[Congressional Record (Bound Edition), Volume 146 (2000), Part 15]
[House]
[Pages 21352-21762]
[From the U.S. Government Publishing Office, www.gpo.gov]



   CONFERENCE REPORT ON H.R. 5408, FLOYD D. SPENCE NATIONAL DEFENSE 
                 AUTHORIZATION ACT FOR FISCAL YEAR 2001

  Mr. STUMP submitted the following conference report and statement on 
the bill (H.R. 4205) to authorize appropriations for fiscal year 2001 
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:

                  Conference Report (H. Rept. 106-945)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4205), to authorize appropriations for fiscal year 2001 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, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. ENACTMENT OF FISCAL YEAR 2001 NATIONAL DEFENSE 
                   AUTHORIZATION ACT.

       The provisions of H.R. 5408 of the 106th Congress, as 
     introduced on October 6, 2000, are hereby enacted into law.

     SEC. 2. PUBLICATION OF ACT.

       In publishing this Act in slip form and in the United 
     States Statutes at Large pursuant to section 112 of title 1, 
     United States Code, the Archivist of the United States shall 
     include after the date of approval an appendix setting forth 
     the text of the bill referred to in section 1.
       And the Senate agree to the same.
     Joel Hefley,
     Jim Saxton,
     Steve Buyer,
     Tillie K. Fowler,
     John M. McHugh,
     James M. Talent,
     Terry Everett,
     Roscoe G. Bartlett,
     From the Committee on Armed Services, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     John R. Kasich,
     James V. Hansen,
     Curt Weldon,
     Howard ``Buck'' McKeon,
     J.C. Watts, Jr.,
     Mack Thornberry,
     John N. Hastettler,
     Saxby Chambliss,
     Ike Skelton,
     Norman Sisisky
     John Spratt,
     Solomon P. Ortiz,
     Owen B. Pickett,
     Lane Evans,
     Gene Taylor,
     Neil Abercrombie,
     Martin T. Meehan,
     Thomas Allen,
     Vic Snyder,
     James H. Maloney,
     Mike McIntyre,
     Ellen O. Tauscher,
     Mike Thompson,
     Provided that Mr. Kuykendall is appointed in lieu of Mr. 
     Kasich for consideration of section 2863 of the House bill, 
     and section 2862 of the Senate amendment, and modifications 
     committed to conference:
     Steven T. Kuykendall,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Porter J. Goss,
     Jerry Lewis,
     Julian C. Dixon,
     From the Committee on Commerce, for consideration of sections 
     601, 725, and 1501 of the House bill, and sections 342, 601, 
     618, 701, 1073, 1402, 2812, 3131, 3133, 3134, 3138, 3152, 
     3154, 3155, 3167-3169, 3171, 3201, and 3301-3303 of the 
     Senate amendment, and modifications committed to conference:
     Tom Bliley,
     Joe Barton,
     John D. Dingell,
     Provided that Mr. Bilirakis is appointed in lieu of Mr. 
     Barton of Texas for consideration of sections 601 and 725 of 
     the House bill, and sections 601, 618, 701, and 1073 of the 
     Senate amendment, and modifications committed to conference:
     Mike Bilirakis,
     Provided that Mr. Oxley is appointed in lieu of Mr. Barton of 
     Texas for consideration of section 1501 of the House bill, 
     and sections 342 and 2812 of the Senate amendment, and 
     modifications committed to conference:
     Michael G. Oxley,
     From the Committee on Education and the Workforce, for 
     consideration of sections 341, 342, 504, and 1106 of the 
     House bill, and sections 311, 379, 553, 669, 1053, and title 
     XXXV of the Senate amendment, and modifications committed to 
     conference:
     Bill Goodling,
     Van Hilleary,
     Pasty T. Mink,
     From the Committee on Government Reform, for consideration of 
     sections 518, 651, 723, 801, 906, 1101-1104, 1106, 1107, and 
     3137 of the House bill, and sections 643, 651, 801, 806, 810, 
     814-816, 1010A 1044, 1057, 1063, 1069, 1073, 1101, 1102, 
     1004, and 1106-1118, title XIV, and sections 2871, 2881, 
     3155, and 3171 of the Senate amendment, and modifications 
     committed to conference:
     Dan Burton,
     Joe Scarborough,
     Henry A. Waxman,
     Provided that Mr. Horn is appointed in lieu of Mr. 
     Scarborough for consideration of section 801 of the House 
     bill, and sections 801, 806, 810, 814-816, 1010A, 1044, 1045, 
     1057, 1063, and 1101, title XIV, and sections 2871 and 2881 
     of the Senate amendment, and modifications committee to 
     conference:
     Stephen Horn,
     Provided that Mr. McHugh is appointed in lieu of Mr. 
     Scarborough for consideration of section 1073 of the Senate 
     amendment, and modifications committed to conference:
     John M. McHugh,
     From the Committee on House Administration, for consideration 
     of sections 561-563 of the Senate amendment, and 
     modifications committed to conference:
     William M. Thomas,
     John Boehner,
     Steny H. Hoyer,
     From the Committee on International Relations, for 
     consideration of sections 1201, 1205, 1209, and 1210, title 
     XIII, and section 3136 of the House bill, and sections 1011, 
     1201-1203, 1206 1208, 1209, 1212, 1214, 3178, and 3193 of the 
     Senate amendment, and modifications committed to conference:
     Bill Goodling,
     From the Committee on the Judiciary, for consideration of 
     sections 543 and 906 of the House bill, and sections 506, 
     645, 663, 668, 909, 1068, and 1106, title XV, and title XXXV 
     of the Senate amendment, and modifications committed to 
     conference:
     Henry Hyde,
     Charles T. Canady,
     From the Committee on Resources, for consideration of 
     sections 312, 601, 1501, 2853, 2883, and 3402 of the House 
     bill, and sections 601 and 1059, title XIII, and sections 
     2871, 2893, and 3303 of the Senate amendment, and 
     modifications committed to conference:
     Don Young of Alaska,
     Billy Tauzin,
     From the Committee on Transportation and Infrastructure, for 
     consideration of sections 601, 2839, and 2881 of the House 
     bill, and sections 502, 601, and 1072 of the Senate 
     amendment, and modifications committed to conference:
     Bud Shuster,
     Wayne T. Gilchrest
     Brian Baird,
     Provided that Mr. Pascrell is appointed in lieu of Mr. Baird 
     for consideration of section 1072 of the Senate amendment, 
     and modifications committed to conference:
     Bill Pascrell, Jr.,
     From the Committee on Veterans' Affairs, for consideration of 
     sections 535, 738, and 2831 of the House bill, and sections 
     561-563, 648, 664-666, 671, 672, 682-684, 721, 722, and 1067 
     of the Senate amendment, and modifications committed to 
     conference:
     Michael Bilirakis,
     Jack Quinn,
     Corrine Brown of Florida,
     From the Committee on Ways and Means, for consideration of 
     section 725 of the House bill, and section 701 of the Senate 
     amendment, and modifications committed to conference:
     William M. Thomas,
                                Managers on the Part of the House.
      John W. Warner,
      Strom Thurmond,

[[Page 21353]]

      John McCain,
      Bob Smith of New Hampshire,
      James Inhofe,
      Rick Santorum,
      Olympia J. Snowe,
      Pat Roberts,
      Wayne Allard,
      Tim Hutchinson,
      Jeff Sessions,
     Carl Levin,
      Edward Kennedy,
      Jeff Bingaman,
      Robert C. Byrd,
      Chuck Robb,
     Joe Lieberman,
     Max Cleland,
     Ms. Mary L. Landrieu,
     Jack Reed,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4205) to authorize 
     appropriations for fiscal year 2001 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, submit the following 
     joint statement to the House and the Senate in explanation of 
     the effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck out all of the House bill after 
     the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.
       The conference agreement would enact the provisions of H.R. 
     5408 as introduced on October 6, 2000. The text of that bill 
     follows:

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``Floyd D. 
     Spence National Defense Authorization Act for Fiscal Year 
     2001''.
       (b) Findings.--Congress makes the following findings:
       (1) Representative Floyd D. Spence of South Carolina was 
     elected to the House of Representatives in 1970, for service 
     in the 92d Congress, after serving in the South Carolina 
     legislature for 10 years, and he has been reelected to each 
     subsequent Congress.
       (2) Representative Spence came to Congress as a 
     distinguished veteran of service in the Armed Forces of the 
     United States.
       (3) Upon graduation from college in 1952, Representative 
     Spence was commissioned as an ensign in the United States 
     Naval Reserve. After entering active duty, he served with 
     distinction aboard the USS CARTER HALL and the USS LSM-397 
     during the Korean War and later served as commanding officer 
     of a Naval Reserve Surface Division and as group commander of 
     all Naval Reserve units in Columbia, South Carolina. 
     Representative Spence retired from the Naval Reserve in 1988 
     in the grade of captain, after 41 years of dedicated service.
       (4) Upon election to the House of Representatives, 
     Representative Spence became a member of the Committee on 
     Armed Services of that body. During 30 years of service on 
     that committee (4 years of which were served while the 
     committee was known as the Committee on National Security), 
     Representative Spence's contributions to the national defense 
     and security of the United States have been profound and long 
     lasting.
       (5) Representative Spence served as chairman of that 
     committee while known as the Committee on National Security 
     during the 104th and 105th Congresses and serves as chairman 
     of that committee for the 106th Congress. In addition, 
     Representative Spence served as the ranking minority member 
     of the Committee on Armed Services during the 103d Congress.
       (6) Dozens of awards from active duty and reserve military, 
     veterans service, military retiree, and industry 
     organizations and associations have recognized the 
     distinguished character of Representative Spence's service to 
     the Nation.
       (7) Representative Spence has been a leading figure in the 
     debate over many of the most critical military readiness, 
     health care, recruiting, and retention issues currently 
     confronting the Nation's military. His concern for the men 
     and women in uniform has been unwavering, and his 
     accomplishments in promoting and gaining support for those 
     issues that preserve the combat effectiveness, morale, and 
     quality of life of the Nation's military personnel have been 
     unparalleled.
       (8) During his tenure as chairman of the Committee on 
     National Security and the Committee on Armed Services of the 
     House of Representatives, Representative Spence has--
       (A) led efforts to identify and reverse the effect that 
     declining resources and rising commitments have had on 
     military quality of life for service members and their 
     families, on combat readiness, and on equipment 
     modernization, with a direct result of those diligent efforts 
     and of his willingness to be an outspoken proponent for 
     America's military being that Congress has added nearly 
     $50,000,000,000 to the President's defense budgets over the 
     past 5 years;
       (B) been a leading proponent of the need to expeditiously 
     develop and field a national missile defense to protect 
     American citizens and forward deployed military forces from 
     growing ballistic missile threats;
       (C) advocated reversing the growing disparity between 
     actual military capability and the requirements associated 
     with the National Military Strategy; and
       (D) led efforts in Congress to reform Department of Defense 
     acquisition and management headquarters and infrastructure 
     and business practices.
       (9) This Act is the 30th annual authorization bill for the 
     Department of Defense for which Representative Spence has 
     taken a major responsibility as a member of the Committee on 
     Armed Services of the House of Representatives (including 4 
     years while that committee was known as the Committee on 
     National Security).
       (10) In light of the findings in the preceding paragraphs, 
     it is altogether fitting and proper that this Act be named in 
     honor of Representative Floyd D. Spence of South Carolina, as 
     provided in subsection (a).

     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; findings.
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. Defense Health Program.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority.
Sec. 112. Increase in limitation on number of bunker defeat munitions 
              that may be acquired.
Sec. 113. Reports and limitations relating to Army transformation.

                       Subtitle C--Navy Programs

Sec. 121. CVNX-1 nuclear aircraft carrier program.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. Virginia class submarine program.
Sec. 124. Limitation during fiscal year 2001 on changes in submarine 
              force structure.
Sec. 125. ADC(X) ship program.
Sec. 126. Refueling and complex overhaul program of the U.S.S. Dwight 
              D. Eisenhower.
Sec. 127. Analysis of certain shipbuilding programs.
Sec. 128. Helicopter support of FFG-7 frigates during fiscal year 2001.
Sec. 129. V-22 cockpit aircraft voice and flight data recorders.

                     Subtitle D--Air Force Programs

Sec. 131. Annual report on B-2 bomber.
Sec. 132. Report on modernization of Air National Guard F-16A units.

                       Subtitle E--Joint Programs

Sec. 141. Study of final assembly and checkout alternatives for the 
              Joint Strike Fighter program.

                 Subtitle F--Chemical Demilitarization

Sec. 151. Pueblo Chemical Depot chemical agent and munitions 
              destruction technologies.
Sec. 152. Report on assessment of need for Federal economic assistance 
              for communities impacted by chemical demilitarization 
              activities.
Sec. 153. Prohibition against disposal of non-stockpile chemical 
              warfare material at Anniston chemical stockpile disposal 
              facility.

         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. Management of Space-Based Infrared System--Low.
Sec. 212. Joint Strike Fighter program.
Sec. 213. Fiscal year 2002 joint field experiment.
Sec. 214. Nuclear aircraft carrier design and production modeling.
Sec. 215. DD-21 class destroyer program.
Sec. 216. Limitation on Russian American Observation Satellites 
              program.
Sec. 217. Joint biological defense program.
Sec. 218. Report on biological warfare defense vaccine research and 
              development programs.

[[Page 21354]]

Sec. 219. Cost limitations applicable to F-22 aircraft program.
Sec. 220. Unmanned advanced capability combat aircraft and ground 
              combat vehicles.
Sec. 221. Global Hawk high altitude endurance unmanned aerial vehicle.
Sec. 222. Army space control technology development.

                 Subtitle C--Ballistic Missile Defense

Sec. 231. Funding for fiscal year 2001.
Sec. 232. Reports on ballistic missile threat posed by North Korea.
Sec. 233. Plan to modify ballistic missile defense architecture.
Sec. 234. Management of Airborne Laser program.

                 Subtitle D--High Energy Laser Programs

Sec. 241. Funding.
Sec. 242. Implementation of High Energy Laser Master Plan.
Sec. 243. Designation of senior official for high energy laser 
              programs.
Sec. 244. Site for Joint Technology Office.
Sec. 245. High energy laser infrastructure improvements.
Sec. 246. Cooperative programs and activities.
Sec. 247. Technology plan.
Sec. 248. Annual report.
Sec. 249. Definition.
Sec. 250. Review of defense-wide directed energy programs.

                       Subtitle E--Other Matters

Sec. 251. Reports on mobile offshore base concept and potential use for 
              certain purposes of technologies associated with that 
              concept.
Sec. 252. Air Force science and technology planning.
Sec. 253. Enhancement of authorities regarding education partnerships 
              for purposes of encouraging scientific study.
Sec. 254. Recognition of those individuals instrumental to naval 
              research efforts during the period from before World War 
              II through the end of the Cold War.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Joint warfighting capabilities assessment teams.

                  Subtitle B--Environmental Provisions

Sec. 311. Establishment of additional environmental restoration account 
              and use of accounts for operation and monitoring of 
              environmental remedies.
Sec. 312. Certain environmental restoration activities.
Sec. 313. Annual reports under Strategic Environmental Research and 
              Development Program.
Sec. 314. Payment of fines and penalties for environmental compliance 
              at Fort Wainwright, Alaska.
Sec. 315. Payment of fines or penalties imposed for environmental 
              compliance violations at other Department of Defense 
              facilities.
Sec. 316. Reimbursement for certain costs in connection with the former 
              Nansemond Ordnance Depot Site, Suffolk, Virginia.
Sec. 317. Necessity of military low-level flight training to protect 
              national security and enhance military readiness.
Sec. 318. Ship disposal project.
Sec. 319. Defense Environmental Security Corporate Information 
              Management Program.
Sec. 320. Report on Plasma Energy Pyrolysis System.
Sec. 321. Sense of Congress regarding environmental restoration of 
              former defense manufacturing site, Santa Clarita, 
              California.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Use of appropriated funds to cover operating expenses of 
              commissary stores.
Sec. 332. Adjustment of sales prices of commissary store goods and 
              services to cover certain expenses.
Sec. 333. Use of surcharges for construction and improvement of 
              commissary stores.
Sec. 334. Inclusion of magazines and other periodicals as an authorized 
              commissary merchandise category.
Sec. 335. Use of most economical distribution method for distilled 
              spirits.
Sec. 336. Report on effects of availability of slot machines on United 
              States military installations overseas.

        Subtitle D--Department of Defense Industrial Facilities

Sec. 341. Designation of Centers of Industrial and Technical Excellence 
              and public-private partnerships to increase utilization 
              of such centers.
Sec. 342. Unutilized and underutilized plant-capacity costs of United 
              States arsenals.
Sec. 343. Arsenal support program initiative.
Sec. 344. Codification and improvement of armament retooling and 
              manufacturing support programs.

     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Inclusion of additional information in reports to Congress 
              required before conversion of commercial or industrial 
              type functions to contractor performance.
Sec. 352 Effects of outsourcing on overhead costs of Centers of 
              Industrial and Technical Excellence and Army ammunition 
              plants.
Sec. 353. Consolidation, restructuring, or reengineering of Department 
              of Defense organizations, functions, or activities.
Sec. 354. Monitoring of savings resulting from workforce reductions as 
              part of conversion of functions to performance by private 
              sector or other strategic sourcing initiatives.
Sec. 355. Performance of emergency response functions at chemical 
              weapons storage installations.
Sec. 356. Suspension of reorganization or relocation of Naval Audit 
              Service.

                Subtitle F--Defense Dependents Education

Sec. 361. Eligibility of dependents of American Red Cross employees for 
              enrollment in Department of Defense domestic dependent 
              schools in Puerto Rico.
Sec. 362. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 363. Impact aid for children with severe disabilities.
Sec. 364. Assistance for maintenance, repair, and renovation of school 
              facilities that serve dependents of members of the Armed 
              Forces and Department of Defense civilian employees.

                 Subtitle G--Military Readiness Issues

Sec. 371. Measuring cannibalization of parts, supplies, and equipment 
              under readiness reporting system.
Sec. 372. Reporting requirements regarding transfers from high-priority 
              readiness appropriations.
Sec. 373. Effects of worldwide contingency operations on readiness of 
              military aircraft and equipment.
Sec. 374. Identification of requirements to reduce backlog in 
              maintenance and repair of defense facilities.
Sec. 375. New methodology for preparing budget requests to satisfy Army 
              readiness requirements.
Sec. 376. Review of AH-64 aircraft program.
Sec. 377. Report on Air Force spare and repair parts program for C-5 
              aircraft.

                       Subtitle H--Other Matters

Sec. 381. Annual report on public sale of certain military equipment 
              identified on United States Munitions List.
Sec. 382. Resale of armor-piercing ammunition disposed of by the Army.
Sec. 383. Reimbursement by civil air carriers for support provided at 
              Johnston Atoll.
Sec. 384. Travel by Reserves on military aircraft.
Sec. 385. Overseas airlift service on Civil Reserve Air Fleet aircraft.
Sec. 386. Additions to plan for ensuring visibility over all in-transit 
              end items and secondary items.
Sec. 387. Reauthorization of pilot program for acceptance and use of 
              landing fees charged for use of domestic military 
              airfields by civil aircraft.
Sec. 388. Extension of authority to sell certain aircraft for use in 
              wildfire suppression.
Sec. 389. Damage to aviation facilities caused by alkali silica 
              reactivity.
Sec. 390. Demonstration project to increase reserve component internet 
              access and services in rural communities.
Sec. 391. Additional conditions on implementation of Defense Joint 
              Accounting System.
Sec. 392. Report on Defense Travel System.
Sec. 393. Review of Department of Defense costs of maintaining 
              historical properties.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Adjustment to end strength flexibility authority.

                       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 2001 limitation on non-dual status technicians.
Sec. 415. Increase in numbers of members in certain grades authorized 
              to be on active duty in support of the Reserves.

[[Page 21355]]

       Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Authority for Secretary of Defense to suspend certain 
              personnel strength limitations during war or national 
              emergency.
Sec. 422. Exclusion from active component end strengths of certain 
              reserve component members on active duty in support of 
              the combatant commands.
Sec. 423. Exclusion of Army and Air Force medical and dental officers 
              from limitation on strengths of reserve commissioned 
              officers in grades below brigadier general.
Sec. 424. Authority for temporary increases in number of reserve 
              component personnel serving on active duty or full-time 
              national guard duty in certain grades.

              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Eligibility of Army and Air Force Reserve colonels and 
              brigadier generals for position vacancy promotions.
Sec. 502. Flexibility in establishing promotion zones for Coast Guard 
              Reserve officers.
Sec. 503. Time for release of reports of officer promotion selection 
              boards.
Sec. 504. Clarification of requirements for composition of active-duty 
              list selection boards when reserve officers are under 
              consideration.
Sec. 505. Authority to issue posthumous commissions in the case of 
              members dying before official recommendation for 
              appointment or promotion is approved by Secretary 
              concerned.
Sec. 506. Technical corrections relating to retired grade of reserve 
              commissioned officers.
Sec. 507. Grade of chiefs of reserve components and directors of 
              National Guard components.
Sec. 508. Revision to rules for entitlement to separation pay for 
              regular and reserve officers.

             Subtitle B--Reserve Component Personnel Policy

Sec. 521. Exemption from active-duty list for reserve officers on 
              active duty for a period of three years or less.
Sec. 522. Termination of application requirement for consideration of 
              officers for continuation on the reserve active-status 
              list.
Sec. 523. Authority to retain Air Force Reserve officers in all medical 
              specialties until specified age.
Sec. 524. Authority for provision of legal services to reserve 
              component members following release from active duty.
Sec. 525. Extension of involuntary civil service retirement date for 
              certain reserve technicians.

                   Subtitle C--Education and Training

Sec. 531. Eligibility of children of Reserves for Presidential 
              appointment to service academies.
Sec. 532. Selection of foreign students to receive instruction at 
              service academies.
Sec. 533. Revision of college tuition assistance program for members of 
              Marine Corps Platoon Leaders Class program.
Sec. 534. Review of allocation of Junior Reserve Officers Training 
              Corps units among the services.
Sec. 535. Authority for Naval Postgraduate School to enroll certain 
              defense industry civilians in specified programs relating 
              to defense product development.

           Subtitle D--Decorations, Awards, and Commendations

Sec. 541. Limitation on award of Bronze Star to members in receipt of 
              imminent danger pay.
Sec. 542. Consideration of proposals for posthumous or honorary 
              promotions or appointments of members or former members 
              of the Armed Forces and other qualified persons.
Sec. 543. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 544. Addition of certain information to markers on graves 
              containing remains of certain unknowns from the U.S.S. 
              Arizona who died in the Japanese attack on Pearl Harbor 
              on December 7, 1941.
Sec. 545. Sense of Congress on the court-martial conviction of Captain 
              Charles Butler McVay, Commander of the U.S.S. 
              Indianapolis, and on the courageous service of the crew 
              of that vessel.
Sec. 546. Posthumous advancement on retired list of Rear Admiral 
              Husband E. Kimmel and Major General Walter C. Short, 
              senior officers in command in Hawaii on December 7, 1941.
Sec. 547. Commendation of citizens of Remy, France, for World War II 
              actions.
Sec. 548. Authority for Award of the Medal of Honor to William H. 
              Pitsenbarger for valor during the Vietnam War.

       Subtitle E--Military Justice and Legal Assistance Matters

Sec. 551. Recognition by States of military testamentary instruments.
Sec. 552. Policy concerning rights of individuals whose names have been 
              entered into Department of Defense official criminal 
              investigative reports.
Sec. 553. Limitation on Secretarial authority to grant clemency for 
              military prisoners serving sentence of confinement for 
              life without eligibility for parole.
Sec. 554. Authority for civilian special agents of military department 
              criminal investigative organizations to execute warrants 
              and make arrests.
Sec. 555. Requirement for verbatim record in certain special court-
              martial cases.
Sec. 556. Commemoration of the 50th anniversary of the Uniform Code of 
              Military Justice.

               Subtitle F--Matters Relating to Recruiting

Sec. 561. Army recruiting pilot programs.
Sec. 562. Enhancement of recruitment market research and advertising 
              programs.
Sec. 563. Access to secondary schools for military recruiting purposes.
Sec. 564. Pilot program to enhance military recruiting by improving 
              military awareness of school counselors and educators.

                       Subtitle G--Other Matters

Sec. 571. Extension to end of calendar year of expiration date for 
              certain force drawdown transition authorities.
Sec. 572. Voluntary separation incentive.
Sec. 573. Congressional review period for assignment of women to duty 
              on submarines and for any proposed reconfiguration or 
              design of submarines to accommodate female crew members.
Sec. 574. Management and per diem requirements for members subject to 
              lengthy or numerous deployments.
Sec. 575. Pay in lieu of allowance for funeral honors duty.
Sec. 576. Test of ability of reserve component intelligence units and 
              personnel to meet current and emerging defense 
              intelligence needs.
Sec. 577. National Guard Challenge Program.
Sec. 578. Study of use of civilian contractor pilots for operational 
              support missions.
Sec. 579. Reimbursement for expenses incurred by members in connection 
              with cancellation of leave on short notice.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2001.
Sec. 602. Additional restructuring of basic pay rates for enlisted 
              members.
Sec. 603. Revised method for calculation of basic allowance for 
              subsistence.
Sec. 604. Family subsistence supplemental allowance for low-income 
              members of the Armed Forces.
Sec. 605. Basic allowance for housing.
Sec. 606. Additional amount available for fiscal year 2001 increase in 
              basic allowance for housing inside the United States.
Sec. 607. Equitable treatment of junior enlisted members in computation 
              of basic allowance for housing.
Sec. 608. Eligibility of members in grade E-4 to receive basic 
              allowance for housing while on sea duty.
Sec. 609. Personal money allowance for senior enlisted members of the 
              Armed Forces.
Sec. 610. Increased uniform allowances for officers.
Sec. 611. Cabinet-level authority to prescribe requirements and 
              allowance for clothing of enlisted members.
Sec. 612. Increase in monthly subsistence allowance for members of 
              precommissioning programs.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 621. Extension of certain bonuses and special pay authorities for 
              reserve forces.
Sec. 622. Extension of certain bonuses and special pay authorities for 
              nurse officer candidates, registered nurses, and nurse 
              anesthetists.
Sec. 623. Extension of authorities relating to payment of other bonuses 
              and special pays.
Sec. 624. Revision of enlistment bonus authority.
Sec. 625. Consistency of authorities for special pay for reserve 
              medical and dental officers.
Sec. 626. Elimination of required congressional notification before 
              implementation of certain special pay authority.
Sec. 627. Special pay for physician assistants of the Coast Guard.
Sec. 628. Authorization of special pay and accession bonus for pharmacy 
              officers.

[[Page 21356]]

Sec. 629. Correction of references to Air Force veterinarians.
Sec. 630. Career sea pay.
Sec. 631. Increased maximum rate of special duty assignment pay.
Sec. 632. Entitlement of members of the National Guard and other 
              reserves not on active duty to receive special duty 
              assignment pay.
Sec. 633. Authorization of retention bonus for members of the Armed 
              Forces qualified in a critical military skill.
Sec. 634. Entitlement of active duty officers of the Public Health 
              Service Corps to special pays and bonuses of health 
              professional officers of the Armed Forces.

            Subtitle C--Travel and Transportation Allowances

Sec. 641. Advance payments for temporary lodging of members and 
              dependents.
Sec. 642. Additional transportation allowance regarding baggage and 
              household effects.
Sec. 643. Incentive for shipping and storing household goods in less 
              than average weights.
Sec. 644. Equitable dislocation allowances for junior enlisted members.
Sec. 645. Authority to reimburse military recruiters, Senior ROTC 
              cadre, and military entrance processing personnel for 
              certain parking expenses.
Sec. 646. Expansion of funded student travel for dependents.

          Subtitle D--Retirement and Survivor Benefit Matters

Sec. 651. Exception to high-36 month retired pay computation for 
              members retired following a disciplinary reduction in 
              grade.
Sec. 652. Increase in maximum number of Reserve retirement points that 
              may be credited in any year.
Sec. 653. Retirement from active reserve service after regular 
              retirement.
Sec. 654. Same treatment for Federal judges as for other Federal 
              officials regarding payment of military retired pay.
Sec. 655. Reserve component Survivor Benefit Plan spousal consent 
              requirement.
Sec. 656. Sense of Congress on increasing Survivor Benefit Plan 
              annuities for surviving spouses age 62 or older.
Sec. 657. Revision to special compensation authority to repeal 
              exclusion of uniformed services retirees in receipt of 
              disability retired pay.

                       Subtitle E--Other Matters

Sec. 661. Participation in Thrift Savings Plan.
Sec. 662. Determinations of income eligibility for special supplemental 
              food program.
Sec. 663. Billeting services for reserve members traveling for 
              inactive-duty training.
Sec. 664. Settlement of claims for payments for unused accrued leave 
              and for retired pay.
Sec. 665. Additional benefits and protections for personnel incurring 
              injury, illness, or disease in the performance of funeral 
              honors duty.
Sec. 666. Authority for extension of deadline for filing claims 
              associated with capture and internment of certain persons 
              by North Vietnam.
Sec. 667. Back pay for members of the Navy and Marine Corps selected 
              for promotion while interned as prisoners of war during 
              World War II.
Sec. 668. Sense of Congress concerning funding for reserve components.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Provision of domiciliary and custodial care for CHAMPUS 
              beneficiaries and certain former CHAMPUS beneficiaries.
Sec. 702. Chiropractic health care for members on active duty.
Sec. 703. School-required physical examinations for certain minor 
              dependents.
Sec. 704. Two-year extension of dental and medical benefits for 
              surviving dependents of certain deceased members.
Sec. 705. Two-year extension of authority for use of contract 
              physicians at military entrance processing stations and 
              elsewhere outside medical treatment facilities.
Sec. 706. Medical and dental care for Medal of Honor recipients.

                     Subtitle B--Senior Health Care

Sec. 711. Implementation of TRICARE senior pharmacy program.
Sec. 712. Conditions for eligibility for CHAMPUS and TRICARE upon the 
              attainment of age 65; expansion and modification of 
              medicare subvention project.
Sec. 713. Accrual funding for health care for medicare-eligible 
              retirees and dependents.

                      Subtitle C--TRICARE Program

Sec. 721. Improvement of access to health care under the TRICARE 
              program.
Sec. 722. Additional beneficiaries under TRICARE Prime Remote program 
              in the continental United States.
Sec. 723. Modernization of TRICARE business practices and increase of 
              use of military treatment facilities.
Sec. 724. Extension of TRICARE managed care support contracts.
Sec. 725. Report on protections against health care providers seeking 
              direct reimbursement from members of the uniformed 
              services.
Sec. 726. Voluntary termination of enrollment in TRICARE retiree dental 
              program.
Sec. 727. Claims processing improvements.
Sec. 728. Prior authorizations for certain referrals and 
              nonavailability-of-health-care statements.

                   Subtitle D--Demonstration Projects

Sec. 731. Demonstration project for expanded access to mental health 
              counselors.
Sec. 732. Teleradiology demonstration project.
Sec. 733. Health care management demonstration program.

   Subtitle E--Joint Initiatives With Department of Veterans Affairs

Sec. 741. VA-DOD sharing agreements for health services.
Sec. 742. Processes for patient safety in military and veterans health 
              care systems.
Sec. 743. Cooperation in developing pharmaceutical identification 
              technology.

                       Subtitle F--Other Matters

Sec. 751. Management of anthrax vaccine immunization program.
Sec. 752. Elimination of copayments for immediate family.
Sec. 753. Medical informatics.
Sec. 754. Patient care reporting and management system.
Sec. 755. Augmentation of Army Medical Department by detailing Reserve 
              officers of the Public Health Service.
Sec. 756. Privacy of Department of Defense medical records.
Sec. 757. Authority to establish special locality-based reimbursement 
              rates; reports.
Sec. 758. Reimbursement for certain travel expenses.
Sec. 759. Reduction of cap on payments.
Sec. 760. Training in health care management and administration.
Sec. 761. Studies on feasibility of sharing biomedical research 
              facility.
Sec. 762. Study on comparability of coverage for physical, speech, and 
              occupational therapies.

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

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 801. Department of Defense acquisition pilot programs.
Sec. 802. Multiyear services contracts.
Sec. 803. Clarification and extension of authority to carry out certain 
              prototype projects.
Sec. 804. Clarification of authority of Comptroller General to review 
              records of participants in certain prototype projects.
Sec. 805. Extension of time period of limitation on procurement of ball 
              bearings and roller bearings.
Sec. 806. Reporting requirements relating to multiyear contracts.
Sec. 807. Eligibility of small business concerns owned and controlled 
              by women for assistance under the mentor-protege program.
Sec. 808. Qualifications required for employment and assignment in 
              contracting positions.
Sec. 809. Revision of authority for solutions-based contracting pilot 
              program.
Sec. 810. Procurement notice of contracting opportunities through 
              electronic means.

                   Subtitle B--Information Technology

Sec. 811. Acquisition and management of information technology.
Sec. 812. Tracking and management of information technology purchases.
Sec. 813. Appropriate use of requirements regarding experience and 
              education of contractor personnel in the procurement of 
              information technology services.
Sec. 814. Navy-Marine Corps Intranet.
Sec. 815. Sense of Congress regarding information technology systems 
              for Guard and Reserve components.

             Subtitle C--Other Acquisition-Related Matters

Sec. 821. Improvements in procurements of services.
Sec. 822. Financial analysis of use of dual rates for quantifying 
              overhead costs at Army ammunition plants.
Sec. 823. Repeal of prohibition on use of Department of Defense funds 
              for procurement of nuclear-capable shipyard crane from a 
              foreign source.
Sec. 824. Extension of waiver period for live-fire survivability 
              testing for MH-47E and MH-60K helicopter modification 
              programs.
Sec. 825. Compliance with existing law regarding purchases of equipment 
              and products.
Sec. 826. Requirement to disregard certain agreements in awarding 
              contracts for the purchase of firearms or ammunition.

[[Page 21357]]

                    Subtitle D--Studies and Reports

Sec. 831. Study on impact of foreign sourcing of systems on long-term 
              military readiness and related industrial infrastructure.
Sec. 832. Study of policies and procedures for transfer of commercial 
              activities.
Sec. 833. Study and report on practice of contract bundling in military 
              construction contracts.
Sec. 834. Requirement to conduct study on contract bundling.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Overall supervision of Department of Defense activities for 
              combating terrorism.
Sec. 902. Change of title of certain positions in the Headquarters, 
              Marine Corps.
Sec. 903. Clarification of scope of Inspector General authorities under 
              military whistleblower law.
Sec. 904. Policy to ensure conduct of science and technology programs 
              so as to foster the transition of science and technology 
              to higher levels of research, development, test, and 
              evaluation.
Sec. 905. Additional components of Chairman of the Joint Chiefs of 
              staff annual report on combatant command requirements.

            Subtitle B--Department of Defense Organizations

Sec. 911. Western Hemisphere Institute for Security Cooperation.
Sec. 912. Department of Defense regional centers for security studies.
Sec. 913. Change in name of Armed Forces Staff College to Joint Forces 
              Staff College.
Sec. 914. Special authority for administration of Navy Fisher Houses.
Sec. 915. Supervisory control of Armed Forces Retirement Home board by 
              Secretary of Defense.
Sec. 916. Semiannual report on Joint Requirements Oversight Council 
              reform initiative.
Sec. 917. Comptroller General review of operations of Defense Logistics 
              Agency.
Sec. 918. Comptroller General review of operations of Defense 
              Information Systems Agency.

                    Subtitle C--Information Security

Sec. 921. Institute for Defense Computer Security and Information 
              Protection.
Sec. 922. Information security scholarship program.

                          Subtitle D--Reports

Sec. 931. Date of submittal of reports on shortfalls in equipment 
              procurement and military construction for the reserve 
              components in future-years defense programs.
Sec. 932. Report on number of personnel assigned to legislative liaison 
              functions.
Sec. 933. Joint report on establishment of national collaborative 
              information analysis capability.
Sec. 934. Network centric warfare.
Sec. 935. Report on Air Force Institute of Technology.

                       Subtitle E--Other Matters

Sec. 941. Flexibility in implementation of limitation on major 
              Department of Defense headquarters activities personnel.
Sec. 942. Consolidation of certain Navy gift funds.
Sec. 943. Temporary authority to dispose of a gift previously accepted 
              for the Naval Academy.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of emergency supplemental appropriations for 
              fiscal year 2000.
Sec. 1004. United States contribution to NATO common-funded budgets in 
              fiscal year 2001.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
              operations for fiscal year 2001.
Sec. 1006. Requirement for prompt payment of contract vouchers.
Sec. 1007. Plan for prompt recording of obligations of funds for 
              contractual transactions.
Sec. 1008. Electronic submission and processing of claims for contract 
              payments.
Sec. 1009. Administrative offsets for overpayment of transportation 
              costs.
Sec. 1010. Interest penalties for late payment of interim payments due 
              under Government service contracts.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Revisions to national defense features program.
Sec. 1012. Sense of Congress on the naming of the CVN-77 aircraft 
              carrier.
Sec. 1013. Authority to transfer naval vessels to certain foreign 
              countries.
Sec. 1014. Authority to consent to retransfer of alternative former 
              naval vessel by Government of Greece.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority to provide support for counter-drug 
              activities of Colombia.
Sec. 1022. Report on Department of Defense expenditures to support 
              foreign counter-drug activities.
Sec. 1023. Recommendations on expansion of support for counter-drug 
              activities.
Sec. 1024. Review of riverine counter-drug program.
Sec. 1025. Report on tethered aerostat radar system.
Sec. 1026. Sense of Congress regarding use of Armed Forces for counter-
              drug and counter-terrorism activities.

         Subtitle D--Counterterrorism and Domestic Preparedness

Sec. 1031. Preparedness of military installation first responders for 
              incidents involving weapons of mass destruction.
Sec. 1032. Additional weapons of mass destruction civil support teams.
Sec. 1033. Authority to provide loan guarantees to improve domestic 
              preparedness to combat cyberterrorism.
Sec. 1034. Report on the status of domestic preparedness against the 
              threat of biological terrorism.
Sec. 1035.  Report on strategy, policies, and programs to combat 
              domestic terrorism.

                      Subtitle E--Strategic Forces

Sec. 1041. Revised nuclear posture review.
Sec. 1042. Plan for the long-term sustainment and modernization of 
              United States strategic nuclear forces.
Sec. 1043. Modification of scope of waiver authority for limitation on 
              retirement or dismantlement of strategic nuclear delivery 
              systems.
Sec. 1044. Report on the defeat of hardened and deeply buried targets.
Sec. 1045. Sense of Congress on the maintenance of the strategic 
              nuclear triad.

            Subtitle F--Miscellaneous Reporting Requirements

Sec. 1051. Management review of working-capital fund activities.
Sec. 1052. Report on submarine rescue support vessels.
Sec. 1053. Report on Federal Government progress in developing 
              information assurance strategies.
Sec. 1054. Department of Defense process for decisionmaking in cases of 
              false claims.

           Subtitle G--Government Information Security Reform

Sec. 1061. Coordination of Federal information policy.
Sec. 1062. Responsibilities of certain agencies.
Sec. 1063. Relationship of Defense Information Assurance Program to 
              Government-wide information security program.
Sec. 1064. Technical and conforming amendments.
Sec. 1065. Effective date.

                      Subtitle H--Security Matters

Sec. 1071. Limitation on granting of security clearances.
Sec. 1072. Process for prioritizing background investigations for 
              security clearances for Department of Defense personnel 
              and defense contractor personnel.
Sec. 1073. Authority to withhold certain sensitive information from 
              public disclosure.
Sec. 1074. Expansion of authority to exempt geodetic products of the 
              Department of Defense from public disclosure.
Sec. 1075. Expenditures for declassification activities.
Sec. 1076. Enhanced access to criminal history record information for 
              national security and other purposes
Sec. 1077. Two-year extension of authority to engage in commercial 
              activities as security for intelligence collection 
              activities.
Sec. 1078. Coordination of nuclear weapons secrecy policies and 
              consideration of health of workers at former Department 
              of Defense nuclear facilities.

                       Subtitle I--Other Matters

Sec. 1081. Funds for administrative expenses under Defense Export Loan 
              Guarantee program.
Sec. 1082. Transit pass program for Department of Defense personnel in 
              poor air quality areas.
Sec. 1083. Transfer of Vietnam era TA-4 aircraft to nonprofit 
              foundation.
Sec. 1084. Transfer of 19th century cannon to museum.
Sec. 1085. Fees for providing historical information to the public.
Sec. 1086. Grants to American Red Cross for Armed Forces emergency 
              services.
Sec. 1087. Technical and clerical amendments.
Sec. 1088. Maximum size of parcel post packages transported overseas 
              for Armed Forces post offices.
Sec. 1089. Sense of Congress regarding tax treatment of members 
              receiving special pay for duty subject to hostile fire or 
              imminent danger.
Sec. 1090. Organization and management of Civil Air Patrol.

[[Page 21358]]

Sec. 1091. Additional duties for Commission to Assess United States 
              National Security Space Management and Organization.
Sec. 1092. Commission on the Future of the United States Aerospace 
              Industry.
Sec. 1093. Drug addiction treatment.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

          Subtitle A--Civilian Personnel Management Generally

Sec. 1101. Employment and compensation of employees for temporary 
              organizations established by law or Executive order.
Sec. 1102. Assistive technology accommodations program.
Sec. 1103. Extension of authority for voluntary separations in 
              reductions in force.
Sec. 1104. Electronic maintenance of performance appraisal systems.
Sec. 1105. Study on civilian personnel services.

              Subtitle B--Demonstration and Pilot Programs

Sec. 1111. Pilot program for reengineering the equal employment 
              opportunity complaint process.
Sec. 1112. Work safety demonstration program.
Sec. 1113. Extension, expansion, and revision of authority for 
              experimental personnel program for scientific and 
              technical personnel.
Sec. 1114. Clarification of personnel management authority under 
              personnel demonstration project.

                   Subtitle C--Educational Assistance

Sec. 1121. Restructuring the restriction on degree training.
Sec. 1122. Student loan repayment programs.
Sec. 1123. Extension of authority for tuition reimbursement and 
              training for civilian employees in the defense 
              acquisition workforce.

                       Subtitle D--Other Benefits

Sec. 1131. Additional special pay for foreign language proficiency 
              beneficial for United States national security interests.
Sec. 1132. Approval authority for cash awards in excess of $10,000.
Sec. 1133. Leave for crews of certain vessels.
Sec. 1134. Life insurance for emergency essential Department of Defense 
              employees.

              Subtitle E--Intelligence Civilian Personnel

Sec. 1141. Expansion of defense civilian intelligence personnel system 
              positions.
Sec. 1142. Increase in number of positions authorized for the Defense 
              Intelligence Senior Executive Service.

  Subtitle F--Voluntary Separation Incentive Pay and Early Retirement 
                               Authority

Sec. 1151. Extension, revision, and expansion of authorities for use of 
              voluntary separation incentive pay and voluntary early 
              retirement.
Sec. 1152. Department of Defense employee voluntary early retirement 
              authority.
Sec. 1153. Limitations.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

              Subtitle A--Matters Related to Arms Control

Sec. 1201. Support of United Nations-sponsored efforts to inspect and 
              monitor Iraqi weapons activities.
Sec. 1202. Support of consultations on Arab and Israeli arms control 
              and regional security issues.
Sec. 1203. Furnishing of nuclear test monitoring equipment to foreign 
              governments.
Sec. 1204. Additional matters for annual report on transfers of 
              militarily sensitive technology to countries and entities 
              of concern.

              Subtitle B--Matters Relating to the Balkans

Sec. 1211. Annual report assessing effect of continued operations in 
              the Balkans region on readiness to execute the national 
              military strategy.
Sec. 1212. Situation in the Balkans.
Sec. 1213. Semiannual report on Kosovo peacekeeping.

Subtitle C--North Atlantic Treaty Organization and United States Forces 
                               in Europe

Sec. 1221. NATO fair burdensharing.
Sec. 1222. Repeal of restriction preventing cooperative airlift support 
              through acquisition and cross-servicing agreements.
Sec. 1223. GAO study on the benefits and costs of United States 
              military engagement in Europe.

                       Subtitle D--Other Matters

Sec. 1231. Joint data exchange center with Russian Federation on early 
              warning systems and notification of ballistic missile 
              launches.
Sec. 1232. Report on sharing and exchange of ballistic missile launch 
              early warning data.
Sec. 1233. Annual report of Communist Chinese military companies 
              operating in the United States.
Sec. 1234. Adjustment of composite theoretical performance levels of 
              high performance computers.
Sec. 1235. Increased authority to provide health care services as 
              humanitarian and civic assistance.
Sec. 1236. Sense of Congress regarding the use of children as soldiers.
Sec. 1237. Sense of Congress regarding undersea rescue and recovery.
Sec. 1238. United States-China Security Review Commission.

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

Sec. 1301. Specification of cooperative threat reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for elimination of conventional 
              weapons.
Sec. 1304. Limitations on use of funds for fissile material storage 
              facility.
Sec. 1305. Limitation on use of funds to support warhead dismantlement 
              processing.
Sec. 1306. Agreement on nuclear weapons storage sites.
Sec. 1307. Limitation on use of funds for construction of fossil fuel 
              energy plants; report.
Sec. 1308. Reports on activities and assistance under cooperative 
              threat reduction programs.
Sec. 1309. Russian chemical weapons elimination.
Sec. 1310. Limitation on use of funds for elimination of weapons grade 
              plutonium program.
Sec. 1311. Report on audits of Cooperative Threat Reduction programs.

 TITLE XIV--COMMISSION TO ASSESS THE THREAT TO THE UNITED STATES FROM 
                   ELECTROMAGNETIC PULSE (EMP) ATTACK

Sec. 1401. Establishment of commission.
Sec. 1402. Duties of commission.
Sec. 1403. Reports.
Sec. 1404. Powers.
Sec. 1405. Commission procedures.
Sec. 1406. Personnel matters.
Sec. 1407. Miscellaneous administrative provisions.
Sec. 1408. Funding.
Sec. 1409. Termination of the commission.

    TITLE XV--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO

Sec. 1501. Assistance for economic growth on Vieques.
Sec. 1502. Conveyance of Naval Ammunition Support Detachment, Vieques 
              Island.
Sec. 1503. Determination regarding continuation of Navy training.
Sec. 1504. Actions if training is approved.
Sec. 1505. Requirements if training is not approved or mandate for 
              referendum is vitiated.
Sec. 1506. Certain properties exempt from conveyance or transfer.
Sec. 1507. Moratorium on improvements at Fort Buchanan.
Sec. 1508. Transfer and management of Conservation Zones.

     TITLE XVI--GI BILL EDUCATIONAL ASSISTANCE AND VETERANS CLAIMS 
                               ASSISTANCE

                Subtitle A--Veterans Education Benefits

Sec. 1601. Additional opportunity for certain VEAP participants to 
              enroll in basic educational assistance under Montgomery 
              GI Bill.
Sec. 1602. Modification of authority to pay tuition for off-duty 
              training and education.

                 Subtitle B--Veterans Claims Assistance

Sec. 1611. Clarification of Department of Veterans Affairs duty to 
              assist.

                 TITLE XVII--ASSISTANCE TO FIREFIGHTERS

Sec. 1701. Firefighter assistance.
Sec. 1702. Volunteer fire assistance program.
Sec. 1703. Burn research.
Sec. 1704. Study and demonstration projects regarding cases of 
              hepatitis C among certain emergency response employees.
Sec. 1705. Report on progress on spectrum sharing.
Sec. 1706. Sale or donation of excess defense property to assist 
              firefighting agencies.
Sec. 1707. Identification of defense technologies suitable for use, or 
              conversion for use, in providing fire and emergency 
              medical services.

                        TITLE XVIII--IMPACT AID

Sec. 1801. Short title.
Sec. 1802. Purpose.
Sec. 1803. Payments relating to Federal acquisition of real property.
Sec. 1804. Payments for eligible federally connected children.
Sec. 1805. Maximum amount of basic support payments.
Sec. 1806. Basic support payments for heavily impacted local 
              educational agencies.
Sec. 1807. Basic support payments for local educational agencies 
              affected by removal of Federal property.
Sec. 1808. Additional payments for local educational agencies with high 
              concentrations of children with severe disabilities.
Sec. 1809. Application for payments under sections 8002 and 8003.
Sec. 1810. Payments for sudden and substantial increases in attendance 
              of military dependents.
Sec. 1811. Construction.
Sec. 1812. State consideration of payments in providing State aid.

[[Page 21359]]

Sec. 1813. Federal administration.
Sec. 1814. Administrative hearings and judicial review.
Sec. 1815. Forgiveness of overpayments.
Sec. 1816. Definitions.
Sec. 1817. Authorization of appropriations.
Sec. 1818. Effective date.

            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 
              2000 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              1999 projects.
Sec. 2107. Modification of authority to carry out fiscal year 1998 
              project.
Sec. 2108. Authority to accept funds for realignment of certain 
              military construction project, Fort Campbell, Kentucky.

                            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 fiscal year 1997 
              project at Marine Corps Combat Development Command, 
              Quantico, Virginia.

                         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.

                      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. Modification of authority to carry out certain fiscal year 
              1990 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.
Sec. 2602. Authority to contribute to construction of airport tower, 
              Cheyenne Airport, Cheyenne, Wyoming.

        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 1998 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1997 
              projects.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Joint use military construction projects.
Sec. 2802. Exclusion of certain costs from determination of 
              applicability of limitation on use of funds for 
              improvement of family housing.
Sec. 2803. Revision of space limitations for military family housing.
Sec. 2804. Modification of lease authority for high-cost military 
              family housing.
Sec. 2805. Provision of utilities and services under alternative 
              authority for acquisition and improvement of military 
              housing.
Sec. 2806. Extension of alternative authority for acquisition and 
              improvement of military housing.
Sec. 2807. Expansion of definition of armory to include readiness 
              centers.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in threshold for notice and wait requirements for 
              real property transactions.
Sec. 2812. Enhancement of authority of military departments to lease 
              non-excess property.
Sec. 2813. Conveyance authority regarding utility systems of military 
              departments.
Sec. 2814. Permanent conveyance authority to improve property 
              management.

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Scope of agreements to transfer property to redevelopment 
              authorities without consideration under the base closure 
              laws.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Transfer of jurisdiction, Rock Island Arsenal, Illinois.
Sec. 2832. Land conveyance, Army Reserve Center, Galesburg, Illinois.
Sec. 2833. Land conveyance, Charles Melvin Price Support Center, 
              Illinois.
Sec. 2834. Land conveyance, Fort Riley, Kansas.
Sec. 2835. Land conveyance, Fort Polk, Louisiana.
Sec. 2836. Land conveyance, Army Reserve Center, Winona, Minnesota.
Sec. 2837. Land conveyance, Fort Dix, New Jersey.
Sec. 2838. Land conveyance, Nike Site 43, Elrama, Pennsylvania.
Sec. 2839. Land exchange, Army Reserve Local Training Center, 
              Chattanooga, Tennessee.
Sec. 2840. Land exchange, Fort Hood, Texas.
Sec. 2841. Land conveyance, Fort Pickett, Virginia.
Sec. 2842. Land conveyance, Fort Lawton, Washington.
Sec. 2843. Land conveyance, Vancouver Barracks, Washington.

                       Part II--Navy Conveyances

Sec. 2846. Modification of land conveyance, Marine Corps Air Station, 
              El Toro, California.
Sec. 2847. Modification of authority for Oxnard Harbor District, Port 
              Hueneme, California, to use certain Navy property.
Sec. 2848. Transfer of jurisdiction, Marine Corps Air Station, Miramar, 
              California.
Sec. 2849. Land exchange, Marine Corps Recruit Depot, San Diego, 
              California.
Sec. 2850. Lease of property, Naval Air Station, Pensacola, Florida.
Sec. 2851. Land conveyance, Naval Reserve Center, Tampa, Florida.
Sec. 2852. Modification of land conveyance, Defense Fuel Supply Point, 
              Casco Bay, Maine.
Sec. 2853. Land conveyance, Naval Computer and Telecommunications 
              Station, Cutler, Maine.
Sec. 2854. Modification of land conveyance authority, former Naval 
              Training Center, Bainbridge, Cecil County, Maryland.
Sec. 2855. Land conveyance, Marine Corps Base, Camp Lejeune, North 
              Carolina.
Sec. 2856. Land exchange, Naval Air Reserve Center, Columbus, Ohio.
Sec. 2857. Land conveyance, Naval Station, Bremerton, Washington.

                    Part III--Air Force Conveyances

Sec. 2861. Land conveyance, Los Angeles Air Force Base, California.
Sec. 2862. Land conveyance, Point Arena Air Force Station, California.
Sec. 2863. Land conveyance, Lowry Air Force Base, Colorado.
Sec. 2864. Land conveyance, Wright Patterson Air Force Base, Ohio.
Sec. 2865. Modification of land conveyance, Ellsworth Air Force Base, 
              South Dakota.
Sec. 2866. Land conveyance, Mukilteo Tank Farm, Everett, Washington.

                       Part IV--Other Conveyances

Sec. 2871. Land conveyance, Army and Air Force Exchange Service 
              property, Farmers Branch, Texas.
Sec. 2872. Land conveyance, former National Ground Intelligence Center, 
              Charlottesville, Virginia.

                       Subtitle E--Other Matters

Sec. 2881. Relation of easement authority to leased parkland, Marine 
              Corps Base, Camp Pendleton, California.
Sec. 2882. Extension of demonstration project for purchase of fire, 
              security, police, public works, and utility services from 
              local government agencies.
Sec. 2883. Acceptance and use of gifts for construction of third 
              building at United States Air Force Museum, Wright-
              Patterson Air Force Base, Ohio.
Sec. 2884. Development of Marine Corps Heritage Center at Marine Corps 
              Base, Quantico, Virginia.
Sec. 2885. Activities relating to greenbelt at Fallon Naval Air 
              Station, Nevada.
Sec. 2886. Establishment of World War II memorial on Guam.
Sec. 2887. Naming of Army missile testing range at Kwajalein Atoll as 
              the Ronald Reagan Ballistic Missile Defense Test Site at 
              Kwajalein Atoll.
Sec. 2888. Designation of building at Fort Belvoir, Virginia, in honor 
              of Andrew T. McNamara.
Sec. 2889. Designation of Balboa Naval Hospital, San Diego, California, 
              in honor of Bob Wilson, a former member of the House of 
              Representatives.

[[Page 21360]]

Sec. 2890. Sense of Congress regarding importance of expansion of 
              National Training Center, Fort Irwin, California.
Sec. 2891. Sense of Congress regarding land transfers at Melrose Range, 
              New Mexico, and Yakima Training Center, Washington.

 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 general plant 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. Transfers of defense environmental management funds.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Funding for termination costs of River Protection Project, 
              Richland, Washington.
Sec. 3132. Enhanced cooperation between National Nuclear Security 
              Administration and Ballistic Missile Defense 
              Organization.
Sec. 3133. Reprogramming of funds available for infrastructure upgrades 
              or maintenance in certain accounts of the National 
              Nuclear Security Administration.
Sec. 3134. Adjustment of composite theoretical performance levels for 
              post-shipment verification reports on advanced 
              supercomputer sales to certain foreign nations.
Sec. 3135. Modification of counterintelligence polygraph program.
Sec. 3136. Employee incentives for employees at closure project 
              facilities.
Sec. 3137. Continuation of processing, treatment, and disposition of 
              legacy nuclear materials.
Sec. 3138. Limitation on use of certain funds pending certification of 
              compliance with Formerly Utilized Sites Remedial Action 
              Program funding prohibition.
Sec. 3139. Conceptual design for Subsurface Geosciences Laboratory at 
              Idaho National Engineering and Environmental Laboratory, 
              Idaho Falls, Idaho.
Sec. 3140. Report on National Ignition Facility, Lawrence Livermore 
              National Laboratory, Livermore, California.
Sec. 3141. River Protection Project, Richland, Washington.
Sec. 3142. Report on tank waste remediation system, Hanford 
              Reservation, Richland, Washington.

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

Sec. 3151. Term of office of person first appointed as Under Secretary 
              for Nuclear Security of the Department of Energy.
Sec. 3152. Membership of Under Secretary for Nuclear Security on the 
              Joint Nuclear Weapons Council.
Sec. 3153. Organization plan for field offices of the National Nuclear 
              Security Administration.
Sec. 3154. Required contents of future-years nuclear security program.
Sec. 3155. Future-years nuclear security program for fiscal year 2001.
Sec. 3156. Engineering and manufacturing research, development, and 
              demonstration by plant managers of certain nuclear 
              weapons production plants.
Sec. 3157. Prohibition on individuals engaging in concurrent service or 
              duties within National Nuclear Security Administration 
              and outside that Administration but within Department of 
              Energy.
Sec. 3158. Annual plan for obligation of funds of the National Nuclear 
              Security Administration.
Sec. 3159. Authority to reorganize National Nuclear Security 
              Administration.

       Subtitle E--National Laboratories Partnership Improvement

Sec. 3161. Technology Infrastructure Pilot Program.
Sec. 3162. Report on small business participation in National Nuclear 
              Security Administration activities.
Sec. 3163. Study and report related to improving mission effectiveness, 
              partnerships, and technology transfer at national 
              security laboratories and nuclear weapons production 
              facilities.
Sec. 3164. Report on effectiveness of National Nuclear Security 
              Administration technology development partnerships with 
              non-Federal entities.
Sec. 3165. Definitions.

    Subtitle F--Matters Relating to Defense Nuclear Nonproliferation

Sec. 3171. Annual report on status of nuclear materials protection, 
              control, and accounting program.
Sec. 3172. Nuclear Cities Initiative.
Sec. 3173. Department of Energy nonproliferation monitoring.
Sec. 3174. Sense of Congress on the need for coordination of 
              nonproliferation programs.
Sec. 3175. Limitation on use of funds for International Nuclear Safety 
              Program.

                       Subtitle G--Other Matters

Sec. 3191. Extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3192. Biennial report containing update on nuclear test readiness 
              postures.
Sec. 3193. Frequency of reports on inadvertent releases of Restricted 
              Data and Formerly Restricted Data.
Sec. 3194. Form of certifications regarding the safety or reliability 
              of the nuclear weapons stockpile.
Sec. 3195. Authority to provide certificate of commendation to 
              Department of Energy and contractor employees for 
              exemplary service in stockpile stewardship and security.
Sec. 3196. Cooperative research and development agreements for 
              government-owned, contractor-operated laboratories.
Sec. 3197. Office of Arctic Energy.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of stockpile funds.
Sec. 3302. Increased receipts under prior disposal authority.
Sec. 3303. Disposal of titanium.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Minimum price of petroleum sold from certain naval petroleum 
              reserves.
Sec. 3402. Repeal of authority to contract for cooperative or unit 
              plans affecting Naval Petroleum Reserve Numbered 1.
Sec. 3403. Disposal of Oil Shale Reserve Numbered 2.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2001.
Sec. 3502.. Scrapping of National Defense Reserve Fleet vessels.
Sec. 3503. Authority to convey National Defense Reserve Fleet vessel, 
              Glacier.
Sec. 3504. Maritime intermodal research.
Sec. 3505. Maritime research and technology development.
Sec. 3506. Reporting of administered and oversight funds.

TITLE XXXVI--ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION PROGRAM

Sec. 3601. Short title.
Sec. 3602. Findings; sense of Congress.

Subtitle A--Establishment of Compensation Program and Compensation Fund

Sec. 3611. Establishment of Energy Employees Occupational Illness 
              Compensation Program.
Sec. 3612. Establishment of Energy Employees Occupational Illness 
              Compensation Fund.
Sec. 3613. Legislative proposal.
Sec. 3614. Authorization of appropriations.

                   Subtitle B--Program Administration

Sec. 3621. Definitions for program administration.
Sec. 3622. Expansion of list of beryllium vendors.
Sec. 3623. Exposure in the performance of duty.
Sec. 3624. Advisory Board on Radiation and Worker Health.
Sec. 3625. Responsibilities of Secretary of Health and Human Services.
Sec. 3626. Designation of additional members of Special Exposure 
              Cohort.
Sec. 3627. Separate treatment of chronic silicosis.
Sec. 3628. Compensation and benefits to be provided.
Sec. 3629. Medical benefits.
Sec. 3630. Separate treatment of certain uranium employees.
Sec. 3631. Assistance for claimants and potential claimants.

Subtitle C--Treatment, Coordination, and Forfeiture of Compensation and 
                                Benefits

Sec. 3641. Offset for certain payments.
Sec. 3642. Subrogation of the United States.
Sec. 3643. Payment in full settlement of claims.
Sec. 3644. Exclusivity of remedy against the United States and against 
              contractors and subcontractors.
Sec. 3645. Election of remedy for beryllium employees and atomic 
              weapons employees.
Sec. 3646. Certification of treatment of payments under other laws.
Sec. 3647. Claims not assignable or transferable; choice of remedies.

[[Page 21361]]

Sec. 3648. Attorney fees.
Sec. 3649. Certain claims not affected by awards of damages.
Sec. 3650. Forfeiture of benefits by convicted felons.
Sec. 3651. Coordination with other Federal radiation compensation laws.

   Subtitle D--Assistance in State Workers' Compensation Proceedings

Sec. 3661. Agreements with States.

     SEC. . CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Defense Health Program.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority.
Sec. 112. Increase in limitation on number of bunker defeat munitions 
              that may be acquired.
Sec. 113. Reports and limitations relating to Army transformation.

                       Subtitle C--Navy Programs

Sec. 121. CVNX-1 nuclear aircraft carrier program.
Sec. 122. Arleigh Burke class destroyer program.
Sec. 123. Virginia class submarine program.
Sec. 124. Limitation during fiscal year 2001 on changes in submarine 
              force structure.
Sec. 125. ADC(X) ship program.
Sec. 126. Refueling and complex overhaul program of the U.S.S. Dwight 
              D. Eisenhower.
Sec. 127. Analysis of certain shipbuilding programs.
Sec. 128. Helicopter support of FFG-7 frigates during fiscal year 2001.
Sec. 129. V-22 cockpit aircraft voice and flight data recorders.

                     Subtitle D--Air Force Programs

Sec. 131. Annual report on B-2 bomber.
Sec. 132. Report on modernization of Air National Guard F-16A units.

                       Subtitle E--Joint Programs

Sec. 141. Study of final assembly and checkout alternatives for the 
              Joint Strike Fighter program.

                 Subtitle F--Chemical Demilitarization

Sec. 151. Pueblo Chemical Depot chemical agent and munitions 
              destruction technologies.
Sec. 152. Report on assessment of need for Federal economic assistance 
              for communities impacted by chemical demilitarization 
              activities.
Sec. 153. Prohibition against disposal of non-stockpile chemical 
              warfare material at Anniston chemical stockpile disposal 
              facility.
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2001 for procurement for the Army as follows:
       (1) For aircraft, $1,550,012,000.
       (2) For missiles, $1,320,681,000.
       (3) For weapons and tracked combat vehicles, 
     $2,436,324,000.
       (4) For ammunition, $1,179,916,000.
       (5) For other procurement, $4,235,719,000.
       (6) For chemical agents and munitions destruction, 
     $980,100,000, for--
       (A) 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
       (B) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2001 for procurement for the Navy as follows:
       (1) For aircraft, $8,394,338,000.
       (2) For weapons, including missiles and torpedoes, 
     $1,443,600,000.
       (3) For shipbuilding and conversion, $12,826,919,000.
       (4) For other procurement, $3,380,680,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2001 for procurement for the 
     Marine Corps in the amount of $1,212,768,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2001 for 
     procurement of ammunition for the Navy and the Marine Corps 
     in the amount of $487,749,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2001 for procurement for the Air Force as follows:
       (1) For aircraft, $9,923,868,000.
       (2) For missiles, $2,863,778,000.
       (3) For ammunition, $646,808,000.
       (4) For other procurement, $7,711,647,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       (a) Amount Authorized.--Funds are hereby authorized to be 
     appropriated for fiscal year 2001 for Defense-wide 
     procurement in the amount of $2,278,408,000.
       (b) Amount for National Missile Defense.--Of the funds 
     authorized to be appropriated in subsection (a), $74,530,000 
     shall be available for the National Missile Defense program.

     SEC. 105. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2001 for procurement for the Inspector General of the 
     Department of Defense in the amount of $3,300,000.

     SEC. 106. DEFENSE HEALTH PROGRAMS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2001 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 
     $290,006,000.
                       Subtitle B--Army Programs

     SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY.

       (a) M2A3 Bradley Fighting Vehicle.--(1) Beginning with the 
     fiscal year 2001 program year, the Secretary of the Army may, 
     in accordance with section 2306b of title 10, United States 
     Code, enter into one or more multiyear contracts for 
     procurement of M2A3 Bradley fighting vehicles.
       (2) The Secretary of the Army may execute a contract 
     authorized by paragraph (1) only after--
       (A) there is a successful completion of a M2A3 Bradley 
     initial operational test and evaluation (IOT&E); and
       (B) the Secretary certifies in writing to the congressional 
     defense committees that the vehicle met all required test 
     parameters.
       (b) Utility Helicopters.--Beginning with the fiscal year 
     2002 program year, the Secretary of the Army may, in 
     accordance with section 2306b of title 10, United States 
     Code, enter into one or more multiyear contracts for 
     procurement of UH-60 Blackhawk utility helicopters and, 
     acting as executive agent for the Department of the Navy, CH-
     60 Knighthawk utility helicopters.

     SEC. 112. INCREASE IN LIMITATION ON NUMBER OF BUNKER DEFEAT 
                   MUNITIONS THAT MAY BE ACQUIRED.

       Section 116(2) of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2682) is 
     amended by striking ``6,000'' and inserting ``8,500''.

     SEC. 113. REPORTS AND LIMITATIONS RELATING TO ARMY 
                   TRANSFORMATION.

       (a) Secretary of the Army Report on Objective Force 
     Development Process.--The Secretary of the Army shall submit 
     to the congressional defense committees a report on the 
     process for developing the objective force in the 
     transformation of the Army. The report shall include the 
     following:
       (1) The operational environments envisioned for the 
     objective force.
       (2) The threat assumptions on which research and 
     development efforts for transformation of the Army into the 
     objective force are based.
       (3) The potential operational and organizational concepts 
     for the objective force.
       (4) The operational requirements anticipated for the 
     operational requirements document of the objective force.
       (5) The anticipated schedule of Army transformation 
     activities through fiscal year 2012, together with--
       (A) the projected funding requirements through that fiscal 
     year for research and development activities and procurement 
     activities related to transition to the objective force; and
       (B) a summary of the anticipated investments of the Defense 
     Advanced Research Projects Agency in programs designed to 
     lead to the fielding of future combat systems for the 
     objective force.
       (6) A proposed plan for the comparison referred to in 
     subsection (c).

     If any of the information required by paragraphs (1) through 
     (5) is not available at the time the report is submitted, the 
     Secretary shall include in the report the anticipated 
     schedule for the availability of that information.
       (b) Secretary of Defense Report on Objective Force 
     Development Process.--Not later than March 1, 2001, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the process for developing the 
     objective force in the transformation of the Army. The report 
     shall include the following:
       (1) The joint warfighting requirements that will be 
     supported by the fielding of the objective force, together 
     with a description of the adjustments that are planned to be 
     made in the war plans of the commanders of the unified 
     combatant commands in relation to the fielding of the 
     objective force.
       (2) The changes in lift requirements that may result from 
     the establishment and fielding of the combat brigades of the 
     objective force.
       (3) The evaluation process that will be used to support 
     decisionmaking on the course of the Army transformation, 
     including a description of the operational evaluations and 
     experimentation that will be used to validate the operational 
     requirements for the operational requirements document of the 
     objective force.

     If any of the information required by paragraphs (1) through 
     (3) is not available at the time the report is submitted, the 
     Secretary shall include in the report the anticipated 
     schedule for the availability of that information.
       (c) Costs and Effectiveness of Medium Armored Combat 
     Vehicles for the Interim Brigade Combat Teams.--(1) The 
     Secretary of the Army shall develop a plan for comparing--

[[Page 21362]]

       (A) the costs and operational effectiveness of the infantry 
     carrier variant of the interim armored vehicles selected for 
     the infantry battalions of the interim brigade combat teams; 
     and
       (B) the costs and operational effectiveness of the troop-
     carrying medium armored vehicles currently in the Army 
     inventory for the use of infantry battalions.
       (2) The Secretary of the Army may not carry out the 
     comparison described in paragraph (1) until the Director of 
     Operational Test and Evaluation of the Department of Defense 
     approves the plan for that comparison developed under that 
     paragraph.
       (d) Limitation Pending Receipt of Secretary of the Army 
     Report.--Not more than 80 percent of the amount appropriated 
     for fiscal year 2001 for the procurement of armored vehicles 
     in the family of new medium armored vehicles may be obligated 
     until--
       (1) the Secretary of the Army submits to the congressional 
     defense committees the report required under subsection (a); 
     and
       (2) a period of 30 days has elapsed from the date of the 
     submittal of such report.
       (e) Limitation Pending Comparison and Certification.--No 
     funds appropriated or otherwise made available to the 
     Department of the Army for any fiscal year may be obligated 
     for acquisition of medium armored combat vehicles to equip a 
     third interim brigade combat team until--
       (1) the plan for a comparison of costs and operational 
     effectiveness developed under subsection (c)(1), as approved 
     under subsection (c)(2), is carried out;
       (2) the Secretary of Defense submits to the congressional 
     defense committees, after the completion of the comparison 
     referred to in paragraph (1), a certification that--
       (A) the Secretary approves of the obligation of funds for 
     that purpose; and
       (B) the force structure resulting from the acquisition and 
     subsequent operational capability of interim brigade combat 
     teams will not diminish the combat power of the Army; and
       (3) a period of 30 days has elapsed from the date of the 
     certification under paragraph (2).
       (f) Definitions.--In this section:
       (1) The term ``transformation'', with respect to the Army, 
     means the actions being undertaken to transform the Army, as 
     it is constituted in terms of organization, equipment, and 
     doctrine in 2000, into the objective force.
       (2) The term ``objective force'' means the Army that has 
     the organizational structure, the most advanced equipment 
     that early twenty-first century science and technology can 
     provide, and the appropriate doctrine to ensure that the Army 
     is responsive, deployable, agile, versatile, lethal, 
     survivable, and sustainable for the full spectrum of the 
     operations anticipated to be required of the Army during the 
     early years of the twenty-first century following 2010.
       (3) The term ``interim brigade combat team'' means an Army 
     brigade that is designated by the Secretary of the Army as a 
     brigade combat team and is reorganized and equipped with 
     currently available equipment in a configuration that 
     effectuates an evolutionary advancement toward transformation 
     of the Army to the objective force.
                       Subtitle C--Navy Programs

     SEC. 121. CVNX-1 NUCLEAR AIRCRAFT CARRIER PROGRAM.

       (a) Authorization of Ship.--The Secretary of the Navy is 
     authorized to procure the aircraft carrier to be designated 
     CVNX-1.
       (b) Advance Procurement and Construction.--The Secretary 
     may enter into one or more contracts for the advance 
     procurement and advance construction of components for the 
     ship authorized under subsection (a).
       (c) Amount Authorized From SCN Account.--Of the amounts 
     authorized to be appropriated under section 102(a)(3) for 
     fiscal year 2001, $21,869,000 is available for the advance 
     procurement and advance construction of components (including 
     nuclear components) for the CVNX-1 aircraft carrier program.

     SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

       (a) Economical Multiyear Procurement of Previously 
     Authorized Vessels and One Additional Vessel.--(1) Subsection 
     (b) of section 122 of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2446), as 
     amended by section 122(a) of Public Law 106-65 (113 Stat. 
     534), is further amended by striking ``a total of 18 Arleigh 
     Burke class destroyers'' in the first sentence and all that 
     follows through the period at the end of that sentence and 
     inserting ``Arleigh Burke class destroyers in accordance with 
     this subsection and subsection (a)(4) at procurement rates 
     not in excess of three ships in each of the fiscal years 
     beginning after September 30, 1998, and before October 1, 
     2005. The authority under the preceding sentence is subject 
     to the availability of appropriations for such destroyers.''.
       (2) The heading for such subsection is amended by striking 
     ``18''.
       (b) Economical Rate of Procurement.--It is the sense of 
     Congress that, for the procurement of the Arleigh Burke class 
     destroyers to be procured after fiscal year 2001 under 
     multiyear contracts authorized under section 122(b) of Public 
     Law 104-201, as amended by subsection (a)--
       (1) the Secretary of the Navy should--
       (A) achieve the most economical rate of procurement; and
       (B) enter into such contracts for advance procurement as 
     may be necessary to achieve that rate of procurement;
       (2) the most economical rate of procurement would be 
     achieved by procuring three of those vessels in each of 
     fiscal years 2002 and 2003 and procuring another vessel in 
     fiscal year 2004; and
       (3) the Secretary has the authority under section 122(b) of 
     Public Law 104-201 (110 Stat. 2446) and subsections (b) and 
     (c) of section 122 of Public Law 106-65 (113 Stat. 534) to 
     provide for procurement at the most economical rate, as 
     described in paragraph (2).
       (c) Update of 1993 Report on DDG-51 Class Ships.--(1) The 
     Secretary of the Navy shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives, not 
     later than November 1, 2000, a report that updates the 
     information provided in the report of the Secretary of the 
     Navy entitled the ``Arleigh Burke (DDG-51) Class Industrial 
     Base Study of 1993''. The Secretary shall transmit a copy of 
     the updated report to the Comptroller General not later than 
     the date on which the Secretary submits the report to the 
     committees.
       (2) The Comptroller General shall review the updated report 
     submitted under paragraph (1) and, not later than December 1, 
     2000, submit to the Committees on Armed Services of the 
     Senate and House of Representatives the Comptroller General's 
     comments on the updated report.

     SEC. 123. VIRGINIA CLASS SUBMARINE PROGRAM.

       (a) Amounts Authorized From SCN Account.--Of the amounts 
     authorized to be appropriated by section 102(a)(3) for fiscal 
     year 2001, $1,706,234,000 is available for the Virginia class 
     submarine program.
       (b) Contract Authority.--(1) The Secretary of the Navy is 
     authorized to enter into a contract for the procurement of up 
     to five Virginia class submarines, including the procurement 
     of material in economic order quantities when cost savings 
     are achievable, during fiscal years 2003 through 2006. The 
     submarines authorized under the preceding sentence are in 
     addition to the submarines authorized under section 121(b) of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1648).
       (2) A contract entered into under paragraph (1) shall 
     provide that any obligation of the United States to make a 
     payment under the contract is subject to the availability of 
     appropriations for that purpose.
       (c) Shipbuilder Teaming.--Paragraphs (2)(A), (3), and (4) 
     of section 121(b) of Public Law 105-85 apply to the 
     procurement of submarines under this section.
       (d) Limitation of Liability.--If a contract entered into 
     under this section is terminated, the United States shall not 
     be liable for termination costs in excess of the total of the 
     amounts appropriated for the Virginia class submarine program 
     that remain available for the program.
       (e) Report Requirement.--At that same time that the 
     President submits the budget for fiscal year 2002 to Congress 
     under section 1105(a) of title 31, United States Code, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the Navy's fleet of fast 
     attack submarines. The report shall include the following:
       (1) A plan for maintaining at least 55 fast attack 
     submarines in commissioned service through 2015, including, 
     by 2015, 18 Virginia class submarines.
       (2) Two assessments of the potential savings that would be 
     achieved under the Virginia class submarine program if the 
     production rate for that program were at least two submarines 
     each fiscal year, as follows:
       (A) An assessment if that were the production rate 
     beginning in fiscal year 2004.
       (B) An assessment if that were the production rate 
     beginning in fiscal year 2006.
       (3) An analysis of the advantages and disadvantages of 
     various contracting strategies for the Virginia class 
     submarine program, including one or more multiyear 
     procurement strategies and one or more strategies for block 
     buy with economic order quantity.

     SEC. 124. LIMITATION DURING FISCAL YEAR 2001 ON CHANGES IN 
                   SUBMARINE FORCE STRUCTURE.

       (a) Limitation on Retirement of Submarines.--During fiscal 
     year 2001, the Secretary of the Navy may not retire from the 
     active force structure of the Navy any Los Angeles class 
     nuclear-powered attack submarine or any Ohio class nuclear-
     powered ballistic missile submarine unless the Secretary of 
     the Navy certifies to Congress in writing that he cannot 
     assure the continued safe and militarily effective operation 
     of that submarine.
       (b) Report.--Not later than April 15, 2001, the President 
     shall submit to Congress a report on the required force 
     structure for nuclear-powered submarines, including attack 
     submarines (SSNs), ballistic missile submarines (SSBNs), and 
     cruise missile submarines (SSGNs), to support the national 
     military strategy through 2020. The report shall include a 
     detailed discussion of the acquisition strategy and fleet 
     maintenance requirements to achieve and maintain that force 
     structure through--
       (1) the procurement of new construction submarines;
       (2) the refueling of Los Angeles class attack submarines 
     (SSNs) to achieve the maximum amount of operational useful 
     service; and
       (3) the conversion of Ohio class submarines that are no 
     longer required for the strategic deterrence mission from 
     their current ballistic missile (SSBN) configuration to a 
     cruise-missile (SSGN) configuration.

     SEC. 125. ADC(X) SHIP PROGRAM.

       The Secretary of the Navy may procure the construction of 
     all ADC(X) class ships in one shipyard if the Secretary 
     determines that it is more cost effective to do so than to 
     procure the

[[Page 21363]]

     construction of such ships from more than one shipyard.

     SEC. 126. REFUELING AND COMPLEX OVERHAUL PROGRAM OF THE 
                   U.S.S. DWIGHT D. EISENHOWER.

       (a) Amount Authorized From SCN Account.--Of the amount 
     authorized to be appropriated by section 102(a)(3) for fiscal 
     year 2001, $698,441,000 is available for the commencement of 
     the nuclear refueling and complex overhaul of the U.S.S. 
     Dwight D. Eisenhower (CVN-69) during fiscal year 2001. The 
     amount made available in the preceding sentence is the first 
     increment in the incremental funding planned for the nuclear 
     refueling and complex overhaul of that vessel.
       (b) Contract Authority.--The Secretary of the Navy is 
     authorized to enter into a contract during fiscal year 2001 
     for the nuclear refueling and complex overhaul of the U.S.S. 
     Dwight D. Eisenhower.
       (c) Condition for Out-Year Contract Payments.--A contract 
     entered into under subsection (b) shall provide that any 
     obligation of the United States to make a payment under the 
     contract for a fiscal year after fiscal year 2001 is subject 
     to the availability of appropriations for that purpose for 
     that later fiscal year.

     SEC. 127. ANALYSIS OF CERTAIN SHIPBUILDING PROGRAMS.

       (a) Alternative Funding Analysis.--The Secretary of the 
     Navy shall conduct an analysis on the potential benefits and 
     risks associated with alternative funding mechanisms for the 
     procurement of various classes of naval vessels and other 
     naval capabilities beginning in fiscal year 2002.
       (b) Alternative Funding Mechanisms.--For purposes of this 
     section, the term ``alternative funding mechanism'' means any 
     of the following:
       (1) The use of multiyear procurement.
       (2) The use of advance procurement for block buys of 
     materials in economic order quantities.
       (3) The use of advance procurement and advance construction 
     required in the number of years appropriate to minimize the 
     cost of ship construction.
       (4) The use of advance procurement and advance construction 
     apportioned roughly evenly across some number of fiscal 
     years.
       (5) The use of resources from the National Defense Sealift 
     Fund to budget for auxiliary ships and strategic lift ships.
       (6) The use of the resources from the National Defense 
     Sealift Fund to provide advance payments for national defense 
     features to establish an active Ready Reserve Force.
       (c) Report.--The Secretary shall submit to the 
     congressional defense committees a report providing the 
     results of the analysis under subsection (a). The report 
     shall be submitted concurrently with the submission of the 
     President's budget for fiscal year 2002, but in no event 
     later than February 5, 2001. The report shall include the 
     following:
       (1) A detailed description of the funding mechanisms 
     considered.
       (2) The potential savings or costs associated with each 
     such funding mechanism.
       (3) The year-to-year effect of each such funding mechanism 
     on production stability of other shipbuilding programs funded 
     within the Shipbuilding and Conversion, Navy, account, given 
     the current acquisition plan of the Navy through fiscal year 
     2010.
       (4) The variables and constants used in the analysis which 
     should include economic, industrial base, and budget 
     realities.
       (5) A description and discussion of any statutory or 
     regulatory restrictions that would preclude the use of any of 
     the funding mechanisms considered.

     SEC. 128. HELICOPTER SUPPORT OF FFG-7 FRIGATES DURING FISCAL 
                   YEAR 2001.

       During fiscal year 2001, the Secretary of the Navy shall 
     operate one squadron of six SH-2G helicopters to provide 
     organic helicopter assets for operational support of missions 
     that are to be carried out by FFG-7 Flight I and Flight II 
     frigates during that fiscal year.

     SEC. 129. V-22 COCKPIT AIRCRAFT VOICE AND FLIGHT DATA 
                   RECORDERS.

       The Secretary of Defense shall require that all V-22 Osprey 
     aircraft be equipped with a state-of-the-art cockpit voice 
     recorder and a state-of-the-art flight data recorder each of 
     which meets, at a minimum, the standards for such devices 
     recommended by the National Transportation Safety Board.
                     Subtitle D--Air Force Programs

     SEC. 131. ANNUAL REPORT ON B-2 BOMBER.

       (a) In General.--(1) Chapter 136 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2282. B-2 bomber: annual report

       ``Not later than March 1 of each year, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report on the B-2 bomber aircraft. Each 
     such report shall include the following:
       ``(1) Identification of the average full-mission capable 
     rate of B-2 aircraft for the preceding fiscal year and the 
     Secretary's overall assessment of the implications of that 
     full-mission capable rate on mission accomplishment for the 
     B-2 aircraft, together with the Secretary's determination as 
     to whether that rate is adequate for the accomplishment of 
     each of the missions assigned to the B-2 aircraft as of the 
     date of the assessment.
       ``(2) An assessment of the technical capabilities of the B-
     2 aircraft and whether these capabilities are adequate to 
     accomplish each of the missions assigned to that aircraft as 
     of the date of the assessment.
       ``(3) Identification of all ongoing and planned development 
     of technologies to enhance the capabilities of that aircraft.
       ``(4) Identification and assessment of additional 
     technologies that would make that aircraft more capable or 
     survivable against known and evolving threats.
       ``(5) A fiscally phased program for each technology 
     identified in paragraphs (3) and (4) for the budget year and 
     the future-years defense program, based on the following 
     three funding situations:
       ``(A) The President's current budget.
       ``(B) The President's current budget and the current 
     Department of Defense unfunded priority list.
       ``(C) The maximum executable funding for the B-2 aircraft 
     given the requirement to maintain enough operationally ready 
     aircraft to accomplish missions assigned to the B-2 
     aircraft.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2282. B-2 bomber: annual report.''.
       (b) Repeal of Superseded Reporting Requirement.--Section 
     112 of the National Defense Authorization Act for Fiscal 
     Years 1990 and 1991 (Public Law 101-189) is repealed.

     SEC. 132. REPORT ON MODERNIZATION OF AIR NATIONAL GUARD F-16A 
                   UNITS.

       The Secretary of the Air Force shall, not later than 
     February 1, 2001, submit to Congress a plan to modernize and 
     upgrade the combat capabilities of those Air National Guard 
     units that, as of the date of the enactment of this Act, are 
     assigned F-16A aircraft so that those units can be deployed 
     as part of Air Expeditionary Forces.
                       Subtitle E--Joint Programs

     SEC. 141. STUDY OF FINAL ASSEMBLY AND CHECKOUT ALTERNATIVES 
                   FOR THE JOINT STRIKE FIGHTER PROGRAM.

       (a) Report Required.--Not later than 180 days after the 
     date of the award of a contract for engineering and 
     manufacturing development for the Joint Strike Fighter 
     aircraft program, the Secretary of Defense shall submit to 
     Congress a report providing the results of a study of final 
     assembly and checkout alternatives for that aircraft.
       (b) Matters To Be Included.--The report under subsection 
     (a) shall include the following:
       (1) Examination of alternative final assembly and checkout 
     strategies for the program, including--
       (A) final assembly and checkout of all aircraft under the 
     program at one location;
       (B) final assembly and checkout at dual locations; and
       (C) final assembly and checkout at multiple locations.
       (2) Identification of each Government and industry facility 
     that is a potential location for such final assembly and 
     checkout.
       (3) Identification of the anticipated costs of final 
     assembly and checkout at each facility identified pursuant to 
     paragraph (2), based upon a reasonable profile for the annual 
     procurement of that aircraft once it enters production.
       (4) A comparison of the anticipated costs of carrying out 
     such final assembly and checkout at each such location.
       (c) Cost Comparison.--In identifying costs under subsection 
     (b)(3) and carrying out the cost comparisons required by 
     subsection (b)(4), the Secretary shall include consideration 
     of each of the following factors:
       (1) State tax credits.
       (2) State and local incentives.
       (3) Skilled resident workforce.
       (4) Supplier and technical support bases.
       (5) Available stealth production facilities.
       (6) Environmental standards.
                 Subtitle F--Chemical Demilitarization

     SEC. 151. PUEBLO CHEMICAL DEPOT CHEMICAL AGENT AND MUNITIONS 
                   DESTRUCTION TECHNOLOGIES.

       (a) Limitation.--In determining the technologies to be used 
     for the destruction of the stockpile of lethal chemical 
     agents and munitions at Pueblo Chemical Depot, Colorado, 
     whether under the assessment required by section 141(a) of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 537; 50 U.S.C. 1521 note), the 
     Assembled Chemical Weapons Assessment, or any other 
     assessment, the Secretary of Defense may consider only the 
     following technologies:
       (1) Incineration.
       (2) Any technologies demonstrated under the Assembled 
     Chemical Weapons Assessment on or before May 1, 2000.
       (b) Assembled Chemical Weapons Assessment Defined.--As used 
     in subsection (a), the term ``Assembled Chemical Weapons 
     Assessment'' means the pilot program carried out under 
     section 8065 of the Department of Defense Appropriations Act, 
     1997 (as contained in section 101(b) of Public Law 104-208; 
     110 Stat. 3009-101; 50 U.S.C. 1521 note).

     SEC. 152. REPORT ON ASSESSMENT OF NEED FOR FEDERAL ECONOMIC 
                   ASSISTANCE FOR COMMUNITIES IMPACTED BY CHEMICAL 
                   DEMILITARIZATION ACTIVITIES.

       (a) Report Required.--Not later than April 1, 2001, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and of the House of Representatives a 
     report on the impact of the Department of Defense chemical 
     agents and munitions destruction program

[[Page 21364]]

     on the communities in the vicinity of the chemical weapons 
     stockpile storage sites and associated chemical agent 
     demilitarization activities at the following facilities:
       (1) Anniston Chemical Activity, Alabama.
       (2) Blue Grass Chemical Activity, Kentucky.
       (3) Deseret Chemical Depot, Utah.
       (4) Edgewood Chemical Activity, Maryland.
       (5) Newport Chemical Activity, Indiana.
       (6) Pine Bluff Chemical Activity, Arkansas.
       (7) Pueblo Chemical Activity, Colorado.
       (8) Umatilla Chemical Depot, Oregon.
       (b) Recommendation.--The Secretary shall include in the 
     report a recommendation regarding whether Federal economic 
     assistance for any or all of those communities to assist in 
     meeting the impact of that program is needed and appropriate. 
     If the Secretary's recommendation is that such economic 
     assistance is needed and appropriate for any or all of such 
     communities, the Secretary shall include in the report 
     criteria for determining the amount of such economic 
     assistance.
       (c) Matters To Be Considered in Assessing Impact.--In 
     assessing the impact of the program referred to in subsection 
     (a) for purposes of preparing the report required by that 
     subsection and the recommendation required by subsection (b), 
     the Secretary shall consider the following:
       (1) The impact that any change in population as a result of 
     chemical agent demilitarization activities would have on the 
     community.
       (2) The possible temporary nature of such a change in 
     population and the long-range financial impact of such a 
     change in population on the permanent residents of the 
     community.
       (3) The initial capitalization required for the services, 
     facilities, or infrastructure to support any increase in 
     population.
       (4) The operating costs for sustaining or upgrading the 
     services, facilities, or infrastructure to support any 
     increase in population.
       (5) The costs incurred by local government entities for 
     improvements to emergency evacuation routes required by the 
     chemical demilitarization activities.
       (6) Such other factors as the Secretary considers 
     appropriate.

     SEC. 153. PROHIBITION AGAINST DISPOSAL OF NON-STOCKPILE 
                   CHEMICAL WARFARE MATERIAL AT ANNISTON CHEMICAL 
                   STOCKPILE DISPOSAL FACILITY.

       No funds authorized to be made available under this or any 
     other Act may be used to facilitate the disposal using the 
     chemical stockpile disposal facility at Anniston, Alabama, of 
     any non-stockpile chemical warfare material that is not 
     stored (as of the date of the enactment of this Act) at the 
     Anniston Army Depot.
         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. Management of Space-Based Infrared System--Low.
       Sec. 212. Joint Strike Fighter program.
       Sec. 213. Fiscal year 2002 joint field experiment.
       Sec. 214. Nuclear aircraft carrier design and production 
           modeling.
       Sec. 215. DD-21 class destroyer program.
       Sec. 216. Limitation on Russian American Observation 
           Satellites program.
       Sec. 217. Joint biological defense program.
       Sec. 218. Report on biological warfare defense vaccine 
           research and development programs.
       Sec. 219. Cost limitations applicable to F-22 aircraft 
           program.
       Sec. 220. Unmanned advanced capability combat aircraft and 
           ground combat vehicles.
       Sec. 221. Global Hawk high altitude endurance unmanned 
           aerial vehicle.
       Sec. 222. Army space control technology development.

                 Subtitle C--Ballistic Missile Defense

       Sec. 231. Funding for fiscal year 2001.
       Sec. 232. Reports on ballistic missile threat posed by 
           North Korea.
       Sec. 233. Plan to modify ballistic missile defense 
           architecture.
       Sec. 234. Management of Airborne Laser program.

                 Subtitle D--High Energy Laser Programs

       Sec. 241. Funding.
       Sec. 242. Implementation of High Energy Laser Master Plan.
       Sec. 243. Designation of senior official for high energy 
           laser programs.
       Sec. 244. Site for Joint Technology Office.
       Sec. 245. High energy laser infrastructure improvements.
       Sec. 246. Cooperative programs and activities.
       Sec. 247. Technology plan.
       Sec. 248. Annual report.
       Sec. 249. Definition.
       Sec. 250. Review of Defense-wide directed energy programs.

                       Subtitle E--Other Matters

       Sec. 251. Reports on mobile offshore base concept and 
           potential use for certain purposes of technologies 
           associated with that concept.
       Sec. 252. Air Force science and technology planning.
       Sec. 253. Enhancement of authorities regarding education 
           partnerships for purposes of encouraging scientific 
           study.
       Sec. 254. Recognition of those individuals instrumental to 
           naval research efforts during the period from before 
           World War II through the end of the Cold War.
              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2001 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $5,568,482,000.
       (2) For the Navy, $8,715,335,000.
       (3) For the Air Force, $13,779,144,000.
       (4) For Defense-wide activities, $10,873,712,000, of which 
     $192,060,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

       (a) Fiscal Year 2001.--Of the amounts authorized to be 
     appropriated by section 201, $4,557,188,000 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. MANAGEMENT OF SPACE-BASED INFRARED SYSTEM--LOW.

       Not later than October 1, 2001, the Secretary of Defense 
     shall direct that the Director of the Ballistic Missile 
     Defense Organization shall have authority for program 
     management for the ballistic missile defense program known on 
     the date of the enactment of this Act as the Space-Based 
     Infrared System--Low.

     SEC. 212. JOINT STRIKE FIGHTER PROGRAM.

       (a) Report.--Not later than December 15, 2000, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the Joint Strike Fighter 
     aircraft program describing the criteria for exit of the 
     program from the demonstration and validation phase, and 
     entry of the program into the engineering and manufacturing 
     development phase, of the acquisition process.
       (b) Certification.--The Joint Strike Fighter program may 
     not be approved for entry into the engineering and 
     manufacturing development phase of the acquisition process 
     until the Secretary of Defense certifies to the congressional 
     defense committees that--
       (1) the exit criteria established in the report submitted 
     under subsection (a) have been accomplished;
       (2) the technological maturity of key technologies for the 
     program is sufficient to warrant entry of the program into 
     the engineering and manufacturing development phase; and
       (3) the short take-off, vertical-landing aircraft variant 
     selected for engineering and manufacturing development has 
     successfully flown at least 20 hours.
       (c) Transfers Within the Joint Strike Fighter Navy and Air 
     Force Accounts.--(1) The Secretary of Defense may, subject to 
     established congressional notification and reprogramming 
     procedures, transfer within the Joint Strike Fighter program 
     the following amounts:
       (A) Of the funds authorized to be appropriated for PE 
     64800N, up to $100,000,000 to PE 63800N.
       (B) Of the funds authorized to be appropriated for PE 
     64800F, up to $100,000,000 to PE 63800F.
       (2) The transfer authority authorized in paragraph (1) is 
     in addition to the transfer authority provided in section 
     1001.

     SEC. 213. FISCAL YEAR 2002 JOINT FIELD EXPERIMENT.

       (a) Requirements.--The Secretary of Defense shall carry out 
     a joint field experiment in fiscal year 2002. The Secretary 
     shall ensure that the planning for the joint field experiment 
     is carried out in fiscal year 2001.
       (b) Purpose.--The purpose of the joint field experiment is 
     to explore critical war fighting challenges at the 
     operational level of war that will confront United States 
     joint military forces after 2010.
       (c) Participating Forces.--(1) The joint field experiment 
     shall involve elements of the Army, Navy, Marine Corps, and 
     Air Force, and shall include special operations forces.
       (2) The forces designated to participate in the joint field 
     experiment shall exemplify the concepts for organization, 
     equipment, and doctrine that are conceived for the forces 
     after 2010 under Joint Vision 2010 and Joint Vision 2020 
     (issued by the Joint Chiefs of Staff) and the current vision 
     statements of the Chief of Staff of the Army, the Chief of 
     Naval Operations, the Commandant of the Marine Corps, and the 
     Chief of Staff of the Air Force, including the following 
     concepts:
       (A) Army medium weight brigades.
       (B) Navy Forward-From-The-Sea.
       (C) Air Force expeditionary aerospace forces.
       (d) Report.--Not later than March 1, 2001, the Secretary 
     shall submit to the congressional defense committees a report 
     on the concept plan for the joint field experiment required 
     under subsection (a). The report shall include the following:
       (1) The objectives of the experiment.
       (2) The forces participating in the experiment.
       (3) The schedule and location of the experiment.

[[Page 21365]]

       (4) For each joint command, defense agency, and service 
     component participating in the experiment, an identification 
     of--
       (A) the funding required for the experiment by that 
     command, agency, or component; and
       (B) any shortfall in the budget request for the Department 
     of Defense for fiscal year 2002 for that funding for that 
     command, agency, or component.

     SEC. 214. NUCLEAR AIRCRAFT CARRIER DESIGN AND PRODUCTION 
                   MODELING.

       (a) Assessment Required.--The Secretary of the Navy shall 
     conduct an assessment of the cost-effectiveness of--
       (1) converting design data for the Nimitz-class aircraft 
     carrier from non-electronic to electronic form; and
       (2) developing an electronic, three-dimensional design 
     product model for the CVNX class aircraft carrier.
       (b) Conduct of the Assessment.--The Secretary of the Navy 
     shall carry out the assessment in a manner that ensures the 
     participation of the nuclear aircraft carrier shipbuilding 
     industry.
       (c) Report.--The Secretary of the Navy shall submit a 
     report to the congressional defense committees on the 
     assessment. The report shall include the results of the 
     assessment and plans and funding requirements for developing 
     the model specified in subsection (a)(2). The report shall be 
     submitted with the submission of the budget request for the 
     Department of Defense for fiscal year 2002.
       (d) Funding.--Of the amount authorized to be appropriated 
     under section 201(2) for research, development, test, and 
     evaluation for the Navy, $8,000,000 shall be available to 
     initiate the conversion and development of nuclear aircraft 
     carrier design data into an electronic, three-dimensional 
     product model.

     SEC. 215. DD-21 CLASS DESTROYER PROGRAM.

       (a) Authority.--The Secretary of the Navy is authorized to 
     pursue a technology insertion approach for the construction 
     of the DD-21 destroyer that is based on the assumption of the 
     following schedule:
       (1) Award of a contract for advance procurement for 
     construction of components for the DD-21 destroyer during 
     fiscal year 2004.
       (2) Delivery of the completed ship during fiscal year 2009.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) there are compelling reasons for starting the program 
     for constructing the DD-21 destroyer during fiscal year 2004 
     with available procurement funds and continuing with 
     sequential construction of DD-21 class destroyers during the 
     ensuing fiscal years until 32 DD-21 class destroyers have 
     been constructed; and
       (2) the Secretary of the Navy, in providing for the 
     acquisition of DD-21 class destroyers, should consider that--
       (A) the Marine Corps needs the surface fire-support 
     capabilities of the DD-21 class destroyers as soon as 
     possible in order to mitigate the inadequacies of the surface 
     fire-support capabilities that are currently available;
       (B) the Navy and Marine Corps need to resolve whether there 
     is a requirement for surface fire-support missile weapon 
     systems to be easily sustainable by means of replenishment 
     while under way;
       (C) the technology insertion approach has been successful 
     for other ship construction programs and is being pursued for 
     the CVNX aircraft carrier program and the Virginia class 
     submarine program;
       (D) the establishment of a stable configuration for the 
     first 10 DD-21 class destroyers should enable the 
     construction of those ships with the greatest capabilities at 
     the lowest cost; and
       (E) action to acquire DD-21 class destroyers should be 
     taken as soon as possible in order to realize fully the cost 
     savings that can be derived from the construction and 
     operation of DD-21 class destroyers, including--
       (i) savings in construction costs that would result from 
     achievement of the Navy's target per-ship cost of 
     $750,000,000 by the fifth ship constructed in each 
     construction yard;
       (ii) savings that would result from the estimated reduction 
     of the crews of destroyers by 200 or more personnel for each 
     ship; and
       (iii) savings that would result from a reduction in the 
     operating costs for destroyers by an estimated 70 percent.
       (c) Navy Plan for Use of Technology Insertion Approach for 
     Construction of the DD-21 Ship.--The Secretary of the Navy 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives, not later than April 
     18, 2001, a plan for pursuing a technology insertion approach 
     for the construction of the DD-21 destroyer as authorized 
     under subsection (a). The plan shall include estimates of the 
     resources necessary to carry out the plan.
       (d) Report on Acquisition and Maintenance Plan for DD-21 
     Class Ships.--The Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives, not later than April 18, 2001, a report on 
     the Navy's plan for the acquisition and maintenance of DD-21 
     class destroyers. The report shall include a discussion of 
     each of the following matters:
       (1) The technical feasibility of contracting for, and 
     commencing construction of, the first destroyer in that class 
     during fiscal year 2004 and achieving delivery of the 
     completed ship during fiscal year 2009.
       (2) An analysis of alternative contracting strategies for 
     the construction of the first 10 destroyers in that class, 
     including one or more multiyear procurement strategies and 
     one or more strategies for block buy in economic order 
     quantity.
       (3) A comparison of the effects on the destroyer industrial 
     base and on costs to other Navy shipbuilding programs of the 
     following two options:
       (A) Commencing construction of the first destroyer in that 
     class during fiscal year 2004, with delivery of the completed 
     ship during fiscal year 2009, and delaying commencement of 
     construction of the next destroyer in that class until fiscal 
     year 2006.
       (B) Commencing construction of the first destroyer in that 
     class during fiscal year 2005 (rather than fiscal year 2004), 
     with advance procurement during fiscal year 2004 and delivery 
     of the completed ship during fiscal year 2010, and delaying 
     commencement of construction of the next destroyer in that 
     class until fiscal year 2007 (rather than fiscal year 2006).
       (4) The effects on the fleet maintenance strategies of Navy 
     fleet commanders, on commercial maintenance facilities in 
     fleet concentration areas, and on the administration of funds 
     in compliance with section 2466 of title 10, United States 
     Code, of awarding to a contractor for the construction of a 
     destroyer in that class all maintenance workloads for 
     destroyers in that class that are below depot-level 
     maintenance and above ship-level maintenance.

     SEC. 216. LIMITATION ON RUSSIAN AMERICAN OBSERVATION 
                   SATELLITES PROGRAM.

       None of the funds authorized to be appropriated under 
     section 201(4) for the Russian American Observation 
     Satellites program may be obligated or expended until 30 days 
     after the Secretary of Defense submits to Congress a report 
     explaining how the Secretary plans to protect United States 
     advanced military technology that may be associated with the 
     Russian American Observation Satellites program.

     SEC. 217. JOINT BIOLOGICAL DEFENSE PROGRAM.

       (a) Limitation.--Subject to subsection (c), funds 
     authorized to be appropriated by this Act may not be 
     obligated for the procurement of a vaccine for the biological 
     agent anthrax until the Secretary of Defense has submitted to 
     the congressional defense committees each of the following:
       (1) A written notification that the Food and Drug 
     Administration has approved the current manufacturer for 
     production of the vaccine.
       (2) A report on the contingencies associated with 
     continuing to rely on the current manufacturer to supply the 
     vaccine.
       (b) Content of Report.--The report required under 
     subsection (a)(2) shall include each of the following:
       (1) Recommended strategies to mitigate the risk to the 
     Department of Defense of losing the current manufacturer as a 
     source of anthrax vaccine, together with a discussion of the 
     criteria to be applied in determining whether to carry out 
     any of the strategies and which strategy to carry out.
       (2) Recommended strategies to ensure that the Department of 
     Defense can procure, from one or more sources other than the 
     current manufacturer, an anthrax vaccine approved by the Food 
     and Drug Administration that meets the requirements of the 
     Department if--
       (A) the Food and Drug Administration does not approve the 
     release of the anthrax vaccine available from the current 
     manufacturer; or
       (B) the current manufacturer terminates the production of 
     anthrax vaccine permanently.
       (3) A five-year budget to support each strategy recommended 
     under paragraph (1) or (2).
       (c) Permissible Obligations.--(1) This section does not 
     limit the obligation of funds for any of the following 
     purposes:
       (A) The support of any action that is necessary for the 
     current manufacturer to comply with standards of the Food and 
     Drug Administration (including those purposes necessary to 
     obtain or maintain a biological license application) 
     applicable to anthrax vaccine.
       (B) Establishing an additional source (other than or in 
     conjunction with the current manufacturer) for the production 
     of anthrax vaccine.
       (C) Any action that the Secretary determines necessary to 
     ensure production of anthrax vaccine for meeting an urgent 
     and immediate national defense requirement.
       (2) Not later than seven days after the total amount of the 
     funds obligated (or obligated and expended) for purposes 
     specified in paragraph (1) exceeds $5,000,000, the Secretary 
     shall submit to Congress a notification that the total 
     obligations exceed that amount, together with a written 
     justification for the obligation of funds in excess of that 
     amount.
       (d) Current Manufacturer.--In this section, the term 
     ``current manufacturer'' means the manufacturing source from 
     which the Department of Defense is procuring anthrax vaccine 
     as of the date of the enactment of this Act.

     SEC. 218. REPORT ON BIOLOGICAL WARFARE DEFENSE VACCINE 
                   RESEARCH AND DEVELOPMENT PROGRAMS.

       (a) Report Required.--Not later than February 1, 2001, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the acquisition of biological 
     warfare defense vaccines for the Department of Defense.
       (b) Contents.--The report shall include the following:
       (1) The Secretary's evaluation of the implications of 
     reliance on the commercial sector to meet the requirements of 
     the Department of Defense for biological warfare defense 
     vaccines.
       (2) A design for a government-owned, contractor-operated 
     facility for the production of biological warfare defense 
     vaccines that meets the requirements of the Department for 
     such vaccines, and the assumptions on which that design is 
     based.
       (3) A preliminary cost estimate of, and schedule for, 
     establishing and bringing into operation

[[Page 21366]]

     such a facility, and the estimated annual cost of operating 
     such a facility thereafter.
       (4) A determination, developed in consultation with the 
     Surgeon General, of the utility of such a facility to support 
     the production of vaccines for the civilian sector, and a 
     discussion of the effects that the use of such a facility for 
     that purpose might have on--
       (A) the production of vaccines for the Armed Forces; and
       (B) the annual cost of operating such a facility.
       (5) An analysis of the effects that international 
     requirements for vaccines, and the production of vaccines in 
     response to those requirements, might have on--
       (A) the production of vaccines for the Armed Forces; and
       (B) the annual cost of operating such a facility.
       (c) Biological Warfare Defense Vaccine Defined.--In this 
     section, the term ``biological warfare defense vaccine'' 
     means a vaccine useful for the immunization of military 
     personnel to protect against biological agents on the 
     Validated Threat List issued by the Joint Chiefs of Staff, 
     whether such vaccine is in production or is being developed.

     SEC. 219. COST LIMITATIONS APPLICABLE TO F-22 AIRCRAFT 
                   PROGRAM.

       (a) Flexibility in Engineering and Manufacturing 
     Development Cost Cap.--Section 217(c) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 1660) is amended by adding at the end the following 
     new paragraph:
       ``(3) With respect to the limitation in subsection (a), an 
     increase by an amount that does not exceed 1\1/2\ percent of 
     the total amount of that limitation (taking into account the 
     increases and decreases, if any, under paragraphs (1) and 
     (2)) if the Director of Operational Test and Evaluation, 
     after consulting with the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, determines that the 
     increase is necessary in order to ensure adequate testing.''.
       (b) Reestablishment of Separate Engineering and 
     Manufacturing Development Cost Cap and Production Cost Cap.--
     The provisions of subsections (a) and (b) of section 217 of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1660) shall continue to apply 
     with respect to amounts obligated and expended for 
     engineering and manufacturing development, and for 
     production, respectively, for the F-22 aircraft program 
     without regard to any provision of law establishing a single 
     limitation on amounts obligated and expended for engineering 
     and manufacturing development and for production for that 
     program.

     SEC. 220. UNMANNED ADVANCED CAPABILITY COMBAT AIRCRAFT AND 
                   GROUND COMBAT VEHICLES.

       (a) Goal.--It shall be a goal of the Armed Forces to 
     achieve the fielding of unmanned, remotely controlled 
     technology such that--
       (1) by 2010, one-third of the aircraft in the operational 
     deep strike force aircraft fleet are unmanned; and
       (2) by 2015, one-third of the operational ground combat 
     vehicles are unmanned.
       (b) Report on Unmanned Advanced Capability Combat Aircraft 
     and Ground Combat Vehicles.--(1) Not later than January 31, 
     2001, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the programs to 
     demonstrate unmanned advanced capability combat aircraft and 
     ground combat vehicles undertaken jointly between the 
     Director of the Defense Advanced Research Projects Agency and 
     any of the following:
       (A) The Secretary of the Army.
       (B) The Secretary of the Navy.
       (C) The Secretary of the Air Force.
       (2) The report shall include, for each program referred to 
     in paragraph (1), the following:
       (A) A schedule for the demonstration to be carried out 
     under that program.
       (B) An identification of the funding required for fiscal 
     year 2002 and for the future-years defense program to carry 
     out that program and for the demonstration to be carried out 
     under that program.
       (C) In the case of the program relating to the Army, the 
     plan for modification of the existing memorandum of agreement 
     with the Defense Advanced Research Projects Agency for 
     demonstration and development of the Future Combat System to 
     reflect an increase in unmanned, remotely controlled enabling 
     technologies.
       (3) The report shall also include, for each Secretary 
     referred to in paragraphs (1)(A), (1)(B), and (1)(C), a 
     description and assessment of the acquisition strategy for 
     unmanned advanced capability combat aircraft and ground 
     combat vehicles planned by that Secretary, which shall 
     include a detailed estimate of all research and development, 
     procurement, operation, support, ownership, and other costs 
     required to carry out such strategy through the year 2030, 
     and--
       (A) in the case of the acquisition strategy relating to the 
     Army, the transition from the planned acquisition strategy 
     for the Future Combat System to an acquisition strategy 
     capable of meeting the goal specified in subsection (a)(2);
       (B) in the case of the acquisition strategy relating to the 
     Navy--
       (i) the plan to implement a program that examines the 
     ongoing Air Force unmanned combat air vehicle program and 
     identifies an approach to develop a Navy unmanned combat air 
     vehicle program that has the goal of developing an aircraft 
     that is suitable for aircraft carrier use and has maximum 
     commonality with the aircraft under the Air Force program; 
     and
       (ii) an analysis of alternatives between the operational 
     deep strike force aircraft fleet and that fleet together with 
     an additional 10 to 20 unmanned advanced capability combat 
     aircraft that are suitable for aircraft carrier use and 
     capable of penetrating fully operational enemy air defense 
     systems; and
       (C) in the case of the acquisition strategy relating to the 
     Air Force--
       (i) the schedule for evaluation of demonstration results 
     for the ongoing unmanned combat air vehicle program and the 
     earliest possible transition of that program into engineering 
     and manufacturing development and procurement; and
       (ii) an analysis of alternatives between the currently 
     planned deep strike force aircraft fleet and the operational 
     deep strike force aircraft fleet that could be acquired by 
     fiscal year 2010 to meet the goal specified in subsection 
     (a)(1).
       (c) Funds.--Of the amount authorized to be appropriated for 
     Defense-wide activities under section 201(4) for the Defense 
     Advanced Research Projects Agency, $100,000,000 shall be 
     available only to carry out the programs referred to in 
     subsection (b)(1).
       (d) Definitions.--For purposes of this section:
       (1) An aircraft or ground combat vehicle has ``unmanned 
     advanced capability'' if it is an autonomous, semi-
     autonomous, or remotely controlled system that can be 
     deployed, re-tasked, recovered, and re-deployed.
       (2) The term ``currently planned deep strike force aircraft 
     fleet'' means the early entry, deep strike aircraft fleet 
     (composed of F-117 stealth aircraft and B-2 stealth aircraft) 
     that is currently planned for fiscal year 2010.
       (3) The term ``operational deep strike force aircraft 
     fleet'' means the currently planned deep strike force 
     aircraft fleet, together with at least 30 unmanned advanced 
     capability combat aircraft that are capable of penetrating 
     fully operational enemy air defense systems.
       (4) The term ``operational ground combat vehicles'' means 
     ground combat vehicles acquired through the Future Combat 
     System acquisition program of the Army to equip the future 
     objective force, as outlined in the vision statement of the 
     Chief of Staff of the Army.

     SEC. 221. GLOBAL HAWK HIGH ALTITUDE ENDURANCE UNMANNED AERIAL 
                   VEHICLE.

       (a) Concept Demonstration Required.--The Secretary of 
     Defense shall require and coordinate a concept demonstration 
     of the Global Hawk high altitude endurance unmanned aerial 
     vehicle.
       (b) Purpose of Demonstration.--The purpose of the concept 
     demonstration is to demonstrate the capability of the Global 
     Hawk high altitude endurance unmanned aerial vehicle to 
     operate in an airborne surveillance mode, using available, 
     non-developmental technology.
       (c) Time for Demonstration.--The Secretary shall initiate 
     the demonstration not later than March 1, 2001.
       (d) Participation by CINCs.--The Secretary shall require 
     the commander of the United States Joint Forces Command and 
     the commander of the United States Southern Command jointly 
     to provide guidance for the demonstration and otherwise to 
     participate in the demonstration.
       (e) Scenario for Demonstration.--The demonstration shall be 
     conducted in a counter-drug surveillance scenario that is 
     designed to replicate factual conditions typically 
     encountered in the performance of the counter-drug 
     surveillance mission of the commander of the United States 
     Southern Command within that commander's area of 
     responsibility.
       (f) Report.--Not later than 45 days after the demonstration 
     is completed, the Secretary shall submit to Congress a report 
     on the results of the demonstration. The report shall include 
     the following:
       (1) The Secretary's assessment of the technical feasibility 
     of using the Global Hawk high altitude endurance unmanned 
     aerial vehicle for airborne air surveillance.
       (2) A discussion of the operational concept for the use of 
     the vehicle for that purpose.
       (g) Funding.--Of the funds authorized to be appropriated by 
     section 301(20) for Drug Interdiction and Counter-drug 
     Activities, Defense-wide, $18,000,000 shall be available for 
     the concept demonstration required by subsection (a), 
     including initiation of concurrent development for an 
     improved surveillance radar.

     SEC. 222. ARMY SPACE CONTROL TECHNOLOGY DEVELOPMENT.

       Of the funds authorized to be appropriated under section 
     201(1) for Army space control technology, $3,000,000 shall be 
     available for the kinetic energy anti-satellite technology 
     program.
                 Subtitle C--Ballistic Missile Defense

     SEC. 231. FUNDING FOR FISCAL YEAR 2001.

       Of the funds authorized to be appropriated in section 
     201(4), $1,875,238,000 shall be available for the National 
     Missile Defense program.

     SEC. 232. REPORTS ON BALLISTIC MISSILE THREAT POSED BY NORTH 
                   KOREA.

       (a) Report On Ballistic Missile Threat.--Not later than two 
     weeks after the next flight test by North Korea of a long-
     range ballistic missile, the President shall submit to 
     Congress, in classified and unclassified form, a report on 
     the North Korean ballistic missile threat to the United 
     States. The report shall include the following:
       (1) An assessment of the current North Korean missile 
     threat to the United States.
       (2) An assessment of whether the United States is capable 
     of defeating the North Korean

[[Page 21367]]

     long-range missile threat to the United States as of the date 
     of the report.
       (3) An assessment of when the United States will be capable 
     of defeating the North Korean missile threat to the United 
     States.
       (4) An assessment of the potential for proliferation of 
     North Korean missile technologies to other states and whether 
     such proliferation will accelerate the development of 
     additional long-range ballistic missile threats to the United 
     States.
       (b) Report on Reducing Vulnerability.--Not later than two 
     weeks after the next flight test by North Korea of a long-
     range ballistic missile, the President shall submit to 
     Congress a report providing the following:
       (1) Any additional steps the President intends to take to 
     reduce the period of time during which the Nation is 
     vulnerable to the North Korean long-range ballistic missile 
     threat.
       (2) The technical and programmatic viability of testing any 
     other missile defense systems against targets with flight 
     characteristics similar to the North Korean long-range 
     missile threat, and plans to do so if such tests are 
     considered to be a viable alternative.
       (c) Definition.--For purposes of this section, the term 
     ``United States'', when used in a geographic sense, means the 
     50 States, the District of Columbia, and any Commonwealth, 
     territory, or possession of the United States.

     SEC. 233. PLAN TO MODIFY BALLISTIC MISSILE DEFENSE 
                   ARCHITECTURE.

       (a) Plan.--The Director of the Ballistic Missile Defense 
     Organization shall develop a plan to adapt ballistic missile 
     defense systems and architectures to counter potential 
     threats to the United States, United States forces deployed 
     outside the United States, and other United States national 
     security interests that are posed by longer range medium-
     range ballistic missiles and intermediate-range ballistic 
     missiles.
       (b) Use of Space-Based Sensors Included.--The plan shall 
     include--
       (1) potential use of space-based sensors, including the 
     Space-Based Infrared System (SBIRS) Low and Space-Based 
     Infrared System (SBIRS) High, Navy theater missile defense 
     assets, upgrades of land-based theater missile defenses, the 
     airborne laser, and other assets available in the European 
     theater; and
       (2) a schedule for ground and flight testing against the 
     identified threats.
       (c) Report.--The Secretary of Defense shall assess the plan 
     and, not later than February 15, 2001, shall submit to the 
     congressional defense committees a report on the results of 
     the assessment.

     SEC. 234. MANAGEMENT OF AIRBORNE LASER PROGRAM.

       (a) Oversight of Funding, Schedule, and Technical 
     Requirements.--With respect to the program known as of the 
     date of the enactment of this Act as the ``Airborne Laser'' 
     program, the Secretary of Defense shall require that the 
     Secretary of the Air Force obtain the concurrence of the 
     Director of the Ballistic Missile Defense Organization before 
     the Secretary--
       (1) makes any change to the funding plan or schedule for 
     that program that would delay to a date later than September 
     30, 2003, the first test of the airborne laser that is 
     intended to destroy a ballistic missile in flight;
       (2) makes any change to the funding plan for that program 
     in the future-years defense program that would delay the 
     initial operational capability of the airborne laser; and
       (3) makes any change to the technical requirements of the 
     airborne laser that would significantly reduce its ballistic 
     missile defense capabilities.
       (b) Report.--Not later than February 15, 2001, the Director 
     of the Ballistic Missile Defense Organization shall submit to 
     the congressional defense committees a report, to be prepared 
     in coordination with the Secretary of the Air Force, on the 
     role of the airborne laser in the family of systems missile 
     defense architecture developed by the Director of the 
     Ballistic Missile Defense Organization and the Director of 
     the Joint Theater Air and Missile Defense Organization. The 
     report shall be submitted in unclassified and, if necessary, 
     classified form. The report shall include the following:
       (1) An assessment by the Secretary of the Air Force and the 
     Director of the Ballistic Missile Defense Organization of the 
     funding plan for that program required to achieve the 
     schedule identified in paragraphs (1) and (2) of subsection 
     (a).
       (2) Potential future airborne laser roles in that 
     architecture.
       (3) An assessment of the effect of deployment of the 
     airborne laser on requirements for theater ballistic missile 
     defense systems.
       (4) An assessment of the cost effectiveness of the airborne 
     laser compared to other ballistic missile defense systems.
       (5) An assessment of the relative significance of the 
     airborne laser in the family of systems missile defense 
     architecture.
                 Subtitle D--High Energy Laser Programs

     SEC. 241. FUNDING.

       (a) Funding for Fiscal Year 2001.--(1) Of the amount 
     authorized to be appropriated by section 201(4), $30,000,000 
     is authorized for high energy laser development.
       (2) Funds available under this subsection are available to 
     supplement the high energy laser programs of the military 
     departments and Defense Agencies, as determined by the 
     official designated under section 243.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Department of Defense should establish funding for 
     high energy laser programs within the science and technology 
     programs of each of the military departments and the 
     Ballistic Missile Defense Organization; and
       (2) the Secretary of Defense should establish a goal that 
     basic, applied, and advanced research in high energy laser 
     technology should constitute at least 4.5 percent of the 
     total science and technology budget of the Department of 
     Defense by fiscal year 2004.

     SEC. 242. IMPLEMENTATION OF HIGH ENERGY LASER MASTER PLAN.

       The Secretary of Defense shall implement the management and 
     organizational structure specified in the Department of 
     Defense High Energy Laser Master Plan of March 24, 2000.

     SEC. 243. DESIGNATION OF SENIOR OFFICIAL FOR HIGH ENERGY 
                   LASER PROGRAMS.

       (a) Designation.--The Secretary of Defense shall designate 
     a single senior civilian official in the Office of the 
     Secretary of Defense (in this subtitle referred to as the 
     ``designated official'') to chair the High Energy Laser 
     Technology Council called for in the master plan referred to 
     in section 242 and to carry out responsibilities for the 
     programs for which funds are provided under this subtitle. 
     The designated official shall report directly to the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics for matters concerning the responsibilities 
     specified in subsection (b).
       (b) Responsibilities.--The primary responsibilities of the 
     designated official shall include the following:
       (1) Establishment of priorities for the high energy laser 
     programs of the military departments and the Defense 
     Agencies.
       (2) Coordination of high energy laser programs among the 
     military departments and the Defense Agencies.
       (3) Identification of promising high energy laser 
     technologies for which funding should be a high priority for 
     the Department of Defense and establishment of priority for 
     funding among those technologies.
       (4) Preparation, in coordination with the Secretaries of 
     the military departments and the Directors of the Defense 
     Agencies, of a detailed technology plan to develop and mature 
     high energy laser technologies.
       (5) Planning and programming appropriate to rapid evolution 
     of high energy laser technology.
       (6) Ensuring that high energy laser programs of each 
     military department and the Defense Agencies are initiated 
     and managed effectively and are complementary with programs 
     managed by the other military departments and Defense 
     Agencies and by the Office of the Secretary of Defense.
       (7) Ensuring that the high energy laser programs of the 
     military departments and the Defense Agencies comply with the 
     requirements specified in subsection (c).
       (c) Coordination and Funding Balance.--In carrying out the 
     responsibilities specified in subsection (b), the designated 
     official shall ensure that--
       (1) high energy laser programs of each military department 
     and of the Defense Agencies are consistent with the 
     priorities identified in the designated official's planning 
     and programming activities;
       (2) funding provided by the Office of the Secretary of 
     Defense for high energy laser research and development 
     complements high energy laser programs for which funds are 
     provided by the military departments and the Defense 
     Agencies;
       (3) programs, projects, and activities to be carried out by 
     the recipients of such funds are selected on the basis of 
     appropriate competitive procedures or Department of Defense 
     peer review process;
       (4) beginning with fiscal year 2002, funding from the 
     Office of the Secretary of Defense in applied research and 
     advanced technology development program elements is not 
     applied to technology efforts in support of high energy laser 
     programs that are not funded by a military department or the 
     Defense Agencies; and
       (5) funding from the Office of the Secretary of Defense to 
     complement an applied research or advanced technology 
     development high energy laser program for which funds are 
     provided by one of the military departments or the Defense 
     Agencies do not exceed the amount provided by the military 
     department or the Defense Agencies for that program.

     SEC. 244. SITE FOR JOINT TECHNOLOGY OFFICE.

       (a) Deadline for Selection of Site.--The Secretary of 
     Defense shall locate the Joint Technology Office called for 
     in the High Energy Laser Master Plan referred to in section 
     242 at a location determined appropriate by the Secretary not 
     later than 30 days after the date of the enactment of this 
     Act.
       (b) Consideration of Site.--In determining the location of 
     the Joint Technology Office, the Secretary shall, in 
     consultation with the Deputy Under Secretary of Defense for 
     Science and Technology, assess--
       (1) cost;
       (2) accessibility between the Office and the Armed Forces 
     and senior Department of Defense leaders; and
       (3) the advantages and disadvantages of locating the Office 
     at a site at which occurs a substantial proportion of the 
     directed energy research, development, test, and evaluation 
     activities of the Department of Defense.

     SEC. 245. HIGH ENERGY LASER INFRASTRUCTURE IMPROVEMENTS.

       (a) Enhancement of Industrial Base.--The Secretary of 
     Defense shall consider, evaluate, and undertake to the extent 
     appropriate initiatives, including investment initiatives, to 
     enhance the industrial base to support military applications 
     of high energy laser technologies and systems.

[[Page 21368]]

       (b) Enhancement of Test and Evaluation Capabilities.--The 
     Secretary of Defense shall consider modernizing the High 
     Energy Laser Test Facility at White Sands Missile Range, New 
     Mexico, in order to enhance the test and evaluation 
     capabilities of the Department of Defense with respect to 
     high energy laser weapons.

     SEC. 246. COOPERATIVE PROGRAMS AND ACTIVITIES.

       (a) Memorandum of Agreement With NNSA.--(1) The Secretary 
     of Defense and the Administrator for Nuclear Security of the 
     Department of Energy shall enter into a memorandum of 
     agreement to conduct joint research and development on 
     military applications of high energy lasers.
       (2) The projects pursued under the memorandum of 
     agreement--
       (A) shall be of mutual benefit to the national security 
     programs of the Department of Defense and the National 
     Nuclear Security Administration of the Department of Energy;
       (B) shall be prioritized jointly by officials designated to 
     do so by the Secretary of Defense and the Administrator; and
       (C) shall be consistent with the technology plan prepared 
     pursuant to section 243(b)(4) and the requirements identified 
     in section 243(c).
       (3) The costs of each project pursued under the memorandum 
     of agreement shall be shared equally by the Department of 
     Defense and the National Nuclear Security Administration.
       (4) The memorandum of agreement shall provide for 
     appropriate peer review of projects pursued under the 
     memorandum of agreement.
       (b) Evaluation of Other Cooperative Programs and 
     Activities.--The Secretary of Defense shall evaluate the 
     feasibility and advisability of entering into cooperative 
     programs or activities with other Federal agencies, 
     institutions of higher education, and the private sector for 
     the purpose of enhancing the programs, projects, and 
     activities of the Department of Defense relating to high 
     energy laser technologies, systems, and weapons.

     SEC. 247. TECHNOLOGY PLAN.

       The designated official shall submit to the congressional 
     defense committees by February 15, 2001, the technology plan 
     prepared pursuant to section 243(b)(4). The report shall be 
     submitted in unclassified and, if necessary, classified form.

     SEC. 248. ANNUAL REPORT.

       Not later than February 15 of 2001, 2002, and 2003, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the high energy laser programs 
     of the Department of Defense. Each report shall include an 
     assessment of the following:
       (1) The adequacy of the management structure of the 
     Department of Defense for the high energy laser programs.
       (2) The funding available for the high energy laser 
     programs.
       (3) The technical progress achieved for the high energy 
     laser programs.
       (4) The extent to which goals and objectives of the high 
     energy laser technology plan have been met.

     SEC. 249. DEFINITION.

       For purposes of this subtitle, the term ``high energy 
     laser'' means a laser that has average power in excess of one 
     kilowatt and that has potential weapons applications.

     SEC. 250. REVIEW OF DEFENSE-WIDE DIRECTED ENERGY PROGRAMS.

       (a) Evaluation.--The Secretary of Defense, in consultation 
     with the Deputy Under Secretary of Defense for Science and 
     Technology, shall evaluate expansion of the High Energy Laser 
     management structure specified in section 242 for possible 
     inclusion in that management structure of science and 
     technology programs in related areas, including the 
     following:
       (1) High power microwave technologies.
       (2) Low energy and nonlethal laser technologies.
       (3) Other directed energy technologies.
       (b) Consideration of Prior Study.--The evaluation under 
     subsection (a) shall take into consideration the July 1999 
     Department of Defense study on streamlining and coordinating 
     science and technology and research, development, test, and 
     evaluation within the Department of Defense.
       (c) Report.--The Secretary of Defense shall submit to the 
     congressional defense committees a report on the findings of 
     the evaluation under subsection (a). The report shall be 
     submitted not later than March 15, 2001.
                       Subtitle E--Other Matters

     SEC. 251. REPORTS ON MOBILE OFFSHORE BASE CONCEPT AND 
                   POTENTIAL USE FOR CERTAIN PURPOSES OF 
                   TECHNOLOGIES ASSOCIATED WITH THAT CONCEPT.

       (a) Report on Merits of Mobile Offshore Base Concept.--Not 
     later than March 1, 2001, the Secretary of Defense shall 
     submit to the congressional defense committees a report on 
     the mobile offshore base concept. The report shall include 
     the following:
       (1) A cost-benefit analysis of the mobile offshore base, 
     using operational concepts that would support the National 
     Military Strategy.
       (2) A recommendation regarding whether to proceed with the 
     mobile offshore base as a program and, if so--
       (A) a statement regarding which of the Armed Forces is to 
     be designated to have the lead responsibility for the 
     program; and
       (B) a schedule for the program.
       (b) Report on Potential Use for Certain Purposes of 
     Associated Technologies.--Not later than March 1, 2001, the 
     Secretary of the Navy shall submit to the congressional 
     defense committees a report on the potential use of 
     technologies associated with the mobile offshore base 
     concept. The report shall include an assessment of the 
     potential application and feasibility of using existing 
     technologies, including those technologies associated with 
     the mobile offshore base concept, to a sea-based landing 
     platform for support of naval aviation training.

     SEC. 252. AIR FORCE SCIENCE AND TECHNOLOGY PLANNING.

       (a) Requirement for Review.--The Secretary of the Air Force 
     shall conduct a review of the long-term challenges and short-
     term objectives of the Air Force science and technology 
     programs. The Secretary shall complete the review not later 
     than one year after the date of the enactment of this Act.
       (b) Matters To Be Reviewed.--The review shall include the 
     following:
       (1) An assessment of the budgetary resources that are being 
     used for fiscal year 2001 for addressing the long-term 
     challenges and the short-term objectives of the Air Force 
     science and technology programs.
       (2) The budgetary resources that are necessary to address 
     those challenges and objectives adequately.
       (3) A course of action for each projected or ongoing Air 
     Force science and technology program that does not address 
     either the long-term challenges or the short-term objectives.
       (4) The matters required under subsection (c)(5) and 
     (d)(6).
       (c) Long-Term Challenges.--(1) The Secretary of the Air 
     Force shall establish an integrated product team to identify 
     high-risk, high-payoff challenges that will provide a long-
     term focus and motivation for the Air Force science and 
     technology programs over the next 20 to 50 years following 
     the enactment of this Act. The integrated product team shall 
     include representatives of the Office of Scientific Research 
     and personnel from the Air Force Research Laboratory.
       (2) The team shall solicit views from the entire Air Force 
     science and technology community on the matters under 
     consideration by the team.
       (3) The team--
       (A) shall select for consideration science and technology 
     challenges that involve--
       (i) compelling requirements of the Air Force;
       (ii) high-risk, high-payoff areas of exploration; and
       (iii) very difficult, but probably achievable, results; and
       (B) should not select a linear extension of any ongoing Air 
     Force science and technology program for consideration as a 
     science and technology challenge under subparagraph (A).
       (4) The Deputy Assistant Secretary of the Air Force for 
     Science, Technology, and Engineering shall designate a 
     technical coordinator and a management coordinator for each 
     science and technology challenge identified pursuant to this 
     subsection. Each technical coordinator shall have sufficient 
     expertise in fields related to the challenge to be able to 
     identify other experts in such fields and to affirm the 
     credibility of the challenge. The coordinator for a science 
     and technology challenge shall conduct workshops within the 
     relevant scientific and technological community to obtain 
     suggestions for possible approaches to addressing the 
     challenge and to identify ongoing work that addresses the 
     challenge, deficiencies in current work relating to the 
     challenge, and promising areas of research.
       (5) In carrying out subsection (a), the Secretary of the 
     Air Force shall review the science and technology challenges 
     identified pursuant to this subsection and, for each such 
     challenge, at a minimum--
       (A) consider the results of the workshops conducted 
     pursuant to paragraph (4); and
       (B) identify any work not currently funded by the Air Force 
     that should be performed to meet the challenge.
       (d) Short-Term Objectives.--(1) The Secretary of the Air 
     Force shall establish a task force to identify short-term 
     technological objectives of the Air Force science and 
     technology programs. The task force shall be chaired by the 
     Deputy Assistant Secretary of the Air Force for Science, 
     Technology, and Engineering and shall include representatives 
     of the Chief of Staff of the Air Force and the specified 
     combatant commands of the Air Force.
       (2) The task force shall solicit views from the entire Air 
     Force requirements community, user community, and acquisition 
     community.
       (3) The task force shall select for consideration short-
     term objectives that involve--
       (A) compelling requirements of the Air Force;
       (B) support in the user community; and
       (C) likely attainment of the desired benefits within a 
     five-year period.
       (4) The Deputy Assistant Secretary of the Air Force for 
     Science, Technology, and Engineering shall establish an 
     integrated product team for each short-term objective 
     identified pursuant to this subsection. Each integrated 
     product team shall include representatives of the 
     requirements community, the user community, and the science 
     and technology community with relevant expertise.
       (5) The integrated product team for a short-term objective 
     shall be responsible for--
       (A) identifying, defining, and prioritizing the enabling 
     capabilities that are necessary for achieving the objective;
       (B) identifying deficiencies in the enabling capabilities 
     that must be addressed if the short-term objective is to be 
     achieved; and
       (C) working with the Air Force science and technology 
     community to identify science and technology projects and 
     programs that should be undertaken to eliminate each 
     deficiency in an enabling capability.

