    [Congressional Bills 107th Congress]
    [From the U.S. Government Publishing Office]
    [S. 1438 Placed on Calendar Senate (PCS)]

                                                           Calendar No. 163
    107th CONGRESS
      1st Session
                                    S. 1438

         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.

    _______________________________________________________________________

                       IN THE SENATE OF THE UNITED STATES

                               September 19, 2001

     Mr. Levin introduced the following bill; which was read the first time

                               September 20, 2001

                Read the second time and placed on the calendar

    _______________________________________________________________________

                                     A BILL

         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 programs.
                           Subtitle B--Army Programs

                                   (Reserved)

                           Subtitle C--Navy Programs

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

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

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

                  Subtitle A--Authorization of Appropriations

    Sec. 201. Authorization of appropriations.
    Sec. 202. Amount for basic and applied research.
        Subtitle B--Program Requirements, Restrictions, and Limitations

    Sec. 211. F-22 aircraft program.
    Sec. 212. C-5 aircraft reliability enhancement and reengining.
    Sec. 213. Review of alternatives to the V-22 Osprey aircraft.
    Sec. 214. Joint biological defense program.
                           Subtitle C--Other Matters

    Sec. 231. Technology Transition Initiative.
    Sec. 232. Communication of safety concerns between operational testing
                                and evaluation officials and 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. Assistance to local educational agencies that benefit
                                dependents of members of the Armed Forces
                                and Department of Defense civilian
                                employees.
    Sec. 305. Amount for impact aid for children with severe disabilities.
                      Subtitle B--Environmental Provisions

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

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

    Sec. 331. Codification of authority for Department of Defense support
                                for counter-drug activities of other
                                governmental agencies.
    Sec. 332. Exclusion of certain expenditures from limitation on private
                                sector performance of depot-level
                                maintenance.
    Sec. 333. Repair, restoration, and preservation of Lafayette Escadrille
                                Memorial, Marnes la-Coquette, France.
    Sec. 334. Implementation of the Navy-Marine Corps Intranet contract.
                  TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                           Subtitle A--Active Forces

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

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

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

                      Subtitle A--Officer Personnel Policy

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

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

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

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

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

    Sec. 571. Sense of the Senate regarding the importance of voting by
                                members of the uniformed services.
    Sec. 572. Uniform nondiscriminatory voting standards for administration
                                of elections under State and local election
                                systems.
    Sec. 573. Guarantee of residency for military personnel.
    Sec. 574. Extension of registration and balloting rights for absent
                                uniformed services voters to State and
                                local elections.
    Sec. 575. Use of single application as a simultaneous absentee voter
                                registration application and absentee
                                ballot application.
    Sec. 576. Use of single application for absentee ballots for all
                                Federal elections.
    Sec. 577. Electronic voting demonstration project.
    Sec. 578. Federal voting assistance program.
                           Subtitle G--Other Matters

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

                         Subtitle A--Pay and Allowances

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

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

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

    Sec. 651. Payment of retired pay and compensation to disabled military
                                retirees.
                           Subtitle E--Other Matters

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

                   Subtitle A--TRICARE Benefits Modernization

    Sec. 701. Requirement for integration of benefits.
    Sec. 702. Domiciliary and custodial care.
    Sec. 703. Long term care.
    Sec. 704. Extended benefits for disabled beneficiaries.
    Sec. 705. Conforming repeals.
    Sec. 706. Effective date.
                           Subtitle B--Other Matters

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

             Subtitle A--Procurement Management and Administration

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

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

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

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

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

                         Subtitle A--Financial Matters

    Sec. 1001. Transfer authority.
    Sec. 1002. Reduction in authorizations of appropriations for Department
                                of Defense for management efficiencies.
    Sec. 1003. Authorization of supplemental appropriations for fiscal year
                                2001.
    Sec. 1004. United States contribution to NATO common-funded budgets in
                                fiscal year 2002.
    Sec. 1005. Clarification of applicability of interest penalties for
                                late payment of interim payments due under
                                contracts for services.
    Sec. 1006. Reliability of Department of Defense financial statements.
    Sec. 1007. Senior Financial Management Oversight Council and financial
                                feeder systems compliance process.
    Sec. 1008. Combating Terrorism Readiness Initiatives Fund for combatant
                                commands.
                          Subtitle B--Strategic Forces

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

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

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

    Sec. 1061. Requirement to conduct certain previously authorized
                                educational programs for children and
                                youth.
    Sec. 1062. Authority to ensure demilitarization of significant military
                                equipment formerly owned by the Department
                                of Defense.
    Sec. 1063. Conveyances of equipment and related materials loaned to
                                State and local governments as assistance
                                for emergency response to a use or
                                threatened use of a weapon of mass
                                destruction.
    Sec. 1064. Authority to pay gratuity to members of the Armed Forces and
                                civilian employees of the United States for
                                slave labor performed for Japan during
                                World War II.
    Sec. 1065. Retention of travel promotional items.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

                       Subtitle A--Intelligence Personnel

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

    Sec. 1111. Federal employment retirement credit for nonappropriated
                                fund instrumentality service.
    Sec. 1112. Improved portability of retirement coverage for employees
                                moving between civil service employment and
                                employment by nonappropriated fund
                                instrumentalities.
    Sec. 1113. Repeal of fiscal year 2003 limitations on exercise of
                                voluntary separation incentive pay
                                authority and voluntary early retirement
                                authority.
                           Subtitle C--Other Matters

    Sec. 1121. Housing allowance for the chaplain for the Corps of Cadets
                                at the United States Military Academy.
    Sec. 1122. Study of adequacy of compensation provided for teachers in
                                the Department of Defense overseas
                                dependents' schools.
    Sec. 1123. Pilot program for payment of retraining expenses incurred by
                                employers of persons involuntarily
                                separated from employment by the Department
                                of Defense.
                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

    Sec. 1211. Support of United Nations-sponsored efforts to inspect and
                                monitor Iraqi weapons activities.
    Sec. 1212. Cooperative research and development projects with NATO and
                                other countries.
    Sec. 1213. International cooperative agreements on use of ranges and
                                other facilities for testing of defense
                                equipment.
    Sec. 1214. Clarification of authority to furnish nuclear test
                                monitoring equipment to foreign
                                governments.
    Sec. 1215. Participation of government contractors in chemical weapons
                                inspections at United States Government
                                facilities under the Chemical Weapons
                                Convention.
    Sec. 1216. Authority to transfer naval vessels to certain foreign
                                countries.
             TITLE XIII--CONTINGENT AUTHORIZATION OF APPROPRIATIONS

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

    Sec. 2001. Short title.
                                TITLE XXI--ARMY

    Sec. 2101. Authorized Army construction and land acquisition projects.
    Sec. 2102. Family housing.
    Sec. 2103. Improvements to military family housing units.
    Sec. 2104. Authorization of appropriations, Army.
    Sec. 2105. Modification of authority to carry out certain fiscal year
                                2001 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 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 project.
                          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. Cancellation of authority to carry out additional fiscal
                                year 2001 project.
    Sec. 2406. Modification of authority to carry out certain fiscal year
                                2000 projects.
    Sec. 2407. Modification of authority to carry out certain fiscal year
                                1999 project.
    Sec. 2408. Modification of authority to carry out certain fiscal year
                                1995 project.
       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                    PROGRAM

    Sec. 2501. Authorized NATO construction and land acquisition projects.
    Sec. 2502. Authorization of appropriations, NATO.
                TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

    Sec. 2601. Authorized Guard and Reserve construction and land
                                acquisition projects.
            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. Unforeseen environmental hazard remediation as basis for
                                authorized cost variations for military
                                construction and family housing
                                construction projects.
    Sec. 2803. Repeal of requirement for annual reports to Congress on
                                military construction and military family
                                housing activities.
    Sec. 2804. Authority available for lease of property and facilities
                                under alternative authority for acquisition
                                and improvement of military housing.
    Sec. 2805. Funds for housing allowances of members assigned to military
                                family housing under alternative authority
                                for acquisition and improvement of military
                                housing.
            Subtitle B--Real Property and Facilities Administration

    Sec. 2811. Availability of proceeds of sales of Department of Defense
                                property from closed military
                                installations.
    Sec. 2812. Pilot efficient facilities initiative.
    Sec. 2813. Demonstration program on reduction in long-term facility
                                maintenance costs.
                          Subtitle C--Land Conveyances

    Sec. 2821. Land conveyance, Engineer Proving Ground, Fort Belvoir,
                                Virginia.
    Sec. 2822. Modification of authority for conveyance of Naval Computer
                                and Telecommunications Station, Cutler,
                                Maine.
    Sec. 2823. Land transfer and conveyance, Naval Security Group Activity,
                                Winter Harbor, Maine.
    Sec. 2824. Conveyance of segment of Loring Petroleum Pipeline, Maine,
                                and related easements.
    Sec. 2825. Land conveyance, petroleum terminal serving former Loring
                                Air Force Base and Bangor Air National
                                Guard Base, Maine.
    Sec. 2826. Land conveyance, Naval Weapons Industrial Reserve Plant,
                                Toledo, Ohio.
                           Subtitle D--Other Matters

    Sec. 2841. Development of United States Army Heritage and Education
                                Center at Carlisle Barracks, Pennsylvania.
    Sec. 2842. Limitation on availability of funds for renovation of the
                                Pentagon Reservation.
    Sec. 2843. Naming of Patricia C. Lamar Army National Guard Readiness
                                Center, Oxford, Mississippi.
                TITLE XXIX--DEFENSE BASE CLOSURE AND REALIGNMENT

               Subtitle A--Modifications of 1990 Base Closure Law

    Sec. 2901. Authority to carry out base closure round in 2003.
    Sec. 2902. Base Closure Account 2003.
    Sec. 2903. Additional modifications of base closure authorities.
    Sec. 2904. Technical and clarifying amendments.
               Subtitle B--Modification of 1988 Base Closure Law

    Sec. 2911. Payment for certain services provided by redevelopment
                                authorities for property leased back by the
                                United States.
     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. Limitation on availability of funds for weapons activities
                                for facilities and infrastructure.
    Sec. 3132. Limitation on availability of funds for other defense
                                activities for national security programs
                                administrative support.
    Sec. 3133. Nuclear Cities Initiative.
    Sec. 3134. Construction of Department of Energy operations office
                                complex.
    Subtitle D--Matters Relating to Management of National Nuclear Security
                                 Administration

    Sec. 3141. Establishment of position of Deputy Administrator for
                                Nuclear Security.
    Sec. 3142. Responsibility for national security laboratories and
                                weapons production facilities of Deputy
                                Administrator of National Nuclear Security
                                Administration for Defense Programs.
    Sec. 3143. Clarification of status within the Department of Energy of
                                administration and contractor personnel of
                                the National Nuclear Security
                                Administration.
    Sec. 3144. Modification of authority of Administrator for Nuclear
                                Security to establish scientific,
                                engineering, and technical positions.
                           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. Additional objective for Department of Energy defense
                                nuclear facility work force restructuring
                                plan.
    Sec. 3155. Modification of date of report of Panel to Assess the
                                Reliability, Safety, and Security of the
                                United States Nuclear Stockpile.
    Sec. 3156. Reports on achievement of milestones for National Ignition
                                Facility.
    Sec. 3157. Support for public education in the vicinity of Los Alamos
                                National Laboratory, New Mexico.
    Sec. 3158. Improvements to Corral Hollow Road, Livermore, California.
                Subtitle F--Rocky Flats National Wildlife Refuge

    Sec. 3171. Short title.
    Sec. 3172. Findings and purpose.
    Sec. 3173. Definitions.
    Sec. 3174. Future ownership and management.
    Sec. 3175. Transfer of management responsibilities and jurisdiction
                                over Rocky Flats.
    Sec. 3176. Continuation of environmental cleanup and closure.
    Sec. 3177. Rocky Flats National Wildlife Refuge.
    Sec. 3178. Public involvement.
    Sec. 3179. Property rights.
    Sec. 3180. Rocky Flats Museum.
    Sec. 3181. Report on funding.
              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.
                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

    Sec. 3301. Authority to dispose of certain materials in the National
                                Defense Stockpile.
    Sec. 3302. Revision of limitations on required disposals of cobalt in
                                the National Defense Stockpile.
    Sec. 3303. Acceleration of required disposal of cobalt in the National
                                Defense Stockpile.
    Sec. 3304. Revision of restriction on disposal of manganese ferro.
                     TITLE XXXIV--NAVAL PETROLEUM RESERVES

    Sec. 3401. Authorization of appropriations.

    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.

    SEC. 4. APPLICABILITY OF REPORT OF COMMITTEE ON ARMED SERVICES OF THE
                  SENATE.

        Senate Report 107-62, the report of the Committee on Armed Services
    of the Senate to accompany the bill S.1416, 107th Congress, 1st
    session, shall apply to this Act with the exception of the portions of
    the report that relate to sections 221 through 224.

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

                  Subtitle A--Authorization of Appropriations

    SEC. 101. ARMY.

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

    SEC. 102. NAVY AND MARINE CORPS.

        (a) Navy.--Funds are hereby authorized to be appropriated for
    fiscal year 2002 for procurement for the Navy as follows:
                (1) For aircraft, $8,169,043,000.
                (2) For weapons, including missiles and torpedoes,
            $1,503,475,000.
                (3) For shipbuilding and conversion, $9,522,121,000.
                (4) For other procurement, $4,293,476,000.
        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 2002 for procurement for the Marine Corps in the amount
    of $981,724,000.
        (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized
    to be appropriated for fiscal year 2002 for procurement of ammunition
    for the Navy and the Marine Corps in the amount of $476,099,000.

    SEC. 103. AIR FORCE.

        Funds are hereby authorized to be appropriated for fiscal year 2002
    for procurement for the Air Force as follows:
                (1) For aircraft, $10,892,957,000.
                (2) For ammunition, $865,344,000.
                (3) For missiles, $3,263,436,000.
                (4) For other procurement, $8,081,721,000.

    SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

    SEC. 105. DEFENSE INSPECTOR GENERAL.

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

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

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

    SEC. 107. DEFENSE HEALTH PROGRAMS.

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

                           Subtitle B--Army Programs

                                   (Reserved)

                           Subtitle C--Navy Programs

    SEC. 121. VIRGINIA CLASS SUBMARINE PROGRAM.

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

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

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

    SEC. 123. V-22 OSPREY AIRCRAFT PROGRAM.

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

                         Subtitle D--Air Force Programs

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

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

                           Subtitle C--Other Matters

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

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

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

                  Subtitle A--Authorization of Appropriations

    SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

        Funds are hereby authorized to be appropriated for fiscal year 2002
    for the use of the Department of Defense for research, development,
    test, and evaluation as follows:
                (1) For the Army, $6,899,170,000.
                (2) For the Navy, $11,135,806,000.
                (3) For the Air Force, $14,481,157,000.
                (4) For Defense-wide activities, $14,099,702,000, of which
            $221,355,000 is authorized for the Director of Operational Test
            and Evaluation.
                (5) For the Defense Health Program, $65,304,000.

    SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

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

        Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 211. F-22 AIRCRAFT PROGRAM.

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

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

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

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

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

    SEC. 214. JOINT BIOLOGICAL DEFENSE PROGRAM.

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

                           Subtitle C--Other Matters

    SEC. 231. TECHNOLOGY TRANSITION INITIATIVE.

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

    ``2355. Technology Transition Initiative.''.

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

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

                      TITLE III--OPERATION AND MAINTENANCE

                  Subtitle A--Authorization of Appropriations

    SEC. 301. OPERATION AND MAINTENANCE FUNDING.

        Funds are hereby authorized to be appropriated for fiscal year 2002
    for the use of the Armed Forces and other activities and agencies of
    the Department of Defense for expenses, not otherwise provided for, for
    operation and maintenance, in amounts as follows:
                (1) For the Army, $21,134,982,000.
                (2) For the Navy, $26,927,931,000.
                (3) For the Marine Corps, $2,911,339,000.
                (4) For the Air Force, $26,013,582,000.
                (5) For Defense-wide activities, $12,482,532,000.
                (6) For the Army Reserve, $1,803,146,000.
                (7) For the Naval Reserve, $1,000,369,000.
                (8) For the Marine Corps Reserve, $142,956,000.
                (9) For the Air Force Reserve, $2,029,866,000.
                (10) For the Army National Guard, $3,697,659,000.
                (11) For the Air National Guard, $4,037,161,000.
                (12) For the Defense Inspector General, $149,221,000.
                (13) For the United States Court of Appeals for the Armed
            Forces, $9,096,000.
                (14) For Environmental Restoration, Army, $389,800,000.
                (15) For Environmental Restoration, Navy, $257,517,000.
                (16) For Environmental Restoration, Air Force,
            $385,437,000.
                (17) For Environmental Restoration, Defense-wide,
            $23,492,000.
                (18) For Environmental Restoration, Formerly Used Defense
            Sites, $190,255,000.
                (19) For Overseas Humanitarian, Disaster, and Civic Aid
            programs, $49,700,000.
                (20) For Drug Interdiction and Counterdrug Activities,
            Defense-wide, $860,381,000.
                (21) For the Kaho'olawe Island Conveyance, Remediation, and
            Environmental Restoration Trust Fund, $60,000,000.
                (22) For the Defense Health Program, $17,546,750,000.
                (23) For Cooperative Threat Reduction programs,
            $403,000,000.
                (24) For Overseas Contingency Operations Transfer Fund,
            $2,844,226,000.
                (25) For Support for International Sporting Competitions,
            Defense, $15,800,000.

    SEC. 302. WORKING CAPITAL FUNDS.

        Funds are hereby authorized to be appropriated for fiscal year 2002
    for the use of the Armed Forces and other activities and agencies of
    the Department of Defense for providing capital for working capital and
    revolving funds in amounts as follows:
                (1) For the Defense Working Capital Funds, $1,917,186,000.
                (2) For the National Defense Sealift Fund, $506,408,000.

    SEC. 303. ARMED FORCES RETIREMENT HOME.

        There is hereby authorized to be appropriated for fiscal year 2002
    from the Armed Forces Retirement Home Trust Fund the sum of $71,440,000
    for the operation of the Armed Forces Retirement Home, including the
    United States Soldiers' and Airmen's Home and the Naval Home.

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

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

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

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

                      Subtitle B--Environmental Provisions

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

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

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

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

    SEC. 313. DEPARTMENT OF DEFENSE ENERGY EFFICIENCY PROGRAM.

