities
    and agencies of the Department of Defense, including the purposes
    stated in section 1504, in the total amount of $13,741,000,000, as
    follows:
            (1) Increased situational awareness.--For Increased Situational
        Awareness, $4,272,000,000.
            (2) Enhanced force protection.--For Enhanced Force Protection,
        $1,509,000,000.
            (3) Improved command and control.--For Improved Command and
        Control, $1,403,000,000.
            (4) Increased worldwide posture.--For Increased Worldwide
        Posture, $3,603,000,000.
            (5) Offensive counterterrorism.--For Offensive
        Counterterrorism, $1,459,000,000.
            (6) Initial crisis response.--For Initial Crisis Response,
        $637,000,000.
            (7) Pentagon repair and upgrade.--For Pentagon Repair and
        Upgrade Activities, $530,000,000.
            (8) Fuel costs.--For increased fuel costs, $100,000,000.
            (9) Airport and border security.--For airport and border
        security, $228,000,000.
        (c) NNSA.--The amount referred to in subsection (a)(2) for the
    National Nuclear Security Administration is the amount of $5,000,000
    for emergency expenses to respond to the terrorist attacks on the
    United States that occurred on September 11, 2001, allocated for fiscal
    year 2001 atomic energy defense activities of the National Nuclear
    Security Administration for weapons activities.
        (d) Treatment as Additional Authorizations.--The amounts authorized
    to be appropriated by this section are in addition to amounts otherwise
    authorized to be appropriated by the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398) or any other Act, for fiscal year 2001 for the use of the
    Armed Forces and other activities and agencies of the Department of
    Defense and for the use of the National Nuclear Security
    Administration.
    SEC. 1503. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR
    FISCAL YEAR 2002.
        (a) Department of Defense.--For emergency expenses to respond to
    the September 11, 2001, terrorist attacks on the United States, funds
    are hereby authorized to be appropriated to the Defense Emergency
    Response Fund for fiscal year 2002 for the use of the Armed Forces and
    other activities and agencies of the Department of Defense, including
    the purposes stated in section 1504, in the total amount of
    $7,349,000,000, as follows:
            (1) Increased situational awareness.--For Increased Situational
        Awareness, $1,735,000,000.
            (2) Enhanced force protection.--For Enhanced Force Protection,
        $881,000,000.
            (3) Improved command and control.--For Improved Command and
        Control, $219,000,000.
            (4) Increased worldwide posture.--For Increased Worldwide
        Posture, $2,938,000,000.
            (5) Offensive counterterrorism.--For Offensive
        Counterterrorism, $545,000,000.
            (6) Initial crisis response.--For Initial Crisis Response,
        $106,000,000.
            (7) Pentagon repair and upgrade.--For Pentagon Repair and
        Upgrade Activities, $925,000,000.
        (b) NNSA.--For emergency expenses to respond to the September 11,
    2001, terrorist attacks on the United States and for other expenses to
    increase the security of the Nation's nuclear weapons complex, funds
    are hereby authorized to be appropriated for fiscal year 2002 for the
    atomic energy defense activities of the National Nuclear Security
    Administration in the amount of $106,000,000, to be available for
    weapons activities.
        (c) Department of Energy.--For emergency expenses to respond to the
    September 11, 2001, terrorist attacks on the United States, funds are
    hereby authorized to be appropriated for fiscal year 2002 to the
    Department of Energy in the total amount of $11,700,000, as follows:
            (1) For Defense Environmental Restoration and Waste Management,
        $8,200,000.
            (2) For Other Defense Activities, $3,500,000.
        (d) Transfer of Defense Funds.--In order to carry out the specified
    purposes in subsection (a), the Secretary of Defense may transfer
    amounts authorized by subsection (a) from the Defense Emergency
    Response Fund to any other defense appropriations account, including
    the account ``Support for International Sporting Events, Defense'' and
    any military construction account as provided in section 1504.
        (e) Availability.--Amounts appropriated pursuant to authorizations
    in this section may remain available until expended, if so provided in
    appropriations Acts.
        (f) Source of Funds.--Amounts appropriated pursuant to
    authorizations in this section shall be derived from amounts provided,
    subject to subsequent appropriation, in the ETR Supplemental
    Appropriations Act, 2001.
        (g) Treatment as Additional Authorizations.--The amounts authorized
    to be appropriated by this section are in addition to amounts otherwise
    authorized to be appropriated, by the other provisions of this Act or
    by any other Act, for fiscal year 2001 for the use of the Armed Forces
    and other activities and agencies of the Department of Defense and for
    the use of the National Nuclear Security Administration.
    SEC. 1504. AUTHORIZATION OF USE OF FUNDS FOR MILITARY CONSTRUCTION
    PROJECTS.
        (a) Authority for Use of Funds.--Qualified emergency defense
    appropriations may be used to acquire real property and carry out
    military construction projects not otherwise authorized by law that the
    Secretary of Defense determines are necessary to respond to or protect
    against acts or threatened acts of terrorism or to respond to the
    terrorist attacks on the United States that occurred on September 11,
    2001.
        (b) Project Authorization.--Any project with respect to which the
    Secretary makes a determination under subsection (a) and that is to be
    carried out using qualified emergency defense appropriations is hereby
    authorized for purposes of section 2802 of title 10, United States
    Code.
        (c) Qualified Emergency Defense Appropriations.--For purposes of
    this subsection, the term ``qualified emergency defense
    appropriations'' means emergency appropriations available to the
    Department of Defense that are authorized by section 1502 or 1503.

    SEC. 1505. TREATMENT OF TRANSFERRED AMOUNTS.

        Amounts transferred under authority of section 1502 or 1503 shall
    be merged with, and shall be available for the same purposes and for
    the same time period as, the accounts to which transferred. The
    transfer authority under those sections is in addition to the transfer
    authority provided by section 1001 or any other provision of law.

    SEC. 1506. QUARTERLY REPORTS.

        (a) Quarterly Report.--Promptly after the end of each quarter of a
    fiscal year, the Secretary of Defense and the Director of Central
    Intelligence shall each submit to the congressional defense committees
    a report (in classified and unclassified form, as needed) on the use of
    funds authorized by this subtitle. Each such report shall, at a
    minimum, specify the following:
            (1) Any balance of funds remaining in the Defense Emergency
        Response Fund as of the end of the quarter covered by the report.
            (2) The accounts to which funds have been transferred or are to
        be transferred and the amount of each such transfer.
            (3) Within such accounts, each project to which any such funds
        have been transferred or are to be transferred and the amount of
        funds obligated and the amount expended for each such project as of
        the end of the quarter covered by the report.
        (b) Initial Report.--The first report under subsection (a) shall be
    submitted not later than January 2, 2002.
        (c) Final Report.--No further report under subsection (a) is
    required after all funds made available to the Department of Defense
    pursuant to such Act have been obligated.

           Subtitle B--Policy Matters Relating to Combating Terrorism

    SEC. 1511. STUDY AND REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE
    WITH RESPECT TO HOMELAND SECURITY.
        (a) Study Required.--The Secretary of Defense shall conduct a study
    on the appropriate role of the Department of Defense with respect to
    homeland security. The study shall identify and describe the policies,
    plans, and procedures of the Department of Defense for combating
    terrorism, including for the provision of support for the consequence
    management activities of other Federal, State, and local agencies. The
    study shall specifically identify the following:
            (1) The strategy, roles, and responsibilities of the Department
        of Defense for combating terrorism.
            (2) How the Department of Defense will interact with the Office
        of Homeland Security and how intelligence sharing efforts of the
        Department of Defense will be organized relative to other Federal
        agencies and departments and State and local governments.
            (3) The ability of the Department of Defense to protect the
        United States from airborne threats, including threats originating
        from within the borders of the United States.
            (4) Improvements that could be made to enhance the security of
        the people of the United States against terrorist threats and
        recommended actions (including legislative action) and programs to
        address and overcome existing vulnerabilities.
            (5) The policies, plans, and procedures relating to how the
        civilian official in the Department of Defense responsible for
        combating terrorism and the Joint Task Force Civil Support of the
        Joint Forces Command will coordinate the performance of functions
        for combating terrorism with--
                (A) teams in the Department of Defense that have
            responsibilities for responding to acts or threats of
            terrorism, including--
                    (i) weapons of mass destruction civil support teams
                when operating as the National Guard under the command of
                the Governor of a State, the Governor of Puerto Rico, or
                the Commanding General of the District of Columbia National
                Guard;
                    (ii) weapons of mass destruction civil support teams
                when operating as the Army National Guard of the United
                States or the Air National Guard of the United States under
                the command of the President;
                    (iii) teams in the departments and agencies of the
                Federal Government other than the Department of Defense
                that have responsibilities for responding to acts or
                threats of terrorism;
                    (iv) organizations outside the Federal Government,
                including any State, local and private entities, that
                function as first responders to acts or threats of
                terrorism; and
                    (v) units and organizations of the Reserve Components
                of the Armed Forces that have missions relating to
                combating terrorism;
                (B) the Director of Military Support of the Department of
            the Army;
                (C) any preparedness plans to combat terrorism that are
            developed for installations of the Department of Defense by the
            commanders of the installations and the integration of those
            plans with the plans of the teams and organizations described
            in subparagraph (A);
                (D) the policies, plans and procedures for using and
            coordinating the integrated vulnerability assessment teams of
            the Joint Staff inside and outside the United States; and
                (E) the missions of Fort Leonard Wood and other
            installations for training units, weapons of mass destruction
            civil support teams and other teams, and individuals in
            combating terrorism.
            (6) The appropriate number and missions of the teams referred
        to in paragraph (5)(A)(i).
            (7) How the Department of Defense Weapons of Mass Destruction
        Civil Support Teams should interact with the Federal Bureau of
        Investigation and the Federal Emergency Management Agency during
        crisis response and consequence management situations.
        (b) Report.--Not later than 180 days after the date of the
    enactment of this Act, the Secretary shall submit to Congress a report
    including the findings of the study conducted under subsection (a).
    SEC. 1512. COMBATING TERRORISM READINESS INITIATIVES FUND FOR COMBATANT
    COMMANDS.
        (a) Funding for Initiatives.--Chapter 6 of title 10, United States
    Code, is amended by inserting after section 166a the following new
    section:
    ``Sec. 166b. Combatant commands: funding for combating terrorism
         readiness initiatives
        ``(a) Combating Terrorism Readiness Initiatives Fund.--From funds
    made available in any fiscal year for the budget account in the
    Department of Defense known as the `Combating Terrorism Readiness
    Initiatives Fund', the Chairman of the Joint Chiefs of Staff may
    provide funds to the commander of a combatant command, upon the request
    of the commander, or, with respect to a geographic area or areas not
    within the area of responsibility of a commander of a combatant
    command, to an officer designated by the Chairman of the Joint Chiefs
    of Staff for such purpose. The Chairman may provide such funds for
    initiating any activity named in subsection (b) and for maintaining and
    sustaining the activity for the fiscal year in which initiated and one
    additional fiscal year.
        ``(b) Authorized Activities.--Activities for which funds may be
    provided under subsection (a) are the following:
            ``(1) Procurement and maintenance of physical security
        equipment.
            ``(2) Improvement of physical security sites.
            ``(3) Under extraordinary circumstances--
                ``(A) physical security management planning;
                ``(B) procurement and support of security forces and
            security technicians;
                ``(C) security reviews and investigations and vulnerability
            assessments; and
                ``(D) any other activity relating to physical security.
        ``(c) Priority.--The Chairman of the Joint Chiefs of Staff, in
    considering requests for funds in the Combating Terrorism Readiness
    Initiatives Fund, should give priority consideration to emergency or
    emergent unforeseen high-priority requirements for combating terrorism.
        ``(d) Relationship to Other Funding.--Any amount provided by the
    Chairman of the Joint Chiefs of Staff for a fiscal year out of the
    Combating Terrorism Readiness Initiatives Fund for an activity referred
    to in subsection (b) shall be in addition to amounts otherwise
    available for that activity for that fiscal year.
        ``(e) Limitation.--Funds may not be provided under this section for
    any activity that has been denied authorization by Congress.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    166a the following new item:

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

    SEC. 1513. CONVEYANCES OF EQUIPMENT AND RELATED MATERIALS LOANED TO
    STATE AND LOCAL GOVERNMENTS AS ASSISTANCE FOR EMERGENCY RESPONSE TO A
    USE OR THREATENED USE OF A WEAPON OF MASS DESTRUCTION.
        Section 1412(e) of the Defense Against Weapons of Mass Destruction
    Act of 1996 (title XIV of Public Law 104-201; 110 Stat. 2718; 50 U.S.C.
    2312(e)) is amended by adding at the end the following new paragraph:
            ``(5) A conveyance of ownership of United States property to a
        State or local government, without cost and without regard to
        subsection (f) and title II of the Federal Property and
        Administrative Services Act of 1949 (or any other provision of law
        relating to the disposal of property of the United States), if the
        property is equipment, or equipment and related materials, that is
        in the possession of the State or local government on the date of
        the enactment of the National Defense Authorization Act for Fiscal
        Year 2002 pursuant to a loan of the property as assistance under
        this section.''.
    SEC. 1514. TWO-YEAR EXTENSION OF ADVISORY PANEL TO ASSESS DOMESTIC
    RESPONSE CAPABILITIES FOR TERRORISM INVOLVING WEAPONS OF MASS
    DESTRUCTION.
        (a) Extension of Advisory Panel.--Section 1405 of the Strom
    Thurmond National Defense Authorization Act for Fiscal Year 1999 (50
    U.S.C. 2301 note) is amended--
            (1) in subsection (h)(2), by striking ``2001'' and inserting
        ``2003''; and
            (2) in subsection (l), by striking ``three years'' and
        inserting ``five years''.
        (b) Pay and Expenses of Members.--(1) Subsection (k) of such
    section is amended to read as follows:
        ``(k) Compensation of Panel Members.--The provisions of paragraph
    (4) of section 591(c) of the Foreign Operations, Export Financing, and
    Related Programs Appropriations Act, 1999 (as contained in section
    101(d) of division A of the Omnibus Consolidated and Emergency
    Supplemental Appropriations Act, 1999 (Public Law 105-277; 112 Stat.
    2681-212)), shall apply to members of the panel in the same manner as
    to members of the National Commission on Terrorism under that
    paragraph.''.
        (2) The amendment made by paragraph (1) shall apply with respect to
    periods of service on the advisory panel under section 1405 of the
    Strom Thurmond National Defense Authorization Act for Fiscal Year 1999
    on or after the date of the enactment of this Act.

                      TITLE XVI--UNIFORMED SERVICES VOTING

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

    SEC. 1601. SENSE OF CONGRESS REGARDING THE IMPORTANCE OF VOTING.
        (a) Sense of Congress.--It is the sense of Congress that each
    person who is an administrator of a Federal, State, or local election--
            (1) should be aware of the importance of the ability of each
        uniformed services voter to exercise the right to vote; and
            (2) should perform that person's duties as an election
        administrator with the intent to ensure that--
                (A) each uniformed services voter receives the utmost
            consideration and cooperation when voting;
                (B) each valid ballot cast by such a voter is duly counted;
            and
                (C) all eligible American voters, regardless of race,
            ethnicity, disability, the language they speak, or the
            resources of the community in which they live, should have an
            equal opportunity to cast a vote and to have that vote counted.
        (b) Uniformed Services Voter Defined.--In this section, the term
    ``uniformed services voter'' means--
            (1) a member of a uniformed service (as defined in section
        101(a)(5) of title 10, United States Code) in active service;
            (2) a member of the merchant marine (as defined in section 107
        of the Uniformed and Overseas Citizens Absentee Voting Act (42
        U.S.C. 1973ff-6)); and
            (3) a spouse or dependent of a member referred to in paragraph
        (1) or (2) who is qualified to vote.

    SEC. 1602. VOTING ASSISTANCE PROGRAMS.

        (a) In General.--(1) Chapter 80 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 1566. Voting assistance: compliance assessments; assistance
        ``(a) Regulations.--The Secretary of Defense shall prescribe
    regulations to require that the Army, Navy, Air Force, and Marine Corps
    ensure their compliance with any directives issued by the Secretary of
    Defense in implementing any voting assistance program.
        ``(b) Voting Assistance Programs Defined.--In this section, the
    term `voting assistance programs' means--
            ``(1) the Federal Voting Assistance Program carried out under
        the Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C.
        1973ff et seq.); and
            ``(2) any similar program.
        ``(c) Annual Effectiveness and Compliance Reviews.--(1) The
    Inspector General of each of the Army, Navy, Air Force, and Marine
    Corps shall conduct--
            ``(A) an annual review of the effectiveness of voting
        assistance programs; and
            ``(B) an annual review of the compliance with voting assistance
        programs of that armed force.
        ``(2) Upon the completion of each annual review under paragraph
    (1), each Inspector General specified in that paragraph shall submit to
    the Inspector General of the Department of Defense a report on the
    results of each such review. Such report shall be submitted in time
    each year to be reflected in the report of the Inspector General of the
    Department of Defense under paragraph (3).
        ``(3) Not later than March 31 each year, the Inspector General of
    the Department of Defense shall submit to Congress a report on--
            ``(A) the effectiveness during the preceding calendar year of
        voting assistance programs; and
            ``(B) the level of compliance during the preceding calendar
        year with voting assistance programs of each of the Army, Navy, Air
        Force, and Marine Corps.
        ``(d) Inspector General Assessments.--(1) The Inspector General of
    the Department of Defense shall periodically conduct at Department of
    Defense installations unannounced assessments of the compliance at
    those installations with--
            ``(A) the requirements of the Uniformed and Overseas Citizens
        Absentee Voting Act (42 U.S.C. 1973ff et seq.);
            ``(B) Department of Defense regulations regarding that Act and
        the Federal Voting Assistance Program carried out under that Act;
        and
            ``(C) other requirements of law regarding voting by members of
        the armed forces.
        ``(2) The Inspector General shall conduct an assessment under
    paragraph (1) at not less than 10 Department of Defense installations
    each calendar year.
        ``(3) Each assessment under paragraph (1) shall include a review of
    such compliance--
            ``(A) within units to which are assigned, in the aggregate, not
        less than 20 percent of the personnel assigned to duty at that
        installation;
            ``(B) within a representative survey of members of the armed
        forces assigned to that installation and their dependents; and
            ``(C) within unit voting assistance officers to measure program
        effectiveness.
        ``(e) Regular Military Department Assessments.--The Secretary of
    each military department shall include in the set of issues and
    programs to be reviewed during any management effectiveness review or
    inspection at the installation level an assessment of compliance with
    the Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C.
    1973ff et seq.) and with Department of Defense regulations regarding
    the Federal Voting Assistance Program.
        ``(f) Voting Assistance Officers.--Voting assistance officers shall
    be appointed or assigned under Department of Defense regulations.
    Commanders at all levels are responsible for ensuring that unit voting
    officers are trained and equipped to provide information and assistance
    to members of the armed forces on voting matters. Performance
    evaluation reports pertaining to a member who has been assigned to
    serve as a voting assistance officer shall comment on the performance
    of the member as a voting assistance officer.
        ``(g) Delivery of Mail From Overseas Preceding Federal Elections.--
    (1) During the four months preceding a general Federal election month,
    the Secretary of Defense shall periodically conduct surveys of all
    overseas locations and vessels at sea with military units responsible
    for collecting mail for return shipment to the United States and all
    port facilities in the United States and overseas where military-
    related mail is collected for shipment to overseas locations or to the
    United States. The purpose of each survey shall be to determine if
    voting materials are awaiting shipment at any such location and, if so,
    the length of time that such materials have been held at that location.
    During the fourth and third months before a general Federal election
    month, such surveys shall be conducted biweekly. During the second and
    first months before a general Federal election month, such surveys
    shall be conducted weekly.
        ``(2) The Secretary shall ensure that voting materials are
    transmitted expeditiously by military postal authorities at all times.
        ``(3) In this section, the term `general Federal election month'
    means November in an even-numbered year.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``1566. Voting assistance: compliance assessments; assistance.''.

        (b) Initial Report.--The first report under section 1566(c)(3) of
    title 10, United States Code, as added by subsection (a), shall be
    submitted not later than March 31, 2003.
    SEC. 1603. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.
        Article VII of the Soldiers' and Sailors' Civil Relief Act of 1940
    (50 U.S.C. App. 590 et seq.) is amended by adding at the end the
    following:
        ``Sec. 704. (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. 1604. 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 are permitted to cast ballots in the
        regularly scheduled general election for Federal office for
        November 2002 through an electronic voting system. The project
        shall be carried out with participation of sufficient numbers of
        absent uniformed services voters so that the results are
        statistically relevant.
            (2) Authority to delay implementation.--If the Secretary of
        Defense determines that the implementation of the demonstration
        project under paragraph (1) with respect to the regularly scheduled
        general election for Federal office for November 2002 may adversely
        affect the national security of the United States, the Secretary
        may delay the implementation of such demonstration project until
        the regularly scheduled general election for Federal office for
        November 2004. The Secretary shall notify the Committee on Armed
        Services and the Committee on Rules and Administration of the
        Senate and the Committee on Armed Services and the Committee on
        House Administration of the House of Representatives of any
        decision to delay implementation of the demonstration project.
        (b) Coordination With State Election Officials.--The Secretary
    shall carry out the demonstration project under this section through
    cooperative agreements with State election officials of States that
    agree to participate in the project.
        (c) Report to Congress.--Not later than June 1 of the year
    following the year in which the demonstration project is conducted
    under this section, the Secretary of Defense shall submit to Congress a
    report analyzing the demonstration project. The Secretary shall include
    in the report any recommendations the Secretary considers appropriate
    for continuing the project on an expanded basis for absent uniformed
    services voters during the next regularly scheduled general election
    for Federal office.
        (d) Definitions.--In this section:
            (1) Absent uniformed services voter.--The term ``absent
        uniformed services voter'' has the meaning given that term in
        section 107(1) of the Uniformed and Overseas Citizens Absentee
        Voting Act (42 U.S.C. 1973ff-6(1)).
            (2) State.--The term ``State'' includes the District of
        Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin
        Islands, and American Samoa.
    SEC. 1605. GOVERNORS' REPORTS ON IMPLEMENTATION OF RECOMMENDATIONS FOR
    CHANGES IN STATE LAW MADE UNDER FEDERAL VOTING ASSISTANCE PROGRAM.
        (a) Reports.--(1) Whenever a State receives a uniformed services
    voting assistance legislative recommendation from the Secretary of
    Defense, acting as the Presidential designee, the chief executive
    authority of that State shall, not later than 90 days after receipt of
    that recommendation, provide a report on the status of implementation
    of that recommendation by that State.
        (2) If a legislative recommendation referred to in paragraph (1)
    has been implemented, in whole or in part, by a State, the report of
    the chief executive authority of that State under that paragraph with
    respect to that recommendation shall include a description of the
    changes made to State law to implement the recommendation. If the
    recommendation has not been implemented, the report shall include a
    statement of the status of the recommendation before the State
    legislature and a statement of any recommendation the chief executive
    officer has made or intends to make to the legislature with respect to
    that recommendation.
        (3) Any report under paragraph (1) shall be transmitted to the
    Secretary of Defense, acting as the Presidential designee. The
    Secretary shall transmit a copy of the response to each Member of
    Congress who represents that State.
        (b) Period of Applicability.--This section applies with respect to
    any uniformed services voting assistance legislative recommendation
    transmitted to a State by the Secretary of Defense, acting as the
    Presidential designee, during the three-year period beginning on the
    date of the enactment of this Act.
        (c) Definitions.--In this section:
            (1) The term ``uniformed services voting assistance legislative
        recommendation'' means a recommendation of the Presidential
        designee for a modification in the laws of a State for the purpose
        of improving the access to the polls of absent uniformed services
        voters and overseas voters.
            (2) The term ``Presidential designee'' means the head of the
        executive department designated by the President under section
        101(a) of the Uniformed and Overseas Citizens Absentee Voting Act
        (42 U.S.C. 1973ff(a)).
            (3) The term ``State'' includes the District of Columbia, the
        Commonwealth of Puerto Rico, Guam, the Virgin Islands, and American
        Samoa.
            (4) The term ``Member of Congress'' includes a Delegate or
        Resident Commissioner to the Congress.
    SEC. 1606. SIMPLIFICATION OF VOTER REGISTRATION AND ABSENTEE BALLOT
    APPLICATION PROCEDURES FOR ABSENT UNIFORMED SERVICES AND OVERSEAS
    VOTERS.
        (a) Requirement for States To Accept Official Form for Simultaneous
    Voter Registration and Absentee Ballot Application.--
            (1) In general.--Section 102 of the Uniformed and Overseas
        Citizens Absentee Voting Act (42 U.S.C. 1973ff-1) is amended--
                (A) in paragraph (2)--
                    (i) by striking ``general, special, primary, or
                runoff'';
                    (ii) by inserting ``and absentee ballot application''
                after ``voter registration application'';
                    (iii) by striking ``and'' after the semicolon at the
                end;
                (B) by striking the period at the end of paragraph (3) and
            inserting ``; and''; and
                (C) by adding at the end the following new paragraph:
            ``(4) use the official post card form (prescribed under section
        101) for simultaneous voter registration application and absentee
        ballot application.''.
            (2) Conforming amendment.--Section 101(b)(2) of such Act (42
        U.S.C. 1973ff(b)(2)) is amended by striking ``as recommended in
        section 104'' and inserting ``as required under section 102(4)''.
        (b) Use of Single Application for All Subsequent Elections.--
    Section 104 of such Act (42 U.S.C. 1973ff-3) is amended to read as
    follows:
    ``SEC. 104. USE OF SINGLE APPLICATION FOR ALL SUBSEQUENT ELECTIONS.
        ``(a) In General.--If a State accepts and processes an official
    post card form (prescribed under section 101) submitted by an absent
    uniformed services voter or overseas voter for simultaneous voter
    registration and absentee ballot application (in accordance with
    section 102(a)(4)) and the voter requests that the application be
    considered an application for an absentee ballot for each subsequent
    election for Federal office held in the State during that year, the
    State shall provide an absentee ballot to the voter for each subsequent
    election for Federal office held in the State during that year.
        ``(b) Exception for Voters Changing Registration.--Subsection (a)
    shall not apply with respect to a voter registered to vote in a State
    for any election held after the voter notifies the State that the voter
    no longer wishes to be registered to vote in the State or after the
    State determines that the voter has registered to vote in another
    State.
        ``(c) Revision of Official Post Card Form.--The Presidential
    designee shall revise the official post card form (prescribed under
    section 101) to enable a voter using the form to--
            ``(1) request an absentee ballot for each election for Federal
        office held in a State during a year; or
            ``(2) request an absentee ballot for only the next scheduled
        election for Federal office held in a State.
        ``(d) No Effect on Voter Removal Programs.--Nothing in this section
    may be construed to prevent a State from removing any voter from the
    rolls of registered voters in the State under any program or method
    permitted under section 8 of the National Voter Registration Act of
    1993.''.
    SEC. 1607. USE OF CERTAIN DEPARTMENT OF DEFENSE FACILITIES AS POLLING
    PLACES.
        (a) Use of Military Facilities.--Section 2670 of title 10, United
    States Code, is amended by adding at the end the following new
    subsection:
        ``(b) Use of Certain Facilities as Polling Places.--(1)
    Notwithstanding chapter 29 of title 18 (including sections 592 and 593
    of such title) or any other provision of law, the Secretary of Defense
    or Secretary of a military department may not (except as provided in
    paragraph (3)) prohibit the designation or use of a qualifying facility
    under the jurisdiction of the Secretary as an official polling place
    for local, State, or Federal elections.
        ``(2) A Department of Defense facility is a qualifying facility for
    purposes of this subsection if as of December 31, 2000--
            ``(A) the facility is designated as an official polling place
        by a State or local election official; or
            ``(B) the facility has been used as such an official polling
        place since January 1, 1996.
        ``(3) The limitation in paragraph (1) may be waived by the
    Secretary of Defense or Secretary of the military department concerned
    with respect to a particular Department of Defense facility if the
    Secretary of Defense or Secretary concerned determines that local
    security conditions require prohibition of the designation or use of
    that facility as an official polling place for any election.''.
        (b) Conforming and Clerical Amendments.--(1) Such section is
    further amended--
            (A) by striking ``Under'' and inserting ``(a) Use by Red
        Cross.--Under''; and
            (B) by striking ``this section'' and inserting ``this
        subsection''.
        (2) The heading of such section is amended to read as follows:
    ``Sec. 2670. Military installations: use by American National Red
         Cross; use as polling places''.
        (3) The item relating to such section in the table of sections at
    the beginning of chapter 159 of such title is amended to read as
    follows:

    ``2670. Military installations: use by American National Red Cross; use
    as polling places.''.

                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    SEC. 2001. SHORT TITLE; DEFINITION.

        (a) Short Title.--This division may be cited as the ``Military
    Construction Authorization Act for Fiscal Year 2002''.
        (b) Definition of Fiscal Year 2001 Defense Authorization Act.--In
    this division, the term ``Spence Act'' means the Floyd D. Spence
    National Defense Authorization Act for Fiscal Year 2001, as enacted
    into law by Public Law 106-398 (114 Stat. 1654).

                                TITLE XXI--ARMY

    Sec. 2101. Authorized Army construction and land acquisition projects.
    Sec. 2102. Family housing.
    Sec. 2103. Improvements to military family housing units.
    Sec. 2104. Authorization of appropriations, Army.
    Sec. 2105. Modification of authority to carry out certain fiscal year
              2001 projects.
    Sec. 2106. Modification of authority to carry out certain fiscal year
              2000 projects.
    SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.
        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2104(a)(1), the
    Secretary of the Army may acquire real property and carry out military
    construction projects for the installations and locations inside the
    United States, and in the amounts, set forth in the following table:
    ---------------------------------------------------------------------------

                         Army: Inside the United States
    ------------------------------------------------------------------------
                State              Installation or location       Amount
    ------------------------------------------------------------------------
    Alabama......................  Anniston Army Depot.....       $5,150,000
                                   Fort Rucker.............      $18,200,000
                                   Redstone Arsenal........       $9,900,000
    Alaska.......................  Fort Richardson.........     $115,000,000
                                   Fort Wainwright.........      $27,200,000
    Arizona......................  Fort Huachuca...........       $6,100,000
                                   Yuma Proving Ground.....       $3,100,000
    California...................  Defense Language               $5,900,000
                                    Institute.
                                   Fort Irwin..............      $23,000,000
    Colorado.....................  Fort Carson.............      $66,000,000
    District of Columbia.........  Fort McNair.............      $11,600,000
    Georgia......................  Fort Benning............      $23,900,000
                                   Fort Gillem.............      $34,600,000
                                   Fort Gordon.............      $34,000,000
                                   Fort Stewart/Hunter Army      $39,800,000
                                    Air Field..............
    Hawaii.......................  Kahuku Windmill Site....         $900,000
                                   Navy Public Works             $11,800,000
                                    Center, Pearl Harbor...
                                   Pohakuloa Training             $6,600,000
                                    Facility...............
                                   Wheeler Army Air Field..      $50,000,000
    Illinois.....................  Rock Island Arsenal.....       $3,500,000
    Kansas.......................  Fort Riley..............      $10,900,000
    Kentucky.....................  Fort Campbell...........      $88,900,000
                                   Fort Knox...............      $12,000,000
    Louisiana....................  Fort Polk...............      $21,200,000
    Maryland.....................  Aberdeen Proving Ground.      $58,300,000
                                   Fort Meade..............      $11,200,000
    Missouri.....................  Fort Leonard Wood.......       $7,850,000
    New Jersey...................  Fort Monmouth...........      $20,000,000
                                   Picatinny Arsenal.......      $10,200,000
    New Mexico...................  White Sands Missile            $7,600,000
                                    Range.
    New York.....................  Fort Drum...............      $56,350,000
    North Carolina...............  Fort Bragg..............      $21,300,000
                                   Sunny Point Military          $11,400,000
                                    Ocean Terminal.........
    Oklahoma.....................  Fort Sill...............       $5,100,000
    South Carolina...............  Fort Jackson............      $65,650,000
    Texas........................  Corpus Christi Army           $10,400,000
                                    Depot.
                                   Fort Sam Houston........       $2,250,000
                                   Fort Bliss..............       $5,000,000
                                   Fort Hood...............     $104,200,000
    Virginia.....................  Fort Belvoir............      $35,950,000
                                   Fort Eustis.............      $34,650,000
                                   Fort Lee................      $23,900,000
    Washington...................  Fort Lewis..............     $238,200,000
                                                            ----------------
                                       Total:..............   $1,358,750,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2104(a)(2), the
    Secretary of the Army may acquire real property and carry out military
    construction projects for the locations outside the United States, and
    in the amounts, set forth in the following table:

                         Army: Outside the United States
    ------------------------------------------------------------------------
               Country             Installation or location       Amount
    ------------------------------------------------------------------------
    Germany......................  Area Support Group,           $36,000,000
                                    Bamberg................
                                   Area Support Group,           $13,500,000
                                    Darmstadt..............
                                   Baumholder..............       $9,000,000
                                   Hanau...................       $7,200,000
                                   Heidelberg..............      $15,300,000
                                   Mannheim................      $16,000,000
                                   Wiesbaden Air Base......      $26,300,000
    Japan........................  Camp Schab..............       $3,800,000
    Korea........................  Camp Carroll............      $16,593,000
                                   Camp Casey..............       $8,500,000
                                   Camp Hovey..............      $35,750,000
                                   Camp Humphreys..........      $14,500,000
                                   Camp Jackson............       $6,100,000
                                   Camp Stanley............      $28,000,000
                                   Camp Yongsan............      $12,800,000
    Kwajalein....................  Kwajalein Atoll.........      $11,000,000
                                                            ----------------
                                       Total:..............     $260,343,000
    ------------------------------------------------------------------------

        (c) Unspecified Worldwide.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2104(a)(3), the
    Secretary of the Army may acquire real property and carry out military
    construction projects for the installation and location, and in the
    amount, set forth in the following table:
    ---------------------------------------------------------------------------

                           Army: Unspecified Worldwide
    ------------------------------------------------------------------------
               Location                  Installation             Amount
    ------------------------------------------------------------------------
    Unspecified Worldwide........  Classified Location.....       $4,000,000
    ------------------------------------------------------------------------

    SEC. 2102. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2104(a)(6)(A), the Secretary of the Army may construct or acquire
    family housing units (including land acquisition) at the installations,
    for the purposes, and in the amounts set forth in the following table:

                                                  Army: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                State or Country                Installation or location             Purpose               Amount
    ----------------------------------------------------------------------------------------------------------------
    Alaska..................................  Fort Wainwright............  32 Units...................   $12,000,000
    Arizona.................................  Fort Huachuca..............  72 Units...................   $10,800,000
    Kansas..................................  Fort Leavenworth...........  80 Units...................   $20,000,000
    Texas...................................  Fort Bliss.................  76 Units...................   $13,600,000
                                              Fort Sam Houston...........  80 Units...................   $11,200,000
    Korea...................................  Camp Humphreys.............  54 Units...................   $12,800,000
                                                                                                       -------------
                                                                               Total:.................   $80,400,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2104(a)(6)(A), the
    Secretary of the Army may carry out architectural and engineering
    services and construction design activities with respect to the
    construction or improvement of family housing units in an amount not to
    exceed $11,592,000.
    SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.
        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2104(a)(6)(A), the Secretary of the Army may improve existing
    military family housing units in an amount not to exceed $220,750,000.
    SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.
        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2001, for military
    construction, land acquisition, and military family housing functions
    of the Department of the Army in the total amount of $3,155,594,000, as
    follows:
            (1) For military construction projects inside the United States
        authorized by section 2101(a), $1,127,750,000.
            (2) For military construction projects outside the United
        States authorized by section 2101(b), $260,343,000.
            (3) For a military construction project at an unspecified
        worldwide location authorized by section 2101(c), $4,000,000.
            (4) For unspecified minor construction projects authorized by
        section 2805 of title 10, United States Code, $18,000,000.
            (5) For architectural and engineering services and construction
        design under section 2807 of title 10, United States Code,
        $159,533,000.
            (6) For military family housing functions:
                (A) For construction and acquisition, planning and design,
            and improvement of military family housing and facilities,
            $312,742,000.
                (B) For support of military family housing (including the
            functions described in section 2833 of title 10, United States
            Code), $1,089,573,000.
            (7) For the construction of a cadet development center at the
        United States Military Academy, West Point, New York, authorized by
        section 2101(a) of the Military Construction Authorization Act for
        Fiscal Year 1999 (division B of Public Law 105-261; 112 Stat.
        2182), $37,900,000.
            (8) For the construction of phase 2C of a barracks complex,
        Tagaytay Street, at Fort Bragg, North Carolina, authorized by
        section 2101(a) of the Military Construction Authorization Act for
        Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 825),
        $17,500,000.
            (9) For the construction of phase 1C of a barracks complex,
        Wilson Street, at Schofield Barracks, Hawaii, authorized by section
        2101(a) of the Military Construction Authorization Act for Fiscal
        Year 2000 (division B of Public Law 106-65; 113 Stat. 825),
        $23,000,000.
            (10) For construction of phase 2 of a basic combat training
        complex at Fort Leonard Wood, Missouri, authorized by section
        2101(a) of the Military Construction Authorization Act for Fiscal
        Year 2001 (division B of the Spence Act; 114 Stat. 1654A-389), as
        amended by section 2105 of this Act, $27,000,000.
            (11) For the construction of phase 2 of a battle simulation
        center at Fort Drum, New York, authorized by section 2101(a) of the
        Military Construction Authorization Act for Fiscal Year 2001
        (division B of the Spence Act; 114 Stat. 1654A-389), as amended by
        section 2105 of this Act, $9,000,000.
            (12) For the construction of phase 1 of a barracks complex,
        Butner Road, at Fort Bragg, North Carolina, authorized by section
        2101(a) of the Military Construction Authorization Act for Fiscal
        Year 2001 (division B of the Spence Act; 114 Stat. 1654A-389),
        $49,000,000.
            (13) For the construction of phase 1 of a barracks complex,
        Longstreet Road, at Fort Bragg, North Carolina, authorized by
        section 2101(a) of the Military Construction Authorization Act for
        Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A-
        389), $27,000,000.
            (14) For the construction of a multipurpose digital training
        range at Fort Hood, Texas, authorized by section 2101(a) of the
        Military Construction Authorization Act for Fiscal Year 2001
        (division B of the Spence Act; 114 Stat. 1654A-389), as amended by
        section 2105 of this Act, $13,000,000.
            (15) For the homeowners assistance program, as authorized by
        section 2832(a) of title 10, United States Code, $10,119,000, to
        remain available until expended.
        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2101 of this
    Act may not exceed--
            (1) the total amount authorized to be appropriated under
        paragraphs (1), (2), and (3) of subsection (a);
            (2) $52,000,000 (the balance of the amount authorized under
        section 2201(a) for construction of a barracks complex, D Street,
        at Fort Richardson, Alaska);
            (3) $41,000,000 (the balance of the amount authorized under
        section 2201(a) for construction of phase 1 of a barracks complex,
        Nelson Boulevard, at Fort Carson, Colorado);
            (4) $36,000,000 (the balance of the amount authorized under
        section 2201(a) for construction of phase 1 of a basic combat
        training complex at Fort Jackson, South Carolina); and
            (5) $102,000,000 (the balance of the amount authorized under
        section 2201(a) for construction of a barracks complex, 17th & B
        Streets, at Fort Lewis, Washington).
        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (15) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by $29,866,000, which represents the combination of savings resulting
    from adjustments to foreign currency exchange rates for military
    construction, military family housing construction, and military family
    housing support outside the United States and savings resulting from
    favorable bids, reduced overhead charges, and cancellations due to
    force structure changes.
    SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    2001 PROJECTS.
        (a) Modification.--The table in section 2101(a) of the Military
    Construction Authorization Act for Fiscal Year 2001 (division B of the
    Spence Act; 114 Stat. 1654A-389) is amended--
            (1) in the item relating to Fort Leonard Wood, Missouri, by
        striking ``$65,400,000'' in the amount column and inserting
        ``$69,800,000'';
            (2) in the item relating to Fort Drum, New York, by striking
        ``$18,000,000'' in the amount column and inserting ``$21,000,000'';
            (3) in the item relating to Fort Hood, Texas, by striking
        ``$36,492,000'' in the amount column and inserting ``$39,492,000'';
        and
            (4) by striking the amount identified as the total in the
        amount column and inserting ``$626,374,000''.
        (b) Conforming Amendments.--Section 2104 of that Act (114 Stat.
    1654A-391) is amended--
            (1) in subsection (a), in the matter preceding paragraph (1),
        by striking ``$1,925,344,000'' and inserting ``$1,935,744,000'';
        and
            (2) in subsection (b)--
                (A) in paragraph (2), by striking ``$22,600,000'' and
            inserting ``$27,000,000'';
                (B) in paragraph (3), by striking ``$10,000,000'' and
            inserting ``$13,000,000''; and
                (C) in paragraph (6), by striking ``$6,000,000'' and
            inserting ``$9,000,000''.
    SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    2000 PROJECTS.
        Section 2104 of the Military Construction Authorization Act for
    Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 826), as
    amended by section 2105(c) of the Spence Act; 114 Stat. 1654A-393), is
    amended--
            (1) in subsection (a)--
                (A) in the matter preceding paragraph (1), by striking
            ``$2,358,331,000'' and inserting ``$2,321,931,000''; and
                (B) in paragraph (1), by striking ``$930,058,000'' and
            inserting ``$893,658,000''; and
            (2) in subsection (b)(7), by striking ``$102,500,000'' and
        inserting ``$138,900,000''.