[[Page 21369]]

       (6) In carrying out subsection (a), the Secretary of the 
     Air Force shall review the short-term science and technology 
     objectives identified pursuant to this subsection and, for 
     each such objective, at a minimum--
       (A) consider the work of the integrated product team 
     conducted pursuant to paragraph (5); and
       (B) identify the science and technology work of the Air 
     Force that should be undertaken to eliminate each deficiency 
     in enabling capabilities that is identified by the integrated 
     product team pursuant to subparagraph (B) of that paragraph.
       (e) Comptroller General Review.--(1) Not later than 90 days 
     after the Secretary of the Air Force completes the review 
     required by subsection (a), the Comptroller General shall 
     submit to Congress a report on the results of the review. The 
     report shall include the Comptroller General's assessment 
     regarding the extent to which the review was conducted in 
     compliance with the requirements of this section.
       (2) Immediately upon completing the review required by 
     subsection (a), the Secretary of Defense shall notify the 
     Comptroller General of the completion of the review. For the 
     purposes of paragraph (1), the date of the notification shall 
     be considered the date of the completion of the review.

     SEC. 253. ENHANCEMENT OF AUTHORITIES REGARDING EDUCATION 
                   PARTNERSHIPS FOR PURPOSES OF ENCOURAGING 
                   SCIENTIFIC STUDY.

       (a) Assistance in Support of Partnerships.--Subsection (b) 
     of section 2194 of title 10, United States Code, is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     and is encouraged to provide,'' after ``may provide'';
       (2) in paragraph (1), by inserting before the semicolon the 
     following: ``for any purpose and duration in support of such 
     agreement that the director considers appropriate''; and
       (3) by striking paragraph (2) and inserting the following 
     new paragraph (2):
       ``(2) notwithstanding the provisions of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.) or any provision of law or regulation relating 
     to transfers of surplus property, transferring to the 
     institution any computer equipment, or other scientific 
     equipment, that is--
       ``(A) commonly used by educational institutions;
       ``(B) surplus to the needs of the defense laboratory; and
       ``(C) determined by the director to be appropriate for 
     support of such agreement;''.
       (b) Defense Laboratory Defined.--Subsection (e) of that 
     section is amended to read as follows:
       ``(e) In this section:
       ``(1) The term `defense laboratory' means any laboratory, 
     product center, test center, depot, training and educational 
     organization, or operational command under the jurisdiction 
     of the Department of Defense.
       ``(2) The term `local educational agency' has the meaning 
     given such term in section 14101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801).''.

     SEC. 254. RECOGNITION OF THOSE INDIVIDUALS INSTRUMENTAL TO 
                   NAVAL RESEARCH EFFORTS DURING THE PERIOD FROM 
                   BEFORE WORLD WAR II THROUGH THE END OF THE COLD 
                   WAR.

       (a) Findings.--Congress makes the following findings:
       (1) The contributions of the Nation's scientific community 
     and of science research to the victory of the United States 
     and its allies in World War II resulted in the understanding 
     that science and technology are of critical importance to the 
     future security of the Nation.
       (2) Academic institutions and oceanographers provided vital 
     support to the Navy and the Marine Corps during World War II.
       (3) Congress created the Office of Naval Research in the 
     Department of the Navy in 1946 to ensure the availability of 
     resources for research in oceanography and other fields 
     related to the missions of the Navy and Marine Corps.
       (4) The Office of Naval Research of the Department of the 
     Navy, in addition to its support of naval research within the 
     Federal Government, has also supported the conduct of 
     oceanographic and scientific research through partnerships 
     with educational and scientific institutions throughout the 
     Nation.
       (5) These partnerships have long been recognized as among 
     the most innovative and productive research partnerships ever 
     established by the Federal Government and have resulted in a 
     vast improvement in understanding of basic ocean processes 
     and the development of new technologies critical to the 
     security and defense of the Nation.
       (b) Congressional Recognition and Appreciation.--Congress--
       (1) applauds the commitment and dedication of the officers, 
     scientists, researchers, students, and administrators who 
     were instrumental to the program of partnerships for 
     oceanographic and scientific research between the Federal 
     Government and academic institutions, including those 
     individuals who helped forge that program before World War 
     II, implement it during World War II, and improve it 
     throughout the Cold War;
       (2) recognizes that the Nation, in ultimately prevailing in 
     the Cold War, relied to a significant extent on research 
     supported by, and technologies developed through, those 
     partnerships and, in particular, on the superior 
     understanding of the ocean environment generated through that 
     research;
       (3) supports efforts by the Secretary of the Navy and the 
     Chief of Naval Research to honor those individuals, who 
     contributed so greatly and unselfishly to the naval mission 
     and the national defense, through those partnerships during 
     the period beginning before World War II and continuing 
     through the end of the Cold War; and
       (4) expresses appreciation for the ongoing efforts of the 
     Office of Naval Research to support oceanographic and 
     scientific research and the development of researchers in 
     those fields, to ensure that such partnerships will continue 
     to make important contributions to the defense and the 
     general welfare of the Nation.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Joint warfighting capabilities assessment teams.

                  Subtitle B--Environmental Provisions

Sec. 311. Establishment of additional environmental restoration account 
              and use of accounts for operation and monitoring of 
              environmental remedies.
Sec. 312. Certain environmental restoration activities.
Sec. 313. Annual reports under Strategic Environmental Research and 
              Development Program.
Sec. 314. Payment of fines and penalties for environmental compliance 
              at Fort Wainwright, Alaska.
Sec. 315. Payment of fines or penalties imposed for environmental 
              compliance violations at other Department of Defense 
              facilities.
Sec. 316. Reimbursement for certain costs in connection with the former 
              Nansemond Ordnance Depot Site, Suffolk, Virginia.
Sec. 317. Necessity of military low-level flight training to protect 
              national security and enhance military readiness.
Sec. 318. Ship disposal project.
Sec. 319. Defense Environmental Security Corporate Information 
              Management Program.
Sec. 320. Report on Plasma Energy Pyrolysis System.
Sec. 321. Sense of Congress regarding environmental restoration of 
              former defense manufacturing site, Santa Clarita, 
              California.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Use of appropriated funds to cover operating expenses of 
              commissary stores.
Sec. 332. Adjustment of sales prices of commissary store goods and 
              services to cover certain expenses.
Sec. 333. Use of surcharges for construction and improvement of 
              commissary stores.
Sec. 334. Inclusion of magazines and other periodicals as an authorized 
              commissary merchandise category.
Sec. 335. Use of most economical distribution method for distilled 
              spirits.
Sec. 336. Report on effects of availability of slot machines on United 
              States military installations overseas.

        Subtitle D--Department of Defense Industrial Facilities

Sec. 341. Designation of Centers of Industrial and Technical Excellence 
              and public-private partnerships to increase utilization 
              of such centers.
Sec. 342. Unutilized and underutilized plant-capacity costs of United 
              States arsenals.
Sec. 343. Arsenal support program initiative.
Sec. 344. Codification and improvement of armament retooling and 
              manufacturing support programs.

     Subtitle E--Performance of Functions by Private-Sector Sources

Sec. 351. Inclusion of additional information in reports to Congress 
              required before conversion of commercial or industrial 
              type functions to contractor performance.
Sec. 352 Effects of outsourcing on overhead costs of Centers of 
              Industrial and Technical Excellence and Army ammunition 
              plants.
Sec. 353. Consolidation, restructuring, or reengineering of Department 
              of Defense organizations, functions, or activities.
Sec. 354. Monitoring of savings resulting from workforce reductions as 
              part of conversion of functions to performance by private 
              sector or other strategic sourcing initiatives.
Sec. 355. Performance of emergency response functions at chemical 
              weapons storage installations.
Sec. 356. Suspension of reorganization or relocation of Naval Audit 
              Service.

                Subtitle F--Defense Dependents Education

Sec. 361. Eligibility of dependents of American Red Cross employees for 
              enrollment in Department of Defense domestic dependent 
              schools in Puerto Rico.

[[Page 21370]]

Sec. 362. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 363. Impact aid for children with severe disabilities.
Sec. 364. Assistance for maintenance, repair, and renovation of school 
              facilities that serve dependents of members of the Armed 
              Forces and Department of Defense civilian employees.

                 Subtitle G--Military Readiness Issues

Sec. 371. Measuring cannibalization of parts, supplies, and equipment 
              under readiness reporting system.
Sec. 372. Reporting requirements regarding transfers from high-priority 
              readiness appropriations.
Sec. 373. Effects of worldwide contingency operations on readiness of 
              military aircraft and equipment.
Sec. 374. Identification of requirements to reduce backlog in 
              maintenance and repair of defense facilities.
Sec. 375. New methodology for preparing budget requests to satisfy Army 
              readiness requirements.
Sec. 376. Review of AH-64 aircraft program.
Sec. 377. Report on Air Force spare and repair parts program for C-5 
              aircraft.

                       Subtitle H--Other Matters

Sec. 381. Annual report on public sale of certain military equipment 
              identified on United States Munitions List.
Sec. 382. Resale of armor-piercing ammunition disposed of by the Army.
Sec. 383. Reimbursement by civil air carriers for support provided at 
              Johnston Atoll.
Sec. 384. Travel by Reserves on military aircraft.
Sec. 385. Overseas airlift service on Civil Reserve Air Fleet aircraft.
Sec. 386. Additions to plan for ensuring visibility over all in-transit 
              end items and secondary items.
Sec. 387. Reauthorization of pilot program for acceptance and use of 
              landing fees charged for use of domestic military 
              airfields by civil aircraft.
Sec. 388. Extension of authority to sell certain aircraft for use in 
              wildfire suppression.
Sec. 389. Damage to aviation facilities caused by alkali silica 
              reactivity.
Sec. 390. Demonstration project to increase reserve component internet 
              access and services in rural communities.
Sec. 391. Additional conditions on implementation of Defense Joint 
              Accounting System.
Sec. 392. Report on Defense Travel System.
Sec. 393. Review of Department of Defense costs of maintaining 
              historical properties.
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2001 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, $19,280,381,000.
       (2) For the Navy, $23,766,610,000.
       (3) For the Marine Corps, $2,826,291,000.
       (4) For the Air Force, $22,395,221,000.
       (5) For Defense-wide activities, $11,740,569,000.
       (6) For the Army Reserve, $1,561,418,000.
       (7) For the Naval Reserve, $978,946,000.
       (8) For the Marine Corps Reserve, $144,159,000.
       (9) For the Air Force Reserve, $1,903,859,000.
       (10) For the Army National Guard, $3,233,835,000.
       (11) For the Air National Guard, $3,468,375,000.
       (12) For the Defense Inspector General, $144,245,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $8,574,000.
       (14) For Environmental Restoration, Army, $389,932,000.
       (15) For Environmental Restoration, Navy, $294,038,000.
       (16) For Environmental Restoration, Air Force, 
     $376,300,000.
       (17) For Environmental Restoration, Defense-wide, 
     $21,412,000.
       (18) For Environmental Restoration, Formerly Used Defense 
     Sites, $231,499,000.
       (19) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $55,900,000.
       (20) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $869,000,000.
       (21) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $25,000,000.
       (22) For Defense Health Program, $11,480,123,000.
       (23) For Cooperative Threat Reduction programs, 
     $443,400,000.
       (24) For Overseas Contingency Operations Transfer Fund, 
     $4,100,577,000.
       (25) For Quality of Life Enhancements, Defense-Wide, 
     $10,500,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2001 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, $916,276,000.
       (2) For the National Defense Sealift Fund, $388,158,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 2001 from the Armed Forces Retirement Home Trust Fund 
     the sum of $69,832,000 for the operation of the Armed Forces 
     Retirement Home, including the United States Soldiers' and 
     Airmen's Home and the Naval Home.

     SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE 
                   TRANSACTION FUND.

       (a) Transfer Authority.--To the extent provided in 
     appropriations Acts, not more than $150,000,000 is authorized 
     to be transferred from the National Defense Stockpile 
     Transaction Fund to operation and maintenance accounts for 
     fiscal year 2001 in amounts as follows:
       (1) For the Army, $50,000,000.
       (2) For the Navy, $50,000,000.
       (3) For the Air Force, $50,000,000.
       (b) Treatment of Transfers.--Amounts transferred under this 
     section--
       (1) shall be merged with, and be available for the same 
     purposes and the same period as, the amounts in the accounts 
     to which transferred; and
       (2) may not be expended for an item that has been denied 
     authorization of appropriations by Congress.
       (c) Relationship to Other Transfer Authority.--The transfer 
     authority provided in this section is in addition to the 
     transfer authority provided in section 1001.

     SEC. 305. JOINT WARFIGHTING CAPABILITIES ASSESSMENT TEAMS.

       Of the total amount authorized to be appropriated under 
     section 301(5) for operation and maintenance for Defense-wide 
     activities for the Joint Staff, $4,000,000 is available only 
     for the improvement of the performance of analyses by the 
     joint warfighting capabilities assessment teams of the Joint 
     Requirements Oversight Council.
                  Subtitle B--Environmental Provisions

     SEC. 311. ESTABLISHMENT OF ADDITIONAL ENVIRONMENTAL 
                   RESTORATION ACCOUNT AND USE OF ACCOUNTS FOR 
                   OPERATION AND MONITORING OF ENVIRONMENTAL 
                   REMEDIES.

       (a) Account for Formerly Used Defense Sites.--Subsection 
     (a) of section 2703 of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(5) An account to be known as the `Environmental 
     Restoration Account, Formerly Used Defense Sites'.''.
       (b) Operation and Monitoring of Environmental Remedies.--
     Such section is further amended by adding at the end the 
     following new subsection:
       ``(f) Sole Source of Funds for Operation and Monitoring of 
     Environmental Remedies.--(1) The sole source of funds for all 
     phases of an environmental remedy at a site under the 
     jurisdiction of the Department of Defense or a formerly used 
     defense site shall be the applicable environmental 
     restoration account established under subsection (a).
       ``(2) In this subsection, the term `environmental remedy' 
     has the meaning given the term `remedy' in section 101 of 
     CERCLA (42 U.S.C. 9601).''.

     SEC. 312. CERTAIN ENVIRONMENTAL RESTORATION ACTIVITIES.

       Subsection (b) of section 2703 of title 10, United States 
     Code, is amended to read as follows:
       ``(b) Obligation of Authorized Amounts.--(1) Funds 
     authorized for deposit in an account under subsection (a) may 
     be obligated or expended from the account only--
       ``(A) to carry out the environmental restoration functions 
     of the Secretary of Defense and the Secretaries of the 
     military departments under this chapter and under any other 
     provision of law; and
       ``(B) to pay for the costs of permanently relocating a 
     facility because of a release or threatened release of 
     hazardous substances, pollutants, or contaminants from--
       ``(i) real property on which the facility is located and 
     that is currently under the jurisdiction of the Secretary of 
     Defense or the Secretary of a military department; or
       ``(ii) real property on which the facility is located and 
     that was under the jurisdiction of the Secretary of Defense 
     or the Secretary of a military department at the time of the 
     actions leading to the release or threatened release.
       ``(2) The authority provided by paragraph (1)(B) expires 
     September 30, 2003. The Secretary of Defense or the Secretary 
     of a military department may not pay the costs of permanently 
     relocating a facility under such paragraph unless the 
     Secretary--
       ``(A) determines that permanent relocation--
       ``(i) is the most cost effective method of responding to 
     the release or threatened release of hazardous substances, 
     pollutants, or contaminants from the real property on which 
     the facility is located;
       ``(ii) has the approval of relevant regulatory agencies; 
     and
       ``(iii) is supported by the affected community; and
       ``(B) submits to Congress written notice of the 
     determination before undertaking the permanent relocation of 
     the facility, including a description of the response action 
     taken or to be taken in connection with the permanent 
     relocation and a statement of the costs incurred or to be 
     incurred in connection with the permanent relocation.

[[Page 21371]]

       ``(3) If relocation costs are to be paid under paragraph 
     (1)(B) with respect to a facility located on real property 
     described in clause (ii) of such paragraph, the Secretary of 
     Defense or the Secretary of the military department concerned 
     may use only fund transfer mechanisms otherwise available to 
     the Secretary.
       ``(4) Funds authorized for deposit in an account under 
     subsection (a) shall remain available until expended. Not 
     more than 5 percent of the funds deposited in an account 
     under subsection (a) for a fiscal year may be used to pay 
     relocation costs under paragraph (1)(B).''.

     SEC. 313. ANNUAL REPORTS UNDER STRATEGIC ENVIRONMENTAL 
                   RESEARCH AND DEVELOPMENT PROGRAM.

       (a) Repeal of Requirement for Annual Report From Scientific 
     Advisory Board.--Section 2904 of title 10, United States 
     Code, is amended--
       (1) by striking subsection (h); and
       (2) by redesignating subsection (i) as subsection (h).
       (b) Inclusion of Actions of Board in Annual Reports of 
     Council.--Section 2902(d)(3) of such title is amended by 
     adding at the end the following new subparagraph:
       ``(D) A summary of the actions of the Strategic 
     Environmental Research and Development Program Scientific 
     Advisory Board during the year preceding the year in which 
     the report is submitted and any recommendations, including 
     recommendations on program direction and legislation, that 
     the Advisory Board considers appropriate regarding the 
     program.''.

     SEC. 314. PAYMENT OF FINES AND PENALTIES FOR ENVIRONMENTAL 
                   COMPLIANCE AT FORT WAINWRIGHT, ALASKA.

       The Secretary of Defense, or the Secretary of the Army, may 
     pay, as part of a settlement of liability, a fine or penalty 
     of not more than $2,000,000 for matters addressed in the 
     Notice of Violation issued on March 5, 1999, by the 
     Administrator of the Environmental Protection Agency to Fort 
     Wainwright, Alaska.

     SEC. 315. PAYMENT OF FINES OR PENALTIES IMPOSED FOR 
                   ENVIRONMENTAL COMPLIANCE VIOLATIONS AT OTHER 
                   DEPARTMENT OF DEFENSE FACILITIES.

       (a) Army Violations.--Using amounts authorized to be 
     appropriated by section 301(1) for operation and maintenance 
     for the Army, the Secretary of the Army may pay the following 
     amounts in connection with environmental compliance 
     violations at the following locations:
       (1) $993,000 for a supplemental environmental project to 
     implement an installation-wide hazardous substance management 
     system at Walter Reed Army Medical Center, Washington, 
     District of Columbia, in satisfaction of a fine imposed by 
     Environmental Protection Agency Region 3 under the Solid 
     Waste Disposal Act (42 U.S.C. 6901 et seq.).
       (2) $377,250 for a supplemental environmental project to 
     install new parts washers at Fort Campbell, Kentucky, in 
     satisfaction of a fine imposed by Environmental Protection 
     Agency Region 4 under the Solid Waste Disposal Act.
       (3) $20,701 for a supplemental environmental project to 
     upgrade the wastewater treatment plant at Fort Gordon, 
     Georgia, in satisfaction of a fine imposed by the State of 
     Georgia under the Solid Waste Disposal Act.
       (4) $78,500 for supplemental environmental projects to 
     reduce the generation of hazardous waste at Pueblo Chemical 
     Depot, Colorado, in satisfaction of a fine imposed by the 
     State of Colorado under the Solid Waste Disposal Act.
       (5) $20,000 for a supplemental environmental project to 
     repair cracks in floors of igloos used to store munitions 
     hazardous waste at Deseret Chemical Depot, Utah, in 
     satisfaction of a fine imposed by the State of Utah under the 
     Solid Waste Disposal Act.
       (6) $7,975 for payment to the Texas Natural Resource 
     Conservation Commission of a cash penalty for permit 
     violations assessed with respect to Fort Sam Houston, Texas, 
     under the Solid Waste Disposal Act.
       (b) Navy Violations.--Using amounts authorized to be 
     appropriated by section 301(2) for operation and maintenance 
     for the Navy, the Secretary of the Navy may pay the following 
     amounts in connection with environmental compliance 
     violations at the following locations:
       (1) $108,800 for payment to the West Virginia Division of 
     Environmental Protection of a cash penalty with respect to 
     Allegany Ballistics Laboratory, West Virginia, under the 
     Solid Waste Disposal Act.
       (2) $5,000 for payment to Environmental Protection Agency 
     Region 6 of a cash penalty with respect to Naval Air Station, 
     Corpus Christi, Texas, under the Clean Air Act (42 U.S.C. 
     7401).
       (3) $1,650 for payment to Environmental Protection Agency 
     Region 3 of a cash penalty with respect to Marine Corps 
     Combat Development Command, Quantico, Virginia, under the 
     Clean Air Act.

     SEC. 316. REIMBURSEMENT FOR CERTAIN COSTS IN CONNECTION WITH 
                   THE FORMER NANSEMOND ORDNANCE DEPOT SITE, 
                   SUFFOLK, VIRGINIA.

       (a) Authority.--The Secretary of Defense may pay, using 
     funds described in subsection(b), not more than $98,210 to 
     the Former Nansemond Ordnance Depot Site 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 
     costs incurred by the agency in overseeing a time critical 
     removal action under CERCLA being performed by the Department 
     of Defense under the Defense Environmental Restoration 
     Program for ordnance and explosive safety hazards at the 
     Former Nansemond Ordnance Depot Site, Suffolk, Virginia, 
     pursuant to an Interagency Agreement entered into by the 
     Department of the Army and the Environmental Protection 
     Agency on January 3, 2000.
       (b) Source of Funds.--Any payment under subsection (a) 
     shall be made using amounts authorized to be appropriated by 
     section 301 to the Environmental Restoration Account, 
     Formerly Used Defense Sites, established by paragraph (5) of 
     section 2703(a) of title 10, United States Code, as added by 
     section 311(a) of this Act.
       (c) Definitions.--In this section:
       (1) The term ``CERCLA'' means the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.).
       (2) The term ``Defense Environmental Restoration Program'' 
     means the program of environmental restoration carried out 
     under chapter 160 of title 10, United States Code.

     SEC. 317. NECESSITY OF MILITARY LOW-LEVEL FLIGHT TRAINING TO 
                   PROTECT NATIONAL SECURITY AND ENHANCE MILITARY 
                   READINESS.

       Nothing in the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) or the regulations implementing such 
     law shall require the Secretary of Defense or the Secretary 
     ofa military department to prepare a programmatic, nation-
     wide environmental impact statement for low-level flight 
     training as a precondition to the use by the Armed Forces of 
     an airspace for the performance of low-level training 
     flights.

     SEC. 318. SHIP DISPOSAL PROJECT.

       (a) Continuation of Project; Purpose.--During fiscal year 
     2001, the Secretary of the Navy shall continue to carry out 
     the ship disposal project within the United States to permit 
     the Secretary to assemble appropriate data on the cost of 
     scrapping naval vessels.
       (b) Use of Competitive Procedures.--The Secretary shall use 
     competitive procedures to award all task orders under the 
     primary contracts under the ship disposal project.
       (c) Report.--Not later than December 31, 2000, the 
     Secretary shall submit to the congressional defense 
     committees a report on the ship disposal project. The report 
     shall contain the following:
       (1) A description of the competitive procedures used for 
     the solicitation and award of all task orders under the 
     project.
       (2) A description of the task orders awarded under the 
     project.
       (3) An assessment of the results of the project as of the 
     date of the report, including the performance of contractors 
     under the project.
       (4) The proposed strategy of the Navy for future 
     procurement of ship scrapping activities.

     SEC. 319. DEFENSE ENVIRONMENTAL SECURITY CORPORATE 
                   INFORMATION MANAGEMENT PROGRAM.

       (a) Management and Oversight of Program.--The Chief 
     Information Officer of the Department of Defense shall ensure 
     that management and oversight of the Defense Environmental 
     Security Corporate Information Management Program is 
     consistent with the requirements of the Clinger-Cohen Act of 
     1996 (divisions D and E of Public Law 104-106), section 2223 
     of title 10, United States Code, Department of Defense 
     Directives 5000.1, 5000.2-R, and 5137.1, and all other laws, 
     directives, regulations, and management controls applicable 
     to investment in information technology and related services.
       (b) Program Report Required.--Not later than 60 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report on the Defense Environmental Security Corporate 
     Information Management Program.
       (c) Mission.--The report shall include a mission statement 
     and strategic objectives for the Defense Environmental 
     Security Corporate Information Management Program, including 
     the recommendations of the Secretary for the future mission 
     and objectives of the Program.
       (d) Personnel, Organization, and Oversight.--The report 
     shall include--
       (1) the personnel requirements and organizational structure 
     of the Defense Environmental Security Corporate Information 
     Management Program to carry out the mission statement; and
       (2) a discussion of--
       (A) the means by which the Program will ensure program 
     accountability, including accountability for all past, 
     current, and future activities funded under the Program; and
       (B) the role of the Chief Information Officer of the 
     Department of Defense in ensuring program accountability as 
     required by subsection (a).
       (e) Program Activities.--The report shall include a 
     discussion of the means by which the Defense Environmental 
     Security Corporate Information Management Program will 
     address or provide--
       (1) information access procedures that keep pace with 
     current and evolving requirements for information access;
       (2) data standardization and systems integration;
       (3) product failures and cost-effective results;
       (4) user confidence and utilization; and
       (5) program continuity.

     SEC. 320. REPORT ON PLASMA ENERGY PYROLYSIS SYSTEM.

       (a) Report Required.--Not later than February 1, 2001, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report on the Plasma Energy Pyrolysis 
     System.
       (b) Report Elements.--The report on the Plasma Energy 
     Pyrolysis System shall include the following:
       (1) An analysis of available information and data on the 
     fixed-transportable unit demonstration phase of the System 
     and on the mobile unit demonstration phase of the System.

[[Page 21372]]

       (2) Recommendations regarding future applications for each 
     phase of the System described in paragraph (1).
       (3) A statement of the projected funding for such future 
     applications.

     SEC. 321. SENSE OF CONGRESS REGARDING ENVIRONMENTAL 
                   RESTORATION OF FORMER DEFENSE MANUFACTURING 
                   SITE, SANTA CLARITA, CALIFORNIA.

       It is the sense of the Congress that--
       (1) there exists a 1,000-acre former defense manufacturing 
     site in Santa Clarita, California (known as the ``Santa 
     Clarita site''), that could be environmentally restored to 
     serve a future role in the community, and every effort should 
     be made to apply all known public and private sector 
     innovative technologies to restore the Santa Clarita site to 
     productive use for the benefit of the community; and
       (2) the experience gained from environmental restoration at 
     the Santa Clarita site by private and public sector 
     partnerships has the potential to benefit not only the 
     community of Santa Clarita, but all sites in need of 
     environmental restoration.
  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

     SEC. 331. USE OF APPROPRIATED FUNDS TO COVER OPERATING 
                   EXPENSES OF COMMISSARY STORES.

       (a) In General.--(1) Section 2484 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 2484. Commissary stores: use of appropriated funds to 
       cover operating expenses

       ``(a) Operation of Agency and System.--Except as otherwise 
     provided in this title, the operation of the Defense 
     Commissary Agency and the defense commissary system may be 
     funded using such amounts as are appropriated for such 
     purpose.
       ``(b) Operating Expenses of Commissary Stores.--
     Appropriated funds may be used to cover the expenses of 
     operating commissary stores and central product processing 
     facilities of the defense commissary system. For purposes of 
     this subsection, operating expenses include the following:
       ``(1) Salaries and wages of employees of the United States, 
     host nations, and contractors supporting commissary store 
     operations.
       ``(2) Utilities.
       ``(3) Communications.
       ``(4) Operating supplies and services.
       ``(5) Second destination transportation costs within or 
     outside the United States.
       ``(6) Any cost associated with above-store-level management 
     or other indirect support of a commissary store or a central 
     product processing facility, including equipment maintenance 
     and information technology costs.''.
       (2) The table of sections at the beginning of chapter 147 
     of such title is amended by striking the item relating to 
     section 2484 and inserting the following new item:

``2484. Commissary stores: use of appropriated funds to cover operating 
              expenses.''.

       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2001.

     SEC. 332. ADJUSTMENT OF SALES PRICES OF COMMISSARY STORE 
                   GOODS AND SERVICES TO COVER CERTAIN EXPENSES.

       (a) Adjustment Required.--Section 2486 of title 10, United 
     States Code, is amended--
       (1) in subsection (c), by striking ``section 2484(b) or'' 
     and inserting ``subsection (d) or section''; and
       (2) in subsection (d)--
       (A) in paragraph (1), by striking ``sections 2484 and'' and 
     inserting ``section''; and
       (B) by adding at the end the following new paragraph:
       ``(3) The sales price of merchandise and services sold in, 
     at, or by commissary stores shall be adjusted to cover the 
     following:
       ``(A) The cost of first destination commercial 
     transportation of the merchandise in the United States to the 
     place of sale.
       ``(B) The actual or estimated cost of shrinkage, spoilage, 
     and pilferage of merchandise under the control of commissary 
     stores.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2001.

     SEC. 333. USE OF SURCHARGES FOR CONSTRUCTION AND IMPROVEMENT 
                   OF COMMISSARY STORES.

       (a) Expansion of Authorized Uses.--Subsection (b) of 
     section 2685 of title 10, United States Code, is amended to 
     read as follows:
       ``(b) Use for Construction, Repair, Improvement, and 
     Maintenance.--(1) The Secretary of Defense may use the 
     proceeds from the adjustments or surcharges authorized by 
     subsection (a) only--
       ``(A) to acquire (including acquisition by lease), 
     construct, convert, expand, improve, repair, maintain, and 
     equip the physical infrastructure of commissary stores and 
     central product processing facilities of the defense 
     commissary system; and
       ``(B) to cover environmental evaluation and construction 
     costs related to activities described in paragraph (1), 
     including costs for surveys, administration, overhead, 
     planning, and design.
       ``(2) In paragraph (1), the term `physical infrastructure' 
     includes real property, utilities, and equipment (installed 
     and free standing and including computer equipment), 
     necessary to provide a complete and usable commissary store 
     or central product processing facility.''.
       (b) Authority of Secretary of Defense.--Such section is 
     further amended--
       (1) in subsection (a), by striking ``Secretary of a 
     military department, under regulations established by him and 
     approved by the Secretary of Defense,'' and inserting 
     ``Secretary of Defense'';
       (2) in subsection (c)--
       (A) by striking ``Secretary of a military department, with 
     the approval of the Secretary of Defense and'' and inserting 
     ``Secretary of Defense, with the approval of''; and
       (B) by striking ``Secretary of the military department 
     determines'' and inserting ``Secretary determines''; and
       (3) in subsection (d)(1), by striking ``Secretary of a 
     military department'' and inserting ``Secretary of Defense''.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2001.

     SEC. 334. INCLUSION OF MAGAZINES AND OTHER PERIODICALS AS AN 
                   AUTHORIZED COMMISSARY MERCHANDISE CATEGORY.

       (a) Additional Authorized Category.--Subsection (b) of 
     section 2486 of title 10, United States Code, is amended--
       (1) by redesignating paragraph (11) as paragraph (12); and
       (2) by inserting after paragraph (10) the following new 
     paragraph:
       ``(11) Magazines and other periodicals.''.
       (b) Conforming Amendments.--Subsection (f) of such section 
     is amended--
       (1) by striking ``(1)'' before ``Notwithstanding'';
       (2) by striking ``items in the merchandise categories 
     specified in paragraph (2)'' and inserting ``tobacco 
     products''; and
       (3) by striking paragraph (2).

     SEC. 335. USE OF MOST ECONOMICAL DISTRIBUTION METHOD FOR 
                   DISTILLED SPIRITS.

       Section 2488(c) of title 10, United States Code, is 
     amended--
       (1) by striking paragraph (2); and
       (2) by redesignating paragraph (3) as paragraph (2).

     SEC. 336. REPORT ON EFFECTS OF AVAILABILITY OF SLOT MACHINES 
                   ON UNITED STATES MILITARY INSTALLATIONS 
                   OVERSEAS.

       (a) Report Required.--Not later than March 31, 2001, the 
     Secretary of Defense shall submit to Congress a report 
     evaluating the effect that the ready availability of slot 
     machines as a morale, welfare, and recreation activity on 
     United States military installations outside of the United 
     States has on members of the Armed Forces, their dependents, 
     and other persons who use such slot machines, the morale of 
     military communities overseas, and the personal financial 
     stability of members of the Armed Forces.
       (b) Matters To Be Included.--The Secretary shall include in 
     the report--
       (1) an estimate of the number of persons who used such slot 
     machines during the preceding two years and, of such persons, 
     the percentage who were enlisted members (shown both in the 
     aggregate and by pay grade), officers (shown both in the 
     aggregate and by pay grade), Department of Defense civilians, 
     other United States persons, and foreign nationals;
       (2) to the extent feasible, information with respect to 
     military personnel referred to in paragraph (1) showing the 
     number (as a percentage and by pay grade) who have--
       (A) sought financial services counseling at least partially 
     due to the use of such slot machines;
       (B) qualified for Government financial assistance at least 
     partially due to the use of such slot machines; or
       (C) had a personal check returned for insufficient funds or 
     received any other nonpayment notification from a creditor at 
     least partially due to the use of such slot machines; and
       (3) to the extent feasible, information with respect to the 
     average amount expended by each category of persons referred 
     to in paragraph (1) in using such slot machines per visit, to 
     be shown by pay grade in the case of military personnel.
        Subtitle D--Department of Defense Industrial Facilities

     SEC. 341. DESIGNATION OF CENTERS OF INDUSTRIAL AND TECHNICAL 
                   EXCELLENCE AND PUBLIC-PRIVATE PARTNERSHIPS TO 
                   INCREASE UTILIZATION OF SUCH CENTERS.

       (a) Designation Method.--Subsection (a) of section 2474 of 
     title 10, United States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``The Secretary of Defense'' and inserting 
     ``The Secretary concerned, or the Secretary of Defense in the 
     case of a Defense Agency,''; and
       (B) by striking ``of the activity'' and inserting ``of the 
     designee'';
       (2) in paragraph (2)--
       (A) by inserting ``of Defense'' after ``The Secretary''; 
     and
       (B) by striking ``depot-level activities'' and inserting 
     ``Centers of Industrial and Technical Excellence''; and
       (3) in paragraph (3)--
       (A) by striking ``depot-level operations'' and inserting 
     ``operations at Centers of Industrial and Technical 
     Excellence'';
       (B) by striking ``depot-level activities'' and inserting 
     ``the Centers''; and
       (C) by striking ``such activities'' and inserting ``the 
     Centers''.
       (b) Public-Private Partnerships.--Subsection (b) of such 
     section is amended to read as follows:
       ``(b) Public-Private Partnerships.--(1) To achieve one or 
     more objectives set forth in paragraph (2), the Secretary 
     designating a Center of

[[Page 21373]]

     Industrial and Technical Excellence under subsection (a) may 
     authorize and encourage the head of the Center to enter into 
     public-private cooperative arrangements (in this section 
     referred to as a `public-private partnership') to provide for 
     any of the following:
       ``(A) For employees of the Center, private industry, or 
     other entities outside the Department of Defense to perform 
     (under contract, subcontract, or otherwise) work related to 
     the core competencies of the Center, including any depot-
     level maintenance and repair work that involves one or more 
     core competencies of the Center.
       ``(B) For private industry or other entities outside the 
     Department of Defense to use, for any period of time 
     determined to be consistent with the needs of the Department 
     of Defense, any facilities or equipment of the Center that 
     are not fully utilized for a military department's own 
     production or maintenance requirements.
       ``(2) The objectives for exercising the authority provided 
     in paragraph (1) are as follows:
       ``(A) To maximize the utilization of the capacity of a 
     Center of Industrial and Technical Excellence.
       ``(B) To reduce or eliminate the cost of ownership of a 
     Center by the Department of Defense in such areas of 
     responsibility as operations and maintenance and 
     environmental remediation.
       ``(C) To reduce the cost of products of the Department of 
     Defense produced or maintained at a Center.
       ``(D) To leverage private sector investment in--
       ``(i) such efforts as plant and equipment recapitalization 
     for a Center; and
       ``(ii) the promotion of the undertaking of commercial 
     business ventures at a Center.
       ``(E) To foster cooperation between the armed forces and 
     private industry.
       ``(3) If the Secretary concerned, or the Secretary of 
     Defense in the case of a Defense Agency, authorizes the use 
     of public-private partnerships under this subsection, the 
     Secretary shall submit to Congress a report evaluating the 
     need for loan guarantee authority, similar to the ARMS 
     Initiative loan guarantee program under section 4555 of this 
     title, to facilitate the establishment of public-private 
     partnerships and the achievement of the objectives set forth 
     in paragraph (2).''.
       (c) Private Sector Use of Excess Capacity.--Such section is 
     further amended--
       (1) by striking subsection (d);
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Private Sector Use of Excess Capacity.--Any 
     facilities or equipment of a Center of Industrial and 
     Technical Excellence made available to private industry may 
     be used to perform maintenance or to produce goods in order 
     to make more efficient and economical use of Government-owned 
     industrial plants and encourage the creation and preservation 
     of jobs to ensure the availability of a workforce with the 
     necessary manufacturing and maintenance skills to meet the 
     needs of the armed forces.''.
       (d) Crediting of Amounts for Performance.--Subsection (d) 
     of such section, as redesignated by subsection (c)(2), is 
     amended by adding at the end the following new sentences: 
     ``Consideration in the form of rental payments or 
     (notwithstanding section 3302(b) of title 31) in other forms 
     may be accepted for a use of property accountable under a 
     contract performed pursuant to this section. Notwithstanding 
     section 2667(d) of this title, revenues generated pursuant to 
     this section shall be available for facility operations, 
     maintenance, and environmental restoration at the Center 
     where the leased property is located.''.
       (e) Availability of Excess Equipment to Private-Sector 
     Partners.--Such section is further amended by adding at the 
     end the following new subsections:
       ``(e) Availability of Excess Equipment to Private-Sector 
     Partners.--Equipment or facilities of a Center of Industrial 
     and Technical Excellence may be made available for use by a 
     private-sector entity under this section only if--
       ``(1) the use of the equipment or facilities will not have 
     a significant adverse effect on the readiness of the armed 
     forces, as determined by the Secretary concerned or, in the 
     case of a Center in a Defense Agency, by the Secretary of 
     Defense; and
       ``(2) the private-sector entity agrees--
       ``(A) to reimburse the Department of Defense for the direct 
     and indirect costs (including any rental costs) that are 
     attributable to the entity's use of the equipment or 
     facilities, as determined by that Secretary; and
       ``(B) to hold harmless and indemnify the United States 
     from--
       ``(i) any claim for damages or injury to any person or 
     property arising out of the use of the equipment or 
     facilities, except in a case of willful conduct or gross 
     negligence; and
       ``(ii) any liability or claim for damages or injury to any 
     person or property arising out of a decision by the Secretary 
     concerned or the Secretary of Defense to suspend or terminate 
     that use of equipment or facilities during a war or national 
     emergency.
       ``(f) Construction of Provision.--Nothing in this section 
     may be construed to authorize a change, otherwise prohibited 
     by law, from the performance of work at a Center of 
     Industrial and Technical Excellence by Department of Defense 
     personnel to performance by a contractor.''.
       (f) Use of Working Capital-Funded Facilities.--Section 
     2208(j)(1) of title 10, United States Code, is amended--
       (1) by striking ``contract; and'' at the end of 
     subparagraph (A) and all that follows through ``(B) the 
     solicitation'' and inserting ``contract, and the 
     solicitation'';
       (2) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) the Secretary would advance the objectives set forth 
     in section 2474(b)(2) of this title by authorizing the 
     facility to do so.''.
       (g) Repeal of General Authority To Lease Excess Depot-Level 
     Equipment and Facilities to Outside Tenants.--(1) Section 
     2471 of title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 146 
     of such title is amended by striking the item relating to 
     section 2471.

     SEC. 342. UNUTILIZED AND UNDERUTILIZED PLANT-CAPACITY COSTS 
                   OF UNITED STATES ARSENALS.

       (a) Treatment of Unutilized and Underutilized Plant-
     Capacity Costs.--Chapter 433 of title 10, United States Code, 
     is amended by inserting after section 4540 the following new 
     section:

     ``Sec. 4541. Army arsenals: treatment of unutilized or 
       underutilized plant-capacity costs

       ``(a) Estimate of Costs.--The Secretary of the Army shall 
     include in the budget justification documents submitted to 
     Congress in support of the President's budget for a fiscal 
     year submitted under section 1105 of title 31 an estimate of 
     the funds to be required in that fiscal year to cover 
     unutilized and underutilized plant-capacity costs at Army 
     arsenals.
       ``(b) Use of Funds.--Funds appropriated to the Secretary of 
     the Army for a fiscal year to cover unutilized and 
     underutilized plant-capacity costs at Army arsenals shall be 
     used in such fiscal year only for such costs.
       ``(c) Treatment of Costs.--(1) The Secretary of the Army 
     shall not include unutilized and underutilized plant-capacity 
     costs when evaluating the bid of an Army arsenal for purposes 
     of the arsenal's contracting to provide a good or service to 
     a Government agency.
       ``(2) When an Army arsenal is serving as a subcontractor to 
     a private-sector entity with respect to a good or service to 
     be provided to a Government agency, the cost charged by the 
     arsenal shall not include unutilized and underutilized plant-
     capacity costs that are funded by a direct appropriation.
       ``(d) Definitions.--In this section:
       ``(1) The term `Army arsenal' means a Government-owned, 
     Government-operated defense plant of the Department of the 
     Army that manufactures weapons, weapon components, or both.
       ``(2) The term `unutilized and underutilized plant-capacity 
     costs' means the costs associated with operating and 
     maintaining the facilities and equipment of an Army arsenal 
     that the Secretary of the Army determines are required to be 
     kept for mobilization needs, in those months in which the 
     facilities and equipment are not used or are used only 20 
     percent or less of available work days.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 4540 the following new item:

``4541. Army arsenals: treatment of unutilized or underutilized plant-
              capacity costs.''.

     SEC. 343. ARSENAL SUPPORT PROGRAM INITIATIVE.

       (a) Demonstration Program Required.--To help maintain the 
     viability of the Army manufacturing arsenals and the unique 
     capabilities of these arsenals to support the national 
     security interests of the United States, the Secretary of the 
     Army shall carry out a demonstration program under this 
     section during fiscal years 2001 and 2002 at each 
     manufacturing arsenal of the Department of the Army.
       (b) Purposes of Demonstration Program.--The purposes of the 
     demonstration program are as follows:
       (1) To provide for the utilization of the existing skilled 
     workforce at the Army manufacturing arsenals by commercial 
     firms.
       (2) To provide for the reemployment and retraining of 
     skilled workers who, as a result of declining workload and 
     reduced Army spending on arsenal production requirements at 
     these Army arsenals, are idled or underemployed.
       (3) To encourage commercial firms, to the maximum extent 
     practicable, to use these Army arsenals for commercial 
     purposes.
       (4) To increase the opportunities for small businesses 
     (including socially and economically disadvantaged small 
     business concerns and new small businesses) to use these Army 
     arsenals for those purposes.
       (5) To maintain in the United States a work force having 
     the skills in manufacturing processes that are necessary to 
     meet industrial emergency planned requirements for national 
     security purposes.
       (6) To demonstrate innovative business practices, to 
     support Department of Defense acquisition reform, and to 
     serve as both a model and a laboratory for future defense 
     conversion initiatives of the Department of Defense.
       (7) To the maximum extent practicable, to allow the 
     operation of these Army arsenals to be rapidly responsive to 
     the forces of free market competition.
       (8) To reduce or eliminate the cost of Government ownership 
     of these Army arsenals, including the costs of operations and 
     maintenance, the costs of environmental remediation, and 
     other costs.

[[Page 21374]]

       (9) To reduce the cost of products of the Department of 
     Defense produced at these Army arsenals.
       (10) To leverage private investment at these Army arsenals 
     through long-term facility use contracts, property management 
     contracts, leases, or other agreements that support and 
     advance the demonstration program for the following 
     activities:
       (A) Recapitalization of plant and equipment.
       (B) Environmental remediation.
       (C) Promotion of commercial business ventures.
       (D) Other activities approved by the Secretary of the Army.
       (11) To foster cooperation between the Department of the 
     Army, property managers, commercial interests, and State and 
     local agencies in the implementation of sustainable 
     development strategies and investment in these Army arsenals.
       (c) Contract Authority.--(1) In the case of each Army 
     manufacturing arsenal, the Secretary of the Army may enter 
     into contracts with commercial firms to authorize the 
     contractors, consistent with section 4543 of title 10, United 
     States Code--
       (A) to use the arsenal, or a portion of the arsenal, and 
     the skilled workforce at the arsenal to manufacture weapons, 
     weapon components, or related products consistent with the 
     purposes of the program; and
       (B) to enter into subcontracts for the commercial use of 
     the arsenal consistent with such purposes.
       (2) A contract under paragraph (1) shall require the 
     contractor to contribute toward the operation and maintenance 
     of the Army manufacturing arsenal covered by the contract.
       (3) In the event an Army manufacturing arsenal is converted 
     to contractor operation, the Secretary may enter into a 
     contract with the contractor to authorize the contractor, 
     consistent with section 4543 of title 10, United States 
     Code--
       (A) to use the facility during the period of the program in 
     a manner consistent with the purposes of the program; and
       (B) to enter into subcontracts for the commercial use of 
     the facility consistent with such purposes.
       (d) Loan Guarantees.--(1) Subject to paragraph (2), the 
     Secretary of the Army may guarantee the repayment of any loan 
     made to a commercial firm to fund, in whole or in part, the 
     establishment of a commercial activity at an Army 
     manufacturing arsenal under this section.
       (2) Loan guarantees under this subsection may not be 
     committed except to the extent that appropriations of budget 
     authority to cover their costs are made in advance, as 
     required by section 504 of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661c).
       (3) The Secretary of the Army may enter into agreements 
     with the Administrator of the Small Business Administration 
     or the Administrator of the Farmers Home Administration, the 
     Administrator of the Rural Development Administration, or the 
     head of other appropriate agencies of the Department of 
     Agriculture, under which such Administrators may, under this 
     subsection--
       (A) process applications for loan guarantees;
       (B) guarantee repayment of loans; and
       (C) provide any other services to the Secretary of the Army 
     to administer this subsection.
       (4) An Administrator referred to in paragraph (3) may 
     guarantee loans under this section to commercial firms of any 
     size, notwithstanding any limitations on the size of 
     applicants imposed on other loan guarantee programs that the 
     Administrator administers. To the extent practicable, each 
     Administrator shall use the same procedures for processing 
     loan guarantee applications under this subsection as the 
     Administrator uses for processing loan guarantee applications 
     under other loan guarantee programs that the Administrator 
     administers.
       (e) Loan Limits.--The maximum amount of loan principal 
     guaranteed during a fiscal year under subsection (d) may not 
     exceed--
       (1) $20,000,000, with respect to any single borrower; and
       (2) $320,000,000 with respect to all borrowers.
       (f) Transfer of Funds.--The Secretary of the Army may 
     transfer to an Administrator providing services under 
     subsection (d), and the Administrator may accept, such funds 
     as may be necessary to administer loan guarantees under such 
     subsection.
       (g) Reporting Requirements.--(1) Not later than July 1 of 
     each year in which a guarantee issued under subsection (d) is 
     in effect, the Secretary of the Army shall submit to Congress 
     a report specifying the amounts of loans guaranteed under 
     such subsection during the preceding calendar year. No report 
     is required after fiscal year 2002.
       (2) Not later than July 1, 2001, the Secretary of the Army 
     shall submit to the congressional defense committees a report 
     on the implementation of the demonstration program. The 
     report shall contain a comprehensive review of contracting at 
     the Army manufacturing arsenals covered by the program and 
     such recommendations as the Secretary considers appropriate 
     regarding changes to the program.

     SEC. 344. CODIFICATION AND IMPROVEMENT OF ARMAMENT RETOOLING 
                   AND MANUFACTURING SUPPORT PROGRAMS.

       (a) In General.--(1) Part IV of subtitle B of title 10, 
     United States Code, is amended by inserting after chapter 433 
     the following new chapter:

                ``CHAPTER 434--ARMAMENTS INDUSTRIAL BASE

``Sec.
``4551. Definitions.
``4552. Policy.
``4553. Armament Retooling and Manufacturing Support Initiative.
``4554. Property management contracts and leases.
``4555. ARMS Initiative loan guarantee program.

     ``Sec. 4551. Definitions

       ``In this chapter:
       ``(1) The term `ARMS Initiative' means the Armament 
     Retooling and Manufacturing Support Initiative authorized by 
     this chapter.
       ``(2) The term `eligible facility' means a Government-
     owned, contractor-operated ammunition manufacturing facility 
     of the Department of the Army that is in an active, inactive, 
     layaway, or caretaker status.
       ``(3) The term `property manager' includes any person or 
     entity managing an eligible facility made available under the 
     ARMS Initiative through a property management contract.
       ``(4) The term `property management contract' includes 
     facility use contracts, site management contracts, leases, 
     and other agreements entered into under the authority of this 
     chapter.
       ``(5) The term `Secretary' means the Secretary of the Army.

     ``Sec. 4552. Policy

       ``It is the policy of the United States--
       ``(1) to encourage, to the maximum extent practicable, 
     commercial firms to use Government-owned, contractor-operated 
     ammunition manufacturing facilities of the Department of the 
     Army;
       ``(2) to use such facilities for supporting programs, 
     projects, policies, and initiatives that promote competition 
     in the private sector of the United States economy and that 
     advance United States interests in the global marketplace;
       ``(3) to increase the manufacture of products inside the 
     United States;
       ``(4) to support policies and programs that provide 
     manufacturers with incentives to assist the United States in 
     making more efficient and economical use of eligible 
     facilities for commercial purposes;
       ``(5) to provide, as appropriate, small businesses 
     (including socially and economically disadvantaged small 
     business concerns and new small businesses) with incentives 
     that encourage those businesses to undertake manufacturing 
     and other industrial processing activities that contribute to 
     the prosperity of the United States;
       ``(6) to encourage the creation of jobs through increased 
     investment in the private sector of the United States 
     economy;
       ``(7) to foster a more efficient, cost-effective, and 
     adaptable armaments industry in the United States;
       ``(8) to achieve, with respect to armaments manufacturing 
     capacity, an optimum level of readiness of the national 
     technology and industrial base within the United States that 
     is consistent with the projected threats to the national 
     security of the United States and the projected emergency 
     requirements of the armed forces; and
       ``(9) to encourage facility use contracting where feasible.

     ``Sec. 4553. Armament Retooling and Manufacturing Support 
       Initiative

       ``(a) Authority for Initiative.--The Secretary may carry 
     out a program to be known as the `Armament Retooling and 
     Manufacturing Support Initiative'.
       ``(b) Purposes.--The purposes of the ARMS Initiative are as 
     follows:
       ``(1) To encourage commercial firms, to the maximum extent 
     practicable, to use eligible facilities for commercial 
     purposes.
       ``(2) To increase the opportunities for small businesses 
     (including socially and economically disadvantaged small 
     business concerns and new small businesses) to use eligible 
     facilities for those purposes.
       ``(3) To maintain in the United States a work force having 
     the skills in manufacturing processes that are necessary to 
     meet industrial emergency planned requirements for national 
     security purposes.
       ``(4) To demonstrate innovative business practices, to 
     support Department of Defense acquisition reform, and to 
     serve as both a model and a laboratory for future defense 
     conversion initiatives of the Department of Defense.
       ``(5) To the maximum extent practicable, to allow the 
     operation of eligible facilities to be rapidly responsive to 
     the forces of free market competition.
       ``(6) To reduce or eliminate the cost of Government 
     ownership of eligible facilities, including the costs of 
     operations and maintenance, the costs of environmental 
     remediation, and other costs.
       ``(7) To reduce the cost of products of the Department of 
     Defense produced at eligible facilities.
       ``(8) To leverage private investment at eligible facilities 
     through long-term facility use contracts, property management 
     contracts, leases, or other agreements that support and 
     advance the policies and purposes of this chapter, for the 
     following activities:
       ``(A) Recapitalization of plant and equipment.
       ``(B) Environmental remediation.
       ``(C) Promotion of commercial business ventures.
       ``(D) Other activities approved by the Secretary.
       ``(9) To foster cooperation between the Department of the 
     Army, property managers, commercial interests, and State and 
     local agencies in the implementation of sustainable 
     development strategies and investment in eligible facilities 
     made available for purposes of the ARMS Initiative.

[[Page 21375]]

       ``(10) To reduce or eliminate the cost of asset disposal 
     that would be incurred if property at an eligible facility 
     was declared excess to the needs of the Department of the 
     Army.
       ``(c) Availability of Facilities.--The Secretary may make 
     any eligible facility available for the purposes of the ARMS 
     Initiative.
       ``(d) Consideration for Leases.--Section 321 of the Act of 
     June 30, 1932 (40 U.S.C. 303b), shall not apply to uses of 
     property or facilities in accordance with the ARMS 
     Initiative.
       ``(e) Program Support.--(1) Funds appropriated for purposes 
     of the ARMS Initiative may be used for administrative support 
     and management.
       ``(2) A full annual accounting of such expenses for each 
     fiscal year shall be provided to the Committee on Armed 
     Services and the Committee on Appropriations of the Senate 
     and the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives not later than 
     March 30 of the following fiscal year.

     ``Sec. 4554. Property management contracts and leases

       ``(a) In General.--In the case of each eligible facility 
     that is made available for the ARMS Initiative, the 
     Secretary--
       ``(1) shall make full use of facility use contracts, 
     leases, and other such commercial contractual instruments as 
     may be appropriate;
       ``(2) shall evaluate, on the basis of efficiency, cost, 
     emergency mobilization requirements, and the goals and 
     purposes of the ARMS Initiative, the procurement of services 
     from the property manager, including maintenance, operation, 
     modification, infrastructure, environmental restoration and 
     remediation, and disposal of ammunition manufacturing assets, 
     and other services; and
       ``(3) may, in carrying out paragraphs (1) and (2)--
       ``(A) enter into contracts, and provide for subcontracts, 
     for terms up to 25 years, as the Secretary considers 
     appropriate and consistent with the needs of the Department 
     of the Army and the goals and purposes of the ARMS 
     Initiative; and
       ``(B) use procedures that are authorized to be used under 
     section 2304(c)(5) of this title when the contractor or 
     subcontractor is a source specified in law.
       ``(b) Consideration for Use.--(1) To the extent provided in 
     a contract entered into under this section for the use of 
     property at an eligible facility that is accountable under 
     the contract, the Secretary may accept consideration for such 
     use that is, in whole or in part, in a form other than--
       ``(A) rental payments; or
       ``(B) revenue generated at the facility.
       ``(2) Forms of consideration acceptable under paragraph (1) 
     for a use of an eligible facility or any property at an 
     eligible facility include the following:
       ``(A) The improvement, maintenance, protection, repair, and 
     restoration of the facility, the property, or any property 
     within the boundaries of the installation where the facility 
     is located.
       ``(B) Reductions in overhead costs.
       ``(C) Reductions in product cost.
       ``(3) The authority under paragraph (1) may be exercised 
     without regard to section 3302(b) of title 31 and any other 
     provision of law.

     ``Sec. 4555. ARMS Initiative loan guarantee program

       ``(a) Program Authorized.--Subject to subsection (b), the 
     Secretary may carry out a loan guarantee program to encourage 
     commercial firms to use eligible facilities under this 
     chapter. Under any such program, the Secretary may guarantee 
     the repayment of any loan made to a commercial firm to fund, 
     in whole or in part, the establishment of a commercial 
     activity to use an eligible facility under this chapter.
       ``(b) Advanced Budget Authority.--Loan guarantees under 
     this section may not be committed except to the extent that 
     appropriations of budget authority to cover their costs are 
     made in advance, as required by section 504 of the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661c).
       ``(c) Program Administration.--(1) The Secretary may enter 
     into an agreement with any of the officials named in 
     paragraph (2) under which that official may, for the purposes 
     of this section--
       ``(A) process applications for loan guarantees;
       ``(B) guarantee repayment of loans; and
       ``(C) provide any other services to the Secretary to 
     administer the loan guarantee program.
       ``(2) The officials referred to in paragraph (1) are as 
     follows:
       ``(A) The Administrator of the Small Business 
     Administration.
       ``(B) The head of any appropriate agency in the Department 
     of Agriculture, including--
       ``(i) the Administrator of the Farmers Home Administration; 
     and
       ``(ii) the Administrator of the Rural Development 
     Administration.
       ``(3) Each official authorized to do so under an agreement 
     entered into under paragraph (1) may guarantee loans under 
     this section to commercial firms of any size, notwithstanding 
     any limitations on the size of applicants imposed on other 
     loan guarantee programs that the official administers.
       ``(4) To the extent practicable, each official processing 
     loan guarantee applications under this section pursuant to an 
     agreement entered into under paragraph (1) shall use the same 
     processing procedures as the official uses for processing 
     loan guarantee applications under other loan guarantee 
     programs that the official administers.
       ``(d) Loan Limits.--The maximum amount of loan principal 
     guaranteed during a fiscal year under this section may not 
     exceed--
       ``(1) $20,000,000, with respect to any single borrower; and
       ``(2) $320,000,000 with respect to all borrowers.
       ``(e) Transfer of Funds.--The Secretary may transfer to an 
     official providing services under subsection (c), and that 
     official may accept, such funds as may be necessary to 
     administer the loan guarantee program under this section.''.
       (2) The tables of chapters at the beginning of subtitle B 
     of such title and at the beginning of part IV of such 
     subtitle are amended by inserting after the item relating to 
     chapter 433 the following new item:

``434. Armaments Industrial Base............................4551''.....

       (b) Implementation Report.--Not later than July 1, 2001, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report on the procedures and controls 
     implemented to carry out section 4554 of title 10, United 
     States Code, as added by subsection (a).
       (c) Relationship to National Defense Technology and 
     Industrial Base.--(1) Subchapter IV of chapter 148 of title 
     10, United States Code, is amended--
       (A) by redesignating section 2525 as section 2521; and
       (B) by adding at the end the following new section:

     ``Sec. 2522. Armament retooling and manufacturing

       ``The Secretary of the Army is authorized by chapter 434 of 
     this title to carry out programs for the support of armaments 
     retooling and manufacturing in the national defense 
     industrial and technology base.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by striking the item relating to 
     section 2525 and inserting the following new items:

``2521. Manufacturing Technology Program.
``2522. Armament retooling and manufacturing.''.

       (d) Repeal of Superseded Law.--The Armament Retooling and 
     Manufacturing Support Act of 1992 (subtitle H of title I of 
     Public Law 102-484; 10 U.S.C. 2501 note) is repealed.
     Subtitle E--Performance of Functions by Private-Sector Sources

     SEC. 351. INCLUSION OF ADDITIONAL INFORMATION IN REPORTS TO 
                   CONGRESS REQUIRED BEFORE CONVERSION OF 
                   COMMERCIAL OR INDUSTRIAL TYPE FUNCTIONS TO 
                   CONTRACTOR PERFORMANCE.

       (a) Information Required Before Commencement of Conversion 
     Analysis.--Subsection (b)(1)(D) of section 2461 of title 10, 
     United States Code, is amended by inserting before the period 
     the following: ``, and a specific identification of the 
     budgetary line item from which funds will be used to cover 
     the cost of the analysis''.
       (b) Information Required in Notification of Decision.--
     Subsection (c)(1) of such section is amended--
       (1) by redesignating subparagraphs (A), (B), (C), (D), and 
     (E) as subparagraphs (B), (C), (F), (H), and (I), 
     respectively;
       (2) by inserting before subparagraph (B), as so 
     redesignated, the following new subparagraph:
       ``(A) The date when the analysis of that commercial or 
     industrial type function for possible change to performance 
     by the private sector was commenced.'';
       (3) by inserting after subparagraph (C), as so 
     redesignated, the following new subparagraphs:
       ``(D) The number of Department of Defense civilian 
     employees who were performing the function when the analysis 
     was commenced, the number of such employees whose employment 
     was terminated or otherwise affected in implementing the most 
     efficient organization of the function, and the number of 
     such employees whose employment would be terminated or 
     otherwise affected by changing to performance of the function 
     by the private sector.
       ``(E) The Secretary's certification that the factors 
     considered in the examinations performed under subsection 
     (b)(3), and in the making of the decision to change 
     performance, did not include any predetermined personnel 
     constraint or limitation in terms of man years, end strength, 
     full-time equivalent positions, or maximum number of 
     employees.''; and
       (4) by inserting after subparagraph (F), as so 
     redesignated, the following new subparagraph:
       ``(G) A statement of the potential economic effect of the 
     change on each affected local community, as determined in the 
     examination under subsection (b)(3)(B)(ii).''.

     SEC. 352. EFFECTS OF OUTSOURCING ON OVERHEAD COSTS OF CENTERS 
                   OF INDUSTRIAL AND TECHNICAL EXCELLENCE AND ARMY 
                   AMMUNITION PLANTS.

       Section 2461(c) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) If the commercial or industrial type function to be 
     changed to performance by the private sector is performed at 
     a Center of Industrial and Technical Excellence designated 
     under section 2474(a) of this title or an Army ammunition 
     plant--
       ``(A) the report required by this subsection shall also 
     include a description of the effect that the performance and 
     administration of the resulting contract will have on the 
     overhead costs

[[Page 21376]]

     of the center or ammunition plant, as the case may be; and
       ``(B) notwithstanding paragraph (3), the change of the 
     function to contractor performance may not begin until at 
     least 60 days after the submission of the report.''.

     SEC. 353. CONSOLIDATION, RESTRUCTURING, OR REENGINEERING OF 
                   DEPARTMENT OF DEFENSE ORGANIZATIONS, FUNCTIONS, 
                   OR ACTIVITIES.

       (a) In General.--Chapter 146 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2475. Consolidation, restructuring, or reengineering 
       of organizations, functions, or activities: notification 
       requirements

       ``(a) Requirement To Submit Plan Annually--Concurrently 
     with the submission of the President's annual budget request 
     under section 1105 of title 31, the Secretary of Defense 
     shall submit to Congress each Strategic Sourcing Plan of 
     Action for the Department of Defense (as identified in the 
     Department of Defense Interim Guidance dated February 29, 
     2000, or any successor Department of Defense guidance or 
     directive), for the following year.
       ``(b) Notification of Decision To Execute Plan.--If a 
     decision is made to consolidate, restructure, or reengineer 
     an organization, function, or activity of the Department of 
     Defense pursuant to a Strategic Sourcing Plan of Action 
     described in subsection (a), and such consolidation, 
     restructuring, or reengineering would result in a manpower 
     reduction affecting 50 or more personnel of the Department of 
     Defense (including military and civilian personnel)--
       ``(1) the Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report describing that decision, 
     including--
       ``(A) a projection of the savings that will be realized as 
     a result of the consolidation, restructuring, or 
     reengineering, compared with the cost incurred by the 
     Department of Defense to perform the function or to operate 
     the organization or activity prior to such proposed 
     consolidation, restructuring, or reengineering;
       ``(B) a description of all missions, duties, or military 
     requirements that will be affected as a result of the 
     decision to consolidate, restructure, or reengineer the 
     organization, function, or activity that was analyzed;
       ``(C) the Secretary's certification that the consolidation, 
     restructuring, or reengineering will not result in any 
     diminution of military readiness;
       ``(D) a schedule for performing the consolidation, 
     restructuring, or reengineering; and
       ``(E) the Secretary's certification that the entire 
     analysis for the consolidation, restructuring, or 
     reengineering is available for examination; and
       ``(2) the head of the Defense Agency or the Secretary of 
     the military department concerned may not implement the plan 
     until 30 days after the date that the agency head or 
     Secretary submits notification to the Committees on Armed 
     Services of the Senate and House of Representatives of the 
     intent to carry out such plan.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2475. Consolidation, restructuring, or reengineering of 
              organizations, functions, or activities: notification 
              requirements.''.

     SEC. 354. MONITORING OF SAVINGS RESULTING FROM WORKFORCE 
                   REDUCTIONS AS PART OF CONVERSION OF FUNCTIONS 
                   TO PERFORMANCE BY PRIVATE SECTOR OR OTHER 
                   STRATEGIC SOURCING INITIATIVES.

       (a) Requirement for a Monitoring System.--Chapter 146 of 
     title 10, United States Code, is amended by inserting after 
     section 2461 the following new section:

     ``Sec. 2461a. Development of system for monitoring cost 
       savings resulting from workforce reductions

       ``(a) Workforce Review Defined.--In this section, the term 
     `workforce review', with respect to a function of the 
     Department of Defense performed by Department of Defense 
     civilian employees, means a review conducted under Office of 
     Management and Budget Circular A-76 (or any successor 
     administrative regulation or policy), the Strategic Sourcing 
     Program Plan of Action (or any successor Department of 
     Defense guidance or directive), or any other authority to 
     determine whether the function--
       ``(1) should be performed by a workforce composed of 
     Department of Defense civilian employees or by a private 
     sector workforce; or
       ``(2) should be reorganized or otherwise reengineered to 
     improve the effeciency or effectiveness of the performance of 
     the function, with a resulting decrease in the number of 
     Department of Defense civilian employees performing the 
     function.
       ``(b) System for Monitoring Performance.--(1) The Secretary 
     of Defense shall establish a system for monitoring the 
     performance, including the cost of performance, of each 
     function of the Department of Defense that, after the date of 
     the enactment of this section, is the subject of a workforce 
     review.
       ``(2) The monitoring system shall be designed to compare 
     the following:
       ``(A) The costs to perform a function before the workforce 
     review to the costs actually incurred to perform the function 
     after implementing the conversion, reorganization, or 
     reengineering actions recommended by the workforce review.
       ``(B) The anticipated savings to the actual savings, if 
     any, resulting from conversion, reorganization, or 
     reengineering actions undertaken in response to the workforce 
     review.
       ``(3) The monitoring of a function shall continue under 
     this section for at least five years after the conversion, 
     reorganization, or reengineering of the function.
       ``(c) Waiver for Certain Workforce Reviews.--Subsection (b) 
     shall not apply to a workforce review that would result in a 
     manpower reduction affecting fewer than 50 Department of 
     Defense civilian employees.
       ``(d) Annual Report.--Not later than February 1 of each 
     fiscal year, the Secretary of Defense shall submit to 
     Congress a report on the results of the monitoring performed 
     under the system established under subsection (b). For each 
     function subject to monitoring during the previous fiscal 
     year, the report shall indicate the following:
       ``(1) The cost of the workforce review.
       ``(2) The cost of performing the function before the 
     workforce review compared to the costs incurred after 
     implementing the conversion, reorganization, or reengineering 
     actions recommended by the workforce review.
       ``(3) The actual savings derived from the implementation of 
     the recommendations of the workforce review, if any, compared 
     to the anticipated savings that were to result from the 
     conversion, reorganization, or reengineering actions.
       ``(e) Consideration in Preparation of Future-Years Defense 
     Program.--In preparing the future-years defense program under 
     section 221 of this title, the Secretary of Defense shall, 
     for the fiscal years covered by the program, estimate and 
     take into account the costs to be incurred and the savings to 
     be derived from the performance of functions by workforces 
     selected in workforce reviews. The Secretary shall consider 
     the results of the monitoring under this section in making 
     the estimates.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2461 the following new item:

``2461a. Development of system for monitoring cost savings resulting 
              from workforce reductions.''.

     SEC. 355. PERFORMANCE OF EMERGENCY RESPONSE FUNCTIONS AT 
                   CHEMICAL WEAPONS STORAGE INSTALLATIONS.

       (a) Restriction on Conversion.--The Secretary of the Army 
     may not convert to contractor performance the emergency 
     response functions of any chemical weapons storage 
     installation that, as of the date of the enactment of this 
     Act, are performed for that installation by employees of the 
     United States until the certification required by subsection 
     (c) has been submitted in accordance with that subsection.
       (b) Covered Installations.--For the purposes of this 
     section, a chemical weapons storage installation is any 
     installation of the Department of Defense on which lethal 
     chemical agents or munitions are stored.
       (c) Certification Requirement.--The Secretary of the Army 
     shall certify in writing to the Committee on Armed Services 
     of the Senate and the Committee on Armed Services of the 
     House of Representatives that, to ensure that there will be 
     no lapse of capability to perform the chemical weapon 
     emergency response mission at a chemical weapons storage 
     installation during any transition to contractor performance 
     of those functions at the installation, the plan for 
     conversion of the performance of those functions--
       (1) is consistent with the recommendation contained in 
     General Accounting Office Report NSIAD-00-88, entitled ``DoD 
     Competitive Sourcing'', dated March 2000;
       (2) provides for a transition to contractor performance of 
     emergency response functions which ensures an adequate 
     transfer of the relevant knowledge and expertise regarding 
     chemical weapon emergency response to the contractor 
     personnel; and
       (3) complies with section 2465 of title 10, United States 
     Code.

     SEC. 356. SUSPENSION OF REORGANIZATION OR RELOCATION OF NAVAL 
                   AUDIT SERVICE.

       (a) Suspension.--During the period specified in subsection 
     (b), the Secretary of the Navy may not commence or continue 
     any consolidation, involuntary transfer, buy-out, or other 
     reduction in force of the workforce of auditors and 
     administrative support personnel of the Naval Audit Service 
     if the consolidation, involuntary transfer, buy-out, or other 
     reduction in force is associated with the reorganization or 
     relocation of the performance of the auditing functions of 
     the Naval Audit Service.
       (b) Duration.--Subsection (a) applies during the period 
     beginning on the date of the enactment of this Act and ending 
     180 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 or relocation of the performance of the 
     auditing functions of the Naval Audit Service, as the case 
     may be.
                Subtitle F--Defense Dependents Education

     SEC. 361. ELIGIBILITY OF DEPENDENTS OF AMERICAN RED CROSS 
                   EMPLOYEES FOR ENROLLMENT IN DEPARTMENT OF 
                   DEFENSE DOMESTIC DEPENDENT SCHOOLS IN PUERTO 
                   RICO.

       Section 2164 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(i) American Red Cross Employee Dependents in Puerto 
     Rico.--(1) The Secretary may authorize the dependent of an 
     American Red Cross employee described in paragraph (2) to 
     enroll in an education program provided by the

[[Page 21377]]

     Secretary pursuant to subsection (a) in Puerto Rico if the 
     American Red Cross agrees to reimburse the Secretary for the 
     educational services so provided.
       ``(2) An employee referred to in paragraph (1) is an 
     American Red Cross employee who--
       ``(A) resides in Puerto Rico; and
       ``(B) performs, on a full-time basis, emergency services on 
     behalf of members of the armed forces.
       ``(3) In determining the dependency status of any person 
     for the purposes of paragraph (1), the Secretary shall apply 
     the same definitions as apply to the determination of such 
     status with respect to Federal employees in the 
     administration of this section.
       ``(4) Subsection (g) shall apply with respect to 
     determining the reimbursement rates for educational services 
     provided pursuant to this subsection. Amounts received as 
     reimbursement for such educational services shall be treated 
     in the same manner as amounts received under subsection 
     (g).''.

     SEC. 362. 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 2001.--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, 2001, the 
     Secretary of Defense shall notify each local educational 
     agency that is eligible for educational agencies assistance 
     for fiscal year 2001 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. 363. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

       (a) Payments.--Subject to subsection (f), the Secretary of 
     Defense shall make a payment for fiscal years after fiscal 
     year 2001, to each local educational agency eligible to 
     receive a payment for a child described in subparagraph 
     (A)(ii), (B), (D)(i) or (D)(ii) of section 8003(a)(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(a)(1)) that serves two or more such children with severe 
     disabilities, for costs incurred in providing a free 
     appropriate public education to each such child.
       (b) Payment Amount.--The amount of the payment under 
     subsection (a) to a local educational agency for a fiscal 
     year for each child referred to in such subsection with a 
     severe disability shall be--
       (1) the payment made on behalf of the child with a severe 
     disability that is in excess of the average per pupil 
     expenditure in the State in which the local educational 
     agency is located; less
       (2) the sum of the funds received by the local educational 
     agency--
       (A) from the State in which the child resides to defray the 
     educational and related services for such child;
       (B) under the Individuals with Disabilities Education Act 
     (20 U.S.C. 1400 et seq.) to defray the educational and 
     related services for such child; and
       (C) from any other source to defray the costs of providing 
     educational and related services to the child which are 
     received due to the presence of a severe disabling condition 
     of such child.
       (c) Exclusions.--No payment shall be made under subsection 
     (a) on behalf of a child with a severe disability whose 
     individual cost of educational and related services does not 
     exceed--
       (1) five times the national or State average per pupil 
     expenditure (whichever is lower), for a child who is provided 
     educational and related services under a program that is 
     located outside the boundaries of the school district of the 
     local educational agency that pays for the free appropriate 
     public education of the student; or
       (2) three times the State average per pupil expenditure, 
     for a child who is provided educational and related services 
     under a program offered by the local educational agency, or 
     within the boundaries of the school district served by the 
     local educational agency.
       (d) Ratable reduction.--If the amount available for a 
     fiscal year for payments under subsection (a) is insufficient 
     to pay the full amount all local educational agencies are 
     eligible to receive under such subsection, the Secretary of 
     Defense shall ratably reduce the amounts of the payments made 
     under such subsection to all local educational agencies by an 
     equal percentage.
       (e) Report.--Each local educational agency desiring a 
     payment under subsection (a) shall report to the Secretary of 
     Defense--
       (1) the number of severely disabled children for which a 
     payment may be made under this section; and
       (2) a breakdown of the average cost, by placement (inside 
     or outside the boundaries of the school district of the local 
     educational agency), of providing education and related 
     services to such children.
       (f) Payments Subject to Appropriation.--Payments shall be 
     made for any period in a fiscal year under this section only 
     to the extent that funds are appropriated specifically for 
     making such payments for that fiscal year.
       (g) Local Educational Agency Defined.--In this section, 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. 364. ASSISTANCE FOR MAINTENANCE, REPAIR, AND RENOVATION 
                   OF SCHOOL FACILITIES THAT SERVE DEPENDENTS OF 
                   MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF 
                   DEFENSE CIVILIAN EMPLOYEES.

       (a) Repair and Renovation Assistance.--(1) During fiscal 
     year 2001, the Secretary of Defense may make a grant to an 
     eligible local educational agency to assist the agency to 
     repair and renovate--
       (A) an impacted school facility that is used by significant 
     numbers of military dependent students; or
       (B) a school facility that was a former Department of 
     Defense domestic dependent elementary or secondary school.
       (2) Authorized repair and renovation projects may include 
     repairs and improvements to an impacted school facility 
     (including the grounds of the facility) designed to ensure 
     compliance with the requirements of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) or local 
     health and safety ordinances, to meet classroom size 
     requirements, or to accommodate school population increases.
       (3) The total amount of assistance provided under this 
     subsection to an eligible local educational agency may not 
     exceed $2,500,000 during fiscal year 2001.
       (b) Maintenance Assistance.--(1) During fiscal year 2001, 
     the Secretary of Defense may make a grant to an eligible 
     local educational agency whose boundaries are the same as a 
     military installation to assist the agency to maintain an 
     impacted school facility, including the grounds of such a 
     facility.
       (2) The total amount of assistance provided under this 
     subsection to an eligible local educational agency may not 
     exceed $250,000 during fiscal year 2001.
       (c) Determination of Eligible Local Educational Agencies.--
     (1) A local educational agency is an eligible local 
     educational agency under this section only if the Secretary 
     of Defense determines that the local educational agency has--
       (A) one or more federally impacted school facilities; and
       (B) satisfies at least one of the following eligibility 
     requirements:
       (i) The local educational agency is eligible to receive 
     assistance under subsection (f) of section 8003 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703) and at least 10 percent of the students who were in 
     average daily attendance in the schools of such agency during 
     the preceding school year were students described under 
     paragraph (1)(A) or (1)(B) of section 8003(a) of the 
     Elementary and Secondary Education Act of 1965.
       (ii) At least 35 percent of the students who were in 
     average daily attendance in the schools of the local 
     educational agency during the preceding school year were 
     students described under paragraph (1)(A) or (1)(B) of 
     section 8003(a) of the Elementary and Secondary Education Act 
     of 1965.
       (iii) The State education system and the local educational 
     agency are one and the same.
       (2) A local educational agency is also an eligible local 
     educational agency under this section if the local 
     educational agency has a school facility that was a former 
     Department of Defense domestic dependent elementary or 
     secondary school, but assistance provided under subsection 
     (a) may only be used to repair and renovate that specific 
     facility.
       (d) Notification of Eligibility.--Not later than April 30, 
     2001, the Secretary of Defense shall notify each local 
     educational agency identified under subsection (c) that the 
     local educational agency is eligible to apply for a grant 
     under subsection (a), subsection (b), or both subsections.
       (e) Relation to Impact Aid Construction Assistance.--A 
     local education agency that receives a grant under subsection 
     (a) to repair and renovate a school facility may not also 
     receive a payment for school construction under section 8007 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7707) for fiscal year 2001.
       (f) Grant Considerations.--In determining which eligible 
     local educational agencies will receive a grant under this 
     section, the Secretary of Defense shall take into 
     consideration the following conditions and needs at impacted 
     school facilities of eligible local educational agencies:
       (1) The repair or renovation of facilities is needed to 
     meet State mandated class size requirements, including 
     student-teacher ratios and instructional space size 
     requirements.
       (2) There is an increase in the number of military 
     dependent students in facilities of the agency due to 
     increases in unit strength as part of military readiness.
       (3) There are unhoused students on a military installation 
     due to other strength adjustments at military installations.
       (4) The repair or renovation of facilities is needed to 
     address any of the following conditions:

[[Page 21378]]

       (A) The condition of the facility poses a threat to the 
     safety and well-being of students.
       (B) The requirements of the Americans with Disabilities Act 
     of 1990.
       (C) The cost associated with asbestos removal, energy 
     conservation, or technology upgrades.
       (D) Overcrowding conditions as evidenced by the use of 
     trailers and portable buildings and the potential for future 
     overcrowding because of increased enrollment.
       (5) The repair or renovation of facilities is needed to 
     meet any other Federal or State mandate.
       (6) The number of military dependent students as a 
     percentage of the total student population in the particular 
     school facility.
       (7) The age of facility to be repaired or renovated.
       (g) Definitions.--In this section:
       (1) Local educational agency.--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)).
       (2) Impacted school facility.--The term ``impacted school 
     facility'' means a facility of a local educational agency--
       (A) that is used to provide elementary or secondary 
     education at or near a military installation; and
       (B) at which the average annual enrollment of military 
     dependent students is a high percentage of the total student 
     enrollment at the facility, as determined by the Secretary of 
     Defense.
       (3) Military dependent students.--The term ``military 
     dependent students'' means students who are dependents of 
     members of the armed forces or Department of Defense civilian 
     employees.
       (4) Military installation.--The term ``military 
     installation'' has the meaning given that term in section 
     2687(e) of title 10, United States Code.
       (h) Funding Source.--The amount authorized to be 
     appropriated under section 301(25) for Quality of Life 
     Enhancements, Defense-Wide, shall be available to the 
     Secretary of Defense to make grants under this section.
                 Subtitle G--Military Readiness Issues

     SEC. 371. MEASURING CANNIBALIZATION OF PARTS, SUPPLIES, AND 
                   EQUIPMENT UNDER READINESS REPORTING SYSTEM.

       Section 117(c) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(7) Measure, on a quarterly basis, the extent to which 
     units of the armed forces remove serviceable parts, supplies, 
     or equipment from one vehicle, vessel, or aircraft in order 
     to render a different vehicle, vessel, or aircraft 
     operational.''.

     SEC. 372. REPORTING REQUIREMENTS REGARDING TRANSFERS FROM 
                   HIGH-PRIORITY READINESS APPROPRIATIONS.

       (a) Continuation of Reporting Requirements.--Section 483 of 
     title 10, United States Code, is amended by striking 
     subsection (e).
       (b) Level of Detail.--Subsection (c)(2) of such section is 
     amended by inserting before the period the following: ``, 
     including identification of the sources from which funds were 
     transferred into that activity and identification of the 
     recipients of the funds transferred out of that activity''.
       (c) Additional Covered Budget Activities.--Subsection 
     (d)(5) of such section is amended by adding at the end the 
     following new subparagraphs:
       ``(G) Combat Enhancement Forces.
       ``(H) Combat Communications.''.

     SEC. 373. EFFECTS OF WORLDWIDE CONTINGENCY OPERATIONS ON 
                   READINESS OF MILITARY AIRCRAFT AND EQUIPMENT.

       (a) Requirement for Report.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report assessing the 
     effects of worldwide contingency operations on--
       (1) the readiness of aircraft and ground equipment of the 
     Armed Forces; and
       (2) the capability of the Armed Forces to maintain a high 
     level of equipment readiness and to manage a high operating 
     tempo for the aircraft and ground equipment.
       (b) Effects on Aircraft.--With respect to aircraft, the 
     assessment contained in the report shall address the 
     following effects:
       (1) The effects of the contingency operations carried out 
     during fiscal years 1995 through 2000 on the aircraft of each 
     of the Armed Forces in each category of aircraft, as follows:
       (A) Combat tactical aircraft.
       (B) Strategic aircraft.
       (C) Combat support aircraft.
       (D) Combat service support aircraft.
       (2) The types of adverse effects on the aircraft of each of 
     the Armed Forces in each category of aircraft specified in 
     paragraph (1) resulting from contingency operations, as 
     follows:
       (A) Patrolling in no-fly zones over Iraq in Operation 
     Northern Watch and Operation Southern Watch and over the 
     Balkans in Operation Allied Force.
       (B) Air operations in the North Atlantic Treaty 
     Organization air war against Serbia in Operation Sky Anvil, 
     Operation Noble Anvil, and Operation Allied Force.
       (C) Air operations in Operation Shining Hope in Kosovo.
       (D) All other activities within the general context of 
     worldwide contingency operations.
       (3) Any other effects that the Secretary of Defense 
     considers appropriate in carrying out subsection (a).
       (c) Effects on Ground Equipment.--With respect to ground 
     equipment, the assessment contained in the report shall 
     address following effects:
       (1) The effects of the contingency operations carried out 
     during fiscal years 1995 through 2000 on the ground equipment 
     of each of the Armed Forces.
       (2) Any other effects that the Secretary of Defense 
     considers appropriate in carrying out subsection (a).
       (d) Definitions.--In this section:
       (1) The term ``Armed Forces'' means the Army, Navy, Marine 
     Corps, and Air Force.
       (2) The term ``contingency operation'' has the meaning 
     given the term in section 101(a)(13) of title 10, United 
     States Code.

     SEC. 374. IDENTIFICATION OF REQUIREMENTS TO REDUCE BACKLOG IN 
                   MAINTENANCE AND REPAIR OF DEFENSE FACILITIES.

       (a) Report To Address Maintenance and Repair Backlog.--Not 
     later than March 15, 2001, the Secretary of Defense shall 
     submit to Congress a report identifying a list of 
     requirements to reduce the backlog in maintenance and repair 
     needs of facilities and infrastructure under the jurisdiction 
     of the Department of Defense or a military department.
       (b) Elements of Report.--At a minimum, the report shall 
     include or address the following:
       (1) The extent of the work necessary to repair and 
     revitalize facilities and infrastructure, or to demolish and 
     replace unusable facilities, carried as backlog by the 
     Secretary of Defense or the Secretary of a military 
     department.
       (2) Measurable goals, over specified time frames, for 
     addressing all of the identified requirements.
       (3) Expected funding for each military department and 
     Defense Agency to address the identified requirements during 
     the period covered by the most recent future-years defense 
     program submitted to Congress pursuant to section 221 of 
     title 10, United States Code.
       (4) The cost of the current backlog in maintenance and 
     repair for each military department and Defense Agency, which 
     shall be determined using the standard costs to standard 
     facility categories in the Department of Defense Facilities 
     Cost Factors Handbook, shown both in the aggregate and 
     individually for each major military installation.
       (5) The total number of square feet of building space of 
     each military department and DefenseAgency to be demolished 
     or proposed for demolition, shown both in the aggregate and 
     individually for each major military installation.
       (6) The initiatives underway to identify facility and 
     infrastructure requirements at military installation to 
     accommodate new and developing weapons systems and to prepare 
     installations to accommodate these systems.
       (c) Annual Updates.--The Secretary of Defense shall update 
     the report required under subsection (a) annually. The annual 
     updates shall be submitted to Congress at or about the time 
     that the budget is submitted to Congress for a fiscal year 
     under section 1105(a) of title 31, United States Code.

     SEC. 375. NEW METHODOLOGY FOR PREPARING BUDGET REQUESTS TO 
                   SATISFY ARMY READINESS REQUIREMENTS.

       (a) Requirement for New Methodology.--The Secretary of the 
     Army shall develop a new methodology for preparing budget 
     requests for operation and maintenance for the Army that can 
     be used to ensure that the budget requests for operation and 
     maintenance for future fiscal years more accurately reflect 
     the Army's requirements than did the budget requests 
     submitted to Congress for fiscal year 2001 and preceding 
     fiscal years.
       (b) Sense of Congress Regarding New Methodology.--It is the 
     sense of Congress that--
       (1) the methodology required by subsection (a) should 
     provide for the determination of the budget levels to request 
     for operation and maintenance for the Army to be based on--
       (A) the level of training that must be conducted in order 
     for the Army to execute successfully the full range of 
     missions called for in the national defense strategy 
     delineated pursuant to section 118 of title 10, United States 
     Code, at a low-to-moderate level of risk;
       (B) the cost of conducting training at the level of 
     training described in subparagraph (A); and
       (C) the costs of all other Army operations, including the 
     cost of meeting infrastructure requirements; and
       (2) the Secretary of the Army should use the new 
     methodology in the preparation of the budget requests for 
     operation and maintenance for the Army for fiscal years after 
     fiscal year 2001.

     SEC. 376. REVIEW OF AH-64 AIRCRAFT PROGRAM.

       (a) Requirement for Review.--The Comptroller General shall 
     conduct a review of the Army's AH-64 aircraft program to 
     determine--
       (1) whether obsolete spare parts, rather than spare parts 
     for the latest aircraft configuration, are being procured;
       (2) whether there is insufficient sustaining system 
     technical support;
       (3) whether technical data packages and manuals are 
     obsolete;
       (4) whether there are unfunded requirements for airframe 
     and component upgrades; and
       (5) if one or more of the conditions described in the 
     preceding paragraphs exist, whether the readiness of the 
     aircraft is impaired by the conditions.
       (b) Report.--Not later than March 1, 2001, the Comptroller 
     General shall submit to the congressional defense committees 
     a report on the results of the review under subsection (a).

[[Page 21379]]



     SEC. 377. REPORT ON AIR FORCE SPARE AND REPAIR PARTS PROGRAM 
                   FOR C-5 AIRCRAFT.

       (a) Findings.--Congress makes the following findings:
       (1) There exists a significant shortfall in the Nation's 
     current strategic airlift requirement, even though strategic 
     airlift remains critical to the national security strategy of 
     the United States.
       (2) This shortfall results from the slow phase-out of C-141 
     aircraft and their replacement with C-17 aircraft and from 
     lower than optimal reliability rates for the C-5 aircraft.
       (3) One of the primary causes of these reliability rates 
     for C-5 aircraft, and especially for operational unit 
     aircraft, is the shortage of spare repair parts. Over the 
     past 5 years, this shortage has been particularly evident in 
     the C-5 fleet.
       (4) Not Mission Capable for Supply rates for C-5 aircraft 
     have increased significantly in the period between 1997 and 
     1999. At Dover Air Force Base, Delaware, for example, an 
     average of 7 to 9 C-5 aircraft were not available during that 
     period because of a lack of parts.
       (5) Average rates of cannibalization of C-5 aircraft per 
     100 sorties of such aircraft have also increased during that 
     period and are well above the Air Mobility Command standard. 
     In any given month, this means devoting additional manhours 
     to cannibalization of C-5 aircraft. At Dover Air Force Base, 
     for example, an average of 800 to 1,000 additional manhours 
     were required for cannibalization of C-5 aircraft during that 
     period. Cannibalization is often required for aircraft that 
     transit through a base such as Dover Air Force Base, as well 
     as those that are based there.
       (6) High cannibalization rates indicate a significant 
     problem in delivering spare parts in a timely manner and 
     systemic problems within the repair and maintenance process, 
     and also demoralize overworked maintenance crews.
       (7) The C-5 aircraft remains an absolutely critical asset 
     in air mobility and airlifting heavy equipment and personnel 
     to both military contingencies and humanitarian relief 
     efforts around the world.
       (8) Despite increased funding for spare and repair parts 
     and other efforts by the Air Force to mitigate the parts 
     shortage problem, Congress continues to receive reports of 
     significant cannibalization to airworthy C-5 aircraft and 
     parts backlogs.
       (b) Report Required.--Not later than January 1, 2001, and 
     September 30, 2001, the Secretary of the Air Force shall 
     submit to Congress a report on the overall status of the 
     spare and repair parts program of the Air Force for the C-5 
     aircraft.
       (c) Elements of Report.--Each report shall include the 
     following:
       (1) A statement of the funds currently allocated to the 
     acquisition of spare and repair parts for the C-5 aircraft 
     and the adequacy of such funds to meet current and future 
     repair and maintenance requirements for that aircraft.
       (2) A description of current efforts to address shortfalls 
     in the availability of spare and repair parts for the C-5 
     aircraft, including an assessment of potential short-term and 
     long-term effects of such efforts.
       (3) An assessment of the effects of such parts shortfalls 
     on readiness and reliability ratings for the C-5 aircraft.
       (4) A description of rates at which spare and repair parts 
     for one C-5 aircraft are taken from another C-5 aircraft 
     (known as parts cannibalization) and the manhours devoted to 
     part cannibalization of such aircraft.
       (5) An assessment of the effects of parts shortfalls and 
     parts cannibalization with respect to C-5 aircraft on 
     readiness and retention.
                       Subtitle H--Other Matters

     SEC. 381. ANNUAL REPORT ON PUBLIC SALE OF CERTAIN MILITARY 
                   EQUIPMENT IDENTIFIED ON UNITED STATES MUNITIONS 
                   LIST.

       (a) Annual Report Required.--Chapter 153 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2582. Military equipment identified on United States 
       munitions list: annual report of public sales

       ``(a) Report Required.--The Secretary of Defense shall 
     prepare an annual report identifying each public sale 
     conducted by a military department or Defense Agency of 
     military items that are--
       ``(1) identified on the United States Munitions List 
     maintained under section 121.1 of title 22, Code of Federal 
     Regulations; and
       ``(2) assigned a demilitarization code of `B' or its 
     equivalent.
       ``(b) Elements of Report.--(1) A report under this section 
     shall cover all public sales described in subsection (a) that 
     were conducted during the preceding fiscal year.
       ``(2) The report shall specify the following for each sale:
       ``(A) The date of the sale.
       ``(B) The military department or Defense Agency conducting 
     the sale.
       ``(C) The manner in which the sale was conducted.
       ``(D) The military items described in subsection (a) that 
     were sold or offered for sale.
       ``(E) The purchaser of each item.
       ``(F) The stated end-use of each item sold.
       ``(c) Submission of Report.--Not later than March 31 of 
     each year, the Secretary of Defense shall submit to the 
     Committee on Armed Services of the House of Representatives 
     and the Committee on Armed Services of the Senate the report 
     required by this section for the preceding fiscal year.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2582. Military equipment identified on United States munitions list: 
              annual report of public sales.''.

     SEC. 382. RESALE OF ARMOR-PIERCING AMMUNITION DISPOSED OF BY 
                   THE ARMY.

       (a) Restriction.--(1) Chapter 443 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 4688. Armor-piercing ammunition and components: 
       condition on disposal

       ``(a) Limitation on Resale or Other Transfer.--Except as 
     provided in subsection (b), whenever the Secretary of the 
     Army carries out a disposal (by sale or otherwise) of armor-
     piercing ammunition, or a component of armor-piercing 
     ammunition, the Secretary shall require as a condition of the 
     disposal that the recipient agree in writing not to sell or 
     otherwise transfer any of the ammunition (reconditioned or 
     otherwise), or any armor-piercing component of that 
     ammunition, to any purchaser in the United States other than 
     a law enforcement or other governmental agency.
       ``(b) Exception.--Subsection (a) does not apply to a 
     transfer of a component of armor-piercing ammunition solely 
     for the purpose of metal reclamation by means of a 
     destructive process such as melting, crushing, or shredding.
       ``(c) Special Rule for Non-Armor-Piercing Components.--A 
     component of the armor-piercing ammunition that is not itself 
     armor-piercing and is not subjected to metal reclamation as 
     described in subsection (b) may not be used as a component in 
     the production of new or remanufactured armor-piercing 
     ammunition other than for sale to a law enforcement or other 
     governmental agency or for a government-to-government sale or 
     commercial export to a foreign government under the Arms 
     Export Control Act (22 U.S.C. 2751).
       ``(d) Definition.--In this section, the term `armor-
     piercing ammunition' means a center-fire cartridge the 
     military designation of which includes the term `armor 
     penetrator' or `armor-piercing', including a center-fire 
     cartridge designated as armor-piercing incendiary (API) or 
     armor-piercing incendiary-tracer (API-T).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4688. Armor-piercing ammunition and components: condition on 
              disposal.''.

       (b) Applicability.--Section 4688 of title 10, United States 
     Code, as added by subsection (a), shall apply with respect to 
     any disposal of ammunition or components referred to in that 
     section after the date of the enactment of this Act.

     SEC. 383. REIMBURSEMENT BY CIVIL AIR CARRIERS FOR SUPPORT 
                   PROVIDED AT JOHNSTON ATOLL.

       (a) In General.--Chapter 949 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 9783. Johnston Atoll: reimbursement for support 
       provided to civil air carriers

       ``(a) Authority of the Secretary.--The Secretary of the Air 
     Force may, under regulations prescribed by the Secretary, 
     require payment by a civil air carrier for support provided 
     by the United States to the carrier at Johnston Atoll that is 
     either--
       ``(1) requested by the civil air carrier; or
       ``(2) determined under the regulations as being necessary 
     to accommodate the civil air carrier's use of Johnston Atoll.
       ``(b) Amount of Charges.--Any amount charged an air carrier 
     under subsection (a) for support shall be equal to the total 
     amount of the actual costs to the United States of providing 
     the support. The amount charged may not include any amount 
     for an item of support that does not satisfy a condition 
     described in paragraph (1) or (2) of subsection (a).
       ``(c) Relationship to Landing Fees.--No landing fee shall 
     be charged an air carrier for a landing of an aircraft of the 
     air carrier at Johnston Atoll if the air carrier is charged 
     under subsection (a) for support provided to the air carrier.
       ``(d) Disposition of Payments.--(1) Amounts collected from 
     an air carrier under this section shall be credited to 
     appropriations available for the fiscal year in which 
     collected, as follows:
       ``(A) For support provided by the Air Force, to 
     appropriations available for the Air Force for operation and 
     maintenance.
       ``(B) For support provided by the Army, to appropriations 
     available for the Army for chemical demilitarization.
       ``(2) Amounts credited to an appropriation under paragraph 
     (1) shall be merged with funds in that appropriation and 
     shall be available, without further appropriation, for the 
     purposes and period for which the appropriation is available.
       ``(e) Definitions.--In this section:
       ``(1) The term `civil air carrier' means an air carrier (as 
     defined in section 40101(a)(2) of title 49) that is issued a 
     certificate of public convenience and necessity under section 
     41102 of such title.
       ``(2) The term `support' includes fuel, fire rescue, use of 
     facilities, improvements necessary to accommodate use by 
     civil air carriers, police, safety, housing, food, air 
     traffic control, suspension of military operations on the 
     island (including operations at the Johnston Atoll Chemical 
     Agent Demilitarization System), repairs, and any other 
     construction, services, or supplies.''.

[[Page 21380]]

       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``9783. Johnston Atoll: reimbursement for support provided to civil air 
              carriers.''.

     SEC. 384. TRAVEL BY RESERVES ON MILITARY AIRCRAFT.

       (a) Space-Required Travel for Travel to Duty Stations.--
     Subsection (a) of section 18505 of title 10, United States 
     Code, is amended to read as follows:
       ``(a) A member of a reserve component traveling for annual 
     training duty or inactive-duty training (including a place 
     other than the place of the member's unit training assembly 
     if the member is performing annual training duty or inactive-
     duty training in another location) may travel in a space-
     required status on aircraft of the armed forces between the 
     member's home and the place of the annual training duty or 
     inactive-duty training.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

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

       (2) The table of sections at the beginning of chapter 1805 
     of such title is amended by striking the item relating to 
     section 18505 and inserting the following new item:

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

     SEC. 385. OVERSEAS AIRLIFT SERVICE ON CIVIL RESERVE AIR FLEET 
                   AIRCRAFT.

       (a) In General.--Section 41106 of title 49, United States 
     Code, is amended--
       (1) in subsection (a)(1), by striking ``of at least 31 
     days'';
       (2) by redesignating subsection (b) as subsection (d); and
       (3) by inserting after subsection (a) the following new 
     subsections:
       ``(b) Transportation Between the United States and Foreign 
     Locations.--Except as provided in subsection (d), the 
     transportation of passengers or property by transport 
     category aircraft between a place in the United States and a 
     place outside the United States obtained by the Secretary of 
     Defense or the Secretary of a military department through a 
     contract for airlift service shall be provided by an air 
     carrier referred to in subsection (a).
       ``(c) Transportation Between Foreign Locations.--The 
     transportation of passengers or property by transport 
     category aircraft between two places outside the United 
     States obtained by the Secretary of Defense or the Secretary 
     of a military department through a contract for airlift 
     service shall be provided by an air carrier that has aircraft 
     in the civil reserve air fleet whenever transportation by 
     such an air carrier is reasonably available.''.
       (b) Conforming Amendment.--Subsection (a) of such section 
     is further amended by striking ``General.--(1) Except as 
     provided in subsection (b) of this section,'' and inserting 
     ``Interstate Transportation.--(1) Except as provided in 
     subsection (d) of this section,''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2000.

     SEC. 386. ADDITIONS TO PLAN FOR ENSURING VISIBILITY OVER ALL 
                   IN-TRANSIT END ITEMS AND SECONDARY ITEMS.

       (a) Required Additions.--Subsection (d) of section 349 of 
     the Strom Thurmond National Defense Authorization Act for 
     Fiscal Year 1999 (Public Law 105-261; 112 Stat. 1981; 10 
     U.S.C. 2458 note) is amended--
       (1) in paragraph (1), by inserting before the period at the 
     end the following: ``, including specific actions to address 
     underlying weaknesses in the controls over items being 
     shipped''; and
       (2) by adding at the end the following new paragraph:
       ``(5) The key management elements for monitoring, and for 
     measuring the progress achieved in, the implementation of the 
     plan, including--
       ``(A) the assignment of oversight responsibility for each 
     action identified pursuant to paragraph (1);
       ``(B) a description of the resources required for 
     oversight; and
       ``(C) an estimate of the annual cost of oversight.''.
       (b) Conforming Amendments.--(1) Subsection (a) of such 
     section is amended by striking ``Not later than'' and all 
     that follows through ``Congress'' and inserting ``The 
     Secretary of Defense shall prescribe and carry out''.
       (2) Such section is further amended by adding at the end 
     the following new subsection:
       ``(f) Submissions to Congress.--The Secretary shall submit 
     to Congress any revisions made to the plan that are required 
     by any law enacted after October 17, 1998. The revisions so 
     made shall be submitted not later than 180 days after the 
     date of the enactment of the law requiring the revisions.''.
       (3) Subsection (e)(1) of such section is amended by 
     striking ``submits the plan'' and inserting ``submits the 
     initial plan''.

     SEC. 387. REAUTHORIZATION OF PILOT PROGRAM FOR ACCEPTANCE AND 
                   USE OF LANDING FEES CHARGED FOR USE OF DOMESTIC 
                   MILITARY AIRFIELDS BY CIVIL AIRCRAFT.

       (a) Reauthorization.--Section 377 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 112 Stat. 1993; 10 U.S.C. 113 note) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``during fiscal years 1999 and 2000''; and
       (B) by striking the second sentence; and
       (2) by adding at the end the following new subsection:
       ``(e) Duration of Pilot Program.--The pilot program under 
     this section may not be carried out after September 30, 
     2010.''.
       (b) Fees Collected.--Subsection (b) of such section is 
     amended to read as follows:
       ``(b) Landing Fee Defined.--In this section, the term 
     `landing fee' means any fee that is established under or in 
     accordance with regulations of the military department 
     concerned (whether prescribed in a fee schedule or imposed 
     under a joint-use agreement) to recover costs incurred for 
     use by civil aircraft of an airfield of the military 
     department in the United States or in a territory or 
     possession of the United States.''.
       (c) Use of Proceeds.--Subsection (c) of such section is 
     amended by striking ``Amounts received for a fiscal year in 
     payment of landing fees imposed under the pilot program for 
     use of a military airfield'' and inserting ``Amounts received 
     in payment of landing fees for use of a military airfield in 
     a fiscal year of the pilot program''.
       (d) Report.--Subsection (d) of such section is amended--
       (1) by striking ``March 31, 2000,'' and inserting ``March 
     31, 2003,''; and
       (2) by striking ``December 31, 1999'' and inserting 
     ``December 31, 2002''.

     SEC. 388. EXTENSION OF AUTHORITY TO SELL CERTAIN AIRCRAFT FOR 
                   USE IN WILDFIRE SUPPRESSION.

       Section 2 of the Wildfire Suppression Aircraft Transfer Act 
     of 1996 (Public Law 104-307; 10 U.S.C. 2576 note) is 
     amended--
       (1) in subsection (a)(1), by striking ``September 30, 
     2000'' and inserting ``September 30, 2005'';
       (2) in subsection (d)(1)--
       (A) by striking ``the date of the enactment of this Act'' 
     and inserting ``October 14, 1996''; and
       (B) by adding at the end the following: ``The regulations 
     prescribed under this paragraph shall be effective until the 
     end of the period specified in subsection (a)(1).''; and
       (3) in subsection (f), by striking ``March 31, 2000'' and 
     inserting ``March 31, 2005''.

     SEC. 389. DAMAGE TO AVIATION FACILITIES CAUSED BY ALKALI 
                   SILICA REACTIVITY.

       (a) Assessment of Damage and Prevention and Mitigation 
     Technology.--The Secretary of Defense shall require the 
     Secretaries of the military departments to assess--
       (1) the damage caused to aviation facilities of the Armed 
     Forces by alkali silica reactivity; and
       (2) the availability of technologies capable of preventing, 
     treating, or mitigating alkali silica reactivity in hardened 
     concrete structures and pavements.
       (b) Evaluation of Technologies.--(1) Taking into 
     consideration the assessment under subsection (a), the 
     Secretary of each military department may conduct a 
     demonstration project at a location selected by the Secretary 
     concerned to test and evaluate the effectiveness of 
     technologies intended to prevent, treat, or mitigate alkali 
     silica reactivity in hardened concrete structures and 
     pavements.
       (2) The Secretary of Defense shall ensure that the 
     locations selected for the demonstration projects represent 
     the diverse operating environments of the Armed Forces.
       (c) New Construction.--The Secretary of Defense shall 
     develop specific guidelines for appropriate testing and use 
     of lithium salts to prevent alkali silica reactivity in new 
     construction of the Department of Defense.
       (d) Completion of Assessment and Demonstration.--The 
     assessment conducted under subsection (a) and the 
     demonstration projects, if any, conducted under subsection 
     (b) shall be completed not later than September 30, 2006.
       (e) Delegation of Authority.--The authority to conduct the 
     assessment under subsection (a) may be delegated only to the 
     Chief of Engineers of the Army, the Commander of the Naval 
     Facilities Engineering Command, and the Civil Engineer of the 
     Air Force.
       (f) Limitation on Expenditures.--The Secretary of Defense 
     and the Secretaries of the military departments may not 
     expend more than a total of $5,000,000 to conduct both the 
     assessment under subsection (a) and all of the demonstration 
     projects under subsection (b).

     SEC. 390. DEMONSTRATION PROJECT TO INCREASE RESERVE COMPONENT 
                   INTERNET ACCESS AND SERVICES IN RURAL 
                   COMMUNITIES.

       (a) Authorization and Purpose of Project.--The Secretary of 
     the Army, acting through the Chief of the National Guard 
     Bureau, may carry out a demonstration project in rural 
     communities that are unserved or underserved by the 
     telecommunications medium known as the Internet to provide or 
     increase Internet access and services to units and members of 
     the National Guard and other reserve components located in 
     these communities.
       (b) Project Elements.--In carrying out the demonstration 
     project, the Secretary may--
       (1) establish and operate distance learning classrooms in 
     communities described in subsection (a), including any 
     support systems required for such classrooms; and
       (2) provide Internet access and services in such classrooms 
     through GuardNet, the telecommunications infrastructure of 
     the National Guard.
       (c) Report.--Not later than February 1, 2005, the Secretary 
     shall submit to Congress a report on the demonstration 
     project. The report shall

[[Page 21381]]

     describe the activities conducted under the demonstration 
     project and include any recommendations for the improvement 
     or expansion of the demonstration project that the Secretary 
     considers appropriate.

     SEC. 391. ADDITIONAL CONDITIONS ON IMPLEMENTATION OF DEFENSE 
                   JOINT ACCOUNTING SYSTEM.

       (a) Report on Deployment of System.--The proposed Defense 
     Joint Accounting System is not prohibited, but the Secretary 
     of Defense may not grant a Milestone III decision for the 
     system unless and until the Secretary of Defense submits to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     report--
       (1) explaining the reasons for the withdrawal of the 
     Department of the Air Force from the proposed Defense Joint 
     Accounting System and the effect of the withdrawal on the 
     development of the system;
       (2) explaining the reasons why the Department of the Navy 
     is not required to participate in the system;
       (3) identifying business process reengineering initiatives 
     reviewed, considered, or undertaken by the Department of the 
     Air Force and the Department of the Navy before the decisions 
     were made to exclude the Department of the Navy from the 
     system and to allow the Department of the Air Force to 
     withdraw from the system; and
       (4) containing an analysis, prepared with the participation 
     of the Secretaries of the military departments, of 
     alternatives to the system to determine whether the system 
     warrants deployment.
       (b) Certification.--If the Secretary of Defense determines 
     that the proposed Defense Joint Accounting System warrants a 
     Milestone III decision, the Secretary shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives a 
     certification that the system will meet--
       (1) the required functionality for users of the system;
       (2) Department of Defense acquisition standards;
       (3) the applicable requirements for Milestones I, II and 
     III; and
       (4) the applicable requirements of the Clinger-Cohen Act of 
     1996 (divisions D and E of Public Law 104-106).

     SEC. 392. REPORT ON DEFENSE TRAVEL SYSTEM.

       (a) Requirement for Report.--Not later than November 30, 
     2000, the Secretary of Defense shall submit to the 
     congressional defense committees a report on the Defense 
     Travel System.
       (b) Content of Report.--The report shall include the 
     following:
       (1) A detailed discussion of the development, testing, and 
     fielding of the system, including the performance 
     requirements, the evaluation criteria, the funding that has 
     been provided for the development, testing, and fielding of 
     the system, and the funding that is projected to be required 
     for completing the development, testing, and fielding of the 
     system.
       (2) The schedule for the testing of the system, including 
     the initial operational test and evaluation and the 
     finaloperational testing and evaluation, together with the 
     results of the testing.
       (3) The cost savings expected to result from the deployment 
     of the system and from the completed implementation of the 
     system, together with a discussion of how the savings are 
     estimated and the expected schedule for the realization of 
     the savings.
       (4) An analysis of the costs and benefits of fielding the 
     front-end software for the system throughout all 18 
     geographical areas selected for the original fielding of the 
     system.

     SEC. 393. REVIEW OF DEPARTMENT OF DEFENSE COSTS OF 
                   MAINTAINING HISTORICAL PROPERTIES.

       (a) Requirement for Review.--The Comptroller General shall 
     conduct a review of the annual costs incurred by the 
     Department of Defense to comply with the requirements of the 
     National Historic Preservation Act (16 U.S.C. 470 et seq.).
       (b) Report.--Not later than February 28, 2001, the 
     Comptroller General shall submit to the congressional defense 
     committees a report on the results of the review. The report 
     shall contain the following:
       (1) For each military department and Defense Agency and for 
     the Department of Defense in the aggregate, the cost for 
     fiscal year 2000 and the projected costs for the ensuing 10 
     fiscal years to comply with the requirements of the National 
     Historic Preservation Act.
       (2) Of the costs referred to in paragraph (1), the portion 
     of such costs related to maintenance of those properties that 
     qualified as historic properties under the National Historic 
     Preservation Act when such Act was originally enacted in 
     1966.
       (3) The accounts used for paying the costs of complying 
     with the requirements of the National Historic Preservation 
     Act.
       (4) For each military department and Defense Agency, the 
     identity of all properties that must be maintained in order 
     to comply with the requirements of the National Historic 
     Preservation Act.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Adjustment to end strength flexibility authority.

                       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 2001 limitation on non-dual status technicians.
Sec. 415. Increase in numbers of members in certain grades authorized 
              to be on active duty in support of the Reserves.

       Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Authority for Secretary of Defense to suspend certain 
              personnel strength limitations during war or national 
              emergency.
Sec. 422. Exclusion from active component end strengths of certain 
              reserve component members on active duty in support of 
              the combatant commands.
Sec. 423. Exclusion of Army and Air Force medical and dental officers 
              from limitation on strengths of reserve commissioned 
              officers in grades below brigadier general.
Sec. 424. Authority for temporary increases in number of reserve 
              component personnel serving on active duty or full-time 
              national guard duty in certain grades.

              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.
                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 2001, as follows:
       (1) The Army, 480,000.
       (2) The Navy, 372,642.
       (3) The Marine Corps, 172,600.
       (4) The Air Force, 357,000.

     SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.

       (a) Revised End Strength Floors.--Section 691(b) of title 
     10, United States Code, is amended--
       (1) in paragraph (2), by striking ``371,781'' and inserting 
     ``372,000'';
       (2) in paragraph (3), by striking ``172,148'' and inserting 
     ``172,600''; and
       (3) in paragraph (4), by striking ``360,877'' and inserting 
     ``357,000''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2000.

     SEC. 403. ADJUSTMENT TO END STRENGTH FLEXIBILITY AUTHORITY.

       Section 691(e) of title 10, United States Code, is amended 
     by inserting ``or greater than'' after ``identical to''.
                       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, 2001, as follows:
       (1) The Army National Guard of the United States, 350,526.
       (2) The Army Reserve, 205,300.
       (3) The Naval Reserve, 88,900.
       (4) The Marine Corps Reserve, 39,558.
       (5) The Air National Guard of the United States, 108,022.
       (6) The Air Force Reserve, 74,358.
       (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, 2001, 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, 22,974.
       (2) The Army Reserve, 13,106.
       (3) The Naval Reserve, 14,649.
       (4) The Marine Corps Reserve, 2,261.
       (5) The Air National Guard of the United States, 11,170.
       (6) The Air Force Reserve, 1,336.

     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

[[Page 21382]]

     2001 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 National Guard of the United States, 
     23,128.
       (2) For the Army Reserve, 5,921.
       (3) For the Air National Guard of the United States, 
     22,247.
       (4) For the Air Force Reserve, 9,785.

     SEC. 414. FISCAL YEAR 2001 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, 2001, may not exceed the following:
       (1) For the Army Reserve, 1,195.
       (2) For the Army National Guard of the United States, 
     1,600.
       (3) For the Air Force Reserve, 10.
       (4) For the Air National Guard of the United States, 326.
       (b) Non-Dual Status Technicians Defined.--In this section, 
     the term ``non-dual status technician'' has the meaning given 
     that term in section 10217(a) of title 10, United States 
     Code.
       (c) Postponement of Permanent Limitation.--Section 
     10217(c)(2) of title 10, United States Code, is amended by 
     striking ``October 1, 2001'' and inserting ``October 1, 
     2002''.

     SEC. 415. INCREASE IN NUMBERS OF MEMBERS IN CERTAIN GRADES 
                   AUTHORIZED TO BE ON ACTIVE DUTY IN SUPPORT OF 
                   THE RESERVES.

       (a) Officers.--The table in section 12011(a) of title 10, 
     United States Code, is amended to read as follows:


------------------------------------------------------------------------
                                                          Air     Marine
                ``Grade                 Army     Navy    Force    Corps
------------------------------------------------------------------------
Major or Lieutenant Commander.......    3,316    1,071      948      140
Lieutenant Colonel or Commander.....    1,759      520      852       90
Colonel or Navy Captain.............      529      188      317    30''.
------------------------------------------------------------------------

       (b) Senior Enlisted Members.--The table in section 12012(a) 
     of such title is amended to read as follows:


------------------------------------------------------------------------
                                                          Air     Marine
                ``Grade                 Army     Navy    Force    Corps
------------------------------------------------------------------------
E-9.................................      764      202      502       20
E-8.................................    2,821      429    1,117    94''.
------------------------------------------------------------------------

       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2000.
       (d) Report.--(1) Not later than March 31, 2001, the 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report on management of the grade 
     structure for reserve-component officers who are subject to 
     section 12011 of title 10, United States Code, and on the 
     grade structure of enlisted members who are subject to 
     section 12012 of that title. The Secretary of Defense shall 
     include in the report recommendations for a permanent 
     solution for managing the grade structures for those officers 
     and enlisted members without requirement for frequent 
     statutory adjustments to the limitations in those sections.
       (2) In developing recommendations for the report under 
     paragraph(1), the Secretary shall consider the following 
     areas:
       (A) The grade structure authorized for field-grade officers 
     in the active-duty forces and the reasons why the grade 
     structure for field-grade reserve officers on active duty in 
     support of the reserves is different.
       (B) The grade structure authorized for senior enlisted 
     members in the active-duty forces and the reasons why the 
     grade structure for senior enlisted reserve members on active 
     duty in support of the reserves is different.
       (C) The need for independent grade limits for each reserve 
     component under sections 12011 and 12012 of title 10, United 
     States Code.
       (D) The advantages and disadvantage of replacing management 
     by the current grade tables in those sections with management 
     through a system based on the grade authorized for the 
     position occupied by the member.
       (E) The current mix within each reserve component, for each 
     controlled grade, of (i) traditional reservists, (ii) 
     military technicians, (iii) regular component members, and 
     (iv) reserve members on active duty in support of the 
     reserves, and how that mix, for each component, would shift 
     over time under the Secretary's recommended solution as 
     specified in paragraph (1).
       Subtitle C--Other Matters Relating to Personnel Strengths

     SEC. 421. AUTHORITY FOR SECRETARY OF DEFENSE TO SUSPEND 
                   CERTAIN PERSONNEL STRENGTH LIMITATIONS DURING 
                   WAR OR NATIONAL EMERGENCY.

       (a) Senior Enlisted Members on Active Duty.--Section 517 of 
     title 10, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(c) Whenever under section 527 of this title the 
     President may suspend the operation of any provision of 
     section 523, 525, or 526 of this title, the Secretary of 
     Defense may suspend the operation of any provision of this 
     section. Any such suspension shall, if not sooner ended, end 
     in the manner specified in section 527 for a suspension under 
     that section.''.
       (b) Field Grade Reserve Component Officers.--Section 12011 
     of such title is amended by adding at the end the following 
     new subsection:
       ``(c) Whenever under section 527 of this title the 
     President may suspend the operation of any provision of 
     section 523, 525, or 526 of this title, the Secretary of 
     Defense may suspend the operation of any provision of this 
     section. Any such suspension shall, if not sooner ended, end 
     in the manner specified in section 527 for a suspension under 
     that section.''.
       (c) Senior Enlisted Member in Reserve Components.--Section 
     12012 of such title is amended by adding at the end the 
     following new subsection:
       ``(c) Whenever under section 527 of this title the 
     President may suspend the operation of any provision of 
     section 523, 525, or 526 of this title, the Secretary of 
     Defense may suspend the operation of any provision of this 
     section. Any such suspension shall, if not sooner ended, end 
     in the manner specified in section 527 for a suspension under 
     that section.''.

     SEC. 422. EXCLUSION FROM ACTIVE COMPONENT END STRENGTHS OF 
                   CERTAIN RESERVE COMPONENT MEMBERS ON ACTIVE 
                   DUTY IN SUPPORT OF THE COMBATANT COMMANDS.

       Section 115(d) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(9) Members of reserve components (not described in 
     paragraph (8)) on active duty for more than 180 days but less 
     than 271 days to perform special work in support of the 
     combatant commands, except that--
       ``(A) general and flag officers may not be excluded under 
     this paragraph; and
       ``(B) the number of members of any of the armed forces 
     excluded under this paragraph may not exceed the number equal 
     to 0.2 percent of the end strength authorized for active-duty 
     personnel of that armed force under subsection (a)(1)(A).''.

     SEC. 423. EXCLUSION OF ARMY AND AIR FORCE MEDICAL AND DENTAL 
                   OFFICERS FROM LIMITATION ON STRENGTHS OF 
                   RESERVE COMMISSIONED OFFICERS IN GRADES BELOW 
                   BRIGADIER GENERAL.

       Section 12005(a) of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(3) Medical officers and dental officers shall not be 
     counted for the purposes of this subsection.''.

     SEC. 424. AUTHORITY FOR TEMPORARY INCREASES IN NUMBER OF 
                   RESERVE COMPONENT PERSONNEL SERVING ON ACTIVE 
                   DUTY OR FULL-TIME NATIONAL GUARD DUTY IN 
                   CERTAIN GRADES.

       (a) Field Grade Officers.--Section 12011 of title 10, 
     United States Code, as amended by section 421(b), is amended 
     by adding at the end the following new subsection:
       ``(d) Upon increasing under subsection (c)(2) of section 
     115 of this title the end strength that is authorized under 
     subsection (a)(1)(B) of that section for a fiscal year for 
     active-duty personnel and full-time National Guard duty 
     personnel of an armed force who are to be paid from funds 
     appropriated for reserve personnel, the Secretary of Defense 
     may increase for that fiscal year the limitation that is set 
     forth in subsection (a) of this section for the number of 
     officers of that armed force serving in any grade if the 
     Secretary determines that such action is in the national 
     interest. The percent of the increase may not exceed the 
     percent by which the Secretary increases that end 
     strength.''.
       (b) Senior Enlisted Personnel.--Section 12012 of such 
     title, as amended by section 421(c), is amended by adding at 
     the end the following new subsection:
       ``(d) Upon increasing under subsection (c)(2) of section 
     115 of this title the end strength that is authorized under 
     subsection (a)(1)(B) of that section for a fiscal year for 
     active-duty personnel and full-time National Guard duty 
     personnel of an armed force who are to be paid from funds 
     appropriated for reserve personnel, the Secretary of Defense 
     may increase for that fiscal year the limitation that is set 
     forth in subsection (a) of this section for the number of 
     enlisted members of that armed force serving in any grade if 
     the Secretary determines that such action is in the national 
     interest. The percent of the increase may not exceed the 
     percent by which the Secretary increases that end 
     strength.''.
              Subtitle D--Authorization of Appropriations

     SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     2001 a total of $75,801,666,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2001.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Eligibility of Army and Air Force Reserve colonels and 
              brigadier generals for position vacancy promotions.
Sec. 502. Flexibility in establishing promotion zones for Coast Guard 
              Reserve officers.
Sec. 503. Time for release of reports of officer promotion selection 
              boards.

[[Page 21383]]

Sec. 504. Clarification of requirements for composition of active-duty 
              list selection boards when reserve officers are under 
              consideration.
Sec. 505. Authority to issue posthumous commissions in the case of 
              members dying before official recommendation for 
              appointment or promotion is approved by Secretary 
              concerned.
Sec. 506. Technical corrections relating to retired grade of reserve 
              commissioned officers.
Sec. 507. Grade of chiefs of reserve components and directors of 
              National Guard components.
Sec. 508. Revision to rules for entitlement to separation pay for 
              regular and reserve officers.

             Subtitle B--Reserve Component Personnel Policy

Sec. 521. Exemption from active-duty list for reserve officers on 
              active duty for a period of three years or less.
Sec. 522. Termination of application requirement for consideration of 
              officers for continuation on the reserve active-status 
              list.
Sec. 523. Authority to retain Air Force Reserve officers in all medical 
              specialties until specified age.
Sec. 524. Authority for provision of legal services to reserve 
              component members following release from active duty.
Sec. 525. Extension of involuntary civil service retirement date for 
              certain reserve technicians.

                   Subtitle C--Education and Training

Sec. 531. Eligibility of children of Reserves for Presidential 
              appointment to service academies.
Sec. 532. Selection of foreign students to receive instruction at 
              service academies.
Sec. 533. Revision of college tuition assistance program for members of 
              Marine Corps Platoon Leaders Class program.
Sec. 534. Review of allocation of Junior Reserve Officers Training 
              Corps units among the services.
Sec. 535. Authority for Naval Postgraduate School to enroll certain 
              defense industry civilians in specified programs relating 
              to defense product development.

           Subtitle D--Decorations, Awards, and Commendations

Sec. 541. Limitation on award of Bronze Star to members in receipt of 
              imminent danger pay.
Sec. 542. Consideration of proposals for posthumous or honorary 
              promotions or appointments of members or former members 
              of the Armed Forces and other qualified persons.
Sec. 543. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 544. Addition of certain information to markers on graves 
              containing remains of certain unknowns from the U.S.S. 
              Arizona who died in the Japanese attack on Pearl Harbor 
              on December 7, 1941.
Sec. 545. Sense of Congress on the court-martial conviction of Captain 
              Charles Butler McVay, Commander of the U.S.S. 
              Indianapolis, and on the courageous service of the crew 
              of that vessel.
Sec. 546. Posthumous advancement on retired list of Rear Admiral 
              Husband E. Kimmel and Major General Walter C. Short, 
              senior officers in command in Hawaii on December 7, 1941.
Sec. 547. Commendation of citizens of Remy, France, for World War II 
              actions.
Sec. 548. Authority for Award of the Medal of Honor to William H. 
              Pitsenbarger for valor during the Vietnam War.

       Subtitle E--Military Justice and Legal Assistance Matters

Sec. 551. Recognition by States of military testamentary instruments.
Sec. 552. Policy concerning rights of individuals whose names have been 
              entered into Department of Defense official criminal 
              investigative reports.
Sec. 553. Limitation on Secretarial authority to grant clemency for 
              military prisoners serving sentence of confinement for 
              life without eligibility for parole.
Sec. 554. Authority for civilian special agents of military department 
              criminal investigative organizations to execute warrants 
              and make arrests.
Sec. 555. Requirement for verbatim record in certain special court-
              martial cases.
Sec. 556. Commemoration of the 50th anniversary of the Uniform Code of 
              Military Justice.

               Subtitle F--Matters Relating to Recruiting

Sec. 561. Army recruiting pilot programs.
Sec. 562. Enhancement of recruitment market research and advertising 
              programs.
Sec. 563. Access to secondary schools for military recruiting purposes.
Sec. 564. Pilot program to enhance military recruiting by improving 
              military awareness of school counselors and educators.

                       Subtitle G--Other Matters

Sec. 571. Extension to end of calendar year of expiration date for 
              certain force drawdown transition authorities.
Sec. 572. Voluntary separation incentive.
Sec. 573. Congressional review period for assignment of women to duty 
              on submarines and for any proposed reconfiguration or 
              design of submarines to accommodate female crew members.
Sec. 574. Management and per diem requirements for members subject to 
              lengthy or numerous deployments.
Sec. 575. Pay in lieu of allowance for funeral honors duty.
Sec. 576. Test of ability of reserve component intelligence units and 
              personnel to meet current and emerging defense 
              intelligence needs.
Sec. 577. National Guard Challenge Program.
Sec. 578. Study of use of civilian contractor pilots for operational 
              support missions.
Sec. 579. Reimbursement for expenses incurred by members in connection 
              with cancellation of leave on short notice.

                  Subtitle A--Officer Personnel Policy

     SEC. 501. ELIGIBILITY OF ARMY AND AIR FORCE RESERVE COLONELS 
                   AND BRIGADIER GENERALS FOR POSITION VACANCY 
                   PROMOTIONS.

       Section 14315(b) of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by inserting after ``(A) is assigned 
     to the duties of a general officer of the next higher reserve 
     grade in the Army Reserve'' the following: ``or is 
     recommended for such an assignment under regulations 
     prescribed by the Secretary of the Army''; and
       (2) in paragraph (2), by inserting after ``(A) is assigned 
     to the duties of a general officer of the next higher reserve 
     grade'' the following: ``or is recommended for such an 
     assignment under regulations prescribed by the Secretary of 
     the Air Force''.

     SEC. 502. FLEXIBILITY IN ESTABLISHING PROMOTION ZONES FOR 
                   COAST GUARD RESERVE OFFICERS.

       (a) Coast Guard Reserve Officer Promotion System Based on 
     DOD ROPMA System.--Section 729(d) of title 14, United States 
     Code, is amended to read as follows:
       ``(d)(1) Before convening a selection board to recommend 
     Reserve officers for promotion, the Secretary shall establish 
     a promotion zone for officers serving in each grade to be 
     considered by the board. The Secretary shall determine the 
     number of officers in the promotion zone for officers serving 
     in any grade from among officers who are eligible for 
     promotion in that grade.
       ``(2)(A) Before convening a selection board to recommend 
     Reserve officers for promotion to a grade (other than the 
     grade of lieutenant (junior grade)), the Secretary shall 
     determine the maximum number of officers in that grade that 
     the board may recommend for promotion.
       ``(B) The Secretary shall make the determination under 
     subparagraph (A) of the maximum number that may be 
     recommended with a view to having in an active status a 
     sufficient number of Reserve officers in each grade to meet 
     the needs of the Coast Guard for Reserve officers in an 
     active status.
       ``(C) In order to make the determination under subparagraph 
     (B), the Secretary shall determine the following:
       ``(i) The number of positions needed to accomplish mission 
     objectives that require officers in the grade to which the 
     board will recommend officers for promotion.
       ``(ii) The estimated number of officers needed to fill 
     vacancies in such positions during the period in which it is 
     anticipated that officers selected for promotion will be 
     promoted.
       ``(iii) The number of officers authorized by the Secretary 
     to serve in an active status in the grade under 
     consideration.
       ``(iv) Any statutory limitation on the number of officers 
     in any grade authorized to be in an active status.
       ``(3)(A) The Secretary may, when the needs of the Coast 
     Guard require, authorize the consideration of officers in a 
     grade above lieutenant (junior grade) for promotion to the 
     next higher grade from below the promotion zone.
       ``(B) When selection from below the promotion zone is 
     authorized, the Secretary shall establish the number of 
     officers that may be recommended for promotion from below the 
     promotion zone. That number may not exceed the number equal 
     to 10 percent of the maximum number of officers that the 
     board is authorized to recommend for promotion, except that 
     the Secretary may authorize a greater number, not to exceed 
     15 percent of the total number of officers that the board is 
     authorized to recommend for promotion, if the Secretary 
     determines that the needs of the Coast Guard so require. If 
     the maximum number determined under this subparagraph is less 
     than one, the board may recommend one officer for promotion 
     from below the promotion zone.
       ``(C) The number of officers recommended for promotion from 
     below the promotion zone does not increase the maximum number 
     of officers that the board is authorized to recommend for 
     promotion under paragraph (2).''.
       (b) Running Mate System Made Optional.--(1) Section 731 of 
     such title is amended--
       (A) by designating the text of such section as subsection 
     (b);

[[Page 21384]]

       (B) by inserting after the section heading the following:
       ``(a) Authority To Use Running Mate System.--The Secretary 
     may by regulation implement section 729(d)(1) of this title 
     by requiring that the promotion zone for consideration of 
     Reserve officers in an active status for promotion to the 
     next higher grade be determined in accordance with a running 
     mate system as provided in subsection (b).'';
       (C) in subsection (b), as designated by subparagraph (A), 
     by striking ``Subject to the eligibility requirements of this 
     subchapter, a Reserve officer shall'' and inserting the 
     following: ``Consideration for Promotion.--If promotion zones 
     are determined as authorized under subsection (a), a Reserve 
     officer shall, subject to the eligibility requirements of 
     this subchapter,''; and
       (D) by adding at the end the following:
       ``(c) Consideration of Officers Below the Zone.--If the 
     Secretary authorizes the selection of officers for promotion 
     from below the promotion zone in accordance with section 
     729(d)(3) of this title, the number of officers to be 
     considered from below the zone may be established through the 
     application of the running mate system under this subchapter 
     or otherwise as the Secretary determines to be appropriate to 
     meet the needs of the Coast Guard.''.
       (2)(A) The heading for such section is amended to read as 
     follows:

     ``Sec. 731. Establishment of promotion zones under running 
       mate system''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 21 of such title is 
     amended to read as follows:

``731. Establishment of promotion zones under running mate system.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to selection boards convened under 
     section 730 of title 14, United States Code, on or after the 
     date of the enactment of this Act.

     SEC. 503. TIME FOR RELEASE OF REPORTS OF OFFICER PROMOTION 
                   SELECTION BOARDS.