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

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

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

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

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

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

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

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

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

      Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

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

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

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

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

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

                           Subtitle D--Other Matters

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

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

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

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

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

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

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

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

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

                  TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                           Subtitle A--Active Forces

    SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

                           Subtitle B--Reserve Forces

    SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

        (a) In General.--The Armed Forces are authorized strengths for
    Selected Reserve personnel of the reserve components as of September
    30, 2002, as follows:
                (1) The Army National Guard of the United States, 350,000.
                (2) The Army Reserve, 205,000.
                (3) The Naval Reserve, 87,000.
                (4) The Marine Corps Reserve, 39,558.
                (5) The Air National Guard of the United States, 108,400.
                (6) The Air Force Reserve, 74,700.
                (7) The Coast Guard Reserve, 8,000.
        (b) Adjustments.--The end strengths prescribed by subsection (a)
    for the Selected Reserve of any reserve component shall be
    proportionately reduced by--
                (1) the total authorized strength of units organized to
            serve as units of the Selected Reserve of such component which
            are on active duty (other than for training) at the end of the
            fiscal year; and
                (2) the total number of individual members not in units
            organized to serve as units of the Selected Reserve of such
            component who are on active duty (other than for training or
            for unsatisfactory participation in training) without their
            consent at the end of the fiscal year.
    Whenever such units or such individual members are released from active
    duty during any fiscal year, the end strength prescribed for such
    fiscal year for the Selected Reserve of such reserve component shall be
    proportionately increased by the total authorized strengths of such
    units and by the total number of such individual members.

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

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

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

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

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

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

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

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

    ----------------------------------------------------------------------------------------------------------------
                                                             Number of officers of that reserve component who may be
                                                                            serving in the grade of:
       ``Total number of members of a reserve component    ---------------------------------------------------------
         serving on full-time reserve component duty:                              Lieutenant
                                                                  Major             Colonel             Colonel
    ----------------------------------------------------------------------------------------------------------------
    Army Reserve:
    10,000................................................              1,390                740              230
    11,000................................................              1,529                803              242
    12,000................................................              1,668                864              252
    13,000................................................              1,804                924              262
    14,000................................................              1,940                984              272
    15,000................................................              2,075              1,044              282
    16,000................................................              2,210              1,104              291
    17,000................................................              2,345              1,164              300
    18,000................................................              2,479              1,223              309
    19,000................................................              2,613              1,282              318
    20,000................................................              2,747              1,341              327
    21,000................................................              2,877              1,400              336

    Army National Guard:
    20,000................................................              1,500                850              325
    22,000................................................              1,650                930              350
    24,000................................................              1,790              1,010              370
    26,000................................................              1,930              1,085              385
    28,000................................................              2,070              1,160              400
    30,000................................................              2,200              1,235              405
    32,000................................................              2,330              1,305              408
    34,000................................................              2,450              1,375              411
    36,000................................................              2,570              1,445              411
    38,000................................................              2,670              1,515              411
    40,000................................................              2,770              1,580              411
    42,000................................................              2,837              1,644              411

    Marine Corps Reserve:
    1,100.................................................                106                 56               20
    1,200.................................................                110                 60               21
    1,300.................................................                114                 63               22
    1,400.................................................                118                 66               23
    1,500.................................................                121                 69               24
    1,600.................................................                124                 72               25
    1,700.................................................                127                 75               26
    1,800.................................................                130                 78               27
    1,900.................................................                133                 81               28
    2,000.................................................                136                 84               29
    2,100.................................................                139                 87               30
    2,200.................................................                141                 90               31
    2,300.................................................                143                 92               32
    2,400.................................................                145                 94               33
    2,500.................................................                147                 96               34
    2,600.................................................                149                 98               35

    Air Force Reserve:
    500...................................................                 83                 85               50
    1,000.................................................                155                165               95
    1,500.................................................                220                240              135
    2,000.................................................                285                310              170
    2,500.................................................                350                369              203
    3,000.................................................                413                420              220
    3,500.................................................                473                464              230
    4,000.................................................                530                500              240
    4,500.................................................                585                529              247
    5,000.................................................                638                550              254
    5,500.................................................                688                565              261
    6,000.................................................                735                575              268
    7,000.................................................                770                595              280
    8,000.................................................                805                615              290
    10,000................................................                835                635              300

    Air National Guard:
    5,000.................................................                333                335              251
    6,000.................................................                403                394              260
    7,000.................................................                472                453              269
    8,000.................................................                539                512              278
    9,000.................................................                606                571              287
    10,000................................................                673                630              296
    11,000................................................                740                688              305
    12,000................................................                807                742              314
    13,000................................................                873                795              323
    14,000................................................                939                848              332
    15,000................................................              1,005                898              341
    16,000................................................              1,067                948              350
    17,000................................................              1,126                998              359
    18,000................................................              1,185              1,048              368
    19,000................................................              1,235              1,098              377
    20,000................................................              1,283              1,148              380.
    ----------------------------------------------------------------------------------------------------------------

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

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

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

    ------------------------------------------------------------------------
                                         Number of members of that reserve
      ``Total number of members of a    component who may be serving in the
    reserve component serving on full-               grade of:
       time reserve component duty:   --------------------------------------
                                              E-8                 E-9
    ------------------------------------------------------------------------
    Army Reserve:
    10,000...........................              1,052              154
    11,000...........................              1,126              168
    12,000...........................              1,195              180
    13,000...........................              1,261              191
    14,000...........................              1,327              202
    15,000...........................              1,391              213
    16,000...........................              1,455              224
    17,000...........................              1,519              235
    18,000...........................              1,583              246
    19,000...........................              1,647              257
    20,000...........................              1,711              268
    21,000...........................              1,775              278

    Army National Guard:
    20,000...........................              1,650              550
    22,000...........................              1,775              615
    24,000...........................              1,900              645
    26,000...........................              1,945              675
    28,000...........................              1,945              705
    30,000...........................              1,945              725
    32,000...........................              1,945              730
    34,000...........................              1,945              735
    36,000...........................              1,945              738
    38,000...........................              1,945              741
    40,000...........................              1,945              743
    42,000...........................              1,945              743

    Naval Reserve:
    10,000...........................                340              143
    11,000...........................                364              156
    12,000...........................                386              169
    13,000...........................                407              182
    14,000...........................                423              195
    15,000...........................                435              208
    16,000...........................                447              221
    17,000...........................                459              234
    18,000...........................                471              247
    19,000...........................                483              260
    20,000...........................                495              273
    21,000...........................                507              286
    22,000...........................                519              299
    23,000...........................                531              312
    24,000...........................                540              325

    Marine Corps Reserve:
    1,100............................                 50               11
    1,200............................                 55               12
    1,300............................                 60               13
    1,400............................                 65               14
    1,500............................                 70               15
    1,600............................                 75               16
    1,700............................                 80               17
    1,800............................                 85               18
    1,900............................                 89               19
    2,000............................                 93               20
    2,100............................                 96               21
    2,200............................                 99               22
    2,300............................                101               23
    2,400............................                103               24
    2,500............................                105               25
    2,600............................                107               26

    Air Force Reserve:
    500..............................                 75               40
    1,000............................                145               75
    1,500............................                208              105
    2,000............................                270              130
    2,500............................                325              150
    3,000............................                375              170
    3,500............................                420              190
    4,000............................                460              210
    4,500............................                495              230
    5,000............................                530              250
    5,500............................                565              270
    6,000............................                600              290
    7,000............................                670              330
    8,000............................                740              370
    10,000...........................                800              400

    Air National Guard
    5,000............................              1,020              405
    6,000............................              1,070              435
    7,000............................              1,120              465
    8,000............................              1,170              490
    9,000............................              1,220              510
    10,000...........................              1,270              530
    11,000...........................              1,320              550
    12,000...........................              1,370              570
    13,000...........................              1,420              589
    14,000...........................              1,470              608
    15,000...........................              1,520              626
    16,000...........................              1,570              644
    17,000...........................              1,620              661
    18,000...........................              1,670              678
    19,000...........................              1,720              695
    20,000...........................              1,770              712.
    ------------------------------------------------------------------------

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

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

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

                  Subtitle C--Authorization of Appropriations

    SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

                       TITLE V--MILITARY PERSONNEL POLICY

                      Subtitle A--Officer Personnel Policy

    SEC. 501. GENERAL OFFICER POSITIONS.

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

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

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

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

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

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

    SEC. 504. AUTHORITY TO ADJUST DATE OF RANK.

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

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

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

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

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

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

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

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

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

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

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

                 Subtitle B--Reserve Component Personnel Policy

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

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

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

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

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

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

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

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

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

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

    SEC. 516. RETIREMENT OF RESERVE PERSONNEL WITHOUT REQUEST.

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

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

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

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

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

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

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

                       Subtitle C--Education and Training

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

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

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

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

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

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

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

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

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

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

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

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

    SEC. 536. FOREIGN PERSONS ATTENDING THE SERVICE ACADEMIES.

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

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

        (a) Medical and Dental Student Stipend.--Section 16201 of title 10,
    United States Code, is amended--
                (1) by redesignating subsection (e) as subsection (f); and
                (2) by inserting after subsection (d) the following new
            subsection (e):
        ``(e) Programs Leading to Initial Medical or Dental Degree.--(1)
    Under the stipend program under this chapter, the Secretary of the
    military department concerned may enter into an agreement with a person
    who--
                ``(A) is eligible to be appointed as an officer in a
            reserve component of the armed forces; and
                ``(B) is enrolled or has been accepted for enrollment in an
            accredited medical or dental school in a program of education
            and training that results in an initial degree in medicine or
            dentistry.
        ``(2) Under the agreement--
                ``(A) the Secretary of the military department concerned
            shall agree to pay the participant a stipend, in the amount
            determined under subsection (f), for the period or the
            remainder of the period that the student is satisfactorily
            progressing toward an initial degree in medicine or dentistry
            in a program of an accredited medical or dental school;
                ``(B) the participant shall not be eligible to receive such
            stipend before appointment, designation, or assignment as an
            officer for service in the Ready Reserve;
                ``(C) the participant shall be subject to such active duty
            requirements as may be specified in the agreement and to active
            duty in time of war or national emergency as provided by law
            for members of the Ready Reserve; and
                ``(D) the participant shall agree--
                        ``(i) to complete the program of education and
                    training in which enrolled or accepted for enrollment
                    as described in paragraph (1)(B);
                        ``(ii) to accept an appointment or designation in
                    the participant's reserve component, if tendered, based
                    upon the participant's health profession, following
                    satisfactory completion of the educational and
                    internship components of the program of education and
                    training;
                        ``(iii) if required by regulations prescribed by
                    the Secretary of Defense, to apply for (if eligible)
                    and accept (if offered) residency training in a health
                    profession skill that has been designated by the
                    Secretary of Defense as a skill critically needed by
                    the armed forces in wartime; and
                        ``(iv) to serve in the Selected Reserve, upon
                    successful completion of the program, for the period of
                    service applicable under paragraph (3).
        ``(3)(A) Except as provided in subparagraph (B), the minimum period
    for which a participant shall serve in the Selected Reserve under the
    agreement pursuant to paragraph (2)(D)(iv) shall be one year in the
    Selected Reserve for each six months, or part thereof, for which the
    participant is provided a stipend pursuant to the agreement.
        ``(B) If a participant referred to in subparagraph (A) enters into
    an agreement under subsection (b) and, after completing a program of
    education and training for which a stipend was provided under this
    subsection, successfully completes residency training in the specialty
    covered by the agreement, the minimum period for which the participant
    shall serve in the Selected Reserve under that agreement and the
    agreement under this subsection shall be one year for each year, or
    part thereof, for which a stipend was provided under this chapter.''.
        (b) Amount of Stipend.--Subsection (f) of such section, as
    redesignated by subsection (a), is amended by striking ``or (c)'' and
    inserting ``, (c), or (e)''.
        (c) Eligibility for Assistance for Graduate Medical or Dental
    Training.--Subsection (b) of such section is amended--
                (1) by striking ``Specialties.--'' and inserting ``Wartime
            Specialties.--''; and
                (2) in paragraph (1)(B), by inserting ``, or has been
            appointed,'' after ``assignment''.
        (d) Service Obligation for Stipend for Other Professional
    Programs.--(1) Subsection (b)(2)(D) of such section by striking ``agree
    to serve, upon successful completion of the program, two years in the
    Ready Reserve for each year,'' and inserting ``agree (subject to
    subsection (e)(3)(B)) to serve, upon successful completion of the
    program, one year in the Ready Reserve for each six months,''.
        (2) Subsection (c)(2)(D) of such section is amended by striking
    ``two years in the Ready Reserve for each year,'' and inserting ``one
    year in the Ready Reserve for each six months,''.
        (e) Conforming Amendments.--(1) Subsection (a) of such section is
    amended--
                (A) in the first sentence--
                        (i) by inserting ``in health professions and''
                    after ``qualified''; and
                        (ii) by striking ``training in such'' and inserting
                    ``education and training in such professions and''; and
                (B) in the second sentence, by striking ``training in
            certain'' and inserting ``education and training in certain
            health professions and''.
        (2) Subsections (b)(2)(A) and (c)(2)(A) of such section are amended
    by striking ``subsection (e)'' and inserting ``subsection (f)''.

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

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

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

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

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

               Subtitle D--Decorations, Awards, and Commendations

    SEC. 551. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO HUMBERT R.
                  VERSACE FOR VALOR DURING THE VIETNAM WAR.

        (a) Waiver of Time Limitations.--Notwithstanding the time
    limitations specified in section 3744 of title 10, United States Code,
    or any other time limitation with respect to the awarding of certain
    medals to persons who served in the military service, the President may
    award the Medal of Honor under section 3741 of that title to Humbert R.
    Versace for the acts of valor referred to in subsection (b).
        (b) Action Described.--The acts of valor referred to in subsection
    (a) are the actions of Humbert R. Versace between October 29, 1963, and
    September 26, 1965, while interned as a prisoner of war by the
    Vietnamese Communist National Liberation Front (Viet Cong) in the
    Republic of Vietnam.

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

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

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

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

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

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

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

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

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

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

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

                        Subtitle E--Funeral Honors Duty

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

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

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

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

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

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

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

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

                 Subtitle F--Uniformed Services Overseas Voting

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

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

    SEC. 572. UNIFORM NONDISCRIMINATORY VOTING STANDARDS FOR ADMINISTRATION
                  OF ELECTIONS UNDER STATE AND LOCAL ELECTION SYSTEMS.

        Section 102 of the Uniformed and Overseas Citizens Absentee Voting
    Act (42 U.S.C. 1973ff-1) is amended--
                (1) by inserting ``(a) Elections for Federal Offices.--''
            before ``Each State shall--''; and
                (2) by adding at the end the following new subsection (c):
        ``(c) General Principles for Voting by Overseas and Absent
    Uniformed Service Voters.--(1) A State shall ensure that each voting
    system used within the State for elections for Federal, State, and
    local offices provides overseas voters and absent uniformed service
    voters with a meaningful opportunity to exercise their voting rights as
    citizens of the United States.
        ``(2) A State shall count an absentee ballot for an election for
    Federal, State, or local office that is timely submitted by an overseas
    voter or absent uniformed service voter to the proper official of the
    State and is otherwise valid.''.

    SEC. 573. GUARANTEE OF RESIDENCY FOR MILITARY PERSONNEL.

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

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

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

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

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

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

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

    SEC. 577. ELECTRONIC VOTING DEMONSTRATION PROJECT.

        (a) In General.--The Secretary of Defense shall carry out a
    demonstration project under which absent uniformed services voters (as
    defined in section 107(1) of the Uniformed and Overseas Citizens
    Absentee Voting Act (42 U.S.C. 1973ff-6(1))) are permitted to cast
    ballots in the regularly scheduled general election for Federal office
    for November 2002, through an electronic voting system.
        (b) Coordination With State Election Officials.--To the greatest
    extent practicable, the Secretary of Defense shall carry out the
    demonstration project under this section through cooperative agreements
    with State election officials.
        (c) Report to Congress.--Not later than June 1, 2003, the Secretary
    of Defense shall submit a report to Congress analyzing the
    demonstration project conducted under this section, and shall include
    in the report any recommendations the Secretary of Defense considers
    appropriate for continuing the project on an expanded basis during the
    next regularly scheduled general election for Federal office.

    SEC. 578. FEDERAL VOTING ASSISTANCE PROGRAM.

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

                           Subtitle G--Other Matters

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

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

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

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

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

        (a) Lower Standard of Alcohol Concentration.--Section 911 of title
    10, United States Code (article 111 of the Uniform Code of Military
    Justice), is amended by striking ``0.10 grams'' both places it appears
    in paragraph (2) and inserting ``0.08 grams''.
        (b) Effective Date.--The amendments made by subsection (a) shall
    take effect on the date of the enactment of this Act and shall apply to
    acts described in paragraph (2) of section 911 of title 10, United
    States Code, that are committed on or after that date.

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

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

    SEC. 585. REVIEW OF ACTIONS OF SELECTION BOARDS.

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

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

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

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

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

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

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

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

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

              TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2002.

        (a) Waiver of Section 1009 Adjustment.--The adjustment to become
    effective during fiscal year 2002 required by section 1009 of title 37,
    United States Code, in the rates of monthly basic pay authorized
    members of the uniformed services shall not be made.
        (b) Increase in Basic Pay.--Effective on January 1, 2002, the rates
    of monthly basic pay for members of the uniformed services within each
    pay grade are as follows:

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

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

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

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

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

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

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

        (a) Compensation Authorized.--Section 206(d) of title 37, United
    States Code, is amended to read as follows:
        ``(d)(1) Compensation is payable under this section to a member in
    a grade below E-7 for a period of instruction or duty in pursuit of the
    satisfaction of educational requirements imposed on members of the
    uniformed services by law or regulations if--
                ``(A) the particular activity in pursuit of the
            satisfaction of such requirements is an activity approved for
            that period of instruction or duty by the commander who
            prescribes the instruction or duty for the member for that
            period; and
                ``(B) the member attains the learning objectives required
            for the period of instruction or duty, as determined under
            regulations prescribed by the Secretary concerned.
        ``(2) Acceptable means of pursuit of the satisfaction of
    educational requirements for the purposes of compensation under this
    section include any means (which may include electronic, documentary,
    or distributed learning) that is authorized for the attainment of
    educational credit toward the satisfaction of those requirements in
    regulations prescribed by the Secretary concerned.''.
        (b) Definition of Inactive-Duty Training.--Section 101(22) of title
    37, United States Code, is amended by striking ``but does not include
    work or study in connection with a correspondence course of a uniformed
    service''.

    SEC. 604. CLARIFICATIONS FOR TRANSITION TO REFORMED BASIC ALLOWANCE FOR
                  SUBSISTENCE.

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

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

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

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

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

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

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

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

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

               Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

    SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES
                  AND SPECIAL PAYS.