                                TITLE XXII--NAVY

    Sec. 2201. Authorized Navy construction and land acquisition projects.
    Sec. 2202. Family housing.
    Sec. 2203. Improvements to military family housing units.
    Sec. 2204. Authorization of appropriations, Navy.
    Sec. 2205. Modification of authority to carry out certain fiscal year
              2001 projects.
    Sec. 2206. Modification of authority to carry out certain fiscal year
              2000 project.
    SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.
        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2204(a)(1), the
    Secretary of the Navy may acquire real property and carry out military
    construction projects for the installations and locations inside the
    United States, and in the amounts, set forth in the following table:
    ---------------------------------------------------------------------------

                         Navy: Inside the United States
    ------------------------------------------------------------------------
                State              Installation or location       Amount
    ------------------------------------------------------------------------
    Arizona......................  Marine Corps Air              $22,570,000
                                    Station, Yuma..........
    California...................  Marine Air-Ground Task        $75,125,000
                                    Force Training Center,
                                    Twentynine Palms.......
                                   Marine Corps Air               $4,470,000
                                    Station, Camp Pendleton
                                   Marine Corps Base, Camp       $96,490,000
                                    Pendleton..............
                                   Naval Air Facility, El        $23,520,000
                                    Centro.................
                                   Naval Air Station,            $10,010,000
                                    Lemoore................
                                   Naval Air Warfare             $30,200,000
                                    Center, China Lake.....
                                   Naval Air Warfare             $13,730,000
                                    Center, Point Mugu, San
                                    Nicholas Island........
                                   Naval Amphibious Base,         $8,610,000
                                    Coronado...............
                                   Naval Construction            $12,400,000
                                    Battalion Center, Port
                                    Hueneme................
                                   Naval Construction             $3,780,000
                                    Training Center, Port
                                    Hueneme................
                                   Naval Station, San Diego      $47,240,000
    District of Columbia.........  Naval Air Facility,            $9,810,000
                                    Washington.............
    Florida......................  Naval Air Station, Key        $11,400,000
                                    West.
                                   Naval Air Station,             $2,140,000
                                    Whiting Field, Milton..
                                   Naval Station, Mayport..      $16,420,000
                                   Naval Station, Pensacola       $3,700,000
    Hawaii.......................  Marine Corps Base,            $24,920,000
                                    Kaneohe................
                                   Naval Magazine Lualualei       $6,000,000
                                   Naval Shipyard, Pearl         $20,000,000
                                    Harbor.
                                   Naval Station, Pearl          $54,700,000
                                    Harbor.
                                   Navy Public Works             $16,900,000
                                    Center, Pearl Harbor...
    Illinois.....................  Naval Training Center,        $82,260,000
                                    Great Lakes............
    Indiana......................  Naval Surface Warfare         $14,930,000
                                    Center, Crane..........
    Maine........................  Naval Air Station,            $67,395,000
                                    Brunswick.
                                   Naval Shipyard,               $14,620,000
                                    Portsmouth.............
    Maryland.....................  Naval Air Warfare              $2,260,000
                                    Center, Patuxent River.
                                   Naval Air Warfare              $5,100,000
                                    Center, St. Inigoes....
                                   Naval Explosive                $1,250,000
                                    Ordinance Disposal
                                    Technology Center,
                                    Indian Head............
    Mississippi..................  Naval Air Station,             $3,370,000
                                    Meridian.
                                   Naval Construction            $21,660,000
                                    Battalion Center,
                                    Gulfport...............
                                   Naval Station,                 $4,680,000
                                    Pascaguola.............
    Missouri.....................  Marine Corps Support           $9,010,000
                                    Activity, Kansas City..
    Nevada.......................  Naval Air Station,             $6,150,000
                                    Fallon.................
    New Jersey...................  Naval Weapons Station,         $4,370,000
                                    Earle..................
    North Carolina...............  Marine Corps Air               $4,050,000
                                    Station, New River.....
                                   Marine Corps Base, Camp       $67,070,000
                                    Lejeune................
    Pennsylvania.................  Naval Foundry and             $14,800,000
                                    Propeller Center,
                                    Philadelphia...........
    Rhode Island.................  Naval Station, Newport..      $15,290,000
                                   Naval Underwater Warfare       $9,370,000
                                    Center, Newport........
    South Carolina...............  Marine Corps Air               $8,020,000
                                    Station, Beaufort......
                                   Marine Corps Recruit           $5,430,000
                                    Depot, Parris Island...
    Tennessee....................  Naval Support Activity,        $3,900,000
                                    Millington.............
    Virginia.....................  Marine Corps Air               $3,790,000
                                    Facility, Quantico.....
                                   Marine Corps Combat Dev        $9,390,000
                                    Com....................
                                   Naval Amphibious Base,         $9,090,000
                                    Little Creek...........
                                   Naval Station, Norfolk..     $139,270,000
    Washington...................  Naval Air Station,             $7,370,000
                                    Whidbey Island.........
                                   Naval Station, Everett..       $6,820,000
                                   Strategic Weapons              $3,900,000
                                    Facility, Bangor.......
                                                            ----------------
                                       Total:..............   $1,058,750,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2204(a)(2), the
    Secretary of the Navy may acquire real property and carry out military
    construction projects for the locations outside the United States, and
    in the amounts, set forth in the following table:

                         Navy: Outside the United States
    ------------------------------------------------------------------------
               Country             Installation or location       Amount
    ------------------------------------------------------------------------
    Greece.......................  Naval Support Activity        $12,240,000
                                    Joint Headquarters
                                    Command, Larissa.......
                                   Naval Support Activity,        $3,210,000
                                    Souda Bay..............
    Guam.........................  Naval Station, Guam.....       $9,300,000
                                   Navy Public Works             $14,800,000
                                    Center, Guam.
    Iceland......................  Naval Air Station,             $2,820,000
                                    Keflavik.
    Italy........................  Naval Air Station,             $3,060,000
                                    Sigonella.
    Spain........................  Naval Station, Rota.....       $2,240,000
                                                            ----------------
                                       Total:..............      $47,670,000
    ------------------------------------------------------------------------

    SEC. 2202. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2204(a)(5)(A), the Secretary of the Navy may construct or acquire
    family housing units (including land acquisition) at the installations,
    for the purposes, and in the amounts set forth in the following table:

                                                  Navy: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                      State                     Installation or location             Purpose               Amount
    ----------------------------------------------------------------------------------------------------------------
    Arizona.................................  Marine Corps Air Station,     51 Units..................    $9,017,000
                                               Yuma......................
    California..............................  Marine Air-Ground Task        74 Units..................   $16,250,000
                                               Force Training Center,
                                               Twentynine Palms..........
    Hawaii..................................  Marine Corps Base, Kaneohe.  172 Units..................   $46,996,000
                                              Naval Station, Pearl Harbor   70 Units..................   $16,827,000
    Mississippi.............................  Naval Construction           160 Units..................   $23,354,000
                                               Battalion Center, Gulfport
    Virginia................................  Marine Corps Combat           60 Units..................    $7,000,000
                                               Development Command,
                                               Quantico..................
    Italy...................................  Naval Air Station,            10 Units..................    $2,403,000
                                               Sigonella.................
                                                                                                       -------------
                                                                               Total:.................  $121,847,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2204(a)(5)(A), the
    Secretary of the Navy may carry out architectural and engineering
    services and construction design activities with respect to the
    construction or improvement of military family housing units in an
    amount not to exceed $6,499,000.
    SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.
        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2204(a)(5)(A), the Secretary of the Navy may improve existing
    military family housing units in an amount not to exceed $203,434,000.
    SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.
        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2001, for military
    construction, land acquisition, and military family housing functions
    of the Department of the Navy in the total amount of $2,366,742,000, as
    follows:
            (1) For military construction projects inside the United States
        authorized by section 2201(a), $1,005,410,000.
            (2) For military construction projects outside the United
        States authorized by section 2201(b), $47,670,000.
            (3) For unspecified minor construction projects authorized by
        section 2805 of title 10, United States Code, $10,546,000.
            (4) For architectural and engineering services and construction
        design under section 2807 of title 10, United States Code,
        $39,557,000.
            (5) For military family housing functions:
                (A) For construction and acquisition, planning and design,
            and improvement of military family housing and facilities,
            $331,780,000.
                (B) For support of military housing (including functions
            described in section 2833 of title 10, United States Code),
            $910,095,000.
            (6) For construction of phase 6 of a large anachoic chamber
        facility at the Patuxent River Naval Air Warfare Center, Maryland,
        authorized by section 2201(a) of the Military Construction
        Authorization Act for Fiscal Year 1993 (division B of Public Law
        102-484; 106 Stat. 2590), $10,770,000.
            (7) For construction of the Commander-in-Chief Headquarters,
        Pacific Command, Camp H.M. Smith, Hawaii, authorized by section
        2201(a) of the Military Construction Authorization Act for Fiscal
        Year 2000 (division B of Public Law 106-65; 113 Stat. 828), as
        amended by section 2206 of this Act, $37,580,000.
            (8) For repair of a pier at Naval Station, San Diego,
        California, authorized by section 2201(a) of the Military
        Construction Authorization Act for Fiscal Year 2001 (division B of
        the Spence Act; 114 Stat. 1654A-396), $17,500,000.
            (9) For replacement of a pier at Naval Station, Bremerton,
        Washington, formerly Naval Shipyard, Bremerton, Puget Sound,
        Washington, authorized by section 2201(a) of the Military
        Construction Authorization Act for Fiscal Year 2001 (division B of
        the Spence Act; 114 Stat. 1654A-396), as amended by section 2205 of
        this Act, $24,460,000.
            (10) For construction of an industrial skills center at Puget
        Sound Naval Shipyard, Bremerton, Washington, formerly Naval
        Shipyard, Bremerton, Puget Sound, Washington, authorized by section
        2201(a) of the Military Construction Authorization Act for Fiscal
        Year 2001 (division B of the Spence Act; 114 Stat. 1654A-396), as
        amended by section 2205 of this Act, $14,000,000.
        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2201 of this
    Act may not exceed--
            (1) the total amount authorized to be appropriated under
        paragraphs (1) and (2) of subsection (a);
            (2) $33,240,000 (the balance of the amount authorized under
        section 2201(a) for replacement of a pier, increment I, at Naval
        Station, Norfolk, Virginia); and
            (3) $20,100,000 (the balance of the amount authorized under
        section 2201(a) for a combined propulsion and explosives lab at
        Naval Air Warfare Center, China Lake, California).
        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (10) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by $82,626,000, which represents the combination of savings resulting
    from adjustments to foreign currency exchange rates for military
    construction, military family housing construction, and military family
    housing support outside the United States and savings resulting from
    favorable bids, reduced overhead charges, and cancellations due to
    force structure changes.
    SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    2001 PROJECTS.
        (a) Authorized Construction and Land Acquisition.--The table in
    section 2201(a) of the Military Construction Authorization Act for
    Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A-395) is
    amended--
            (1) in the item relating to Naval Shipyard, Bremerton, Puget
        Sound, Washington, by striking ``$100,740,000'' in the amount
        column and inserting ``$102,460,000'';
            (2) in the item relating to Naval Station, Bremerton,
        Washington, by striking ``$11,930,000'' in the amount column and
        inserting ``$1,930,000''; and
            (3) by striking the amount identified as the total in the
        amount column and inserting ``$803,217,000''.
        (b) Planning and Design.--Section 2204(a) of that Act (114 Stat.
    1654A-398) is amended--
            (1) in the matter preceding paragraph (1), by striking
        ``$2,227,995,000'' and inserting ``$2,208,407,000''; and
            (2) in paragraph (4), by striking ``$73,335,000'' and inserting
        ``$53,747,000''.
        (c) Conforming Amendment.--Section 2204(b)(4) of that Act (114
    Stat. 1654A-398) is amended by striking ``$10,280,000'' and inserting
    ``$14,000,000''.
    SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    2000 PROJECT.
        (a) Modification.--The table in section 2201(a) of the Military
    Construction Authorization Act for Fiscal Year 2000 (division B of
    Public Law 106-65; 113 Stat. 828) is amended--
            (1) in the item relating to Camp H.M. Smith, Hawaii, by
        striking ``$86,050,000'' in the amount column and inserting
        ``$89,050,000''; and
            (2) by striking the amount identified as the total in the
        amount column and inserting ``$820,230,000''.
        (b) Conforming Amendment.--Section 2204(b)(3) of that Act (113
    Stat. 831) is amended by striking ``$70,180,000'' and inserting
    ``$73,180,000''.

                             TITLE XXIII--AIR FORCE

    Sec. 2301. Authorized Air Force construction and land acquisition
              projects.
    Sec. 2302. Family housing.
    Sec. 2303. Improvements to military family housing units.
    Sec. 2304. Authorization of appropriations, Air Force.
    Sec. 2305. Modification of authority to carry out certain fiscal year
              2001 projects.
    SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION
    PROJECTS.
        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2304(a)(1), the
    Secretary of the Air Force may acquire real property and carry out
    military construction projects for the installations and locations
    inside the United States, and in the amounts, set forth in the
    following table:

                       Air Force: Inside the United States
    ------------------------------------------------------------------------
                State              Installation or location       Amount
    ------------------------------------------------------------------------
    Alabama......................  Maxwell Air Force Base..      $34,400,000
    Alaska.......................  Eareckson Air Force Base       $4,600,000
                                   Elmendorf Air Force Base      $32,200,000
    Arizona......................  Davis-Monthan Air Force       $23,500,000
                                    Base...................
                                   Luke Air Force Base.....       $4,500,000
    Arkansas.....................  Little Rock Air Force         $18,100,000
                                    Base...................
    California...................  Beale Air Force Base....       $7,900,000
                                   Edwards Air Force Base..      $16,300,000
                                   Los Angeles Air Force         $23,000,000
                                    Base.
                                   Travis Air Force Base...      $10,100,000
                                   Vandenberg Air Force          $11,800,000
                                    Base.
    Colorado.....................  Buckley Air Force Base..      $23,200,000
                                   Schriever Air Force Base      $30,400,000
                                   United States Air Force       $25,500,000
                                    Academy................
    Delaware.....................  Dover Air Force Base....       $7,300,000
    District of Columbia.........  Bolling Air Force Base..       $2,900,000
    Florida......................  Cape Canaveral Air Force       $7,800,000
                                    Station................
                                   Eglin Air Force Base....      $11,400,000
                                   Hurlburt Field..........      $10,400,000
                                   Tyndall Air Force Base..      $20,350,000
    Georgia......................  Moody Air Force Base....       $8,600,000
                                   Robins Air Force Base...      $14,650,000
    Idaho........................  Mountain Home Air Force       $14,600,000
                                    Base...................
    Kansas.......................  McConnell Air Force Base       $5,100,000
    Louisiana....................  Barksdale Air Force Base       $5,000,000
    Maryland.....................  Andrews Air Force Base..      $19,420,000
    Massachusetts................  Hanscom Air Force Base..       $9,400,000
    Mississippi..................  Columbus Air Force Base.       $5,000,000
                                   Keesler Air Force Base..      $28,600,000
    Montana......................  Malmstrom Air Force Base       $4,650,000
    Nevada.......................  Nellis Air Force Base...      $31,600,000
    New Jersey...................  McGuire Air Force Base..      $36,550,000
    New Mexico...................  Cannon Air Force Base...       $9,400,000
                                   Kirtland Air Force Base.      $19,800,000
    North Carolina...............  Pope Air Force Base.....      $17,800,000
    North Dakota.................  Grand Forks Air Force          $7,800,000
                                    Base.
    Ohio.........................  Wright-Patterson Air          $28,250,000
                                    Force Base.............
    Oklahoma.....................  Altus Air Force Base....      $20,200,000
                                   Tinker Air Force Base...      $21,400,000
    South Carolina...............  Shaw Air Force Base.....       $5,800,000
    South Dakota.................  Ellsworth Air Force Base      $12,200,000
    Tennessee....................  Arnold Air Force Base...      $24,400,000
    Texas........................  Dyess Air Force Base....      $16,800,000
                                   Lackland Air Force Base.      $12,800,000
                                   Laughlin Air Force Base.      $15,600,000
                                   Sheppard Air Force Base.      $45,200,000
    Utah.........................  Hill Air Force Base.....      $44,000,000
    Virginia.....................  Langley Air Force Base..      $47,300,000
    Washington...................  Fairchild Air Force Base       $2,800,000
                                   McChord Air Force Base..      $20,700,000
    Wyoming......................  F. E. Warren Air Force        $10,200,000
                                    Base.
                                                            ----------------
                                       Total:..............     $891,270,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2304(a)(2), the
    Secretary of the Air Force may acquire real property and carry out
    military construction projects for the installations and locations
    outside the United States, and in the amounts, set forth in the
    following table:

                      Air Force: Outside the United States
    ------------------------------------------------------------------------
               Country             Installation or location       Amount
    ------------------------------------------------------------------------
    Germany......................  Ramstein Air Force Base.      $42,900,000
                                   Spangdahlem Air Base....       $8,700,000
    Guam.........................  Andersen Air Force Base.      $10,150,000
    Italy........................  Aviano Air Base.........      $11,800,000
    Korea........................  Kunsan Air Base.........      $12,000,000
                                   Osan Air Base...........     $101,142,000
    Oman.........................  Masirah.................       $8,000,000
    Turkey.......................  Eskisehir...............       $4,000,000
                                   Incirlik................       $5,500,000
    United Kingdom...............  Royal Air Force,              $11,300,000
                                    Lakenheath.
                                   Royal Air Force,              $22,400,000
                                    Mildenhall.
    Wake Island..................  Wake Island.............      $25,000,000
                                                            ----------------
                                       Total:..............     $262,892,000
    ------------------------------------------------------------------------

        (c) Unspecified Worldwide.--Using the amounts appropriated pursuant
    to the authorization of appropriations in section 2304(a)(3), the
    Secretary of the Air Force may acquire real property and carry out
    military construction projects for the installation and location, and
    in the amount, set forth in the following table:
    ---------------------------------------------------------------------------

                        Air Force: Unspecified Worldwide
    ------------------------------------------------------------------------
               Location                  Installation             Amount
    ------------------------------------------------------------------------
    Unspecified Worldwide........  Classified Location.....       $4,458,000
    ------------------------------------------------------------------------

    SEC. 2302. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2304(a)(6)(A), the Secretary of the Air Force may construct or acquire
    family housing units (including land acquisition) at the installations,
    for the purposes, and in the amounts set forth in the following table:

                                                Air Force: Family Housing
    ----------------------------------------------------------------------------------------------------------------
                     State                     Installation or location             Purpose               Amount
    ----------------------------------------------------------------------------------------------------------------
    Arizona................................  Luke Air Force Base........  120 Units.................     $15,712,000
    California.............................  Travis Air Force Base......  118 Units.................     $18,150,000
    Colorado...............................  Buckley Air Force Base.....   55 Units.................     $11,400,000
    Delaware...............................  Dover Air Force Base.......  120 Units.................     $18,145,000
    District of Columbia...................  Bolling Air Force Base.....  136 Units.................     $16,926,000
    Hawaii.................................  Hickam Air Force Base......  102 Units.................     $25,037,000
    Idaho..................................  Mountain Home Air Force       56 Units.................     $10,000,000
                                              Base......................
    Louisiana..............................  Barksdale Air Force Base...   56 Units.................      $7,300,000
    South Dakota...........................  Ellsworth Air Force Base...   78 Units.................     $13,700,000
    Virginia...............................  Langley Air Force Base.....    4 Units.................      $1,200,000
    Portugal...............................  Lajes Field, Azores........   64 Units.................     $13,230,000
                                                                                                     ---------------
                                                                              Total:................    $150,800,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2304(a)(6)(A), the
    Secretary of the Air Force may carry out architectural and engineering
    services and construction design activities with respect to the
    construction or improvement of military family housing units in an
    amount not to exceed $24,558,000.
    SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.
        Subject to section 2825 of title 10, United States Code, and using
    amounts appropriated pursuant to the authorization of appropriations in
    section 2304(a)(6)(A), the Secretary of the Air Force may improve
    existing military family housing units in an amount not to exceed
    $375,345,000.
    SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.
        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2001, for military
    construction, land acquisition, and military family housing functions
    of the Department of the Air Force in the total amount of
    $2,573,122,000, as follows:
            (1) For military construction projects inside the United States
        authorized by section 2301(a), $879,270,000.
            (2) For military construction projects outside the United
        States authorized by section 2301(b), $223,592,000.
            (3) For a military construction project at an unspecified
        worldwide location authorized by section 2301(c), $4,458,000.
            (4) For unspecified minor construction projects authorized by
        section 2805 of title 10, United States Code, $11,250,000.
            (5) For architectural and engineering services and construction
        design under section 2807 of title 10, United States Code,
        $94,970,000.
            (6) For military housing functions:
                (A) For construction and acquisition, planning and design,
            and improvement of military family housing and facilities,
            $550,703,000.
                (B) For support of military family housing (including
            functions described in section 2833 of title 10, United States
            Code), $844,715,000.
            (7) $12,600,000 for construction of an air freight terminal and
        base supply complex at McGuire Air Force Base, New Jersey,
        authorized by section 2301(a) of the Military Construction
        Authorization Act for Fiscal Year 2001 (division B of the Spence
        Act; 114 Stat. 1654A-399), as amended by section 2305 of this Act.
        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2301 of this
    Act may not exceed--
            (1) the total amount authorized to be appropriated under
        paragraphs (1), (2), and (3) of subsection (a);
            (2) $12,000,000 (the balance of the amount authorized under
        section 2301(a) for a maintenance depot hanger at Hill Air Force
        Base, Utah);
            (3) $15,300,000 (the balance of the amount authorized under
        section 2301(b) for repair of an airfield runway at Wake Island);
        and
            (4) $24,000,000 (the balance of the amount authorized under
        section 2301(b) for a civil engineer complex at Osan Air Force
        Base, Korea).
        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (7) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by $48,436,000, which represents the combination of savings resulting
    from adjustments to foreign currency exchange rates for military
    construction, military family housing construction, and military family
    housing support outside the United States and savings resulting from
    favorable bids, reduced overhead charges, and cancellations due to
    force structure changes.
    SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    2001 PROJECTS.
        (a) McGuire Air Force Base.--The table in section 2301(a) of the
    Military Construction Authorization Act for Fiscal Year 2001 (division
    B of the Spence Act; 114 Stat. 1654A-399) is amended--
            (1) in the item relating to McGuire Air Force Base, New Jersey,
        by striking ``$29,772,000'' in the amount column and inserting
        ``$32,972,000''; and
            (2) by striking the amount identified as the total in the
        amount column and inserting ``$748,955,000''.
        (b) Mountain Home Air Force Base.--The table in section 2302(a) of
    that Act (114 Stat. 1654A-400) is amended in the item relating to
    Mountain Home Air Force Base, Idaho, by striking ``119 Units'' in the
    purpose column and inserting ``46 Units''.
        (c) Conforming Amendment.--Section 2304(b)(2) of that Act (114
    Stat. 1654A-402) is amended by striking ``$9,400,000'' and inserting
    ``$12,600,000''.

                          TITLE XXIV--DEFENSE AGENCIES

    Sec. 2401. Authorized Defense Agencies construction and land acquisition
    projects.
    Sec. 2402. Energy conservation projects.
    Sec. 2403. Authorization of appropriations, Defense Agencies.
    Sec. 2404. Cancellation of authority to carry out certain fiscal year
    2001 projects.
    Sec. 2405. Modification of authority to carry out certain fiscal year
    2000 projects.
    Sec. 2406. Modification of authority to carry out certain fiscal year
    1999 project.
    Sec. 2407. Modification of authority to carry out certain fiscal year
    1995 project.
    Sec. 2408. Prohibition on expenditures to develop forward operating
    location on Aruba.

    SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND
    ACQUISITION PROJECTS.
        (a) Inside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2403(a)(1), the
    Secretary of Defense may acquire real property and carry out military
    construction projects for the installations and locations inside the
    United States, and in the amounts, set forth in the following table:

                   Defense Agencies: Inside the United States
    ------------------------------------------------------------------------
                Agency             Installation or location       Amount
    ------------------------------------------------------------------------
    Defense Education Activity...  Laurel Bay, South             $12,850,000
                                    Carolina...............
                                   Marine Corps Base, Camp        $8,857,000
                                    Lejeune, North Carolina
    Defense Logistics Agency.....  Defense Distribution          $30,000,000
                                    Depot Tracy, California
                                   Defense Distribution New      $19,900,000
                                    Cumberland,
                                    Pennsylvania...........
                                   Eielson Air Force Base,        $8,800,000
                                    Alaska.................
                                   Fort Belvoir, Virginia..         $900,000
                                   Grand Forks Air Force          $9,110,000
                                    Base, North Dakota.....
                                   Hickam Air Force Base,        $29,200,000
                                    Hawaii.................
                                   McGuire Air Force Base,        $4,400,000
                                    New Jersey.............
                                   Minot Air Force Base,         $14,000,000
                                    North Dakota...........
                                   Philadelphia,                  $2,429,000
                                    Pennsylvania...........
                                   Pope Air Force Base,           $3,400,000
                                    North Carolina.........
    Special Operations Command...  Aberdeen Proving Ground,       $3,200,000
                                    Maryland...............
                                   CONUS Classified........       $2,400,000
                                   Fort Benning, Georgia...       $5,100,000
                                   Fort Bragg, North             $33,562,000
                                    Carolina...............
                                   Fort Lewis, Washington..       $6,900,000
                                   Hurlburt Field, Florida.      $13,400,000
                                   MacDill Air Force Base,       $12,000,000
                                    Florida................
                                   Naval Station, San            $13,650,000
                                    Diego, California......
    TRICARE Management Activity..  Andrews Air Force Base,       $10,250,000
                                    Maryland...............
                                   Dyess Air Force Base,          $3,300,000
                                    Texas..................
                                   F. E. Warren Air Force         $2,700,000
                                    Base, Wyoming..........
                                   Fort Hood, Texas........      $12,200,000
                                   Fort Stewart/Hunter Army      $11,000,000
                                    Air Field, Georgia.....
                                   Holloman Air Force Base,       $5,700,000
                                    New Mexico.............
                                   Hurlburt Field, Florida.       $8,800,000
                                   Marine Corps Base, Camp       $15,300,000
                                    Pendleton, California..
                                   Marine Corps Logistics         $5,800,000
                                    Base, Albany, Georgia..
                                   Naval Air Station,             $6,600,000
                                    Whidbey Island,
                                    Washington.............
                                   Naval Hospital,                $1,600,000
                                    Twentynine Palms,
                                    California.............
                                   Naval Station, Mayport,       $24,000,000
                                    Florida................
                                   Naval Station, Norfolk,       $21,000,000
                                    Virginia...............
                                   Schriever Air Force            $4,000,000
                                    Base, Colorado.........
    Washington Headquarters        Pentagon Reservation,         $25,000,000
     Services....................   Virginia...............
                                                            ----------------
                                       Total:..............     $391,308,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2403(a)(2), the
    Secretary of Defense may acquire real property and carry out military
    construction projects for the installations and locations outside the
    United States, and in the amounts, set forth in the following table:
    ---------------------------------------------------------------------------

                   Defense Agencies: Outside the United States
    ------------------------------------------------------------------------
                Agency             Installation or location       Amount
    ------------------------------------------------------------------------
    Defense Education Activity...  Aviano Air Base, Italy..       $3,647,000
                                   Geilenkirchen AB,              $1,733,000
                                    Germany................
                                   Heidelberg, Germany.....       $3,312,000
                                   Kaiserslautern, Germany.       $1,439,000
                                   Kitzingen, Germany......       $1,394,000
                                   Landstuhl, Germany......       $1,444,000
                                   Ramstein Air Force Base,       $2,814,000
                                    Germany................
                                   Royal Air Force,              $22,132,000
                                    Feltwell, United
                                    Kingdom................
                                   Vogelweh Annex, Germany.       $1,558,000
                                   Wiesbaden Air Base,            $1,378,000
                                    Germany................
                                   Wuerzburg, Germany......       $2,684,000
    Defense Logistics Agency.....  Anderson Air Force Base,      $20,000,000
                                    Guam...................
                                   Camp Casey, Korea.......       $5,500,000
                                   Naval Station, Rota,           $3,000,000
                                    Spain..................
                                   Yokota Air Base, Japan..      $13,000,000
    Office Secretary of Defense..  Comalapa Air Base, El         $12,577,000
                                    Salvador...............
    TRICARE Management Activity..  Heidelberg, Germany.....      $28,000,000
                                   Lajes Field, Azores,           $3,750,000
                                    Portugal...............
                                   Thule, Greenland........      $10,800,000
                                                            ----------------
                                       Total:..............     $140,162,000
    ------------------------------------------------------------------------

    SEC. 2402. ENERGY CONSERVATION PROJECTS.

        Using amounts appropriated pursuant to the authorization of
    appropriations in section 2403(a)(6), the Secretary of Defense may
    carry out energy conservation projects under section 2865 of title 10,
    United States Code, in the amount of $27,100,000.
    SEC. 2403. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.
        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2001, for military
    construction, land acquisition, and military family housing functions
    of the Department of Defense (other than the military departments), in
    the total amount of $1,481,208,000, as follows:
            (1) For military construction projects inside the United States
        authorized by section 2401(a), $391,308,000.
            (2) For military construction projects outside the United
        States authorized by section 2401(b), $140,162,000.
            (3) For unspecified minor construction projects under section
        2805 of title 10, United States Code, $24,492,000.
            (4) For contingency construction projects of the Secretary of
        Defense under section 2804 of title 10, United States Code,
        $10,000,000.
            (5) For architectural and engineering services and construction
        design under section 2807 of title 10, United States Code,
        $54,496,000.
            (6) For energy conservation projects authorized by section
        2402, $27,100,000.
            (7) For base closure and realignment activities as authorized
        by the Defense Base Closure and Realignment Act of 1990 (part A of
        title XXIX of Public Law 101-510; 10 U.S.C. 2687 note),
        $632,713,000.
            (8) For military family housing functions:
                (A) For improvement of military family housing and
            facilities, $250,000.
                (B) For support of military family housing (including
            functions described in section 2833 of title 10, United States
            Code), $43,762,000, of which not more than $37,298,000 may be
            obligated or expended for the leasing of military family
            housing units worldwide.
                (C) For credit to the Department of Defense Family Housing
            Improvement Fund established by section 2883(a)(1) of title 10,
            United States Code, $2,000,000.
            (9) For the construction of phase 6 of an ammunition
        demilitarization facility at Pine Bluff Arsenal, Arkansas,
        authorized by section 2401(a) of the Military Construction
        Authorization Act for Fiscal Year 1995 (division B of Public Law
        103-337; 108 Stat. 3040), as amended by section 2407 of the
        Military Construction Authorization Act for Fiscal Year 1996
        (division B of Public Law 104-106; 110 Stat. 539), section 2408 of
        the Military Construction Authorization Act for Fiscal Year 1998
        (division B of Public Law 105-85; 111 Stat. 1982), section 2406 of
        the Military Construction Authorization Act for Fiscal Year 1999
        (division B of Public Law 105-261; 112 Stat. 2197), and section
        2407 of this Act, $26,000,000.
            (10) For the construction of phase 3 of an ammunition
        demilitarization facility at Pueblo Army Depot, Colorado,
        authorized by section 2401(a) of the Military Construction
        Authorization Act for Fiscal Year 1997 (division B of Public Law
        104-201; 110 Stat. 2775), as amended by section 2406 of the
        Military Construction Authorization Act for Fiscal Year 2000
        (division B of Public Law 106-65; 113 Stat. 839), $11,000,000.
            (11) For construction of phase 4 of an ammunition
        demilitarization facility at Newport Army Depot, Indiana,
        authorized by section 2401(a) of the Military Construction
        Authorization Act for Fiscal Year 1999 (division B of Public Law
        105-261; 112 Stat. 2193), $66,000,000.
            (12) For construction of phase 4 of an ammunition
        demilitarization facility at Aberdeen Proving Ground, Maryland,
        authorized by section 2401(a) of the Military Construction
        Authorization Act for Fiscal Year 1999 (division B of Public Law
        105-261; 112 Stat. 2193), as amended by section 2406 of this Act,
        $66,500,000.
            (13) For the construction of phase 2 of an ammunition
        demilitarization facility at Blue Grass Army Depot, Kentucky,
        authorized by section 2401(a) of the Military Construction
        Authorization Act for Fiscal Year 2000 (division B of Public Law
        106-65, 113 Stat. 836), as amended by section 2405 of this Act,
        $3,000,000.
        (b) Limitation on Total Cost of Construction Projects.--
    Notwithstanding the cost variations authorized by section 2853 of title
    10, United States Code, and any other cost variation authorized by law,
    the total cost of all projects carried out under section 2401 of this
    Act may not exceed the total amount authorized to be appropriated under
    paragraphs (1) and (2) of subsection (a).
        (c) Adjustments.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (13) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs, reduced
    by $17,575,000, which represents the combination of savings resulting
    from adjustments to foreign currency exchange rates for military
    construction, military family housing construction, and military family
    housing support outside the United States and savings resulting from
    favorable bids, reduced overhead charges, and cancellations due to
    force structure changes.
    SEC. 2404. CANCELLATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    2001 PROJECTS.
        (a) Cancellation of Projects at Camp Pendleton, California.--The
    table in section 2401(a) of the Military Construction Authorization Act
    for Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A-
    402) is amended--
            (1) under the agency heading TRICARE Management Activity, by
        striking the item relating to Marine Corps Base, Camp Pendleton,
        California; and
            (2) by striking the amount identified as the total in the
        amount column and inserting ``$242,756,000''.
        (b) Cancellation of Projects at Unspecified Worldwide Locations.--
    Section 2401(c) of that Act (114 Stat. 1654A-404) is amended by
    striking ``$451,135,000'' and inserting ``$30,065,000''.
        (c) Treatment of Authorization of Appropriations for Certain
    Canceled Projects.--Of the amount authorized to be appropriated by
    section 2403(a) of that Act (114 Stat. 1654A-404), and paragraph (1) of
    that section, $14,150,000 shall be available for purposes relating to
    construction of the Portsmouth Naval Hospital, Virginia, as authorized
    by section 2401(a) of the Military Construction Authorization Act for
    Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 103 Stat.
    1640).
        (d) Reduction in Authorization of Appropriations for Projects at
    Unspecified Worldwide Locations.--Section 2403 of that Act (114 Stat.
    1654A-404) is amended--
            (1) in subsection (a)--
                (A) in the matter preceding paragraph (1), by striking
            ``$1,883,902,000'' and inserting ``$1,828,872,000''; and
                (B) in paragraph (3), by striking ``$85,095,000'' and
            inserting ``$30,065,000''; and
            (2) in subsection (b), by striking ``may not exceed--'' and all
        that follows through the end of the subsection and inserting ``may
        not exceed the total amount authorized to be appropriated under
        paragraphs (1) and (2) of subsection (a).''.
    SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    2000 PROJECTS.
        (a) Modification.--The table in section 2401(a) of the Military
    Construction Authorization Act for Fiscal Year 2000 (division B of
    Public Law 106-65; 113 Stat. 835) is amended--
            (1) under the agency heading relating to Chemical
        Demilitarization, in the item relating to Blue Grass Army Depot,
        Kentucky, by striking ``$206,800,000'' in the amount column and
        inserting ``$254,030,000'';
            (2) under the agency heading relating to TRICARE Management
        Agency--
                (A) in the item relating to Fort Wainwright, Alaska, by
            striking ``$133,000,000'' in the amount column and inserting
            ``$215,000,000''; and
                (B) by striking the item relating to Naval Air Station,
            Whidbey Island, Washington; and
            (3) by striking the amount identified as the total in the
        amount column and inserting ``$711,950,000''.
        (b) Treatment of Authorization of Appropriations for Canceled
    Whidbey Island Project.--Of the amount authorized to be appropriated by
    section 2405(a) of that Act (113 Stat. 837), and paragraph (1) of that
    section, $4,700,000 shall be available for purposes relating to
    construction of the Portsmouth Naval Hospital, Virginia, as authorized
    by section 2401(a) of the Military Construction Authorization Act for
    Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 103 Stat.
    1640).
        (c) Conforming Amendments.--Section 2405(b) of that Act (113 Stat.
    839) is amended--
            (1) in paragraph (2), by striking ``$115,000,000'' and
        inserting ``$197,000,000''; and
            (2) in paragraph (3), by striking ``$184,000,000'' and
        inserting ``$231,230,000''.
    SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    1999 PROJECT.
        (a) Modification.--The table in section 2401(a) of the Military
    Construction Authorization Act for Fiscal Year 1999 (division B of
    Public Law 105-261; 112 Stat. 2193) is amended--
            (1) under the agency heading relating to Chemical
        Demilitarization, in the item relating to Aberdeen Proving Ground,
        Maryland, by striking ``$186,350,000'' in the amount column and
        inserting ``$223,950,000''; and
            (2) by striking the amount identified as the total in the
        amount column and inserting ``$727,616,000''.
        (b) Conforming Amendment.--Section 2404(b)(3) of that Act (112
    Stat. 2196) is amended by striking ``$158,000,000'' and inserting
    ``$195,600,000''.
    SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
    1995 PROJECT.
        The table in section 2401 of the Military Construction
    Authorization Act for Fiscal Year 1995 (division B of Public Law 103-
    337; 108 Stat. 3040), as amended by section 2407 of the Military
    Construction Authorization Act for Fiscal Year 1996 (division B of
    Public Law 104-106; 110 Stat. 539), section 2408 of the Military
    Construction Authorization Act for Fiscal Year 1998 (division B of
    Public Law 105-85; 111 Stat. 1982), and section 2406 of the Military
    Construction Authorization Act for Fiscal Year 1999 (division B of
    Public Law 105-261; 112 Stat. 2197), is amended under the agency
    heading relating to Chemical Agents and Munitions Destruction, in the
    item relating to Pine Bluff Arsenal, Arkansas, by striking
    ``$154,400,000'' in the amount column and inserting ``$177,400,000''.
    SEC. 2408. PROHIBITION ON EXPENDITURES TO DEVELOP FORWARD OPERATING
    LOCATION ON ARUBA.
        None of the funds appropriated under the heading ``military
    construction, defense-wide'' in chapter 3 of title III of the Emergency
    Supplemental Act, 2000 (Public Law 106-246; 114 Stat. 579), may be used
    by the Secretary of Defense to develop any forward operating location
    on the island of Aruba.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                    PROGRAM

    Sec. 2501. Authorized NATO construction and land acquisition projects.
    Sec. 2502. Authorization of appropriations, NATO.
    SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.
        The Secretary of Defense may make contributions for the North
    Atlantic Treaty Organization Security Investment Program as provided in
    section 2806 of title 10, United States Code, in an amount not to
    exceed the sum of the amount authorized to be appropriated for this
    purpose in section 2502 and the amount collected from the North
    Atlantic Treaty Organization as a result of construction previously
    financed by the United States.
    SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.
        Funds are hereby authorized to be appropriated for fiscal years
    beginning after September 30, 2001, for contributions by the Secretary
    of Defense under section 2806 of title 10, United States Code, for the
    share of the United States of the cost of projects for the North
    Atlantic Treaty Organization Security Investment Program authorized by
    section 2501, in the amount of $162,600,000.