       (a) Active-Duty List Officer Boards.--Section 618(e) of 
     title 10, United States Code, is amended to read as follows:
       ``(e)(1) The names of the officers recommended for 
     promotion in the report of a selection board shall be 
     disseminated to the armed force concerned as follows:
       ``(A) In the case of officers recommended for promotion to 
     a grade below brigadier general or rear admiral (lower half), 
     such names may be disseminated upon, or at any time after, 
     the transmittal of the report to the President.
       ``(B) In the case of officers recommended for promotion to 
     a grade above colonel or, in the case of the Navy, captain, 
     such names may be disseminated upon, or at any time after, 
     the approval of the report by the President.
       ``(C) In the case of officers whose names have not been 
     sooner disseminated, such names shall be promptly 
     disseminated upon confirmation by the Senate.
       ``(2) A list of names of officers disseminated under 
     paragraph (1) may not include--
       ``(A) any name removed by the President from the report of 
     the selection board containing that name, if dissemination is 
     under the authority of subparagraph (B) of such paragraph; or
       ``(B) the name of any officer whose promotion the Senate 
     failed to confirm, if dissemination is under the authority of 
     subparagraph (C) of such paragraph.''.
       (b) Reserve Active-Status List Officer Boards.--The text of 
     section 14112 of title 10, United States Code, is amended to 
     read as follows:
       ``(a) Time for Dissemination.--The names of the officers 
     recommended for promotion in the report of a selection board 
     shall be disseminated to the armed force concerned as 
     follows:
       ``(1) In the case of officers recommended for promotion to 
     a grade below brigadier general or rear admiral (lower half), 
     such names may be disseminated upon, or at any time after, 
     the transmittal of the report to the President.
       ``(2) In the case of officers recommended for promotion to 
     a grade above colonel or, in the case of the Navy, captain, 
     such names may be disseminated upon, or at any time after, 
     the approval of the report by the President.
       ``(3) In the case of officers whose names have not been 
     sooner disseminated, such names shall be promptly 
     disseminated--
       ``(A) upon confirmation of the promotion of the officers by 
     the Senate (in the case of promotions required to be 
     submitted to the Senate for confirmation); or
       ``(B) upon the approval of the report by the President (in 
     the case of promotions not required to be submitted to the 
     Senate for confirmation).
       ``(b) Names Not Disseminated.--A list of names of officers 
     disseminated under subsection (a) may not include--
       ``(1) any name removed by the President from the report of 
     the selection board containing that name, if dissemination is 
     under the authority of paragraph (2) or (3)(B) of that 
     subsection; or
       ``(2) the name of any officer whose promotion the Senate 
     failed to confirm, if dissemination is under the authority of 
     paragraph (3)(A) of that subsection.''.

     SEC. 504. CLARIFICATION OF REQUIREMENTS FOR COMPOSITION OF 
                   ACTIVE-DUTY LIST SELECTION BOARDS WHEN RESERVE 
                   OFFICERS ARE UNDER CONSIDERATION.

       (a) Clarification.--Section 612(a) of title 10, United 
     States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``who are on the active-duty list'' in the 
     second sentence; and
       (B) by inserting after the second sentence the following 
     new sentence: ``Each member of a selection board (except as 
     provided in paragraphs (2), (3), and (4)) shall be an officer 
     on the active-duty list.''; and
       (2) in paragraph (3)--
       (A) by striking ``of that armed force, with the exact 
     number of reserve officers to be'' and inserting ``of that 
     armed force on active duty (whether or not on the active-duty 
     list). The actual number of reserve officers shall be''; and
       (B) by striking ``his discretion, except that'' and 
     inserting ``the Secretary's discretion. Notwithstanding the 
     first sentence of this paragraph,''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to any selection board convened under section 
     611(a) of title 10, United States Code, on or after August 1, 
     1981.

     SEC. 505. AUTHORITY TO ISSUE POSTHUMOUS COMMISSIONS IN THE 
                   CASE OF MEMBERS DYING BEFORE OFFICIAL 
                   RECOMMENDATION FOR APPOINTMENT OR PROMOTION IS 
                   APPROVED BY SECRETARY CONCERNED.

       (a) Repeal of Limitation to Deaths Occurring After 
     Secretarial Approval.--Subsection (a)(3) of section 1521 of 
     title 10, United States Code, is amended by striking ``and 
     the recommendation for whose appointment or promotion was 
     approved by the Secretary concerned''.
       (b) Effective Date of Commission.--Subsection (b) of such 
     section is amended by striking ``approval'' both places it 
     appears and inserting ``official recommendation''.

     SEC. 506. TECHNICAL CORRECTIONS RELATING TO RETIRED GRADE OF 
                   RESERVE COMMISSIONED OFFICERS.

       (a) Army.--Section 3961(a) of title 10, United States Code, 
     is amended by striking ``or for nonregular service under 
     chapter 1223 of this title''.
       (b) Air Force.--Section 8961(a) of title 10, United States 
     Code, is amended by striking ``or for nonregular service 
     under chapter 1223 of this title''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply to Reserve commissioned officers who are 
     promoted to a higher grade as a result of selection for 
     promotion by a board convened under chapter 36 or 1403 of 
     title 10, United States Code, or having been found qualified 
     for Federal recognition in a higher grade under chapter 3 of 
     title 32, United States Code, after October 1, 1996.

     SEC. 507. GRADE OF CHIEFS OF RESERVE COMPONENTS AND DIRECTORS 
                   OF NATIONAL GUARD COMPONENTS.

       (a) Chief of Army Reserve.--Subsections (b) and (c) of 
     section 3038 of title 10, United States Code, are amended to 
     read as follows:
       ``(b) Appointment.--(1) The President, by and with the 
     advice and consent of the Senate, shall appoint the Chief of 
     Army Reserve from general officers of the Army Reserve who 
     have had at least 10 years of commissioned service in the 
     Army Reserve.
       ``(2) The Secretary of Defense may not recommend an officer 
     to the President for appointment as Chief of Army Reserve 
     unless the officer--
       ``(A) is recommended by the Secretary of the Army; and
       ``(B) is determined by the Chairman of the Joint Chiefs of 
     Staff, in accordance with criteria and as a resultof a 
     process established by the Chairman, to have significant 
     joint duty experience.
       ``(3) An officer on active duty for service as the Chief of 
     Army Reserve shall be counted for purposes of the grade 
     limitations under sections 525 and 526 of this title.
       ``(4) Until October 1, 2003, the Secretary of Defense may 
     waive subparagraph (B) of paragraph (2) with respect to the 
     appointment of an officer as Chief of Army Reserve if the 
     Secretary of the Army requests the waiver and, in the 
     judgment of the Secretary of Defense--
       ``(A) the officer is qualified for service in the position; 
     and
       ``(B) the waiver is necessary for the good of the service.
     Any such waiver shall be made on a case-by-case basis.
       ``(c) Term; Reappointment; Grade.--(1) The Chief of Army 
     Reserve is appointed for a period of four years, but may be 
     removed for cause at any time. An officer serving as Chief of 
     Army Reserve may be reappointed for one additional four-year 
     period.
       ``(2) The Chief of Army Reserve, while so serving, holds 
     the grade of lieutenant general.''.
       (b) Chief of Naval Reserve.--Subsections (b) and (c) of 
     section 5143 of such title are amended to read as follows:
       ``(b) Appointment.--(1) The President, by and with the 
     advice and consent of the Senate, shall appoint the Chief of 
     Naval Reserve from flag officers of the Navy (as defined in 
     section 5001(1)) who have had at least 10 years of 
     commissioned service.
       ``(2) The Secretary of Defense may not recommend an officer 
     to the President for appointment as Chief of Naval Reserve 
     unless the officer--
       ``(A) is recommended by the Secretary of the Navy; and
       ``(B) is determined by the Chairman of the Joint Chiefs of 
     Staff, in accordance with criteria and as a result of a 
     process established by the Chairman, to have significant 
     joint duty experience.
       ``(3) An officer on active duty for service as the Chief of 
     Naval Reserve shall be counted for purposes of the grade 
     limitations under sections 525 and 526 of this title.

[[Page 21385]]

       ``(4) Until October 1, 2003, the Secretary of Defense may 
     waive subparagraph (B) of paragraph (2) with respect to the 
     appointment of an officer as Chief of Naval Reserve if the 
     Secretary of the Navy requests the waiver and, in the 
     judgment of the Secretary of Defense--
       ``(A) the officer is qualified for service in the position; 
     and
       ``(B) the waiver is necessary for the good of the service.

     Any such waiver shall be made on a case-by-case basis.
       ``(c) Term; Reappointment; Grade.--(1) The Chief of Naval 
     Reserve is appointed for a term determined by the Chief of 
     Naval Operations, normally four years, but may be removed for 
     cause at any time. An officer serving as Chief of Naval 
     Reserve may be reappointed for one additional term of up to 
     four years.
       ``(2) The Chief of Naval Reserve, while so serving, holds 
     the grade of vice admiral.''.
       (c) Commander, Marine Forces Reserve.--Subsections (b) and 
     (c) of section 5144 of such title are amended to read as 
     follows:
       ``(b) Appointment.--(1) The President, by and with the 
     advice and consent of the Senate, shall appoint the 
     Commander, Marine Forces Reserve, from general officers of 
     the Marine Corps (as defined in section 5001(2)) who have had 
     at least 10 years of commissioned service.
       ``(2) The Secretary of Defense may not recommend an officer 
     to the President for appointment as Commander, Marine Forces 
     Reserve, unless the officer--
       ``(A) is recommended by the Secretary of the Navy; and
       ``(B) is determined by the Chairman of the Joint Chiefs of 
     Staff, in accordance with criteria and as a result of a 
     process established by the Chairman, to have significant 
     joint duty experience.
       ``(3) An officer on active duty for service as the 
     Commander, Marine Forces Reserve, shall be counted for 
     purposes of the grade limitations under sections 525 and 526 
     of this title.
       ``(4) Until October 1, 2003, the Secretary of Defense may 
     waive subparagraph (B) of paragraph (2) with respect to the 
     appointment of an officer as Commander, Marine Forces 
     Reserve, if the Secretary of the Navy requests the waiver 
     and, in the judgment of the Secretary of Defense--
       ``(A) the officer is qualified for service in the position; 
     and
       ``(B) the waiver is necessary for the good of the service.
     Any such waiver shall be made on a case-by-case basis.
       ``(c) Term; Reappointment; Grade.--(1) The Commander, 
     Marine Forces Reserve, is appointed for a term determined by 
     the Commandant of the Marine Corps, normally four years, but 
     may be removed for cause at any time. An officer serving as 
     Commander, Marine Forces Reserve, may be reappointed for one 
     additional term of up to four years.
       ``(2) The Commander, Marine Forces Reserve, while so 
     serving, holds the grade of lieutenant general.''.
       (d) Chief of Air Force Reserve.--Subsections (b) and (c) of 
     section 8038 of such title are amended to read as follows:
       ``(b) Appointment.--(1) The President, by and with the 
     advice and consent of the Senate, shall appoint the Chief of 
     Air Force Reserve from general officers of the Air Force 
     Reserve who have had at least 10 years of commissioned 
     service in the Air Force.
       ``(2) The Secretary of Defense may not recommend an officer 
     to the President for appointment as Chief of Air Force 
     Reserve unless the officer--
       ``(A) is recommended by the Secretary of the Air Force; and
       ``(B) is determined by the Chairman of the Joint Chiefs of 
     Staff, in accordance with criteria and as a result of a 
     process established by the Chairman, to have significant 
     joint duty experience.
       ``(3) An officer on active duty for service as the Chief of 
     Air Force Reserve shall be counted for purposes of the grade 
     limitations under sections 525 and 526 of this title.
       ``(4) Until October 1, 2003, the Secretary of Defense may 
     waive subparagraph (B) of paragraph (2) with respect to the 
     appointment of an officer as Chief of Air Force Reserve if 
     the Secretary of the Air Force requests the waiver and, in 
     the judgment of the Secretary of Defense--
       ``(A) the officer is qualified for service in the position; 
     and
       ``(B) the waiver is necessary for the good of the service.
     Any such waiver shall be made on a case-by-case basis.
       ``(c) Term; Reappointment; Grade.--(1) The Chief of Air 
     Force Reserve is appointed for a period of four years, but 
     may be removed for cause at any time. An officer serving as 
     Chief of Air Force Reserve may be reappointed for one 
     additional four-year period.
       ``(2) The Chief of Air Force Reserve, while so serving, 
     holds the grade of lieutenant general.''.
       (e) Directors in the National Guard Bureau.--Section 
     10506(a) of such title is amended--
       (1) in subparagraphs (A) and (B) of paragraph (1), by 
     striking ``while so serving shall hold the grade of major 
     general or, if appointed to that position in accordance with 
     section 12505(a)(2) of this title, the grade of lieutenant 
     general, and'' and inserting ``shall be appointed in 
     accordance with paragraph (3), shall hold the grade of 
     lieutenant general while so serving, and shall''; and
       (2) by adding at the end the following new paragraph:
       ``(3)(A) The President, by and with the advice and consent 
     of the Senate, shall appoint the Director, Army National 
     Guard, from general officers of the Army National Guard of 
     the United States and shall appoint the Director, Air 
     National Guard, from general officers of the Air National 
     Guard of the United States.
       ``(B) The Secretary of Defense may not recommend an officer 
     to the President for appointment as Director, Army National 
     Guard, or as Director, Air National Guard, unless the 
     officer--
       ``(i) is recommended by the Secretary of the military 
     department concerned; and
       ``(ii) is determined by the Chairman of the Joint Chiefs of 
     Staff, in accordance with criteria and as a result of a 
     process established by the Chairman, to have significant 
     joint duty experience.
       ``(C) An officer on active duty for service as the 
     Director, Army National Guard, or the Director, Air National 
     Guard, shall be counted for purposes of the grade limitations 
     under sections 525 and 526 of this title.
       ``(D) Until October 1, 2003, the Secretary of Defense may 
     waive clause (ii) of subparagraph (B) with respect to the 
     appointment of an officer as Director, Army National Guard, 
     or as Director, Air National Guard, if the Secretary of the 
     military department concerned requests the waiver and, in the 
     judgment of the Secretary of Defense--
       ``(i) the officer is qualified for service in the position; 
     and
       ``(ii) the waiver is necessary for the good of the service.

     Any such waiver shall be made on a case-by-case basis.
       ``(E) The Director, Army National Guard, and the Director, 
     Air National Guard, are appointed for a period of four years, 
     but may be removed for cause at any time. An officer serving 
     as either Director may be reappointed for one additional 
     four-year period.''.
       (f) Repeal of Superseded Section.--(1) Section 12505 of 
     such title is repealed.
       (2) The table of sections at the beginning of chapter 1213 
     is amended by striking the item relating to section 12505.
       (g) Conforming Increase in Authorized Number of O-9 
     Positions.--Section 525(b) of such title is amended--
       (1) in paragraph (1)--
       (A) by striking ``Army, Air Force, or Marine Corps'' in the 
     first sentence and inserting ``Army or Air Force'';
       (B) by striking ``15 percent'' both places it appears and 
     inserting ``15.7 percent'';
       (C) by striking ``In the case of the Army and Air Force, 
     of'' at the beginning of the second sentence and inserting 
     ``Of''; and
       (D) by inserting ``of the Army or Air Force'' in the second 
     sentence after ``general officers''; and
       (2) in paragraph (2)--
       (A) by inserting ``(A)'' after ``(2)'';
       (B) by striking ``15 percent'' both places it appears and 
     inserting ``15.7 percent''; and
       (C) by adding at the end the following:
       ``(B) No appointment may be made in a grade above major 
     general in the Marine Corps if that appointment would result 
     in more than 16.2 percent of the general officers of the 
     Marine Corps on active duty being in grades above major 
     general.''.
       (h) Study of Increase in Grade for Vice Chief of National 
     Guard Bureau.--(1) The Secretary of Defense shall conduct a 
     study of the advisability of changing the grade authorized 
     for the Vice Chief of the National Guard Bureau from major 
     general to lieutenant general.
       (2) As part of the study, the Chief of the National Guard 
     Bureau shall submit to the Secretary of Defense an analysis 
     of the functions and responsibilities of the Vice Chief of 
     the National Guard Bureau and the Chief's recommendation as 
     to whether the grade for the Vice Chief should be changed 
     from major general to lieutenant general.
       (3) Not later than February 1, 2001, the Secretary shall 
     submit to the Committees on Armed Services of the Senate and 
     House of Representatives a report on the study. The report 
     shall include the following--
       (A) the recommendation of the Chief of the National Guard 
     Bureau and any other information provided by the Chief to the 
     Secretary of Defense pursuant to paragraph (2);
       (B) the conclusions resulting from the study; and
       (C) the Secretary's recommendations regarding whether the 
     grade authorized for the Vice Chief of the National Guard 
     Bureau should be changed to lieutenant general.
       (i) Implementation.--(1) An appointment or reappointment, 
     in the case of the incumbent in a reserve component chief 
     position, shall be made to each of the reserve component 
     chief positions not later than 12 months after the date of 
     the enactment of this Act, in accordance with the amendments 
     made by subsections (a) through (e).
       (2) An officer serving in a reserve component chief 
     position on the date of the enactment of this Act may be 
     reappointed to that position under the amendments made by 
     subsection (a) through (e), if eligible and otherwise 
     qualified in accordance with those amendments. If such an 
     officer is so reappointed, the appointment may be made for 
     the remainder of the officer's original term or for a full 
     new term, as specified at the time of the appointment.
       (3) An officer serving on the date of the enactment of this 
     Act in a reserve component chief position may continue to 
     serve in that position 
     in accordance with the provisions of law in effect 
     immediately before the amendments made

[[Page 21386]]

     by this section until a successor is appointed under 
     paragraph (1) (or that officer is reappointed under paragraph 
     (1)).
       (4) The amendments made by subsection (g) shall be 
     implemented so that each increase authorized by those 
     amendments in the number of officers in the grades of 
     lieutenant general and vice admiral is implemented on a case-
     by-case basis with an initial appointment made after the date 
     of the enactment of this Act, as specified in paragraph (1), 
     to a reserve component chief position.
       (5) For purposes of this subsection, the term ``reserve 
     component chief position'' means a position specified in 
     section 3038, 5143, 5144, or 8038 of title 10, United States 
     Code, or the position of Director, Army National Guard or 
     Director, Air National Guard under section 10506(a)(1) of 
     such title.

     SEC. 508. REVISION TO RULES FOR ENTITLEMENT TO SEPARATION PAY 
                   FOR REGULAR AND RESERVE OFFICERS.

       (a) Regular Officers.--Subsection (a) of section 1174 of 
     title 10, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(4) Notwithstanding paragraphs (1) and (2), an officer 
     who is subject to discharge under any provision of chapter 36 
     of this title or under section 580 or 6383 of this title by 
     reason of having twice failed of selection for promotion to 
     the next higher grade is not entitled to separation pay under 
     this section if that officer, after such second failure of 
     selection for promotion, is selected for, and declines, 
     continuation on active duty for a period that is equal to or 
     more than the amount of service required to qualify the 
     officer for retirement.''.
       (b) Reserve Officers.--Subsection (c) of such section is 
     amended by adding at the end the following new paragraph:
       ``(4) In the case of an officer who is subject to discharge 
     or release from active duty under a law or regulation 
     requiring that an officer who has failed of selection for 
     promotion to the next higher grade for the second time be 
     discharged or released from active duty and who, after such 
     second failure of selection for promotion, is selected for, 
     and declines, continuation on active duty--
       ``(A) if the period of time for which the officer was 
     selected for continuation on active duty is less than the 
     amount of service that would be required to qualify the 
     officer for retirement, the officer's discharge or release 
     from active duty shall be considered to be involuntary for 
     purposes of paragraph (1)(A); and
       ``(B) if the period of time for which the officer was 
     selected for continuation on active duty is equal to or more 
     than the amount of service that would be required to qualify 
     the officer for retirement, the officer's discharge or 
     release from active duty shall not be considered to be 
     involuntary for the purposes of paragraph (1)(A).''.
       (c) Effective Date.--Paragraph (4) of section 1174(a) of 
     title 10, United States Code, as added by subsection (a), and 
     paragraph (4) of section 1174(c) of such title, as added by 
     subsection (b), shall apply with respect to any offer of 
     selective continuation on active duty that is declined on or 
     after the date of the enactment of this Act.
             Subtitle B--Reserve Component Personnel Policy

     SEC. 521. EXEMPTION FROM ACTIVE-DUTY LIST FOR RESERVE 
                   OFFICERS ON ACTIVE DUTY FOR A PERIOD OF THREE 
                   YEARS OR LESS.

       Section 641(1) of title 10, United States Code, is 
     amended--
       (1) by redesignating subparagraphs (D) through (G) as 
     subparagraphs (E) through (H), respectively; and
       (2) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) on the reserve active-status list who are on active 
     duty under section 12301(d) of this title, other than as 
     provided in subparagraph (C), under a call or order to active 
     duty specifying a period of three years or less;''.

     SEC. 522. TERMINATION OF APPLICATION REQUIREMENT FOR 
                   CONSIDERATION OF OFFICERS FOR CONTINUATION ON 
                   THE RESERVE ACTIVE-STATUS LIST.

       Section 14701(a)(1) of title 10, United States Code, is 
     amended by striking ``Upon application, a reserve officer'' 
     and inserting ``A reserve officer''.

     SEC. 523. AUTHORITY TO RETAIN AIR FORCE RESERVE OFFICERS IN 
                   ALL MEDICAL SPECIALTIES UNTIL SPECIFIED AGE.

       Section 14703(a)(3) of title 10, United States Code, is 
     amended by striking ``veterinary officer'' and all that 
     follows through the period and inserting ``Air Force nurse, 
     Medical Service Corps officer, biomedical sciences officer, 
     or chaplain.''.

     SEC. 524. AUTHORITY FOR PROVISION OF LEGAL SERVICES TO 
                   RESERVE COMPONENT MEMBERS FOLLOWING RELEASE 
                   FROM ACTIVE DUTY.

       (a) Legal Services.--Section 1044(a) of title 10, United 
     States Code, is amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) Members of reserve components not covered by 
     paragraph (1) or (2) following release from active duty under 
     a call or order to active duty for more than 30 days issued 
     under a mobilization authority (as determined by the 
     Secretary of Defense), for a period of time, prescribed by 
     the Secretary of Defense, that begins on the date of the 
     release and is not less than twice the length of the period 
     served on active duty under that call or order to active 
     duty.''.
       (b) Dependents.--Paragraph (5) of such section, as 
     redesignated by subsection (a)(1), is amended by striking 
     ``and (3)'' and inserting ``(3), and (4)''.
       (c) Implementing Regulations.--Regulations to implement the 
     amendments made by this section shall be prescribed not later 
     than 180 days after the date of the enactment of this Act.

     SEC. 525. EXTENSION OF INVOLUNTARY CIVIL SERVICE RETIREMENT 
                   DATE FOR CERTAIN RESERVE TECHNICIANS.

       (a) Mandatory Retirement Not Applicable Until Age 60.--
     Section 10218 of title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``and is age 60 or older at that time'' 
     after ``unreduced annuity'' in paragraph (2);
       (B) by inserting ``or is under age 60 at that time'' after 
     ``unreduced annuity'' in paragraph (3)(A); and
       (C) by inserting ``and becoming 60 years of age'' after 
     ``unreduced annuity'' in paragraph (3)(B)(ii)(I); and
       (2) in subsection (b)--
       (A) by inserting ``and is age 60 or older'' after 
     ``unreduced annuity'' in paragraph (1);
       (B) by inserting ``or is under age 60'' after ``unreduced 
     annuity'' in paragraph (2)(A); and
       (C) by inserting ``and becoming 60 years of age'' after 
     ``unreduced annuity'' in paragraph (2)(B)(ii)(I).
       (b) Transition Provision.--(1) An individual who before the 
     date of the enactment of this Act was involuntarily separated 
     or retired from employment as an Army Reserve or Air Force 
     Reserve technician under section 10218 of title 10, United 
     States Code, and who would not have been so separated if the 
     provisions of subsection (c) of that section, as amended by 
     subsection (a), had been in effect at the time of such 
     separation may, with the approval of the Secretary concerned, 
     be reinstated to the technician status held by that 
     individual immediately before that separation. The effective 
     date of any such reinstatement is the date the employee 
     resumes technician status.
       (2) The authority under paragraph (1) applies only to 
     reinstatement for which an application is received by the 
     Secretary concerned before the end of the one-year period 
     beginning on the date of the enactment of this Act.
                   Subtitle C--Education and Training

     SEC. 531. ELIGIBILITY OF CHILDREN OF RESERVES FOR 
                   PRESIDENTIAL APPOINTMENT TO SERVICE ACADEMIES.

       (a) United States Military Academy.--Section 4342(b)(1) of 
     title 10, United States Code, is amended--
       (1) in subparagraph (B), by striking ``, other than those 
     granted retired pay under section 12731 of this title (or 
     under section 1331 of this title as in effect before the 
     effective date of the Reserve Officer Personnel Management 
     Act)''; and
       (2) by inserting after subparagraph (B) the following:
       ``(C) are serving as members of reserve components and are 
     credited with at least eight years of service computed under 
     section 12733 of this title; or
       ``(D) would be, or who died while they would have been, 
     entitled to retired pay under chapter 1223 of this title 
     except for not having attained 60 years of age;''.
       (b) United States Naval Academy.--Section 6954(b)(1) of 
     such title is amended--
       (1) in subparagraph (B), by striking ``, other than those 
     granted retired pay under section 12731 of this title (or 
     under section 1331 of this title as in effect before the 
     effective date of the Reserve Officer Personnel Management 
     Act)''; and
       (2) by inserting after subparagraph (B) the following:
       ``(C) are serving as members of reserve components and are 
     credited with at least eight years of service computed under 
     section 12733 of this title; or
       ``(D) would be, or who died while they would have been, 
     entitled to retired pay under chapter 1223 of this title 
     except for not having attained 60 years of age;''.
       (c) United States Air Force Academy.--Section 9342(b)(1) of 
     such title is amended--
       (1) in subparagraph (B), by striking ``, other than those 
     granted retired pay under section 12731 of this title (or 
     under section 1331 of this title as in effect before the 
     effective date of the Reserve Officer Personnel Management 
     Act)''; and
       (2) by inserting after subparagraph (B) the following:
       ``(C) are serving as members of reserve components and are 
     credited with at least eight years of service computed under 
     section 12733 of this title; or
       ``(D) would be, or who died while they would have been, 
     entitled to retired pay under chapter 1223 of this title 
     except for not having attained 60 years of age;''.

     SEC. 532. SELECTION OF FOREIGN STUDENTS TO RECEIVE 
                   INSTRUCTION AT SERVICE ACADEMIES.

       (a) United States Military Academy.--Section 4344(a) of 
     title 10, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(3) In selecting persons to receive instruction under 
     this section from among applicants from the countries 
     approved under paragraph 
     (2), the Secretary of the Army shall give a priority to 
     persons who have a national service obligation to their 
     countries upon graduation from the Academy.''.

[[Page 21387]]

       (b) United States Naval Academy.--Section 6957(a) of such 
     title is amended by adding at the end the following new 
     paragraph:
       ``(3) In selecting persons to receive instruction under 
     this section from among applicants from the countries 
     approved under paragraph (2), theSecretary of the Navy shall 
     give a priority to persons who have a national service 
     obligation to their countries upon graduation from the 
     Academy.''.
       (c) United States Air Force Academy.--Section 9344(a) of 
     such title is amended by adding at the end the following new 
     paragraph:
       ``(3) In selecting persons to receive instruction under 
     this section from among applicants from the countries 
     approved under paragraph (2), the Secretary of the Air Force 
     shall give a priority to persons who have a national service 
     obligation to their countries upon graduation from the 
     Academy.''.
       (d) Applicability.--The amendments made by this section 
     shall apply with respect to academic years that begin after 
     October 1, 2000.

     SEC. 533. REVISION OF COLLEGE TUITION ASSISTANCE PROGRAM FOR 
                   MEMBERS OF MARINE CORPS PLATOON LEADERS CLASS 
                   PROGRAM.

       (a) Eligibility of Officers.--Section 16401 of title 10, 
     United States Code, is amended--
       (1) in subsection (a), by striking ``enlisted'' in the 
     matter preceding paragraph (1); and
       (2) in subsection (b)(1)--
       (A) by striking ``an enlisted member'' in the matter 
     preceding subparagraph (A) and inserting ``a member''; and
       (B) by striking ``an officer candidate in'' in subparagraph 
     (A) and inserting ``a member of''.
       (b) Repeal of Age Limitations.--Subsection (b) of such 
     section is amended--
       (1) in paragraph (1)--
       (A) by striking subparagraph (B);
       (B) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (B) and (C), respectively; and
       (C) in subparagraph (C), as so redesignated, by striking 
     ``paragraph (3)'' and inserting ``paragraph (2)'';
       (2) by striking paragraph (2);
       (3) by redesignating paragraph (3) as paragraph (2); and
       (4) in paragraph (2), as so redesignated, by striking 
     ``paragraph (1)(D)'' and inserting ``paragraph (1)(C)''.
       (c) Candidates for Law Degrees.--Subsection (a)(2) of such 
     section is amended by striking ``three'' and inserting 
     ``four''.
       (d) Sanctions; Exceptions.--Subsection (f) of such section 
     is amended--
       (1) in paragraph (1)--
       (A) by striking ``A member who'' and inserting ``An 
     enlisted member who'';
       (B) by inserting ``and an officer who receives financial 
     assistance under this section may be required to repay the 
     full amount of financial assistance,'' after ``for more than 
     four years,''; and
       (C) by inserting ``or, if already a commissioned officer in 
     the Marine Corps, refuses to accept an assignment on active 
     duty when offered'' in subparagraph (A) after ``when 
     offered''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) The Secretary of the Navy may waive the requirements 
     of paragraph (1) in the case of a person who--
       ``(A) becomes unqualified to serve on active duty as an 
     officer due to a circumstance not within the control of the 
     person;
       ``(B) is not physically qualified for appointment under 
     section 532 of this title and later is determined by the 
     Secretary of the Navy under section 505 of this title to be 
     unqualified for service as an enlisted member of the Marine 
     Corps due to a physical or medical condition that was not the 
     result of misconduct or grossly negligent conduct; or
       ``(C) fails to complete the military or academic 
     requirements of the Marine Corps Platoon Leaders Class 
     program due to a circumstance not within the control of the 
     person.''.
       (e) Clarification of Service Excluded in Computation of 
     Creditable Service as a Marine Corps Officer.--(1) Section 
     205(f) of title 37, United States Code, is amended by 
     striking ``that the officer performed concurrently as a 
     member'' and inserting ``that the officer performed 
     concurrently as an enlisted member''.
       (2) Such section is further amended by striking ``section 
     12209'' and inserting ``section 12203''.
       (f) Amendments of Headings.--(1) The heading of section 
     16401 of title 10, United States Code, is amended to read as 
     follows:

     ``Sec. 16401. Marine Corps Platoon Leaders Class: college 
       tuition assistance program''.

       (2) The heading for subsection (a) of such section is 
     amended by striking ``for Financial Assistance Program''.
       (g) Clerical Amendment.--The item relating to such section 
     in the table of chapters at the beginning of chapter1611 of 
     title 10, United States Code, is amended to read as follows:

``16401. Marine Corps Platoon Leaders Class: college tuition assistance 
              program.''.

     SEC. 534. REVIEW OF ALLOCATION OF JUNIOR RESERVE OFFICERS 
                   TRAINING CORPS UNITS AMONG THE SERVICES.

       (a) Reallocation of JROTC Units.--Not later than March 31, 
     2001, the Secretary of Defense shall--
       (1) review the allocation among the military departments of 
     the statutory maximum number of Junior Reserve Officers' 
     Training Corps (JROTC) units; and
       (2) redistribute the allocation of those units planned (as 
     of the date of the enactment of this Act) for fiscal years 
     2001 through 2006 so as to increase the number of units for a 
     military department that proposes to more quickly eliminate 
     the current waiting list for such units and to commit the 
     necessary resources for that purpose.
       (b) Proposal for Increase in Statutory Maximum.--If, based 
     on the review under subsection (a) and the redistribution of 
     the allocation of JROTC units under that subsection, the 
     Secretary determines that an increase in the statutory 
     maximum number of such units is warranted, the Secretary 
     shall include a proposal for such an increase in the budget 
     proposal of the Department of Defense for fiscal year 2002.

     SEC. 535. AUTHORITY FOR NAVAL POSTGRADUATE SCHOOL TO ENROLL 
                   CERTAIN DEFENSE INDUSTRY CIVILIANS IN SPECIFIED 
                   PROGRAMS RELATING TO DEFENSE PRODUCT 
                   DEVELOPMENT.

       (a) In General.--(1) Chapter 605 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 7049. Defense industry civilians: admission to defense 
       product development program

       ``(a) Authority for Admission.--The Secretary of the Navy 
     may permit eligible defense industry employees to receive 
     instruction at the Naval Postgraduate School in accordance 
     with this section. Any such defense industry employee may 
     only be enrolled in, and may only be provided instruction in, 
     a program leading to a masters's degree in a curriculum 
     related to defense product development. No more than 10 such 
     defense industry employees may be enrolled at any one time. 
     Upon successful completion of the course of instruction in 
     which enrolled, any such defense industry employee may be 
     awarded an appropriate degree under section 7048 of this 
     title.
       ``(b) Eligible Defense Industry Employees.--For purposes of 
     this section, an eligible defense industry employee is an 
     individual employed by a private firm that is engaged in 
     providing to the Department of Defense significant and 
     substantial defense-related systems, products, or services. A 
     defense industry employee admitted for instruction at the 
     school remains eligible for such instruction only so long at 
     that person remains employed by the same firm.
       ``(c) Annual Certification by the Secretary of the Navy.--
     Defense industry employees may receive instruction at the 
     school during any academic year only if, before the start of 
     that academic year, the Secretary of the Navy determines, and 
     certifies to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives, that providing instruction to defense 
     industry employees under this section during that year--
       ``(1) will further the military mission of the school;
       ``(2) will enhance the ability of the Department of Defense 
     and defense-oriented private sector contractors engaged in 
     the design and development of defense systems to reduce the 
     product and project lead times required to bring such systems 
     to initial operational capability; and
       ``(3) will be done on a space-available basis and not 
     require an increase in the size of the faculty of the school, 
     an increase in the course offerings of the school, or an 
     increase in the laboratory facilities or other infrastructure 
     of the school.
       ``(d) Program Requirements.--The Secretary of the Navy 
     shall ensure that--
       ``(1) the curriculum for the defense product development 
     program in which defense industry employees may be enrolled 
     under this section is not readily available through other 
     schools and concentrates on defense product development 
     functions that are conducted by military organizations and 
     defense contractors working in close cooperation; and
       ``(2) the course offerings at the school continue to be 
     determined solely by the needs of the Department of Defense.
       ``(e) Tuition.--The Superintendent of the school shall 
     charge tuition for students enrolled under this section at a 
     rate not less than the rate charged for employees of the 
     United States outside the Department of the Navy.
       ``(f) Standards of Conduct.--While receiving instruction at 
     the school, students enrolled under this section, to the 
     extent practicable, are subject to the same regulations 
     governing academic performance, attendance, norms of 
     behavior, and enrollment as apply to Government civilian 
     employees receiving instruction at the school.
       ``(g) Use of Funds.--Amounts received by the school for 
     instruction of students enrolled under this section shall be 
     retained by the school to defray the costs of such 
     instruction. The source, and the disposition, of such funds 
     shall be specifically identified in records of the school.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``7049. Defense industry civilians: admission to defense product 
              development program.''.

       (b) Program Evaluation and Report.--(1) Before the start of 
     the fourth year of instruction, but no earlier than the start 
     of the third year of instruction, of defense industry 
     employees at the Naval Postgraduate School under section 7049 
     of title 10, United States Code, as added by subsection (a), 
     the Secretary of the Navy shall conduct an evaluation of the 
     admission of such students under that section. The evaluation 
     shall include the following:
       (A) An assessment of whether the authority for instruction 
     of nongovernment civilians at

[[Page 21388]]

     the school has resulted in a discernible benefit for the 
     Government.
       (B) Determination of whether the receipt and disposition of 
     funds received by the school as tuition for instruction of 
     such civilians at the school have been properly identified in 
     records of the school.
       (C) A summary of the disposition and uses made of those 
     funds.
       (D) An assessment of whether instruction of such civilians 
     at the school is in the best interests of the Government.
       (2) Not later than 30 days after completing the evaluation 
     referred to in paragraph (1), the 
     Secretary of the Navy shall submit to the Secretary of 
     Defense a report on the program under such section. The 
     report shall include--
       (A) the results of the evaluation under paragraph (1);
       (B) the Secretary's conclusions and recommendation with 
     respect to continuing to allow nongovernment civilians to 
     receive instruction at the Naval Postgraduate School as part 
     of a program related to defense product development; and
       (C) any proposals for legislative changes recommended by 
     the Secretary.
       (3) Not later than 60 days after receiving the report of 
     the Secretary of the Navy under paragraph (2), the Secretary 
     of Defense shall submit the report, together with any 
     comments that the Secretary considers appropriate, to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives.
           Subtitle D--Decorations, Awards, and Commendations

     SEC. 541. LIMITATION ON AWARD OF BRONZE STAR TO MEMBERS IN 
                   RECEIPT OF IMMINENT DANGER PAY.

       (a) In General.--Chapter 57 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1133. Bronze Star: limitation to members receiving 
       imminent danger pay

       ``The decoration known as the `Bronze Star' may only be 
     awarded to a member of the armed forces who is in receipt of 
     special pay under section 310 of title 37 at the time of the 
     events for which the decoration is to be awarded or who 
     receives such pay as a result of those events.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1133. Bronze star: limitation to members receiving imminent danger 
              pay.''.

     SEC. 542. CONSIDERATION OF PROPOSALS FOR POSTHUMOUS OR 
                   HONORARY PROMOTIONS OR APPOINTMENTS OF MEMBERS 
                   OR FORMER MEMBERS OF THE ARMED FORCES AND OTHER 
                   QUALIFIED PERSONS.

       (a) In General.--Chapter 80 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1563. Consideration of proposals for posthumous and 
       honorary promotions and appointments: procedures for review 
       and recommendation

       ``(a) Review by Secretary Concerned.--Upon request of a 
     Member of Congress, the Secretary concerned shall review a 
     proposal for the posthumous or honorary promotion or 
     appointment of a member or former member of the armed forces, 
     or any other person considered qualified, that is not 
     otherwise authorized by law. Based upon such review, the 
     Secretary shall make a determination as to the merits of 
     approving the posthumous or honorary promotion or appointment 
     and the other determinations necessary to comply with 
     subsection (b).
       ``(b) Notice of Results of Review.--Upon making a 
     determination under subsection (a) as to the merits of 
     approving the posthumous or honorary promotion or 
     appointment, the Secretary concerned shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives and to the 
     requesting Member of Congress notice in writing of one of the 
     following:
       ``(1) The posthumous or honorary promotion or appointment 
     does not warrant approval on the merits.
       ``(2) The posthumous or honorary promotion or appointment 
     warrants approval and authorization by law for the promotion 
     or appointment is recommended.
       ``(3) The posthumous or honorary promotion or appointment 
     warrants approval on the merits and has been recommended to 
     the President as an exception to policy.
       ``(4) The posthumous or honorary promotion or appointment 
     warrants approval on the merits and authorization by law for 
     the promotion or appointment is required but is not 
     recommended.
     A notice under paragraph (1) or (4) shall be accompanied by a 
     statement of the reasons for the decision of the Secretary.
       ``(c) Definition.--In this section, the term `Member of 
     Congress' means--
       ``(1) a Senator; or
       ``(2) a Representative in, or a Delegate or Resident 
     Commissioner to, Congress.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1563. Consideration of proposals for posthumous and honorary 
              promotions and appointments: procedures for review and 
              recommendation.''.

     SEC. 543. 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 Louis Rickler, of Rochester, New York, for 
     gallantry in action from August 18 to November 18, 1918, 
     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 or Korea (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 5, 1999, 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. 544. ADDITION OF CERTAIN INFORMATION TO MARKERS ON 
                   GRAVES CONTAINING REMAINS OF CERTAIN UNKNOWNS 
                   FROM THE U.S.S. ARIZONA WHO DIED IN THE 
                   JAPANESE ATTACK ON PEARL HARBOR ON DECEMBER 7, 
                   1941.

       (a) Information To Be Provided Secretary of Veterans 
     Affairs.--The Secretary of the Army shall provide to the 
     Secretary of Veterans Affairs certain information, as 
     specified in subsection (b), pertaining to the remains of 
     certain unknown persons that are interred in the National 
     Memorial Cemetery of the Pacific, Honolulu, Hawaii. The 
     Secretary of Veterans Affairs shall add to the inscriptions 
     on the markers on the graves containing those remains the 
     information provided.
       (b) Information To Be Added--The information to be added to 
     grave markers under subsection (a)--
       (1) shall be determined by the Secretary of the Army, based 
     on a review of the information that, as of the date of the 
     enactment of this Act, has been authenticated by the director 
     of the Naval Historical Center, Washington, D.C., pertaining 
     to the interment of remains of certain unknown casualties 
     from the U.S.S. ARIZONA who died as a result of the Japanese 
     attack on Pearl Harbor on December 7, 1941; and
       (2) shall, at a minimum, indicate that the interred remains 
     are from the U.S.S. ARIZONA.
       (c) Limitation of Scope of Section.--This section does not 
     impose any requirement on the Secretary of the Army to 
     undertake a review of any information pertaining to the 
     interred remains of any unknown person other than as provided 
     in subsection (b).

     SEC. 545. SENSE OF CONGRESS ON THE COURT-MARTIAL CONVICTION 
                   OF CAPTAIN CHARLES BUTLER MCVAY, COMMANDER OF 
                   THE U.S.S. INDIANAPOLIS, AND ON THE COURAGEOUS 
                   SERVICE OF THE CREW OF THAT VESSEL.

       (a) Findings.--Congress makes the following findings:
       (1) Shortly after midnight on the morning of July 30, 1945, 
     during the closing days of World War II, the United States 
     Navy heavy cruiser U.S.S. Indianapolis (CA-35) was torpedoed 
     and sunk by the Japanese submarine I-58 in what became the 
     worst sea disaster in the history of the United States Navy.
       (2) Although approximately 900 of the ship's crew of 1,196 
     survived the actual sinking, only 316 of those courageous 
     sailors survived when rescued after four and a half days 
     adrift in the open sea, the remainder having perishing from 
     battle wounds, drowning, predatory shark attacks, exposure to 
     the elements, and lack of food and potable water.
       (3) Rescue for the remaining 316 sailors came only when 
     they were spotted by chance by Navy Lieutenant Wilbur C. 
     Gwinn while flying a routine naval air patrol mission.
       (4) After the end of World War II, the commanding officer 
     of the U.S.S. Indianapolis, Captain Charles Butler McVay, 
     III, who was rescued with the other survivors, was court-
     martialed for ``suffering a vessel to be hazarded through 
     negligence'' by failing to zigzag (a naval tactic employed to 
     help evade submarine attacks) and was convicted even though--
       (A) the choice to zigzag was left to Captain McVay's 
     discretion in his orders; and
       (B) Motchisura Hashimoto, the commander of the Japanese 
     submarine that sank the U.S.S. Indianapolis, and Glynn R. 
     Donaho, a United States Navy submarine commander highly 
     decorated for his service during World War II, both testified 
     at Captain McVay's court-martial trial that the Japanese 
     submarine could have sunk the U.S.S. Indianapolis whether or 
     not it had been zigzagging, an assertion that has since been 
     reaffirmed in a letter to the Chairman of the Committee on 
     Armed Services of the Senate dated November 24, 1999.
       (5) Although not argued by Captain McVay's defense counsel 
     in the court-martial trial, poor visibility on the night of 
     the sinking (as attested in surviving crew members' 
     handwritten accounts recently discovered at the National 
     Archives) justified Captain McVay's choice not to zigzag as 
     that choice was consistent with the applicable Navy 
     directives in force in 1945, which stated that, ``During 
     thick weather and

[[Page 21389]]

     at night, except on very clear nights or during bright 
     moonlight, vessels normally cease zig-zagging.''.
       (6) Before the U.S.S. Indianapolis sailed from Guam on what 
     became her final voyage, Naval officials failed to provide 
     Captain McVay with available support that was critical to the 
     safety of the U.S.S. Indianapolis and her crew by--
       (A) disapproving a request made by Captain McVay for a 
     destroyer escort for the U.S.S. Indianapolis across the 
     Philippine Sea as being ``not necessary'';
       (B) not informing Captain McVay that naval intelligence 
     sources, through signal intelligence (the Japanese code 
     having been broken earlier in World War II), had become aware 
     that the Japanese submarine I-58 was operating in the area of 
     the U.S.S. Indianapolis' course (as disclosed in evidence 
     presented in a hearing of the Committee on Armed Services of 
     the Senate conducted September 14, 1999); and
       (C) not informing Captain McVay of the sinking of the 
     destroyer escort U.S.S. Underhill by a Japanese submarine 
     within range of the course of the U.S.S. Indianapolis four 
     days before the U.S.S. Indianapolis departed Guam for the 
     Philippine Islands.
       (7) Captain McVay's court-martial initially was opposed by 
     his immediate command superiors, Fleet Admiral Chester Nimitz 
     (CINCPAC) and Vice Admiral Raymond Spruance of the 5th fleet, 
     for whom the U.S.S. Indianapolis had served as flagship, but, 
     despite their recommendations, Secretary of the Navy James 
     Forrestal ordered the court-martial, largely on the basis of 
     the recommendation of Fleet Admiral Ernest King, Chief of 
     Naval Operations.
       (8) There is no explanation on the public record for the 
     overruling by Secretary Forestal of the recommendations made 
     by Admirals Nimitz and Spruance.
       (9) Captain McVay was the only commander of a United States 
     Navy vessel lost in combat to enemy action during World War 
     II who was subjected to a court-martial trial for such a 
     loss, even though several hundred United States Navy ships 
     were lost in combat to enemy action during World War II.
       (10) The survivors of the U.S.S. Indianapolis 
     overwhelmingly conclude that Captain McVay was not at fault 
     in the loss of the Indianapolis and have dedicated their 
     lives to vindicating their Captain McVay.
       (11) Although promoted to the grade of rear admiral in 
     accordance with then-applicable law upon retirement from the 
     Navy in 1949, Captain McVay never recovered from the stigma 
     of his post-war court-martial and in 1968, tragically, took 
     his own life.
       (12) Charles Butler McVay, III--
       (A) was a graduate of the United States Naval Academy;
       (B) was an exemplary career naval officer with an 
     outstanding record (including participation in the amphibious 
     invasions of North Africa, the assault on Iwo Jima, and the 
     assault on Okinawa where the U.S.S. Indianapolis under his 
     command survived a fierce kamikaze attack);
       (C) was a recipient of the Silver Star earned for courage 
     under fire during the Solomon Islands campaign; and
       (D) with the crew of the U.S.S. Indianapolis, had so 
     thoroughly demonstrated proficiency in naval warfare that the 
     Navy entrusted him and the crew of the U.S.S. Indianapolis 
     with transporting to the Pacific theater components necessary 
     for assembling the atomic bombs that were exploded over 
     Hiroshima and Nagasaki to end the war with Japan (delivery of 
     such components to the island of Tinian having been 
     accomplished on July 25, 1945).
       (b) Sense of Congress Concerning Charles Butler McVay, 
     III.--With respect to the sinking of the U.S.S. Indianapolis 
     (CA-35) on July 30, 1945, and the subsequent court-martial 
     conviction of the ship's commanding officer, Captain Charles 
     Butler McVay, III, arising from that sinking, it is the sense 
     of Congress, based on the review of evidence by the Senate 
     and the House of Representatives--
       (1) that, in light of the remission by the Secretary of the 
     Navy of the sentence of the court-martial and the restoration 
     of Captain McVay to active duty by the Chief of Naval 
     Operations, Fleet Admiral Chester Nimitz, the American people 
     should now recognize Captain McVay's lack of culpability for 
     the tragic loss of the U.S.S. Indianapolis and the lives of 
     the men who died as a result of the sinking of that vessel; 
     and
       (2) that, in light of the fact that certain exculpatory 
     information was not available to the court-martial board and 
     that Captain McVay's conviction resulted therefrom, Captain 
     McVay's military record should now reflect that he is 
     exonerated for the loss of the U.S.S. Indianapolis and so 
     many of her crew.
       (c) Unit Citation for Final Crew of U.S.S. Indianapolis.--
     The Secretary of the Navy should award a Navy Unit 
     Commendation to the U.S.S. Indianapolis (CA-35) and her final 
     crew.

     SEC. 546. POSTHUMOUS ADVANCEMENT ON RETIRED LIST OF REAR 
                   ADMIRAL HUSBAND E. KIMMEL AND MAJOR GENERAL 
                   WALTER C. SHORT, SENIOR OFFICERS IN COMMAND IN 
                   HAWAII ON DECEMBER 7, 1941.

       (a) Findings.--Congress makes the following findings:
       (1) The late Rear Admiral Husband E. Kimmel, while serving 
     in the temporary grade of admiral, was the Commander in Chief 
     of the United States Fleet and the Commander in Chief, United 
     States Pacific Fleet, at the time of the Japanese attack on 
     Pearl Harbor, Hawaii, on December 7, 1941, with an excellent 
     and unassailable record throughout his career in the United 
     States Navy before that date.
       (2) The late Major General Walter C. Short, while serving 
     in the temporary grade of lieutenant general, was the 
     Commander of the United States Army Hawaiian Department, at 
     the time of the Japanese attack on Pearl Harbor, Hawaii, on 
     December 7, 1941, with an excellent and unassailable record 
     throughout his career in the United States Army before that 
     date.
       (3) Numerous investigations following the attack on Pearl 
     Harbor have documented that Admiral Kimmel and Lieutenant 
     General Short were not provided necessary and critical 
     intelligence that was available, that foretold of war with 
     Japan, that warned of imminent attack, and that would have 
     alerted them to prepare for the attack, including such 
     essential communiques as the Japanese Pearl Harbor Bomb Plot 
     message of September 24, 1941, and the message sent from the 
     Imperial Japanese Foreign Ministry to the Japanese Ambassador 
     in the United States from December 6 to 7, 1941, known as the 
     Fourteen-Part Message.
       (4) On December 16, 1941, Admiral Kimmel and Lieutenant 
     General Short were relieved of their commands and returned to 
     their permanent grades of rear admiral and major general, 
     respectively.
       (5) Admiral William Harrison Standley, who served as a 
     member of the investigating commission known as the Roberts 
     Commission that accused Admiral Kimmel and Lieutenant General 
     Short of ``dereliction of duty'' only six weeks after the 
     attack on Pearl Harbor, later disavowed the report, 
     maintaining that ``these two officers were martyred'' and 
     ``if they had been brought to trial, both would have been 
     cleared of the charge''.
       (6) On October 19, 1944, a Naval Court of Inquiry--
       (A) exonerated Admiral Kimmel on the grounds that his 
     military decisions and the disposition of his forces at the 
     time of the December 7, 1941, attack on Pearl Harbor were 
     proper ``by virtue of the information that Admiral Kimmel had 
     at hand which indicated neither the probability nor the 
     imminence of an air attack on Pearl Harbor'';
       (B) criticized the higher command for not sharing with 
     Admiral Kimmel ``during the very critical period of November 
     26 to December 7, 1941, important information . . . regarding 
     the Japanese situation''; and
       (C) concluded that the Japanese attack and its outcome was 
     attributable to no serious fault on the part of anyone in the 
     naval service.
       (7) On June 15, 1944, an investigation conducted by Admiral 
     T. C. Hart at the direction of the Secretary of the Navy 
     produced evidence, subsequently confirmed, that essential 
     intelligence concerning Japanese intentions and war plans was 
     available in Washington but was not shared with Admiral 
     Kimmel.
       (8) On October 20, 1944, the Army Pearl Harbor Board of 
     Investigation determined that--
       (A) Lieutenant General Short had not been kept ``fully 
     advised of the growing tenseness of the Japanese situation 
     which indicated an increasing necessity for better 
     preparation for war'';
       (B) detailed information and intelligence about Japanese 
     intentions and war plans were available in ``abundance'' but 
     were not shared with the Lieutenant General Short's Hawaii 
     command; and
       (C) Lieutenant General Short was not provided ``on the 
     evening of December 6th and the early morning of December 
     7th, the critical information indicating an almost immediate 
     break with Japan, though there was ample time to have 
     accomplished this''.
       (9) The reports by both the Naval Court of Inquiry and the 
     Army Pearl Harbor Board of Investigation were kept secret, 
     and Rear Admiral Kimmel and Major General Short were denied 
     their requests to defend themselves through trial by court-
     martial.
       (10) The joint committee of Congress that was established 
     to investigate the conduct of Admiral Kimmel and Lieutenant 
     General Short completed, on May 31, 1946, a 1,075-page report 
     which included the conclusions of the committee that the two 
     officers had not been guilty of dereliction of duty.
       (11) On April 27, 1954, the Chief of Naval Personnel, 
     Admiral J. L. Holloway, Jr., recommended that Rear Admiral 
     Kimmel be advanced in rank in accordance with the provisions 
     of the Officer Personnel Act of 1947.
       (12) On November 13, 1991, a majority of the members of the 
     Board for the Correction of Military Records of the 
     Department of the Army found that Major General Short ``was 
     unjustly held responsible for the Pearl Harbor disaster'' and 
     that ``it would be equitable and just'' to advance him to the 
     rank of lieutenant general on the retired list.
       (13) In October 1994, the Chief of Naval Operations, 
     Admiral Carlisle Trost, withdrew his 1988 recommendation 
     against the advancement of Rear Admiral Kimmel and 
     recommended that his case be reopened.
       (14) Although the Dorn Report, a report on the results of a 
     Department of Defense study that was issued on December 15, 
     1995, did not provide support for an advancement of Rear 
     Admiral Kimmel or Major General Short in grade, it did set 
     forth as a conclusion of the study that ``responsibility for 
     the Pearl Harbor disaster should not fall solely on the 
     shoulders of Admiral Kimmel and Lieutenant General Short, it 
     should be broadly shared''.
       (15) The Dorn Report found--
       (A) that ``Army and Navy officials in Washington were privy 
     to intercepted Japanese diplomatic communications . . . which 
     provided crucial confirmation of the imminence of war'';

[[Page 21390]]

       (B) that ``the evidence of the handling of these messages 
     in Washington reveals some ineptitude, some unwarranted 
     assumptions and misestimations, limited coordination, 
     ambiguous language, and lack of clarification and followup at 
     higher levels''; and
       (C) that ``together, these characteristics resulted in 
     failure . . . to appreciate fully and to convey to the 
     commanders in Hawaii the sense of focus and urgency that 
     these intercepts should have engendered''.
       (16) On July 21, 1997, Vice Admiral David C. Richardson 
     (United States Navy, retired) responded to the Dorn Report 
     with his own study which confirmed findings of the Naval 
     Court of Inquiry and the Army Pearl Harbor Board of 
     Investigation and established, among other facts, that the 
     war effort in 1941 was undermined by a restrictive 
     intelligence distribution policy, and the degree to which the 
     commanders of the United States forces in Hawaii were not 
     alerted about the impending attack on Hawaii was directly 
     attributable to the withholding of intelligence from Admiral 
     Kimmel and Lieutenant General Short.
       (17) The Officer Personnel Act of 1947, in establishing a 
     promotion system for the Navy and the Army, provided a legal 
     basis for the President to honor any officer of the Armed 
     Forces of the United States who served his country as a 
     senior commander during World War II with a placement of that 
     officer, with the advice and consent of the Senate, on the 
     retired list with the highest grade held while on the active 
     duty list.
       (18) Rear Admiral Kimmel and Major General Short are the 
     only two officers eligible for advancement under the Officer 
     Personnel Act of 1947 as senior World War II commanders who 
     were excluded from the list of retired officers presented for 
     advancement on the retired lists to their highest wartime 
     grades under that Act.
       (19) This singular exclusion of those two officers from 
     advancement on the retired list serves only to perpetuate the 
     myth that the senior commanders in Hawaii were derelict in 
     their duty and responsible for the success of the attack on 
     Pearl Harbor, a distinct and unacceptable expression of 
     dishonor toward two of the finest officers who have served in 
     the Armed Forces of the United States.
       (20) Major General Walter Short died on September 23, 1949, 
     and Rear Admiral Husband Kimmel died on May 14, 1968, without 
     the honor of having been returned to their wartime grades as 
     were their fellow commanders of World War II.
       (21) The Veterans of Foreign Wars, the Pearl Harbor 
     Survivors Association, the Admiral Nimitz Foundation, the 
     Naval Academy Alumni Association, the Retired Officers 
     Association, and the Pearl Harbor Commemorative Committee, 
     and other associations and numerous retired military officers 
     have called for the rehabilitation of the reputations and 
     honor of Admiral Kimmel and Lieutenant General Short through 
     their posthumous advancement on the retired lists to their 
     highest wartime grades.
       (b) Advancement of Rear Admiral Kimmel and Major General 
     Short on Retired Lists.--(1) The President is requested--
       (A) to advance the late Rear Admiral Husband E. Kimmel, 
     United States Navy (retired), to the grade of admiral on the 
     retired list of the Navy; and
       (B) to advance the late Major General Walter C. Short, 
     United States Army (retired), to the grade of lieutenant 
     general on the retired list of the Army.
       (2) Any advancement in grade on a retired list requested 
     under paragraph (1) shall not increase or change the 
     compensation or benefits from the United States to which any 
     person is now or may in the future be entitled based upon the 
     military service of the officer advanced.
       (c) Sense of Congress Regarding the Professional 
     Performance of Admiral Kimmel and Lieutenant General Short.--
     It is the sense of Congress--
       (1) that the late Rear Admiral Husband E. Kimmel performed 
     his duties as Commander in Chief, United States Pacific 
     Fleet, competently and professionally and, therefore, that 
     the losses incurred by the United States in the attacks on 
     the naval base at Pearl Harbor, Hawaii, and other targets on 
     the island of Oahu, Hawaii, on December 7, 1941, were not a 
     result of dereliction in the performance of those duties by 
     then Admiral Kimmel; and
       (2) that the late Major General Walter C. Short performed 
     his duties as Commanding General, Hawaiian Department, 
     competently and professionally and, therefore, that the 
     losses incurred by the United States in the attacks on Hickam 
     Army Air Field and Schofield Barracks, Hawaii, and other 
     targets on the island of Oahu, Hawaii, on December 7, 1941, 
     were not a result of dereliction in the performance of those 
     duties by then Lieutenant General Short.

     SEC. 547. COMMENDATION OF CITIZENS OF REMY, FRANCE, FOR WORLD 
                   WAR II ACTIONS.

       (a) Findings.--The Congress finds the following:
       (1) On August 2, 1944, a squadron of P-51s from the United 
     States 364th Fighter Group strafed a German munitions train 
     in Remy, France.
       (2) The resulting explosion killed Lieutenant Houston 
     Braly, one of the attacking pilots, and destroyed much of the 
     village of Remy, including seven stained glass windows in the 
     13th century church.
       (3) Despite threats of reprisals from the occupying German 
     authorities, the citizens of Remy recovered Lieutenant 
     Braly's body from the wreckage, buried his body with dignity 
     and honor in the church's cemetery, and decorated the grave 
     site daily with fresh flowers.
       (4) On Armistice Day, 1995, the village of Remy renamed the 
     crossroads near the site of Lieutenant Braly's death in his 
     honor.
       (5) The surviving members of the 364th Fighter Group desire 
     to express their gratitude to the brave citizens of Remy.
       (6) To express their gratitude, the surviving members of 
     the 364th Fighter Group have organized a nonprofit 
     corporation to raise funds, through its project ``Windows for 
     Remy'', to restore the church's stained glass windows.
       (b) Commendation and Recognition.--The Congress commends 
     the bravery and honor of the citizens of Remy, France, for 
     their actions with respect to the American fighter pilot 
     Lieutenant Houston Braly during and after August 1944, and 
     recognizes the efforts of the surviving members of the United 
     States 364th Fighter Group to raise funds to restore the 
     stained glass windows of Remy's 13th century church.

     SEC. 548. AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO 
                   WILLIAM H. PITSENBARGER FOR VALOR DURING THE 
                   VIETNAM WAR.

       (a) Waiver of Time Limitations.--Notwithstanding the period 
     of limitations specified in section 8744 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 Air 
     Force, the President may award the Medal of Honor under 
     section 8741 of that title, posthumously, to William H. 
     Pitsenbarger of Piqua, Ohio, for the acts of valor referred 
     to in subsection (b).
       (b) Action Defined.--The acts of valor referred to in 
     subsection (a) are the actions of William H. Pitsenbarger on 
     April 11, 1966, as an Air Force pararescue crew member, 
     serving in the grade of Airman First Class at Cam My, 
     Republic of Vietnam, with Detachment 6, 38th Aerospace Rescue 
     and Recovery Helicopter Squadron, in support of the combat 
     mission known as ``Operations Abilene''.
       Subtitle E--Military Justice and Legal Assistance Matters

     SEC. 551. RECOGNITION BY STATES OF MILITARY TESTAMENTARY 
                   INSTRUMENTS.

       (a) In General.--Chapter 53 of title 10, United States 
     Code, is amended by inserting after section 1044c the 
     following new section:

     ``Sec. 1044d. Military testamentary instruments: requirement 
       for recognition by States

       ``(a) Testamentary Instruments To Be Given Legal Effect.--A 
     military testamentary instrument--
       ``(1) is exempt from any requirement of form, formality, or 
     recording before probate that is provided for testamentary 
     instruments under the laws of a State; and
       ``(2) has the same legal effect as a testamentary 
     instrument prepared and executed in accordance with the laws 
     of the State in which it is presented for probate.
       ``(b) Military Testamentary Instruments.--For purposes of 
     this section, a military testamentary instrument is an 
     instrument that is prepared with testamentary intent in 
     accordance with regulations prescribed under this section and 
     that--
       ``(1) is executed in accordance with subsection (c) by (or 
     on behalf of) a person, as a testator, who is eligible for 
     military legal assistance;
       ``(2) makes a disposition of property of the testator; and
       ``(3) takes effect upon the death of the testator.
       ``(c) Requirements for Execution of Military Testamentary 
     Instruments.--An instrument is valid as a military 
     testamentary instrument only if--
       ``(1) the instrument is executed by the testator (or, if 
     the testator is unable to execute the instrument personally, 
     the instrument is executed in the presence of, by the 
     direction of, and on behalf of the testator);
       ``(2) the instrument is executed in the presence of a 
     military legal assistance counsel acting as presiding 
     attorney;
       ``(3) the instrument is executed in the presence of at 
     least two disinterested witnesses (in addition to the 
     presiding attorney), each of whom attests to witnessing the 
     testator's execution of the instrument by signing it; and
       ``(4) the instrument is executed in accordance with such 
     additional requirements as may be provided in regulations 
     prescribed under this section.
       ``(d) Self-Proving Military Testamentary Instruments.--(1) 
     If the document setting forth a military testamentary 
     instrument meets the requirements of paragraph (2), then the 
     signature of a person on the document as the testator, an 
     attesting witness, a notary, or the presiding attorney, 
     together with a written representation of the person's status 
     as such and the person's military grade (if any) or other 
     title, is prima facie evidence of the following:
       ``(A) That the signature is genuine.
       ``(B) That the signatory had the represented status and 
     title at the time of the execution of the will.
       ``(C) That the signature was executed in compliance with 
     the procedures required under the regulations prescribed 
     under subsection (f).
       ``(2) A document setting forth a military testamentary 
     instrument meets the requirements of this paragraph if it 
     includes (or has attached to it), in a form and content 
     required under the regulations prescribed under subsection 
     (f), each of the following:
       ``(A) A certificate, executed by the testator, that 
     includes the testator's acknowledgment of the testamentary 
     instrument.
       ``(B) An affidavit, executed by each witness signing the 
     testamentary instrument, that attests to the circumstances 
     under which the testamentary instrument was executed.

[[Page 21391]]

       ``(C) A notarization, including a certificate of any 
     administration of an oath required under the regulations, 
     that is signed by the notary or other official administering 
     the oath.
       ``(e) Statement To Be Included.--(1) Under regulations 
     prescribed under this section, each military testamentary 
     instrument shall contain a statement that sets forth the 
     provisions of subsection (a).
       ``(2) Paragraph (1) shall not be construed to make 
     inapplicable the provisions of subsection (a) to a 
     testamentary instrument that does not include a statement 
     described in that paragraph.
       ``(f) Regulations.--Regulations for the purposes of this 
     section shall be prescribed jointly by the Secretary of 
     Defense and by the Secretary of Transportation with respect 
     to the Coast Guard when it is not operating as a service in 
     the Department of the Navy.
       ``(g) Definitions.--In this section:
       ``(1) The term `person eligible for military legal 
     assistance' means a person who is eligible for legal 
     assistance under section 1044 of this title.
       ``(2) The term `military legal assistance counsel' means--
       ``(A) a judge advocate (as defined in section 801(13) of 
     this title); or
       ``(B) a civilian attorney serving as a legal assistance 
     officer under the provisions of section 1044 of this title.
       ``(3) The term `State' includes the District of Columbia, 
     the Commonwealth of Puerto Rico, the Commonwealth of the 
     Northern Mariana Islands, and each possession of the United 
     States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1044c the following new item:

``1044d. Military testamentary instruments: requirement for recognition 
              by States.''.

     SEC. 552. POLICY CONCERNING RIGHTS OF INDIVIDUALS WHOSE NAMES 
                   HAVE BEEN ENTERED INTO DEPARTMENT OF DEFENSE 
                   OFFICIAL CRIMINAL INVESTIGATIVE REPORTS.

       (a) Policy Requirement.--The Secretary of Defense shall 
     establish a policy creating a uniform process within the 
     Department of Defense that--
       (1) affords any individual who, in connection with the 
     investigation of a reported crime, is designated (by name or 
     by any other identifying information) as a suspect in the 
     case in any official investigative report, or in a central 
     index for potential retrieval and analysis by law enforcement 
     organizations, an opportunity to obtain a review of that 
     designation; and
       (2) requires the expungement of the name and other 
     identifying information of any such individual from such 
     report or index in any case in which it is determined the 
     entry of such identifying information on that individual was 
     made contrary to Department of Defense requirements.
       (b) Effective Date.--The policy required by subsection (a) 
     shall be established not later than 120 days after the date 
     of the enactment of this Act.

     SEC. 553. LIMITATION ON SECRETARIAL AUTHORITY TO GRANT 
                   CLEMENCY FOR MILITARY PRISONERS SERVING 
                   SENTENCE OF CONFINEMENT FOR LIFE WITHOUT 
                   ELIGIBILITY FOR PAROLE.

       (a) Limitation.--Section 874(a) of title 10, United States 
     Code (article 74(a) of the Uniform Code of Military Justice), 
     is amended by adding at the end the following new sentence: 
     ``However, in the case of a sentence of confinement for life 
     without eligibility for parole, after the sentence is ordered 
     executed, the authority of the Secretary concerned under the 
     preceding sentence (1) may not be delegated, and (2) may be 
     exercised only after the service of a period of confinement 
     of not less than 20 years.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall not apply with respect to a sentence of confinement for 
     life without eligibility for parole that is adjudged for an 
     offense committed before the date of the enactment of this 
     Act.

     SEC. 554. AUTHORITY FOR CIVILIAN SPECIAL AGENTS OF MILITARY 
                   DEPARTMENT CRIMINAL INVESTIGATIVE ORGANIZATIONS 
                   TO EXECUTE WARRANTS AND MAKE ARRESTS.

       (a) Department of the Army.--(1) Chapter 373 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 4027. Civilian special agents of the Criminal 
       Investigation Command: authority to execute warrants and 
       make arrests

       ``(a) Authority.--The Secretary of the Army may authorize 
     any Department of the Army civilian employee described in 
     subsection (b) to have the same authority to execute and 
     serve warrants and other processes issued under the authority 
     of the United States and to make arrests without a warrant as 
     may be authorized under section 1585a of this title for 
     special agents of the Defense Criminal Investigative Service.
       ``(b) Agents To Have Authority.--Subsection (a) applies to 
     any employee of the Department of the Army who is a special 
     agent of the Army Criminal Investigation Command (or a 
     successor to that command) whose duties include conducting, 
     supervising, or coordinating investigations of criminal 
     activity in programs and operations of the Department of the 
     Army.
       ``(c) Guidelines for Exercise of Authority.--The authority 
     provided under subsection (a) shall be exercised in 
     accordance with guidelines prescribed by the Secretary of the 
     Army and approved by the Secretary of Defense and the 
     Attorney General and any other applicable guidelines 
     prescribed by the Secretary of the Army, the Secretary of 
     Defense, or the Attorney General.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end following new item:

``4027. Civilian special agents of the Criminal Investigation Command: 
              authority to execute warrants and make arrests.''.
       (b) Department of the Navy.--(1) Chapter 643 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 7480. Special agents of the Naval Criminal 
       Investigative Service: authority to execute warrants and 
       make arrests

       ``(a) Authority.--The Secretary of the Navy may authorize 
     any Department of the Navy civilian employee described in 
     subsection (b) to have the same authority to execute and 
     serve warrants and other processes issued under the authority 
     of the United States and to make arrests without a warrant as 
     may be authorized under section 1585a of this title for 
     special agents of the Defense Criminal Investigative Service.
       ``(b) Agents To Have Authority.--Subsection (a) applies to 
     any employee of the Department of the Navy who is a special 
     agent of the Naval Criminal Investigative Service (or any 
     successor to that service) whose duties include conducting, 
     supervising, or coordinating investigations of criminal 
     activity in programs and operations of the Department of the 
     Navy.
       ``(c) Guidelines for Exercise of Authority.--The authority 
     provided under subsection (a) shall be exercised in 
     accordance with guidelines prescribed by the Secretary of the 
     Navy and approved by the Secretary of Defense and the 
     Attorney General and any other applicable guidelines 
     prescribed by the Secretary of the Navy, the Secretary of 
     Defense, or the Attorney General.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end following new item:

``7480. Special agents of the Naval Criminal Investigative Service: 
              authority to execute warrants and make arrests.''.
       (c) Department of the Air Force.--(1) Chapter 873 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 9027. Civilian special agents of the Office of Special 
       Investigations: authority to execute warrants and make 
       arrests

       ``(a) Authority.--The Secretary of the Air Force may 
     authorize any Department of the Air Force civilian employee 
     described in subsection (b) to have the same authority to 
     execute and serve warrants and other processes issued under 
     the authority of the United States and to make arrests 
     without a warrant as may be authorized under section 1585a of 
     this title for special agents of the Defense Criminal 
     Investigative Service.
       ``(b) Agents To Have Authority.--Subsection (a) applies to 
     any employee of the Department of the Air Force who is a 
     special agent of the Air Force Office of Special 
     Investigations (or a successor to that office) whose duties 
     include conducting, supervising, or coordinating 
     investigations of criminal activity in programs and 
     operations of the Department of the Air Force.
       ``(c) Guidelines for Exercise of Authority.--The authority 
     provided under subsection (a) shall be exercised in 
     accordance with guidelines prescribed by the Secretary of the 
     Air Force and approved by the Secretary of Defense and the 
     Attorney General and any other applicable guidelines 
     prescribed by the Secretary of the Air Force, the Secretary 
     of Defense, or the Attorney General.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end following new item:

``9027. Civilian special agents of the Office of Special 
              Investigations: authority to execute warrants and make 
              arrests.''.

     SEC. 555. REQUIREMENT FOR VERBATIM RECORD IN CERTAIN SPECIAL 
                   COURT-MARTIAL CASES.

       (a) When Required.--Subsection (c)(1)(B) of section 854 of 
     title 10, United States Code (article 54 of the Uniform Code 
     of Military Justice), is amended by inserting after ``bad-
     conduct discharge'' the following: ``, confinement for more 
     than six months, or forfeiture of pay for more than six 
     months''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as of April 1, 2000, and shall apply with 
     respect to charges referred on or after that date to trial by 
     special court-martial.

     SEC. 556. COMMEMORATION OF THE 50TH ANNIVERSARY OF THE 
                   UNIFORM CODE OF MILITARY JUSTICE.

       (a) Findings.--Congress makes the following findings:
       (1) The American military justice system predates the 
     United States itself, having had a continuous existence since 
     the enactment of the first American Articles of War by the 
     Continental Congress in 1775.
       (2) Pursuant to article I of the Constitution, which 
     explicitly empowers Congress ``To make Rules for the 
     Government and Regulation of the land and naval Forces'', 
     Congress enacted the Articles of War and an Act to Govern the 
     Navy,

[[Page 21392]]

     which were revised on several occasions between the 
     ratification of the Constitution and the end of World War II.
       (3) Dissatisfaction with the administration of military 
     justice during World War I and World War II (including 
     dissatisfaction arising from separate systems of justice for 
     the Army and for the Navy and Marine Corps) led both to 
     significant statutory reforms in the Articles of War and to 
     the convening of a committee, under Department of Defense 
     auspices, to draft a single code of military justice 
     applicable uniformly to all of the Armed Forces.
       (4) The committee, chaired by Professor Edmund M. Morgan of 
     Harvard Law School, made recommendations that formed the 
     basis of bills introduced in Congress to establish such a 
     uniform code of military justice.
       (5) After lengthy hearings and debate on the congressional 
     proposals, the Uniform Code of Military Justice was enacted 
     into law on May 5, 1950, when President Harry S Truman signed 
     the legislation.
       (6) President Truman then issued a revised Manual for 
     Courts-Martial implementing the new code, and the code became 
     effective on May 31, 1951.
       (7) One of the greatest innovations of the Uniform Code of 
     Military Justice (now codified as chapter 47 of title 10, 
     United States Code) was the establishment of a civilian court 
     of appeals within the military justice system. That court, 
     the United States Court of Military Appeals (now the United 
     States Court of Appeals for the Armed Forces), held its first 
     session on July 25, 1951.
       (8) Congress enacted major revisions of the Uniform Code of 
     Military Justice in 1968 and 1983 and, in addition, has 
     amended the code from time to time over the years as practice 
     under the code indicated a need for updating the substance or 
     procedure of the law of military justice.
       (9) The evolution of the system of military justice under 
     the Uniform Code of Military Justice may be traced in the 
     decisions of the Courts of Criminal Appeals of each of the 
     Armed Forces and the decisions of the United States Court of 
     Appeals for the Armed Forces. These courts have produced a 
     unique body of jurisprudence upon which commanders and judge 
     advocates rely in the performance of their duties.
       (10) It is altogether fitting that the 50th anniversary of 
     the Uniform Code of Military Justice be duly commemorated.
       (b) Commemoration.--The Congress--
       (1) requests the President to issue a proclamation 
     commemorating the 50th anniversary of the Uniform Code of 
     Military Justice; and
       (2) calls upon the Department of Defense, the Armed Forces, 
     and the United States Court of Appeals for the Armed Forces 
     and interested organizations and members of the bar and the 
     public to commemorate the occasion of that anniversary with 
     ceremonies and activities befitting its importance.
               Subtitle F--Matters Relating to Recruiting

     SEC. 561. ARMY RECRUITING PILOT PROGRAMS.

       (a) Requirement for Programs.--The Secretary of the Army 
     shall carry out pilot programs to test various recruiting 
     approaches under this section for the following purposes:
       (1) To assess the effectiveness of the recruiting 
     approaches for creating enhanced opportunities for recruiters 
     to make direct, personal contact with potential recruits.
       (2) To improve the overall effectiveness and efficiency of 
     Army recruiting activities.
       (b) Outreach Through Motor Sports.--(1) One of the pilot 
     programs shall be a pilot program of public outreach that 
     associates the Army with motor sports competitions to achieve 
     the objectives set forth in paragraph (2).
       (2) The events and activities undertaken under the pilot 
     program shall be designed to provide opportunities for Army 
     recruiters to make direct, personal contact with high school 
     students to achieve the following objectives:
       (A) To increase enlistments by students graduating from 
     high school.
       (B) To reduce attrition in the Delayed Entry Program of the 
     Army by sustaining the personal commitment of students who 
     have elected delayed entry into the Army under the program.
       (3) Under the pilot program, the Secretary of the Army 
     shall provide for the following:
       (A) For Army recruiters or other Army personnel--
       (i) to organize Army sponsored career day events in 
     association with national motor sports competitions; and
       (ii) to arrange for or encourage attendance at the 
     competitions by high school students, teachers, guidance 
     counselors, and administrators of high schools located near 
     the competitions.
       (B) For Army recruiters and other soldiers to attend 
     national motor sports competitions--
       (i) to display exhibits depicting the contemporary Army and 
     career opportunities in the Army; and
       (ii) to discuss those opportunities with potential 
     recruits.
       (C) For the Army to sponsor a motor sports racing team as 
     part of an integrated program of recruitment and publicity 
     for the Army.
       (D) For the Army to sponsor motor sports competitions for 
     high school students at which recruiters meet with potential 
     recruits.
       (E) For Army recruiters or other Army personnel to compile 
     in an Internet accessible database the names, addresses, 
     telephone numbers, and electronic mail addresses of persons 
     who are identified as potential recruits through activities 
     under the pilot program.
       (F) Any other activities associated with motor sports 
     competition that the Secretary determines appropriate for 
     Army recruitment purposes.
       (c) Outreach at Vocational Schools and Community 
     Colleges.--(1) One of the pilot programs shall be a pilot 
     program under which Army recruiters are assigned, as their 
     primary responsibility, at postsecondary vocational 
     institutions and community colleges for the purpose of 
     recruiting students graduating from those institutions and 
     colleges, recent graduates of those institutions and 
     colleges, and students withdrawing from enrollments in those 
     institutions and colleges.
       (2) The Secretary of the Army shall select the institutions 
     and colleges to be invited to participate in the pilot 
     program.
       (3) The conduct of the pilot program at an institution or 
     college shall be subject to an agreement which the Secretary 
     shall enter into with the governing body or authorized 
     official of the institution or college, as the case may be.
       (4) Under the pilot program, the Secretary shall provide 
     for the following:
       (A) For Army recruiters to be placed in postsecondary 
     vocational institutions and community colleges to serve as a 
     resource for guidance counselors and to recruit for the Army.
       (B) For Army recruiters to recruit from among students and 
     graduates described in paragraph (1).
       (C) For the use of telemarketing, direct mail, interactive 
     voice response systems, and Internet website capabilities to 
     assist the recruiters in the postsecondary vocational 
     institutions and community colleges.
       (D) For any other activities that the Secretary determines 
     appropriate for recruitment activities in postsecondary 
     vocational institutions and community colleges.
       (5) In this subsection, the term ``postsecondary vocational 
     institution'' has the meaning given the term in section 
     102(c) of the Higher Education Act of 1965 (20 U.S.C. 
     1002(c)).
       (d) Contract Recruiting Initiatives.--(1) One of the pilot 
     programs shall be a program that expands in accordance with 
     this subsection the scope of the Army's contract recruiting 
     initiatives that are ongoing as of the date of the enactment 
     of this Act. Under the pilot program, the Secretary of the 
     Army shall select at least 10 recruiting companies to apply 
     the initiatives in efforts to recruit personnel for the Army.
       (2) Under the pilot program, the Secretary shall provide 
     for the following:
       (A) For replacement of the Regular Army recruiters by 
     contract recruiters in the 10 recruiting companies selected 
     under paragraph (1).
       (B) For operation of the 10 companies under the same rules 
     and chain of command as the other Army recruiting companies.
       (C) For use of the offices, facilities, and equipment of 
     the 10 companies by the contract recruiters.
       (D) For reversion to performance of the recruiting 
     activities by Regular Army soldiers in the 10 companies upon 
     termination of the pilot program.
       (E) For any other uses of contractor personnel for Army 
     recruiting activities that the Secretary determines 
     appropriate.
       (e) Duration of Pilot Programs.--The pilot programs 
     required by this section shall be carried out during the 
     period beginning on October 1, 2000, and, subject to 
     subsection (f), ending on December 31, 2005.
       (f) Authority To Expand or Extend Pilot Programs.--The 
     Secretary may expand the scope of any of the pilot programs 
     (under subsection (b)(3)(F), (c)(4)(D), (d)(2)(E), or 
     otherwise) or extend the period for any of the pilot 
     programs. Before doing so in the case of a pilot program, the 
     Secretary of the Army shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a written notification of the 
     expansion of the pilot program (together with the scope of 
     the expansion) or the continuation of the pilot program 
     (together with the period of the extension), as the case may 
     be.
       (g) Reports.--Not later than February 1, 2006, the 
     Secretary of the Army shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     separate report on each of the pilot programs carried out 
     under this section. The report on a pilot program shall 
     include the following:
       (1) The Secretary's assessment of the value of the actions 
     taken in the administration of the pilot program for 
     increasing the effectiveness and efficiency of Army 
     recruiting.
       (2) Any recommendations for legislation or other action 
     that the Secretary considers appropriate to increase the 
     effectiveness and efficiency of Army recruiting.

     SEC. 562. ENHANCEMENT OF RECRUITMENT MARKET RESEARCH AND 
                   ADVERTISING PROGRAMS.

       Section 503(a) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(a)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary of Defense shall act on a continuing 
     basis to enhance the effectiveness of recruitment programs of 
     the Department of Defense (including programs conducted 
     jointly and programs conducted by the separate armed forces) 
     through an aggressive program of advertising and market 
     research targeted at prospective recruits for the armed 
     forces and those who may influence prospective recruits. 
     Subchapter I of chapter 35 of title 44 shall not apply to 
     actions taken as part of that program.''.

     SEC. 563. ACCESS TO SECONDARY SCHOOLS FOR MILITARY RECRUITING 
                   PURPOSES.

       (a) Requirement for Access.--Subsection (c) of section 503 
     of title 10, United States Code, is amended to read as 
     follows:
       ``(c) Access to Secondary Schools.--(1) Each local 
     educational agency shall (except as

[[Page 21393]]

     provided under paragraph (5)) provide to the Department of 
     Defense, upon a request made for military recruiting 
     purposes, the same access to secondary school students, and 
     to directory information concerning such students, as is 
     provided generally to post-secondary educational institutions 
     or to prospective employers of those students.
       ``(2) If a local educational agency denies a request by the 
     Department of Defense for recruiting access, the Secretary of 
     Defense, in cooperation with the Secretary of the military 
     department concerned, shall designate an officer in a grade 
     not below the grade of colonel or, in the case of the Navy, 
     captain, or a senior executive of that military department to 
     meet with representatives of that local educational agency in 
     person, at the offices of that agency, for the purpose of 
     arranging for recruiting access. The designated officer or 
     senior executive shall seek to have that meeting within 120 
     days of the date of the denial of the request for recruiting 
     access.
       ``(3) If, after a meeting under paragraph (2) with 
     representatives of a local educational agency that has denied 
     a request for recruiting access or (if the educational agency 
     declines a request for the meeting) after the end of such 
     120-day period, the Secretary of Defense determines that the 
     agency continues to deny recruiting access, the Secretary 
     shall transmit to the chief executive of the State in which 
     the agency is located a notification of the denial of 
     recruiting access and a request for assistance in obtaining 
     that access. The notification shall be transmitted within 60 
     days after the date of the determination. The Secretary shall 
     provide to the Secretary of Education a copy of such 
     notification and any other communication between the 
     Secretary and that chief executive with respect to such 
     access.
       ``(4) If a local educational agency continues to deny 
     recruiting access one year after the 
     date of the transmittal of a notification regarding that 
     agency under paragraph (3), the Secretary--
       ``(A) shall determine whether the agency denies recruiting 
     access to at least two of the armed forces (other than the 
     Coast Guard when it is not operating as a service in the 
     Navy); and
       ``(B) upon making an affirmative determination under 
     subparagraph (A), shall transmit a notification of the denial 
     of recruiting access to--
       ``(i) the specified congressional committees;
       ``(ii) the Senators of the State in which the local 
     educational agency is located; and
       ``(iii) the member of the House of Representatives who 
     represents the district in which the local educational agency 
     is located.
       ``(5) The requirements of this subsection do not apply to--
       ``(A) a local educational agency with respect to access to 
     secondary school students or access to directory information 
     concerning such students for any period during which there is 
     in effect a policy of that agency, established by majority 
     vote of the governing body of the agency, to deny recruiting 
     access to those students or to that directory information, 
     respectively; or
       ``(B) a private secondary school which maintains a 
     religious objection to service in the armed forces and which 
     objection is verifiable through the corporate or other 
     organizational documents or materials of that school.
       ``(6) In this subsection:
       ``(A) The term `local educational agency' means--
       ``(i) a local educational agency, within the meaning of 
     that term in section 14101(18) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8801(18)); and
       ``(ii) a private secondary school.
       ``(B) The term `recruiting access' means access requested 
     as described in paragraph (1).
       ``(C) The term `senior executive' has the meaning given 
     that term in section 3132(a)(3) of title 5.
       ``(D) The term `State' includes the District of Columbia, 
     the Commonwealth of Puerto Rico, the Commonwealth of the 
     Northern Mariana Islands, Guam, the Virgin Islands, American 
     Samoa, the Federated States of Micronesia, the Republic of 
     the Marshall Islands, and the Republic of Palau.
       ``(E) The term `specified congressional committees' means 
     the following:
       ``(i) The Committee on Armed Services and the Committee on 
     Health, Education, Labor, and Pensions of the Senate.
       ``(ii) The Committee on Armed Services and the Committee on 
     Education and the Workforce of the House of Representatives.
       ``(F) The term `member of the House of Representatives' 
     includes a Delegate or Resident Commissioner to Congress.''.
       (b) Definition of Directory Information.--Such section is 
     further amended--
       (1) by striking paragraph (7) of subsection (b); and
       (2) by adding at the end the following new subsection:
       ``(d) Directory Information Defined.--In this section, the 
     term `directory information' has the meaning given that term 
     in subsection (a)(5)(A) of section 444 of the General 
     Education Provisions Act (20 U.S.C. 1232g).''.
       (c) Technical Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by inserting ``Recruiting 
     Campaigns.--'' after ``(a)''; and
       (2) in subsection (b), by inserting ``Compilation of 
     Directory Information.--'' after ``(b)''.
       (d) Effective Date.--The amendment made by subsection (a) 
     shall take effect on July 1, 2002.

     SEC. 564. PILOT PROGRAM TO ENHANCE MILITARY RECRUITING BY 
                   IMPROVING MILITARY AWARENESS OF SCHOOL 
                   COUNSELORS AND EDUCATORS.

       (a) In General.--The Secretary of Defense shall conduct a 
     pilot program to determine if cooperation with military 
     recruiters by local educational agencies and by institutions 
     of higher education could be enhanced by improving the 
     understanding of school counselors and educators about 
     military recruiting and military career opportunities. The 
     pilot program shall be conducted during a three-year period 
     beginning not later than 180 days after the date of the 
     enactment of this Act.
       (b) Conduct of Pilot Program Through Participation in 
     Interactive Internet Site.--(1) The pilot program shall be 
     conducted by means of participation by the Department of 
     Defense in a qualifying interactive Internet site.
       (2) For purposes of this section, a qualifying interactive 
     Internet site is an Internet site in existence as of the date 
     of the enactment of this Act that is designed to provide to 
     employees of local educational agencies and institutions of 
     higher education participating in the Internet site--
       (A) systems for communicating;
       (B) resources for individual professional development;
       (C) resources to enhance individual on-the-job 
     effectiveness; and
       (D) resources to improve organizational effectiveness.
       (3) Participation in an Internet site by the Department of 
     Defense for purposes of this section shall include--
       (A) funding;
       (B) assistance; and
       (C) access by other Internet site participants to 
     Department of Defense aptitude testing programs, career 
     development information, and other resources, in addition to 
     information on military recruiting and career opportunities.
       (c) Report.--The Secretary of Defense shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives a report 
     providing the Secretary's findings and conclusions on the 
     pilot program not later than 180 days after the end of the 
     three-year program period.
                       Subtitle G--Other Matters

     SEC. 571. EXTENSION TO END OF CALENDAR YEAR OF EXPIRATION 
                   DATE FOR CERTAIN FORCE DRAWDOWN TRANSITION 
                   AUTHORITIES.

       (a) Early Retirement Authority for Active Force Members.--
     Section 4403 of the National Defense Authorization Act for 
     Fiscal Year 1993 (10 U.S.C. 1293 note) is amended--
       (1) in subsection (a), by striking ``through fiscal year 
     1999'' and inserting ``during the active force drawdown 
     period''; and
       (2) in subsection (i), by striking ``October 1, 2001'' and 
     inserting ``December 31, 2001''.
       (b) SSB and VSI.--Sections 1174a(h)(1) and 1175(d)(3) of 
     title 10, United States Code, are amended by striking 
     ``September 30, 2001'' and inserting ``December 31, 2001''.
       (c) Selective Early Retirement Boards.--Section 638a(a) of 
     such title is amended by striking ``September 30, 2001'' and 
     inserting ``December 31, 2001''.
       (d) Time-in-Grade Requirement for Retention of Grade Upon 
     Voluntary Retirement.--Section 1370 of such title is amended 
     by striking ``September 30, 2001'' in subsections (a)(2)(A) 
     and (d)(5) and inserting ``December 31, 2001''.
       (e) Minimum Commissioned Service for Voluntary Retirement 
     as an Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of 
     such title are amended by striking ``September 30, 2001'' and 
     inserting ``December 31, 2001''.
       (f) Travel, Transportation, and Storage Benefits.--Sections 
     404(c)(1)(C), 404(f)(2)(B)(v), 406(a)(2)(B)(v), and 
     406(g)(1)(C) of title 37, United States Code, and section 
     503(c)(1) of the National Defense Authorization Act for 
     Fiscal Year 1991 (37 U.S.C. 406 note) are amended by striking 
     ``September 30, 2001'' and inserting ``December 31, 2001''.
       (g) Educational Leave for Public and Community Service.--
     Section 4463(f) of the National Defense Authorization Act for 
     Fiscal Year 1993 (10 U.S.C. 1143a note) is amended by 
     striking ``September 30, 2001'' and inserting ``December 31, 
     2001''.
       (h) Transitional Health Benefits.--Subsections (a)(1), 
     (c)(1), and (e) of section 1145 of title 10, United States 
     Code, are amended by striking ``September 30, 2001'' and 
     inserting ``December 31, 2001''.
       (i) Transitional Commissary and Exchange Benefits.--Section 
     1146 of such title is amended by striking ``September 30, 
     2001'' both places it appears and inserting ``December 31, 
     2001''.
       (j) Transitional Use of Military Housing.--Paragraphs (1) 
     and (2) of section 1147(a) of such title are amended by 
     striking ``September 30, 2001'' and inserting ``December 31, 
     2001''.
       (k) Continued Enrollment of Dependents in Defense 
     Dependents' Education System.--Section 1407(c)(1) of the 
     Defense Dependents' Education Act of 1978 (20 U.S.C. 
     926(c)(1)) is amended by striking ``September 30, 2001'' and 
     inserting ``December 31, 2001''.
       (l) Force Reduction Transition Period Defined for Certain 
     Guard and Reserve Benefits.--Section 4411 of the National 
     Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 
     12681 note) is amended by striking ``September 30, 2001'' and 
     inserting ``December 31, 2001''.
       (m) Temporary Special Authority for Force Reduction Period 
     Retirements.--Section 4416(b)(1) of the National Defense 
     Authorization Act for Fiscal Year 1993 (10 U.S.C. 12681

[[Page 21394]]

     note) is amended by striking ``October 1, 2001'' and 
     inserting ``the end of the force reduction period''.
       (n) Retired Pay for Non-Regular Service.--(1) Section 
     12731(f) of title 10, United States Code, is amended by 
     striking ``September 30, 2001'' and inserting ``December 31, 
     2001''.
       (2) Section 12731a of such title is amended--
       (A) in subsection (a)(1)(B), by striking ``October 1, 
     2001'' and inserting ``the end of the period described in 
     subsection (b)''; and
       (B) in subsection (b), by striking ``October 1, 2001'' and 
     inserting ``December 31, 2001''.
       (o) Affiliation With Guard and Reserve Units; Waiver of 
     Certain Limitations.--Section 1150(a) of such title is 
     amended by striking ``September 30, 2001'' and inserting 
     ``December 31, 2001''.
       (p) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of 
     such title is amended by striking ``September 30, 2001'' and 
     inserting ``December 31, 2001''.

     SEC. 572. VOLUNTARY SEPARATION INCENTIVE.

       (a) Authority for Termination Upon Entitlement to Retired 
     Pay.--Section 1175(e)(3) of title 10, United States Code, is 
     amended--
       (1) inserting ``(A)'' after ``(3)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) If a member is receiving simultaneous voluntary 
     separation incentive payments and retired or retainer pay, 
     the member may elect to terminate the receipt of voluntary 
     separation incentive payments. Any such election is permanent 
     and irrevocable. The rate of monthly recoupment from retired 
     or retainer pay of voluntary separation incentive payments 
     received after such an election shall be reduced by a 
     percentage that is equal to a fraction with a denominator 
     equal to the number of months that the voluntary separation 
     incentive payments were scheduled to be paid and a numerator 
     equal to the number of months that would not be paid as a 
     result of the member's decision to terminate the voluntary 
     separation incentive.''.
       (b) Effective Date.--Subparagraph (B) of section 1175(e)(3) 
     of title 10, United States Code, as added by subsection (a), 
     shall apply with respect to decisions by members to terminate 
     voluntary separation incentive payments under section 1175 of 
     title 10, United States Code, to be effective after September 
     30, 2000.

     SEC. 573. CONGRESSIONAL REVIEW PERIOD FOR ASSIGNMENT OF WOMEN 
                   TO DUTY ON SUBMARINES AND FOR ANY PROPOSED 
                   RECONFIGURATION OR DESIGN OF SUBMARINES TO 
                   ACCOMMODATE FEMALE CREW MEMBERS.

       (a) In General.--(1) Chapter 555 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 6035. Female members: congressional review period for 
       assignment to duty on submarines or for reconfiguration of 
       submarines

       ``(a) No change in the Department of the Navy policy 
     limiting service on submarines to males, as in effect on May 
     10, 2000, may take effect until--
       ``(1) the Secretary of Defense submits to Congress written 
     notice of the proposed change; and
       ``(2) a period of 30 days of continuous session of Congress 
     (excluding any day on which either House of Congress is not 
     in session) expires following the date on which the notice is 
     received.
       ``(b) No funds available to the Department of the Navy may 
     be expended to reconfigure any existing submarine, or to 
     design any new submarine, to accommodate female crew members 
     until--
       ``(1) the Secretary of Defense submits to Congress written 
     notice of the proposed reconfiguration or design; and
       ``(2) a period of 30 days of continuous session of Congress 
     (excluding any day on which either House of Congress is not 
     in session) expires following the date on which the notice is 
     received.
       ``(c) For purposes of this section, the continuity of a 
     session of Congress is broken only by an adjournment of the 
     Congress sine die.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6035. Female members: congressional review period for assignment to 
              duty on submarines or for reconfiguration of 
              submarines.''.
       (b) Conforming Amendment.--Section 542(a)(1) of the 
     National Defense Authorization Act for Fiscal Year 1994 (10 
     U.S.C. 113 note) is amended by inserting ``or by section 6035 
     of title 10, United States Code'' after ``Except in a case 
     covered by subsection (b)''.

     SEC. 574. MANAGEMENT AND PER DIEM REQUIREMENTS FOR MEMBERS 
                   SUBJECT TO LENGTHY OR NUMEROUS DEPLOYMENTS.

       (a) Approving Authority for Lengthy Deployments of 
     Members.--Subsection (a) of section 991 of title 10, United 
     States Code, is amended--
       (1) by striking ``unless an officer'' in the second 
     sentence of paragraph (1) and all that follows through the 
     period at the end of that sentence and inserting a period and 
     the following: ``However, the member may be deployed, or 
     continued in a deployment, without regard to the preceding 
     sentence if such deployment, or continued deployment, is 
     approved--
       ``(A) in the case of a member who is assigned to a 
     combatant command in a position under the operational control 
     of the officer in that combatant command who is the service 
     component commander for the members of that member's armed 
     force in that combatant command, by that officer; and
       ``(B) in the case of a member not assigned as described in 
     subparagraph (A), by the service chief of that member's armed 
     force (or, if so designated by that service chief, by an 
     officer of the same armed force on active duty who is in the 
     grade of general or admiral or who is the personnel chief for 
     that armed force).''; and
       (2) by adding at the end the following new paragraph:
       ``(3) In paragraph (1)(B), the term `service chief' means 
     the Chief of Staff of the Army, the Chief of Naval 
     Operations, the Chief of Staff of the Air Force, or the 
     Commandant of the Marine Corps.''.
       (b) Clarification of Definition of Deployment.--Subsection 
     (b) of such section is amended--
       (1) in paragraph (1), by inserting ``or homeport, as the 
     case may be'' before the period at the end;
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively;
       (3) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) In the case of a member of a reserve component 
     performing active service, the member shall be considered 
     deployed or in a deployment for the purposes of paragraph (1) 
     on any day on which, pursuant to orders that do not establish 
     a permanent change of station, the member is performing the 
     active service at a location that--
       ``(A) is not the member's permanent training site; and
       ``(B) is--
       ``(i) at least 100 miles from the member's permanent 
     residence; or
       ``(ii) a lesser distance from the member's permanent 
     residence that, under the circumstances applicable to the 
     member's travel, is a distance that requires at least three 
     hours of travel to traverse.''; and
       (4) in paragraph (3), as redesignated by paragraph (2) of 
     this subsection--
       (A) by striking ``or'' at the end of subparagraph (A);
       (B) by striking the period at the end of subparagraph (B) 
     and inserting ``; or''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) unavailable solely because of--
       ``(i) a hospitalization of the member at the member's 
     permanent duty station or homeport or in the immediate 
     vicinity of the member's permanent residence; or
       ``(ii) a disciplinary action taken against the member.''.
       (c) Associated Per Diem Allowance.--Section 435 of title 
     37, United States Code (as added to that title effective 
     October 1, 2001, by section 586(b) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 638)) is amended--
       (1) in subsection (a), by striking ``251 days or more out 
     of the preceding 365 days'' and inserting ``401 or more days 
     out of the preceding 730 days''; and
       (2) in subsection (b), by striking ``prescribed under 
     paragraph (3)'' and inserting ``prescribed under paragraph 
     (4)''.
       (d) Review of Management of Deployments of Individual 
     Members.-- Not later than March 31, 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 
     administration of section 991 of title 10, United States 
     Code, during fiscal year 2001. The report shall include--
       (1) a discussion of the experience in tracking and 
     recording the deployments of members of the Armed Forces; and
       (2) any recommendations for revision of such section that 
     the Secretary considers appropriate.
       (e) Effective Date.--If this Act is enacted before October 
     1, 2000, the amendments made by subsections (a) and (b) shall 
     take effect on October 1, 2000, immediately after the 
     amendment made by section 586(a) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 637) adding section 991 of title 10, United States 
     Code, to such title.

     SEC. 575. PAY IN LIEU OF ALLOWANCE FOR FUNERAL HONORS DUTY.

       (a) Compensation at Rate for Inactive-Duty Training.--(1) 
     Section 115(b)(2) of title 32, United States Code, is amended 
     to read as follows:
       ``(2) as directed by the Secretary concerned, either--
       ``(A) the allowance under section 435 of title 37; or
       ``(B) compensation under section 206 of title 37.''.
       (2) Section 12503(b)(2) of title 10, United States Code, is 
     amended to read as follows:
       ``(2) as directed by the Secretary concerned, either--
       ``(A) the allowance under section 435 of title 37; or
       ``(B) compensation under section 206 of title 37.''.
       (b) Conforming Repeal.--Section 435 of title 37, United 
     States Code, is amended by striking subsection (c).
       (c) Applicability.--The amendments made by this section 
     shall apply with respect to funeral honors duty performed on 
     or after October 1, 2000.

     SEC. 576. TEST OF ABILITY OF RESERVE COMPONENT INTELLIGENCE 
                   UNITS AND PERSONNEL TO MEET CURRENT AND 
                   EMERGING DEFENSE INTELLIGENCE NEEDS.

       (a) Test Program Required.--(1) Beginning not later than 
     June 1, 2001, the Secretary of Defense shall conduct a three-
     year test program of reserve component intelligence units and 
     personnel. The purpose of the test program shall be--

[[Page 21395]]

       (A) to determine the most effective peacetime structure and 
     operational employment of reserve component intelligence 
     assets for meeting current and future Department of Defense 
     peacetime operational intelligence requirements; and
       (B) to establish a means to coordinate and transition that 
     peacetime intelligence operational support network into use 
     for meeting wartime requirements.
       (2) The test program shall be carried out using the Joint 
     Reserve Intelligence Program and appropriate reserve 
     component intelligence units and personnel.
       (3) In conducting the test program, the Secretary of 
     Defense shall expand the current Joint Reserve Intelligence 
     Program as needed to meet the objectives of the test program.
       (b) Oversight Panel.--The Secretary shall establish an 
     oversight panel to structure the test program so as to 
     achieve the objectives of the test program, ensure proper 
     funding for the test program, and oversee the conduct and 
     evaluation of the test program. The panel members shall 
     include--
       (1) the Assistant Secretary of Defense for Command, 
     Control, Communications and Intelligence;
       (2) the Assistant Secretary of Defense for Reserve Affairs; 
     and
       (3) representatives from the Defense Intelligence Agency, 
     the Army, Navy, Air Force, and Marine Corps, the Joint Staff, 
     and the combatant commands.
       (c) Test Program Objectives.--The test program shall have 
     the following objectives:
       (1) To identify the range of peacetime roles and missions 
     that are appropriate for reserve component intelligence units 
     and personnel, including the following missions: counterdrug, 
     counterintelligence, counterterrorism, information 
     operations, information warfare, and other emerging threats.
       (2) To recommend a process for justifying and validating 
     reserve component intelligence force structure and manpower 
     to support the peacetime roles and missions identified under 
     paragraph (1) and to establish a means to coordinate and 
     transition that peacetime operational support network and 
     structure into wartime requirements.
       (3) To provide, pursuant to paragraphs (1) and (2), the 
     basis for new or revised intelligence and reserve component 
     policy guidelines for the peacetime use, organization, 
     management, infrastructure ,and funding of reserve component 
     intelligence units and personnel.
       (4) To determine the most effective structure, 
     organization, manning, and management of Joint Reserve 
     Intelligence Centers to enable them to be both reserve 
     training facilities and virtual collaborative production 
     facilities in support of Department of Defense peacetime 
     operational intelligence requirements.
       (5) To determine the most effective uses of technology for 
     virtual collaborative intelligence operational support during 
     peacetime and wartime.
       (6) To determine personnel and career management 
     initiatives or modifications that are required to improve the 
     recruiting and retention of personnel in the reserve 
     component intelligence specialties and occupational skills.
       (7) To identify and make recommendations for the 
     elimination of statutory prohibitions and barriers to using 
     reserve component intelligence units and individuals to carry 
     out peacetime operational requirements.
       (d) Reports.--The Secretary of Defense shall submit to 
     Congress--
       (1) interim reports on the status of the test program not 
     later than July 1, 2002, and July 1, 2003; and
       (2) a final report, with such recommendations for changes 
     as the Secretary considers necessary, not later than December 
     1, 2004.

     SEC. 577. NATIONAL GUARD CHALLENGE PROGRAM.

       (a) Responsibility of Secretary of Defense.--Subsection (a) 
     of section 509 of title 32, United States Code, is amended by 
     striking ``, acting through the Chief of the National Guard 
     Bureau,''.
       (b) Sources of Federal Support.--Subsection (b) of such 
     section is amended--
       (1) by inserting ``(1)'' before ``The Secretary of 
     Defense'';
       (2) by striking ``, except that Federal expenditures under 
     the program may not exceed $62,500,000 for any fiscal year''; 
     and
       (3) by adding at the end the following new paragraphs:
       ``(2) The Secretary shall carry out the National Guard 
     Challenge Program using--
       ``(A) funds appropriated directly to the Secretary of 
     Defense for the program, except that the amount of funds 
     appropriated directly to the Secretary and expended for the 
     program in a fiscal year may not exceed $62,500,000; and
       ``(B) nondefense funds made available or transferred to the 
     Secretary of Defense by other Federal agencies to support the 
     program.
       ``(3) Federal funds made available or transferred to the 
     Secretary of Defense under paragraph (2)(B) by other Federal 
     agencies to support the National Guard Challenge Program may 
     be expended for the program in excess of the fiscal year 
     limitation specified in paragraph (2)(A).''.
       (c) Regulations.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(m) Regulations.--The Secretary of Defense shall 
     prescribe regulations to carry out the National Guard 
     Challenge Program. The regulations shall address at a minimum 
     the following:
       ``(1) The terms to be included in the program agreements 
     required by subsection (c).
       ``(2) The qualifications for persons to participate in the 
     program, as required by subsection (e).
       ``(3) The benefits authorized for program participants, as 
     required by subsection (f).
       ``(4) The status of National Guard personnel assigned to 
     duty in support of the program under subsection (g).
       ``(5) The conditions for the use of National Guard 
     facilities and equipment to carry out the program, as 
     required by subsection (h).
       ``(6) The status of program participants, as described in 
     subsection (i).
       ``(7) The procedures to be used by the Secretary when 
     communicating with States about the program.''.
       (d) Conforming Amendment.--Section 2033 of title 10, United 
     States Code, is amended by striking ``appropriated for'' and 
     inserting ``appropriated directly to the Secretary of Defense 
     for''.

     SEC. 578. STUDY OF USE OF CIVILIAN CONTRACTOR PILOTS FOR 
                   OPERATIONAL SUPPORT MISSIONS.

       (a) Study.--The Secretary of Defense shall conduct a study 
     to determine the feasibility and cost, as well as the 
     advantages and disadvantages, of using civilian contractor 
     personnel as pilots and other air crew members to fly 
     nonmilitary Government aircraft (referred to as ``operational 
     support aircraft'') to perform non-combat personnel 
     transportation missions worldwide. In carrying out the study, 
     the Secretary shall consider the views and recommendations of 
     the Chairman of the Joint Chiefs and the other members of the 
     Joint Chiefs of Staff.
       (b) Matters to Be Included.--The study shall, as a 
     minimum--
       (1) determine whether use of civilian contractor personnel 
     as pilots and other air crew members for such operational 
     support missions would be a cost effective means of freeing 
     for duty in units with combat and combat support missions 
     those military pilots and other personnel who now perform 
     such operational support missions; and
       (2) the effect on retention of military pilots and other 
     personnel if they are no longer required to fly operational 
     support missions.
       (c) Submission of Report.--The Secretary shall submit a 
     report containing the results of the study to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives not later than six 
     months after the date of the enactment of this Act.

     SEC. 579. REIMBURSEMENT FOR EXPENSES INCURRED BY MEMBERS IN 
                   CONNECTION WITH CANCELLATION OF LEAVE ON SHORT 
                   NOTICE.

       (a) Reimbursement Authorized.--Chapter 53 of title 10, 
     United States Code, is amended by inserting after section 
     1053 the following new section:

     ``Sec. 1053a. Expenses incurred in connection with leave 
       canceled due to contingency operations: reimbursement

       ``(a) Authorization To Reimburse.--The Secretary concerned 
     may reimburse a member of the armed forces under the 
     jurisdiction of the Secretary for travel and related expenses 
     (to the extent not otherwise reimbursable under law) incurred 
     by the member as a result of the cancellation of previously 
     approved leave when the leave is canceled in connection with 
     the member's participation in a contingency operation and the 
     cancellation occurs within 48 hours of the time the leave 
     would have commenced.
       ``(b) Regulations.--The Secretary of Defense shall 
     prescribe regulations to establish the criteria for the 
     applicability of subsection (a).
       ``(c) Conclusiveness of Settlement.--The settlement of an 
     application for reimbursement under subsection (a) is final 
     and conclusive.''.
       (b) Effective Date.--Section 1053a of title 10, United 
     States Code, as added by subsection (a) shall apply with 
     respect to any travel and related expenses incurred by a 
     member in connection with leave canceled after the date of 
     the enactment of this Act.
       (c) Conforming and Clerical Amendments.--(1) The heading of 
     section 1052 of such title is amended to read as follows:

     ``Sec. 1052. Adoption expenses: reimbursement''.

       (2) The heading of section 1053 of such title is amended to 
     read as follows:

     ``Sec. 1053. Financial institution charges incurred because 
       of Government error in direct deposit of pay: 
       reimbursement''.

       (3) The table of sections at the beginning of chapter 53 of 
     such title is amended by striking the items relating to 
     sections 1052 and 1053 and inserting the following:

``1052. Adoption expenses: reimbursement.
``1053. Financial institution charges incurred because of Government 
              error in direct deposit of pay: reimbursement.
``1053a. Expenses incurred in connection with leave canceled due to 
              contingency operations: reimbursement.''.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2001.
Sec. 602. Additional restructuring of basic pay rates for enlisted 
              members.
Sec. 603. Revised method for calculation of basic allowance for 
              subsistence.
Sec. 604. Family subsistence supplemental allowance for low-income 
              members of the Armed Forces.
Sec. 605. Basic allowance for housing.
Sec. 606. Additional amount available for fiscal year 2001 increase in 
              basic allowance for housing inside the United States.

[[Page 21396]]

Sec. 607. Equitable treatment of junior enlisted members in computation 
              of basic allowance for housing.
Sec. 608. Eligibility of members in grade E-4 to receive basic 
              allowance for housing while on sea duty.
Sec. 609. Personal money allowance for senior enlisted members of the 
              Armed Forces.
Sec. 610. Increased uniform allowances for officers.
Sec. 611. Cabinet-level authority to prescribe requirements and 
              allowance for clothing of enlisted members.
Sec. 612. Increase in monthly subsistence allowance for members of 
              precommissioning programs.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 621. Extension of certain bonuses and special pay authorities for 
              reserve forces.
Sec. 622. Extension of certain bonuses and special pay authorities for 
              nurse officer candidates, registered nurses, and nurse 
              anesthetists.
Sec. 623. Extension of authorities relating to payment of other bonuses 
              and special pays.
Sec. 624. Revision of enlistment bonus authority.
Sec. 625. Consistency of authorities for special pay for reserve 
              medical and dental officers.
Sec. 626. Elimination of required congressional notification before 
              implementation of certain special pay authority.
Sec. 627. Special pay for physician assistants of the Coast Guard.
Sec. 628. Authorization of special pay and accession bonus for pharmacy 
              officers.
Sec. 629. Correction of references to Air Force veterinarians.
Sec. 630. Career sea pay.
Sec. 631. Increased maximum rate of special duty assignment pay.
Sec. 632. Entitlement of members of the National Guard and other 
              reserves not on active duty to receive special duty 
              assignment pay.
Sec. 633. Authorization of retention bonus for members of the Armed 
              Forces qualified in a critical military skill.
Sec. 634. Entitlement of active duty officers of the Public Health 
              Service Corps to special pays and bonuses of health 
              professional officers of the Armed Forces.

            Subtitle C--Travel and Transportation Allowances

Sec. 641. Advance payments for temporary lodging of members and 
              dependents.
Sec. 642. Additional transportation allowance regarding baggage and 
              household effects.
Sec. 643. Incentive for shipping and storing household goods in less 
              than average weights.
Sec. 644. Equitable dislocation allowances for junior enlisted members.
Sec. 645. Authority to reimburse military recruiters, Senior ROTC 
              cadre, and military entrance processing personnel for 
              certain parking expenses.
Sec. 646. Expansion of funded student travel for dependents.

          Subtitle D--Retirement and Survivor Benefit Matters

Sec. 651. Exception to high-36 month retired pay computation for 
              members retired following a disciplinary reduction in 
              grade.
Sec. 652. Increase in maximum number of Reserve retirement points that 
              may be credited in any year.
Sec. 653. Retirement from active reserve service after regular 
              retirement.
Sec. 654. Same treatment for Federal judges as for other Federal 
              officials regarding payment of military retired pay.
Sec. 655. Reserve component Survivor Benefit Plan spousal consent 
              requirement.
Sec. 656. Sense of Congress on increasing Survivor Benefit Plan 
              annuities for surviving spouses age 62 or older.
Sec. 657. Revision to special compensation authority to repeal 
              exclusion of uniformed services retirees in receipt of 
              disability retired pay.

                       Subtitle E--Other Matters

Sec. 661. Participation in Thrift Savings Plan.
Sec. 662. Determinations of income eligibility for special supplemental 
              food program.
Sec. 663. Billeting services for reserve members traveling for 
              inactive-duty training.
Sec. 664. Settlement of claims for payments for unused accrued leave 
              and for retired pay.
Sec. 665. Additional benefits and protections for personnel incurring 
              injury, illness, or disease in the performance of funeral 
              honors duty.
Sec. 666. Authority for extension of deadline for filing claims 
              associated with capture and internment of certain persons 
              by North Vietnam.
Sec. 667. Back pay for members of the Navy and Marine Corps selected 
              for promotion while interned as prisoners of war during 
              World War II.
Sec. 668. Sense of Congress concerning funding for reserve components.
                     Subtitle A--Pay and Allowances

     SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2001.

       (a) Waiver of Section 1009 Adjustment.--The adjustment to 
     become effective during fiscal year 2001 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, 2001, 
     the rates of monthly basic pay for members of the uniformed 
     services are increased by 3.7 percent.

     SEC. 602. ADDITIONAL RESTRUCTURING OF BASIC PAY RATES FOR 
                   ENLISTED MEMBERS.

       (a) Minimum Pay Increases for Mid-Level Enlisted Grades.--
     (1) Subject to paragraph (2), effective on July 1, 2001, the 
     rates of monthly basic pay for enlisted members of the Armed 
     Forces in the pay grades E-7, E-6, and E-5 shall be as 
     follows:
       

                            ENLISTED MEMBERS
 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-7..............   1,831.20   1,999.20   2,075.10   2,149.80   2,228.10
E-6..............   1,575.00   1,740.30   1,817.40   1,891.80   1,969.80
E-5..............   1,381.80   1,549.20   1,623.90   1,701.00   1,779.30
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-7..............   2,362.20   2,437.80   2,512.80   2,588.10   2,666.10
E-6..............   2,097.30   2,174.10   2,248.80   2,325.00   2,379.60
E-5..............   1,888.50   1,962.90   2,040.30   2,040.30   2,040.30
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-7..............   2,742.00   2,817.90   2,949.60   3,034.80   3,250.50
E-6..............   2,421.30   2,421.30   2,421.30   2,421.30   2,421.30
E-5..............   2,040.30   2,040.30   2,040.30   2,040.30   2,040.30
------------------------------------------------------------------------

       (2) The amounts specified in the table in paragraph (1) are 
     subject to such revision as the Secretary of Defense and the 
     Secretary of Transportation may prescribe under subsection 
     (b)(1)(A).
       (b) Secretarial Authority to Further Revise.--(1) To ensure 
     the efficient and effective operation of the military pay 
     system, the Secretary of Defense, and the Secretary of 
     Transportation with regard to the Coast Guard, may--
       (A) further increase any of the amounts specified in the 
     table in subsection (a) for enlisted members of the Armed 
     Forces in the pay grades E-7, E-6, and E-5; and
       (B) increase any of the amounts specified for other 
     enlisted members in the table under the heading ``ENLISTED 
     MEMBERS'' in section 601(c) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 648), as adjusted on January 1, 2001, pursuant to 
     section 601(b) of this Act.
       (2) The revisions in monthly basic pay made by the 
     Secretary of Defense and the Secretary of Transportation 
     under paragraph (1) shall take effect on July 1, 2001, but 
     only if the Secretaries also comply with paragraph (3).
       (3) If the Secretary of Defense or the Secretary of 
     Transportation exercises the authority provided by paragraph 
     (1), the Secretaries shall include, in the budget 
     justification materials submitted to Congress in support of 
     the President's

[[Page 21397]]

     budget submitted under section 1105 of title 31, United 
     States Code, for fiscal year 2002--
       (A) a revised pay table for enlisted members of the Armed 
     Forces to reflect the increases in monthly basic pay to take 
     effect on July 1, 2001; and
       (B) a description of the various increases made and the 
     reasons therefor.

     SEC. 603. REVISED METHOD FOR CALCULATION OF BASIC ALLOWANCE 
                   FOR SUBSISTENCE.

       (a) Annual Revision of Rate.--Subsection (b) of section 402 
     of title 37, United States Code, is amended--
       (1) in paragraph (1), by striking ``The monthly rate'' and 
     inserting ``Through December 31, 2001, the monthly rate'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) On and after January 1, 2002, the monthly rate of 
     basic allowance for subsistence to be in effect for an 
     enlisted member for a year (beginning on January 1 of that 
     year) shall be equal to the sum of--
       ``(A) the monthly rate of basic allowance for subsistence 
     that was in effect for an enlisted member for the preceding 
     year; plus
       ``(B) the product of the monthly rate under subparagraph 
     (A) and the percentage increase in the monthly cost of a 
     liberal food plan for a male in the United States who is 
     between 20 and 50 years of age over the preceding fiscal 
     year, as determined by the Secretary of Agriculture each 
     October 1.''.
       (b) Conforming Amendment.--Subsection (d)(1) of such 
     section is amended by striking ``established under subsection 
     (b)(1)'' and inserting ``in effect under paragraph (1) or (2) 
     of subsection (b)''.
       (c) Early Termination of BAS Transitional Authority.--
     Effective October 1, 2001, subsections (c) through (f) of 
     section 602 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 37 U.S.C. 402 note) are 
     repealed.

     SEC. 604. FAMILY SUBSISTENCE SUPPLEMENTAL ALLOWANCE FOR LOW-
                   INCOME MEMBERS OF THE ARMED FORCES.

       (a) Supplemental Allowance Required.--(1) Chapter 7 of 
     title 37, United States Code, is amended by inserting after 
     section 402 the following new section:

     ``Sec. 402a. Supplemental subsistence allowance for low-
       income members with dependents

       ``(a) Supplemental Allowance Required.--(1) The Secretary 
     concerned shall increase the basic allowance for subsistence 
     to which a member of the armed forces described in subsection 
     (b) is otherwise entitled under section 402 of this title by 
     an amount (in this section referred to as the `supplemental 
     subsistence allowance') designed to remove the member's 
     household from eligibility for benefits under the food stamp 
     program.
       ``(2) The supplemental subsistence allowance may not exceed 
     $500 per month. In establishing the amount of the 
     supplemental subsistence allowance to be paid an eligible 
     member under this paragraph, the Secretary shall take into 
     consideration the amount of the basic allowance for housing 
     that the member receives under section 403 of this title or 
     would otherwise receive under such section, in the case of a 
     member who is not entitled to that allowance as a result of 
     assignment to quarters of the United States or a housing 
     facility under the jurisdiction of a uniformed service.
       ``(3) In the case of a member described in subsection (b) 
     who establishes to the satisfaction of the Secretary 
     concerned that the allotment of the member's household under 
     the food stamp program, calculated in the absence of the 
     supplemental subsistence allowance, would exceed the amount 
     established by the Secretary concerned under paragraph (2), 
     the amount of the supplemental subsistence allowance for the 
     member shall be equal to the lesser of the following:
       ``(A) The value of that allotment.
       ``(B) $500.
       ``(b) Members Entitled to Allowance.--(1) Subject to 
     subsection (d), a member of the armed forces is entitled to 
     receive the supplemental subsistence allowance if the 
     Secretary concerned determines that the member's income, 
     together with the income of the rest of the member's 
     household (if any), is within the highest income standard of 
     eligibility, as then in effect under section 5(c) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2014(c)) and without regard to 
     paragraph (1) of such section, for participation in the food 
     stamp program.
       ``(2) In determining whether a member meets the eligibility 
     criteria under paragraph (1), the Secretary--
       ``(A) shall not take into consideration the amount of the 
     supplemental subsistence allowance payable under this 
     section; but
       ``(B) shall take into consideration the amount of the basic 
     allowance for housing that the member receives under section 
     403 of this title or would otherwise receive under such 
     section, in the case of a member who is not entitled to that 
     allowance as a result of assignment to quarters of the United 
     States or a housing facility under the jurisdiction of a 
     uniformed service.
       ``(c) Application for Allowance.--To request the 
     supplemental subsistence allowance, a member shall submit an 
     application to the Secretary concerned in such form and 
     containing such information as the Secretary concerned may 
     prescribe. A member applying for the supplemental subsistence 
     allowance shall furnish such evidence regarding the member's 
     satisfaction of the eligibility criteria under subsection (b) 
     as the Secretary concerned may require.
       ``(d) Effective Period.--The entitlement of a member to 
     receive the supplemental subsistence allowance terminates 
     upon the occurrence of any of the following events, even 
     though the member continues to meet the eligibility criteria 
     described in subsection (b):
       ``(1) Payment of the supplemental subsistence allowance for 
     12 consecutive months.
       ``(2) Promotion of the member to a higher grade.
       ``(3) Transfer of the member in a permanent change of 
     station.
       ``(e) Reapplication.--Upon the termination of the effective 
     period of the supplemental subsistence allowance for a 
     member, or in anticipation of the imminent termination of the 
     allowance, a member may reapply for the allowance under 
     subsection (c), and the Secretary concerned shall approve the 
     application and resume payment of the allowance to the 
     member, if the member continues to meet, or once again meets, 
     the eligibility criteria described in subsection (b).
       ``(f) Reporting Requirement.--Not later than March 1 of 
     each year after 2001, the Secretary of Defense shall submit 
     to Congress a report specifying the number of members of the 
     armed forces who received, at any time during the preceding 
     year, the supplemental subsistence allowance. In preparing 
     the report, the Secretary of Defense shall consult with the 
     Secretary of Transportation. No report is required under this 
     subsection after March 1, 2006.
       ``(g) Definitions.--In this section:
       ``(1) The term `Secretary concerned' means--
       ``(A) the Secretary of Defense; and
       ``(B) the Secretary of Transportation, with respect to the 
     Coast Guard when it is not operating as a service in the 
     Navy.
       ``(2) The terms `allotment' and `household' have the 
     meanings given those terms in section 3 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2012).
       ``(3) The term `food stamp program' means the program 
     established pursuant to section 4 of the Food Stamp Act of 
     1977 (7 U.S.C. 2013).
       ``(h) Termination of Authority.--No supplemental 
     subsistence allowance may be provided under this section 
     after September 30, 2006.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     402 the following:

``402a. Supplemental subsistence allowance for low-income members with 
              dependents.''.

       (b) Effective Date.--Section 402a of title 37, United 
     States Code, as added by subsection (a), shall take effect on 
     the first day of the first month that begins not less than 
     180 days after the date of the enactment of this Act.

     SEC. 605. BASIC ALLOWANCE FOR HOUSING.

       (a) Calculation of Rates.--Subsection (b) of section 403 of 
     title 37, United States Code, is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraph (1) as paragraph (2); and
       (3) by inserting after the subsection heading the 
     following: ``(1) The Secretary of Defense shall prescribe the 
     rates of the basic allowance for housing that are applicable 
     for the various military housing areas in the United States. 
     The rates for an area shall be based on the costs of adequate 
     housing determined for the area under paragraph (2).''.
       (b) Minimum Annual Amount Available for Housing 
     Allowances.--Subsection (b) of such section is further 
     amended--
       (1) by striking paragraphs (3) and (5); and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) The total amount that may be paid for a fiscal year 
     for the basic allowance for housing under this subsection may 
     not be less than the product of--
       ``(A) the total amount authorized to be paid for such 
     allowance for the preceding fiscal year; and
       ``(B) a fraction--
       ``(i) the numerator of which is the index of the national 
     average monthly cost of housing for June of the preceding 
     fiscal year; and
       ``(ii) the denominator of which is the index of the 
     national average monthly cost of housing for June of the 
     second preceding fiscal year.''.
       (c) Limitations on Reduction in Member's Allowance.--(1) 
     Paragraph (6) of such subsection is amended by striking ``, 
     changes in the national average monthly cost of housing,''.
       (2) Paragraph (7) of such subsection is amended by striking 
     ``without dependents''.
       (d) Allowance When Dependents Are Unable To Accompany 
     Members.--Subsection (d) of such section is amended by 
     striking paragraph (3) and inserting the following new 
     paragraph:
       ``(3) If a member with dependents is assigned to duty in an 
     area that is different from the area in which the member's 
     dependents reside, the member is entitled to a basic 
     allowance for housing as provided in subsection (b) or (c), 
     whichever applies to the member, subject to the following:
       ``(A) If the member's assignment to duty in that area, or 
     the circumstances of that assignment, require the member's 
     dependents to reside in a different area, as determined by 
     the Secretary concerned, the amount of the basic allowance 
     for housing for the member shall be based on the area in 
     which the dependents reside or the member's last duty 
     station, whichever the Secretary concerned determines to be 
     most equitable.
       ``(B) If the member's assignment to duty in that area is 
     under the conditions of a low-cost or no-cost permanent 
     change of station or permanent change of assignment, the 
     amount of

[[Page 21398]]

     the basic allowance for housing for the member shall be based 
     on the member's last duty station if the Secretary concerned 
     determines that it would be inequitable to base the allowance 
     on the cost of housing in the area to which the member is 
     reassigned.''.
       (e) Extension of Transition Period.--Section 603(b) of the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 37 U.S.C. 403 note) is amended by 
     striking ``six years'' and inserting ``eight years''.
       (f) Effective Date; Application.--(1) The amendments made 
     by this section shall take effect on October 1, 2000.
       (2) In the case of the amendment made by subsection (c)(2), 
     the amendment shall apply with respect to pay periods 
     beginning on and after October 1, 2000, for a member of the 
     uniformed services covered by the provision of law so amended 
     regardless of the date on which the member was first 
     reassigned to duty under the conditions of a low-cost or no-
     cost permanent change of station or permanent change of 
     assignment.
       (3) In the case of the amendment made by subsection (d), 
     the amendment shall apply with respect to pay periods 
     beginning on and after October 1, 2000, for a member of the 
     uniformed services covered by the provision of law so amended 
     regardless of the date on which the member was first assigned 
     to duty in an area that is different from the area in which 
     the member's dependents reside.

     SEC. 606. ADDITIONAL AMOUNT AVAILABLE FOR FISCAL YEAR 2001 
                   INCREASE IN BASIC ALLOWANCE FOR HOUSING INSIDE 
                   THE UNITED STATES.

       In addition to the amount determined by the Secretary of 
     Defense under section 403(b)(3) of title 37, United States 
     Code, as amended by section 605(b), to be the total amount to 
     be paid during fiscal year 2001 for the basic allowance for 
     housing for military housing areas inside the United States, 
     $30,000,000 of the amount authorized to be appropriated by 
     section 421 for military personnel shall 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. 607. EQUITABLE TREATMENT OF JUNIOR ENLISTED MEMBERS IN 
                   COMPUTATION OF BASIC ALLOWANCE FOR HOUSING.

       (a) Determination of Costs of Adequate Housing.--Paragraph 
     (2) of subsection (b) of section 403 of title 37, United 
     States Code, as redesignated by section 605(a)(2), is amended 
     by adding at the end the following new sentence: ``After June 
     30, 2001, the Secretary may not differentiate between members 
     with dependents in pay grades E-1 through E-4 in determining 
     what constitutes adequate housing for members.''.
       (b) Single Rate; Minimum.--Subsection (b) of such section, 
     as amended by section 605(b)(1), is amended by inserting 
     after paragraph (4) the following new paragraph:
       ``(5) On and after July 1, 2001, the Secretary of Defense 
     shall establish a single monthly rate for members of the 
     uniformed services with dependents in pay grades E-1 through 
     E-4 in the same military housing area. The rate shall be 
     consistent with the rates paid to members in pay grades other 
     than pay grades E-1 through E-4 and shall be based on the 
     following:
       ``(A) The average cost of a two-bedroom apartment in that 
     military housing area.
       ``(B) One-half of the difference between the average cost 
     of a two-bedroom townhouse in that area and the amount 
     determined in subparagraph (A).''.

     SEC. 608. ELIGIBILITY OF MEMBERS IN GRADE E-4 TO RECEIVE 
                   BASIC ALLOWANCE FOR HOUSING WHILE ON SEA DUTY.

       (a) Payment Authorized.--Subsection (f)(2)(B) of section 
     403 of title 37, United States Code, is amended--
       (1) by striking ``E-5'' in the first sentence and inserting 
     ``E-4 or E-5''; and
       (2) by striking ``grade E-5'' in the second sentence and 
     inserting ``grades E-4 and E-5''.
       (b) Conforming Amendment.--Subsection (m)(1)(B) of such 
     section is amended by striking ``E-4'' and inserting ``E-3''.

     SEC. 609. PERSONAL MONEY ALLOWANCE FOR SENIOR ENLISTED 
                   MEMBERS OF THE ARMED FORCES.

       (a) Authority.--Section 414 of title 37, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(c) Allowance for Senior Enlisted Members.--In addition 
     to other pay or allowances authorized by this title, a 
     noncommissioned officer is entitled to a personal money 
     allowance of $2,000 a year while serving as the Sergeant 
     Major of the Army, the Master Chief Petty Officer of the 
     Navy, the Chief Master Sergeant of the Air Force, the 
     Sergeant Major of the Marine Corps, or the Master Chief Petty 
     Officer of the Coast Guard.''.
       (b) Stylistic Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by inserting ``Allowance for 
     Officers Serving in Certain Ranks or Positions.--'' after 
     ``(a)''; and
       (2) in subsection (b), by inserting ``Allowance for Certain 
     Naval Officers.--'' after ``(b)''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2000.

     SEC. 610. INCREASED UNIFORM ALLOWANCES FOR OFFICERS.

       (a) Initial Allowance.--Section 415(a) of title 37, United 
     States Code, is amended by striking ``$200'' and inserting 
     ``$400''.
       (b) Additional Allowance.--Section 416(a) of such title is 
     amended by striking ``$100'' and inserting ``$200''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2000.

     SEC. 611. CABINET-LEVEL AUTHORITY TO PRESCRIBE REQUIREMENTS 
                   AND ALLOWANCE FOR CLOTHING OF ENLISTED MEMBERS.

       Section 418 of title 37, United States Code, is amended--
       (1) in subsection (a), by striking ``The President'' and 
     inserting ``The Secretary of Defense and the Secretary of 
     Transportation, with respect to the Coast Guard when it is 
     not operating as a service in the Navy,''; and
       (2) in subsection (b), by striking ``the President'' and 
     inserting ``the Secretary of Defense''.

     SEC. 612. INCREASE IN MONTHLY SUBSISTENCE ALLOWANCE FOR 
                   MEMBERS OF PRECOMMISSIONING PROGRAMS.