        (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37,
    United States Code, is amended by striking ``December 31, 2001,'' and
    inserting ``December 31, 2002,''.
        (b) Reenlistment Bonus for Active Members.--Section 308(g) of such
    title is amended by striking ``December 31, 2001'' and inserting
    ``December 31, 2002''.
        (c) Bonus for Enlistment for Two or More Years.--Section 309(e) of
    such title is amended by striking ``December 31, 2001'' and inserting
    ``December 31, 2002''.
        (d) Retention Bonus for Members With Critical Skills.--Section
    323(i) of such title is amended by striking ``December 31, 2001'' and
    inserting ``December 31, 2002''.

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

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

    SEC. 616. SUBMARINE DUTY INCENTIVE PAY RATES.

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

    SEC. 617. CAREER SEA PAY.

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

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

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

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

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

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

    SEC. 620. MODIFICATION OF THE NURSE OFFICER CANDIDATE ACCESSION PROGRAM
                  RESTRICTION ON STUDENTS ATTENDING CIVILIAN EDUCATIONAL
                  INSTITUTIONS WITH SENIOR RESERVE OFFICERS' TRAINING
                  PROGRAMS.

        Section 2130a of title 10, United States Code, is amended--
                (1) in subsection (a)(2), by striking ``that does not have
            a Senior Reserve Officers' Training Program established under
            section 2102 of this title''; and
                (2) in subsection (b)(1), by striking ``that does not have
            a Senior Reserve Officers' Training Program established under
            section 2102 of this title'' and inserting ``and, in the case
            of a student so enrolled at a civilian institution that has a
            Senior Reserve Officers' Training Program established under
            section 2102 of this title, is not eligible to participate in
            the Senior Reserve Officers' Training Program''.

                Subtitle C--Travel and Transportation Allowances

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

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

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

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

    SEC. 633. ELIGIBILITY FOR DISLOCATION ALLOWANCE.

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

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

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

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

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

        (a) Consolidation of Authorities.--Section 411f of title 37, United
    States Code, is amended--
                (1) in subsection (a)--
                        (A) by inserting ``Allowances Authorized.--(1)''
                    after ``(a)'';
                        (B) by striking ``the dependents of a member'' and
                    inserting ``eligible members of the family of a member
                    of the uniformed services'';
                        (C) by striking ``such dependents'' and inserting
                    ``such persons''; and
                        (D) by inserting at the end the following new
                    paragraph:
        ``(2) An attendant accompanying a person provided travel and
    transportation allowances under this section for travel to the burial
    ceremony for a deceased member may also be provided under the uniform
    regulations round trip travel and transportation allowances for travel
    to the burial ceremony if--
                ``(A) the accompanied person is unable to travel unattended
            because of age, physical condition, or other justifiable
            reason, as determined under the uniform regulations; and
                ``(B) there is no other eligible member of the family of
            the deceased member traveling to the burial ceremony who is
            eligible for travel and transportation allowances under this
            section and is qualified to serve as the attendant.'';
                (2) in subsection (b)--
                        (A) in paragraph (1)--
                                (i) by striking ``(1) Except as provided in
                            paragraph (2)'' and inserting ``Limitations.--
                            (1) Except as provided in paragraphs (2) and
                            (3)''; and
                                (ii) by inserting before the period at the
                            end the following: ``and the time necessary for
                            such travel'';
                        (B) in paragraph (2), by striking ``be extended to
                    accommodate'' and inserting ``not exceed the rates for
                    2 days and''; and
                        (C) by adding at the end the following new
                    paragraph:
        ``(3) If a deceased member is interred in a cemetery maintained by
    the American Battle Monuments Commission, the travel and transportation
    allowances authorized under this section may be provided to and from
    such cemetery and may not exceed the rates for 2 days and the time
    necessary for such travel.''; and
                (3) by striking subsection (c) and inserting the following:
        ``(c) Eligible Members of Family.--The following members of the
    family of a deceased member of the uniformed services are eligible for
    the travel and transportation allowances under this section:
                ``(1) The surviving spouse (including a remarried surviving
            spouse) of the deceased member.
                ``(2) The unmarried child or children of the deceased
            member referred to in section 401(a)(2) of this title.
                ``(3) If no person described in paragraphs (1) and (2) is
            provided travel and transportation allowances under this
            section, the parent or parents of the deceased member (as
            defined in section 401(b)(2) of this title).
                ``(4) If no person described in paragraphs (1), (2), and
            (3) is provided travel and transportation allowances under this
            section, then--
                        ``(A) the person who directs the disposition of the
                    remains of the deceased member under section 1482(c) of
                    title 10, or, in the case of a deceased member whose
                    remains are commingled and buried in a common grave in
                    a national cemetery, the person who would have been
                    designated under such section to direct the disposition
                    of the remains if individual identification had been
                    made; and
                        ``(B) up to two additional persons closely related
                    to the deceased member who are selected by the person
                    referred to in subparagraph (A).
        ``(d) Definitions.--In this section:
                ``(1) The term `burial ceremony' includes the following:
                        ``(A) An interment of casketed or cremated remains.
                        ``(B) A placement of cremated remains in a
                    columbarium.
                        ``(C) A memorial service for which reimbursement is
                    authorized under section 1482(d)(2) of title 10.
                        ``(D) A burial of commingled remains that cannot be
                    individually identified in a common grave in a national
                    cemetery.
                ``(2) The term `member of the family' includes a person
            described in section 1482(c)(4) of title 10 who, except for
            this paragraph, would not otherwise be considered a family
            member.''.
        (b) Repeal of Superseded Laws.--(1) Section 1482 of title 10,
    United States Code, is amended by striking subsection (d) and
    redesignating subsections (e), (f), and (g) as subsections (d), (e),
    and (f), respectively.
        (2) The Funeral Transportation and Living Expense Benefits Act of
    1974 (Public Law 93-257; 88 Stat. 53; 37 U.S.C. 406 note) is repealed.
        (c) Applicability.--The amendments made by this Act shall apply
    with respect to deaths that occur on or after the later of--
                (1) October 1, 2001; or
                (2) the date of the enactment of this Act.

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

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

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

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

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

        (a) Advance Payment of Storage Costs.--Section 2634(b) of title 10,
    United States Code, is amended by adding at the end the following new
    paragraph:
        ``(4) Storage costs payable under this subsection may be paid in
    advance.''.
        (b) Shipment in Permanent Change of Station Within CONUS.--
    Subsection (h)(1) of such section is amended--
                (1) by striking ``includes'' in the second sentence and all
            that follows and inserting ``includes the following:''; and
                (2) by adding at the end the following subparagraphs:
                        ``(A) An authorized change in home port of a
                    vessel.
                        ``(B) A transfer or assignment between two
                    permanent stations in the continental United States
                    when--
                                ``(i) the member cannot, because of injury
                            or the conditions of the order, drive the motor
                            vehicle between the permanent duty stations; or
                                ``(ii) the Secretary concerned determines
                            that it is advantageous and cost-effective to
                            the Government for one motor vehicle of the
                            member to be transported between the permanent
                            duty stations.''.
        (c) Effective Date.--This section and the amendments made by this
    section shall take effect on October 1, 2001.

        Subtitle D--Matters Relating to Retirement and Survivor Benefits

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

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

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

        (d) Effective Date.--(1) The amendments made by this section shall
    take effect on the later of--
                (A) the first day of the first month that begins after the
            date of the enactment of qualifying offsetting legislation as
            described in subsection (e); or
                (B) October 1, 2002.
        (2) No benefits may be paid to any person by reason of section 1414
    of title 10, United States Code, as added by the amendment made by
    subsection (a), for any period before the effective date under
    paragraph (1).
        (e) Effectiveness Contingent on Offsetting Legislation.--(1) The
    amendments made by this section shall be effective only if--
                (A) the President, in the budget for fiscal year 2003 that
            is submitted to Congress under section 1105(a) of title 31,
            United States Code, proposes legislation which, if enacted,
            would be qualifying offsetting legislation; and
                (B) there is enacted during the second session of the One
            Hundred Seventh Congress qualifying offsetting legislation.
        (2) In this section:
                (A) The term ``qualifying offsetting legislation'' means
            legislation (other than an appropriations Act) that includes
            provisions that--
                        (i) offset fully the increased outlays for each of
                    fiscal years 2003 through 2012 to be made by reason of
                    the amendments made by this section;
                        (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 with respect to fiscal years through fiscal year 2012
            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.

                           Subtitle E--Other Matters

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

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

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

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

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

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

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

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

                             TITLE VII--HEALTH CARE

                   Subtitle A--TRICARE Benefits Modernization

    SEC. 701. REQUIREMENT FOR INTEGRATION OF BENEFITS.

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

    SEC. 702. DOMICILIARY AND CUSTODIAL CARE.

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

    SEC. 703. LONG TERM CARE.

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

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

    SEC. 704. EXTENDED BENEFITS FOR DISABLED BENEFICIARIES.

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

    SEC. 705. CONFORMING REPEALS.

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

    SEC. 706. EFFECTIVE DATE.

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

                           Subtitle B--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

             Subtitle A--Procurement Management and Administration

    SEC. 801. MANAGEMENT OF PROCUREMENTS OF SERVICES.

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

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

    SEC. 802. SAVINGS GOALS FOR PROCUREMENTS OF SERVICES.

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

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

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

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

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

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

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

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

             Subtitle B--Defense Acquisition and Support Workforce

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

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

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

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

    SEC. 813. REVISION OF ACQUISITION WORKFORCE QUALIFICATION REQUIREMENTS.

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

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

                      Subtitle C--Use of Preferred Sources

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

        (a) Conditions for Competition.--(1) Chapter 141 of title 10,
    United States Code, is amended by adding at the end the following:
    ``Sec. 2410n. Products of Federal Prison Industries: procedural
                  requirements
        ``(a) Market Research Before Purchase.--Before purchasing a product
    listed in the latest edition of the Federal Prison Industries catalog
    under section 4124(d) of title 18, the Secretary of Defense shall
    conduct market research to determine whether the Federal Prison
    Industries product is comparable in price, quality, and time of
    delivery to products available from the private sector.
        ``(b) Limited Competition Requirement.--If the Secretary determines
    that a Federal Prison Industries product is not comparable in price,
    quality, and time of delivery to products available from the private
    sector, the Secretary shall use competitive procedures for the
    procurement of the product. In conducting such a competition, the
    Secretary shall consider a timely offer from Federal Prison Industries
    for award in accordance with the specifications and evaluation factors
    specified in the solicitation.
        ``(c) Exemptions.--Notwithstanding any other provision of law, the
    Secretary shall not be required--
                (1) to purchase from Federal Prison Industries any product
            that is--
                        (A) integral to, or embedded in, a product that is
                    not available from Federal Prison Industries; or
                        (B) a national security system; or
                (2) to make a purchase from Federal Prison Industries in a
            total amount that is less than the micropurchase threshold, as
            defined in section 32(f) of the Office of Federal Procurement
            Policy Act (41 U.S.C. 428(f)).
        ``(d) Definitions.--In this section:
                ``(1) The term `competitive procedures' has the meaning
            given that term in section 2302(2) of this title.
                ``(2) The term `national security system' means any
            telecommunications or information system operated by the United
            States Government, the function, operation, or use of which--
                        ``(A) involves intelligence activities;
                        ``(B) involves cryptologic activities related to
                    national security;
                        ``(C) involves command and control of military
                    forces;
                        ``(D) involves equipment that is an integral part
                    of a weapon or a weapon system; or
                        ``(E) is critical to the direct fulfillment of
                    military or intelligence missions, except for a system
                    that is to be used for routine administrative and
                    business applications (including payroll, finance,
                    logistics, and personnel management applications).''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following:

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

    SEC. 822. CONSOLIDATION OF CONTRACT REQUIREMENTS.

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

    ``2382. Consolidation of contract requirements: policy and
                                restrictions.''.
        (b) Data Review.--(1) The Secretary of Defense shall revise the
    data collection systems of the Department of Defense to ensure that
    such systems are capable of identifying each procurement that involves
    a consolidation of contract requirements within the department with a
    total value in excess of $5,000,000.
        (2) The Secretary shall ensure that appropriate officials of the
    Department of Defense periodically review the information collected
    pursuant to paragraph (1) in cooperation with the Small Business
    Administration--
                (A) to determine the extent of the consolidation of
            contract requirements in the Department of Defense; and
                (B) to assess the impact of the consolidation of contract
            requirements on the availability of opportunities for small
            business concerns to participate in Department of Defense
            procurements, both as prime contractors and as subcontractors.
        (3)(A) No official of the Department of Defense may modify any
    existing agency data collection system, create a new agency data
    collection system, or collect data not available in existing agency
    data collection systems for the purpose of complying with any
    requirement of law or regulation to collect data on the consolidation
    or bundling of contract requirements except to the extent necessary to
    comply with paragraph (1).
        (B) The prohibition relating to the collection of data under
    subparagraph (A) does not apply to any sampling or study of Department
    of Defense contracts that--
                (i) is carried out for the purposes of reviewing and
            assessing such contracts; and
                (ii) does not require a modification of data collection
            systems, or the creation of new data collection systems, in the
            Department of Defense.
        (4) In this subsection:
                (A) The term ``bundling of contract requirements'' has the
            meaning given that term in section 3(o)(2) of the Small
            Business Act (15 U.S.C. 632(o)(2)).
                (B) The term ``consolidation of contract requirements'' has
            the meaning given that term in section 2382(c)(1) of title 10,
            United States Code, as added by subsection (a).

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

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

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

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

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

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

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

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

          TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                          TITLE X--GENERAL PROVISIONS

                         Subtitle A--Financial Matters

    SEC. 1001. TRANSFER AUTHORITY.

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

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

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

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

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

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

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

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

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

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

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

    SEC. 1007. SENIOR FINANCIAL MANAGEMENT OVERSIGHT COUNCIL AND FINANCIAL
                  FEEDER SYSTEMS COMPLIANCE PROCESS.

        (a) Establishment of Senior Financial Management Oversight
    Council.--(1) The Secretary of Defense shall establish a Senior
    Financial Management Oversight Council.
        (2) The Council shall be composed of the Under Secretary of Defense
    (Comptroller), the Under Secretary of Defense (Acquisition, Technology,
    and Logistics), the Under Secretary of Defense (Personnel and
    Readiness), and other key managers of the Department of Defense
    (including key managers in Defense Agencies and military departments)
    who are designated by the Secretary.
        (3) The Under Secretary of Defense (Comptroller) shall be the
    Chairman of the Council.
        (b) Duties.--The Senior Financial Management Oversight Council
    shall have the following duties:
                (1) To establish a financial and feeder systems compliance
            process that ensures that each critical accounting, financial
            management, and feeder system of the Department of Defense is
            compliant with applicable Federal financial management and
            reporting requirements.
                (2) To develop a management plan for the implementation of
            the financial and feeder systems compliance process.
                (3) To supervise and monitor the actions that are necessary
            to implement the management plan, as approved by the Secretary
            of Defense.
        (c) Management Plan for Implementation of Financial Feeder Systems
    Compliance Process.--The management plan developed under subsection
    (b)(2) shall include among its principal elements at least the
    following elements:
                (1) A requirement to establish and maintain a complete
            inventory of all critical systems necessary to produce and
            compile data for financial statements.
                (2) A phased process for improving systems that provides
            for mapping financial data flow from sources to financial
            statements before other actions are initiated.
                (3) Periodic submittal of status reports to the Senior
            Financial Management Oversight Council.
                (4) Documentation of the completion of each phase of the
            improvement of a system.
                (5) Independent audit at the validation phase for each
            critical system.
        (d) Report.--(1) 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 implementation of the
    Senior Financial Management Oversight Council and financial feeder
    systems compliance process.
        (2) The report shall include a discussion of the following matters:
                (A) The Senior Financial Management Oversight Council (or
            any successor organization), including--
                        (i) composition;
                        (ii) the roles and responsibilities regarding
                    supervision and monitoring of the actions necessary to
                    ensure that the critical accounting, financial
                    management, and feeder systems of the Department of
                    Defense comply with Federal financial management and
                    reporting requirements; and
                        (iii) a summary of the actions taken by the Council
                    to ensure that the systems comply with such
                    requirements.
                (B) The principal elements of the management plan developed
            under subsection (b)(2) that are being implemented or that the
            Secretary plans to implement, including--
                        (i) a summary of all actions that have been taken
                    to implement each of the elements; and
                        (ii) a schedule, with specific milestones, for
                    completing the implementation of each of the elements.
                (C) The principal elements of the management plan that the
            Secretary does not plan to implement, together with the reasons
            for not implementing those elements.

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

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

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

                          Subtitle B--Strategic Forces

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

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

    SEC. 1012. BOMBER FORCE STRUCTURE.

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

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

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

                       Subtitle C--Reporting Requirements

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

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

    SEC. 1022. REPORT ON COMBATING TERRORISM.

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

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

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

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

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

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

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

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

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

                    Subtitle D--Armed Forces Retirement Home

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

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

    SEC. 1042. DEFINITIONS.

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

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

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

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

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

    SEC. 1044. CHIEF OPERATING OFFICER.

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

    ``SEC. 1515. CHIEF OPERATING OFFICER.

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

    SEC. 1045. RESIDENTS OF RETIREMENT HOME.

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

    ``SEC. 1514. FEES PAID BY RESIDENTS.

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

    SEC. 1046. LOCAL BOARDS OF TRUSTEES.

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

    ``SEC. 1516. LOCAL BOARDS OF TRUSTEES.

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

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

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

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

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

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

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

    SEC. 1049. TRANSITIONAL PROVISIONS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    SEC. 1051. AMENDMENTS OF OTHER LAWS.

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

                           Subtitle E--Other Matters

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

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

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

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

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

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

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

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

    SEC. 1065. RETENTION OF TRAVEL PROMOTIONAL ITEMS.

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

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

                       Subtitle A--Intelligence Personnel

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

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

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

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

                   Subtitle B--Matters Relating to Retirement

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

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

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

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

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

    SEC. 1113. REPEAL OF FISCAL YEAR 2003 LIMITATION ON EXERCISE OF
                  VOLUNTARY SEPARATION INCENTIVE PAY AUTHORITY AND
                  VOLUNTARY EARLY RETIREMENT AUTHORITY.

        Section 1153(b)(2) of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted into law by Public
    Law 106-398; 114 Stat. 1654A-323) is amended by striking ``during
    fiscal years 2002 and 2003'' and inserting ``during fiscal year 2002''.

                           Subtitle C--Other Matters

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

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

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

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

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

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

                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

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

    SEC. 1202. FUNDING ALLOCATIONS.

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

    SEC. 1203. CHEMICAL WEAPONS DESTRUCTION.