                    TITLE XXVI--GUARD AND RESERVE FACILITIES

    Sec. 2601. Authorized guard and reserve construction and land
              acquisition projects.
    SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
    ACQUISITION PROJECTS.
        (a) In General.--There are authorized to be appropriated for fiscal
    years beginning after September 30, 2001, for the costs of acquisition,
    architectural and engineering services, and construction of facilities
    for the Guard and Reserve Forces, and for contributions therefor, under
    chapter 1803 of title 10, United States Code (including the cost of
    acquisition of land for those facilities), the following amounts:
            (1) For the Department of the Army--
                (A) for the Army National Guard of the United States,
            $393,253,000; and
                (B) for the Army Reserve, $168,969,000.
            (2) For the Department of the Navy, for the Naval and Marine
        Corps Reserve, $52,896,000.
            (3) For the Department of the Air Force--
                (A) for the Air National Guard of the United States,
            $253,852,000; and
                (B) for the Air Force Reserve, $73,032,000.

            TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

    SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE
    SPECIFIED BY LAW.
        (a) Expiration of Authorizations After Three Years.--Except as
    provided in subsection (b), all authorizations contained in titles XXI
    through XXVI for military construction projects, land acquisition,
    family housing projects and facilities, and contributions to the North
    Atlantic Treaty Organization Security Investment program (and
    authorizations of appropriations therefor) shall expire on the later
    of--
            (1) October 1, 2004; or
            (2) the date of the enactment of an Act authorizing funds for
        military construction for fiscal year 2005.
        (b) Exception.--Subsection (a) shall not apply to authorizations
    for military construction projects, land acquisition, family housing
    projects and facilities, and contributions to the North Atlantic Treaty
    Organization Security Investment program (and authorizations of
    appropriations therefor) for which appropriated funds have been
    obligated before the later of--
            (1) October 1, 2004; or
            (2) the date of the enactment of an Act authorizing funds for
        fiscal year 2005 for military construction projects, land
        acquisition, family housing projects and facilities, or
        contributions to the North Atlantic Treaty Organization Security
        Investment program.
    SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999
    PROJECTS.
        (a) Extension.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1999 (division B of
    Public Law 105-261; 112 Stat. 2199), authorizations set forth in the
    tables in subsection (b), as provided in section 2302 or 2601 of that
    Act, shall remain in effect until October 1, 2002, or the date of the
    enactment of an Act authorizing funds for military construction for
    fiscal year 2003, whichever is later.
        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

                                   Air Force: Extension of 1999 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,998,000
                                                                        units)......................
    Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                        units)......................
    New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                        units)......................
    Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                             Force Base..............   units)......................
    ----------------------------------------------------------------------------------------------------------------

                              Army National Guard: Extension of 1999 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Massachusetts.........................  Westfield................  Army Aviation Support              $9,274,000
                                                                        Facility....................
    South Carolina........................  Spartanburg..............  Readiness Center.............      $5,260,000
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1998
    PROJECTS.
        (a) Extension.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 1998 (division B of
    Public Law 105-85; 111 Stat. 1984), authorizations set forth in the
    tables in subsection (b), as provided in section 2102, 2202, or 2302 of
    that Act and extended by section 2702 of the Military Construction
    Authorization Act for Fiscal Year 2001 (division B of the Spence Act;
    114 Stat. 1654A-408), shall remain in effect until October 1, 2002, or
    the date of the enactment of an Act authorizing funds for military
    construction for fiscal year 2003, whichever is later.
        (b) Tables.--The tables referred to in subsection (a) are as
    follows:

                                      Army: Extension of 1998 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Maryland..............................  Fort Meade...............  Family Housing Construction        $7,900,000
                                                                        (56 units)..................
    ----------------------------------------------------------------------------------------------------------------

                                     Navy: Extension of 1998 Project Authorizations
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    California............................  Naval Complex, San Diego.  Replace Family Housing (94        $13,500,000
                                                                        units)......................
    California............................  Marine Corps Air Station,  Family Housing Construction       $28,881,000
                                             Miramar.................   (166 units).................
    Louisiana.............................  Naval Complex, New         Replace Family Housing (100       $11,930,000
                                             Orleans.................   units)......................
    Texas.................................  Naval Air Station, Corpus  Family Housing Construction       $22,250,000
                                             Christi.................   (212 units).................
    ----------------------------------------------------------------------------------------------------------------

                                   Air Force: Extension of 1998 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (180       $20,900,000
                                                                        units)......................
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2704. EFFECTIVE DATE.

        Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on
    the later of--
            (1) October 1, 2001; or
            (2) the date of the enactment of this Act.

                        TITLE XXVIII--GENERAL PROVISIONS

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

    Sec. 2801. Increase in thresholds for certain unspecified minor military
    construction projects.
    Sec. 2802. Exclusion of unforeseen environmental hazard remediation from
    limitation on authorized cost variations.
    Sec. 2803. Repeal of annual reporting requirement on military
    construction and military family housing activities.
    Sec. 2804. Funds for housing allowances of members assigned to military
    family housing under alternative authority for acquisition and
    improvement of military housing.
    Sec. 2805. Extension of alternative authority for acquisition and
    improvement of military housing.
    Sec. 2806. Treatment of financing costs as allowable expenses under
    contracts for utility services from utility systems conveyed under
    privatization initiative.

             Subtitle B--Real Property and Facilities Administration

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

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

    Sec. 2821. Lease back of base closure property.

                          Subtitle D--Land Conveyances

                            Part I--Army Conveyances

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

                            Part II--Navy Conveyances

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

                         Part III--Air Force Conveyances

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

                            Subtitle E--Other Matters

    Sec. 2861. Management of the Presidio of San Francisco.
    Sec. 2862. Transfer of jurisdiction for development of Air Force morale,
    welfare, and recreation facility, Park City, Utah.
    Sec. 2863. Alternate site for United States Air Force Memorial,
    preservation of open space on Arlington Ridge tract, and related land
    transfer at Arlington National Cemetery, Virginia.
    Sec. 2864. Establishment of memorial to victims of terrorist attack on
    Pentagon Reservation and authority to accept monetary contributions for
    memorial and repair of Pentagon.
    Sec. 2865. Repeal of limitation on cost of renovation of Pentagon
    Reservation.
    Sec. 2866. Development of United States Army Heritage and Education
    Center at Carlisle Barracks, Pennsylvania.
    Sec. 2867. Effect of limitation on construction of roads or highways,
    Marine Corps Base, Camp Pendleton, California.
    Sec. 2868. Establishment of World War II memorial at additional location
    on Guam.
    Sec. 2869. Demonstration project for purchase of fire, security, police,
    public works, and utility services from local government agencies.
    Sec. 2870. Report on future land needs of United States Military
    Academy, New York, and adjacent community.
    Sec. 2871. Naming of Patricia C. Lamar Army National Guard Readiness
    Center, Oxford, Mississippi.

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

    SEC. 2801. INCREASE IN THRESHOLDS FOR CERTAIN UNSPECIFIED MINOR
    MILITARY CONSTRUCTION PROJECTS.
        (a) Projects Requiring Advance Approval of Secretary Concerned.--
    Subsection (b)(1) of section 2805 of title 10, United States Code, is
    amended by striking ``$500,000'' and inserting ``$750,000''.
        (b) Projects Using Amounts for Operation and Maintenance.--
    Subsection (c)(1) of that section is amended--
            (1) in subparagraph (A), by striking ``$1,000,000'' and
        inserting ``$1,500,000''; and
            (2) in subparagraph (B), by striking ``$500,000'' and inserting
        ``$750,000''.
    SEC. 2802. EXCLUSION OF UNFORESEEN ENVIRONMENTAL HAZARD REMEDIATION
    FROM LIMITATION ON AUTHORIZED COST VARIATIONS.
        Subsection (d) of section 2853 of title 10, United States Code, is
    amended to read as follows:
        ``(d) The limitation on cost increases in subsection (a) does not
    apply to the following:
            ``(1) The settlement of a contractor claim under a contract.
            ``(2) The costs associated with the required remediation of an
        environmental hazard in connection with a military construction
        project or military family housing project, such as asbestos
        removal, radon abatement, lead-based paint removal or abatement, or
        any other legally required environmental hazard remediation, if the
        required remediation could not have reasonably been anticipated at
        the time the project was approved originally by Congress.''.
    SEC. 2803. REPEAL OF ANNUAL REPORTING REQUIREMENT ON MILITARY
    CONSTRUCTION AND MILITARY FAMILY HOUSING ACTIVITIES.
        (a) Repeal.--Section 2861 of title 10, United States Code, is
    repealed.
        (b) Clerical Amendment.--The table of sections at the beginning of
    subchapter III of chapter 169 of such title is amended by striking the
    item relating to section 2861.
    SEC. 2804. FUNDS FOR HOUSING ALLOWANCES OF MEMBERS ASSIGNED TO MILITARY
    FAMILY HOUSING UNDER ALTERNATIVE AUTHORITY FOR ACQUISITION AND
    IMPROVEMENT OF MILITARY HOUSING.
        (a) In General.--Subchapter IV of chapter 169 of title 10, United
    States Code, is amended by inserting after section 2883 the following
    new section:
    ``Sec. 2883a. Funds for housing allowances of members of the armed
          forces assigned to certain military family housing units
        ``(a) Authority to Transfer Funds To Cover Housing Allowances.--
    During the fiscal year in which a contract is awarded for the
    acquisition or construction of military family housing units under this
    subchapter that are not to be owned by the United States, the Secretary
    of Defense may transfer the amount determined under subsection (b) with
    respect to such housing from appropriations available for support of
    military housing for the armed force concerned for that fiscal year to
    appropriations available for pay and allowances of military personnel
    of that same armed force for that same fiscal year.
        ``(b) Amount Transferred.--The total amount authorized to be
    transferred under subsection (a) in connection with a contract under
    this subchapter may not exceed an amount equal to any additional
    amounts payable during the fiscal year in which the contract is awarded
    to members of the armed forces assigned to the acquired or constructed
    housing units as basic allowance for housing under section 403 of title
    37 that would not otherwise have been payable to such members if not
    for assignment to such housing units.
        ``(c) Transfers Subject to Appropriations.--The transfer of funds
    under the authority of subsection (a) is limited to such amounts as may
    be provided in advance in appropriations Acts.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    that subchapter is amended by inserting after the item relating to
    section 2883 the following new item:

    ``2883a. Funds for housing allowances of members of the armed forces
    assigned to certain military family housing units.''.

    SEC. 2805. EXTENSION OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND
    IMPROVEMENT OF MILITARY HOUSING.
        Section 2885 of title 10, United States Code, is amended by
    striking ``2004'' and inserting ``2012''.
    SEC. 2806. TREATMENT OF FINANCING COSTS AS ALLOWABLE EXPENSES UNDER
    CONTRACTS FOR UTILITY SERVICES FROM UTILITY SYSTEMS CONVEYED UNDER
    PRIVATIZATION INITIATIVE.
        (a) Evaluation of Federal Acquisition Regulation.--The Secretary of
    Defense shall conduct an evaluation of the Federal Acquisition
    Regulation to determine whether or not it is advisable to modify the
    Federal Acquisition Regulation to provide that a contract for utility
    services from a utility system conveyed under section 2688(a) of title
    10, United States Code, may include terms and conditions that recognize
    financing costs, such as return on equity and interest on debt, as an
    allowable expense when incurred by the conveyee of the utility system
    to acquire, operate, renovate, replace, upgrade, repair, or expand the
    utility system. The Secretary shall complete the evaluation not later
    than 90 days after the date of the enactment of this Act.
        (b) Submission of Recommendation to Federal Acquisition Regulatory
    Council.--If the Secretary determines under subsection (a) that it is
    advisable to modify the Federal Acquisition Regulation to provide that
    a contract described in such subsection may include terms and
    conditions described in such subsection, the Secretary shall submit the
    results of the evaluation to the Federal Acquisition Regulatory Council
    together with a recommendation regarding the amendments to the Federal
    Acquisition Regulation necessary to effectuate the modification.

            Subtitle B--Real Property and Facilities Administration

    SEC. 2811. USE OF MILITARY INSTALLATIONS FOR CERTAIN RECREATIONAL
    ACTIVITIES.
        (a) Waiver Authority.--Section 2671 of title 10, United States
    Code, is amended--
            (1) in subsection (b), by striking ``(b)'' and inserting ``(e)
        Regulations.--'' and transferring the subsection to the end of the
        section; and
            (2) by inserting after subsection (a) the following new
        subsection (b):
        ``(b) Waiver Authority.--(1) The Secretary of Defense may waive or
    otherwise modify the fish and game laws of a State or Territory
    otherwise applicable under subsection (a)(1) to hunting, fishing, or
    trapping at a military installation or facility if the Secretary
    determines that the application of such laws to such hunting, fishing,
    or trapping without modification could result in undesirable
    consequences for public health or safety at the installation or
    facility. The authority to waive such laws includes the authority to
    extend, but not reduce, the specified season for certain hunting,
    fishing, or trapping. The Secretary may not waive the requirements
    under subsection (a)(2) regarding a license for such hunting, fishing,
    or trapping or any fee imposed by a State or Territory to obtain such a
    license.
        ``(2) If the Secretary determines that a waiver of fish and game
    laws of a State or Territory is appropriate under paragraph (1), the
    Secretary shall provide written notification to the appropriate State
    or Territory officials stating the reasons for, and extent of, the
    waiver. The notification shall be provided at least 30 days before
    implementation of the waiver.''.
        (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``General Requirements for
        Hunting, Fishing, and Trapping.--'' after ``(a)'';
            (2) in subsection (c), by inserting ``Violations.--'' after
        ``(c)''; and
            (3) in subsection (d), by inserting ``Relation to Treaty
        Rights.--'' after ``(d)''.
    SEC. 2812. AVAILABILITY OF PROCEEDS OF SALES OF DEPARTMENT OF DEFENSE
    PROPERTY FROM CERTAIN CLOSED MILITARY INSTALLATIONS.
        (a) Modification of Availability Percentages.--Subsection (h)(2) of
    section 204 of the Federal Property and Administrative Services Act of
    1949 (40 U.S.C. 485) is amended by striking subparagraphs (A) and (B)
    and inserting the following new subparagraphs:
            ``(A) In the case of property located at a military
        installation that is closed, such amount shall be available for
        facility maintenance and repair or environmental restoration by the
        military department that had jurisdiction over such property before
        the closure of the military installation.
            ``(B) In the case of property located at any other military
        installation--
                ``(i) 50 percent of such amount shall be available for
            facility maintenance and repair or environmental restoration at
            the military installation where such property was located
            before it was disposed of or transferred; and
                ``(ii) 50 percent of such amount shall be available for
            facility maintenance and repair and for environmental
            restoration by the military department that had jurisdiction
            over such property before it was disposed of or transferred.''.
        (b) Relation to Other Laws.--Subsection (h) of such section is
    further amended--
            (1) in paragraph (1), by inserting ``pursuant to a base closure
        law'' after ``realignment'' in the first sentence; and
            (2) in paragraph (5), by inserting before the period at the end
        the following: ``, and the term `base closure law' shall have the
        meaning given that term in section 2667(h)(2) of such title''.
    SEC. 2813. PILOT PROGRAM TO PROVIDE ADDITIONAL TOOLS FOR EFFICIENT
    OPERATION OF MILITARY INSTALLATIONS.
        (a) Initiative Authorized.--The Secretary of Defense may carry out
    a pilot program (to be known as the ``Pilot Efficient Facilities
    Initiative'') for purposes of determining the potential for increasing
    the efficiency and effectiveness of the operation of military
    installations.
        (b) Designation of Participating Military Installations.--(1) The
    Secretary of Defense may designate up to two military installations of
    each military department for participation in the Initiative.
        (2) Before designating a military installation under paragraph (1),
    the Secretary shall consult with employees at the installation and
    communities in the vicinity of the installation regarding the
    Initiative.
        (3) The Secretary shall transmit to Congress written notification
    of the designation of a military installation to participate in the
    Initiative not later than 30 days before taking any action to carry out
    the Initiative at the installation. The notification shall include a
    description of the steps taken by the Secretary to comply with
    paragraph (2).
        (c) Management Plan.--(1) As part of the notification required
    under subsection (b), the Secretary of Defense shall submit a
    management plan for the Initiative at the military installation
    designated in the notification.
        (2) The management plan for a designated military installation
    shall include a description of--
            (A) each proposed lease of real or personal property located at
        the military installation;
            (B) each proposed disposal of real or personal property located
        at the installation;
            (C) each proposed leaseback of real or personal property leased
        or disposed of at the installation;
            (D) each proposed conversion of services at the installation
        from Federal Government performance to non-Federal Government
        performance, including performance by contract with a State or
        local government or private entity or performance as consideration
        for the lease or disposal of property at the installation; and
            (E) each other action proposed to be taken to improve mission
        effectiveness and reduce the cost of providing quality installation
        support at the installation.
        (3) With respect to each proposed action described under paragraph
    (2), the management plan shall include--
            (A) an estimate of the savings expected to be achieved as a
        result of the action;
            (B) each regulation not required by statute that is proposed to
        be waived to implement the action; and
            (C) each statute or regulation required by statute that is
        proposed to be waived to implement the action, including--
                (i) an explanation of the reasons for the proposed waiver;
            and
                (ii) a description of the action to be taken to protect the
            public interests served by the statute or regulation, as the
            case may be, in the event of the waiver.
        (4) The management plan shall include measurable criteria for the
    evaluation of the effects of the actions taken pursuant to the
    Initiative at the designated military installation.
        (d) Waiver of Statutory Requirements.--The Secretary of Defense may
    waive any statute, or regulation required by statute, for purposes of
    carrying out the Initiative only if specific authority for the waiver
    of such statute or regulation is provided in a law that is enacted
    after the date of the enactment of this Act.
        (e) Installation Efficiency Initiative Fund.--(1) There is
    established on the books of the Treasury a fund to be known as the
    ``Installation Efficiency Initiative Fund''.
        (2) There shall be deposited in the Fund all cash rents, payments,
    reimbursements, proceeds, and other amounts from leases, sales, or
    other conveyances or transfers, joint activities, and other actions
    taken under the Initiative.
        (3) To the extent provided in advance in authorization Acts and
    appropriations Acts, amounts in the Fund shall be available to the
    Secretary of Defense for purposes of managing capital assets and
    providing support services at military installations participating in
    the Initiative. Amounts in the Fund may be used for such purposes in
    addition to, or in combination with, other amounts authorized to be
    appropriated for such purposes. Amounts in the Fund shall be available
    for such purposes for five years.
        (4) Subject to applicable financial management regulations, the
    Secretary shall structure the Fund, and provide administrative policies
    and procedures, in order to provide proper control of deposits in and
    disbursements from the Fund.
        (f) Report.--Not later than December 31, 2004, the Secretary of
    Defense shall submit to Congress a report on the Initiative. The report
    shall contain a description of the actions taken under the Initiative
    and include such other information, including recommendations, as the
    Secretary considers appropriate regarding the Initiative.
        (g) Definitions.--In this section:
            (1) The term ``Initiative'' means the Pilot Efficient
        Facilities Initiative.
            (2) The term ``Fund'' means the Installation Efficiency
        Initiative Fund.
            (3) The term ``military installation'' has the meaning given
        such term in section 2687(e) of title 10, United States Code.
        (h) Termination.--The authority of the Secretary of Defense to
    carry out the Initiative shall terminate December 31, 2005.
    SEC. 2814. DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM FACILITY
    MAINTENANCE COSTS.
        (a) Authority To Carry Out Program.--The Secretary of the Army may
    conduct a demonstration program to assess the feasibility and
    desirability of including facility maintenance requirements in
    construction contracts for military construction projects for the
    purpose of determining whether such requirements facilitate reductions
    in the long-term facility maintenance costs of the military
    departments.
        (b) Contracts.--Not more than three contracts entered into in any
    year may contain requirements referred to in subsection (a) for the
    purpose of the demonstration program. The demonstration program may
    only cover contracts entered into on or after the date of the enactment
    of this Act.
        (c) Effective Period of Requirements.--The effective period of a
    requirement referred to in subsection (a) that is included in a
    contract for the purpose of the demonstration program may not exceed
    five years.
        (d) Reporting Requirements.--Not later than January 31, 2005, the
    Secretary of the Army shall submit to Congress a report on the
    demonstration program, including the following:
            (1) A description of all contracts that contain requirements
        referred to in subsection (a) for the purpose of the demonstration
        program.
            (2) An evaluation of the demonstration program and a
        description of the experience of the Secretary with respect to such
        contracts.
            (3) Any recommendations, including recommendations for the
        termination, continuation, or expansion of the demonstration
        program, that the Secretary considers appropriate.
        (e) Expiration.--The authority under subsection (a) to include
    requirements referred to in that subsection in contracts under the
    demonstration program shall expire on September 30, 2006.
        (f) Funding.--Amounts authorized to be appropriated for the Army
    for a fiscal year for military construction shall be available for the
    demonstration program under this section in such fiscal year.
    SEC. 2815. BASE EFFICIENCY PROJECT AT BROOKS AIR FORCE BASE, TEXAS.
        (a) Administration of Project.--Section 136(m)(9) of the Military
    Construction Appropriations Act, 2001 (division A of Public Law 106-
    246; 114 Stat. 524), is amended by striking ``, who shall be a civilian
    official of the Department appointed by the President with the advice
    and consent of the Senate''.
        (b) Indemnification of Transferees.--Not later than March 1, 2002,
    the Secretary of Defense shall submit to Congress a report evaluating
    the base efficiency project conducted under section 136 of the Military
    Construction Appropriations Act, 2001 (division A of Public Law 106-
    246; 114 Stat. 520). The evaluation shall address whether the disposal
    of real property under subsection (e) or other provisions of that
    section requires any additional authority for the Secretary beyond the
    authority provided under existing law to hold harmless, defend, and
    indemnify the recipients of the property against claims arising out of
    Department of Defense activities on the property before disposal. If
    the Secretary determines that inclusion of such an indemnity provision
    would facilitate activities under the base efficiency project, the
    Secretary shall include a recommendation in the report regarding the
    nature and extent of the indemnification to be provided.

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

    SEC. 2821. LEASE BACK OF BASE CLOSURE PROPERTY.
        (a) 1988 Law.--Section 204(b)(4) of the Defense Authorization
    Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
    U.S.C. 2687 note) is amended--
            (1) by redesignating subparagraphs (E), (F), (G), (H), and (I)
        as subparagraphs (F), (G), (H), (I), and (J), respectively; and
            (2) by inserting after subparagraph (D) the following new
        subparagraph (E):
        ``(E)(i) The Secretary may transfer real property at an
    installation approved for closure or realignment under this title
    (including property at an installation approved for realignment which
    will be retained by the Department of Defense or another Federal agency
    after realignment) to the redevelopment authority for the installation
    if the redevelopment authority agrees to lease, directly upon transfer,
    one or more portions of the property transferred under this
    subparagraph to the Secretary or to the head of another department or
    agency of the Federal Government. Subparagraph (B) shall apply to a
    transfer under this subparagraph.
        ``(ii) A lease under clause (i) shall be for a term of not to
    exceed 50 years, but may provide for options for renewal or extension
    of the term by the department or agency concerned.
        ``(iii) A lease under clause (i) may not require rental payments by
    the United States.
        ``(iv) A lease under clause (i) shall include a provision
    specifying that if the department or agency concerned ceases requiring
    the use of the leased property before the expiration of the term of the
    lease, the remainder of the lease term may be satisfied by the same or
    another department or agency of the Federal Government using the
    property for a use similar to the use under the lease. Exercise of the
    authority provided by this clause shall be made in consultation with
    the redevelopment authority concerned.
        ``(v) Notwithstanding clause (iii), if a lease under clause (i)
    involves a substantial portion of the installation, the department or
    agency concerned may obtain facility services for the leased property
    and common area maintenance from the redevelopment authority or the
    redevelopment authority's assignee as a provision of the lease. The
    facility services and common area maintenance shall be provided at a
    rate no higher than the rate charged to non-Federal tenants of the
    transferred property. Facility services and common area maintenance
    covered by the lease shall not include--
            ``(I) municipal services that a State or local government is
        required by law to provide to all landowners in its jurisdiction
        without direct charge; or
            ``(II) firefighting or security-guard functions.''.
        (b) 1990 Law.--Section 2905(b)(4)(E) of the Defense Base Closure
    and Realignment Act of 1990 (part A of title XXIX of Public Law 101-
    510; 10 U.S.C. 2687 note) is amended by adding at the end the following
    new clause:
        ``(v) Notwithstanding clause (iii), if a lease under clause (i)
    involves a substantial portion of the installation, the department or
    agency concerned may obtain facility services for the leased property
    and common area maintenance from the redevelopment authority or the
    redevelopment authority's assignee as a provision of the lease. The
    facility services and common area maintenance shall be provided at a
    rate no higher than the rate charged to non-Federal tenants of the
    transferred property. Facility services and common area maintenance
    covered by the lease shall not include--
            ``(I) municipal services that a State or local government is
        required by law to provide to all landowners in its jurisdiction
        without direct charge; or
            ``(II) firefighting or security-guard functions.''.

                          Subtitle D--Land Conveyances

                            PART I--ARMY CONVEYANCES

    SEC. 2831. LAND CONVEYANCE, WHITTIER-ANCHORAGE PIPELINE TANK FARM,
    ANCHORAGE, ALASKA.
        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the Port of Anchorage, an entity of the Municipality of Anchorage,
    Alaska (in this section referred to as the ``Port''), all right, title,
    and interest of the United States in and to two adjoining parcels of
    real property, including any improvements thereon, consisting of
    approximately 48 acres in Anchorage, Alaska, which are known as the
    Whittier-Anchorage Pipeline Tank Farm, for the purpose of permitting
    the Port to use the parcels for economic development.
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the Port shall pay to the United States an amount, in
    cash or in-kind, equal to not less than the fair market value of the
    conveyed property, as determined by the Secretary. The Secretary may
    authorize the Port to carry out, as in-kind consideration,
    environmental remediation activities for the property to be conveyed.
        (c) Time for Conveyance.--The Secretary may delay the conveyance
    under subsection (a) until such time as the Army studies relating to
    the Alaska deployment of the Interim Brigade Combat Team in Alaska are
    completed.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Port.
        (e) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a) as the Secretary considers appropriate to protect
    the interests of the United States.
    SEC. 2832. LEASE AUTHORITY, FORT DERUSSY, HAWAII.
        (a) Lease Authorized.--Notwithstanding section 809 of the Military
    Construction Authorization Act, 1968 (Public Law 90-110; 81 Stat. 309),
    and section 2814(b) of the Military Construction Authorization Act,
    1989 (Public Law 100-456; 102 Stat. 2117), the Secretary of the Army
    may enter into a lease with the City and County of Honolulu, Hawaii,
    for the purpose of making available to the City and County a parcel of
    real property at Fort DeRussy, Hawaii, for the construction and
    operation of a parking facility. The size and location of the parcel
    shall be determined by the Secretary.
        (b) Terms and Conditions.--The lease under subsection (a) may be
    for such term of years, require such consideration, and contain such
    other terms and conditions as the Secretary considers appropriate to
    protect the interests of the United States.
        (c) Relationship to Other Lease Authority.--Section 2667 of title
    10, United States Code, shall not apply to the lease under subsection
    (a).
        (d) Disposition of Money Rentals.--All money rentals received
    pursuant to the lease under subsection (a) shall be--
            (1) retained by the Secretary;
            (2) credited to an appropriation account that supports the
        operation and maintenance of Fort DeRussy; and
            (3) available for such purpose until expended.
    SEC. 2833. MODIFICATION OF LAND EXCHANGE, ROCK ISLAND ARSENAL,
    ILLINOIS.
        (a) Additional Conveyance Authorized.--Subsection (a) of section
    2832 of the Military Construction Authorization Act for Fiscal Year
    2000 (division B of Public Law 106-65; 113 Stat. 857) is amended--
            (1) by  inserting  ``(1)''  after  ``Conveyance  Authorized.--
        ''; and
            (2) by adding at the end the following new paragraph:
        ``(2) The Secretary may convey to the City all right, title, and
    interest of the United States in and to an additional parcel of real
    property, including improvements thereon, at the Rock Island Arsenal
    consisting of approximately .513 acres.''.
        (b) Consideration.--Subsection (b) of such section is amended--
            (1) by inserting ``(1)'' after ``Consideration.--'';
            (2) by striking ``subsection (a)'' both places it appears and
        inserting ``subsection (a)(1)''; and
            (3) by adding at the end the following new paragraph:
        ``(2) As consideration for the conveyance under subsection (a)(2),
    the City shall convey to the Secretary all right, title, and interest
    of the City in and to a parcel of real property consisting of
    approximately .063 acres and construct on the parcel, at the City's
    expense, a new access ramp to the Rock Island Arsenal.''.
    SEC. 2834. LAND CONVEYANCE, FORT DES MOINES, IOWA.
        (a) Conveyance Authorized.--The Secretary of the Army may convey,
    without consideration, to Fort Des Moines Memorial Park, Inc., a
    nonprofit organization (in this section referred to as the ``Memorial
    Park''), all right, title, and interest of the United States in and to
    a parcel of real property, including improvements thereon, consisting
    of approximately 4.6 acres located at Fort Des Moines United States
    Army Reserve Center, Des Moines, Iowa, for the purpose of the
    establishment of the Fort Des Moines Memorial Park and Education
    Center.
        (b) Condition of Conveyance.--The conveyance under subsection (a)
    shall be subject to the condition that the Memorial Park use the
    property for museum and park purposes.
        (c) Reversion.--If the Secretary determines at any time that the
    real property conveyed under subsection (a) is not being used for
    museum and park purposes, all right, title, and interest in and to the
    real property, including any improvements thereon, shall revert to the
    United States, and the United States shall have the right of immediate
    entry thereon.
        (d) Reimbursement for Costs of Conveyance.--(1) The Memorial Park
    shall reimburse the Secretary for the excess costs incurred by the
    Secretary for any environmental assessment, study, or analysis, or for
    any other excess costs incurred by the Secretary, in connection with
    the conveyance authorized by this section, if the excess costs were
    incurred as a result of a request by the Memorial Park. In this
    paragraph, the term ``excess costs'' means costs in excess of those
    costs considered reasonable and necessary by the Secretary to comply
    with existing law to make the conveyance authorized by subsection (a).
        (2) Section 2695(c) of title 10, United States Code, shall apply to
    any amount received under this subsection.
        (e) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Memorial Park.
        (f) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a) as the Secretary considers appropriate to protect
    the interests of the United States.
    SEC. 2835. MODIFICATION OF LAND CONVEYANCES, FORT DIX, NEW JERSEY.
        Section 2835(c) of the Military Construction Authorization Act for
    Fiscal Year 1998 (division B of Public Law 105-85; 111 Stat. 2004) is
    amended by adding at the end the following new paragraph:
        ``(3) Notwithstanding paragraph (1) or (2), the Borough and Board
    may exchange between each other, without the consent of the Secretary,
    all or any portion of the property conveyed under subsection (a) so
    long as the property continues to be used by the grantees for economic
    development or educational purposes.''.
    SEC. 2836. LAND CONVEYANCE, ENGINEER PROVING GROUND, FORT BELVOIR,
    VIRGINIA.
        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the Commonwealth of Virginia (in this section referred to as the
    ``Commonwealth'') all right, title, and interest of United States in
    and to two parcels of real property, including any improvements
    thereon, located at the Engineer Proving Ground, Fort Belvoir,
    Virginia, as follows:
            (1) The parcel, consisting of approximately 170 acres, that is
        to be used for construction of a portion of the Fairfax County
        Parkway.
            (2) The parcel, consisting of approximately 11.45 acres, that
        is subject to an easement previously granted to the Commonwealth as
        Army easement DACA 31-3-96-440 for the construction of a portion of
        Interstate Highway 95.
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the Commonwealth shall--
            (1) design and construct, at its expense and for public
        benefit, the portion of the Fairfax County Parkway through the
        Engineer Proving Ground;
            (2) provide a conceptual design for eventual incorporation and
        construction by others of access into the Engineer Proving Ground
        at the Rolling Road Interchange from Fairfax County Parkway as
        specified in Virginia Department of Transportation Project #R000-
        029-249, C514;
            (3) provide such easements or rights of way for utilities under
        or across the Fairfax County Parkway as the Secretary considers
        appropriate for the optimum development of the Engineer Proving
        Ground; and
            (4) pay the United States an amount, jointly determined by the
        Secretary and the Commonwealth, appropriate to cover the costs of
        constructing a replacement building for building 5089 located on
        the Engineer Proving Ground.
        (c) Responsibility for Environmental Cleanup.--The Secretary shall
    retain liability under the Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.), and
    any other applicable environmental statute or regulation, for any
    environmental hazard on the property conveyed under subsection (a) as
    of the date of the conveyance under that subsection.
        (d) Acceptance and Disposition of Funds.--(1) The Secretary of the
    Army may accept the funds paid by the Commonwealth as consideration
    under subsection (b)(4) and shall credit the accepted funds to the
    appropriation or appropriations that are appropriate for paying the
    costs of the replacement of Building 5089, located on the Engineer
    Proving Ground, Fort Belvoir, Virginia, consistent with paragraphs (2)
    and (3) of this subsection.
        (2) Funds accepted under paragraph (1) shall be available, until
    expended, for the replacement of Building 5089.
        (3) Funds appropriated pursuant to the authorization of
    appropriations in section 301(a)(1), and funds appropriated pursuant to
    the authorization of appropriations in section 2104(a)(4), shall be
    available in accordance with section 2805 of title 10, United States
    Code, for the excess, if any, of the cost of the replacement of
    Building 5089 over the amount available for such project under
    paragraph (2).
        (e) Description of Property.--(1) The exact acreage and legal
    description of the real property to be conveyed under subsection (a)(1)
    shall be determined by a survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Commonwealth.
        (2) The exact acreage and legal description of the real property to
    be conveyed under subsection (a)(2) are as set forth in Army easement
    DACA 31-3-96-440.
        (f) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a) as the Secretary considers appropriate to protect
    the interests of the United States.
    SEC. 2837. LAND EXCHANGE AND CONSOLIDATION, FORT LEWIS, WASHINGTON.
        (a) Exchange Authorized.--(1) The Secretary of the Army may convey
    to the Nisqually Tribe, a federally recognized Indian tribe whose
    tribal lands are located within the State of Washington, all right,
    title, and interest of the United States in and to two parcels of real
    property, including any improvements thereon, consisting of
    approximately 138 acres at Fort Lewis, Washington, in exchange for the
    real property described in subsection (b).
        (2) The property authorized for conveyance under paragraph (1) does
    not include Bonneville Power Administration transmission facilities or
    the right of way described in subsection (c).
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the Nisqually Tribe shall--
            (1) acquire from Thurston County, Washington, several parcels
        of real property consisting of approximately 416 acres that are
        owned by the county, are located within the boundaries of Fort
        Lewis, and are currently leased by the Army; and
            (2) convey fee title over the acquired property to the
        Secretary.
        (c) Right-of-Way for Bonneville Power Administration.--The
    Secretary may use the authority provided in section 2668 of title 10,
    United States Code, to convey to the Bonneville Power Administration a
    right-of-way that authorizes the Bonneville Power Administration to use
    real property at Fort Lewis as a route for the Grand Coulee-Olympia and
    Olympia-White River electric transmission lines and appurtenances for
    the purpose of facilitating the removal of such transmission lines from
    tribal lands of the Nisqually Tribe.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    and acquired under subsection (b) shall be determined by surveys
    satisfactory to the Secretary and the Nisqually Tribe. The cost of a
    survey shall be borne by the recipient of the property being surveyed.
        (e) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyances
    under this section as the Secretary considers appropriate to protect
    the interests of the United States.
    SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, KEWAUNEE, WISCONSIN.
        (a) Conveyance Authorized.--The Administrator of General Services
    may convey, without consideration, to the City of Kewaunee, Wisconsin
    (in this section referred to as the ``City''), all right, title, and
    interest of the United States in and to a parcel of Federal real
    property, including improvements thereon, that is located at 401 5th
    Street in Kewaunee, Wisconsin, and contains a surplus Army Reserve
    Center. After such conveyance, the property may be used and occupied
    only by the City or by another local or State government entity
    approved by the City.
        (b) Reversionary Interest.--(1) During the 20-year period beginning
    on the date the Administrator makes the conveyance under subsection
    (a), if the Administrator determines that the conveyed property is not
    being used and occupied in accordance with such subsection, all right,
    title, and interest in and to the property, including any improvements
    thereon, shall revert to the United States.
        (2) Upon reversion, the Administrator shall immediately proceed to
    a public sale of the property. The Administrator shall deposit the net
    proceeds from the public sale in the land and water conservation fund
    established under section 2 of the Land and Water Conservation Fund Act
    of 1965 (16 U.S.C 460l-5).
        (c) Additional Limitation on Use.--The property conveyed under
    subsection (a) shall not be used for commercial purposes.
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by a survey satisfactory to the Administrator. The
    cost of the survey shall be borne by the City.
        (e) Additional Terms and Conditions.--The Administrator may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a) as the Administrator considers appropriate to
    protect the interests of the United States.