       (a) Pay Rates for Cadets and Midshipmen.--Section 203(c) of 
     title 37, United States Code, is amended by striking ``at the 
     rate of $600.00.'' and inserting ``at the monthly rate equal 
     to 35 percent of the basic pay of a commissioned officer in 
     the pay grade O-1 with less than two years of service.''.
       (b) Subsistence Allowance Rates.--Subsection (a) of section 
     209 of such title is amended--
       (1) by inserting ``(1)'' before ``Except'';
       (2) by striking ``subsistence allowance of $200 a month'' 
     and inserting ``monthly subsistence allowance at a rate 
     prescribed under paragraph (2)'';
       (3) by striking ``Subsistence'' and inserting the 
     following:
       ``(3) A subsistence''; and
       (4) by inserting after the first sentence the following:
       ``(2) The Secretary of Defense shall prescribe by 
     regulation the monthly rates for subsistence allowances 
     provided under this section. The rate may not be less than 
     $250 per month, but may not exceed $674 per month.''.
       (c) Conforming and Stylistic Amendments.--Section 209 of 
     such title is further amended--
       (1) in subsection (a), by inserting ``Senior ROTC Members 
     in Advanced Training.--'' after ``(a)'';
       (2) in subsection (b)--
       (A) by inserting ``Senior ROTC Members Appointed in 
     Reserves.--'' after ``(b)''; and
       (B) by striking ``in the amount provided in subsection 
     (a)'' and inserting ``at a rate prescribed under subsection 
     (a)'';
       (3) in subsection (c), by inserting ``Pay While Attending 
     Training or Practice Cruise.--'' after ``(c)'' the first 
     place it appears; and
       (4) in subsection (d)--
       (A) by inserting ``Members of Marine Corps Officer 
     Candidate Program.--'' after ``(d)''; and
       (B) by striking ``the same rate as that prescribed by 
     subsection (a),'' and inserting ``a monthly rate prescribed 
     under subsection (a)''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect October 1, 2001.
           Subtitle B--Bonuses and Special and Incentive Pays

     SEC. 621. 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, 
     2000'' and inserting ``December 31, 2001''.
       (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) 
     of such title is amended by striking ``December 31, 2000'' 
     and inserting ``December 31, 2001''.
       (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     such title is amended by striking ``December 31, 2000'' and 
     inserting ``December 31, 2001''.
       (d) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of such title is 
     amended by striking ``December 31, 2000'' and inserting 
     ``December 31, 2001''.
       (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     such title is amended by striking ``December 31, 2000'' and 
     inserting ``December 31, 2001''.
       (f) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of such title is amended by striking 
     ``December 31, 2000'' and inserting ``December 31, 2001''.
       (g) Prior Service Enlistment Bonus.--Section 308i(f) of 
     such title is amended by striking ``December 31, 2000'' and 
     inserting ``December 31, 2001''.
       (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, 2001'' and inserting ``January 1, 
     2002''.

     SEC. 622. 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, 2000'' and inserting ``December 31, 
     2001''.
       (b) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United

[[Page 21399]]

     States Code, is amended by striking ``December 31, 2000'' and 
     inserting ``December 31, 2001''.
       (c) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of title 37, United States Code, is amended by 
     striking ``December 31, 2000'' and inserting ``December 31, 
     2001''.

     SEC. 623. 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, 2000,'' and inserting ``December 31, 2001,''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of such title is amended by striking ``December 31, 2000'' 
     and inserting ``December 31, 2001''.
       (c) Special Pay for Nuclear-Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of such title is 
     amended by striking ``December 31, 2000'' and inserting 
     ``December 31, 2001''.
       (d) Nuclear Career Accession Bonus.--Section 312b(c) of 
     such title is amended by striking ``December 31, 2000'' and 
     inserting ``December 31, 2001''.
       (e) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of such title is amended by striking ``December 31, 2000'' 
     and inserting ``December 31, 2001''.

     SEC. 624. REVISION OF ENLISTMENT BONUS AUTHORITY.

       (a) Bonus Authorized.--(1) Title 37, United States Code, is 
     amended by inserting after section 308i the following new 
     section:

     ``Sec. 309. Special pay: enlistment bonus

       ``(a) Bonus Authorized; Bonus Amount.--A person who enlists 
     in an armed force for a period of at least 2 years may be 
     paid a bonus in an amount not to exceed $20,000. The bonus 
     may be paid in a single lump sum or in periodic installments.
       ``(b) Repayment of Bonus.--(1) A member of the armed forces 
     who voluntarily, or because of the member's misconduct, does 
     not complete the term of enlistment for which a bonus was 
     paid under this section, or a member who is not technically 
     qualified in the skill for which the bonus was paid, if any 
     (other than a member who is not qualified because of injury, 
     illness, or other impairment not the result of the member's 
     misconduct), shall refund to the United States that 
     percentage of the bonus that the unexpired part of member's 
     enlistment is of the total enlistment period for which the 
     bonus was paid.
       ``(2) An obligation to reimburse the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States.
       ``(3) A discharge in bankruptcy under title 11 that is 
     entered less than 5 years after the termination of an 
     enlistment for which a bonus was paid under this section does 
     not discharge the person receiving the bonus from the debt 
     arising under paragraph (1).
       ``(c) Relation to Prohibition on Bounties.--The enlistment 
     bonus authorized by this section is not a bounty for purposes 
     of section 514(a) of title 10.
       ``(d) Regulations.--This section shall be administered 
     under regulations prescribed by the Secretary of Defense for 
     the armed forces under the jurisdiction of the Secretary of 
     Defense and by the Secretary of Transportation for the Coast 
     Guard when the Coast Guard is not operating as a service in 
     the Navy.
       ``(e) Duration of Authority.--No bonus shall be paid under 
     this section with respect to any enlistment in the armed 
     forces made after December 31, 2001.''.
       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended by inserting after the item relating to 
     section 308i the following new item:

``309. Special pay: enlistment bonus.''.

       (b) Repeal of Superseded Enlistment Bonus Authorities.--(1) 
     Sections 308a and 308f of title 37, United States Code, are 
     repealed.
       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended by striking the items relating to such 
     sections.
       (c) Effective Date.--(1) The amendments made by subsection 
     (a) shall take effect on October 1, 2000, and apply with 
     respect to enlistments in the Armed Forces made on or after 
     that date.
       (2) The amendments made by subsection (b) shall take effect 
     on October 1, 2000. The repeal of sections 308a and 308f of 
     title 37, United States Code, by such subsection shall not 
     affect the validity or terms of any bonus provided under such 
     sections for enlistments in the Armed Forces made before that 
     date.

     SEC. 625. CONSISTENCY OF AUTHORITIES FOR SPECIAL PAY FOR 
                   RESERVE MEDICAL AND DENTAL OFFICERS.

       (a) Consistent Descriptions of Active Duty.--Section 
     302(h)(1) of title 37, United States Code, is amended by 
     inserting before the period at the end the following: ``, 
     including active duty in the form of annual training, active 
     duty for training, and active duty for special work''.
       (b) Relation to Other Special Pay Authorities.--Subsection 
     (d) of section 302f of such title is amended to read as 
     follows:
       ``(d) Special Rule for Reserve Medical and Dental 
     Officers.--While a reserve medical or dental officer receives 
     a special pay under section 302 or 302b of this title by 
     reason of subsection (a), the officer shall not be entitled 
     to special pay under section 302(h) or 302b(h) of this 
     title.''.

     SEC. 626. ELIMINATION OF REQUIRED CONGRESSIONAL NOTIFICATION 
                   BEFORE IMPLEMENTATION OF CERTAIN SPECIAL PAY 
                   AUTHORITY.

       (a) Retention Special Pay for Optometrists.--(1) Section 
     302a(b)(1) of title 37, United States Code, is amended by 
     striking ``an officer described in paragraph (2) may be 
     paid'' and inserting ``the Secretary concerned may pay an 
     officer described in paragraph (2) a''.
       (2) Section 617 of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 302a 
     note) is amended by striking subsection (b).
       (b) Special Pay for Officers in Nursing Specialties.--(1) 
     Section 302e(b)(2)(A) of title 37, United States Code, is 
     amended by striking ``the Secretary'' and inserting ``the 
     Secretary of the military department concerned''.
       (2) Section 614 of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 302e 
     note) is amended by striking subsection (c).

     SEC. 627. SPECIAL PAY FOR PHYSICIAN ASSISTANTS OF THE COAST 
                   GUARD.

       Section 302c(d)(1) of title 37, United States Code, is 
     amended by inserting after ``nurse,'' the following: ``an 
     officer of the Coast Guard or Coast Guard Reserve designated 
     as a physician assistant,''.

     SEC. 628. AUTHORIZATION OF SPECIAL PAY AND ACCESSION BONUS 
                   FOR PHARMACY OFFICERS.

       (a) Authorization of Special Pay and Bonus.--Chapter 5 of 
     title 37, United States Code, is amended by inserting after 
     section 302h the following new sections:

     ``Sec. 302i. Special pay: pharmacy officers

       ``(a) Army, Navy, and Air Force Pharmacy Officers.--Under 
     regulations prescribed pursuant to section 303a of this 
     title, the Secretary of the military department concerned 
     may, subject to subsection (c), pay special pay at the rates 
     specified in subsection (d) to an officer who--
       ``(1) is a pharmacy officer in the Medical Service Corps of 
     the Army or Navy or the Biomedical Sciences Corps of the Air 
     Force; and
       ``(2) is on active duty under a call or order to active 
     duty for a period of not less than one year.
       ``(b) Public Health Service Corps.--Subject to subsection 
     (c), the Secretary of Health and Human Services may pay 
     special pay at the rates specified in subsection (d) to an 
     officer who--
       ``(1) is an officer in the Regular or Reserve Corps of the 
     Public Health Service and is designated as a pharmacy 
     officer; and
       ``(2) is on active duty under a call or order to active 
     duty for a period of not less than one year.
       ``(c) Limitation.--Special pay may not be paid under this 
     section to an officer serving in a pay grade above pay grade 
     O-6.
       ``(d) Rate of Special Pay.--The rate of special pay paid to 
     an officer under subsection (a) or (b) is as follows:
       ``(1) $3,000 per year, if the officer is undergoing 
     pharmacy internship training or has less than 3 years of 
     creditable service.
       ``(2) $7,000 per year, if the officer has at least 3 but 
     less than 6 years of creditable service and is not undergoing 
     pharmacy internship training.
       ``(3) $7,000 per year, if the officer has at least 6 but 
     less than 8 years of creditable service.
       ``(4) $12,000 per year, if the officer has at least 8 but 
     less than 12 years of creditable service.
       ``(5) $10,000 per year, if the officer has at least 12 but 
     less than 14 years of creditable service.
       ``(6) $9,000 per year, if the officer has at least 14 but 
     less than 18 years of creditable service.
       ``(7) $8,000 per year, if the officer has 18 or more years 
     of creditable service.

     ``Sec. 302j. Special pay: accession bonus for pharmacy 
       officers

       ``(a) Accession Bonus Authorized.--A person who is a 
     graduate of an accredited pharmacy school and who, during the 
     period beginning on the date of the enactment of the Floyd D. 
     Spence National Defense Authorization Act for Fiscal Year 
     2001 and ending on September 30, 2004, executes a written 
     agreement described in subsection (c) to accept a commission 
     as an officer of a uniformed service and remain on active 
     duty for a period of not less than 4 years may, upon 
     acceptance of the agreement by the Secretary concerned, be 
     paid an accession bonus in an amount determined by the 
     Secretary concerned.
       ``(b) Limitation on Amount of Bonus.--The amount of an 
     accession bonus under subsection (a) may not exceed $30,000.
       ``(c) Limitation on Eligibility for Bonus.--A person may 
     not be paid a bonus under subsection (a) if--
       ``(1) the person, in exchange for an agreement to accept an 
     appointment as a warrant or commissioned officer, received 
     financial assistance from the Department of Defense or the 
     Department of Health and Human Services to pursue a course of 
     study in pharmacy; or
       ``(2) the Secretary concerned determines that the person is 
     not qualified to become and remain licensed as a pharmacist.
       ``(d) Agreement.--The agreement referred to in subsection 
     (a) shall provide that, consistent with the needs of the 
     uniformed service concerned, the person executing the 
     agreement shall be assigned to duty, for the period of 
     obligated service covered by the agreement, as a pharmacy 
     officer in the Medical Service Corps of the Army or Navy, a 
     biomedical sciences officer in the Air Force designated as a 
     pharmacy officer, or a pharmacy officer of the Public Health 
     Service.
       ``(e) Repayment.--(1) An officer who receives a payment 
     under subsection (a) and who fails to become and remain 
     licensed as a pharmacist during the period for which the 
     payment is made shall refund to the United States an amount 
     equal to the full amount of such payment.

[[Page 21400]]

       ``(2) An officer who voluntarily terminates service on 
     active duty before the end of the period agreed to be served 
     under subsection (a) shall refund to the United States an 
     amount that bears the same ratio to the amount paid to the 
     officer as the unserved part of such period bears to the 
     total period agreed to be served.
       ``(3) An obligation to reimburse the United States under 
     paragraph (1) or (2) is for all purposes a debt owed to the 
     United States.
       ``(4) A discharge in bankruptcy under title 11 that is 
     entered less than 5 years after the termination of an 
     agreement under this section does not discharge the person 
     signing such agreement from a debt arising under such 
     agreement or this subsection. This paragraph applies to any 
     case commenced under title 11 after the date of the enactment 
     of the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001.''.
       (b) Administration.--Section 303a of title 37, United 
     States Code, is amended by striking ``302h'' each place it 
     appears and inserting ``302j''.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 5 of such title is amended by inserting 
     after the item relating to section 302h the following new 
     items:

``302i. Special pay: pharmacy officers.
``302j. Special pay: accession bonus for pharmacy officers.''.

     SEC. 629. CORRECTION OF REFERENCES TO AIR FORCE 
                   VETERINARIANS.

       Section 303(a) of title 37, United States Code, is 
     amended--
       (1) in paragraph (1)(B), by striking ``who is designated as 
     a veterinary officer'' and inserting ``who is an officer in 
     the Biomedical Sciences Corps and holds a degree in 
     veterinary medicine''; and
       (2) in paragraph (2), by striking subparagraph (B) and 
     inserting the following:
       ``(B) of a reserve component of the Air Force, of the Army 
     or the Air Force without specification of component, or of 
     the National Guard, who--
       ``(i) is designated as a veterinary officer; or
       ``(ii) is an officer in the Biomedical Sciences Corps of 
     the Air Force and holds a degree in veterinary medicine; 
     or''.

     SEC. 630. CAREER SEA PAY.

       (a) Reform of Authorities.--Section 305a of title 37, 
     United States Code, is amended--
       (1) in subsection (a), by striking ``(a) Under regulations 
     prescribed by the President, a member'' and inserting ``(a) 
     Availability of Special Pay.--A member'';
       (2) by redesignating subsection (d) as subsection (e); and
       (3) by striking subsections (b) and (c) and inserting the 
     following new subsections:
       ``(b) Rates; Maximum.--The Secretary concerned shall 
     prescribe the monthly rates for special pay applicable to 
     members of each armed force under the Secretary's 
     jurisdiction. No monthly rate may exceed $750.
       ``(c) Premium.--A member of a uniformed service entitled to 
     career sea pay under this section who has served 36 
     consecutive months of sea duty is also entitled to a career 
     sea pay premium for the thirty-seventh consecutive month and 
     each subsequent consecutive month of sea duty served by such 
     member. The monthly amount of the premium shall be prescribed 
     by the Secretary concerned, but may not exceed $350.
       ``(d) Regulations.--The Secretary concerned shall prescribe 
     regulations for the administration of this section for the 
     armed force or armed forces under the jurisdiction of the 
     Secretary. The entitlements under this section shall be 
     subject to the regulations.''.
       (b) Stylistic Amendment.--Subsection (e) of such section, 
     as redesignated by subsection (a)(2), is amended by inserting 
     before ``(1)'' in paragraph (1) the following: ``Definition 
     of Sea Duty.--''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2000, and shall apply with 
     respect to months beginning on or after that date.

     SEC. 631. INCREASED MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT 
                   PAY.

       Section 307(a) of title 37, United States Code, is 
     amended--
       (1) by striking ``$275'' and inserting ``$600''; and
       (2) by striking the second sentence.

     SEC. 632. ENTITLEMENT OF MEMBERS OF THE NATIONAL GUARD AND 
                   OTHER RESERVES NOT ON ACTIVE DUTY TO RECEIVE 
                   SPECIAL DUTY ASSIGNMENT PAY.

       (a) Authority.--Section 307 of title 37, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d)(1) Under regulations prescribed by the Secretary 
     concerned and to the extent provided for by appropriations, 
     when an enlisted member of the National Guard or a reserve 
     component of a uniformed service who is entitled to 
     compensation under section 206 of this title performs duty 
     for which a member described in subsection (a) is entitled to 
     special pay under such subsection, the member of the National 
     Guard or reserve component is entitled to an increase in 
     compensation equal to \1/30\ of the monthly special duty 
     assignment pay prescribed by the Secretary concerned for the 
     performance of that same duty by members described in 
     subsection (a).
       ``(2) A member of the National Guard or a reserve component 
     entitled to an increase in compensation under paragraph (1) 
     is entitled to the increase--
       ``(A) for each regular period of instruction, or period of 
     appropriate duty, at which the member is engaged for at least 
     two hours, including that performed on a Sunday or holiday; 
     or
       ``(B) for the performance of such other equivalent 
     training, instruction, duty, or appropriate duties, as the 
     Secretary may prescribe under section 206(a) of this title.
       ``(3) This subsection does not apply to a member of the 
     National Guard or a reserve component who is entitled to 
     basic pay under section 204 of this title.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect October 1, 2000.

     SEC. 633. AUTHORIZATION OF RETENTION BONUS FOR MEMBERS OF THE 
                   ARMED FORCES QUALIFIED IN A CRITICAL MILITARY 
                   SKILL.

       (a) Bonus Authorized.--(1) Chapter 5 of title 37, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 323. Special pay: retention incentives for members 
       qualified in a critical military skill

       ``(a) Retention Bonus Authorized.--An officer or enlisted 
     member of the armed forces who is serving on active duty and 
     is qualified in a designated critical military skill may be 
     paid a retention bonus as provided in this section if--
       ``(1) in the case of an officer, the member executes a 
     written agreement to remain on active duty for at least 1 
     year; or
       ``(2) in the case of an enlisted member, the member 
     reenlists or voluntarily extends the member's enlistment for 
     a period of at least 1 year.
       ``(b) Designation of Critical Skills.--(1) A designated 
     critical military skill referred to in subsection (a) is a 
     military skill designated as critical by the Secretary of 
     Defense, or by the Secretary of Transportation with respect 
     to the Coast Guard when it is not operating as a service in 
     the Navy.
       ``(2) The Secretary of Defense, and the Secretary of 
     Transportation with respect to the Coast Guard when it is not 
     operating as a service in the Navy, shall notify Congress, in 
     advance, of each military skill to be designated by the 
     Secretary as critical for purposes of this section. The 
     notice shall be submitted at least 90 days before any bonus 
     with regard to that critical skill is offered under 
     subsection (a) and shall include a discussion of the 
     necessity for the bonus, the amount and method of payment of 
     the bonus, and the retention results that the bonus is 
     expected to achieve.
       ``(c) Payment Methods.--A bonus under this section may be 
     paid in a single lump sum or in periodic installments.
       ``(d) Maximum Bonus Amount.--A member may enter into an 
     agreement under this section, or reenlist or voluntarily 
     extend the member's enlistment, more than once to receive a 
     bonus under this section. However, a member may not receive a 
     total of more than $200,000 in payments under this section.
       ``(e) Certain Members Ineligible.--A retention bonus may 
     not be provided under subsection (a) to a member of the armed 
     forces who--
       ``(1) has completed more than 25 years of active duty; or
       ``(2) will complete the member's twenty-fifth year of 
     active duty before the end of the period of active duty for 
     which the bonus is being offered.
       ``(f) Relationship to Other Incentives.--A retention bonus 
     paid under this section is in addition to any other pay and 
     allowances to which a member is entitled.
       ``(g) Repayment of Bonus.--(1) If an officer who has 
     entered into a written agreement under subsection (a) fails 
     to complete the total period of active duty specified in the 
     agreement, or an enlisted member who voluntarily or because 
     of misconduct does not complete the term of enlistment for 
     which a bonus was paid under this section, the Secretary of 
     Defense, and the Secretary of Transportation with respect to 
     members of the Coast Guard when it is not operating as a 
     service in the Navy, may require the member to repay the 
     United States, on a pro rata basis and to the extent that the 
     Secretary determines conditions and circumstances warrant, 
     all sums paid under this section.
       ``(2) An obligation to repay the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States.
       ``(3) A discharge in bankruptcy under title 11 that is 
     entered less than 5 years after the termination of a written 
     agreement entered into under subsection (a) does not 
     discharge the member from a debt arising under paragraph (2).
       ``(h) Annual Report.--Not later than February 15 of each 
     year, the Secretary of Defense and the Secretary of 
     Transportation shall submit to Congress a report--
       ``(1) analyzing the effect, during the preceding fiscal 
     year, of the provision of bonuses under this section on the 
     retention of members qualified in the critical military 
     skills for which the bonuses were offered; and
       ``(2) describing the intentions of the Secretary regarding 
     the continued use of the bonus authority during the current 
     and next fiscal years.
       ``(i) Termination of Bonus Authority.--No bonus may be paid 
     under this section with respect to any reenlistment, or 
     voluntary extension of an enlistment, in the armed forces 
     entered into after December 31, 2001, and no agreement under 
     this section may be entered into after that date.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``323. Special pay: retention incentives for members qualified in a 
              critical military skill.''.


[[Page 21401]]


       (b) Effective Date.--Section 323 of title 10, United States 
     Code, as added by subsection (a), shall take effect on 
     October 1, 2000.

     SEC. 634. ENTITLEMENT OF ACTIVE DUTY OFFICERS OF THE PUBLIC 
                   HEALTH SERVICE CORPS TO SPECIAL PAYS AND 
                   BONUSES OF HEALTH PROFESSIONAL OFFICERS OF THE 
                   ARMED FORCES.

       (a) In General.--Section 303a of title 37, United States 
     Code, is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d); and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b)(1) Except as provided in paragraph (2) or as 
     otherwise provided under a provision of this chapter, a 
     commissioned officer in the Regular or Reserve Corps of the 
     Public Health Service is entitled to special pay under a 
     provision of this chapter in the same amounts, and under the 
     same terms and conditions, as a commissioned officer of the 
     armed forces is entitled to special pay under that provision.
       ``(2) A commissioned medical officer in the Regular or 
     Reserve Corps of the Public Health Service (other than an 
     officer serving in the Indian Health Service) may not receive 
     additional special pay under section 302(a)(4) of this title 
     for any period during which the officer is providing 
     obligated service under the following provisions of law:
       ``(A) Section 338B of the Public Health Service Act (42 
     U.S.C. 254l-1).
       ``(B) Section 225(e) of the Public Health Service Act, as 
     that section was in effect before 1, 1977.
       ``(C) Section 752 of the Public Health Service Act, as that 
     section was in effect between October 1, 1977, and August 13, 
     1981.''.
       (b) Repeal of Superseded Provisions.--Section 208(a) of the 
     Public Health Service Act (42 U.S.C. 210(a)) is amended--
       (1) by striking paragraphs (2) and (3); and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) For provisions relating to the receipt of special pay 
     by commissioned officers of the Regular and Reserve Corps 
     while on active duty, see section 303a(b) of title 37, United 
     States Code.''.
            Subtitle C--Travel and Transportation Allowances

     SEC. 641. ADVANCE PAYMENTS FOR TEMPORARY LODGING OF MEMBERS 
                   AND DEPENDENTS.

       (a) Subsistence Expenses.--Section 404a of title 37, United 
     States Code, is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (d) and (e), respectively; and
       (2) by striking subsection (a) and inserting the following:
       ``(a) Payment or Reimbursement of Subsistence Expenses.--
     (1) Under regulations prescribed by the Secretaries 
     concerned, a member of a uniformed service who is ordered to 
     make a change of permanent station described in paragraph (2) 
     shall be paid or reimbursed for subsistence expenses of the 
     member and the member's dependents for the period (subject to 
     subsection (c)) for which the member and dependents occupy 
     temporary quarters incident to that change of permanent 
     station.
       ``(2) Paragraph (1) applies to the following:
       ``(A) A permanent change of station from any duty station 
     to a duty station in the United States (other than Hawaii or 
     Alaska).
       ``(B) A permanent change of station from a duty station in 
     the United States (other than Hawaii or Alaska) to a duty 
     station outside the United States or in Hawaii or Alaska.
       ``(C) In the case of an enlisted member who is reporting to 
     the member's first permanent duty station, the change from 
     the member's home of record or initial technical school to 
     that first permanent duty station.
       ``(b) Payment in Advance.--The Secretary concerned may make 
     any payment for subsistence expenses to a member under this 
     section in advance of the member actually incurring the 
     expenses. The amount of an advance payment made to a member 
     shall be computed on the basis of the Secretary's 
     determination of the average number of days that members and 
     their dependents occupy temporary quarters under the 
     circumstances applicable to the member and the member's 
     dependents.
       ``(c) Maximum Payment Period.--(1) In the case of a change 
     of permanent station described in subparagraph (A) or (C) of 
     subsection (a)(2), the period for which subsistence expenses 
     are to be paid or reimbursed under this section may not 
     exceed 10 days.
       ``(2) In the case of a change of permanent station 
     described in subsection (a)(2)(B)--
       ``(A) the period for which such expenses are to be paid or 
     reimbursed under this section may not exceed five days; and
       ``(B) such payment or reimbursement may be provided only 
     for expenses incurred before leaving the United States (other 
     than Hawaii or Alaska).''.
       (b) Per Diem.--Section 405 of such title is amended to read 
     as follows:

     ``Sec. 405. Travel and transportation allowances: per diem 
       while on duty outside the United States or in Hawaii or 
       Alaska

       ``(a) Per Diem Authorized.--Without regard to the monetary 
     limitation of this title, the Secretary concerned may pay a 
     per diem to a member of the uniformed services who is on duty 
     outside of the United States or in Hawaii or Alaska, whether 
     or not the member is in a travel status. The Secretary may 
     pay the per diem in advance of the accrual of the per diem.
       ``(b) Determination of Per Diem.--In determining the per 
     diem to be paid under this section, the Secretary concerned 
     shall consider all elements of the cost of living to members 
     of the uniformed services under the Secretary's jurisdiction 
     and their dependents, including the cost of quarters, 
     subsistence, and other necessary incidental expenses. 
     However, dependents may not be considered in determining the 
     per diem allowance for a member in a travel status.
       ``(c) Treatment of Housing Cost and Allowance.--Housing 
     cost and allowance may be disregarded in prescribing a 
     station cost of living allowance under this section.''.
       (c) Stylistic Amendments.--Section 404a of such title is 
     further amended--
       (1) in subsection (d), as redesignated by subsection (a), 
     by striking ``(d)'' and inserting ``(d) Daily Subsistence 
     Rates.--''; and
       (2) in subsection (e), as redesignated by subsection (a), 
     by striking ``(e)'' and inserting ``(e) Maximum Daily 
     Payment.--''.

     SEC. 642. ADDITIONAL TRANSPORTATION ALLOWANCE REGARDING 
                   BAGGAGE AND HOUSEHOLD EFFECTS.

       (a) Pet Quarantine Fees.--Section 406(a)(1) of title 37, 
     United States Code, is amended by adding at the end the 
     following new sentence: ``The Secretary concerned may also 
     reimburse the member for mandatory pet quarantine fees for 
     household pets, but not to exceed $275 per change of station, 
     when the member incurs the fees incident to such change of 
     station.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect October 1, 2000.

     SEC. 643. INCENTIVE FOR SHIPPING AND STORING HOUSEHOLD GOODS 
                   IN LESS THAN AVERAGE WEIGHTS.

       Section 406(b)(1) of title 37, United States Code, is 
     amended by adding at the end the following new subparagraph:
       ``(G) Under regulations prescribed by the Secretary of 
     Defense, the Secretary concerned may pay a member a share 
     (determined pursuant to such regulations) of the savings 
     resulting to the United States when the total weights of the 
     member's baggage and household effects shipped and stored 
     under subparagraph (A) are less than the average weights of 
     the baggage and household effects that are shipped and 
     stored, respectively, by other members in the same grade and 
     with the same dependents status as the member in connection 
     with changes of station that are comparable to the member's 
     change of station. The total savings shall be equal to the 
     difference between the cost of shipping and cost of storing 
     such average weights of baggage and household effects, 
     respectively, and the corresponding costs associated with the 
     weights of the member's baggage and household effects. For 
     the administration of this subparagraph, the Secretary of 
     Defense shall annually determine the average weights of 
     baggage and household effects shipped and stored in 
     connection with a change of temporary or permanent 
     station.''.

     SEC. 644. EQUITABLE DISLOCATION ALLOWANCES FOR JUNIOR 
                   ENLISTED MEMBERS.

       Section 407(c)(1) of title 37, United States Code, is 
     amended by inserting before the period at the end the 
     following: ``, except that the Secretary concerned may not 
     differentiate between members with dependents in pay grades 
     E-1 through E-5''.

     SEC. 645. AUTHORITY TO REIMBURSE MILITARY RECRUITERS, SENIOR 
                   ROTC CADRE, AND MILITARY ENTRANCE PROCESSING 
                   PERSONNEL FOR CERTAIN PARKING EXPENSES.

       (a) Reimbursement Authority.--Chapter 7 of title 37, United 
     States Code, is amended by inserting after section 411h the 
     following new section:

     ``Sec. 411i. Travel and transportation allowances: parking 
       expenses

       ``(a) Reimbursement Authority.--Under regulations 
     prescribed by the Secretary of Defense, the Secretary of a 
     military department may reimburse eligible Department of 
     Defense personnel for expenses incurred after October 1, 
     2001, for parking a privately owned vehicle at a place of 
     duty described in subsection (b).
       ``(b) Eligibility.--A member of the Army, Navy, Air Force, 
     or Marine Corps or an employee of the Department of Defense 
     may be reimbursed under subsection (a) for parking expenses 
     while--
       ``(1) assigned to duty as a recruiter for any of the armed 
     forces;
       ``(2) assigned to duty at a military entrance processing 
     facility of the armed forces; or
       ``(3) detailed for instructional and administrative duties 
     at any institution where a unit of the Senior Reserve 
     Officers' Training Corps is maintained.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 411h the following new item:

``411i. Travel and transportation allowances: parking expenses.''.

     SEC. 646. EXPANSION OF FUNDED STUDENT TRAVEL FOR DEPENDENTS.

       Section 430 of title 37, United States Code, is amended--
       (1) in subsections (a)(3) and (b)(1), by striking ``for the 
     purpose of obtaining a secondary or undergraduate college 
     education'' and inserting ``for the purpose of obtaining a 
     formal education''; and
       (2) in subsection (f)--
       (A) by striking ``In this section, the term'' and inserting 
     the following:
       ``In this section:
       ``(1) The term''; and
       (B) by adding at the end the following new subparagraph:
       ``(2) The term `formal education' means the following:

[[Page 21402]]

       ``(A) A secondary education.
       ``(B) An undergraduate college education.
       ``(C) A graduate education pursued on a full-time basis at 
     an institution of higher education (as defined in section 101 
     of the Higher Education Act of 1965 (20 U.S.C. 1001)).
       ``(D) Vocational education pursued on a full-time basis at 
     a post-secondary vocational institution (as defined in 
     section 102(c) of the Higher Education Act of 1965 (20 U.S.C. 
     1002(c))).''.
          Subtitle D--Retirement and Survivor Benefit Matters

     SEC. 651. EXCEPTION TO HIGH-36 MONTH RETIRED PAY COMPUTATION 
                   FOR MEMBERS RETIRED FOLLOWING A DISCIPLINARY 
                   REDUCTION IN GRADE.

       Section 1407 of title 10, United States Code, is amended--
       (1) in subsection (b), by striking ``The retired pay base'' 
     and inserting ``Except as provided in subsection (f), the 
     retired pay base''; and
       (2) by adding at the end the following new subsection:
       ``(f) Exception for Enlisted Members Reduced in Grade and 
     Officers Who Do Not Serve Satisfactorily in Highest Grade 
     Held.--
       ``(1) Computation based on pre-high-three rules.--In the 
     case of a member or former member described in paragraph (2), 
     the retired pay base or retainer pay base is determined under 
     section 1406 of this title in the same manner as if the 
     member or former member first became a member of a uniformed 
     service before September 8, 1980.
       ``(2) Affected members.--A member or former member referred 
     to in paragraph (1) is a member or former member who by 
     reason of conduct occurring after the date of the enactment 
     of this subsection--
       ``(A) in the case of a member retired in an enlisted grade 
     or transferred to the Fleet Reserve or Fleet Marine Corps 
     Reserve, was at any time reduced in grade as the result of a 
     court-martial sentence, nonjudicial punishment, or an 
     administrative action, unless the member was subsequently 
     promoted to a higher enlisted grade or appointed to a 
     commissioned or warrant grade; and
       ``(B) in the case of an officer, is retired in a grade 
     lower than the highest grade in which served by reason of 
     denial of a determination or certification under section 1370 
     of this title that the officer served on active duty 
     satisfactorily in that grade.
       ``(3) Special rule for enlisted members.--In the case of a 
     member who retires within three years after having been 
     reduced in grade as described in paragraph (2)(A), who 
     retires in an enlisted grade that is lower than the grade 
     from which reduced, and who would be subject to paragraph (1) 
     but for a subsequent promotion to a higher enlisted grade or 
     a subsequent appointment to a warrant or commissioned grade, 
     the rates of basic pay used in the computation of the 
     member's high-36 average for the period of the member's 
     service in a grade higher than the grade in which retired 
     shall be the rates of pay that would apply if the member had 
     been serving for that period in the grade in which 
     retired.''.

     SEC. 652. INCREASE IN MAXIMUM NUMBER OF RESERVE RETIREMENT 
                   POINTS THAT MAY BE CREDITED IN ANY YEAR.

       Section 12733(3) of title 10, United States Code, is 
     amended by striking ``but not more than'' and all that 
     follows and inserting ``but not more than--
       ``(A) 60 days in any one year of service before the year of 
     service that includes September 23, 1996;
       ``(B) 75 days in the year of service that includes 
     September 23, 1996, and in any subsequent year of service 
     before the year of service that includes the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001; and
       ``(C) 90 days in the year of service that includes the date 
     of the enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 and in any subsequent 
     year of service.''.

     SEC. 653. RETIREMENT FROM ACTIVE RESERVE SERVICE AFTER 
                   REGULAR RETIREMENT.

       (a) Conversion to Reserve Retirement.--(1) Chapter 1223 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 12741. Retirement from active reserve service 
       performed after regular retirement

       ``(a) Election of Reserve Retired Pay.--A person who, after 
     becoming entitled to retired or retainer pay under chapter 
     65, 367, 571, or 867 of this title, serves in an active 
     status in a reserve component is entitled to retired pay 
     under this chapter if--
       ``(1) the person would, but for paragraphs (3) and (4) of 
     section 12731(a) of this title, otherwise be entitled to 
     retired pay under this chapter;
       ``(2) the person elects under this section to received 
     retired pay under this chapter; and
       ``(3) the person's service in an active status after having 
     become entitled to retired or retainer pay under that chapter 
     is determined by the Secretary concerned to have been 
     satisfactory.
       ``(b) Actions To Effectuate Election.--As of the effective 
     date of an election made by a person under subsection (a), 
     the Secretary concerned shall--
       ``(1) terminate the person's entitlement to retired or 
     retainer pay under the applicable chapter of this title 
     referred to in subsection (a); and
       ``(2) in the case of a reserve commissioned officer, 
     transfer the officer to the Retired Reserve.
       ``(c) Time and Form of Election.--An election under 
     subsection (b) shall be made within such time and in such 
     form as the Secretary concerned requires.
       ``(d) Effective Date of Election.--An election made by a 
     person under subsection (b) shall be effective--
       ``(1) except as provided in paragraph (2)(B), as of the 
     date on which the person attains 60 years of age, if the 
     Secretary concerned receives the election in accordance with 
     this section within 180 days after that date; or
       ``(2) on the first day of the first month that begins after 
     the date on which the Secretary concerned receives the 
     election in accordance with this section, if--
       ``(A) the date of the receipt of the election is more than 
     180 days after the date on which the person attains 60 years 
     of age; or
       ``(B) the person retires from service in an active status 
     within that 180-day period.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``12741. Retirement from active service performed after regular 
              retirement.''.

       (b) Effective Date.--Section 12741 of title 10, United 
     States Code, as added by subsection (a), shall take effect 
     180 days after the date of the enactment of this Act and 
     shall apply with respect to retired pay payable for months 
     beginning on of after that effective date.

     SEC. 654. SAME TREATMENT FOR FEDERAL JUDGES AS FOR OTHER 
                   FEDERAL OFFICIALS REGARDING PAYMENT OF MILITARY 
                   RETIRED PAY.

       (a) Article III Judges.--(1) Section 371 of title 28, 
     United States Code, is amended--
       (A) by striking subsection (e); and
       (B) by redesignating subsection (f) as subsection (e).
       (2) Subsection (b) of such section is amended by striking 
     ``subsection (f)'' each place it appears and inserting 
     ``subsection (e)''.
       (b) Judges of United States Court of Federal Claims.--(1) 
     Section 180 of title 28, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 7 of 
     such title is amended by striking the item relating to 
     section 180.
       (c) Retroactive Effective Date.--The amendments made by 
     this section shall take effect as of October 1, 1999.

     SEC. 655. RESERVE COMPONENT SURVIVOR BENEFIT PLAN SPOUSAL 
                   CONSENT REQUIREMENT.

       (a) Eligible Participants.--Subsection (a)(2)(B) of section 
     1448 of title 10, United States Code, is amended to read as 
     follows:
       ``(B) Reserve-component annuity participants.--A person who 
     (i) is eligible to participate in the Plan under paragraph 
     (1)(B), and (ii) is married or has a dependent child when he 
     is notified under section 12731(d) of this title that he has 
     completed the years of service required for eligibility for 
     reserve-component retired pay, unless the person elects (with 
     his spouse's concurrence, if required under paragraph (3)) 
     not to participate in the Plan before the end of the 90-day 
     period beginning on the date on which he receives that 
     notification.''.
       (b) Subsequent Election To Participate.--Subsection 
     (a)(3)(B) of such section is amended--
       (1) by striking ``who elects to provide'' and inserting 
     ``who is eligible to provide'';
       (2) by redesignating clauses (i) and (ii) as clauses (iii) 
     and (iv), respectively; and
       (3) by inserting before clause (iii) (as so redesignated) 
     the following new clauses:
       ``(i) not to participate in the Plan;
       ``(ii) to designate under subsection (e)(2) the effective 
     date for commencement of annuity payments under the Plan in 
     the event that the member dies before becoming 60 years of 
     age to be the 60th anniversary of the member's birth (rather 
     than the day after the date of the member's death);''.
       (c) Conforming Amendments.--Subchapter II of chapter 73 of 
     such title is further amended--
       (1) in section 1448(a)(2), by striking ``described in 
     clauses (i) and (ii)'' in the sentence following subparagraph 
     (B) (as amended by subsection (a)) and all that follows 
     through ``that clause'' and inserting ``who elects under 
     subparagraph (B) not to participate in the Plan'';
       (2) in section 1448(a)(4)--
       (A) by striking ``not to participate in the Plan'' in 
     subparagraph (A); and
       (B) by striking ``to participate in the Plan'' in 
     subparagraph (B);
       (3) in section 1448(e), by striking ``a person electing to 
     participate'' and all that follows through ``making such 
     election'' and inserting ``a person is required to make a 
     designation under this subsection, the person''; and
       (4) in section 1450(j)(1), by striking ``An annuity'' and 
     all that follows through the period and inserting ``A 
     reserve-component annuity shall be effective in accordance 
     with the designation made under section 1448(e) of this title 
     by the person providing the annuity.''.
       (d) Effective Date.--The amendments made by this section 
     apply only with respect to a notification under section 
     12731(d) of title 10, United States Code, made after January 
     1, 2001, that a member of a reserve component has completed 
     the years of service required for eligibility for reserve-
     component retired pay.

     SEC. 656. SENSE OF CONGRESS ON INCREASING SURVIVOR BENEFIT 
                   PLAN ANNUITIES FOR SURVIVING SPOUSES AGE 62 OR 
                   OLDER.

       (a) Sense of Congress.--It is the sense of Congress that, 
     subject to the requirements and limitations of congressional 
     budget procedures relating to the enactment of new (or 
     increased) entitlement authority, there should be enacted 
     legislation that increases the annuities provided

[[Page 21403]]

     under the Survivor Benefit Plan program for surviving spouses 
     who are 62 years of age or older in order to reduce (and 
     eventually eliminate) the different levels of annuities under 
     that program for surviving spouses who are under age 62 and 
     those who are 62 years of age and older.
       (b) Survivor Benefit Plan.--For purposes of this section, 
     the term ``Survivor Benefit Plan program'' means the program 
     of annuities for survivors of members of the uniformed 
     services provided under subchapter II of chapter 73 of title 
     10, United States Code.

     SEC. 657. REVISION TO SPECIAL COMPENSATION AUTHORITY TO 
                   REPEAL EXCLUSION OF UNIFORMED SERVICES RETIREES 
                   IN RECEIPT OF DISABILITY RETIRED PAY.

       (a) Eligibility for Chapter 61 Retirees.--Section 1413(c) 
     of title 10, United States Code, is amended by striking 
     ``(other than a member who is retired under chapter 61 of 
     this title)''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2001, and shall apply to 
     months that begin on or after that date. No benefit may be 
     paid under section 1413 of title 10, United States Code, to 
     any person by reason of the amendment made by subsection (a) 
     for any period before that date.
                       Subtitle E--Other Matters

     SEC. 661. PARTICIPATION IN THRIFT SAVINGS PLAN.

       (a) Effective Date of Authority to Participate.--Section 
     663 of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65; 113 Stat. 673; 5 U.S.C. 8440 note) 
     is amended to read as follows:

     ``SEC. 663. EFFECTIVE DATE.

       ``(a) In General.--Except as provided in subsection (b), 
     the amendments made by this subtitle shall take effect 180 
     days after the date of the enactment of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001.
       ``(b) Postponement Authority.--(1) The Secretary of Defense 
     may postpone by up to 180 days after the date that would 
     otherwise apply under subsection (a)--
       ``(A) the date as of which the amendments made by this 
     subtitle shall take effect; or
       ``(B) the date as of which section 211(a)(2) of title 37, 
     United States Code (as added by this subtitle) shall take 
     effect.
       ``(2) Postponement authority under this subsection may be 
     exercised only to the extent that the failure to do so would 
     prevent the Federal Retirement Thrift Investment Board from 
     being able to provide timely and accurate services to 
     investors or would place an excessive burden on the 
     administrative capacity of the Board to accommodate 
     participants in the Thrift Savings Plan, as determined by the 
     Secretary of Defense after consultation with the Executive 
     Director (appointed by the Board).
       ``(3) Paragraph (1) includes the authority to postpone the 
     effective date of the amendments made by this subtitle (apart 
     from section 211(a)(2) of title 37, United States Code), and 
     the effective date of such section 211(a)(2), by different 
     lengths of time.
       ``(4) The Secretary shall notify the congressional defense 
     committees, the Committee on Government Reform of the House 
     of Representatives, and the Committee on Governmental Affairs 
     of the Senate of any determination made under this 
     subsection.''.
       (b) Regulations.--Section 661(b) of such Act (113 Stat. 
     672; 5 U.S.C. 8440e note) is amended by striking ``the date 
     on which'' and all that follows through ``later,'' and 
     inserting ``the 180th day after the date of the enactment of 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001,''.
       (c) Conforming Amendment.--Section 8440e(b)(2)(B)(i) of 
     title 5, United States Code, is amended by striking ``as of'' 
     and all that follows through ``thereof)'' and inserting ``as 
     of the effective date that applies with respect to such 
     individual under section 663 of the National Defense 
     Authorization Act for Fiscal Year 2000''.

     SEC. 662. DETERMINATIONS OF INCOME ELIGIBILITY FOR SPECIAL 
                   SUPPLEMENTAL FOOD PROGRAM.

       Section 1060a(c)(1)(B) of title 10, United States Code, is 
     amended by striking the second sentence and inserting the 
     following new sentence: ``In the application of such 
     criterion, the Secretary shall exclude from income any basic 
     allowance for housing as permitted under section 17(d)(2)(B) 
     of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786(d)(2)(B)).''.

     SEC. 663. BILLETING SERVICES FOR RESERVE MEMBERS TRAVELING 
                   FOR INACTIVE-DUTY TRAINING.

       (a) In General.--(1) Chapter 1217 of title 10, United 
     States Code, is amended by inserting after section 12603 the 
     following new section:

     ``Sec. 12604. Billeting in Department of Defense facilities: 
       Reserves attending inactive-duty training

       ``(a) Authority for Billeting on Same Basis as Active Duty 
     Members Traveling Under Orders.--The Secretary of Defense 
     shall prescribe regulations authorizing a Reserve traveling 
     to inactive-duty training at a location more than 50 miles 
     from that Reserve's residence to be eligible for billeting in 
     Department of Defense facilities on the same basis and to the 
     same extent as a member of the armed forces on active duty 
     who is traveling under orders away from the member's 
     permanent duty station.
       ``(b) Proof of Reason for Travel.--The Secretary shall 
     include in the regulations the means for confirming a 
     Reserve's eligibility for billeting under subsection (a).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     12603 the following new item:

``12604. Billeting in Department of Defense facilities: Reserves 
              attending inactive-duty training.''.

       (b) Effective Date.--Section 12604 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to periods of inactive-duty training beginning more 
     than 180 days after the date of the enactment of this Act.

     SEC. 664. SETTLEMENT OF CLAIMS FOR PAYMENTS FOR UNUSED 
                   ACCRUED LEAVE AND FOR RETIRED PAY.

       (a) Claims for Payments for Unused Accrued Leave.--
     Subsection (a)(1)(A) of section 3702 of title 31, United 
     States Code, is amended by inserting ``payments for unused 
     accrued leave,'' after ``transportation,''.
       (b) Waiver of Time Limitations.--Subsection (e)(1) of such 
     section is amended by striking ``claim for pay or allowances 
     provided under title 37'' and inserting ``claim for pay, 
     allowances, or payment for unused accrued leave under title 
     37 or a claim for retired pay under title 10''.

     SEC. 665. ADDITIONAL BENEFITS AND PROTECTIONS FOR PERSONNEL 
                   INCURRING INJURY, ILLNESS, OR DISEASE IN THE 
                   PERFORMANCE OF FUNERAL HONORS DUTY.

       (a) Incapacitation Pay.--Section 204 of title 37, United 
     States Code, is amended--
       (1) in subsection (g)(1)--
       (A) by striking ``or'' at the end of subparagraph (C);
       (B) by striking the period at the end of subparagraph (D) 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(E) in line of duty while--
       ``(i) serving on funeral honors duty under section 12503 of 
     title 10 or section 115 of title 32;
       ``(ii) traveling to or from the place at which the duty was 
     to be performed; or
       ``(iii) remaining overnight at or in the vicinity of that 
     place immediately before so serving, if the place is outside 
     reasonable commuting distance from the member's residence.''; 
     and
       (2) in subsection (h)(1)--
       (A) by striking ``or'' at the end of subparagraph (C);
       (B) by striking the period at the end of subparagraph (D) 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(E) in line of duty while--
       ``(i) serving on funeral honors duty under section 12503 of 
     title 10 or section 115 of title 32;
       ``(ii) traveling to or from the place at which the duty was 
     to be performed; or
       ``(iii) remaining overnight at or in the vicinity of that 
     place immediately before so serving, if the place is outside 
     reasonable commuting distance from the member's residence.''.
       (b) Tort Claims.--Section 2671 of title 28, United States 
     Code, is amended by inserting ``115,'' in the second 
     paragraph after ``members of the National Guard while engaged 
     in training or duty under section''.
       (c) Applicability.--(1) The amendments made by subsection 
     (a) shall apply with respect to months beginning on or after 
     the date of the enactment of this Act.
       (2) The amendment made by subsection (b) shall apply with 
     respect to acts and omissions occurring before, on, or after 
     the date of the enactment of this Act.

     SEC. 666. AUTHORITY FOR EXTENSION OF DEADLINE FOR FILING 
                   CLAIMS ASSOCIATED WITH CAPTURE AND INTERNMENT 
                   OF CERTAIN PERSONS BY NORTH VIETNAM.

       Section 657(d)(1) of the National Defense Authorization Act 
     for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2585) is 
     amended by adding at the end the following new sentence: 
     ``The Secretary may, in the case of any claim under this 
     section, extend the time limitation under the preceding 
     sentence by up to 18 months if the Secretary determines that 
     such an extension in the case of that claim is necessary to 
     prevent an injustice or that failure of the claimant to file 
     the claim within that time limitation is due to excusable 
     neglect.''.

     SEC. 667. BACK PAY FOR MEMBERS OF THE NAVY AND MARINE CORPS 
                   SELECTED FOR PROMOTION WHILE INTERNED AS 
                   PRISONERS OF WAR DURING WORLD WAR II.

       (a) Entitlement of Former Prisoners of War.--Upon receipt 
     of a claim made in accordance with this section, the 
     Secretary of the Navy shall pay, from any appropriation 
     currently available to the Secretary, back pay to any person 
     who, by reason of being interned as a prisoner of war while 
     serving as a member of the Navy or the Marine Corps during 
     World War II, was not available to accept a promotion for 
     which the person had been selected.
       (b) Payment to Surviving Spouse of Deceased Former 
     Member.--In the case of a person described in subsection (a) 
     who is deceased, the back pay for that person under this 
     section shall be paid to the living surviving spouse of that 
     person, if any. If there is no living surviving spouse, no 
     claim may be paid under this section with respect to that 
     person.
       (c) Amount of Back Pay.--(1) The amount of back pay payable 
     to or for a person described in subsection (a) is the amount 
     equal to the difference between--
       (A) the total amount of basic pay that would have been paid 
     to that person for service in the Navy or the Marine Corps 
     for the back-pay computation period if the person had been 
     promoted to the grade to which selected to be promoted; and
       (B) the total amount of basic pay that was actually paid to 
     or for that person for such service for the back-pay 
     computation period.

[[Page 21404]]

       (2) For purposes of paragraph (1), the back-pay computation 
     period for a person covered by subsection (a) is the period--
       (A) beginning on the date (as determined by the Secretary 
     of the Navy) as of when that person's promotion would have 
     been effective for pay purposes but for the person's 
     internment as a prisoner of war; and
       (B) ending on the earliest of--
       (i) the date of the person's discharge or release from 
     active duty;
       (ii) the date on which the person's promotion to that grade 
     in fact became effective for pay purposes; and
       (iii) the end of World War II.
       (d) Time Limitations.--(1) To be eligible for a payment 
     under this section, a claimant must file a claim for such 
     payment with the Secretary of the Navy within two years after 
     the effective date of the regulations prescribed to carry out 
     this section.
       (2) Not later than 18 months after receiving a claim for 
     payment under this section, the Secretary shall determine the 
     eligibility of the claimant for payment of the claim. Subject 
     to subsection (f), if the Secretary determines that the 
     claimant is eligible for the payment, the Secretary shall 
     promptly pay the claim.
       (e) Regulations.--Not later than six months after the date 
     of the enactment of this Act, the Secretary of the Navy shall 
     prescribe regulations to carry out this section. Such 
     regulations shall include procedures by which persons may 
     submit claims for payment under this section.
       (f) Limitation on Disbursement.--(1) Notwithstanding any 
     power of attorney, assignment of interest, contract, or other 
     agreement, the actual disbursement of a payment of back pay 
     under this section may be made only to a person who is 
     eligible for the payment under subsection (a) or (b).
       (2) In the case of a claim approved for payment but not 
     disbursed as a result of paragraph (1), the Secretary shall 
     hold the funds in trust for the person in an interest bearing 
     account until such time as the person makes an election under 
     such paragraph.
       (g) Attorney Fees.--Notwithstanding any contract, the 
     representative of a person may not receive, for services 
     rendered in connection with the claim of, or with respect to, 
     a person under this section, more than 10 percent of the 
     amount of a payment made under this section on that claim.
       (h) Outreach.--The Secretary of the Navy shall take such 
     actions as are necessary to ensure that the benefits and 
     eligibility for benefits under this section are widely 
     publicized by means designed to provide actual notice of the 
     availability of the benefits in a timely manner to the 
     maximum number of eligible persons practicable.
       (i) Definition.--In this section, the term ``World War II'' 
     has the meaning given that term in section 101(8) of title 
     38, United States Code.

     SEC. 668. SENSE OF CONGRESS CONCERNING FUNDING FOR RESERVE 
                   COMPONENTS.

       It is the sense of Congress that it is in the national 
     interest for the President, in the President's Budget for 
     each fiscal year, to provide funds for the reserve components 
     of the Armed Forces at a level sufficient to ensure that the 
     reserve components are able to meet the requirements, 
     including training requirements, specified for them in the 
     National Military Strategy.

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Provision of domiciliary and custodial care for CHAMPUS 
              beneficiaries and certain former CHAMPUS beneficiaries.
Sec. 702. Chiropractic health care for members on active duty.
Sec. 703. School-required physical examinations for certain minor 
              dependents.
Sec. 704. Two-year extension of dental and medical benefits for 
              surviving dependents of certain deceased members.
Sec. 705. Two-year extension of authority for use of contract 
              physicians at military entrance processing stations and 
              elsewhere outside medical treatment facilities.
Sec. 706. Medical and dental care for Medal of Honor recipients.

                     Subtitle B--Senior Health Care

Sec. 711. Implementation of TRICARE senior pharmacy program.
Sec. 712. Conditions for eligibility for CHAMPUS and TRICARE upon the 
              attainment of age 65; expansion and modification of 
              medicare subvention project.
Sec. 713. Accrual funding for health care for medicare-eligible 
              retirees and dependents.

                      Subtitle C--TRICARE Program

Sec. 721. Improvement of access to health care under the TRICARE 
              program.
Sec. 722. Additional beneficiaries under TRICARE Prime Remote program 
              in the continental United States.
Sec. 723. Modernization of TRICARE business practices and increase of 
              use of military treatment facilities.
Sec. 724. Extension of TRICARE managed care support contracts.
Sec. 725. Report on protections against health care providers seeking 
              direct reimbursement from members of the uniformed 
              services.
Sec. 726. Voluntary termination of enrollment in TRICARE retiree dental 
              program.
Sec. 727. Claims processing improvements.
Sec. 728. Prior authorizations for certain referrals and 
              nonavailability-of-health-care statements.

                   Subtitle D--Demonstration Projects

Sec. 731. Demonstration project for expanded access to mental health 
              counselors.
Sec. 732. Teleradiology demonstration project.
Sec. 733. Health care management demonstration program.

   Subtitle E--Joint Initiatives With Department of Veterans Affairs

Sec. 741. VA-DOD sharing agreements for health services.
Sec. 742. Processes for patient safety in military and veterans health 
              care systems.
Sec. 743. Cooperation in developing pharmaceutical identification 
              technology.

                       Subtitle F--Other Matters

Sec. 751. Management of anthrax vaccine immunization program.
Sec. 752. Elimination of copayments for immediate family.
Sec. 753. Medical informatics.
Sec. 754. Patient care reporting and management system.
Sec. 755. Augmentation of Army Medical Department by detailing Reserve 
              officers of the Public Health Service.
Sec. 756. Privacy of Department of Defense medical records.
Sec. 757. Authority to establish special locality-based reimbursement 
              rates; reports.
Sec. 758. Reimbursement for certain travel expenses.
Sec. 759. Reduction of cap on payments.
Sec. 760. Training in health care management and administration.
Sec. 761. Studies on feasibility of sharing biomedical research 
              facility.
Sec. 762. Study on comparability of coverage for physical, speech, and 
              occupational therapies.
                    Subtitle A--Health Care Services

     SEC. 701. PROVISION OF DOMICILIARY AND CUSTODIAL CARE FOR 
                   CHAMPUS BENEFICIARIES AND CERTAIN FORMER 
                   CHAMPUS BENEFICIARIES.

       (a) Continuation of Care for Certain CHAMPUS 
     Beneficiaries.--Section 703(a)(1) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 682; 10 U.S.C. 1077 note) is amended by inserting 
     before the period at the end the following: ``or by the 
     prohibition in section 1086(d)(1) of such title''.
       (b) Reimbursement for Services Provided.--Section 703(a) of 
     such Act is further amended by adding at the end the 
     following new paragraph:
       ``(4) The Secretary may provide payment for domiciliary or 
     custodial care services provided to an eligible beneficiary 
     for which payment was discontinued by reason of section 
     1086(d) of title 10, United States Code, and subsequently 
     reestablished under other legal authority. Such payment is 
     authorized for the period beginning on the date of 
     discontinuation of payment for domiciliary or custodial care 
     services and ending on the date of reestablishment of payment 
     for such services.''.
       (c) Cost Limitation for Individual Case Management 
     Program.--(1) Section 1079(a)(17) of title 10, United States 
     Code, is amended--
       (A) by inserting ``(A)'' after ``(17)''; and
       (B) by adding at the end the following:
       ``(B) The total amount expended under subparagraph (A) for 
     a fiscal year may not exceed $100,000,000.''.
       (2) Section 703 of the National Defense Authorization Act 
     for Fiscal Year 2000 is further amended by adding at the end 
     the following:
       ``(e) Cost Limitation.--The total amount paid for services 
     for eligible beneficiaries under subsection (a) for a fiscal 
     year (together with the costs of administering the authority 
     under that subsection) shall be included in the expenditures 
     limited by section 1079(a)(17)(B) of title 10, United States 
     Code.''.
       (3) The amendments made by paragraphs (1) and (2) shall 
     apply to fiscal years after fiscal year 1999.
       (d) Study Required.--(1) Not later than the date that is 
     three months after the date of the enactment of this Act, the 
     Comptroller General of the United States shall undertake a 
     study to evaluate the coordination and effectiveness of the 
     supplemental disability health care programs of the 
     Department of Defense, the Program for Persons with 
     Disabilities and the Individual Case Management Program for 
     Persons with Disabilities, as such programs relate to other 
     elements of the TRICARE program in meeting the health care 
     needs of disabled dependents of members of the Armed Forces 
     on active duty. The Comptroller General shall examine--
       (A) the number of such dependents who receive services 
     under the Program for Persons with Disabilities, and the 
     number of beneficiaries receiving care under the Individual 
     Case Management Program for Persons with Disabilities, and a 
     description of the patterns of use and expenditures for 
     services provided under such programs;
       (B) the effectiveness of the existing system for 
     coordinating the provision of services under the TRICARE 
     program and the supplemental disability programs of the 
     Department of Defense, including the comprehensiveness of 
     services and the cost effectiveness of providing services;
       (C) the extent to which the monthly maximum benefit imposed 
     under current law under the

[[Page 21405]]

     Program for Persons with Disabilities affects the ability of 
     beneficiaries to obtain needed health care services;
       (D) the number of beneficiaries who are receiving services 
     that supplement services to the TRICARE program under the 
     Program for Persons with Disabilities and the Individual Case 
     Management Program for Persons with Disabilities; and
       (E) the extent to which costs or lack of coverage for 
     health care services for disabled dependents of members of 
     the Armed Forces on active duty under existing military 
     health care programs has caused increased enrollment of such 
     dependents in medicaid programs.
       (2) Not later than April 16, 2001, the Comptroller General 
     shall submit to Congress a report on the results of the study 
     under this section, including recommendations for legislative 
     or administrative changes for providing a comprehensive, 
     efficient, and complete system of health care services for 
     disabled dependents of members of the Armed Forces on active 
     duty.

     SEC. 702. CHIROPRACTIC HEALTH CARE FOR MEMBERS ON ACTIVE 
                   DUTY.

       (a) Plan Required.--(1) Not later than March 31, 2001, the 
     Secretary of Defense shall complete development of a plan to 
     provide chiropractic health care services and benefits, as a 
     permanent part of the Defense Health Program (including the 
     TRICARE program), for all members of the uniformed services 
     who are entitled to care under section 1074(a) of title 10, 
     United States Code.
       (2) The plan shall provide for the following:
       (A) Access, at designated military medical treatment 
     facilities, to the scope of chiropractic services as 
     determined by the Secretary, which includes, at a minimum, 
     care for neuro-musculoskeletal conditions typical among 
     military personnel on active duty.
       (B) A detailed analysis of the projected costs of fully 
     integrating chiropractic health care services into the 
     military health care system.
       (C) An examination of the proposed military medical 
     treatment facilities at which such services would be 
     provided.
       (D) An examination of the military readiness requirements 
     for chiropractors who would provide such services.
       (E) An examination of any other relevant factors that the 
     Secretary considers appropriate.
       (F) Phased-in implementation of the plan over a 5-year 
     period, beginning on October 1, 2001.
       (b) Consultation Requirements.--The Secretary of Defense 
     shall consult with the other administering Secretaries 
     described in section 1073 of title 10, United States Code, 
     and the oversight advisory committee established under 
     section 731 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1092 note) 
     regarding the following:
       (1) The development and implementation of the plan required 
     under subsection (a).
       (2) Each report that the Secretary is required to submit to 
     Congress regarding the plan.
       (3) The selection of the military medical treatment 
     facilities at which the chiropractic services described in 
     subsection (a)(2)(A) are to be provided.
       (c) Continuation of Current Services.--Until the plan 
     required under subsection (a) is implemented, the Secretary 
     shall continue to furnish the same level of chiropractic 
     health care services and benefits under the Defense Health 
     Program that is provided during fiscal year 2000 at military 
     medical treatment facilities that provide such services and 
     benefits.
       (d) Report Required.--Not later than January 31, 2001, the 
     Secretary of Defense shall submit a report on the plan 
     required under subsection (a), together with appropriate 
     appendices and attachments, to the Committees on Armed 
     Services of the Senate and the House of Representatives.
       (e) GAO Reports.--The Comptroller General shall monitor the 
     development and implementation of the plan required under 
     subsection (a), including the administration of services and 
     benefits under the plan, and periodically submit to the 
     committees referred to in subsection (d) written reports on 
     such development and implementation.

     SEC. 703. SCHOOL-REQUIRED PHYSICAL EXAMINATIONS FOR CERTAIN 
                   MINOR DEPENDENTS.

       Section 1076 of title 10, United States Code is amended by 
     adding at the end the following:
       ``(f)(1) The administering Secretaries shall furnish an 
     eligible dependent a physical examination that is required by 
     a school in connection with the enrollment of the dependent 
     as a student in that school.
       ``(2) A dependent is eligible for a physical 
     examination under paragraph (1) if the dependent--
       ``(A) is entitled to receive medical care under subsection 
     (a) or is authorized to receive medical care under subsection 
     (b); and
       ``(B) is at least 5 years of age and less than 12 years of 
     age.
       ``(3) Nothing in paragraph (2) may be construed to prohibit 
     the furnishing of a school-required physical examination to 
     any dependent who, except for not satisfying the age 
     requirement under that paragraph, would otherwise be eligible 
     for a physical examination required to be furnished under 
     this subsection.''.

     SEC. 704. TWO-YEAR EXTENSION OF DENTAL AND MEDICAL BENEFITS 
                   FOR SURVIVING DEPENDENTS OF CERTAIN DECEASED 
                   MEMBERS.

       (a) Dental Benefits.--Section 1076a(k)(2) of title 10, 
     United States Code, is amended by striking ``one-year 
     period'' and inserting ``three-year period''.
       (b) Medical Benefits.--Section 1079(g) of title 10, United 
     States Code, is amended by striking ``one-year period'' in 
     the second sentence and inserting ``three-year period''.

     SEC. 705. TWO-YEAR EXTENSION OF AUTHORITY FOR USE OF CONTRACT 
                   PHYSICIANS AT MILITARY ENTRANCE PROCESSING 
                   STATIONS AND ELSEWHERE OUTSIDE MEDICAL 
                   TREATMENT FACILITIES.

       Section 1091(a)(2) of title 10, United States Code, is 
     amended by striking ``December 31, 2000'' in the second 
     sentence and inserting ``December 31, 2002''.

     SEC. 706. MEDICAL AND DENTAL CARE FOR MEDAL OF HONOR 
                   RECIPIENTS.

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

     ``Sec. 1074h. Medical and dental care: medal of honor 
       recipients; dependents

       ``(a) Medal of Honor Recipients.--A former member of the 
     armed forces who is a Medal of Honor recipient and who is not 
     otherwise entitled to medical and dental benefits under this 
     chapter may, upon request, be given medical and dental care 
     provided by the administering Secretaries in the same manner 
     as if entitled to retired pay.
       ``(b) Immediate Dependents.--A person who is an immediate 
     dependent of a Medal of Honor recipient and who is not 
     otherwise entitled to medical and dental benefits under this 
     chapter may, upon request, be given medical and dental care 
     provided by the administering Secretaries in the same manner 
     as if the Medal of Honor recipient were, or (if deceased) was 
     at the time of death, entitled to retired pay.
       ``(c) Definitions--In this section:
       ``(1) The term `Medal of Honor recipient' means a person 
     who has been awarded a medal of honor under section 3741, 
     6241, or 8741 of this title or section 491 of title 14.
       ``(2) The term `immediate dependent' means a dependent 
     described in subparagraph (A), (B), (C), or (D) of section 
     1072(2) of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1074g the following new item:

``1074h. Medical and dental care: medal of honor recipients; 
              dependents.''.

       (b) Effective Date.--Section 1074h of title 10, United 
     States Code, shall apply with respect to medical and dental 
     care provided on or after the date of the enactment of this 
     Act.
                     Subtitle B--Senior Health Care

     SEC. 711. IMPLEMENTATION OF TRICARE SENIOR PHARMACY PROGRAM.

       (a) Expansion of TRICARE Senior Pharmacy Program.--Section 
     723 of the Strom Thurmond National Defense Authorization Act 
     for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2068; 10 
     U.S.C. 1073 note) is amended--
       (1) in subsection (a)--
       (A) by striking ``October 1, 1999'' and inserting ``April 
     1, 2001''; and
       (B) by striking ``who reside in an area selected under 
     subsection (f)'';
       (2) by amending subsection (b) to read as follows:
       ``(b) Program Requirements.--The same coverage for pharmacy 
     services and the same requirements for cost sharing and 
     reimbursement as are applicable under section 1086 of title 
     10, United States Code, shall apply with respect to the 
     program required by subsection (a).'';
       (3) in subsection (d)--
       (A) by striking ``December 31, 2000'' and inserting 
     ``December 31, 2001''; and
       (B) by striking ``December 31, 2002'' and inserting 
     ``December 31, 2003'';
       (4) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by inserting ``and'' after the 
     semicolon;
       (ii) in subparagraph (C), by striking ``; and'' and 
     inserting a period; and
       (iii) by striking subparagraph (D); and
       (B) in paragraph (2), by striking ``at the time'' and all 
     that follows through ``facility'' and inserting ``, before 
     April 1, 2001, has attained the age of 65 and did not enroll 
     in the program described in such paragraph''; and
       (5) by striking subsection (f).
       (b) Termination of Demonstration Project and Retail 
     Pharmacy Network Requirements.--Section 702 of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 10 U.S.C. 1079 note) is amended by adding at the end 
     the following:
       ``(h) Termination.--This section shall cease to apply to 
     the Secretary of Defense on the date after the implementation 
     of section 711 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 that the Secretary 
     determines appropriate, with a view to minimizing instability 
     with respect to the provision of pharmacy benefits, but in no 
     case later than the date that is one year after the date of 
     the enactment of such Act.''.

     SEC. 712. CONDITIONS FOR ELIGIBILITY FOR CHAMPUS AND TRICARE 
                   UPON THE ATTAINMENT OF AGE 65; EXPANSION AND 
                   MODIFICATION OF MEDICARE SUBVENTION PROJECT.

       (a) Eligibility of Medicare Eligible Persons.--(1) Section 
     1086(d) of title 10, United States Code, is amended--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) The prohibition contained in paragraph (1) shall not 
     apply to a person referred to in subsection (c) who--
       ``(A) is enrolled in the supplementary medical insurance 
     program under part B of such title (42 U.S.C. 1395j et seq.); 
     and

[[Page 21406]]

       ``(B) in the case of a person under 65 years of age, is 
     entitled to hospital insurance benefits under part A of title 
     XVIII of the Social Security Act pursuant to subparagraph (A) 
     or (C) of section 226(b)(2) of such Act (42 U.S.C. 426(b)(2)) 
     or section 226A(a) of such Act (42 U.S.C. 426-1(a)).''; and
       (B) in paragraph (4), by striking ``paragraph (1) who 
     satisfy only the criteria specified in subparagraphs (A) and 
     (B) of paragraph (2), but not subparagraph (C) of such 
     paragraph,'' and inserting ``subparagraph (B) of paragraph 
     (2) who do not satisfy the condition specified in 
     subparagraph (A) of such paragraph''.
       (2) Subsection (a)(4)(A) of section 1896 of the Social 
     Security Act (42 U.S.C. 1395ggg) is amended to read as 
     follows:
       ``(A) is eligible for health benefits under section 1086 of 
     such title by reason of subsection (c)(1) of such section;''.
       (3) The amendments made by paragraphs (1) and (2) shall 
     take effect on October 1, 2001.
       (b) 1-Year Extension of Medicare Subvention Project.--
     Section 1896 of the Social Security Act (42 U.S.C. 1395ggg) 
     is amended--
       (1) in subsection (b)(4), by striking ``3-year period'' and 
     inserting ``4-year period''; and
       (2) in subsection (i)(4)--
       (A) by striking ``and'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(D) $70,000,000 for calendar year 2001.''.
       (c) Further Extension of Medicare Subvention Project.--(1) 
     Subsection (b)(4) of section 1896 of the Social Security Act 
     (42 U.S.C. 1395ggg) is amended by striking the period at the 
     end and inserting the following: ``, except that the 
     administering Secretaries may negotiate and (subject to 
     section 701(f) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001) enter into a new or 
     revised agreement under paragraph (1)(A) to continue the 
     project after the end of such period. If the project is so 
     continued, the administering Secretaries may terminate the 
     agreement under which the program operates after providing 
     notice to Congress in accordance with subsection 
     (k)(2)(B)(v).''.
       (2) Such section is further amended--
       (A) in the heading, by striking ``demonstration project'' 
     and inserting ``program'';
       (B) by amending paragraph (2) of subsection (a) to read as 
     follows:
       ``(2) Program.--The term `program' means the program 
     carried out under this section.'';
       (C) by striking ``Demonstration Project'' and 
     ``demonstration project'' and ``project'' each place each 
     appears and inserting ``Program'', ``program'', and 
     ``program'' respectively; and
       (D) by striking ``demonstration'' in the heading of 
     subsection (j)(1).
       (3) Subsection (i)(4) of such section is amended to read as 
     follows:
       ``(4) Cap on amount.--The maximum aggregate expenditures 
     from the trust funds under this subsection pursuant to the 
     agreement entered into between the administering Secretaries 
     under subsection (b) for a fiscal year (before fiscal year 
     2006) shall not exceed the amount agreed by the Secretaries 
     to be the amount that would have been expended from the trust 
     funds on beneficiaries who enroll in the program, had the 
     program not been established, plus the following:
       ``(A) $35,000,000 for fiscal year 2002.
       ``(B) $55,000,000 for fiscal year 2003.
       ``(C) $75,000,000 for fiscal year 2004.
       ``(D) $100,000,000 for fiscal year 2005.''.
       (d) Authorizing Program Expansion and Modifications.--(1) 
     Paragraph (2) of subsection (b) of such section 1896 is 
     amended to read as follows:
       ``(2) Location of sites.--Subject to subsection (k)(2)(B), 
     the program shall be conducted in any site that is designated 
     jointly by the administering Secretaries.''.
       (2) Subsection (d)(2) of such section is amended by 
     inserting ``, or (subject to subsection (k)(2)(B)) such 
     comparable requirements as are included in the agreement 
     under subsection (b)(1)(A)'' after ``the following areas''.
       (3) Subsection (i) of such section is amended--
       (A) in paragraph (2), by inserting ``subject to paragraph 
     (4),'' after ``paragraph (1)''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Modification of payment methodology.--The 
     administering Secretaries may, subject to subsection 
     (k)(2)(B), modify the payment methodology provided under 
     paragraphs (1) and (2) so long as the amount of the 
     reimbursement provided to the Secretary of Defense fully 
     reimburses the Department of Defense for its cost of 
     providing services under the program but does not exceed an 
     amount that is estimated to be equivalent to the amount that 
     otherwise would have been expended under this title for such 
     services if provided other than under the program (not 
     including amounts described in paragraph (2)). Such limiting 
     amount may be based for any site on the amount that would be 
     payable to Medicare+Choice organizations under part C for the 
     area of the site or the amounts that would be payable under 
     parts A and B.''.
       (e) Change in Reports.--Paragraph (2) of subsection (k) of 
     such section 1896 is amended to read as follows:
       ``(2) Reports on program operation and changes.--
       ``(A) Annual report.--The administering Secretaries shall 
     submit to the Committees on Armed Services and Finance of the 
     Senate and the Committees on Armed Services and Ways and 
     Means of the House of Representatives an annual report on the 
     program and its impact on costs and the provision of health 
     services under this title and title 10, United States Code.
       ``(B) Before making certain program changes.--The 
     administering Secretaries shall submit to such Committees a 
     report at least 60 days before--
       ``(i) changing the designation of a site under subsection 
     (b)(2);
       ``(ii) applying comparable requirements under subsection 
     (d)(2);
       ``(iii) making significant changes in payment methodology 
     or amounts under subsection (i)(4);
       ``(iv) making other significant changes in the operation of 
     the program; or
       ``(v) terminating the agreement under the second sentence 
     of subsection (b)(4).
       ``(C) Explanation.--Each report under subparagraph (B) 
     shall include justifications for the changes or termination 
     to which the report refers.''.
       (f) Conditional Effective Date.--(1) Upon negotiating an 
     agreement under the amendment made by subsection (c)(1), the 
     Secretary of Defense and the Secretary of Health and Human 
     Services shall jointly transmit a notification of the 
     proposed agreement to the Committee on Armed Services and the 
     Committee on Finance of the Senate and the Committee on Armed 
     Services and the Committee on Ways and Means of the House of 
     Representatives, and shall include with the transmittal a 
     copy of the proposed agreement and all related agreements and 
     supporting documents.
       (2) Such proposed agreement shall take effect, and the 
     amendments made by subsections (c)(2), (c)(3), (d), and (e) 
     shall take effect, on such date as is provided for in such 
     agreement and in an Act enacted after the date of the 
     enactment of this Act.

     SEC. 713. ACCRUAL FUNDING FOR HEALTH CARE FOR MEDICARE-
                   ELIGIBLE RETIREES AND DEPENDENTS.

       (a) Establishment of Fund.--(1) Part II of subtitle A of 
     title 10, United States Code, is amended by inserting after 
     chapter 55 the following new chapter:

 ``CHAPTER 56--DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH 
                               CARE FUND

``Sec.
``1111.  Establishment and purpose of Fund; definitions.
``1112.  Assets of Fund.
``1113.  Payments from the Fund.
``1114.  Board of Actuaries.
``1115.  Determination of contributions to the Fund.
``1116.  Payments into the Fund.
``1117.  Investment of assets of Fund.

     ``Sec. 1111. Establishment and purpose of Fund; definitions

       ``(a) There is established on the books of the Treasury a 
     fund to be known as the Department of Defense Medicare-
     Eligible Retiree Health Care Fund (hereinafter in this 
     chapter referred to as the ``Fund''), which shall be 
     administered by the Secretary of the Treasury. The Fund shall 
     be used for the accumulation of funds in order to finance on 
     an actuarially sound basis liabilities of the Department of 
     Defense under Department of Defense retiree health care 
     programs for medicare-eligible beneficiaries.
       ``(b) In this chapter:
       ``(1) The term `Department of Defense retiree health care 
     programs for medicare-eligible beneficiaries' means the 
     provisions of this title or any other provision of law 
     creating entitlement to health care for a medicare-eligible 
     member or former member of the uniformed services entitled to 
     retired or retainer pay, or a medicare-eligible dependent of 
     a member or former member of the uniformed services entitled 
     to retired or retainer pay.
       ``(2) The term `medicare-eligible' means entitled to 
     benefits under part A of title XVIII of the Social Security 
     Act (42 U.S.C. 1395c et seq.).
       ``(3) The term `dependent' means a dependent (as such term 
     is defined in section 1072 of this title) described in 
     section 1076(b)(1) of this title.

     ``Sec. 1112. Assets of Fund

       ``There shall be deposited into the Fund the following, 
     which shall constitute the assets of the Fund:
       ``(1) Amounts paid into the Fund under section 1116 of this 
     title.
       ``(2) Any amount appropriated to the Fund.
       ``(3) Any return on investment of the assets of the Fund.

     ``Sec. 1113. Payments from the Fund

       ``(a) There shall be paid from the Fund amounts payable for 
     Department of Defense retiree health care programs for 
     medicare-eligible beneficiaries.
       ``(b) The assets of the Fund are hereby made available for 
     payments under subsection (a).

     ``Sec. 1114. Board of Actuaries

       ``(a)(1) There is established in the Department of Defense 
     a Department of Defense Medicare-Eligible Retiree Health Care 
     Board of Actuaries (hereinafter in this chapter referred to 
     as the ``Board''). The Board shall consist of three members 
     who shall be appointed by the Secretary of Defense from among 
     qualified professional actuaries who are members of the 
     Society of Actuaries.
       ``(2)(A) Except as provided in subparagraph (B), the 
     members of the Board shall serve for a term of 15 years, 
     except that a member of the Board appointed to fill a vacancy 
     occurring before the end of the term for which his 
     predecessor was appointed shall only serve until the

[[Page 21407]]

     end of such term. A member may serve after the end of his 
     term until his successor has taken office. A member of the 
     Board may be removed by the Secretary of Defense for 
     misconduct or failure to perform functions vested in the 
     Board, and for no other reason.
       ``(B) Of the members of the Board who are first appointed 
     under this paragraph, one each shall be appointed for terms 
     ending five, ten, and 15 years, respectively, after the date 
     of appointment, as designated by the Secretary of Defense at 
     the time of appointment.
       ``(3) A member of the Board who is not otherwise an 
     employee of the United States is entitled to receive pay at 
     the daily equivalent of the annual rate of basic pay of the 
     highest rate of basic pay under the General Schedule of 
     subchapter III of chapter 53 of title 5, for each day the 
     member is engaged in the performance of duties vested in the 
     Board, and is entitled to travel expenses, including a per 
     diem allowance, in accordance with section 5703 of title 5.
       ``(b) The Board shall report to the Secretary of Defense 
     annually on the actuarial status of the Fund and shall 
     furnish its advice and opinion on matters referred to it by 
     the Secretary.
       ``(c) The Board shall review valuations of the Fund under 
     section 1115(c) of this title and shall report periodically, 
     not less than once every four years, to the President and 
     Congress on the status of the Fund. The Board shall include 
     in such reports recommendations for such changes as in the 
     Board's judgment are necessary to protect the public interest 
     and maintain the Fund on a sound actuarial basis.

     ``Sec. 1115. Determination of contributions to the Fund

       ``(a) The Board shall determine the amount that is the 
     present value (as of October 1, 2002) of future benefits 
     payable from the Fund that are attributable to service in the 
     uniformed services performed before October 1, 2002. That 
     amount is the original unfunded liability of the Fund. The 
     Board shall determine the period of time over which the 
     original unfunded liability should be liquidated and shall 
     determine an amortization schedule for the liquidation of 
     such liability over that period. Contributions to the Fund 
     for the liquidation of the original unfunded liability in 
     accordance with such schedule shall be made as provided in 
     section 1116(b) of this title.
       ``(b)(1) The Secretary of Defense shall determine each 
     year, in sufficient time for inclusion in budget requests for 
     the following fiscal year, the total amount of Department of 
     Defense contributions to be made to the Fund during that 
     fiscal year under section 1116(a) of this title. That amount 
     shall be the sum of the following:
       ``(A) The product of--
       ``(i) the current estimate of the value of the single level 
     dollar amount to be determined under subsection (c)(1)(A) at 
     the time of the next actuarial valuation under subsection 
     (c); and
       ``(ii) the expected average force strength during that 
     fiscal year for members of the uniformed services on active 
     duty (other than active duty for training) and full-time 
     National Guard duty (other than full-time National Guard duty 
     for training only).
       ``(B) The product of--
       ``(i) the current estimate of the value of the single level 
     dollar amount to be determined under subsection (c)(1)(B) at 
     the time of the next actuarial valuation under subsection 
     (c); and
       ``(ii) the expected average force strength during that 
     fiscal year for members of the Ready Reserve of the uniformed 
     services other than members on full-time National Guard duty 
     other than for training) who are not otherwise described in 
     subparagraph (A)(ii).
       ``(2) The amount determined under paragraph (1) for any 
     fiscal year is the amount needed to be appropriated to the 
     Department of Defense for that fiscal year for payments to be 
     made to the Fund during that year under section 1116(a) of 
     this title. The President shall include not less than the 
     full amount so determined in the budget transmitted to 
     Congress for that fiscal year under section 1105 of title 31. 
     The President may comment and make recommendations concerning 
     any such amount.
       ``(c)(1) Not less often than every four years, the 
     Secretary of Defense shall carry out an actuarial valuation 
     of the Fund. Each such actuarial valuation shall include--
       ``(A) a determination (using the aggregate entry-age normal 
     cost method) of a single level dollar amount for members of 
     the uniformed services on active duty (other than active duty 
     for training) or full-time National Guard duty (other than 
     full-time National Guard duty for training only); and
       ``(B) a determination (using the aggregate entry-age normal 
     cost method) of a single level dollar amount for members of 
     the Ready Reserve of the uniformed services and other than 
     members on full-time National Guard duty other than for 
     training) who are not otherwise described by subparagraph 
     (A).

     Such single level dollar amounts shall be used for the 
     purposes of subsection (b) and section 1116(a) of this title.
       ``(2) If at the time of any such valuation there has been a 
     change in benefits under the Department of Defense retiree 
     health care programs for medicare-eligible beneficiaries that 
     has been made since the last such valuation and such change 
     in benefits increases or decreases the present value of 
     amounts payable from the Fund, the Secretary of Defense shall 
     determine an amortization methodology and schedule for the 
     amortization of the cumulative unfunded liability (or 
     actuarial gain to the Fund) created by such change and any 
     previous such changes so that the present value of the sum of 
     the amortization payments (or reductions in payments that 
     would otherwise be made) equals the cumulative increase (or 
     decrease) in the present value of such amounts.
       ``(3) If at the time of any such valuation the Secretary of 
     Defense determines that, based upon changes in actuarial 
     assumptions since the last valuation, there has been an 
     actuarial gain or loss to the Fund, the Secretary shall 
     determine an amortization methodology and schedule for the 
     amortization of the cumulative gain or loss to the Fund 
     created by such change in assumptions and any previous such 
     changes in assumptions through an increase or decrease in the 
     payments that would otherwise be made to the Fund.
       ``(4) If at the time of any such valuation the Secretary of 
     Defense determines that, based upon the Fund's actuarial 
     experience (other than resulting from changes in benefits or 
     actuarial assumptions) since the last valuation, there has 
     been an actuarial gain or loss to the Fund, the Secretary 
     shall determine an amortization methodology and schedule for 
     the amortization of the cumulative gain or loss to the Fund 
     created by such actuarial experience and any previous 
     actuarial experience through an increase or decrease in the 
     payments that would otherwise be made to the Fund.
       ``(5) Contributions to the Fund in accordance with 
     amortization schedules under paragraphs (2), (3), and (4) 
     shall be made as provided in section 1116(b) of this title.
       ``(d) All determinations under this section shall be made 
     using methods and assumptions approved by the Board of 
     Actuaries (including assumptions of interest rates and 
     medical inflation) and in accordance with generally accepted 
     actuarial principles and practices.
       ``(e) The Secretary of Defense shall provide for the 
     keeping of such records as are necessary for determining the 
     actuarial status of the Fund.

     ``Sec. 1116. Payments into the Fund

       ``(a) The Secretary of Defense shall pay into the Fund at 
     the end of each month as the Department of Defense 
     contribution to the Fund for that month the amount that is 
     the sum of the following:
       ``(1) The product of--
       ``(A) the monthly dollar amount determined using all the 
     methods and assumptions approved for the most recent (as of 
     the first day of the current fiscal year) actuarial valuation 
     under section 1115(c)(1)(A) of this title (except that any 
     statutory change in the Department of Defense retiree health 
     care programs for medicare-eligible beneficiaries that is 
     effective after the date of that valuation and on or before 
     the first day of the current fiscal year shall be used in 
     such determination); and
       ``(B) the total end strength for that month for members of 
     the uniformed services on active duty (other than active duty 
     for training) and full-time National Guard duty (other than 
     full-time National Guard duty for training only).
       ``(2) The product of--
       ``(A) the level monthly dollar amount determined using all 
     the methods and assumptions approved for the most recent (as 
     of the first day of the current fiscal year) actuarial 
     valuation under section 1115(c)(1)(B) of this title (except 
     that any statutory change in the Department of Defense 
     retiree health care programs for medicare-eligible 
     beneficiaries that is effective after the date of that 
     valuation and on or before the first day of the current 
     fiscal year shall be used in such determination); and
       ``(B) the total end strength for that month for members of 
     the Ready Reserve of the uniformed services other than 
     members on full-time National Guard duty other than for 
     training) who are not otherwise described in paragraph 
     (1)(B). Amounts paid into the Fund under this subsection 
     shall be paid from funds available for the Defense Health 
     Program.
       ``(b)(1) At the beginning of each fiscal year the Secretary 
     of the Treasury shall promptly pay into the Fund from the 
     General Fund of the Treasury the amount certified to the 
     Secretary by the Secretary of Defense under paragraph (3). 
     Such payment shall be the contribution to the Fund for that 
     fiscal year required by sections 1115(a) and 1115(c) of this 
     title.
       ``(2) At the beginning of each fiscal year the Secretary of 
     Defense shall determine the sum of the following:
       ``(A) The amount of the payment for that year under the 
     amortization schedule determined by the Board of Actuaries 
     under section 1115(a) of this title for the amortization of 
     the original unfunded liability of the Fund.
       ``(B) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary of Defense under section 1115(c)(2) of this 
     title for the amortization of any cumulative unfunded 
     liability (or any gain) to the Fund resulting from changes in 
     benefits.
       ``(C) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary of Defense under section 1115(c)(3) of this 
     title for the amortization of any cumulative actuarial gain 
     or loss to the Fund resulting from actuarial assumption 
     changes.
       ``(D) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary of Defense under section 111(c)(4) of this 
     title for the amortization of any cumulative actuarial gain 
     or loss to the Fund resulting from actuarial experience.
       ``(3) The Secretary of Defense shall promptly certify the 
     amount determined under paragraph (2) each year to the 
     Secretary of the Treasury.

[[Page 21408]]



     ``Sec. 1117. Investment of assets of Fund

       ``The Secretary of the Treasury shall invest such portion 
     of the Fund as is not in the judgment of the Secretary of 
     Defense required to meet current withdrawals. Such 
     investments shall be in public debt securities with 
     maturities suitable to the needs of the Fund, as determined 
     by the Secretary of Defense, and bearing interest at rates 
     determined by the Secretary of the Treasury, taking into 
     consideration current market yields on outstanding marketable 
     obligations of the United States of comparable maturities. 
     The income on such investments shall be credited to and form 
     a part of the Fund.''.
       (2) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part II of subtitle A, of title 10, 
     United States Code, are amended by inserting after the item 
     relating to chapter 55 the following new item:

``56. Department of Defense Medicare-Eligible Retiree Health Ca1111.''.
       (b) Delayed Effective Dates for Certain Provisions.--(1) 
     Sections 1113 and 1116 of title 10, United States Code (as 
     added by subsection (a)), shall take effect on October 1, 
     2002.
       (2) Section 1115 of such title (as added by such 
     subsection) shall take effect on October 1, 2001.
                      Subtitle C--TRICARE Program

     SEC. 721. IMPROVEMENT OF ACCESS TO HEALTH CARE UNDER THE 
                   TRICARE PROGRAM.

       (a) Waiver of Nonavailability Statement or 
     Preauthorization.--In the case of a covered beneficiary under 
     chapter 55 of title 10, United States Code, who is enrolled 
     in TRICARE Standard, the Secretary of Defense may not require 
     with regard to authorized health care services (other than 
     mental health services) under any new contract for the 
     provision of health care services under such chapter that the 
     beneficiary--
       (1) obtain a nonavailability statement or preauthorization 
     from a military medical treatment facility in order to 
     receive the services from a civilian provider; or
       (2) obtain a nonavailability statement for care in 
     specialized treatment facilities outside the 200-mile radius 
     of a military medical treatment facility.
       (b) Notice.--The Secretary may require that the covered 
     beneficiary inform the primary care manager of the 
     beneficiary of any health care received from a civilian 
     provider or in a specialized treatment facility.
       (c) Exceptions.--Subsection (a) shall not apply if--
       (1) the Secretary demonstrates significant costs would be 
     avoided by performing specific procedures at the affected 
     military medical treatment facilities;
       (2) the Secretary determines that a specific procedure must 
     be provided at the affected military medical treatment 
     facility to ensure the proficiency levels of the 
     practitioners at the facility; or
       (3) the lack of nonavailability statement data would 
     significantly interfere with TRICARE contract administration.
       (d) Effective Date--This section shall take effect on 
     October 1, 2001.

     SEC. 722. ADDITIONAL BENEFICIARIES UNDER TRICARE PRIME REMOTE 
                   PROGRAM IN THE CONTINENTAL UNITED STATES.

       (a) Coverage of Other Uniformed Services.--(1) Section 
     1074(c) of title 10, United States Code, is amended--
       (A) by striking ``armed forces'' each place it appears, 
     except in paragraph (3)(A), and inserting ``uniformed 
     services'';
       (B) in paragraph (1), by inserting after ``military 
     department'' in the first sentence the following: ``, the 
     Department of Transportation (with respect to the Coast Guard 
     when it is not operating as a service in the Navy), or the 
     Department of Health and Human Services (with respect to the 
     National Oceanic and Atmospheric Administration and the 
     Public Health Service)'';
       (C) in paragraph (2), by adding at the end the following:
       ``(C) The Secretary of Defense shall consult with the other 
     administering Secretaries in the administration of this 
     paragraph.''; and
       (D) in paragraph (3)(A), by striking ``The Secretary of 
     Defense may not require a member of the armed forces 
     described in subparagraph (B)'' and inserting ``A member of 
     the uniformed services described in subparagraph (B) may not 
     be required''.
       (2)(A) Subsections (b), (c), and (d)(3) of section 731 of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1811; 10 U.S.C. 1074 note) are 
     amended by striking ``Armed Forces'' and inserting 
     ``uniformed services''.
       (B) Subsection (b) of such section is further amended by 
     adding at the end the following:
       ``(4) The Secretary of Defense shall consult with the other 
     administering Secretaries in the administration of this 
     subsection.''.
       (C) Subsection (f) of such section is amended by adding at 
     the end the following:
       ``(3) The terms `uniformed services' and `administering 
     Secretaries' have the meanings given those terms in section 
     1072 of title 10, United States Code.''.
       (3) Section 706(b) of the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 684) 
     is amended by striking ``Armed Forces'' and inserting 
     ``uniformed services (as defined in section 1072(1) of title 
     10, United States Code)''.
       (b) Coverage of Immediate Family.--(1) Section 1079 of 
     title 10, United States Code, is amended by adding at the end 
     the following:
       ``(p)(1) Subject to such exceptions as the Secretary of 
     Defense considers necessary, coverage for medical care under 
     this section for the dependents referred to in subsection (a) 
     of a member of the uniformed services referred to in section 
     1074(c)(3) of this title who are residing with the member, 
     and standards with respect to timely access to such care, 
     shall be comparable to coverage for medical care and 
     standards for timely access to such care under the managed 
     care option of the TRICARE program known as TRICARE Prime.
       ``(2) The Secretary of Defense shall enter into 
     arrangements with contractors under the TRICARE program or 
     with other appropriate contractors for the timely and 
     efficient processing of claims under this subsection.
       ``(3) The Secretary of Defense shall consult with the other 
     administering Secretaries in the administration of this 
     subsection.''.
       (2) Section 731(b) of the National Defense Authorization 
     Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1811; 
     10 U.S.C. 1074 note) is amended--
       (A) in paragraph (1), by adding at the end the following: 
     ``A dependent of the member, as described in subparagraph 
     (A), (D), or (I) of section 1072(2) of title 10, United 
     States Code, who is residing with the member shall have the 
     same entitlement to care and to waiver of charges as the 
     member.''; and
       (B) in paragraph (2), by inserting ``or dependent of the 
     member, as the case may be,'' after ``(2) A member''.
       (c) Effective Dates; Applicability.--(1) The amendments 
     made by subsections (a)(1) and (b)(1) shall take effect on 
     October 1, 2001.
       (2) The amendments made by subsection (a)(2), with respect 
     to members of the uniformed services, and the amendments made 
     by subsection (b)(2), with respect to dependents of members, 
     shall take effect on the date of the enactment of this Act 
     and shall expire with respect to a member or the dependents 
     of a member, respectively, on the later of the following:
       (A) The date that is one year after the date of the 
     enactment of this Act.
       (B) The date on which the policies required by the 
     amendments made by subsection (a)(1) or (b)(1) are 
     implemented with respect to the coverage of medical care for 
     and provision of such care to the member or dependents, 
     respectively.
       (3) Section 731(b)(3) of Public Law 105-85 does not apply 
     to a member of the Coast Guard, the National Oceanic and 
     Atmospheric Administration, or the Commissioned Corps of the 
     Public Health Service, or to a dependent of a member of a 
     uniformed service.

     SEC. 723. MODERNIZATION OF TRICARE BUSINESS PRACTICES AND 
                   INCREASE OF USE OF MILITARY TREATMENT 
                   FACILITIES.

       (a) Requirement To Implement Internet-Based System.--Not 
     later than October 1, 2001, the Secretary of Defense shall 
     implement a system to simplify and make accessible through 
     the use of the Internet, through commercially available 
     systems and products, critical administrative processes 
     within the military health care system and the TRICARE 
     program. The purposes of the system shall be to enhance 
     efficiency, improve service, and achieve commercially 
     recognized standards of performance.
       (b) Elements of System.--The system required by subsection 
     (a)--
       (1) shall comply with patient confidentiality and security 
     requirements, and incorporate data requirements, that are 
     currently widely used by insurers under medicare and 
     commercial insurers;
       (2) shall be designed to achieve improvements with respect 
     to--
       (A) the availability and scheduling of appointments;
       (B) the filing, processing, and payment of claims;
       (C) marketing and information initiatives;
       (D) the continuation of enrollments without expiration;
       (E) the portability of enrollments nationwide;
       (F) education of beneficiaries regarding the military 
     health care system and the TRICARE program; and
       (G) education of health care providers regarding such 
     system and program; and
       (3) may be implemented through a contractor under TRICARE 
     Prime.
       (c) Areas of Implementation.--The Secretary shall implement 
     the system required by subsection (a) in at least one region 
     under the TRICARE program.
       (d) Plan for Improved Portability of Benefits.--Not later 
     than March 15, 2001, the Secretary of Defense shall submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives a plan to provide portability and 
     reciprocity of benefits for all enrollees under the TRICARE 
     program throughout all TRICARE regions.
       (e) Increase of Use of Military Medical Treatment 
     Facilities.--The Secretary shall initiate a program to 
     maximize the use of military medical treatment facilities by 
     improving the efficiency of health care operations in such 
     facilities.
       (f) Definition.--In this section the term ``TRICARE 
     program'' has the meaning given such term in section 1072 of 
     title 10, United States Code.

     SEC. 724. EXTENSION OF TRICARE MANAGED CARE SUPPORT 
                   CONTRACTS.

       (a) Authority.--Notwithstanding any other provision of law 
     and subject to subsection (b), any TRICARE managed care 
     support contract in effect, or in the final stages of 
     acquisition, on September 30, 1999, may be extended for four 
     years.

[[Page 21409]]

       (b) Conditions.--Any extension of a contract under 
     subsection (a)--
       (1) may be made only if the Secretary of Defense determines 
     that it is in the best interest of the United States to do 
     so; and
       (2) shall be based on the price in the final best and final 
     offer for the last year of the existing contract as adjusted 
     for inflation and other factors mutually agreed to by the 
     contractor and the Federal Government.

     SEC. 725. REPORT ON PROTECTIONS AGAINST HEALTH CARE PROVIDERS 
                   SEEKING DIRECT REIMBURSEMENT FROM MEMBERS OF 
                   THE UNIFORMED SERVICES.

       Not later than January 31, 2001, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report recommending 
     practices to discourage or prohibit health care providers 
     under the TRICARE program, and individuals or entities 
     working on behalf of such providers, from seeking direct 
     reimbursement from members of the uniformed services or their 
     dependents for health care received by such members or 
     dependents.

     SEC. 726. VOLUNTARY TERMINATION OF ENROLLMENT IN TRICARE 
                   RETIREE DENTAL PROGRAM.

       (a) Procedures.--Section 1076c of title 10, United States 
     Code, is amended--
       (1) by redesignating subsection (i) as subsection (j); and
       (2) by inserting after subsection (h) the following new 
     subsection (i):
       ``(i) Voluntary Disenrollment.--(1) With respect to 
     enrollment in the dental insurance plan established under 
     subsection (a), the Secretary of Defense--
       ``(A) shall allow for a period of up to 30 days at the 
     beginning of the prescribed minimum enrollment period during 
     which an enrollee may disenroll; and
       ``(B) shall provide for limited circumstances under which 
     disenrollment shall be permitted during the prescribed 
     enrollment period, without jeopardizing the fiscal integrity 
     of the dental program.
       ``(2) The circumstances described in paragraph (1)(B) shall 
     include--
       ``(A) a case in which a retired member, surviving spouse, 
     or dependent of a retired member who is also a Federal 
     employee is assigned to a location outside the jurisdiction 
     of the dental insurance plan established under subsection (a) 
     that prevents utilization of dental benefits under the plan;
       ``(B) a case in which a retired member, surviving spouse, 
     or dependent of a retired member is prevented by a serious 
     medical condition from being able to obtain benefits under 
     the plan;
       ``(C) a case in which severe financial hardship would 
     result; and
       ``(D) any other circumstances which the Secretary considers 
     appropriate.
       ``(3) The Secretary shall establish procedures for timely 
     decisions on requests for disenrollment under this section 
     and for appeal to the TRICARE Management Activity of adverse 
     decisions.''
       (b) Clarifying Amendment.--The heading for subsection (f) 
     is amended by striking ``Termination'' and inserting 
     ``Required Terminations''.

     SEC. 727. CLAIMS PROCESSING IMPROVEMENTS.

       Beginning on the date of the enactment of this Act, the 
     Secretary of Defense shall, to the maximum extent 
     practicable, take all necessary actions to implement the 
     following improvements with respect to processing of claims 
     under the TRICARE program:
       (1) Use of the TRICARE encounter data information system 
     rather than the health care service record in maintaining 
     information on covered beneficiaries under chapter 55 of 
     title 10, United States Code.
       (2) Elimination of all delays in payment of claims to 
     health care providers that may result from the development of 
     the health care service record or TRICARE encounter data 
     information.
       (3) Requiring all health care providers under the TRICARE 
     program that the Secretary determines are high-volume 
     providers to submit claims electronically.
       (4) Processing 50 percent of all claims by health care 
     providers and institutions under the TRICARE program by 
     electronic means.
       (5) Authorizing managed care support contractors under the 
     TRICARE program to require providers to access information on 
     the status of claims through the use of telephone automated 
     voice response units.

     SEC. 728. PRIOR AUTHORIZATIONS FOR CERTAIN REFERRALS AND 
                   NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.

       (a) Prohibition Regarding Prior Authorization for 
     Referrals.--(1) Chapter 55 of title 10, United States Code, 
     is amended by inserting after section 1095e the following new 
     section:

     ``Sec. 1095f. TRICARE program: referrals for specialty health 
       care

       ``The Secretary of Defense shall ensure that no contract 
     for managed care support under the TRICARE program includes 
     any requirement that a managed care support contractor 
     require a primary care or specialty care provider to obtain 
     prior authorization before referring a patient to a specialty 
     care provider that is part of the network of health care 
     providers or institutions of the contractor.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1095e the following new item:

``1095f. TRICARE program: referrals for specialty health care.''.
       (b) Report.--Not later than February 1, 2001, the 
     Comptroller General shall submit to Congress a report on the 
     financial and management implications of eliminating the 
     requirement to obtain nonavailability-of-health-care 
     statements under section 1080 of title 10, United States 
     Code.
       (c) Effective Date.--Section 1095f of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to a TRICARE managed care support contract entered 
     into by the Department of Defense after the date of the 
     enactment of this Act.
                   Subtitle D--Demonstration Projects

     SEC. 731. DEMONSTRATION PROJECT FOR EXPANDED ACCESS TO MENTAL 
                   HEALTH COUNSELORS.

       (a) Requirement To Conduct Demonstration Project.--The 
     Secretary of Defense shall conduct a demonstration project 
     under which licensed and certified professional mental health 
     counselors who meet eligibility requirements for 
     participation as providers under the Civilian Health and 
     Medical Program of the Uniformed Services (hereafter in this 
     section referred to as ``CHAMPUS'') or the TRICARE program 
     may provide services to covered beneficiaries under chapter 
     55 of title 10, United States Code, without referral by 
     physicians or adherence to supervision requirements.
       (b) Duration and Location of Project.--The Secretary shall 
     conduct the demonstration project required by subsection 
     (a)--
       (1) during the 2-year period beginning October 1, 2001; and
       (2) in one established TRICARE region.
       (c) Regulations.--The Secretary shall prescribe regulations 
     regarding participation in the demonstration project required 
     by subsection (a).
       (d) Plan for Project.--Not later than March 31, 2001, the 
     Secretary shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a plan to carry 
     out the demonstration project. The plan shall include, but 
     not be limited to, a description of the following:
       (1) The TRICARE region in which the project will be 
     conducted.
       (2) The estimated funds required to carry out the 
     demonstration project.
       (3) The criteria for determining which professional mental 
     health counselors will be authorized to participate under the 
     demonstration project.
       (4) The plan of action, including critical milestone dates, 
     for carrying out the demonstration project.
       (e) Report.--Not later than February 1, 2003, the Secretary 
     shall submit to Congress a report on the demonstration 
     project carried out under this section. The report shall 
     include the following:
       (1) A description of the extent to which expenditures for 
     reimbursement of licensed or certified professional mental 
     health counselors change as a result of allowing the 
     independent practice of such counselors.
       (2) Data on utilization and reimbursement regarding non-
     physician mental health professionals other than licensed or 
     certified professional mental health counselors under CHAMPUS 
     and the TRICARE program.
       (3) Data on utilization and reimbursement regarding 
     physicians who make referrals to, and supervise, mental 
     health counselors.
       (4) A description of the administrative costs incurred as a 
     result of the requirement for documentation of referral to 
     mental health counselors and supervision activities for such 
     counselors.
       (5) For each of the categories described in paragraphs (1) 
     through (4), a comparison of data for a 1-year period for the 
     area in which the demonstration project is being implemented 
     with corresponding data for a similar area in which the 
     demonstration project is not being implemented.
       (6) A description of the ways in which allowing for 
     independent reimbursement of licensed or certified 
     professional mental health counselors affects the 
     confidentiality of mental health and substance abuse services 
     for covered beneficiaries under CHAMPUS and the TRICARE 
     program.
       (7) A description of the effect, if any, of changing 
     reimbursement policies on the health and treatment of covered 
     beneficiaries under CHAMPUS and the TRICARE program, 
     including a comparison of the treatment outcomes of covered 
     beneficiaries who receive mental health services from 
     licensed or certified professional mental health counselors 
     acting under physician referral and supervision, other non-
     physician mental health providers recognized under CHAMPUS 
     and the TRICARE program, and physicians, with treatment 
     outcomes under the demonstration project allowing independent 
     practice of professional counselors on the same basis as 
     other non-physician mental health providers.
       (8) The effect of policies of the Department of Defense on 
     the willingness of licensed or certified professional mental 
     health counselors to participate as health care providers in 
     CHAMPUS and the TRICARE program.
       (9) Any policy requests or recommendations regarding mental 
     health counselors made by health care plans and managed care 
     organizations participating in CHAMPUS or the TRICARE 
     program.

     SEC. 732. TELERADIOLOGY DEMONSTRATION PROJECT.

       (a) Authority To Conduct Project.--(1) The Secretary of 
     Defense may conduct a demonstration project for the purposes 
     of increasing

[[Page 21410]]

     efficiency of operations with respect to teleradiology at 
     military medical treatment facilities, supporting remote 
     clinics, and increasing coordination with respect to 
     teleradiology between such facilities and clinics. Under the 
     project, a military medical treatment facility and each 
     clinic supported by such facility shall be linked by a 
     digital radiology network through which digital radiology X-
     rays may be sent electronically from clinics to the military 
     medical treatment facility.
       (2) The demonstration project may be conducted at several 
     multispecialty tertiary-care military medical treatment 
     facilities affiliated with a university medical school. One 
     of such facilities shall be supported by at least 5 
     geographically dispersed remote clinics of the Departments of 
     the Army, Navy, and Air Force, and clinics of the Department 
     of Veterans Affairs and the Coast Guard. Another of such 
     facilities shall be in an underserved rural geographic region 
     served under established telemedicine contracts between the 
     Department of Defense, the Department of Veterans Affairs, 
     and a local university.
       (b) Duration of Project.--The Secretary shall conduct the 
     project during the 2-year period beginning on the date of the 
     enactment of this Act.

     SEC. 733. HEALTH CARE MANAGEMENT DEMONSTRATION PROGRAM.

       (a) Establishment.--The Secretary of Defense shall carry 
     out a demonstration program on health care management to 
     explore opportunities for improving the planning, 
     programming, budgeting systems, and management of the 
     Department of Defense health care system.
       (b) Test Models.--Under the demonstration program, the 
     Secretary shall test the use of the following planning and 
     management models:
       (1) A health care simulation model for studying alternative 
     delivery policies, processes, organizations, and 
     technologies.
       (2) A health care simulation model for studying long term 
     disease management.
       (c) Demonstration Sites.--The Secretary shall test each 
     model separately at one or more sites.
       (d) Period for Program.--The demonstration program shall 
     begin not later than 180 days after the date of the enactment 
     of this Act and shall terminate on December 31, 2001.
       (e) Reports.--The Secretary of Defense shall submit a 
     report on the demonstration program to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     not later than March 15, 2002. The report shall include the 
     Secretary's assessment of the value of incorporating the use 
     of the tested planning and management models throughout the 
     planning, programming, budgeting systems, and management of 
     the Department of Defense health care system.
       (f) Funding.--Of the amount authorized to be appropriated 
     under section 301(22), $6,000,000 shall be available for the 
     demonstration program under this section.
   Subtitle E--Joint Initiatives With Department of Veterans Affairs

     SEC. 741. VA-DOD SHARING AGREEMENTS FOR HEALTH SERVICES.

       (a) Primacy of Sharing Agreements.--The Secretary of 
     Defense shall--
       (1) give full force and effect to any agreement into which 
     the Secretary or the Secretary of a military department 
     entered under section 8111 of title 38, United States Code, 
     or under section 1535 of title 31, United States Code, which 
     was in effect on September 30, 1999; and
       (2) ensure that the Secretary of the military department 
     concerned directly reimburses the Secretary of Veterans 
     Affairs for any services or resources provided under such 
     agreement in accordance with the terms of such agreement, 
     including terms providing for reimbursement from funds 
     available for that military department.
       (b) Modification or Termination.--Any agreement described 
     in subsection (a) shall remain in effect in accordance with 
     such subsection unless, during the 12-month period following 
     the date of the enactment of this Act, such agreement is 
     modified or terminated in accordance with the terms of such 
     agreement.

     SEC. 742. PROCESSES FOR PATIENT SAFETY IN MILITARY AND 
                   VETERANS HEALTH CARE SYSTEMS.

       (a) Error Tracking Process.--The Secretary of Defense shall 
     implement a centralized process for reporting, compilation, 
     and analysis of errors in the provision of health care under 
     the defense health program that endanger patients beyond the 
     normal risks associated with the care and treatment of such 
     patients. To the extent practicable, that process shall 
     emulate the system established by the Secretary of Veterans 
     Affairs for reporting, compilation, and analysis of errors in 
     the provision of health care under the Department of Veterans 
     Affairs health care system that endanger patients beyond such 
     risks.
       (b) Sharing of Information.--The Secretary of Defense and 
     the Secretary of Veterans Affairs--
       (1) shall share information regarding the designs of 
     systems or protocols established to reduce errors in the 
     provision of health care described in subsection (a); and
       (2) shall develop such protocols as the Secretaries 
     consider necessary for the establishment and administration 
     of effective processes for the reporting, compilation, and 
     analysis of such errors.

     SEC. 743. COOPERATION IN DEVELOPING PHARMACEUTICAL 
                   IDENTIFICATION TECHNOLOGY.

       The Secretary of Defense and the Secretary of Veterans 
     Affairs shall cooperate in developing systems for the use of 
     bar codes for the identification of pharmaceuticals in the 
     health care programs of the Department of Defense and the 
     Department of Veterans Affairs. In any case in which a common 
     pharmaceutical is used in such programs, the bar codes for 
     those pharmaceuticals shall, to the maximum extent 
     practicable, be identical.
                       Subtitle F--Other Matters

     SEC. 751. MANAGEMENT OF ANTHRAX VACCINE IMMUNIZATION PROGRAM.

       (a) System and Procedures for Tracking Separations.--(1) 
     Chapter 59 of title 10, United States Code, is amended by 
     adding at the end the following new section:

     ``Sec. 1178. System and procedures for tracking separations 
       resulting from refusal to participate in anthrax vaccine 
       immunization program

       ``(a) Requirement To Establish System.--The Secretary of 
     each military department shall establish a system for 
     tracking, recording, and reporting separations of members of 
     the armed forces under the Secretary's jurisdiction that 
     result from procedures initiated as a result of a refusal to 
     participate in the anthrax vaccine immunization program.
       ``(b) Report.--The Secretary of Defense shall consolidate 
     the information recorded under the system described in 
     subsection (a) and shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives not 
     later than April 1 of each year a report on such information. 
     Each such report shall include a description of--
       ``(1) the number of members separated, categorized by 
     military department, grade, and active-duty or reserve 
     status; and
       ``(2) any other information determined appropriate by the 
     Secretary.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1178. System and procedures for tracking separations resulting from 
              refusal to participate in anthrax vaccine immunization 
              program.''.
       (b) Procedures for Exemptions; Monitoring Adverse 
     Reactions.--(1) Chapter 55 of such title is amended by adding 
     at the end the following new section:

     ``Sec. 1110. Anthrax vaccine immunization program; procedures 
       for exemptions and monitoring reactions

       ``(a) Procedures for Medical and Administrative 
     Exemptions.--(1) The Secretary of Defense shall establish 
     uniform procedures under which members of the armed forces 
     may be exempted from participating in the anthrax vaccine 
     immunization program for either administrative or medical 
     reasons.
       ``(2) The Secretaries of the military departments shall 
     provide for notification of all members of the armed forces 
     of the procedures established pursuant to paragraph (1).
       ``(b) System for Monitoring Adverse Reactions.--(1) The 
     Secretary shall establish a system for monitoring adverse 
     reactions of members of the armed forces to the anthrax 
     vaccine. That system shall include the following:
       ``(A) Independent review of Vaccine Adverse Event Reporting 
     System reports.
       ``(B) Periodic surveys of personnel to whom the vaccine is 
     administered.
       ``(C) A continuing longitudinal study of a pre-identified 
     group of members of the armed forces (including men and women 
     and members from all services).
       ``(D) Active surveillance of a sample of members to whom 
     the anthrax vaccine has been administered that is sufficient 
     to identify, at the earliest opportunity, any patterns of 
     adverse reactions, the discovery of which might be delayed by 
     reliance solely on the Vaccine Adverse Event Reporting 
     System.
       ``(2) The Secretary may extend or expand any ongoing or 
     planned study or analysis of trends in adverse reactions of 
     members of the armed forces to the anthrax vaccine in order 
     to meet any of the requirements in paragraph (1).
       ``(3) The Secretary shall establish guidelines under which 
     members of the armed forces who are determined by an 
     independent expert panel to be experiencing unexplained 
     adverse reactions may obtain access to a Department of 
     Defense Center of Excellence treatment facility for expedited 
     treatment and follow up.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1110. Anthrax vaccine immunization program; procedures for exemptions 
              and monitoring reactions.''.
       (c) Emergency Essential Employees.--(1) Chapter 81 of such 
     title is amended by inserting after section 1580 the 
     following new section:

     ``Sec. 1580a. Emergency essential employees: notification of 
       required participation in anthrax vaccine immunization 
       program

       ``The Secretary of Defense shall--
       ``(1) prescribe regulations for the purpose of ensuring 
     that any civilian employee of the Department of Defense who 
     is determined to be an emergency essential employee and who 
     is required to participate in the anthrax vaccine 
     immunization program is notified of the requirement to 
     participate in the program and the consequences of a decision 
     not to participate; and
       ``(2) ensure that any individual who is being considered 
     for a position as such an employee is notified of the 
     obligation to participate in the program before being offered 
     employment in such position.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1580 the following new item:


[[Page 21411]]


``1580a. Emergency essential employees: notification of required 
              participation in anthrax vaccine immunization program.''.
       (d) Comptroller General Report.--(1) Not later than April 
     1, 2002, the Comptroller General shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report on the effect of the Department of 
     Defense anthrax vaccine immunization program on the 
     recruitment and retention of active duty and reserve military 
     personnel and civilian personnel of the Department of 
     Defense. The study shall cover the period beginning on the 
     date of the enactment of this Act and ending on December 31, 
     2001.
       (2) The Comptroller General shall include in the report 
     required by paragraph (1) a description of any personnel 
     actions (including transfer, termination, or reassignment of 
     any personnel) taken as a result of the refusal of any 
     civilian employee of the Department of Defense to participate 
     in the anthrax vaccine immunization program.
       (e) Deadlines for Establishment and Implementation.--The 
     Secretary of Defense shall--
       (1) not later than April 1, 2001, establish the uniform 
     procedures for exemption from participation in the anthrax 
     vaccine immunization program of the Department of Defense 
     required under subsection (a) of section 1110 of title 10, 
     United States Code (as added by subsection (b));
       (2) not later than July 1, 2001, establish the system for 
     monitoring adverse reactions of members of the Armed Forces 
     to the anthrax vaccine required under subsection (b)(1) of 
     such section;
       (3) not later than April 1, 2001, establish the guidelines 
     under which members of the Armed Forces may obtain access to 
     a Department of Defense Center of Excellence treatment 
     facility for expedited treatment and follow up required under 
     subsection (b)(3) of such section; and
       (4) not later than July 1, 2001, prescribe the regulations 
     regarding emergency essential employees of the Department of 
     Defense required under subsection (a) of section 1580a of 
     such title (as added by subsection(c)).

     SEC. 752. ELIMINATION OF COPAYMENTS FOR IMMEDIATE FAMILY.

       (a) No Copayment for Immediate Family.--Section 1097a 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) No Copayment for Immediate Family.--No copayment 
     shall be charged a member for care provided under TRICARE 
     Prime to a dependent of a member of the uniformed services 
     described in subparagraph (A), (D), or (I) of section 1072 of 
     this title.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect 180 days after the date of the enactment of 
     this Act, and shall apply with respect to care provided on or 
     after that date.

     SEC. 753. MEDICAL INFORMATICS.

       (a) Additional Matters for Annual Report on Medical 
     Informatics Advisory Committee.--Section 723(d)(5) of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 697; 10 U.S.C. 1071 note) is 
     amended to read as follows:
       ``(5) The Secretary of Defense shall submit to Congress an 
     annual report on medical informatics. The report shall 
     include a discussion of the following matters:
       ``(A) The activities of the Committee.
       ``(B) The coordination of development, deployment, and 
     maintenance of health care informatics systems within the 
     Federal Government, and between the Federal Government and 
     the private sector.
       ``(C) The progress or growth occurring in medical 
     informatics.
       ``(D) How the TRICARE program and the Department of 
     Veterans Affairs health care system can use the advancement 
     of knowledge in medical informatics to raise the standards of 
     health care and treatment and the expectations for improving 
     health care and treatment.''.
       (b) Limitation on Fiscal Year 2001 Funding for 
     Pharmaceuticals-Related Medical Informatics.--Of the funds 
     authorized to be appropriated under section 301(22), any 
     amounts used for pharmaceuticals-related informatics may be 
     used only for the following:
       (1) Commencement of the implementation of a new 
     computerized medical record, including an automated entry 
     order system for pharmaceuticals and an infrastructure 
     network that is compliant with the provisions enacted in the 
     Health Insurance Portability and Accountability Act of 1996 
     (Public Law 104-191; 110 Stat. 1936), to make all relevant 
     clinical information on beneficiaries under the Defense 
     Health Program available when needed.
       (2) An integrated pharmacy system under the Defense Health 
     Program that creates a single profile for all pharmaceuticals 
     for such beneficiaries prescribed at military medical 
     treatment facilities or private pharmacies that are part of 
     the Department of Defense pharmacy network.

     SEC. 754. PATIENT CARE REPORTING AND MANAGEMENT SYSTEM.

       (a) Establishment.--The Secretary of Defense shall 
     establish a patient care error reporting and management 
     system.
       (b) Purposes of System.--The purposes of the system are as 
     follows:
       (1) To study the occurrences of errors in the patient care 
     provided under chapter 55 of title 10, United States Code.
       (2) To identify the systemic factors that are associated 
     with such occurrences.
       (3) To provide for action to be taken to correct the 
     identified systemic factors.
       (c) Requirements for System.--The patient care error 
     reporting and management system shall include the following:
       (1) A hospital-level patient safety center, within the 
     quality assurance department of each health care organization 
     of the Department of Defense, to collect, assess, and report 
     on the nature and frequency of errors related to patient 
     care.
       (2) For each health care organization of the Department of 
     Defense and for the entire Defense health program, patient 
     safety standards that are necessary for the development of a 
     full understanding of patient safety issues in each such 
     organization and the entire program, including the nature and 
     types of errors and the systemic causes of the errors.
       (3) Establishment of a Department of Defense Patient Safety 
     Center within the Armed Forces Institute of Pathology, which 
     shall have the following missions:
       (A) To analyze information on patient care errors that is 
     submitted to the Center by each military health care 
     organization.
       (B) To develop action plans for addressing patterns of 
     patient care errors.
       (C) To execute those action plans to mitigate and control 
     errors in patient care with a goal of ensuring that the 
     health care organizations of the Department of Defense 
     provide highly reliable patient care with virtually no error.
       (D) To provide, through the Assistant Secretary of Defense 
     for Health Affairs, to the Agency for Healthcare Research and 
     Quality of the Department of Health and Human Services any 
     reports that the Assistant Secretary determines appropriate.
       (E) To review and integrate processes for reducing errors 
     associated with patient care and for enhancing patient 
     safety.
       (F) To contract with a qualified and objective external 
     organization to manage the national patient safety database 
     of the Department of Defense.
       (d) MedTeams Program.--The Secretary shall expand the 
     health care team coordination program to integrate that 
     program into all Department of Defense health care 
     operations. In carrying out this subsection, the Secretary 
     shall take the following actions:
       (1) Establish not less than two Centers of Excellence for 
     the development, validation, proliferation, and sustainment 
     of the health care team coordination program, one of which 
     shall support all fixed military health care organizations, 
     the other of which shall support all combat casualty care 
     organizations.
       (2) Deploy the program to all fixed and combat casualty 
     care organizations of each of the Armed Forces, at the rate 
     of not less than 10 organizations in each fiscal year.
       (3) Expand the scope of the health care team coordination 
     program from a focus on emergency department care to a 
     coverage that includes care in all major medical specialties, 
     at the rate of not less than one specialty in each fiscal 
     year.
       (4) Continue research and development investments to 
     improve communication, coordination, and team work in the 
     provision of health care.
       (e) Consultation.--The Secretary shall consult with the 
     other administering Secretaries (as defined in section 
     1072(3) of title 10, United States Code) in carrying out this 
     section.

     SEC. 755. AUGMENTATION OF ARMY MEDICAL DEPARTMENT BY 
                   DETAILING RESERVE OFFICERS OF THE PUBLIC HEALTH 
                   SERVICE.

       (a) Authority.--The Secretary of the Army and the Secretary 
     of Health and Human Services may jointly conduct a program to 
     augment the Army Medical Department by exercising any 
     authorities provided to those officials in law for the 
     detailing of reserve commissioned officers of the Public 
     Health Service not in an active status to the Army Medical 
     Department for that purpose.
       (b) Agreement.--The Secretary of the Army and the Secretary 
     of Health and Human Services shall enter into an agreement 
     governing any program conducted under subsection (a).
       (c) Assessment.--(1) The Secretary of the Army shall review 
     the laws providing the authorities described in subsection 
     (a) and assess the adequacy of those laws for authorizing--
       (A) the Secretary of Health and Human Services to detail 
     reserve commissioned officers of the Public Health Service 
     not in an active status to the Army Medical Department to 
     augment that department; and
       (B) the Secretary of the Army to accept the detail of such 
     officers for that purpose.
       (2) The Secretary shall complete the review and assessment 
     under paragraph (1) not later than 90 days after the date of 
     the enactment of this Act.
       (d) Report to Congress.--Not later than March 1, 2001, the 
     Secretary of the Army shall submit a report on the results of 
     the review and assessment under subsection (c) to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives. The report shall include the following:
       (1) The findings resulting from the review and assessment.
       (2) Any proposal for legislation that the Secretary 
     recommends to strengthen the authority of the Secretary of 
     Health and Human Services and the authority of the Secretary 
     of the Army to take the actions described in subparagraphs 
     (A) and (B), respectively, of subsection (c)(1).

[[Page 21412]]

       (e) Consultation Requirement.--The Secretary of the Army 
     shall consult with the Secretary of Health and Human Services 
     in carrying out the review and assessment under subsection 
     (c) and in preparing the report (including making 
     recommendations) under subsection (d).

     SEC. 756. PRIVACY OF DEPARTMENT OF DEFENSE MEDICAL RECORDS.

       (a) Comprehensive Plan.--Not later than April 1, 2001, the 
     Secretary of Defense shall submit to Congress a comprehensive 
     plan to improve privacy protections for medical records 
     maintained by the Department of Defense. Such plan shall be 
     consistent with the regulations promulgated under section 
     264(c) of the Health Insurance Portability and Accountability 
     Act of 1996 (Public Law 104-191; 42 U.S.C. 1320d-2 note).
       (b) Interim Regulations.--(1) Notwithstanding any other 
     provision of law, the Secretary shall prescribe interim 
     regulations, pending full implementation of the comprehensive 
     plan described in subsection (a), to improve privacy 
     protections for medical records maintained by the Department 
     of Defense.
       (2) The regulations prescribed under paragraph (1) shall 
     provide maximum protections for privacy consistent with such 
     actions that the Secretary determines are necessary for 
     purposes of national security, law enforcement, patient 
     treatment, public health reporting, accreditation and 
     licensure review activities, external peer review and other 
     quality assurance program activities, payment for health care 
     services, fraud and abuse prevention, judicial and 
     administrative proceedings, research consistent with 
     regulations on Governmentwide protection of human subjects, 
     Department of Veterans Affairs benefit programs, and any 
     other purposes identified by the Secretary for the 
     responsible management of the military health care system.

     SEC. 757. AUTHORITY TO ESTABLISH SPECIAL LOCALITY-BASED 
                   REIMBURSEMENT RATES; REPORTS.

       (a) In General.--Section 1079(h) of title 10, United States 
     Code, is amended by adding at the end the following new 
     paragraph:
       ``(5) To assure access to care for all covered 
     beneficiaries, the Secretary of Defense, in consultation with 
     the other administering Secretaries, shall designate specific 
     rates for reimbursement for services in certain localities if 
     the Secretary determines that without payment of such rates 
     access to health care services would be severely impaired. 
     Such a determination shall be based on consideration of the 
     number of providers in a locality who provide the services, 
     the number of such providers who are CHAMPUS participating 
     providers, the number of covered beneficiaries under CHAMPUS 
     in the locality, the availability of military providers in 
     the location or a nearby location, and any other factors 
     determined to be relevant by the Secretary.''.
       (b) Reports.--(1) Not later than March 31, 2001, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives and 
     the General Accounting Office a report on actions taken to 
     carry out section 1079(h)(5) of title 10, United States Code 
     (as added by subsection (a)) and section 1097b of such title.
       (2) Not later than May 1, 2001, the Comptroller General 
     shall submit to Congress a report analyzing the utility of--
       (A) increased reimbursement authorities with respect to 
     ensuring the availability of network providers and nonnetwork 
     providers under the TRICARE program to covered beneficiaries 
     under chapter 55 of such title; and
       (B) requiring a reimbursement limitation of 70 percent of 
     usual and customary rates rather than 115 percent of maximum 
     allowable charges under the Civilian Health and Medical 
     Program of the Uniformed Services.
       (3)(A) Not later than 180 days after the date of the 
     enactment of this Act, 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 to which 
     physicians are choosing not to participate in contracts for 
     the furnishing of health care in rural States under chapter 
     55 of title 10, United States Code. The report shall include 
     the following:
       (i) The number of physicians in rural States who are 
     withdrawing from participation, or otherwise refusing to 
     participate, in the health care contracts.
       (ii) The reasons for the withdrawals and refusals.
       (iii) The actions that the Secretary of Defense can take to 
     encourage more physicians to participate in the health care 
     contracts.
       (iv) Any recommendations for legislation that the Secretary 
     considers necessary to encourage more physicians to 
     participate in the health care contracts.
       (B) In this paragraph, the term ``rural State'' means a 
     State that has, on average, as determined by the Bureau of 
     the Census in the latest decennial census--
       (i) fewer than 76 residents per square mile; and
       (ii) fewer than 211 actively practicing physicians (not 
     counting physicians employed by the United States) per 
     100,000 residents.

     SEC. 758. REIMBURSEMENT FOR CERTAIN TRAVEL EXPENSES.

       (a) In General.--Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1074h (as added 
     by section 706) the following new section:

     ``Sec. 1074i. Reimbursement for certain travel expenses

       ``In any case in which a covered beneficiary is referred by 
     a primary care physician to a specialty care provider who 
     provides services more than 100 miles from the location in 
     which the primary care provider provides services to the 
     covered beneficiary, the Secretary shall provide 
     reimbursement for reasonable travel expenses for the covered 
     beneficiary.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1074g the following new item:

``1074i. Reimbursement for certain travel expenses.''.

     SEC. 759. REDUCTION OF CAP ON PAYMENTS.

       Section 1086(b)(4) of title 10, United States Code, is 
     amended by striking ``$7,500'' and inserting ``$3,000''.

     SEC. 760. TRAINING IN HEALTH CARE MANAGEMENT AND 
                   ADMINISTRATION.

       (a) Expansion of Program.--Section 715(a) of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat 375; 10 U.S.C. 1073 note) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``Not later than six months after the date of the enactment 
     of this Act, the'' and inserting ``The'';
       (2) in paragraph (1)--
       (A) by inserting ``, deputy commander, and managed care 
     coordinator'' after ``commander''; and
       (B) by inserting ``, and any other person,'' after 
     ``Defense''; and
       (3) by amending subsection (b) to read as follows:
       ``(b) Limitation on Assignment Until Completion of 
     Training.--No person may be assigned as the commander, deputy 
     commander, or managed care coordinator of a military medical 
     treatment facility or as a TRICARE lead agent or senior 
     member of the staff of a TRICARE lead agent office until the 
     Secretary of the military department concerned submits a 
     certification to the Secretary of Defense that such person 
     has completed the training described in subsection (a).''.
       (b) Report Requirement.--(1) Not later than 18 months after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report on progress in 
     meeting the requirements of section 715 of such Act (as 
     amended by subsection (a)) by implementing a professional 
     educational program to provide appropriate training in health 
     care management and administration.
       (2) The report required by paragraph (1) shall include the 
     following:
       (A) A survey of professional civilian certifications and 
     credentials which demonstrate achievement of the requirements 
     of such section.
       (B) A description of the continuing education activities 
     required to obtain initial certification and periodic 
     required recertification.
       (C) A description of the prominence of such credentials or 
     certifications among senior civilian health care executives.
       (c) Applicability.--The amendments made by subsection (a) 
     to section 715 of such Act--
       (1) shall apply to a deputy commander, a managed care 
     coordinator of a military medical treatment facility, or a 
     lead agent for coordinating the delivery of health care by 
     military and civilian providers under the TRICARE program, 
     who is assigned to such position on or after the date that is 
     one year after the date of the enactment of this Act; and
       (2) may apply, in the discretion of the Secretary of 
     Defense, to a deputy commander, a managed care coordinator of 
     such a facility, or a lead agent for coordinating the 
     delivery of such health care, who is assigned to such 
     position before the date that is one year after the date of 
     the enactment of this Act.

     SEC. 761. STUDIES ON FEASIBILITY OF SHARING BIOMEDICAL 
                   RESEARCH FACILITY.

       (a) Studies Required.--(1) The Secretary of the Army shall 
     conduct a study on the feasibility of the Tripler Army 
     Medical Center, Hawaii, sharing a biomedical research 
     facility with the Department of Veterans Affairs and the 
     School of Medicine at the University of Hawaii for the 
     purpose of making more efficient use of funding for 
     biomedical research.
       (2) The Secretary of the Air Force shall conduct a study on 
     the feasibility of the Little Rock Medical Facility, 
     Arkansas, sharing a biomedical research facility with the 
     Department of Veterans Affairs and the School of Medicine at 
     the University of Arkansas for the purpose of making more 
     efficient use of funding for biomedical research.
       (3) The biomedical research facilities described in 
     paragraphs (1) and (2) would include a clinical research 
     center and facilities for educational, academic, and 
     laboratory research.
       (b) Reports.--Not later than March 1, 2001--
       (1) the Secretary of the Army shall submit to the 
     Committees on Armed Services of the House of Representatives 
     and the Senate a report on the study conducted under 
     subsection (a)(1); and
       (2) the Secretary of the Air Force shall submit to such 
     committees a report on the study conducted under subsection 
     (a)(2).