        Section 1305 of the National Defense Authorization Act for Fiscal
    Year 2000 (Public Law 106-65; 113 Stat. 794; 22 U.S.C. 5952 note) is
    amended by inserting before the period at the end the following:
    ``until the Secretary of Defense submits to Congress a certification
    that there has been--
                ``(1) full and accurate disclosure by Russia of the size of
            its existing chemical weapons stockpile;
                ``(2) a demonstrated annual commitment by Russia to
            allocate at least $25,000,000 to chemical weapons elimination;
                ``(3) development by Russia of a practical plan for
            destroying its stockpile of nerve agents;
                ``(4) enactment of a law by Russia that provides for the
            elimination of all nerve agents at a single site;
                ``(5) an agreement by Russia to destroy 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. 1204. MANAGEMENT OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
                  FUNDS.

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

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

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

                           Subtitle B--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

             TITLE XIII--CONTINGENT AUTHORIZATION OF APPROPRIATIONS

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

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

    SEC. 1302. REDUCTIONS.

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

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

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

                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    SEC. 2001. SHORT TITLE.

        This division may be cited as the ``Military Construction
    Authorization Act for Fiscal Year 2002''.

                                TITLE XXI--ARMY

    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................................        $11,400,000
                                                      Redstone Arsenal...........................         $7,200,000
    Alaska..........................................  Fort Richardson............................       $115,000,000
                                                      Fort Wainwright............................        $27,200,000
    Arizona.........................................  Fort Huachuca..............................         $6,100,000
    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 Air Field.........        $39,800,000
    Hawaii..........................................  Navy Public Works Center, Pearl Harbor.....        $11,800,000
                                                      Pohakuloa Training Facility................         $6,600,000
                                                      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..................................        $11,600,000
    Louisiana.......................................  Fort Polk..................................        $21,200,000
    Maryland........................................  Aberdeen Proving Ground....................        $58,300,000
                                                      Fort Meade.................................         $5,800,000
    Missouri........................................  Fort Leonard Wood..........................         $7,850,000
    New Jersey......................................  Fort Monmouth..............................        $20,000,000
    New Mexico......................................  White Sands Missile Range..................         $7,600,000
    New York........................................  Fort Drum..................................        $37,850,000
    North Carolina..................................  Fort Bragg.................................        $21,300,000
                                                      Sunny Point Military Ocean Terminal........        $11,400,000
    Oklahoma........................................  Fort Sill..................................        $18,600,000
    South Carolina..................................  Fort Jackson...............................        $62,000,000
    Texas...........................................  Fort Hood..................................        $86,200,000
                                                      Fort Sam Houston...........................         $2,250,000
    Virginia........................................  Fort Belvoir...............................        $35,950,000
                                                      Fort Eustis................................        $34,650,000
                                                      Fort Lee...................................        $23,900,000
    Washington......................................  Fort Lewis.................................       $238,200,000
                                                                                                  ------------------
                                                          Total:.................................     $1,258,000,000
    ----------------------------------------------------------------------------------------------------------------

        (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
    ------------------------------------------------------------------------
                                         Installation or
                Country                      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
    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
    Kwajalein......................  Kwajalein Atoll........     $11,000,000
                                                             ---------------
                                         Total:.............    $243,743,000
    ------------------------------------------------------------------------

        (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 county              Installation or location             Purpose                 Amount
    ----------------------------------------------------------------------------------------------------------------
    Alaska................................  Fort Wainwright..........  32 Units.....................     $12,000,000
    Arizona...............................  Fort Huachuca............  72 Units.....................     $10,800,000
    Kansas................................  Fort Leavenworth.........  40 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 $12,702,000.

    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 $3,068,303,000, as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2101(a), $1,027,300,000.
                (2) For military construction projects outside the United
            States authorized by section 2101(b), $243,743,000.
                (3) For military construction projects at unspecified
            worldwide locations 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, $142,198,000.
                (6) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $313,852,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $1,108,991,000.
                (7) For the Homeowners Assistance Program, as authorized by
            section 2832 of title 10, United States Code, $10,119,000, to
            remain available until expended.
                (8) For the construction of the Cadet Development Center,
            United States Military Academy, West Point, New York,
            authorized in 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.
                (9) For the construction of a Barracks Complex--Tagaytay
            Street Phase 2C, Fort Bragg, North Carolina, authorized in
            section 2101(a) of the Military Construction Authorization Act
            for Fiscal Year 2000 (division B of Public Law 106-65; 113
            Stat. 824), $17,500,000.
                (10) For the construction of a Barracks Complex--Wilson
            Street, Phase 1C, Schofield Barracks, Hawaii, authorized in
            section 2101(a) of the Military Construction Authorization Act
            for Fiscal Year 2000 (113 Stat. 824), $23,000,000.
                (11) For construction of a Basic Combat Training Complex
            Phase 2, Fort Leonard Wood, Missouri, authorized in section
            2101(a) of the Military Construction Authorization Act for
            Fiscal Year 2001 (division B of the Floyd D. Spence National
            Defense Authorization Act for Fiscal Year 2001 (as enacted by
            Public Law 106-398); 114 Stat. 1654A-389), $27,000,000.
                (12) For the construction of the Battle Simulation Center
            Phase 2, Fort Drum, New York, authorized in section 2101(a) of
            the Military Construction Authorization Act for Fiscal Year
            2001 (114 Stat. 1654A-389), $9,000,000.
                (13) For the construction of a Barracks Complex--Bunter
            Road Phase 2, Fort Bragg, North Carolina, authorized in section
            2101(a) of the Military Construction Authorization Act for
            Fiscal Year 2001 (114 Stat. 1654A-389), $49,000,000.
                (14) For the construction of a Barracks Complex--Longstreet
            Road Phase 2, Fort Bragg, North Carolina, authorized in section
            2101(a) of the Military Construction Authorization Act for
            Fiscal Year 2001 (114 Stat. 1654A-389), $27,000,000.
                (15) For the construction of a Multipurpose Digital
            Training Range, Fort Hood, Texas, authorized in section 2101(a)
            of the Military Construction Authorization Act for Fiscal Year
            2001 (114 Stat. 1654A-389), $13,000,000.
        (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 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 2101(a) for Barracks Complex D Street Phase at Fort
            Richardson, Alaska);
                (3) $41,000,000 (the balance of the amount authorized under
            section 2101(a) for Barracks Complex--Nelson Boulevard (Phase
            I) at Fort Carson, Colorado);
                (4) $36,000,000 (the balance of the amount authorized under
            section 2101(a) for Basic Combat Training Complex (Phase I) at
            Fort Jackson, South Carolina); and
                (5) $102,000,000 (the balance of the amount authorized
            under section 2101(a) for Barracks Complex--17th & B Street
            (Phase I) at Fort Lewis, Washington).
        (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
    $3,300,000, which represents savings resulting from adjustments to
    foreign currency exchange rates for military family housing
    construction and military family housing support outside the United
    States.

    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
    Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001
    (as enacted by Public Law 106-398); 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''.

                                TITLE XXII--NAVY

    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
    ------------------------------------------------------------------------
                                         Installation or
                 State                       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           $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          $47,240,000
                                      Diego.
    District of Columbia...........  Naval Air Facility,          $9,810,000
                                      Washington.
    Florida........................  Naval Air Station, Key      $11,400,000
                                      West.
                                     Naval Air Station,           $3,700,000
                                      Pensacola.
                                     Naval Air Station,           $2,140,000
                                      Whiting Field, Milton.
                                     Naval Station, Mayport.     $16,420,000
    Hawaii.........................  Marine Corps Base,          $24,920,000
                                      Kaneohe.
                                     Naval Magazine,              $6,000,000
                                      Lualualei.
                                     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        $5,820,000
                                      Center, Crane.
    Maine..........................  Naval Air Station,          $67,395,000
                                      Brunswick.
                                     Naval Shipyard, Kittery-    $14,620,000
                                      Portsmouth.
    Maryland.......................  Naval Air Warfare            $2,260,000
                                      Center, Patuxent River.
                                     Naval Explosive              $1,250,000
                                      Ordinance Disposal
                                      Technology Center,
                                      Indian Head.
    Mississippi....................  Naval Construction          $21,660,000
                                      Battalion Center,
                                      Gulfport.
                                     Naval Air Station,           $3,370,000
                                      Meridian.
                                     Naval Station,               $4,680,000
                                      Pascagoula.
    Missouri.......................  Marine Corp 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.
    Rhode Island...................  Naval Station, Newport.     $15,290,000
                                     Naval Undersea 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.
    Texas..........................  Naval Air Station,           $6,160,000
                                      Kingsville.
    Virginia.......................  Marine Corps Air             $3,790,000
                                      Facility, Quantico.
                                     Marine Corps Combat          $9,390,000
                                      Development Command,
                                      Quantico.
                                     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:.............    $996,610,000
    ------------------------------------------------------------------------

        (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
    ------------------------------------------------------------------------
                                         Installation or
                Country                      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 or country              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,         172 Units....................     $55,187,000
                                             Kaneohe.
                                            Naval Station, Pearl       70 Units.....................     $16,827,000
                                             Harbor.
    Mississippi...........................  Naval Construction         160 Units....................     $23,354,000
                                             Battalion Center,
                                             Gulfport.
    Italy.................................  Naval Air Station,         10 Units.....................      $2,403,000
                                             Sigonella.
                                                                                                     ---------------
                                                                           Total:...................    $123,038,000
    ----------------------------------------------------------------------------------------------------------------

        (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 $183,054,000.

    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 $2,377,634,000, as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2201(a), $963,370,000.
                (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, $35,752,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $312,591,000.
                        (B) For support of military family housing
                    (including functions described in section 2833 of title
                    10, United States Code), $918,095,000.
                (6) For replacement of a pier at Naval Station, San Diego,
            California, authorized in section 2201(a) of the Military
            Construction Authorization Act for Fiscal Year 2001 (division B
            of the Floyd D. Spence National Defense Authorization Act for
            Fiscal Year 2001 (as enacted by Public Law 106-398); 114 Stat.
            1654A-395), $17,500,000.
                (7) For replacement of Pier Delta at Naval Station,
            Bremerton, Washington, authorized in section 2201(a) of the
            Military Construction Authorization Act for Fiscal Year 2001,
            $24,460,000.
                (8) For construction of the Commander-in-Chief
            Headquarters, Pacific Command, Camp Smith, Hawaii, authorized
            in section 2201(a) of the Military Construction Authorization
            Act for Fiscal Year 2000 (division B of Public Law 106-65; 113
            Stat. 828), $37,580,000.
                (9) For construction of an Advanced Systems Integration
            Facility, phase 6, at Naval Air Warfare Center, Patuxent River,
            Maryland, authorized in 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.
        (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); and
                (2) $33,240,000 (the balance of the amount authorized under
            section 2201(a) for Pier Replacement (Increment I), Naval
            Station, Norfolk, Virginia).
        (c) 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
    $700,000, which represents savings resulting from adjustments to
    foreign currency exchange rates for military family housing
    construction and military family housing support outside the United
    States.

    SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
                  2001 PROJECTS.

        The table in section 2201(a) of the Military Construction
    Authorization Act for Fiscal Year 2001 (division B of the Floyd D.
    Spence National Defense Authorization Act for Fiscal Year 2001 (as
    enacted by Public Law 106-398); 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 ``$98,740,000'';
                (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 ``$799,497,000''.

    SEC. 2206. MODIFICATION OF AUTHORITY TO CARRY OUT 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 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.

        (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
    ------------------------------------------------------------------------
                                         Installation or
                 State                       location             Amount
    ------------------------------------------------------------------------
    Alabama........................  Maxwell Air Force Base.     $34,400,000
    Alaska.........................  Eareckson Air Force          $4,600,000
                                      Base.
                                     Elmendorf Air Force         $32,200,000
                                      Base.
    Arizona........................  Davis-Monthan Air Force     $17,300,000
                                      Base.
    Arkansas.......................  Little Rock Air Force       $18,100,000
                                      Base.
    California.....................  Edwards Air Force Base.     $16,300,000
                                     Los Angeles Air Force       $23,000,000
                                      Base.
                                     Travis Air Force Base..     $16,400,000
                                     Vandenberg Air Force        $11,800,000
                                      Base.
    Colorado.......................  Buckley Air Force Base.     $23,200,000
                                     Schriever Air Force         $19,000,000
                                      Base.
                                     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           $7,800,000
                                      Force Station.
                                     Eglin Air Force Base...     $11,400,000
                                     Hurlburt Field.........     $10,400,000
                                     MacDill Air Force Base.     $10,000,000
                                     Tyndall Air Force Base.     $15,050,000
    Georgia........................  Moody Air Force Base...      $8,600,000
                                     Robins Air Force Base..     $14,650,000
    Idaho..........................  Mountain Home Air Force     $14,600,000
                                      Base.
    Louisiana......................  Barksdale Air Force          $5,000,000
                                      Base.
    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          $4,650,000
                                      Base.
    Nebraska.......................  Offet Air Force Base...     $10,400,000
    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     $15,500,000
    North Carolina.................  Pope Air Force Base....     $17,800,000
    North Dakota...................  Grand Forks Air Force        $7,800,000
                                      Base.
    Ohio...........................  Wright-Patterson Air        $24,850,000
                                      Force Base.
    Oklahoma.......................  Altus Air Force Base...     $20,200,000
                                     Tinker Air Force Base..     $21,400,000
                                     Vance Air Force Base...      $4,800,000
    South Carolina.................  Shaw Air Force Base....      $5,800,000
    South Dakota...................  Ellsworth Air Force         $12,000,000
                                      Base.
    Tennessee......................  Arnold Air Force Base..     $24,400,000
    Texas..........................  Lackland Air Force Base     $12,800,000
                                     Laughlin Air Force Base     $12,000,000
                                     Sheppard Air Force Base     $37,000,000
    Utah...........................  Hill Air Force Base....     $14,000,000
    Virginia.......................  Langley Air Force Base.     $47,300,000
    Washington.....................  Fairchild Air Force          $2,800,000
                                      Base.
                                     McChord Air Force Base.     $20,700,000
    Wyoming........................  F.E. Warren Air Force       $10,200,000
                                      Base.
                                                             ---------------
                                         Total:.............    $811,370,000
    ------------------------------------------------------------------------

        (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
    ------------------------------------------------------------------------
                                         Installation or
                Country                      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
    Turkey.........................  Eskisehir..............      $4,000,000
    United Kingdom.................  Royal Air Force,            $11,300,000
                                      Lakenheath.
                                     Royal Air Force,            $22,400,000
                                      Mildenhall.
    Wake Island....................  Wake Island............     $25,000,000
                                                             ---------------
                                         Total:.............    $249,392,000
    ------------------------------------------------------------------------

        (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 or country              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
    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:...................    $140,800,000
    ----------------------------------------------------------------------------------------------------------------

        (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
    $375,379,000.

    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
    $2,579,791,000, as follows:
                (1) For military construction projects inside the United
            States authorized by section 2301(a), $816,070,000.
                (2) For military construction projects outside the United
            States authorized by section 2301(b), $249,392,000.
                (3) For the military construction projects at unspecified
            worldwide locations 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, $90,419,000.
                (6) For military housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $542,381,000.
                        (B) For support of military family housing
                    (including functions described in section 2833 of title
                    10, United States Code), $869,121,000.
        (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 2301 of this
    Act may not exceed the total amount authorized to be appropriated under
    paragraphs (1), (2), and (3) of subsection (a).
        (c) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (6) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs reduced by
    $3,300,000, which represents savings resulting from adjustments to
    foreign currency exchange rates for military family housing
    construction and military family housing support outside the United
    States.

    SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
                  2001 PROJECT.

        The table in section 2302(a) of the Military Construction
    Authorization Act for Fiscal Year 2001 (division B of the Floyd D.
    Spence National Defense Authorization Act for Fiscal Year 2001 (as
    enacted by Public Law 106-398); 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''.

                          TITLE XXIV--DEFENSE AGENCIES

    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
    ------------------------------------------------------------------------
                                         Installation or
                 Agency                      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        $19,900,000
                                      Depot, Susquehanna,
                                      New 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             $3,200,000
                                      Ground, Maryland......
                                     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.....
                                     CONUS Classified.......      $2,400,000
    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         $11,000,000
                                      Army Air Field,
                                      Georgia...............
                                     Holloman Air Force           $5,700,000
                                      Base, 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
    ------------------------------------------------------------------------
                                         Installation or
                 Agency                      location             Amount
    ------------------------------------------------------------------------
    Defense Education Activity.....  Aviano Air Base, Italy.      $3,647,000
                                     Geilenkirchen, Germany.      $1,733,000
                                     Heidelberg, Germany....      $3,312,000
                                     Kaiserslautern, Germany      $1,439,000
                                     Kitzingen, Germany.....      $1,394,000
                                     Landstuhl, Germany.....      $1,444,000
                                     Ramstein Air 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.......  Andersen Air Force          $20,000,000
                                      Base, Guam............
                                     Camp Casey, Korea......      $5,500,000
                                     Naval Station, Rota,         $3,000,000
                                      Spain.................
                                     Yokota Air Base, Japan.     $13,000,000
    Office of 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 2405(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 $35,600,000.

    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 $1,492,956,000, 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, $87,382,000.
                (6) For energy conservation projects authorized by section
            2402 of this Act, $35,600,000.
                (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), $592,200,000.
                (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 construction of the Ammunition Demilitarization
            Facility Phase 6, Pine Bluff Arsenal, Arkansas, authorized in
            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. 538), 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 2408 of this Act, $26,000,000.
                (10) For construction of the Ammunition Demilitarization
            Facility Phase 3, Pueblo Army Depot, Colorado, authorized in
            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 the Ammunition Demilitarization
            Facility Phase 4, Newport Army Depot, Indiana, authorized in
            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 the Ammunition Demilitarization
            Facility phase 4, Aberdeen Proving Ground, Maryland, authorized
            in section 2401(a) of the Military Construction Authorization
            Act for Fiscal Year 1999 (112 Stat. 2193), as amended by
            section 2407 of this Act, $66,500,000.
                (13) For construction of the Ammunition Demilitarization
            Facility Phase 2, Blue Grass Army Depot, Kentucky, authorized
            in section 2401(a) of the Military Construction Authorization
            Act for Fiscal Year 2000 (division B of Public Law 106-65; 113
            Stat. 835), as amended by section 2406 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) Adjustment.--The total amount authorized to be appropriated
    pursuant to paragraphs (1) through (8) of subsection (a) is the sum of
    the amounts authorized to be appropriated in such paragraphs reduced by
    $1,700,000, which represents savings resulting from adjustments to
    foreign currency exchange rates for military family housing
    construction and military family housing support outside the United
    States.