                           PART II--NAVY CONVEYANCES

    SEC. 2841. TRANSFER OF JURISDICTION, CENTERVILLE BEACH NAVAL STATION,
    HUMBOLDT COUNTY, CALIFORNIA.
        (a) Transfer Authorized.--The Secretary of the Navy may transfer,
    without reimbursement, to the administrative jurisdiction of the
    Secretary of the Interior the real property, including any improvements
    thereon, consisting of the closed Centerville Beach Naval Station in
    Humboldt County, California, for the purpose of permitting the
    Secretary of the Interior to manage the real property as open space or
    for other public purposes.
        (b) Legal Description.--The exact acreage and legal description of
    the real property to be transferred under this section shall be
    determined by a survey satisfactory to the Secretary of the Navy. The
    cost of the survey shall be borne by the Secretary of the Interior.
        (c) Additional Terms and Conditions.--The Secretary of the Navy may
    require such additional terms and conditions in connection with the
    transfer under subsection (a) as the Secretary of the Navy considers
    appropriate to protect the interests of the United States.
    SEC. 2842. LAND CONVEYANCE, PORT OF LONG BEACH, CALIFORNIA.
        (a) Conveyance Authorized.--The Secretary of the Navy may convey to
    the City of Long Beach, California, acting by and through its Board of
    Harbor Commissioners (in this section referred to as the ``City''), all
    right, title, and interest of the United States in and to up to 11.08
    acres of real property, including any improvements thereon, comprising
    a portion of the Navy Mole at the former Long Beach Naval Complex, Long
    Beach, California, for the purpose of permitting the City to use the
    property to support the reuse of other former Navy property conveyed to
    the City.
        (b) Consideration.--(1) Subject to paragraph (2), as consideration
    for the conveyance under subsection (a), the City shall--
            (A) convey to the Secretary all right, title, and interest of
        the City in and to a parcel of real property of equal size on the
        Mole that is acceptable to the Secretary; and
            (B) construct on the property conveyed under subparagraph (A)
        suitable replacement fuel transfer and storage facilities for the
        Navy, similar or equivalent to the facilities on the property to be
        conveyed under subsection (a), as determined necessary by the
        Secretary.
        (2) If the Secretary determines that replacement fuel transfer and
    storage facilities are not required by the Navy, the Secretary may make
    the conveyance under subsection (a) at no cost to the City.
        (c) Time for Conveyance.--Unless the Secretary makes the
    determination referred to in subsection (b)(2), the conveyance to the
    City authorized by subsection (a) shall be made only after the
    Secretary determines that the replacement fuel transfer and storage
    facilities have been constructed and are ready for use.
        (d) Construction Schedule.--The City shall construct the
    replacement fuel transfer and storage facilities pursuant to such
    schedule and in such a manner so as to not interrupt or otherwise
    adversely affect the capability of the Navy to accomplish its mission.
        (e) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsections (a)
    and (b) shall be determined by surveys satisfactory to the Secretary.
    The City shall be responsible for conducting the surveys.
        (f) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyances
    under this section as the Secretary considers appropriate to protect
    the interests of the United States.
    SEC. 2843. CONVEYANCE OF PIER, NAVAL BASE, SAN DIEGO, CALIFORNIA.
        (a) Conveyance Authorized.--(1) The Secretary of the Navy may
    convey, without consideration, to the San Diego Aircraft Carrier Museum
    or its designee (in this section referred to as the ``Museum'') all
    right, title, and interest of the United States in and to the property
    known as Pier 11A at Naval Base, San Diego, California, together with
    associated structures and interests in the land underlying the pier, if
    any, for the purpose of permitting the Museum to use the property to
    berth a vessel and operate a museum for the general public.
        (2) The Secretary may not make the conveyance until such time as
    the Museum certifies that the Museum has acquired an interest in
    property from the State of California or a political subdivision of the
    State to facilitate the use of the conveyed pier to berth a vessel and
    operate a museum for the general public.
        (b) Assumption of Liability.--The Museum shall expressly accept any
    and all liability pertaining to the physical condition of the property
    conveyed under subsection (a) and shall hold the United States harmless
    from any and all liability arising from the property's physical
    condition.
        (c) Reimbursement for Costs of Conveyance.--(1) The Museum shall
    reimburse the Secretary for the excess costs incurred by the Secretary
    for any environmental assessment, study, or analysis, or for any other
    excess costs incurred by the Secretary, in connection with the
    conveyance authorized by this section, if the excess costs were
    incurred as a result of a request by the Museum. In this paragraph, the
    term ``excess costs'' means costs in excess of those costs considered
    reasonable and necessary by the Secretary to comply with existing law
    to make the conveyance authorized by subsection (a).
        (2) Section 2695(c) of title 10, United States Code, shall apply to
    any amount received by the Secretary under this subsection.
        (d) Description of Property.--The exact acreage and legal
    description of the property to be conveyed under subsection (a) shall
    be determined by a survey satisfactory to the Secretary. The cost of
    the survey shall be borne by the Museum.
        (e) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a) as the Secretary considers appropriate to protect
    the interests of the United States.
    SEC. 2844. MODIFICATION OF AUTHORITY FOR CONVEYANCE OF NAVAL COMPUTER
    AND TELECOMMUNICATIONS STATION, CUTLER, MAINE.
        Section 2853(a) of the Military Construction Authorization Act for
    Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A-430) is
    amended by inserting ``any or'' before ``all right''.
    SEC. 2845. LAND TRANSFER AND CONVEYANCE, NAVAL SECURITY GROUP ACTIVITY,
    WINTER HARBOR, MAINE.
        (a) Transfer of Jurisdiction of Schoodic Point Property
    Authorized.--(1) The Secretary of the Navy may transfer to the
    Secretary of the Interior administrative jurisdiction of a parcel of
    real property, including any improvements thereon and appurtenances
    thereto, consisting of approximately 26 acres as generally depicted as
    Tract 15-116 on the map entitled ``Acadia National Park Schoodic Point
    Area'', numbered 123/80,418 and dated May 2001. The map shall be on
    file and available for inspection in the appropriate offices of the
    National Park Service.
        (2) The transfer authorized by this subsection shall occur, if at
    all, concurrently with the reversion of administrative jurisdiction of
    a parcel of real property consisting of approximately 71 acres, as
    depicted as Tract 15-115 on the map referred to in paragraph (1), from
    the Secretary of the Navy to the Secretary of the Interior as
    authorized by Public Law 80-260 (61 Stat. 519) and to be executed on or
    about June 30, 2002.
        (b) Conveyance of Corea and Winter Harbor Properties Authorized.--
    The Secretary of the Navy may convey, without consideration, to the
    State of Maine, any political subdivision of the State of Maine, or any
    tax-supported agency in the State of Maine, all right, title, and
    interest of the United States in and to any of the parcels of real
    property, including any improvements thereon and appurtenances thereto,
    consisting of approximately 485 acres and comprising the former
    facilities of the Naval Security Group Activity, Winter Harbor, Maine,
    located in Hancock County, Maine, less the real property described in
    subsection (a)(1), for the purpose of economic redevelopment.
        (c) Transfer of Personal Property.--The Secretary of the Navy may
    transfer, without consideration, to the Secretary of the Interior in
    the case of the real property transferred under subsection (a), or to
    any recipient of such real property in the case of real property
    conveyed under subsection (b), any or all personal property associated
    with the real property so transferred or conveyed, including any
    personal property required to continue the maintenance of the
    infrastructure of such real property (including the generators for an
    uninterrupted power supply in building 154 at the Corea site).
        (d) Maintenance of Property Pending Conveyance.--(1) The Secretary
    of the Navy shall maintain any real property, including any
    improvements thereon, appurtenances thereto, and supporting
    infrastructure, to be conveyed under subsection (b) in accordance with
    the protection and maintenance standards specified in section 101-
    47.4913 of title 41, Code of Federal Regulations, until the earlier
    of--
            (A) the date of the conveyance of such real property under
        subsection (b); or
            (B) September 30, 2003.
        (2) The requirement in paragraph (1) shall not be construed as
    authority to improve the real property, improvements, and
    infrastructure referred to in that paragraph so as to bring such real
    property, improvements, or infrastructure into compliance with any
    zoning or property maintenance codes or to repair any damage to such
    improvements and infrastructure caused by natural accident or disaster.
        (e) Interim Lease.--(1) Until such time as any parcel of real
    property to be conveyed under subsection (b) is conveyed by deed under
    that subsection, the Secretary of the Navy may lease such parcel to any
    person or entity determined by the Secretary to be an appropriate
    lessee of such parcel.
        (2) The amount of rent for a lease under paragraph (1) shall be the
    amount determined by the Secretary to be appropriate, and may be an
    amount less than the fair market value of the lease.
        (f) Reimbursement for Environmental and Other Assessments.--(1) The
    Secretary of the Navy may require each recipient of real property
    conveyed under subsection (b) to reimburse the Secretary for the excess
    costs incurred by the Secretary for any environmental assessment,
    study, or analysis carried out by the Secretary in connection with the
    conveyance of such property, if the excess costs were incurred as a
    result of a request by the recipient. In this paragraph, the term
    ``excess costs'' means costs in excess of those costs considered
    reasonable and necessary by the Secretary to comply with existing law
    to make the conveyance to the recipient.
        (2) Section 2695(c) of title 10, United States Code, shall apply to
    any amount received by the Secretary under this subsection.
        (g) Description of Property.--The exact acreage and legal
    description of the real property transferred under subsection (a), and
    each parcel of real property conveyed under subsection (b), shall be
    determined by a survey satisfactory to the Secretary of the Navy. The
    cost of any survey for real property conveyed under subsection (b)
    shall be borne by the recipient of the real property.
        (h) Additional Terms and Conditions.--The Secretary of the Navy may
    require such additional terms and conditions in connection with any
    conveyance under subsection (b), and any lease under subsection (e), as
    the Secretary considers appropriate to protect the interests of the
    United States.
    SEC. 2846. LAND ACQUISITION, PERQUIMANS COUNTY, NORTH CAROLINA.
        The Secretary of the Navy may, using funds previously appropriated
    for such purpose, acquire any and all right, title, and interest in and
    to a parcel of real property, including improvements thereon,
    consisting of approximately 240 acres, or any portion thereof, in
    Perquimans County, North Carolina, for purposes of including such
    parcel in the Harvey Point Defense Testing Activity, Hertford, North
    Carolina.
    SEC. 2847. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT,
    TOLEDO, OHIO.
        (a) Conveyance Authorized.--(1) The Secretary of the Navy may
    convey, without consideration, to the Toledo-Lucas County Port
    Authority, Ohio (in this section referred to as the ``Port
    Authority''), any or all right, title, and interest of the United
    States in and to a parcel of real property, including any improvements
    thereon, consisting of approximately 29 acres and comprising the Naval
    Weapons Industrial Reserve Plant, Toledo, Ohio.
        (2) The Secretary may include in the conveyance under paragraph (1)
    such facilities, equipment, fixtures, and other personal property
    located or based on the parcel conveyed under that paragraph, or used
    in connection with the parcel, as the Secretary determines to be excess
    to the Navy.
        (b) Lease Authority.--Until such time as the real property
    described in subsection (a)(1) is conveyed by deed, the Secretary may
    lease such real property, and any personal property described in
    subsection (a)(2), to the Port Authority in exchange for such security,
    fire protection, and maintenance services as the Secretary considers
    appropriate.
        (c) Conditions of Conveyance.--The conveyance under subsection (a),
    and any lease under subsection (b), shall be subject to the conditions
    that the Port Authority--
            (1) accept the real and personal property concerned in their
        condition at the time of the conveyance or lease, as the case may
        be; and
            (2) except as provided in subsection (d), use the real and
        personal property concerned, whether directly or through an
        agreement with a public or private entity, for economic development
        or such other public purposes as the Port Authority considers
        appropriate.
        (d) Subsequent Use.--(1) Subject to the approval of the Secretary,
    the Port Authority may sublease real property or personal property
    covered by a lease under subsection (b) to another person for economic
    development or such other public purposes as the Port Authority
    considers appropriate.
        (2) Following the conveyance of real property under subsection (a),
    the Port Authority may lease or reconvey the real property, and any
    personal property conveyed with such real property under that
    subsection, for economic development or such other public purposes as
    the Port Authority considers appropriate.
        (e) Reimbursement for Costs of Conveyance and Lease.--(1) The Port
    Authority shall reimburse the Secretary for the excess costs incurred
    by the Secretary for any environmental assessment, study, or analysis,
    or for any other excess costs incurred by the Secretary, in connection
    with the conveyance authorized by this section, if the excess costs
    were incurred as a result of a request by the Port Authority. In this
    paragraph, the term ``excess costs'' means costs in excess of those
    costs considered reasonable and necessary by the Secretary to comply
    with existing law to make the conveyance authorized by subsection (a).
        (2) Section 2695(c) of title 10, United States Code, shall apply to
    any amount received by the Secretary under this subsection.
        (f) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection
    (a)(1), and an appropriate inventory or other description of the
    personal property to be conveyed under subsection (a)(2), shall be
    determined by a survey and other means satisfactory to the Secretary.
    The cost of the survey shall be borne by the Port Authority.
        (g) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a)(1), and any lease under subsection (b), as the
    Secretary considers appropriate to protect the interests of the United
    States.
    SEC. 2848. MODIFICATION OF LAND CONVEYANCE, FORMER UNITED STATES MARINE
    CORPS AIR STATION, EAGLE MOUNTAIN LAKE, TEXAS.
        Section 5 of Public Law 85-258 (71 Stat. 583) is amended by
    inserting before the period at the end the following: ``or for the
    protection, maintenance, and operation of other Texas National Guard
    facilities''.

                        PART III--AIR FORCE CONVEYANCES

    SEC. 2851. CONVEYANCE OF AVIGATION EASEMENTS, FORMER NORTON AIR FORCE
    BASE, CALIFORNIA.
        (a) Conveyance Required.--The Administrator of General Services
    shall convey, without consideration, to the Inland Valley Development
    Agency (the redevelopment authority for former Norton Air Force Base,
    California) two avigation easements (identified as APN 289-231-08 and
    APN 289-232-08) held by the United States.
        (b) Condition of Conveyance.--The conveyance required by subsection
    (a) shall be subject to the condition that, if the recipient sells one
    or both of the easements conveyed under subsection (a), the recipient
    shall pay to the United States an amount equal to the lesser of--
            (1) the sale price of the easement; or
            (2) the fair market value of the easement.
        (c) Duration of Condition.--The condition specified in subsection
    (b) shall apply only to a conveyance that occurs during the 10-year
    period beginning on the date the Administrator makes the conveyance
    required by subsection (a).
    SEC. 2852. REEXAMINATION OF LAND CONVEYANCE, LOWRY AIR FORCE BASE,
    COLORADO.
        The Secretary of the Air Force shall reevaluate the terms and
    conditions of the pending negotiated sale agreement with the Lowry
    Redevelopment Authority for certain real property at Lowry Air Force
    Base, Colorado, in light of changed circumstances regarding the
    property, including changes in the flood plain designations affecting
    some of the property, to determine whether the changed circumstances
    warrant a reduction in the amount of consideration otherwise required
    under the agreement or other modifications to the agreement.
    SEC. 2853. WATER RIGHTS CONVEYANCE, ANDERSEN AIR FORCE BASE, GUAM.
        (a) Authority To Convey.--In conjunction with the conveyance of the
    water supply system for Andersen Air Force Base, Guam, under the
    authority of section 2688 of title 10, United States Code, and in
    accordance with all the requirements of that section, the Secretary of
    the Air Force may convey all right, title, and interest of the United
    States, or such lesser estate as the Secretary considers appropriate to
    serve the interests of the United States, in the water rights related
    to the following Air Force properties located on Guam:
            (1) Andy South, also known as the Andersen Administrative
        Annex.
            (2) Marianas Bonins Base Command.
            (3) Andersen Water Supply Annex, also known as the Tumon Water
        Well or the Tumon Maui Well.
        (b) Additional Requirements.--The Secretary may exercise the
    authority contained in subsection (a) only if the Secretary--
            (1) determines that adequate supplies of potable groundwater
        exist under the main base and northwest field portions of Andersen
        Air Force Base to meet the current and long-term requirements of
        the installation for water;
            (2) determines that such supplies of groundwater are
        economically obtainable; and
            (3) requires the conveyee of the water rights under subsection
        (a) to provide a water system capable of meeting the water supply
        needs of the main base and northwest field portions of Andersen Air
        Force Base, as determined by the Secretary.
        (c) Interim Water Supplies.--If the Secretary determines that it is
    in the best interests of the United States to transfer title to the
    water rights and utility systems at Andy South and Andersen Water
    Supply Annex before placing into service a replacement water system and
    well field on Andersen Air Force Base, the Secretary may require that
    the United States have the primary right to all water produced from
    Andy South and Andersen Water Supply Annex until the replacement water
    system and well field is placed into service and operates to the
    satisfaction of the Secretary. In exercising the authority provided by
    this subsection, the Secretary may retain a reversionary interest in
    the water rights and utility systems at Andy South and Andersen Water
    Supply Annex until such time as the replacement water system and well
    field is placed into service and operates to the satisfaction of the
    Secretary.
        (d) Sale of Excess Water Authorized.--(1) As part of the conveyance
    of water rights under subsection (a), the Secretary may authorize the
    conveyee of the water system to sell to public or private entities such
    water from Andersen Air Force Base as the Secretary determines to be
    excess to the needs of the United States. In the event the Secretary
    authorizes the conveyee to resell water, the Secretary shall negotiate
    a reasonable return to the United States of the value of such excess
    water sold by the conveyee, which return the Secretary may receive in
    the form of reduced charges for utility services provided by the
    conveyee.
        (2) If the Secretary cannot meet the requirements of subsection
    (b), and the Secretary determines to proceed with a water utility
    system conveyance under section 2688 of title 10, United States Code,
    without the conveyance of water rights, the Secretary may provide in
    any such conveyance that the conveyee of the water system may sell to
    public or private entities such water from Andy South and Andersen
    Water Supply Annex as the Secretary determines to be excess to the
    needs of the United States. The Secretary shall negotiate a reasonable
    return to the United States of the value of such excess water sold by
    the conveyee, which return the Secretary may receive in the form of
    reduced charges for utility services provided by the conveyee.
        (e) Treatment of Water Rights.--For purposes of section 2688 of
    title 10, United States Code, the water rights referred to in
    subsection (a) shall be considered as part of a utility system (as that
    term is defined in subsection (h)(2) of such section).
    SEC. 2854. CONVEYANCE OF SEGMENT OF LORING PETROLEUM PIPELINE, MAINE,
    AND RELATED EASEMENTS.
        (a) Conveyance Authorized.--The Secretary of the Air Force may
    convey, without consideration, to the Loring Development Authority,
    Maine (in this section referred to as the ``Authority''), all right,
    title, and interest of the United States in and to the segment of the
    Loring Petroleum (POL) Pipeline, Maine, consisting of approximately 27
    miles in length and running between the Searsport terminal and Bangor
    Air National Guard Base.
        (b) Related Easements.--As part of the conveyance authorized by
    subsection (a), the Secretary may convey to the Authority, without
    consideration, all right, title, and interest of the United States in
    and to any easements or rights-of-way necessary for the operation or
    maintenance of the segment of pipeline conveyed under that subsection.
        (c) Reimbursement for Costs of Conveyance.--(1) The Authority shall
    reimburse the Secretary for the excess costs incurred by the Secretary
    for any environmental assessment, study, or analysis, or for any other
    excess costs incurred by the Secretary, in connection with the
    conveyance authorized by this section, if the excess costs were
    incurred as a result of a request by the Authority. In this paragraph,
    the term ``excess costs'' means costs in excess of those costs
    considered reasonable and necessary by the Secretary to comply with
    existing law to make the conveyance authorized by subsection (a).
        (2) Section 2695(c) of title 10, United States Code, shall apply to
    any amount received by the Secretary under this subsection.
        (d) Description of Property.--The exact acreage and legal
    description of the segment of pipeline conveyed under subsection (a),
    and of any easements or rights-of-way conveyed under subsection (b),
    shall be determined by surveys and other means satisfactory to the
    Secretary. The cost of any survey or other services performed at the
    direction of the Secretary under the preceding sentence shall be borne
    by the Authority.
        (e) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyances
    under this section as the Secretary considers appropriate to protect
    the interests of the United States.
    SEC. 2855. LAND CONVEYANCE, PETROLEUM TERMINAL SERVING FORMER LORING
    AIR FORCE BASE AND BANGOR AIR NATIONAL GUARD BASE, MAINE.
        (a) Conveyance Authorized.--(1) The Secretary of the Air Force may
    convey to the Maine Port Authority of the State of Maine (in this
    section referred to as the ``Authority'') all right, title, and
    interest of the United States in and to the Petroleum Terminal (POL) at
    Mack Point, Searsport, Maine, which served former Loring Air Force Base
    and Bangor Air National Guard Base, Maine.
        (2) The conveyance under paragraph (1) may include the following:
            (A) A parcel of real property, including any improvements
        thereon, consisting of approximately 20 acres and comprising a
        portion of the Petroleum Terminal.
            (B) Any additional fuel tanks, other improvements, and
        equipment located on the 43-acre parcel of property adjacent to the
        property described in subparagraph (A), and leased by the Secretary
        as of the date of the enactment of this Act, which constitutes the
        remaining portion of the Petroleum Terminal.
        (b) Condition of Conveyance.--The Secretary may not make the
    conveyance under subsection (a) unless the Authority agrees to utilize
    the property to be conveyed under that subsection solely for economic
    development purposes.
        (c) Consideration.--(1) As consideration for the conveyance under
    subsection (a), the Authority shall lease to the Secretary
    approximately one acre of the real property conveyed under that
    subsection, together with any improvements thereon, that constitutes
    the Aerospace Fuels Laboratory (also known as Building 14).
        (2) The real property leased under this subsection shall include
    the parking lot, outbuildings, and other improvements associated with
    the Aerospace Fuels Laboratory and such easements of ingress and egress
    to the real property, including easements for utilities, as are
    required for the operations of the Aerospace Fuels Laboratory.
        (3) As part of the lease of real property under this subsection,
    the Authority shall maintain around the real property for the term of
    the lease a zone, not less than 75 feet in depth, free of improvements
    or encumbrances.
        (4) The lease under this subsection shall be without cost to the
    United States.
        (5) The term of the lease under this subsection may not exceed 25
    years. If operations at the Aerospace Fuels Laboratory cease before the
    expiration of the term of the lease otherwise provided for under this
    subsection, the lease shall be deemed to have expired upon the
    cessation of such operations.
        (d) Conveyance Contingent on Expiration of Lease of Fuel Tanks.--
    The Secretary may not make the conveyance under subsection (a) until
    the expiration of the lease referred to in paragraph (2)(B) of that
    subsection.
        (e) Reimbursement for Costs of Conveyance.--(1) The Authority shall
    reimburse the Secretary for the excess costs incurred by the Secretary
    for any environmental assessment, study, or analysis, or for any other
    excess costs incurred by the Secretary, in connection with the
    conveyance authorized by this section, if the excess costs were
    incurred as a result of a request by the Authority. In this paragraph,
    the term ``excess costs'' means costs in excess of those costs
    considered reasonable and necessary by the Secretary to comply with
    existing law to make the conveyance authorized by subsection (a).
        (2) Section 2695(c) of title 10, United States Code, shall apply to
    any amount received by the Secretary under this subsection.
        (f) Description of Property.--The exact acreage and legal
    description of the real property conveyed under subsection (a) shall be
    determined by a survey satisfactory to the Secretary. The cost of the
    survey shall be borne by the Authority.
        (g) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyance
    under subsection (a), and the lease under subsection (c), as the
    Secretary considers appropriate to protect the interests of the United
    States.
    SEC. 2856. LAND CONVEYANCES, CERTAIN FORMER MINUTEMAN III ICBM
    FACILITIES IN NORTH DAKOTA.
        (a) Conveyances Authorized.--(1) The Secretary of the Air Force may
    convey, without consideration, to the State Historical Society of North
    Dakota (in this section referred to as the ``Historical Society'') all
    right, title, and interest of the United States in and to parcels of
    real property, together with any improvements thereon, of the Minuteman
    III ICBM facilities of the former 321st Missile Group at Grand Forks
    Air Force Base, North Dakota, as follows:
            (A) The parcel consisting of the launch facility designated
        ``November-33''.
            (B) The parcel consisting of the missile alert facility and
        launch control center designated ``Oscar-O''.
        (2) The purpose of the conveyance of the facilities is to provide
    for the establishment of an historical site allowing for the
    preservation, protection, and interpretation of the facilities.
        (b) Consultation.--The Secretary shall consult with the Secretary
    of State and the Secretary of Defense in order to ensure that the
    conveyances required by subsection (a) are carried out in accordance
    with applicable treaties.
        (c) Historical Site.--The Secretary may, in cooperation with the
    Historical Society, enter into one or more cooperative agreements with
    appropriate public or private entities or individuals in order to
    provide for the establishment and maintenance of the historic site
    referred to in subsection (a)(2).
        (d) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsection (a)
    shall be determined by survey satisfactory to the Secretary. The cost
    of the survey shall be borne by the Secretary.
        (e) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyances
    under subsection (a) as the Secretary considers appropriate to protect
    the interests of the United States.
    SEC. 2857. LAND CONVEYANCES, CHARLESTON AIR FORCE BASE, SOUTH CAROLINA.
        (a) Conveyance to State of South Carolina Authorized.--The
    Secretary of the Air Force may convey, without consideration, to the
    State of South Carolina (in this section referred to as the ``State''),
    all right, title, and interest of the United States in and to a portion
    (as determined under subsection (c)) of the real property, including
    any improvements thereon, consisting of approximately 24 acres at
    Charleston Air Force Base, South Carolina, and comprising the Air Force
    Family Housing Annex. The purpose of the conveyance is to facilitate
    the Remount Road Project.
        (b) Conveyance to City of North Charleston Authorized.--The
    Secretary may convey, without consideration, to the City of North
    Charleston, South Carolina (in this section referred to as the
    ``City''), all right, title, and interest of the United States in and
    to a portion (as determined under subsection (c)) of the real property,
    including any improvements thereon, referred to in subsection (a). The
    purpose of the conveyance is to permit the use of the property by the
    City for municipal purposes.
        (c) Determination of Portions of Property To Be Conveyed.--(1)
    Subject to paragraph (2), the Secretary, the State, and the City shall
    jointly determine the portion of the property referred to in subsection
    (a) that is to be conveyed to the State under subsection (a) and the
    portion of the property that is to be conveyed to the City under
    subsection (b).
        (2) In determining under paragraph (1) the portions of property to
    be conveyed under this section, the portion to be conveyed to the State
    shall be the minimum portion of the property required by the State for
    the purpose specified in subsection (a), and the portion to be conveyed
    to the City shall be the balance of the property.
        (d) Limitation on Conveyances.--The Secretary may not carry out the
    conveyance of property authorized by subsection (a) or (b) until the
    completion of an assessment of environmental contamination of the
    property authorized to be conveyed by such subsection for purposes of
    determining responsibility for environmental remediation of such
    property.
        (e) Description of Property.--The exact acreage and legal
    description of the real property to be conveyed under subsections (a)
    and (b) shall be determined by surveys satisfactory to the Secretary.
    The cost of the survey for the property to be conveyed under subsection
    (a) shall be borne by the State, and the cost of the survey for the
    property to be conveyed under subsection (b) shall be borne by the
    City.
        (f) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the conveyances
    under subsections (a) and (b) as the Secretary considers appropriate to
    protect the interests of the United States.
    SEC. 2858. TRANSFER OF JURISDICTION, MUKILTEO TANK FARM, EVERETT,
    WASHINGTON.
        (a) Transfer Authorized.--The Secretary of the Air Force shall
    transfer, without reimbursement, to the Secretary of Commerce
    administrative jurisdiction over a parcel of real property, including
    improvements thereon, consisting of approximately 1.1 acres located at
    the Mukilteo Tank Farm in Everett, Washington, and containing the
    Mukilteo Research Center facility of the National Marine Fisheries
    Service.
        (b) Time for Conveyance.--The Secretary of the Air Force shall make
    the transfer under subsection (a) at the same time that the Secretary
    makes the conveyance authorized by section 2866 of the Military
    Construction Authorization Act for Fiscal Year 2001 (division B of the
    Spence Act; 114 Stat. 1654A-436).
        (c) Exchange.--With the consent of the Port Authority for Everett,
    Washington, the Secretary of Commerce may exchange with the Port
    Authority all or any portion of the property transferred under
    subsection (a) for a parcel of real property of equal area at the
    Mukilteo Tank Farm that is owned by the Port Authority.
        (d) Administration.--The Secretary of Commerce shall administer the
    property transferred under subsection (a) or received under subsection
    (c) through the Administrator of the National Oceanic and Atmospheric
    Administration as part of the Administration. The Administrator shall
    use the property as the location of a research facility, and may
    construct a new facility on the property for such research purposes as
    the Administrator considers appropriate.
        (e) Effect of Failure To Utilize Transferred Property.--(1) If,
    after the 12-year period beginning on the date of the enactment of this
    Act, the Administrator is not using any portion of the property
    transferred under subsection (a) or received under subsection (c) for
    the purpose specified in subsection (d), the Administrator shall
    convey, without consideration, to the Port Authority for Everett,
    Washington, all right, title, and interest in and to such portion of
    the real property, including improvements thereon.
        (2) The Port Authority shall use any real property conveyed to the
    Port Authority under this subsection for development and operation of a
    port facility and for other public purposes.
        (f) Legal Description.--The exact acreage and legal description of
    the real property to be transferred under subsection (a) shall be
    determined by a survey satisfactory to the Secretary of the Air Force.
    The cost of the survey shall be borne by the Secretary of Commerce.
        (g) Additional Terms and Conditions.--The Secretary of the Air
    Force may require such additional terms and conditions in connection
    with the transfer under subsection (a) as the Secretary of the Air
    Force considers appropriate to protect the interests of the United
    States.
        (h) Conforming Amendment.--Section 2866(a) of the Military
    Construction Authorization Act for Fiscal Year 2001 (division B of the
    Spence Act; 114 Stat. 1654A-436) is amended by striking ``22 acres''
    and inserting ``20.9 acres''.