     SEC. 762. STUDY ON COMPARABILITY OF COVERAGE FOR PHYSICAL, 
                   SPEECH, AND OCCUPATIONAL THERAPIES.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study comparing coverage and reimbursement for covered 
     beneficiaries under chapter 55 of title 10, United States 
     Code, for physical, speech, and occupational therapies under 
     the TRICARE program and the Civilian Health and Medical 
     Program of the Uniformed Services to coverage and 
     reimbursement for such therapies by insurers under Medicare 
     and the

[[Page 21413]]

     Federal Employees Health Benefits Program. The study shall 
     examine the following:
       (1) Types of services covered.
       (2) Whether prior authorization is required to receive such 
     services.
       (3) Reimbursement limits for services covered.
       (4) Whether services are covered on both an inpatient and 
     outpatient basis.
       (b) Report.--Not later than March 31, 2001, the Secretary 
     shall submit a report on the findings of the study conducted 
     under this section to the Committees on Armed Services of the 
     Senate and the House of Representatives.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 801. Department of Defense acquisition pilot programs.
Sec. 802. Multiyear services contracts.
Sec. 803. Clarification and extension of authority to carry out certain 
              prototype projects.
Sec. 804. Clarification of authority of Comptroller General to review 
              records of participants in certain prototype projects.
Sec. 805. Extension of time period of limitation on procurement of ball 
              bearings and roller bearings.
Sec. 806. Reporting requirements relating to multiyear contracts.
Sec. 807. Eligibility of small business concerns owned and controlled 
              by women for assistance under the mentor-protege program.
Sec. 808. Qualifications required for employment and assignment in 
              contracting positions.
Sec. 809. Revision of authority for solutions-based contracting pilot 
              program.
Sec. 810. Procurement notice of contracting opportunities through 
              electronic means.

                   Subtitle B--Information Technology

Sec. 811. Acquisition and management of information technology.
Sec. 812. Tracking and management of information technology purchases.
Sec. 813. Appropriate use of requirements regarding experience and 
              education of contractor personnel in the procurement of 
              information technology services.
Sec. 814. Navy-Marine Corps Intranet.
Sec. 815. Sense of Congress regarding information technology systems 
              for Guard and Reserve components.

             Subtitle C--Other Acquisition-Related Matters

Sec. 821. Improvements in procurements of services.
Sec. 822. Financial analysis of use of dual rates for quantifying 
              overhead costs at Army ammunition plants.
Sec. 823. Repeal of prohibition on use of Department of Defense funds 
              for procurement of nuclear-capable shipyard crane from a 
              foreign source.
Sec. 824. Extension of waiver period for live-fire survivability 
              testing for MH-47E and MH-60K helicopter modification 
              programs.
Sec. 825. Compliance with existing law regarding purchases of equipment 
              and products.
Sec. 826. Requirement to disregard certain agreements in awarding 
              contracts for the purchase of firearms or ammunition.

                    Subtitle D--Studies and Reports

Sec. 831. Study on impact of foreign sourcing of systems on long-term 
              military readiness and related industrial infrastructure.
Sec. 832. Study of policies and procedures for transfer of commercial 
              activities.
Sec. 833. Study and report on practice of contract bundling in military 
              construction contracts.
Sec. 834. Requirement to conduct study on contract bundling.
Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     SEC. 801. DEPARTMENT OF DEFENSE ACQUISITION PILOT PROGRAMS.

       (a) Extension of Authority.--Section 5064(d)(2) of the 
     Federal Acquisition Streamlining Act of 1994 (Public Law 103-
     355; 108 Stat. 3361; 10 U.S.C. 2430 note) is amended by 
     striking ``45 days after the date of the enactment of this 
     Act and ends on September 30, 1998'' and inserting ``on 
     October 13, 1994, and ends on October 1, 2007''.
       (b) Expansion of JDAM Program.--Section 5064(a)(2) of such 
     Act is amended by striking ``1000-pound and 2000-pound 
     bombs'' and inserting ``500-pound, 1000-pound, and 2000-pound 
     bombs''.
       (c) Report Required.--(1) Not later than January 1, 2001, 
     the Secretary of Defense shall submit to the Committees on 
     Armed Services of the House of Representatives and the Senate 
     a report on the acquisition pilot programs of the Department 
     of Defense. The report shall describe, for each acquisition 
     program identified in section 5064(a) of the Federal 
     Acquisition Streamlining Act of 1994, the following:
       (A) Each quantitative measure and goal established for each 
     item described in paragraph (2), which of such goals have 
     been achieved, and the extent to which the use of the 
     authorities in section 809 of the National Defense 
     Authorization Act for Fiscal Year 1991 (Public Law 101-510; 
     10 U.S.C. 2430 note) and section 5064 of the Federal 
     Acquisition Streamlining Act of 1994 was a factor in 
     achieving each of such goals.
       (B) Recommended revisions to statutes or the Federal 
     Acquisition Regulation as a result of participation in the 
     pilot program.
       (C) Any innovative business practices developed as a result 
     of participation in the pilot program, whether such business 
     practices could be applied to other acquisition programs, and 
     any impediments to application of such practices to other 
     programs.
       (D) Technological changes to the program, and to what 
     extent those changes affected the items in paragraph (2).
       (E) Any other information determined appropriate by the 
     Secretary.
       (2) The items under this paragraph are, with respect to 
     defense acquisition programs, the following:
       (A) The acquisition management costs.
       (B) The unit cost of the items procured.
       (C) The acquisition cycle.
       (D) The total cost of carrying out the contract.
       (E) Staffing necessary to carry out the program.

     SEC. 802. MULTIYEAR SERVICES CONTRACTS.

       (a) In General.--(1) Chapter 137 of title 10, United States 
     Code, is amended by inserting after section 2306b the 
     following:

     ``Sec. 2306c. Multiyear contracts: acquisition of services

       ``(a) Authority.--Subject to subsections (d) and (e), the 
     head of an agency may enter into contracts for periods of not 
     more than five years for services described in subsection 
     (b), and for items of supply related to such services, for 
     which funds would otherwise be available for obligation only 
     within the fiscal year for which appropriated whenever the 
     head of the agency finds that--
       ``(1) there will be a continuing requirement for the 
     services consonant with current plans for the proposed 
     contract period;
       ``(2) the furnishing of such services will require a 
     substantial initial investment in plant or equipment, or the 
     incurrence of substantial contingent liabilities for the 
     assembly, training, or transportation of a specialized work 
     force; and
       ``(3) the use of such a contract will promote the best 
     interests of the United States by encouraging effective 
     competition and promoting economies in operation.
       ``(b) Covered Services.--The authority under subsection (a) 
     applies to the following types of services:
       ``(1) Operation, maintenance, and support of facilities and 
     installations.
       ``(2) Maintenance or modification of aircraft, ships, 
     vehicles, and other highly complex military equipment.
       ``(3) Specialized training necessitating high quality 
     instructor skills (for example, pilot and air crew members; 
     foreign language training).
       ``(4) Base services (for example, ground maintenance; in-
     plane refueling; bus transportation; refuse collection and 
     disposal).
       ``(c) Applicable Principles.--In entering into multiyear 
     contracts for services under the authority of this section, 
     the head of the agency shall be guided by the following 
     principles:
       ``(1) The portion of the cost of any plant or equipment 
     amortized as a cost of contract performance should not exceed 
     the ratio between the period of contract performance and the 
     anticipated useful commercial life of such plant or 
     equipment. Useful commercial life, for this purpose, means 
     the commercial utility of the facilities rather than the 
     physical life thereof, with due consideration given to such 
     factors as location of facilities, specialized nature 
     thereof, and obsolescence.
       ``(2) Consideration shall be given to the desirability of 
     obtaining an option to renew the contract for a reasonable 
     period not to exceed three years, at prices not to include 
     charges for plant, equipment and other nonrecurring costs, 
     already amortized.
       ``(3) Consideration shall be given to the desirability of 
     reserving in the agency the right, upon payment of the 
     unamortized portion of the cost of the plant or equipment, to 
     take title thereto under appropriate circumstances.
       ``(d) Restrictions Applicable Generally.--(1) The head of 
     an agency may not initiate under this section a contract for 
     services that includes an unfunded contingent liability in 
     excess of $20,000,000 unless the committees of Congress named 
     in paragraph (5) are notified of the proposed contract at 
     least 30 days in advance of the award of the proposed 
     contract.
       ``(2) The head of an agency may not initiate a multiyear 
     contract for services under this section if the value of the 
     multiyear contract would exceed $500,000,000 unless authority 
     for the contract is specifically provided by law.
       ``(3) The head of an agency may not terminate a multiyear 
     procurement contract for services until 10 days after the 
     date on which notice of the proposed termination is provided 
     to the committees of Congress named in paragraph (5).
       ``(4) Before any contract described in subsection (a) that 
     contains a clause setting forth a cancellation ceiling in 
     excess of $100,000,000 may be awarded, the head of the agency 
     concerned shall give written notification of the proposed 
     contract and of the proposed cancellation ceiling for that 
     contract to the committees of Congress named in paragraph 
     (5), and such contract may not then be awarded until the end 
     of a period of 30 days beginning on the date of such 
     notification.

[[Page 21414]]

       ``(5) The committees of Congress referred to in paragraphs 
     (1), (3), and (4) 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.
       ``(e) Cancellation or Termination for Insufficient Funding 
     After First Year.--In the event that funds are not made 
     available for the continuation of a multiyear contract for 
     services into a subsequent fiscal year, the contract shall be 
     canceled or terminated, and the costs of cancellation or 
     termination may be paid from--
       ``(1) appropriations originally available for the 
     performance of the contract concerned;
       ``(2) appropriations currently available for procurement of 
     the type of services concerned, and not otherwise obligated; 
     or
       ``(3) funds appropriated for those payments.
       ``(f) Multiyear Contract Defined.--For the purposes of this 
     section, a multiyear contract is a contract for the purchase 
     of services for more than one, but not more than five, 
     program years. Such a contract may provide that performance 
     under the contract during the second and subsequent years of 
     the contract is contingent upon the appropriation of funds 
     and (if it does so provide) may provide for a cancellation 
     payment to be made to the contractor if such appropriations 
     are not made.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2306b the following:

``2306c. Multiyear contracts: acquisition of services.''.

       (b) Reference to Relocated Authority.--Subsection (g) of 
     section 2306 of such title is amended to read as follows:
       ``(g) Multiyear contracting authority for the acquisition 
     of services is provided in section 2306c of this title.''.
       (c) Conforming Amendment.--Section 2306b(k) of title 10, 
     United States Code, is amended by striking ``or services''.
       (d) Applicability.--Section 2306c of title 10, United 
     States Code (as added by subsection (a)), shall apply with 
     respect to contracts for which solicitations of offers are 
     issued after the date of the enactment of this Act.

     SEC. 803. CLARIFICATION AND EXTENSION OF AUTHORITY TO CARRY 
                   OUT CERTAIN PROTOTYPE PROJECTS.

       (a) Amendments to Authority.--Section 845 of the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160; 10 U.S.C. 2371 note) is amended--
       (1) by redesignating subsection (d) as subsection (f); and
       (2) by inserting after subsection (c) the following new 
     subsections:
       ``(d) Appropriate Use of Authority.--(1) The Secretary of 
     Defense shall ensure that no official of an agency enters 
     into a transaction (other than a contract, grant, or 
     cooperative agreement) for a prototype project under the 
     authority of this section unless--
       ``(A) there is at least one nontraditional defense 
     contractor participating to a significant extent in the 
     prototype project; or
       ``(B) no nontraditional defense contractor is participating 
     to a significant extent in the prototype project, but at 
     least one of the following circumstances exists:
       ``(i) At least one third of the total cost of the prototype 
     project is to be paid out of funds provided by parties to the 
     transaction other than the Federal Government.
       ``(ii) The senior procurement executive for the agency (as 
     designated for the purposes of section 16(3) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 414(3)) determines 
     in writing that exceptional circumstances justify the use of 
     a transaction that provides for innovative business 
     arrangements or structures that would not be feasible or 
     appropriate under a contract.
       ``(2)(A) Except as provided in subparagraph (B), the 
     amounts counted for the purposes of this subsection as being 
     provided, or to be provided, by a party to a transaction with 
     respect to a prototype project that is entered into under 
     this section other than the Federal Government do not include 
     costs that were incurred before the date on which the 
     transaction becomes effective.
       ``(B) Costs that were incurred for a prototype project by a 
     party after the beginning of negotiations resulting in a 
     transaction (other than a contract, grant, or cooperative 
     agreement) with respect to the project before the date on 
     which the transaction becomes effective may be counted for 
     purposes of this subsection as being provided, or to be 
     provided, by the party to the transaction if and to the 
     extent that the official responsible for entering into the 
     transaction determines in writing that--
       ``(i) the party incurred the costs in anticipation of 
     entering into the transaction; and
       ``(ii) it was appropriate for the party to incur the costs 
     before the transaction became effective in order to ensure 
     the successful implementation of the transaction.
       ``(e) Nontraditional Defense Contractor Defined.--In this 
     section, the term `nontraditional defense contractor' means 
     an entity that has not, for a period of at least one year 
     prior to the date that a transaction (other than a contract, 
     grant, or cooperative agreement) for a prototype project 
     under the authority of this section is entered into, entered 
     into or performed with respect to--
       ``(1) any contract that is subject to full coverage under 
     the cost accounting standards prescribed pursuant to section 
     26 of the Office of Federal Procurement Policy Act (41 U.S.C. 
     422) and the regulations implementing such section; or
       ``(2) any other contract in excess of $500,000 to carry out 
     prototype projects or to perform basic, applied, or advanced 
     research projects for a Federal agency, that is subject to 
     the Federal Acquisition Regulation.''.
       (b) Extension of Authority.--Subsection (f) of such 
     section, as redesignated by subsection (a)(1), is amended by 
     striking ``September 30, 2001'' and inserting ``September 30, 
     2004''.

     SEC. 804. CLARIFICATION OF AUTHORITY OF COMPTROLLER GENERAL 
                   TO REVIEW RECORDS OF PARTICIPANTS IN CERTAIN 
                   PROTOTYPE PROJECTS.

       (a) Comptroller General Review.--Section 845(c) of the 
     National Defense Authorization Act for Fiscal Year 1994 (10 
     U.S.C. 2371 note) is amended--
       (1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3)(A) The right provided to the Comptroller General in a 
     clause of an agreement under paragraph (1) is limited as 
     provided in subparagraph (B) in the case of a party to the 
     agreement, an entity that participates in the performance of 
     the agreement, or a subordinate element of that party or 
     entity if the only agreements or other transactions that the 
     party, entity, or subordinate element entered into with 
     Government entities in the year prior to the date of that 
     agreement are cooperative agreements or transactions that 
     were entered into under this section or section 2371 of title 
     10, United States Code.
       ``(B) The only records of a party, other entity, or 
     subordinate element referred to in subparagraph (A) that the 
     Comptroller General may examine in the exercise of the right 
     referred to in that subparagraph are records of the same type 
     as the records that the Government has had the right to 
     examine under the audit access clauses of the previous 
     agreements or transactions referred to in such subparagraph 
     that were entered into by that particular party, entity, or 
     subordinate element.''.

     SEC. 805. EXTENSION OF TIME PERIOD OF LIMITATION ON 
                   PROCUREMENT OF BALL BEARINGS AND ROLLER 
                   BEARINGS.

       Section 2534(c)(3) of title 10, United States Code, is 
     amended by striking ``October 1, 2000'' and inserting 
     ``October 1, 2005''.

     SEC. 806. REPORTING REQUIREMENTS RELATING TO MULTIYEAR 
                   CONTRACTS.

       Section 2306b(l) of title 10, United States Code, is 
     amended--
       (1) in paragraph (4)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``The head of an agency'' and all that follows through 
     ``following information'' and inserting ``Not later than the 
     date of the submission of the President's budget request 
     under section 1105 of title 31, the Secretary of Defense 
     shall submit a report to the congressional defense committees 
     each year, providing the following information with respect 
     to each multiyear contract (and each extension of an existing 
     multiyear contract) entered into, or planned to be entered 
     into, by the head of an agency during the current or 
     preceding year''; and
       (B) in subparagraph (B), by striking ``in effect 
     immediately before the contract (or contract extension) is 
     entered into'' and inserting ``in effect at the time the 
     report is submitted'';
       (2) by redesignating paragraphs (5) through (9) as 
     paragraphs (6) through (10), respectively; and
       (3) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) The head of an agency may not enter into a multiyear 
     contract (or extend an existing multiyear contract), the 
     value of which would exceed $500,000,000 (when entered into 
     or when extended, as the case may be), until the Secretary of 
     Defense submits to the congressional defense committees a 
     report containing the information described in paragraph (4) 
     with respect to the contract (or contract extension).''.

     SEC. 807. ELIGIBILITY OF SMALL BUSINESS CONCERNS OWNED AND 
                   CONTROLLED BY WOMEN FOR ASSISTANCE UNDER THE 
                   MENTOR-PROTEGE PROGRAM.

       Section 831(m)(2) of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 
     note) is amended--
       (1) by striking ``or'' at the end of subparagraph (C);
       (2) by striking the period at the end of subparagraph (D) 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(E) a small business concern owned and controlled by 
     women, as defined in section 8(d)(3)(D) of the Small Business 
     Act (15 U.S.C. 637(d)(3)(D)).''.

     SEC. 808. QUALIFICATIONS REQUIRED FOR EMPLOYMENT AND 
                   ASSIGNMENT IN CONTRACTING POSITIONS.

       (a) Applicability of Requirements to Members of the Armed 
     Forces.--Section 1724 of title 10, United States Code, is 
     amended in the first sentence of subsection (d)--
       (1) by striking ``employee of'' and inserting ``employee or 
     member of''; and
       (2) by striking ``employee possesses'' and inserting 
     ``employee or member possesses''.
       (b) Mandatory Academic Qualifications.--(1) Subsection 
     (a)(3) of such section is amended--
       (A) by inserting ``and'' before ``(B)''; and
       (B) by striking ``, or (C)'' and all that follows through 
     ``listed in subparagraph (B)''.
       (2) Subsection (b) of such section is amended to read as 
     follows:
       ``(b) GS-1102 Series Positions and Similar Military 
     Positions.--The Secretary of Defense shall require that a 
     person meet the requirements set forth in paragraph (3) of 
     subsection

[[Page 21415]]

     (a), but not the other requirements set forth in that 
     subsection, in order to qualify to serve in a position in the 
     Department of Defense in--
       ``(1) the GS-1102 occupational series; or
       ``(2) a similar occupational specialty if the position is 
     to be filled by a member of the armed forces.''.
       (c) Exception.--Subsection (c) of such section is amended 
     to read as follows:
       ``(c) Exception.--The requirements imposed under subsection 
     (a) or (b) shall not apply to a person for the purpose of 
     qualifying to serve in a position in which the person is 
     serving on September 30, 2000.''.
       (d) Deletion of Unnecessary Cross References.--Subsection 
     (a) of such section is amended by striking ``(except as 
     provided in subsections (c) and (d))'' in the matter 
     preceding paragraph (1).
       (e) Effective Date.--This section, and the amendments made 
     by this section, shall take effect on October 1, 2000, and 
     shall apply to appointments and assignments to contracting 
     positions made on or after that date.

     SEC. 809. REVISION OF AUTHORITY FOR SOLUTIONS-BASED 
                   CONTRACTING PILOT PROGRAM.

       (a) Pilot Projects Under the Program.--Section 5312 of the 
     Clinger-Cohen Act of 1996 (40 U.S.C. 1492) is amended--
       (1) in subsection (a), by striking ``subsection (d)(2)'' 
     and inserting ``subsection (d)''; and
       (2) by striking subsection (d) and inserting the following:
       ``(d) Pilot Program Projects.--The Administrator shall 
     authorize to be carried out under the pilot program--
       ``(1) not more than 10 projects, each of which has an 
     estimated cost of at least $25,000,000 and not more than 
     $100,000,000; and
       ``(2) not more than 10 projects for small business 
     concerns, each of which has an estimated cost of at least 
     $1,000,000 and not more than $5,000,000.''.
       (b) Elimination of Requirement for Federal Funding of 
     Program Definition Phase.--Subsection (c)(9)(B) of such 
     section is amended by striking ``program definition phase 
     (funded, in the case of the source ultimately awarded the 
     contract, by the Federal Government)--'' and inserting 
     ``program definition phase--''.

     SEC. 810. PROCUREMENT NOTICE OF CONTRACTING OPPORTUNITIES 
                   THROUGH ELECTRONIC MEANS.

       (a) Publication by Electronic Means.--Subsection (a) of 
     section 18 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 416) is amended--
       (1) in paragraph (1)(A), by striking ``furnish for 
     publication by the Secretary of Commerce'' and inserting 
     ``publish'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2)(A) A notice of solicitation required to be published 
     under paragraph (1) may be published--
       ``(i) by electronic means that meets the requirements for 
     accessibility under paragraph (7); or
       ``(ii) by the Secretary of Commerce in the Commerce 
     Business Daily.
       ``(B) The Secretary of Commerce shall promptly publish in 
     the Commerce Business Daily each notice or announcement 
     received under this subsection for publication by that 
     means.''; and
       (3) by adding at the end the following:
       ``(7) A publication of a notice of solicitation by 
     electronic means meets the requirements for accessibility 
     under this paragraph if the notice is electronically 
     accessible in a form that allows convenient and universal 
     user access through the single Government-wide point of entry 
     designated in the Federal Acquisition Regulation.''.
       (b) Waiting Period for Issuance of Solicitation.--Paragraph 
     (3) of such subsection is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``furnish a notice to the Secretary of Commerce'' and 
     inserting ``publish a notice of solicitation''; and
       (2) in subparagraph (A), by striking ``by the Secretary of 
     Commerce''.
       (c) Conforming Amendments To Small Business Act.--
     Subsection (e) of section 8 of the Small Business Act (15 
     U.S.C. 637) is amended--
       (1) in paragraph (1)(A), by striking ``furnish for 
     publication by the Secretary of Commerce'' and inserting 
     ``publish'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2)(A) A notice of solicitation required to be published 
     under paragraph (1) may be published--
       ``(i) by electronic means that meet the accessibility 
     requirements under section 18(a)(7) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 416(a)(7)); or
       ``(ii) by the Secretary of Commerce in the Commerce 
     Business Daily.
       ``(B) The Secretary of Commerce shall promptly publish in 
     the Commerce Business Daily each notice or announcement 
     received under this subsection for publication by that 
     means.''; and
       (3) in paragraph (3)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``furnish a notice to the Secretary of Commerce'' and 
     inserting ``publish a notice of solicitation''; and
       (B) in subparagraph (A), by striking ``by the Secretary of 
     Commerce''.
       (d) Periodic Reports on Implementation of Electronic 
     Commerce in Federal Procurement.--Section 30(e) of the Office 
     of Federal Procurement Policy Act (41 U.S.C. 426(e)) is 
     amended--
       (1) in the first sentence, by striking ``Not later than 
     March 1, 1998, and every year afterward through 2003'' and 
     inserting ``Not later than March 1 of each even-numbered year 
     through 2004''; and
       (2) in paragraph (4)--
       (A) by striking ``Beginning with the report submitted on 
     March 1, 1999, an'' and inserting ``An''; and
       (B) by striking ``calendar year'' and inserting ``two 
     fiscal years''.
       (e) Effective Date; Applicability.--The amendments made by 
     this section shall take effect on October 1, 2000. The 
     amendments made by subsections (a), (b), and (c) shall apply 
     with respect to solicitations issued on or after that date.
                   Subtitle B--Information Technology

     SEC. 811. ACQUISITION AND MANAGEMENT OF INFORMATION 
                   TECHNOLOGY.

       (a) Responsibility of DOD Chief Information Officer 
     Relating to Mission Critical and Mission Essential 
     Information Technology Systems.--Section 2223(a) of title 10, 
     United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (3);
       (2) by striking the period at the end of paragraph (4) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(5) maintain a consolidated inventory of Department of 
     Defense mission critical and mission essential information 
     systems, identify interfaces between those systems and other 
     information systems, and develop and maintain contingency 
     plans for responding to a disruption in the operation of any 
     of those information systems.''.
       (b) Minimum Planning Requirements for the Acquisition of 
     Information Technology Systems.--(1) Not later than 60 days 
     after the date of the enactment of this Act, Department of 
     Defense Directive 5000.1 shall be revised to establish 
     minimum planning requirements for the acquisition of 
     information technology systems.
       (2) The revised directive required by (1) shall--
       (A) include definitions of the terms ``mission critical 
     information system'' and ``mission essential information 
     system'';
       (B) prohibit the award of any contract for the acquisition 
     of a mission critical or mission essential information 
     technology system until--
       (i) the system has been registered with the Chief 
     Information Officer of the Department of Defense;
       (ii) the Chief Information Officer has received all 
     information on the system that is required under the 
     directive to be provided to that official; and
       (iii) the Chief Information Officer has determined that 
     there is in place for the system an appropriate information 
     assurance strategy; and
       (C) require that, in the case of each system registered 
     pursuant to subparagraph (B)(i), the information required 
     under subparagraph (B)(ii) to be submitted as part of the 
     registration shall be updated on not less than a quarterly 
     basis.
       (c) Milestone Approval for Major Automated Information 
     Systems.--The revised directive required by subsection (b) 
     shall prohibit Milestone I approval, Milestone II approval, 
     or Milestone III approval (or the equivalent) of a major 
     automated information system within the Department of Defense 
     until the Chief Information Officer has determined that--
       (1) the system is being developed in accordance with the 
     requirements of division E of the Clinger-Cohen Act of 1996 
     (40 U.S.C. 1401 et seq.);
       (2) appropriate actions have been taken with respect to the 
     system in the areas of business process reengineering, 
     analysis of alternatives, economic analysis, and performance 
     measures; and
       (3) the system has been registered as described in 
     subsection (b)(2)(B).
       (d) Notice of Redesignation of Systems.--(1) Whenever 
     during fiscal year 2001, 2002, or 2003 the Chief Information 
     Officer designates a system previously designated as a major 
     automated information system to be in a designation category 
     other than a major automated information system, the Chief 
     Information Officer shall notify the congressional defense 
     committees of that designation. The notice shall be provided 
     not later than 30 days after the date of that designation. 
     Any such notice shall include the rationale for the decision 
     to make the designation and a description of the program 
     management oversight that will be implemented for the system 
     so designated.
       (2) Not later than 60 days after the date of the enactment 
     of this Act, the Chief Information Officer shall submit to 
     the congressional defense committees a report specifying each 
     information system of the Department of Defense previously 
     designated as a major automated information system that is 
     currently designated in a designation category other than a 
     major automated information system including designation as a 
     ``special interest major technology initiative''. The report 
     shall include for each such system the information specified 
     in the third sentence of paragraph (1).
       (e) Annual Implementation Report.--(1) The Secretary of 
     Defense shall submit to the congressional defense committees, 
     not later than April 1 of each of fiscal years 2001, 2002, 
     and 2003, a report on the implementation of the requirements 
     of this section during the preceding fiscal year.
       (2) The report for a fiscal year under paragraph (1) shall 
     include, at a minimum, for each major automated information 
     system that was approved during such preceding fiscal year

[[Page 21416]]

     under Department of Defense Directive 5000.1 (as revised 
     pursuant to subsection (b)), the following:
       (A) The funding baseline.
       (B) The milestone schedule.
       (C) The actions that have been taken to ensure compliance 
     with the requirements of this section and the directive.
       (3) The first report shall include, in addition to the 
     information required by paragraph (2), an explanation of the 
     manner in which the responsible officials within the 
     Department of Defense have addressed, or intend to address, 
     the following acquisition issues for each major automated 
     information system planned to be acquired after that fiscal 
     year:
       (A) Requirements definition.
       (B) Presentation of a business case analysis, including an 
     analysis of alternatives and a calculation of return on 
     investment.
       (C) Performance measurement.
       (D) Test and evaluation.
       (E) Interoperability.
       (F) Cost, schedule, and performance baselines.
       (G) Information assurance.
       (H) Incremental fielding and implementation.
       (I) Risk mitigation.
       (J) The role of integrated product teams.
       (K) Issues arising from implementation of the Command, 
     Control, Communications, Computers, Intelligence, 
     Surveillance, and Reconnaissance Plan required by Department 
     of Defense Directive 5000.1 and Chairman of the Joint Chiefs 
     of Staff Instruction 3170.01.
       (L) Oversight, including the Chief Information Officer's 
     oversight of decision reviews.
       (f) Definitions.--In this section:
       (1) The term ``Chief Information Officer'' means the senior 
     official of the Department of Defense designated by the 
     Secretary of Defense pursuant to section 3506 of title 44, 
     United States Code.
       (2) The term ``information technology system'' has the 
     meaning given the term ``information technology'' in section 
     5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
       (3) The term ``major automated information system'' has the 
     meaning given that term in Department of Defense Directive 
     5000.1.

     SEC. 812. TRACKING AND MANAGEMENT OF INFORMATION TECHNOLOGY 
                   PURCHASES.

       (a) In General.--(1) Chapter 131 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2225. Information technology purchases: tracking and 
       management

       ``(a) Collection of Data Required.--To improve tracking and 
     management of information technology products and services by 
     the Department of Defense, the Secretary of Defense shall 
     provide for the collection of the data described in 
     subsection (b) for each purchase of such products or services 
     made 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 products or services purchased.
       ``(2) Whether the products or services are categorized as 
     commercially available off-the-shelf items, other commercial 
     items, nondevelopmental items other than commercial items, 
     other noncommercial items, or services.
       ``(3) The total dollar amount of the purchase.
       ``(4) The form of contracting action used to make the 
     purchase.
       ``(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 type of pricing used to make the purchase 
     (whether fixed price or another type of pricing).
       ``(7) The extent of competition provided in making the 
     purchase.
       ``(8) A statement regarding 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.
       ``(9) A statement regarding whether the purchase was made 
     in compliance with the planning requirements under sections 
     5122 and 5123 of the Clinger-Cohen Act of 1996 (40 U.S.C. 
     1422, 1423).
       ``(c) Responsibility To Ensure Fairness of Certain 
     Prices.--The head of each contracting activity in the 
     Department of Defense shall have responsibility for ensuring 
     the fairness and reasonableness of unit prices paid by the 
     contracting activity for information technology products and 
     services that are frequently purchased commercially available 
     off-the-shelf items.
       ``(d) Limitation on Certain Purchases.--No purchase of 
     information technology products or services in excess of the 
     simplified acquisition threshold shall be made for the 
     Department of Defense from a Federal agency outside the 
     Department of Defense unless--
       ``(1) the purchase data is collected in accordance with 
     subsection (a); or
       ``(2)(A) in the case of a purchase by a Defense Agency, the 
     purchase is approved by the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics; or
       ``(B) in the case of a purchase by a military department, 
     the purchase is approved by the senior procurement executive 
     of the military department.
       ``(e) Annual Report.--Not later than March 15 of each year, 
     the Secretary of Defense shall submit to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     a report containing a summary of the data collected in 
     accordance with subsection (a).
       ``(f) Definitions.--In this section:
       ``(1) The term `senior procurement executive', with respect 
     to a military department, means the official designated as 
     the senior procurement executive for the military department 
     for the purposes of section 16(3) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 414(3)).
       ``(2) The term `simplified acquisition threshold' has the 
     meaning given the term in section 4(11) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(11)).
       ``(3) The term `small business concern' means a business 
     concern that meets the applicable size standards prescribed 
     pursuant to section 3(a) of the Small Business Act (15 U.S.C. 
     632(a)).
       ``(4) The term `small business concern owned and controlled 
     by socially and economically disadvantaged individuals' has 
     the meaning given that term in section 8(d)(3)(C) of the 
     Small Business Act (15 U.S.C. 637(d)(3)(C)).
       ``(5) The term `small business concern owned and controlled 
     by women' has the meaning given that term in section 
     8(d)(3)(D) of the Small Business Act (15 U.S.C. 
     637(d)(3)(D)).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following:

``2225. Information technology purchases: tracking and management.''.

       (b) Time for Implementation; Applicability.--(1) The 
     Secretary of Defense shall collect data as required under 
     section 2225 of title 10, United States Code (as added by 
     subsection (a)) for all contractual actions covered by such 
     section entered into on or after the date that is one year 
     after the date of the enactment of this Act.
       (2) Subsection (d) of such section shall apply with respect 
     to purchases described in that subsection for which 
     solicitations of offers are issued on or after the date that 
     is one year after the date of the enactment of this Act.
       (c) GAO Report.--Not later than 15 months after the date of 
     the enactment of this Act, the Comptroller General shall 
     submit to the congressional defense committees a report on 
     the collection of data under such section 2225. The report 
     shall include the Comptroller General's assessment of the 
     extent to which the collection of data meets the requirements 
     of that section.

     SEC. 813. APPROPRIATE USE OF REQUIREMENTS REGARDING 
                   EXPERIENCE AND EDUCATION OF CONTRACTOR 
                   PERSONNEL IN THE PROCUREMENT OF INFORMATION 
                   TECHNOLOGY SERVICES.

       (a) Amendment of the Federal Acquisition Regulation.--Not 
     later than 180 days after the date of the enactment of this 
     Act, the Federal Acquisition Regulation issued in accordance 
     with sections 6 and 25 of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 405 and 421) shall be amended to 
     address the use, in the procurement of information technology 
     services, of requirements regarding the experience and 
     education of contractor personnel.
       (b) Content of Amendment.--The amendment issued pursuant to 
     subsection (a) shall, at a minimum, provide that 
     solicitations for the procurement of information technology 
     services shall not set forth any minimum experience or 
     educational requirement for proposed contractor personnel in 
     order for a bidder to be eligible for award of a contract 
     unless--
       (1) the contracting officer first determines that the needs 
     of the executive agency cannot be met without any such 
     requirement; or
       (2) the needs of the executive agency require the use of a 
     type of contract other than a performance-based contract.
       (c) GAO Report.--Not later than one year after the date on 
     which the regulations required by subsection (a) are 
     published in the Federal Register, the Comptroller General 
     shall submit to Congress an evaluation of--
       (1) executive agency compliance with the regulations; and
       (2) conformance of the regulations with existing law, 
     together with any recommendations that the Comptroller 
     General considers appropriate.
       (d) Definitions.--In this section:
       (1) The term ``executive agency'' has the meaning given 
     that term in section 4(1) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(1)).
       (2) The term ``information technology'' has the meaning 
     given that term in section 5002(3) of the Clinger-Cohen Act 
     of 1996 (40 U.S.C. 1401(3)).
       (3) The term ``performance-based'', with respect to a 
     contract, means that the contract includes the use of 
     performance work statements that set forth contract 
     requirements in clear, specific, and objective terms with 
     measurable outcomes.

     SEC. 814. NAVY-MARINE CORPS INTRANET.

       (a) Limitation.--None of the funds authorized to be 
     appropriated for the Department of the Navy may be obligated 
     or expended to carry out a Navy-Marine Corps Intranet 
     contract before--
       (1) the Comptroller of the Department of Defense and the 
     Director of the Office of Management and Budget--
       (A) have reviewed--

[[Page 21417]]

       (i) the Report to Congress on the Navy-Marine Corps 
     Intranet submitted by the Department of the Navy on June 30, 
     2000; and
       (ii) the Business Case Analysis Supplement for the Report 
     to Congress on the Navy-Marine Corps Intranet submitted by 
     the Department of the Navy on July 15, 2000; and
       (B) have provided their written comments to the Secretary 
     of the Navy and the Chief of Naval Operations; and
       (2) the Secretary of the Navy and the Chief of Naval 
     Operations have submitted to Congress a joint certification 
     that they have reviewed the business case for the contract 
     and the comments provided by the Comptroller of the 
     Department of Defense and the Director of the Office of 
     Management and Budget and that they have determined that the 
     implementation of the contract is in the best interest of the 
     Department of the Navy.
       (b) Phased Implementation--(1) Upon the submission of the 
     certification under subsection (a)(2), the Secretary of the 
     Navy may commence a phased implementation of a Navy-Marine 
     Corps Intranet contract.
       (2) Not more than 15 percent of the total number of work 
     stations to be provided under the Navy-Marine Corps Intranet 
     program may be provided in the first increment of 
     implementation of the Navy-Marine Corps Intranet contract.
       (3) No work stations in excess of the number permitted by 
     paragraph (2) may be provided under the program until--
       (A) the Secretary of the Navy has conducted operational 
     testing and cost review of the increment covered by that 
     paragraph;
       (B) the Chief Information Officer of the Department of 
     Defense has certified to the Secretary of the Navy that the 
     results of the operational testing of the Intranet are 
     acceptable;
       (C) the Comptroller of the Department of Defense has 
     certified to the Secretary of the Navy that the cost review 
     provides a reliable basis for forecasting the cost impact of 
     continued implementation; and
       (D) the Secretary of the Navy and the Chief of Naval 
     Operations have submitted to Congress a joint certification 
     that they have reviewed the certifications submitted under 
     subparagraphs (B) and (C) and have determined that the 
     continued implementation of the contract is in the best 
     interest of the Department of the Navy.
       (4) No increment of the Navy-Marine Corps Intranet that is 
     implemented during fiscal year 2001 may include any 
     activities of the Marine Corps, the naval shipyards, or the 
     naval aviation depots. Funds available for fiscal year 2001 
     for activities of the Marine Corps, the naval shipyards, or 
     the naval aviation depots may not be expended for any 
     contract for the Navy-Marine Corps Intranet.
       (c) Prohibition on Increase of Rates Charged.--The 
     Secretary of the Navy shall ensure that rates charged by a 
     working capital funded industrial facility of the Department 
     of the Navy for goods or services provided by such facility 
     are not increased during fiscal year 2001 for the purpose of 
     funding the Navy-Marine Corps Intranet contract.
       (d) Applicability of Statutory and Regulatory 
     Requirements.--The acquisition of a Navy-Marine Corps 
     Intranet shall be managed by the Department of the Navy in 
     accordance with the requirements of--
       (1) the Clinger-Cohen Act of 1996 (divisions D and E of 
     Public Law 104-106), including the requirement for utilizing 
     modular contracting in accordance with section 38 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 434); and
       (2) Department of Defense Directives 5000.1 and 5000.2-R 
     and all other directives, regulations, and management 
     controls that are applicable to major investments in 
     information technology and related services.
       (e) Impact on Federal Employees.--The Secretary shall 
     mitigate any adverse impact of the implementation of the 
     Navy-Marine Corps Intranet on civilian employees of the 
     Department of the Navy who, as of the date of the enactment 
     of this Act, are performing functions that are included in 
     the scope of the Navy-Marine Corps Intranet program by--
       (1) developing a comprehensive plan for the transition of 
     such employees to the performance of other functions within 
     the Department of the Navy;
       (2) taking full advantage of transition authorities 
     available for the benefit of employees;
       (3) encouraging the retraining of employees who express a 
     desire to qualify for reassignment to the performance of 
     other functions within the Department of the Navy; and
       (4) including a provision in the Navy-Marine Corps Intranet 
     contract that requires the contractor to provide a preference 
     for hiring employees of the Department of the Navy who, as of 
     the date of the enactment of this Act, are performing 
     functions that are included in the scope of the contract.
       (f) Navy-Marine Corps Intranet Contract Defined.--In this 
     section, 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.

     SEC. 815. SENSE OF CONGRESS REGARDING INFORMATION TECHNOLOGY 
                   SYSTEMS FOR GUARD AND RESERVE COMPONENTS.

       It is the sense of Congress--
       (1) that the Secretary of Defense should take appropriate 
     steps to provide for upgrading information technology systems 
     of the reserve components to ensure that those systems are 
     capable, as required for mission purposes, of communicating 
     with other relevant information technology systems of the 
     military department concerned and of the Department of 
     Defense in general; and
       (2) that the Secretary of each military department should 
     ensure that communications systems for the reserve components 
     under the Secretary's jurisdiction receive appropriate 
     funding for information technology systems in order to 
     achieve the capability referred to in paragraph (1).

             Subtitle C--Other Acquisition-Related Matters

     SEC. 821. IMPROVEMENTS IN PROCUREMENTS OF SERVICES.

       (a) Preference for Performance-Based Service Contracting.--
     Not later than 180 days after the date of the enactment of 
     this Act, the Federal Acquisition Regulation issued in 
     accordance with sections 6 and 25 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 405 and 421) shall be 
     revised to establish a preference for use of contracts and 
     task orders for the purchase of services in the following 
     order of precedence:
       (1) A performance-based contract or performance-based task 
     order that contains firm fixed prices for the specific tasks 
     to be performed.
       (2) Any other performance-based contract or performance-
     based task order.
       (3) Any contract or task order that is not a performance-
     based contract or a performance-based task order.
       (b) Incentive for Use of Performance-Based Service 
     Contracts.--(1) A Department of Defense performance-based 
     service contract or performance-based task order may be 
     treated as a contract for the procurement of commercial items 
     if--
       (A) the contract or task order is valued at $5,000,000 or 
     less;
       (B) the contract or task order sets forth specifically each 
     task to be performed and, for each task--
       (i) defines the task in measurable, mission-related terms;
       (ii) identifies the specific end products or output to be 
     achieved; and
       (iii) contains a firm fixed price; and
       (C) the source of the services provides similar services 
     contemporaneously to the general public under terms and 
     conditions similar to those offered to the Federal 
     Government.
       (2) The special simplified procedures provided in the 
     Federal Acquisition Regulation pursuant to section 
     2304(g)(1)(B) of title 10, United States Code, shall not 
     apply to a performance-based service contract or performance-
     based task order that is treated as a contract for the 
     procurement of commercial items under paragraph (1).
       (3) Not later than 2 years after the date of the enactment 
     of this Act, the Comptroller General shall submit a report on 
     the implementation of this subsection to the congressional 
     defense committees.
       (4) The authority under this subsection shall not apply to 
     contracts entered into or task orders issued more than 3 
     years after the date of the enactment of this Act.
       (c) Centers of Excellence in Service Contracting.--Not 
     later than 180 days after the date of the enactment of this 
     Act, the Secretary of each military department shall 
     establish at least one center of excellence in contracting 
     for services. Each center of excellence shall assist the 
     acquisition community by identifying, and serving as a 
     clearinghouse for, best practices in contracting for services 
     in the public and private sectors.
       (d) Enhanced Training in Service Contracting.--(1) The 
     Secretary of Defense shall ensure that classes focusing 
     specifically on contracting for services are offered by the 
     Defense Acquisition University and the Defense Systems 
     Management College and are otherwise available to contracting 
     personnel throughout the Department of Defense.
       (2) The Secretary of each military department and the head 
     of each Defense Agency shall ensure that the personnel of the 
     department or agency, as the case may be, who are responsible 
     for the awarding and management of contracts for services 
     receive appropriate training that is focused specifically on 
     contracting for services.
       (e) Definitions.--In this section:
       (1) The term ``performance-based'', with respect to a 
     contract, a task order, or contracting, means that the 
     contract, task order, or contracting, respectively, includes 
     the use of performance work statements that set forth 
     contract requirements in clear, specific, and objective terms 
     with measurable outcomes.
       (2) The term ``commercial item'' has the meaning given the 
     term in section 4(12) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403(12)).
       (3) The term ``Defense Agency'' has the meaning given the 
     term in section 101(a)(11) of title 10, United States Code.

     SEC. 822. FINANCIAL ANALYSIS OF USE OF DUAL RATES FOR 
                   QUANTIFYING OVERHEAD COSTS AT ARMY AMMUNITION 
                   PLANTS.

       (a) Requirement for Analysis.--The Secretary of the Army 
     shall carry out a financial analysis of the costs that would 
     be incurred and the benefits that would be derived from the 
     implementation of a policy of using--
       (1) one set of rates for quantifying the overhead costs 
     associated with Government-owned ammunition plants of the 
     Department of the Army when allocating those costs to 
     contractors operating the plants; and
       (2) another set of rates for quantifying the overhead costs 
     to be allocated to the operation

[[Page 21418]]

     of such plants by employees of the United States.
       (b) Report.--Not later than February 15, 2001, the 
     Secretary shall submit to the congressional defense 
     committees a report on the results of the analysis carried 
     out under subsection (a). The report shall include the 
     following:
       (1) The costs and benefits identified in the analysis under 
     subsection (a).
       (2) The risks to the United States of implementing a dual-
     rate policy described in subsection (a).
       (3) The effects that a use of dual rates under such a 
     policy would have on the defense industrial base of the 
     United States.

     SEC. 823. REPEAL OF PROHIBITION ON USE OF DEPARTMENT OF 
                   DEFENSE FUNDS FOR PROCUREMENT OF NUCLEAR-
                   CAPABLE SHIPYARD CRANE FROM A FOREIGN SOURCE.

       Section 8093 of the Department of Defense Appropriations 
     Act, 2000 (Public Law 106-79; 113 Stat. 1253), is amended by 
     striking subsection (d), relating to a prohibition on the use 
     of Department of Defense funds to procure a nuclear-capable 
     shipyard crane from a foreign source.

     SEC. 824. EXTENSION OF WAIVER PERIOD FOR LIVE-FIRE 
                   SURVIVABILITY TESTING FOR MH-47E AND MH-60K 
                   HELICOPTER MODIFICATION PROGRAMS.

       (a) Existing Waiver Period Not Applicable.--Section 
     2366(c)(1) of title 10, United States Code, shall not apply 
     with respect to survivability and lethality tests for the MH-
     47E and MH-60K helicopter modification programs. Except as 
     provided in the previous sentence, the provisions and 
     requirements in section 2366(c) of such title shall apply 
     with respect to such programs, and the certification required 
     by subsection (b) shall comply with the requirements in 
     paragraph (3) of such section.
       (b) Extended Period for Waiver.--With respect to the MH-47E 
     and MH-60K helicopter modification programs, the Secretary of 
     Defense may waive the application of the survivability and 
     lethality tests described in section 2366(a) of title 10, 
     United States Code, if the Secretary, before full materiel 
     release of the MH-47E and MH-60K helicopters for operational 
     use, certifies to Congress that live-fire testing of the 
     programs would be unreasonably expensive and impracticable.
       (c) Conforming Amendment.--Section 142(a) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 106 Stat. 2338) is amended by striking ``and 
     survivability testing'' in paragraphs (1) and (2).

     SEC. 825. COMPLIANCE WITH EXISTING LAW REGARDING PURCHASES OF 
                   EQUIPMENT AND PRODUCTS.

       (a) Sense of Congress Regarding Purchase by the Department 
     of Defense of Equipment and Products.--It is the sense of 
     Congress that any entity of the Department of Defense, in 
     expending funds authorized by this Act for the purchase of 
     equipment or products, should fully comply with the Buy 
     American Act (41 U.S.C. 10a et seq.) and section 2533 of 
     title 10, United States Code.
       (b) Debarment of Persons Convicted of Fraudulent Use of 
     ``Made in America'' Labels.--If the Secretary of Defense 
     determines that a person has been convicted of intentionally 
     affixing a label bearing a ``Made in America'' inscription, 
     or another inscription with the same meaning, to any product 
     sold in or shipped to the United States that is not made in 
     the United States, the Secretary shall determine, in 
     accordance with section 2410f of title 10, United States 
     Code, whether the person should be debarred from contracting 
     with the Department of Defense.

     SEC. 826. REQUIREMENT TO DISREGARD CERTAIN AGREEMENTS IN 
                   AWARDING CONTRACTS FOR THE PURCHASE OF FIREARMS 
                   OR AMMUNITION.

       In accordance with the requirements contained in the 
     amendments enacted in the Competition in Contracting Act of 
     1984 (title VII of division B of Public Law 98-369; 98 Stat. 
     1175), the Secretary of Defense may not, in awarding a 
     contract for the purchase of firearms or ammunition, take 
     into account whether a manufacturer or vendor of firearms or 
     ammunition is a party to an agreement under which the 
     manufacturer or vendor agrees to adopt limitations with 
     respect to importing, manufacturing, or dealing in firearms 
     or ammunition in the commercial market.
                    Subtitle D--Studies and Reports

     SEC. 831. STUDY ON IMPACT OF FOREIGN SOURCING OF SYSTEMS ON 
                   LONG-TERM MILITARY READINESS AND RELATED 
                   INDUSTRIAL INFRASTRUCTURE.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study analyzing in detail--
       (1) the amount and sources of parts, components, and 
     materials of the systems described in subsection (b) that are 
     obtained from foreign sources;
       (2) the impact of obtaining such parts, components, and 
     materials from foreign sources on the long-term readiness of 
     the Armed Forces and on the economic viability of the 
     national technology and industrial base;
       (3) the impact on military readiness that would result from 
     the loss of the ability to obtain parts, components, and 
     materials identified pursuant to paragraph (1) from foreign 
     sources; and
       (4) the availability of domestic sources for parts, 
     components, and materials identified as being obtained from 
     foreign sources pursuant to paragraph (1).
       (b) Systems.--The systems referred to in subsection (a) are 
     the following:
       (1) AH-64D Apache helicopter.
       (2) F/A-18 E/F aircraft.
       (3) M1A2 Abrams tank.
       (4) AIM-120 AMRAAM missile.
       (5) Patriot missile ground station.
       (6) Hellfire missile.
       (c) Source of Information.--The Secretary shall collect 
     information to be analyzed under the study from prime 
     contractors and first and second tier subcontractors.
       (d) Report Required.--Not later than one year after the 
     date of the enactment of this Act, the Secretary shall submit 
     to Congress a report describing the results of the study 
     required by this section.
       (e) Definitions.--In this section:
       (1) The term ``domestic source'' means a person or 
     organization that falls within the term ``national technology 
     and industrial base'', as defined in section 2500(1) of title 
     10, United States Code.
       (2) The term ``foreign source'' means a person or 
     organization that does not fall within the meaning of the 
     term ``national technology and industrial base'', as defined 
     in such section.
       (3) The term ``national technology and industrial base'' 
     has the meaning given that term in such section.

     SEC. 832. STUDY OF POLICIES AND PROCEDURES FOR TRANSFER OF 
                   COMMERCIAL ACTIVITIES.

       (a) GAO-Convened Panel.--The Comptroller General shall 
     convene a panel of experts to study the policies and 
     procedures governing the transfer of commercial activities 
     for the Federal Government from Government personnel to a 
     Federal contractor, including--
       (1) procedures for determining whether functions should 
     continue to be performed by Government personnel;
       (2) procedures for comparing the costs of performance of 
     functions by Government personnel and the costs of 
     performance of such functions by Federal contractors;
       (3) implementation by the Department of Defense of the 
     Federal Activities Inventory Reform Act of 1998 (Public Law 
     105-270; 31 U.S.C. 501 note); and
       (4) procedures of the Department of Defense for public-
     private competitions pursuant to the Office of Management and 
     Budget Circular A-76.
       (b) Composition of Panel.--(1) The Comptroller General 
     shall appoint highly qualified and knowledgeable persons to 
     serve on the panel and shall ensure that the following 
     entities receive fair representation on the panel:
       (A) The Department of Defense.
       (B) Persons in private industry.
       (C) Federal labor organizations.
       (D) The Office of Management and Budget.
       (2) For the purposes of the requirement for fair 
     representation under paragraph (1), persons serving on the 
     panel under subparagraph (C) of that paragraph shall not be 
     counted as persons serving on the panel under subparagraph 
     (A), (B), or (D) of that paragraph.
       (c) Chairman.--The Comptroller General, or an individual 
     within the General Accounting Office designated by the 
     Comptroller General, shall be the chairman of the panel.
       (d) Participation by Other Interested Parties.--The 
     chairman shall ensure that all interested parties, including 
     individuals who are not represented on the panel who are 
     officers or employees of the United States, persons in 
     private industry, or representatives of Federal labor 
     organizations, have the opportunity to submit information and 
     views on the matters being studied by the panel.
       (e) Information From Agencies.--The panel may request 
     directly from any department or agency of the United States 
     any information that the panel considers necessary to carry 
     out a meaningful study of the policies and procedures 
     described in subsection (a), including the Office of 
     Management and Budget Circular A-76 process. To the extent 
     consistent with applicable laws and regulations, the head of 
     such department or agency shall furnish the requested 
     information to the panel.
       (f) Report.--Not later than May 1, 2002, the Comptroller 
     General shall submit the report of the panel on the results 
     of the study to Congress, including recommended changes with 
     respect to implementation of policies and enactment of 
     legislation.
       (g) Definition.--In this section, the term ``Federal labor 
     organization'' has the meaning given the term ``labor 
     organization'' in section 7103(a)(4) of title 5, United 
     States Code.

     SEC. 833. STUDY AND REPORT ON PRACTICE OF CONTRACT BUNDLING 
                   IN MILITARY CONSTRUCTION CONTRACTS.

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study regarding the use of the 
     practice known as ``contract bundling'' with respect to 
     military construction contracts.
       (b) Report.--Not later than February 1, 2001, the 
     Comptroller General shall submit to the committees on Armed 
     Services of the Senate and the House of Representatives a 
     report on the results of the study conducted under subsection 
     (a).

     SEC. 834. REQUIREMENT TO CONDUCT STUDY ON CONTRACT BUNDLING.

       (a) In General.--The Secretary of Defense shall conduct a 
     comprehensive study on the practice known as ``contract 
     bundling'' by the Department of Defense, and the effects of 
     such practice on small business concerns, small business 
     concerns owned and controlled by socially and economically 
     disadvantaged individuals, small business concerns owned and 
     controlled

[[Page 21419]]

     by women, and historically underutilized business zones (as 
     such terms are used in the Small Business Act (15 U.S.C. 631 
     et seq.)).
       (b) Deadline.--The Secretary shall submit the results of 
     the study to the Committees on Armed Services and Small 
     Business of the Senate and the House of Representatives 
     before submission of the budget request of the Department of 
     Defense for fiscal year 2002.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Overall supervision of Department of Defense activities for 
              combating terrorism.
Sec. 902. Change of title of certain positions in the Headquarters, 
              Marine Corps.
Sec. 903. Clarification of scope of Inspector General authorities under 
              military whistleblower law.
Sec. 904. Policy to ensure conduct of science and technology programs 
              so as to foster the transition of science and technology 
              to higher levels of research, development, test, and 
              evaluation.
Sec. 905. Additional components of Chairman of the Joint Chiefs of 
              staff annual report on combatant command requirements.

            Subtitle B--Department of Defense Organizations

Sec. 911. Western Hemisphere Institute for Security Cooperation.
Sec. 912. Department of Defense regional centers for security studies.
Sec. 913. Change in name of Armed Forces Staff College to Joint Forces 
              Staff College.
Sec. 914. Special authority for administration of Navy Fisher Houses.
Sec. 915. Supervisory control of Armed Forces Retirement Home board by 
              Secretary of Defense.
Sec. 916. Semiannual report on Joint Requirements Oversight Council 
              reform initiative.
Sec. 917. Comptroller General review of operations of Defense Logistics 
              Agency.
Sec. 918. Comptroller General review of operations of Defense 
              Information Systems Agency.

                    Subtitle C--Information Security

Sec. 921. Institute for Defense Computer Security and Information 
              Protection.
Sec. 922. Information security scholarship program.

                          Subtitle D--Reports

Sec. 931. Date of submittal of reports on shortfalls in equipment 
              procurement and military construction for the reserve 
              components in future-years defense programs.
Sec. 932. Report on number of personnel assigned to legislative liaison 
              functions.
Sec. 933. Joint report on establishment of national collaborative 
              information analysis capability.
Sec. 934. Network centric warfare.
Sec. 935. Report on Air Force Institute of Technology.

                       Subtitle E--Other Matters

Sec. 941. Flexibility in implementation of limitation on major 
              Department of Defense headquarters activities personnel.
Sec. 942. Consolidation of certain Navy gift funds.
Sec. 943. Temporary authority to dispose of a gift previously accepted 
              for the Naval Academy.
   Subtitle A--Duties and Functions of Department of Defense Officers

     SEC. 901. OVERALL SUPERVISION OF DEPARTMENT OF DEFENSE 
                   ACTIVITIES FOR COMBATING TERRORISM.

       Section 138(b) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(6)(A) One of the Assistant Secretaries, as designated by 
     the Secretary of Defense from among those Assistant 
     Secretaries with responsibilities that include 
     responsibilities related to combating   terrorism, shall 
     have, among that Assistant Secretary's duties, the duty to 
     provide overall direction and supervision for policy, program 
     planning and execution, and allocation and use of resources 
     for the activities of the Department of Defense for combating 
     terrorism, including antiterrorism activities, 
     counterterrorism activities, terrorism consequences 
     management activities, and terrorism-related intelligence 
     support activities.
       ``(B) The Assistant Secretary designated under subparagraph 
     (A) shall be the principal civilian adviser to the Secretary 
     of Defense on combating terrorism and (after the Secretary 
     and Deputy Secretary) shall be the principal official within 
     the senior management of the Department of Defense 
     responsible for combating terrorism.
       ``(C) If the Secretary of Defense designates under 
     subparagraph (A) an Assistant Secretary other than the 
     Assistant Secretary of Defense for Special Operations and Low 
     Intensity Conflict, then the responsibilities of the 
     Assistant Secretary of Defense for Special Operations and Low 
     Intensity Conflict related to combating terrorism shall be 
     exercised subject to subparagraph (B).''.

     SEC. 902. CHANGE OF TITLE OF CERTAIN POSITIONS IN THE 
                   HEADQUARTERS, MARINE CORPS.

       (a) Institution of Positions as Deputy Commandants.--
     Section 5041(b) of title 10, United States Code, is amended--
       (1) by striking paragraphs (3) through (5) and inserting 
     the following:
       ``(3) The Deputy Commandants.''; and
       (2) by redesignating paragraphs (6) and (7) as paragraphs 
     (4) and (5), respectively.
       (b) Designation of Deputy Commandants.--(1) Section 5045 of 
     such title is amended to read as follows:

     ``Sec. 5045. Deputy Commandants

       ``There are in the Headquarters, Marine Corps, not more 
     than five Deputy Commandants, detailed by the Secretary of 
     the Navy from officers on the active-duty list of the Marine 
     Corps.''.
       (2) The item relating to section 5045 in the table of 
     sections at the beginning of chapter 506 of such title is 
     amended to read as follows:

``5045. Deputy Commandants.''.

       (c) Conforming Amendment.--Section 1502(7)(D) of the Armed 
     Forces Retirement Home Act of 1991 (24 U.S.C. 401) is amended 
     to read as follows:
       ``(D) the Deputy Commandant of the Marine Corps with 
     responsibility for personnel matters.''.

     SEC. 903. CLARIFICATION OF SCOPE OF INSPECTOR GENERAL 
                   AUTHORITIES UNDER MILITARY WHISTLEBLOWER LAW.

       (a) Clarification of Responsibilities.--Subsection 
     (c)(3)(A) of section 1034 of title 10, United States Code, is 
     amended by inserting ``, in accordance with regulations 
     prescribed under subsection (h),'' after ``shall 
     expeditiously determine''.
       (b) Redefinition of Inspector General.--Subsection (i)(2) 
     of such section is amended--
       (1) by inserting ``any of'' in the matter preceding 
     subparagraph (A) after ``means'';
       (2) by striking subparagraphs (C), (D), (E), (F) and (G); 
     and
       (3) by inserting after subparagraph (B) the following new 
     subparagraph (C):
       ``(C) Any officer of the armed forces or employee of the 
     Department of Defense who is assigned or detailed to serve as 
     an Inspector General at any level in the Department of 
     Defense.''.

     SEC. 904. POLICY TO ENSURE CONDUCT OF SCIENCE AND TECHNOLOGY 
                   PROGRAMS SO AS TO FOSTER THE TRANSITION OF 
                   SCIENCE AND TECHNOLOGY TO HIGHER LEVELS OF 
                   RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

       (a) In General.--(1) Chapter 139 of title 10, United States 
     Code, is amended by inserting after section 2358 the 
     following new section:

     ``Sec. 2359. Science and technology programs to be conducted 
       so as to foster the transition of science and technology to 
       higher levels of research, development, test, and 
       evaluation

       ``(a) Policy.--Each official specified in subsection (b) 
     shall ensure that the management and conduct of the science 
     and technology programs under the authority of that official 
     are carried out in a manner that will foster the transition 
     of science and technology to higher levels of research, 
     development, test, and evaluation.
       ``(b) Covered Officials.--Subsection (a) applies to the 
     following officials of the Department of Defense:
       ``(1) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.
       ``(2) The Secretary of each military department.
       ``(3) The Director of the Defense Advanced Research 
     Projects Agency.
       ``(4) The directors and heads of other offices and agencies 
     of the Department of Defense with assigned research, 
     development, test, and evaluation responsibilities.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2358 the following new item:

``2359. Science and technology programs to be conducted so as to foster 
              the transition of science and technology to higher levels 
              of research, development, test, and evaluation.''.

       (b) Office of Naval Research.--Section 5022(b) of title 10, 
     United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (2);
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(4) the execution of, and management responsibility for, 
     programs for which funds are provided in the basic and 
     applied research and advanced technology categories of the 
     Department of the Navy research, development, test, and 
     evaluation budget in such a manner that will foster the 
     transition of science and technology to higher levels of 
     research, development, test and evaluation.''.

     SEC. 905. ADDITIONAL COMPONENTS OF CHAIRMAN OF THE JOINT 
                   CHIEFS OF STAFF ANNUAL REPORT ON COMBATANT 
                   COMMAND REQUIREMENTS.

       (a) Additional Components.--Section 153(d)(1) of title 10, 
     United States Code, is amended by adding at the end the 
     following new subparagraphs:
       ``(C) A description of the extent to which the most recent 
     future-years defense program (under section 221 of this 
     title) addresses the requirements on the consolidated lists.
       ``(D) A description of the funding proposed in the 
     President's budget for the next fiscal year,

[[Page 21420]]

     and for the subsequent fiscal years covered by the most 
     recent future-years defense program, to address each 
     deficiency in readiness identified during the joint readiness 
     review conducted under section 117 of this title for the 
     first quarter of the current fiscal year.''.
       (b) Time for Submission.--Such section is further amended 
     by striking ``Not later than August 15 of each year,'' and 
     inserting ``At or about the time that the budget is submitted 
     to Congress for a fiscal year under section 1105(a) of title 
     31,''.
            Subtitle B--Department of Defense Organizations

     SEC. 911. WESTERN HEMISPHERE INSTITUTE FOR SECURITY 
                   COOPERATION.

       (a) In General.--Chapter 108 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2166. Western Hemisphere Institute for Security 
       Cooperation

       ``(a) Establishment and Administration.--(1) The Secretary 
     of Defense may operate an education and training facility for 
     the purpose set forth in subsection (b). The facility shall 
     be known as the `Western Hemisphere Institute for Security 
     Cooperation'.
       ``(2) The Secretary may designate the Secretary of a 
     military department as the Department of Defense executive 
     agent for carrying out the responsibilities of the Secretary 
     of Defense under this section.
       ``(b) Purpose.--The purpose of the Institute is to provide 
     professional education and training to eligible personnel of 
     nations of the Western Hemisphere within the context of the 
     democratic principles set forth in the Charter of the 
     Organization of American States (such charter being a treaty 
     to which the United States is a party), while fostering 
     mutual knowledge, transparency, confidence, and cooperation 
     among the participating nations and promoting democratic 
     values, respect for human rights, and knowledge and 
     understanding of United States customs and traditions.
       ``(c) Eligible Personnel.--(1) Subject to paragraph (2), 
     personnel of nations of the Western Hemisphere are eligible 
     for education and training at the Institute as follows:
       ``(A) Military personnel.
       ``(B) Law enforcement personnel.
       ``(C) Civilian personnel.
       ``(2) The Secretary of State shall be consulted in the 
     selection of foreign personnel for education or training at 
     the Institute.
       ``(d) Curriculum.--(1) The curriculum of the Institute 
     shall include mandatory instruction for each student, for at 
     least 8 hours, on human rights, the rule of law, due process, 
     civilian control of the military, and the role of the 
     military in a democratic society.
       ``(2) The curriculum may include instruction and other 
     educational and training activities on the following:
       ``(A) Leadership development.
       ``(B) Counterdrug operations.
       ``(C) Peace support operations.
       ``(D) Disaster relief.
       ``(E) Any other matter that the Secretary determines 
     appropriate.
       ``(e) Board of Visitors.--(1) There shall be a Board of 
     Visitors for the Institute. The Board shall be composed of 
     the following:
       ``(A) The chairman and ranking minority member of the 
     Committee on Armed Services of the Senate, or a designee of 
     either of them.
       ``(B) The chairman and ranking minority member of the 
     Committee on Armed Services of the House of Representatives, 
     or a designee of either of them.
       ``(C) Six persons designated by the Secretary of Defense 
     including, to the extent practicable, persons from academia 
     and the religious and human rights communities.
       ``(D) One person designated by the Secretary of State.
       ``(E) The senior military officer responsible for training 
     and doctrine for the Army or, if the Secretary of the Navy or 
     the Secretary of the Air Force is designated as the executive 
     agent of the Secretary of Defense under subsection (a)(2), 
     the senior military officer responsible for training and 
     doctrine for the Navy or Marine Corps or for the Air Force, 
     respectively, or a designee of the senior military officer 
     concerned.
       ``(F) The commander of the unified combatant command having 
     geographic responsibility for Latin America, or a designee of 
     that officer.
       ``(2) A vacancy in a position on the Board shall be filled 
     in the same manner as the position was originally filled.
       ``(3) The Board shall meet at least once each year.
       ``(4)(A) The Board shall inquire into the curriculum, 
     instruction, physical equipment, fiscal affairs, and academic 
     methods of the Institute, other matters relating to the 
     Institute that the Board decides to consider, and any other 
     matter that the Secretary of Defense determines appropriate.
       ``(B) The Board shall review the curriculum of the 
     Institute to determine whether--
       ``(i) the curriculum complies with applicable United States 
     laws and regulations;
       ``(ii) the curriculum is consistent with United States 
     policy goals toward Latin America and the Caribbean;
       ``(iii) the curriculum adheres to current United States 
     doctrine; and
       ``(iv) the instruction under the curriculum appropriately 
     emphasizes the matters specified in subsection (d)(1).
       ``(5) Not later than 60 days after its annual meeting, the 
     Board shall submit to the Secretary of Defense a written 
     report of its activities and of its views and recommendations 
     pertaining to the Institute.
       ``(6) Members of the Board shall not be compensated by 
     reason of service on the Board.
       ``(7) With the approval of the Secretary of Defense, the 
     Board may accept and use the services of voluntary and 
     uncompensated advisers appropriate to the duties of the Board 
     without regard to section 1342 of title 31.
       ``(8) Members of the Board and advisers whose services are 
     accepted under paragraph (7) shall be allowed travel and 
     transportation expenses, including per diem in lieu of 
     subsistence, while away from their homes or regular places of 
     business in the performance of services for the Board. 
     Allowances under this paragraph shall be computed--
       ``(A) in the case of members of the Board who are officers 
     or employees of the United States, at rates authorized for 
     employees of agencies under subchapter I of chapter 57 of 
     title 5; and
       ``(B) in the case of other members of the Board and 
     advisers, as authorized under section 5703 of title 5 for 
     employees serving without pay.
       ``(9) The Federal Advisory Committee Act (5 U.S.C. App. 2), 
     other than section 14 (relating to termination after two 
     years), shall apply to the Board.
       ``(f) Fixed Costs.--The fixed costs of operating and 
     maintaining the Institute for a fiscal year may be paid 
     from--
       ``(1) any funds available for that fiscal year for 
     operation and maintenance for the executive agent designated 
     under subsection (a)(2); or
       ``(2) if no executive agent is designated under subsection 
     (a)(2), any funds available for that fiscal year for the 
     Department of Defense for operation and maintenance for 
     Defense-wide activities.
       ``(g) Tuition.--Tuition fees charged for persons who attend 
     the Institute may not include the fixed costs of operating 
     and maintaining the Institute.
       ``(h) Annual Report.--Not later than March 15 of each year, 
     the Secretary of Defense shall submit to Congress a detailed 
     report on the activities of the Institute during the 
     preceding year. The report shall be prepared in consultation 
     with the Secretary of State.''.
       (b) Repeal of Authority for United States Army School of 
     the Americas.--Section 4415 of title 10, United States Code, 
     is repealed.
       (c) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 108 of title 10, United States Code, is 
     amended by inserting after the item relating to section 2165 
     the following new item:

``2166. Western Hemisphere Institute for Security Cooperation.''.

       (2) The table of sections at the beginning of chapter 407 
     of such title is amended by striking the item relating to 
     section 4415.

     SEC. 912. DEPARTMENT OF DEFENSE REGIONAL CENTERS FOR SECURITY 
                   STUDIES.

       (a) Requirement for Annual Report.--(1) Chapter 7 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 184. Department of Defense regional centers for 
       security studies

       ``(a) Advance Notification to Congress of the Establishment 
     of New Regional Centers.--After the date of the enactment of 
     this section, a regional center for security studies may not 
     be established in the Department of Defense until--
       ``(1) the Secretary of Defense submits to Congress a 
     notification of the intent of the Secretary to establish the 
     center, including a description of the mission and functions 
     of the proposed center and a justification for the proposed 
     center; and
       ``(2) a period of 90 days has elapsed after the date on 
     which that notification is submitted.
       ``(b) Requirement for Annual Report.--Not later than 
     February 1 of each year, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a report on the operation of the Department 
     of Defense regional centers for security studies during the 
     preceding fiscal year. The annual report shall include, for 
     each regional center, the following information:
       ``(1) The status and objectives of the center.
       ``(2) The budget of the center, including the costs of 
     operating the center.
       ``(3) A description of the extent of the international 
     participation in the programs of the center, including the 
     costs incurred by the United States for the participation of 
     each foreign nation.
       ``(4) A description of the foreign gifts and donations, if 
     any, accepted under any of the following provisions of law:
       ``(A) Section 2611 of this title.
       ``(B) Section 1306 of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
     2892).
       ``(C) Section 1065 of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2653; 
     10 U.S.C. 113 note).
       ``(c) Regional Center for Security Studies Defined.--For 
     the purposes of this section, a regional center for security 
     studies is any center within the Department of Defense that--
       ``(1) is operated, and designated as such, by the Secretary 
     of Defense for the study of security issues relating to a 
     specified geographic region of the world; and
       ``(2) serves as a forum for bilateral and multilateral 
     communication and military and civilian exchanges with 
     nations in that region.''.
       (2) The table of sections at the beginning of chapter 7 of 
     such title is amended by adding at the end the following new 
     item:


[[Page 21421]]


``184. Department of Defense regional centers for security studies.''.

       (b) First Annual Report.--In the first annual report on 
     Department of Defense regional centers for security studies 
     under section 184(b) of title 10, United States Code (as 
     added by subsection (a)), to be submitted not later than 
     February 1, 2001, the Secretary of Defense shall include any 
     recommendation for legislation that the Secretary considers 
     appropriate for the operation of Department of Defense 
     regional centers for security studies, together with a 
     detailed justification for the recommended legislation.

     SEC. 913. CHANGE IN NAME OF ARMED FORCES STAFF COLLEGE TO 
                   JOINT FORCES STAFF COLLEGE.

       (a) Change in Name.--The Armed Forces Staff College of the 
     Department of Defense is hereby renamed the ``Joint Forces 
     Staff College''.
       (b) Conforming Amendment.--Section 2165(b)(3) of title 10, 
     United States Code, is amended by striking ``Armed Forces 
     Staff College'' and inserting ``Joint Forces Staff College''.
       (c) References.--Any reference to the Armed Forces Staff 
     College in any law, regulation, map, document, record, or 
     other paper of the United States shall be considered to be a 
     reference to the Joint Forces Staff College.

     SEC. 914. SPECIAL AUTHORITY FOR ADMINISTRATION OF NAVY FISHER 
                   HOUSES.

       (a) Base Operating Support.--Section 2493 of title 10, 
     United States Code, is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Special Authority for Navy.--The Secretary of the 
     Navy shall provide base operating support for Fisher Houses 
     associated with health care facilities of the Navy. The level 
     of the support shall be equivalent to the base operating 
     support that the Secretary provides for morale, welfare, and 
     recreation category B community activities (as defined in 
     regulations, prescribed by the Secretary, that govern morale, 
     welfare, and recreation activities associated with Navy 
     installations).''.
       (b) Savings Provisions for Certain Navy Employees.--(1) The 
     Secretary of the Navy may continue to employ, and pay out of 
     appropriated funds, any employee of the Navy in the 
     competitive service who, as of October 17, 1998, was employed 
     by the Navy in a position at a Fisher House administered by 
     the Navy, but only for so long as the employee is 
     continuously employed in that position.
       (2) After a person vacates a position in which the person 
     was continued to be employed under the authority of paragraph 
     (1), a person employed in that position shall be employed as 
     an employee of a nonappropriated fund instrumentality of the 
     United States and may not be paid for services in that 
     position out of appropriated funds.
       (3) In this subsection:
       (A) The term ``Fisher House'' has the meaning given the 
     term in section 2493(a)(1) of title 10, United States Code.
       (B) The term ``competitive service'' has the meaning given 
     the term in section 2102 of title 5, United States Code.
       (c) Effective Date.--(1) The amendments made by subsection 
     (a) shall be effective as of October 17, 1998, as if included 
     in section 2493 of title 10, United States Code, as enacted 
     by section 906(a) of Public Law 105-261.
       (2) Subsection (b) applies with respect to the pay period 
     that includes October 17, 1998, and subsequent pay periods.

     SEC. 915. SUPERVISORY CONTROL OF ARMED FORCES RETIREMENT HOME 
                   BOARD BY SECRETARY OF DEFENSE.

       The Armed Forces Retirement Home Act of 1991 (title XV of 
     Public Law 101-510; 24 U.S.C. 401 et seq.) is amended by 
     inserting after section 1523 the following new section:

     ``SEC. 1524. CONDITIONAL SUPERVISORY CONTROL OF RETIREMENT 
                   HOME BOARD BY SECRETARY OF DEFENSE.

       ``(a) Applicability.--This section shall apply only when 
     the deduction authorized by section 1007(i)(1) of title 37, 
     United States Code, to be made from the monthly pay of 
     certain members of the armed forces is equal to $1.00 for 
     each enlisted member, warrant officer, and limited duty 
     officer of the armed forces on active duty.
       ``(b) Board Authority Subject to Secretary's Control.--The 
     Retirement Home Board shall be subject to the authority, 
     direction, and control of the Secretary of Defense in the 
     performance of the Board's duties under section 1516.
       ``(c) Appointment of Board Members.--When an appointment of 
     a member of the Retirement Home Board under section 1515 is 
     not made by the Secretary of Defense, the appointment shall 
     be subject to the approval of the Secretary of Defense.
       ``(d) Terms of Board Members.--(1) Notwithstanding section 
     1515(e)(3), only the Secretary of Defense may appoint a 
     member of the Retirement Home Board for a second consecutive 
     term.
       ``(2) The Secretary of Defense may terminate the 
     appointment of a member of the Retirement Home Board at the 
     pleasure of the Secretary.
       ``(e) Responsibility of Chairman to the Secretary.--
     Notwithstanding section 1515(d)(1)(B), the chairman of the 
     Retirement Home Board shall be responsible to the Secretary 
     of Defense, but not to the Secretaries of the military 
     departments, for direction and management of the Retirement 
     Home or each facility maintained as a separate facility of 
     the Retirement Home.''.

     SEC. 916. SEMIANNUAL REPORT ON JOINT REQUIREMENTS OVERSIGHT 
                   COUNCIL REFORM INITIATIVE.

       (a) Semiannual Report.--The Chairman of the Joints Chiefs 
     of Staff shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a series of five semiannual reports, as 
     prescribed by subsection (b), on the activities of the Joint 
     Requirements Oversight Council. The principal focus of each 
     such report shall be on the progress made on the initiative 
     of the Chairman to reform and refocus the Joint Requirements 
     Oversight Council.
       (b) Submission of Reports.--Reports under this section 
     shall be submitted not later than March 1, 2001, September 1, 
     2001, March 1, 2002, September 1, 2002, and March 1, 2003. 
     Each report shall cover the half of a fiscal year that ends 
     five months before the date on which the report is due.
       (c) Content.--In the case of any report under this section 
     after the first such report, if any matter to be included is 
     unchanged from the preceding report, that matter may be 
     included by reference to the preceding report. Each such 
     report shall include, to the extent practicable, the 
     following:
       (1) A listing of each of the capability areas designated by 
     the Chairman of the Joints Chiefs of Staff as being within 
     the principal domain of the Joint Requirements Oversight 
     Council and a justification for each such designation.
       (2) A listing of the joint requirements developed, 
     considered, or approved within each of the capability areas 
     listed pursuant to paragraph (1).
       (3) A listing and explanation of the decisions made by the 
     Joint Requirements Oversight Council and, to the extent 
     appropriate, a listing of each of the recommendations to the 
     Council made by the commander of the United States Joint 
     Forces Command.
       (4) An assessment of--
       (A) the progress made in shifting the Joint Requirements 
     Oversight Council to having a more strategic focus on future 
     war fighting requirements;
       (B) the progress made on integration of requirements; and
       (C) the progress made on development of overarching common 
     architectures for defense information systems to ensure that 
     common defense information systems are fully interoperable.
       (5) A description of any actions that have been taken to 
     improve the Joint Requirements Oversight Council.

     SEC. 917. COMPTROLLER GENERAL REVIEW OF OPERATIONS OF DEFENSE 
                   LOGISTICS AGENCY.

       (a) Comptroller General Review Required.--The Comptroller 
     General shall review the operations of the Defense Logistics 
     Agency--
       (1) to assess--
       (A) the efficiency of those operations;
       (B) the effectiveness of those operations in meeting 
     customer requirements; and
       (C) the flexibility of those operation to adopt best 
     business practices; and
       (2) to identify alternative approaches for improving the 
     operations of that agency.
       (b) Report.--Not later than February 1, 2002, the 
     Comptroller General shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives one 
     or more reports setting forth the Comptroller General's 
     findings resulting from the review under subsection (a).

     SEC. 918. COMPTROLLER GENERAL REVIEW OF OPERATIONS OF DEFENSE 
                   INFORMATION SYSTEMS AGENCY.

       (a) Comptroller General Review Required.--The Comptroller 
     General shall review the operations of the Defense 
     Information Systems Agency--
       (1) to assess--
       (A) the efficiency of those operations;
       (B) the effectiveness of those operations in meeting 
     customer requirements; and
       (C) the flexibility of those operations to adopt best 
     business practices; and
       (2) to identify alternative approaches for improving the 
     operations of that agency.
       (b) Report.--Not later than February 1, 2002, the 
     Comptroller General shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives one 
     or more reports setting forth the Comptroller General's 
     findings resulting from the review under subsection (a).
                    Subtitle C--Information Security

     SEC. 921. INSTITUTE FOR DEFENSE COMPUTER SECURITY AND 
                   INFORMATION PROTECTION.

       (a) Establishment.--The Secretary of Defense shall 
     establish an Institute for Defense Computer Security and 
     Information Protection.
       (b) Mission.--The Secretary shall require the institute--
       (1) to conduct research and technology development that is 
     relevant to foreseeable computer and network security 
     requirements and information assurance requirements of the 
     Department of Defense with a principal focus on areas not 
     being carried out by other organizations in the private or 
     public sector; and
       (2) to facilitate the exchange of information regarding 
     cyberthreats, technology, tools, and other relevant issues.
       (c) Contractor Operation.--The Secretary shall enter into a 
     contract with a not-for-profit entity, or a consortium of 
     not-for-profit entities, to organize and operate the 
     institute. The Secretary shall use competitive procedures for 
     the selection of the contractor to the extent determined 
     necessary by the Secretary.
       (d) Funding.--Of the amount authorized to be appropriated 
     by section 301(5), $5,000,000 shall

[[Page 21422]]

     be available for the Institute for Defense Computer Security 
     and Information Protection.
       (e) Report.--Not later than April 1, 2001, the Secretary 
     shall submit to the congressional defense committees the 
     Secretary's plan for implementing this section.

     SEC. 922. INFORMATION SECURITY SCHOLARSHIP PROGRAM.

       (a) Establishment of Program.--(1) Part III of subtitle A 
     of title 10, United States Code, is amended by adding at the 
     end the following new chapter:

        ``CHAPTER 112--INFORMATION SECURITY SCHOLARSHIP PROGRAM

``Sec.
``2200.  Programs; purpose.
``2200a. Scholarship program.
``2200b. Grant program.
``2200c. Centers of Academic Excellence in Information Assurance 
              Education.
``2200d. Regulations.
``2200e. Definitions.
``2200f. Inapplicability to Coast Guard.

     ``Sec. 2200. Programs; purpose

       ``(a) In General.--To encourage the recruitment and 
     retention of Department of Defense personnel who have the 
     computer and network security skills necessary to meet 
     Department of Defense information assurance requirements, the 
     Secretary of Defense may carry out programs in accordance 
     with this chapter to provide financial support for education 
     in disciplines relevant to those requirements at institutions 
     of higher education.
       ``(b) Types of Programs.--The programs authorized under 
     this chapter are as follows:
       ``(1) Scholarships for pursuit of programs of education in 
     information assurance at institutions of higher education.
       ``(2) Grants to institutions of higher education.

     ``Sec. 2200a. Scholarship program

       ``(a) Authority.--The Secretary of Defense may, subject to 
     subsection (g), provide financial assistance in accordance 
     with this section to a person--
       ``(1) who is pursuing an associate, baccalaureate, or 
     advanced degree, or a certification, in an information 
     assurance discipline referred to in section 2200(a) of this 
     title at an institution of higher education; and
       ``(2) who enters into an agreement with the Secretary as 
     described in subsection (b).
       ``(b) Service Agreement for Scholarship Recipients.--(1) To 
     receive financial assistance under this section--
       ``(A) a member of the armed forces shall enter into an 
     agreement to serve on active duty in the member's armed force 
     for the period of obligated service determined under 
     paragraph (2);
       ``(B) an employee of the Department of Defense shall enter 
     into an agreement to continue in the employment of the 
     department for the period of obligated service determined 
     under paragraph (2); and
       ``(C) a person not referred to in subparagraph (A) or (B) 
     shall enter into an agreement--
       ``(i) to enlist or accept a commission in one of the armed 
     forces and to serve on active duty in that armed force for 
     the period of obligated service determined under paragraph 
     (2); or
       ``(ii) to accept and continue employment in the Department 
     of Defense for the period of obligated service determined 
     under paragraph (2).
       ``(2) For the purposes of this subsection, the period of 
     obligated service for a recipient of financial assistance 
     under this section shall be the period determined by the 
     Secretary of Defense as being appropriate to obtain adequate 
     service in exchange for the financial assistance and 
     otherwise to achieve the goals set forth in section 2200(a) 
     of this title. In no event may the period of service required 
     of a recipient be less than the period equal to three-fourths 
     of the total period of pursuit of a degree for which the 
     Secretary agrees to provide the recipient with financial 
     assistance under this section. The period of obligated 
     service is in addition to any other period for which the 
     recipient is obligated to serve on active duty or in the 
     civil service, as the case may be.
       ``(3) An agreement entered into under this section by a 
     person pursuing an academic degree shall include terms that 
     provide the following:
       ``(A) That the period of obligated service begins on a date 
     after the award of the degree that is determined under the 
     regulations prescribed under section 2200d of this title.
       ``(B) That the person will maintain satisfactory academic 
     progress, as determined in accordance with those regulations, 
     and that failure to maintain such progress constitutes 
     grounds for termination of the financial assistance for the 
     person under this section.
       ``(C) Any other terms and conditions that the Secretary of 
     Defense determines appropriate for carrying out this section.
       ``(c) Amount of Assistance.--The amount of the financial 
     assistance provided for a person under this section shall be 
     the amount determined by the Secretary of Defense as being 
     necessary to pay all educational expenses incurred by that 
     person, including tuition, fees, cost of books, laboratory 
     expenses, and expenses of room and board. The expenses paid, 
     however, shall be limited to those educational expenses 
     normally incurred by students at the institution of higher 
     education involved.
       ``(d) Use of Assistance for Support of Internships.--The 
     financial assistance for a person under this section may also 
     be provided to support internship activities of the person at 
     the Department of Defense in periods between the academic 
     years leading to the degree for which assistance is provided 
     the person under this section.
       ``(e) Refund for Period of Unserved Obligated Service.--(1) 
     A person who voluntarily terminates service before the end of 
     the period of obligated service required under an agreement 
     entered into under subsection (b) shall refund to the United 
     States an amount determined by the Secretary of Defense as 
     being appropriate to obtain adequate service in exchange for 
     financial assistance and otherwise to achieve the goals set 
     forth in section 2200(a) of this title.
       ``(2) 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 of Defense may waive, in whole or in 
     part, a refund required under paragraph (1) if the Secretary 
     determines that recovery would be against equity and good 
     conscience or would be contrary to the best interests of the 
     United States.
       ``(f) Effect of Discharge in Bankruptcy.--A discharge in 
     bankruptcy under title 11 that is entered less than five 
     years after the termination of an agreement under this 
     section does not discharge the person signing such agreement 
     from a debt arising under such agreement or under subsection 
     (e).
       ``(g) Allocation of Funding.--Not less than 50 percent of 
     the amount available for financial assistance under this 
     section for a fiscal year shall be available only for 
     providing financial assistance for the pursuit of degrees 
     referred to in subsection (a) at institutions of higher 
     education that have established, improved, or are 
     administering programs of education in information assurance 
     under the grant program established in section 2200b of this 
     title, as determined by the Secretary of Defense.

     ``Sec. 2200b. Grant program

       ``(a) Authority.--The Secretary of Defense may provide 
     grants of financial assistance to institutions of higher 
     education to support the establishment, improvement, or 
     administration of programs of education in information 
     assurance disciplines referred to in section 2200(a) of this 
     title.
       ``(b) Purposes.--The proceeds of grants under this section 
     may be used by an institution of higher education for the 
     following purposes:
       ``(1) Faculty development.
       ``(2) Curriculum development.
       ``(3) Laboratory improvements.
       ``(4) Faculty research in information security.

     ``Sec. 2200c. Centers of Academic Excellence in Information 
       Assurance Education

       ``In the selection of a recipient for the award of a 
     scholarship or grant under this chapter, consideration shall 
     be given to whether--
       ``(1) in the case of a scholarship, the institution at 
     which the recipient pursues a degree is a Center of Academic 
     Excellence in Information Assurance Education; and
       ``(2) in the case of a grant, the recipient is a Center of 
     Academic Excellence in Information Assurance Education.

     ``Sec. 2200d. Regulations

       ``The Secretary of Defense shall prescribe regulations for 
     the administration of this chapter.

     ``Sec. 2200e. Definitions

       ``In this chapter:
       ``(1) The term `information assurance' includes the 
     following:
       ``(A) Computer security.
       ``(B) Network security.
       ``(C) Any other information technology that the Secretary 
     of Defense considers related to information assurance.
       ``(2) The term `institution of higher education' has the 
     meaning given the term in section 101 of the Higher Education 
     Act of 1965 (20 U.S.C. 1001).
       ``(3) The term `Center of Academic Excellence in 
     Information Assurance Education' means an institution of 
     higher education that is designated by the Director of the 
     National Security Agency as a Center of Academic Excellence 
     in Information Assurance Education.

     ``Sec. 2200f. Inapplicability to Coast Guard

       ``This chapter does not apply to the Coast Guard when it is 
     not operating as a service in the Navy.''.
       (2) The tables of chapters at the beginning of subtitle A 
     of title 10, United States Code, and the beginning of part 
     III of such subtitle are amended by inserting after the item 
     relating to chapter 111 the following new item:

``112. Information Security Scholarship Program.............2200''.....

       (b) Funding.--Of the amount authorized to be appropriated 
     by section 301(5), $15,000,000 shall be available for 
     carrying out chapter 112 of title 10, United States Code (as 
     added by subsection (a)).
       (c) Report.--Not later than April 1, 2001, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a plan for implementing the programs under chapter 112 of 
     title 10, United States Code.
                          Subtitle D--Reports

     SEC. 931. DATE OF SUBMITTAL OF REPORTS ON SHORTFALLS IN 
                   EQUIPMENT PROCUREMENT AND MILITARY CONSTRUCTION 
                   FOR THE RESERVE COMPONENTS IN FUTURE-YEARS 
                   DEFENSE PROGRAMS.

       Section 10543(c) of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(3) A report required under paragraph (1) for a fiscal 
     year shall be submitted not later than 15 days after the date 
     on which the President submits to Congress the budget for 
     such fiscal year under section 1105(a) of title 31.''.

[[Page 21423]]



     SEC. 932. REPORT ON NUMBER OF PERSONNEL ASSIGNED TO 
                   LEGISLATIVE LIAISON FUNCTIONS.

       (a) Report.--Not later than December 1, 2000, the Secretary 
     of Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report setting forth the number of 
     personnel of the Department of Defense performing legislative 
     liaison functions as of April 1, 2000.
       (b) Matters To Be Included.--The report shall include the 
     following:
       (1) The number of military and civilian personnel of the 
     Department of Defense assigned to full-time legislative 
     liaison functions, shown by organizational entity and by pay 
     grade.
       (2) The number of military and civilian personnel of the 
     Department not covered by paragraph (1) (other than personnel 
     described in subsection (e)) who perform legislative liaison 
     functions as part of their assigned duties, shown by 
     organizational entity and by pay grade.
       (c) Legislative Liaison Functions.--For purposes of this 
     section, a legislative liaison function is a function 
     (regardless of how characterized within the Department of 
     Defense) that has been established or designated to 
     principally provide advice, information, and assistance to 
     the legislative branch on Department of Defense policies, 
     plans, and programs.
       (d) Organizational Entities.--The display of information 
     under subsection (b) by organizational entity shall be for 
     the Department of Defense and for each military department as 
     a whole and separately for each organization at the level of 
     major command or Defense Agency or higher.
       (e) Personnel Not Covered.--Subsection (b)(2) does not 
     apply to civilian officers appointed by the President, by and 
     with the advice and consent of the Senate, or to general or 
     flag officers.

     SEC. 933. JOINT REPORT ON ESTABLISHMENT OF NATIONAL 
                   COLLABORATIVE INFORMATION ANALYSIS CAPABILITY.

       (a) Report.--Not later than March 1, 2000, the Secretary of 
     Defense and the Director of Central Intelligence shall submit 
     to the congressional defense committees and the congressional 
     intelligence committees a joint report assessing alternatives 
     for the establishment of a national collaborative information 
     analysis capability. The report shall include the following:
       (1) An assessment of alternative architectures to establish 
     a national collaborative information analysis capability to 
     conduct data mining and profiling of information from a wide 
     array of electronic data sources.
       (2) Identification, from among the various architectures 
     assessed under paragraph (1), of the preferred architecture 
     and a detailed description of that architecture and of a 
     program to acquire and implement the capability that would be 
     provided through that architecture.
       (3) A detailed explanation of how the personal information 
     resulting from the data mining and profiling capability 
     developed under the preferred architecture will be employed 
     consistent with the requirements of section 552a of title 5, 
     United States Code
       (b) Completion and Use of Army Land Information Warfare 
     Activity.--The Secretary of Defense--
       (1) shall ensure that the data mining, profiling, and 
     analysis capability of the Army's Land Information Warfare 
     Activity is completed and is fully operational as soon as 
     possible; and
       (2) shall make appropriate use of that capability to 
     provide support to all appropriate national defense 
     components.

     SEC. 934. NETWORK CENTRIC WARFARE.

       (a) Findings.--Congress makes the following findings:
       (1) Joint Vision 2020 set the goal for the Department of 
     Defense to pursue information superiority in order that joint 
     forces may possess superior knowledge and attain decision 
     superiority during operations across the spectrum of 
     conflict.
       (2) One concept being pursued to attain information 
     superiority is known as Network Centric Warfare. The concept 
     of Network Centric Warfare links sensors, communications 
     systems and weapons systems in an interconnected grid that 
     allows for a seamless information flow to warfighters, policy 
     makers, and support personnel.
       (3) The Joint Staff, the Defense Agencies, and the military 
     departments are all pursuing various concepts related to 
     Network Centric Warfare.
       (b) Goal.--It shall be the goal of Department of Defense to 
     fully coordinate various efforts being pursued by the Joint 
     Staff, the Defense Agencies, and the military departments as 
     they develop the concept of Network Centric Warfare.
       (c) Report on Network Centric Warfare.--(1) The Secretary 
     of Defense shall submit to the congressional defense 
     committees a report on the development and implementation of 
     network centric warfare concepts within the Department of 
     Defense. The report shall be prepared in consultation with 
     the Chairman of the Joint Chiefs of Staff.
       (2) The report shall include the following:
       (A) A clear definition and terminology to describe the set 
     of operational concepts referred to as ``network centric 
     warfare''.
       (B) An identification and description of the current and 
     planned activities by the Office of the Secretary of Defense, 
     the Joint Chiefs of Staff, and the United States Joint Forces 
     Command relating to network centric warfare.
       (C) A discussion of how the concept of network centric 
     warfare is related to the strategy of transformation as 
     outlined in the document entitled ``Joint Vision 2020'', 
     along with the advantages and disadvantages of pursing that 
     concept.
       (D) A discussion on how the Department is implementing the 
     concepts of network centric warfare as it relates to 
     information superiority and decision superiority articulated 
     in ``Joint Vision 2020.''
       (E) An identification and description of the current and 
     planned activities of each of the Armed Forces relating to 
     network centric warfare.
       (F) A discussion on how the Department plans to attain a 
     fully integrated, joint command, control, communications, 
     computers, intelligence, surveillance, and reconnaissance 
     (C4ISR) capability.
       (G) A description of the joint requirements under 
     development that will lead to the acquisition of technologies 
     for enabling network centric warfare and whether those joint 
     requirements are modifying existing service requirements and 
     vision statements.
       (H) A discussion of how Department of Defense activities to 
     establish a joint network centric capability are coordinated 
     with other departments and agencies of the United States and 
     with United States allies.
       (I) A discussion of the coordination of the science and 
     technology investments of the military departments and 
     Defense Agencies in the development of future joint network 
     centric warfare capabilities.
       (J) The methodology being used to measure progress toward 
     stated goals.
       (d) Study on the Use of Joint Experimentation for 
     Developing Network Centric Warfare Concepts.--(1) The 
     Secretary of Defense shall conduct a study on the present and 
     future use of the joint experimentation program of the 
     Department of Defense in the development of network centric 
     warfare concepts.
       (2) The Secretary shall submit to the congressional defense 
     committees a report on the results of the study. The report 
     shall include the following:
       (A) A survey of and description of how experimentation 
     under the joint experimentation at United States Joint Forces 
     Command is being used for evaluating emerging concepts in 
     network centric warfare.
       (B) A survey of and description of how experimentation 
     under the joint experimentation of each of the armed services 
     are being used for evaluating emerging concepts in network 
     centric warfare.
       (C) A description of any emerging concepts and 
     recommendations developed by those experiments, with special 
     emphasis on force structure implications.
       (3) The Secretary of Defense, acting through the Chairman 
     of the Joint Chief of Staff, shall designate the Commander in 
     Chief of the United States Joint Forces Command to carry out 
     the study and prepare the report required under this 
     subsection.
       (e) Time for Submission of Reports.--Each report required 
     under this section shall be submitted not later than March 1, 
     2001.

     SEC. 935. REPORT ON AIR FORCE INSTITUTE OF TECHNOLOGY.

       (a) Report Required.--Not later than September 30, 2001, 
     the Secretary of the Air Force shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     roles and missions, organizational structure, funding, and 
     operations of the Air Force Institute of Technology as 
     projected through 2010.
       (b) Matters To Be Included.--The report shall provide--
       (1) a statement of the Institute's roles and missions 
     through 2010 in meeting the critical scientific and 
     educational requirements of the Air Force;
       (2) a statement of the strategic priorities for the 
     Institute in meeting long-term core science and technology 
     educational needs of the Air Force; and
       (3) a plan for the near-term increase in the production by 
     the Institute of masters and doctoral degree graduates.
       (c) Recommendations To Be Provided.--Based on the matters 
     determined for purposes of subsection (b), the report shall 
     include recommendations of the Secretary of the Air Force 
     with respect to the following:
       (1) The grade of the Commandant of the Institute.
       (2) The chain of command of the Commandant within the Air 
     Force.
       (3) The employment and compensation of civilian professors 
     at the Institute.
       (4) The processes for the identification of requirements 
     for personnel with advanced degrees within the Air Force and 
     identification and selection of candidates for annual 
     enrollment at the Institute.
       (5) Postgraduation opportunities within the Air Force for 
     graduates of the Institute.
       (6) The policies and practices regarding the admission to 
     the Institute of--
       (A) officers of the Army, Navy, Marine Corps, and Coast 
     Guard;
       (B) employees of the Department of the Army, Department of 
     the Navy, and Department of Transportation;
       (C) personnel of the military forces of foreign countries;
       (D) enlisted members of the Armed Forces; and
       (E) other persons eligible for admission.
       (7) Near- and long-term funding of the institute.
       (8) Opportunities for cooperation, collaboration, and joint 
     endeavors with other military and civilian scientific and 
     technical educational

[[Page 21424]]

     institutions for the production of qualified personnel to 
     meet Department of Defense scientific and technical 
     requirements.
       (d) Consultation.--The report shall be prepared in 
     consultation with the Chief of Staff of the Air Force and the 
     Commander of the Air Force Materiel Command.
                       Subtitle E--Other Matters

     SEC. 941. FLEXIBILITY IN IMPLEMENTATION OF LIMITATION ON 
                   MAJOR DEPARTMENT OF DEFENSE HEADQUARTERS 
                   ACTIVITIES PERSONNEL.

       Section 130a of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(g) Flexibility.--(1) If during fiscal year 2001 or 
     fiscal year 2002 the Secretary of Defense determines, and 
     certifies to Congress, that the limitation under subsection 
     (a), or a limitation under subsection (b), would adversely 
     affect United States national security, the Secretary may 
     take any of the following actions:
       ``(A) Increase the percentage specified in subsection 
     (b)(1) by such amount as the Secretary determines necessary 
     or waive the limitation under that subsection.
       ``(B) Increase the percentage specified in subsection 
     (b)(2) by such amount as the Secretary determines necessary, 
     not to exceed a cumulative increase of 7.5 percentage points.
       ``(C) Increase the percentage specified in subsection (a) 
     by such amount as the Secretary determines necessary, not to 
     exceed a cumulative increase of 7.5 percentage points.
       ``(2) Any certification under paragraph (1) shall include 
     notice of the specific waiver or increases made pursuant to 
     the authority provided in that paragraph.''.

     SEC. 942. CONSOLIDATION OF CERTAIN NAVY GIFT FUNDS.

       (a) Merger of Naval Historical Center Fund Into Department 
     of the Navy General Gift Fund.--(1) The Secretary of the Navy 
     shall transfer all amounts in the Naval Historical Center 
     Fund maintained under section 7222 of title 10, United States 
     Code, to the Department of the Navy General Gift Fund 
     maintained under section 2601 of such title. Upon completing 
     the transfer, the Secretary shall close the Naval Historical 
     Center Fund.
       (2) Amounts transferred to the Department of the Navy 
     General Gift Fund under this subsection shall be merged with 
     other amounts in that Fund and shall be available for the 
     purposes for which amounts in that Fund are available.
       (b) Consolidation of Naval Academy General Gift Fund and 
     Naval Academy Museum Fund.--(1) The Secretary of the Navy 
     shall transfer all amounts in the United States Naval Academy 
     Museum Fund established by section 6974 of title 10, United 
     States Code, to the gift fund maintained for the benefit and 
     use of the United States Naval Academy under section 6973 of 
     such title. Upon completing the transfer, the Secretary shall 
     close the United States Naval Academy Museum Fund.
       (2) Amounts transferred under this subsection shall be 
     merged with other amounts in the gift fund to which 
     transferred and shall be available for the purposes for which 
     amounts in that gift fund are available.
       (c) Consolidation and Revision of Authorities for 
     Acceptance of Gifts, Bequests, and Loans for the United 
     States Naval Academy.--(1) Subsection (a) of section 6973 of 
     title 10, United States Code, is amended--
       (A) in the first sentence--
       (i) by striking ``gifts and bequests of personal property'' 
     and inserting ``any gift or bequest of personal property, and 
     may accept, hold, and administer any loan of personal 
     property other than money, that is''; and
       (ii) by inserting ``or the Naval Academy Museum, its 
     collection, or its services'' before the period at the end;
       (B) in the second sentence, by striking `` `United States 
     Naval Academy general gift fund' '' and inserting `` `United 
     States Naval Academy Gift and Museum Fund' ''; and
       (C) in the third sentence, by inserting ``(including the 
     Naval Academy Museum)'' after ``the Naval Academy''.
       (2) Such section is further amended--
       (A) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (B) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) The Secretary shall prescribe written guidelines to 
     be used for determinations of whether the acceptance of 
     money, any personal property, or any loan of personal 
     property under subsection (a) would reflect unfavorably on 
     the ability of the Department of the Navy or any officer or 
     employee of the Department of the Navy to carry out 
     responsibilities or duties in a fair and objective manner, or 
     would compromise either the integrity or the appearance of 
     the integrity of any program of the Department of the Navy or 
     any officer or employee of the Department of the Navy who is 
     involved in any such program.''.
       (3) Subsection (d) of such section, as redesignated by 
     paragraph (2)(A), is amended by striking ``United States 
     Naval Academy general gift fund'' both places it appears and 
     inserting ``United States Naval Academy Gift and Museum 
     Fund''.
       (4) The heading for such section is amended to read as 
     follows:

     ``Sec. 6973. Gifts, bequests, and loans of property: 
       acceptance for benefit and use of Naval Academy''.

       (d) References to Closed Gift Funds.--(1) Section 6974 of 
     title 10, United States Code, is amended to read as follows:

     ``Sec. 6974. United States Naval Academy Museum Fund: 
       references to Fund

       ``Any reference in a law, regulation, document, paper, or 
     other record of the United States to the United States Naval 
     Academy Museum Fund formerly maintained under this section 
     shall be deemed to refer to the United States Naval Academy 
     Gift and Museum Fund maintained under section 6973 of this 
     title.''.
       (2) Section 7222 of such title is amended to read as 
     follows:

     ``Sec. 7222. Naval Historical Center Fund: references to Fund

       ``Any reference in a law, regulation, document, paper, or 
     other record of the United States to the Naval Historical 
     Center Fund formerly maintained under this section shall be 
     deemed to refer to the Department of the Navy General Gift 
     Fund maintained under section 2601 of this title.''.
       (e) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 603 of title 10, United States Code, is 
     amended by striking the items relating to sections 6973 and 
     6974 and inserting the following:

``6973. Gifts, bequests, and loans of property: acceptance for benefit 
              and use of Naval Academy.
``6974. United States Naval Academy Museum Fund: references to Fund.''.

       (2) The item relating to section 7222 of such title in the 
     table of sections at the beginning of chapter 631 of such 
     title is amended to read as follows:

``7222. Naval Historical Center Fund: references to Fund.''.

     SEC. 943. TEMPORARY AUTHORITY TO DISPOSE OF A GIFT PREVIOUSLY 
                   ACCEPTED FOR THE NAVAL ACADEMY.

       Notwithstanding section 6973 of title 10, United States 
     Code, during fiscal year 2001 the Secretary of the Navy may 
     dispose of a gift accepted before the date of the enactment 
     of this Act for the United States Naval Academy by disbursing 
     from the United States Naval Academy general gift fund to an 
     entity designated by the donor of the gift the amount equal 
     to the current cash value of that gift.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of emergency supplemental appropriations for 
              fiscal year 2000.
Sec. 1004. United States contribution to NATO common-funded budgets in 
              fiscal year 2001.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping 
              operations for fiscal year 2001.
Sec. 1006. Requirement for prompt payment of contract vouchers.
Sec. 1007. Plan for prompt recording of obligations of funds for 
              contractual transactions.
Sec. 1008. Electronic submission and processing of claims for contract 
              payments.
Sec. 1009. Administrative offsets for overpayment of transportation 
              costs.
Sec. 1010. Interest penalties for late payment of interim payments due 
              under Government service contracts.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Revisions to national defense features program.
Sec. 1012. Sense of Congress on the naming of the CVN-77 aircraft 
              carrier.
Sec. 1013. Authority to transfer naval vessels to certain foreign 
              countries.
Sec. 1014. Authority to consent to retransfer of alternative former 
              naval vessel by Government of Greece.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority to provide support for counter-drug 
              activities of Colombia.
Sec. 1022. Report on Department of Defense expenditures to support 
              foreign counter-drug activities.
Sec. 1023. Recommendations on expansion of support for counter-drug 
              activities.
Sec. 1024. Review of riverine counter-drug program.
Sec. 1025. Report on tethered aerostat radar system.
Sec. 1026. Sense of Congress regarding use of Armed Forces for counter-
              drug and counter-terrorism activities.

         Subtitle D--Counterterrorism and Domestic Preparedness

Sec. 1031. Preparedness of military installation first responders for 
              incidents involving weapons of mass destruction.
Sec. 1032. Additional weapons of mass destruction civil support teams.
Sec. 1033. Authority to provide loan guarantees to improve domestic 
              preparedness to combat cyberterrorism.
Sec. 1034. Report on the status of domestic preparedness against the 
              threat of biological terrorism.
Sec. 1035  Report on strategy, policies, and programs to combat 
              domestic terrorism.

                      Subtitle E--Strategic Forces

Sec. 1041. Revised nuclear posture review.
Sec. 1042. Plan for the long-term sustainment and modernization of 
              United States strategic nuclear forces.

[[Page 21425]]

Sec. 1043. Modification of scope of waiver authority for limitation on 
              retirement or dismantlement of strategic nuclear delivery 
              systems.
Sec. 1044. Report on the defeat of hardened and deeply buried targets.
Sec. 1045. Sense of Congress on the maintenance of the strategic 
              nuclear triad.

            Subtitle F--Miscellaneous Reporting Requirements

Sec. 1051. Management review of working-capital fund activities.
Sec. 1052. Report on submarine rescue support vessels.
Sec. 1053. Report on Federal Government progress in developing 
              information assurance strategies.
Sec. 1054. Department of Defense process for decisionmaking in cases of 
              false claims.

           Subtitle G--Government Information Security Reform

Sec. 1061. Coordination of Federal information policy.
Sec. 1062. Responsibilities of certain agencies.
Sec. 1063. Relationship of Defense Information Assurance Program to 
              Government-wide information security program.
Sec. 1064. Technical and conforming amendments.
Sec. 1065. Effective date.

                      Subtitle H--Security Matters

Sec. 1071. Limitation on granting of security clearances.
Sec. 1072. Process for prioritizing background investigations for 
              security clearances for Department of Defense personnel 
              and defense contractor personnel.
Sec. 1073. Authority to withhold certain sensitive information from 
              public disclosure.
Sec. 1074. Expansion of authority to exempt geodetic products of the 
              Department of Defense from public disclosure.
Sec. 1075. Expenditures for declassification activities.
Sec. 1076. Enhanced access to criminal history record information for 
              national security and other purposes
Sec. 1077. Two-year extension of authority to engage in commercial 
              activities as security for intelligence collection 
              activities.
Sec. 1078. Coordination of nuclear weapons secrecy policies and 
              consideration of health of workers at former Department 
              of Defense nuclear facilities.

                       Subtitle I--Other Matters

Sec. 1081. Funds for administrative expenses under Defense Export Loan 
              Guarantee program.
Sec. 1082. Transit pass program for Department of Defense personnel in 
              poor air quality areas.
Sec. 1083. Transfer of Vietnam era TA-4 aircraft to nonprofit 
              foundation.
Sec. 1084. Transfer of 19th century cannon to museum.
Sec. 1085. Fees for providing historical information to the public.
Sec. 1086. Grants to American Red Cross for Armed Forces emergency 
              services.
Sec. 1087. Technical and clerical amendments.
Sec. 1088. Maximum size of parcel post packages transported overseas 
              for Armed Forces post offices.
Sec. 1089. Sense of Congress regarding tax treatment of members 
              receiving special pay for duty subject to hostile fire or 
              imminent danger.
Sec. 1090. Organization and management of Civil Air Patrol.
Sec. 1091. Additional duties for Commission to Assess United States 
              National Security Space Management and Organization.
Sec. 1092. Commission on the Future of the United States Aerospace 
              Industry.
Sec. 1093. Drug addiction treatment.
                     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 2001 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $2,000,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

       (a) Status of Classified Annex.--The Classified Annex 
     prepared by the committee of conference to accompany the 
     conference report on the bill H.R. 4205 of the One Hundred 
     Sixth Congress and transmitted to the President is hereby 
     incorporated into this Act.
       (b) Construction With Other Provisions of Act.--The amounts 
     specified in the Classified Annex are not in addition to 
     amounts authorized to be appropriated by other provisions of 
     this Act.
       (c) Limitation on Use of Funds.--Funds appropriated 
     pursuant to an authorization contained in this Act that are 
     made available for a program, project, or activity referred 
     to in the Classified Annex may only be expended for such 
     program, project, or activity in accordance with such terms, 
     conditions, limitations, restrictions, and requirements as 
     are set out for that program, project, or activity in the 
     Classified Annex.
       (d) Distribution of Classified Annex.--The President shall 
     provide for appropriate distribution of the Classified Annex, 
     or of appropriate portions of the annex, within the executive 
     branch of the Government.

     SEC. 1003. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL 
                   APPROPRIATIONS FOR FISCAL YEAR 2000.

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 2000 in the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) 
     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 
     the Emergency Supplemental Act, 2000 (division B of Public 
     Law 106-246) or in title IX of the Department of Defense 
     Appropriations Act, 2001 (Public Law 106-259).

     SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
                   BUDGETS IN FISCAL YEAR 2001.

       (a) Fiscal Year 2001 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 2001 
     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 2000, of funds appropriated for fiscal years 
     before fiscal year 2001 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), $743,000 for 
     the Civil Budget.
       (2) Of the amount provided in section 301(1), $181,981,000 
     for the Military Budget.
       (d) Definitions.--For purposes of this section:
       (1) Common-funded budgets of nato.--The term ``common-
     funded budgets of NATO'' means the Military Budget, the 
     Security Investment Program, and the Civil Budget of the 
     North Atlantic Treaty Organization (and any successor or 
     additional account or program of NATO).
       (2) Fiscal year 1998 baseline limitation.--The term 
     ``fiscal year 1998 baseline limitation'' means the maximum 
     annual amount of Department of Defense contributions for 
     common-funded budgets of NATO that is set forth as the annual 
     limitation in section 3(2)(C)(ii) of the resolution of the 
     Senate giving the advice and consent of the Senate to the 
     ratification of the Protocols to the North Atlantic Treaty of 
     1949 on the Accession of Poland, Hungary, and the Czech 
     Republic (as defined in section 4(7) of that resolution), 
     approved by the Senate on April 30, 1998.

     SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND KOSOVO 
                   PEACEKEEPING OPERATIONS FOR FISCAL YEAR 2001.

       (a) Limitation.--Of the amounts authorized to be 
     appropriated by section 301(24) for the Overseas Contingency 
     Operations Transfer Fund--
       (1) no more than $1,387,800,000 may be obligated for 
     incremental costs of the Armed Forces for Bosnia peacekeeping 
     operations; and
       (2) no more than $1,650,400,000 may be obligated for 
     incremental costs of the Armed Forces for Kosovo peacekeeping 
     operations.
       (b) Presidential Waiver.--The President may waive the 
     limitation in subsection (a)(1), or the limitation in 
     subsection (a)(2), after submitting to Congress the 
     following:
       (1) The President's written certification that the waiver 
     is necessary in the national security interests of the United 
     States.
       (2) The President's written certification that exercising 
     the waiver will not adversely affect the readiness of United 
     States military forces.
       (3) A report setting forth the following:
       (A) The reasons that the waiver is necessary in the 
     national security interests of the United States.
       (B) The specific reasons that additional funding is 
     required for the continued presence of

[[Page 21426]]

     United States military forces participating in, or 
     supporting, Bosnia peacekeeping operations, or Kosovo 
     peacekeeping operations, as the case may be, for fiscal year 
     2001.
       (C) A discussion of the impact on the military readiness of 
     United States Armed Forces of the continuing deployment of 
     United States military forces participating in, or 
     supporting, Bosnia peacekeeping operations, or Kosovo 
     peacekeeping operations, as the case may be.
       (4) A supplemental appropriations request for the 
     Department of Defense for such amounts as are necessary for 
     the additional fiscal year 2001 costs associated with United 
     States military forces participating in, or supporting, 
     Bosnia or Kosovo peacekeeping operations.
       (c) Peacekeeping Operations Defined.--For the purposes of 
     this section:
       (1) The term ``Bosnia peacekeeping operations'' has the 
     meaning given such term in section 1004(e) of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261; 112 Stat. 2112).
       (2) The term ``Kosovo peacekeeping operations''--
       (A) means the operation designated as Operation Joint 
     Guardian and any other operation involving the participation 
     of any of the Armed Forces in peacekeeping or peace 
     enforcement activities in and around Kosovo; and
       (B) includes, with respect to Operation Joint Guardian or 
     any such other operation, each activity that is directly 
     related to the support of the operation.

     SEC. 1006. REQUIREMENT FOR PROMPT PAYMENT OF CONTRACT 
                   VOUCHERS.

       (a) Requirement.--(1) Chapter 131 of title 10, United 
     States Code, is amended by adding after section 2225, as 
     added by section 812(a)(1), the following new section:

     ``Sec. 2226. Contracted property and services: prompt payment 
       of vouchers

       ``(a) Requirement.--Of the contract vouchers that are 
     received by the Defense Finance and Accounting Service by 
     means of the mechanization of contract administration 
     services system, the number of such vouchers that remain 
     unpaid for more than 30 days as of the last day of each month 
     may not exceed 5 percent of the total number of the contract 
     vouchers so received that remain unpaid on that day.
       ``(b) Contract Voucher Defined.--In this section, the term 
     `contract voucher' means a voucher or invoice for the payment 
     to a contractor for services, commercial items (as defined in 
     section 4(12) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 403(12))), or other deliverable items provided by 
     the contractor under a contract funded by the Department of 
     Defense.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item relating to section 2225, 
     as added by section 812(a)(2), the following new item:

``2226. Contracted property and services: prompt payment of 
              vouchers.''.

       (b) Effective Date.--Section 2226 of title 10, United 
     States Code (as added by subsection (a)), shall take effect 
     on December 1, 2000.
       (c) Conditional Requirement for Report.--(1) If for any 
     month of the noncompliance reporting period the requirement 
     in section 2226 of title 10, United States Code (as added by 
     subsection (a)), is not met, the Secretary of Defense shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a report on the magnitude of the unpaid 
     contract vouchers. The report for a month shall be submitted 
     not later than 30 days after the end of that month.
       (2) A report for a month under paragraph (1) shall include 
     information current as of the last day of the month as 
     follows:
       (A) The number of the vouchers received by the Defense 
     Finance and Accounting Service by means of the mechanization 
     of contract administration services system during each month.
       (B) The number of the vouchers so received, whenever 
     received by the Defense Finance and Accounting Service, that 
     remain unpaid for each of the following periods:
       (i) Over 30 days and not more than 60 days.
       (ii) Over 60 days and not more than 90 days.
       (iii) More than 90 days.
       (C) The number of the vouchers so received that remain 
     unpaid for the major categories of procurements, as defined 
     by the Secretary of Defense.
       (D) The corrective actions that are necessary, and those 
     that are being taken, to ensure compliance with the 
     requirement in subsection (a).
       (3) For purposes of this subsection:
       (A) The term ``noncompliance reporting period'' means the 
     period beginning on December 1, 2000, and ending on November 
     30, 2004.
       (B) The term ``contract voucher'' has the meaning given 
     that term in section 2226(b) of title 10, United States Code 
     (as added by subsection (a)).

     SEC. 1007. PLAN FOR PROMPT RECORDING OF OBLIGATIONS OF FUNDS 
                   FOR CONTRACTUAL TRANSACTIONS.

       (a) Requirement for Plan.--The Secretary of Defense shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives, not later than November 15, 
     2000, a plan for ensuring that each obligation of the 
     Department of Defense under a transaction described in 
     subsection (c) be recorded in the appropriate financial 
     administration systems of the Department of Defense not later 
     than 10 days after the date on which the obligation is 
     incurred.
       (b) Content of Plan.--The plan under subsection (a) shall 
     provide for the following:
       (1) The recording of obligations in accordance with 
     requirements that apply uniformly throughout the Department 
     of Defense, including requirements for the recording of 
     detailed data on each such obligation.
       (2) A system of accounting classification reference numbers 
     for the recording of obligations that applies uniformly 
     throughout the Department of Defense.
       (3) A discussion of how the plan is to be implemented, 
     including a schedule for implementation.
       (c) Covered Transactions.--The plan shall apply to each 
     obligation under any of the following transactions of the 
     Department of Defense:
       (1) A contract.
       (2) A grant.
       (3) A cooperative agreement.
       (4) A transaction authorized under section 2371 of title 
     10, United States Code.

     SEC. 1008. ELECTRONIC SUBMISSION AND PROCESSING OF CLAIMS FOR 
                   CONTRACT PAYMENTS.

       (a) Requirements.--(1) Chapter 131 of title 10, United 
     States Code, is amended by adding after section 2226, as 
     added by section 1006(a)(1), the following new section:

     ``Sec. 2227. Electronic submission and processing of claims 
       for contract payments

       ``(a) Submission of Claims.--The Secretary of Defense shall 
     require that any claim for payment under a Department of 
     Defense contract shall be submitted to the Department of 
     Defense in electronic form.
       ``(b) Processing.--A contracting officer, contract 
     administrator, certifying official, or other officer or 
     employee of the Department of Defense who receives a claim 
     for payment in electronic form in accordance with subsection 
     (a) and is required to transmit the claim to any other 
     officer or employee of the Department of Defense for 
     processing under procedures of the department shall transmit 
     the claim and any additional documentation necessary to 
     support the determination and payment of the claim to such 
     other officer or employee electronically.
       ``(c) Waiver Authority.--If the Secretary of Defense 
     determines that the requirement for using electronic means 
     for submitting claims under subsection (a), or for 
     transmitting claims and supporting documentation under 
     subsection (b), is unduly burdensome in any category of 
     cases, the Secretary may exempt the cases in that category 
     from the application of the requirement.
       ``(d) Implementation of Requirements.--In implementing 
     subsections (a) and (b), the Secretary of Defense shall 
     provide for the following:
       ``(1) Policies, requirements, and procedures for using 
     electronic means for the submission of claims for payment to 
     the Department of Defense and for the transmission, between 
     Department of Defense officials, of claims for payment 
     received in electronic form, together with supporting 
     documentation (such as receiving reports, contracts and 
     contract modifications, and required certifications).
       ``(2) The format in which information can be accepted by 
     the corporate database of the Defense Finance and Accounting 
     Service.
       ``(3) The requirements to be included in contracts 
     regarding the electronic submission of claims for payment by 
     contractors.
       ``(e) Claim for Payment Defined.--In this section, the term 
     `claim for payment' means an invoice or any other demand or 
     request for payment.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item relating to section 2226, 
     as added by section 1006(a)(2), the following new item:

``2227. Electronic submission and processing of claims for contract 
              payments.''.

       (b) Implementation Plan.--Not later than March 30, 2001, 
     the Secretary of Defense shall submit to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     a plan for the implementation of the requirements imposed 
     under section 2227 of title 10, United States Code (as added 
     by subsection (a)). The plan shall provide for each of the 
     matters specified in subsection (d) of that section.
       (c) Applicability.--(1) Subject to paragraph (2), the 
     Secretary of Defense shall apply section 2227 of title 10, 
     United States Code (as added by subsection (a)), with respect 
     to contracts for which solicitations of offers are issued 
     after June 30, 2001.
       (2)(A) The Secretary may delay the implementation of 
     section 2227 to a date after June 30, 2001, upon a finding 
     that it is impracticable to implement that section until that 
     later date. In no event, however, may the implementation be 
     delayed to a date after October 1, 2002.
       (B) Upon determining to delay the implementation of such 
     section 2227 to a later date under subparagraph (A), the 
     Secretary shall promptly publish a notice of the delay in the 
     Federal Register. The notice shall include a specification of 
     the later date on which the implementation of that section is 
     to begin. Not later than 30 days before the later 
     implementation date, the Secretary shall publish in the 
     Federal Register another notice that such section is being 
     implemented beginning on that date.

     SEC. 1009. ADMINISTRATIVE OFFSETS FOR OVERPAYMENT OF 
                   TRANSPORTATION COSTS.

       (a) Offsets for Overpayments or Liquidated Damages.--(1) 
     Section 2636 of title 10, United States Code, is amended to 
     read as follows:

[[Page 21427]]



     ``Sec. 2636. Deductions from amounts due carriers

       ``(a) Amounts for Loss or Damage.--An amount deducted from 
     an amount due a carrier shall be credited as follows:
       ``(1) If deducted because of loss of or damage to material 
     in transit for a military department, the amount shall be 
     credited to the proper appropriation, account, or fund from 
     which the same or similar material may be replaced.
       ``(2) If deducted as an administrative offset for an 
     overpayment previously made to the carrier under any 
     Department of Defense contract for transportation services or 
     as liquidated damages due under any such contract, the amount 
     shall be credited to the appropriation or account from which 
     payments for the transportation services were made.
       ``(b) Simplified Offset for Collection of Claims Not in 
     Excess of the Simplified Acquisition Threshold.--(1) In any 
     case in which the total amount of a claim for the recovery of 
     overpayments or liquidated damages under a contract described 
     in subsection (a)(2) does not exceed the simplified 
     acquisition threshold, the Secretary of Defense or the 
     Secretary concerned, in exercising the authority to collect 
     the claim by administrative offset under section 3716 of 
     title 31, may apply paragraphs (2) and (3) of subsection (a) 
     of that section with respect to that collection after (rather 
     than before) the claim is so collected.
       ``(2) Regulations prescribed by the Secretary of Defense 
     under subsection (b) of section 3716 of title 31--
       ``(A) shall include provisions to carry out paragraph (1); 
     and
       ``(B) shall provide the carrier for a claim subject to 
     paragraph (1) with an opportunity to offer an alternative 
     method of repaying the claim (rather than by administrative 
     offset) if the collection of the claim by administrative 
     offset has not already been made.
       ``(3) In this subsection, the term `simplified acquisition 
     threshold' has the meaning given that term in section 4(11) 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     403(11)).''.
       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 157 of such title is 
     amended to read as follows:

``2636. Deductions from amounts due carriers.''.

       (b) Effective Date.--Subsections (a)(2) and (b) of section 
     2636 of title 10, United States Code, as added by subsection 
     (a)(1), shall apply with respect to contracts entered into 
     after the date of the enactment of this Act.

     SEC. 1010. INTEREST PENALTIES FOR LATE PAYMENT OF INTERIM 
                   PAYMENTS DUE UNDER GOVERNMENT SERVICE 
                   CONTRACTS.

       (a) Prompt Payment Requirement for Interim Payments.--Under 
     regulations prescribed under subsection (c), the head of an 
     agency acquiring services from a business concern under a 
     cost reimbursement contract requiring interim payments who 
     does not pay the concern a required interim payment by the 
     date that is 30 days after the date of the receipt of a 
     proper invoice shall pay an interest penalty to the concern 
     on the amount of the payment due. The interest shall be 
     computed as provided in section 3902(a) of title 31, United 
     States Code.
       (b) Regulations.--The Director of the Office of Management 
     and Budget shall prescribe regulations to carry out this 
     section. Such regulations shall be prescribed as part of the 
     regulations prescribed under section 3903 of title 31, United 
     States Code.
       (c) Incorporation of Certain Provisions of Law.--The 
     provisions of chapter 39 of title 31, United States Code, 
     shall apply to this section in the same manner as if this 
     section were enacted as part of such chapter.
       (d) Effective Date.--Subsection (a) shall take effect on 
     December 15, 2000. No interest shall accrue by reason of that 
     subsection for any period before that date.
                Subtitle B--Naval Vessels and Shipyards

     SEC. 1011. REVISIONS TO NATIONAL DEFENSE FEATURES PROGRAM.

       Section 2218(k) of title 10, United States Code, is 
     amended--
       (1) by adding at the end of paragraph (1) the following new 
     sentence: ``As consideration for a contract with the head of 
     an agency under this subsection, the company entering into 
     the contract shall agree with the Secretary of Defense to 
     make any vessel covered by the contract available to the 
     Secretary, fully crewed and ready for sea, at any time at any 
     port determined by the Secretary, and for whatever duration 
     the Secretary determines necessary.'';
       (2) by adding at the end of paragraph (2) the following new 
     subparagraph:
       ``(E) Payments of such sums as the Government would 
     otherwise expend, if the vessel were placed in the Ready 
     Reserve Fleet, for maintaining the vessel in the status 
     designated as `ROS-4 status' in the Ready Reserve Fleet for 
     25 years.''; and
       (3) by adding at the end the following new paragraph:
       ``(6) The head of an agency may not enter into a contract 
     under paragraph (1) that would provide for payments to the 
     contractor as authorized in paragraph (2)(E) until notice of 
     the proposed contract is submitted to the congressional 
     defense committees and a period of 90 days has elapsed.''.

     SEC. 1012. SENSE OF CONGRESS ON THE NAMING OF THE CVN-77 
                   AIRCRAFT CARRIER.

       (a) Findings.--Congress makes the following findings:
       (1) Over the last three decades Congress has authorized and 
     appropriated funds for a total of 10 Nimitz class aircraft 
     carriers.
       (2) The last vessel in the Nimitz class of aircraft 
     carriers, CVN-77, is currently under construction and will be 
     delivered in 2008.
       (3) The first nine vessels in this class bear the following 
     proud names:
       (A) U.S.S. Nimitz (CVN-68).
       (B) U.S.S. Dwight D. Eisenhower (CVN-69).
       (C) U.S.S. Carl Vinson (CVN-70).
       (D) U.S.S. Theodore Roosevelt (CVN-71).
       (E) U.S.S. Abraham Lincoln (CVN-72).
       (F) U.S.S. George Washington (CVN-73).
       (G) U.S.S. John C. Stennis (CVN-74).
       (H) U.S.S. Harry S. Truman (CVN-75).
       (I) U.S.S. Ronald Reagan (CVN-76).
       (4) It is appropriate for Congress to recommend to the 
     President, as Commander in Chief of the Armed Forces, an 
     appropriate name for the final vessel in the Nimitz class of 
     aircraft carriers.
       (5) Over the last 25 years the vessels in the Nimitz class 
     of aircraft carriers have served as one of the principal 
     means of United States diplomacy and as one of the principal 
     means for the defense of the United States and its allies 
     around the world.
       (6) The name bestowed upon the aircraft carrier CVN-77 
     should embody the American spirit and provide a lasting 
     symbol of the American commitment to freedom.
       (7) The name ``Lexington'' has been a symbol of freedom 
     from the first battle of the American Revolution.
       (8) The two aircraft carriers previously named U.S.S. 
     Lexington (the CV-2 and the CV-16) served the Nation for 64 
     years, served in World War II, and earned a total of 13 
     battle stars.
       (9) One of those honored vessels, the CV-2, was lost at the 
     Battle of the Coral Sea on May 8, 1942.
       (b) Sense of Congress.--It is the sense of Congress that 
     the CVN-77 aircraft carrier should be named the ``U.S.S. 
     Lexington''--
       (1) in order to honor the men and women who served in the 
     Armed Forces of the United States during World War II and the 
     incalculable number of United States citizens on the home 
     front during that war who mobilized in the name of freedom; 
     and
       (2) as a special tribute to the 16,000,000 veterans of the 
     Armed Forces who served on land, sea, and air during World 
     War II (of whom fewer than 6,000,000 remain alive today) and 
     a lasting symbol of their commitment to freedom as they pass 
     on having proudly taken their place in history.

     SEC. 1013. 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) Brazil.--To the Government of Brazil--
       (A) the THOMASTON class dock landing ships ALAMO (LSD 33) 
     and HERMITAGE (LSD 34); and
       (B) the GARCIA class frigates BRADLEY (FF 1041), DAVIDSON 
     (FF 1045), SAMPLE (FF 1048) and ALBERT DAVID (FF 1050).
       (2) Greece.--To the Government of Greece, the KNOX class 
     frigates VREELAND (FF 1068) and TRIPPE (FF 1075).
       (b) Transfers on a Combined Lease-Sale Basis.--(1) The 
     President is authorized to transfer vessels to foreign 
     countries on a combined lease-sale basis under sections 61 
     and 21 of the Arms Export Control Act (22 U.S.C. 2796 and 
     2761) and in accordance with subsection (c) as follows:
       (A) Chile.--To the Government of Chile, the OLIVER HAZARD 
     PERRY class guided missile frigates WADSWORTH (FFG 9), and 
     ESTOCIN (FFG 15).
       (B) Turkey.--To the Government of Turkey, the OLIVER HAZARD 
     PERRY class guided missile frigates JOHN A. MOORE (FFG 19) 
     and FLATLEY (FFG 21).
       (2) The authority provided under paragraph (1)(B) is in 
     addition to the authority provided under section 1018(a)(9) 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65; 113 Stat. 745) for the transfer of 
     those vessels to the Government of Turkey on a sale basis 
     under section 21 of the Arms Export Control Act (22 U.S.C. 
     2761).
       (c) Conditions Relating to Combined Lease-Sale Transfers.--
     A transfer of a vessel on a combined lease-sale basis 
     authorized by subsection (b) shall be made in accordance with 
     the following requirements:
       (1) The President may initially transfer the vessel by 
     lease, with lease payments suspended for the term of the 
     lease, if the country entering into the lease for the vessel 
     simultaneously enters into a foreign military sales agreement 
     for the transfer of title to the vessel.
       (2) The President may not deliver to the purchasing country 
     title to the vessel until the purchase price of the vessel 
     under such a foreign military sales agreement is paid in 
     full.
       (3) Upon payment of the purchase price in full under such a 
     sales agreement and delivery of title to the recipient 
     country, the President shall terminate the lease.
       (4) If the purchasing country fails to make full payment of 
     the purchase price in accordance with the sales agreement by 
     the date required under the sales agreement--
       (A) the sales agreement shall be immediately terminated;
       (B) the suspension of lease payments under the lease shall 
     be vacated; and
       (C) the United States shall be entitled to retain all funds 
     received on or before the date of the termination under the 
     sales agreement, up to the amount of the lease payments due 
     and payable under the lease and all other costs required by 
     the lease to be paid to that date.