    SEC. 2404. CANCELLATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
                  2001 PROJECTS.

        (a) Cancellation of Projects at Camp Pendleton, California.--(1)
    The table in section 2401(a) of the Military Construction Authorization
    Act for Fiscal Year 2001 (division B of the Floyd D. Spence National
    Defense Authorization Act for Fiscal Year 2001 (as enacted by Public
    Law 106-398); 114 Stat. 1654A-402) is amended--
                (A) by striking the item relating to Marine Corps Base,
            Camp Pendleton, California, under the heading TRICARE
            Management Activity; and
                (B) by striking the amount identified as the total in the
            amount column and inserting ``$242,756,000''.
        (2) 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). Such amount is the
    amount authorized to be appropriated by section 2403(a) of the Military
    Construction Authorization Act for Fiscal Year 2001 for purposes
    authorized in section 2401(a) of that Act relating to Marine Corps
    Base, Camp Pendleton, California.
        (b) Conforming Amendments.--Section 2403(a) of that Act is
    amended--
                (1) in the matter preceding paragraph (1), by striking
            ``$1,883,902,000'' and inserting ``$1,828,902,000''; and
                (2) in paragraph (3), by striking ``$85,095,000'' and
            inserting ``$30,095,000''.

    SEC. 2405. CANCELLATION OF AUTHORITY TO CARRY OUT ADDITIONAL FISCAL
                  YEAR 2001 PROJECT.

        (a) Cancellation of Authority.--Section 2401(c) the Military
    Construction Authorization Act for Fiscal Year 2001 (division B of the
    Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001
    (as enacted by Public Law 106-398); 114 Stat. 1654A-404) is amended by
    striking ``$451,135,000'' and inserting ``$30,095,000''.
        (b) Conforming Amendments.--Section 2403 of that Act is amended--
                (1) in subsection (a)--
                        (A) in the matter preceding paragraph (1), by
                    striking ``$1,883,902,000'' and inserting
                    ``$1,828,902,000''; and
                        (B) in paragraph (3), by striking ``$85,095,000''
                    and inserting ``$30,095,000''; 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. 2406. 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) in the item under the heading Chemical Demilitarization
            relating to Blue Grass Army Depot, Kentucky, by striking
            ``$206,800,000'' and inserting ``$254,030,000'';
                (2) under the heading relating to TRICARE Management
            Agency--
                        (A) in the item relating to Fort Wainwright,
                    Alaska, by striking ``$133,000,000'' 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) 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''.
        (c) Treatment of Authorization of Appropriations for Canceled
    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). Such amount is the
    amount authorized to be appropriated by section 2405(a) of the Military
    Construction Authorization Act for Fiscal Year 2000 for purposes
    authorized in section 2401(a) of that Act relating to Naval Air
    Station, Whidbey Island, Washington.

    SEC. 2407. 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) in the item under the agency heading Chemical
            Demilitarization 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. 2408. 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 further amended under the
    agency heading relating to Chemical Weapons 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''.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                    PROGRAM

    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 FORCES FACILITIES

    SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
                  ACQUISITION PROJECTS.

        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, $365,240,000; and
                        (B) for the Army Reserve, $111,404,000.
                (2) For the Department of the Navy, for the Naval and
            Marine Corps Reserve, $33,641,000.
                (3) For the Department of the Air Force--
                        (A) for the Air National Guard of the United
                    States, $227,232,000; and
                        (B) for the Air Force Reserve, $53,732,000.

            TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

    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 Floyd D.
    Spence National Defense Authorization Act for Fiscal Year 2001 (as
    enacted by Public Law 106-398; 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.  Replacement Family Housing        $13,500,000
                                                                        Construction (94 units).
    California............................  Marine Corps Air Station,  Family Housing Construction       $28,881,000
                                             Miramar.                   (166 units).
    Louisiana.............................  Naval Complex, New         Replacement Family Housing        $11,930,000
                                             Orleans.                   Construction (100 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.

        (a) Projects Requiring Advance Approval of Secretary Concerned.--
    Subsection (b)(1) of section 2805 of title 10, United States Code,
    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. UNFORESEEN ENVIRONMENTAL HAZARD REMEDIATION AS BASIS FOR
                  AUTHORIZED COST VARIATIONS FOR MILITARY CONSTRUCTION AND
                  FAMILY HOUSING CONSTRUCTION PROJECTS.

        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 cost of any environmental hazard remediation
            required by law, including asbestos removal, radon abatement,
            and lead-based paint removal or abatement, if such remediation
            could not have reasonably been anticipated at the time the
            project was approved originally by Congress.''.

    SEC. 2803. REPEAL OF REQUIREMENT FOR ANNUAL REPORTS TO CONGRESS 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. AUTHORITY AVAILABLE FOR LEASE OF PROPERTY AND FACILITIES
                  UNDER ALTERNATIVE AUTHORITY FOR ACQUISITION AND
                  IMPROVEMENT OF MILITARY HOUSING.

        (a) Lease Authorities Available.--Section 2878 of title 10, United
    States Code, is amended--
                (1) by redesignating subsections (c) and (d) as subsections
            (d) and (e), respectively; and
                (2) by inserting after subsection (b) the following new
            subsection (c):
        ``(c) Lease Authorities Available.--(1) The Secretary concerned may
    use any authority or combination of authorities available under section
    2667 of this title in leasing property or facilities under this section
    to the extent such property or facilities, as the case may be, are
    described by subsection (a)(1) of such section 2667.
        ``(2) The limitation in subsection (b)(1) of section 2667 of this
    title shall not apply with respect to a lease of property or facilities
    under this section.''.
        (b) Conforming Amendment.--Subsection (e) of that section, as
    redesignated by subsection (a) of this section, is further amended--
                (1) by striking paragraph (1); and
                (2) by redesignated paragraphs (2), (3), and (4) as
            paragraphs (1), (2), and (3), respectively.
        (c) Technical Amendment.--Paragraph (3) of subsection (e) of that
    section, as redesignated by this section, is further amended by
    striking ``Stewart B. McKinney Homeless Assistance Act'' and inserting
    ``McKinney-Vento Homeless Assistance Act''.

    SEC. 2805. 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
        ``To the extent provided in advance in appropriations Acts, the
    Secretary of Defense may, 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, transfer 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 armed force for that fiscal year amounts equal to any
    additional amounts payable during that fiscal year to members of that
    armed force assigned to such 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.''.
        (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.''.

            Subtitle B--Real Property and Facilities Administration

    SEC. 2811. AVAILABILITY OF PROCEEDS OF SALES OF DEPARTMENT OF DEFENSE
                  PROPERTY FROM CLOSED MILITARY INSTALLATIONS.

        Section 204(h)(2) of the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 485(h)(2)) 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.''.

    SEC. 2812. PILOT EFFICIENT FACILITIES INITIATIVE.

        (a) Initiative Authorized.--The Secretary of Defense may carry out
    a pilot program for purposes of determining the potential for
    increasing the efficiency and effectiveness of the operation of
    military installations. The pilot program shall be known as the ``Pilot
    Efficient Facilities Initiative'' (in this section referred to as the
    ``Initiative'').
        (b) Designation of Participating Facilities.--(1) The Secretary may
    designate up to two installations of each military department for
    participation in the Initiative.
        (2) The Secretary shall transmit to the Committees on Armed
    Services of the Senate and the House of Representatives a written
    notification of each installation proposed to be included in the
    Initiative not less than 30 days before taking any action to carry out
    the Initiative at such installation.
        (3) The Secretary shall include in the notification regarding an
    installation designated for participation in the Initiative a
    management plan for the Initiative at the installation. Each management
    plan for an installation shall include the following:
                (A) A description of--
                        (i) each proposed lease of real or personal
                    property located at the installation;
                        (ii) each proposed disposal of real or personal
                    property located at the installation;
                        (iii) each proposed leaseback of real or personal
                    property leased or disposed of at the installation;
                        (iv) 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
                        (v) each other action proposed to be taken to
                    improve mission effectiveness and reduce the cost of
                    providing quality installation support at the
                    installation.
                (B) With respect to each proposed action described under
            subparagraph (A)--
                        (i) an estimate of the savings expected to be
                    achieved as a result of the action;
                        (ii) each regulation not required by statute that
                    is proposed to be waived to implement the action; and
                        (iii) 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,
                            proposed to be waived in the event of the
                            waiver.
                (C) A description of the steps taken by the Secretary to
            consult with employees at the facility, and communities in the
            vicinity of the facility, regarding the Initiative at the
            installation.
                (D) Measurable criteria for the evaluation of the effects
            of the actions to be taken pursuant to the Initiative at the
            installation.
        (c) 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 an Act that is enacted
    after the date of the enactment of this Act.
        (d) Installation Efficiency Project Fund.--(1) There is established
    on the books of the Treasury a fund to be known as the ``Installation
    Efficiency Project Fund'' (in this subsection referred to as the
    ``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 concerned for purposes of managing capital assets and
    providing support services at 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
    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 of Defense shall structure the Fund, and provide
    administrative policies and procedures, in order provide proper control
    of deposits in and disbursements from the Fund.
        (e) Termination.--The authority of the Secretary to carry out the
    Initiative shall terminate four years after the date of the enactment
    of this Act.
        (f) Report.--Not later than three years after the date of the
    enactment of this Act, the Secretary shall submit to the committees of
    Congress referred to in subsection (b)(2) 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 in light of the
    Initiative.

    SEC. 2813. DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM FACILITY
                  MAINTENANCE COSTS.

        (a) Authority To Carry Out Program.--Subject to the provisions of
    this section, 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. The purpose of the demonstration
    program is to determine whether or not such requirements facilitate
    reductions in the long-term facility maintenance costs of the military
    departments.
        (b) Contracts.--(1) The demonstration program shall cover contracts
    entered into on or after the date of the enactment of this Act.
        (2) 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.
        (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 shall be any
    period elected by the Secretary not in excess of five years.
        (d) Reports.--(1) Not later than January 31, 2003, and annually
    thereafter until the year following the cessation of effectiveness of
    any requirements referred to in subsection (a) in contracts under the
    demonstration program, the Secretary shall submit to the congressional
    defense committees a report on the demonstration program.
        (2) Each report under paragraph (1) shall include, for the year
    covered by such report, the following:
                (A) A description of the contracts entered into during the
            year that contain requirements referred to in subsection (a)
            for the purpose of the demonstration program.
                (B) The experience of the Secretary during the year with
            respect to any contracts containing requirements referred to in
            subsection (a) for the purpose of the demonstration program
            that were in force during the year.
        (3) The final report under this subsection shall include, in
    addition to the matters required under paragraph (2), an evaluation of
    the demonstration program and 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.

                          Subtitle C--Land Conveyances

    SEC. 2821. 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 a portion of the Fairfax County Parkway,
            including for construction of that portion of the 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(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. 2822. 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 Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (as enacted by Public Law 106-
    398); 114 Stat. 1654A-430) is amended by inserting ``any or'' before
    ``all right''.

    SEC. 2823. LAND TRANSFER AND CONVEYANCE, NAVAL SECURITY GROUP ACTIVITY,
                  WINTER HARBOR, MAINE.

        (a) Transfer of Administrative Jurisdiction.--(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 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 such 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 through an Act of God.
        (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.
        (3) Notwithstanding any other provision of law, the Secretary shall
    credit any amount received for a lease of real property under paragraph
    (1) to the appropriation or account providing funds for the operation
    and maintenance of such property or for the procurement of utility
    services for such property. Amounts so credited shall be merged with
    funds in the appropriation or account to which credited, and shall be
    available for the same purposes, and subject to the same conditions and
    limitations, as the funds with which merged.
        (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 costs
    incurred by the Secretary for any environmental assessment, study, or
    analysis carried out by the Secretary with respect to such property
    before completing the conveyance under that subsection.
        (2) The amount of any reimbursement required under paragraph (1)
    shall be determined by the Secretary, but may not exceed the cost of
    the assessment, study, or analysis for which reimbursement is required.
        (3) 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 under the preceding sentence 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. 2824. 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 costs incurred by the Secretary for any
    environmental assessment, study, or analysis, or for any other expense
    incurred by the Secretary, for a conveyance authorized by this section.
        (2) The amount of the reimbursement under paragraph (1) for an
    activity shall be determined by the Secretary, but may not exceed the
    cost of the activity.
        (3) 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. 2825. 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 currently
            leased by the Secretary, 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 Air Force
    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) Environmental Remediation.--The Secretary may not make the
    conveyance under subsection (a) until the completion of any
    environmental remediation required by law with respect to the property
    to be conveyed under that subsection.
        (f) Reimbursement for Costs of Conveyance.--(1) The Authority shall
    reimburse the Secretary for the costs incurred by the Secretary for any
    environmental assessment, study, or analysis, or for any other expense
    incurred by the Secretary, for the conveyance authorized by subsection
    (a).
        (2) The amount of the reimbursement under paragraph (1) for an
    activity shall be determined by the Secretary, but may not exceed the
    cost of the activity.
        (3) 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 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.
        (h) 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. 2826. 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) The Port Authority may, following entry
    into a lease under subsection (b) for real property, personal property,
    or both, sublease such property for a purpose set forth in subsection
    (c)(2) if the Secretary approves the sublease of such property for that
    purpose.
        (2) The Port Authority may, following the conveyance of real
    property under subsection (a), lease or reconvey such real property,
    and any personal property conveyed with such real property under that
    subsection, for a purpose set forth in subsection (c)(2).
        (e) Reimbursement for Costs of Conveyance and Lease.--(1) The Port
    Authority shall reimburse the Secretary for the costs incurred by the
    Secretary for any environmental assessment, study, or analysis, or for
    any other expense incurred by the Secretary, for the conveyance
    authorized by subsection (a) or any lease authorized by subsection (b).
        (2) The amount of the reimbursement under paragraph (1) for an
    activity shall be determined by the Secretary, but may not exceed the
    cost of the activity.
        (3) 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 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.
        (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.

                           Subtitle D--Other Matters

    SEC. 2841. DEVELOPMENT OF UNITED STATES ARMY HERITAGE AND EDUCATION
                  CENTER AT CARLISLE BARRACKS, PENNSYLVANIA.

        (a) Authority To Enter into Partnership.--(1) The Secretary of the
    Army may enter into a partnership with the Military Heritage
    Foundation, a not-for-profit organization, for the design,
    construction, and operation of a facility for the United States Army
    Heritage and Education Center at Carlisle Barracks, Pennsylvania.
        (2) The facility is to be used for curation and storage of
    artifacts, research facilities, classrooms, and offices, and for
    education and other activities, 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 Secretary may accept funds from
    the Military Heritage Foundation for the design and construction of the
    facility for the United States Army Heritage and Education Center
    referred to in subsection (a).
        (c) Acceptance of Facility.--(1) Upon completion of the facility
    referred to subsection (a), 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 partnership
    authorized to be entered into by subsection (a) as the Secretary
    considers appropriate to protect the interest of the United States.

    SEC. 2842. LIMITATION ON AVAILABILITY OF FUNDS FOR RENOVATION OF THE
                  PENTAGON RESERVATION.

        (a) Construction of Secure Secretarial Offices and Support
    Facilities.--No funds authorized to be appropriated by this Act, or any
    other Act, may be obligated or expended for construction of secure
    secretarial offices and support facilities at the Pentagon Reservation
    until the Secretary of Defense makes a certification to the
    congressional defense committees described in subsection (c).
        (b) Renovation of Pentagon Reservation.--Of the amounts authorized
    to be appropriated by this Act and any other Act for the purpose of the
    renovation of the Pentagon Reservation, not more than $1,158,000,000
    may be obligated or expended for that purposes until the Secretary
    makes a certification to the congressional defense committees described
    in subsection (c).
        (c) Certification.--A certification described in this subsection is
    a certification that the Defense Threat Reduction Agency has--
                (1) reviewed plans for construction of secure secretarial
            offices and support facilities at the Pentagon Reservation; and
                (2) determined that construction of such offices and
            facilities in accordance with such plans would meet all
            applicable force protection requirements.

    SEC. 2843. NAMING OF PATRICIA C. LAMAR ARMY NATIONAL GUARD READINESS
                  CENTER, OXFORD, MISSISSIPPI.

        (a) Designation.--The Oxford Army National Guard Readiness Center,
    Oxford, Mississippi, shall be known and designated as the ``Patricia C.
    Lamar Army National Guard Readiness Center''.
        (b) Reference to Readiness Center.--Any reference to the Oxford
    Army National Guard Readiness Center, Oxford, Mississippi, 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--DEFENSE BASE CLOSURE AND REALIGNMENT

               Subtitle A--Modifications of 1990 Base Closure Law

    SEC. 2901. AUTHORITY TO CARRY OUT BASE CLOSURE ROUND IN 2003.