                           Subtitle E--Other Matters

    SEC. 2861. MANAGEMENT OF THE PRESIDIO OF SAN FRANCISCO.
        (a) Authority To Lease Certain Housing Units for Use as Army
    Housing.--Title I of division I of the Omnibus Parks and Public Lands
    Management Act of 1996 (Public Law 104-333; 16 U.S.C. 460bb note) is
    amended by adding at the end the following new section:
    ``SEC. 107. CONDITIONAL AUTHORITY TO LEASE CERTAIN HOUSING UNITS WITHIN
    THE PRESIDIO.
        ``(a) Availability of Housing Units for Long-Term Army Lease.--
    Subject to subsection (c), the Trust shall make available for lease, to
    those persons designated by the Secretary of the Army and for such
    length of time as requested by the Secretary of the Army, 22 housing
    units located within the Presidio that are under the administrative
    jurisdiction of the Trust and specified in the agreement between the
    Trust and the Secretary of the Army in existence as of the date of the
    enactment of this section.
        ``(b) Lease Amount.--The monthly amount charged by the Trust for
    the lease of a housing unit under this section shall be equivalent to
    the monthly rate of the basic allowance for housing that the occupant
    of the housing unit is entitled to receive under section 403 of title
    37, United States Code.
        ``(c) Condition on Continued Availability of Housing Units.--
    Effective after the end of the four-year period beginning on the date
    of the enactment of this section, the Trust shall have no obligation to
    make housing units available under subsection (a) unless, during that
    four-year period, the Secretary of the Treasury purchases new
    obligations of at least $80,000,000 issued by the Trust under section
    104(d)(2). In the event that this condition is not satisfied, the
    existing agreement referred to in subsection (a) shall be renewed on
    the same terms and conditions for an additional five years.''.
        (b) Increased Borrowing Authority and Technical Corrections.--
    Paragraphs (2) and (3) of section 104(d) of title I of division I of
    the Omnibus Parks and Public Lands Management Act of 1996, as amended
    by section 334 of appendix C of Public Law 106-113 (113 Stat. 1501A-
    198) and amended and redesignated by section 101(13) of Public Law 106-
    176 (114 Stat. 25), are amended--
            (1) in paragraph (2), by striking ``including a review of the
        creditworthiness of the loan and establishment of a repayment
        schedule,'' the second place it appears; and
            (2) in paragraph (3)--
                (A) by striking ``$50,000,000'' and inserting
            ``$150,000,000''; and
                (B) by striking ``paragraph (3) of''.
    SEC. 2862. TRANSFER OF JURISDICTION FOR DEVELOPMENT OF AIR FORCE
    MORALE, WELFARE, AND RECREATION FACILITY, PARK CITY, UTAH.
        (a) Transfer Authorized.--(1) The Secretary of the Interior may
    transfer, without reimbursement, to the administrative jurisdiction of
    the Secretary of the Air Force a parcel of real property in Park City,
    Utah, including any improvements thereon, that consists of
    approximately 35 acres, is located on the north side of State highway
    248 in township 2 south, range 4 east, Salt Lake meridian, and is
    designated as parcel 3 by the Bureau of Land Management. The real
    property to be transferred under this paragraph does not include any
    lands located on the south side of State highway 248.
        (2) The transfer shall be subject to existing rights, except that
    the Secretary of the Interior shall terminate any lease with respect to
    the parcel issued under the Act of June 14, 1926 (commonly known as the
    Recreation and Public Purposes Act; 43 U.S.C. 689 et seq.), and still
    in effect as of the date of the enactment of this Act.
        (b) Use of Transferred Land.--(1) The Secretary of the Air Force
    may use the real property transferred under subsection (a) as the
    location for an Air Force morale, welfare, and recreation facility to
    be developed using nonappropriated funds.
        (2) The Secretary of the Air Force may return the transferred
    property (or property acquired in exchange for the transferred property
    under subsection (c)) to the administrative jurisdiction of the
    Secretary of the Interior at any time upon certifying that development
    of the morale, welfare, and recreation facility would not be in the
    best interests of the Government.
        (c) Subsequent Conveyance Authority.--(1) In lieu of developing the
    Air Force morale, welfare, and recreation facility on the real property
    transferred under subsection (a), the Secretary of the Air Force may
    convey or lease the property to the State of Utah, a local government,
    or a private entity in exchange for other property to be used as the
    site of the facility.
        (2) The values of the properties exchanged by the Secretary under
    this subsection either shall be equal, or if they are not equal, the
    values shall be equalized by the payment of money to the grantor or to
    the Secretary as the circumstances require. The conveyance or lease
    shall be on such other terms as the Secretary of the Air Force
    considers to be advantageous to the development of the facility.
        (d) Alternative Development Authority.--The Secretary of the Air
    Force may lease the real property transferred under subsection (a), or
    any property acquired pursuant to subsection (c), to another party and
    may enter into a contract with the party for the design, construction,
    and operation of the Air Force morale, welfare, and recreation
    facility. The Secretary of the Air Force may authorize the contractor
    to operate the facility as both a military and a commercial operation
    if the Secretary determines that such an authorization is a necessary
    incentive for the contractor to agree to design, construct, and operate
    the facility.
        (e) Legal Description.--The exact acreage and legal description of
    the real property to be transferred under subsection (a) shall be
    determined by a survey. The cost of the survey shall be borne by the
    Secretary of the Air Force.
    SEC. 2863. ALTERNATE SITE FOR UNITED STATES AIR FORCE MEMORIAL,
    PRESERVATION OF OPEN SPACE ON ARLINGTON RIDGE TRACT, AND RELATED LAND
    TRANSFER AT ARLINGTON NATIONAL CEMETERY, VIRGINIA.
        (a) Definitions.--In this section:
            (1) The term ``Arlington Naval Annex'' means the parcel of
        Federal land located in Arlington County, Virginia, that is subject
        to transfer to the administrative jurisdiction of the Secretary of
        the Army under section 2881 of the Military Construction
        Authorization Act for Fiscal Year 2000 (division B of Public Law
        106-65; 113 Stat. 879).
            (2) The term ``Foundation'' means the Air Force Memorial
        Foundation, which was authorized in Public Law 103-163 (107 Stat.
        1973; 40 U.S.C. 1003 note) to establish a memorial in the District
        of Columbia or its environs to honor the men and women who have
        served in the United States Air Force and its predecessors.
            (3) The term ``Air Force Memorial'' means the United States Air
        Force Memorial to be established by the Foundation.
            (4) The term ``Arlington Ridge tract'' means the parcel of
        Federal land in Arlington County, Virginia, known as the Nevius
        Tract and transferred to the Department of the Interior in 1953,
        that is bounded generally by--
                (A) Arlington Boulevard (United States Route 50) to the
            north;
                (B) Jefferson Davis Highway (Virginia Route 110) to the
            east;
                (C) Marshall Drive to the south; and
                (D) North Meade Street to the west.
            (5) The term ``Section 29'' means a parcel of Federal land in
        Arlington County, Virginia, that is currently administered by the
        Secretary of the Interior within the boundaries of Arlington
        National Cemetery and is identified as ``Section 29''.
        (b) Use of Arlington Naval Annex as Site for Air Force Memorial.--
            (1) Availability of site.--The Secretary of Defense shall make
        available to the Foundation, without reimbursement, up to three
        acres of the Arlington Naval Annex, which the Foundation shall use
        as the location for the Air Force Memorial in lieu of any
        previously approved location for the Air Force Memorial. The land
        made available shall include the promontory adjacent to, and the
        land underlying, Wing 8 of Federal Office Building #2 in the
        northeast quadrant of the Arlington Naval Annex.
            (2) Exception.--The requirement to use the land made available
        under paragraph (1) as the location for the Air Force Memorial, and
        the prohibition on the use of any previously approved location,
        shall not apply if the Secretary of Defense determines that it is
        physically impracticable to construct the Air Force Memorial on
        such land on account of the geological nature of the land.
            (3) Relation to other transfer authority.--Not later than six
        months after the date of the enactment of this Act, the Secretary
        of Defense shall transfer to the Secretary of the Army
        administrative jurisdiction over the Arlington Naval Annex site
        made available under this subsection for construction of the Air
        Force Memorial. Nothing in this subsection alters the deadline for
        transfer of the remainder of the Arlington Naval Annex to the
        Secretary of the Army and remediation of the transferred land for
        use as part of Arlington National Cemetery, as required by section
        2881 of the Military Construction Authorization Act for Fiscal Year
        2000.
        (c) Site Preparation.--
            (1) Preparation for construction.--Upon receipt of notification
        from the Foundation that the Foundation has sufficient funds to
        commence construction of the Air Force Memorial, the Secretary of
        Defense, in coordination with the Foundation, shall remove Wing 8
        of Federal Office Building #2 at the Arlington Naval Annex, as well
        as its associated outbuilding and parking lot, and prepare the land
        made available under subsection (b) for construction of the Air
        Force Memorial. In addition to demolition and removal, such site
        preparation work may include environmental remediation,
        installation of water, sewer, telephone, electrical, and storm
        water management infrastructure necessary for the memorial,
        installation of sidewalks consistent with the design of the
        memorial compliant with the requirements of the Americans With
        Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), and the
        placement of screening berms and mature evergreen trees between
        Federal Office Building #2 and the memorial.
            (2) Completion.--Not later than two years after the date on
        which the Foundation provides the notification referred to in
        paragraph (1), the Secretary of Defense shall complete the
        demolition and removal of the structures and such site preparation
        work as the Secretary agrees to undertake under this subsection.
            (3) Funding source.--The Secretary of Defense shall use amounts
        appropriated for operation and maintenance to carry out the
        demolition and removal work and site preparation described in
        paragraph (1).
            (4) Assistance for displaced agency.--The Secretary of the Army
        shall serve as the Executive Agent for the Ballistic Missile
        Defense Organization in securing suitable sites, including, if
        necessary, sites not currently owned by the United States, to
        replace offices lost as a result of the demolition of Wing 8 of
        Federal Office Building #2 at the Arlington Naval Annex.
        (d) Construction of Air Force Memorial.--
            (1) Commencement.--Upon the demolition and removal of the
        structures required to be removed under subsection (c)(1), the
        Secretary of Defense shall permit the Foundation to commence
        construction of the Air Force Memorial on the Arlington Naval Annex
        site made available under subsection (b).
            (2) Oversight.--The Secretary of Defense shall have exclusive
        authority in all matters relating to approval of the siting and
        design of the Air Force Memorial on the Arlington Naval Annex site,
        and the siting, design, and construction of the memorial on such
        site shall not be subject to the requirements of the Commemorative
        Works Act (40 U.S.C. 1001 et seq.).
            (3) Effect of failure to commence construction.--If, within
        five years after the date of the enactment of this Act, the
        Foundation has not commenced construction of the Air Force Memorial
        on the Arlington Naval Annex site made available under subsection
        (b), the Secretary of Defense may revoke the authority of the
        Foundation to use the site as the location of the memorial.
        (e) Access and Management of Air Force Memorial.--The Secretary of
    the Army may enter into a cooperative agreement with the Foundation to
    provide for management, maintenance, and repair of the Air Force
    Memorial constructed on the Arlington Naval Annex site made available
    under subsection (b) and to guarantee public access to the memorial.
        (f) Limitation on Use of Arlington Naval Annex as Site for Other
    Memorials or Museums.--Section 2881(b) of the Military Construction
    Authorization Act for Fiscal Year 2000 (division B of Public Law 106-
    65; 113 Stat. 879) is amended by striking paragraph (2) and inserting
    the following new paragraph (2):
        ``(2) The Secretary of Defense shall reserve not more than four
    acres of the Navy Annex property south of the existing Columbia Pike as
    a site for--
            ``(A) a National Military Museum, if such site is recommended
        for such purpose by the Commission on the National Military Museum
        established under section 2901 and the Secretary of Defense
        considers such site compatible with Arlington National Cemetery and
        the Air Force Memorial; or
            ``(B) such other memorials or museums that the Secretary of
        Defense considers compatible with Arlington National Cemetery and
        the Air Force Memorial.''.
        (g) Preservation of Arlington Ridge Tract.--
            (1) General rule.--After the date of the enactment of this Act,
        no additional structure or memorials shall be constructed on the
        Arlington Ridge tract.
            (2) Option for future burials.--Paragraph (1) does not prohibit
        the eventual use of a portion of the Arlington Ridge tract as a
        location for in-ground burial sites and columbarium for the burial
        of individuals eligible for burial in Arlington National Cemetery,
        if the development of such sites is specifically authorized in a
        law enacted after the date of the enactment of this Act.
        (h) Land Transfer, Section 29.--
            (1) Transfer required.--Not later than 30 days after the date
        of the enactment of this Act, the Secretary of the Interior shall
        transfer, without reimbursement, to the Secretary of the Army
        administrative jurisdiction over that portion of Section 29
        designated as the interment zone and consisting of approximately 12
        acres. The Secretary of the Interior shall modify the boundaries of
        the George Washington Memorial Parkway as may be necessary to
        reflect the land transfer required by this subsection.
            (2) Use of transferred land.--The Secretary of the Army shall
        use the transferred property for the development of in-ground
        burial sites and columbarium that are designed to meet the contours
        of Section 29.
            (3) Management of remainder.--The Secretary of the Interior
        shall manage that portion of Section 29 not transferred under this
        subsection in perpetuity to provide a natural setting and visual
        buffer for Arlington House, the Robert E. Lee Memorial.
            (4) Repeal of obsolete law.--Section 2821(a) of the Military
        Construction Authorization Act for Fiscal Year 1997 (division B of
        Public Law 104-201; 110 Stat. 2791) is repealed.
    SEC. 2864. ESTABLISHMENT OF MEMORIAL TO VICTIMS OF TERRORIST ATTACK ON
    PENTAGON RESERVATION AND AUTHORITY TO ACCEPT MONETARY CONTRIBUTIONS FOR
    MEMORIAL AND REPAIR OF PENTAGON.
        (a) Memorial Authorized.--The Secretary of Defense may establish a
    memorial at the Pentagon Reservation dedicated to the victims of the
    terrorist attack on the Pentagon that occurred on September 11, 2001.
    The Secretary shall use necessary amounts in the Pentagon Reservation
    Maintenance Revolving Fund established by section 2674(e) of title 10,
    United States Code, including amounts deposited in the Fund under
    subsection (c), to plan, design, construct, and maintain the memorial.
        (b) Acceptance of Contributions.--The Secretary of Defense may
    accept monetary contributions made for the purpose of assisting in--
            (1) the establishment of the memorial to the victims of the
        terrorist attack; and
            (2) the repair of the damage caused to the Pentagon Reservation
        by the terrorist attack.
        (c) Deposit of Contributions.--The Secretary of Defense shall
    deposit contributions accepted under subsection (b) in the Pentagon
    Reservation Maintenance Revolving Fund. The contributions shall be
    available for expenditure only for the purposes specified in subsection
    (b).
    SEC. 2865. REPEAL OF LIMITATION ON COST OF RENOVATION OF PENTAGON
    RESERVATION.
        Section 2864 of the Military Construction Authorization Act for
    Fiscal Year 1997 (division B of Public Law 104-201; 110 Stat. 2806) is
    repealed.
    SEC. 2866. DEVELOPMENT OF UNITED STATES ARMY HERITAGE AND EDUCATION
    CENTER AT CARLISLE BARRACKS, PENNSYLVANIA.
        (a) Authority To Enter into Agreement.--(1) The Secretary of the
    Army may enter into an agreement with the Military Heritage Foundation,
    a nonprofit organization, for the design, construction, and operation
    of a facility for the United States Army Heritage and Education Center
    at Carlisle Barracks, Pennsylvania (in this section referred to as the
    ``facility'').
        (2) The facility is to be used for curation and storage of
    artifacts, research facilities, classrooms, and offices, and for
    education and other activities, agreed to by the Secretary, relating to
    the heritage of the Army. The facility may also be used to support such
    education and training as the Secretary considers appropriate.
        (b) Design and Construction.--The design of the facility shall be
    subject to the approval of the Secretary. At the election of the
    Secretary, the Secretary may--
            (1) accept funds from the Military Heritage Foundation for the
        design and construction of the facility; or
            (2) permit the Military Heritage Foundation to contract for the
        design and construction of the facility.
        (c) Acceptance of Facility.--(1) Upon satisfactory completion, as
    determined by the Secretary, of the facility, and upon the satisfaction
    of any and all financial obligations incident thereto by the Military
    Heritage Foundation, the Secretary shall accept the facility from the
    Military Heritage Foundation, and all right, title, and interest in and
    to the facility shall vest in the United States.
        (2) Upon becoming property of the United States, the facility shall
    be under the jurisdiction of the Secretary.
        (d) Use of Certain Gifts.--(1) Under regulations prescribed by the
    Secretary, the Commandant of the Army War College may, without regard
    to section 2601 of title 10, United States Code, accept, hold,
    administer, invest, and spend any gift, devise, or bequest of personnel
    property of a value of $250,000 or less made to the United States if
    such gift, devise, or bequest is for the benefit of the United States
    Army Heritage and Education Center.
        (2) The Secretary may pay or authorize the payment of any
    reasonable and necessary expense in connection with the conveyance or
    transfer of a gift, devise, or bequest under this subsection.
        (e) Additional Terms and Conditions.--The Secretary may require
    such additional terms and conditions in connection with the agreement
    authorized to be entered into by subsection (a) as the Secretary
    considers appropriate to protect the interests of the United States.
    SEC. 2867. EFFECT OF LIMITATION ON CONSTRUCTION OF ROADS OR HIGHWAYS,
    MARINE CORPS BASE, CAMP PENDLETON, CALIFORNIA.
        Section 2851(a) of the Military Construction Authorization Act for
    Fiscal Year 1999 (division B of Public Law 105-261; 112 Stat. 2219) is
    amended in the first sentence by inserting after ``maintain'' the
    following: ``, notwithstanding any provision of State law to the
    contrary,''.
    SEC. 2868. ESTABLISHMENT OF WORLD WAR II MEMORIAL AT ADDITIONAL
    LOCATION ON GUAM.
        Section 2886 of the Military Construction Authorization Act for
    Fiscal Year 2001 (division B of the Spence Act; 114 Stat. 1654A-441) is
    amended--
            (1) in subsection (a), by inserting ``, and on Federal lands
        near Yigo,'' after ``Fena Caves'';
            (2) in the heading of subsection (b), by striking ``Memorial''
        and inserting ``Memorials''; and
            (3) in subsections (b) and (c), by striking ``memorial'' each
        place it appears and inserting ``memorials''.
    SEC. 2869. DEMONSTRATION PROJECT FOR PURCHASE OF FIRE, SECURITY,
    POLICE, PUBLIC WORKS, AND UTILITY SERVICES FROM LOCAL GOVERNMENT
    AGENCIES.
        (a) Extension.--Subsection (c) of section 816 of the National
    Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
    Stat. 2820), as added by section 2873 of the Strom Thurmond National
    Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112
    Stat. 2225), is amended by striking ``September 30, 2001.'' and
    inserting ``January 31, 2002, with regard to fire-fighting and police
    services, and September 30, 2003, with regard to other services
    described in subsection (a).''.
        (b) Conforming Amendment.--Section 1206 of the Supplemental
    Appropriations Act, 2001 (Public Law 107-20; 115 Stat. 161), is
    repealed.
    SEC. 2870. REPORT ON FUTURE LAND NEEDS OF UNITED STATES MILITARY
    ACADEMY, NEW YORK, AND ADJACENT COMMUNITY.
        (a) Report Required.--Not later than February 1, 2002, the
    Secretary of the Army shall submit to Congress a report evaluating the
    future needs of the United States Military Academy for lands suitable
    for use for military training and the feasibility of making unneeded
    lands available to the Village of Highland Falls, New York, through fee
    simple conveyance, long-term lease under section 2667 of title 10,
    United States Code, or other means.
        (b) Consultation.--The Secretary shall prepare the report in
    consultation with appropriate officials of the Village of Highland
    Falls.
    SEC. 2871. NAMING OF PATRICIA C. LAMAR ARMY NATIONAL GUARD READINESS
    CENTER, OXFORD, MISSISSIPPI.
        The Oxford Army National Guard Readiness Center, Oxford,
    Mississippi, shall be known and designated as the ``Patricia C. Lamar
    Army National Guard Readiness Center''. Any reference to that readiness
    center in any law, regulation, map, document, record, or other paper of
    the United States shall be considered to be a reference to the Patricia
    C. Lamar Army National Guard Readiness Center.

                TITLE XXIX--FORT IRWIN MILITARY LAND WITHDRAWAL

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

    SEC. 2901. SHORT TITLE.

        This title may be cited as the ``Fort Irwin Military Land
    Withdrawal Act of 2001''.
    SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS FOR NATIONAL TRAINING
    CENTER.
        (a) Withdrawal.--Subject to valid existing rights and except as
    otherwise provided in this title, all public lands and interests in
    lands described in subsection (c) are hereby withdrawn from all forms
    of appropriation under the general land laws, including the mining laws
    and mineral and geothermal leasing laws, and jurisdiction over such
    lands and interests in lands withdrawn and reserved by this title is
    hereby transferred to the Secretary of the Army.
        (b) Reservation.--The lands withdrawn under subsection (a) are
    reserved for use by the Secretary of the Army for the following
    purposes:
            (1) The conduct of combined arms military training at the
        National Training Center.
            (2) The development and testing of military equipment at the
        National Training Center.
            (3) Other defense-related purposes consistent with the purposes
        specified in paragraphs (1) and (2).
            (4) Conservation and related research purposes.
        (c) Land Description.--The public lands and interests in lands
    withdrawn and reserved by this section comprise approximately 110,000
    acres in San Bernardino County, California, as generally depicted as
    ``Proposed Withdrawal Land'' on the map entitled ``National Training
    Center--Proposed Withdrawal of Public Lands for Training Purposes'',
    dated September 21, 2000, and filed in accordance with section 2903.
        (d) Changes in Use.--The Secretary of the Army shall consult with
    the Secretary of the Interior before using the lands withdrawn and
    reserved by this section for any purpose other than those purposes
    identified in subsection (b).
        (e) Indian Tribes.--Nothing in this title shall be construed as
    altering any rights reserved for tribal use by treaty or Federal law.
    The Secretary of the Army shall consult with federally recognized
    Indian tribes in the vicinity of the lands withdrawn under subsection
    (a) before taking action affecting rights or cultural resources
    protected by treaty or Federal law.

    SEC. 2903. MAP AND LEGAL DESCRIPTION.

        (a) Preparation of Map and Legal Description.--As soon as
    practicable after the date of the enactment of this Act, the Secretary
    of the Interior shall--
            (1) publish in the Federal Register a notice containing the
        legal description of the lands withdrawn and reserved by this
        title; and
            (2) file a map and legal description of the lands withdrawn and
        reserved by this title with the Committee on Energy and Natural
        Resources of the Senate and the Committee on Resources of the House
        of Representatives.
        (b) Legal Effect.--The map and legal description shall have the
    same force and effect as if included in this title, except that the
    Secretary of the Interior may correct clerical and typographical errors
    in the map and legal description.
        (c) Availability.--Copies of the map and the legal description
    shall be available for public inspection in the following offices:
            (1) The offices of the California State Director, California
        Desert District Office, and Riverside and Barstow Field Offices of
        the Bureau of Land Management.
            (2) The Office of the Commander, National Training Center and
        Fort Irwin.
        (d) Costs.--The Secretary of the Army shall reimburse the Secretary
    of the Interior for the costs incurred by the Secretary of the Interior
    in implementing this section.
    SEC. 2904. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.
        (a) General Management Authority.--During the period of the
    withdrawal and reservation made by this title, the Secretary of the
    Army shall manage the lands withdrawn and reserved by this title for
    the purposes specified in section 2902.
        (b) Temporary Prohibition on Certain Use.--Military use of the
    lands withdrawn and reserved by this title that result in ground
    disturbance, as determined by the Secretary of the Army and the
    Secretary of the Interior, are prohibited until the Secretary of the
    Army and the Secretary of the Interior certify to Congress that there
    has been full compliance with respect to such lands with the
    appropriate provisions of this title, the Endangered Species Act of
    1973 (16 U.S.C. 1531 et seq.), the National Environmental Policy Act of
    1969 (42 U.S.C. 4321 et seq.), and other applicable laws.
        (c) Access Restrictions.--
            (1) In general.--If the Secretary of the Army determines that
        military operations, public safety, or national security require
        the closure to the public of any road, trail, or other portion of
        the lands withdrawn and reserved by this title, the Secretary may
        take such action as the Secretary determines necessary or desirable
        to effect and maintain such closure.
            (2) Limitation.--Any closure under paragraph (1) shall be
        limited to the minimum areas and periods that the Secretary of the
        Army determines are required for the purposes specified in such
        paragraph.
            (3) Notice.--Immediately preceding and during any closure under
        paragraph (1), the Secretary of the Army shall post appropriate
        warning notices and take other steps, as necessary, to notify the
        public of the closure.
        (d) Integrated Natural Resources Management Plan.--The Secretary of
    the Army shall prepare and implement, in accordance with title I of the
    Sikes Act (16 U.S.C. 670 et seq.), an integrated natural resources
    management plan for the lands withdrawn and reserved by this title. In
    addition to the elements required under the Sikes Act, the integrated
    natural resources management plan shall include the following:
            (1) A requirement that any hunting, fishing, and trapping on
        the lands withdrawn and reserved by this title be conducted in
        accordance with section 2671 of title 10, United States Code.
            (2) A requirement that the Secretary of the Army take necessary
        actions to prevent, suppress, and manage brush and range fires
        occurring within the boundaries of Fort Irwin and brush and range
        fires occurring outside the boundaries of Fort Irwin that result
        from military activities at Fort Irwin.
        (e) Firefighting.--Notwithstanding section 2465 of title 10, United
    States Code, the Secretary of the Army may obligate funds appropriated
    or otherwise available to the Secretary of the Army to enter into a
    memorandum of understanding, cooperative agreement, or contract for
    fire-fighting services to carry out the requirements of subsection
    (d)(2). The Secretary of the Army shall reimburse the Secretary of the
    Interior for costs incurred by the Secretary of the Interior to assist
    in carrying out the requirements of such subsection.
        (f) Consultation With National Aeronautics and Space
    Administration.--In preparing and implementing any plan, report,
    assessment, survey, opinion, or impact statement regarding the lands
    withdrawn and reserved by this title, the Secretary of the Army shall
    consult with the Administrator of the National Aeronautics and Space
    Administration whenever proposed Army actions have the potential to
    affect the operations or the environmental management of the Goldstone
    Deep Space Communications Complex. The requirement for consultation
    shall apply, at a minimum, to the following:
            (1) Plans for military training, military equipment testing, or
        related activities that have the potential of impacting
        communications between Goldstone Deep Space Communications Complex
        and space flight missions or other transmission or receipt of
        signals from outer space by the Goldstone Deep Space Communications
        Complex.
            (2) The integrated natural resources management plan required
        by subsection (d).
            (3) The West Mojave Coordinated Management Plan referred to in
        section 2907.
            (4) Any document prepared in compliance with the Endangered
        Species Act of 1973, the National Environmental Policy Act of 1969,
        and other laws applicable to the lands withdrawn and reserved by
        this title.
        (g) Use of Mineral Materials.--Notwithstanding any other provision
    of this title or the Act of July 31, 1947 (commonly known as the
    Materials Act of 1947; 30 U.S.C. 601 et seq.), the Secretary of the
    Army may use sand, gravel, or similar mineral material resources of the
    type subject to disposition under such Act from the lands withdrawn and
    reserved by this title if the use of such resources is required for
    construction needs of the National Training Center.

    SEC. 2905. WATER RIGHTS.

        (a) No Reserved Water Right Established.--Nothing in this title
    shall be construed--
            (1) to establish a reservation in favor of the United States
        with respect to any water or water right on the lands withdrawn and
        reserved by this title; or
            (2) to authorize the appropriation of water on such lands by
        the United States after the date of the enactment of this Act,
        except in accordance with applicable State law.
        (b) Effect on Previously Acquired or Reserved Water Rights.--This
    section shall not be construed to affect any water rights acquired or
    reserved by the United States before the date of the enactment of this
    Act, and the Secretary of the Army may exercise any such previously
    acquired or reserved water rights.
    SEC. 2906. ENVIRONMENTAL COMPLIANCE AND ENVIRONMENTAL RESPONSE
    REQUIREMENTS.
        (a) Agreements Concerning the Environment and Public Health.--The
    Secretary of the Army and the Secretary of the Interior shall enter
    into such agreements as are necessary, appropriate, and in the public
    interest to carry out the purposes of this title.
        (b) Relation to Other Environmental Laws.--Nothing in this title
    shall relieve, and no action taken under this title may relieve, the
    Secretary of the Army or the Secretary of the Interior, or any other
    person from any liability or other obligation under the Comprehensive
    Environmental Response, Compensation, and Liability Act of 1980 (42
    U.S.C. 9601 et seq.), the Resource Conservation and Recovery Act of
    1976 (42 U.S.C. 6901 et seq.) or any other Federal or State law.
    SEC. 2907. WEST MOJAVE COORDINATED MANAGEMENT PLAN.
        (a) Completion.--The Secretary of the Interior shall make every
    effort to complete the West Mojave Coordinated Management Plan not
    later than two years after the date of the enactment of this Act.
        (b) Consideration of Withdrawal and Reservation Impacts.--The
    Secretary of the Interior shall ensure that the West Mojave Coordinated
    Management Plan considers the impacts of the availability or
    nonavailability of the lands withdrawn and reserved by this title on
    the plan as a whole.
        (c) Consultation.--The Secretary of the Interior shall consult with
    the Secretary of the Army and the Administrator of the National
    Aeronautics and Space Administration in the development of the West
    Mojave Coordinated Management Plan.
    SEC. 2908. RELEASE OF WILDERNESS STUDY AREAS.
        Congress hereby finds and directs that lands withdrawn and reserved
    by this title have been adequately studied for wilderness designation
    pursuant to section 603(c) of the Federal Land Policy and Management
    Act of 1976 (43 U.S.C. 1782(c)), and are no longer subject to the
    requirement of such section pertaining to the management of wilderness
    study areas in a manner that does not impair the suitability of such
    areas for preservation as wilderness.
    SEC. 2909. TRAINING ACTIVITY SEPARATION FROM UTILITY CORRIDORS.
        (a) Required Separation.--All military ground activity training on
    the lands withdrawn and reserved by this title shall remain at least
    500 meters from any utility system, in existence as of the date of the
    enactment of this Act, in Utility Planning Corridor D, as described in
    the California Desert Conservation Area Plan, dated 1980 and
    subsequently amended.
        (b) Exception.--Subsection (a) does not modify the use of any lands
    used, as of the date of the enactment of this Act, by the National
    Training Center for training or alter any right of access granted by
    interagency agreement.
    SEC. 2910. DURATION OF WITHDRAWAL AND RESERVATION.
        (a) Termination Date.--Unless extended pursuant to section 2911,
    unless relinquishment is postponed by the Secretary of the Interior
    pursuant to section 2912(b), and except as provided in section 2912(d),
    the withdrawal and reservation made by this title shall terminate 25
    years after the date of the enactment of this Act.
        (b) Limitation on Subsequent Availability for Appropriation.--At
    the time of termination of the withdrawal and reservation made by this
    title, the previously withdrawn lands shall not be open to any forms of
    appropriation under the general land laws, including the mining laws
    and the mineral and geothermal leasing laws, until the Secretary of the
    Interior publishes in the Federal Register an appropriate order
    specifying the date upon which such lands shall be restored to the
    public domain and opened.
    SEC. 2911. EXTENSION OF INITIAL WITHDRAWAL AND RESERVATION.
        (a) Notification Requirement.--Not later than three years before
    the termination date specified in section 2910(a), the Secretary of the
    Army shall notify Congress and the Secretary of the Interior whether
    the Army will have a continuing military need, beyond the termination
    date, for all or any portion of the lands withdrawn and reserved by
    this title.
        (b) Process for Extension of Withdrawal and Reservation.--
            (1) Consultation and application.--If the Secretary of the Army
        determines that there will be a continuing military need after the
        termination date for any of the lands withdrawn and reserved by
        this title, the Secretary of the Army shall--
                (A) consult with the Secretary of the Interior concerning
            any adjustments to be made to the extent of, or to the
            allocation of management responsibility for, such needed lands;
            and
                (B) file with the Secretary of the Interior, within one
            year after the notice required by subsection (a), an
            application for extension of the withdrawal and reservation of
            such needed lands.
            (2) Application requirements.--Notwithstanding any general
        procedure of the Department of the Interior for processing Federal
        land withdrawals, an application for extension of the land
        withdrawal and reservation made by this title shall be considered
        to be complete if the application includes the information required
        by section 3 of Public Law 85-337 (commonly known as the Engle Act;
        43 U.S.C. 157), except that no information shall be required
        concerning the use or development of mineral, timber, or grazing
        resources unless, and only to the extent, the Secretary of the Army
        proposes to use or develop such resources during the period of
        extension.
        (c) Submission of Proposed Extension to Congress.--The Secretary of
    the Interior and the Secretary of the Army may submit to Congress a
    legislative proposal for the extension of the withdrawal and
    reservation made by this title. The legislative proposal shall be
    accompanied by an appropriate analysis of environmental impacts
    associated with the proposal, as required by section 102(2)(C) of the
    National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

    SEC. 2912. TERMINATION AND RELINQUISHMENT.

        (a) Notice of Termination.--During the first 22 years of the
    withdrawal and reservation made by this title, if the Secretary of the
    Army determines that there is no continuing military need for the lands
    withdrawn and reserved by this title, or any portion of such lands, the
    Secretary of the Army shall submit to the Secretary of the Interior a
    notice of intent to relinquish jurisdiction over such lands. The notice
    shall specify the proposed date of relinquishment.
        (b) Acceptance of Jurisdiction.--The Secretary of the Interior may
    accept jurisdiction over any lands covered by a notice under subsection
    (a) if the Secretary of the Interior determines that the Secretary of
    the Army has taken or will take all environmental response and
    restoration activities required under applicable laws and regulations
    with respect to such lands.
        (c) Notice of Acceptance.--If the Secretary of the Interior decides
    to accept jurisdiction over lands covered by a notice under subsection
    (a) before the termination date of the withdrawal and reservation, the
    Secretary shall publish in the Federal Register an appropriate order
    that shall--
            (1) terminate the withdrawal and reservation of such lands
        under this title;
            (2) constitute official acceptance of administrative
        jurisdiction over the lands by the Secretary of the Interior; and
            (3) state the date upon which such lands shall be opened to the
        operation of the general land laws, including the mining laws and
        the mineral and geothermal leasing laws, if appropriate.
        (d) Retained Army Jurisdiction.--Notwithstanding the termination
    date specified in section 2910, unless and until the Secretary of the
    Interior accepts jurisdiction of land proposed for relinquishment
    pursuant to this section, such land shall remain withdrawn and reserved
    for the Secretary of the Army for the limited purposes of environmental
    response and restoration actions under section 2906 and continued land
    management responsibilities pursuant to the integrated natural
    resources management plan required under section 2904, until such
    environmental response and restoration activities on those lands are
    completed.
        (e) Severability of Functions.--All functions described under this
    section, including transfers, relinquishments, extensions, and other
    determinations, may be made on a parcel-by-parcel basis.

    SEC. 2913. DELEGATION OF AUTHORITY.

        (a) Secretary of the Army.--The Secretary of the Army may delegate
    to officials in the Department of the Army such functions as the
    Secretary of the Army may determine appropriate to carry out this
    title.
        (b) Secretary of the Interior.--The functions of the Secretary of
    the Interior under this title may be delegated, except that the order
    described in section 2912(c) may be approved and signed only by the
    Secretary of the Interior, the Deputy Secretary of the Interior, or an
    Assistant Secretary of the Department of the Interior.

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

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

    SEC. 3001. AUTHORIZATION OF ROUND OF REALIGNMENTS AND CLOSURES OF
    MILITARY INSTALLATIONS IN 2005.
        The Defense Base Closure and Realignment Act of 1990 (part A of
    title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is amended by
    adding at the end the following new section:
    ``SEC. 2912. 2005 ROUND OF REALIGNMENTS AND CLOSURES OF MILITARY
    INSTALLATIONS.
        ``(a) Force-Structure Plan and Infrastructure Inventory.--
            ``(1) Preparation and submission.--As part of the budget
        justification documents submitted to Congress in support of the
        budget for the Department of Defense for fiscal year 2005, the
        Secretary shall include the following:
                ``(A) A force-structure plan for the Armed Forces based on
            an assessment by the Secretary of the probable threats to the
            national security during the 20-year period beginning with
            fiscal year 2005, the probable end-strength levels and major
            military force units (including land force divisions, carrier
            and other major combatant vessels, air wings, and other
            comparable units) needed to meet these threats, and the
            anticipated levels of funding that will be available for
            national defense purposes during such period.
                ``(B) A comprehensive inventory of military installations
            world-wide for each military department, with specifications of
            the number and type of facilities in the active and reserve
            forces of each military department.
            ``(2) Relationship of plan and inventory.--Using the force-
        structure plan and infrastructure inventory prepared under
        paragraph (1), the Secretary shall prepare (and include as part of
        the submission of such plan and inventory) the following:
                ``(A) A description of the infrastructure necessary to
            support the force structure described in the force-structure
            plan.
                ``(B) A discussion of categories of excess infrastructure
            and infrastructure capacity.
                ``(C) An economic analysis of the effect of the closure or
            realignment of military installations to reduce excess
            infrastructure.
            ``(3) Special considerations.--In determining the level of
        necessary versus excess infrastructure under paragraph (2), the
        Secretary shall consider the following:
                ``(A) The anticipated continuing need for and availability
            of military installations outside the United States, taking
            into account current restrictions on the use of military
            installations outside the United States and the potential for
            future prohibitions or restrictions on the use of such military
            installations.
                ``(B) Any efficiencies that may be gained from joint
            tenancy by more than one branch of the Armed Forces at a
            military installation.
            ``(4) Revision.--The Secretary may revise the force-structure
        plan and infrastructure inventory. If the Secretary makes such a
        revision, the Secretary shall submit the revised plan or inventory
        to Congress as part of the budget justification documents submitted
        to Congress for fiscal year 2006.
        ``(b) Certification of Need for Further Closures and
    Realignments.--
            ``(1) Certification required.--On the basis of the force-
        structure plan and infrastructure inventory prepared under
        subsection (a) and the descriptions and economic analysis prepared
        under such subsection, the Secretary shall include as part of the
        submission of the plan and inventory--
                ``(A) a certification regarding whether the need exists for
            the closure or realignment of additional military
            installations; and
                ``(B) if such need exists, a certification that the
            additional round of closures and realignments would result in
            annual net savings for each of the military departments
            beginning not later than fiscal year 2011.
            ``(2) Effect of failure to certify.--If the Secretary does not
        include the certifications referred to in paragraph (1), the
        process by which military installations may be selected for closure
        or realignment under this part in 2005 shall be terminated.
        ``(c) Comptroller General Evaluation.--
            ``(1) Evaluation required.--If the certification is provided
        under subsection (b), the Comptroller General shall prepare an
        evaluation of the following:
                ``(A) The force-structure plan and infrastructure inventory
            prepared under subsection (a) and the final selection criteria
            prepared under section 2913, including an evaluation of the
            accuracy and analytical sufficiency of such plan, inventory,
            and criteria.
                ``(B) The need for the closure or realignment of additional
            military installations.
            ``(2) Submission.--The Comptroller General shall submit the
        evaluation to Congress not later than 60 days after the date on
        which the force-structure plan and infrastructure inventory are
        submitted to Congress.
        ``(d) Authorization of Additional Round; Commission.--
            ``(1) Appointment of commission.--Subject to the certifications
        required under subsection (b), the President may commence an
        additional round for the selection of military installations for
        closure and realignment under this part in 2005 by transmitting to
        the Senate, not later than March 15, 2005, nominations pursuant to
        section 2902(c) for the appointment of new members to the Defense
        Base Closure and Realignment Commission.
            ``(2) Effect of failure to nominate.--If the President does not
        transmit to the Senate the nominations for the Commission by March
        15, 2005, the process by which military installations may be
        selected for closure or realignment under this part in 2005 shall
        be terminated.
            ``(3) Members.--Notwithstanding section 2902(c)(1), the
        Commission appointed under the authority of this subsection shall
        consist of nine members.
            ``(4) Terms; meetings; termination.--Notwithstanding
        subsections (d), (e)(1), and (l) of section 2902, the Commission
        appointed under the authority of this subsection shall meet during
        calendar year 2005 and shall terminate on April 15, 2006.
            ``(5) Funding.--If no funds are appropriated to the Commission
        by the end of the second session of the 108th Congress for the
        activities of the Commission in 2005, the Secretary may transfer to
        the Commission for purposes of its activities under this part in
        that year such funds as the Commission may require to carry out
        such activities. The Secretary may transfer funds under the
        preceding sentence from any funds available to the Secretary. Funds
        so transferred shall remain available to the Commission for such
        purposes until expended.''.

    SEC. 3002. SELECTION CRITERIA.

        The Defense Base Closure and Realignment Act of 1990 (part A of
    title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is amended by
    inserting after section 2912, as added by section 3001, the following
    new section:

    ``SEC. 2913. SELECTION CRITERIA FOR 2005 ROUND.