[[Page 21428]]

       (5) If a sales agreement is terminated pursuant to 
     paragraph (4), the United States shall not be required to pay 
     any interest to the recipient country on any amount paid to 
     the United States by the recipient country under the sales 
     agreement and not retained by the United States under the 
     lease.
       (d) Authorization of Appropriations for Costs of Lease-Sale 
     Transfers.--There is hereby authorized to be appropriated 
     into the Defense Vessels Transfer Program Account such sums 
     as may be necessary for paying the costs (as defined in 
     section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 
     661a)) of the lease-sale transfers authorized by subsection 
     (b). Amounts so appropriated shall be available only for the 
     purpose of paying those costs.
       (e) 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.
       (f) Costs of Transfers.--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)).
       (g) 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.
       (h) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the two-
     year period beginning on the date of the enactment of this 
     Act.
       (i) Coordination of Provisions.--(1) If the Security 
     Assistance Act of 2000 is enacted before this Act, the 
     provisions of this section shall not take effect.
       (2) If the Security Assistance Act of 2000 is enacted after 
     this Act, this section shall cease to be in effect upon the 
     enactment of that Act.

     SEC. 1014. AUTHORITY TO CONSENT TO RETRANSFER OF ALTERNATIVE 
                   FORMER NAVAL VESSEL BY GOVERNMENT OF GREECE.

       (a) Authority for Retransfer of Alternative Vessel.--
     Section 1012 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 740) is 
     amended--
       (1) in subsection (a), by inserting after ``HS Rodos (ex-
     USS BOWMAN COUNTY (LST 391))'' the following: ``, LST 325, or 
     any other former United States LST previously transferred to 
     the Government of Greece that is excess to the needs of that 
     government''; and
       (2) in subsection (b)(1), by inserting ``retransferred 
     under subsection (a)'' after ``the vessel''.
       (b) Repeal.--Section 1305 of the Arms Control, 
     Nonproliferation, and Security Assistance Act of 1999 (113 
     Stat. 1501A-511) is repealed.
                  Subtitle C--Counter-Drug Activities

     SEC. 1021. EXTENSION OF AUTHORITY TO PROVIDE SUPPORT FOR 
                   COUNTER-DRUG ACTIVITIES OF COLOMBIA.

       (a) Extension of Authority.--Section 1033 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 1881) is amended--
       (1) in subsection (a), by striking ``during fiscal years 
     1998 through 2002,''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by inserting before the period at the 
     end the following: ``, for fiscal years 1998 through 2002''; 
     and
       (B) in paragraph (2), by inserting before the period at the 
     end the following: ``, for fiscal years 1998 through 2006''.
       (b) Maximum Annual Amount of Support.--Subsection (e)(2) of 
     such section is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 1022. REPORT ON DEPARTMENT OF DEFENSE EXPENDITURES TO 
                   SUPPORT FOREIGN COUNTER-DRUG ACTIVITIES.

       Not later than January 1, 2001, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     detailing the expenditure of funds by the Secretary during 
     fiscal year 2000 in direct or indirect support of the 
     counter-drug activities of foreign governments. The report 
     shall include the following for each foreign government:
       (1) The total amount of assistance provided to, or expended 
     on behalf of, the foreign government.
       (2) A description of the types of counter-drug activities 
     conducted using the assistance.
       (3) An explanation of the legal authority under which the 
     assistance was provided.

     SEC. 1023. RECOMMENDATIONS ON EXPANSION OF SUPPORT FOR 
                   COUNTER-DRUG ACTIVITIES.

       (a) Requirement for Submittal of Recommendations.--Not 
     later than February 1, 2001, the Secretary of Defense shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives the recommendations of the 
     Secretary regarding whether expanded support for counter-drug 
     activities should be authorized under section 1033 of the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 1881) for the region that 
     includes the countries that are covered by that authority on 
     the date of the enactment of this Act.
       (b) Content of Submission.--The submission under subsection 
     (a) shall include the following:
       (1) What, if any, additional countries should be covered.
       (2) What, if any, additional support should be provided to 
     covered countries, together with the reasons for recommending 
     the additional support.
       (3) For each country recommended under paragraph (1), a 
     plan for providing support, including the counter-drug 
     activities proposed to be supported.

     SEC. 1024. REVIEW OF RIVERINE COUNTER-DRUG PROGRAM.

       (a) Requirement for Review.--The Secretary of Defense shall 
     review the riverine counter-drug program supported under 
     section 1033 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881).
       (b) Report.--Not later than February 1, 2001, the Secretary 
     shall submit a report on the riverine counter-drug program to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives. The report shall include, for each 
     country receiving support under the riverine counter-drug 
     program, the following:
       (1) The Assistant Secretary's assessment of the 
     effectiveness of the program.
       (2) A recommendation regarding which of the Armed Forces, 
     units of the Armed Forces, or other organizations within the 
     Department of Defense should be responsible for managing the 
     program.
       (c) Delegation of Authority.--The Secretary shall require 
     the Assistant Secretary of Defense for Special Operations and 
     Low Intensity Conflict to carry out the responsibilities 
     under this section.

     SEC. 1025. REPORT ON TETHERED AEROSTAT RADAR SYSTEM.

       (a) Report Required.--Not later than May 1, 2001, The 
     Secretary of Defense shall submit to Congress a report on the 
     status of the Tethered Aerostat Radar System used to conduct 
     counter-drug detection and monitoring and border security and 
     air sovereignty operations. The report shall include the 
     following:
       (1) The status and operational availability of each of the 
     existing sites of the Tethered Aerostat Radar System.
       (2) A discussion of any plans to close, during the next 5 
     years, currently operational sites, including a review of the 
     justification for each proposed closure.
       (3) A review of the requirements of other agencies, 
     especially the United States Customs Service, for data 
     derived from the Tethered Aerostat Radar System.
       (4) A assessment of the value of the Tethered Aerostat 
     Radar System in the conduct of counter-drug detection and 
     monitoring and border security and air sovereignty operations 
     compared to other surveillance systems available for such 
     operations.
       (5) The costs associated with the planned standardization 
     of the Tethered Aerostat Radar System and the Secretary's 
     analysis of that standardization.
       (b) Consultation.--The Secretary of Defense shall prepare 
     the report in consultation with the Secretary of the 
     Treasury.

     SEC. 1026. SENSE OF CONGRESS REGARDING USE OF ARMED FORCES 
                   FOR COUNTER-DRUG AND COUNTER-TERRORISM 
                   ACTIVITIES.

       It is the sense of Congress that the President should be 
     able to use members of the Army, Navy, Air Force, and Marine 
     Corps to assist law enforcement agencies, to the full extent 
     consistent with section 1385 of title 18, United States Code 
     (commonly known as the Posse Comitatus Act), section 375 of 
     title 10, United States Code, and other applicable law, in 
     preventing the entry into the United States of terrorists and 
     drug traffickers, weapons of mass destruction, components of 
     weapons of mass destruction, and prohibited narcotics and 
     drugs.
         Subtitle D--Counterterrorism and Domestic Preparedness

     SEC. 1031. PREPAREDNESS OF MILITARY INSTALLATION FIRST 
                   RESPONDERS FOR INCIDENTS INVOLVING WEAPONS OF 
                   MASS DESTRUCTION.

       (a) Requirement for Report.--Not later than 90 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a report on the program of 
     the Department of Defense to ensure the preparedness of the 
     first responders of the Department of Defense for incidents 
     involving weapons of mass destruction on installations of the 
     Department of Defense.
       (b) Content of Report.--The report shall include the 
     following:
       (1) A detailed description of the overall preparedness 
     program.
       (2) A detailed description of the deficiencies in the 
     preparedness of Department of Defense installations to 
     respond to an incident involving a weapon of mass 
     destruction, together with a discussion of the actions 
     planned to be taken by the Department of Defense to correct 
     the deficiencies.
       (3) The schedule and costs associated with the 
     implementation of the preparedness program.
       (4) The Department's plan for coordinating the preparedness 
     program with responders in the communities in the localities 
     of the installations.
       (5) The Department's plan for promoting the 
     interoperability of the equipment used by the installation 
     first responders referred to in subsection (a) with the 
     equipment used by the first responders in those communities.

[[Page 21429]]

       (c) Form of Report.--The report shall be submitted in an 
     unclassified form, but may include a classified annex.
       (d) Definitions.--In this section:
       (1) The term ``first responder'' means an organization 
     responsible for responding to an incident involving a weapon 
     of mass destruction.
       (2) The term ``weapon of mass destruction'' has the meaning 
     given that term in section 1403(1) of the Defense Against 
     Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).

     SEC. 1032. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL 
                   SUPPORT TEAMS.

       During fiscal year 2001, the Secretary of Defense shall 
     establish five additional teams designated as Weapons of Mass 
     Destruction Civil Support Teams (for a total of 32 such 
     teams).

     SEC. 1033. AUTHORITY TO PROVIDE LOAN GUARANTEES TO IMPROVE 
                   DOMESTIC PREPAREDNESS TO COMBAT CYBERTERRORISM.

       (a) Establishment of Program.--(1) Chapter 148 of title 10, 
     United States Code, is amended by adding at the end the 
     following new subchapter:

  ``SUBCHAPTER VII--CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

``Sec.
``2541. Establishment of loan guarantee program.
``2541a. Fees charged and collected.
``2541b. Administration.
``2541c. Transferability, additional limitations, and definition.
``2541d. Reports.

     ``Sec. 2541. Establishment of loan guarantee program

       ``(a) Establishment.--In order to meet the national 
     security objectives in section 2501(a) of this title, the 
     Secretary of Defense shall establish a program under which 
     the Secretary may issue guarantees assuring lenders against 
     losses of principal or interest, or both principal and 
     interest, for loans made to qualified commercial firms to 
     fund, in whole or in part, any of the following activities:
       (1) The improvement of the protection of the critical 
     infrastructure of the commercial firms.
       (2) The refinancing of improvements previously made to the 
     protection of the critical infrastructure of the commercial 
     firms.
       ``(b) Qualified Commercial Firms.--For purposes of this 
     section, a qualified commercial firm is a company or other 
     business entity (including a consortium of such companies or 
     other business entities, as determined by the Secretary) that 
     the Secretary determines--
       ``(1) conducts a significant level of its research, 
     development, engineering, and manufacturing activities in the 
     United States;
       ``(2) is a company or other business entity the majority 
     ownership or control of which is by United States citizens or 
     is a company or other business of a parent company that is 
     incorporated in a country the government of which--
       ``(A) encourages the participation of firms so owned or 
     controlled in research and development consortia to which the 
     government of that country provides funding directly or 
     provides funding indirectly through international 
     organizations or agreements; and
       ``(B) affords adequate and effective protection for the 
     intellectual property rights of companies incorporated in the 
     United States;
       ``(3) provides technology products or services critical to 
     the operations of the Department of Defense;
       ``(4) meets standards of prevention of cyberterrorism 
     applicable to the Department of Defense; and
       ``(5) agrees to submit the report required under section 
     2541d of this title.
       ``(c) Loan Limits.--The maximum amount of loan principal 
     guaranteed during a fiscal year under this section may not 
     exceed $10,000,000, with respect to all borrowers.
       ``(d) Goals and Standards.--The Secretary shall prescribe 
     regulations setting forth goals for the use of the loan 
     guarantees provided under this section and standards for 
     evaluating whether those goals are met by each entity 
     receiving such loan guarantees.
       ``(e) Authority Subject to Provisions of Appropriations.--
     The Secretary may guarantee a loan under this subchapter only 
     to such extent or in such amounts as may be provided in 
     advance in appropriations Acts.

     ``Sec. 2541a. Fees charged and collected

       ``(a) Fee Required.--The Secretary of Defense shall assess 
     a fee for providing a loan guarantee under this subchapter.
       ``(b) Amount of Fee.--The amount of the fee shall be not 
     less than 75 percent of the amount incurred by the Secretary 
     to provide the loan guarantee.
       ``(c) Special Account.--(1) Such fees shall be credited to 
     a special account in the Treasury.
       ``(2) Amounts in the special account shall be available, to 
     the extent and in amounts provided in appropriations Acts, 
     for paying the costs of administrative expenses of the 
     Department of Defense that are attributable to the loan 
     guarantee program under this subchapter.
       ``(3)(A) If for any fiscal year amounts in the special 
     account established under paragraph (1) are not available (or 
     are not anticipated to be available) in a sufficient amount 
     for administrative expenses of the Department of Defense for 
     that fiscal year that are directly attributable to the 
     administration of the program under this subchapter, the 
     Secretary may use amounts currently available for operations 
     and maintenance for Defense-wide activities, not to exceed 
     $500,000 in any fiscal year, for those expenses.
       ``(B) The Secretary shall, from funds in the special 
     account established under paragraph (1), replenish operations 
     and maintenance accounts for amounts expended under 
     subparagraph (A).

     ``Sec. 2541b. Administration

       ``(a) Agreements Required.--The Secretary of Defense may 
     enter into one or more agreements, each with an appropriate 
     Federal or private entity, under which such entity may, under 
     this subchapter--
       ``(1) process applications for loan guarantees;
       ``(2) administer repayment of loans; and
       ``(3) provide any other services to the Secretary to 
     administer this subchapter.
       ``(b) Treatment of Costs.--The costs of such agreements 
     shall be considered, for purposes of the special account 
     established under section 2541a(c), to be costs of 
     administrative expenses of the Department of Defense that are 
     attributable to the loan guarantee program under this 
     subchapter.

     ``Sec. 2541c. Transferability, additional limitations, and 
       definition

       ``The following provisions of subtitle VI of this chapter 
     apply to guarantees issued under this subtitle:
       ``(1) Section 2540a, relating to transferability of 
     guarantees.
       ``(2) Subsections (b) and (c) of section 2540b, providing 
     limitations.
       ``(3) Section 2540d(2), providing a definition of the term 
     `cost'.

     ``Sec. 2541d. Reports

       ``(a) Report by Commercial Firms to Secretary of Defense.--
     The Secretary of Defense shall require each qualified 
     commercial firm for which a loan is guaranteed under this 
     subchapter to submit to the Secretary a report on the 
     improvements financed or refinanced with the loan. The report 
     shall include an assessment of the value of the improvements 
     for the protection of the critical infrastructure of that 
     commercial firm. The Secretary shall prescribe the time for 
     submitting the report.
       ``(b) Annual Report by Secretary of Defense to Congress.--
     Not later than March 1 of each year in which guarantees are 
     made under this subchapter, the Secretary of Defense shall 
     submit to Congress a report on the loan guarantee program 
     under this subchapter. The report shall include the 
     following:
       ``(1) The amounts of the loans for which guarantees were 
     issued during the year preceding the year of the report.
       ``(2) The success of the program in improving the 
     protection of the critical infrastructure of the commercial 
     firms covered by the guarantees.
       ``(3) The relationship of the loan guarantee program to the 
     critical infrastructure protection program of the Department 
     of Defense, together with an assessment of the extent to 
     which the loan guarantee program supports the critical 
     infrastructure protection program.
       ``(4) Any other information on the loan guarantee program 
     that the Secretary considers appropriate to include in the 
     report.''.
       (2) The table of subchapters at the beginning of such 
     chapter is amended by adding at the end the following new 
     item:

``VII. Critical Infrastructure Protection Loan Guarantees...2541''.....

       (b) Redesignation of Displaced Sections.--(1) Sections 2541 
     through 2554 of chapter 152 of title 10, United States Code, 
     are redesignated as sections 2551 through 2564, respectively.
       (2) The items in the table of sections at the beginning of 
     chapter 152 of such title are revised to reflect the 
     redesignations made by paragraph (1).
       (c) Conforming Amendments.--(1) Subsection (c)(3)(C) of 
     section 2561 of such title, as redesignated by subsection 
     (b), is amended by striking ``section 2547'' and inserting 
     ``section 2557''.
       (2) Subsection (b) of section 2562 of such title, as so 
     redesignated, is amended by striking ``section 2547'' and 
     inserting ``section 2557''.
       (3) Section 7300 of such title is amended by striking 
     ``section 2553'' and inserting ``section 2563''.

     SEC. 1034. REPORT ON THE STATUS OF DOMESTIC PREPAREDNESS 
                   AGAINST THE THREAT OF BIOLOGICAL TERRORISM.

       (a) Report Required.--Not later than March 31, 2001, the 
     President shall submit to Congress a report on domestic 
     preparedness against the threat of biological terrorism.
       (b) Report Elements.--The report shall address the 
     following:
       (1) The current state of United States preparedness to 
     defend against a biologic attack.
       (2) The roles that various Federal agencies currently play, 
     and should play, in preparing for, and defending against, 
     such an attack.
       (3) The roles that State and local agencies and public 
     health facilities currently play, and should play, in 
     preparing for, and defending against, such an attack.
       (4) The advisability of establishing an intergovernmental 
     task force to assist in preparations for such an attack.
       (5) The potential role of advanced communications systems 
     in aiding domestic preparedness against such an attack.
       (6) The potential for additional research and development 
     in biotechnology to aid domestic preparedness against such an 
     attack.
       (7) Other measures that should be taken to aid domestic 
     preparedness against such an attack.
       (8) The financial resources necessary to support efforts 
     for domestic preparedness against such an attack.

[[Page 21430]]

       (9) The deficiencies and vulnerabilities in the United 
     States public health system for dealing with the consequences 
     of a biological terrorist attack on the United States, and 
     current plans to address those deficiencies and 
     vulnerabilities.
       (c) Intelligence Estimate.--(1) Not later than March 1, 
     2001, the Secretary of Defense shall submit to Congress an 
     intelligence estimate, prepared in consultation with the 
     Director of Central Intelligence, containing--
       (A) an assessment of the threat to the United States posed 
     by a terrorist using a biological weapon; and
       (B) an assessment of the relative consequences of an attack 
     against the United States by a terrorist using a biological 
     weapon compared with the consequences of an attack against 
     the United States by a terrorist using a weapon that is a 
     weapon of mass destruction other than a biological weapon or 
     that is a conventional weapon.
       (2) The intelligence estimate submitted under paragraph (1) 
     shall include a comparison of--
       (A) the likelihood of the threat of a terrorist attack 
     against the United States through the use of a biological 
     weapon, with
       (B) the likelihood of the threat of a terrorist attack 
     against the United States through the use of a weapon that is 
     a weapon of mass destruction other than a biological weapon 
     or that is a conventional weapon.

     SEC. 1035. REPORT ON STRATEGY, POLICIES, AND PROGRAMS TO 
                   COMBAT DOMESTIC TERRORISM.

       Not later than 180 days after the date of the enactment of 
     this Act, the Comptroller General of the United States shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives a report on the strategy, 
     policies, and programs of the United States for combating 
     domestic terrorism, and in particular domestic terrorism 
     involving weapons of mass destruction. The report shall 
     document the progress and problems experienced by the Federal 
     Government in organizing and preparing to respond to domestic 
     terrorist incidents.
                      Subtitle E--Strategic Forces

     SEC. 1041. REVISED NUCLEAR POSTURE REVIEW.

       (a) Requirement for Comprehensive Review.--In order to 
     clarify United States nuclear deterrence policy and strategy 
     for the near term, the Secretary of Defense shall conduct a 
     comprehensive review of the nuclear posture of the United 
     States for the next 5 to 10 years. The Secretary shall 
     conduct the review in consultation with the Secretary of 
     Energy.
       (b) Elements of Review.--The nuclear posture review shall 
     include the following elements:
       (1) The role of nuclear forces in United States military 
     strategy, planning, and programming.
       (2) The policy requirements and objectives for the United 
     States to maintain a safe, reliable, and credible nuclear 
     deterrence posture.
       (3) The relationship among United States nuclear deterrence 
     policy, targeting strategy, and arms control objectives.
       (4) The levels and composition of the nuclear delivery 
     systems that will be required for implementing the United 
     States national and military strategy, including any plans 
     for replacing or modifying existing systems.
       (5) The nuclear weapons complex that will be required for 
     implementing the United States national and military 
     strategy, including any plans to modernize or modify the 
     complex.
       (6) The active and inactive nuclear weapons stockpile that 
     will be required for implementing the United States national 
     and military strategy, including any plans for replacing or 
     modifying warheads.
       (c) Report to Congress.--The Secretary of Defense shall 
     submit to Congress, in unclassified and classified forms as 
     necessary, a report on the results of the nuclear posture 
     review conducted under this section. The report shall be 
     submitted concurrently with the Quadrennial Defense Review 
     report due in December 2001.
       (d) Sense of Congress.--It is the sense of Congress that 
     the nuclear posture review conducted under this section 
     should be used as the basis for establishing future United 
     States arms control objectives and negotiating positions.

     SEC. 1042. PLAN FOR THE LONG-TERM SUSTAINMENT AND 
                   MODERNIZATION OF UNITED STATES STRATEGIC 
                   NUCLEAR FORCES.

       (a) Requirement for Plan.--The Secretary of Defense, in 
     consultation with the Secretary of Energy, shall develop a 
     long-range plan for the sustainment and modernization of 
     United States strategic nuclear forces to counter emerging 
     threats and satisfy the evolving requirements of deterrence.
       (b) Elements of Plan.--The plan specified under subsection 
     (a) shall include the Secretary's plans, if any, for the 
     sustainment and modernization of the following:
       (1) Land-based and sea-based strategic ballistic missiles, 
     including any plans for developing replacements for the 
     Minuteman III intercontinental ballistic missile and the 
     Trident II sea-launched ballistic missile and plans for 
     common ballistic missile technology development.
       (2) Strategic nuclear bombers, including any plans for a B-
     2 follow-on, a B-52 replacement, and any new air-launched 
     weapon systems.
       (3) Appropriate warheads to outfit the strategic nuclear 
     delivery systems referred to in paragraphs (1) and (2) to 
     satisfy evolving military requirements.
       (c) Submittal of Plan.--The plan specified under subsection 
     (a) shall be submitted to Congress not later than April 15, 
     2001. The plan shall be submitted in unclassified and 
     classified forms, as necessary.

     SEC. 1043. MODIFICATION OF SCOPE OF WAIVER AUTHORITY FOR 
                   LIMITATION ON RETIREMENT OR DISMANTLEMENT OF 
                   STRATEGIC NUCLEAR DELIVERY SYSTEMS.

       Section 1302(b) of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948), as 
     amended by section 1501(a) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 806), is further amended by striking ``the 
     application of the limitation in effect under paragraph 
     (1)(B) or (3) of subsection (a), as the case may be,'' and 
     inserting ``the application of the limitation in effect under 
     subsection (a) to a strategic nuclear delivery system''.

     SEC. 1044. REPORT ON THE DEFEAT OF HARDENED AND DEEPLY BURIED 
                   TARGETS.

       (a) Study.--The Secretary of Defense shall, in conjunction 
     with the Secretary of Energy, conduct a study relating to the 
     defeat of hardened and deeply buried targets. Under the 
     study, the Secretaries shall--
       (1) review--
       (A) the requirements of the United States to defeat 
     hardened and deeply buried targets and stockpiles of chemical 
     and biological agents and related capabilities; and
       (B) current and future plans to meet those requirements;
       (2) determine if those plans adequately address all such 
     requirements;
       (3) identify potential future hardened and deeply buried 
     targets and other related targets;
       (4) determine what resources and research and development 
     efforts are needed to defeat the targets identified under 
     paragraph (3) as well as other requirements to defeat 
     stockpiles of chemical and biological agents and related 
     capabilities;
       (5) assess both current and future options to defeat 
     hardened and deeply buried targets as well as concepts to 
     defeat stockpiles of chemical and biological agents and 
     related capabilities; and
       (6) determine the capability and cost of each option 
     assessed under paragraph (5).
       (b) Conduct of Assessments.--In conducting the study under 
     subsection (a), the Secretaries may, in order to perform the 
     assessments required by paragraph (5) of that subsection, 
     conduct any limited research and development that may be 
     necessary to perform those assessments.
       (c) Report.--(1) Not later than July 1, 2001, the Secretary 
     of Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report on the results of the study 
     conducted under subsection (a). The report shall be prepared 
     in conjunction with the Secretary of Energy.
       (2) The report under paragraph (1) shall be submitted in 
     unclassified form, together with a classified annex if 
     necessary.

     SEC. 1045. SENSE OF CONGRESS ON THE MAINTENANCE OF THE 
                   STRATEGIC NUCLEAR TRIAD.

       It is the sense of Congress that, in light of the potential 
     for further arms control agreements with the Russian 
     Federation limiting strategic forces--
       (1) it is in the national interest of the United States to 
     maintain a robust and balanced triad of strategic nuclear 
     delivery vehicles, including (A) long-range bombers, (B) 
     land-based intercontinental ballistic missiles (ICBMs), and 
     (C) ballistic missile submarines; and
       (2) reductions to United States conventional bomber 
     capability are not in the national interest of the United 
     States.
            Subtitle F--Miscellaneous Reporting Requirements

     SEC. 1051. MANAGEMENT REVIEW OF WORKING-CAPITAL FUND 
                   ACTIVITIES.

       (a) Comptroller General Review Required.--The Comptroller 
     General shall conduct a review of the working-capital fund 
     activities of the Department of Defense to identify any 
     potential changes in current management processes or policies 
     that, if made, would result in a more efficient and 
     economical operation of those activities.
       (b) Review To Include Carryover Policy.--The review shall 
     include a review of practices under the Department of Defense 
     policy that authorizes funds available for working-capital 
     fund activities for one fiscal year to be obligated for work 
     to be performed at such activities within the first 90 days 
     of the next fiscal year (known as ``carryover''). On the 
     basis of the review, the Comptroller General shall determine 
     the following:
       (1) The extent to which the working-capital fund activities 
     of the Department of Defense have complied with the 90-day 
     carryover policy.
       (2) The reasons for the carryover authority under the 
     policy to apply to as much as a 90-day quantity of work.
       (3) Whether applying the carryover authority to not more 
     than a 30-day quantity of work would be sufficient to ensure 
     uninterrupted operations at the working-capital fund 
     activities early in a fiscal year.
       (4) What, if any, savings could be achieved by restricting 
     the carryover authority so as to apply to a 30-day quantity 
     of work.

     SEC. 1052. REPORT ON SUBMARINE RESCUE SUPPORT VESSELS.

       (a) Requirement.--The Secretary of the Navy shall submit to 
     Congress, together with the submission of the budget of the 
     President for fiscal year 2002 under section 1105 of title 
     31, United States Code, a report on the plan of the Navy for 
     providing for submarine rescue support vessels through fiscal 
     year 2007.
       (b) Content.--The report shall include a discussion of the 
     following:

[[Page 21431]]

       (1) The requirement for submarine rescue support vessels 
     through fiscal year 2007, including experience in changing 
     from the provision of such vessels from dedicated platforms 
     to the provision of such vessels through vessel of 
     opportunity services and charter vessels.
       (2) The resources required, the risks to submariners, and 
     the operational impacts of the following:
       (A) Chartering submarine rescue support vessels for terms 
     of up to five years, with options to extend the charters for 
     two additional five-year periods.
       (B) Providing submarine rescue support vessels using vessel 
     of opportunity services.
       (C) Providing submarine rescue support services through 
     other means considered by the Navy.

     SEC. 1053. REPORT ON FEDERAL GOVERNMENT PROGRESS IN 
                   DEVELOPING INFORMATION ASSURANCE STRATEGIES.

       Not later than January 15, 2001, the President shall submit 
     to Congress a comprehensive report detailing the specific 
     steps taken by the Federal Government as of the date of the 
     report to develop critical infrastructure assurance 
     strategies as outlined by Presidential Decision Directive No. 
     63 (PDD-63). The report shall include the following:
       (1) A detailed summary of the progress of each Federal 
     agency in developing an internal information assurance plan.
       (2) The progress of Federal agencies in establishing 
     partnerships with relevant private sector industries to 
     address critical infrastructure vulnerabilities.

     SEC. 1054. DEPARTMENT OF DEFENSE PROCESS FOR DECISIONMAKING 
                   IN CASES OF FALSE CLAIMS.

       Not later than February 1, 2001, the Secretary of Defense 
     shall submit to Congress a report describing the policies and 
     procedures for Department of Defense decisionmaking on issues 
     arising under sections 3729 through 3733 of title 31, United 
     States Code, in cases of claims submitted to the Department 
     of Defense that are suspected or alleged to be false. The 
     report shall include a discussion of any changes that have 
     been made in the policies and procedures since January 1, 
     2000, and how such procedures are being implemented.
           Subtitle G--Government Information Security Reform

     SEC. 1061. COORDINATION OF FEDERAL INFORMATION POLICY.

       Chapter 35 of title 44, United States Code, is amended by 
     inserting at the end the following new subchapter:

                 ``SUBCHAPTER II--INFORMATION SECURITY

     ``Sec. 3531. Purposes

       ``The purposes of this subchapter are the following:
       ``(1) To provide a comprehensive framework for establishing 
     and ensuring the effectiveness of controls over information 
     resources that support Federal operations and assets.
       ``(2)(A) To recognize the highly networked nature of the 
     Federal computing environment including the need for Federal 
     Government interoperability and, in the implementation of 
     improved security management measures, assure that 
     opportunities for interoperability are not adversely 
     affected.
       ``(B) To provide effective Government-wide management and 
     oversight of the related information security risks, 
     including coordination of information security efforts 
     throughout the civilian, national security, and law 
     enforcement communities.
       ``(3) To provide for development and maintenance of minimum 
     controls required to protect Federal information and 
     information systems.
       ``(4) To provide a mechanism for improved oversight of 
     Federal agency information security programs.

     ``Sec. 3532. Definitions

       ``(a) Except as provided under subsection (b), the 
     definitions under section 3502 shall apply to this 
     subchapter.
       ``(b) In this subchapter:
       ``(1) The term `information technology' has the meaning 
     given that term in section 5002 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1401).
       ``(2) The term `mission critical system' means any 
     telecommunications or information system used or operated by 
     an agency or by a contractor of an agency, or other 
     organization on behalf of an agency, that--
       ``(A) is defined as a national security system under 
     section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 
     1452);
       ``(B) is protected at all times by procedures established 
     for information which has been specifically authorized under 
     criteria established by an Executive order or an Act of 
     Congress to be classified in the interest of national defense 
     or foreign policy; or
       ``(C) processes any information, the loss, misuse, 
     disclosure, or unauthorized access to or modification of, 
     would have a debilitating impact on the mission of an agency.

     ``Sec. 3533. Authority and functions of the Director

       ``(a)(1) The Director shall establish Government-wide 
     policies for the management of programs that--
       ``(A) support the cost-effective security of Federal 
     information systems by promoting security as an integral 
     component of each agency's business operations; and
       ``(B) include information technology architectures as 
     defined under section 5125 of the Clinger-Cohen Act of 1996 
     (40 U.S.C. 1425).
       ``(2) Policies under this subsection shall--
       ``(A) be founded on a continuing risk management cycle that 
     recognizes the need to--
       ``(i) identify, assess, and understand risk; and
       ``(ii) determine security needs commensurate with the level 
     of risk;
       ``(B) implement controls that adequately address the risk;
       ``(C) promote continuing awareness of information security 
     risk; and
       ``(D) continually monitor and evaluate policy and control 
     effectiveness of information security practices.
       ``(b) The authority under subsection (a) includes the 
     authority to--
       ``(1) oversee and develop policies, principles, standards, 
     and guidelines for the handling of Federal information and 
     information resources to improve the efficiency and 
     effectiveness of governmental operations, including 
     principles, policies, and guidelines for the implementation 
     of agency responsibilities under applicable law for ensuring 
     the privacy, confidentiality, and security of Federal 
     information;
       ``(2) consistent with the standards and guidelines 
     promulgated under section 5131 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1441) and sections 5 and 6 of the Computer 
     Security Act of 1987 (40 U.S.C. 1441 note; Public Law 100-
     235; 101 Stat. 1729), require Federal agencies to identify 
     and afford security protections commensurate with the risk 
     and magnitude of the harm resulting from the loss, misuse, or 
     unauthorized access to or modification of information 
     collected or maintained by or on behalf of an agency;
       ``(3) direct the heads of agencies to--
       ``(A) identify, use, and share best security practices;
       ``(B) develop an agency-wide information security plan;
       ``(C) incorporate information security principles and 
     practices throughout the life cycles of the agency's 
     information systems; and
       ``(D) ensure that the agency's information security plan is 
     practiced throughout all life cycles of the agency's 
     information systems;
       ``(4) oversee the development and implementation of 
     standards and guidelines relating to security controls for 
     Federal computer systems by the Secretary of Commerce through 
     the National Institute of Standards and Technology under 
     section 5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 
     1441) and section 20 of the National Institute of Standards 
     and Technology Act (15 U.S.C. 278g-3);
       ``(5) oversee and coordinate compliance with this section 
     in a manner consistent with--
       ``(A) sections 552 and 552a of title 5;
       ``(B) sections 20 and 21 of the National Institute of 
     Standards and Technology Act (15 U.S.C. 278g-3 and 278g-4);
       ``(C) section 5131 of the Clinger-Cohen Act of 1996 (40 
     U.S.C. 1441);
       ``(D) sections 5 and 6 of the Computer Security Act of 1987 
     (40 U.S.C. 1441 note; Public Law 100-235; 101 Stat. 1729); 
     and
       ``(E) related information management laws; and
       ``(6) take any authorized action under section 5113(b)(5) 
     of the Clinger-Cohen Act of 1996 (40 U.S.C. 1413(b)(5)) that 
     the Director considers appropriate, including any action 
     involving the budgetary process or appropriations management 
     process, to enforce accountability of the head of an agency 
     for information resources management, including the 
     requirements of this subchapter, and for the investments made 
     by the agency in information technology, including--
       ``(A) recommending a reduction or an increase in any amount 
     for information resources that the head of the agency 
     proposes for the budget submitted to Congress under section 
     1105(a) of title 31;
       ``(B) reducing or otherwise adjusting apportionments and 
     reapportionments of appropriations for information resources; 
     and
       ``(C) using other authorized administrative controls over 
     appropriations to restrict the availability of funds for 
     information resources.
       ``(c) The authorities of the Director under this section 
     (other than the authority described in subsection (b)(6))--
       ``(1) shall be delegated to the Secretary of Defense, the 
     Director of Central Intelligence, and another agency head as 
     designated by the President in the case of systems described 
     under subparagraphs (A) and (B) of section 3532(b)(2);
       ``(2) shall be delegated to the Secretary of Defense in the 
     case of systems described under subparagraph (C) of section 
     3532(b)(2) that are operated by the Department of Defense, a 
     contractor of the Department of Defense, or another entity on 
     behalf of the Department of Defense; and
       ``(3) in the case of all other Federal information systems, 
     may be delegated only to the Deputy Director for Management 
     of the Office of Management and Budget.

     ``Sec. 3534. Federal agency responsibilities

       ``(a) The head of each agency shall--
       ``(1) be responsible for--
       ``(A) adequately ensuring the integrity, confidentiality, 
     authenticity, availability, and nonrepudiation of information 
     and information systems supporting agency operations and 
     assets;
       ``(B) developing and implementing information security 
     policies, procedures, and control techniques sufficient to 
     afford security protections commensurate with the risk and 
     magnitude of the harm resulting from unauthorized disclosure, 
     disruption, modification, or destruction of information 
     collected or maintained by or for the agency; and
       ``(C) ensuring that the agency's information security plan 
     is practiced throughout the life cycle of each agency system;
       ``(2) ensure that appropriate senior agency officials are 
     responsible for--

[[Page 21432]]

       ``(A) assessing the information security risks associated 
     with the operations and assets for programs and systems over 
     which such officials have control;
       ``(B) determining the levels of information security 
     appropriate to protect such operations and assets; and
       ``(C) periodically testing and evaluating information 
     security controls and techniques;
       ``(3) delegate to the agency Chief Information Officer 
     established under section 3506, or a comparable official in 
     an agency not covered by such section, the authority to 
     administer all functions under this subchapter including--
       ``(A) designating a senior agency information security 
     official who shall report to the Chief Information Officer or 
     a comparable official;
       ``(B) developing and maintaining an agencywide information 
     security program as required under subsection (b);
       ``(C) ensuring that the agency effectively implements and 
     maintains information security policies, procedures, and 
     control techniques;
       ``(D) training and overseeing personnel with significant 
     responsibilities for information security with respect to 
     such responsibilities; and
       ``(E) assisting senior agency officials concerning 
     responsibilities under paragraph (2);
       ``(4) ensure that the agency has trained personnel 
     sufficient to assist the agency in complying with the 
     requirements of this subchapter and related policies, 
     procedures, standards, and guidelines; and
       ``(5) ensure that the agency Chief Information Officer, in 
     coordination with senior agency officials, periodically--
       ``(A)(i) evaluates the effectiveness of the agency 
     information security program, including testing control 
     techniques; and
       ``(ii) implements appropriate remedial actions based on 
     that evaluation; and
       ``(B) reports to the agency head on--
       ``(i) the results of such tests and evaluations; and
       ``(ii) the progress of remedial actions.
       ``(b)(1) Each agency shall develop and implement an 
     agencywide information security program to provide 
     information security for the operations and assets of the 
     agency, including operations and assets provided or managed 
     by another agency.
       ``(2) Each program under this subsection shall include--
       ``(A) periodic risk assessments that consider internal and 
     external threats to--
       ``(i) the integrity, confidentiality, and availability of 
     systems; and
       ``(ii) data supporting critical operations and assets;
       ``(B) policies and procedures that--
       ``(i) are based on the risk assessments required under 
     subparagraph (A) that cost-effectively reduce information 
     security risks to an acceptable level; and
       ``(ii) ensure compliance with--
       ``(I) the requirements of this subchapter;
       ``(II) policies and procedures as may be prescribed by the 
     Director; and
       ``(III) any other applicable requirements;
       ``(C) security awareness training to inform personnel of--
       ``(i) information security risks associated with the 
     activities of personnel; and
       ``(ii) responsibilities of personnel in complying with 
     agency policies and procedures designed to reduce such risks;
       ``(D) periodic management testing and evaluation of the 
     effectiveness of information security policies and 
     procedures;
       ``(E) a process for ensuring remedial action to address any 
     significant deficiencies; and
       ``(F) procedures for detecting, reporting, and responding 
     to security incidents, including--
       ``(i) mitigating risks associated with such incidents 
     before substantial damage occurs;
       ``(ii) notifying and consulting with law enforcement 
     officials and other offices and authorities;
       ``(iii) notifying and consulting with an office designated 
     by the Administrator of General Services within the General 
     Services Administration; and
       ``(iv) notifying and consulting with an office designated 
     by the Secretary of Defense, the Director of Central 
     Intelligence, and another agency head as designated by the 
     President for incidents involving systems described under 
     subparagraphs (A) and (B) of section 3532(b)(2).
       ``(3) Each program under this subsection is subject to the 
     approval of the Director and is required to be reviewed at 
     least annually by agency program officials in consultation 
     with the Chief Information Officer. In the case of systems 
     described under subparagraphs (A) and (B) of section 
     3532(b)(2), the Director shall delegate approval authority 
     under this paragraph to the Secretary of Defense, the 
     Director of Central Intelligence, and another agency head as 
     designated by the President.
       ``(c)(1) Each agency shall examine the adequacy and 
     effectiveness of information security policies, procedures, 
     and practices in plans and reports relating to--
       ``(A) annual agency budgets;
       ``(B) information resources management under subchapter I 
     of this chapter;
       ``(C) performance and results based management under the 
     Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.);
       ``(D) program performance under sections 1105 and 1115 
     through 1119 of title 31, and sections 2801 through 2805 of 
     title 39; and
       ``(E) financial management under--
       ``(i) chapter 9 of title 31, United States Code, and the 
     Chief Financial Officers Act of 1990 (31 U.S.C. 501 note; 
     Public Law 101-576) (and the amendments made by that Act);
       ``(ii) the Federal Financial Management Improvement Act of 
     1996 (31 U.S.C. 3512 note) (and the amendments made by that 
     Act); and
       ``(iii) the internal controls conducted under section 3512 
     of title 31.
       ``(2) Any significant deficiency in a policy, procedure, or 
     practice identified under paragraph (1) shall be reported as 
     a material weakness in reporting required under the 
     applicable provision of law under paragraph (1).
       ``(d)(1) In addition to the requirements of subsection (c), 
     each agency, in consultation with the Chief Information 
     Officer, shall include as part of the performance plan 
     required under section 1115 of title 31 a description of--
       ``(A) the time periods, and
       ``(B) the resources, including budget, staffing, and 
     training,
     which are necessary to implement the program required under 
     subsection (b)(1).
       ``(2) The description under paragraph (1) shall be based on 
     the risk assessment required under subsection (b)(2)(A).

     ``Sec. 3535. Annual independent evaluation

       ``(a)(1) Each year each agency shall have performed an 
     independent evaluation of the information security program 
     and practices of that agency.
       ``(2) Each evaluation by an agency under this section shall 
     include--
       ``(A) testing of the effectiveness of information security 
     control techniques for an appropriate subset of the agency's 
     information systems; and
       ``(B) an assessment (made on the basis of the results of 
     the testing) of the compliance with--
       ``(i) the requirements of this subchapter; and
       ``(ii) related information security policies, procedures, 
     standards, and guidelines.
       ``(3) The Inspector General or the independent evaluator 
     performing an evaluation under this section may use an audit, 
     evaluation, or report relating to programs or practices of 
     the applicable agency.
       ``(b)(1)(A) Subject to subparagraph (B), for agencies with 
     Inspectors General appointed under the Inspector General Act 
     of 1978 (5 U.S.C. App.) or any other law, the annual 
     evaluation required under this section or, in the case of 
     systems described under subparagraphs (A) and (B) of section 
     3532(b)(2), an audit of the annual evaluation required under 
     this section, shall be performed by the Inspector General or 
     by an independent evaluator, as determined by the Inspector 
     General of the agency.
       ``(B) For systems described under subparagraphs (A) and (B) 
     of section 3532(b)(2), the evaluation required under this 
     section shall be performed only by an entity designated by 
     the Secretary of Defense, the Director of Central 
     Intelligence, or another agency head as designated by the 
     President.
       ``(2) For any agency to which paragraph (1) does not apply, 
     the head of the agency shall contract with an independent 
     evaluator to perform the evaluation.
       ``(c) Each year, not later than the anniversary of the date 
     of the enactment of this subchapter, the applicable agency 
     head shall submit to the Director--
       ``(1) the results of each evaluation required under this 
     section, other than an evaluation of a system described under 
     subparagraph (A) or (B) of section 3532(b)(2); and
       ``(2) the results of each audit of an evaluation required 
     under this section of a system described under subparagraph 
     (A) or (B) of section 3532(b)(2).
       ``(d)(1) The Director shall submit to Congress each year a 
     report summarizing the materials received from agencies 
     pursuant to subsection (c) in that year.
       ``(2) Evaluations and audits of evaluations of systems 
     under the authority and control of the Director of Central 
     Intelligence and evaluations and audits of evaluation of 
     National Foreign Intelligence Programs systems under the 
     authority and control of the Secretary of Defense shall be 
     made available only to the appropriate oversight committees 
     of Congress, in accordance with applicable laws.
       ``(e) Agencies and evaluators shall take appropriate 
     actions to ensure the protection of information, the 
     disclosure of which may adversely affect information 
     security. Such protections shall be commensurate with the 
     risk and comply with all applicable laws.

     ``Sec. 3536. Expiration

       ``This subchapter shall not be in effect after the date 
     that is two years after the date on which this subchapter 
     takes effect.''.

     SEC. 1062. RESPONSIBILITIES OF CERTAIN AGENCIES.

       (a) Department of Commerce.--Notwithstanding section 20 of 
     the National Institute of Standards and Technology Act (15 
     U.S.C. 278g-3) and except as provided under subsection (b), 
     the Secretary of Commerce, through the National Institute of 
     Standards and Technology and with technical assistance from 
     the National Security Agency, as required or when requested, 
     shall--
       (1) develop, issue, review, and update standards and 
     guidance for the security of Federal information systems, 
     including development of methods and techniques for security 
     systems and validation programs;
       (2) develop, issue, review, and update guidelines for 
     training in computer security awareness and accepted computer 
     security practices, with assistance from the Office of 
     Personnel Management;
       (3) provide agencies with guidance for security planning to 
     assist in the development of applications and system security 
     plans for such agencies;
       (4) provide guidance and assistance to agencies concerning 
     cost-effective controls when interconnecting with other 
     systems; and

[[Page 21433]]

       (5) evaluate information technologies to assess security 
     vulnerabilities and alert Federal agencies of such 
     vulnerabilities as soon as those vulnerabilities are known.
       (b) Department of Defense and the Intelligence Community.--
       (1) In general.--Notwithstanding any other provision of 
     this subtitle (including any amendment made by this 
     subtitle)--
       (A) the Secretary of Defense, the Director of Central 
     Intelligence, and another agency head as designated by the 
     President, shall, consistent with their respective 
     authorities--
       (i) develop and issue information security policies, 
     standards, and guidelines for systems described under 
     subparagraphs (A) and (B) of section 3532(b)(2) of title 44, 
     United States Code (as added by section 1061 of this Act), 
     that provide more stringent protection, to the maximum extent 
     practicable, than the policies, principles, standards, and 
     guidelines required under section 353 of such title (as added 
     by such section 1061); and
       (ii) ensure the implementation of the information security 
     policies, principles, standards, and guidelines described 
     under clause (i); and
       (B) the Secretary of Defense shall, consistent with his 
     authority--
       (i) develop and issue information security policies, 
     standards, and guidelines for systems described under 
     subparagraph (C) of section 3532(b)(2) of title 44, United 
     States Code (as added by section 1061 of this Act), that are 
     operated by the Department of Defense, a contractor of the 
     Department of Defense, or another entity on behalf of the 
     Department of Defense that provide more stringent protection, 
     to the maximum extent practicable, than the policies, 
     principles, standards, and guidelines required under section 
     3533 of such title (as added by such section 1061); and
       (ii) ensure the implementation of the information security 
     policies, principles, standards, and guidelines described 
     under clause (i).
       (2) Measures addressed.--The policies, principles, 
     standards, and guidelines developed by the Secretary of 
     Defense and the Director of Central Intelligence under 
     paragraph (1) shall address the full range of information 
     assurance measures needed to protect and defend Federal 
     information and information systems by ensuring their 
     integrity, confidentiality, authenticity, availability, and 
     nonrepudiation.
       (c) Department of Justice.--The Attorney General shall 
     review and update guidance to agencies on--
       (1) legal remedies regarding security incidents and ways to 
     report to and work with law enforcement agencies concerning 
     such incidents; and
       (2) lawful uses of security techniques and technologies.
       (d) General Services Administration.--The Administrator of 
     General Services shall--
       (1) review and update General Services Administration 
     guidance to agencies on addressing security considerations 
     when acquiring information technology; and
       (2) assist agencies in--
       (A) fulfilling agency responsibilities under section 
     3534(b)(2)(F) of title 44, United States Code (as added by 
     section 1061 of this Act); and
       (B) the acquisition of cost-effective security products, 
     services, and incident response capabilities.
       (e) Office of Personnel Management.--The Director of the 
     Office of Personnel Management shall--
       (1) review and update Office of Personnel Management 
     regulations concerning computer security training for Federal 
     civilian employees;
       (2) assist the Department of Commerce in updating and 
     maintaining guidelines for training in computer security 
     awareness and computer security best practices; and
       (3) work with the National Science Foundation and other 
     agencies on personnel and training initiatives (including 
     scholarships and fellowships, as authorized by law) as 
     necessary to ensure that the Federal Government--
       (A) has adequate sources of continuing information security 
     education and training available for employees; and
       (B) has an adequate supply of qualified information 
     security professionals to meet agency needs.
       (f) Information Security Policies, Principles, Standards, 
     and Guidelines.--
       (1) Adoption of policies, principles, standards, and 
     guidelines of other agencies.--The policies, principles, 
     standards, and guidelines developed under subsection (b) by 
     the Secretary of Defense, the Director of Central 
     Intelligence, and another agency head as designated by the 
     President may be adopted, to the extent that such policies 
     are consistent with policies and guidance developed by the 
     Director of the Office of Management and Budget and the 
     Secretary of Commerce--
       (A) by the Director of the Office of Management and Budget, 
     as appropriate, for application to the mission critical 
     systems of all agencies; or
       (B) by an agency head, as appropriate, for application to 
     the mission critical systems of that agency.
       (2) Development of more stringent policies, principles, 
     standards, and guidelines.--To the extent that such policies 
     are consistent with policies and guidance developed by the 
     Director of the Office of Management and Budget and the 
     Secretary of Commerce, an agency may develop and implement 
     information security policies, principles, standards, and 
     guidelines that provide more stringent protection than those 
     required under section 3533 of title 44, United States Code 
     (as added by section 1061 of this Act), or subsection (a) of 
     this section.
       (g) Atomic Energy Act of 1954.--Nothing in this subtitle 
     (including any amendment made by this subtitle) shall 
     supersede any requirement made by, or under, the Atomic 
     Energy Act of 1954 (42 U.S.C. 2011 et seq.). Restricted Data 
     or Formerly Restricted Data shall be handled, protected, 
     classified, downgraded, and declassified in conformity with 
     the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

     SEC. 1063. RELATIONSHIP OF DEFENSE INFORMATION ASSURANCE 
                   PROGRAM TO GOVERNMENT-WIDE INFORMATION SECURITY 
                   PROGRAM.

       (a) Consistency of Requirements.--Subsection (b) of section 
     2224 of title 10, United States Code, is amended--
       (1) by striking ``(b) Objectives of the Program.--'' and 
     inserting ``(b) Objectives and Minimum Requirements.--(1)''; 
     and
       (2) by adding at the end the following:
       ``(2) The program shall at a minimum meet the requirements 
     of sections 3534 and 3535 of title 44.''.
       (b) Addition to Annual Report.--Subsection (e) of such 
     section is amended by adding at the end the following new 
     paragraph:
       ``(7) A summary of the actions taken in the administration 
     of sections 3534 and 3535 of title 44 within the Department 
     of Defense.''.

     SEC. 1064. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Table of Sections.--Chapter 35 of title 44, United 
     States Code, is amended--
       (1) in the table of sections--
       (A) by inserting after the chapter heading the following:

             ``SUBCHAPTER I--FEDERAL INFORMATION POLICY'';

     and
       (B) by inserting after the item relating to section 3520 
     the following:

                 ``SUBCHAPTER II--INFORMATION SECURITY

``Sec.
``3531. Purposes.
``3532. Definitions.
``3533. Authority and functions of the Director.
``3534. Federal agency responsibilities.
``3535. Annual independent evaluation.
``3536. Expiration.'';
     and
       (2) by inserting before section 3501 the following:

             ``SUBCHAPTER I--FEDERAL INFORMATION POLICY''.

       (b) References to Chapter 35.--Sections 3501 through 3520 
     of title 44, United States Code, are amended by striking 
     ``chapter'' each place it appears and inserting 
     ``subchapter'', except in section 3507(i)(1) of such title.

     SEC. 1065. EFFECTIVE DATE.

       This subtitle and the amendments made by this subtitle 
     shall take effect 30 days after the date of enactment of this 
     Act.
                      Subtitle H--Security Matters

     SEC. 1071. LIMITATION ON GRANTING OF SECURITY CLEARANCES.

       (a) In General.--Chapter 49 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 986. Security clearances: limitations

       ``(a) Prohibition.--After the date of the enactment of this 
     section, the Department of Defense may not grant or renew a 
     security clearance for a person to whom this section applies 
     who is described in subsection (c).
       ``(b) Covered Persons.--This section applies to the 
     following persons:
       ``(1) An officer or employee of the Department of Defense.
       ``(2) A member of the Army, Navy, Air Force, or Marine 
     Corps who is on active duty or is in an active status.
       ``(3) An officer or employee of a contractor of the 
     Department of Defense.
       ``(c) Persons Disqualified From Being Granted Security 
     Clearances.--A person is described in this subsection if any 
     of the following applies to that person:
       ``(1) The person has been convicted in any court of the 
     United States of a crime and sentenced to imprisonment for a 
     term exceeding one year.
       ``(2) The person is an unlawful user of, or is addicted to, 
     a controlled substance (as defined in section 102 of the 
     Controlled Substances Act (21 U.S.C. 802)).
       ``(3) The person is mentally incompetent, as determined by 
     a mental health professional approved by the Department of 
     Defense.
       ``(4) The person has been discharged or dismissed from the 
     Armed Forces under dishonorable conditions.
       ``(d) Waiver Authority.--In a meritorious case, the 
     Secretary of Defense or the Secretary of the military 
     department concerned may authorize an exception to the 
     prohibition in subsection (a) for a person described in 
     paragraph (1) or (4) of subsection (c). The authority under 
     the preceding sentence may not be delegated.
       ``(e) Annual Report.--Not later than February 1 each year, 
     the Secretary of Defense shall submit to the Committees on 
     Armed Services of the Senate and House of Representatives a 
     report identifying each waiver issued under subsection (d) 
     during the preceding year with an explanation for each case 
     of the disqualifying factor in subsection (c) that applied, 
     and the reason for the waiver of the disqualification.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:


[[Page 21434]]


``986. Security clearances: limitations.''.

     SEC. 1072. PROCESS FOR PRIORITIZING BACKGROUND INVESTIGATIONS 
                   FOR SECURITY CLEARANCES FOR DEPARTMENT OF 
                   DEFENSE PERSONNEL AND DEFENSE CONTRACTOR 
                   PERSONNEL.

       (a) Establishment of Process.--Chapter 80 of title 10, 
     United States Code, is amended by adding after section 1563, 
     as added by section 542(a), the following new section:

     ``Sec. 1564. Security clearance investigations

       ``(a) Expedited Process.--The Secretary of Defense shall 
     prescribe a process for expediting the completion of the 
     background investigations necessary for granting security 
     clearances for Department of Defense personnel and Department 
     of Defense contractor personnel who are engaged in sensitive 
     duties that are critical to the national security.
       ``(b) Required Features.--The process developed under 
     subsection (a) shall provide for the following:
       ``(1) Quantification of the requirements for background 
     investigations necessary for grants of security clearances 
     for Department of Defense personnel and Department of Defense 
     contractor personnel.
       ``(2) Categorization of personnel on the basis of the 
     degree of sensitivity of their duties and the extent to which 
     those duties are critical to the national security.
       ``(3) Prioritization of the processing of background 
     investigations on the basis of the categories of personnel 
     determined under paragraph (2).
       ``(c) Annual Review.--The Secretary shall conduct an annual 
     review of the process prescribed under subsection (a) and 
     shall revise that process as determined necessary in relation 
     to ongoing Department of Defense missions.
       ``(d) Consultation Requirement.--The Secretary shall 
     consult with the Secretaries of the military departments and 
     the heads of Defense Agencies in carrying out this section.
       ``(e) Sensitive Duties.--For the purposes of this section, 
     it is not necessary for the performance of duties to involve 
     classified activities or classified matters in order for the 
     duties to be considered sensitive and critical to the 
     national security.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     relating to section 1563, as added by section 542(b), the 
     following new item:

``1564. Security clearance investigations.''.
       (c) Deadline for Prescribing Process for Prioritizing 
     Background Investigations for Security Clearances.--The 
     process required by section 1564(a) of title 10, United 
     States Code, as added by subsection (a), for expediting the 
     completion of the background investigations necessary for 
     granting security clearances for certain persons shall be 
     prescribed not later than January 1, 2001.

     SEC. 1073. AUTHORITY TO WITHHOLD CERTAIN SENSITIVE 
                   INFORMATION FROM PUBLIC DISCLOSURE.

       (a) In General.--Chapter 3 of title 10, United States Code, 
     is amended by inserting after section 130b the following new 
     section:

     ``Sec. 130c. Nondisclosure of information: certain sensitive 
       information of foreign governments and international 
       organizations

       ``(a) Exemption From Disclosure.--The national security 
     official concerned (as defined in subsection (h)) may 
     withhold from public disclosure otherwise required by law 
     sensitive information of foreign governments in accordance 
     with this section.
       ``(b) Information Eligible for Exemption.--For the purposes 
     of this section, information is sensitive information of a 
     foreign government only if the national security official 
     concerned makes each of the following determinations with 
     respect to the information:
       ``(1) That the information was provided by, otherwise made 
     available by, or produced in cooperation with, a foreign 
     government or international organization.
       ``(2) That the foreign government or international 
     organization is withholding the information from public 
     disclosure (relying for that determination on the written 
     representation of the foreign government or international 
     organization to that effect).
       ``(3) That any of the following conditions are met:
       ``(A) The foreign government or international organization 
     requests, in writing, that the information be withheld.
       ``(B) The information was provided or made available to the 
     United States Government on the condition that it not be 
     released to the public.
       ``(C) The information is an item of information, or is in a 
     category of information, that the national security official 
     concerned has specified in regulations prescribed under 
     subsection (f) as being information the release of which 
     would have an adverse effect on the ability of the United 
     States Government to obtain the same or similar information 
     in the future.
       ``(c) Information of Other Agencies.--If the national 
     security official concerned provides to the head of another 
     agency sensitive information of a foreign government, as 
     determined by that national security official under 
     subsection (b), and informs the head of the other agency of 
     that determination, then the head of the other agency shall 
     withhold the information from any public disclosure unless 
     that national security official specifically authorizes the 
     disclosure.
       ``(d) Limitations.--(1) If a request for disclosure covers 
     any sensitive information of a foreign government (as 
     described in subsection (b)) that came into the possession or 
     under the control of the United States Government before the 
     date of the enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 and more than 25 years 
     before the request is received by an agency, the information 
     may be withheld only as set forth in paragraph (3).
       ``(2)(A) If a request for disclosure covers any sensitive 
     information of a foreign government (as described in 
     subsection (b)) that came into the possession or under the 
     control of the United States Government on or after the date 
     referred to in paragraph (1), the authority to withhold the 
     information under this section is subject to the provisions 
     of subparagraphs (B) and (C).
       ``(B) Information referred to in subparagraph (A) may not 
     be withheld under this section after--
       ``(i) the date that is specified by a foreign government or 
     international organization in a request or expression of a 
     condition described in paragraph (1) or (2) of subsection (b) 
     that is made by the foreign government or international 
     organization concerning the information; or
       ``(ii) if there are more than one such foreign governments 
     or international organizations, the latest date so specified 
     by any of them.
       ``(C) If no date is applicable under subparagraph (B) to a 
     request referred to in subparagraph (A) and the information 
     referred to in that subparagraph came into possession or 
     under the control of the United States more than 10 years 
     before the date on which the request is received by an 
     agency, the information may be withheld under this section 
     only as set forth in paragraph (3).
       ``(3) Information referred to in paragraph (1) or (2)(C) 
     may be withheld under this section in the case of a request 
     for disclosure only if, upon the notification of each foreign 
     government and international organization concerned in 
     accordance with the regulations prescribed under subsection 
     (g)(2), any such government or organization requests in 
     writing that the information not be disclosed for an 
     additional period stated in the request of that government or 
     organization. After the national security official concerned 
     considers the request of the foreign government or 
     international organization, the official shall designate a 
     later date as the date after which the information is not to 
     be withheld under this section. The later date may be 
     extended in accordance with a later request of any such 
     foreign government or international organization under this 
     paragraph.
       ``(e) Information Protected Under Other Authority.--This 
     section does not apply to information or matters that are 
     specifically required in the interest of national defense or 
     foreign policy to be protected against unauthorized 
     disclosure under criteria established by an Executive order 
     and are classified, properly, at the confidential, secret, or 
     top secret level pursuant to such Executive order.
       ``(f) Disclosures Not Affected.--Nothing in this section 
     shall be construed to authorize any official to withhold, or 
     to authorize the withholding of, information from the 
     following:
       ``(1) Congress.
       ``(2) The Comptroller General, unless the information 
     relates to activities that the President designates as 
     foreign intelligence or counterintelligence activities.
       ``(g) Regulations.--(1) The national security officials 
     referred to in subsection (h)(1) shall each prescribe 
     regulations to carry out this section. The regulations shall 
     include criteria for making the determinations required under 
     subsection (b). The regulations may provide for controls on 
     access to and use of, and special markings and specific 
     safeguards for, a category or categories of information 
     subject to this section.
       ``(2) The regulations shall include procedures for 
     notifying and consulting with each foreign government or 
     international organization concerned about requests for 
     disclosure of information to which this section applies.
       ``(h) Definitions.--In this section:
       ``(1) The term `national security official concerned' means 
     the following:
       ``(A) The Secretary of Defense, with respect to information 
     of concern to the Department of Defense, as determined by the 
     Secretary.
       ``(B) The Secretary of Transportation, with respect to 
     information of concern to the Coast Guard, as determined by 
     the Secretary, but only while the Coast Guard is not 
     operating as a service in the Navy.
       ``(C) The Secretary of Energy, with respect to information 
     concerning the national security programs of the Department 
     of Energy, as determined by the Secretary.
       ``(2) The term `agency' has the meaning given that term in 
     section 552(f) of title 5.
       ``(3) The term `international organization' means the 
     following:
       ``(A) A public international organization designated 
     pursuant to section 1 of the International Organizations 
     Immunities Act (59 Stat. 669; 22 U.S.C. 288) as being 
     entitled to enjoy the privileges, exemptions, and immunities 
     provided in such Act.
       ``(B) A public international organization created pursuant 
     to a treaty or other international agreement as an instrument 
     through or by which two or more foreign governments engage in 
     some aspect of their conduct of international affairs.
       ``(C) An official mission, except a United States mission, 
     to a public international organization referred to in 
     subparagraph (A) or (B).''.

[[Page 21435]]

       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 130b the following new item:

``130c. Nondisclosure of information: certain sensitive information of 
              foreign governments and international organizations.''.

     SEC. 1074. EXPANSION OF AUTHORITY TO EXEMPT GEODETIC PRODUCTS 
                   OF THE DEPARTMENT OF DEFENSE FROM PUBLIC 
                   DISCLOSURE.

       Section 455(b)(1)(C) of title 10, United States Code, is 
     amended by striking ``or reveal military operational or 
     contingency plans'' and inserting ``, reveal military 
     operational or contingency plans, or reveal, jeopardize, or 
     compromise military or intelligence capabilities''.

     SEC. 1075. EXPENDITURES FOR DECLASSIFICATION ACTIVITIES.

       (a) Identification in Budget Materials of Amounts for 
     Declassification Activities.--Section 230 of title 10, United 
     States Code, is amended--
       (1) by striking ``, as a budgetary line item,''; and
       (2) by adding at the end the following new sentence: 
     ``Identification of such amounts in such budget justification 
     materials shall be in a single display that shows the total 
     amount for the Department of Defense and the amount for each 
     military department and Defense Agency.''.
       (b) Limitation on Expenditures.--The total amount expended 
     by the Department of Defense during fiscal year 2001 to carry 
     out declassification activities under the provisions of 
     sections 3.4, 3.5, and 3.6 of Executive Order 12958 (50 
     U.S.C. 435 note) and for special searches (including costs 
     for document search, copying, and review and imagery 
     analysis) may not exceed $30,000,000.
       (c) Compilation and Organization of Records.--The 
     Department of Defense may not be required, when conducting a 
     special search, to compile or organize records that have 
     already been declassified and placed into the public domain.
       (d) Special Searches.--For the purpose of this section, the 
     term ``special search'' means the response of the Department 
     of Defense to any of the following:
       (1) A statutory requirement to conduct a declassification 
     review on a specified set of agency records.
       (2) An Executive order to conduct a declassification review 
     on a specified set of agency records.
       (3) An order from the President or an official with 
     delegated authority from the President to conduct a 
     declassification review on a specified set of agency records.

     SEC. 1076. ENHANCED ACCESS TO CRIMINAL HISTORY RECORD 
                   INFORMATION FOR NATIONAL SECURITY AND OTHER 
                   PURPOSES

       (a) Coverage of Department of Transportation.--Section 9101 
     of title 5, United States Code, is amended--
       (1) by adding at the end of subsection (a) the following 
     new paragraph:
       ``(6) The term `covered agency' means any of the following:
       ``(A) The Department of Defense.
       ``(B) The Department of State.
       ``(C) The Department of Transportation.
       ``(D) The Office of Personnel Management.
       ``(E) The Central Intelligence Agency.
       ``(F) The Federal Bureau of Investigation.'';
       (2) in subsection (b)(1)--
       (A) by striking ``by the Department of Defense'' and all 
     that follows through ``Federal Bureau of Investigation'' and 
     inserting ``by the head of a covered agency''; and
       (B) by striking ``such department, office, agency, or 
     bureau'' and inserting ``that covered agency''; and
       (3) in subsection (c), by striking ``The Department of 
     Defense'' and all that follows through ``Federal Bureau of 
     Investigation'' and inserting ``A covered agency''.
       (b) Repeal of Expired Provision.--Subsection (b) of such 
     section is amended by striking paragraph (3).
       (c) Expanded Purposes for Access to Criminal History 
     Information.--Subsection (b) of such section is further 
     amended--
       (1) by redesignating paragraph (2) as paragraph (4);
       (2) in the first sentence of paragraph (1)--
       (A) by inserting ``any of the following:'' after 
     ``eligibility for''; and
       (B) by striking ``(A) access to classified information'' 
     and all that follows through the end of the sentence and 
     inserting the following:
       ``(A) Access to classified information.
       ``(B) Assignment to or retention in sensitive national 
     security duties.
       ``(C) Acceptance or retention in the armed forces.
       ``(D) Appointment, retention, or assignment to a position 
     of public trust or a critical or sensitive position while 
     either employed by the Government or performing a Government 
     contract.'';
       (3) by designating the second sentence of paragraph (1) as 
     paragraph (2); and
       (4) by designating the third sentence of paragraph (1) as 
     paragraph (3) and in that sentence by striking ``, nor 
     shall'' and all that follows through the end of the sentence 
     and inserting a period.
       (d) Use of Automated Information Delivery Systems.--Such 
     section is further amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e)(1) Automated information delivery systems shall be 
     used to provide criminal history record information to a 
     covered agency under subsection (b) whenever available.
       ``(2) Fees, if any, charged for automated access through 
     such systems may not exceed the reasonable cost of providing 
     such access.
       ``(3) The criminal justice agency providing the criminal 
     history record information through such systems may not limit 
     disclosure on the basis that the repository is accessed from 
     outside the State.
       ``(4) Information provided through such systems shall be 
     the full and complete criminal history record.
       ``(5) Criminal justice agencies shall accept and respond to 
     requests for criminal history record information through such 
     systems with printed or photocopied records when 
     requested.''.
       (e) Technical Amendments.--Subsection (a) of such section 
     is amended--
       (1) in paragraph (1), by striking ``includes'' and all that 
     follows through ``thereof which'' and inserting ``means (A) 
     any Federal, State, or local court, and (B) any Federal, 
     State, or local agency, or any subunit thereof, which''; and
       (2) in paragraph (4)--
       (A) by inserting ``the Commonwealth of'' before ``the 
     Northern Mariana Islands''; and
       (B) by striking ``the Trust Territory of the Pacific 
     Islands,'.
       (f) Conforming Amendments.--(1)(A) The heading for chapter 
     91 of title 5, United States Code, is amended to read as 
     follows:

``CHAPTER 91--ACCESS TO CRIMINAL HISTORY RECORDS FOR NATIONAL SECURITY 
                         AND OTHER PURPOSES''.

       (B) The item relating to chapter 91 in the table of 
     chapters at the beginning of part III of such title is 
     amended to read as follows:

``91. Access to Criminal History Records for National Security and 
    Other Purposes..........................................9101''.....

       (2)(A) The heading of section 9101 of such title is amended 
     to read as follows:

     ``Sec. 9101. Access to criminal history records for national 
       security and other purposes''.

       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 91 of such title is 
     amended to read as follows:

``9101. Access to criminal history records for national security and 
              other purposes.''.
       (g) Repeal of Superseded Provision.--(1) Section 520a of 
     title 10, United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 31 of 
     such title is amended by striking the item relating to 
     section 520a.

     SEC. 1077. TWO-YEAR EXTENSION OF AUTHORITY TO ENGAGE IN 
                   COMMERCIAL ACTIVITIES AS SECURITY FOR 
                   INTELLIGENCE COLLECTION ACTIVITIES.

       Section 431(a) of title 10, United States Code, is amended 
     in the second sentence by striking ``December 31, 2000'' and 
     inserting ``December 31, 2002''.

     SEC. 1078. COORDINATION OF NUCLEAR WEAPONS SECRECY POLICIES 
                   AND CONSIDERATION OF HEALTH OF WORKERS AT 
                   FORMER DEPARTMENT OF DEFENSE NUCLEAR 
                   FACILITIES.

       (a) Review of Secrecy Policies.--(1) The Secretary of 
     Defense shall review classification and security policies of 
     the Department of Defense in order to ensure that, within 
     appropriate national security constraints, those policies do 
     not prevent or discourage former defense nuclear weapons 
     facility employees who may have been exposed to radioactive 
     or other hazardous substances associated with nuclear weapons 
     from discussing such exposures with appropriate health care 
     providers and with other appropriate officials.
       (2) The policies reviewed under paragraph (1) shall include 
     the policy to neither confirm nor deny the presence of 
     nuclear weapons as that policy is applied to former defense 
     nuclear weapons facilities.
       (b) Definitions.--For purposes of this section:
       (1) The term ``former defense nuclear weapons facility 
     employees'' means employees and former employees of the 
     Department of Defense who are or were employed at a site 
     that, as of the date of the enactment of this Act, is a 
     former defense nuclear weapons facility.
       (2) The term ``former defense nuclear weapons facility'' 
     means a current or former Department of Defense site in the 
     United States which at one time was a defense nuclear weapons 
     facility but which no longer contains nuclear weapons or 
     materials and otherwise is no longer used for such purpose.
       (3) The term ``defense nuclear weapons facility'' means a 
     Department of Defense site in the United States at which 
     nuclear weapons or materials are stored, assembled, 
     disassembled, or maintained.
       (c) Notification of Affected Employees.--(1) The Secretary 
     of Defense shall seek to identify individuals--
       (A) who are former defense nuclear weapons facility 
     employees; and
       (B) who, while employed at a defense nuclear weapons 
     facility, may have been exposed to radioactive or hazardous 
     substances associated with nuclear weapons.
       (2) Upon identification of any individual under paragraph 
     (1), the Secretary of Defense shall notify that individual, 
     by mail or other individual means, of any such exposure to 
     radioactive or hazardous substances associated with nuclear 
     weapons that has been identified by the Secretary. The 
     notification shall include an explanation of how (or the 
     degree to which) that

[[Page 21436]]

     individual can discuss any such exposure with a health care 
     provider who does not hold a security clearance without 
     violating security or classification procedures and, if 
     necessary, provide guidance to facilitate the ability of that 
     individual to contact a health care provider with appropriate 
     security clearances or otherwise to discuss such exposures 
     with other officials who are determined by the Secretary of 
     Defense to be appropriate.
       (d) Report.--Not later than May 1, 2001, the Secretary of 
     Defense shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report setting forth--
       (1) the results of the review conducted under subsection 
     (a), including any changes made or recommendations for 
     legislation; and
       (2) the status of the notifications required by subsection 
     (b) and an anticipated date by which the identification and 
     notification of individuals under that subsection will be 
     completed.
       (e) Consultation with Secretary of Energy.--The Secretary 
     of Defense shall carry out the review under subsection (a) 
     and the identification of individuals under subsection (b), 
     and shall prepare the report under subsection (c), in 
     consultation with the Secretary of Energy.
                       Subtitle I--Other Matters

     SEC. 1081. FUNDS FOR ADMINISTRATIVE EXPENSES UNDER DEFENSE 
                   EXPORT LOAN GUARANTEE PROGRAM.

       (a) Authority To Use Operation and Maintenance Funds on an 
     Interim Basis.--Section 2540c(d) of title 10, United States 
     Code, is amended--
       (1) by inserting ``(1)'' after ``Fees.--''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) If for any fiscal year amounts in the special 
     account established under paragraph (1) are not available (or 
     are not anticipated to be available) in a sufficient amount 
     for administrative expenses of the Department of Defense for 
     that fiscal year that are directly attributable to the 
     administration of the program under this subchapter, the 
     Secretary may use amounts currently available for operations 
     and maintenance for Defense-wide activities, not to exceed 
     $500,000 in any fiscal year, for those expenses.
       ``(B) The Secretary shall, from funds in the special 
     account established under paragraph (1), replenish operations 
     and maintenance accounts for amounts expended under 
     subparagraph (A) as soon as the Secretary determines 
     practicable.''.
       (b) Effective Date.--Paragraph (2) of section 2540c(d) of 
     title 10, United States Code, as added by subsection (a), 
     shall take effect on October 1, 2000.
       (c) Limitation Pending Submission of Report.--The Secretary 
     of Defense may not exercise the authority provided by 
     paragraph (2) of section 2540c(d) of title 10, United States 
     Code, as added by subsection (a), until the Secretary submits 
     to Congress a report on the operation of the Defense Export 
     Loan Guarantee Program under subchapter V of chapter 148 of 
     title 10, United States Code. The report shall include the 
     following:
       (1) A discussion of the effectiveness of the loan guarantee 
     program in furthering the sale of United States defense 
     articles, defense services, and design and construction 
     services to nations that are specified in section 2540(b) of 
     such title, to include a comparison of the loan guarantee 
     program with other United States Government programs that are 
     intended to contribute to the sale of United States defense 
     articles, defense services, and design and construction 
     services and other comparisons the Secretary determines to be 
     appropriate.
       (2) A discussion of the requirements and resources 
     (including personnel and funds) for continued administration 
     of the loan guarantee program by the Defense Department, to 
     include--
       (A) an itemization of the requirements necessary and 
     resources available (or that could be made available) to 
     administer the loan guarantee program for each of the 
     following entities: the Defense Security Cooperation Agency, 
     the Department of Defense International Cooperation Office, 
     and other Defense Department agencies, offices, or activities 
     as the Secretary may specify; and
       (B) for each such activity, agency, or office, a comparison 
     of the use of Defense Department personnel exclusively to 
     administer, manage, and oversee the program with the use of 
     contracted commercial entities to administer and manage the 
     program.
       (3) Any legislative recommendations that the Secretary 
     believes could improve the effectiveness of the program.
       (4) A determination made by the Secretary of Defense 
     indicating which Defense Department agency, office, or other 
     activity should administer, manage, and oversee the loan 
     guarantee program to increase sales of United States defense 
     articles, defense services, and design and construction 
     services, such determination to be made based on the 
     information and analysis provided in the report.

     SEC. 1082. TRANSIT PASS PROGRAM FOR DEPARTMENT OF DEFENSE 
                   PERSONNEL IN POOR AIR QUALITY AREAS.

       (a) In General.--(1) Chapter 134 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2259. Transit pass program: personnel in poor air 
       quality areas

       ``(a) Establishment of Program.--To encourage Department of 
     Defense personnel assigned to duty, or employed, in poor air 
     quality areas to use means other than single-occupancy motor 
     vehicles to commute to or from the location of their duty 
     assignments, the Secretary of Defense shall exercise the 
     authority provided in section 7905 of title 5 to establish a 
     program to provide a transit pass benefit under subsection 
     (b)(2)(A) of that section for members of the Army, Navy, Air 
     Force, and Marine Corps who are assigned to duty, and to 
     Department of Defense civilian officers and employees who are 
     employed, in a poor air quality area.
       ``(b) Poor Air Quality Areas.--In this section, the term 
     `poor air quality area' means an area--
       ``(1) that is subject to the national ambient air quality 
     standards promulgated by the Administrator of the 
     Environmental Protection Agency under section 109 of the 
     Clean Air Act (42 U.S.C. 7409); and
       ``(2) that, as determined by the Administrator of the 
     Environmental Protection Agency, is a nonattainment area with 
     respect to any of those standards.''.
       (2) The table of sections at the beginning of subchapter II 
     of such chapter is amended by adding at the end the following 
     new item:

``2259. Transit pass program: personnel in poor air quality areas.''.
       (b) Time for Implementation.--The Secretary of Defense 
     shall prescribe the effective date for the transit pass 
     program required under section 2259 of title 10, United 
     States Code, as added by subsection (a). The effective date 
     so prescribed may not be later than the first day of the 
     first month that begins on or after the date that is 180 days 
     after the date of the enactment of this Act.

     SEC. 1083. TRANSFER OF VIETNAM ERA TA-4 AIRCRAFT TO NONPROFIT 
                   FOUNDATION.

       (a) Authority to Convey.--The Secretary of the Navy may 
     convey, without consideration, to the nonprofit Collings 
     Foundation of Stow, Massachusetts (in this section referred 
     to as the ``foundation''), all right, title, and interest of 
     the United States in and to one surplus TA-4 aircraft that is 
     flyable or that can be readily restored to flyable condition. 
     The conveyance shall be made by means of a conditional deed 
     of gift.
       (b) Condition of Aircraft.--(1) The Secretary may not 
     convey ownership of an aircraft under subsection (a) until 
     the Secretary determines that the foundation has altered the 
     aircraft in such manner as the Secretary determines necessary 
     to ensure that the aircraft does not have any capability for 
     use as a platform for launching or releasing munitions or any 
     other combat capability that it was designed to have. The 
     foundation shall complete any such alteration within one year 
     after the date of the enactment of this Act.
       (2) The Secretary is not required to repair or alter the 
     condition of the aircraft before conveying ownership of the 
     aircraft.
       (c) Reverter Upon Breach of Conditions.--The Secretary 
     shall include in the instrument of conveyance of the 
     aircraft--
       (1) a condition that the foundation not convey any 
     ownership interest in, or transfer possession of, the 
     aircraft to any other party without the prior approval of the 
     Secretary;
       (2) a condition that the foundation operate and maintain 
     the aircraft in compliance with all applicable limitations 
     and maintenance requirements imposed by the Administrator of 
     the Federal Aviation Administration; and
       (3) a condition that if the Secretary determines at any 
     time that the foundation has conveyed an ownership interest 
     in, or transferred possession of, the aircraft to any other 
     party without the prior approval of the Secretary, or has 
     failed to comply with the condition set forth in paragraph 
     (2), all right, title, and interest in and to the aircraft, 
     including any repair or alteration of the aircraft, shall 
     revert to the United States, and the United States shall have 
     the right of immediate possession of the aircraft.
       (d) Conveyance at No Cost to the United States.--The 
     conveyance of the aircraft under subsection (a) shall be made 
     at no cost to the United States. Any costs associated with 
     the conveyance, costs of determining compliance with 
     subsection (b), and costs of operation and maintenance of the 
     aircraft conveyed shall be borne by the foundation.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with a conveyance under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
       (f ) Clarification of Liability.--Notwithstanding any other 
     provision of law, upon the conveyance of ownership of a TA-4 
     aircraft to the foundation under subsection (a), the United 
     States shall not be liable for any death, injury, loss, or 
     damage that results from any use of that aircraft by any 
     person other than the United States.

     SEC. 1084. TRANSFER OF 19TH CENTURY CANNON TO MUSEUM.

       (a) Donation Required.--The Secretary of the Army shall 
     convey, without consideration, to the Friends of the 
     Cannonball House, Incorporated (in this section referred to 
     as the ``recipient''), which is a nonprofit corporation that 
     operates the Cannonball House Museum in Macon, Georgia, all 
     right, title, and interest of the United States in and to a 
     12-pounder Napoleon cannon bearing the following markings:
       (1) On the top ``CS''.
       (2) On the face of the muzzle: ``Macon Arsenal, 1864/No.41/
     1164 ET''.
       (3) On the right trunnion: ``Macon Arsenal GEO/1864/No.41/
     WT.1164/E.T.''.
       (b) Additional Terms and Conditions on Conveyance.--The 
     Secretary of the Army shall

[[Page 21437]]

     include in the instrument of conveyance of the cannon under 
     subsection (a)--
       (1) a condition that the recipient not convey any ownership 
     interest in, or transfer possession of, the cannon to any 
     other party without the prior approval of the Secretary; and
       (2) a condition that if the Secretary determines at any 
     time that the recipient has conveyed an ownership interest 
     in, or transferred possession of, the cannon to any other 
     party without the prior approval of the Secretary, all right, 
     title, and interest in and to the cannon shall revert to the 
     United States, and the United States shall have the right of 
     immediate possession of the cannon.
       (c) Relationship to Other Law.--The conveyance required 
     under this section may be carried out without regard to the 
     Act entitled ``An Act for the preservation of American 
     antiquities'', approved June 8, 1906 (16 U.S.C. 431 et seq.), 
     popularly referred to as the ``Antiquities Act of 1906''.
       (d) Acquisition of Replacement Macon Cannon.--If the 
     Secretary of the Army determines that the Army's inventory of 
     Civil War era cannons should include an additional cannon 
     documented as having been manufactured in Macon, Georgia, to 
     replace the cannon conveyed under subsection (a), the 
     Secretary may acquire such a cannon by donation or purchase 
     with funds made available for this purpose.

     SEC. 1085. FEES FOR PROVIDING HISTORICAL INFORMATION TO THE 
                   PUBLIC.

       (a) Army.--(1) Chapter 437 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 4595. Army Military History Institute: fee for 
       providing historical information to the public

       ``(a) Authority.--Except as provided in subsection (b), the 
     Secretary of the Army may charge a person a fee for providing 
     the person with information from the United States Army 
     Military History Institute that is requested by that person.
       ``(b) Exceptions.--A fee may not be charged under this 
     section--
       ``(1) to a person for information that the person requests 
     to carry out a duty as a member of the armed forces or an 
     officer or employee of the United States; or
       ``(2) for a release of information under section 552 of 
     title 5.
       ``(c) Limitation on Amount.--A fee charged for providing 
     information under this section may not exceed the cost of 
     providing the information.
       ``(d) Retention of Fees.--Amounts received under subsection 
     (a) for providing information in any fiscal year shall be 
     credited to the appropriation or appropriations charged the 
     costs of providing information to the public from the United 
     States Army Military History Institute during that fiscal 
     year.
       ``(e) Definitions.--In this section:
       ``(1) The term `United States Army Military History 
     Institute' means the archive for historical records and 
     materials of the Army that the Secretary of the Army 
     designates as the primary archive for such records and 
     materials.
       ``(2) The terms `officer of the United States' and 
     `employee of the United States' have the meanings given the 
     terms `officer' and `employee', respectively, in sections 
     2104 and 2105, respectively, of title 5.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``4595. Army Military History Institute: fee for providing historical 
              information to the public.''.
       (b) Navy.--(1) Chapter 649 of such title is amended by 
     adding at the end the following new section:

     ``Sec. 7582. Naval and Marine Corps Historical Centers: fee 
       for providing historical information to the public

       ``(a) Authority.--Except as provided in subsection (b), the 
     Secretary of the Navy may charge a person a fee for providing 
     the person with information from the United States Naval 
     Historical Center or the Marine Corps Historical Center that 
     is requested by that person.
       ``(b) Exceptions.--A fee may not be charged under this 
     section--
       ``(1) to a person for information that the person requests 
     to carry out a duty as a member of the armed forces or an 
     officer or employee of the United States; or
       ``(2) for a release of information under section 552 of 
     title 5.
       ``(c) Limitation on Amount.--A fee charged for providing 
     information under this section may not exceed the cost of 
     providing the information.
       ``(d) Retention of Fees.--Amounts received under subsection 
     (a) for providing information from the United States Naval 
     Historical Center or the Marine Corps Historical Center in 
     any fiscal year shall be credited to the appropriation or 
     appropriations charged the costs of providing information to 
     the public from that historical center during that fiscal 
     year.
       ``(e) Definitions.--In this section:
       ``(1) The term `United States Naval Historical Center' 
     means the archive for historical records and materials of the 
     Navy that the Secretary of the Navy designates as the primary 
     archive for such records and materials.
       ``(2) The term `Marine Corps Historical Center' means the 
     archive for historical records and materials of the Marine 
     Corps that the Secretary of the Navy designates as the 
     primary archive for such records and materials.
       ``(3) The terms `officer of the United States' and 
     `employee of the United States' have the meanings given the 
     terms `officer' and `employee', respectively, in sections 
     2104 and 2105, respectively, of title 5.''.
       (2) The heading of such chapter is amended by striking 
     ``RELATED''.
       (3)(A) The table of sections at the beginning of such 
     chapter is amended by adding at the end the following new 
     item:

``7582. Naval and Marine Corps Historical Centers: fee for providing 
              historical information to the public.''.
       (B) The item relating to such chapter in the tables of 
     chapters at the beginning of subtitle C of such title and the 
     beginning of part IV of such subtitle is amended by striking 
     out ``Related''.
       (c) Air Force.--(1) Chapter 937 of such title is amended by 
     adding at the end the following new section:

     ``Sec. 9594. Air Force Military History Institute: fee for 
       providing historical information to the public

       ``(a) Authority.--Except as provided in subsection (b), the 
     Secretary of the Air Force may charge a person a fee for 
     providing the person with information from the United States 
     Air Force Military History Institute that is requested by 
     that person.
       ``(b) Exceptions.--A fee may not be charged under this 
     section--
       ``(1) to a person for information that the person requests 
     to carry out a duty as a member of the armed forces or an 
     officer or employee of the United States; or
       ``(2) for a release of information under section 552 of 
     title 5.
       ``(c) Limitation on Amount.--A fee charged for providing 
     information under this section may not exceed the cost of 
     providing the information.
       ``(d) Retention of Fees.--Amounts received under subsection 
     (a) for providing information in any fiscal year shall be 
     credited to the appropriation or appropriations charged the 
     costs of providing information to the public from the United 
     States Air Force Military History Institute during that 
     fiscal year.
       ``(e) Definitions.--In this section:
       ``(1) The term `United States Air Force Military History 
     Institute' means the archive for historical records and 
     materials of the Air Force that the Secretary of the Air 
     Force designates as the primary archive for such records and 
     materials.
       ``(2) The terms `officer of the United States' and 
     `employee of the United States' have the meanings given the 
     terms `officer' and `employee', respectively, in sections 
     2104 and 2105, respectively, of title 5.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``9594. Air Force Military History Institute: fee for providing 
              historical information to the public.''.

     SEC. 1086. GRANTS TO AMERICAN RED CROSS FOR ARMED FORCES 
                   EMERGENCY SERVICES.

       (a) Grants Authorized.--Subject to subsection (b), the 
     Secretary of Defense may make a grant to the American Red 
     Cross in an amount not to exceed $9,400,000 in each of fiscal 
     years 2001, 2002, and 2003 for the support of the Armed 
     Forces Emergency Services program of the American Red Cross.
       (b) Matching Requirement.--The grant under subsection (a) 
     for a fiscal year may not be made until after the American 
     Red Cross Incorporated, certifies to the Secretary of Defense 
     that the American Red Cross will expend for the Armed Forces 
     Emergency Services program for that fiscal year funds, 
     derived from non-Federal sources, in a total amount that 
     equals or exceeds the amount of the grant.

     SEC. 1087. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Section 180(d) is amended by striking ``section 5376'' 
     and inserting ``section 5315''.
       (2) Section 628(c)(2) is amended by striking ``section'' in 
     the second sentence after ``rather than the provisions of'' 
     and inserting ``sections''.
       (3) Section 702(b)(2) is amended by striking ``section 
     230(c)'' and inserting ``section 203(c)''.
       (4) Section 706(c) is amended--
       (A) by striking ``(1)'' after ``(c)''; and
       (B) by striking paragraph (2).
       (5) Section 1074g is amended--
       (A) in subsection (a)(6), by striking ``as part of the 
     regulations established'' and inserting ``in the regulations 
     prescribed'';
       (B) in subsection (a)(7), by striking ``not included on the 
     uniform formulary, but,'' and inserting ``that are not 
     included on the uniform formulary but that are'';
       (C) in subsection (b)(1), by striking ``required by'' in 
     the last sentence and inserting ``prescribed under'';
       (D) in subsection (d)(2), by striking ``Not later than'' 
     and all that follows through ``utilize'' and inserting 
     ``Effective not later than April 5, 2000, the Secretary shall 
     use'';
       (E) in subsection (e)--
       (i) by striking ``Not later than April 1, 2000, the'' and 
     inserting ``The''; and
       (ii) by inserting ``in'' before ``the TRICARE'' and before 
     ``the national'';
       (F) in subsection (f)--
       (i) by striking ``As used in this section--'' and inserting 
     ``In this section:'';
       (ii) by striking ``the'' at the beginning of paragraphs (1) 
     and (2) and inserting ``The''; and
       (iii) by striking ``; and'' at the end of paragraph (1) and 
     inserting a period; and

[[Page 21438]]

       (G) in subsection (g), by striking ``promulgate'' and 
     inserting ``prescribe''.
       (6) Section 1076c(b)(5)(C) is amended by striking 
     ``pursuant to subsection (i)(2) of such section''.
       (7) Section 1095d(b) is amended by striking 
     ``subparagraphs'' and inserting ``subparagraph''.
       (8) Section 1109(b) is amended by striking ``(1)'' before 
     ``The Secretaries''.
       (9) Section 1142(b)(4) is amended by striking ``sections 
     1151, 1152, and 1153 of this title'' and inserting ``sections 
     1152 and 1153 of this title and the Troops-to-Teachers 
     Program Act of 1999 (20 U.S.C. 9301 et seq.)''.
       (10) Section 1448(b)(3)(E)(ii) is amended by striking the 
     second comma after ``October 16, 1998''.
       (11) Section 1598 is amended--
       (A) in subsection (d)(2), by inserting ``as in effect on 
     October 4, 1999,'' after ``of this title,'' both places it 
     appears; and
       (B) in subsection (f), by inserting ``, as in effect on 
     October 4, 1999,'' after ``of this title''.
       (12) Section 2113(f) is amended--
       (A) by striking paragraph (2);
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by designating the penultimate sentence and the last 
     sentence of paragraph (1) as paragraphs (2) and (3), 
     respectively.
       (13) Section 2401(b)(1)(B) is amended by striking 
     ``Committees on Appropriations'' and inserting ``Committee on 
     Appropriations''.
       (14) Section 2410j is amended--
       (A) in subsection (f)(2), by inserting ``as in effect on 
     October 4, 1999,'' after ``of this title,'' both places it 
     appears; and
       (B) in subsection (h), by inserting ``, as in effect on 
     October 4, 1999,'' after ``of this title''.
       (15) Section 2688 is amended by redesignating subsections 
     (i) and (j) as subsections (h) and (i), respectively.
       (16) Section 2814(k) is amended by inserting ``and'' after 
     ``Balanced Budget''.
       (17) Sections 4357(e)(5), 6975(e)(5), and 9356(e)(5) are 
     amended by inserting a close parenthesis after ``80b-2)''.
       (18) Section 5143(c)(2) is amended by striking ``has a 
     grade'' and inserting ``has the grade of''.
       (19) Section 5144(c)(2) is amended by striking ``has a 
     grade'' and inserting ``has the grade of''.
       (20) Section 10218 is amended--
       (A) in subsections (a)(1), (b)(1), (b)(2)(A), and 
     (b)(2)(B)(ii), by striking ``the date of the enactment of 
     this section'' each place it appears and inserting ``October 
     5, 1999,'';
       (B) in subsections (a)(3)(B)(i) and (b)(2)(B)(i), by 
     striking ``the end of the one-year period beginning on the 
     date of the enactment of this subsection'' and inserting 
     ``October 5, 2000'';
       (C) in subsection (b)(1), by striking ``six months after 
     the date of the enactment of this section'' and inserting 
     ``April 5, 2000''; and
       (D) in subsection (b)(3), by striking ``within six months 
     of the date of the enactment of this section'' and inserting 
     ``during the period beginning on October 5, 1999, and ending 
     on April 5, 2000,''.
       (21) Section 12552 is amended by inserting a period at the 
     end.
       (22) Section 18233a(b) is amended--
       (A) in paragraph (1), by striking ``section 2805(c)(1)'' 
     and inserting ``section 2805(c)(1)(A)''; and
       (B) in paragraph (2), by striking ``section 2805(c)(2)'' 
     and inserting ``section 2805(c)(1)(B)''.
       (b) Title 37, United States Code.--Title 37, United States 
     Code, is amended as follows:
       (1) Section 301b(j)(2) is amended by striking ``section 
     301a(a)(6)(A)'' and inserting ``section 301a(a)(6)(B)''.
       (2) Section 403(f)(3) is amended by striking ``regulation'' 
     and inserting ``regulations''.
       (3) Section 404(b)(2) is amended by striking ``section 
     402(e)'' and inserting ``section 403(f)(3)''.
       (4) The section 435 added by section 586(b) of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 113 Stat. 638) is redesignated as section 436, and 
     the item relating to that section in the table of sections at 
     the beginning of chapter 7 is revised to conform to such 
     redesignation.
       (5) Section 1012 is amended by striking ``section 
     402(b)(3)'' and inserting ``section 402(e)''.
       (c) Public Law 106-65.--(1) Effective as of October 5, 
     1999, and as if included therein as enacted, the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 113 Stat. 512 et seq) is amended as follows:
       (A) Section 578 is amended--
       (i) in subsection (j) (113 Stat. 630), by striking 
     ``Chapter 4'' and inserting ``Chapter 7''; and
       (ii) in subsection (k)(4) (113 Stat. 631), by striking 
     ``chapter 4'' and inserting ``chapter 7''.
       (B) Section 586(c)(2) (113 Stat. 639) is amended by 
     striking ``relating to section 434'' and inserting ``added by 
     section 578(k)(4)''.
       (C) Section 601(c) (113 Stat. 645; 37 U.S.C. 1009 note) is 
     amended--
       (i) in the first table, relating to commissioned officers, 
     by striking ``$12,441.00'' in footnote 2 and inserting 
     ``$12,488.70''; and
       (ii) in the fourth table, relating to enlisted members, by 
     striking ``$4,701.00'' in footnote 2 and inserting 
     ``$4,719.00''.
       (D) Section 657(a)(1)(A) (113 Stat. 668; 10 U.S.C. 1450 
     note) is amended by striking ``August 21, 1983'' and 
     inserting ``August 19, 1983''.
       (2) In the case of any former spouse to whom paragraph (3) 
     of section 1450(f) of title 10, United States Code, applies 
     by reason of the amendment made by paragraph (1)(D), the 
     provisions of subsection (b) of section 657 of the National 
     Defense Authorization Act for Fiscal Year 2000 shall be 
     applied by using the date of the enactment of this Act, 
     rather than the date of the enactment of that Act.
       (d) Public Law 105-261.--Effective as of October 17, 1998, 
     and as if included therein as enacted, the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 112 Stat. 1920 et seq.) is amended as 
     follows:
       (1) Section 142 (112 Stat. 1943; 50 U.S.C. 1521 note) is 
     amended--
       (A) in subsection (e), by striking ``1521(f))'' and 
     inserting ``1521 note)''; and
       (B) by redesignating the second subsection (f) as 
     subsection (g).
       (2) Section 503(b)(1) (112 Stat. 2003) is amended by 
     inserting ``its'' after ``record of'' in the first quoted 
     matter therein.
       (3) Section 645(b) (112 Stat. 2050) is amended by striking 
     ``a member'' and inserting ``member'' in the quoted matter 
     therein.
       (4) Section 701 (112 Stat. 2056) is amended--
       (A) in subsection (a), by inserting ``(1)'' before 
     ``Section 1076a(b)(2)''; and
       (B) in subsection (b), by inserting ``of such title'' after 
     ``1076a''.
       (5) Section 802(b) (112 Stat. 2081) is amended by striking 
     ``Administrative'' in the first quoted matter therein and 
     inserting ``Administration''.
       (6) Section 1101(e)(2)(C) (112 Stat. 2140; 5 U.S.C. 3104 
     note) is amended by striking ``subsection (c)(1)'' and 
     inserting ``subsection (c)(2)''.
       (7) Section 1405(k)(2) (112 Stat. 2170; 50 U.S.C. 2301 
     note) is amended by striking ``subchapter'' and inserting 
     ``chapter''.
       (e) Public Law 105-85.--The National Defense Authorization 
     Act for Fiscal Year 1998 (Public Law 105-85) is amended as 
     follows:
       (1) Section 602(d)(1)(A) (111 Stat. 1773; 37 U.S.C. 402 
     note) is amended by striking ``of'' the first place it 
     appears in the matter preceding clause (i).
       (2) Section 1221(a)(3) (22 U.S.C. 1928 note), as amended by 
     section 1233(a)(2)(A) of Public Law 105-261 (112 Stat. 2156), 
     is amended by striking the second close parenthesis after 
     ``relief efforts''.
       (f) Title 5, United States Code.--Title 5, United States 
     Code, is amended as follows:
       (1) Section 3329 is amended--
       (A) in subsection (a), by striking ``such term'' and 
     inserting ``the term `military technician (dual status)' ''; 
     and
       (B) in subsection (b), by striking ``section 1332 of title 
     10'' and inserting ``section 12732 of title 10''.
       (2) Section 5531 is amended by striking ``sections 5532 
     and'' in the matter preceding paragraph (1) and inserting 
     ``section''.
       (3) Section 8116(a)(4) is amended by striking ``, subject 
     to'' and all that follows through ``United States Code''.
       (4) Section 8339(g) is amended by striking ``the 
     application of the limitation in section 5532 of this title, 
     or'' in the third sentence.
       (5) Section 8344(h)(1) is amended by inserting ``(as in 
     effect before the repeal of that section by section 651(a) of 
     Public Law 106-65)'' after ``section 5532(f)(2) of this 
     title''.
       (g) Other Laws.--
       (1) Section 834(e) of the National Defense Authorization 
     Act for Fiscal Years 1990 and 1991 (15 U.S.C. 637 note) is 
     amended by striking the second period after ``2005''.
       (2) Section 2905(b)(4) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended by transferring 
     subparagraph (G) so as to appear immediately before 
     subparagraph (H), as added by section 2821(a) of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 113 Stat. 853).
       (3) Section 686(b) of title 14, United States Code, is 
     amended--
       (A) in paragraph (1), by striking ``section 403(b)'' and 
     inserting ``section 403(e)''; and
       (B) in paragraph (2), by striking ``a basic allowance for 
     quarters under section 403 of title 37, and, if in a high 
     housing cost area, a variable housing allowance under section 
     403a of that title'' and inserting ``a basic allowance for 
     housing under section 403 of title 37''.
       (4) Chapter 701 of title 36, United States Code, relating 
     to the Federal charter of the Fleet Reserve Association, is 
     amended in sections 70102(a) and 70108(a) by striking 
     ``Delaware'' and inserting ``Pennsylvania''.
       (5) Section 7426 of title 38, United States Code, is 
     amended by striking subsection (c).
       (6) The item relating to chapter 112 in the table of 
     chapters at the beginning of subtitle II of title 46, United 
     States Code, is amended by revising the second and third 
     words so that the initial letter of each of those words is 
     lower case.
       (7) Section 405(f)(6)(B) of the Departments of Labor, 
     Health and Human Services, and Education, and Related 
     Agencies Appropriations Act, 1999 (as contained in section 
     101(f) of division A of Public Law 105-277; 112 Stat. 2681-
     430), is amended by striking ``Act of title'' in the first 
     quoted matter therein and inserting ``Act or title''.
       (8) Section 1403(c)(6) of the Defense Dependents' Education 
     Act of 1978 (20 U.S.C. 922(c)(6)) is amended by striking 
     ``the'' before ``Assistant Secretary of Defense''.
       (9) Effective as of October 5, 1999, section 224 b. of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2274(b)) is amended by 
     striking ``$500,000'' and inserting ``$50,000''.
       (h) Coordination With Other Amendments.--For purposes of 
     applying amendments made by provisions of this Act other than 
     provisions of this section, this section shall be treated as 
     having been enacted immediately before the other provisions 
     of this Act.

[[Page 21439]]



     SEC. 1088. MAXIMUM SIZE OF PARCEL POST PACKAGES TRANSPORTED 
                   OVERSEAS FOR ARMED FORCES POST OFFICES.

       Section 3401(b) of title 39, United States Code, is amended 
     by striking ``100 inches in length and girth combined'' in 
     paragraphs (2) and (3) and inserting ``the maximum size 
     allowed by the Postal Service for fourth class parcel post 
     (known as `Standard Mail (B)')''.

     SEC. 1089. SENSE OF CONGRESS REGARDING TAX TREATMENT OF 
                   MEMBERS RECEIVING SPECIAL PAY FOR DUTY SUBJECT 
                   TO HOSTILE FIRE OR IMMINENT DANGER.

       It is the sense of Congress that members of the Armed 
     Forces who receive special pay under section 310 of title 37, 
     United States Code, for duty subject to hostile fire or 
     imminent danger should receive the same treatment under 
     Federal income tax laws as members serving in combat zones.

     SEC. 1090. ORGANIZATION AND MANAGEMENT OF CIVIL AIR PATROL.

       (a) In General.--Chapter 909 of title 10, United States 
     Code, is amended to read as follows:

                    ``CHAPTER 909--CIVIL AIR PATROL

``Sec.
``9441.  Status as federally chartered corporation; purposes.
``9442.  Status as volunteer civilian auxiliary of the Air Force.
``9443.  Activities performed as federally chartered nonprofit 
              corporation.
``9444.  Activities performed as auxiliary of the Air Force.
``9445.  Funds appropriated for the Civil Air Patrol.
``9446.  Miscellaneous personnel authorities.
``9447.  Board of Governors.
``9448.  Regulations.

     ``Sec. 9441. Status as federally chartered corporation; 
       purposes

       ``(a) Status.--(1) The Civil Air Patrol is a nonprofit 
     corporation that is federally chartered under section 40301 
     of title 36.
       ``(2) Except as provided in section 9442(b)(2) of this 
     title, the Civil Air Patrol is not an instrumentality of the 
     Federal Government for any purpose.
       ``(b) Purposes.--The purposes of the Civil Air Patrol are 
     set forth in section 40302 of title 36.

     ``Sec. 9442. Status as volunteer civilian auxiliary of the 
       Air Force

       ``(a) Volunteer Civilian Auxiliary.--The Civil Air Patrol 
     is a volunteer civilian auxiliary of the Air Force when the 
     services of the Civil Air Patrol are used by any department 
     or agency in any branch of the Federal Government.
       ``(b) Use by Air Force.--(1) The Secretary of the Air Force 
     may use the services of the Civil Air Patrol to fulfill the 
     noncombat programs and missions of the Department of the Air 
     Force.
       ``(2) The Civil Air Patrol shall be deemed to be an 
     instrumentality of the United States with respect to any act 
     or omission of the Civil Air Patrol, including any member of 
     the Civil Air Patrol, in carrying out a mission assigned by 
     the Secretary of the Air Force.

     ``Sec. 9443. Activities performed as federally chartered 
       nonprofit corporation

       ``(a) Use of Federally Provided Resources.--In its status 
     as a federally chartered nonprofit corporation, the Civil Air 
     Patrol may use equipment, supplies, and other resources, 
     including aircraft, motor vehicles, computers, and 
     communications equipment, provided to the Civil Air Patrol by 
     a department or agency of the Federal Government or acquired 
     by or for the Civil Air Patrol with appropriated funds (or 
     with funds of the Civil Air Patrol, but reimbursed from 
     appropriated funds)--
       ``(1) to provide assistance requested by State or local 
     governmental authorities to perform disaster relief missions 
     and activities, other emergency missions and activities, and 
     nonemergency missions and activities; and
       ``(2) to fulfill its other purposes set forth in section 
     40302 of title 36.
       ``(b) Use Subject to Applicable Laws.--The use of 
     equipment, supplies, or other resources under subsection (a) 
     is subject to the laws and regulations that govern the use by 
     nonprofit corporations of federally provided assets or of 
     assets purchased with appropriated funds, as the case may be.
       ``(c) Authority Not Contingent on Reimbursement.--The 
     authority for the Civil Air Patrol to provide assistance 
     under subsection (a)(1) is not contingent on the Civil Air 
     Patrol being reimbursed for the cost of providing the 
     assistance. If the Civil Air Patrol elects to require 
     reimbursement for the provision of assistance under such 
     subsection, the Civil Air Patrol may establish the 
     reimbursement rate at a rate less than the rates charged by 
     private sector sources for equivalent services.
       ``(d) Liability Insurance.--The Secretary of the Air Force 
     may provide the Civil Air Patrol with funds for paying the 
     cost of liability insurance to cover missions and activities 
     carried out under this section.

     ``Sec. 9444. Activities performed as auxiliary of the Air 
       Force

       ``(a) Air Force Support for Activities.--The Secretary of 
     the Air Force may furnish to the Civil Air Patrol in 
     accordance with this section any equipment, supplies, and 
     other resources that the Secretary determines necessary to 
     enable the Civil Air Patrol to fulfill the missions assigned 
     by the Secretary to the Civil Air Patrol as an auxiliary of 
     the Air Force.
       ``(b) Forms of Air Force Support.--The Secretary of the Air 
     Force may, under subsection (a)--
       ``(1) give, lend, or sell to the Civil Air Patrol without 
     regard to the Federal Property and Administrative Services 
     Act of 1949 (40 U.S.C. 471 et seq.)--
       ``(A) major items of equipment (including aircraft, motor 
     vehicles, computers, and communications equipment) that are 
     excess to the military departments; and
       ``(B) necessary related supplies and training aids that are 
     excess to the military departments;
       ``(2) permit the use, with or without charge, of services 
     and facilities of the Air Force;
       ``(3) furnish supplies (including fuel, lubricants, and 
     other items required for vehicle and aircraft operations) or 
     provide funds for the acquisition of supplies;
       ``(4) establish, maintain, and supply liaison officers of 
     the Air Force at the national, regional, State, and 
     territorial headquarters of the Civil Air Patrol;
       ``(5) detail or assign any member of the Air Force or any 
     officer, employee, or contractor of the Department of the Air 
     Force to any liaison office at the national, regional, State, 
     or territorial headquarters of the Civil Air Patrol;
       ``(6) detail any member of the Air Force or any officer, 
     employee, or contractor of the Department of the Air Force to 
     any unit or installation of the Civil Air Patrol to assist in 
     the training programs of the Civil Air Patrol;
       ``(7) authorize the payment of travel expenses and 
     allowances, at rates not to exceed those paid to employees of 
     the United States under subchapter I of chapter 57 of title 
     5, to members of the Civil Air Patrol while the members are 
     carrying out programs or missions specifically assigned by 
     the Air Force;
       ``(8) provide funds for the national headquarters of the 
     Civil Air Patrol, including--
       ``(A) funds for the payment of staff compensation and 
     benefits, administrative expenses, travel, per diem and 
     allowances, rent, utilities, other operational expenses of 
     the national headquarters; and
       ``(B) to the extent considered necessary by the Secretary 
     of the Air Force to fulfill Air Force requirements, funds for 
     the payment of compensation and benefits for key staff at 
     regional, State, or territorial headquarters;
       ``(9) authorize the payment of expenses of placing into 
     serviceable condition, improving, and maintaining equipment 
     (including aircraft, motor vehicles, computers, and 
     communications equipment) owned or leased by the Civil Air 
     Patrol;
       ``(10) provide funds for the lease or purchase of items of 
     equipment that the Secretary determines necessary for the 
     Civil Air Patrol;
       ``(11) support the Civil Air Patrol cadet program by 
     furnishing--
       ``(A) articles of the Air Force uniform to cadets without 
     cost; and
       ``(B) any other support that the Secretary of the Air Force 
     determines is consistent with Air Force missions and 
     objectives; and
       ``(12) provide support, including appropriated funds, for 
     the Civil Air Patrol aerospace education program to the 
     extent that the Secretary of the Air Force determines 
     appropriate for furthering the fulfillment of Air Force 
     missions and objectives.
       ``(c) Assistance by Other Agencies.--(1) The Secretary of 
     the Air Force may arrange for the use by the Civil Air Patrol 
     of such facilities and services under the jurisdiction of the 
     Secretary of the Army, the Secretary of the Navy, or the head 
     of any other department or agency of the United States as the 
     Secretary of the Air Force considers to be needed by the 
     Civil Air Patrol to carry out its mission.
       ``(2) An arrangement for use of facilities or services of a 
     military department or other department or agency under this 
     subsection shall be subject to the agreement of the Secretary 
     of the military department or head of the other department or 
     agency, as the case may be.
       ``(3) Each arrangement under this subsection shall be made 
     in accordance with regulations prescribed under section 9448 
     of this title.

     ``Sec. 9445. Funds appropriated for the Civil Air Patrol

       ``Funds appropriated for the Civil Air Patrol shall be 
     available only for the exclusive use of the Civil Air Patrol.

     ``Sec. 9446. Miscellaneous personnel authorities

       ``(a) Use of Retired Air Force Personnel.--(1) Upon the 
     request of a person retired from service in the Air Force, 
     the Secretary of the Air Force may enter into a personal 
     services contract with that person providing for the person 
     to serve as an administrator or liaison officer for the Civil 
     Air Patrol. The qualifications of a person to provide the 
     services shall be determined and approved in accordance with 
     regulations prescribed under section 9448 of this title.
       ``(2) To the extent provided in a contract under paragraph 
     (1), a person providing services under the contract may 
     accept services on behalf of the Air Force.
       ``(3) A person, while providing services under a contract 
     authorized under paragraph (1), may not be considered to be 
     on active duty or inactive-duty training for any purpose.
       ``(b) Use of Civil Air Patrol Chaplains.--The Secretary of 
     the Air Force may use the services of Civil Air Patrol 
     chaplains in support of the Air Force active duty and reserve 
     component forces to the extent and under conditions that the 
     Secretary determines appropriate.

     ``Sec. 9447. Board of Governors

       ``(a) Governing Body.--The Board of Governors of the Civil 
     Air Patrol is the governing body of the Civil Air Patrol.
       ``(b) Composition.--The Board of Governors is composed of 
     11 members as follows:

[[Page 21440]]

       ``(1) Four members appointed by the Secretary of the Air 
     Force, who may be active or retired officers of the Air Force 
     (including reserve components of the Air Force), employees of 
     the United States, or private citizens.
       ``(2) Four members of the Civil Air Patrol, selected in 
     accordance with the constitution and bylaws of the Civil Air 
     Patrol.
       ``(3) Three members appointed or selected as provided in 
     subsection (c) from among personnel of any Federal Government 
     agencies, public corporations, nonprofit associations, and 
     other organizations that have an interest and expertise in 
     civil aviation and the Civil Air Patrol mission.
       ``(c) Appointments From Interested Organizations.--(1) 
     Subject to paragraph (2), the members of the Board of 
     Governors referred to in subsection (b)(3) shall be appointed 
     jointly by the Secretary of the Air Force and the National 
     Commander of the Civil Air Patrol.
       ``(2) Any vacancy in the position of a member referred to 
     in paragraph (1) that is not filled under that paragraph 
     within 90 days shall be filled by majority vote of the other 
     members of the Board.
       ``(d) Chairman.--The Chairman of the Board of Governors 
     shall be chosen by the members of the Board of Governors from 
     among the members of the Board referred to in paragraphs (1) 
     and (2) of subsection (b) and shall serve for a term of two 
     years. The position of Chairman shall be held on a rotating 
     basis between members of the Board appointed by the Secretary 
     of the Air Force under paragraph (1) of subsection (b) and 
     members of the Board selected under paragraph (2) of that 
     subsection.
       ``(e) Powers.--(1) The Board of Governors shall, subject to 
     paragraphs (2) and (3), exercise the powers granted to the 
     Civil Air Patrol under section 40304 of title 36.
       ``(2) Any exercise by the Board of the power to amend the 
     constitution or bylaws of the Civil Air Patrol or to adopt a 
     new constitution or bylaws shall be subject to approval by a 
     majority of the members of the Board.
       ``(3) Neither the Board of Governors nor any other 
     component of the Civil Air Patrol may modify or terminate any 
     requirement or authority set forth in this section.
       ``(f) Personal Liability for Breach of a Fiduciary Duty.--
     (1) Subject to paragraph (2), the Board of Governors may take 
     such action as is necessary to limit the personal liability 
     of a member of the Board of Governors to the Civil Air 
     Patrol, or to any of its members, for monetary damages for a 
     breach of fiduciary duty while serving as a member of the 
     Board.
       ``(2) The Board may not limit the liability of a member of 
     the Board of Governors to the Civil Air Patrol, or to any of 
     its members, for monetary damages for any of the following:
       ``(A) A breach of the member's duty of loyalty to the Civil 
     Air Patrol or its members.
       ``(B) Any act or omission that is not in good faith or that 
     involves intentional misconduct or a knowing violation of 
     law.
       ``(C) Participation in any transaction from which the 
     member directly or indirectly derives an improper personal 
     benefit.
       ``(3) Nothing in this subsection shall be construed as 
     rendering section 207 or 208 of title 18 inapplicable in any 
     respect to a member of the Board of Governors who is a member 
     of the Air Force on active duty, an officer on a retired list 
     of the Air Force, or an employee of the United States.
       ``(g) Personal Liability for Breach of a Fiduciary Duty.--
     (1) Except as provided in paragraph (2), no member of the 
     Board of Governors or officer of the Civil Air Patrol shall 
     be personally liable for damages for any injury or death or 
     loss or damage of property resulting from a tortious act or 
     omission of an employee or member of the Civil Air Patrol.
       ``(2) Paragraph (1) does not apply to a member of the Board 
     of Governors or officer of the Civil Air Patrol for a 
     tortious act or omission in which the member or officer, as 
     the case may be, was personally involved, whether in breach 
     of a civil duty or in commission of a criminal offense.
       ``(3) Nothing in this subsection shall be construed to 
     restrict the applicability of common law protections and 
     rights that a member of the Board of Governors or officer of 
     the Civil Air Patrol may have.
       ``(4) The protections provided under this subsection are in 
     addition to the protections provided under subsection (f).

     ``Sec. 9448. Regulations

       ``(a) Authority.--The Secretary of the Air Force shall 
     prescribe regulations for the administration of this chapter.
       ``(b) Required Regulations.--The regulations shall include 
     the following:
       ``(1) Regulations governing the conduct of the activities 
     of the Civil Air Patrol when it is performing its duties as a 
     volunteer civilian auxiliary of the Air Force under section 
     9442 of this title.
       ``(2) Regulations for providing support by the Air Force 
     and for arranging assistance by other agencies under section 
     9444 of this title.
       ``(3) Regulations governing the qualifications of retired 
     Air Force personnel to serve as an administrator or liaison 
     officer for the Civil Air Patrol under a personal services 
     contract entered into under section 9446(a) of this title.
       ``(c) Approval by Secretary of Defense.--The regulations 
     required by subsection (b)(2) shall be subject to the 
     approval of the Secretary of Defense.''.
       (b) Conforming Amendments.--(1) Section 40302 of title 36, 
     United States Code, is amended--
       (A) by striking ``to--'' in the matter preceding paragraph 
     (1) and inserting ``as follows:'';
       (B) by inserting ``To'' after the paragraph designation in 
     each of paragraphs (1), (2), (3), and (4);
       (C) by striking the semicolon at the end of paragraphs 
     (1)(B) and (2) and inserting a period;
       (D) by striking ``; and'' at the end of paragraph (3) and 
     inserting a period; and
       (E) by adding at the end the following:
       ``(5) To assist the Department of the Air Force in 
     fulfilling its noncombat programs and missions.''.
       (2)(A) Section 40303 of such title is amended--
       (i) by inserting ``(a) Membership.--'' before 
     ``Eligibility''; and
       (ii) by adding at the end the following:
       ``(b) Governing Body.--The Civil Air Patrol has a Board of 
     Governors. The composition and responsibilities of the Board 
     of Governors are set forth in section 9447 of title 10.''.
       (B) The heading for such section is amended to read as 
     follows:

     ``Sec. 40303. Membership and governing body''.

       (C) The item relating to such section in the table of 
     sections at the beginning of chapter 403 of title 36, United 
     States Code, is amended to read as follows:

``40303. Membership and governing body.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect 120 days after the date of the enactment of 
     this Act.

     SEC. 1091. ADDITIONAL DUTIES FOR COMMISSION TO ASSESS UNITED 
                   STATES NATIONAL SECURITY SPACE MANAGEMENT AND 
                   ORGANIZATION.

       Section 1622(a) of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 814; 10 
     U.S.C. 111 note) is amended by adding at the end the 
     following new paragraph:
       ``(6) The advisability of--
       ``(A) various actions to eliminate the de facto requirement 
     that specified officers in the United States Space Command be 
     flight rated that results from the dual assignment of 
     officers to that command and to one or more other commands in 
     positions in which such officers are expressly required to be 
     flight rated;
       ``(B) the establishment of a requirement that, as a 
     condition of the assignment of a general or flag officer to 
     the United States Space Command, the officer have experience 
     in space, missile, or information operations that was gained 
     through either acquisition or operational experience; and
       ``(C) rotating the command of the United States Space 
     Command among the Armed Forces.''.

     SEC. 1092. COMMISSION ON THE FUTURE OF THE UNITED STATES 
                   AEROSPACE INDUSTRY.

       (a) Establishment.--There is established a commission to be 
     known as the ``Commission on the Future of the United States 
     Aerospace Industry'' (in this section referred to as the 
     ``Commission'').
       (b) Membership.--(1) The Commission shall be composed of 12 
     members appointed, not later than March 1, 2001, as follows:
       (A) Up to six members shall be appointed by the President.
       (B) Two members shall be appointed by the Speaker of the 
     House of Representatives.
       (C) Two members shall be appointed by the majority leader 
     of the Senate.
       (D) One member shall be appointed by the minority leader of 
     the Senate.
       (E) One member shall be appointed by the minority leader of 
     the House of Representatives.
       (2) The members of the Commission shall be appointed from 
     among persons with extensive experience and national 
     reputations in aerospace manufacturing, economics, finance, 
     national security, international trade, or foreign policy and 
     persons who are representative of labor organizations 
     associated with the aerospace industry.
       (3) Members shall be appointed for the life of the 
     Commission. A vacancy in the Commission shall not affect its 
     powers, but shall be filled in the same manner as the 
     original appointment.
       (4) The President shall designate one member of the 
     Commission to serve as the chairman of the Commission.
       (5) The Commission shall meet at the call of the chairman. 
     A majority of the members shall constitute a quorum, but a 
     lesser number may hold hearings.
       (c) Duties.--(1) The Commission shall--
       (A) study the issues associated with the future of the 
     United States aerospace industry in the global economy, 
     particularly in relationship to United States national 
     security; and
       (B) assess the future importance of the domestic aerospace 
     industry for the economic and national security of the United 
     States.
       (2) In order to fulfill its responsibilities, the 
     Commission shall study the following:
       (A) The budget process of the United States Government, 
     particularly with a view to assessing the adequacy of 
     projected budgets of the federal departments and agencies for 
     aerospace research and development and procurement.
       (B) The acquisition process of the Government, particularly 
     with a view to assessing--
       (i) the adequacy of the current acquisition process of 
     federal departments and agencies; and
       (ii) the procedures for developing and fielding aerospace 
     systems incorporating new technologies in a timely fashion.
       (C) The policies, procedures, and methods for the financing 
     and payment of government contracts.
       (D) Statutes and regulations governing international trade 
     and the export of technology, particularly with a view to 
     assessing--

[[Page 21441]]

       (i) the extent to which the current system for controlling 
     the export of aerospace goods, services, and technologies 
     reflects an adequate balance between the need to protect 
     national security and the need to ensure unhindered access to 
     the global marketplace; and
       (ii) the adequacy of United States and multilateral trade 
     laws and policies for maintaining the international 
     competitiveness of the United States aerospace industry.
       (E) Policies governing taxation, particularly with a view 
     to assessing the impact of current tax laws and practices on 
     the international competitiveness of the aerospace industry.
       (F) Programs for the maintenance of the national space 
     launch infrastructure, particularly with a view to assessing 
     the adequacy of current and projected programs for 
     maintaining the national space launch infrastructure.
       (G) Programs for the support of science and engineering 
     education, including current programs for supporting 
     aerospace science and engineering efforts at institutions of 
     higher learning, with a view to determining the adequacy of 
     those programs.
       (d) Report.--(1) Not later than March 1, 2002, the 
     Commission shall submit a report on its activities to the 
     President and Congress.
       (2) The report shall include the following:
       (A) The Commission's findings and conclusions.
       (B) The Commission's recommendations for actions by federal 
     departments and agencies to support the maintenance of a 
     robust aerospace industry in the United States in the 21st 
     century and any recommendations for statutory and regulatory 
     changes to support the implementation of the Commission's 
     findings.
       (C) A discussion of the appropriate means for implementing 
     the Commission's recommendations.
       (e) Administrative Requirements and Authorities.--(1) The 
     Director of the Office of Management and Budget shall ensure 
     that the Commission is provided such administrative services, 
     facilities, staff, and other support services as may be 
     necessary. Any expenses of the Commission shall be paid from 
     funds available to the Director.
       (2) The Commission may hold hearings, sit and act at times 
     and places, take testimony, and receive evidence that the 
     Commission considers advisable to carry out the purposes of 
     this section.
       (3) The Commission may request directly from any department 
     or agency of the United States any information that the 
     Commission considers necessary to carry out the provisions of 
     this section. To the extent consistent with applicable 
     requirements of law and regulations, the head of such 
     department or agency shall furnish such information to the 
     Commission.
       (4) The Commission may use the United States mails in the 
     same manner and under the same conditions as other 
     departments and agencies of the United States.
       (f) Commission Personnel Matters.--(1) Members of the 
     Commission shall serve without additional compensation for 
     their service on the Commission, except that members 
     appointed from among private citizens may be allowed travel 
     expenses, including per diem in lieu of subsistence, as 
     authorized by law for persons serving intermittently in 
     government service under subchapter I of chapter 57 of title 
     5, United States Code, while away from their homes and places 
     of business in the performance of services for the 
     Commission.
       (2) The chairman of the Commission may appoint staff of the 
     Commission, request the detail of Federal employees, and 
     accept temporary and intermittent services in accordance with 
     section 3161 of title 5, United States Code (as added by 
     section 1101 of this Act).
       (g) Termination.--The Commission shall terminate 30 days 
     after the date of the submission of its report under 
     subsection (d).

     SEC. 1093. DRUG ADDICTION TREATMENT.

       (a) In General.--Section 303(g) of the Controlled 
     Substances Act (21 U.S.C. 823(g)) is amended--
       (1) in paragraph (2), by striking ``(A) security'' and 
     inserting ``(i) security'', and by striking ``(B) the 
     maintenance'' and inserting ``(ii) the maintenance'';
       (2) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively;
       (3) by inserting ``(1)'' after ``(g)'';
       (4) by striking ``Practitioners who dispense'' and 
     inserting ``Except as provided in paragraph (2), 
     practitioners who dispense''; and
       (5) by adding at the end the following paragraph:
       ``(2)(A) Subject to subparagraphs (D) and (J), the 
     requirements of paragraph (1) are waived in the case of the 
     dispensing (including the prescribing), by a practitioner, of 
     narcotic drugs in schedule III, IV, or V or combinations of 
     such drugs if the practitioner meets the conditions specified 
     in subparagraph (B) and the narcotic drugs or combinations of 
     such drugs meet the conditions specified in subparagraph (C).
       ``(B) For purposes of subparagraph (A), the conditions 
     specified in this subparagraph with respect to a practitioner 
     are that, before the initial dispensing of narcotic drugs in 
     schedule III, IV, or V or combinations of such drugs to 
     patients for maintenance or detoxification treatment, the 
     practitioner submit to the Secretary a notification of the 
     intent of the practitioner to begin dispensing the drugs or 
     combinations for such purpose, and that the notification 
     contain the following certifications by the practitioner:
       ``(i) The practitioner is a qualifying physician (as 
     defined in subparagraph (G)).
       ``(ii) With respect to patients to whom the practitioner 
     will provide such drugs or combinations of drugs, the 
     practitioner has the capacity to refer the patients for 
     appropriate counseling and other appropriate ancillary 
     services.
       ``(iii) In any case in which the practitioner is not in a 
     group practice, the total number of such patients of the 
     practitioner at any one time will not exceed the applicable 
     number. For purposes of this clause, the applicable number is 
     30, except that the Secretary may by regulation change such 
     total number.
       ``(iv) In any case in which the practitioner is in a group 
     practice, the total number of such patients of the group 
     practice at any one time will not exceed the applicable 
     number. For purposes of this clause, the applicable number is 
     30, except that the Secretary may by regulation change such 
     total number, and the Secretary for such purposes may by 
     regulation establish different categories on the basis of the 
     number of practitioners in a group practice and establish for 
     the various categories different numerical limitations on the 
     number of such patients that the group practice may have.
       ``(C) For purposes of subparagraph (A), the conditions 
     specified in this subparagraph with respect to narcotic drugs 
     in schedule III, IV, or V or combinations of such drugs are 
     as follows:
       ``(i) The drugs or combinations of drugs have, under the 
     Federal Food, Drug, and Cosmetic Act or section 351 of the 
     Public Health Service Act, been approved for use in 
     maintenance or detoxification treatment.
       ``(ii) The drugs or combinations of drugs have not been the 
     subject of an adverse determination. For purposes of this 
     clause, an adverse determination is a determination published 
     in the Federal Register and made by the Secretary, after 
     consultation with the Attorney General, that the use of the 
     drugs or combinations of drugs for maintenance or 
     detoxification treatment requires additional standards 
     respecting the qualifications of practitioners to provide 
     such treatment, or requires standards respecting the 
     quantities of the drugs that may be provided for unsupervised 
     use.
       ``(D)(i) A waiver under subparagraph (A) with respect to a 
     practitioner is not in effect unless (in addition to 
     conditions under subparagraphs (B) and (C)) the following 
     conditions are met:
       ``(I) The notification under subparagraph (B) is in writing 
     and states the name of the practitioner.
       ``(II) The notification identifies the registration issued 
     for the practitioner pursuant to subsection (f).
       ``(III) If the practitioner is a member of a group 
     practice, the notification states the names of the other 
     practitioners in the practice and identifies the 
     registrations issued for the other practitioners pursuant to 
     subsection (f).
       ``(ii) Upon receiving a notification under subparagraph 
     (B), the Attorney General shall assign the practitioner 
     involved an identification number under this paragraph for 
     inclusion with the registration issued for the practitioner 
     pursuant to subsection (f). The identification number so 
     assigned shall be appropriate to preserve the confidentiality 
     of patients for whom the practitioner has dispensed narcotic 
     drugs under a waiver under subparagraph (A).
       ``(iii) Not later than 45 days after the date on which the 
     Secretary receives a notification under subparagraph (B), the 
     Secretary shall make a determination of whether the 
     practitioner involved meets all requirements for a waiver 
     under subparagraph (B). If the Secretary fails to make such 
     determination by the end of the such 45-day period, the 
     Attorney General shall assign the physician an identification 
     number described in clause (ii) at the end of such period.
       ``(E)(i) If a practitioner is not registered under 
     paragraph (1) and, in violation of the conditions specified 
     in subparagraphs (B) through (D), dispenses narcotic drugs in 
     schedule III, IV, or V or combinations of such drugs for 
     maintenance treatment or detoxification treatment, the 
     Attorney General may, for purposes of section 304(a)(4), 
     consider the practitioner to have committed an act that 
     renders the registration of the practitioner pursuant to 
     subsection (f) to be inconsistent with the public interest.
       ``(ii)(I) Upon the expiration of 45 days from the date on 
     which the Secretary receives a notification under 
     subparagraph (B), a practitioner who in good faith submits a 
     notification under subparagraph (B) and reasonably believes 
     that the conditions specified in subparagraphs (B) through 
     (D) have been met shall, in dispensing narcotic drugs in 
     schedule III, IV, or V or combinations of such drugs for 
     maintenance treatment or detoxification treatment, be 
     considered to have a waiver under subparagraph (A) until 
     notified otherwise by the Secretary, except that such a 
     practitioner may commence to prescribe or dispense such 
     narcotic drugs for such purposes prior to the expiration of 
     such 45-day period if it facilitates the treatment of an 
     individual patient and both the Secretary and the Attorney 
     General are notified by the practitioner of the intent to 
     commence prescribing or dispensing such narcotic drugs.
       ``(II) For purposes of subclause (I), the publication in 
     the Federal Register of an adverse determination by the 
     Secretary pursuant to subparagraph (C)(ii) shall (with 
     respect to the narcotic drug or combination involved) be 
     considered to be a notification provided by the Secretary to 
     practitioners, effective upon the expiration of the 30-day 
     period beginning on the date on which the adverse 
     determination is so published.

[[Page 21442]]

       ``(F)(i) With respect to the dispensing of narcotic drugs 
     in schedule III, IV, or V or combinations of such drugs to 
     patients for maintenance or detoxification treatment, a 
     practitioner may, in his or her discretion, dispense such 
     drugs or combinations for such treatment under a registration 
     under paragraph (1) or a waiver under subparagraph (A) 
     (subject to meeting the applicable conditions).
       ``(ii) This paragraph may not be construed as having any 
     legal effect on the conditions for obtaining a registration 
     under paragraph (1), including with respect to the number of 
     patients who may be served under such a registration.
       ``(G) For purposes of this paragraph:
       ``(i) The term `group practice' has the meaning given such 
     term in section 1877(h)(4) of the Social Security Act.
       ``(ii) The term `qualifying physician' means a physician 
     who is licensed under State law and who meets one or more of 
     the following conditions:
       ``(I) The physician holds a subspecialty board 
     certification in addiction psychiatry from the American Board 
     of Medical Specialties.
       ``(II) The physician holds an addiction certification from 
     the American Society of Addiction Medicine.
       ``(III) The physician holds a subspecialty board 
     certification in addiction medicine from the American 
     Osteopathic Association.
       ``(IV) The physician has, with respect to the treatment and 
     management of opiate-dependent patients, completed not less 
     than eight hours of training (through classroom situations, 
     seminars at professional society meetings, electronic 
     communications, or otherwise) that is provided by the 
     American Society of Addiction Medicine, the American Academy 
     of Addiction Psychiatry, the American Medical Association, 
     the American Osteopathic Association, the American 
     Psychiatric Association, or any other organization that the 
     Secretary determines is appropriate for purposes of this 
     subclause.
       ``(V) The physician has participated as an investigator in 
     one or more clinical trials leading to the approval of a 
     narcotic drug in schedule III, IV, or V for maintenance or 
     detoxification treatment, as demonstrated by a statement 
     submitted to the Secretary by the sponsor of such approved 
     drug.
       ``(VI) The physician has such other training or experience 
     as the State medical licensing board (of the State in which 
     the physician will provide maintenance or detoxification 
     treatment) considers to demonstrate the ability of the 
     physician to treat and manage opiate-dependent patients.
       ``(VII) The physician has such other training or experience 
     as the Secretary considers to demonstrate the ability of the 
     physician to treat and manage opiate-dependent patients. Any 
     criteria of the Secretary under this subclause shall be 
     established by regulation. Any such criteria are effective 
     only for 3 years after the date on which the criteria are 
     promulgated, but may be extended for such additional discrete 
     3-year periods as the Secretary considers appropriate for 
     purposes of this subclause. Such an extension of criteria may 
     only be effectuated through a statement published in the 
     Federal Register by the Secretary during the 30-day period 
     preceding the end of the 3-year period involved.
       ``(H)(i) In consultation with the Administrator of the Drug 
     Enforcement Administration, the Administrator of the 
     Substance Abuse and Mental Health Services Administration, 
     the Director of the National Institute on Drug Abuse, and the 
     Commissioner of Food and Drugs, the Secretary shall issue 
     regulations (through notice and comment rulemaking) or issue 
     practice guidelines to address the following:
       ``(I) Approval of additional credentialing bodies and the 
     responsibilities of additional credentialing bodies.
       ``(II) Additional exemptions from the requirements of this 
     paragraph and any regulations under this paragraph.