        (a) Commission Matters.--
                (1) Appointment.--Section 2902(c)(1) 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--
                        (A) in subparagraph (B)--
                                (i) by striking ``and'' at the end of
                            clause (ii);
                                (ii) by striking the period at the end of
                            clause (iii) and inserting ``; and''; and
                                (iii) by adding at the end the following
                            new clause:
                ``(iv) by no later than January 24, 2003, in the case of
            members of the Commission whose terms will expire at the end of
            the first session of the 108th Congress.''; and
                        (B) in subparagraph (C), by striking ``or for 1995
                    in clause (iii) of such subparagraph'' and inserting
                    ``, for 1995 in clause (iii) of that subparagraph, or
                    for 2003 in clause (iv) of that subparagraph''.
                (2) Meetings.--Section 2902(e) of that Act is amended by
            striking ``and 1995'' and inserting ``1995, and 2003''.
                (3) Funding.--Section 2902(k) of that Act is amended by
            adding at the end the following new paragraph (4):
        ``(4) If no funds are appropriated to the Commission by the end of
    the second session of the 107th Congress for the activities of the
    Commission in 2003, 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.''.
                (4) Termination.--Section 2902(l) of that Act is amended by
            striking ``December 31, 1995'' and inserting ``December 31,
            2003''.
        (b) Procedures.--
                (1) Force-structure plan.--Section 2903(a) of that Act is
            amended--
                        (A) by redesignating paragraphs (2) and (3) as
                    paragraphs (3) and (4), respectively;
                        (B) by inserting after paragraph (1) the following
                    new paragraph (2):
        ``(2)(A) As part of the budget justification documents submitted to
    Congress in support of the budget for the Department of Defense for
    fiscal year 2003, the Secretary shall include a force-structure plan
    for the Armed Forces based on the assessment of the Secretary in the
    quadrennial defense review under section 118 of title 10, United States
    Code, in 2001 of the probable threats to the national security during
    the twenty-year period beginning with fiscal year 2003.
        ``(B) The Secretary may revise the force-structure plan submitted
    under subparagraph (A). If the Secretary revises the force-structure
    plan, the Secretary shall submit the revised force-structure plan to
    Congress as part of the budget justification documents submitted to
    Congress in support of the budget for the Department of Defense for
    fiscal year 2004.''; and
                        (C) in paragraph (3), as redesignated by
                    subparagraph (A) of this paragraph--
                                (i) in the matter preceding subparagraph
                            (A), by striking ``Such plan'' and inserting
                            ``Each force-structure plan under this
                            subsection''; and
                                (ii) in subparagraph (A), by striking
                            ``referred to in paragraph (1)'' and inserting
                            ``on which such force-structure plan is
                            based''.
                (2) Selection criteria.--Section 2903(b) of that Act is
            amended--
                        (A) in paragraph (1), by inserting ``and by no
                    later than December 31, 2001, for purposes of
                    activities of the Commission under this part in 2003,''
                    after ``December 31, 1990,''; and
                        (B) in paragraph (2)(A)--
                                (i) in the first sentence, by inserting
                            ``and by no later than February 15, 2002, for
                            purposes of activities of the Commission under
                            this part in 2003,'' after ``February 15,
                            1991,''; and
                                (ii) in the second sentence, by inserting
                            ``, or enacted on or before March 31, 2002, in
                            the case of criteria published and transmitted
                            under the preceding sentence in 2001'' after
                            ``March 15, 1991''.
                (3) Department of defense recommendations.--Section
            2903(c)(1) of that Act is amended by striking ``and March 1,
            1995'' and inserting ``March 1, 1995, and March 14, 2003''.
                (4) Commission review and recommendations.--Section 2903(d)
            of that Act is amended--
                        (A) in paragraph (2)(A), by inserting ``or by no
                    later than July 7 in the case of recommendations in
                    2003,'' after ``pursuant to subsection (c),'';
                        (B) in paragraph (4), by inserting ``or after July
                    7 in the case of recommendations in 2003,'' after
                    ``under this subsection,''; and
                        (C) in paragraph (5)(B), by inserting ``or by no
                    later than May 1 in the case of such recommendations in
                    2003,'' after ``such recommendations,''.
                (5) Review by president.--Section 2903(e) of that Act is
            amended--
                        (A) in paragraph (1), by inserting ``or by no later
                    than July 22 in the case of recommendations in 2003,''
                    after ``under subsection (d),'';
                        (B) in the second sentence of paragraph (3), by
                    inserting ``or by no later than August 18 in the case
                    of 2003,'' after ``the year concerned,''; and
                        (C) in paragraph (5), by inserting ``or by
                    September 3 in the case of recommendations in 2003,''
                    after ``under this part,''.
        (c) Relationship to Other Base Closure Authority.--Section 2909(a)
    of that Act is amended by striking ``December 31, 1995,'' and inserting
    ``December 31, 2003,''.

    SEC. 2902. BASE CLOSURE ACCOUNT 2003.

        (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. BASE CLOSURE ACCOUNT 2003.

        ``(a) In General.--(1) There is hereby established on the books of
    the Treasury an account to be known as the `Department of Defense Base
    Closure Account 2003' (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 September 30, 2003.
        ``(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 September 30, 2003.
        ``(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 September 30, 2003, 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 September 30, 2003, 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 of Defense.
        ``(3) The Secretary may use amounts in the account (in such an
    aggregate amount as is provided in advance in appropriation Acts) 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 September
            30, 2003'' 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 September 30, 2003,'' 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 September 30, 2003,'' 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 September
            30, 2003'' 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 2001
            under section 2906A and except for''.
        (c) Clerical Amendment.--The section heading of section 2906 of
    that Act is amended to read as follows:

    ``SEC. 2906. BASE CLOSURE ACCOUNT 1990.''.

    SEC. 2903. ADDITIONAL MODIFICATIONS OF BASE CLOSURE AUTHORITIES.

        (a) Increase in Members of Commission.--Section 2902(c)(1)(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. 2867 note) is amended by striking
    ``eight members'' and inserting ``nine members''.
        (b) Selection Criteria.--Section 2903(b) of that Act is amended by
    adding at the end the following new paragraphs:
        ``(3) The selection criteria 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.
        ``(4) Any selection criteria proposed by the Secretary relating to
    the cost savings or return on investment from the proposed closure or
    realignment of a military installation shall take into account the
    effect of the proposed closure or realignment on the costs of any other
    Federal agency that may be required to assume responsibility for
    activities at the military installation.''.
        (c) Department of Defense Recommendations to Commission.--Section
    2903(c) of that Act is amended--
                (1) by redesignating paragraphs (1), (2), (3), (4), (5),
            and (6) as paragraphs (2), (3), (4), (6), (7), and (8),
            respectively;
                (2) by inserting before paragraph (2), as so redesignated,
            by the following new paragraph (1):
        ``(1) The Secretary shall carry out a comprehensive review of the
    military installations of the Department of Defense inside the United
    States based on the force-structure plan submitted under subsection
    (a)(2), and the final criteria transmitted under subsection (b)(2), in
    2002. The review shall cover every type of facility or other
    infrastructure operated by the Department of Defense.'';
                (3) in paragraph (4), as so redesignated--
                        (A) by redesignating subparagraphs (B) and (C) as
                    subparagraphs (C) and (D), respectively;
                        (B) by inserting after subparagraph (A) the
                    following new subparagraph (B):
        ``(B) In considering military installations for closure or
    realignment under this part in any year after 2001, the Secretary shall
    consider the anticipated continuing need for and availability of
    military installations worldwide. In evaluating the need for military
    installations inside the United States, the Secretary shall take 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.''; and
                        (C) in subparagraph (D), as so redesignated, by
                    striking ``subparagraph (B)'' and inserting
                    ``subparagraph (C)'';
                (4) by inserting after paragraph (4), as so redesignated,
            the following new paragraph (5):
        ``(5)(A) In making recommendations to the Commission under this
    subsection in any year after 2001, 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 and final criteria
    otherwise applicable to such recommendations under this section.
        ``(C) The recommendations made by the Secretary under this
    subsection in any year after 2001 shall include a statement of the
    result of the consideration of any notice described in subparagraph (A)
    that is received with respect to an installation covered by such
    recommendations. The statement shall set forth the reasons for the
    result.''; and
                (5) in paragraph (8), as so redesignated--
                        (A) in the first sentence, by striking ``paragraph
                    (5)(B)'' and inserting ``paragraph (7)(B)''; and
                        (B) in the second sentence, by striking ``24
                    hours'' and inserting ``48 hours''.
        (d) Commission Changes in Recommendations of Secretary.--Section
    2903(d)(2) of that Act is amended--
                (1) in subparagraph (B), by striking ``if'' and inserting
            ``only if'';
                (2) in subparagraph (C)--
                        (A) in clause (iii), by striking ``and'' at the
                    end;
                        (B) in clause (iv), by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following new clause:
                ``(v) invites the Secretary to testify at a public hearing,
            or a closed hearing if classified information is involved, on
            the proposed change.'';
                (3) by redesignating subparagraph (E) as subparagraph (F);
            and
                (4) by inserting after subparagraph (D) the following new
            subparagraph (E):
        ``(E) In the case of a change not described in subparagraph (D) in
    the recommendations made by the Secretary, the Commission may make the
    change only if the Commission--
                ``(i) makes the determination required by subparagraph (B);
                ``(ii) determines that the change is consistent with the
            force-structure plan and final criteria referred to in
            subsection (c)(1); and
                ``(iii) invites the Secretary to testify at a public
            hearing, or a closed hearing if classified information is
            involved, on the proposed change.''.
        (e) Privatization in Place.--Section 2904(a) of that Act 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 each such report after 2001 only if privatization
            in place is a method of closure or realignment of the
            installation specified in the recommendation of the Commission
            in such report and is determined by the Commission to be the
            most-cost effective method of implementation of the
            recommendation;''.
        (f) Implementation.--
                (1) Payment for certain services for property leased back
            by the united states.--Section 2905(b)(4)(E) of that Act is
            amended--
                (1) in clause (iii), by striking ``A lease'' and inserting
            ``Except as provided in clause (v), a lease''; and
                (2) by adding at the end the following new clause (v):
        ``(v)(I) Notwithstanding clause (iii), a lease under clause (i) may
    require the United States to pay the redevelopment authority concerned,
    or the assignee of the redevelopment authority, for facility services
    and common area maintenance provided for the leased property by the
    redevelopment authority or assignee, as the case may be.
        ``(II) The rate charged the United States for services and
    maintenance provided by a redevelopment authority or assignee under
    subclause (I) may not exceed the rate charged non-Federal tenants
    leasing property at the installation for such services and maintenance.
        ``(III) For purposes of this clause, facility services and common
    area maintenance shall not include municipal services that the State or
    local government concerned is required by law to provide without direct
    charge to landowners, or firefighting or security-guard functions.''.
                (2) Transfers in connection with payment of environmental
            remediation.--Section 2905(e) of that Act is amended--
                        (A) 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.'';
                        (B) 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'';
                        (C) by striking paragraph (6);
                        (D) by redesignating paragraphs (3), (4), and (5)
                    as paragraphs (4), (5), (6), respectively; and
                        (E) 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.''.
                (3) Scope of indemnification of transferees in connection
            with payment of environmental remediation.--Paragraph (6) of
            section 2905(e) of that Act, as redesignated by paragraph (1)
            of this subsection, is further amended by inserting before the
            period the following: ``, except in the case of releases or
            threatened releases not disclosed pursuant to paragraph (4)''.

    SEC. 2904. TECHNICAL AND CLARIFYING AMENDMENTS.

        (a) Commencement of Period for Notice of Interest in Property for
    Homeless.--Section 2905(b)(7)(D)(ii)(I) of the Defense Base Closure and
    Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
    U.S.C. 2867 note) 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)''.
        (b) 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)(4)(A).
                (E) Section 2905(b)(5)(A).
                (F) Section 2910(9).
                (G) 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''.

               Subtitle B--Modification of 1988 Base Closure Law

    SEC. 2911. PAYMENT FOR CERTAIN SERVICES PROVIDED BY REDEVELOPMENT
                  AUTHORITIES FOR PROPERTY LEASED BACK BY THE UNITED
                  STATES.

        Section 204(b)(4) of the Defense Authorization Amendments and Base
    Closure and Realignment Act of (Public Law 100-526; 10 U.S.C. 2687
    note) is amended by adding at the end the following new subparagraph
    (J):
        ``(J)(i) The Secretary may transfer real property at an
    installation approved for closure or realignment under this title
    (including property at an installation approved for realignment which
    will be retained by the Department of Defense or another Federal agency
    after realignment) to the redevelopment authority for the installation
    if the redevelopment authority agrees to lease, directly upon transfer,
    one or more portions of the property transferred under this
    subparagraph to the Secretary or to the head of another department or
    agency of the Federal Government. Subparagraph (B) shall apply to a
    transfer under this subparagraph.
        ``(ii) A lease under clause (i) shall be for a term of not to
    exceed 50 years, but may provide for options for renewal or extension
    of the term by the department or agency concerned.
        ``(iii) Except as provided in clause (v), 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)(I) Notwithstanding clause (iii), a lease under clause (i) may
    require the United States to pay the redevelopment authority concerned,
    or the assignee of the redevelopment authority, for facility services
    and common area maintenance provided for the leased property by the
    redevelopment authority or assignee, as the case may be.
        ``(II) The rate charged the United States for services and
    maintenance provided by a redevelopment authority or assignee under
    subclause (I) may not exceed the rate charged non-Federal tenants
    leasing property at the installation for such services and maintenance.
        ``(III) For purposes of this clause, facility services and common
    area maintenance shall not include municipal services that the State or
    local government concerned is required by law to provide without direct
    charge to landowners, or firefighting or security-guard functions.''.

     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.

        (a) In General.--Subject to subsection (b), 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 $7,351,721,000, to be allocated as follows:
                (1) Weapons activities.--For weapons activities,
            $5,481,795,000, to be allocated as follows:
                        (A) For stewardship operation and maintenance,
                    $4,687,443,000, to be allocated as follows:
                                (i) For directed stockpile work,
                            $1,016,922,000.
                                (ii) For campaigns, $2,137,300,000, to be
                            allocated as follows:
                                        (I) For operation and maintenance,
                                    $1,767,328,000.
                                        (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),
                                    $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, $1,533,221,000, to be allocated as
                            follows:
                                        (I) For operation and maintenance,
                                    $1,356,107,000.
                                        (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),
                                    $177,114,000, to be allocated as
                                    follows:
                                                Project 02-D-101,
                                            microsystems and engineering
                                            sciences applications (MESA),
                                            Sandia National Laboratories,
                                            Albuquerque, New Mexico,
                                            $39,000,000.
                                                Project 02-D-103, project
                                            engineering and design (PE&D),
                                            various locations, $31,130,000.
                                                Project 02-D-107,
                                            electrical power systems safety
                                            communications and bus
                                            upgrades, Nevada Test Site,
                                            Nevada, $3,507,000.
                                                Project 01-D-103,
                                            preliminary project design and
                                            engineering, various locations,
                                            $16,379,000.
                                                Project 01-D-124, highly
                                            enriched uranium (HEU)
                                            materials storage facility, Y-
                                            12 Plant, Oak Ridge, Tennessee,
                                            $0.
                                                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,
                                            $4,955,00.
                                                Project 99-D-108,
                                            renovation of 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 Plant
                                            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, $77,571,000,
                    to be allocated for operation and maintenance.
                        (C) For safeguards and security, $448,881,000, to
                    be allocated as follows:
                                (i) For operation 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 upgrade project, Los Alamos
                                    National Laboratory, Los Alamos, New
                                    Mexico, $9,600,000.
                        (D) For facilities and infrastructure,
                    $267,900,000.
                (2) Defense nuclear nonproliferation.--For other nuclear
            security activities, $872,500,000, to be allocated as follows:
                        (A) For nonproliferation and verification research
                    and development, $258,161,000, to be allocated as
                    follows:
                                (i) For operation and maintenance,
                            $222,355,000.
                                (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, $138,000,000.
                        (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, $19,500,000.
                        (F) For fissile materials control and disposition,
                    $299,089,000, to be allocated as follows:
                                (i) For United States surplus fissile
                            materials disposition, $233,089,000, 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),
                                    $103,000,000, to be allocated as
                                    follows:
                                                Project 01-D-142,
                                            immobilization and associated
                                            processing facility, (Title I
                                            and II design), Savannah River
                                            Site, Aiken, South Carolina,
                                            $0.
                                                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 (Title I and II
                                            design), Savannah River Site,
                                            Aiken, South Carolina,
                                            $16,000,000.
                                                Project 99-D-143, mixed
                                            oxide fuel fabrication facility
                                            (Title I and II design),
                                            Savannah River Site, Aiken,
                                            South Carolina, $63,000,000.
                                (ii) For Russian fissile materials
                            disposition, $66,000,000.
                (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), $380,366,000.
        (b) Adjustments.--The amount authorized to be appropriated by
    subsection (a) is hereby reduced by $70,985,000, as follows:
                (1) The amount authorized to be appropriated by paragraph
            (1) of that subsection is hereby reduced by $28,985,000, which
            is to be derived from offsets and use of prior year balances.
                (2) The amount authorized to be appropriated by paragraph
            (2) of that subsection is hereby reduced by $42,000,000, which
            is to be derived from use of prior year balances.

    SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

        (a) In General.--Subject to subsection (b), 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 $6,047,617,000, 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,
            $943,196,000, 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), $24,166,000, to be
                    allocated as follows:
                                Project 02-D-402, Intec cathodic protection
                            system expansion, Idaho National Engineering
                            and Environmental Laboratory, Idaho Falls,
                            Idaho, $3,256,000.
                                Project 01-D-414, preliminary project
                            engineering and design (PE&D), various
                            locations, $6,254,000.
                                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 Laboratories,
                            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 92-D-140, F&H canyon exhaust
                            upgrades, Savannah River Site, Aiken, South
                            Carolina, $0.
                                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,
            $3,245,201,000, to be allocated as follows:
                        (A) For operation and maintenance, $1,955,979,000.
                        (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), $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.
                        (C) For the Office of River Protection in carrying
                    out environmental restoration and waste management
                    activities necessary for national security programs,
                    $862,468,000, 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), $540,317,000, to be allocated
                            as follows:
                                        Project 01-D-416, waste treatment
                                    and immobilization plant, Richland,
                                    Washington, $500,000,000.
                                        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 (2) through (7) of that subsection, reduced by
    $42,161,000, to be derived from offsets and use of prior year balances.

    SEC. 3103. OTHER DEFENSE ACTIVITIES.

        (a) In General.--Subject to subsection (b), 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 $512,195,000, to be
    allocated as follows:
                (1) Intelligence.--For intelligence, $40,844,000.
                (2) Counterintelligence.--For counterintelligence,
            $46,389,000.
                (3) Security and emergency operations.--For security and
            emergency operations, $247,565,000, to be allocated as follows:
                        (A) For nuclear safeguards and security,
                    $121,188,000.
                        (B) For security investigations, $44,927,000.
                        (C) For program direction, $81,450,000.
                (4) Independent oversight and performance assurance.--For
            independent oversight and performance assurance, $14,904,000.
                (5) Environment, safety, and health.--For the Office of
            Environment, Safety, and Health, $114,600,000, to be allocated
            as follows:
                        (A) For environment, safety, and health (defense),
                    $91,307,000.
                        (B) For program direction, $23,293,000.
                (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, $25,000,000.
        (b) Adjustments.--
                (1) Security and emergency operations, for program
            direction.--The amount authorized to be appropriated pursuant
            to subsection (a)(3)(B) is reduced by $712,000 to reflect an
            offset provided by user organizations for security
            investigations.
                (2) Other.--The total amount authorized to be appropriated
            pursuant to paragraphs (1), (2), (4), (5), (6), (7), and (8) of
            subsection (a) is hereby reduced by $10,000,000 to reflect use
            of prior year balances.

    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 $157,537,000, 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, $56,000,000.
                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 $250,000,000.

                    Subtitle B--Recurring General Provisions

    SEC. 3121. REPROGRAMMING.

        (a) In General.--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--
                        (A) 110 percent of the amount authorized for that
                    program by this title; or
                        (B) $2,000,000 more than 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) In General.--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 give a brief description of each minor construction project
    covered by such report.
        (c) 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 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 2004.

    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 the 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 under 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 to address a risk to health, safety, or the
    environment or 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 the 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 the 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 to address a risk to health, safety, or the
    environment or to assure the most efficient use of weapons activities
    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 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
                    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 the 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. 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. 3132. 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 later of the following:
                (1) The date on which the Secretary of Energy submits to
            Congress a report setting forth the purposes for which such
            funds will be obligated and expended.
                (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 106-35; 50 U.S.C. 2453).