        ``(a) Preparation of Proposed Selection Criteria.--
            ``(1) In general.--Not later than December 31, 2003, the
        Secretary shall publish in the Federal Register and transmit to the
        congressional defense committees the criteria proposed to be used
        by the Secretary in making recommendations for the closure or
        realignment of military installations inside the United States
        under this part in 2005.
            ``(2) Public comment.--The Secretary shall provide an
        opportunity for public comment on the proposed criteria for a
        period of at least 30 days and shall include notice of that
        opportunity in the publication required under this subsection.
        ``(b) Military Value as Primary Consideration.--The selection
    criteria prepared by the Secretary shall ensure that military value is
    the primary consideration in the making of recommendations for the
    closure or realignment of military installations under this part in
    2005. Military value shall include at a minimum the following:
            ``(1) Preservation of training areas suitable for maneuver by
        ground, naval, or air forces to guarantee future availability of
        such areas to ensure the readiness of the Armed Forces.
            ``(2) Preservation of military installations in the United
        States as staging areas for the use of the Armed Forces in homeland
        defense missions.
            ``(3) Preservation of military installations throughout a
        diversity of climate and terrain areas in the United States for
        training purposes.
            ``(4) The impact on joint warfighting, training, and readiness.
            ``(5) Contingency, mobilization, and future total force
        requirements at both existing and potential receiving locations to
        support operations and training.
        ``(c) Special Considerations.--The selection criteria for military
    installations shall also address at a minimum the following:
            ``(1) The extent and timing of potential costs and savings,
        including the number of years, beginning with the date of
        completion of the closure or realignment, for the savings to exceed
        the costs.
            ``(2) The economic impact on existing communities in the
        vicinity of military installations.
            ``(3) The ability of both existing and potential receiving
        communities' infrastructure to support forces, missions, and
        personnel.
            ``(4) The impact of costs related to potential environmental
        restoration, waste management, and environmental compliance
        activities.
        ``(d) Effect on Department and Other Agency Costs.--Any selection
    criteria proposed by the Secretary relating to the cost savings or
    return on investment from the proposed closure or realignment of
    military installations shall take into account the effect of the
    proposed closure or realignment on the costs of any other activity of
    the Department of Defense or any other Federal agency that may be
    required to assume responsibility for activities at the military
    installations.
        ``(e) Final Selection Criteria.--Not later than February 16, 2004,
    the Secretary shall publish in the Federal Register and transmit to the
    congressional defense committees the final criteria to be used in
    making recommendations for the closure or realignment of military
    installations inside the United States under this part in 2005. Such
    criteria shall be the final criteria to be used, along with the force-
    structure plan and infrastructure inventory referred to in section
    2912, in making such recommendations unless disapproved by an Act of
    Congress enacted on or before March 15, 2004.
        ``(f) Relation to Criteria for Earlier Rounds.--Section 2903(b),
    and the selection criteria prepared under such section, shall not apply
    with respect to the process of making recommendations for the closure
    or realignment of military installations in 2005.''.
    SEC. 3003. REVISED PROCEDURES FOR MAKING RECOMMENDATIONS FOR
    REALIGNMENTS AND CLOSURES AND COMMISSION CONSIDERATION OF
    RECOMMENDATIONS.
        The Defense Base Closure and Realignment Act of 1990 (part A of
    title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is amended by
    inserting after section 2913, as added by section 3002, the following
    new section:
    ``SEC. 2914. SPECIAL PROCEDURES FOR MAKING RECOMMENDATIONS FOR
    REALIGNMENTS AND CLOSURES FOR 2005 ROUND; COMMISSION CONSIDERATION OF
    RECOMMENDATIONS.
        ``(a) Recommendations Regarding Closure or Realignment of Military
    Installations.--If the Secretary makes the certifications required
    under section 2912(b), the Secretary shall publish in the Federal
    Register and transmit to the congressional defense committees and the
    Commission, not later than May 16, 2005, a list of the military
    installations inside the United States that the Secretary recommends
    for closure or realignment on the basis of the force-structure plan and
    infrastructure inventory prepared by the Secretary under section 2912
    and the final selection criteria prepared by the Secretary under
    section 2913.
        ``(b) Preparation of Recommendations.--
            ``(1) In general.--The Secretary shall comply with paragraphs
        (2) through (6) of section 2903(c) in preparing and transmitting
        the recommendations under this section. However, paragraph (6) of
        section 2903(c) relating to submission of information to Congress
        shall be deemed to require such submission within 48 hours.
            ``(2) Consideration of local government views.--(A) In making
        recommendations to the Commission in 2005, the Secretary shall
        consider any notice received from a local government in the
        vicinity of a military installation that the government would
        approve of the closure or realignment of the installation.
            ``(B) Notwithstanding the requirement in subparagraph (A), the
        Secretary shall make the recommendations referred to in that
        subparagraph based on the force-structure plan, infrastructure
        inventory, and final selection criteria otherwise applicable to
        such recommendations.
            ``(C) The recommendations shall include a statement of the
        result of the consideration of any notice described in subparagraph
        (A) that is received with respect to a military installation
        covered by such recommendations. The statement shall set forth the
        reasons for the result.
        ``(c) Recommendations To Retain Bases in Inactive Status.--In
    making recommendations for the closure or realignment of military
    installations, the Secretary may recommend that an installation be
    placed in an inactive status if the Secretary determines that--
            ``(1) the installation may be needed in the future for national
        security purposes; or
            ``(2) retention of the installation is otherwise in the
        interest of the United States.
        ``(d) Commission Review and Recommendations.--
            ``(1) In general.--Except as provided in this subsection,
        section 2903(d) shall apply to the consideration by the Commission
        of the recommendations transmitted by the Secretary in 2005. The
        Commission's report containing its findings and conclusions, based
        on a review and analysis of the Secretary's recommendations, shall
        be transmitted to the President not later than September 8, 2005.
            ``(2) Availability of recommendations to congress.--After
        September 8, 2005, the Commission shall promptly provide, upon
        request, to any Member of Congress information used by the
        Commission in making its recommendations.
            ``(3) Limitations on authority to add to closure or realignment
        lists.--The Commission may not consider making a change in the
        recommendations of the Secretary that would add a military
        installation to the Secretary's list of installations recommended
        for closure or realignment unless, in addition to the requirements
        of section 2903(d)(2)(C)--
                ``(A) the Commission provides the Secretary with at least a
            15-day period, before making the change, in which to submit an
            explanation of the reasons why the installation was not
            included on the closure or realignment list by the Secretary;
            and
                ``(B) the decision to add the installation for Commission
            consideration is supported by at least seven members of the
            Commission.
            ``(4) Testimony by secretary.--The Commission shall invite the
        Secretary to testify at a public hearing, or a closed hearing if
        classified information is involved, on any proposed change by the
        Commission to the Secretary's recommendations.
            ``(5) Comptroller general report.--The Comptroller General
        report required by section 2903(d)(5)(B) analyzing the
        recommendations of the Secretary and the selection process in 2005
        shall be transmitted to the congressional defense committees not
        later than July 1, 2005.
        ``(e) Review by the President.--
            ``(1) In general.--Except as provided in this subsection,
        section 2903(e) shall apply to the review by the President of the
        recommendations of the Commission under this section, and the
        actions, if any, of the Commission in response to such review, in
        2005. The President shall review the recommendations of the
        Secretary and the recommendations contained in the report of the
        Commission under subsection (d) and prepare a report, not later
        than September 23, 2005, containing the President's approval or
        disapproval of the Commission's recommendations.
            ``(2) Commission reconsideration.--If the Commission prepares a
        revised list of recommendations under section 2903(e)(3) in 2005 in
        response to the review of the President in that year under
        paragraph (1), the Commission shall transmit the revised list to
        the President not later than October 20, 2005.
            ``(3) Effect of failure to transmit.--If the President does not
        transmit to Congress an approval and certification described in
        paragraph (2) or (4) of section 2903(e) by November 7, 2005, the
        process by which military installations may be selected for closure
        or realignment under this part in 2005 shall be terminated.
            ``(4) Effect of transmittal.--A report of the President under
        this subsection containing the President's approval of the
        Commission's recommendations is deemed to be a report under section
        2903(e) for purposes of sections 2904 and 2908.''.
    SEC. 3004. LIMITATIONS ON PRIVATIZATION IN PLACE.
        Section 2904(a) of the Defense Base Closure and Realignment Act of
    1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)
    is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs (4)
        and (5), respectively; and
            (2) by inserting after paragraph (2) the following new
        paragraph (3):
            ``(3) carry out the privatization in place of a military
        installation recommended for closure or realignment by the
        Commission in the 2005 report only if privatization in place is a
        method of closure or realignment of the military installation
        specified in the recommendations of the Commission in such report
        and is determined by the Commission to be the most cost-effective
        method of implementation of the recommendation;''.
    SEC. 3005. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.
        (a) Establishment.--The Defense Base Closure and Realignment Act of
    1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)
    is amended by inserting after section 2906 the following new section:
    ``SEC. 2906A. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.
        ``(a) In General.--(1) If the Secretary makes the certifications
    required under section 2912(b), there shall be established on the books
    of the Treasury an account to be known as the `Department of Defense
    Base Closure Account 2005' (in this section referred to as the
    `Account'). The Account shall be administered by the Secretary as a
    single account.
        ``(2) There shall be deposited into the Account--
            ``(A) funds authorized for and appropriated to the Account;
            ``(B) any funds that the Secretary may, subject to approval in
        an appropriation Act, transfer to the Account from funds
        appropriated to the Department of Defense for any purpose, except
        that such funds may be transferred only after the date on which the
        Secretary transmits written notice of, and justification for, such
        transfer to the congressional defense committees; and
            ``(C) except as provided in subsection (d), proceeds received
        from the lease, transfer, or disposal of any property at a military
        installation that is closed or realigned under this part pursuant
        to a closure or realignment the date of approval of which is after
        January 1, 2005.
        ``(3) The Account shall be closed at the time and in the manner
    provided for appropriation accounts under section 1555 of title 31,
    United States Code. Unobligated funds which remain in the Account upon
    closure shall be held by the Secretary of the Treasury until
    transferred by law after the congressional defense committees receive
    the final report transmitted under subsection (c)(2).
        ``(b) Use of Funds.--(1) The Secretary may use the funds in the
    Account only for the purposes described in section 2905 with respect to
    military installations the date of approval of closure or realignment
    of which is after January 1, 2005.
        ``(2) When a decision is made to use funds in the Account to carry
    out a construction project under section 2905(a) and the cost of the
    project will exceed the maximum amount authorized by law for a minor
    military construction project, the Secretary shall notify in writing
    the congressional defense committees of the nature of, and
    justification for, the project and the amount of expenditures for such
    project. Any such construction project may be carried out without
    regard to section 2802(a) of title 10, United States Code.
        ``(c) Reports.--(1)(A) No later than 60 days after the end of each
    fiscal year in which the Secretary carries out activities under this
    part using amounts in the Account, the Secretary shall transmit a
    report to the congressional defense committees of the amount and nature
    of the deposits into, and the expenditures from, the Account during
    such fiscal year and of the amount and nature of other expenditures
    made pursuant to section 2905(a) during such fiscal year.
        ``(B) The report for a fiscal year shall include the following:
            ``(i) The obligations and expenditures from the Account during
        the fiscal year, identified by subaccount, for each military
        department and Defense Agency.
            ``(ii) The fiscal year in which appropriations for such
        expenditures were made and the fiscal year in which funds were
        obligated for such expenditures.
            ``(iii) Each military construction project for which such
        obligations and expenditures were made, identified by installation
        and project title.
            ``(iv) A description and explanation of the extent, if any, to
        which expenditures for military construction projects for the
        fiscal year differed from proposals for projects and funding levels
        that were included in the justification transmitted to Congress
        under section 2907(1), or otherwise, for the funding proposals for
        the Account for such fiscal year, including an explanation of--
                ``(I) any failure to carry out military construction
            projects that were so proposed; and
                ``(II) any expenditures for military construction projects
            that were not so proposed.
        ``(2) No later than 60 days after the termination of the authority
    of the Secretary to carry out a closure or realignment under this part
    with respect to military installations the date of approval of closure
    or realignment of which is after January 1, 2005, and no later than 60
    days after the closure of the Account under subsection (a)(3), the
    Secretary shall transmit to the congressional defense committees a
    report containing an accounting of--
            ``(A) all the funds deposited into and expended from the
        Account or otherwise expended under this part with respect to such
        installations; and
            ``(B) any amount remaining in the Account.
        ``(d) Disposal or Transfer of Commissary Stores and Property
    Purchased With Nonappropriated Funds.--(1) If any real property or
    facility acquired, constructed, or improved (in whole or in part) with
    commissary store funds or nonappropriated funds is transferred or
    disposed of in connection with the closure or realignment of a military
    installation under this part the date of approval of closure or
    realignment of which is after January 1, 2005, a portion of the
    proceeds of the transfer or other disposal of property on that
    installation shall be deposited in the reserve account established
    under section 204(b)(7)(C) of the Defense Authorization Amendments and
    Base Closure and Realignment Act (10 U.S.C. 2687 note).
        ``(2) The amount so deposited shall be equal to the depreciated
    value of the investment made with such funds in the acquisition,
    construction, or improvement of that particular real property or
    facility. The depreciated value of the investment shall be computed in
    accordance with regulations prescribed by the Secretary.
        ``(3) The Secretary may use amounts in the reserve account, without
    further appropriation, for the purpose of acquiring, constructing, and
    improving--
            ``(A) commissary stores; and
            ``(B) real property and facilities for nonappropriated fund
        instrumentalities.
        ``(4) In this subsection, the terms `commissary store funds',
    `nonappropriated funds', and `nonappropriated fund instrumentality'
    shall have the meaning given those terms in section 2906(d)(4).
        ``(e) Account Exclusive Source of Funds for Environmental
    Restoration Projects.--Except as provided in section 2906(e) with
    respect to funds in the Department of Defense Base Closure Account 1990
    under section 2906 and except for funds deposited into the Account
    under subsection (a), funds appropriated to the Department of Defense
    may not be used for purposes described in section 2905(a)(1)(C). The
    prohibition in this subsection shall expire upon the closure of the
    Account under subsection (a)(3).''.
        (b) Conforming Amendments.--Section 2906 of that Act is amended--
            (1) in subsection (a)(2)(C), by inserting ``the date of
        approval of closure or realignment of which is before January 1,
        2005'' after ``under this part'';
            (2) in subsection (b)(1), by inserting ``with respect to
        military installations the date of approval of closure or
        realignment of which is before January 1, 2005,'' after ``section
        2905'';
            (3) in subsection (c)(2)--
                (A) in the matter preceding subparagraph (A), by inserting
            ``with respect to military installations the date of approval
            of closure or realignment of which is before January 1, 2005,''
            after ``under this part''; and
                (B) in subparagraph (A), by inserting ``with respect to
            such installations'' after ``under this part'';
            (4) in subsection (d)(1), by inserting ``the date of approval
        of closure or realignment of which is before January 1, 2005''
        after ``under this part''; and
            (5) in subsection (e), by striking ``Except for'' and inserting
        ``Except as provided in section 2906A(e) with respect to funds in
        the Department of Defense Base Closure Account 2005 under section
        2906A and except for''.
        (c) Clerical Amendment.--The section heading of section 2906 of
    that Act is amended by striking ``account'' and inserting ``department
    of defense base closure account 1990''.
    SEC. 3006. IMPLEMENTATION OF CLOSURE AND REALIGNMENT DECISIONS.
        (a) Requirement To Receive Fair Market Value.--Section
    2905(b)(4)(B) of that Act is amended--
            (1) in the first sentence, by striking ``shall be without
        consideration'' in the matter preceding clause (i) and inserting
        ``may be without consideration''; and
            (2) by inserting after ``(B)'' the following new sentence:
        ``With respect to military installations for which the date of
        approval of closure or realignment is after January 1, 2005, the
        Secretary shall seek to obtain consideration in connection with any
        transfer under this paragraph of property located at the
        installation in an amount equal to the fair market value of the
        property, as determined by the Secretary.''.
        (b) Transfers in Connection With Payment of Environmental
    Remediation.--Section 2905(e) of that Act is amended--
            (1) in paragraph (1)(B), by adding at the end the following new
        sentence: ``The real property and facilities referred to in
        subparagraph (A) are also the real property and facilities located
        at an installation approved for closure or realignment under this
        part after 2001 that are available for purposes other than to
        assist the homeless.'';
            (2) in paragraph (2)(A), by striking ``to be paid by the
        recipient of the property or facilities'' and inserting ``otherwise
        to be paid by the Secretary with respect to the property or
        facilities'';
            (3) by striking paragraph (6);
            (4) by redesignating paragraphs (3), (4), and (5) as paragraphs
        (4), (5), and (6), respectively; and
            (5) by inserting after paragraph (2) the following new
        paragraph (3):
        ``(3) In the case of property or facilities covered by a
    certification under paragraph (2)(A), the Secretary may pay the
    recipient of such property or facilities an amount equal to the lesser
    of--
            ``(A) the amount by which the costs incurred by the recipient
        of such property or facilities for all environmental restoration,
        waste, management, and environmental compliance activities with
        respect to such property or facilities exceed the fair market value
        of such property or facilities as specified in such certification;
        or
            ``(B) the amount by which the costs (as determined by the
        Secretary) that would otherwise have been incurred by the Secretary
        for such restoration, management, and activities with respect to
        such property or facilities exceed the fair market value of such
        property or facilities as so specified.''.
        (c) Scope of Indemnification of Transferees in Connection With
    Payment of Environmental Remediation.--Paragraph (6) of section 2905(e)
    of that Act, as redesignated by subsection (b)(4), is amended by
    inserting before the period the following: ``, except in the case of
    releases or threatened releases not disclosed pursuant to paragraph
    (4)''.
    SEC. 3007. TECHNICAL AND CLARIFYING AMENDMENTS.
        (a) Relationship to Other Base Closure Authority.--Section 2909(a)
    of the Defense Base Closure and Realignment Act of 1990 (part A of
    title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is amended by
    striking ``the date of the enactment of this Act and ending on December
    31, 1995,'' and inserting ``November 5, 1990, and ending on April 15,
    2006,''.
        (b) Commencement of Period for Notice of Interest in Property for
    Homeless.--Section 2905(b)(7)(D)(ii)(I) of that Act is amended by
    striking ``that date'' and inserting ``the date of publication of such
    determination in a newspaper of general circulation in the communities
    in the vicinity of the installation under subparagraph (B)(i)(IV)''.
        (c) Committee Name.--That Act is further amended by striking
    ``National Security'' and inserting ``Armed Services'' each place it
    appears in the following provisions:
            (A) Section 2902(e)(2)(B)(ii).
            (B) Section 2908(b).
        (d) Other Clarifying Amendments.--(1) That Act is further amended
    by inserting ``or realignment'' after ``closure'' each place it appears
    in the following provisions:
            (A) Section 2905(b)(3).
            (B) Section 2905(b)(5).
            (C) Section 2905(b)(7)(B)(iv).
            (D) Section 2905(b)(7)(N).
            (E) Section 2910(10)(B).
        (2) That Act is further amended by inserting ``or realigned'' after
    ``closed'' each place it appears in the following provisions:
            (A) Section 2905(b)(3)(C)(ii).
            (B) Section 2905(b)(3)(D).
            (C) Section 2905(b)(3)(E).
            (D) Section 2905(b)(5)(A).
            (E) Section 2910(9).
            (F) Section 2910(10).
        (3) Section 2905(e)(1)(B) of that Act is amended by inserting ``,
    or realigned or to be realigned,'' after ``closed or to be closed''.
    SEC. 3008. PREPARATION OF INFRASTRUCTURE PLAN FOR THE NUCLEAR WEAPONS
    COMPLEX.
        (a) Infrastructure Plan for Nuclear Weapons Complex.--
            (1) Preparation and submission.--Not later than the date on
        which the budget for the Department of Energy for fiscal year 2004
        is submitted to Congress, the Secretary of Energy shall submit to
        Congress an infrastructure plan for the nuclear weapons complex
        adequate to support the nuclear weapons stockpile, the naval
        reactors program, and nonproliferation and national security
        activities.
            (2) Special considerations.--In preparing the infrastructure
        plan, the Secretary shall take into consideration the following:
                (A) The Department of Defense Nuclear Posture Review
            required pursuant to section 1041 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).
                (B) Any efficiencies and security benefits of consolidation
            of facilities of the nuclear weapons complex.
                (C) The necessity to have a residual production capability.
        (b) Recommendations Regarding Realignments and Closures.--On the
    basis of the infrastructure plan prepared under subsection (a), the
    Secretary shall make such recommendations regarding the need to close
    or realign facilities of the nuclear weapons complex as the Secretary
    considers appropriate, including the Secretary's recommendations on
    whether to establish a process by which a round of closures and
    realignments would be carried out and any additional legislative
    authority necessary to implement the recommendations. The Secretary
    shall submit the recommendations as part of the infrastructure plan
    under subsection (a).
        (c) Definitions.--In this section:
            (1) The terms ``Secretary'' and ``Secretary of Energy'' mean
        the Secretary of Energy, acting after consideration of the
        recommendations of the Administrator for Nuclear Security.
            (2) The term ``nuclear weapons complex'' means the national
        security laboratories and nuclear weapons production facilities (as
        such terms are defined in section 3281 of the National Nuclear
        Security Administration Act (50 U.S.C. 2471)) and the facilities of
        the Naval Nuclear Propulsion Program provided for under the Naval
        Nuclear Propulsion Executive Order (as such term is defined in
        section 3216 of such Act (50 U.S.C. 2406)).

     DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
                              OTHER AUTHORIZATIONS
          TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

              Subtitle A--National Security Programs Authorizations

    Sec. 3101. National Nuclear Security Administration.
    Sec. 3102. Defense environmental restoration and waste management.
    Sec. 3103. Other defense activities.
    Sec. 3104. Defense environmental management privatization.
    Sec. 3105. Defense nuclear waste disposal.

                    Subtitle B--Recurring General Provisions

    Sec. 3121. Reprogramming.
    Sec. 3122. Limits on minor construction projects.
    Sec. 3123. Limits on construction projects.
    Sec. 3124. Fund transfer authority.
    Sec. 3125. Authority for conceptual and construction design.
    Sec. 3126. Authority for emergency planning, design, and construction
    activities.
    Sec. 3127. Funds available for all national security programs of the
    Department of Energy.
    Sec. 3128. Availability of funds.
    Sec. 3129. Transfer of defense environmental management funds.
    Sec. 3130. Transfer of weapons activities funds.

        Subtitle C--Program Authorizations, Restrictions, and Limitations

    Sec. 3131. Consolidation of Nuclear Cities Initiative program with
    Initiatives for Proliferation Prevention program.
    Sec. 3132. Nuclear Cities Initiative.
    Sec. 3133. Limitation on availability of funds for weapons activities
    for facilities and infrastructure.
    Sec. 3134. Limitation on availability of funds for other defense
    activities for national security programs administrative support.
    Sec. 3135. Termination date of Office of River Protection, Richland,
    Washington.
    Sec. 3136. Support for public education in the vicinity of Los Alamos
    National Laboratory, New Mexico.
    Sec. 3137. Reports on achievement of milestones for National Ignition
    Facility.

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

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

                            Subtitle E--Other Matters

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

                Subtitle F--Rocky Flats National Wildlife Refuge

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

             Subtitle A--National Security Programs Authorizations

    SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.
        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2002 for the activities of the National Nuclear
    Security Administration in carrying out programs necessary for national
    security in the amount of $7,121,094,000, to be allocated as follows:
            (1) Weapons activities.--For weapons activities,
        $5,343,567,000, to be allocated as follows:
                (A) For stewardship operation and maintenance,
            $4,601,871,000, to be allocated as follows:
                    (i) For directed stockpile work, $1,002,274,000.
                    (ii) For campaigns, $2,074,473,000, to be allocated as
                follows:

                        (I) For operation and maintenance, $1,704,501,000.
                        (II) For construction, $369,972,000, to be
                    allocated as follows:

                            Project 01-D-101, distributed information
                        systems laboratory, Sandia National Laboratories,
                        Livermore, California, $5,400,000.
                            Project 00-D-103, terascale simulation
                        facility, Lawrence Livermore National Laboratory,
                        Livermore, California, $22,000,000.
                            Project 00-D-105, strategic computing complex,
                        Los Alamos National Laboratory, Los Alamos, New
                        Mexico, $11,070,000.
                            Project 00-D-107, joint computational
                        engineering laboratory, Sandia National
                        Laboratories, Albuquerque, New Mexico, $5,377,000.
                            Project 98-D-125, tritium extraction facility,
                        Savannah River Plant, Aiken, South Carolina,
                        $81,125,000.
                            Project 96-D-111, national ignition facility
                        (NIF), Lawrence Livermore National Laboratory,
                        Livermore, California, $245,000,000.
                    (iii) For readiness in technical base and facilities,
                $1,525,124,000, to be allocated as follows:

                        (I) For operation and maintenance, $1,348,260,000.
                        (II) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land
                    acquisition related thereto), $176,864,000, to be
                    allocated as follows:

                            Project 02-D-103, project engineering and
                        design (PED), various locations, $22,830,000.
                            Project 02-D-105, engineering technology
                        complex upgrade, Lawrence Livermore National
                        Laboratory, Livermore, California, $4,750,000.
                            Project 02-D-107, electrical power systems
                        safety communications and bus upgrades, Nevada Test
                        Site, Nevada, $3,507,000.
                            Project 01-D-101, microsystems and engineering
                        sciences applications (MESA), Sandia National
                        Laboratories, Albuquerque, New Mexico, $39,000,000.
                            Project 01-D-103, preliminary project design
                        and engineering, various locations, $16,379,000.
                            Project 01-D-107, Atlas relocation, Nevada Test
                        Site, Nevada, $3,300,000.
                            Project 01-D-126, weapons evaluation test
                        laboratory, Pantex Plant, Amarillo, Texas,
                        $7,700,000.
                            Project 01-D-800, sensitive compartmented
                        information facility, Lawrence Livermore National
                        Laboratory, Livermore, California, $12,993,000.
                            Project 99-D-103, isotope sciences facilities,
                        Lawrence Livermore National Laboratory, Livermore,
                        California, $4,400,000.
                            Project 99-D-104, protection of real property
                        (roof reconstruction, phase II), Lawrence Livermore
                        National Laboratory, Livermore, California,
                        $2,800,000.
                            Project 99-D-106, model validation and system
                        certification center, Sandia National Laboratories,
                        Albuquerque, New Mexico, $4,955,000.
                            Project 99-D-108, renovate existing roadways,
                        Nevada Test Site, Nevada, $2,000,000.
                            Project 99-D-125, replace boilers and controls,
                        Kansas City Plant, Kansas City, Missouri, $300,000.
                            Project 99-D-127, stockpile management
                        restructuring initiative, Kansas City plant, Kansas
                        City, Missouri, $22,200,000.
                            Project 99-D-128, stockpile management
                        restructuring initiative, Pantex Plant, Amarillo,
                        Texas, $3,300,000.
                            Project 98-D-123, stockpile management
                        restructuring initiative, tritium facility
                        modernization and consolidation, Savannah River
                        Plant, Aiken, South Carolina, $13,700,000.
                            Project 98-D-124, stockpile management
                        restructuring initiative, Y-12 consolidation, Oak
                        Ridge, Tennessee, $6,850,000.
                            Project 97-D-123, structural upgrades, Kansas
                        City Plant, Kansas City, Missouri, $3,000,000.
                            Project 96-D-102, stockpile stewardship
                        facilities revitalization, Phase VI, various
                        locations, $2,900,000.
                (B) For secure transportation asset, $121,800,000, to be
            allocated as follows:
                    (i) For operation and maintenance, $77,571,000.
                    (ii) For program direction, $44,229,000.
                (C) For safeguards and security, $448,881,000, to be
            allocated as follows:
                    (i) For operations and maintenance, $439,281,000.
                    (ii) For plant projects (including maintenance,
                restoration, planning, construction, acquisition,
                modification of facilities, and the continuation of
                projects authorized in prior years, and land acquisition
                related thereto), $9,600,000, to be allocated as follows:

                        Project 99-D-132, stockpile management
                    restructuring initiative, nuclear material safeguards
                    and security upgrades project, Los Alamos National
                    Laboratory, Los Alamos, New Mexico, $9,600,000.

                (D) For facilities and infrastructure, $200,000,000.
                (E) The total amount authorized by this paragraph is the
            sum of the amounts authorized to be appropriated by
            subparagraphs (A) through (D), reduced by $28,985,000, to be
            derived from a security charge for reimbursable work.
            (2) Defense nuclear nonproliferation.--For defense nuclear
        nonproliferation activities, $776,886,000, to be allocated as
        follows:
                (A) For nonproliferation and verification research and
            development, $244,306,000, to be allocated as follows:
                    (i) For operation and maintenance, $208,500,000.
                    (ii) For plant projects (including maintenance,
                restoration, planning, construction, acquisition,
                modification of facilities, and the continuation of
                projects authorized in prior years, and land acquisition
                related thereto), $35,806,000, to be allocated as follows:

                        Project 00-D-192, nonproliferation and
                    international security center (NISC), Los Alamos
                    National Laboratory, Los Alamos, New Mexico,
                    $35,806,000.

                (B) For arms control and Russian transition initiatives,
            $117,741,000.
                (C) For international materials protection, control, and
            accounting, $143,800,000.
                (D) For highly enriched uranium transparency
            implementation, $13,950,000.
                (E) For international nuclear safety, $10,000,000.
                (F) For fissile materials control and disposition,
            $289,089,000, to be allocated as follows:
                    (i) For United States surplus fissile materials
                disposition, $228,089,000, to be allocated as follows:

                        (I) For operation and maintenance, $130,089,000.
                        (II) For plant projects (including maintenance,
                    restoration, planning, construction, acquisition,
                    modification of facilities, and the continuation of
                    projects authorized in prior years, and land
                    acquisition related thereto), $98,000,000, to be
                    allocated as follows:

                            Project 01-D-407, highly enriched uranium
                        blend-down, Savannah River Site, Aiken, South
                        Carolina, $24,000,000.
                            Project 99-D-141, pit disassembly and
                        conversion facility, Savannah River Site, Aiken,
                        South Carolina, $11,000,000.
                            Project 99-D-143, mixed oxide fuel fabrication
                        facility, Savannah River Site, Aiken, South
                        Carolina, $63,000,000.
                    (ii) For Russian surplus fissile materials disposition,
                $61,000,000.
                (G) The total amount authorized by this paragraph is the
            sum of the amounts authorized to be appropriated by
            subparagraphs (A) through (F), reduced by $42,000,000, to be
            derived from offsets and use of prior year balances.
            (3) Naval reactors.--For naval reactors, $688,045,000, to be
        allocated as follows:
                (A) For naval reactors development, $665,445,000, to be
            allocated as follows:
                    (i) For operation and maintenance, $652,245,000.
                    (ii) For plant projects (including maintenance,
                restoration, planning, construction, acquisition,
                modification of facilities, and the continuation of
                projects authorized in prior years, and land acquisition
                related thereto), $13,200,000, to be allocated as follows:

                        Project 01-D-200, major office replacement
                    building, Schenectady, New York, $9,000,000.
                        Project 90-N-102, expended core facility dry cell
                    project, Naval Reactors Facility, Idaho, $4,200,000.

                (B) For program direction, $22,600,000.
            (4) Office of administrator for nuclear security.--For the
        Office of the Administrator for Nuclear Security, and for program
        direction for the National Nuclear Security Administration (other
        than for naval reactors and secure transportation asset),
        $312,596,000.
    SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.
        (a) In General.--Funds are hereby authorized to be appropriated to
    the Department of Energy for fiscal year 2002 for environmental
    restoration and waste management activities in carrying out programs
    necessary for national security in the amount of $6,022,415,000, to be
    allocated as follows:
            (1) Closure projects.--For closure projects carried out in
        accordance with section 3143 of the National Defense Authorization
        Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2836; 42
        U.S.C. 7277n), $1,080,538,000.
            (2) Site/project completion.--For site completion and project
        completion in carrying out environmental management activities
        necessary for national security programs, $959,696,000, to be
        allocated as follows:
                (A) For operation and maintenance, $919,030,000.
                (B) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of
            facilities, and the continuation of projects authorized in
            prior years, and land acquisition related thereto),
            $40,666,000, to be allocated as follows:
                    Project 01-D-402, Intec cathodic protection system
                expansion, Idaho National Engineering and Environmental
                Laboratory, Idaho Falls, Idaho, $3,256,000.
                    Project 02-D-420, plutonium stabilization and
                packaging, Savannah River Site, Aiken, South Carolina,
                $20,000,000.
                    Project 01-D-414, preliminary project, engineering and
                design (PE&D), various locations, $2,754,000.
                    Project 99-D-402, tank farm support services, F&H
                areas, Savannah River Site, Aiken, South Carolina,
                $5,040,000.
                    Project 99-D-404, health physics instrumentation
                laboratory, Idaho National Engineering and Environmental
                Laboratory, Idaho Falls, Idaho, $2,700,000.
                    Project 98-D-453, plutonium stabilization and handling
                system for plutonium finishing plant, Richland, Washington,
                $1,910,000.
                    Project 96-D-471, chlorofluorocarbon heating,
                ventilation, and air conditioning and chiller retrofit,
                Savannah River Site, Aiken, South Carolina, $4,244,000.
                    Project 86-D-103, decontamination and waste treatment
                facility, Lawrence Livermore National Laboratory,
                Livermore, California, $762,000.
            (3) Post-2006 completion.--For post-2006 completion in carrying
        out environmental restoration and waste management activities
        necessary for national security programs, $3,265,201,000, to be
        allocated as follows:
                (A) For operation and maintenance, $1,955,979,000.
                (B) For uranium enrichment decontamination and
            decommissioning fund contribution, $420,000,000.
                (C) For plant projects (including maintenance, restoration,
            planning, construction, acquisition, modification of
            facilities, and the continuation of projects authorized in
            prior years, and land acquisition related thereto), $6,754,000,
            to be allocated as follows:
                    Project 93-D-187, high-level waste removal from filled
                waste tanks, Savannah River Site, Aiken, South Carolina,
                $6,754,000.
                (D) For the Office of River Protection in carrying out
            environmental restoration and waste management activities
            necessary for national security programs, $882,468,000, to be
            allocated as follows:
                    (i) For operation and maintenance, $322,151,000.
                    (ii) For plant projects (including maintenance,
                restoration, planning, construction, acquisition,
                modification of facilities, and the continuation of
                projects authorized in prior years, and land acquisition
                related thereto), $560,317,000, to be allocated as follows:

                        Project 01-D-416, waste treatment and
                    immobilization plant, Richland, Washington,
                    $520,000,000.
                        Project 97-D-402, tank farm restoration and safe
                    operations, Richland, Washington, $33,473,000.
                        Project 94-D-407, initial tank retrieval systems,
                    Richland, Washington, $6,844,000.

            (4) Science and technology development.--For science and
        technology development in carrying out environmental restoration
        and waste management activities necessary for national security
        programs, $216,000,000.
            (5) Excess facilities.--For excess facilities in carrying out
        environmental restoration and waste management activities necessary
        for national security programs, $1,300,000.
            (6) Safeguards and security.--For safeguards and security in
        carrying out environmental restoration and waste management
        activities necessary for national security programs, $205,621,000.
            (7) Program direction.--For program direction in carrying out
        environmental restoration and waste management activities necessary
        for national security programs, $355,761,000.
        (b) Adjustment.--The total amount authorized to be appropriated by
    subsection (a) is the sum of the amounts authorized to be appropriated
    by paragraphs (1) through (7) of that subsection, reduced by
    $61,702,000, of which $56,311,000 is to reflect an offset provided by
    use of prior year balances and $5,391,000 is to be derived from a
    security charge for reimbursable work.

    SEC. 3103. OTHER DEFENSE ACTIVITIES.

        (a) In General.--Funds are hereby authorized to be appropriated to
    the Department of Energy for fiscal year 2002 for other defense
    activities in carrying out programs necessary for national security in
    the amount of $499,663,000, to be allocated as follows:
            (1) Intelligence.--For intelligence, $40,844,000.
            (2) Counterintelligence.--For counterintelligence, $46,000,000.
            (3) Security and emergency operations.--For security and
        emergency operations, $250,427,000, to be allocated as follows:
                (A) For nuclear safeguards and security, $116,500,000.
                (B) For security investigations, $44,927,000.
                (C) For corporate management information programs,
            $10,000,000.
                (D) For program direction, $79,000,000.
            (4) Independent oversight and performance assurance.--For
        independent oversight and performance assurance, $14,904,000.
            (5) Office of environment, safety, and health.--For the Office
        of Environment, Safety, and Health, $113,307,000, to be allocated
        as follows:
                (A) For environment, safety, and health (defense),
            $91,307,000.
                (B) For program direction, $22,000,000.
            (6) Worker and community transition assistance.--For worker and
        community transition assistance, $20,000,000, to be allocated as
        follows:
                (A) For worker and community transition, $18,000,000.
                (B) For program direction, $2,000,000.
            (7) Office of hearings and appeals.--For the Office of Hearings
        and Appeals, $2,893,000.
            (8) National security programs administrative support.--For
        national security programs administrative support, $22,000,000.
        (b) Adjustment.--The amount authorized to be appropriated pursuant
    to subsection (a) is the total of the amounts authorized to be
    appropriated by paragraphs (1) through (8) of that subsection, reduced
    by $10,712,000, of which $10,000,000 is to reflect an offset provided
    by use of prior year balances and $712,000 is to be derived from a
    security charge for reimbursable work.
    SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.
        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2002 for privatization initiatives in carrying
    out environmental restoration and waste management activities necessary
    for national security programs in the amount of $153,537,000, to be
    allocated as follows:
            Project 02-PVT-1, Paducah disposal facility, Paducah, Kentucky,
        $13,329,000.
            Project 02-PVT-2, Portsmouth disposal facility, Portsmouth,
        Ohio, $2,000,000.
            Project 98-PVT-2, spent nuclear fuel dry storage, Idaho Falls,
        Idaho, $49,332,000.
            Project 98-PVT-5, environmental management/waste management
        disposal, Oak Ridge, Tennessee, $26,065,000.
            Project 97-PVT-2, advanced mixed waste treatment project, Idaho
        Falls, Idaho, $52,000,000.
            Project 97-PVT-3, transuranic waste treatment, Oak Ridge,
        Tennessee, $10,826,000.

    SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2002 for payment to the Nuclear Waste Fund
    established in section 302(c) of the Nuclear Waste Policy Act of 1982
    (42 U.S.C. 10222(c)) in the amount of $280,000,000.

                    Subtitle B--Recurring General Provisions

    SEC. 3121. REPROGRAMMING.

        (a) In General.--Except as provided in sections 3129 and 3130,
    until the Secretary of Energy submits to the congressional defense
    committees the report referred to in subsection (b) and a period of 30
    days has elapsed after the date on which such committees receive the
    report, the Secretary may not use amounts appropriated pursuant to this
    title for any program--
            (1) in amounts that exceed, in a fiscal year, the amount
        authorized for that program by this title; or
            (2) which has not been presented to, or requested of, Congress.
        (b) Report.--(1) The report referred to in subsection (a) is a
    report containing a full and complete statement of the action proposed
    to be taken and the facts and circumstances relied upon in support of
    the proposed action.
        (2) In the computation of the 30-day period under subsection (a),
    there shall be excluded any day on which either House of Congress is
    not in session because of an adjournment of more than 3 days to a day
    certain.
        (c) Limitations.--(1) In no event may the total amount of funds
    obligated pursuant to this title exceed the total amount authorized to
    be appropriated by this title.
        (2) Funds appropriated pursuant to this title may not be used for
    an item for which Congress has specifically denied funds.
    SEC. 3122. LIMITS ON MINOR CONSTRUCTION PROJECTS.
        (a) Authority.--The Secretary of Energy may carry out any minor
    construction project using operation and maintenance funds, or
    facilities and infrastructure funds, authorized by this title.
        (b) Annual Report.--The Secretary shall submit to the congressional
    defense committees on an annual basis a report on each exercise of the
    authority in subsection (a) during the preceding year. Each report
    shall provide a brief description of each minor construction project
    covered by the report.
        (c) Cost Variation Reports to Congressional Committees.--If, at any
    time during the construction of any minor construction project
    authorized by this title, the estimated cost of the project is revised
    and the revised cost of the project exceeds $5,000,000, the Secretary
    shall immediately submit to the congressional defense committees a
    report explaining the reasons for the cost variation.
        (d) Minor Construction Project Defined.--In this section, the term
    ``minor construction project'' means any plant project not specifically
    authorized by law if the approved total estimated cost of the plant
    project does not exceed $5,000,000.

    SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

        (a) In General.--(1) Except as provided in paragraph (2),
    construction on a construction project may not be started or additional
    obligations incurred in connection with the project above the total
    estimated cost, whenever the current estimated cost of the construction
    project, authorized by section 3101, 3102, or 3103, or which is in
    support of national security programs of the Department of Energy and
    was authorized by any previous Act, exceeds by more than 25 percent the
    higher of--
            (A) the amount authorized for the project; or
            (B) the amount of the total estimated cost for the project as
        shown in the most recent budget justification data submitted to
        Congress.
        (2) An action described in paragraph (1) may be taken if--
            (A) the Secretary of Energy has submitted to the congressional
        defense committees a report on the actions and the circumstances
        making such action necessary; and
            (B) a period of 30 days has elapsed after the date on which the
        report is received by the committees.
        (3) In the computation of the 30-day period under paragraph (2),
    there is excluded any day on which either House of Congress is not in
    session because of an adjournment of more than 3 days to a day certain.
        (b) Exception.--Subsection (a) does not apply to a construction
    project with a current estimated cost of less than $5,000,000.