     Nothing in such regulations or practice guidelines may 
     authorize any Federal official or employee to exercise 
     supervision or control over the practice of medicine or the 
     manner in which medical services are provided.
       ``(ii) Not later than 120 days after the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, the Secretary shall 
     issue a treatment improvement protocol containing best 
     practice guidelines for the treatment and maintenance of 
     opiate-dependent patients. The Secretary shall develop the 
     protocol in consultation with the Director of the National 
     Institute on Drug Abuse, the Administrator of the Drug 
     Enforcement Administration, the Commissioner of Food and 
     Drugs, the Administrator of the Substance Abuse and Mental 
     Health Services Administration, and other substance abuse 
     disorder professionals. The protocol shall be guided by 
     science.
       ``(I) During the 3-year period beginning on the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, a State may not 
     preclude a practitioner from dispensing or prescribing drugs 
     in schedule III, IV, or V, or combinations of such drugs, to 
     patients for maintenance or detoxification treatment in 
     accordance with this paragraph unless, before the expiration 
     of that 3-year period, the State enacts a law prohibiting a 
     practitioner from dispensing such drugs or combinations of 
     drug.
       ``(J)(i) This paragraph takes effect on the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, and remains in effect 
     thereafter except as provided in clause (iii) (relating to a 
     decision by the Secretary or the Attorney General that this 
     paragraph should not remain in effect).
       ``(ii) For purposes relating to clause (iii), the Secretary 
     and the Attorney General may, during the 3-year period 
     beginning on the date of the enactment of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001, make 
     determinations in accordance with the following:
       ``(I) The Secretary may make a determination of whether 
     treatments provided under waivers under subparagraph (A) have 
     been effective forms of maintenance treatment and 
     detoxification treatment in clinical settings; may make a 
     determination of whether such waivers have significantly 
     increased (relative to the beginning of such period) the 
     availability of maintenance treatment and detoxification 
     treatment; and may make a determination of whether such 
     waivers have adverse consequences for the public health.
       ``(II) The Attorney General may make a determination of the 
     extent to which there have been violations of the numerical 
     limitations established under subparagraph (B) for the number 
     of individuals to whom a practitioner may provide treatment; 
     may make a determination of whether waivers under 
     subparagraph (A) have increased (relative to the beginning of 
     such period) the extent to which narcotic drugs in schedule 
     III, IV, or V or combinations of such drugs are being 
     dispensed or possessed in violation of this Act; and may make 
     a determination of whether such waivers have adverse 
     consequences for the public health.
       ``(iii) If, before the expiration of the period specified 
     in clause (ii), the Secretary or the Attorney General 
     publishes in the Federal Register a decision, made on the 
     basis of determinations under such clause, that this 
     paragraph should not remain in effect, this paragraph ceases 
     to be in effect 60 days after the date on which the decision 
     is so published. The Secretary shall in making any such 
     decision consult with the Attorney General, and shall in 
     publishing the decision in the Federal Register include any 
     comments received from the Attorney General for inclusion in 
     the publication. The Attorney General shall in making any 
     such decision consult with the Secretary, and shall in 
     publishing the decision in the Federal Register include any 
     comments received from the Secretary for inclusion in the 
     publication.''.
       (b) Conforming Amendments.--Section 304 of the Controlled 
     Substances Act (21 U.S.C. 824) is amended--
       (1) in subsection (a), in the matter after and below 
     paragraph (5), by striking ``section 303(g)'' each place such 
     term appears and inserting ``section 303(g)(1)''; and
       (2) in subsection (d), by striking ``section 303(g)'' and 
     inserting ``section 303(g)(1)''.
       (c) Additional Authorization of Appropriations.--For the 
     purpose of assisting the Secretary of Health and Human 
     Services with the additional duties established for the 
     Secretary pursuant to the amendments made by this section, 
     there are authorized to be appropriated, in addition to other 
     authorizations of appropriations that are available for such 
     purpose, such sums as may be necessary for each of fiscal 
     years 2001 through 2003.
       (d) Coordination of Provisions.--(1) If the Drug Addiction 
     Treatment Act of 2000 is enacted before this Act, the 
     provisions of this section shall not take effect.
       (2) If the Drug Addiction Treatment Act of 2000 is enacted 
     after this Act, the amendments made by this section shall be 
     deemed for all purposes to have been made by section 3502 of 
     that Act and this section shall cease to be in effect as of 
     that enactment.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

          Subtitle A--Civilian Personnel Management Generally

Sec. 1101. Employment and compensation of employees for temporary 
              organizations established by law or Executive order.
Sec. 1102. Assistive technology accommodations program.
Sec. 1103. Extension of authority for voluntary separations in 
              reductions in force.
Sec. 1104. Electronic maintenance of performance appraisal systems.
Sec. 1105. Study on civilian personnel services.

              Subtitle B--Demonstration and Pilot Programs

Sec. 1111. Pilot program for reengineering the equal employment 
              opportunity complaint process.
Sec. 1112. Work safety demonstration program.
Sec. 1113. Extension, expansion, and revision of authority for 
              experimental personnel program for scientific and 
              technical personnel.
Sec. 1114. Clarification of personnel management authority under 
              personnel demonstration project.

                   Subtitle C--Educational Assistance

Sec. 1121. Restructuring the restriction on degree training.
Sec. 1122. Student loan repayment programs.
Sec. 1123. Extension of authority for tuition reimbursement and 
              training for civilian employees in the defense 
              acquisition workforce.

                       Subtitle D--Other Benefits

Sec. 1131. Additional special pay for foreign language proficiency 
              beneficial for United States national security interests.
Sec. 1132. Approval authority for cash awards in excess of $10,000.

[[Page 21443]]

Sec. 1133. Leave for crews of certain vessels.
Sec. 1134. Life insurance for emergency essential Department of Defense 
              employees.

              Subtitle E--Intelligence Civilian Personnel

Sec. 1141. Expansion of defense civilian intelligence personnel system 
              positions.
Sec. 1142. Increase in number of positions authorized for the Defense 
              Intelligence Senior Executive Service.

  Subtitle F--Voluntary Separation Incentive Pay and Early Retirement 
                               Authority

Sec. 1151. Extension, revision, and expansion of authorities for use of 
              voluntary separation incentive pay and voluntary early 
              retirement.
Sec. 1152. Department of Defense employee voluntary early retirement 
              authority.
Sec. 1153. Limitations.
          Subtitle A--Civilian Personnel Management Generally

     SEC. 1101. EMPLOYMENT AND COMPENSATION OF EMPLOYEES FOR 
                   TEMPORARY ORGANIZATIONS ESTABLISHED BY LAW OR 
                   EXECUTIVE ORDER.

       (a) In General.--Chapter 31 of title 5, United States Code, 
     is amended by adding at the end the following new subchapter:

    ``SUBCHAPTER IV--TEMPORARY ORGANIZATIONS ESTABLISHED BY LAW OR 
                            EXECUTIVE ORDER

     ``Sec. 3161. Employment and compensation of employees

       ``(a) Definition of Temporary Organization.--For the 
     purposes of this subchapter, the term `temporary 
     organization' means a commission, committee, board, or other 
     organization that--
       ``(1) is established by law or Executive order for a 
     specific period not in excess of three years for the purpose 
     of performing a specific study or other project; and
       ``(2) is terminated upon the completion of the study or 
     project or upon the occurrence of a condition related to the 
     completion of the study or project.
       ``(b) Employment Authority.--(1) Notwithstanding the 
     provisions of chapter 51 of this title, the head of a 
     temporary organization may appoint persons to positions of 
     employment in a temporary organization in such numbers and 
     with such skills as are necessary for the performance of the 
     functions required of a temporary organization.
       ``(2) The period of an appointment under paragraph (1) may 
     not exceed three years, except that under regulations 
     prescribed by the Office of Personnel Management the period 
     of appointment may be extended for up to an additional two 
     years.
       ``(3) The positions of employment in a temporary 
     organization are in the excepted service of the civil 
     service.
       ``(c) Detail Authority.--Upon the request of the head of a 
     temporary organization, the head of any department or agency 
     of the Government may detail, on a nonreimbursable basis, any 
     personnel of the department or agency to that organization to 
     assist in carrying out its duties.
       ``(d) Compensation.--(1) The rate of basic pay for an 
     employee appointed under subsection (b) shall be established 
     under regulations prescribed by the Office of Personnel 
     Management without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of this title.
       ``(2) The rate of basic pay for the chairman, a member, an 
     executive director, a staff director, or another executive 
     level position of a temporary organization may not exceed the 
     maximum rate of basic pay established for the Senior 
     Executive Service under section 5382 of this title.
       ``(3) Except as provided in paragraph (4), the rate of 
     basic pay for other positions in a temporary organization may 
     not exceed the maximum rate of basic pay for grade GS-15 of 
     the General Schedule under section 5332 of this title.
       ``(4) The rate of basic pay for a senior staff position of 
     a temporary organization may, in a case determined by the 
     head of the temporary organization as exceptional, exceed the 
     maximum rate of basic pay authorized under paragraph (3), but 
     may not exceed the maximum rate of basic pay authorized for 
     an executive level position under paragraph (2).
       ``(5) In this subsection, the term `basic pay' includes 
     locality pay provided for under section 5304 of this title.
       ``(e) Travel Expenses.--An employee of a temporary 
     organization, whether employed on a full-time or part-time 
     basis, may be allowed travel and transportation expenses, 
     including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of this title, while traveling away from the 
     employee's regular place of business in the performance of 
     services for the temporary organization.
       ``(f) Benefits.--An employee appointed under subsection (b) 
     shall be afforded the same benefits and entitlements as are 
     provided temporary employees under this title.
       ``(g) Return Rights.--An employee serving under a career or 
     career conditional appointment or the equivalent in an agency 
     who transfers to or converts to an appointment in a temporary 
     organization with the consent of the head of the agency is 
     entitled to be returned to the employee's former position or 
     a position of like seniority, status, and pay without grade 
     or pay retention in the agency if the employee--
       ``(1) is being separated from the temporary organization 
     for reasons other than misconduct, neglect of duty, or 
     malfeasance; and
       ``(2) applies for return not later than 30 days before the 
     earlier of--
       ``(A) the date of the termination of the employment in the 
     temporary organization; or
       ``(B) the date of the termination of the temporary 
     organization.
       ``(h) Temporary and Intermittent Services.--The head of a 
     temporary organization may procure for the organization 
     temporary and intermittent services under section 3109(b) of 
     this title.
       ``(i) Acceptance of Volunteer Services.--(1) The head of a 
     temporary organization may accept volunteer services 
     appropriate to the duties of the organization without regard 
     to section 1342 of title 31.
       ``(2) Donors of voluntary services accepted for a temporary 
     organization under this subsection may include the following:
       ``(A) Advisors.
       ``(B) Experts.
       ``(C) Members of the commission, committee, board, or other 
     temporary organization, as the case may be.
       ``(D) A person performing services in any other capacity 
     determined appropriate by the head of the temporary 
     organization.
       ``(3) The head of the temporary organization--
       ``(A) shall ensure that each person performing voluntary 
     services accepted under this subsection is notified of the 
     scope of the voluntary services accepted;
       ``(B) shall supervise the volunteer to the same extent as 
     employees receiving compensation for similar services; and
       ``(C) shall ensure that the volunteer has appropriate 
     credentials or is otherwise qualified to perform in each 
     capacity for which the volunteer's services are accepted.
       ``(4) A person providing volunteer services accepted under 
     this subsection shall be considered an employee of the 
     Federal Government in the performance of those services for 
     the purposes of the following provisions of law:
       ``(A) Chapter 81 of this title, relating to compensation 
     for work-related injuries.
       ``(B) Chapter 171 of title 28, relating to tort claims.
       ``(C) Chapter 11 of title 18, relating to conflicts of 
     interest.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

    ``SUBCHAPTER IV--TEMPORARY ORGANIZATIONS ESTABLISHED BY LAW OR 
                            EXECUTIVE ORDER

``Sec.
``3161. Employment and compensation of employees.''.

     SEC. 1102. ASSISTIVE TECHNOLOGY ACCOMMODATIONS PROGRAM.

       (a) Authority To Provide Technology, Devices, and 
     Services.--Chapter 81 of title 10, United States Code, is 
     amended by inserting after section 1581 the following new 
     section:

     ``Sec. 1582. Assistive technology, assistive technology 
       devices, and assistive technology services

       ``(a) Authority.--The Secretary of Defense may provide 
     assistive technology, assistive technology devices, and 
     assistive technology services to the following:
       ``(1) Department of Defense employees with disabilities.
       ``(2) Organizations within the Department that have 
     requirements to make programs or facilities accessible to, 
     and usable by, persons with disabilities.
       ``(3) Any other department or agency of the Federal 
     Government, upon the request of the head of that department 
     or agency, for its employees with disabilities or for 
     satisfying a requirement to make its programs or facilities 
     accessible to, and usable by, persons with disabilities.
       ``(b) Definitions.--In this section, the terms `assistive 
     technology', `assistive technology device', `assistive 
     technology service', and `disability' have the meanings given 
     those terms in section 3 of the Assistive Technology Act of 
     1998 (29 U.S.C. 3002).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1581 the following new item:

``1582. Assistive technology, assistive technology devices, and 
              assistive technology services.''.

     SEC. 1103. EXTENSION OF AUTHORITY FOR VOLUNTARY SEPARATIONS 
                   IN REDUCTIONS IN FORCE.

       Section 3502(f)(5) of title 5, United States Code, is 
     amended by striking ``September 30, 2001'' and inserting 
     ``September 30, 2005''.

     SEC. 1104. ELECTRONIC MAINTENANCE OF PERFORMANCE APPRAISAL 
                   SYSTEMS.

       Section 4302 of title 5, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(c) In accordance with regulations which the Office shall 
     prescribe, the head of an agency may administer and maintain 
     a performance appraisal system electronically.''.

     SEC. 1105. STUDY ON CIVILIAN PERSONNEL SERVICES.

       (a) Study Required.--The Secretary of Defense shall assess 
     the manner in which personnel services are provided for 
     civilian personnel in the Department of Defense and determine 
     whether--
       (1) administration of such services should continue to be 
     centralized in individual military services and Defense 
     Agencies or whether such services should be centralized 
     within designated

[[Page 21444]]

     geographical areas to provide services to all Department of 
     Defense elements;
       (2) offices that perform such services should be 
     established to perform specific functions rather than cover 
     an established geographical area;
       (3) processes and functions of civilian personnel offices 
     should be reengineered to provide greater efficiency and 
     better service to management and employees of the Department 
     of Defense; and
       (4) efficiencies could be gained by public-private 
     competition of the delivery of any of the personnel services 
     for civilian personnel of the Department of Defense.
       (b) Report.--Not later than January 1, 2002, the Secretary 
     of Defense shall submit a report on the study, including 
     recommendations, to the Committees on Armed Services of the 
     Senate and the House of Representatives. The report shall 
     include the Secretary's assessment of the items described in 
     subsection (a), and, if appropriate, a proposal for a 
     demonstration program to test the concepts developed under 
     the study. The Secretary may also include any recommendations 
     for legislation or other actions that the Secretary considers 
     appropriate to increase the effectiveness and efficiency of 
     the delivery of personnel services with respect to civilian 
     personnel of the Department of Defense.
              Subtitle B--Demonstration and Pilot Programs

     SEC. 1111. PILOT PROGRAM FOR REENGINEERING THE EQUAL 
                   EMPLOYMENT OPPORTUNITY COMPLAINT PROCESS.

       (a) Pilot Program.--(1) The Secretary of Defense shall 
     carry out a pilot program to improve processes for the 
     resolution of equal employment opportunity complaints by 
     civilian employees of the Department of Defense. Complaints 
     processed under the pilot program shall be subject to the 
     procedural requirements established for the pilot program and 
     shall not be subject to the procedural requirements of part 
     1614 of title 29 of the Code of Federal Regulations or other 
     regulations, directives, or regulatory restrictions 
     prescribed by the Equal Employment Opportunity Commission.
       (2) The pilot program shall include procedures to reduce 
     processing time and eliminate redundancy with respect to 
     processes for the resolution of equal employment opportunity 
     complaints, reinforce local management and chain-of-command 
     accountability, and provide the parties involved with early 
     opportunity for resolution.
       (3) The Secretary may carry out the pilot program for a 
     period of three years, beginning on January 1, 2001.
       (4)(A) Participation in the pilot program shall be 
     voluntary on the part of the complainant. Complainants who 
     participate in the pilot program shall retain the right to 
     appeal a final agency decision to the Equal Employment 
     Opportunity Commission and to file suit in district court. 
     The Equal Employment Opportunity Commission shall not reverse 
     a final agency decision on the grounds that the agency did 
     not comply with the regulatory requirements promulgated by 
     the Commission.
       (B) Subparagraph (A) shall apply to all cases--
       (i) pending as of January 1, 2001, before the Equal 
     Employment Opportunity Commission involving a civilian 
     employee who filed a complaint under the pilot program of the 
     Department of the Navy to improve processes for the 
     resolution of equal employment opportunity complaints; and
       (ii) hereinafter filed with the Commission under the pilot 
     program established by this section.
       (5) The pilot program shall be carried out in at least one 
     military department and two Defense Agencies.
       (b) Report.--Not later than 90 days following the end of 
     the first and last full or partial fiscal years during which 
     the pilot program is implemented, the Comptroller General 
     shall submit to Congress a report on the pilot program. Such 
     report shall contain the following:
       (1) A description of the processes tested by the pilot 
     program.
       (2) The results of such testing.
       (3) Recommendations for changes to the processes for the 
     resolution of equal employment opportunity complaints as a 
     result of such pilot program.
       (4) A comparison of the processes used, and results 
     obtained, under the pilot program to traditional and 
     alternative dispute resolution processes used in the 
     government or private industry.

     SEC. 1112. WORK SAFETY DEMONSTRATION PROGRAM.

       (a) Establishment.--The Secretary of Defense shall carry 
     out a defense employees work safety demonstration program.
       (b) Private Sector Work Safety Models.--Under the 
     demonstration program, the Secretary shall--
       (1) adopt for use in the workplace of civilian employees of 
     the Department of Defense such work safety models used by 
     employers in the private sector that the Secretary considers 
     as being representative of the best work safety practices in 
     use by private sector employers; and
       (2) determine whether the use of those practices in the 
     Department of Defense improves the work safety record of 
     Department of Defense employees.
       (c) Sites.--(1) The Secretary shall carry out the 
     demonstration program--
       (A) at not fewer than two installations of each of the 
     Armed Forces (other than the Coast Guard), for employees of 
     the military department concerned; and
       (B) in at least two Defense Agencies (as defined in section 
     101(a)(11) of title 10, United States Code).
       (2) The Secretary shall select the installations and 
     Defense Agencies from among the installations and Defense 
     Agencies listed in the Federal Worker 2000 Presidential 
     Initiative.
       (d) Period for Program.--The demonstration program shall 
     begin not later than 180 days after the date of the enactment 
     of this Act and shall terminate on September 30, 2002.
       (e) Reports.--(1) The Secretary of Defense shall submit an 
     interim report on the demonstration program to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives not later than December 1, 2001. The interim 
     report shall contain, at a minimum, for each site of the 
     demonstration program the following:
       (A) A baseline assessment of the lost workday injury rate.
       (B) A comparison of the lost workday injury rate for fiscal 
     year 2000 with the lost workday injury rate for fiscal year 
     1999.
       (C) The direct and indirect costs associated with all lost 
     workday injuries.
       (2) The Secretary of Defense shall submit a final report on 
     the demonstration program to the Committees on Armed Services 
     of the Senate and the House of Representatives not later than 
     December 1, 2002. The final report shall contain, at a 
     minimum, for each site of the demonstration program the 
     following:
       (A) The Secretary's determination on the issue described in 
     subsection (b)(2).
       (B) A comparison of the lost workday injury rate under the 
     program with the baseline assessment of the lost workday 
     injury rate.
       (C) The lost workday injury rate for fiscal year 2002.
       (D) A comparison of the direct and indirect costs 
     associated with all lost workday injuries for fiscal year 
     2002 with the direct and indirect costs associated with all 
     lost workday injuries for fiscal year 2001.
       (f) Funding.--Of the amount authorized to be appropriated 
     under section 301(5), $5,000,000 shall be available for the 
     demonstration program under this section.

     SEC. 1113. EXTENSION, EXPANSION, AND REVISION OF AUTHORITY 
                   FOR EXPERIMENTAL PERSONNEL PROGRAM FOR 
                   SCIENTIFIC AND TECHNICAL PERSONNEL.

       (a) Extension of Program.--Section 1101 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261; 112 Stat. 2139; 5 U.S.C. 3104 note) 
     is amended--
       (1) in subsection (a), by striking ``the 5-year period 
     beginning on the date of the enactment of this Act'' and 
     inserting ``the program period specified in subsection 
     (e)(1)'';
       (2) in subsection (e), by striking paragraph (1) and 
     inserting the following:

     ``(1) The period for carrying out the program authorized 
     under this section begins on October 17, 1998, and ends on 
     October 16, 2005.''; and
       (3) in subsection (f), by striking ``on the day before the 
     termination of the program'' and inserting ``on the last day 
     of the program period specified in subsection (e)(1)''.
       (b) Expansion of Scope.--Subsection (a) of such section, as 
     amended by subsection (a)(1) of this section, is further 
     amended by inserting before the period at the end the 
     following: ``and research and development projects 
     administered by laboratories designated for the program by 
     the Secretary from among the laboratories of each of the 
     military departments''.
       (c) Limitation on Number of Appointments.--Subsection 
     (b)(1) of such section is amended to read as follows:
       ``(1) without regard to any provision of title 5, United 
     States Code, governing the appointment of employees in the 
     civil service, appoint scientists and engineers from outside 
     the civil service and uniformed services (as such terms are 
     defined in section 2101 of such title) to--
       ``(A) not more than 40 scientific and engineering positions 
     in the Defense Advanced Research Projects Agency;
       ``(B) not more than 40 scientific and engineering positions 
     in the designated laboratories of each of the military 
     services; and
       ``(C) not more than a total of 10 scientific and 
     engineering positions in the National Imagery and Mapping 
     Agency and the National Security Agency;''.
       (d) Rates of Pay for Appointees.--Subsection (b)(2) of such 
     section is amended by inserting after ``United States Code,'' 
     the following: ``as increased by locality-based comparability 
     payments under section 5304 of such title,''.
       (e) Commensurate Extension of Requirement for Annual 
     Report.--Subsection (g) of such section is amended by 
     striking ``2004'' and inserting ``2006''.
       (f) Amendment of Section Heading.--The heading for such 
     section is amended to read as follows:

     ``SEC. 1101. EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC 
                   AND TECHNICAL PERSONNEL.''.

     SEC. 1114. CLARIFICATION OF PERSONNEL MANAGEMENT AUTHORITY 
                   UNDER PERSONNEL DEMONSTRATION PROJECT.

       (a) Elimination of Requirement for OPM Review and 
     Approval.--Section 342 of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2721) 
     is amended--
       (1) in subsection (b)(1), by striking ``, with the approval 
     of the Director of the Office of Personnel Management,''; and
       (2) in subsection (b)(3)--

[[Page 21445]]

       (A) by striking ``and'' at the end of subparagraph (A);
       (B) by striking ``section 4703.'' and inserting ``section 
     4703; and'' at the end of subparagraph (B); and
       (C) by inserting at the end the following new subparagraph 
     (C):
       ``(C) the Secretary shall exercise the authorities granted 
     to the Office of Personnel Management under such section 
     4703.''.
       (b) Increase in Level of Authorized Pay.--Section 342(b) of 
     such Act is further amended by adding at the end the 
     following new paragraph:
       ``(5) The limitations in section 5373 of title 5, United 
     States Code, do not apply to the authority of the Secretary 
     under this section to prescribe salary schedules and other 
     related benefits.''.
                   Subtitle C--Educational Assistance

     SEC. 1121. RESTRUCTURING THE RESTRICTION ON DEGREE TRAINING.

       Section 4107 of title 5, United States Code, is amended--
       (1) in subsection (a), by striking ``subsection (b)'' and 
     inserting ``subsections (b) and (c)'';
       (2) in subsection (b)(1), by striking ``subsection (a)'' 
     and inserting ``subsection (a) or (c)''; and
       (3) by adding at the end the following new subsection:
       ``(c) With respect to an employee of the Department of 
     Defense--
       ``(1) this chapter does not authorize, except as provided 
     in subsection (b) of this section, the selection and 
     assignment of the employee for training, or the payment or 
     reimbursement of the costs of training, for--
       ``(A) the purpose of providing an opportunity to the 
     employee to obtain an academic degree in order to qualify for 
     appointment to a particular position for which the academic 
     degree is a basic requirement; or
       ``(B) the sole purpose of providing an opportunity to the 
     employee to obtain one or more academic degrees, unless such 
     opportunity is part of a planned, systematic, and coordinated 
     program of professional development endorsed by the 
     Department of Defense; and
       ``(2) any course of post-secondary education delivered 
     through classroom, electronic, or other means shall be 
     administered or conducted by an institution recognized under 
     standards implemented by a national or regional accrediting 
     body, except in a case in which such standards do not exist 
     or the use of such standards would not be appropriate.''.

     SEC. 1122. STUDENT LOAN REPAYMENT PROGRAMS.

       (a) Covered Student Loans.--Section 5379(a)(1)(B) of title 
     5, United States Code, is amended--
       (1) in clause (i), by inserting ``(20 U.S.C. 1071 et 
     seq.)'' before the semicolon;
       (2) in clause (ii), by striking ``part E of title IV of the 
     Higher Education Act of 1965'' and inserting ``part D or E of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a 
     et seq., 1087aa et seq.)''; and
       (3) in clause (iii), by striking ``part C of title VII of 
     Public Health Service Act or under part B of title VIII of 
     such Act'' and inserting ``part A of title VII of the Public 
     Health Service Act (42 U.S.C. 292 et seq.) or under part E of 
     title VIII of such Act (42 U.S.C. 297a et seq.)''.
       (b) Personnel Covered.--(1) Section 5379(a)(2) of title 5, 
     United States Code, is amended to read as follows:
       ``(2) An employee shall be ineligible for benefits under 
     this section if the employee occupies a position that is 
     excepted from the competitive service because of its 
     confidential, policy-determining, policy-making, or policy-
     advocating character.''.
       (2) Section 5379(b)(1) of title 5, United States Code, is 
     amended by striking ``professional, technical, or 
     administrative''.
       (c) Regulations.--(1) Not later than 60 days after the date 
     of enactment of this Act, the Director of the Office of 
     Personnel Management shall issue proposed regulations under 
     section 5379(g) of title 5, United States Code. The Director 
     shall provide for a period of not less than 60 days for 
     public comment on the regulations.
       (2) Not later than 240 days after the date of enactment of 
     this Act, the Director shall issue final regulations.
       (d) Annual Reports.--Section 5379 of title 5, United States 
     Code, is amended by adding at the end the following:
       ``(h)(1) Each head of an agency shall maintain, and 
     annually submit to the Director of the Office of Personnel 
     Management, information with respect to the agency on--
       ``(A) the number of Federal employees selected to receive 
     benefits under this section;
       ``(B) the job classifications for the recipients; and
       ``(C) the cost to the Federal Government of providing the 
     benefits.
       ``(2) The Director of the Office of Personnel Management 
     shall prepare, and annually submit to Congress, a report 
     containing the information submitted under paragraph (1), and 
     information identifying the agencies that have provided 
     benefits under this section.''.

     SEC. 1123. EXTENSION OF AUTHORITY FOR TUITION REIMBURSEMENT 
                   AND TRAINING FOR CIVILIAN EMPLOYEES IN THE 
                   DEFENSE ACQUISITION WORKFORCE.

       Section 1745(a)(2) of title 10, United States Code, is 
     amended by striking ``September 30, 2001'' and inserting 
     ``September 30, 2010''.
                       Subtitle D--Other Benefits

     SEC. 1131. ADDITIONAL SPECIAL PAY FOR FOREIGN LANGUAGE 
                   PROFICIENCY BENEFICIAL FOR UNITED STATES 
                   NATIONAL SECURITY INTERESTS.

       (a) In General.--Chapter 81 of title 10, United States 
     Code, is amended by inserting after section 1596 the 
     following new section:

     ``Sec. 1596a. Foreign language proficiency: special pay for 
       proficiency beneficial for other national security 
       interests

       ``(a) Authority.--The Secretary of Defense may pay special 
     pay under this section to an employee of the Department of 
     Defense who--
       ``(1) has been certified by the Secretary to be proficient 
     in a foreign language identified by the Secretary as being a 
     language in which proficiency by civilian personnel of the 
     Department is necessary because of national security 
     interests;
       ``(2) is assigned duties requiring proficiency in that 
     foreign language during a contingency operation supported by 
     the armed forces; and
       ``(3) is not receiving special pay under section 1596 of 
     this title.
       ``(b) Rate.--The rate of special pay for an employee under 
     this section shall be prescribed by the Secretary, but may 
     not exceed five percent of the employee's rate of basic pay.
       ``(c) Relationship to Other Pay and Allowances.--Special 
     pay under this section is in addition to any other pay or 
     allowances to which the employee is entitled.
       ``(d) Regulations.--The Secretary of Defense shall 
     prescribe regulations to carry out this section.''.
       (b) Amendment To Distinguish Other Foreign Language 
     Proficiency Special Pay.--The heading for section 1596 of 
     title 10, United States Code, is amended to read as follows:

     ``Sec. 1596. Foreign language proficiency: special pay for 
       proficiency beneficial for intelligence interests''.

       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 81 of such title is amended by striking 
     the item relating to section 1596 and inserting the following 
     new items:

``1596. Foreign language proficiency: special pay for proficiency 
              beneficial for intelligence interests.
``1596a. Foreign language proficiency: special pay for proficiency 
              beneficial for other national security interests.''.

     SEC. 1132. APPROVAL AUTHORITY FOR CASH AWARDS IN EXCESS OF 
                   $10,000.

       Section 4502 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(f) The Secretary of Defense may grant a cash award under 
     subsection (b) of this section without regard to the 
     requirements for certification and approval provided in that 
     subsection.''.

     SEC. 1133. LEAVE FOR CREWS OF CERTAIN VESSELS.

       Section 6305(c)(2) of title 5, United States Code, is 
     amended to read as follows:
       ``(2) may not be made the basis for a lump-sum payment, 
     except that civil service mariners of the Military Sealift 
     Command on temporary promotion aboard ship may be paid the 
     difference between their temporary and permanent rates of pay 
     for leave accrued under this section and section 6303 and not 
     otherwise used during the temporary promotion upon the 
     expiration or termination of the temporary promotion; and''.

     SEC. 1134. LIFE INSURANCE FOR EMERGENCY ESSENTIAL DEPARTMENT 
                   OF DEFENSE EMPLOYEES.

       (a) In General.--Section 8702 of title 5, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(c) Notwithstanding a notice previously given under 
     subsection (b), an employee of the Department of Defense who 
     is designated as an emergency essential employee under 
     section 1580 of title 10 shall be insured if the employee, 
     within 60 days after the date of the designation, elects to 
     be insured under a policy of insurance under this chapter. An 
     election under the preceding sentence shall be effective when 
     provided to the Office in writing, in the form prescribed by 
     the Office, within such 60-day period.''.
       (b) Applicability.--For purposes of section 8702(c) of 
     title 5, United States Code (as added by subsection (a)), an 
     employee of the Department of Defense who is designated as an 
     emergency essential employee under section 1580 of title 10, 
     United States Code, before the date of the enactment of this 
     Act shall be deemed to be so designated on the date of the 
     enactment of this Act.
              Subtitle E--Intelligence Civilian Personnel

     SEC. 1141. EXPANSION OF DEFENSE CIVILIAN INTELLIGENCE 
                   PERSONNEL SYSTEM POSITIONS.

       (a) Authority for Senior DOD Intelligence Positions 
     Throughout Department of Defense.--Section 1601(a)(1) of 
     title 10, United States Code, is amended--
       (1) by striking ``in the intelligence components of the 
     Department of Defense and the military departments'' and 
     inserting ``in the Department of Defense''; and
       (2) by striking ``of those components and departments'' and 
     inserting ``of the Department''.
       (b) Conforming Amendment for Persons Eligible for 
     Postemployment Assistance.--Section 1611 of such title is 
     amended--
       (1) in subsection (a)(1), by striking ``an intelligence 
     component of the Department of Defense'' and inserting ``a 
     defense intelligence position'';
       (2) in subsection (b)--
       (A) by striking ``sensitive position in an intelligence 
     component of the Department of Defense'' in the matter 
     preceding paragraph (1) and inserting ``sensitive defense 
     intelligence position''; and
       (B) by striking ``with the intelligence component'' in 
     paragraphs (1) and (2) and inserting ``in a defense 
     intelligence position'';

[[Page 21446]]

       (3) in subsection (d), by striking ``an intelligence 
     component of the Department of Defense'' and inserting ``in a 
     defense intelligence position''; and
       (4) by striking subsection (f).
       (c) Conforming Amendment for Definition of Defense 
     Intelligence Position.--Section 1614(1) of such title is 
     amended by striking ``of an intelligence component of the 
     Department of Defense or of a military department'' and 
     inserting ``of the Department of Defense''.

     SEC. 1142. INCREASE IN NUMBER OF POSITIONS AUTHORIZED FOR THE 
                   DEFENSE INTELLIGENCE SENIOR EXECUTIVE SERVICE.

       Section 1606(a) of title 10, United States Code, is amended 
     by striking ``492'' and inserting ``517''.
  Subtitle F--Voluntary Separation Incentive Pay and Early Retirement 
                               Authority

     SEC. 1151. EXTENSION, REVISION, AND EXPANSION OF AUTHORITIES 
                   FOR USE OF VOLUNTARY SEPARATION INCENTIVE PAY 
                   AND VOLUNTARY EARLY RETIREMENT.

       (a) Revision and Addition of Purposes for Department of 
     Defense VSIP.--Subsection (b) of section 5597 of title 5, 
     United States Code, is amended by inserting after ``transfer 
     of function,'' the following: ``workforce restructuring (to 
     meet mission needs, achieve one or more strength reductions, 
     correct skill imbalances, or reduce the number of high-grade, 
     managerial, or supervisory positions),''.
       (b) Eligibility.--Subsection (c) of such section is 
     amended--
       (1) in paragraph (2), by inserting ``objective and 
     nonpersonal'' after ``similar''; and
       (2) by adding at the end the following:

     ``A determination of which employees are within the scope of 
     an offer of separation pay shall be made only on the basis of 
     consistent and well-documented application of the relevant 
     criteria.''.
       (c) Installment Payments.--Subsection (d) of such section 
     is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) shall be paid in a lump-sum or in installments;'';
       (2) by striking ``and'' at the end of paragraph (3);
       (3) by striking the period at the end of paragraph (4) and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(5) if paid in installments, shall cease to be paid upon 
     the recipient's acceptance of employment by the Federal 
     Government, or commencement of work under a personal services 
     contract, as described in subsection (g)(1).''.
       (d) Applicability of Repayment Requirement to Reemployment 
     Under Personal Services Contracts.--Subsection (g)(1) of such 
     section is amended by inserting after ``employment with the 
     Government of the United States'' the following: ``, or who 
     commences work for an agency of the United States through a 
     personal services contract with the United States,''.

     SEC. 1152. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY 
                   RETIREMENT AUTHORITY.

       (a) Civil Service Retirement System.--Section 8336 of title 
     5, United States Code, is amended--
       (1) in subsection (d)(2), by inserting ``except in the case 
     of an employee who is separated from the service under a 
     program carried out under subsection (o),'' after ``(2)''; 
     and
       (2) by adding at the end the following:
       ``(o)(1) The Secretary of Defense may, during fiscal years 
     2002 and 2003, carry out a program under which an employee of 
     the Department of Defense may be separated from the service 
     entitled to an immediate annuity under this subchapter if the 
     employee--
       ``(A) has--
       ``(i) completed 25 years of service; or
       ``(ii) become 50 years of age and completed 20 years of 
     service; and
       ``(B) is eligible for the annuity under paragraph (2) or 
     (3).
       ``(2)(A) For the purposes of paragraph (1), an employee 
     referred to in that paragraph is eligible for an immediate 
     annuity under this paragraph if the employee--
       ``(i) is separated from the service involuntarily other 
     than for cause; and
       ``(ii) has not declined a reasonable offer of another 
     position in the Department of Defense for which the employee 
     is qualified, which is not lower than 2 grades (or pay 
     levels) below the employee's grade (or pay level), and which 
     is within the employee's commuting area.
       ``(B) For the purposes of paragraph (2)(A)(i), a separation 
     for failure to accept a directed reassignment to a position 
     outside the commuting area of the employee concerned or to 
     accompany a position outside of such area pursuant to a 
     transfer of function may not be considered to be a removal 
     for cause.
       ``(3) For the purposes of paragraph (1), an employee 
     referred to in that paragraph is eligible for an immediate 
     annuity under this paragraph if the employee satisfies all of 
     the following conditions:
       ``(A) The employee is separated from the service 
     voluntarily during a period in which the organization within 
     the Department of Defense in which the employee is serving is 
     undergoing a major organizational adjustment.
       ``(B) The employee has been employed continuously by the 
     Department of Defense for more than 30 days before the date 
     on which the head of the employee's organization requests the 
     determinations required under subparagraph (A).
       ``(C) The employee is serving under an appointment that is 
     not limited by time.
       ``(D) The employee is not in receipt of a decision notice 
     of involuntary separation for misconduct or unacceptable 
     performance.
       ``(E) The employee is within the scope of an offer of 
     voluntary early retirement, as defined on the basis of one or 
     more of the following objective criteria:
       ``(i) One or more organizational units.
       ``(ii) One or more occupational groups, series, or levels.
       ``(iii) One or more geographical locations.
       ``(iv) Any other similar objective and nonpersonal criteria 
     that the Office of Personnel Management determines 
     appropriate.
       ``(4) Under regulations prescribed by the Office of 
     Personnel Management, the determinations of whether an 
     employee meets--
       ``(A) the requirements of subparagraph (A) of paragraph (3) 
     shall be made by the Office, upon the request of the 
     Secretary of Defense; and
       ``(B) the requirements of subparagraph (E) of such 
     paragraph shall be made by the Secretary of Defense.
       ``(5) A determination of which employees are within the 
     scope of an offer of early retirement shall be made only on 
     the basis of consistent and well-documented application of 
     the relevant criteria.
       ``(6) In this subsection, the term `major organizational 
     adjustment' means any of the following:
       ``(A) A major reorganization.
       ``(B) A major reduction in force.
       ``(C) A major transfer of function.
       ``(D) A workforce restructuring--
       ``(i) to meet mission needs;
       ``(ii) to achieve one or more reductions in strength;
       ``(iii) to correct skill imbalances; or
       ``(iv) to reduce the number of high-grade, managerial, 
     supervisory, or similar positions.''.
       (b) Federal Employees' Retirement System.--Section 8414 of 
     such title is amended--
       (1) in subsection (b)(1)(B), by inserting ``except in the 
     case of an employee who is separated from the service under a 
     program carried out under subsection (d),'' after ``(B)''; 
     and
       (2) by adding at the end the following:
       ``(d)(1) The Secretary of Defense may, during fiscal years 
     2002 and 2003, carry out a program under which an employee of 
     the Department of Defense may be separated from the service 
     entitled to an immediate annuity under this subchapter if the 
     employee--
       ``(A) has--
       ``(i) completed 25 years of service; or
       ``(ii) become 50 years of age and completed 20 years of 
     service; and
       ``(B) is eligible for the annuity under paragraph (2) or 
     (3).
       ``(2)(A) For the purposes of paragraph (1), an employee 
     referred to in that paragraph is eligible for an immediate 
     annuity under this paragraph if the employee--
       ``(i) is separated from the service involuntarily other 
     than for cause; and
       ``(ii) has not declined a reasonable offer of another 
     position in the Department of Defense for which the employee 
     is qualified, which is not lower than 2 grades (or pay 
     levels) below the employee's grade (or pay level), and which 
     is within the employee's commuting area.
       ``(B) For the purposes of paragraph (2)(A)(i), a separation 
     for failure to accept a directed reassignment to a position 
     outside the commuting area of the employee concerned or to 
     accompany a position outside of such area pursuant to a 
     transfer of function may not be considered to be a removal 
     for cause.
       ``(3) For the purposes of paragraph (1), an employee 
     referred to in that paragraph is eligible for an immediate 
     annuity under this paragraph if the employee satisfies all of 
     the following conditions:
       ``(A) The employee is separated from the service 
     voluntarily during a period in which the organization within 
     the Department of Defense in which the employee is serving is 
     undergoing a major organizational adjustment.
       ``(B) The employee has been employed continuously by the 
     Department of Defense for more than 30 days before the date 
     on which the head of the employee's organization requests the 
     determinations required under subparagraph (A).
       ``(C) The employee is serving under an appointment that is 
     not limited by time.
       ``(D) The employee is not in receipt of a decision notice 
     of involuntary separation for misconduct or unacceptable 
     performance.
       ``(E) The employee is within the scope of an offer of 
     voluntary early retirement, as defined on the basis of one or 
     more of the following objective criteria:
       ``(i) One or more organizational units.
       ``(ii) One or more occupational groups, series, or levels.
       ``(iii) One or more geographical locations.
       ``(iv) Any other similar objective and nonpersonal criteria 
     that the Office of Personnel Management determines 
     appropriate.
       ``(4) Under regulations prescribed by the Office of 
     Personnel Management, the determinations of whether an 
     employee meets--
       ``(A) the requirements of subparagraph (A) of paragraph (3) 
     shall be made by the Office upon the request of the Secretary 
     of Defense; and
       ``(B) the requirements of subparagraph (E) of such 
     paragraph shall be made by the Secretary of Defense.
       ``(5) A determination of which employees are within the 
     scope of an offer of early retirement shall be made only on 
     the basis of consistent and well-documented application of 
     the relevant criteria.

[[Page 21447]]

       ``(6) In this subsection, the term `major organizational 
     adjustment' means any of the following:
       ``(A) A major reorganization.
       ``(B) A major reduction in force.
       ``(C) A major transfer of function.
       ``(D) A workforce restructuring--
       ``(i) to meet mission needs;
       ``(ii) to achieve one or more reductions in strength;
       ``(iii) to correct skill imbalances; or
       ``(iv) to reduce the number of high-grade, managerial, 
     supervisory, or similar positions.''.
       (c) Conforming Amendments.--(1) Section 8339(h) of such 
     title is amended by striking out ``or ( j)'' in the first 
     sentence and inserting ``( j), or (o)''.
       (2) Section 8464(a)(1)(A)(i) of such title is amended by 
     striking out ``or (b)(1)(B)'' and ``, (b)(1)(B), or (d)''.

     SEC. 1153. LIMITATIONS.

       (a) Fiscal Year 2001 Limitations on VSIP.--Section 5597 of 
     title 5, United States Code, as amended by section 1151, is 
     further amended by adding at the end the following new 
     subsection:
       ``(i)(1) Notwithstanding any other provision of this 
     section, during fiscal year 2001, separation pay may be 
     offered under the program carried out under this section with 
     respect to workforce restructuring only to persons who, upon 
     separation, are entitled to an immediate annuity under 
     section 8336, 8412, or 8414 of this title and are otherwise 
     eligible for the separation pay under this section.
       ``(2) In the administration of the program under this 
     section during fiscal year 2001, the Secretary shall ensure 
     that not more than 1,000 employees are, as a result of 
     workforce restructuring, separated from service in that 
     fiscal year entitled to separation pay under this section.
       ``(3) Separation pay may not be offered as a result of 
     workforce restructuring under the program carried out under 
     this section after fiscal year 2003.''.
       (b) Limitations for Fiscal Years 2002 and 2003 on VSIP and 
     VERA.--(1) Subject to paragraph (2), the Secretary of Defense 
     shall ensure that, in each of fiscal years 2002 and 2003, not 
     more than 4,000 employees of the Department of Defense are, 
     as a result of workforce restructuring, separated from 
     service entitled to one or more of the following benefits:
       (A) Voluntary separation incentive pay under section 5597 
     of title 5, United States Code.
       (B) Immediate annuity under section 8336(o) or 8414(d) of 
     such title.
       (2) Notwithstanding sections 5597(e), 8336(o), and 8414(d) 
     of title 5, United States Code, the Secretary of Defense may 
     carry out the programs authorized in those sections during 
     fiscal years 2002 and 2003 with respect to workforce 
     restructuring only to the extent provided in a law enacted by 
     the One Hundred Seventh Congress.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

              Subtitle A--Matters Related to Arms Control

Sec. 1201. Support of United Nations-sponsored efforts to inspect and 
              monitor Iraqi weapons activities.
Sec. 1202. Support of consultations on Arab and Israeli arms control 
              and regional security issues.
Sec. 1203. Furnishing of nuclear test monitoring equipment to foreign 
              governments.
Sec. 1204. Additional matters for annual report on transfers of 
              militarily sensitive technology to countries and entities 
              of concern.

              Subtitle B--Matters Relating to the Balkans

Sec. 1211. Annual report assessing effect of continued operations in 
              the Balkans region on readiness to execute the national 
              military strategy.
Sec. 1212. Situation in the Balkans.
Sec. 1213. Semiannual report on Kosovo peacekeeping.

Subtitle C--North Atlantic Treaty Organization and United States Forces 
                               in Europe

Sec. 1221. NATO fair burdensharing.
Sec. 1222. Repeal of restriction preventing cooperative airlift support 
              through acquisition and cross-servicing agreements.
Sec. 1223. GAO study on the benefits and costs of United States 
              military engagement in Europe.

                       Subtitle D--Other Matters

Sec. 1231. Joint data exchange center with Russian Federation on early 
              warning systems and notification of ballistic missile 
              launches.
Sec. 1232. Report on sharing and exchange of ballistic missile launch 
              early warning data.
Sec. 1233. Annual report of Communist Chinese military companies 
              operating in the United States.
Sec. 1234. Adjustment of composite theoretical performance levels of 
              high performance computers.
Sec. 1235. Increased authority to provide health care services as 
              humanitarian and civic assistance.
Sec. 1236. Sense of Congress regarding the use of children as soldiers.
Sec. 1237. Sense of Congress regarding undersea rescue and recovery.
Sec. 1238. United States-China Security Review Commission.
              Subtitle A--Matters Related to Arms Control

     SEC. 1201. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO 
                   INSPECT AND MONITOR IRAQI WEAPONS ACTIVITIES.

       (a) Limitation on Amount of Assistance in Fiscal Year 
     2001--The total amount of the assistance for fiscal year 2001 
     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 ``2000'' and inserting ``2001''.

     SEC. 1202. SUPPORT OF CONSULTATIONS ON ARAB AND ISRAELI ARMS 
                   CONTROL AND REGIONAL SECURITY ISSUES.

       Of the amount authorized to be appropriated by section 
     301(5), up to $1,000,000 is available for the support of 
     programs to promote formal and informal region-wide 
     consultations among Arab, Israeli, and United States 
     officials and experts on arms control and security issues 
     concerning the Middle East region.

     SEC. 1203. FURNISHING OF NUCLEAR TEST MONITORING EQUIPMENT TO 
                   FOREIGN GOVERNMENTS.

       (a) In General.--Chapter 152 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2555. Nuclear test monitoring equipment: furnishing to 
       foreign governments

       ``(a) Authority To Convey or Provide Nuclear Test 
     Monitoring Equipment.--Subject to subsection (b), the 
     Secretary of Defense may--
       ``(1) convey or otherwise provide to a foreign government 
     (A) equipment for the monitoring of nuclear test explosions, 
     and (B) associated equipment; and
       ``(2) as part of any such conveyance or provision of 
     equipment, install such equipment on foreign territory or in 
     international waters.
       ``(b) Agreement Required.--Nuclear test explosion 
     monitoring equipment may be conveyed or otherwise provided 
     under subsection (a) only pursuant to the terms of an 
     agreement between the United States and the foreign 
     government receiving the equipment in which the recipient 
     foreign government agrees--
       ``(1) to provide the United States with timely access to 
     the data produced, collected, or generated by the equipment;
       ``(2) to permit the Secretary of Defense to take such 
     measures as the Secretary considers necessary to inspect, 
     test, maintain, repair, or replace that equipment, including 
     access for purposes of such measures; and
       ``(3) to return such equipment to the United States (or 
     allow the United States to recover such equipment) if either 
     party determines that the agreement no longer serves its 
     interests.
       ``(c) Report.--Promptly after entering into any agreement 
     under subsection (b), the Secretary of Defense shall submit 
     to Congress a report on the agreement. The report shall 
     identify the country with which the agreement was made, the 
     anticipated costs to the United States to be incurred under 
     the agreement, and the national interest of the United States 
     that is furthered by the agreement.
       ``(d) Limitation on Delegation.--The Secretary of Defense 
     may delegate the authority of the Secretary to carry out this 
     section only to the Secretary of the Air Force. Such a 
     delegation may be redelegated.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2555. Nuclear test monitoring equipment: furnishing to foreign 
              governments.''.

     SEC. 1204. ADDITIONAL MATTERS FOR ANNUAL REPORT ON TRANSFERS 
                   OF MILITARILY SENSITIVE TECHNOLOGY TO COUNTRIES 
                   AND ENTITIES OF CONCERN.

       Section 1402(b) of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 798) is 
     amended by adding at the end the following new paragraph:
       ``(4) The status of the implementation or other disposition 
     of recommendations included in reports of audits by 
     Inspectors General that have been set forth in a previous 
     annual report under this section pursuant to paragraph 
     (3).''.
              Subtitle B--Matters Relating to the Balkans

     SEC. 1211. ANNUAL REPORT ASSESSING EFFECT OF CONTINUED 
                   OPERATIONS IN THE BALKANS REGION ON READINESS 
                   TO EXECUTE THE NATIONAL MILITARY STRATEGY.

       Section 1035 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 753) is 
     amended--
       (1) in subsection (a), by striking ``Not later than 180 
     days after the date of the enactment of this Act,'' and 
     inserting ``Not later than April 1 each year (but subject to 
     subsection (e)),'';
       (2) in subsection (b), by striking ``The report'' in the 
     matter preceding paragraph (1) and inserting ``Each report'';
       (3) in subsection (d), by striking ``the report'' and 
     inserting ``a report''; and
       (4) by adding at the end the following new subsection:
       ``(e) Termination When United States Military Operations 
     End.--(1) No report is required under this section after 
     United States military operations in the Balkans region have 
     ended.
       ``(2) After the requirement for an annual report under this 
     section is terminated by operation of paragraph (1), but not 
     later than the latest date on which the next annual report 
     under this section would, except for paragraph (1), otherwise 
     be due, the Secretary of Defense shall transmit to Congress a 
     notification of the termination of the reporting 
     requirement.''.

[[Page 21448]]



     SEC. 1212. SITUATION IN THE BALKANS.

       (a) Establishment of NATO Benchmarks for Withdrawal of 
     Forces From Kosovo.--The President shall develop, not later 
     than May 31, 2001, militarily significant benchmarks for 
     conditions that would achieve a sustainable peace in Kosovo 
     and ultimately allow for the withdrawal of the United States 
     military presence in Kosovo. Congress urges the President to 
     seek concurrence among member nations of the North Atlantic 
     Treaty Organization in the development of those benchmarks.
       (b) Comprehensive Political-Military Strategy.--(1) The 
     President--
       (A) shall develop a comprehensive political-military 
     strategy for addressing the political, economic, 
     humanitarian, and military issues in the Balkans; and
       (B) shall establish near-term, mid-term, and long-term 
     objectives in the region.
       (2) In developing that strategy and those objectives, the 
     President shall take into consideration--
       (A) the benchmarks relating to Kosovo developed as 
     described in subsection (a); and
       (B) the benchmarks relating to Bosnia that were detailed in 
     the report accompanying the certification by the President to 
     Congress on March 3, 1998 (printed as House Document 105-
     223), with respect to the continued presence of United States 
     Armed Forces, after June 30, 1998, in Bosnia and Herzegovina, 
     submitted to Congress pursuant to section 7 of title I of the 
     1998 Supplemental Appropriations and Rescissions Act (Public 
     Law 105-174; 112 Stat. 63).
       (3) That strategy and those objectives shall be developed 
     in consultation with appropriate regional and international 
     entities.
       (c) Semiannual Report on Benchmarks.--Not later than June 
     30, 2001, and every six months thereafter, the President 
     shall submit to Congress a report on the progress made in 
     achieving the benchmarks developed pursuant to subsection 
     (a). The President may submit a single report covering these 
     benchmarks and the benchmarks relating to Bosnia referred to 
     in subsection (b)(2)(B).
       (d) Semiannual Report on Comprehensive Strategy.--Not later 
     than June 30, 2001, and every six months thereafter so long 
     as United States forces are in the Balkans, the President 
     shall submit to Congress a report on the progress being made 
     in developing and implementing a comprehensive political-
     military strategy as described in subsection (b)(1)(A).

     SEC. 1213. SEMIANNUAL REPORT ON KOSOVO PEACEKEEPING.

       (a) Requirement for Periodic Report.--The President shall 
     submit to the specified congressional committees a semiannual 
     report on the contributions of European nations and 
     organizations to the peacekeeping operations in Kosovo. The 
     first such report shall be submitted not later than December 
     1, 2000.
       (b) Content of Report.--Each report shall contain detailed 
     information on the following:
       (1) The commitments and pledges made by the European 
     Commission, the member nations of the European Union, and the 
     European member nations of the North Atlantic Treaty 
     Organization for--
       (A) reconstruction assistance in Kosovo;
       (B) humanitarian assistance in Kosovo;
       (C) the Kosovo Consolidated Budget;
       (D) police (including special police) for the United 
     Nations international police force for Kosovo; and
       (E) military personnel for peacekeeping operations in 
     Kosovo.
       (2) The amount of the assistance that has been provided in 
     each category, and the number of police and military 
     personnel that have been deployed to Kosovo, by each 
     organization or nation referred to in paragraph (1).
       (3) The full range of commitments and responsibilities that 
     have been undertaken for Kosovo by the United Nations, the 
     European Union, and the Organization for Security and 
     Cooperation in Europe (OSCE), the progress made by those 
     organizations in fulfilling those commitments and 
     responsibilities, an assessment of the tasks that remain to 
     be accomplished, and an anticipated schedule for completing 
     those tasks.
       (d) Specified Congressional Committees.--In the section, 
     the term ``specified congressional committees'' means--
       (1) the Committee on Armed Services, the Committee on 
     Foreign Relations, and the Committee on Appropriations of the 
     Senate; and
       (2) the Committee on Armed Services, the Committee on 
     International Relations, and the Committee on Appropriations 
     of the House of Representatives.
Subtitle C--North Atlantic Treaty Organization and United States Forces 
                               in Europe

     SEC. 1221. NATO FAIR BURDENSHARING.

       (a) Report on Costs of Operation Allied Force.--The 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on the costs to the 
     United States of the 78-day air campaign known as Operation 
     Allied Force conducted against the Federal Republic of 
     Yugoslavia during the period from March 24 through June 9, 
     1999. The report shall include the following:
       (1) The costs of ordnance expended, fuel consumed, and 
     personnel.
       (2) The estimated cost of the reduced service life of 
     United States aircraft and other systems participating in the 
     operation.
       (b) Report on Burdensharing of Future NATO Operations.--
     Whenever the North Atlantic Treaty Organization undertakes a 
     military operation, the Secretary of Defense shall submit to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     report describing--
       (1) the contributions to that operation made by each of the 
     member nations of the North Atlantic Treaty Organization 
     during that operation; and
       (2) the contributions that each of the member nations of 
     the North Atlantic Treaty Organization are making or have 
     pledged to make during any follow-on operation.
       (c) Time for Submission of Report.--A report under 
     subsection (b) shall be submitted not later than 90 days 
     after the completion of the military operation.
       (d) Applicability.--Subsection (b) shall apply only with 
     respect to military operations begun after the date of the 
     enactment of this Act.

     SEC. 1222. REPEAL OF RESTRICTION PREVENTING COOPERATIVE 
                   AIRLIFT SUPPORT THROUGH ACQUISITION AND CROSS-
                   SERVICING AGREEMENTS.

       Section 2350c of title 10, United States Code, is amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsection (e) as subsection (d).

     SEC. 1223. GAO STUDY ON THE BENEFITS AND COSTS OF UNITED 
                   STATES MILITARY ENGAGEMENT IN EUROPE.

       (a) Comptroller General Study.--The Comptroller General 
     shall conduct a study assessing the benefits and costs to the 
     United States and United States national security interests 
     of the engagement of United States forces in Europe and of 
     United States military strategies used to shape the 
     international security environment in Europe.
       (b) Matters To Be Included.--The study shall include an 
     assessment of the following matters:
       (1) The benefits and costs to the United States of having 
     forces stationed in Europe and assigned to areas of regional 
     conflict such as Bosnia and Kosovo.
       (2) The benefits and costs associated with stationing 
     United States forces in Europe and with assigning those 
     forces to areas of regional conflict, including an analysis 
     of the benefits and costs of deploying United States forces 
     with the forces of European allies.
       (3) The amount and type of the following kinds of 
     contributions to European security made by European allies in 
     1999 and 2000:
       (A) Financial contributions.
       (B) Contributions of military personnel and units.
       (C) Contributions of nonmilitary personnel, such as medical 
     personnel, police officers, judicial officers, and other 
     civic officials.
       (D) Contributions, including contributions in kind, for 
     humanitarian and reconstruction assistance and infrastructure 
     building or activities that contribute to regional stability, 
     whether in lieu of or in addition to military-related 
     contributions.
       (4) The extent to which a forward United States military 
     presence compensates for existing shortfalls of air and sea 
     lift capability in the event of regional conflict in Europe 
     or the Middle East.
       (c) Report.--The Comptroller General shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report on the results of the study not 
     later than December 1, 2001.
                       Subtitle D--Other Matters

     SEC. 1231. JOINT DATA EXCHANGE CENTER WITH RUSSIAN FEDERATION 
                   ON EARLY WARNING SYSTEMS AND NOTIFICATION OF 
                   BALLISTIC MISSILE LAUNCHES.

       (a) Authority.--The Secretary of Defense is authorized to 
     establish, in conjunction with the Government of the Russian 
     Federation, a United States-Russian Federation joint center 
     for the exchange of data from systems to provide early 
     warning of launches of ballistic missiles and for 
     notification of launches of such missiles.
       (b) Specific Actions.--The actions that the Secretary 
     undertakes for the establishment of the center may include--
       (1) subject to subsection (d), participating in the 
     renovation of a mutually agreed upon facility to be made 
     available by the Russian Federation; and
       (2) the furnishing of such equipment and supplies as may be 
     necessary to begin the operation of the center.
       (c) Report Required.--(1) Not later than 30 days after the 
     date of the enactment of this Act, the Secretary shall submit 
     to the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     report on plans for the joint data exchange center.
       (2) The report shall include the following:
       (A) A detailed explanation as to why the particular 
     facility intended to house the center was chosen.
       (B) An estimate of the total cost of renovating that 
     facility for use by the center.
       (C) A description of the manner by which the United States 
     proposes to meet its share of the costs of such renovation.
       (d) Limitation.--(1) The Secretary of Defense may 
     participate under subsection (b) in the renovation of the 
     facility identified in the report under subsection (c) only 
     if the United States and the Russian Federation enter into a 
     cost-sharing arrangement that provides for an equal sharing 
     between the two nations of the cost of establishing the 
     center, including the costs of renovating and operating the 
     facility.
       (2) Not more than $4,000,000 of funds appropriated for 
     fiscal year 2001 may be obligated or

[[Page 21449]]

     expended after the date of the enactment of this Act by the 
     Secretary of Defense for the renovation of such facility 
     until 30 days after the date on which the Secretary submits 
     to the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     copy of a written agreement between the United States and the 
     Russian Federation that provides details of the cost-sharing 
     arrangement specified in paragraph (1), in accordance with 
     the Memorandum of Agreement between the two nations signed in 
     Moscow in June 2000.

     SEC. 1232. REPORT ON SHARING AND EXCHANGE OF BALLISTIC 
                   MISSILE LAUNCH EARLY WARNING DATA.

       Not later than March 15, 2001, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on current and planned activities of 
     the Department of Defense with respect to the sharing and 
     exchange with other countries of early warning data 
     concerning ballistic missile launches. The report shall 
     include the Secretary's assessment of the benefits and risks 
     of sharing such data with other countries on a bilateral or 
     multilateral basis.

     SEC. 1233. ANNUAL REPORT OF COMMUNIST CHINESE MILITARY 
                   COMPANIES OPERATING IN THE UNITED STATES.

       Section 1237(b) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note) 
     is amended--
       (1) by striking ``Publication'' in the subsection heading 
     and inserting ``Reporting''; and
       (2) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) Initial determination and reporting.--Not later than 
     March 1, 2001, the Secretary of Defense shall make a 
     determination of those persons operating directly or 
     indirectly in the United States or any of its territories and 
     possessions that are Communist Chinese military companies and 
     shall submit a list of those persons in classified and 
     unclassified form to the following:
       ``(A) The Committee on Armed Services of the House of 
     Representatives.
       ``(B) The Committee on Armed Services of the Senate.
       ``(C) The Secretary of State.
       ``(D) The Secretary of the Treasury.
       ``(E) The Attorney General.
       ``(F) The Secretary of Commerce.
       ``(G) The Secretary of Energy.
       ``(H) The Director of Central Intelligence.
       ``(2) Annual revisions to the list.--The Secretary of 
     Defense shall make additions or deletions to the list 
     submitted under paragraph (1) on an annual basis based on the 
     latest information available and shall submit the updated 
     list not later than February 1, each year to the committees 
     and officers specified in paragraph (1).''.

     SEC. 1234. ADJUSTMENT OF COMPOSITE THEORETICAL PERFORMANCE 
                   LEVELS OF HIGH PERFORMANCE COMPUTERS.

       (a) Layover Period for New Performance Levels.--Section 
     1211 of the National Defense Authorization Act for Fiscal 
     Year 1998 (50 U.S.C. App. 2404 note) is amended--
       (1) in the second sentence of subsection (d), by striking 
     ``180'' and inserting ``60''; and
       (2) by adding at the end the following new subsection:
       ``(h) Calculation of 60-Day Period.--The 60-day period 
     referred to in subsection (d) shall be calculated by 
     excluding the days on which either House of Congress is not 
     in session because of an adjournment of the Congress sine 
     die.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to any new composite theoretical performance 
     level established for purposes of section 1211(a) of the 
     National Defense Authorization Act for Fiscal Year 1998 that 
     is submitted by the President pursuant to section 1211(d) of 
     that Act on or after the date of the enactment of this Act.

     SEC. 1235. INCREASED AUTHORITY TO PROVIDE HEALTH CARE 
                   SERVICES AS HUMANITARIAN AND CIVIC ASSISTANCE.

       Section 401(e)(1) of title 10, United States Code, is 
     amended by striking ``rural areas of a country'' and 
     inserting ``areas of a country that are rural or are 
     underserved by medical, dental, and veterinary professionals, 
     respectively''.

     SEC. 1236. SENSE OF CONGRESS REGARDING THE USE OF CHILDREN AS 
                   SOLDIERS.

       (a) Findings.--Congress makes the following findings:
       (1) In the year 2000, approximately 300,000 individuals 
     under the age of 18 are participating in armed conflict in 
     more than 30 countries worldwide.
       (2) Many children participating in armed conflict in 
     various countries around the world are forcibly conscripted 
     through kidnapping or coercion, while others join military 
     units due to economic necessity, to avenge the loss of a 
     family member, or for their own personal safety.
       (3) Many military commanders frequently force child 
     soldiers to commit gruesome acts of ritual killings or 
     torture against their enemies, including against other 
     children.
       (4) Many military commanders separate children from their 
     families in order to foster dependence on military units and 
     leaders, leaving children vulnerable to manipulation, deep 
     traumatization, and in need of psychological counseling and 
     rehabilitation.
       (5) Child soldiers are exposed to hazardous conditions and 
     risk physical injuries, sexually transmitted diseases, 
     malnutrition, deformed backs and shoulders from carrying 
     overweight loads, and respiratory and skin infections.
       (6) Many young female soldiers face the additional 
     psychological and physical horrors of rape and sexual abuse, 
     being enslaved for sexual purposes by militia commanders, and 
     forced to endure severe social stigma should they return 
     home.
       (7) Children in northern Uganda continue to be kidnapped by 
     the Lords Resistance Army (LRA), which is supported and 
     funded by the Government of Sudan and which has committed and 
     continues to commit gross human rights violations in Uganda.
       (8) Children in Sri Lanka have been forcibly recruited by 
     the opposition Tamil Tigers movement and forced to kill or be 
     killed in the armed conflict in that country.
       (9) An estimated 7,000 child soldiers have been involved in 
     the conflict in Sierra Leone, some as young as age 10, with 
     many being forced to commit extrajudicial executions, 
     torture, rape, and amputations for the rebel Revolutionary 
     United Front.
       (10) On January 21, 2000, in Geneva, a United Nations 
     Working Group, including representatives from more than 80 
     governments including the United States, reached consensus on 
     an international agreement, referred to in this case as an 
     ``optional protocol'', on the use of child soldiers.
       (11) This optional protocol, upon entry into force, will--
       (A) raise the international minimum age for conscription 
     and will require governments to take all feasible measures to 
     ensure that members of their armed forces under age 18 do not 
     participate directly in combat;
       (B) prohibit the recruitment and use in armed conflict of 
     persons under the age of 18 by non-governmental armed forces;
       (C) encourage governments to raise the minimum legal age 
     for voluntary recruits above the current standard of 15, and
       (D) commit governments to support the demobilization and 
     rehabilitation of child soldiers and, when possible, to 
     allocate resources to this purpose.
       (12) On October 29, 1998, United Nations Secretary General 
     Kofi Annan set minimum age requirements for United Nations 
     peacekeeping personnel that are made available by member 
     nations of the United Nations.
       (13) The United Nations Under-Secretary General for Peace-
     keeping, Bernard Miyet, announced in the Fourth Committee of 
     the General Assembly that contributing governments of member 
     nations were asked not to send civilian police and military 
     observers under the age of 25 and that troops in national 
     contingents should preferably be at least 21 years of age but 
     in no case should they be younger than 18 years of age.
       (14) On August 25, 1999, the United Nations Security 
     Council unanimously passed Resolution 1261 (1999) condemning 
     the use of children in armed conflicts.
       (15) In addressing the Security Council on August 26, 1999, 
     the Special Representative of the Secretary General for 
     Children and Armed Conflict, Olara Otunnu, urged the adoption 
     of a global three-pronged approach to combatting the use of 
     children in armed conflict that would--
       (A) first, raise the age limit for recruitment and 
     participation in armed conflict from the present age of 15 to 
     the age of 18;
       (B) second, increase international pressure on armed groups 
     which currently abuse children; and
       (C) third, address the political, social, and economic 
     factors that create an environment in which children are 
     induced by appeal of ideology or by socio-economic collapse 
     to become child soldiers.
       (16) The United States delegation to the United Nations 
     working group relating to child soldiers, which included 
     representatives from the Department of Defense, supported the 
     Geneva agreement on the optional protocol.
       (17) On May 25, 2000, the United Nations General Assembly 
     unanimously adopted the optional protocol on the use of child 
     soldiers.
       (18) The optional protocol was opened for signature on June 
     5, 2000.
       (19) The President signed the optional protocol on behalf 
     of the United States on July 5, 2000.
       (b) Congressional Statements on Child Soldiers.--Congress 
     joins the international community in--
       (1) condemning the use of children as soldiers by 
     governmental and nongovernmental armed forces worldwide; and
       (2) welcoming the optional protocol on the use of child 
     soldiers adopted by the United Nations General Assembly on 
     May 25, 2000, as a critical first step in ending the use of 
     children as soldiers.
       (c) Sense of Congress on Further Actions.--It is the sense 
     of Congress that--
       (1) it is essential that the President consult closely with 
     the Senate with the objective of building support for 
     ratification by the United States of the optional protocol 
     and that the Senate move forward as expeditiously as 
     possible;
       (2) the United States should provide assistance, through a 
     new fund to be established by law, for the rehabilitation and 
     reintegration into their respective civilian societies of 
     child soldiers of other nations; and
       (3) the President, acting through the Secretaries of State 
     and Defense and other appropriate officials, should undertake 
     all possible efforts to persuade and encourage other 
     governments to ratify and endorse the optional protocol on 
     the use of child soldiers.

[[Page 21450]]



     SEC. 1237. SENSE OF CONGRESS REGARDING UNDERSEA RESCUE AND 
                   RECOVERY.

       (a) Findings.--Congress makes the following findings:
       (1) The tragic loss in August 2000 of the Russian submarine 
     Kursk resulted in the death of all 118 members of the 
     submarine's crew.
       (2) The Kursk is the third vessel of the submarine fleet of 
     the Russian Federation and its predecessor, the Union of 
     Soviet Socialist Republics, to be lost in an accident at sea 
     with considerable loss of life of the officers and crews of 
     those submarines.
       (3) The United States submarines USS Thresher and USS 
     Scorpion, with their officers and crews, were also lost at 
     sea in tragic accidents, in 1963 and 1968, respectively.
       (4) The United States, the Russian Federation, and other 
     maritime nations possess extensive capabilities consisting of 
     naval and research vessels and other assets that could be 
     used to respond to accidents or incidents involving 
     submarines or other undersea vessels.
       (5) The United States Navy has rescue agreements with the 
     navies of 14 countries from Europe, the Western Pacific, and 
     the Americas, but not including the Russian Federation, and 
     exercises regularly to train crews and practice submarine 
     rescue procedures with the navies of participating nations.
       (b) Expression of Sympathy.--Congress expresses its 
     sympathy and the sympathy of the American people to the 
     people of the Russian Federation and joins the Russian people 
     in mourning the death of the crewmen of the submarine Kursk.
       (c) Sense of Congress Concerning International 
     Cooperation.--It is the sense of Congress that when undersea 
     accidents or incidents involving submarines or other undersea 
     vessels occur, it is in the best interests of all nations to 
     work together to respond promptly to the accident or 
     incident, rescue and recover the crew of the vessel, minimize 
     the loss of life, and prevent damage to the oceans.
       (d) Establishment of Plan for Responding to Undersea 
     Accidents or Incidents.--Congress urges the President of the 
     United States and the President of the Russian Federation, in 
     coordination with the leaders of other maritime nations that 
     possess undersea naval and research vessels and undersea 
     rescue capabilities, to cooperate in establishing a plan 
     for--
       (1) responding to accidents or incidents involving 
     submarines or other undersea vessels; and
       (2) rescue and recovery of the crew of the vessels involved 
     in such accidents or incidents.

     SEC. 1238. UNITED STATES-CHINA SECURITY REVIEW COMMISSION.

       (a) Purposes.--The purposes of this section are as follows:
       (1) To establish the United States-China Security Review 
     Commission to review the national security implications of 
     trade and economic ties between the United States and the 
     People's Republic of China.
       (2) To facilitate the assumption by the United States-China 
     Security Review Commission of its duties regarding the review 
     referred to in paragraph (1) by providing for the transfer to 
     that Commission of staff, materials, and infrastructure 
     (including leased premises) of the Trade Deficit Review 
     Commission that are appropriate for the review upon the 
     submittal of the final report of the Trade Deficit Review 
     Commission.
       (b) Establishment of United States-China Security Review 
     Commission.--
       (1) In general.--There is hereby established a commission 
     to be known as the United States-China Security Review 
     Commission (in this section referred to as the 
     ``Commission'').
       (2) Purpose.--The purpose of the Commission is to monitor, 
     investigate, and report to Congress on the national security 
     implications of the bilateral trade and economic relationship 
     between the United States and the People's Republic of China.
       (3) Membership.--The United States-China Security Review 
     Commission shall be composed of 12 members, who shall be 
     appointed in the same manner provided for the appointment of 
     members of the Trade Deficit Review Commission under section 
     127(c)(3) of the Trade Deficit Review Commission Act (19 
     U.S.C. 2213 note), except that--
       (A) appointment of members by the Speaker of the House of 
     Representatives shall be made after consultation with the 
     chairman of the Committee on Armed Services of the House of 
     Representatives, in addition to consultation with the 
     chairman of the Committee on Ways and Means of the House of 
     Representatives provided for under clause (iii) of 
     subparagraph (A) of that section;
       (B) appointment of members by the President pro tempore of 
     the Senate upon the recommendation of the majority leader of 
     the Senate shall be made after consultation with the chairman 
     of the Committee on Armed Services of the Senate, in addition 
     to consultation with the chairman of the Committee on Finance 
     of the Senate provided for under clause (i) of that 
     subparagraph;
       (C) appointment of members by the President pro tempore of 
     the Senate upon the recommendation of the minority leader of 
     the Senate shall be made after consultation with the ranking 
     minority member of the Committee on Armed Services of the 
     Senate, in addition to consultation with the ranking minority 
     member of the Committee on Finance of the Senate provided for 
     under clause (ii) of that subparagraph;
       (D) appointment of members by the minority leader of the 
     House of Representatives shall be made after consultation 
     with the ranking minority member of the Committee on Armed 
     Services of the House of Representatives, in addition to 
     consultation with the ranking minority member of the 
     Committee on Ways and Means of the House of Representatives 
     provided for under clause (iv) of that subparagraph;
       (E) persons appointed to the Commission shall have 
     expertise in national security matters and United States-
     China relations, in addition to the expertise provided for 
     under subparagraph (B)(i)(I) of that section;
       (F) members shall be appointed to the Commission not later 
     than 30 days after the date on which each new Congress 
     convenes;
       (G) members of the Commission may be reappointed for 
     additional terms of service as members of the Commission; and
       (H) members of the Trade Deficit Review Commission as of 
     the date of the enactment of this Act shall serve as members 
     of the United States-China Security Review Commission until 
     such time as members are first appointed to the United 
     States-China Security Review Commission under this paragraph.
       (4) Retention of support.--The United States-China Security 
     Review Commission shall retain and make use of such staff, 
     materials, and infrastructure (including leased premises) of 
     the Trade Deficit Review Commission as the United States-
     China Security Review Commission determines, in the judgment 
     of the members of the United States-China Security Review 
     Commission, are required to facilitate the ready commencement 
     of activities of the United States-China Security Review 
     Commission under subsection (c) or to carry out such 
     activities after the commencement of such activities.
       (5) Chairman and vice chairman.--The members of the 
     Commission shall select a Chairman and Vice Chairman of the 
     Commission from among the members of the Commission.
       (6) Meetings.--
       (A) Meetings.--The Commission shall meet at the call of the 
     Chairman of the Commission.
       (B) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum for the transaction of business of 
     the Commission.
       (7) Voting.--Each member of the Commission shall be 
     entitled to one vote, which shall be equal to the vote of 
     every other member of the Commission.
       (c) Duties.--
       (1) Annual report.--Not later than March 1 each year 
     (beginning in 2002), the Commission shall submit to Congress 
     a report, in both unclassified and classified form, regarding 
     the national security implications and impact of the 
     bilateral trade and economic relationship between the United 
     States and the People's Republic of China. The report shall 
     include a full analysis, along with conclusions and 
     recommendations for legislative and administrative actions, 
     if any, of the national security implications for the United 
     States of the trade and current balances with the People's 
     Republic of China in goods and services, financial 
     transactions, and technology transfers. The Commission shall 
     also take into account patterns of trade and transfers 
     through third countries to the extent practicable.
       (2) Contents of report.--Each report under paragraph (1) 
     shall include, at a minimum, a full discussion of the 
     following:
       (A) The portion of trade in goods and services with the 
     United States that the People's Republic of China dedicates 
     to military systems or systems of a dual nature that could be 
     used for military purposes.
       (B) The acquisition by the People's Republic of China of 
     advanced military or dual-use technologies from the United 
     States by trade (including procurement) and other technology 
     transfers, especially those transfers, if any, that 
     contribute to the proliferation of weapons of mass 
     destruction or their delivery systems, or that undermine 
     international agreements or United States laws with respect 
     to nonproliferation.
       (C) Any transfers, other than those identified under 
     subparagraph (B), to the military systems of the People's 
     Republic of China made by United States firms and United 
     States-based multinational corporations.
       (D) An analysis of the statements and writing of the 
     People's Republic of China officials and officially-
     sanctioned writings that bear on the intentions, if any, of 
     the Government of the People's Republic of China regarding 
     the pursuit of military competition with, and leverage over, 
     or cooperation with, the United States and the Asian allies 
     of the United States.
       (E) The military actions taken by the Government of the 
     People's Republic of China during the preceding year that 
     bear on the national security of the United States and the 
     regional stability of the Asian allies of the United States.
       (F) The effects, if any, on the national security interests 
     of the United States of the use by the People's Republic of 
     China of financial transactions and capital flow and currency 
     manipulations.
       (G) Any action taken by the Government of the People's 
     Republic of China in the context of the World Trade 
     Organization that is adverse or favorable to the United 
     States national security interests.
       (H) Patterns of trade and investment between the People's 
     Republic of China and its major trading partners, other than 
     the United States, that appear to be substantively different 
     from trade and investment patterns with the United States and 
     whether the differences have any national security 
     implications for the United States.
       (I) The extent to which the trade surplus of the People's 
     Republic of China with the United

[[Page 21451]]

     States enhances the military budget of the People's Republic 
     of China.
       (J) An overall assessment of the state of the security 
     challenges presented by the People's Republic of China to the 
     United States and whether the security challenges are 
     increasing or decreasing from previous years.
       (3) Recommendations of report.--Each report under paragraph 
     (1) shall also include recommendations for action by Congress 
     or the President, or both, including specific recommendations 
     for the United States to invoke Article XXI (relating to 
     security exceptions) of the General Agreement on Tariffs and 
     Trade 1994 with respect to the People's Republic of China, as 
     a result of any adverse impact on the national security 
     interests of the United States.
       (d) Hearings.--
       (1) In general.--The Commission or, at its direction, any 
     panel or member of the Commission, may for the purpose of 
     carrying out the provisions of this section, hold hearings, 
     sit and act at times and places, take testimony, receive 
     evidence, and administer oaths to the extent that the 
     Commission or any panel or member considers advisable.
       (2) Information.--The Commission may secure directly from 
     the Department of Defense, the Central Intelligence Agency, 
     and any other Federal department or agency information that 
     the Commission considers necessary to enable the Commission 
     to carry out its duties under this section, except the 
     provision of intelligence information to the Commission shall 
     be made with due regard for the protection from unauthorized 
     disclosure of classified information relating to sensitive 
     intelligence sources and methods or other exceptionally 
     sensitive matters, under procedures approved by the Director 
     of Central Intelligence.
       (3) Security.--The Office of Senate Security shall--
       (A) provide classified storage and meeting and hearing 
     spaces, when necessary, for the Commission; and
       (B) assist members and staff of the Commission in obtaining 
     security clearances.
       (4) Security clearances.--All members of the Commission and 
     appropriate staff shall be sworn and hold appropriate 
     security clearances.
       (e) Commission Personnel Matters.--
       (1) Compensation of members.--Members of the United States-
     China Security Review Commission shall be compensated in the 
     same manner provided for the compensation of members of the 
     Trade Deficit Review Commission under section 127(g)(1) and 
     section 127(g)(6) of the Trade Deficit Review Commission Act 
     (19 U.S.C. 2213 note).
       (2) Travel expenses.--Travel expenses of the United States-
     China Security Review Commission shall be allowed in the same 
     manner provided for the allowance of the travel expenses of 
     the Trade Deficit Review Commission under section 127(g)(2) 
     of the Trade Deficit Review Commission Act.
       (3) Staff.--An executive director and other additional 
     personnel for the United States-China Security Review 
     Commission shall be appointed, compensated, and terminated in 
     the same manner provided for the appointment, compensation, 
     and termination of the executive director and other personnel 
     of the Trade Deficit Review Commission under section 
     127(g)(3) and section 127(g)(6) of the Trade Deficit Review 
     Commission Act.
       (4) Detail of government employees.--Federal Government 
     employees may be detailed to the United States-China Security 
     Review Commission in the same manner provided for the detail 
     of Federal Government employees to the Trade Deficit Review 
     Commission under section 127(g)(4) of the Trade Deficit 
     Review Commission Act.
       (5) Foreign travel for official purposes.--Foreign travel 
     for official purposes by members and staff of the Commission 
     may be authorized by either the Chairman or the Vice Chairman 
     of the Commission.
       (6) Procurement of temporary and intermittent services.--
     The Chairman of the United States-China Security Review 
     Commission may procure temporary and intermittent services 
     for the United States-China Security Review Commission in the 
     same manner provided for the procurement of temporary and 
     intermittent services for the Trade Deficit Review Commission 
     under section 127(g)(5) of the Trade Deficit Review 
     Commission Act.
       (f) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     the Commission for fiscal year 2001, and for each fiscal year 
     thereafter, such sums as may be necessary to enable the 
     Commission to carry out its functions under this section.
       (2) Availability.--Amounts appropriated to the Commission 
     shall remain available until expended.
       (g) Federal Advisory Committee Act.--The provisions of the 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the Commission.
       (h) Effective Date.--This section shall take effect on the 
     first day of the 107th Congress.
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION
Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for elimination of conventional 
              weapons.
Sec. 1304. Limitations on use of funds for fissile material storage 
              facility.
Sec. 1305. Limitation on use of funds to support warhead dismantlement 
              processing.
Sec. 1306. Agreement on nuclear weapons storage sites.
Sec. 1307. Limitation on use of funds for construction of fossil fuel 
              energy plants; report.
Sec. 1308. Reports on activities and assistance under Cooperative 
              Threat Reduction programs.
Sec. 1309. Russian chemical weapons elimination.
Sec. 1310. Limitation on use of funds for elimination of weapons grade 
              plutonium program.
Sec. 1311. Report on audits of Cooperative Threat Reduction programs.

     SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS AND FUNDS.

       (a) Specification of CTR Programs.--For purposes of section 
     301 and other provisions of this Act, Cooperative Threat 
     Reduction programs are the programs specified in section 
     1501(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 
     note).
       (b) Fiscal Year 2001 Cooperative Threat Reduction Funds 
     Defined.--As used in this title, the term ``fiscal year 2001 
     Cooperative Threat Reduction funds'' means the funds 
     appropriated pursuant to the authorization of appropriations 
     in section 301 for Cooperative Threat Reduction programs.
       (c) Availability of Funds.--Funds appropriated pursuant to 
     the authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs shall be available for 
     obligation for three fiscal years.

     SEC. 1302. FUNDING ALLOCATIONS.

       (a) Funding for Specific Purposes.--Of the $443,400,000 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2001 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, 
     $177,800,000.
       (2) For strategic nuclear arms elimination in Ukraine, 
     $29,100,000.
       (3) For activities to support warhead dismantlement 
     processing in Russia, $9,300,000.
       (4) For weapons transportation security in Russia, 
     $14,000,000.
       (5) For planning, design, and construction of a storage 
     facility for Russian fissile material, $57,400,000.
       (6) For weapons storage security in Russia, $89,700,000.
       (7) For development of a cooperative program with the 
     Government of Russia to eliminate the production of weapons 
     grade plutonium at Russian reactors, $32,100,000.
       (8) For biological weapons proliferation prevention 
     activities in the former Soviet Union, $12,000,000.
       (9) For activities designated as Other Assessments/
     Administrative Support, $13,000,000.
       (10) For defense and military contacts, $9,000,000.
       (b) Report on Obligation or Expenditure of Funds for Other 
     Purposes.--No fiscal year 2001 Cooperative Threat Reduction 
     funds may be obligated or expended for a purpose other than a 
     purpose listed in paragraphs (1) through (10) 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 2001 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 2001 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 paragraphs (4), (5), (7), (9), or (10) of subsection 
     (a) in excess of 115 percent of the amount specifically 
     authorized for such purposes.

     SEC. 1303. PROHIBITION ON USE OF FUNDS FOR ELIMINATION OF 
                   CONVENTIONAL WEAPONS.

       No fiscal year 2001 Cooperative Threat Reduction funds, and 
     no funds appropriated for Cooperative Threat Reduction 
     programs for any other fiscal year, may be obligated or 
     expended for elimination of conventional weapons or the 
     delivery vehicles primarily intended to deliver such weapons.

     SEC. 1304. LIMITATIONS ON USE OF FUNDS FOR FISSILE MATERIAL 
                   STORAGE FACILITY.

       (a) Limitations.--No fiscal year 2001 Cooperative Threat 
     Reduction funds may be used--

[[Page 21452]]

       (1) for construction of a second wing for the storage 
     facility for Russian fissile material referred to in section 
     1302(a)(5); or
       (2) for design or planning with respect to such facility 
     until 15 days after the date that the Secretary of Defense 
     submits to Congress notification that Russia and the United 
     States have signed a written transparency agreement that 
     provides for verification that material stored at the 
     facility is of weapons origin.
       (b) Establishment of Funding Cap for First Wing of Storage 
     Facility.--Out of funds authorized to be appropriated for 
     Cooperative Threat Reduction programs for fiscal year 2001 or 
     any other fiscal year, not more than $412,600,000 may be used 
     for planning, design, or construction of the first wing for 
     the storage facility for Russian fissile material referred to 
     in section 1302(a)(5).

     SEC. 1305. LIMITATION ON USE OF FUNDS TO SUPPORT WARHEAD 
                   DISMANTLEMENT PROCESSING.

       No fiscal year 2001 Cooperative Threat Reduction funds may 
     be used for activities to support warhead dismantlement 
     processing in Russia until 15 days after the date that the 
     Secretary of Defense submits to Congress notification that 
     the United States has reached an agreement with Russia, which 
     shall provide for appropriate transparency measures, 
     regarding assistance by the United States with respect to 
     such processing.

     SEC. 1306. AGREEMENT ON NUCLEAR WEAPONS STORAGE SITES.

       The Secretary of Defense shall seek to enter into an 
     agreement with Russia regarding procedures to allow the 
     United States appropriate access to nuclear weapons storage 
     sites for which assistance under Cooperative Threat Reduction 
     programs is provided.

     SEC. 1307. LIMITATION ON USE OF FUNDS FOR CONSTRUCTION OF 
                   FOSSIL FUEL ENERGY PLANTS; REPORT.

       (a) In General.--No fiscal year 2001 Cooperative Threat 
     Reduction funds may be used for the construction of a fossil 
     fuel energy plant intended to provide power to local 
     communities that already receive power from nuclear energy 
     plants that produce plutonium.
       (b) Report.--Not later than 60 days after the date of the 
     enactment of this Act, the President shall submit to Congress 
     a report detailing options for assisting Russia in the 
     development of alternative energy sources to the three 
     plutonium production reactors remaining in operation in 
     Russia. The report shall include--
       (1) an assessment of the costs of building fossil fuel 
     plants in Russia to replace the existing plutonium production 
     reactors; and
       (2) an identification of funding sources, other than 
     Cooperative Threat Reduction funds, that could possibly be 
     used for the construction of such plants in the event that 
     the option to use fossil fuel energy is chosen as part of a 
     plan to shut down Russia's nuclear plutonium production 
     reactors at Seversk and Zelenogorsk.

     SEC. 1308. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER 
                   COOPERATIVE THREAT REDUCTION PROGRAMS.

       (a) Annual Report.--In any year in which the budget of the 
     President under section 1105 of title 31, United States Code, 
     for the fiscal year beginning in such year requests funds for 
     the Department of Defense for assistance or activities under 
     Cooperative Threat Reduction programs with the states of the 
     former Soviet Union, the Secretary of Defense shall submit to 
     Congress a report on activities and assistance during the 
     preceding fiscal year under Cooperative Threat Reduction 
     programs setting forth the matters in subsection (c).
       (b) Deadline for Report.--The report under subsection (a) 
     shall be submitted not later than the first Monday in 
     February of a year.
       (c) Matters To Be Included.--The report under subsection 
     (a) in a year shall set forth the following:
       (1) An estimate of the total amount that will be required 
     to be expended by the United States in order to achieve the 
     objectives of the Cooperative Threat Reduction programs.
       (2) A five-year plan setting forth the amount of funds and 
     other resources proposed to be provided by the United States 
     for Cooperative Threat Reduction programs over the term of 
     the plan, including the purpose for which such funds and 
     resources will be used, and to provide guidance for the 
     preparation of annual budget submissions with respect to 
     Cooperative Threat Reduction programs.
       (3) A description of the Cooperative Threat Reduction 
     activities carried out during the fiscal year ending in the 
     year preceding the year of the report, including--
       (A) the amounts notified, obligated, and expended for such 
     activities and the purposes for which such amounts were 
     notified, obligated, and expended for such fiscal year and 
     cumulatively for Cooperative Threat Reduction programs;
       (B) a description of the participation, if any, of each 
     department and agency of the United States Government in such 
     activities;
       (C) a description of such activities, including the forms 
     of assistance provided;
       (D) a description of the United States private sector 
     participation in the portion of such activities that were 
     supported by the obligation and expenditure of funds for 
     Cooperative Threat Reduction programs; and
       (E) such other information as the Secretary of Defense 
     considers appropriate to inform Congress fully of the 
     operation of Cooperative Threat Reduction programs and 
     activities, including with respect to proposed 
     demilitarization or conversion projects, information on the 
     progress toward demilitarization of facilities and the 
     conversion of the demilitarized facilities to civilian 
     activities.
       (4) A description of the audits, examinations, and other 
     efforts, such as on-site inspections, conducted by the United 
     States during the fiscal year ending in the year preceding 
     the year of the report to ensure that assistance provided 
     under Cooperative Threat Reduction programs is fully 
     accounted for and that such assistance is being used for its 
     intended purpose, including--
       (A) if such assistance consisted of equipment, a 
     description of the current location of such equipment and the 
     current condition of such equipment;
       (B) if such assistance consisted of contracts or other 
     services, a description of the status of such contracts or 
     services and the methods used to ensure that such contracts 
     and services are being used for their intended purpose;
       (C) a determination whether the assistance described in 
     subparagraphs (A) and (B) has been used for its intended 
     purpose; and
       (D) a description of the audits, examinations, and other 
     efforts planned to be carried out during the fiscal year 
     beginning in the year of the report to ensure that 
     Cooperative Threat Reduction assistance provided during such 
     fiscal year is fully accounted for and is used for its 
     intended purpose.
       (5) A current description of the tactical nuclear weapons 
     arsenal of Russia, including--
       (A) an estimate of the current types, numbers, yields, 
     viability, locations, and deployment status of the nuclear 
     warheads in that arsenal;
       (B) an assessment of the strategic relevance of such 
     warheads;
       (C) an assessment of the current and projected threat of 
     theft, sale, or unauthorized use of such warheads; and
       (D) a summary of past, current, and planned United States 
     efforts to work cooperatively with Russia to account for, 
     secure, and reduce Russia's stockpile of tactical nuclear 
     warheads and associated fissile materials.
       (d) Input of DCI.--The Director of Central Intelligence 
     shall submit to the Secretary of Defense the views of the 
     Director on any matters covered by subsection (c)(5) in a 
     report under subsection (a). Such views shall be included in 
     such report as a classified annex to such report.
       (e) Comptroller General Assessment.--Not later than 90 days 
     after the date on which a report is submitted to Congress 
     under subsection (a), the Comptroller General shall submit to 
     Congress a report setting forth the Comptroller General's 
     assessment of the information described in paragraphs (2) and 
     (4) of subsection (c).
       (f) First Report.--The first report submitted under 
     subsection (a) shall be submitted in 2001.
       (g) Repeal of Superseded Reporting Requirements.--(1) The 
     following provisions of law are repealed:
       (A) Section 1207 of the Cooperative Threat Reduction Act of 
     1994 (title XII of Public Law 103-160; 107 Stat. 1782; 22 
     U.S.C. 5956), relating to semiannual reports on Cooperative 
     Threat Reduction.
       (B) Section 1203 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2882), 
     relating to a report accounting for United States assistance 
     for Cooperative Threat Reduction.
       (C) Section 1206 of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 22 U.S.C. 5955 
     note), relating to accounting for United States assistance 
     for Cooperative Threat Reduction.
       (D) Section 1307 of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 795), 
     relating to a limitation on use of funds for Cooperative 
     Threat Reduction pending submittal of a multiyear plan.
       (2) Effective on the date the Secretary of Defense submits 
     to Congress an updated version of the multiyear plan for 
     fiscal year 2001 as described in subsection (h), section 1205 
     of the National Defense Authorization Act for Fiscal Year 
     1995 (108 Stat. 2883; 10 U.S.C. 5952 note), relating to 
     multiyear planning and Allied support for Cooperative Threat 
     Reduction, is repealed.
       (3) Section 1312 of the National Defense Authorization Act 
     for Fiscal Year 2000 (113 Stat. 796; 22 U.S.C. 5955 note), 
     relating to Russian nonstrategic nuclear arms, is amended--
       (A) by striking ``(a) Sense of Congress.--''; and
       (B) by striking subsections (b) and (c).
       (h) Limitation on Use of Funds Until Submission of 
     Multiyear Plan.--Not more than 10 percent of fiscal year 2001 
     Cooperative Threat Reduction funds may be obligated or 
     expended until the Secretary of Defense submits to Congress 
     an updated version of the multiyear plan for fiscal year 2001 
     required to be submitted under section 1205 of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337; 22 U.S.C. 5952 note).
       (i) Report on Russian Nonstrategic Nuclear Arms.--Not later 
     than 30 days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to Congress a report on the 
     following regarding Russia's arsenal of tactical nuclear 
     warheads:
       (1) Estimates regarding current types, numbers, yields, 
     viability, locations, and deployment status of the warheads.
       (2) An assessment of the strategic relevance of the 
     warheads.
       (3) An assessment of the current and projected threat of 
     theft, sale, or unauthorized use of the warheads.
       (4) A summary of past, current, and planned United States 
     efforts to work cooperatively with

[[Page 21453]]

     Russia to account for, secure, and reduce Russia's stockpile 
     of tactical nuclear warheads and associated fissile material.

     SEC. 1309. RUSSIAN CHEMICAL WEAPONS ELIMINATION.

       (a) Sense of Congress.--It is the sense of Congress that 
     the international community should, when practicable, assist 
     Russia in eliminating its chemical weapons stockpile in 
     accordance with Russia's obligations under the Chemical 
     Weapons Convention, and that the level of such assistance 
     should be based on--
       (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; and
       (5) an agreement by Russia to destroy its chemical weapons 
     production facilities at Volgograd and Novocheboksark.
       (b) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report that identifies--
       (1) the amount spent by Russia for chemical weapons 
     elimination during fiscal year 2000;
       (2) the specific assistance being provided to Russia by the 
     international community for the safe storage and elimination 
     of Russia's stockpile of nerve agents, including those nerve 
     agents located at the Shchuch'ye depot;
       (3) the countries providing the assistance identified in 
     paragraph (2); and
       (4) the value of the assistance that the international 
     community has already provided and has committed to provide 
     in future years for the purpose described in paragraph (2).
       (c) Chemical Weapons Convention Defined.--In this section, 
     the term ``Chemical Weapons Convention'' means the Convention 
     on the Prohibition of the Development, Production, 
     Stockpiling and Use of Chemical Weapons and on Their 
     Destruction, opened for signature on January 13, 1993.

     SEC. 1310. LIMITATION ON USE OF FUNDS FOR ELIMINATION OF 
                   WEAPONS GRADE PLUTONIUM PROGRAM.

       Of the amounts authorized to be appropriated by this Act 
     for fiscal year 2001 for the Elimination of Weapons Grade 
     Plutonium Program, not more than 50 percent of such amounts 
     may be obligated or expended for the program in fiscal year 
     2001 until 30 days after the date on which the Secretary of 
     Defense submits to the Committees on Armed Services of the 
     Senate and House of Representatives a report on an agreement 
     between the United States Government and the Government of 
     the Russian Federation regarding a new option selected for 
     the shut down or conversion of the reactors of the Russian 
     Federation that produce weapons grade plutonium, including--
       (1) the new date on which such reactors will cease 
     production of weapons grade plutonium under such agreement by 
     reason of the shut down or conversion of such reactors; and
       (2) any cost-sharing arrangements between the United States 
     Government and the Government of the Russian Federation in 
     undertaking activities under such agreement.

     SEC. 1311. REPORT ON AUDITS OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS.

       Not later than March 31, 2001, the Comptroller General 
     shall submit to Congress a report examining the procedures 
     and mechanisms with respect to audits by the Department of 
     Defense of the use of funds for Cooperative Threat Reduction 
     programs. The report shall examine the following:
       (1) Whether the audits being conducted by the Department of 
     Defense are producing necessary information regarding whether 
     assistance under such programs, including equipment provided 
     and services furnished, is being used as intended.
       (2) Whether the audit procedures of the Department of 
     Defense are adequate, including whether random samplings are 
     used.
 TITLE XIV--COMMISSION TO ASSESS THE THREAT TO THE UNITED STATES FROM 
                   ELECTROMAGNETIC PULSE (EMP) ATTACK
Sec. 1401. Establishment of commission.
Sec. 1402. Duties of commission.
Sec. 1403. Reports.
Sec. 1404. Powers.
Sec. 1405. Commission procedures.
Sec. 1406. Personnel matters.
Sec. 1407. Miscellaneous administrative provisions.
Sec. 1408. Funding.
Sec. 1409. Termination of the commission.

     SEC. 1401. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is hereby established a 
     commission to be known as the ``Commission to Assess the 
     Threat to the United States from Electromagnetic Pulse 
     Attack'' (hereinafter in this title referred to as the 
     ``Commission'').
       (b) Composition.--The Commission shall be composed of nine 
     members. Seven of the members shall be appointed by the 
     Secretary of Defense and two of the members shall be 
     appointed by the Director of the Federal Emergency Management 
     Agency. In selecting individuals for appointment to the 
     Commission, the Secretary of Defense shall consult with the 
     chairmen and ranking minority members of the Committees on 
     Armed Services of the Senate and House of Representatives.
       (c) Qualifications.--Members of the Commission shall be 
     appointed from among private United States citizens with 
     knowledge and expertise in the scientific, technical, and 
     military aspects of electromagnetic pulse (hereinafter in 
     this title referred to as ``EMP'') effects resulting from the 
     detonation of a nuclear weapon or weapons at high altitude, 
     sometimes referred to as high-altitude electromagnetic pulse 
     effects (HEMP).
       (d) Chairman of Commission.--The Secretary of Defense shall 
     designate one of the members of the Commission to serve as 
     chairman of the Commission.
       (e) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall be filled in the same manner as the original 
     appointment.
       (f) Security Clearances.--All members of the Commission 
     shall hold appropriate security clearances.
       (g) Initial Organization Requirements.--All appointments to 
     the Commission shall be made not later than 90 days after the 
     date of the enactment of this Act. The Commission shall 
     convene its first meeting not later than 60 days after the 
     date as of which all members of the Commission have been 
     appointed.

     SEC. 1402. DUTIES OF COMMISSION.

       (a) Review of EMP Threat.--The Commission shall assess--
       (1) the nature and magnitude of potential high-altitude EMP 
     threats to the United States from all potentially hostile 
     states or non-state actors that have or could acquire nuclear 
     weapons and ballistic missiles enabling them to perform a 
     high-altitude EMP attack against the United States within the 
     next 15 years;
       (2) the vulnerability of United States military and 
     especially civilian systems to an EMP attack, giving special 
     attention to vulnerability of the civilian infrastructure as 
     a matter of emergency preparedness;
       (3) the capability of the United States to repair and 
     recover from damage inflicted on United States military and 
     civilian systems by an EMP attack; and
       (4) the feasibility and cost of hardening select military 
     and civilian systems against EMP attack.
       (b) Recommendation.--The Commission shall recommend any 
     steps it believes should be taken by the United States to 
     better protect its military and civilian systems from EMP 
     attack.
       (c) Cooperation From Government Officials.--In carrying out 
     its duties, the Commission should receive the full and timely 
     cooperation of the Secretary of Defense, the Director of the 
     Federal Emergency Management Agency, and any other United 
     States Government official serving in the Department of 
     Defense or Armed Forces in providing the Commission with 
     analyses, briefings, and other information necessary for the 
     fulfillment of its responsibilities.

     SEC. 1403. REPORTS.

       (a) Commission Report.--The Commission shall, not later 
     than one year after the date of its first meeting, submit to 
     Congress, the Secretary of Defense, and the Director of the 
     Federal Emergency Management Agency a report on the 
     Commission's findings and conclusions.
       (b) Secretary of Defense Report.--Not later than one year 
     after the date of the Commission's report under subsection 
     (a), the Secretary of Defense shall submit to Congress a 
     report--
       (1) commenting on the Commission's findings and 
     conclusions;
       (2) describing political-military scenarios that could 
     possibly lead to an EMP attack against the United States;
       (3) evaluating the relative likelihood of an EMP attack 
     against the United States compared to other threats involving 
     nuclear weapons; and
       (4) explaining what actions, if any, the Secretary intends 
     to take to implement the recommendations of the Commission 
     and the Secretary's reasons for doing so.

     SEC. 1404. POWERS.

       (a) Hearings.--The Commission or, at its direction, any 
     panel or member of the Commission, may, for the purpose of 
     carrying out the provisions of this title, hold hearings, 
     take testimony, receive evidence, and administer oaths to the 
     extent that the Commission or any panel or member considers 
     advisable.
       (b) Information.--The Commission may secure directly from 
     the Department of Defense, the Central Intelligence Agency, 
     and any other Federal department or agency information that 
     the Commission considers necessary to enable the Commission 
     to carry out its responsibilities under this title.

     SEC. 1405. COMMISSION PROCEDURES.

       (a) Meetings.--The Commission shall meet at the call of the 
     Chairman.
       (b) Quorum.--(1) Five members of the Commission shall 
     constitute a quorum other than for the purpose of holding 
     hearings.
       (2) The Commission shall act by resolution agreed to by a 
     majority of the members of the Commission.
       (c) Commission.--The Commission may establish panels 
     composed of less than full membership of the Commission for 
     the purpose of carrying out the Commission's duties. The 
     actions of each such panel shall be subject to the review and 
     control of the Commission. Any findings and determinations 
     made by such a panel shall not be considered the findings and 
     determinations of the Commission unless approved by the 
     Commission.
       (d) Authority of Individuals To Act for Commission.--Any 
     agent or member of the Commission may, if authorized by the 
     Commission,

[[Page 21454]]

     take any action which the Commission is authorized to take 
     under this title.

     SEC. 1406. PERSONNEL MATTERS.

       (a) Pay of Members.--Members of the Commission shall serve 
     without pay by reason of their work on the Commission.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Staff.--(1) The chairman of the Commission may, without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, appoint a 
     staff director and such additional personnel as may be 
     necessary to enable the Commission to perform its duties. The 
     appointment of a staff director shall be subject to the 
     approval of the Commission.
       (2) The chairman of the Commission may fix the pay of the 
     staff director and other personnel without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     title 5, United States Code, relating to classification of 
     positions and General Schedule pay rates, except that the 
     rate of pay fixed under this paragraph for the staff director 
     may not exceed the rate payable for level V of the Executive 
     Schedule under section 5316 of such title and the rate of pay 
     for other personnel may not exceed the maximum rate payable 
     for grade GS-15 of the General Schedule.
       (d) Detail of Government Employees.--Upon request of the 
     chairman of the Commission, the head of any Federal 
     department or agency may detail, on a nonreimbursable basis, 
     any personnel of that department or agency to the Commission 
     to assist it in carrying out its duties.
       (e) Procurement of Temporary and Intermittent Services.--
     The chairman of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     payable for level V of the Executive Schedule under section 
     5316 of such title.

     SEC. 1407. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

       (a) Postal and Printing Services.--The Commission may use 
     the United States mails and obtain printing and binding 
     services in the same manner and under the same conditions as 
     other departments and agencies of the Federal Government.
       (b) Miscellaneous Administrative and Support Services.--The 
     Secretary of Defense shall furnish the Commission, on a 
     reimbursable basis, any administrative and support services 
     requested by the Commission.

     SEC. 1408. FUNDING.

       Funds for activities of the Commission shall be provided 
     from amounts appropriated for the Department of Defense for 
     operation and maintenance for Defense-wide activities for 
     fiscal year 2001. Upon receipt of a written certification 
     from the Chairman of the Commission specifying the funds 
     required for the activities of the Commission, the Secretary 
     of Defense shall promptly disburse to the Commission, from 
     such amounts, the funds required by the Commission as stated 
     in such certification.

     SEC. 1409. TERMINATION OF THE COMMISSION.

       The Commission shall terminate 60 days after the date of 
     the submission of its report under section 1403(a).
    TITLE XV--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO
Sec. 1501. Assistance for economic growth on Vieques.
Sec. 1502. Conveyance of Naval Ammunition Support Detachment, Vieques 
              Island.
Sec. 1503. Determination regarding continuation of Navy training.
Sec. 1504. Actions if training is approved.
Sec. 1505. Requirements if training is not approved or mandate for 
              referendum is vitiated.
Sec. 1506. Certain properties exempt from conveyance or transfer.
Sec. 1507. Moratorium on improvements at Fort Buchanan.
Sec. 1508. Transfer and management of Conservation Zones.

     SEC. 1501. ASSISTANCE FOR ECONOMIC GROWTH ON VIEQUES.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Defense for fiscal 
     year 2000, $40,000,000 to be used to provide economic 
     assistance for the people and communities of the island of 
     Vieques, Puerto Rico, in accordance with the terms and 
     conditions of the Vieques supplemental appropriation.
       (b) Transfer Authority.--The Secretary of Defense may 
     transfer amounts of authorizations made available to the 
     Department of Defense in subsection (a) to any agency or 
     office of the United States Government in order to implement 
     the projects for which the Vieques supplemental appropriation 
     is made available. The transfer authority under this section 
     is in addition to any transfer authority provided in Public 
     Law 106-65 or any other Act.
       (c) Notice to Congress.-- The advance notice required by 
     the Vieques supplemental appropriation of each proposed 
     transfer shall also be submitted to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives.
       (d) Definition.--In this section, the term ``Vieques 
     supplemental appropriation'' means the paragraph under the 
     heading ``Operation and Maintenance, Defense-Wide'' in 
     chapter 1 of title I of the Emergency Supplemental Act, 2000 
     (division B of Public Law 106-246; 114 Stat. 525).

     SEC. 1502. CONVEYANCE OF NAVAL AMMUNITION SUPPORT DETACHMENT, 
                   VIEQUES ISLAND.

       (a) Conveyance Required.--
       (1) Property to be conveyed.--The Secretary of the Navy 
     shall convey, without consideration, to the Municipality of 
     Vieques, Puerto Rico, all right, title, and interest of the 
     United States in and to the land constituting the Naval 
     Ammunition Support Detachment located on the western end of 
     the island of Vieques, Puerto Rico, except for--
       (A) the property that is exempt from conveyance under 
     section 1506;
       (B) the property that is required to be transferred to the 
     Secretary of the Interior under section 1508(a); and
       (C) any property that is conveyed pursuant to section 
     1508(b).
       (2) Time for conveyance.--The Secretary of the Navy shall 
     complete the conveyance required by paragraph (1) not later 
     than May 1, 2001.
       (b) Description of Property.--The Secretary of the Navy, in 
     consultation with the Secretary of the Interior on issues 
     relating to natural resource protection under section 1508, 
     shall determine the exact acreage and legal description of 
     the property required to be conveyed pursuant to subsection 
     (a), including the legal description of any easements, rights 
     of way, and other interests that are retained pursuant to 
     section 1506.
       (c) Environmental Restoration.--
       (1) Objective of conveyance.--An important objective of the 
     conveyance required by this section is to promote timely 
     redevelopment of the conveyed property in a manner that 
     enhances employment opportunities and economic redevelopment, 
     consistent with all applicable environmental requirements and 
     in full consultation with the Governor of Puerto Rico, for 
     the benefit of the residents of the island of Vieques.
       (2) Conveyance despite response need.--If the Secretary of 
     the Navy, by May 1, 2001, is unable to provide the covenant 
     required by subparagraph (A)(ii)(I) of section 120(h)(3) of 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9620(h)(3)) with respect to 
     the property to be conveyed, the Secretary shall still 
     complete the conveyance by that date, as required by 
     subsection (a)(2). The Secretary shall remain responsible for 
     completing all response actions required under such Act. Upon 
     completion of such response actions, the Secretary shall 
     execute and deliver to the transferee the warranty referred 
     to in subparagraph (C)(iii) of such section. The completion 
     of the response actions shall not be delayed on account of 
     the conveyance.
       (3) Continued navy responsibility.--Consistent with 
     existing Navy and legal requirements, the Secretary of the 
     Navy shall remain responsible for the environmental condition 
     of the property, and neither the Commonwealth of Puerto Rico 
     nor the Municipality of Vieques shall be responsible for such 
     condition existing at the time of the conveyance.
       (4) Savings clause.--All response actions with respect to 
     the property to be conveyed shall take place in compliance 
     with current law.
       (d) Control of Conveyed Property.--The government of the 
     Municipality of Vieques, acting through the elected officials 
     of that government, shall have the power to administer, 
     manage, and control the property conveyed under subsection 
     (a) in any manner determined by the government of the 
     Municipality of Vieques as being most advantageous to the 
     majority of the residents of the island of Vieques 
     (consistent with the laws of the United States).
       (e) Indemnification.--
       (1) Entities and persons covered; extent.--(A) Except as 
     provided in subparagraph (C), and subject to paragraph (2), 
     the Secretary of Defense shall hold harmless, defend, and 
     indemnify in full the persons and entities described in 
     subparagraph (B) from and against any suit, claim, demand or 
     action, liability, judgment, cost or other fee arising out of 
     any claim for personal injury or property damage (including 
     death, illness, or loss of or damage to property or economic 
     loss) that results from, or is in any manner predicated upon, 
     the release or threatened release (after the conveyance is 
     made under subsection (a)) of any hazardous substance or 
     pollutant or contaminant as a result of Department of Defense 
     activities at those parts of the Naval Ammunition Support 
     Detachment conveyed pursuant to subsection (a).
       (B) The persons and entities described in this paragraph 
     are the following:
       (i) The Commonwealth of Puerto Rico (including any officer, 
     agent, or employee of the Commonwealth of Puerto Rico).
       (ii) The Municipality of Vieques, Puerto Rico, and any 
     other political subdivision of the Commonwealth of Puerto 
     Rico that acquires such ownership or control (including any 
     officer, agent, or employee of that Municipality or other 
     political subdivision).
       (iii) Any other person or entity that acquires such 
     ownership or control.
       (iv) Any successor, assignee, transferee, lender, or lessee 
     of a person or entity described in clauses (i) through (iii).
       (C) To the extent the persons and entities described in 
     subparagraph (B) contributed to any such release or 
     threatened release, subparagraph (A) shall not apply.

[[Page 21455]]

       (2) Conditions on indemnification.--No indemnification may 
     be afforded under this subsection unless the person or entity 
     making a claim for indemnification--
       (A) notifies the Secretary of Defense in writing within two 
     years after such claim accrues or begins action within six 
     months after the date of mailing, by certified or registered 
     mail, of notice of final denial of the claim by the Secretary 
     of Defense;
       (B) furnishes to the Secretary of Defense copies of 
     pertinent papers the entity receives;
       (C) furnishes evidence of proof of any claim, loss, or 
     damage covered by this subsection; and
       (D) provides, upon request by the Secretary of Defense, 
     access to the records and personnel of the entity for 
     purposes of defending or settling the claim or action.
       (3) Responsibilities of secretary of defense.--(A) In any 
     case in which the Secretary of Defense determines that the 
     Department of Defense may be required to make indemnification 
     payments to a person under this subsection for any suit, 
     claim, demand or action, liability, judgment, cost or other 
     fee arising out of any claim for personal injury or property 
     damage referred to in paragraph (1)(A), the Secretary may 
     settle or defend, on behalf of that person, the claim for 
     personal injury or property damage.
       (B) In any case described in subparagraph (A), if the 
     person to whom the Department of Defense may be required to 
     make indemnification payments does not allow the Secretary of 
     Defense to settle or defend the claim, the person may not be 
     afforded indemnification with respect to that claim under 
     this subsection.
       (4) Accrual of action.--For purposes of paragraph (2)(A), 
     the date on which a claim accrues is the date on which the 
     plaintiff knew (or reasonably should have known) that the 
     personal injury or property damage referred to in paragraph 
     (1) was caused or contributed to by the release or threatened 
     release of a hazardous substance or pollutant or contaminant 
     as a result of Department of Defense activities at any part 
     of the Naval Ammunition Support Detachment conveyed pursuant 
     to subsection (a).
       (5) Relationship to other laws.--Nothing in this subsection 
     shall be construed as affecting or modifying in any way 
     subsection 120(h) of the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9620(h)).
       (6) Definitions.--In this subsection, the terms ``hazardous 
     substance'', ``release'', and ``pollutant or contaminant'' 
     have the meanings given such terms under paragraphs (9), 
     (14), (22), and (33) of section 101 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601).

     SEC. 1503. DETERMINATION REGARDING CONTINUATION OF NAVY 
                   TRAINING.

       (a) Referendum.--
       (1) Requirement.--Except as provided in paragraph (2), the 
     President shall provide for a referendum to be conducted on 
     the island of Vieques, Puerto Rico, to determine by a 
     majority of the votes cast in the referendum by the Vieques 
     electorate whether the people of Vieques approve or 
     disapprove of the continuation of the conduct of live-fire 
     training, and any other types of training, by the Armed 
     Forces at the Navy's training sites on the island under the 
     conditions described in subsection (d).
       (2) Exception.--If the Chief of Naval Operations and the 
     Commandant of the Marine Corps jointly submit to the 
     congressional defense committees, after the date of the 
     enactment of this Act and before the date set forth in 
     subsection (c), their certification that the Vieques Naval 
     Training Range is no longer needed for training by the Navy 
     and the Marine Corps, then the requirement for a referendum 
     under paragraph (1) shall cease to be effective on the date 
     on which the certification is submitted.
       (b) Prohibition of Other Propositions.--In the referendum 
     under this section, no proposition or option may be presented 
     as an alternative to the propositions of approval and of 
     disapproval of the continuation of the conduct of training as 
     described in subsection (a)(1).
       (c) Time for Referendum.--The referendum required under 
     this section shall be held on May 1, 2001, or within 270 days 
     before such date or 270 days after such date. The Secretary 
     of the Navy shall publicize the date set for the referendum 
     90 days before that date.
       (d) Required Training Conditions.--For the purposes of the 
     referendum under this section, the conditions for the 
     continuation of the conduct of training are those that are 
     proposed by the Secretary of the Navy and publicized on the 
     island of Vieques in connection with, and for a reasonable 
     period in advance of, the referendum. The conditions shall 
     include the following:
       (1) Live-fire training.--A condition that the training may 
     include live-fire training.
       (2) Maximum annual days of use.--A condition that the 
     training may be conducted on not more than 90 days each year.
       (e) Proclamation of Outcome.--Promptly after the referendum 
     is completed under this section, the President shall 
     determine, and issue a proclamation declaring, the outcome of 
     the referendum. The President's determination shall be final, 
     and the outcome of the referendum (as so determined) shall be 
     binding.
       (f) Vieques Electorate Defined.--
       (1) Registered voters.--In this section, the term ``Vieques 
     electorate'', with respect to a referendum under this 
     section, means the residents of the island of Vieques, Puerto 
     Rico, who, on both dates specified in paragraph (2), are 
     registered to vote in a general election held for casting 
     ballots for the election of the Resident Commissioner of the 
     Commonwealth of Puerto Rico.
       (2) Registration dates.--The dates referred to in paragraph 
     (1) are as follows:
       (A) November 7, 2000.
       (B) The date that is 180 days before the date of the 
     referendum under this section.

     SEC. 1504. ACTIONS IF TRAINING IS APPROVED.

       (a) Condition for Effectiveness.--This section shall take 
     effect on the date on which the President issues a 
     proclamation under subsection (e) of section 1503 declaring 
     that the continuation of the conduct of training (including 
     live-fire training) by the Armed Forces at the Navy's 
     training sites on the island of Vieques, Puerto Rico, under 
     the conditions described in subsection (d) of such section, 
     has been approved in the referendum conducted under such 
     section.
       (b) Authorization of Appropriations for Additional Economic 
     Assistance.--There is authorized to be appropriated to the 
     President $50,000,000 to provide economic assistance for the 
     people and communities of the island of Vieques. This 
     authorization of appropriations is in addition to the amount 
     authorized to appropriated to provide economic assistance 
     under section 1501.
       (c) Training Range To Remain Open.--The Vieques Naval 
     Training Range shall remain available for the use of the 
     Armed Forces, including for live-fire training.

     SEC. 1505. REQUIREMENTS IF TRAINING IS NOT APPROVED OR 
                   MANDATE FOR REFERENDUM IS VITIATED.

       (a) Conditions for Effectiveness.--This section shall take 
     effect on the date on which either of the following occurs:
       (1) The President issues a proclamation under subsection 
     (e) of section 1503 declaring that the continuation of the 
     conduct of training (including live-fire training) by the 
     Armed Forces at the Navy's training sites on the island of 
     Vieques, Puerto Rico, under the conditions described in 
     subsection (d) of such section, has not been approved in the 
     referendum conducted under such section.
       (2) The requirement for a referendum under section 1503 
     ceases to be effective pursuant to subsection (a)(2) of such 
     section.
       (b) Actions Required of Secretary of Defense.--
       (1) Termination of operation.--Not later than May 1, 2003, 
     the Secretary of Defense shall--
       (A) terminate all Navy and Marine Corps training operations 
     on the island of Vieques; and
       (B) terminate all Navy and Marine Corps operations at Naval 
     Station Roosevelt Roads, Puerto Rico, that are related 
     exclusively to the use of the training range on the island of 
     Vieques by the Navy and the Marine Corps.
       (2) Relocation of units.--The Secretary of Defense may 
     relocate the units of the Armed Forces (other than those of 
     the reserve components) and activities of the Department of 
     Defense (including nonappropriated fund activities) at Fort 
     Buchanan, Puerto Rico, to Naval Station Roosevelt Roads, 
     Puerto Rico, to ensure maximum utilization of capacity.
       (3) Closure of installations and facilities.--The Secretary 
     of Defense shall close the Department of Defense 
     installations and facilities on the island of Vieques, other 
     than properties exempt from conveyance and transfer under 
     section 1506.
       (c) Actions Required of Secretary of the Navy.--The 
     Secretary of the Navy shall transfer, without reimbursement, 
     to the administrative jurisdiction of the Secretary of the 
     Interior--
       (1) the Live Impact Area on the island of Vieques;
       (2) all Department of Defense real properties on the 
     eastern side of the island that are identified as 
     conservation zones; and
       (3) all other Department of Defense real properties on the 
     eastern side of the island.
       (d) Actions Required of Secretary of the Interior.--
       (1) Retention and administration.--The Secretary of the 
     Interior shall retain, and may not dispose of any of, the 
     properties transferred under paragraphs (2) and (3) of 
     subsection (c) and shall administer such properties as 
     wildlife refuges under the National Wildlife Refuge System 
     Administration Act of 1966 (16 U.S.C. 668dd et seq.) pending 
     the enactment of a law that addresses the disposition of such 
     properties.
       (2) Responsibility for Live Impact Area.--Upon a 
     termination of Navy and Marine Corps training operations on 
     the island of Vieques under subsection (b)(1), the Secretary 
     of the Interior shall assume responsibility for the 
     administration of the Live Impact Area, administer that area 
     as a wilderness area under the Wilderness Act (16 U.S.C. 1131 
     et seq.), and deny public access to the area.
       (3) Live Impact Area Defined.--In this section, the term 
     ``Live Impact Area'' means the parcel of real property, 
     consisting of approximately 900 acres (more or less), on the 
     island of Vieques that is designated by the Secretary of the 
     Navy for targeting by live ordnance in the training of forces 
     of the Navy and Marine Corps.
       (e) GAO Review.--
       (1) Requirement for review.--The Comptroller General shall 
     review the requirement for the continued use of Fort 
     Buchanan, Puerto Rico, by active Army forces and shall submit 
     to the congressional defense committees a report containing--
       (A) the findings resulting from the review; and

[[Page 21456]]

       (B) recommendations regarding the closure of Fort Buchanan 
     and the consolidation of units of the Armed Forces to Naval 
     Station Roosevelt Roads, Puerto Rico.
       (2) Time for submittal of report.--The Comptroller General 
     shall submit the report under paragraph (1) not later than 
     one year after the date on which the referendum under section 
     1503 is conducted or one year after the date on which a 
     certification is submitted to the congressional defense 
     committees under subsection (a)(2) of such section, as the 
     case may be.

     SEC. 1506. CERTAIN PROPERTIES EXEMPT FROM CONVEYANCE OR 
                   TRANSFER.

       (a) Exempt Property.--The Department of Defense properties 
     and property interests described in subsection (b) may not be 
     conveyed or transferred out of the Department of Defense 
     under this title.
       (b) Properties Described.--The exemption under subsection 
     (a) applies to the following Department of Defense properties 
     and property interests on the island of Vieques, Puerto Rico:
       (1) ROTHR site.--The site for relocatable over-the-horizon 
     radar.
       (2) Telecommunications sites.--The Mount Pirata 
     telecommunications sites.
       (3) Associated interests.--Any easements, rights-of-way, 
     and other interests in property that the Secretary of the 
     Navy determines necessary for--
       (A) ensuring access to the properties referred to in 
     paragraphs (1) and (2);
       (B) providing utilities for such properties;
       (C) ensuring the security of such properties; and
       (D) ensuring effective maintenance and operations on such 
     properties.
       (4) Remediation activities.--Any easements, rights-of-way, 
     and other interests in property that the Secretary of the 
     Navy determines necessary for protecting human health and the 
     environment in the discharge of the Secretary's 
     responsibilities for environmental remediation under section 
     1502(c), until such time as these responsibilities are 
     completed.

     SEC. 1507. MORATORIUM ON IMPROVEMENTS AT FORT BUCHANAN.

       (a) In General.--Except as provided in subsection (b), no 
     acquisition, construction, conversion, rehabilitation, 
     extension, or improvement of any facility at Fort Buchanan, 
     Puerto Rico, may be initiated or continued on or after the 
     date of the enactment of this Act.
       (b) Exceptions.--The prohibition in subsection (a) does not 
     apply to the following:
       (1) Actions necessary to maintain the existing facilities 
     (including utilities) at Fort Buchanan.
       (2) The construction of reserve component and 
     nonappropriated fund facilities authorized before the date of 
     the enactment of this Act.
       (c) Termination.--This section shall cease to be effective 
     upon the issuance of a proclamation described in section 
     1504(a) or the enactment of a law, after the date of the 
     enactment of this Act, that authorizes any acquisition, 
     construction, conversion, rehabilitation, extension, or 
     improvement of any facility at Fort Buchanan, Puerto Rico.

     SEC. 1508. TRANSFER AND MANAGEMENT OF CONSERVATION ZONES.

       (a) Transfer to Secretary of the Interior.--
       (1) Transfer required.--Except as provided in section 1506, 
     the Secretary of the Navy shall transfer, without 
     reimbursement, to the administrative jurisdiction of the 
     Secretary of the Interior all Department of Defense real 
     properties on the western end of the Vieques Island, 
     consisting of a total of approximately 3,100 acres, that are 
     designated as Conservation Zones in section IV of the 1983 
     Memorandum of Understanding between the Commonwealth of 
     Puerto Rico and the Secretary of the Navy.
       (2) Time for transfer.--The Secretary of the Navy shall 
     complete the transfer required by paragraph (1) not later 
     than May 1, 2001.
       (b) Conveyance to Conservation Trust.--
       (1) Conveyance required.--Except as provided in section 
     1506 and subject to paragraph (2), the Secretary of the Navy 
     shall convey, without consideration, to the Puerto Rico 
     Conservation Trust the additional Conservation Zones, 
     consisting of a total of approximately 800 acres, identified 
     in Alternative 1 in the Draft Environmental Assessment for 
     the proposed transfer of Naval Ammunition Support Detachment 
     property, Vieques, Puerto Rico, prepared by the Department of 
     the Navy, as described in the Federal Register of August 28, 
     2000 (65 Fed. Reg. 52100).
       (2) Time for conveyance.--The Secretary of the Navy shall 
     complete the conveyance required by paragraph (1) not later 
     than May 1, 2001, except that paragraph (1) shall apply only 
     to those portions of the lands described in such paragraph 
     that the Commonwealth of Puerto Rico, the Secretary of the 
     Interior, and the Puerto Rico Conservation Trust mutually 
     agree, before that date, to--
       (A) include in the cooperative agreement under subsection 
     (d)(2); and
       (B) manage under standards consistent with the standards in 
     subsection (c) applicable to the lands transferred under 
     subsection (a).
       (c) Administration of Properties as Wildlife Refuges.--The 
     Secretary of the Interior shall administer as wildlife 
     refuges under the National Wildlife Refuge System 
     Administration Act of 1966 (16 U.S.C. 668dd et seq.) the 
     Conservation Zones transferred to the Secretary under 
     subsection (a).
       (d) Cooperative Agreement.--
       (1) Required; parties.--The Secretary of the Interior shall 
     manage the Conservation Zones transferred under subsection 
     (a) pursuant to a cooperative agreement among the 
     Commonwealth of Puerto Rico, the Puerto Rico Conservation 
     Trust, and the Secretary of the Interior.
       (2) Inclusion of adjacent areas.--Areas adjacent to the 
     Conservation Zones transferred under subsection (a) shall be 
     considered for inclusion under the cooperative agreement. 
     Subject to the mutual agreement of the Commonwealth of Puerto 
     Rico, the Secretary of the Interior, and the Puerto Rico 
     Conservation Trust, such adjacent areas may be included under 
     the cooperative agreement, except that the total acreage so 
     included under this paragraph may not exceed 800 acres. This 
     determination of inclusion of lands shall be incorporated 
     into the cooperative agreement process as set forth in 
     paragraph (4).
       (3) Sea grass area.--The Sea Grass Area west of Mosquito 
     Pier, as identified in the 1983 Memorandum of Understanding 
     between the Commonwealth of Puerto Rico and the Secretary of 
     the Navy, shall be included in the cooperative agreement to 
     be protected under the laws of the United States and the laws 
     of the Commonwealth of Puerto Rico.
       (4) Management purposes.--All lands covered by the 
     cooperative agreement shall be managed to protect and 
     preserve the natural resources of the lands in perpetuity. 
     The Commonwealth of Puerto Rico, the Puerto Rico Conservation 
     Trust, and the Secretary of the Interior shall follow all 
     applicable Federal environmental laws during the creation and 
     any subsequent amendment of the cooperative agreement, 
     including the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), the Endangered Species Act of 1973 (16 
     U.S.C. 1531 et seq.), and the National Historic Preservation 
     Act (16 U.S.C. 470 et seq.).
       (5) Completion and implementation.--The cooperative 
     agreement shall be completed not later than May 1, 2001. The 
     Secretary of the Interior shall implement the terms and 
     conditions of the cooperative agreement, which can only be 
     amended by agreement of the Commonwealth of Puerto Rico, the 
     Puerto Rico Conservation Trust, and the Secretary of the 
     Interior.
     TITLE XVI--GI BILL EDUCATIONAL ASSISTANCE AND VETERANS CLAIMS 
                               ASSISTANCE

                Subtitle A--Veterans Education Benefits

Sec. 1601. Additional opportunity for certain VEAP participants to 
              enroll in basic educational assistance under Montgomery 
              GI Bill.
Sec. 1602. Modification of authority to pay tuition for off-duty 
              training and education.

                 Subtitle B--Veterans Claims Assistance

Sec. 1611. Clarification of Department of Veterans Affairs duty to 
              assist.
                Subtitle A--Veterans Education Benefits

     SEC. 1601. ADDITIONAL OPPORTUNITY FOR CERTAIN VEAP 
                   PARTICIPANTS TO ENROLL IN BASIC EDUCATIONAL 
                   ASSISTANCE UNDER MONTGOMERY GI BILL.

       (a) Special Enrollment Period.--Section 3018C of title 38, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(e)(1) A qualified individual (described in paragraph 
     (2)) may make an irrevocable election under this subsection, 
     during the one-year period beginning on the date of the 
     enactment of this subsection, to become entitled to basic 
     educational assistance under this chapter. Such an election 
     shall be made in the same manner as elections made under 
     subsection (a)(5).
       ``(2) A qualified individual referred to in paragraph (1) 
     is an individual who meets each of the following 
     requirements:
       ``(A) The individual was a participant in the educational 
     benefits program under chapter 32 of this title on or before 
     October 9, 1996.
       ``(B) The individual has continuously served on active duty 
     since October 9, 1996 (excluding the periods referred to in 
     section 3202(1)(C) of this title), through at least April, 1, 
     2000.
       ``(C) The individual meets the requirements of subsection 
     (a)(3).
       ``(D) The individual, when discharged or released from 
     active duty, is discharged or released therefrom with an 
     honorable discharge.
       ``(3)(A) Subject to the succeeding provisions of this 
     paragraph, with respect to a qualified individual who makes 
     an election under paragraph (1) to become entitled to basic 
     education assistance under this chapter--
       ``(i) the basic pay of the qualified individual shall be 
     reduced (in a manner determined by the Secretary concerned) 
     until the total amount by which such basic pay is reduced is 
     $2,700; and
       ``(ii) to the extent that basic pay is not so reduced 
     before the qualified individual's discharge or release from 
     active duty as specified in subsection (a)(4), at the 
     election of the qualified individual--
       ``(I) the Secretary concerned shall collect from the 
     qualified individual, or
       ``(II) the Secretary concerned shall reduce the retired or 
     retainer pay of the qualified individual by,
     an amount equal to the difference between $2,700 and the 
     total amount of reductions under clause (i), which shall be 
     paid into the Treasury of the United States as miscellaneous 
     receipts.
       ``(B)(i) The Secretary concerned shall provide for an 18-
     month period, beginning on the date the qualified individual 
     makes an election under paragraph (1), for the qualified 
     individual to pay that Secretary the amount due under 
     subparagraph (A).
       ``(ii) Nothing in clause (i) shall be construed as 
     modifying the period of eligibility for and entitlement to 
     basic education assistance under

[[Page 21457]]

     this chapter applicable under section 3031 of this title.
       ``(C) The provisions of subsection (c) shall apply to 
     individuals making elections under this subsection in the 
     same manner as they applied to individuals making elections 
     under subsection (a)(5).
       ``(4) With respect to qualified individuals referred to in 
     paragraph (3)(A)(ii), no amount of educational assistance 
     allowance under this chapter shall be paid to the qualified 
     individual until the earlier of the date on which--
       ``(A) the Secretary concerned collects the applicable 
     amount under subparagraph (I) of such paragraph, or
       ``(B) the retired or retainer pay of the qualified 
     individual is first reduced under subparagraph (II) of such 
     paragraph.
       ``(5) The Secretary, in conjunction with the Secretary of 
     Defense, shall provide for notice to participants in the 
     educational benefits program under chapter 32 of this title 
     of the opportunity under this section to elect to become 
     entitled to basic educational assistance under this 
     chapter.''.
       (b) Conforming Amendment.--Section 3018C(b) of such title 
     is amended by striking ``subsection (a)'' and inserting 
     ``subsection (a) or (e)''.