    SEC. 3133. 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).
                        (I) Zelenogorsk (Krasnoyarsk-45).

    SEC. 3134. CONSTRUCTION OF DEPARTMENT OF ENERGY OPERATIONS OFFICE
                  COMPLEX.

        (a) Authority for Design and Construction.--Subject to subsection
    (b), the Secretary of Energy may provide for the design and
    construction of a new operations office complex for the Department of
    Energy in accordance with the feasibility study regarding such
    operations office complex conducted under the National Defense
    Authorization Act for Fiscal Year 2000.
        (b) Limitation.--The Secretary may not exercise the authority in
    subsection (a) until the date on which the Secretary certifies to
    Congress that the feasibility study referred to in subsection (a) is
    consistent with the plan submitted under section 3153(a) of the Floyd
    D. Spence National Defense Authorization Act for Fiscal Year 2001 (as
    enacted by Public Law 106-398; 114 Stat. 1654A-465).
        (c) Basis of Authority.--The design and construction of the
    operations office complex authorized by subsection (a) shall be carried
    out through one or more energy savings performance contracts (ESPC)
    entered into under this section and in accordance with the provisions
    of title VIII of the National Energy Policy Conservation Act (42 U.S.C.
    8287 et seq.).
        (d) Payment of Costs.--Amounts for payments of costs associated
    with the construction of the operations office complex authorized by
    subsection (a) shall be derived from energy savings and ancillary
    operation and maintenance savings that result from the replacement of a
    current Department of Energy operations office complex (as identified
    in the feasibility study referred to in subsection (a)) with the
    operations office complex authorized by subsection (a).

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

    SEC. 3141. ESTABLISHMENT OF POSITION OF DEPUTY ADMINISTRATOR FOR
                  NUCLEAR SECURITY.

        (a) Establishment of Position.--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 3219 and
            transferring such section, as so redesignated, to the end of
            the subtitle; and
                (2) by inserting after section 3212 the following new
            section 3213:

    ``SEC. 3213. DEPUTY ADMINISTRATOR FOR NUCLEAR SECURITY.

        ``(a) In General.--There is in the Administration a Deputy
    Administrator for Nuclear Security, who is appointed by the President,
    by and with the advice and consent of the Senate.
        ``(b) Duties.--(1) The Deputy Administrator shall be the principal
    assistant to the Administrator in carrying out the responsibilities of
    the Director under this title, and shall act for, and exercise the
    powers and duties of, the Administrator when the Administrator is
    disabled or there is no Administrator for Nuclear Security.
        ``(2) Subject to the authority, direction, and control of the
    Administrator, the Deputy Administrator shall perform such duties, and
    exercise such powers, relating to the functions of the Administration
    as the Administrator may prescribe.''.
        (b) Pay Level.--Section 5314 of title 5, United States Code, is
    amended in the item relating to the Deputy Administrators of the
    National Nuclear Security Administration--
                (1) by striking ``(3)'' and inserting ``(4)''; and
                (2) by striking ``(2)'' and inserting ``(3)''.

    SEC. 3142. RESPONSIBILITY FOR NATIONAL SECURITY LABORATORIES AND
                  WEAPONS PRODUCTION FACILITIES OF DEPUTY ADMINISTRATOR OF
                  NATIONAL NUCLEAR SECURITY ADMINISTRATION 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. CLARIFICATION OF STATUS WITHIN THE DEPARTMENT OF ENERGY OF
                  ADMINISTRATION AND CONTRACTOR PERSONNEL OF THE NATIONAL
                  NUCLEAR SECURITY ADMINISTRATION.

        Section 3219 of the National Nuclear Security Administration Act,
    as redesignated and transferred by section 3141(a)(1) of this Act, is
    further amended--
                (1) in subsection (a), by striking ``Administration--'' and
            inserting ``Administration, in carrying out any function of the
            Administration--''; and
                (2) in subsection (b), by striking ``shall'' and inserting
            ``, in carrying out any function of the Administration,
            shall''.

    SEC. 3144. MODIFICATION OF AUTHORITY OF ADMINISTRATOR FOR NUCLEAR
                  SECURITY TO ESTABLISH SCIENTIFIC, ENGINEERING, AND
                  TECHNICAL POSITIONS.

        (a) Increase in Authorized Number of Positions.--Section 3241 of
    the National Nuclear Security Administration Act (title XXXII of Public
    Law 106-65; 113 Stat. 964; 50 U.S.C. 2441) is amended--
                (1) by inserting ``(a) In General--'' before ``The
            Administrator''; and
                (2) in subsection (a), as so designated, by striking
            ``300'' and inserting ``500''.
        (b) Designation of Existing Provisions on Treatment of Authority.--
    That section is further amended--
                (1) by designating the second sentence as subsection (b);
                (2) aligning the margin of that subsection, as so
            designated, so as to indent the text two ems; and
                (3) in that subsection, as so designated, by striking
            ``Subject to the limitations in the preceding sentence,'' and
            inserting ``(b) Treatment of Authority.--Subject to the
            limitations in subsection (a),''.
        (c) Treatment of Positions.--That section is further amended by
    adding at the end the following new subsection:
        ``(c) Treatment of Positions.--A position established under
    subsection (a) may not be considered a Senior Executive Service
    position (as that term is defined in section 3132(a)(2) of title 5,
    United States Code), and shall not be subject to the provisions of
    subchapter II of chapter 31 of that title, relating to the Senior
    Executive Service.''.

                           Subtitle E--Other Matters

    SEC. 3151. IMPROVEMENTS TO ENERGY EMPLOYEES OCCUPATIONAL ILLNESS
                  COMPENSATION PROGRAM.

        (a) Certain Leukemia as Specified Cancer.--Section 3621(17) of 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 by Public Law 106-398); 114 Stat.
    1654A-502), as amended by section 2403 of the Supplemental
    Appropriations Act, 2001 (Public Law 107-20), is further amended by
    adding at the end the following new subparagraph:
                        ``(D) Leukemia (other than chronic lymphocytic
                    leukemia), if initial occupation exposure occurred
                    before 21 years of age and onset occurred more than two
                    years after initial occupational exposure.''.
        (b) Additional Members of Special Exposure Cohort.--Section 3626(b)
    of that Act (114 Stat. 1654A-505) is amended in the matter preceding
    paragraph (1) by inserting after ``Department of Energy facility'' the
    following: ``, or at an atomic weapons employer facility,''.
        (c) Establishment of Chronic Silicosis.--Section 3627(e)(2)(A) of
    that Act (114 Stat. 1654A-506) is amended by striking ``category 1/1''
    and inserting ``category 1/0''.
        (d) Survivors.--
                (1) In general.--Subsection (e) of section 3628 of that Act
            (114 Stat. 1654A-506) is amended to read as follows:
        ``(e) Survivors.--(1) If a covered employee dies before accepting
    payment of compensation under this section, whether or not the death is
    the result of the covered employee's occupational illness, the
    survivors of the covered employee shall receive payment of compensation
    under this section in lieu of the covered employee as follows:
                ``(A) If at the time of death the covered employee is
            survived by a spouse and one or more children--
                        ``(i) the spouse shall receive one-half of the
                    amount of compensation provided for the covered
                    employee under this section; and
                        ``(ii) each child shall receive an equal share of
                    the remaining one-half of the amount of the
                    compensation provided for the covered employee under
                    this section.
                ``(B) If at the time of death the covered employee is
            survived by a spouse or one or more children, but not both a
            spouse and one or more children--
                        ``(i) the spouse shall receive the amount of
                    compensation provided for the covered employee under
                    this section; or
                        ``(ii) each child shall receive an equal share of
                    the amount of the compensation provided for the covered
                    employee under this section.
                ``(C) If at the time of death the covered employee is not
            survived by a spouse or any children, but is survived by one or
            both parents, one or more grandparents, one or more
            grandchildren, or any combination of such individuals, each
            such individual shall receive an equal share of the amount of
            the compensation provided for the covered employee under this
            section.
        ``(2) For purposes of this subsection, the term `child', in the
    case of a covered employee, means any child of the covered employee,
    including a natural child, adopted child, or step-child who lived with
    the covered employee in a parent-child relationship.''.
                (2) Uranium employees.--Subsection (e) of section 3630 of
            that Act (114 Stat. 1654A-507) is amended to read as follows:
        ``(e) Survivors.--(1) If a covered uranium employee dies before
    accepting payment of compensation under this section, whether or not
    the death is the result of the covered uranium employee's occupational
    illness, the survivors of the covered uranium employee shall receive
    payment of compensation under this section in lieu of the covered
    uranium employee as follows:
                ``(A) If at the time of death the covered uranium employee
            is survived by a spouse and one or more children--
                        ``(i) the spouse shall receive one-half of the
                    amount of compensation provided for the covered uranium
                    employee under this section; and
                        ``(ii) each child shall receive an equal share of
                    the remaining one-half of the amount of the
                    compensation provided for the covered uranium employee
                    under this section.
                ``(B) If at the time of death the covered uranium employee
            is survived by a spouse or one or more children, but not both a
            spouse and one or more children--
                        ``(i) the spouse shall receive the amount of
                    compensation provided for the covered uranium employee
                    under this section; or
                        ``(ii) each child shall receive an equal share of
                    the amount of the compensation provided for the covered
                    uranium employee under this section.
                ``(C) If at the time of death the covered uranium employee
            is not survived by a spouse or any children, but is survived by
            one or both parents, one or more grandparents, one or more
            grandchildren, or any combination of such individuals, each
            such individual shall receive an equal share of the amount of
            the compensation provided for the covered uranium employee
            under this section.
        ``(2) For purposes of this subsection, the term `child', in the
    case of a covered uranium employee, means any child of the covered
    employee, including a natural child, adopted child, or step-child who
    lived with the covered employee in a parent-child relationship.''.
                (3) Repeal of superseded provision.--Paragraph (18) of
            section 3621 of that Act (114 Stat. 1654A-502) is repealed.
                (4) Effective date.--The amendments made by this subsection
            shall take effect on July 1, 2001.
        (e) Dismissal of Pending Suits.--Section 3645(d) of that Act (114
    Stat. 1654A-510) is amended by striking ``the plaintiff shall not'' and
    all that follows through the end and inserting ``and was not dismissed
    as of the date of the enactment of the National Defense Authorization
    Act for Fiscal Year 2002, the plaintiff shall be eligible for
    compensation or benefits under subtitle B only if the plaintiff
    dismisses such case not later than December 31, 2003.''.
        (f) Attorney Fees.--Section 3648 of that Act (114 Stat. 1654A-511)
    is amended--
                (1) in subsection (b)--
                        (A) in paragraph (1), by striking ``and'' at the
                    end;
                        (B) in paragraph (2), by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following new
                    paragraph (3):
                ``(3) 10 percent of any compensation paid under the claim
            for assisting with or representing a claimant seeking such
            compensation by the provision of services other than, or in
            addition to, services in connection with the filing of an
            initial claim covered by paragraph (1).'';
                (2) by redesignating subsection (c) and subsection (d); and
                (3) by inserting after subsection (b) the following new
            subsection (c):
        ``(c) Inapplicability to Services Provided After Award of
    Compensation.--This section shall not apply with respect to any
    representation or assistance provided to an individual awarded
    compensation under subtitle B after the award of compensation.''.
        (g) Study of Residual Contamination of Facilities.--(1) The
    National Institute for Occupational Safety and Health shall conduct a
    study on the following:
                (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) Not later than 180 days after the date of the enactment of this
    Act, the National Institute for Occupational Safety and Health shall
    submit to the congressional defense committees a report on the study
    under paragraph (1).
        (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).
                (B) The term ``contamination'' means the presence of any
            material 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) Interim Counterintelligence Polygraph Program.--(1) Not later
    than 120 days after the date of enactment of this Act, the Secretary of
    Energy shall submit to the congressional defense committees a plan for
    conducting, as part of the Department of Energy personnel assurance
    programs, an interim counterintelligence polygraph program consisting
    of polygraph examinations of Department of Energy employees, or
    contractor employees, at Department facilities. The purpose of
    examinations under the interim program is to minimize the potential for
    release or disclosure of classified data, materials, or information
    until the program required under subsection (b) is in effect.
        (2) The Secretary may exclude from examinations under the interim
    program any position or class of positions (as determined by the
    Secretary) for which the individual or individuals in such position or
    class of positions--
                (A) either--
                        (i) operate in a controlled environment that does
                    not afford an opportunity, through action solely by the
                    individual or individuals, to inflict damage on or
                    impose risks to national security; and
                        (ii) have duties, functions, or responsibilities
                    which are compartmentalized or supervised such that the
                    individual or individuals do not impose risks to
                    national security; or
                (B) do not have routine access to top secret Restricted
            Data.
        (3) The plan shall ensure that individuals who undergo examinations
    under the interim program receive protections as provided under part 40
    of title 49, Code of Federal Regulations.
        (4) To ensure that administration of the interim program does not
    disrupt safe operations of a facility, the plan shall insure
    notification of the management of the facility at least 14 days in
    advance of any examination scheduled under the interim program for any
    employees of the facility.
        (5) The plan shall include procedures under the interim program
    for--
                (A) identifying and addressing so-called ``false positive''
            results of polygraph examinations; and
                (B) ensuring that adverse personnel actions not be taken
            against an individual solely by reason of the individual's
            physiological reaction to a question in a polygraph
            examination, unless reasonable efforts are first made to
            independently determine through alternative means the veracity
            of the individual's response to the question.
        (b) New Counterintelligence Polygraph Program.--(1) Not later than
    six months after obtaining the results of the Polygraph Review, the
    Secretary shall prescribe a proposed rule containing requirements for a
    counterintelligence polygraph program for the Department of Energy. The
    purpose of the program is to minimize the potential for release or
    disclosure of classified data, materials, or information.
        (2) The Secretary shall prescribe the proposed rule under this
    subsection 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).
        (3) In prescribing the proposed rule under this subsection, the
    Secretary may include in requirements under the proposed rule any
    requirement or exclusion provided for in paragraphs (2) through (5) of
    subsection (a).
        (4) In prescribing the proposed rule under this subsection, the
    Secretary shall take into account the results of the Polygraph Review.
        (c) Repeal of Existing Polygraph Program.--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 December 31, 2002, 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) Definitions.--In this section:
                (1) The term ``Polygraph Review'' means the review of the
            Committee to Review the Scientific Evidence on the Polygraph of
            the National Academy of Sciences.
                (2) The term ``Restricted Data'' has the meaning given that
            term in section 11 y. of the Atomic Energy Act of 1954 (42
            U.S.C. 2014(y)).

    SEC. 3153. ONE-YEAR EXTENSION OF AUTHORITY OF DEPARTMENT OF ENERGY TO
                  PAY VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

        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''.

    SEC. 3154. ADDITIONAL OBJECTIVE FOR DEPARTMENT OF ENERGY DEFENSE
                  NUCLEAR FACILITY WORK FORCE RESTRUCTURING PLAN.

        Section 3161(c) of the National Defense Authorization Act for
    Fiscal Year 1993 (Public Law 102-484; 42 U.S.C. 7274h(c)) is amended by
    adding at the end the following new paragraph:
                ``(7) The Department of Energy should provide assistance to
            promote the diversification of the economies of communities in
            the vicinity of any Department of Energy defense nuclear
            facility that may, as determined by the Secretary, be affected
            by a future restructuring of its work force under the plan.''.

    SEC. 3155. 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,''.

    SEC. 3156. 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, California, achieves each Level one milestone and Level two
    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 one milestone or Level two milestone for the National
    Ignition Facility in a timely manner, the Administrator shall submit to
    the congressional defense committees a report on the failure. The
    report on a failure 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 the milestone will be
                    achieved; or
                        (B) if the milestone will not be achieved--
                                (i) a statement that the milestone will not
                            be achieved;
                                (ii) an explanation why the 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 the
                            milestone.
        (c) Milestones.--For purposes of this section, the Level one
    milestones and Level two milestones for the National Ignition Facility
    are as established in the August 2000 revised National Ignition
    Facility baseline document.

    SEC. 3157. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS
                  NATIONAL LABORATORY, NEW MEXICO.

        (a) Support in Fiscal Year 2002.--From amounts authorized to be
    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 educational 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 through Fiscal Year 2004.--Subject to the availability
    of appropriations for such purposes, the Secretary may--
                (1) make a payment for each of fiscal years 2003 and 2004
            similar in amount to the payment referred to in subsection
            (a)(1) for fiscal year 2002; and
                (2) provide for a contract extension through fiscal year
            2004 similar to the contract extension referred to in
            subsection (a)(2), including the use of an amount for that
            purpose in each of fiscal years 2003 and 2004 similar to the
            amount available for that purpose in fiscal year 2002 under
            that subsection.
        (c) Use of Funds.--The Los Alamos National Laboratory Foundation
    shall--
                (1) use funds provided the Foundation under this section as
            a contribution to the endowment fund of 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, 2003, the Administrator for
    Nuclear Security shall submit to the congressional defense committees a
    report setting for the following:
                (1) An evaluation of the requirements for continued
            payments after fiscal year 2004 into the endowment fund of the
            Los Alamos Laboratory Foundation to enable the Foundation to
            meet the goals of the Department of Energy to support the
            recruitment and retention of staff at the Los Alamos National
            Laboratory.
                (2) Recommendations regarding the advisability of any
            further direct support after fiscal year 2004 for the Los
            Alamos Public Schools.

    SEC. 3158. IMPROVEMENTS TO CORRAL HOLLOW ROAD, LIVERMORE, CALIFORNIA.

        Of the amounts authorized to be appropriated by section 3101, not
    more than $325,000 shall be available to the Secretary of Energy for
    safety improvements to Corral Hollow Road adjacent to Site 300 of
    Lawrence Livermore National Laboratory, California.

                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 PURPOSE.

        (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 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 site contain contamination and will
            require further remediation. 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) Purpose.--The purpose of this subtitle is to provide for the
    establishment of the Rocky Flats site as a national wildlife refuge
    while creating a process for public input on refuge management and
    ensuring that the site is thoroughly and completely cleaned up.

    SEC. 3173. DEFINITIONS.