    SEC. 3124. FUND TRANSFER AUTHORITY.

        (a) Transfer to Other Federal Agencies.--The Secretary of Energy
    may transfer funds authorized to be appropriated to the Department of
    Energy pursuant to this title to other Federal agencies for the
    performance of work for which the funds were authorized. Funds so
    transferred may be merged with and be available for the same purposes
    and for the same time period as the authorizations of the Federal
    agency to which the amounts are transferred.
        (b) Transfer Within Department of Energy.--(1) Subject to paragraph
    (2), the Secretary of Energy may transfer funds authorized to be
    appropriated to the Department of Energy pursuant to this title between
    any such authorizations. Amounts of authorizations so transferred may
    be merged with and be available for the same purposes and for the same
    period as the authorization to which the amounts are transferred.
        (2) Not more than 5 percent of any such authorization may be
    transferred between authorizations under paragraph (1). No such
    authorization may be increased or decreased by more than 5 percent by a
    transfer under such paragraph.
        (c) Limitations.--The authority provided by this subsection to
    transfer authorizations--
            (1) may be used only to provide funds for items relating to
        activities necessary for national security programs that have a
        higher priority than the items from which the funds are
        transferred; and
            (2) may not be used to provide funds for an item for which
        Congress has specifically denied funds.
        (d) Notice to Congress.--The Secretary of Energy shall promptly
    notify the Committees on Armed Services of the Senate and House of
    Representatives of any transfer of funds to or from authorizations
    under this title.
    SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.
        (a) Requirement of Conceptual Design.--(1) Subject to paragraph (2)
    and except as provided in paragraph (3), before submitting to Congress
    a request for funds for a construction project that is in support of a
    national security program of the Department of Energy, the Secretary of
    Energy shall complete a conceptual design for that project.
        (2) If the estimated cost of completing a conceptual design for a
    construction project exceeds $3,000,000, the Secretary shall submit to
    Congress a request for funds for the conceptual design before
    submitting a request for funds for the construction project.
        (3) The requirement in paragraph (1) does not apply to a request
    for funds--
            (A) for a minor construction project the total estimated cost
        of which is less than $5,000,000; or
            (B) for emergency planning, design, and construction activities
        under section 3126.
        (b) Authority for Construction Design.--(1) Within the amounts
    authorized by this title, the Secretary of Energy may carry out
    construction design (including architectural and engineering services)
    in connection with any proposed construction project if the total
    estimated cost for such design does not exceed $600,000.
        (2) If the total estimated cost for construction design in
    connection with any construction project exceeds $600,000, funds for
    that design must be specifically authorized by law.
    SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION
    ACTIVITIES.
        (a) Authority.--The Secretary of Energy may use any funds available
    to the Department of Energy pursuant to an authorization in this title,
    including funds authorized to be appropriated for advance planning,
    engineering, and construction design, and for plant projects, under
    sections 3101, 3102, 3103, and 3104 to perform planning, design, and
    construction activities for any Department of Energy national security
    program construction project that, as determined by the Secretary, must
    proceed expeditiously in order to protect public health and safety, to
    meet the needs of national defense, or to protect property.
        (b) Limitation.--The Secretary may not exercise the authority under
    subsection (a) in the case of any construction project until the
    Secretary has submitted to the congressional defense committees a
    report on the activities that the Secretary intends to carry out under
    this section and the circumstances making those activities necessary.
        (c) Specific Authority.--The requirement of section 3125(b)(2) does
    not apply to emergency planning, design, and construction activities
    conducted under this section.
    SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE
    DEPARTMENT OF ENERGY.
        Subject to the provisions of appropriation Acts and section 3121,
    amounts appropriated pursuant to this title for management and support
    activities and for general plant projects are available for use, when
    necessary, in connection with all national security programs of the
    Department of Energy.

    SEC. 3128. AVAILABILITY OF FUNDS.

        (a) In General.--Except as provided in subsection (b), when so
    specified in an appropriations Act, amounts appropriated for operation
    and maintenance or for plant projects may remain available until
    expended.
        (b) Exception for Program Direction Funds.--Amounts appropriated
    for program direction pursuant to an authorization of appropriations in
    subtitle A shall remain available to be expended only until the end of
    fiscal year 2003.
    SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.
        (a) Transfer Authority for Defense Environmental Management
    Funds.--The Secretary of Energy shall provide the manager of each field
    office of the Department of Energy with the authority to transfer
    defense environmental management funds from a program or project under
    the jurisdiction of that office to another such program or project.
        (b) Limitations.--(1) Not more than three transfers may be made to
    or from any program or project under subsection (a) in a fiscal year.
        (2) The amount transferred to or from a program or project in any
    one transfer under subsection (a) may not exceed $5,000,000.
        (3) A transfer may not be carried out by a manager of a field
    office under subsection (a) unless the manager determines that the
    transfer is necessary--
            (A) to address a risk to health, safety, or the environment; or
            (B) to assure the most efficient use of defense environmental
        management funds at the field office.
        (4) Funds transferred pursuant to subsection (a) may not be used
    for an item for which Congress has specifically denied funds or for a
    new program or project that has not been authorized by Congress.
        (c) Exemption From Reprogramming Requirements.--The requirements of
    section 3121 shall not apply to transfers of funds pursuant to
    subsection (a).
        (d) Notification.--The Secretary, acting through the Assistant
    Secretary of Energy for Environmental Management, shall notify Congress
    of any transfer of funds pursuant to subsection (a) not later than 30
    days after such transfer occurs.
        (e) Definitions.--In this section:
            (1) The term ``program or project'' means, with respect to a
        field office of the Department of Energy, any of the following:
                (A) A program referred to or a project listed in paragraph
            (2) or (3) of section 3102(a).
                (B) A program or project not described in subparagraph (A)
            that is for environmental restoration or waste management
            activities necessary for national security programs of the
            Department, that is being carried out by that office, and for
            which defense environmental management funds have been
            authorized and appropriated before the date of the enactment of
            this Act.
            (2) The term ``defense environmental management funds'' means
        funds appropriated to the Department of Energy pursuant to an
        authorization for carrying out environmental restoration and waste
        management activities necessary for national security programs.
        (f) Duration of Authority.--The managers of the field offices of
    the Department may exercise the authority provided under subsection (a)
    during the period beginning on October 1, 2001, and ending on September
    30, 2002.

    SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

        (a) Transfer Authority for Weapons Activities Funds.--The Secretary
    of Energy shall provide the manager of each field office of the
    Department of Energy with the authority to transfer weapons activities
    funds from a program or project under the jurisdiction of that office
    to another such program or project.
        (b) Limitations.--(1) Not more than one transfer may be made to or
    from any program or project under subsection (a) in a fiscal year.
        (2) The amount transferred to or from a program or project in any
    one transfer under subsection (a) may not exceed $5,000,000.
        (3) A transfer may not be carried out by a manager of a field
    office under subsection (a) unless the manager determines that the
    transfer--
            (A) is necessary to address a risk to health, safety, or the
        environment; or
            (B) will result in cost savings and efficiencies.
        (4) A transfer may not be carried out by a manager of a field
    office under subsection (a) to cover a cost overrun or scheduling delay
    for any program or project.
        (5) Funds transferred pursuant to subsection (a) may not be used
    for an item for which Congress has specifically denied funds or for a
    new program or project that has not been authorized by Congress.
        (c) Exemption From Reprogramming Requirements.--The requirements of
    section 3121 shall not apply to transfers of funds pursuant to
    subsection (a).
        (d) Notification.--The Secretary, acting through the Administrator
    for Nuclear Security, shall notify Congress of any transfer of funds
    pursuant to subsection (a) not later than 30 days after such transfer
    occurs.
        (e) Definitions.--In this section:
            (1) The term ``program or project'' means, with respect to a
        field office of the Department of Energy, any of the following:
                (A) A program referred to or a project listed in section
            3101(1).
                (B) A program or project not described in subparagraph (A)
            that is for weapons activities necessary for national security
            programs of the Department, that is being carried out by that
            office, and for which weapons activities funds have been
            authorized and appropriated before the date of the enactment of
            this Act.
            (2) The term ``weapons activities funds'' means funds
        appropriated to the Department of Energy pursuant to an
        authorization for carrying out weapons activities necessary for
        national security programs.
        (f) Duration of Authority.--The managers of the field offices of
    the Department may exercise the authority provided under subsection (a)
    during the period beginning on October 1, 2001, and ending on September
    30, 2002.

       Subtitle C--Program Authorizations, Restrictions, and Limitations

    SEC. 3131. CONSOLIDATION OF NUCLEAR CITIES INITIATIVE PROGRAM WITH
    INITIATIVES FOR PROLIFERATION PREVENTION PROGRAM.
        The Administrator for Nuclear Security shall consolidate the
    Nuclear Cities Initiative program with the Initiatives for
    Proliferation Prevention program under a single management line.

    SEC. 3132. NUCLEAR CITIES INITIATIVE.

        (a) Limitations on Use of Funds.--No funds authorized to be
    appropriated for the Nuclear Cities Initiative after fiscal year 2001
    may be obligated or expended with respect to more than three nuclear
    cities, or more than two serial production facilities in Russia, until
    30 days after the Administrator for Nuclear Security submits to the
    appropriate congressional committees an agreement signed by the Russian
    Federation on access under the Nuclear Cities Initiative to the ten
    closed nuclear cities and four serial production facilities of the
    Nuclear Cities Initiative.
        (b) Annual Report.--(1) Not later than the first Monday in February
    each year, the Administrator shall submit to the appropriate
    congressional committees a report on financial and programmatic
    activities with respect to the Nuclear Cities Initiative during the
    preceding fiscal year.
        (2) Each report shall include, for the fiscal year covered by such
    report, the following:
            (A) A list of each project that is or was completed, ongoing,
        or planned under the Nuclear Cities Initiative during such fiscal
        year.
            (B) For each project listed under subparagraph (A),
        information, current as of the end of such fiscal year, on the
        following:
                (i) The purpose of such project.
                (ii) The budget for such project.
                (iii) The life-cycle costs of such project.
                (iv) Participants in such project.
                (v) The commercial viability of such project.
                (vi) The number of jobs in Russia created or to be created
            by or through such project.
                (vii) Of the total amount of funds spent on such project,
            the percentage of such amount spent in the United States and
            the percentage of such amount spent overseas.
            (C) A certification by the Administrator that each project
        listed under subparagraph (A) did contribute, is contributing, or
        will contribute, as the case may be, to the downsizing of the
        nuclear weapons complex in Russia, together with a description of
        the evidence utilized to make such certification.
        (c) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term
        ``appropriate congressional committees'' means the Committee on
        Armed Services of the Senate and the Committee on Armed Services of
        the House of Representatives.
            (2) Nuclear cities initiative.--The term ``Nuclear Cities
        Initiative'' means the initiative arising pursuant to the March
        1998 discussion between the Vice President of the United States and
        the Prime Minister of the Russian Federation and between the
        Secretary of Energy of the United States and the Minister of Atomic
        Energy of the Russian Federation.
            (3) Nuclear city.--The term ``nuclear city'' means any of the
        nuclear cities within the complex of the Russia Ministry of Atomic
        Energy (MINATOM) as follows:
                (A) Sarov (Arzamas-16 and Avangard).
                (B) Zarechnyy (Penza-19).
                (C) Novoural'sk (Sverdlovsk-44).
                (D) Lesnoy (Sverdlovsk-45).
                (E) Ozersk (Chelyabinsk-65).
                (F) Snezhinsk (Chelyabinsk-70).
                (G) Trechgornyy (Zlatoust-36).
                (H) Seversk (Tomsk-7).
                (I) Zhelenznogorsk (Krasnoyarsk-26).
                (J) Zelenogorsk (Krasnoyarsk-45).
    SEC. 3133. LIMITATION ON AVAILABILITY OF FUNDS FOR WEAPONS ACTIVITIES
    FOR FACILITIES AND INFRASTRUCTURE.
        Not more than 50 percent of the funds authorized to be appropriated
    by section 3101(a)(1)(D) for the National Nuclear Security
    Administration for weapons activities for facilities and infrastructure
    may be obligated or expended until the Administrator for Nuclear
    Security submits to the congressional defense committees a report
    setting forth the following:
            (1) Criteria for the selection of projects to be carried out
        using such funds.
            (2) Criteria for establishing priorities among projects so
        selected.
            (3) A list of the projects so selected, including the priority
        assigned to each such project.
    SEC. 3134. LIMITATION ON AVAILABILITY OF FUNDS FOR OTHER DEFENSE
    ACTIVITIES FOR NATIONAL SECURITY PROGRAMS ADMINISTRATIVE SUPPORT.
        Not more than $5,000,000 of the funds authorized to be appropriated
    by section 3103(a)(8) for other defense activities for national
    security programs administrative support may be obligated or expended
    until the latest of the following:
            (1) The date on which the Secretary of Energy submits to
        Congress a report setting forth the purposes for which the
        Secretary plans to obligate and expend such funds.
            (2) The date on which the Administrator for Nuclear Security
        submits to Congress the future-years nuclear security program for
        fiscal year 2002 required by section 3253 of the National Nuclear
        Security Administration Act (title XXXII of Public Law 106-65; 50
        U.S.C. 2453).
            (3) The date on which the Secretary of Energy submits to
        Congress the report on the feasibility of using an energy savings
        performance contract mechanism to offset, or possibly cover, the
        cost of a new office building for the Albuquerque operations office
        of the Department of Energy, as completed by the Secretary in
        accordance with the directive contained in Senate Report 106-50
        (the report of the Committee on Armed Services of the Senate to
        accompany the bill S. 1059 of the One Hundred Sixth Congress,
        relating to the National Defense Authorization Act for Fiscal Year
        2000; p. 470).
    SEC. 3135. TERMINATION DATE OF OFFICE OF RIVER PROTECTION, RICHLAND,
    WASHINGTON.
        Subsection (f) of section 3139 of the Strom Thurmond National
    Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112
    Stat. 2250), as amended by section 3141 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-462), is amended to read as
    follows:
        ``(f) Termination.--(1) The Office shall terminate on the later to
    occur of the following dates:
            ``(A) September 30, 2010.
            ``(B) The date on which the Assistant Secretary of Energy for
        Environmental Management determines, in consultation with the head
        of the Office, that continuation of the Office is no longer
        necessary to carry out the responsibilities of the Department of
        Energy under the Tri-Party Agreement.
        ``(2) The Assistant Secretary shall notify, in writing, the
    committees referred to in subsection (d) of a determination under
    paragraph (1).
        ``(3) In this subsection, the term `Tri-Party Agreement' means the
    Hanford Federal Facility Agreement and Consent Order entered into among
    the Department of Energy, the Environmental Protection Agency, and the
    State of Washington Department of Ecology.''.
    SEC. 3136. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS
    NATIONAL LABORATORY, NEW MEXICO.
        (a) Support for Fiscal 2002.--From amounts appropriated or
    otherwise made available to the Secretary of Energy by this title--
            (1) $6,900,000 shall be available for payment by the Secretary
        for fiscal year 2002 to the Los Alamos National Laboratory
        Foundation, a not-for-profit foundation chartered in accordance
        with section 3167(a) of the National Defense Authorization Act for
        Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2052); and
            (2) $8,000,000 shall be available for extension of the contract
        between the Department of Energy and the Los Alamos Public Schools
        through fiscal year 2002.
        (b) Support for Fiscal 2003.--Subject to the availability of
    appropriations, the Secretary is authorized to--
            (1) make payment for fiscal year 2003 similar to the payment
        referred to in subsection (a)(1); and
            (2) provide for a contract extension through fiscal year 2003
        similar to the contract extension referred to in subsection (a)(2).
        (c) Use of Funds.--The foundation referred to in subsection (a)(1)
    shall--
            (1) utilize funds provided under this section as a contribution
        to the endowment fund for the foundation; and
            (2) use the income generated from investments in the endowment
        fund that are attributable to payments made under this section to
        fund programs to support the educational needs of children in
        public schools in the vicinity of Los Alamos National Laboratory.
        (d) Report.--Not later than March 1, 2002, the Secretary shall
    submit to the congressional defense committees a report setting forth
    the following:
            (1) An evaluation of the requirements for continued payments
        beyond fiscal year 2003 into the endowment fund of the foundation
        referred to in subsection (a) to enable the foundation to meet the
        goals of the Department to support the recruitment and retention of
        staff at the Los Alamos National Laboratory.
            (2) The Secretary's recommendations for any further support
        beyond fiscal year 2003 directly to the Los Alamos Public Schools.
    SEC. 3137. REPORTS ON ACHIEVEMENT OF MILESTONES FOR NATIONAL IGNITION
    FACILITY.
        (a) Notification of Achievement.--The Administrator for Nuclear
    Security shall notify the congressional defense committees when the
    National Ignition Facility (NIF), Lawrence Livermore National
    Laboratory, Livermore, California, achieves each Level I milestone and
    Level II milestone for the National Ignition Facility.
        (b) Report on Failure of Timely Achievement.--Not later than 10
    days after the date on which the National Ignition Facility fails to
    achieve a Level I milestone or Level II milestone for the National
    Ignition Facility in a timely manner, the Administrator shall submit to
    the congressional defense committees a report on such failure. Each
    such report shall include--
            (1) a statement of the failure of the National Ignition
        Facility to achieve the milestone concerned in a timely manner;
            (2) an explanation for the failure; and
            (3) either--
                (A) an estimate when that milestone will be achieved; or
                (B) if that milestone will not be achieved--
                    (i) a statement that that milestone will not be
                achieved;
                    (ii) an explanation why that milestone will not be
                achieved; and
                    (iii) the implications for the overall scope, schedule,
                and budget of the National Ignition Facility project of not
                achieving that milestone.
        (c) Milestones.--For purposes of this section, the Level I
    milestones and Level II milestones for the National Ignition Facility
    are as established in the August 2000 revised National Ignition
    Facility baseline document.
        (d) Termination.--The requirements of this section shall terminate
    on September 30, 2004.

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

    SEC. 3141. ESTABLISHMENT OF PRINCIPAL DEPUTY ADMINISTRATOR OF NATIONAL
    NUCLEAR SECURITY ADMINISTRATION.
        (a) Establishment.--Subtitle A of the National Nuclear Security
    Administration Act (title XXXII of Public Law 106-65; 50 U.S.C. 2401 et
    seq.) is amended--
            (1) by redesignating section 3213 as section 3220 and
        transferring such section, as so redesignated, to the end of that
        subtitle; and
            (2) by inserting after section 3212 the following new section
        3213:
    ``SEC. 3213. PRINCIPAL DEPUTY ADMINISTRATOR FOR NUCLEAR SECURITY.
        ``(a) In General.--(1) There is in the Administration a Principal
    Deputy Administrator, who is appointed by the President, by and with
    the advice and consent of the Senate.
        ``(2) The Principal Deputy Administrator shall be appointed from
    among persons who have extensive background in organizational
    management and are well qualified to manage the nuclear weapons,
    nonproliferation, and materials disposition programs of the
    Administration in a manner that advances and protects the national
    security of the United States.
        ``(b) Duties.--Subject to the authority, direction, and control of
    the Administrator, the Principal Deputy Administrator shall perform
    such duties and exercise such powers as the Administrator may
    prescribe, including the coordination of activities among the elements
    of the Administration. The Principal Deputy Administrator shall act
    for, and exercise the powers of, the Administrator when the
    Administrator is disabled or the position of Administrator is
    vacant.''.
        (b) Pay Level.--Section 5315 of title 5, United States Code, is
    amended--
            (1) by inserting before the item relating to Deputy
        Administrators of the National Nuclear Security Administration the
        following new item:
            ``Principal Deputy Administrator, National Nuclear Security
        Administration.''; and
            (2) by inserting ``Additional'' before ``Deputy Administrators
        of the National Nuclear Security Administration''.
        (c) Clerical Amendments.--The table of contents preceding section
    3201 of such Act is amended--
            (1) by striking the item relating to section 3213 and inserting
        the following:
    ``Sec. 3213. Principal Deputy Administrator for National Security.'';

        and
            (2) by inserting after the item relating to section 3218 the
        following new items:
    ``Sec. 3219. Scope of authority of Secretary of Energy to modify
    organization of Administration.
    ``Sec. 3220. Status of Administration and contractor personnel within
    Department of Energy.''.
    SEC. 3142. ELIMINATION OF REQUIREMENT THAT NATIONAL SECURITY
    LABORATORIES AND NUCLEAR WEAPONS PRODUCTION FACILITIES REPORT TO DEPUTY
    ADMINISTRATOR FOR DEFENSE PROGRAMS.
        Section 3214 of the National Nuclear Security Administration Act
    (title XXXII of Public Law 106-65; 113 Stat. 959; 50 U.S.C. 2404) is
    amended by striking subsection (c).
    SEC. 3143. REPEAL OF DUPLICATIVE PROVISION RELATING TO DUAL OFFICE
    HOLDING BY PERSONNEL OF NATIONAL NUCLEAR SECURITY ADMINISTRATION.
        Section 3245 of the National Nuclear Security Administration Act
    (50 U.S.C. 2443), as added by section 315 of the Energy and Water
    Development Appropriations Act, 2001 (as enacted into law by Public Law
    106-377; 114 Stat. 1441B-23), is repealed.
    SEC. 3144. REPORT ON ADEQUACY OF FEDERAL PAY AND HIRING AUTHORITIES TO
    MEET PERSONNEL REQUIREMENTS OF NATIONAL NUCLEAR SECURITY
    ADMINISTRATION.
        (a) Report Required.--Not later than March 1, 2002, the
    Administrator for Nuclear Security shall submit to the congressional
    committees specified in subsection (b) a report on the adequacy of
    Federal pay and hiring authorities to meet the personnel requirements
    of the National Nuclear Security Administration. The report shall
    include the following:
            (1) A description of the Federal pay and hiring authorities
        available to the Administrator.
            (2) A description of the Federal pay and hiring authorities
        that are not available to the Administrator, and an explanation why
        such authorities are not available.
            (3) If any Federal pay and hiring authorities referred to in
        paragraph (1) are not being used, an explanation why such
        authorities are not being used.
            (4) An assessment of whether or not existing Federal pay and
        hiring authorities are adequate or inadequate to meet the personnel
        requirements of the Administration.
            (5) Any recommendations that the Administrator considers
        appropriate for modifications or enhancements of existing Federal
        pay and hiring authorities in order to meet the personnel
        requirements of the Administration.
            (6) Any recommendations that the Administrator considers
        appropriate for new Federal pay and hiring authorities in order to
        meet the personnel requirements of the Administration.
            (7) A plan for structuring the pay and hiring authorities with
        respect to the Federal workforce of the Administration so to ensure
        that such workforce meets applicable requirements of the most
        current five-year program plan for the Administration.
        (b) Specified Committees.--The congressional committees referred to
    in subsection (a) are the following:
            (1) The Committee on Armed Services and the Committee on
        Governmental Affairs of the Senate.
            (2) The Committee on Armed Services and the Committee on
        Government Reform of the House of Representatives.

                           Subtitle E--Other Matters

    SEC. 3151. IMPROVEMENTS TO ENERGY EMPLOYEES OCCUPATIONAL ILLNESS
    COMPENSATION PROGRAM.
        (a) Amendments to Energy Employees Program.--The Energy Employees
    Occupational Illness Compensation Program Act of 2000 (title XXXVI 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-394);
    42 U.S.C. 7384 et seq.) is amended as follows:
            (1) Certain leukemia as specified cancer.--Section 3621(17)
        (114 Stat. 1654A-502; 42 U.S.C. 7384l(17)), as amended by section
        2403 of the Supplemental Appropriations Act, 2001 (Public Law 107-
        20; 115 Stat. 175), is further amended by adding at the end the
        following new subparagraph:
                ``(D) Leukemia (other than chronic lymphocytic leukemia),
            if initial occupational exposure occurred before 21 years of
            age and onset occurred more than two years after initial
            occupational exposure.''.
            (2) Additional members of special exposure cohort.--Section
        3626(b) (114 Stat. 1654A-505; 42 U.S.C. 7384q(b)) is amended in the
        matter preceding paragraph (1) by inserting after ``Department of
        Energy facility'' the following: ``, or at an atomic weapons
        employer facility,''.
            (3) Establishment of chronic silicosis.--Section 3627(e)(2)(A)
        (114 Stat. 1654A-506; 42 U.S.C. 7384r(e)(2)(A)) is amended by
        striking ``category 1/1'' and inserting ``category 1/0''.
            (4) Survivors.--
                (A) Section 3628(e) (114 Stat. 1654A-506; 42 U.S.C.
            7384s(e)) is amended to read as follows:
        ``(e) Payments in the Case of Deceased Persons.--(1) In the case of
    a covered employee who is deceased at the time of payment of
    compensation under this section, whether or not the death is the result
    of the covered employee's occupational illness, such payment may be
    made only as follows:
            ``(A) If the covered employee is survived by a spouse who is
        living at the time of payment, such payment shall be made to such
        surviving spouse.
            ``(B) If there is no surviving spouse described in subparagraph
        (A), such payment shall be made in equal shares to all children of
        the covered employee who are living at the time of payment.
            ``(C) If there is no surviving spouse described in subparagraph
        (A) and if there are no children described in subparagraph (B),
        such payment shall be made in equal shares to the parents of the
        covered employee who are living at the time of payment.
            ``(D) If there is no surviving spouse described in subparagraph
        (A), and if there are no children described in subparagraph (B) or
        parents described in subparagraph (C), such payment shall be made
        in equal shares to all grandchildren of the covered employee who
        are living at the time of payment.
            ``(E) If there is no surviving spouse described in subparagraph
        (A), and if there are no children described in subparagraph (B),
        parents described in subparagraph (C), or grandchildren described
        in subparagraph (D), then such payment shall be made in equal
        shares to the grandparents of the covered employee who are living
        at the time of payment.
            ``(F) Notwithstanding the other provisions of this paragraph,
        if there is--
                ``(i) a surviving spouse described in subparagraph (A); and
                ``(ii) at least one child of the covered employee who is
            living and a minor at the time of payment and who is not a
            recognized natural child or adopted child of such surviving
            spouse,
        then half of such payment shall be made to such surviving spouse,
        and the other half of such payment shall be made in equal shares to
        each child of the covered employee who is living and a minor at the
        time of payment.
        ``(2) If a covered employee eligible for payment dies before filing
    a claim under this title, a survivor of that employee who may receive
    payment under paragraph (1) may file a claim for such payment.
        ``(3) For purposes of this subsection--
            ``(A) the `spouse' of an individual is a wife or husband of
        that individual who was married to that individual for at least one
        year immediately before the death of that individual;
            ``(B) a `child' includes a recognized natural child, a
        stepchild who lived with an individual in a regular parent-child
        relationship, and an adopted child;
            ``(C) a `parent' includes fathers and mothers through adoption;
            ``(D) a `grandchild' of an individual is a child of a child of
        that individual; and
            ``(E) a `grandparent' of an individual is a parent of a parent
        of that individual.''.
                (B) Section 3630(e) (114 Stat. 1654A-507; 42 U.S.C.
            7384u(e)) is amended to read as follows:
        ``(e) Payments in the Case of Deceased Persons.--(1) In the case of
    a covered employee who is deceased at the time of payment of
    compensation under this section, whether or not the death is the result
    of the covered employee's occupational illness, such payment may be
    made only as follows:
            ``(A) If the covered employee is survived by a spouse who is
        living at the time of payment, such payment shall be made to such
        surviving spouse.
            ``(B) If there is no surviving spouse described in subparagraph
        (A), such payment shall be made in equal shares to all children of
        the covered employee who are living at the time of payment.
            ``(C) If there is no surviving spouse described in subparagraph
        (A) and if there are no children described in subparagraph (B),
        such payment shall be made in equal shares to the parents of the
        covered employee who are living at the time of payment.
            ``(D) If there is no surviving spouse described in subparagraph
        (A), and if there are no children described in subparagraph (B) or
        parents described in subparagraph (C), such payment shall be made
        in equal shares to all grandchildren of the covered employee who
        are living at the time of payment.
            ``(E) If there is no surviving spouse described in subparagraph
        (A), and if there are no children described in subparagraph (B),
        parents described in subparagraph (C), or grandchildren described
        in subparagraph (D), then such payment shall be made in equal
        shares to the grandparents of the covered employee who are living
        at the time of payment.
            ``(F) Notwithstanding the other provisions of this paragraph,
        if there is--
                ``(i) a surviving spouse described in subparagraph (A); and
                ``(ii) at least one child of the covered employee who is
            living and a minor at the time of payment and who is not a
            recognized natural child or adopted child of such surviving
            spouse,
        then half of such payment shall be made to such surviving spouse,
        and the other half of such payment shall be made in equal shares to
        each child of the covered employee who is living and a minor at the
        time of payment.
        ``(2) If a covered employee eligible for payment dies before filing
    a claim under this title, a survivor of that employee who may receive
    payment under paragraph (1) may file a claim for such payment.
        ``(3) For purposes of this subsection--
            ``(A) the `spouse' of an individual is a wife or husband of
        that individual who was married to that individual for at least one
        year immediately before the death of that individual;
            ``(B) a `child' includes a recognized natural child, a
        stepchild who lived with an individual in a regular parent-child
        relationship, and an adopted child;
            ``(C) a `parent' includes fathers and mothers through adoption;
            ``(D) a `grandchild' of an individual is a child of a child of
        that individual; and
            ``(E) a `grandparent' of an individual is a parent of a parent
        of that individual.''.
                (C) Paragraph (18) of section 3621 (114 Stat. 1654A-502; 42
            U.S.C. 7384l) is repealed.
                (D) The amendments made by this paragraph shall take effect
            on July 1, 2001.
            (5) Election of remedies.--Section 3645 (114 Stat. 1654A-510;
        42 U.S.C. 7385d) is amended by amending subsections (a) through (d)
        to read as follows:
        ``(a) Effect of Tort Cases Filed Before Enactment of Original
    Law.--(1) Except as provided in paragraph (2), if an otherwise eligible
    individual filed a tort case specified in subsection (d) before October
    30, 2000, such individual shall be eligible for compensation and
    benefits under subtitle B.
        ``(2) If such tort case remained pending as of the date of the
    enactment of the National Defense Authorization Act for Fiscal Year
    2002, and such individual does not dismiss such tort case before
    December 31, 2003, such individual shall not be eligible for such
    compensation or benefits.
        ``(b) Effect of Tort Cases Filed Between Enactment of Original Law
    and Enactment of 2001 Amendments.--(1) Except as provided in paragraph
    (2), if an otherwise eligible individual filed a tort case specified in
    subsection (d) during the period beginning on October 30, 2000, and
    ending on the date of the enactment of the National Defense
    Authorization Act for Fiscal Year 2002, such individual shall not be
    eligible for such compensation or benefits.
        ``(2) If such individual dismisses such tort case on or before the
    last permissible date specified in paragraph (3), such individual shall
    be eligible for such compensation or benefits.
        ``(3) The last permissible date referred to in paragraph (2) is the
    later of the following dates:
            ``(A) April 30, 2003.
            ``(B) The date that is 30 months after the date the individual
        first becomes aware that an illness covered by subtitle B of a
        covered employee may be connected to the exposure of the covered
        employee in the performance of duty under section 3623.
        ``(c) Effect of Tort Cases Filed After Enactment of 2001
    Amendments.--(1) If an otherwise eligible individual files a tort case
    specified in subsection (d) after the date of the enactment of the
    National Defense Authorization Act for Fiscal Year 2002, such
    individual shall not be eligible for such compensation or benefits if a
    final court decision is entered against such individual in such tort
    case.
        ``(2) If such a final court decision is not entered, such
    individual shall nonetheless not be eligible for such compensation or
    benefits, except as follows: If such individual dismisses such tort
    case on or before the last permissible date specified in paragraph (3),
    such individual shall be eligible for such compensation and benefits.
        ``(3) The last permissible date referred to in paragraph (2) is the
    later of the following dates:
            ``(A) April 30, 2003.
            ``(B) The date that is 30 months after the date the individual
        first becomes aware that an illness covered by subtitle B of a
        covered employee may be connected to the exposure of the covered
        employee in the performance of duty under section 3623.
        ``(d) Covered Tort Cases.--A tort case specified in this subsection
    is a tort case alleging a claim referred to in section 3643 against a
    beryllium vendor or atomic weapons employer.''.
            (6) Attorney fees.--Section 3648 (114 Stat. 1654A-511; 42
        U.S.C. 7385g) is amended--
                (A) in subsection (a), by inserting after ``the claim of an
            individual'' the following: ``for payment of lump-sum
            compensation'';
                (B) in subsection (b)(1), by inserting after ``initial
            claim'' the following: ``for payment of lump-sum
            compensation'';
                (C) in subsection (b)(2), by striking ``with respect to any
            claim'' and all that follows through the period at the end and
            inserting ``with respect to objections to a recommended
            decision denying payment of lump-sum compensation.'';
                (D) by redesignating subsection (c) as subsection (d); and
                (E) by inserting after subsection (b) the following new
            subsection (c):
        ``(c) Inapplicability to Other Services.--This section shall not
    apply with respect to services rendered that are not in connection with
    such a claim for payment of lump-sum compensation.''.
        (b) Study of Residual Contamination of Facilities.--(1) The
    National Institute for Occupational Safety and Health shall, with the
    cooperation of the Department of Energy and the Department of Labor,
    carry out a study on the following matters:
            (A) Whether or not significant contamination remained in any
        atomic weapons employer facility or facility of a beryllium vendor
        after such facility discontinued activities relating to the
        production of nuclear weapons.
            (B) If so, whether or not such contamination could have caused
        or substantially contributed to the cancer of a covered employee
        with cancer or a covered beryllium illness, as the case may be.
        (2)(A) The National Institute for Occupational Safety and Health
    shall submit to the applicable congressional committees the following
    reports:
            (i) Not later than 180 days after the date of the enactment of
        this Act, a report on the progress made as of the date of the
        report on the study required by paragraph (1).
            (ii) Not later than one year after the date of the enactment of
        this Act, a final report on the study required by paragraph (1).
        (B) In this paragraph, the term ``applicable congressional
    committees'' means--
            (i) the Committee on Armed Services, Committee on
        Appropriations, Committee on the Judiciary, and Committee on
        Health, Education, Labor, and Pensions of the Senate; and
            (ii) the Committee on Armed Services, Committee on
        Appropriations, Committee on the Judiciary, and Committee on
        Education and the Workforce of the House of Representatives.
        (3) Amounts for the study under paragraph (1) shall be derived from
    amounts authorized to be appropriated by section 3614(a) of the Energy
    Employees Occupational Illness Compensation Program Act of 2000 (114
    Stat. 1654A-498).
        (4) In this subsection:
            (A) The terms ``atomic weapons employer facility'', ``beryllium
        vendor'', ``covered employee with cancer'', and ``covered beryllium
        illness'' have the meanings given those terms in section 3621 of
        the Energy Employees Occupational Illness Compensation Program Act
        of 2000 (114 Stat. 1654A-498; 42 U.S.C. 7384l).
            (B) The term ``contamination'' means the presence of any--
                (i) material that emitted radiation and was used in the
            production of an atomic weapon, excluding uranium mining and
            milling; or
                (ii) beryllium dust, particles, or vapor,
        exposure to which could cause or substantially contribute to the
        cancer of a covered employee with cancer or a covered beryllium
        illness, as the case may be.
    SEC. 3152. DEPARTMENT OF ENERGY COUNTERINTELLIGENCE POLYGRAPH PROGRAM.
        (a) New Counterintelligence Polygraph Program Required.--The
    Secretary of Energy shall carry out, under regulations prescribed under
    this section, a new counterintelligence polygraph program for the
    Department of Energy. The purpose of the new program is to minimize the
    potential for release or disclosure of classified data, materials, or
    information.
        (b) Authorities and Limitations.--(1) The Secretary shall prescribe
    regulations for the new counterintelligence polygraph program required
    by subsection (a) in accordance with the provisions of subchapter II of
    chapter 5 of title 5, United States Code (commonly referred to as the
    Administrative Procedures Act).
        (2) In prescribing regulations for the new program, the Secretary
    shall take into account the results of the Polygraph Review.
        (3) Not later than six months after obtaining the results of the
    Polygraph Review, the Secretary shall issue a notice of proposed
    rulemaking for the new program.
        (c) Repeal of Existing Polygraph Program.--Effective 30 days after
    the Secretary submits to the congressional defense committees the
    Secretary's certification that the final rule for the new
    counterintelligence polygraph program required by subsection (a) has
    been fully implemented, section 3154 of the Department of Energy
    Facilities Safeguards, Security, and Counterintelligence Enhancement
    Act of 1999 (subtitle D of title XXXI of Public Law 106-65; 42 U.S.C.
    7383h) is repealed.
        (d) Report on Further Enhancement of Personnel Security Program.--
    (1) Not later than January 1, 2003, the Administrator for Nuclear
    Security shall submit to Congress a report setting forth the
    recommendations of the Administrator for any legislative action that
    the Administrator considers appropriate in order to enhance the
    personnel security program of the Department of Energy.
        (2) Any recommendations under paragraph (1) regarding the use of
    polygraphs shall take into account the results of the Polygraph Review.
        (e) Polygraph Review Defined.--In this section, the term
    ``Polygraph Review'' means the review of the Committee to Review the
    Scientific Evidence on the Polygraph of the National Academy of
    Sciences.
    SEC. 3153. ONE-YEAR EXTENSION OF AUTHORITY OF DEPARTMENT OF ENERGY TO
    PAY VOLUNTARY SEPARATION INCENTIVE PAYMENTS.
        (a) In General.--Section 3161(a) of the National Defense
    Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat.
    942; 5 U.S.C. 5597 note) is amended by striking ``January 1, 2003'' and
    inserting ``January 1, 2004''.
        (b) Construction.--The amendment made by subsection (a) may be
    superseded by another provision of law that takes effect after the date
    of the enactment of this Act, and before January 1, 2004, establishing
    a uniform system for providing voluntary separation incentives
    (including a system for requiring approval of plans by the Office of
    Management and Budget) for employees of the Federal Government.
    SEC. 3154. ANNUAL ASSESSMENT AND REPORT ON VULNERABILITY OF DEPARTMENT
    OF ENERGY FACILITIES TO TERRORIST ATTACK.
        (a) In General.--Part C of title VI of the Department of Energy
    Organization Act (42 U.S.C. 7251 et seq.) is amended by adding at the
    end the following new section:

        ``annual assessment and report on vulnerability of facilities to
                                terrorist attack

        ``Sec. 663. (a) The Secretary shall, on an annual basis, conduct a
    comprehensive assessment of the vulnerability of Department facilities
    to terrorist attack.
        ``(b) Not later than January 31 each year, the Secretary shall
    submit to Congress a report on the assessment conducted under
    subsection (a) during the preceding year. Each report shall include the
    results of the assessment covered by such report, together with such
    findings and recommendations as the Secretary considers appropriate.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    that Act is amended by inserting after the item relating to section 662
    the following new item:

    ``Sec. 663. Annual assessment and report on vulnerability of facilities
    to terrorist attack.''.

    SEC. 3155. DISPOSITION OF SURPLUS DEFENSE PLUTONIUM AT SAVANNAH RIVER
    SITE, AIKEN, SOUTH CAROLINA.
        (a) Consultation Required.--The Secretary of Energy shall consult
    with the Governor of the State of South Carolina regarding any
    decisions or plans of the Secretary related to the disposition of
    surplus defense plutonium and defense plutonium materials located at
    the Savannah River Site, Aiken, South Carolina.
        (b) Notice Required.--For each shipment of defense plutonium or
    defense plutonium materials to the Savannah River Site, the Secretary
    shall, not less than 30 days before the commencement of such shipment,
    submit to the congressional defense committees a report providing
    notice of such shipment.
        (c) Plan for Disposition.--The Secretary shall prepare a plan for
    disposal of the surplus defense plutonium and defense plutonium
    materials currently located at the Savannah River Site and for disposal
    of defense plutonium and defense plutonium materials to be shipped to
    the Savannah River Site in the future. The plan shall include the
    following:
            (1) A review of each option considered for such disposal.
            (2) An identification of the preferred option for such
        disposal.
            (3) With respect to the facilities for such disposal that are
        required by the Department of Energy's Record of Decision for the
        Storage and Disposition of Weapons-Usable Fissile Materials Final
        Programmatic Environmental Impact Statement dated January 14,
        1997--
                (A) a statement of the cost of construction and operation
            of such facilities;
                (B) a schedule for the expeditious construction of such
            facilities, including milestones; and
                (C) a firm schedule for funding the cost of such
            facilities.
            (4) A specification of the means by which all such defense
        plutonium and defense plutonium materials will be removed in a
        timely manner from the Savannah River Site for storage or disposal
        elsewhere.
        (d) Plan for Alternative Disposition.--If the Secretary determines
    not to proceed at the Savannah River Site with construction of the
    plutonium immobilization plant, or with the mixed oxide fuel
    fabrication facility, the Secretary shall prepare a plan that
    identifies a disposition path for all defense plutonium and defense
    plutonium materials that would otherwise have been disposed of at such
    plant or such facility, as applicable.
        (e) Submission of Plans.--Not later than February 1, 2002, the
    Secretary shall submit to Congress the plan required by subsection (c)
    (and the plan prepared under subsection (d), if applicable).
        (f) Limitation on Plutonium Shipments.--If the Secretary does not
    submit to Congress the plan required by subsection (c) (and the plan
    prepared under subsection (d), if applicable) by February 1, 2002, the
    Secretary shall be prohibited from shipping defense plutonium or
    defense plutonium materials to the Savannah River Site during the
    period beginning on February 1, 2002, and ending on the date on which
    such plans are submitted to Congress.
        (g) Rule of Construction.--Nothing in this section may be construed
    to prohibit or limit the Secretary from shipping defense plutonium or
    defense plutonium materials to sites other than the Savannah River Site
    during the period referred to in subsection (f) or any other period.
        (h) Annual Report on Funding for Fissile Materials Disposition
    Activities.--The Secretary shall include with the budget justification
    materials submitted to Congress in support of the Department of Energy
    budget for each fiscal year (as submitted with the budget of the
    President under section 1105(a) of title 31, United States Code) a
    report setting forth the extent to which amounts requested for the
    Department for such fiscal year for fissile materials disposition
    activities will enable the Department to meet commitments for the
    disposition of surplus defense plutonium and defense plutonium
    materials located at the Savannah River Site, and for any other fissile
    materials disposition activities, in such fiscal year.
    SEC. 3156. MODIFICATION OF DATE OF REPORT OF PANEL TO ASSESS THE
    RELIABILITY, SAFETY, AND SECURITY OF THE UNITED STATES NUCLEAR
    STOCKPILE.
        Section 3159(d) of the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999 (Public Law 105-261; 42 U.S.C.
    2121 note) is amended by striking ``of each year, beginning with
    1999,'' and inserting ``of 1999 and 2000, and not later than February
    1, 2002,''.

                Subtitle F--Rocky Flats National Wildlife Refuge

    SEC. 3171. SHORT TITLE.

        This subtitle may be cited as the ``Rocky Flats National Wildlife
    Refuge Act of 2001''.

    SEC. 3172. FINDINGS AND PURPOSES.

        (a) Findings.--Congress finds the following:
            (1) The Federal Government, through the Atomic Energy
        Commission, acquired the Rocky Flats site in 1951 and began
        operations there in 1952. The site remains a Department of Energy
        facility. Since 1992, the mission of the Rocky Flats site has
        changed from the production of nuclear weapons components to
        cleanup and closure in a manner that is safe, environmentally and
        socially responsible, physically secure, and cost-effective.
            (2) The majority of the Rocky Flats site has generally remained
        undisturbed since its acquisition by the Federal Government.
            (3) The State of Colorado is experiencing increasing growth and
        development, especially in the metropolitan Denver Front Range area
        in the vicinity of the Rocky Flats site. That growth and
        development reduces the amount of open space and thereby diminishes
        for many metropolitan Denver communities the vistas of the striking
        Front Range mountain backdrop.
            (4) Some areas of the Rocky Flats site contain contamination
        and will require further response action. The national interest
        requires that the ongoing cleanup and closure of the entire site be
        completed safely, effectively, and without unnecessary delay and
        that the site thereafter be retained by the United States and
        managed so as to preserve the value of the site for open space and
        wildlife habitat.
            (5) The Rocky Flats site provides habitat for many wildlife
        species, including a number of threatened and endangered species,
        and is marked by the presence of rare xeric tallgrass prairie plant
        communities. Establishing the site as a unit of the National
        Wildlife Refuge System will promote the preservation and
        enhancement of those resources for present and future generations.
        (b) Purposes.--The purposes of this subtitle are--
            (1) to provide for the establishment of the Rocky Flats site as
        a national wildlife refuge following cleanup and closure of the
        site;
            (2) to create a process for public input on the management of
        the refuge referred to in paragraph (1) before transfer of
        administrative jurisdiction to the Secretary of the Interior; and
            (3) to ensure that the Rocky Flats site is thoroughly and
        completely cleaned up.

    SEC. 3173. DEFINITIONS.

        In this subtitle:
            (1) CERCLA.--The term ``CERCLA'' means the Comprehensive
        Environmental Response, Compensation, and Liability Act of 1980 (42
        U.S.C. 9601 et seq.).
            (2) Cleanup and closure.--The term ``cleanup and closure''
        means the response actions for covered substances carried out at
        Rocky Flats, as required by any of the following:
                (A) The RFCA.
                (B) CERCLA.
                (C) RCRA.
                (D) The Colorado Hazardous Waste Act, 25-15-101 to 25-15-
            327, Colorado Revised Statutes.
            (3) Covered substance.--The term ``covered substance'' means
        any of the following:
                (A) Any hazardous substance, as such term is defined in
            paragraph (14) of section 101 of CERCLA (42 U.S.C. 9601).
                (B) Any pollutant or contaminant, as such term is defined
            in paragraph (33) of such section 101.
                (C) Any petroleum, including crude oil or any fraction
            thereof which is not otherwise specifically listed or
            designated as a hazardous substance under subparagraphs (A)
            through (F) of paragraph (14) of such section 101.
            (4) RCRA.--The term ``RCRA'' means the Solid Waste Disposal Act
        (42 U.S.C. 6901 et seq.), popularly known as the Resource
        Conservation and Recovery Act.
            (5) Refuge.--The term ``refuge'' means the Rocky Flats National
        Wildlife Refuge established under section 3177.
            (6) Response action.--The term ``response action'' means any of
        the following:
                (A) A response, as such term is defined in paragraph (25)
            of section 101 of CERCLA (42 U.S.C. 9601).
                (B) A corrective action under RCRA or under the Colorado
            Hazardous Waste Act, 25-15-101 to 25-15-327, Colorado Revised
            Statutes.
                (C) Any requirement for institutional controls imposed by
            any of the laws referred to in subparagraph (A) or (B).
            (7) RFCA.--The term ``RFCA'' means the Rocky Flats Cleanup
        Agreement, an intergovernmental agreement, dated July 19, 1996,
        among--
                (A) the Department of Energy;
                (B) the Environmental Protection Agency; and
                (C) the Department of Public Health and Environment of the
            State of Colorado.
            (8) Rocky flats.--
                (A) In general.--Except as provided in subparagraph (B),
            the term ``Rocky Flats'' means the Rocky Flats Environmental
            Technology Site, Colorado, a defense nuclear facility, as
            depicted on the map titled ``Rocky Flats Environmental
            Technology Site'', dated October 22, 2001, and available for
            inspection in the appropriate offices of the United States Fish
            and Wildlife Service.
                (B) Exclusions.--The term ``Rocky Flats'' does not
            include--
                    (i) the land and facilities of the Department of
                Energy's National Renewable Energy Laboratory, including
                the acres retained by the Secretary under section 3174(f);
                and
                    (ii) any land and facilities not within the boundaries
                depicted on the map referred to in subparagraph (A).
            (9) Secretary.--The term ``Secretary'' means the Secretary of
        Energy.

    SEC. 3174. FUTURE OWNERSHIP AND MANAGEMENT.

        (a) Federal Ownership.--Except as expressly provided in this
    subtitle, all right, title, and interest of the United States, held on
    or acquired after the date of the enactment of this Act, to land or
    interest therein, including minerals, within the boundaries of Rocky
    Flats shall be retained by the United States.
        (b) Lindsay Ranch.--The structures that comprise the former Lindsay
    Ranch homestead site in the Rock Creek Reserve area of the buffer zone,
    as depicted on the map referred to in section 3173(8)(A), shall be
    permanently preserved and maintained in accordance with the National
    Historic Preservation Act (16 U.S.C. 470 et seq.).
        (c) Prohibition on Annexation.--Neither the Secretary nor the
    Secretary of the Interior shall allow the annexation of land within the
    refuge by any unit of local government.
        (d) Prohibition on Through Roads.--Except as provided in subsection
    (e), no public road shall be constructed through Rocky Flats.
        (e) Transportation Right-of-Way.--
            (1) In general.--
                (A) Availability of land.--On submission of an application
            meeting each of the conditions specified in paragraph (2), the
            Secretary, in consultation with the Secretary of the Interior,
            shall make available land along the eastern boundary of Rocky
            Flats for the sole purpose of transportation improvements along
            Indiana Street.
                (B) Boundaries.--Land made available under this paragraph
            may not extend more than 300 feet from the west edge of the
            Indiana Street right-of-way, as that right-of-way exists as of
            the date of the enactment of this Act.
                (C) Easement or sale.--Land may be made available under
            this paragraph by easement or sale to one or more appropriate
            entities.
                (D) Compliance with applicable law.--Any action under this
            paragraph shall be taken in compliance with applicable law.
            (2) Conditions.--An application referred to in paragraph (1)
        meets the conditions specified in this paragraph if the
        application--
                (A) is submitted by any county, city, or other political
            subdivision of the State of Colorado; and
                (B) includes documentation demonstrating that the
            transportation improvements for which the land is to be made
            available--
                    (i) are carried out so as to minimize adverse effects
                on the management of Rocky Flats as a wildlife refuge; and
                    (ii) are included in the regional transportation plan
                of the metropolitan planning organization designated for
                the Denver metropolitan area under section 5303 of title
                49, United States Code.
        (f) Wind Technology Expansion Area.--The Secretary shall retain,
    for the use of the National Renewable Energy Laboratory, the
    approximately 25 acres identified on the map referred to in section
    3173(8)(A) as the ``Wind Technology Expansion Area''.
    SEC. 3175. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND JURISDICTION
    OVER ROCKY FLATS.
        (a) Transfer Required.--
            (1) In general.--Subject to the other provisions of this
        section, the Secretary shall transfer administrative jurisdiction
        over the property that is to comprise the refuge to the Secretary
        of the Interior.
            (2) Date of transfer.--The transfer shall be carried out not
        earlier than the completion certification date, and not later than
        30 business days after that date.
            (3) Completion certification date.--For purposes of paragraph
        (2), the completion certification date is the date on which the
        Administrator of the Environmental Protection Agency certifies to
        the Secretary and to the Secretary of the Interior that cleanup and
        closure at Rocky Flats has been completed, except for the operation
        and maintenance associated with response actions, and that all
        response actions are operating properly and successfully.
        (b) Memorandum of Understanding.--
            (1) Required elements.--The transfer required by subsection (a)
        shall be carried out pursuant to a memorandum of understanding
        between the Secretary and the Secretary of the Interior. The
        memorandum of understanding shall--
                (A) provide for the division of responsibilities between
            the Secretary and the Secretary of the Interior necessary to
            carry out such transfer;
                (B) address the impacts that any property rights referred
            to in section 3179(a) may have on the management of the refuge,
            and provide strategies for resolving or mitigating these
            impacts;
                (C) identify the land the administrative jurisdiction of
            which is to be transferred to the Secretary of the Interior;
            and
                (D) specify the allocation of the Federal costs incurred at
            the refuge after the date of such transfer for any site
            investigations, response actions, and related activities for
            covered substances.
            (2) Publication of draft.--Not later than one year after the
        date of the enactment of this Act, the Secretary and the Secretary
        of the Interior shall publish in the Federal Register a draft of
        the memorandum of understanding.
            (3) Finalization and implementation.--
                (A) Not later than 18 months after the date of the
            enactment of this Act, the Secretary and Secretary of the
            Interior shall finalize and implement the memorandum of
            understanding.
                (B) In finalizing the memorandum of understanding, the
            Secretary and Secretary of the Interior shall specifically
            identify the land the administrative jurisdiction of which is
            to be transferred to the Secretary of the Interior and provide
            for a determination of the exact acreage and legal description
            of such land by a survey mutually satisfactory to the Secretary
            and the Secretary of the Interior.
        (c) Transfer of Improvements.--The transfer required by subsection
    (a) may include such buildings or other improvements as the Secretary
    of the Interior has requested in writing for purposes of managing the
    refuge.
        (d) Property Retained for Response Actions.--
            (1) In general.--The transfer required by subsection (a) shall
        not include, and the Secretary shall retain jurisdiction,
        authority, and control over, the following real property and
        facilities at Rocky Flats:
                (A) Any engineered structure, including caps, barrier
            walls, and monitoring or treatment wells, to be used in
            carrying out a response action for covered substances.
                (B) Any real property or facility to be used for any other
            purpose relating to a response action or any other action that
            is required to be carried out by the Secretary at Rocky Flats.
            (2) Consultation.--The Secretary shall consult with the
        Secretary of the Interior, the Administrator of the Environmental
        Protection Agency, and the Governor of the State of Colorado on the
        identification of all real property and facilities to be retained
        under this subsection.
        (e) Cost.--The transfer required by subsection (a) shall be
    completed without cost to the Secretary of the Interior.
        (f) No Reduction in Funds.--The transfer required by subsection
    (a), and the memorandum of understanding required by subsection (b),
    shall not result in any reduction in funds available to the Secretary
    for cleanup and closure of Rocky Flats.
    SEC. 3176. ADMINISTRATION OF RETAINED PROPERTY; CONTINUATION OF CLEANUP
    AND CLOSURE.
        (a) Administration of Retained Property.--
            (1) In general.--In administering the property retained under
        section 3175(d), the Secretary shall consult with the Secretary of
        the Interior to minimize any conflict between--
                (A) the administration by the Secretary of such property
            for a purpose relating to a response action; and
                (B) the administration by the Secretary of the Interior of
            land the administrative jurisdiction of which is transferred
            under section 3175(a).
            (2) Priority in case of conflict.--In the case of any such
        conflict, the Secretary and the Secretary of the Interior shall
        ensure that the administration for a purpose relating to a response
        action, as described in paragraph (1)(A), shall take priority.
            (3) Access.--The Secretary of the Interior shall provide to the
        Secretary such access and cooperation with respect to the refuge as
        the Secretary requires to carry out operation and maintenance,
        future response actions, natural resources restoration, or any
        other obligations.
        (b) Ongoing Cleanup and Closure.--
            (1) In general.--The Secretary shall carry out to completion
        cleanup and closure at Rocky Flats.
            (2) Cleanup levels.--The Secretary shall carry out such cleanup
        and closure to the levels established for soil, water, and other
        media, following a thorough review by the parties to the RFCA and
        the public (including the United States Fish and Wildlife Service
        and other interested government agencies) of the appropriateness of
        the interim levels in the RFCA.
            (3) No restriction on use of new technologies.--Nothing in this
        subtitle, and no action taken under this subtitle, restricts the
        Secretary from using at Rocky Flats any new technology that may
        become available for remediation of contamination.
        (c) Opportunity To Comment.--The Secretary of the Interior shall
    have the opportunity to comment with respect to any proposed response
    action as to the impacts, if any, of such proposed response action on
    the refuge.
        (d) Rules of Construction.--
            (1) No relief from obligations under other law.--Nothing in
        this subtitle, and no action taken under this subtitle--
                (A) relieves the Secretary, the Administrator of the
            Environmental Protection Agency, the Secretary of the Interior,
            or any other person from any obligation or other liability with
            respect to Rocky Flats under the RFCA or any Federal or State
            law;
                (B) impairs or alters any provision of the RFCA; or
                (C) alters any authority of the Administrator of the
            Environmental Protection Agency under section 120(e) of CERCLA
            (42 U.S.C. 9620(e)), or any authority of the State of Colorado.
            (2) Cleanup levels.--Nothing in this subtitle shall reduce the
        level of cleanup and closure at Rocky Flats required under the RFCA
        or any Federal or State law.
            (3) Payment of response action costs.--Nothing in this subtitle
        affects the obligation of a Federal department or agency that had
        or has operations at Rocky Flats resulting in the release or
        threatened release of a covered substance to pay the costs of
        response actions carried out to abate the release of, or clean up,
        the covered substance.
    SEC. 3177. ROCKY FLATS NATIONAL WILDLIFE REFUGE.
        (a) In General.--On completion of the transfer required by section
    3175(a), and subject to section 3176(a), the Secretary of the Interior
    shall commence administration of the real property comprising the
    refuge in accordance with this subtitle.
        (b) Establishment of Refuge.--Not later than 30 days after the
    transfer required by section 3175(a), the Secretary of the Interior
    shall establish at Rocky Flats a national wildlife refuge to be known
    as the Rocky Flats National Wildlife Refuge.
        (c) Composition.--The refuge shall be comprised of the property the
    administrative jurisdiction of which was transferred as required by
    section 3175(a).
        (d) Notice.--The Secretary of the Interior shall publish in the
    Federal Register a notice of the establishment of the refuge.
        (e) Administration and Purposes.--
            (1) In general.--The Secretary of the Interior shall manage the
        refuge in accordance with applicable law, including this subtitle,
        the National Wildlife Refuge System Administration Act of 1966 (16
        U.S.C. 668dd et seq.), and the purposes specified in that Act.
            (2) Refuge purposes.--The refuge shall be managed for the
        purposes of--
                (A) restoring and preserving native ecosystems;
                (B) providing habitat for, and population management of,
            native plants and migratory and resident wildlife;
                (C) conserving threatened and endangered species (including
            species that are candidates for listing under the Endangered
            Species Act of 1973 (16 U.S.C. 1531 et seq.)); and
                (D) providing opportunities for compatible scientific
            research.
            (3) Management.--In managing the refuge, the Secretary of the
        Interior shall--
                (A) ensure that wildlife-dependent recreation and
            environmental education and interpretation are the priority
            public uses of the refuge; and
                (B) comply with all response actions.

    SEC. 3178. COMPREHENSIVE PLANNING PROCESS.

        (a) In General.--Not later than 180 days after the date of the
    enactment of this Act, in developing a comprehensive conservation plan
    for the refuge in accordance with section 4(e) of the National Wildlife
    Refuge System Administration Act of 1966 (16 U.S.C. 668dd(e)), the
    Secretary of the Interior shall establish a comprehensive planning
    process that involves the public and local communities. The Secretary
    of the Interior shall establish such process in consultation with the
    Secretary, the members of the Coalition, the Governor of the State of
    Colorado, and the Federal and State of Colorado officials who have been
    designated as trustees for Rocky Flats under section 107(f)(2) of
    CERCLA (42 U.S.C. 9607(f)(2)).
        (b) Other Participants.--In addition to the entities specified in
    subsection (a), the comprehensive planning process required by
    subsection (a) shall include the opportunity for direct involvement of
    entities that are not members of the Coalition as of the date of the
    enactment of this Act, including the Rocky Flats Citizens' Advisory
    Board and the cities of Thornton, Northglenn, Golden, Louisville, and
    Lafayette, Colorado.
        (c) Dissolution of Coalition.--If the Coalition dissolves, or if
    any Coalition member elects to leave the Coalition during the
    comprehensive planning process required by subsection (a)--
            (1) such comprehensive planning process shall continue; and
            (2) an opportunity shall be provided to each entity that is a
        member of the Coalition as of September 1, 2000, for direct
        involvement in such comprehensive planning process.
        (d) Contents.--In addition to the requirements of section 4(e) of
    the National Wildlife Refuge System Administration Act of 1966 (16
    U.S.C. 668dd(e)), the comprehensive conservation plan referred to in
    subsection (a) shall address and make recommendations on the following:
            (1) The identification of any land referred to in subsection
        (e) of section 3174 that could be made available under that
        subsection.
            (2) The characteristics and configuration of any perimeter
        fencing that may be appropriate or compatible for cleanup and
        closure purposes, refuge purposes, or other purposes.
            (3) The feasibility of locating, and the potential location
        for, a visitor and education center at the refuge.
            (4) Any other issues relating to Rocky Flats.
        (e) Coalition Defined.--In this section, the term ``Coalition''
    means the Rocky Flats Coalition of Local Governments established by the
    Intergovernmental Agreement, dated February 16, 1999, among--
            (1) the city of Arvada, Colorado;
            (2) the city of Boulder, Colorado;
            (3) the city of Broomfield, Colorado;
            (4) the city of Westminster, Colorado;
            (5) the town of Superior, Colorado;
            (6) Boulder County, Colorado; and
            (7) Jefferson County, Colorado.
        (f) Report.--Not later than three years after the date of the
    enactment of this Act, the Secretary of the Interior shall submit to
    Congress--
            (1) the comprehensive conservation plan referred to in
        subsection (a); and
            (2) a report that contains--
                (A) an outline of the involvement of the public and local
            communities in the comprehensive planning process, as required
            by subsection (a);
                (B) to the extent that any input or recommendation from the
            comprehensive planning process is not accepted, a clear
            statement of the reasons why such input or recommendation is
            not accepted; and
                (C) a discussion of the impacts of any property rights
            referred to in section 3179(a) on management of the refuge, and
            an identification of strategies for resolving and mitigating
            these impacts.

    SEC. 3179. PROPERTY RIGHTS.

        (a) In General.--Except as provided in subsections (c) and (d),
    nothing in this subtitle limits any valid, existing property right at
    Rocky Flats that is owned by any person or entity, including, but not
    limited to--
            (1) any mineral right;
            (2) any water right or related easement; and
            (3) any facility or right-of-way for a utility.
        (b) Access.--Except as provided in subsection (c), nothing in this
    subtitle affects any right of an owner of a property right referred to
    in subsection (a) to access the owner's property.
        (c) Reasonable Conditions.--
            (1) In general.--The Secretary or the Secretary of the Interior
        may impose such reasonable conditions on access to property rights
        referred to in subsection (a) as are appropriate for the cleanup
        and closure of Rocky Flats and for the management of the refuge.
            (2) No effect on other law.--Nothing in this subtitle affects
        any Federal, State, or local law (including any regulation)
        relating to the use, development, and management of property rights
        referred to in subsection (a).
            (3) No effect on access rights.--Nothing in this subsection
        precludes the exercise of any access right, in existence on the
        date of the enactment of this Act, that is necessary to perfect or
        maintain a water right in existence on that date.
        (d) Utility Extension.--
            (1) In general.--The Secretary or the Secretary of the Interior
        may allow not more than one extension from an existing utility
        right-of-way on Rocky Flats, if necessary.
            (2) Conditions.--An extension under paragraph (1) shall be
        subject to the conditions specified in subsection (c).
        (e) Easement Surveys.--Subject to subsection (c), until the date
    that is 180 days after the date of the enactment of this Act, an entity
    that possesses a decreed water right or prescriptive easement relating
    to land at Rocky Flats may carry out such surveys at Rocky Flats as the
    entity determines are necessary to perfect the right or easement.

    SEC. 3180. LIABILITIES AND OTHER OBLIGATIONS.

        (a) In General.--Nothing in this subtitle shall relieve, and no
    action may be taken under this subtitle to relieve, the Secretary, the
    Secretary of the Interior, or any other person from any liability or
    other obligation at Rocky Flats under CERCLA, RCRA, or any other
    Federal or State law.
        (b) Cost Recovery, Contribution, and Other Action.--Nothing in this
    subtitle is intended to prevent the United States from bringing a cost
    recovery, contribution, or other action that would otherwise be
    available under Federal or State law.

    SEC. 3181. ROCKY FLATS MUSEUM.

        (a) Museum.--To commemorate the contribution that Rocky Flats and
    its worker force provided to winning the Cold War and the impact that
    such contribution has had on the nearby communities and the State of
    Colorado, the Secretary may establish a Rocky Flats Museum.
        (b) Location.--The Rocky Flats Museum shall be located in the city
    of Arvada, Colorado, unless, after consultation under subsection (c),
    the Secretary determines otherwise.
        (c) Consultation.--The Secretary shall consult with the city of
    Arvada, other local communities, and the Colorado State Historical
    Society on--
            (1) the development of the museum;
            (2) the siting of the museum; and
            (3) any other issues relating to the development and
        construction of the museum.
        (d) Report.--Not later than three years after the date of the
    enactment of this Act, the Secretary, in coordination with the city of
    Arvada, shall submit to Congress a report on the costs associated with
    the construction of the museum and any other issues relating to the
    development and construction of the museum.

    SEC. 3182. ANNUAL REPORT ON FUNDING.

        For each of fiscal years 2003 through 2007, at the time of
    submission of the budget of the President under section 1105(a) of
    title 31, United States Code, for such fiscal year, the Secretary and
    the Secretary of the Interior shall jointly submit to Congress a report
    on the costs of implementation of this subtitle. The report shall
    include--
            (1) the costs incurred by each Secretary in implementing this
        subtitle during the preceding fiscal year; and
            (2) the funds required by each Secretary to implement this
        subtitle during the current and subsequent fiscal years.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.

    SEC. 3201. AUTHORIZATION.

        There are authorized to be appropriated for fiscal year 2002,
    $18,500,000 for the operation of the Defense Nuclear Facilities Safety
    Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286
    et seq.).

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

    SEC. 3301. DEFINITIONS.

        In this title:
            (1) The term ``National Defense Stockpile'' means the stockpile
        provided for in section 4 of the Strategic and Critical Materials
        Stock Piling Act (50 U.S.C. 98c).
            (2) The term ``National Defense Stockpile Transaction Fund''
        means the fund established under section 9(a) of the Strategic and
        Critical Materials Stock Piling Act (50 U.S.C. 98h(a)).
            (3) The term ``Market Impact Committee'' means the Market
        Impact Committee appointed under section 10(c) of the Strategic and
        Critical Materials Stock Piling Act (50 U.S.C. 98h-1(c)).
    SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.
        (a) Obligation of Stockpile Funds.--During fiscal year 2002, the
    National Defense Stockpile Manager may obligate up to $65,200,000 of
    the funds in the National Defense Stockpile Transaction Fund for the
    authorized uses of such funds under section 9(b)(2) of the Strategic
    and Critical Materials Stock Piling Act (50 U.S.C. 98h(b)(2)),
    including the disposal of hazardous materials that are environmentally
    sensitive.
        (b) Additional Obligations.--The National Defense Stockpile Manager
    may obligate amounts in excess of the amount specified in subsection
    (a) if the National Defense Stockpile Manager notifies Congress that
    extraordinary or emergency conditions necessitate the additional
    obligations. The National Defense Stockpile Manager may make the
    additional obligations described in the notification after the end of
    the 45-day period beginning on the date on which Congress receives the
    notification.
        (c) Limitations.--The authorities provided by this section shall be
    subject to such limitations as may be provided in appropriations Acts.
    SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN NATIONAL
    DEFENSE STOCKPILE.
        (a) Disposal Authorized.--Subject to the conditions specified in
    subsection (b), the President may dispose of obsolete and excess
    materials contained in the National Defense Stockpile. The materials
    subject to disposal under this subsection and the quantity of each
    material authorized to be disposed of by the President are set forth in
    the following table:
    ---------------------------------------------------------------------------

                         Authorized Stockpile Disposals
    ------------------------------------------------------------------------
       Material for disposal                              Quantity
    ------------------------------------------------------------------------
    Bauxite...................................  40,000 short tons
    Chromium Metal............................  3,512 short tons
    Iridium...................................  25,140 troy ounces
    Jewel Bearings............................  30,273,221 pieces
    Manganese Ferro HC........................  209,074 short tons
    Palladium.................................  11 troy ounces
    Quartz Crystal............................  216,648 pounds
    Tantalum Metal Ingot......................  120,228 pounds contained
    Tantalum Metal Powder.....................  36,020 pounds contained
    Thorium Nitrate...........................  600,000 pounds.
    ------------------------------------------------------------------------

        (b) Minimization of Disruption and Loss.--The President may not
    dispose of materials under subsection (a) to the extent that the
    disposal will result in--
            (1) undue disruption of the usual markets of producers,
        processors, and consumers of the materials proposed for disposal;
        or
            (2) avoidable loss to the United States.
        (c) Relationship to Other Disposal Authority.--The disposal
    authority provided in subsection (a) is new disposal authority and is
    in addition to, and shall not affect, any other disposal authority
    provided by law regarding the materials specified in such subsection.
    SEC. 3304. REVISION OF LIMITATIONS ON REQUIRED DISPOSALS OF CERTAIN
    MATERIALS IN NATIONAL DEFENSE STOCKPILE.
        (a) Public Law 105-261.--Section 3303 of the Strom Thurmond
    National Defense Authorization Act for Fiscal Year 1999 (Public Law
    105-261; 50 U.S.C. 98d note) is amended--
            (1) in subsection (a)--
                (A) by striking ``the amount of--'' and inserting ``total
            amounts not less than--'';
                (B) by striking ``and'' at the end of paragraph (3); and
                (C) by striking paragraph (4) and inserting the following
            new paragraphs:
            ``(4) $760,000,000 by the end of fiscal year 2005; and
            ``(5) $770,000,000 by the end of fiscal year 2011.''; and
            (2) in subsection (b)(2), by striking ``receipts in the amounts
        specified in subsection (a)'' and inserting ``receipts in the total
        amount specified in subsection (a)(5)''.
        (b) Public Law 105-85.--Section 3305 of the National Defense
    Authorization Act for Fiscal Year 1998 (Public Law 105-85; 50 U.S.C.
    98d note) is amended--
            (1) in subsection (a), by striking ``amounts equal to--'' and
        inserting ``total amounts not less than--''; and
            (2) in subsection (b), by striking paragraph (2) and inserting
        the following new paragraph:
        ``(2) The President may not dispose of cobalt under this section in
    fiscal year 2006 in excess of the disposals necessary to result in
    receipts during that fiscal year in the total amount specified in
    subsection (a)(5).''.
        (c) Public Law 104-201.--Section 3303 of the National Defense
    Authorization Act for Fiscal Year 1997 (Public Law 104-201; 50 U.S.C.
    98d note) is amended--
            (1) in subsection (a), by striking ``amounts equal to--'' and
        inserting ``total amounts not less than--''; and
            (2) in subsection (b), by striking paragraph (2) and inserting
        the following new paragraph:
        ``(2) The President may not dispose of materials under this section
    during the 10-fiscal year period referred to in subsection (a)(2) in
    excess of the disposals necessary to result in receipts during that
    period in the total amount specified in such subsection.''.
    SEC. 3305. ACCELERATION OF REQUIRED DISPOSAL OF COBALT IN NATIONAL
    DEFENSE STOCKPILE.
        Section 3305(a) of the National Defense Authorization Act for
    Fiscal Year 1998 (Public Law 105-85; 50 U.S.C. 98d note), as amended by
    section 3304(b) of this Act, is amended--
            (1) in paragraph (1), by striking ``2003'' and inserting
        ``2002'';
            (2) in paragraph (2), by striking ``2004'' and inserting
        ``2003'';
            (3) in paragraph (3), by striking ``2005'' and inserting
        ``2004'';
            (4) in paragraph (4), by striking ``2006'' and inserting
        ``2005''; and
            (5) in paragraph (5), by striking ``2007'' and inserting
        ``2006''.
    SEC. 3306. RESTRICTION ON DISPOSAL OF MANGANESE FERRO.
        (a) Temporary Quantity Restrictions.--During fiscal years 2002
    through 2005, the disposal of manganese ferro in the National Defense
    Stockpile may not exceed the following quantities:
            (1) During fiscal year 2002, 25,000 short tons of all grades of
        manganese ferro.
            (2) During fiscal year 2003, 25,000 short tons of high carbon
        manganese ferro of the highest grade.
            (3) During each of the fiscal years 2004 and 2005, 50,000 short
        tons of high carbon manganese ferro of the highest grade.
        (b) Conforming Amendment.--Section 3304 of the National Defense
    Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat.
    629) is repealed.

                     TITLE XXXIV--NAVAL PETROLEUM RESERVES

    Sec. 3401. Authorization of appropriations.

    SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

        (a) Amount.--There are hereby authorized to be appropriated to the
    Secretary of Energy $17,371,000 for fiscal year 2002 for the purpose of
    carrying out activities under chapter 641 of title 10, United States
    Code, relating to the naval petroleum reserves.
        (b) Period of Availability.--Funds appropriated pursuant to the
    authorization of appropriations in subsection (a) shall remain
    available until expended.

                      TITLE XXXV--MARITIME ADMINISTRATION

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

    SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2002.
        Funds are hereby authorized to be appropriated for fiscal year
    2002, to be available without fiscal year limitation if so provided in
    appropriations Acts, for the use of the Department of Transportation
    for the Maritime Administration as follows:
            (1) For expenses necessary for operations and training
        activities, $89,054,000.
            (2) For expenses under the loan guarantee program authorized by
        title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et
        seq.), $103,978,000, of which--
                (A) $100,000,000 is for the cost (as defined in section
            502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C.
            661a(5))) of loan guarantees under the program; and
                (B) $3,978,000 is for administrative expenses related to
            loan guarantee commitments under the program.
            (3) For expenses to dispose of obsolete vessels in the National
        Defense Reserve Fleet, $10,000,000.
    SEC. 3502. DEFINE ``WAR RISKS'' TO VESSELS TO INCLUDE CONFISCATION,
    EXPROPRIATION, NATIONALIZATION, AND DEPRIVATION OF THE VESSELS.
        Section 1201(c) of the Merchant Marine Act, 1936 (46 App. U.S.C.
    1281(c)) is amended to read as follows:
        ``(c) The term `war risks' includes to such extent as the Secretary
    may determine--
            ``(1) all or any part of any loss that is excluded from marine
        insurance coverage under a `free of capture or seizure' clause, or
        under analogous clauses; and
            ``(2) other losses from hostile acts, including confiscation,
        expropriation, nationalization, or deprivation.''.
    SEC. 3503. HOLDING OBLIGOR'S CASH AS COLLATERAL UNDER TITLE XI OF
    MERCHANT MARINE ACT, 1936.
        Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et
    seq.) is amended by inserting after section 1108 the following:

    ``SEC. 1109. DEPOSIT FUND.

        ``(a) Establishment of Deposit Fund.--There is established in the
    Treasury a deposit fund for purposes of this section. The Secretary
    may, in accordance with an agreement under subsection (b), deposit into
    and hold in the deposit fund cash belonging to an obligor to serve as
    collateral for a guarantee under this title made with respect to the
    obligor.
        ``(b) Agreement.--
            ``(1) In general.--The Secretary and an obligor shall enter
        into a reserve fund or other collateral account agreement to govern
        the deposit, withdrawal, retention, use, and reinvestment of cash
        of the obligor held in the deposit fund established by subsection
        (a).
            ``(2) Terms.--The agreement shall contain such terms and
        conditions as are required under this section and such additional
        terms as are considered by the Secretary to be necessary to protect
        fully the interests of the United States.
            ``(3) Security interest of united states.--The agreement shall
        include terms that grant to the United States a security interest
        in all amounts deposited into the deposit fund.
        ``(c) Investment.--The Secretary may invest and reinvest any part
    of the amounts in the deposit fund established by subsection (a) in
    obligations of the United States with such maturities as ensure that
    amounts in the deposit fund will be available as required for purposes
    of agreements under subsection (b). Cash balances of the deposit fund
    in excess of current requirements shall be maintained in a form of
    uninvested funds and the Secretary of the Treasury shall pay interest
    on these funds.
        ``(d) Withdrawals.--
            ``(1) In general.--The cash deposited into the deposit fund
        established by subsection (a) may not be withdrawn without the
        consent of the Secretary.
            ``(2) Use of income.--Subject to paragraph (3), the Secretary
        may pay any income earned on cash of an obligor deposited into the
        deposit fund in accordance with the terms of the agreement with the
        obligor under subsection (b).
            ``(3) Retention against default.--The Secretary may retain and
        offset any or all of the cash of an obligor in the deposit fund,
        and any income realized thereon, as part of the Secretary's
        recovery against the obligor in case of a default by the obligor on
        an obligation.''.

                                   Speaker of the House of Representatives.

                                Vice President of the United States and
                                                   President of the Senate.