        In this subtitle:
                (1) Cleanup and closure.--The term ``cleanup and closure''
            means the remedial actions and decommissioning activities being
            carried out at Rocky Flats by the Department of Energy under
            the 1996 Rocky Flats Cleanup Agreement, the closure plans and
            baselines, and any other relevant documents or requirements.
                (2) Coalition.--The term ``Coalition'' means the Rocky
            Flats Coalition of Local Governments established by the
            Intergovernmental Agreement, dated February 16, 1999, among--
                        (A) the city of Arvada, Colorado;
                        (B) the city of Boulder, Colorado;
                        (C) the city of Broomfield, Colorado;
                        (D) the city of Westminster, Colorado;
                        (E) the town of Superior, Colorado;
                        (F) Boulder County, Colorado; and
                        (G) Jefferson County, Colorado.
                (3) Hazardous substance.--The term ``hazardous substance''
            has the meaning given the term in section 101 of the
            Comprehensive Environmental Response, Compensation, and
            Liability Act of 1980 (42 U.S.C. 9601).
                (4) Pollutant or contaminant.--The term ``pollutant or
            contaminant'' has the meaning given the term in section 101 of
            the Comprehensive Environmental Response, Compensation, and
            Liability Act of 1980 (42 U.S.C. 9601).
                (5) Refuge.--The term ``refuge'' means the Rocky Flats
            National Wildlife Refuge established under section 3177.
                (6) Response action.--The term ``response action'' has the
            meaning given the term ``response'' in section 101 of the
            Comprehensive Environmental Response, Compensation, and
            Liability Act of 1980 (42 U.S.C. 9601) or any similar
            requirement under State law.
                (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.--The term ``Rocky Flats'' means the Rocky
            Flats Environmental Technology Site, Colorado, a defense
            nuclear facility, as depicted on the map entitled ``Rocky Flats
            Environmental Technology Site'', dated July 15, 1998.
                (9) Rocky flats trustees.--The term ``Rocky Flats
            Trustees'' means the Federal and State of Colorado entities
            that have been identified as trustees for Rocky Flats under
            section 107(f)(2) of the Comprehensive Environmental Response,
            Compensation, and Liability Act of 1980 (42 U.S.C. 9607(f)(2)).
                (10) Secretary.--The term ``Secretary'' means the Secretary
            of Energy.

    SEC. 3174. FUTURE OWNERSHIP AND MANAGEMENT.

        (a) Federal Ownership.--Unless Congress provides otherwise in an
    Act enacted after the date of enactment of this Act, all right, title,
    and interest of the United States, held on or acquired after the date
    of enactment of this Act, to land 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), 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.--The Secretary of the Interior shall
    not 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 and 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 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 for land under this
            subsection may be submitted by any county, city, or other
            political subdivision of the State of Colorado and shall
            include documentation demonstrating that--
                        (A) the transportation project is constructed so as
                    to minimize adverse effects on the management of Rocky
                    Flats as a wildlife refuge; and
                        (B) the transportation project is 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.

    SEC. 3175. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND JURISDICTION
                  OVER ROCKY FLATS.

        (a) In General.--
                (1) Memorandum of understanding.--
                        (A) In general.--Not later than one year after the
                    date of enactment of this Act, the Secretary and the
                    Secretary of the Interior shall publish in the Federal
                    Register a draft memorandum of understanding under
                    which the Secretary shall transfer to the Secretary of
                    the Interior administrative jurisdiction over Rocky
                    Flats.
                        (B) Required elements.--
                                (i) In general.--Subject to clause (ii),
                            the memorandum of understanding shall--
                                        (I) provide for the timing of the
                                    transfer;
                                        (II) provide for the division of
                                    responsibilities between the Secretary
                                    and the Secretary of the Interior for
                                    the period ending on the date of the
                                    transfer; and
                                        (III) provide an appropriate
                                    allocation of costs and personnel to
                                    the Secretary of the Interior.
                                (ii) No reduction in funds.--The memorandum
                            of understanding shall not result in any
                            reduction in funds available to the Secretary
                            for cleanup and closure of Rocky Flats.
                        (C) Deadline.--Not later than 18 months after the
                    date of enactment of this Act, the Secretary and
                    Secretary of the Interior shall finalize and implement
                    the memorandum of understanding.
                (2) Exclusions.--The transfer under paragraph (1) shall not
            include the transfer of any property or facility over which the
            Secretary retains jurisdiction, authority, and control under
            subsection (b)(1).
                (3) Condition.--The transfer under paragraph (1) shall
            occur--
                        (A) not earlier than the date on which the Regional
                    Administrator for Region VIII of the Environmental
                    Protection Agency signs the Final On-site Record of
                    Decision for Rocky Flats; but
                        (B) not later than 10 business days after that
                    date.
                (4) Cost; improvements.--The transfer--
                        (A) shall be completed without cost to the
                    Secretary of the Interior; and
                        (B) may include such buildings or other
                    improvements as the Secretary of the Interior may
                    request in writing for refuge management purposes.
        (b) Property and Facilities Excluded From Transfers.--
                (1) In general.--The Secretary shall retain jurisdiction,
            authority, and control over all real property and facilities at
            Rocky Flats that are to be used for--
                        (A) any necessary and appropriate long-term
                    operation and maintenance facility to intercept, treat,
                    or control a radionuclide or any other hazardous
                    substance, pollutant, or contaminant; and
                        (B) any other purpose relating to a response action
                    or any other action that is required to be carried out
                    at Rocky Flats.
                (2) Consultation.--
                        (A) Identification of property.--The Secretary
                    shall consult with the Secretary of the Interior, the
                    Administrator of the Environmental Protection Agency,
                    and the State of Colorado on the identification of all
                    property to be retained under this subsection to ensure
                    the continuing effectiveness of response actions.
                        (B) Management of property.--
                                (i) In general.--The Secretary shall
                            consult with the Secretary of the Interior on
                            the management of the retained property to
                            minimize any conflict between the management of
                            property transferred to the Secretary of the
                            Interior and property retained by the Secretary
                            for response actions.
                                (ii) Conflict.--In the case of any such
                            conflict, implementation and maintenance of the
                            response action shall take priority.
                (3) Access.--As a condition of the transfer under
            subsection (a), the Secretary shall be provided such easements
            and access as are reasonably required to carry out any
            obligation or address any liability.
        (c) Administration.--
                (1) In general.--On completion of the transfer under
            subsection (a), the Secretary of the Interior shall administer
            Rocky Flats in accordance with this Act subject to--
                        (A) any response action or institutional control at
                    Rocky Flats carried out by or under the authority of
                    the Secretary under the Comprehensive Environmental
                    Response, Compensation, and Liability Act of 1980 (42
                    U.S.C. 9601 et seq.); and
                        (B) any other action required under any other
                    Federal or State law to be carried out by or under the
                    authority of the Secretary.
                (2) Conflict.--In the case of any conflict between the
            management of Rocky Flats by the Secretary of the Interior and
            the conduct of any response action or other action described in
            subparagraph (A) or (B) of paragraph (1), the response action
            or other action shall take priority.
                (3) Continuing actions.--Except as provided in paragraph
            (1), nothing in this subsection affects any response action or
            other action initiated at Rocky Flats on or before the date of
            the transfer under subsection (a).
                (4) Liability.--The Secretary shall retain any obligation
            or other liability for land transferred under subsection (a)
            under--
                        (A) the Comprehensive Environmental Response,
                    Compensation, and Liability Act of 1980 (42 U.S.C. 9601
                    et seq.); or
                        (B) any other applicable law.

    SEC. 3176. CONTINUATION OF ENVIRONMENTAL CLEANUP AND CLOSURE.

        (a) Ongoing Cleanup and Closure.--
                (1) In general.--The Secretary shall carry out to
            completion cleanup and closure at Rocky Flats.
                (2) 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.
        (b) Rules of Construction.--
                (1) No relief from obligations under other law.--
                        (A) In general.--Nothing in this subtitle, and no
                    action taken under this subtitle, relieves the
                    Secretary, the Administrator of the Environmental
                    Protection Agency, or any other person from any
                    obligation or other liability with respect to Rocky
                    Flats under the RFCA or any applicable Federal or State
                    law.
                        (B) No effect on rfca.--Nothing in this subtitle
                    impairs or alters any provision of the RFCA.
                (2) Required cleanup levels.--
                        (A) In general.--Except as provided in subparagraph
                    (B), nothing in this subtitle affects the level of
                    cleanup and closure at Rocky Flats required under the
                    RFCA or any Federal or State law.
                        (B) No effect from establishment as national
                    wildlife refuge.--
                                (i) In general.--The requirements of this
                            subtitle for establishment and management of
                            Rocky Flats as a national wildlife refuge shall
                            not affect the level of cleanup and closure.
                                (ii) Cleanup levels.--The Secretary is
                            required to conduct cleanup and closure of
                            Rocky Flats to the levels hereafter 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 effect on obligations for measures to control
            contamination.--Nothing in this subtitle, and no action taken
            under this subtitle, affects any long-term obligation of the
            United States relating to funding, construction, monitoring, or
            operation and maintenance of--
                        (A) any necessary intercept or treatment facility;
                    or
                        (B) any other measure to control contamination.
        (c) 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 hazardous substance or pollutant or contaminant to pay the
    costs of response actions carried out to abate the release of, or clean
    up, the hazardous substance or pollutant or contaminant.
        (d) Consultation.--In carrying out a response action at Rocky
    Flats, the Secretary shall consult with the Secretary of the Interior
    to ensure that the response action is carried out in a manner that--
                (1) does not impair the attainment of the goals of the
            response action; but
                (2) minimizes, to the maximum extent practicable, adverse
            effects of the response action on the refuge.

    SEC. 3177. ROCKY FLATS NATIONAL WILDLIFE REFUGE.

        (a) Establishment.--Not later than 30 days after the transfer of
    jurisdiction under section 3175(a)(3), the Secretary of the Interior
    shall establish at Rocky Flats a national wildlife refuge to be known
    as the ``Rocky Flats National Wildlife Refuge''.
        (b) Composition.--The refuge shall consist of the real property
    subject to the transfer of jurisdiction under section 3175(a)(1).
        (c) Notice.--The Secretary of the Interior shall publish in the
    Federal Register a notice of the establishment of the refuge.
        (d) Administration and Purposes.--
                (1) In general.--The Secretary of the Interior shall manage
            the refuge in accordance with applicable law, including this
            Act, the National Wildlife Refuge System Administration Act of
            1966 (16 U.S.C. 668dd et seq.), and the purposes specified in
            that Act.
                (2) Specific management purposes.--To the extent consistent
            with applicable law, 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.));
                        (D) providing opportunities for compatible,
                    wildlife-dependent environmental scientific research;
                    and
                        (E) providing the public with opportunities for
                    compatible outdoor recreational and educational
                    activities.

    SEC. 3178. PUBLIC INVOLVEMENT.

        (a) Establishment of Process.--Not later than 90 days after the
    date of enactment of this Act, in developing plans for the management
    of fish and wildlife and public use of the refuge, the Secretary of the
    Interior, in consultation with the Secretary, the members of the
    Coalition, the Governor of the State of Colorado, and the Rocky Flats
    Trustees, shall establish a process for involvement of the public and
    local communities in accomplishing the purposes and objectives of this
    section.
        (b) Other Participants.--In addition to the entities specified in
    subsection (a), the public involvement process shall include the
    opportunity for direct involvement of entities not members of the
    Coalition as of the date of 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 public
    involvement process under this section--
                (1) the public involvement process under this section 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 the public involvement process.
        (d) Purposes.--The public involvement process under this section
    shall provide input and make recommendations to the Secretary and the
    Secretary of the Interior on the following:
                (1) The long-term management of the refuge consistent with
            the purposes of the refuge described in section 3177(d) and in
            the National Wildlife Refuge System Administration Act of 1966
            (16 U.S.C. 668dd et seq.).
                (2) The identification of any land described in section
            3174(e) that could be made available for transportation
            purposes.
                (3) The potential for leasing any land in Rocky Flats for
            the National Renewable Energy Laboratory to carry out projects
            relating to the National Wind Technology Center.
                (4) The characteristics and configuration of any perimeter
            fencing that may be appropriate or compatible for cleanup and
            closure, refuge, or other purposes.
                (5) The feasibility of locating, and the potential location
            for, a visitor and education center at the refuge.
                (6) The establishment of a Rocky Flats museum described in
            section 3180.
                (7) Any other issues relating to Rocky Flats.
        (e) Report.--Not later than three years after the date of enactment
    of this Act, the Secretary of the Interior shall submit to the
    Committee on Armed Services of the Senate and the appropriate committee
    of the House of Representatives a report that--
                (1) outlines the conclusions reached through the public
            involvement process; and
                (2) to the extent that any input or recommendation from the
            public involvement process is not accepted, clearly states the
            reasons why the input or recommendation is not accepted.

    SEC. 3179. PROPERTY RIGHTS.

        (a) In General.--Except as provided in subsection (c), 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 described 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 described 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 applicable law.--Nothing in this subtitle
            affects any other applicable Federal, State, or local law
            (including any regulation) relating to the use, development,
            and management of property rights described 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 enactment of this Act, that is necessary to perfect or
            maintain a water right in existence on that date.
        (d) Purchase of Mineral Rights.--
                (1) In general.--The Secretary shall seek to acquire any
            and all mineral rights at Rocky Flats through donation or
            through purchase or exchange from willing sellers for fair
            market value.
                (2) Funding.--The Secretary and the Secretary of the
            Interior--
                        (A) may use for the purchase of mineral rights
                    under paragraph (1) funds specifically provided by
                    Congress; but
                        (B) shall not use for such purchase funds
                    appropriated by Congress for the cleanup and closure of
                    Rocky Flats.
        (e) 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).
        (f) Easement Surveys.--
                (1) In general.--Subject to paragraph (2), until the date
            that is 180 days after the date of 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.
                (2) Limitation on conditions.--An activity carried out
            under paragraph (1) shall be subject only to such conditions as
            are imposed--
                        (A) by the Secretary of Energy, before the date on
                    which the transfer of management responsibilities under
                    section 3175(a)(3) is completed, to minimize
                    interference with the cleanup and closure of Rocky
                    Flats; and
                        (B) by the Secretary of the Interior, on or after
                    the date on which the transfer of management
                    responsibilities under section 3175(a)(3) is completed,
                    to minimize adverse effects on the management of the
                    refuge.

    SEC. 3180. ROCKY FLATS MUSEUM.

        (a) Museum.--In order to commemorate the contribution that Rocky
    Flats and its worker force provided to the winning of the Cold War and
    the impact that the 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 enactment
    of this Act, the Secretary, in coordination with the city of Arvada,
    shall submit to the Committee on Armed Services of the Senate and the
    appropriate committee of the House of Representatives 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. 3181. REPORT ON FUNDING.

        At the time of submission of the first budget of the United States
    Government submitted by the President under section 1105 of title 31,
    United States Code, after the date of enactment of this Act, and
    annually thereafter, the Secretary and the Secretary of the Interior
    shall report to the Committee on Armed Services and the Committee on
    Appropriations of the Senate and the appropriate committees of the
    House of Representatives on--
                (1) the costs incurred in implementing this subtitle during
            the preceding fiscal year; and
                (2) the funds required to implement this subtitle during
            the current and subsequent fiscal years.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    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. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN THE NATIONAL
                  DEFENSE STOCKPILE.

        (a) Disposal Required.--Subject to the conditions specified in
    subsection (b), the President may dispose of obsolete and excess
    materials currently contained in the National Defense Stockpile
    provided for in section 4 of the Strategic and Critical Materials Stock
    Piling Act (50 U.S.C. 98c). 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. 3302. REVISION OF LIMITATIONS ON REQUIRED DISPOSALS OF COBALT IN
                  THE NATIONAL DEFENSE STOCKPILE.

        (a) Public Law 105-261.--Section 3303 of the Strom Thurmond
    National Defense Authorization Act for Fiscal Year 1999 (112 Stat.
    2263; 50 U.S.C. 98d note) is amended--
                (1) in subsection (a), by striking ``the amount of--'' and
            inserting ``total amounts not less     than--''; 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 such subsection (a)(4)''.
        (b) Public Law 105-85.--Section 3305 of the National Defense
    Authorization Act for Fiscal Year 1998 (111 Stat. 2057; 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)(2)--
                        (A) by striking ``may not dispose of cobalt under
                    this section'' and inserting ``may not, under this
                    section, dispose of cobalt in the fiscal year referred
                    to in subsection (a)(5)''; and
                        (B) by striking ``receipts in the amounts specified
                    in subsection (a)'' and inserting ``receipts during
                    that fiscal year in the total amount specified in such
                    subsection (a)(5)''.
        (c) Public Law 104-201.--Section 3303 of the National Defense
    Authorization Act for Fiscal Year 1997 (110 Stat. 2855; 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)(2)--
                        (A) by striking ``may not dispose of materials
                    under this section'' and inserting ``may not, under
                    this section, dispose of materials during the 10-fiscal
                    year period referred to in subsection (a)(2)''; and
                        (B) by striking ``receipts in the amounts specified
                    in subsection (a)'' and inserting ``receipts during
                    that period in the total amount specified in such
                    subsection (a)(2)''.

    SEC. 3303. ACCELERATION OF REQUIRED DISPOSAL OF COBALT IN THE NATIONAL
                  DEFENSE STOCKPILE.

        Section 3305(a) of the National Defense Authorization Act for
    Fiscal Year 1998 (111 Stat. 2057; 50 U.S.C. 98d note) is amended--
                (1) in paragraph (1), by striking ``2003'' and inserting
            ``2002'';
                (2) in paragraph (1), by striking ``2004'' and inserting
            ``2003'';
                (3) in paragraph (1), by striking ``2005'' and inserting
            ``2004'';
                (4) in paragraph (1), by striking ``2006'' and inserting
            ``2005''; and
                (5) in paragraph (1), by striking ``2007'' and inserting
            ``2006''.

    SEC. 3304. REVISION OF RESTRICTION ON DISPOSAL OF MANGANESE FERRO.

        Section 3304 of the National Defense Authorization Act for Fiscal
    Year 1996 (Public Law 104-106; 110 Stat. 629) is amended--
                (1) in subsection (a)--
                        (A) by striking ``(a) Disposal of Lower Grade
                    Material First.--The President'' and inserting ``During
                    fiscal year 2002, the President''; and
                        (B) in the first sentence, by striking ``, until
                    completing the disposal of all manganese ferro in the
                    National Defense Stockpile that does not meet such
                    classification''; and
                (2) by striking subsections (b) and (c).

                     TITLE XXXIV--NAVAL PETROLEUM RESERVES

    SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

        (a) Authorization of Appropriations.--There is 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
    (as defined in section 7420(2) of such title).
        (b) Availability.--The amount authorized to be appropriated by
    subsection (a) shall remain available until expended.

                                                           Calendar No. 163

    107th CONGRESS

      1st Session

                                    S. 1438

    _______________________________________________________________________

                                     A BILL

         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.

    _______________________________________________________________________

                               September 20, 2001

                Read the second time and placed on the calendar