     SEC. 1602. MODIFICATION OF AUTHORITY TO PAY TUITION FOR OFF-
                   DUTY TRAINING AND EDUCATION.

       (a) Authority To Pay All Charges.--Section 2007 of title 
     10, United States Code, is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following new subsections:
       ``(a) Subject to subsection (b), the Secretary of a 
     military department may pay all or a portion of the charges 
     of an educational institution for the tuition or expenses of 
     a member of the armed forces enrolled in such educational 
     institution for education or training during the member's 
     off-duty periods.
       ``(b) In the case of a commissioned officer on active duty, 
     the Secretary of the military department concerned may not 
     pay charges under subsection (a) unless the officer agrees to 
     remain on active duty for a period of at least two years 
     after the completion of the training or education for which 
     the charges are paid.''; and
       (2) in subsection (d)--
       (A) by striking ``(within the limits set forth in 
     subsection (a))'' in the matter preceding paragraph (1); and
       (B) in paragraph (3), by striking ``subsection (a)(3)'' and 
     inserting ``subsection (b)''.
       (b) Use of Entitlement to Assistance under Montgomery GI 
     Bill for Payment of Charges.--(1) That section is further 
     amended by adding at the end the following new subsection:
       ``(e)(1) A member of the armed forces who is entitled to 
     basic educational assistance under chapter 30 of title 38 may 
     use such entitlement for purposes of paying any portion of 
     the charges described in subsection (a) or (c) that are not 
     paid for by the Secretary of the military department 
     concerned under such subsection.
       ``(2) The use of entitlement under paragraph (1) shall be 
     governed by the provisions of section 3014(b) of title 38.''.
       (2) Section 3014 of title 38, United States Code, is 
     amended--
       (A) by inserting ``(a)'' before ``The Secretary''; and
       (B) by adding at the end the following new subsection:
       ``(b)(1) In the case of an individual entitled to basic 
     educational assistance who is pursuing education or training 
     described in subsection (a) or (c) of section 2007 of title 
     10, the Secretary shall, at the election of the individual, 
     pay the individual a basic educational assistance allowance 
     to meet all or a portion of the charges of the educational 
     institution for the education or training that are not paid 
     by the Secretary of the military department concerned under 
     such subsection.
       ``(2)(A) The amount of the basic educational assistance 
     allowance payable to an individual under this subsection for 
     a month shall be the amount of the basic educational 
     assistance allowance to which the individual would be 
     entitled for the month under section 3015 of this title 
     (without regard to subsection (g) of that section) were 
     payment made under that section instead of under this 
     subsection.
       ``(B) The maximum number of months for which an individual 
     may be paid a basic educational assistance allowance under 
     paragraph (1) is 36.''.
       (3) Section 3015 of title 38, United States Code, is 
     amended--
       (A) by striking ``subsection (g)'' each place it appears in 
     subsections (a) and (b);
       (B) by redesignating subsection (g) as subsection (h); and
       (C) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) In the case of an individual who has been paid a 
     basic educational assistance allowance under section 3014(b) 
     of this title, the rate of the basic educational assistance 
     allowance applicable to the individual under this section 
     shall be the rate otherwise applicable to the individual 
     under this section reduced by an amount equal to--
       ``(1) the aggregate amount of such allowances paid the 
     individual under such section 3014(b); divided by
       ``(2) 36.''.
                 Subtitle B--Veterans Claims Assistance

     SEC. 1611. CLARIFICATION OF DEPARTMENT OF VETERANS AFFAIRS 
                   DUTY TO ASSIST.

       (a) In General.--Section 5107 of title 38, United States 
     Code, is amended to read as follows:

     ``Sec. 5107 Assistance to claimants; benefit of the doubt; 
       burden of proof

       ``(a) The Secretary shall assist a claimant in developing 
     all facts pertinent to a claim for benefits under this title. 
     Such assistance shall include requesting information as 
     described in section 5106 of this title. The Secretary shall 
     provide a medical examination when such examination may 
     substantiate entitlement to the benefits sought. The 
     Secretary may decide a claim without providing assistance 
     under this subsection when no reasonable possibility exists 
     that such assistance will aid in the establishment of 
     entitlement.
       ``(b) The Secretary shall consider all evidence and 
     material of record in a case before the Department with 
     respect to benefits under laws administered by the Secretary 
     and shall give the claimant the benefit of the doubt when 
     there is an approximate balance of positive and negative 
     evidence regarding any issue material to the determination of 
     the matter.
       ``(c) Except when otherwise provided by this title or by 
     the Secretary in accordance with the provisions of this 
     title, a person who submits a claim for benefits under a law 
     administered by the Secretary shall have the burden of 
     proof.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 51 of that title is amended by striking 
     the item relating to section 5017 and inserting the following 
     new item:

``5107 Assistance to claimants; benefit of the doubt; burden of 
              proof.''.
                 TITLE XVII--ASSISTANCE TO FIREFIGHTERS
Sec. 1701. Firefighter assistance.
Sec. 1702. Volunteer fire assistance program.
Sec. 1703. Burn research.
Sec. 1704. Study and demonstration projects regarding cases of 
              hepatitis C among certain emergency response employees.
Sec. 1705. Report on progress on spectrum sharing.
Sec. 1706. Sale or donation of excess defense property to assist 
              firefighting agencies.
Sec. 1707. Identification of defense technologies suitable for use, or 
              conversion for use, in providing fire and emergency 
              medical services.

     SEC. 1701. FIREFIGHTER ASSISTANCE.

       (a) In General.--The Federal Fire Prevention and Control 
     Act of 1974 (15 U.S.C. 2201 et seq.) is amended by adding at 
     the end the following new section:

     ``SEC. 33. FIREFIGHTER ASSISTANCE.

       ``(a) Definition of Firefighting Personnel.--In this 
     section, the term `firefighting personnel' means individuals, 
     including volunteers, who are firefighters, officers of fire 
     departments, or emergency medical service personnel of fire 
     departments.
       ``(b) Assistance Program.--
       ``(1) Authority.--In accordance with this section, the 
     Director may--
       ``(A) make grants on a competitive basis directly to fire 
     departments of a State, in consultation with the chief 
     executive of the State, for the purpose of protecting the 
     health and safety of the public and firefighting personnel 
     against fire and fire-related hazards; and
       ``(B) provide assistance for fire prevention programs in 
     accordance with paragraph (4).
       ``(2) Office for administration of assistance.--
       ``(A) Establishment.--Before providing assistance under 
     paragraph (1), the Director shall establish an office in the 
     Federal Emergency Management Agency to administer the 
     assistance under this section.
       ``(B) Included duties.--The duties of the office shall 
     include the following:
       ``(i) Recipient selection criteria.--To establish specific 
     criteria for the selection of recipients of the assistance 
     under this section.
       ``(ii) Grant-writing assistance.--To provide grant-writing 
     assistance to applicants.
       ``(3) Use of fire department grant funds.--The Director may 
     make a grant under paragraph (1)(A) only if the applicant for 
     the grant agrees to use the grant funds--
       ``(A) to hire additional firefighting personnel;
       ``(B) to train firefighting personnel in firefighting, 
     emergency response, arson prevention and detection, or the 
     handling of hazardous materials, or to train firefighting 
     personnel to provide any of the training described in this 
     subparagraph;
       ``(C) to fund the creation of rapid intervention teams to 
     protect firefighting personnel at the scenes of fires and 
     other emergencies;
       ``(D) to certify fire inspectors;
       ``(E) to establish wellness and fitness programs for 
     firefighting personnel to ensure that the firefighting 
     personnel can carry out their duties;
       ``(F) to fund emergency medical services provided by fire 
     departments;
       ``(G) to acquire additional firefighting vehicles, 
     including fire trucks;
       ``(H) to acquire additional firefighting equipment, 
     including equipment for communications and monitoring;
       ``(I) to acquire personal protective equipment required for 
     firefighting personnel by the Occupational Safety and Health 
     Administration, and other personal protective equipment for 
     firefighting personnel;
       ``(J) to modify fire stations, fire training facilities, 
     and other facilities to protect the health and safety of 
     firefighting personnel;

[[Page 21458]]

       ``(K) to enforce fire codes;
       ``(L) to fund fire prevention programs;
       ``(M) to educate the public about arson prevention and 
     detection; or
       ``(N) to provide incentives for the recruitment and 
     retention of volunteer firefighting personnel for volunteer 
     firefighting departments and other firefighting departments 
     that utilize volunteers.
       ``(4) Fire prevention programs.--
       ``(A) In general.--For each fiscal year, the Director shall 
     use not less than 5 percent of the funds made available under 
     subsection (e)--
       ``(i) to make grants to fire departments for the purpose 
     described in paragraph (3)(L); and
       ``(ii) to make grants to, or enter into contracts or 
     cooperative agreements with, national, State, local, or 
     community organizations that are recognized for their 
     experience and expertise with respect to fire prevention or 
     fire safety programs and activities, for the purpose of 
     carrying out fire prevention programs.
       ``(B) Priority.--In selecting organizations described in 
     subparagraph (A)(ii) to receive assistance under this 
     paragraph, the Director shall give priority to organizations 
     that focus on prevention of injuries to children from fire.
       ``(5) Application.--The Director may provide assistance to 
     a fire department or organization under this subsection only 
     if the fire department or organization seeking the assistance 
     submits to the Director an application that meets the 
     following requirements:
       ``(A) Form.--The application shall be in such form as the 
     Director may require.
       ``(B) Information.--The application shall include the 
     following information:
       ``(i) Financial need.--Information that demonstrates the 
     financial need of the applicant for the assistance for which 
     applied.
       ``(ii) Cost-benefit analysis.--An analysis of the costs and 
     benefits, with respect to public safety, of the use of the 
     assistance.
       ``(iii) Reporting systems data.--An agreement to provide 
     information to the national fire incident reporting system 
     for the period covered by the assistance.
       ``(iv) Other information.--Any other information that the 
     Director may require.
       ``(6) Matching requirement.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Director may provide assistance under this subsection only if 
     the applicant for the assistance agrees to match with an 
     equal amount of non-Federal funds 30 percent of the 
     assistance received under this subsection for any fiscal 
     year.
       ``(B) Requirement for small community organizations.--In 
     the case of an applicant whose personnel serve jurisdictions 
     of 50,000 or fewer residents, the percent applied under the 
     matching requirement of subparagraph (A) shall be 10 percent.
       ``(7) Maintenance of expenditures--The Director may provide 
     assistance under this subsection only if the applicant for 
     the assistance agrees to maintain in the fiscal year for 
     which the assistance will be received the applicant's 
     aggregate expenditures for the uses described in paragraph 
     (3) or (4) at or above the average level of such expenditures 
     in the two fiscal years preceding the fiscal year for which 
     the assistance will be received.
       ``(8) Report to the director.--The Director may provide 
     assistance under this subsection only if the applicant for 
     the assistance agrees to submit to the Director a report, 
     including a description of how the assistance was used, with 
     respect to each fiscal year for which the assistance was 
     received.
       ``(9) Variety of fire department grant recipients.--The 
     Director shall ensure that grants under paragraph (1)(A) for 
     a fiscal year are made to a variety of fire departments, 
     including, to the extent that there are eligible applicants--
       ``(A) paid, volunteer, and combination fire departments;
       ``(B) fire departments located in communities of varying 
     sizes; and
       ``(C) fire departments located in urban, suburban, and 
     rural communities.
       ``(10) Grant Limitations.--
       ``(A) Recipient limitation.--A grant recipient under this 
     section may not receive more than $750,000 under this section 
     for any fiscal year.
       ``(B) Limitation on expenditures for firefighting 
     vehicles.--Not more than 25 percent of the funds appropriated 
     to provide grants under this section for a fiscal year may be 
     used to assist grant recipients to purchase vehicles, as 
     authorized by paragraph (3)(G).
       ``(11) Reservation of grant funds for volunteer 
     departments.--In making grants to firefighting departments, 
     the Director shall ensure that those firefighting departments 
     that have either all-volunteer forces of firefighting 
     personnel or combined forces of volunteer and professional 
     firefighting personnel receive a proportion of the total 
     grant funding that is not less than the proportion of the 
     United States population that those firefighting departments 
     protect.
       ``(c) Audits.--A recipient of a grant under this section 
     shall be subject to audits to ensure that the grant proceeds 
     are expended for the intended purposes and that the grant 
     recipient complies with the requirements of paragraphs (6) 
     and (7) of subsection (b).
       ``(d) State Defined.--In this section, the term `State' 
     includes the District of Columbia and the Commonwealth of 
     Puerto Rico.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated for the purposes of this 
     section amounts as follows:
       ``(1) $100,000,000 for fiscal year 2001.
       ``(2) $300,000,000 for fiscal year 2002.''.
       (b) Study on Need for Federal Assistance to State and Local 
     Communities To Fund Firefighting and Emergency Response 
     Activities.--
       (1) Requirement for study.--The Director of the Federal 
     Emergency Management Agency shall conduct a study in 
     conjunction with the National Fire Protection Association 
     to--
       (A) define the current role and activities associated with 
     the fire services;
       (B) determine the adequacy of current levels of funding; 
     and
       (C) provide a needs assessment to identify shortfalls.
       (2) Time for completion of study; report.--The Director 
     shall complete the study under paragraph (1), and submit a 
     report on the results of the study to Congress, within 18 
     months after the date of the enactment of this Act.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated to the Federal Emergency Management Agency 
     $300,000 for fiscal year 2001 to carry out the study required 
     by paragraph (1).

     SEC. 1702. VOLUNTEER FIRE ASSISTANCE PROGRAM.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Agriculture for carrying out paragraphs (1) 
     through (3) of section 10(b) of the Cooperative Forestry 
     Assistance Act of 1978 (16 U.S.C. 2106(b)(1)-(3)) amounts as 
     follows:
       (1) $10,000,000 for fiscal year 2001.
       (2) $20,000,000 for fiscal year 2002.
       (b) Report.--
       (1) In general.--The Secretary of Agriculture shall submit 
     a report to Congress on the results of the assistance 
     provided under the provisions of law for which funds are 
     authorized for appropriations under subsection (a).
       (2) Content.--The report shall contain the following:
       (A) A list of the organizations that received funds 
     authorized for appropriations under subsection (a) and the 
     purpose for which those organizations were provided the 
     funds.
       (B) Efforts taken to ensure that potential recipients are 
     provided with information necessary to develop an effective 
     application.
       (C) The Secretary's assessment regarding the appropriate 
     level of funding that should be provided annually through the 
     assistance program.
       (D) The Secretary's assessment regarding the appropriate 
     purposes for such assistance.
       (E) Any other information the Secretary determines 
     necessary.
       (3) Submission date.--The report shall be submitted not 
     later than February 1, 2002.

     SEC. 1703. BURN RESEARCH.

       (a) Office.--The Director of the Federal Emergency 
     Management Agency shall establish an office in the Agency to 
     establish specific criteria of grant recipients and to 
     administer grants under this section.
       (b) Safety Organization Grants.--The Director may make 
     grants, on a competitive basis, to safety organizations that 
     have experience in conducting burn safety programs for the 
     purpose of assisting those organizations in conducting burn 
     prevention programs or augmenting existing burn prevention 
     programs.
       (c) Hospital Grants.--The Director may make grants, on a 
     competitive basis, to hospitals that serve as regional burn 
     centers to conduct acute burn care research.
       (d) Other Grants.--The Director may make grants, on a 
     competitive basis, to governmental and nongovernmental 
     entities to provide after-burn treatment and counseling to 
     individuals that are burn victims.
       (e) Report.--
       (1) In general.--The Director of the Federal Emergency 
     Management Agency shall submit a report to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives on the results of the grants provided 
     under this section.
       (2) Content.--The report shall contain the following:
       (A) A list of the organizations, hospitals, or other 
     entities to which the grants were provided and the purpose 
     for which those entities were provided grants.
       (B) Efforts taken to ensure that potential grant applicants 
     are provided with information necessary to develop an 
     effective application.
       (C) The Director's assessment regarding the appropriate 
     level of funding that should be provided annually through the 
     grant program.
       (D) The Director's assessment regarding the appropriate 
     purposes for such grants.
       (E) Any other information the Director determines 
     necessary.
       (3) Submission date.--The report shall be submitted not 
     later than February 1, 2002.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated for the purposes of this section amounts 
     as follows:
       (1) $10,000,000 for fiscal year 2001.
       (2) $20,000,000 for fiscal year 2002.

     SEC. 1704. STUDY AND DEMONSTRATION PROJECTS REGARDING CASES 
                   OF HEPATITIS C AMONG CERTAIN EMERGENCY RESPONSE 
                   EMPLOYEES.

       (a) Study Regarding Prevalence Among Certain Emergency 
     Response Employees.--
       (1) In general.--The Secretary of Health and Human Services 
     (referred to in this section as the ``Secretary''), in 
     consultation with the Secretary of Labor, shall conduct a 
     study to determine--
       (A) an estimate of the prevalence of hepatitis C among 
     designated emergency response employees in the United States; 
     and
       (B) the likely means through which such employees become 
     infected with such disease in the

[[Page 21459]]

     course of performing their duties as such employees.
       (2) Designated emergency response employees.--For purposes 
     of this section, the term ``designated emergency response 
     employees'' means firefighters, paramedics, and emergency 
     medical technicians who are employees or volunteers of units 
     of local government.
       (3) Date certain for completion; report to congress.--The 
     Secretary shall commence the study under paragraph (1) not 
     later than 90 days after the date of the enactment of this 
     Act. Not later that one year after such date, the Secretary 
     shall complete the study and submit to the Congress a report 
     describing the findings of the study.
       (b) Demonstration Projects Regarding Training and 
     Treatment.--
       (1) In general.--The Secretary, in consultation with the 
     Secretary of Labor, shall make grants to qualifying local 
     governments for the purpose of carrying out demonstration 
     projects that (directly or through arrangements with 
     nonprofit private entities) carry out each of the following 
     activities:
       (A) Training designated emergency response employees in 
     minimizing the risk of infection with hepatitis C in 
     performing their duties as such employees.
       (B) Testing such employees for infection with the disease.
       (C) Treating the employees for the disease.
       (2) Qualifying local governments.--For purposes of this 
     section, the term ``qualifying local government'' means a 
     unit of local government whose population of designated 
     emergency response employees has a prevalence of hepatitis C 
     that is not less than 200 percent of the national average for 
     the prevalence of such disease in such populations.
       (3) Confidentiality.--A grant may be made under paragraph 
     (1) only if the qualifying local government involved agrees 
     to ensure that information regarding the testing or treatment 
     of designated emergency response employees pursuant to the 
     grant is maintained confidentially in a manner not 
     inconsistent with applicable law.
       (4) Evaluations.--The Secretary shall provide for an 
     evaluation of each demonstration project under paragraph (1) 
     in order to determine the extent to which the project has 
     been effective in carry out the activities described in such 
     paragraph.
       (5) Report to congress.--Not later than 180 days after the 
     date on which all grants under paragraph (1) have been 
     expended, the Secretary shall submit to Congress a report 
     providing--
       (A) a summary of evaluations under paragraph (4); and
       (B) the recommendations of the Secretary for administrative 
     or legislative initiatives regarding the activities described 
     in paragraph (1).
       (c) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there is authorized to be 
     appropriated to the Department of Health and Human Services 
     and the Department of Labor $10,000,000 for fiscal year 2001.

     SEC. 1705. REPORT ON PROGRESS ON SPECTRUM SHARING.

       (a) Study Required.--The Secretary of Defense, in 
     consultation with the Attorney General and the Secretary of 
     Commerce, shall provide for the conduct of an engineering 
     study to identify--
       (1) any portion of the 138-144 megahertz band that the 
     Department of Defense can share in various geographic regions 
     with public safety radio services;
       (2) any measures required to prevent harmful interference 
     between Department of Defense systems and the public safety 
     systems proposed for operation on those frequencies; and
       (3) a reasonable schedule for implementation of such 
     sharing of frequencies.
       (b) Submission of Interim Report.--Within one year after 
     the date of enactment of this Act, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives an interim report on the progress of the 
     study conducted pursuant to subsection (a).
       (c) Report.--Not later than January 1, 2002, the Secretary 
     of Commerce and the Chairman of the Federal Communications 
     Commission shall jointly submit a report to Congress on 
     alternative frequencies available for use by public safety 
     systems.

     SEC. 1706. SALE OR DONATION OF EXCESS DEFENSE PROPERTY TO 
                   ASSIST FIREFIGHTING AGENCIES.

       (a) Transfer Authorized.--Chapter 153 of title 10, United 
     States Code, is amended by inserting after section 2576a the 
     following new section:

     ``Sec. 2576b. Excess personal property: sale or donation to 
       assist firefighting agencies

       ``(a) Transfer Authorized.--Subject to subsection (b), the 
     Secretary of Defense may transfer to a firefighting agency in 
     a State any personal property of the Department of Defense 
     that the Secretary determines is--
       ``(1) excess to the needs of the Department of Defense; and
       ``(2) suitable for use in providing fire and emergency 
     medical services, including personal protective equipment and 
     equipment for communication and monitoring.
       ``(b) Conditions for Transfer.--The Secretary of Defense 
     may transfer personal property under this section only if--
       ``(1) the property is drawn from existing stocks of the 
     Department of Defense;
       ``(2) the recipient firefighting agency accepts the 
     property on an as-is, where-is basis;
       ``(3) the transfer is made without the expenditure of any 
     funds available to the Department of Defense for the 
     procurement of defense equipment; and
       ``(4) all costs incurred subsequent to the transfer of the 
     property are borne or reimbursed by the recipient.
       ``(c) Consideration.--Subject to subsection (b)(4), the 
     Secretary may transfer personal property under this section 
     without charge to the recipient firefighting agency.
       ``(d) Definitions.--In this section:
       ``(1) State.--The term `State' includes the District of 
     Columbia, the Commonwealth of Puerto Rico, the Commonwealth 
     of the Northern Mariana Islands, and any territory or 
     possession of the United States.
       ``(2) Firefighting agency.--The term `firefighting agency' 
     means any volunteer, paid, or combined departments that 
     provide fire and emergency medical services.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2576a the following new item:

``2576b. Excess personal property: sale or donation to assist 
              firefighting agencies.''.

     SEC. 1707. IDENTIFICATION OF DEFENSE TECHNOLOGIES SUITABLE 
                   FOR USE, OR CONVERSION FOR USE, IN PROVIDING 
                   FIRE AND EMERGENCY MEDICAL SERVICES.

       (a) Appointment of Task Force; Purpose.--The Secretary of 
     Defense shall appoint a task force consisting of 
     representatives from the Department of Defense and each of 
     the seven major fire organizations identified in subsection 
     (b) to identify defense technologies and equipment that--
       (1) can be readily put to civilian use by fire service and 
     the emergency response agencies; and
       (2) can be transferred to these agencies using the 
     authority provided by section 2576b of title 10, United 
     States Code, as added by section 1706 of this Act.
       (b) Participating Major Fire Organizations.--Members of the 
     task force shall be appointed from each of the following:
       (1) The International Association of Fire Chiefs.
       (2) The International Association of Fire Fighters.
       (3) The National Volunteer Fire Council.
       (4) The International Association of Arson Investigators.
       (5) The International Society of Fire Service Instructors.
       (6) The National Association of State Fire Marshals.
       (7) The National Fire Protection Association.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Defense for activities 
     of the task force $1,000,000 for fiscal year 2001.
                        TITLE XVIII--IMPACT AID
Sec. 1801. Short title.
Sec. 1802. Purpose.
Sec. 1803. Payments relating to Federal acquisition of real property.
Sec. 1804. Payments for eligible federally connected children.
Sec. 1805. Maximum amount of basic support payments.
Sec. 1806. Basic support payments for heavily impacted local 
              educational agencies.
Sec. 1807. Basic support payments for local educational agencies 
              affected by removal of Federal property.
Sec. 1808. Additional payments for local educational agencies with high 
              concentrations of children with severe disabilities.
Sec. 1809. Application for payments under sections 8002 and 8003.
Sec. 1810. Payments for sudden and substantial increases in attendance 
              of military dependents.
Sec. 1811. Construction.
Sec. 1812. State consideration of payments in providing State aid.
Sec. 1813. Federal administration.
Sec. 1814. Administrative hearings and judicial review.
Sec. 1815. Forgiveness of overpayments.
Sec. 1816. Definitions.
Sec. 1817. Authorization of appropriations.
Sec. 1818. Effective date.

     SEC. 1801. SHORT TITLE.

       This title may be cited as the ``Impact Aid Reauthorization 
     Act of 2000''.

     SEC. 1802. PURPOSE.

       Section 8001 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7701) is amended--
       (1) in the matter preceding paragraph (1)--
       (A) by inserting after ``educational services to federally 
     connected children'' the following: ``in a manner that 
     promotes control by local educational agencies with little or 
     no Federal or State involvement''; and
       (B) by inserting after ``certain activities of the Federal 
     Government'' the following: ``, such as activities to fulfill 
     the responsibilities of the Federal Government with respect 
     to Indian tribes and activities under section 514 of the 
     Soldiers' and Sailors' Civil Relief Act of 1940 (50 U.S.C. 
     App. 574),'';
       (2) in paragraph (4), by adding ``or'' at the end;
       (3) by striking paragraph (5);
       (4) by redesignating paragraph (6) as paragraph (5); and
       (5) in paragraph (5) (as redesignated), by inserting before 
     the period at the end the following: ``and because of the 
     difficulty of raising

[[Page 21460]]

     local revenue through bond referendums for capital projects 
     due to the inability to tax Federal property''.

     SEC. 1803. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL 
                   PROPERTY.

       (a) Fiscal Year Requirement.--Section 8002(a) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7702(a)) is amended in the matter preceding paragraph (1) by 
     striking ``1999'' and inserting ``2003''.
       (b) Amount.--
       (1) Prohibition on reduction in amount of payment.--Section 
     8002(b)(1)(A)(i) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7702(b)(1)(A)(i)) is amended--
       (A) by striking ``(i) The amount'' and inserting ``(i)(I) 
     Subject to subclauses (II) and (III), the amount'';
       (B) by striking ``, except that'' and all that follows 
     through ``Federal property''; and
       (C) by adding at the end the following:
       ``(II) Except as provided in subclause (III), the Secretary 
     may not reduce the amount of a payment under this section to 
     a local educational agency for a fiscal year by (aa) the 
     amount equal to the amount of revenue, if any, the agency 
     received during the previous fiscal year from activities 
     conducted on Federal property eligible under this section and 
     located in a school district served by the agency, including 
     amounts received from any Federal department or agency (other 
     than the Department of Education) from such activities, by 
     reason of receipt of such revenue, or (bb) any other amount 
     by reason of receipt of such revenue.
       ``(III) If the amount equal to the sum of (aa) the proposed 
     payment under this section to a local educational agency for 
     a fiscal year and (bb) the amount of revenue described in 
     subclause (II)(aa) received by the agency during the previous 
     fiscal year, exceeds the maximum amount the agency is 
     eligible to receive under this section for the fiscal year 
     involved, then the Secretary shall reduce the amount of the 
     proposed payment under this section by an amount equal to 
     such excess amount.''.
       (2) Insufficient funds.--Section 8002(b)(1)(B) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7702(b)(1)(B)) is amended by striking ``shall ratably reduce 
     the payment to each eligible local educational agency'' and 
     inserting ``shall calculate the payment for each eligible 
     local educational agency in accordance with subsection (h)''.
       (3) Maximum amount.--Section 8002(b)(1)(C) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7702(b)(1)(C)) is amended by adding at the end before the 
     period the following: ``, or the maximum amount that such 
     agency is eligible to receive for such fiscal year under this 
     section, whichever is greater''.
       (c) Payments With Respect to Fiscal Years in Which 
     Insufficient Funds Are Appropriated.--Section 8002(h) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7702(h)) is amended to read as follows:
       ``(h) Payments With Respect to Fiscal Years in Which 
     Insufficient Funds Are Appropriated.--For any fiscal year for 
     which the amount appropriated under section 8014(a) is 
     insufficient to pay to each eligible local educational agency 
     the full amount determined under subsection (b), the 
     Secretary shall make payments to each local educational 
     agency under this section as follows:
       ``(1) Foundation payments for pre-1995 recipients.--
       ``(A) In general.--The Secretary shall first make a 
     foundation payment to each local educational agency that is 
     eligible to receive a payment under this section for the 
     fiscal year involved and was eligible to receive a payment 
     under section 2 of the Act of September 30, 1950 (Public Law 
     874, 81st Congress) (as such section was in effect on the day 
     preceding the date of the enactment of the Improving 
     America's Schools Act of 1994) for any of the fiscal years 
     1989 through 1994.
       ``(B) Amount.--The amount of a payment under subparagraph 
     (A) for a local educational agency shall be equal to 38 
     percent of the local educational agency's maximum entitlement 
     amount under section 2 of the Act of September 30, 1950, for 
     fiscal year 1994 (or if the local educational agency was not 
     eligible to receive a payment under such section 2 for fiscal 
     year 1994, the local educational agency's maximum entitlement 
     amount under such section 2 for the most recent fiscal year 
     preceding 1994).
       ``(C) Insufficient appropriations.--If the amount 
     appropriated under section 8014(a) is insufficient to pay the 
     full amount determined under this paragraph for all eligible 
     local educational agencies for the fiscal year, then the 
     Secretary shall ratably reduce the payment to each local 
     educational agency under this paragraph.
       ``(2) Payments for 1995 recipients.--
       ``(A) In general.--From any amounts remaining after making 
     payments under paragraph (1) for the fiscal year involved, 
     the Secretary shall make a payment to each eligible local 
     educational agency that received a payment under this section 
     for fiscal year 1995.
       ``(B) Amount.--The amount of a payment under subparagraph 
     (A) for a local educational agency shall be determined as 
     follows:
       ``(i) Calculate the difference between the amount 
     appropriated to carry out this section for fiscal year 1995 
     and the total amount of foundation payments made under 
     paragraph (1) for the fiscal year.
       ``(ii) Determine the percentage share for each local 
     educational agency that received a payment under this section 
     for fiscal year 1995 by dividing the assessed value of the 
     Federal property of the local educational agency for fiscal 
     year 1995 determined in accordance with subsection (b)(3), by 
     the total eligible national assessed value of the eligible 
     Federal property of all such local educational agencies for 
     fiscal year 1995, as so determined.
       ``(iii) Multiply the percentage share described in clause 
     (ii) for the local educational agency by the amount 
     determined under clause (i).
       ``(3) Subsection (i) recipients.--From any funds remaining 
     after making payments under paragraphs (1) and (2) for the 
     fiscal year involved, the Secretary shall make payments in 
     accordance with subsection (i).
       ``(4) Remaining funds.--From any funds remaining after 
     making payments under paragraphs (1), (2), and (3) for the 
     fiscal year involved--
       ``(A) the Secretary shall make a payment to each local 
     educational agency that received a foundation payment under 
     paragraph (1) for the fiscal year involved in an amount that 
     bears the same relation to 25 percent of the remainder as the 
     amount the local educational agency received under paragraph 
     (1) for the fiscal year involved bears to the amount all 
     local educational agencies received under paragraph (1) for 
     the fiscal year involved; and
       ``(B) the Secretary shall make a payment to each local 
     educational agency that is eligible to receive a payment 
     under this section for the fiscal year involved in an amount 
     that bears the same relation to 75 percent of the remainder 
     as a percentage share determined for the local educational 
     agency (in the same manner as percentage shares are 
     determined for local educational agencies under paragraph 
     (2)(B)(ii)) bears to the percentage share determined (in the 
     same manner) for all local educational agencies eligible to 
     receive a payment under this section for the fiscal year 
     involved, except that for the purpose of calculating a local 
     educational agency's assessed value of the Federal property, 
     data from the most current fiscal year shall be used.''.
       (d) Special Payments.--
       (1) In general.--Section 8002(i)(1) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7702(i)(1)) is 
     amended to read as follows:
       ``(1) In general.--For any fiscal year beginning with 
     fiscal year 2000 for which the amount appropriated to carry 
     out this section exceeds the amount so appropriated for 
     fiscal year 1996 and for which subsection (b)(1)(B) applies, 
     the Secretary shall use the remainder described in subsection 
     (h)(3) for the fiscal year involved (not to exceed the amount 
     equal to the difference between (A) the amount appropriated 
     to carry out this section for fiscal year 1997 and (B) the 
     amount appropriated to carry out this section for fiscal year 
     1996) to increase the payment that would otherwise be made 
     under this section to not more than 50 percent of the maximum 
     amount determined under subsection (b) for any local 
     educational agency described in paragraph (2).''.
       (2) Conforming amendment.--The heading of section 8002(i) 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7702(i)) is amended by striking ``Priority'' and 
     inserting Special''.
       (e) Additional Assistance for Certain Local Educational 
     Agencies Impacted by Federal Property Acquisition.--Section 
     8002(j)(2) of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7702(j)(2)) is amended--
       (1) by striking ``(A) A local educational agency'' and 
     inserting ``A local educational agency'';
       (2) by redesignating clauses (i) through (v) as 
     subparagraphs (A) through (E), respectively; and
       (3) in subparagraph (C) (as redesignated), by adding at the 
     end before the semicolon the following: ``and, at the time at 
     which the agency is applying for a payment under this 
     subsection, the agency does not have a military installation 
     located within its geographic boundaries''.
       (f) Prior Year Data.--Section 8002 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7702) is amended 
     by adding at the end the following:
       ``(l) Prior Year Data.--Notwithstanding any other provision 
     of this section, in determining the eligibility of a local 
     educational agency for a payment under subsection (b) or 
     (h)(4)(B) of this section for a fiscal year, and in 
     calculating the amount of such payment, the Secretary--
       ``(1) shall use data from the prior fiscal year with 
     respect to the Federal property involved, including data with 
     respect to the assessed value of the property and the real 
     property tax rate for current expenditures levied against or 
     imputed to the property; and
       ``(2) shall use data from the second prior fiscal year with 
     respect to determining the amount of revenue referred to in 
     subsection (b)(1)(A)(i).''.
       (g) Eligibility.--Section 8002 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7702), as amended 
     by this section, is further amended by adding at the end the 
     following:
       ``(m) Eligibility.--
       ``(1) Old federal property.--Except as provided in 
     paragraph (2), a local educational agency that is eligible to 
     receive a payment under this section for Federal property 
     acquired by the Federal Government before the date of 
     enactment of the Impact Aid Reauthorization Act of 2000 shall 
     be eligible to receive the payment only if the local 
     educational agency submits an application for a payment under 
     this section not later than 5 years after the date of the 
     enactment of such Act.
       ``(2) Combined federal property.--A local educational 
     agency that is eligible to receive a

[[Page 21461]]

     payment under this section for Federal property acquired by 
     the Federal Government before the date of enactment of the 
     Impact Aid Reauthorization Act of 2000 shall be eligible to 
     receive the payment if--
       ``(A) the Federal property, when combined with other 
     Federal property in the school district served by the local 
     educational agency acquired by the Federal Government after 
     the date of the enactment of such Act, meets the requirements 
     of subsection (a); and
       ``(B) the local educational agency submits an application 
     for a payment under this section not later than 5 years after 
     the date of acquisition of the Federal property acquired 
     after the date of the enactment of such Act.
       ``(3) New federal property.--A local educational agency 
     that is eligible to receive a payment under this section for 
     Federal property acquired by the Federal Government after the 
     date of enactment of the Impact Aid Reauthorization Act of 
     2000 shall be eligible to receive the payment only if the 
     local educational agency submits an application for a payment 
     under this section not later than 5 years after the date of 
     acquisition.''.

     SEC. 1804. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED 
                   CHILDREN.

       (a) General Amendments.--Section 8003 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703) is amended--
       (1) in subsection (a)(2)--
       (A) by redesignating subparagraph (E) as subparagraph (F);
       (B) in subparagraph (D), by striking ``subparagraphs (D) 
     and (E) of paragraph (1) by a factor of .10'' and inserting 
     ``subparagraph (D) of paragraph (1) by a factor of .20''; and
       (C) by inserting after subparagraph (D) the following:
       ``(E) Multiply the number of children described in 
     subparagraph (E) of paragraph (1) by a factor of .10.'';
       (2) in subsection (b)(1), by adding at the end the 
     following:
       ``(D) Data.--If satisfactory data from the third preceding 
     fiscal year are not available for any of the expenditures 
     described in clause (i) or (ii) of subparagraph (C), the 
     Secretary shall use data from the most recent fiscal year for 
     which data that are satisfactory to the Secretary are 
     available.
       ``(E) Special rule.--For purposes of determining the 
     comparable local contribution rate under subparagraph 
     (C)(iii) for a local educational agency described in section 
     222.39(c)(3) of title 34, Code of Federal Regulations, that 
     had its comparable local contribution rate for fiscal year 
     1998 calculated pursuant to section 222.39 of title 34, Code 
     of Federal Regulations, the Secretary shall determine such 
     comparable local contribution rate as the rate upon which 
     payments under this subsection for fiscal year 2000 were made 
     to the local educational agency adjusted by the percentage 
     increase or decrease in the per pupil expenditure in the 
     State serving the local educational agency calculated on the 
     basis of the second most recent preceding school year 
     compared to the third most recent preceding school year for 
     which school year data are available.''; and
       (3) by amending subsection (e) to read as follows:
       ``(e) Hold Harmless.--
       ``(1) In general.--Subject to paragraphs (2) and (3), the 
     total amount the Secretary shall pay a local educational 
     agency under subsection (b)--
       ``(A) for fiscal year 2001 shall not be less than 85 
     percent of the total amount that the local educational agency 
     received under subsections (b) and (f) for fiscal year 2000; 
     and
       ``(B) for fiscal year 2002 shall not be less than 70 
     percent of the total amount that the local educational agency 
     received under subsections (b) and (f) for fiscal year 2000.
       ``(2) Maximum amount.--The total amount provided to a local 
     educational agency under subparagraph (A) or (B) of paragraph 
     (1) for a fiscal year shall not exceed the maximum basic 
     support payment amount for such agency determined under 
     paragraph (1) or (2) of subsection (b), as the case may be.
       ``(3) Ratable reductions.--
       ``(A) In general.--If the sums made available under this 
     title for any fiscal year are insufficient to pay the full 
     amounts that all local educational agencies in all States are 
     eligible to receive under paragraph (1) for such year, then 
     the Secretary shall ratably reduce the payments to all such 
     agencies for such year.
       ``(B) Additional funds.--If additional funds become 
     available for making payments under paragraph (1) for such 
     fiscal year, payments that were reduced under subparagraph 
     (A) shall be increased on the same basis as such payments 
     were reduced.''.
       (b) Military Installation and Indian Housing Undergoing 
     Renovation or Rebuilding.--
       (1) In general.--Section 8003(a)(4) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is 
     amended--
       (A) in the heading--
       (i) by inserting ``and indian'' after ``Military 
     installation''; and
       (ii) by inserting ``or rebuilding'' after ``renovation'';
       (B) by striking ``For purposes'' and inserting the 
     following:
       ``(A) In general.--(i) For purposes'';
       (C) in subparagraph (A)(i) (as designated by subparagraph 
     (B)), by inserting ``or rebuilding'' after ``undergoing 
     renovation''; and
       (D) by adding at the end the following:
       ``(ii) For purposes of computing the amount of a payment 
     for a local educational agency that received a payment for 
     children that resided on Indian lands in accordance with 
     paragraph (1)(C) for the fiscal year prior to the fiscal year 
     for which the local educational agency is making an 
     application, the Secretary shall consider such children to be 
     children described in paragraph (1)(C) if the Secretary 
     determines, on the basis of a certification provided to the 
     Secretary by a designated representative of the Secretary of 
     the Interior or the Secretary of Housing and Urban 
     Development, that such children would have resided in housing 
     on Indian lands in accordance with paragraph (1)(C) except 
     that such housing was undergoing renovation or rebuilding on 
     the date for which the Secretary determines the number of 
     children under paragraph (1).
       ``(B) Limitations.--(i)(I) Children described in paragraph 
     (1)(D)(i) may be deemed to be children described in paragraph 
     (1)(B) with respect to housing on Federal property undergoing 
     renovation or rebuilding in accordance with subparagraph 
     (A)(i) for a period not to exceed 3 fiscal years.
       ``(II) The number of children described in paragraph 
     (1)(D)(i) who are deemed to be children described in 
     paragraph (1)(B) with respect to housing on Federal property 
     undergoing renovation or rebuilding in accordance with 
     subparagraph (A)(i) for any fiscal year may not exceed the 
     maximum number of children who are expected to occupy that 
     housing upon completion of the renovation or rebuilding.
       ``(ii)(I) Children that resided on Indian lands in 
     accordance with paragraph (1)(C) for the fiscal year prior to 
     the fiscal year for which the local educational agency is 
     making an application may be deemed to be children described 
     in paragraph (1)(C) with respect to housing on Indian lands 
     undergoing renovation or rebuilding in accordance with 
     subparagraph (A)(ii) for a period not to exceed 3 fiscal 
     years.
       ``(II) The number of children that resided on Indian lands 
     in accordance with paragraph (1)(C) for the fiscal year prior 
     to the fiscal year for which the local educational agency is 
     making an application who are deemed to be children described 
     in paragraph (1)(C) with respect to housing on Indian lands 
     undergoing renovation or rebuilding in accordance with 
     subparagraph (A)(ii) for any fiscal year may not exceed the 
     maximum number of children who are expected to occupy that 
     housing upon completion of the renovation or rebuilding.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply with respect to payments to a local educational 
     agency for fiscal years beginning before, on, or after the 
     date of the enactment of this Act.
       (c) Military ``Build to Lease'' Program Housing.--Section 
     8003(a) of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7703(a)) is amended by adding at the end the 
     following:
       ``(5) Military `build to lease' program housing.--
       ``(A) In general.--For purposes of computing the amount of 
     payment for a local educational agency for children 
     identified under paragraph (1), the Secretary shall consider 
     children residing in housing initially acquired or 
     constructed under the former section 2828(g) of title 10, 
     United States Code (commonly known as the `Build to Lease' 
     program), as added by section 801 of the Military 
     Construction Authorization Act, 1984, to be children 
     described under paragraph (1)(B) if the property described is 
     within the fenced security perimeter of the military facility 
     upon which such housing is situated.
       ``(B) Additional requirements.--If the property described 
     in subparagraph (A) is not owned by the Federal Government, 
     is subject to taxation by a State or political subdivision of 
     a State, and thereby generates revenues for a local 
     educational agency that is applying to receive a payment 
     under this section, then the Secretary--
       ``(i) shall require the local educational agency to provide 
     certification from an appropriate official of the Department 
     of Defense that the property is being used to provide 
     military housing; and
       ``(ii) shall reduce the amount of the payment under this 
     section by an amount equal to the amount of revenue from such 
     taxation received in the second preceding fiscal year by such 
     local educational agency, unless the amount of such revenue 
     was taken into account by the State for such second preceding 
     fiscal year and already resulted in a reduction in the amount 
     of State aid paid to such local educational agency.''.

     SEC. 1805. MAXIMUM AMOUNT OF BASIC SUPPORT PAYMENTS.

       Section 8003(b)(1) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7703(b)(1)), as amended by 
     this Act, is further amended by adding at the end the 
     following:
       ``(F) Increase in local contribution rate due to unusual 
     geographic factors.--If the current expenditures in those 
     local educational agencies which the Secretary has determined 
     to be generally comparable to the local educational agency 
     for which a computation is made under subparagraph (C) are 
     not reasonably comparable because of unusual geographical 
     factors which affect the current expenditures necessary to 
     maintain, in such agency, a level of education equivalent to 
     that maintained in such other agencies, then the Secretary 
     shall increase the local contribution rate for such agency 
     under subparagraph (C)(iii) by such an amount which the 
     Secretary determines will compensate such agency for the 
     increase in current expenditures necessitated by such unusual 
     geographical factors. The amount of any such supplementary 
     payment may not exceed the per-pupil share

[[Page 21462]]

     (computed with regard to all children in average daily 
     attendance), as determined by the Secretary, of the increased 
     current expenditures necessitated by such unusual geographic 
     factors.''.

     SEC. 1806. BASIC SUPPORT PAYMENTS FOR HEAVILY IMPACTED LOCAL 
                   EDUCATIONAL AGENCIES.

       (a) In General.--Section 8003(b) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(b)) is 
     amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following:
       ``(2) Basic support payments for heavily impacted local 
     educational agencies.--
       ``(A) In general.--(i) From the amount appropriated under 
     section 8014(b) for a fiscal year, the Secretary is 
     authorized to make basic support payments to eligible heavily 
     impacted local educational agencies with children described 
     in subsection (a).
       ``(ii) A local educational agency that receives a basic 
     support payment under this paragraph for a fiscal year shall 
     not be eligible to receive a basic support payment under 
     paragraph (1) for that fiscal year.
       ``(B) Eligibility for continuing heavily impacted local 
     educational agencies.--
       ``(i) In general.--A heavily impacted local educational 
     agency is eligible to receive a basic support payment under 
     subparagraph (A) with respect to a number of children 
     determined under subsection (a)(1) if the agency--

       (I) received an additional assistance payment under 
     subsection (f) (as such subsection was in effect on the day 
     before the date of the enactment of the Impact Aid 
     Reauthorization Act of 2000) for fiscal year 2000; and
       ``(II)(aa) is a local educational agency whose boundaries 
     are the same as a Federal military installation;
       ``(bb) has an enrollment of children described in 
     subsection (a)(1) that constitutes a percentage of the total 
     student enrollment of the agency which is not less than 35 
     percent, has a per-pupil expenditure that is less than the 
     average per-pupil expenditure of the State in which the 
     agency is located or the average per-pupil expenditure of all 
     States (whichever average per-pupil expenditure is greater), 
     except that a local educational agency with a total student 
     enrollment of less than 350 students shall be deemed to have 
     satisfied such per-pupil expenditure requirement, and has a 
     tax rate for general fund purposes which is not less than 95 
     percent of the average tax rate for general fund purposes of 
     local educational agencies in the State;
       ``(cc) has an enrollment of children described in 
     subsection (a)(1) that constitutes a percentage of the total 
     student enrollment of the agency which is not less than 30 
     percent, and has a tax rate for general fund purposes which 
     is not less than 125 percent of the average tax rate for 
     general fund purposes for comparable local educational 
     agencies in the State;
       ``(dd) has a total student enrollment of not less than 
     25,000 students, of which not less than 50 percent are 
     children described in subsection (a)(1) and not less than 
     6,000 of such children are children described in 
     subparagraphs (A) and (B) of subsection (a)(1); or
       ``(ee) meets the requirements of subsection (f)(2) applying 
     the data requirements of subsection (f)(4) (as such 
     subsections were in effect on the day before the date of the 
     enactment of the Impact Aid Reauthorization Act of 2000).

       ``(ii) Loss of eligibility.--A heavily impacted local 
     educational agency that met the requirements of clause (i) 
     for a fiscal year shall be ineligible to receive a basic 
     support payment under subparagraph (A) if the agency fails to 
     meet the requirements of clause (i) for a subsequent fiscal 
     year, except that such agency shall continue to receive a 
     basic support payment under this paragraph for the fiscal 
     year for which the ineligibility determination is made.
       ``(iii) Resumption of eligibility.--A heavily impacted 
     local educational agency described in clause (i) that becomes 
     ineligible under such clause for 1 or more fiscal years may 
     resume eligibility for a basic support payment under this 
     paragraph for a subsequent fiscal year only if the agency 
     meets the requirements of clause (i) for that subsequent 
     fiscal year, except that such agency shall not receive a 
     basic support payment under this paragraph until the fiscal 
     year succeeding the fiscal year for which the eligibility 
     determination is made.
       ``(C) Eligibility for new heavily impacted local 
     educational agencies.--
       ``(i) In general.--A heavily impacted local educational 
     agency that did not receive an additional assistance payment 
     under subsection (f) (as such subsection was in effect on the 
     day before the date of the enactment of the Impact Aid 
     Reauthorization Act of 2000) for fiscal year 2000 is eligible 
     to receive a basic support payment under subparagraph (A) for 
     fiscal year 2002 and any subsequent fiscal year with respect 
     to a number of children determined under subsection (a)(1) 
     only if the agency is a local educational agency whose 
     boundaries are the same as a Federal military installation, 
     or the agency--

       ``(I) has an enrollment of children described in subsection 
     (a)(1) that constitutes a percentage of the total student 
     enrollment of the agency that--

       ``(aa) is not less than 50 percent if such agency receives 
     a payment on behalf of children described in subparagraphs 
     (F) and (G) of such subsection; or
       ``(bb) is not less than 40 percent if such agency does not 
     receive a payment on behalf of such children;

       ``(II)(aa) for a local educational agency that has a total 
     student enrollment of 350 or more students, has a per-pupil 
     expenditure that is less than the average per-pupil 
     expenditure of the State in which the agency is located; or
       ``(bb) for a local educational agency that has a total 
     student enrollment of less than 350 students, has a per-pupil 
     expenditure that is less than the average per-pupil 
     expenditure of a comparable local educational agency in the 
     State in which the agency is located; and
       ``(III) has a tax rate for general fund purposes that is at 
     least 95 percent of the average tax rate for general fund 
     purposes of comparable local educational agencies in the 
     State.

       ``(ii) Resumption of eligibility.--A heavily impacted local 
     educational agency described in clause (i) that becomes 
     ineligible under such clause for 1 or more fiscal years may 
     resume eligibility for a basic support payment under this 
     paragraph for a subsequent fiscal year only if the agency is 
     a local educational agency whose boundaries are the same as a 
     Federal military installation, or meets the requirements of 
     clause (i), for that subsequent fiscal year, except that such 
     agency shall continue to receive a basic support payment 
     under this paragraph for the fiscal year for which the 
     ineligibility determination is made.
       ``(iii) Application.--With respect to the first fiscal year 
     for which a heavily impacted local educational agency 
     described in clause (i) applies for a basic support payment 
     under subparagraph (A), or with respect to the first fiscal 
     year for which a heavily impacted local educational agency 
     applies for a basic support payment under subparagraph (A) 
     after becoming ineligible under clause (i) for 1 or more 
     preceding fiscal years, the agency shall apply for such 
     payment at least 1 year prior to the start of that first 
     fiscal year.
       ``(D) Maximum amount for regular heavily impacted local 
     educational agencies.--(i) Except as provided in subparagraph 
     (E), the maximum amount that a heavily impacted local 
     educational agency is eligible to receive under this 
     paragraph for any fiscal year is the sum of the total 
     weighted student units, as computed under subsection (a)(2) 
     and subject to clause (ii), multiplied by the greater of--
       ``(I) four-fifths of the average per-pupil expenditure of 
     the State in which the local educational agency is located 
     for the third fiscal year preceding the fiscal year for which 
     the determination is made; or
       ``(II) four-fifths of the average per-pupil expenditure of 
     all of the States for the third fiscal year preceding the 
     fiscal year for which the determination is made.
       ``(ii)(I) For a local educational agency with respect to 
     which 35 percent or more of the total student enrollment of 
     the schools of the agency are children described in 
     subparagraph (D) or (E) (or a combination thereof) of 
     subsection (a)(1), the Secretary shall calculate the weighted 
     student units of such children for purposes of subsection 
     (a)(2) by multiplying the number of such children by a factor 
     of 0.55.
       ``(II) For a local educational agency that has an 
     enrollment of 100 or fewer children described in subsection 
     (a)(1), the Secretary shall calculate the total number of 
     weighted student units for purposes of subsection (a)(2) by 
     multiplying the number of such children by a factor of 1.75.
       ``(III) For a local educational agency that has an 
     enrollment of more than 100 but not more than 750 children 
     described in subsection (a)(1), the Secretary shall calculate 
     the total number of weighted student units for purposes of 
     subsection (a)(2) by multiplying the number of such children 
     by a factor of 1.25.
       ``(E) Maximum amount for large heavily impacted local 
     educational agencies.--(i)(I) Subject to clause (ii), the 
     maximum amount that a heavily impacted local educational 
     agency described in subclause (II) is eligible to receive 
     under this paragraph for any fiscal year shall be determined 
     in accordance with the formula described in paragraph (1)(C).
       ``(II) A heavily impacted local educational agency 
     described in this subclause is a local educational agency 
     that has a total student enrollment of not less than 25,000 
     students, of which not less than 50 percent are children 
     described in subsection (a)(1) and not less than 6,000 of 
     such children are children described in subparagraphs (A) and 
     (B) of subsection (a)(1).
       ``(ii) For purposes of calculating the maximum amount 
     described in clause (i), the factor used in determining the 
     weighted student units under subsection (a)(2) with respect 
     to children described in subparagraphs (A) and (B) of 
     subsection (a)(1) shall be 1.35.
       ``(F) Data.--For purposes of providing assistance under 
     this paragraph the Secretary shall use student, revenue, 
     expenditure, and tax data from the third fiscal year 
     preceding the fiscal year for which the local educational 
     agency is applying for assistance under this paragraph.''.
       (b) Payments With Respect to Fiscal Years in Which 
     Insufficient Funds Are Appropriated.--Section 8003(b)(3) of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(b)(3)) (as so redesignated) is amended--
       (1) in subparagraph (A), by striking ``paragraph (1)'' and 
     inserting ``paragraphs (1) and (2)'';
       (2) in subparagraph (B)--
       (A) in the heading, by inserting after ``payments'' the 
     following: ``in lieu of payments under paragraph (1)'';
       (B) in clause (i)--
       (i) in the matter preceding subclause (I), by inserting 
     before ``by multiplying'' the following: ``in lieu of basic 
     support payments under paragraph (1)''; and

[[Page 21463]]

       (ii) in subclause (II), by striking ``(not including 
     amounts received under subsection (f))''; and
       (C) by adding at the end the following:
       ``(iv) In the case of a local educational agency that has a 
     total student enrollment of fewer than 1,000 students and 
     that has a per-pupil expenditure that is less than the 
     average per-pupil expenditure of the State in which the 
     agency is located, the total percentage used to calculate 
     threshold payments under clause (i) shall not be less than 40 
     percent.'';
       (3) by redesignating subparagraph (C) as subparagraph (D);
       (4) by inserting after subparagraph (B) the following:
       ``(C) Learning opportunity threshold payments in lieu of 
     payments under paragraph (2).--For fiscal years described in 
     subparagraph (A), the learning opportunity threshold payment 
     in lieu of basic support payments under paragraph (2) shall 
     be equal to the amount obtained under subparagraph (D) or (E) 
     of paragraph (2), as the case may be.''; and
       (5) in subparagraph (D) (as so redesignated), by striking 
     ``computation made under subparagraph (B)'' and inserting 
     ``computations made under subparagraphs (B) and (C)''.
       (c) Conforming Amendments.--Section 8003 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7703) is 
     amended--
       (1) in the matter preceding subparagraph (A) of subsection 
     (a)(1), by striking ``subsection (b), (d), or (f)'' and 
     inserting ``subsection (b) or (d)'';
       (2) in subsection (b)--
       (A) in paragraph (1)(C), in the matter preceding clause 
     (i), by striking ``this subsection'' and inserting ``this 
     paragraph''; and
       (B) in paragraph (4) (as so redesignated)--
       (i) in subparagraph (A), by striking ``paragraphs (1)(B), 
     (1)(C), and (2) of this subsection'' and inserting 
     ``subparagraphs (B) and (C) of paragraph (1) or subparagraphs 
     (B) through (D) of paragraph (2), as the case may be, 
     paragraph (3) of this subsection''; and
       (ii) in subparagraph (B)--

       (I) by inserting after ``paragraph (1)(C)'' the following: 
     ``or subparagraph (D) or (E) of paragraph (2), as the case 
     may be,''; and
       (II) by striking ``paragraph (2)(B)'' and inserting 
     ``subparagraph (B) or (C) of paragraph (3), as the case may 
     be,'';

       (3) in subsection (c)(1), by striking ``paragraph (2) and 
     subsection (f)'' and inserting ``subsections (b)(1)(D), 
     (b)(2), and paragraph (2)'';
       (4) by striking subsection (f); and
       (5) in subsection (h), by striking ``section 6'' and all 
     that follows through ``1994)'' and inserting ``section 386 of 
     the National Defense Authorization Act for Fiscal Year 
     1993''.

     SEC. 1807. BASIC SUPPORT PAYMENTS FOR LOCAL EDUCATIONAL 
                   AGENCIES AFFECTED BY REMOVAL OF FEDERAL 
                   PROPERTY.

       Section 8003(b) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7703(b)), as amended by this Act, is 
     further amended by adding at the end the following:
       ``(5) Local educational agencies affected by removal of 
     federal property.--
       ``(A) In general.--In computing the amount of a basic 
     support payment under this subsection for a fiscal year for a 
     local educational agency described in subparagraph (B), the 
     Secretary shall meet the additional requirements described in 
     subparagraph (C).
       ``(B) Local educational agency described.--A local 
     educational agency described in this subparagraph is a local 
     educational agency with respect to which Federal property (i) 
     located within the boundaries of the agency, and (ii) on 
     which one or more children reside who are receiving a free 
     public education at a school of the agency, is transferred by 
     the Federal Government to another entity in any fiscal year 
     beginning on or after the date of the enactment of the Impact 
     Aid Reauthorization Act of 2000 so that the property is 
     subject to taxation by the State or a political subdivision 
     of the State.
       ``(C) Additional requirements.--The additional requirements 
     described in this subparagraph are the following:
       ``(i) For each fiscal year beginning after the date on 
     which the Federal property is transferred, a child described 
     in subparagraph (B) who continues to reside on such property 
     and who continues to receive a free public education at a 
     school of the agency shall be deemed to be a child who 
     resides on Federal property for purposes of computing under 
     the applicable subparagraph of subsection (a)(1) the amount 
     that the agency is eligible to receive under this subsection.
       ``(ii)(I) For the third fiscal year beginning after the 
     date on which the Federal property is transferred, and for 
     each fiscal year thereafter, the Secretary shall, after 
     computing the amount that the agency is otherwise eligible to 
     receive under this subsection for the fiscal year involved, 
     deduct from such amount an amount equal to the revenue 
     received by the agency for the immediately preceding fiscal 
     year as a result of the taxable status of the former Federal 
     property.
       ``(II) For purposes of determining the amount of revenue to 
     be deducted in accordance with subclause (I), the local 
     educational agency--

       ``(aa) shall provide for a review and certification of such 
     amount by an appropriate local tax authority; and
       ``(bb) shall submit to the Secretary a report containing 
     the amount certified under item (aa).''.

     SEC. 1808. ADDITIONAL PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES 
                   WITH HIGH CONCENTRATIONS OF CHILDREN WITH 
                   SEVERE DISABILITIES.

       (a) Repeal.--Subsection (g) of section 8003 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(g)) is repealed.
       (b) Conforming Amendments.--(1) Section 8003 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703) is amended by redesignating subsections (h) and (i) as 
     subsections (f) and (g), respectively.
       (2) Section 426 of the General Education Provisions Act (20 
     U.S.C. 1228) is amended by striking ``subsections (d) and (g) 
     of section 8003 of such Act'' and inserting ``section 8003(d) 
     of such Act''.

     SEC. 1809. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 
                   8003.

       Section 8005(d) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7705(d)) is amended--
       (1) in paragraph (2), by inserting after ``not more than 60 
     days after a deadline established under subsection (c)'' the 
     following: ``, or not more than 60 days after the date on 
     which the Secretary sends written notice to the local 
     educational agency pursuant to paragraph (3)(A), as the case 
     may be,''; and
       (2) in paragraph (3) to read as follows:
       ``(3) Late applications.--
       ``(A) Notice.--The Secretary shall, as soon as practicable 
     after the deadline established under subsection (c), provide 
     to each local educational agency that applied for a payment 
     under section 8002 or 8003 for the prior fiscal year, and 
     with respect to which the Secretary has not received an 
     application for a payment under either such section (as the 
     case may be) for the fiscal year in question, written notice 
     of the failure to comply with the deadline and instruction to 
     ensure that the application is filed not later than 60 days 
     after the date on which the Secretary sends the notice.
       ``(B) Acceptance and approval of late applications.--The 
     Secretary shall not accept or approve any application of a 
     local educational agency that is filed more than 60 days 
     after the date on which the Secretary sends written notice to 
     the local educational agency pursuant to subparagraph (A).''.

     SEC. 1810. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN 
                   ATTENDANCE OF MILITARY DEPENDENTS.

       Section 8006 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7706) is repealed.

     SEC. 1811. CONSTRUCTION.

       Section 8007 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7707) is amended to read as follows:

     ``SEC. 8007. CONSTRUCTION.

       ``(a) Construction Payments Authorized.--
       ``(1) In general.--From 40 percent of the amount 
     appropriated for each fiscal year under section 8014(e), the 
     Secretary shall make payments in accordance with this 
     subsection to each local educational agency that receives a 
     basic support payment under section 8003(b) for that fiscal 
     year.
       ``(2) Additional requirements.--A local educational agency 
     that receives a basic support payment under section 
     8003(b)(1) shall also meet at least one of the following 
     requirements:
       ``(A) The number of children determined under section 
     8003(a)(1)(C) for the agency for the preceding school year 
     constituted at least 50 percent of the total student 
     enrollment in the schools of the agency during the preceding 
     school year.
       ``(B) The number of children determined under subparagraphs 
     (B) and (D)(i) of section 8003(a)(1) for the agency for the 
     preceding school year constituted at least 50 percent of the 
     total student enrollment in the schools of the agency during 
     the preceding school year.
       ``(3) Amount of payments.--
       ``(A) Local educational agencies impacted by military 
     dependent children.--The amount of a payment to each local 
     educational agency described in this subsection that is 
     impacted by military dependent children for a fiscal year 
     shall be equal to--
       ``(i)(I) 20 percent of the amount appropriated under 
     section 8014(e) for such fiscal year; divided by
       ``(II) the total number of weighted student units of 
     children described in subparagraphs (B) and (D)(i) of section 
     8003(a)(1) for all local educational agencies described in 
     this subsection (as calculated under section 8003(a)(2)), 
     including the number of weighted student units of such 
     children attending a school facility described in section 
     8008(a) if the Secretary does not provide assistance for the 
     school facility under that section for the prior fiscal year; 
     multiplied by
       ``(ii) the total number of such weighted student units for 
     the agency.
       ``(B) Local educational agencies impacted by children who 
     reside on indian lands.-- The amount of a payment to each 
     local educational agency described in this subsection that is 
     impacted by children who reside on Indian lands for a fiscal 
     year shall be equal to--
       ``(i)(I) 20 percent of the amount appropriated under 
     section 8014(e) for such fiscal year; divided by
       ``(II) the total number of weighted student units of 
     children described in section 8003(a)(1)(C) for all local 
     educational agencies described in this subsection (as 
     calculated under section 8003(a)(2)); multiplied by
       ``(ii) the total number of such weighted student units for 
     the agency.
       ``(4) Use of funds.--Any local educational agency that 
     receives funds under this subsection shall use such funds for 
     construction, as defined in section 8013(3).

[[Page 21464]]

       ``(b) School Facility Modernization Grants Authorized.--
       ``(1) In general.--From 60 percent of the amount 
     appropriated for each fiscal year under section 8014(e), the 
     Secretary shall award grants in accordance with this 
     subsection to eligible local educational agencies to enable 
     the local educational agencies to carry out modernization of 
     school facilities.
       ``(2) Eligibility requirements.--A local educational agency 
     is eligible to receive funds under this subsection only if--
       ``(A) such agency (or in the case of a local educational 
     agency that does not have the authority to tax or issue 
     bonds, such agency's fiscal agent) has no capacity to issue 
     bonds or is at such agency's limit in bonded indebtedness for 
     the purposes of generating funds for capital expenditures, 
     except that a local educational agency that is eligible to 
     receive funds under section 8003(b)(2) shall be deemed to 
     meet the requirements of this subparagraph; and
       ``(B)(i) such agency received assistance under section 
     8002(a) for the fiscal year and has an assessed value of 
     taxable property per student in the school district that is 
     less than the average of the assessed value of taxable 
     property per student in the State in which the local 
     educational agency is located; or
       ``(ii) such agency received assistance under subsection (a) 
     for the fiscal year and has a school facility emergency, as 
     determined by the Secretary, that poses a health or safety 
     hazard to the students and school personnel assigned to the 
     school facility.
       ``(3) Award criteria.--In awarding grants under this 
     subsection the Secretary shall consider one or more of the 
     following factors:
       ``(A) The extent to which the local educational agency 
     lacks the fiscal capacity to undertake the modernization 
     project without Federal assistance.
       ``(B) The extent to which property in the local educational 
     agency is nontaxable due to the presence of the Federal 
     Government.
       ``(C) The extent to which the local educational agency 
     serves high numbers or percentages of children described in 
     subparagraphs (A), (B), (C), and (D) of section 8003(a)(1).
       ``(D) The need for modernization to meet--
       ``(i) the threat that the condition of the school facility 
     poses to the health, safety, and well-being of students;
       ``(ii) overcrowding conditions as evidenced by the use of 
     trailers and portable buildings and the potential for future 
     overcrowding because of increased enrollment; and
       ``(iii) facility needs resulting from actions of the 
     Federal Government.
       ``(E) The age of the school facility to be modernized.
       ``(4) Other award provisions.--
       ``(A) Federal share.--The Federal funds provided under this 
     subsection to a local educational agency described in 
     subparagraph (C) shall not exceed 50 percent of the total 
     cost of the project to be assisted under this subsection. A 
     local educational agency may use in-kind contributions to 
     meet the matching requirement of the preceding sentence.
       ``(B) Maximum grant.--A local educational agency described 
     in subparagraph (C) may not receive a grant under this 
     subsection in an amount that exceeds $3,000,000 during any 5-
     year period.
       ``(C) Local educational agency described.--A local 
     educational agency described in this subparagraph is a local 
     educational agency that has the authority to issue bonds but 
     is at such agency's limit in bonded indebtedness for the 
     purposes of generating funds for capital expenditures.
       ``(5) Applications.--A local educational agency that 
     desires to receive a grant under this subsection shall submit 
     an application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require. Each application shall contain--
       ``(A) documentation certifying such agency's lack of 
     bonding capacity;
       ``(B) a listing of the school facilities to be modernized, 
     including the number and percentage of children determined 
     under section 8003(a)(1) in average daily attendance in each 
     school facility;
       ``(C) a description of the ownership of the property on 
     which the current school facility is located or on which the 
     planned school facility will be located;
       ``(D) a description of any school facility deficiency that 
     poses a health or safety hazard to the occupants of the 
     school facility and a description of how that deficiency will 
     be repaired;
       ``(E) a description of the modernization to be supported 
     with funds provided under this subsection;
       ``(F) a cost estimate of the proposed modernization; and
       ``(G) such other information and assurances as the 
     Secretary may reasonably require.
       ``(6) Emergency grants.--
       ``(A) Applications.--Each local educational agency 
     described in paragraph (2)(B)(ii) that desires a grant under 
     this subsection shall include in the application submitted 
     under paragraph (5) a signed statement from an appropriate 
     local official certifying that a health or safety deficiency 
     exists.
       ``(B) Priority.--If the Secretary receives more than one 
     application from local educational agencies described in 
     paragraph (2)(B)(ii) for grants under this subsection for any 
     fiscal year, the Secretary shall give priority to local 
     educational agencies based on the severity of the emergency, 
     as determined by the Secretary, and when the application was 
     received.
       ``(C) Allocation; reporting requirement.--
       ``(i) Allocation.--In awarding grants under this subsection 
     to local educational agencies described in paragraph 
     (2)(B)(ii), the Secretary shall consider all applications 
     received from local educational agencies that meet the 
     requirement of subsection (a)(2)(A) and local educational 
     agencies that meet the requirement of subsection (a)(2)(B).
       ``(ii) Reporting requirement.--

       ``(I) In general.--Not later than January 1 of each year, 
     the Secretary shall prepare and submit to the appropriate 
     congressional committees a report that contains a 
     justification for each grant awarded under this subsection 
     for the prior fiscal year.
       ``(II) Definition.--In this clause, the term `appropriate 
     congressional committees' means the Committee on 
     Appropriations and the Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Appropriations and the Committee on Health, Education, 
     Labor and Pensions of the Senate.

       ``(D) Consideration for following year.--A local 
     educational agency described in paragraph (2)(B)(ii) that 
     applies for a grant under this subsection for any fiscal year 
     and does not receive the grant shall have the application for 
     the grant considered for the following fiscal year, subject 
     to the priority described in subparagraph (B).
       ``(7) Supplement not supplant.--An eligible local 
     educational agency shall use funds received under this 
     subsection only to supplement the amount of funds that would, 
     in the absence of such Federal funds, be made available from 
     non-Federal sources for the modernization of school 
     facilities used for educational purposes, and not to supplant 
     such funds.''.

     SEC. 1812. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE 
                   AID.

       Section 8009 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7709) is amended--
       (1) in subsection (a)(1), by striking ``or under'' and all 
     that follows through ``of 1994)'';
       (2) by amending subsection (b)(1) to read as follows:
       ``(1) In general.--A State may reduce State aid to a local 
     educational agency that receives a payment under section 8002 
     or 8003(b) (except the amount calculated in excess of 1.0 
     under section 8003(a)(2)(B)) for any fiscal year if the 
     Secretary determines, and certifies under subsection 
     (c)(3)(A), that the State has in effect a program of State 
     aid that equalizes expenditures for free public education 
     among local educational agencies in the State.''; and
       (3) in subsection (d)--
       (A) in paragraph (1)--
       (i) in the matter proceeding subparagraph (A), by striking 
     ``or under'' and all that follows through ``of 1994)''; and
       (ii) in subparagraph (B), by striking ``or under'' and all 
     that follows through ``of 1994)''; and
       (B) in paragraph (2), by striking ``or under'' and all that 
     follows through ``of 1994)''.

     SEC. 1813. FEDERAL ADMINISTRATION.

       Section 8010(c) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7710(c)) is amended--
       (1) by striking paragraph (1);
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively; and
       (3) in paragraph (2) (as redesignated)--
       (A) in subparagraph (D), by striking ``section 5(d)(2) of 
     the Act of September 30, 1950 (Public Law 874, 81st Congress) 
     (as such section was in effect on the day preceding the date 
     of enactment of the Improving America's Schools Act of 1994) 
     or''; and
       (B) in subparagraph (E)--
       (i) by striking ``1994'' and inserting ``1999'';
       (ii) by striking ``(or such section's predecessor 
     authority)''; and
       (iii) by striking ``paragraph (2)'' and inserting 
     ``paragraph (1)''.

     SEC. 1814. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

       (a) Administrative Hearings.--
       (1) In general.--Section 8011(a) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7711) is amended 
     by adding at the end before the period the following: ``if 
     the local educational agency or State, as the case may be, 
     submits to the Secretary a request for the hearing not later 
     than 60 days after the date of the action of the Secretary 
     under this title''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply with respect to an action of the Secretary under 
     title VIII of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7701 et seq.) initiated on or after the date 
     of the enactment of this Act.
       (b) Judicial Review of Secretarial Action.--Section 
     8011(b)(1) of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7711(b)(1)) is amended by striking ``60 
     days'' and inserting ``30 working days (as determined by the 
     local educational agency or State)''.

     SEC. 1815. FORGIVENESS OF OVERPAYMENTS.

       The matter preceding paragraph (1) of section 8012 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7712) is amended by striking ``under the Act'' and all that 
     follows through ``of 1994)'' and inserting ``under this 
     title's predecessor authorities''.

     SEC. 1816. DEFINITIONS.

       Section 8013 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7713) is amended--
       (1) in paragraph (5)--
       (A) in subparagraph (A)(iii)--

       (I) in subclause (I), by striking ``or'' after the 
     semicolon; and
       (II) by adding at the end the following:
       ``(III) used for affordable housing assisted under the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996; or''; and

[[Page 21465]]

       (B) in subparagraph (F)(i), by striking ``the mutual'' and 
     all that follows through ``1937'' and inserting ``or 
     authorized by the Native American Housing Assistance and 
     Self-Determination Act of 1996'';
       (2) in paragraph (8)(B), by striking ``all States'' and 
     inserting ``the 50 States and the District of Columbia'';
       (3) by redesignating paragraphs (11) and (12) as paragraphs 
     (12) and (13), respectively; and
       (4) by inserting after paragraph (10) the following:
       ``(11) Modernization.--The term `modernization' means 
     repair, renovation, alteration, or construction, including--
       ``(A) the concurrent installation of equipment; and
       ``(B) the complete or partial replacement of an existing 
     school facility, but only if such replacement is less 
     expensive and more cost-effective than repair, renovation, or 
     alteration of the school facility.''.

     SEC. 1817. AUTHORIZATION OF APPROPRIATIONS.

       (a) Payments for Federal Acquisition of Real Property.--
     Section 8014(a) of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7714(a)) is amended--
       (1) by striking ``$16,750,000 for fiscal year 1995'' and 
     inserting ``$32,000,000 for fiscal year 2000''; and
       (2) by striking ``four'' and inserting ``three''.
       (b) Basic Payments.--Section 8014(b) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7714(b)) is 
     amended--
       (1) by striking ``subsections (b) and (f) of section 8003'' 
     and inserting ``section 8003(b)'';
       (2) by striking ``$775,000,000 for fiscal year 1995'' and 
     inserting ``$809,400,000 for fiscal year 2000'';
       (3) by striking ``four'' and inserting ``three''; and
       (4) by striking ``, of which 6 percent'' and all that 
     follows and inserting a period.
       (c) Payments for Children With Disabilities.--Section 
     8014(c) of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7714(c)) is amended--
       (1) by striking ``$45,000,000 for fiscal year 1995'' and 
     inserting ``$50,000,000 for fiscal year 2000''; and
       (2) by striking ``four'' and inserting ``three''.
       (d) Payments for Increases in Military Children.--
     Subsection (d) of section 8014 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7714) is repealed.
       (e) Construction.--Section 8014(e) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7714(e)) is 
     amended--
       (1) by striking ``$25,000,000 for fiscal year 1995'' and 
     inserting ``$10,052,000 for fiscal year 2000''; and
       (2) by striking ``four'' and inserting ``three''.
       (f) Facilities Maintenance.--Section 8014(f) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7714(f)) is amended--
       (1) by striking ``$2,000,000 for fiscal year 1995'' and 
     inserting ``$5,000,000 for fiscal year 2000''; and
       (2) by striking ``four'' and inserting ``three''.
       (g) Additional Assistance for Certain Local Educational 
     Agencies Impacted by Federal Property Acquisition.--Section 
     8014(g) of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7714(g)) is amended--
       (1) in the heading, by striking ``Federal Property Local 
     Educational Agencies'' and inserting ``Local Educational 
     Agencies Impacted by Federal Property Acquisition''; and
       (2) by striking ``such sums as are necessary beginning in 
     fiscal year 1998 and for each succeeding fiscal year'' and 
     inserting ``$1,500,000 for fiscal year 2000 and such sums as 
     may be necessary for each of the three succeeding fiscal 
     years''.

     SEC. 1818. EFFECTIVE DATE.

       This title, and the amendments made by this title, shall 
     take effect on October 1, 2000, or the date of the enactment 
     of this Act, whichever occurs later.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

       This division may be cited as the ``Military Construction 
     Authorization Act for Fiscal Year 2001''.
                            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 
              2000 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              1999 projects.
Sec. 2107. Modification of authority to carry out fiscal year 1998 
              project.
Sec. 2108. Authority to accept funds for realignment of certain 
              military construction project, Fort Campbell, Kentucky.

     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
------------------------------------------------------------------------
                                       Installation or
               State                      location            Amount
------------------------------------------------------------------------
Alabama...........................  Redstone Arsenal....     $39,000,000
Alaska............................  Fort Richardson.....      $3,000,000
Arizona...........................  Fort Huachuca.......      $4,600,000
Arkansas..........................  Pine Bluff Arsenal..      $2,750,000
California........................  Fort Irwin..........     $31,000,000
                                    Presidio, Monterey..      $2,600,000
Georgia...........................  Fort Benning........     $15,800,000
                                    Fort Gordon.........      $2,600,000
Hawaii............................  Pohakoula Training       $32,000,000
                                     Facility.
                                    Schofield Barracks..     $43,800,000
Kansas............................  Fort Riley..........     $22,000,000
Kentucky..........................  Fort Knox...........        $550,000
Maryland..........................  Fort Meade..........     $19,000,000
Missouri..........................  Fort Leonard Wood...     $65,400,000
New Jersey........................  Picatinny Arsenal...      $5,600,000
New York..........................  Fort Drum...........     $18,000,000
North Carolina....................  Fort Bragg..........    $222,200,000
                                    Sunny Point Army          $2,300,000
                                     Terminal.
Ohio..............................  Columbus............      $1,832,000
Pennsylvania......................  Carlisle Barracks...     $10,500,000
                                    New Cumberland Army       $3,700,000
                                     Depot.
Texas.............................  Fort Bliss..........     $26,000,000
                                    Fort Hood...........     $36,492,000
                                    Red River Army Depot        $800,000
Virginia..........................  Fort Evans..........      $4,450,000
                                                         ---------------
                                      Total:............    $615,974,000
------------------------------------------------------------------------

       (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,      $11,650,000
                                     Bamberg............
                                    Area Support Group,      $11,300,000
                                     Darmstadt..........
                                    Kaiserslautern......      $3,400,000
                                    Mannheim............      $4,050,000
Korea.............................  Camp Carroll........     $10,000,000
                                    Camp Hovey..........     $30,200,000
                                    Camp Humphreys......     $14,200,000
                                    Camp Page...........     $19,500,000
                                    Yongpyong...........     $11,850,000
Puerto Rico.......................  Fort Buchanan.......      $3,700,000
                                                         ---------------
                                      Total:............    $119,850,000
------------------------------------------------------------------------

       (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.     $11,000,000
------------------------------------------------------------------------

     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:

[[Page 21466]]



                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location            Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright............  75 Units.................     $24,000,000
Arizona.................................  Fort Huachuca..............  110 Units................     $16,224,000
California..............................  Fort Irwin.................  24 Units.................      $4,700,000
Hawaii..................................  Schofield Barracks.........  72 Units.................     $15,500,000
Kentucky................................  Fort Campbell..............  184 Units................     $27,800,000
Maryland................................  Fort Detrick...............  48 Units.................      $5,600,000
Missouri................................  Fort Leonard Wood..........  24 Units.................      $4,150,000
North Carolina..........................  Fort Bragg.................  160 Units................     $22,000,000
South Carolina..........................  Fort Jackson...............  1 Unit...................        $250,000
Texas...................................  Fort Bliss.................  64 Units.................     $10,200,000
Virginia................................  Fort Lee...................  52 Units.................      $8,600,000
Korea...................................  Camp Humphreys.............  60 Units.................     $21,800,000
Puerto Rico.............................  Fort Buchanan..............  31 Units.................      $5,000,000
                                                                                                 ---------------
                                            Total:...................  .........................    $165,824,000
----------------------------------------------------------------------------------------------------------------

       (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 $6,542,000.

     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 $63,590,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2000, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Army in the total amount of $1,925,344,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $419,374,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $119,850,000.
       (3) For a military construction project at an unspecified 
     worldwide location authorized by section 2101(c), 
     $11,000,000.
       (4) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $20,700,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $109,306,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $235,956,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $971,704,000.
       (7) For the construction of phase 1C of a barracks complex, 
     Infantry Drive, Fort Riley, Kansas, authorized by section 
     2101(a) of the Military Construction Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2182), 
     $10,000,000.
       (8) For the construction of a railhead facility, Fort Hood, 
     Texas, authorized by section 2101(a) of the Military 
     Construction Authorization Act for Fiscal Year 1999 (112 
     Stat. 2182), as amended by section 2106 of this Act, 
     $9,800,000.
       (9) For the construction of a chemical defense 
     qualification facility, Pine Bluff Arsenal, Arkansas, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 825), $2,592,000.
       (10) For the construction of phase 1B of a barracks 
     complex, Wilson Street, Schofield Barracks, Hawaii, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (113 Stat. 825), 
     $22,400,000.
       (11) For the construction of phase 2B of a barracks 
     complex, Tagaytay Street, Fort Bragg, North Carolina, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (113 Stat. 825), 
     $3,108,000.
       (12) For the construction of phase 2 of a tactical 
     equipment shop, Fort Sill, Oklahoma, authorized by section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2000 (113 Stat. 825), $10,100,000.
       (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 
     variations 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) and (2) of subsection (a);
       (2) $22,600,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a Basic Training 
     Complex at Fort Leonard Wood, Missouri);
         (3) $10,000,000 (the balance of the amount authorized 
     under section 2101(a) for construction of a Multipurpose 
     Digital Training Range at Fort Hood, Texas);
       (4) $34,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of phase I of a barracks 
     complex, Longstreet Road, Fort Bragg, North Carolina);
       (5) $104,000,000 (the balance of the amount authorized 
     under section 2101(a) for the construction phase I of a 
     barracks complex, Bunter Road, Fort Bragg, North Carolina);
       (6) $6,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of a battle simulation 
     center at Fort Drum, New York); and
       (7) $20,000,000 (the balance of the amount authorized under 
     section 2101(a) for the construction of Saddle Access Road, 
     Pohakuloa Training Facility, Hawaii).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (12) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by--
       (1) $635,000, which represents the combination of savings 
     resulting from adjustments to foreign currency exchange rates 
     for military construction outside the United States; and
       (2) $19,911,000 which represents the combination of 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 2000 PROJECTS.

       (a) Construction Projects Inside the United States.--The 
     table in section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 825) is amended--
       (1) in the item relating to Fort Stewart, Georgia, by 
     striking ``$71,700,000'' in the amount column and inserting 
     ``$25,700,000'';
       (2) by striking the item relating to Fort Riley, Kansas;
       (3) in the item relating to CONUS Various, by striking 
     ``$36,400,000'' in the amount column and inserting 
     ``$138,900,000''; and
       (4) by striking the amount identified as the total in the 
     amount column and inserting ``$1,059,250,000''.
       (b) Unspecified Minor Construction Projects.--Subsection 
     (a)(3) of section 2104 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (113 Stat. 826) is 
     amended by striking ``$9,500,000'' and inserting 
     ``$14,600,000''.
       (c) Conforming Amendments.--Section 2104 of the Military 
     Construction Authorization Act for Fiscal Year 2000 is 
     further amended--
       (1) in the matter preceding subsection (a), by striking 
     ``$2,353,231,000'' and inserting ``$2,358,331,000''; and
       (2) in subsection (b), by striking paragraph (7) and 
     inserting the following new paragraph:
       ``(7) $102,500,000 (the balance of the amount authorized 
     under section 2101(a) for Army construction and land 
     acquisition projects covered under the item relating to CONUS 
     Various, as amended by section 2105 of the Military 
     Construction Authorization Act for Fiscal Year 2001).

     SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1999 PROJECTS.

       (a) Modification.--The table in section 2101 of the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2182) is 
     amended--
       (1) in the item relating to Fort Hood, Texas, by striking 
     ``$32,500,000'' in the amount column and inserting 
     ``$45,300,000'';
       (2) in the item relating to Fort Riley, Kansas, by striking 
     ``$41,000,000'' in the amount column and inserting 
     ``$44,500,000''; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$785,081,000''.
       (b) Conforming Amendments.--Section 2104 of that Act (112 
     Stat. 2184) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$2,098,713,000'' and inserting ``$2,111,513,000''; and
       (B) in paragraph (1), by striking ``$609,781,000'' and 
     inserting ``$622,581,000''; and

[[Page 21467]]

       (2) in subsection (b)(7), by striking ``$24,500,000'' and 
     inserting ``$28,000,000''.

     SEC. 2107. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   1998 PROJECT.

       (a) Modification.--The table in section 2101(a) of the 
     Military Construction Authorization Act for Fiscal Year 1998 
     (division B of Public Law 105-85; 111 Stat. 1967), as amended 
     by section 2105(a) of the Military Construction Authorization 
     Act for Fiscal Year 1999 (division B of Public Law 105-261; 
     112 Stat. 2185), is amended--
       (1) in the item relating to Hunter Army Airfield, Fort 
     Stewart, Georgia, by striking ``$54,000,000'' in the amount 
     column and inserting ``$57,500,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$606,250,000''.
       (b) Conforming Amendment.--Section 2104(b)(5) of the 
     Military Construction Authorization Act for Fiscal Year 1998 
     (111 Stat. 1969) is amended by striking ``$42,500,000'' and 
     inserting ``$46,000,000''.

     SEC. 2108. AUTHORITY TO ACCEPT FUNDS FOR REALIGNMENT OF 
                   CERTAIN MILITARY CONSTRUCTION PROJECT, FORT 
                   CAMPBELL, KENTUCKY.

       (a) Authority To Accept Funds.--(1) The Secretary of the 
     Army may accept funds from the Federal Highway Administration 
     or the Commonwealth of Kentucky for purposes of funding all 
     costs associated with the realignment of the military 
     construction project involving a rail connector located at 
     Fort Campbell, Kentucky, as authorized in section 2101(a) of 
     the Military Construction Authorization Act for Fiscal Year 
     1997 (division B of Public Law 104-201; 110 Stat. 2763).
       (2) Any funds accepted under paragraph (1) shall be 
     credited to the account of the Department of the Army from 
     which the costs of the realignment of the military 
     construction project described in that paragraph are to be 
     paid.
       (b) Use of Funds.--(1) The Secretary may use funds accepted 
     under subsection (a) for any costs associated with the 
     realignment of the military construction project described in 
     that subsection in addition to any amounts authorized and 
     appropriated for the military construction project.
       (2) For purposes of paragraph (1), the costs associated 
     with the realignment of the military construction project 
     described in subsection (a) include redesign costs, 
     additional construction costs, additional costs due to 
     construction delays related to the realignment, and 
     additional real estate costs.
       (3) Funds accepted under subsection (a) shall remain 
     available for use under paragraph (1) until expended.
                            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 fiscal year 1997 
              project at Marine Corps Combat Development Command, 
              Quantico, Virginia.

     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          $8,200,000
                                     Station, Yuma.
                                    Navy Detachment,          $2,940,000
                                     Camp Navajo.
California........................  Marine Corps Air-        $23,870,000
                                     Ground Combat
                                     Center, Twentynine
                                     Palms..............
                                    Marine Corps Air         $13,740,000
                                     Station, Miramar...
                                    Marine Corps Base,        $8,100,000
                                     Camp Pendleton.....
                                    Marine Corps              $6,660,000
                                     Logistics Base,
                                     Barstow............
                                    Naval Air Station,       $12,050,000
                                     Lemoore.
                                    Naval Air Warfare        $11,400,000
                                     Center Weapons
                                     Division, Point
                                     Mugu...............
                                    Naval Aviation            $4,340,000
                                     Depot, North Island
                                    Naval Facility, San       $8,860,000
                                     Clemente Island....
                                    Naval Postgraduate        $5,280,000
                                     School, Monterey...
                                    Naval Ship Weapons       $10,200,000
                                     Systems Engineering
                                     Station, Port
                                     Hueneme............
                                    Naval Station, San       $53,200,000
                                     Diego.
Connecticut.......................  Naval Submarine           $3,100,000
                                     Base, New London...
CONUS Various.....................  CONUS Various.......     $11,500,000
District of Columbia..............  Marine Corps             $24,597,000
                                     Barracks.
                                    Naval District,           $2,450,000
                                     Washington.
                                    Naval Research           $12,390,000
                                     Laboratory,
                                     Washington.........
Florida...........................  Naval Air Station,        $5,130,000
                                     Whiting Field.
                                    Naval Surface             $9,960,000
                                     Warfare Center
                                     Wastal Systems
                                     Station, Panama
                                     City...............
                                    Naval Station,            $6,830,000
                                     Mayport.
                                    Naval Surface             $3,570,000
                                     Warfare Center
                                     Detachment, Ft.
                                     Lauderdale.........
Georgia...........................  Marine Corps              $1,100,000
                                     Logistics Base,
                                     Albany.............
                                    Navy Supply Corps         $2,950,000
                                     School, Athens.....
                                    Trident Refit             $5,200,000
                                     Facility, Kings Bay.
Hawaii............................  Fleet Industrial         $12,000,000
                                     Supply Center,
                                     Pearl Harbor.......
                                    Naval Undersea            $2,100,000
                                     Weapons Station
                                     Detachment,
                                     Lualualei..........
                                    Marine Corps Air         $18,400,000
                                     Station, Kaneohe...
                                    Naval Station, Pearl     $37,600,000
                                     Harbor.
Illinois..........................  Naval Training          $121,400,000
                                     Center, Great Lakes
Maine.............................  Naval Air Station,        $2,450,000
                                     Brunswick.
                                    Naval Shipyard,           $4,960,000
                                     Portsmouth.
Maryland..........................  Naval Explosive           $6,430,000
                                     Ordinance Disposal
                                     Technology Center,
                                     Indian Head........
                                    Naval Air Station,        $8,240,000
                                     Patuxent River.....
Mississippi.......................  Naval Air Station,        $4,700,000
                                     Meridian.
                                    Naval Oceanographic       $6,950,000
                                     Office, Stennis
                                     Space Center.......
Nevada............................  Naval Air Station,        $6,280,000
                                     Fallon.
New Jersey........................  Naval Weapons             $2,420,000
                                     Station, Earle.
North Carolina....................  Marine Corps Air          $8,480,000
                                     Station, Cherry
                                     Point..............
                                    Marine Corps Air          $3,400,000
                                     Station, New River.
                                    Marine Corps Base,       $45,870,000
                                     Camp Lejeune.......
                                    Naval Aviation            $7,540,000
                                     Depot, Cherry Point
Pennsylvania......................  Naval Surface            $10,680,000
                                     Warfare Center
                                     Shipyard Systems
                                     Engineering
                                     Station,
                                     Philadelphia.......
Rhode Island......................  Naval Undersea            $4,150,000
                                     Warfare Center
                                     Division, Newport..
South Carolina....................  Marine Corps Air          $3,140,000
                                     Station, Beaufort..
                                    Marine Corps Recruit      $2,660,000
                                     Depot, Parris
                                     Island.............
Texas.............................  Naval Air Station,        $4,850,000
                                     Corpus Christi.....
                                    Naval Air Station,        $2,670,000
                                     Kingsville.
                                    Naval Station,            $2,420,000
                                     Ingleside.
Virginia..........................  AEGIS Combat Systems      $3,300,000
                                     Center, Wallops
                                     Island.............
                                    Marine Corps Combat       $8,590,000
                                     Development
                                     Command, Quantico..
                                    Naval Air Station,       $31,450,000
                                     Norfolk.

[[Page 21468]]

 
                                    Naval Air Station,        $5,250,000
                                     Oceana.
                                    Naval Amphibious          $2,830,000
                                     Base, Little Creek.
                                    Naval Shipyard,          $16,100,000
                                     Norfolk, Portsmouth
                                    Naval Station,            $4,700,000
                                     Norfolk.
                                    Naval Surface            $30,700,000
                                     Warfare Center,
                                     Dahlgren...........
Washington........................  Naval Shipyard,         $100,740,000
                                     Bremerton, Puget
                                     Sound..............
                                    Naval Station,           $11,930,000
                                     Bremerton..........
                                    Naval Station,            $5,500,000
                                     Everett............
                                    Naval Submarine           $4,600,000
                                     Base, Bangor.......
                                    Strategic Weapons         $1,400,000
                                     Facility Pacific,
                                     Bremerton..........
                                                         ---------------
                                      Total:............    $811,497,000
------------------------------------------------------------------------

       (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
------------------------------------------------------------------------
Bahrain...........................  Administrative           $19,400,000
                                     Support Unit.
Italy.............................  Naval Air Station,       $32,969,000
                                     Sigonella.
                                    Naval Support            $15,000,000
                                     Activity, Naples.
Various Locations.................  Host Nation                 $142,000
                                     Infrastructure
                                     Support............
                                                         ---------------
                                      Total:............     $67,511,000
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

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

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                     Installation or location            Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Marine Corps Air-Ground      79 Units.................     $13,923,000
                                           Combat Center, Twentynine
                                           Palms.....................
                                          Naval Air Station, Lemoore.  260 Units................     $47,871,000
Hawaii..................................  Commander Naval Base, Pearl  112 Units................     $23,654,000
                                           Harbor....................
                                          Commander Naval Base, Pearl  62 Units.................     $14,237,000
                                           Harbor....................
                                          Commander Naval Base, Pearl  98 Units.................     $22,230,000
                                           Harbor....................
                                          Marine Corps Air Station,    84 Units.................     $21,910,000
                                           Kaneohe Bay...............
Louisiana...............................  Naval Air Station, New       34 Units.................      $5,000,000
                                           Orleans...................
Maine...................................  Naval Air Station,           168 Units................     $18,722,000
                                           Brunswick.................
Mississippi.............................  Naval Construction           157 Units................     $20,700,000
                                           Battalion Center, Gulfport
Washington..............................  Naval Air Station, Whidbey   98 Units.................     $16,873,000
                                           Island....................
                                                                                                 ---------------
                                                                         Total:.................    $205,120,000
----------------------------------------------------------------------------------------------------------------

       (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 $19,958,000.

     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 $193,077,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2000, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $2,227,995,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $750,257,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $67,511,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $11,659,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $73,335,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $418,155,000.
       (B) For support of military housing (including functions 
     described in section 2833 of title 10, United States Code), 
     $882,638,000.
       (6) For construction of a berthing wharf at Naval Air 
     Station, North Island, California, authorized by section 
     2201(a) of the Military Construction Authorization Act for 
     Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 
     828), $12,800,000.
       (7) For construction of the Commander-in-Chief 
     Headquarters, Pacific Command, Camp H.M. Smith, Hawaii, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000, $35,600,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a);
       (2) $17,500,000 (the balance of the amount authorized under 
     section 2201(a) for repair of a pier at Naval Station, San 
     Diego, California);
       (3) $24,460,000 (the balance of the amount authorized under 
     section 2201(a) for replacement of a pier at Naval Shipyard, 
     Bremerton, Puget Sound, Washington); and
       (4) $10,280,000 (the balance of the amount authorized under 
     section 2201(a) for construction of an industrial skills 
     center at Naval Shipyard, Bremerton, Puget Sound, 
     Washington).
       (c) Adjustments.--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--
       (1) $2,889,000, which represents the combination of savings 
     resulting from adjustments to foreign currency exchange rates 
     for military construction outside the United States;
       (2) $20,000,000, which represents the combination of 
     project savings in military construction resulting from 
     favorable bids, reduced overhead charges, and cancellations 
     due to force structure changes; and
       (3) $1,071,000, which represents the combination of savings 
     resulting from adjustments to foreign currency exchange rates 
     for military family housing support outside the United 
     States.

     SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 
                   1997 PROJECT AT MARINE CORPS COMBAT DEVELOPMENT 
                   COMMAND, QUANTICO, VIRGINIA.

       The Secretary of the Navy may carry out a military 
     construction project involving infrastructure development at 
     the Marine Corps Combat Development Command, Quantico, 
     Virginia, in the amount of $8,900,000, using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2204(a)(1) of the Military Construction 
     Authorization Act for Fiscal Year 1997 (division B of Public 
     Law 104-201; 110 Stat. 2769) for a military construction 
     project involving a sanitary landfill at that installation, 
     as authorized by section 2201(a) of that Act (110 Stat. 2767) 
     and extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 842) and section 2703 of this Act.
                         TITLE XXIII--AIR FORCE
Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.

[[Page 21469]]

Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, 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         $3,825,000
                                     Base.
Alaska............................  Cape Romanzof.......      $3,900,000
                                    Eielson Air Force        $40,990,000
                                     Base.
                                    Elmendorf Air Force      $35,186,000
                                     Base.
Arizona...........................  Davis-Monthan Air         $7,900,000
                                     Force Base.........
Arkansas..........................  Little Rock Air          $18,319,000
                                     Force Base.........
California........................  Beale Air Force Base     $10,099,000
                                    Los Angeles Air           $6,580,000
                                     Force Base.
                                    Vandenberg Air Force      $4,650,000
                                     Base.
Colorado..........................  Buckley Air National      $2,750,000
                                     Guard Base.........
                                    Peterson Air Force       $22,396,000
                                     Base.
                                    Schriever Air Force       $8,450,000
                                     Base.
                                    United States Air        $18,960,000
                                     Force Academy......
CONUS Classified..................  Classified Location.      $1,810,000
District of Columbia..............  Bolling Air Force         $4,520,000
                                     Base.
Florida...........................  Eglin Air Force Base      $8,940,000
                                    Eglin Auxiliary           $7,960,000
                                     Field 9.
                                    Patrick Air Force        $12,970,000
                                     Base.
                                    Tyndall Air Force        $31,495,000
                                     Base.
Georgia...........................  Fort Stewart/Hunter       $4,920,000
                                     Army Air Field.....
                                    Moody Air Force Base     $11,318,000
                                    Robins Air Force         $15,857,000
                                     Base.
Hawaii............................  Hickam Air Force          $4,620,000
                                     Base.
Idaho.............................  Mountain Home Air        $10,125,000
                                     Force Base.........
Illinois..........................  Scott Air Force Base      $3,830,000
Kansas............................  McConnell Air Force      $11,864,000
                                     Base.
Louisiana.........................  Barksdale Air Force      $20,464,000
                                     Base.
Massachusetts.....................  Hanscom Air Force        $12,000,000
                                     Base.
Mississippi.......................  Columbus Air Force        $4,828,000
                                     Base.
                                    Keesler Air Force        $15,040,000
                                     Base.
Missouri..........................  Whiteman Air Force       $12,050,000
                                     Base.
Montana...........................  Malmstrom Air Force      $11,179,000
                                     Base.
New Jersey........................  McGuire Air Force        $29,772,000
                                     Base.
New Mexico........................  Cannon Air Force          $4,934,000
                                     Base.
                                    Holloman Air Force       $18,380,000
                                     Base.
                                    Kirtland Air Force        $7,350,000
                                     Base.
North Carolina....................  Pope Air Force Base.     $24,570,000
                                    Seymour Johnson Air       $7,141,000
                                     Force Base.........
Ohio..............................  Wright-Patterson Air     $37,508,000
                                     Force Base.........
Oklahoma..........................  Altus Air Force Base      $2,939,000
                                    Tinker Air Force         $26,895,000
                                     Base.
                                    Vance Air Force Base     $10,504,000
South Carolina....................  Charleston Air Force     $22,238,000
                                     Base.
                                    Shaw Air Force Base.      $8,102,000
South Dakota......................  Ellsworth Air Force      $10,290,000
                                     Base.
Texas.............................  Dyess Air Force Base     $24,988,000
                                    Lackland Air Force       $10,330,000
                                     Base.
                                    Laughlin Air Force       $11,973,000
                                     Base.
                                    Sheppard Air Force        $6,450,000
                                     Base.
Utah..............................  Hill Air Force Base.     $28,050,000
Virginia..........................  Langley Air Force        $19,650,000
                                     Base.
Washington........................  Fairchild Air Force       $7,926,000
                                     Base.
                                    McChord Air Force        $10,250,000
                                     Base.
Wyoming...........................  F.E. Warren Air          $25,720,000
                                     Force Base.
                                                         ---------------
                                      Total:............    $745,755,000
------------------------------------------------------------------------

       (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
------------------------------------------------------------------------
Diego Garcia......................  Diego Garcia........      $5,475,000
Italy.............................  Aviano Air Base.....      $8,000,000
Korea.............................  Kunsan Air Base.....      $6,400,000
                                    Osan Air Base.......     $21,948,000
Spain.............................  Naval Station, Rota.      $5,052,000
Turkey............................  Incirlik Air Base...      $1,000,000
                                                         ---------------
                                      Total:............     $47,875,000
------------------------------------------------------------------------

     SEC. 2302. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2304(a)(5)(A), the Secretary of the Air Force may 
     construct or acquire family housing units (including land 
     acquisition) at the installations, for the purposes, and in 
     the amounts set forth in the following table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                     Installation or location            Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Edwards Air Force Base.....  57 Units.................      $9,870,000
                                          Travis Air Force Base......  64 Units.................      $9,870,000
District of Columbia....................  Bolling Air Force Base.....  136 Units................     $17,137,000
Idaho...................................  Mountain Home Air Force      119 Units................     $10,598,000
                                           Base......................
Nevada..................................  Nellis Air Force Base......  26 Units.................      $5,000,000
North Dakota............................  Cavalier Air Force Station.  2 Units..................        $443,000
                                          Minot Air Force Base.......  134 Units................     $19,097,000
                                                                                                 ---------------
                                                                         Total:.................     $72,015,000
----------------------------------------------------------------------------------------------------------------

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(5)(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 $12,760,000.

     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)(5)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $174,046,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2000, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Air Force in the total amount of $1,943,069,000, as follows:

[[Page 21470]]

       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $736,355,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $47,875,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $11,350,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $74,628,000.
       (5) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $258,821,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $826,271,000.
       (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--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a); and
       (2) $9,400,000 (the balance of the amount authorized under 
     section 2301(a) for the construction of an air freight 
     terminal and base supply complex at McGuire Air Force Base, 
     New Jersey).
       (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 $12,231,000, 
     which represents the combination of savings resulting from 
     adjustments to foreign currency exchange rates for military 
     family housing construction and military family housing 
     support outside the United States.
                      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. Modification of authority to carry out certain fiscal year 
              1990 project.

     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
------------------------------------------------------------------------
Chemical Demilitarization.........  Aberdeen Proving          $3,100,000
                                     Ground.............
Defense Education Activity........  Camp Lejeune, North       $5,914,000
                                     Carolina...........
                                    Laurel Bay, South           $804,000
                                     Carolina...........
Defense Logistics Agency..........  Defense Distribution     $17,700,000
                                     Depot Susquehanna,
                                     New Cumberland,
                                     Pennsylvania.......
                                    Defense Fuel Support      $5,700,000
                                     Point, Cherry
                                     Point, North
                                     Carolina...........
                                    Defense Fuel Support     $16,956,000
                                     Point, MacDill Air
                                     Force Base, Florida
                                    Defense Fuel Support     $11,000,000
                                     Point, McConnell
                                     Air Force Base,
                                     Kansas.............
                                    Defense Fuel Support      $5,000,000
                                     Point, Naval Air
                                     Station, Fallon,
                                     Nevada.............
                                    Defense Fuel Support      $5,900,000
                                     Point, North
                                     Island, California.
                                    Defense Fuel Support      $2,000,000
                                     Point, Oceana Naval
                                     Air Station,
                                     Virginia...........
                                    Defense Fuel Support      $8,300,000
                                     Point, Patuxent
                                     River, Maryland....
                                    Defense Fuel Support      $2,200,000
                                     Point, Twentynine
                                     Palms, California..
                                    Defense Supply            $4,500,000
                                     Center, Richmond,
                                     Virginia...........
National Security Agency..........  Fort Meade, Maryland      $4,228,000
Special Operations Command........  Eglin Auxiliary          $23,204,000
                                     Field 9, Florida...
                                    Fleet Combat              $5,500,000
                                     Training Center,
                                     Dam Neck, Virginia.
                                    Fort Bragg, North         $8,600,000
                                     Carolina...........
                                    Fort Campbell,           $16,300,000
                                     Kentucky...........
                                    Naval Air Station,        $1,350,000
                                     North Island,
                                     California.........
                                    Naval Air Station,        $3,400,000
                                     Oceana, Virginia...
                                    Naval Amphibious          $4,300,000
                                     Base, Coronado,
                                     California.........
                                    Naval Amphibious          $5,400,000
                                     Base, Little Creek,
                                     Virginia...........
                                    Pearl Harbor, Hawaii      $9,900,000
TRICARE Management Activity.......  Edwards Air Force        $17,900,000
                                     Base, California...
                                    Marine Corps Base,       $14,150,000
                                     Camp Pendleton,
                                     California.........
                                    Eglin Air Force          $37,600,000
                                     Base, Florida......
                                    Fort Drum, New York.      $1,400,000
                                    Patrick Air Force         $2,700,000
                                     Base, Florida......
                                    Tyndall Air Force         $7,700,000
                                     Base, Florida......
                                    William Beaumont          $4,200,000
                                     Medical Center,
                                     Texas..............
                                                         ---------------
                                      Total:............    $256,906,000
------------------------------------------------------------------------

       (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........  Hanau, Germany......      $2,030,000
                                    Hohenfels, Germany..     $13,774,000
                                    Osan, Korea.........        $892,000
                                    Royal Air Force,          $1,800,000
                                     Feltwell, United
                                     Kingdom............
                                    Royal Air Force,          $5,650,000
                                     Lakenheath, United
                                     Kingdom............
                                    Schweinfurt, Germany      $1,750,000
                                    Seoul, Korea........      $2,451,000
                                    Sigonella, Italy....      $3,450,000
                                    Taegu, Korea........        $806,000
                                    Wuerzburg, Germany..      $2,635,000
Defense Finance and Accounting      Kleber Kaserne,           $7,500,000
 Service..........................   Germany............
Defense Logistics Agency..........  Defense Fuel Support     $36,000,000
                                     Point, Andersen Air
                                     Force Base, Guam...
                                    Defense Fuel Support     $22,400,000
                                     Point, Marine Corps
                                     Air Station,
                                     Iwakuni, Japan.....

[[Page 21471]]

 
                                    Defense Fuel Support     $26,400,000
                                     Point, Misawa Air
                                     Base, Japan........
                                    Defense Fuel Support     $10,000,000
                                     Point, Royal Air
                                     Force, Mildenhall,
                                     United Kingdom.....
                                    Defense Fuel Support     $16,300,000
                                     Point, Sigonella,
                                     Italy..............
Defense Threat Reduction Agency...  Darmstadt, Germany..      $2,450,000
Special Operations Command........  Roosevelt Roads,          $1,241,000
                                     Puerto Rico........
                                    Taegu, Korea........      $1,450,000
TRICARE Management Agency.........  Kitzingen, Germany..      $1,400,000
                                    Wiesbaden Air Base,       $7,187,000
                                     Germany............
                                                         ---------------
                                      Total:............    $167,566,000
------------------------------------------------------------------------

       (c) Unspecified Worldwide.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2403(a)(3), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations and locations, and in the amounts, set forth in 
     the following table:

                 Defense Agencies: Unspecified Worldwide
------------------------------------------------------------------------
             Location                   Installation          Amount
------------------------------------------------------------------------
Unspecified Worldwide.............  Unspecified             $451,135,000
                                     Worldwide..........
------------------------------------------------------------------------

     SEC. 2402. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2403(a)(7), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code, in the amount 
     of $15,000,000.

     SEC. 2403. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Subject to subsection (c), funds are 
     hereby authorized to be appropriated for fiscal years 
     beginning after September 30, 2000, 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 $1,883,902,000 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $256,906,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $167,566,000.
       (3) For military construction projects at unspecified 
     worldwide locations authorized by section 2401(c), 
     $85,095,000.
       (4) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $17,390,000.
       (5) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $6,000,000.
       (6) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $77,505,000.
       (7) For energy conservation projects authorized by section 
     2402 of this Act, $15,000,000.
       (8) 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), $1,024,369,000.
       (9) For military family housing functions, for support of 
     military housing (including functions described in section 
     2833 of title 10, United States Code), $44,886,000 of which 
     not more than $38,478,000 may be obligated or expended for 
     the leasing of military family housing units worldwide.
       (10) For the construction of an ammunition demilitarization 
     facility, Pine Bluff Arsenal, Arkansas, authorized by section 
     2401(a) of the Military Construction Authorization Act for 
     Fiscal Year 1995 (division B of Public Law 103-337; 108 Stat. 
     3040), as amended by section 2407 of the Military 
     Construction Authorization Act for Fiscal Year 1996 (division 
     B of Public Law 104-106; 110 Stat. 539), section 2408 of the 
     Military Construction Authorization Act for Fiscal Year 1998 
     (division B of Public Law 105-85; 111 Stat. 1982), and 
     section 2406 of the Military Construction Authorization Act 
     for Fiscal Year 1999 (division B of Public Law 105-261; 112 
     Stat. 2197), $43,600,000.
       (11) For the construction of phase 6 of an ammunition 
     demilitarization facility, Umatilla Army Depot, Oregon, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1995, as amended by section 
     2407 of the Military Construction Authorization Act for 
     Fiscal Year 1996, section 2408 of the Military Construction 
     Authorization Act for Fiscal Year 1998, and section 2406 of 
     the Military Construction Authorization Act for Fiscal Year 
     1999, $9,400,000.
       (12) For the construction of phase 2 of an ammunition 
     demilitarization facility, Pueblo Army Depot, Colorado, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1997 (division B of Public 
     Law 104-201; 110 Stat. 2775), as amended by section 2406 of 
     the Military Construction Authorization Act for Fiscal Year 
     2000 (division B of Public Law 106-65; 113 Stat. 839), 
     $10,700,000.
       (13) For the construction of phase 3 of an ammunition 
     demilitarization facility, Newport Army Depot, Indiana, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1999 (112 Stat. 2193), 
     $54,400,000.
       (14) For the construction of phase 3 of an ammunition 
     demilitarization facility, Aberdeen Proving Ground, Maryland, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1999, $45,700,000.
       (15) For construction of a replacement hospital at Fort 
     Wainwright, Alaska, authorized by section 2401(a) of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (113 Stat. 836), $44,000,000.
       (16) For the construction of the Ammunition 
     Demilitarization Support Phase 2, Blue Grass Army Depot, 
     Kentucky, authorized by section 2401(a) of the Military 
     Construction Act for Fiscal Year 2000, $8,500,000.
       (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 
     variations authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed--
       (1) the total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a); and
       (2) $366,040,000 (the balance of the amount authorized 
     under section 2401(c) for construction of National Missile 
     Defense Initial Deployment Facilities, Unspecified Worldwide 
     locations).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (16) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated by such paragraphs, reduced by--
       (1) $7,115,000, which represents the combination of savings 
     resulting from adjustments to foreign currency exchange rates 
     for military construction outside the United States; and
       (2) $20,000,000, which represents the combination of 
     project savings in military construction for chemical 
     demilitarization resulting from favorable bids, reduced 
     overhead charges, and cancellations due to force structure 
     changes.

     SEC. 2404. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 1990 PROJECT.

       (a) Modification.--Section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Years 1990 and 1991 
     (division B of Public Law 101-189), as amended by section 
     2407 of the Military Construction Authorization Act for 
     Fiscal Year 1999 (division B of Public Law 105-261; 112 Stat. 
     2197), is amended in the item relating to Portsmouth Naval 
     Hospital, Virginia, by striking ``$351,354,000'' and 
     inserting ``$359,854,000''.
       (b) Conforming Amendment.--Section 2405(b)(2) of the 
     Military Construction Authorization Act for Fiscal Years 1990 
     and 1991, as amended by section 2407 of the Military 
     Construction Authorization Act for Fiscal Year 1999, is 
     amended by striking ``$342,854,000'' and inserting 
     ``$351,354,000''.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

     SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION 
                   PROJECTS.

       The Secretary of Defense may make contributions for the 
     North Atlantic Treaty Organization Security Investment 
     program as provided in section 2806 of title 10, United 
     States Code, in an amount not to exceed the sum of the amount 
     authorized to be appropriated for this purpose in section 
     2502 and the amount collected from the North Atlantic Treaty 
     Organization as a result of construction previously financed 
     by the United States.

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2000, 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 $172,000,000.
                TITLE XXVI--GUARD AND RESERVE FACILITIES
Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.
Sec. 2602. Authority to contribute to construction of airport tower, 
              Cheyenne Airport, Cheyenne, Wyoming.

[[Page 21472]]



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

       There are authorized to be appropriated for fiscal years 
     beginning after September 30, 2000, 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, 
     $266,531,000; and
       (B) for the Army Reserve, $108,738,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $62,073,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $194,929,000; and
       (B) for the Air Force Reserve, $36,591,000.

     SEC. 2602. AUTHORITY TO CONTRIBUTE TO CONSTRUCTION OF AIRPORT 
                   TOWER, CHEYENNE AIRPORT, CHEYENNE, WYOMING.

       The Secretary of the Air Force may use up to $1,450,000 of 
     the amounts appropriated pursuant to the authorization of 
     appropriations in section 2601(3)(A) to make a contribution 
     to the Cheyenne Airport Authority, consistent with applicable 
     agreements, to the costs of construction of a new airport 
     tower at Cheyenne Airport, Cheyenne, Wyoming.
        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 1998 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1997 
              projects.
Sec. 2704. Effective date.

     SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED 
                   TO BE SPECIFIED BY LAW.

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Security Investment program (and authorizations 
     of appropriations therefor) shall expire on the later of--
       (1) October 1, 2003; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2004.
       (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, 2003; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 2004 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 
                   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, shall 
     remain in effect until October 1, 2001, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2002, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

                                 Army: Extension of 1998 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                    Installation or location             Project                Amount
----------------------------------------------------------------------------------------------------------------
Maryland...............................  Fort Meade................  Family Housing Construction      $7,900,000
                                                                      (56 units)................
Texas..................................  Fort Hood.................  Family Housing Construction     $18,800,000
                                                                      (130 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)...............
California.............................  Marine Corps Air-Ground     Replacement Family Housing      $23,891,000
                                          Combat Center, Twentynine   Construction (132 units)..
                                          Palms....................
Louisiana..............................  Naval Complex, New Orleans  Replacement Family Housing      $11,930,000
                                                                      Construction (100 units)..
Texas..................................  Naval Air Station, Corpus   Family Housing Construction     $22,250,000
                                          Christi..................   (212 units)...............
Washington.............................  Naval Air Station, Whidbey  Replacement Family Housing      $16,000,000
                                          Island...................   Construction (102 units)..
----------------------------------------------------------------------------------------------------------------

  

[[Page 21473]]




                               Air Force: Extension of 1998 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                    Installation or location             Project                Amount
----------------------------------------------------------------------------------------------------------------
Georgia................................  Robins Air Force Base.....  Replace Family Housing (60       $6,800,000
                                                                      units)....................
Idaho..................................  Mountain Home Air Force     Replace Family Housing (60      $11,032,000
                                          Base.....................   units)....................
New Mexico.............................  Kirtland Air Force Base...  Replace Family Housing (180     $20,900,000
                                                                      units)....................
Texas..................................  Dyess Air Force Base......  Construct Family Housing        $10,503,000
                                                                      (70 units)................
----------------------------------------------------------------------------------------------------------------

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1997 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1997 
     (division B of Public Law 104-201; 110 Stat. 2782), 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2201, 2202, or 2601 of that Act and 
     extended by section 2702 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 842), shall remain in effect until 
     October 1, 2001, or the date of the enactment of an Act 
     authorizing funds for military construction for fiscal year 
     2002, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                                 Navy: Extension of 1997 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                    Installation or location             Project                Amount
----------------------------------------------------------------------------------------------------------------
Florida................................  Navy Station, Mayport.....  Family Housing Construction     $10,000,000
                                                                      (100 units)...............
North Carolina.........................  Marine Corps Base, Camp     Family Housing Construction     $10,110,000
                                          Lejuene..................   (94 units)................
South Carolina.........................  Marine Corps Air Station,   Family Housing Construction     $14,000,000
                                          Beaufort.................   (140 units)...............
Texas..................................  Naval Complex, Corpus       Family Housing Replacement      $11,675,000
                                          Christi..................   (104 units)...............
                                         Naval Air Station,          Family Housing Replacement       $7,550,000
                                          Kingsville...............   (48 units)................
Virginia...............................  Marine Corps Combat         Sanitary landfill..........      $8,900,000
                                          Development Command,
                                          Quantico.................
Washington.............................  Naval Station, Everett....  Family Housing Construction     $15,015,000
                                                                      (100 units)...............
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 1997 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                     Installation or location            Project               Amount
----------------------------------------------------------------------------------------------------------------
Mississippi.............................  Camp Shelby................  Multipurpose Range             $5,000,000
                                                                        Complex (Phase II)......
----------------------------------------------------------------------------------------------------------------

     SEC. 2704. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
     effect on the later of--
       (1) October 1, 2000; 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. Joint use military construction projects.
Sec. 2802. Exclusion of certain costs from determination of 
              applicability of limitation on use of funds for 
              improvement of family housing.
Sec. 2803. Revision of space limitations for military family housing.
Sec. 2804. Modification of lease authority for high-cost military 
              family housing.
Sec. 2805. Provision of utilities and services under alternative 
              authority for acquisition and improvement of military 
              housing.
Sec. 2806. Extension of alternative authority for acquisition and 
              improvement of military housing.
Sec. 2807. Expansion of definition of armory to include readiness 
              centers.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in threshold for notice and wait requirements for 
              real property transactions.
Sec. 2812. Enhancement of authority of military departments to lease 
              non-excess property.
Sec. 2813. Conveyance authority regarding utility systems of military 
              departments.
Sec. 2814. Permanent conveyance authority to improve property 
              management.

[[Page 21474]]

            Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Scope of agreements to transfer property to redevelopment 
              authorities without consideration under the base closure 
              laws.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Transfer of jurisdiction, Rock Island Arsenal, Illinois.
Sec. 2832. Land conveyance, Army Reserve Center, Galesburg, Illinois.
Sec. 2833. Land conveyance, Charles Melvin Price Support Center, 
              Illinois.
Sec. 2834. Land conveyance, Fort Riley, Kansas.
Sec. 2835. Land conveyance, Fort Polk, Louisiana.
Sec. 2836. Land conveyance, Army Reserve Center, Winona, Minnesota.
Sec. 2837. Land conveyance, Fort Dix, New Jersey.
Sec. 2838. Land conveyance, Nike Site 43, Elrama, Pennsylvania.
Sec. 2839. Land exchange, Army Reserve Local Training Center, 
              Chattanooga, Tennessee.
Sec. 2840. Land exchange, Fort Hood, Texas.
Sec. 2841. Land conveyance, Fort Pickett, Virginia.
Sec. 2842. Land conveyance, Fort Lawton, Washington.
Sec. 2843. Land conveyance, Vancouver Barracks, Washington.

                       Part II--Navy Conveyances

Sec. 2846. Modification of land conveyance, Marine Corps Air Station, 
              El Toro, California.
Sec. 2847. Modification of authority for Oxnard Harbor District, Port 
              Hueneme, California, to use certain Navy property.
Sec. 2848. Transfer of jurisdiction, Marine Corps Air Station, Miramar, 
              California.
Sec. 2849. Land exchange, Marine Corps Recruit Depot, San Diego, 
              California.
Sec. 2850. Lease of property, Naval Air Station, Pensacola, Florida.
Sec. 2851. Land conveyance, Naval Reserve Center, Tampa, Florida.
Sec. 2852. Modification of land conveyance, Defense Fuel Supply Point, 
              Casco Bay, Maine.
Sec. 2853. Land conveyance, Naval Computer and Telecommunications 
              Station, Cutler, Maine.
Sec. 2854. Modification of land conveyance authority, former Naval 
              Training Center, Bainbridge, Cecil County, Maryland.
Sec. 2855. Land conveyance, Marine Corps Base, Camp Lejeune, North 
              Carolina.
Sec. 2856. Land exchange, Naval Air Reserve Center, Columbus, Ohio.
Sec. 2857. Land conveyance, Naval Station, Bremerton, Washington.

                    Part III--Air Force Conveyances

Sec. 2861. Land conveyance, Los Angeles Air Force Base, California.
Sec. 2862. Land conveyance, Point Arena Air Force Station, California.
Sec. 2863. Land conveyance, Lowry Air Force Base, Colorado.
Sec. 2864. Land conveyance, Wright Patterson Air Force Base, Ohio.
Sec. 2865. Modification of land conveyance, Ellsworth Air Force Base, 
              South Dakota.
Sec. 2866. Land conveyance, Mukilteo Tank Farm, Everett, Washington.

                       Part IV--Other Conveyances

Sec. 2871. Land conveyance, Army and Air Force Exchange Service 
              property, Farmers Branch, Texas.
Sec. 2872. Land conveyance, former National Ground Intelligence Center, 
              Charlottesville, Virginia.

                       Subtitle E--Other Matters

Sec. 2881. Relation of easement authority to leased parkland, Marine 
              Corps Base, Camp Pendleton, California.
Sec. 2882. Extension of demonstration project for purchase of fire, 
              security, police, public works, and utility services from 
              local government agencies.
Sec. 2883. Acceptance and use of gifts for construction of third 
              building at United States Air Force Museum, Wright-
              Patterson Air Force Base, Ohio.
Sec. 2884. Development of Marine Corps Heritage Center at Marine Corps 
              Base, Quantico, Virginia.
Sec. 2885. Activities relating to greenbelt at Fallon Naval Air 
              Station, Nevada.
Sec. 2886. Establishment of World War II memorial on Guam.
Sec. 2887. Naming of Army missile testing range at Kwajalein Atoll as 
              the Ronald Reagan Ballistic Missile Defense Test Site at 
              Kwajalein Atoll.
Sec. 2888. Designation of building at Fort Belvoir, Virginia, in honor 
              of Andrew T. McNamara.
Sec. 2889. Designation of Balboa Naval Hospital, San Diego, California, 
              in honor of Bob Wilson, a former member of the House of 
              Representatives.
Sec. 2890. Sense of Congress regarding importance of expansion of 
              National Training Center, Fort Irwin, California.
Sec. 2891. Sense of Congress regarding land transfers at Melrose Range, 
              New Mexico, and Yakima Training Center, Washington.
 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     SEC. 2801. JOINT USE MILITARY CONSTRUCTION PROJECTS.

       (a) Sense of Congress on Joint Use Projects.--It is the 
     sense of Congress that when the Secretary of Defense assists 
     the President in preparing the budget for the Department of 
     Defense for a fiscal year for submission to Congress under 
     section 1105 of title 31, United States Code, the Secretary 
     of Defense should--
       (1) seek to identify military construction projects that 
     are suitable as joint use military construction projects;
       (2) specify in the budget for the fiscal year the military 
     construction projects that are identified under paragraph 
     (1); and
       (3) give priority in the budget for the fiscal year to the 
     military construction projects specified under paragraph (2).
       (b) Annual Evaluation of Joint Use Projects.--(1) 
     Subchapter I of chapter 169 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 2815. Joint use military construction projects: annual 
       evaluation

       ``(a) Joint Use Military Construction Project Defined.--In 
     this section, the term `joint use military construction 
     project' means a military construction project for a facility 
     intended to be used by--
       ``(1) both the active and a reserve component of a single 
     armed force; or
       ``(2) two or more components (whether active or reserve 
     components) of the armed forces.
       ``(b) Annual Evaluation.--In the case of the budget 
     submitted under section 1105 of title 31 for fiscal year 2003 
     and each fiscal year thereafter, the Secretary of Defense 
     shall include in the budget justification materials submitted 
     to Congress in support of the budget a certification by each 
     Secretary concerned that, in evaluating military construction 
     projects for inclusion in the budget for that fiscal year, 
     the Secretary concerned evaluated the feasibility of carrying 
     out the projects as joint use military construction 
     projects.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by adding at the end the following new 
     item:

``2815. Joint use military construction projects: annual evaluation.''.

     SEC. 2802. EXCLUSION OF CERTAIN COSTS FROM DETERMINATION OF 
                   APPLICABILITY OF LIMITATION ON USE OF FUNDS FOR 
                   IMPROVEMENT OF FAMILY HOUSING.

       Section 2825(b) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) In determining the applicability of the limitation 
     contained in paragraph (1), the Secretary concerned shall not 
     include as part of the cost of the improvement of the unit or 
     units concerned the following:
       ``(A) The cost of the installation of communications, 
     security, or antiterrorism equipment required by an occupant 
     of the unit or units to perform duties assigned to the 
     occupant as a member of the armed forces.
       ``(B) The cost of the maintenance or repair of equipment 
     described in subparagraph (A) installed for the purpose 
     specified in such subparagraph.''.

     SEC. 2803. REVISION OF SPACE LIMITATIONS FOR MILITARY FAMILY 
                   HOUSING.

       (a) In General.--(1) Section 2826 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 2826. Military family housing: local comparability of 
       room patterns and floor areas

       ``(a) Local Comparability.--In the construction, 
     acquisition, and improvement of military family housing, the 
     Secretary concerned shall ensure that the room patterns and 
     floor areas of military family housing in a particular 
     locality (as designated by the Secretary concerned for 
     purposes of this section) are similar to room patterns and 
     floor areas of similar housing in the private sector in that 
     locality.
       ``(b) Requests for Authority for Military Family Housing.--
     (1) In submitting to Congress a request for authority to 
     carry out the construction, acquisition, or improvement of 
     military family housing, the Secretary concerned shall 
     include in the request information on the net floor area of 
     each unit of military family housing to be constructed, 
     acquired, or improved under the authority.
       ``(2) In this subsection, the term `net floor area', in the 
     case of a military family housing unit, means the total 
     number of square feet of the floor space inside the exterior 
     walls of the unit, excluding the floor area of an unfinished 
     basement, an unfinished attic, a utility space, a garage, a 
     carport, an open or insect-screened porch, a stairwell, and 
     any space used for a solar-energy system.''.
       (2) The table of sections at the beginning of subchapter II 
     of chapter 169 of that title is amended by striking the item 
     relating to section 2826 and inserting the following new 
     item:

``2826. Military family housing: local comparability of room patterns 
              and floor areas.''.

[[Page 21475]]

       (b) Effective Date.--(1) The amendments made by subsection 
     (a) shall take effect on October 1, 2001, but the Secretary 
     of Defense shall anticipate the requirements of section 2826 
     of title 10, United States Code, as added by such subsection, 
     when preparing the budget request for new construction, 
     acquisition, or improvement of military family housing for 
     fiscal year 2002.
       (2) Section 2826 of title 10, United States Code, as in 
     effect on September 30, 2001, shall continue to apply with 
     respect to the construction, acquisition, or improvement of 
     military family housing commenced on or before that date.

     SEC. 2804. MODIFICATION OF LEASE AUTHORITY FOR HIGH-COST 
                   MILITARY FAMILY HOUSING.

       (a) Leases for United States Southern Command.--Paragraph 
     (4) of section 2828(b) of title 10, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(4)'';
       (2) by striking the second sentence; and
       (3) by adding at the end the following new subparagraphs:
       ``(B) The amount of all leases under this paragraph may not 
     exceed $280,000 per year, as adjusted from time to time under 
     paragraph (6).
       ``(C) The term of any lease under this paragraph may not 
     exceed 5 years.''.
       (b) Annual Adjustment of Maximum Lease Amounts.--Such 
     section is further amended by striking paragraph (5) and 
     inserting the following new paragraphs:
       ``(5) At the beginning of each fiscal year, the Secretary 
     concerned shall adjust the maximum lease amount provided for 
     leases under paragraphs (2) and (3) for the previous fiscal 
     year by the percentage (if any) by which the national average 
     monthly cost of housing (as calculated for purposes of 
     determining rates of basic allowance for housing under 
     section 403 of title 37) for the preceding fiscal year 
     exceeds the national average monthly cost of housing (as so 
     calculated) for the fiscal year before such preceding fiscal 
     year.
       ``(6) At the beginning of each fiscal year, the Secretary 
     of the Army shall adjust the maximum aggregate amount for 
     leases under paragraph (4) for the previous fiscal year by 
     the percentage (if any) by which the annual average cost of 
     housing for the Miami Military Housing Area (as calculated 
     for purposes of determining rates of basic allowance for 
     housing under section 403 of title 37) for the preceding 
     fiscal year exceeds the annual average cost of housing for 
     the Miami Military Housing Area (as so calculated) for the 
     fiscal year before such preceding fiscal year.''.
       (c) Conforming Amendments.--Such section is further 
     amended--
       (1) in paragraph (2), by inserting after ``per year'' the 
     following: ``, as adjusted from time to under paragraph 
     (5)''; and
       (2) in paragraph (3), by striking ``$12,000 per unit per 
     year but does not exceed $14,000 per unit per year'' and 
     inserting ``the maximum amount per unit per year in effect 
     under paragraph (2) but does not exceed $14,000 per unit per 
     year, as adjusted from time to time under paragraph (5)''.

     SEC. 2805. PROVISION OF UTILITIES AND SERVICES UNDER 
                   ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
                   IMPROVEMENT OF MILITARY HOUSING.

       (a) Authority To Furnish on Reimbursable Basis.--Subchapter 
     IV of chapter 169 of title 10, United States Code, is amended 
     by inserting after section 2872 the following new section:

     ``Sec. 2872a. Utilities and services

       ``(a) Authority To Furnish.--The Secretary concerned may 
     furnish utilities and services referred to in subsection (b) 
     in connection with any military housing acquired or 
     constructed pursuant to the exercise of any authority or 
     combination of authorities under this subchapter if the 
     military housing is located on a military installation.
       ``(b) Covered Utilities and Services.--The utilities and 
     services that may be furnished under subsection (a) are the 
     following:
       ``(1) Electric power.
       ``(2) Steam.
       ``(3) Compressed air.
       ``(4) Water.
       ``(5) Sewage and garbage disposal.
       ``(6) Natural gas.
       ``(7) Pest control.
       ``(8) Snow and ice removal.
       ``(9) Mechanical refrigeration.
       ``(10) Telecommunications service.
       ``(c) Reimbursement.--(1) The Secretary concerned shall be 
     reimbursed for any utilities or services furnished under 
     subsection (a).
       ``(2) The amount of any cash payment received under 
     paragraph (1) shall be credited to the appropriation or 
     working capital account from which the cost of furnishing the 
     utilities or services concerned was paid. Amounts so credited 
     to an appropriation or account shall be merged with funds in 
     such appropriation or account, and shall be available to the 
     same extent, and subject to the same terms and conditions, as 
     such funds.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by inserting after 
     the item relating to section 2872 the following new item:

``2872a. Utilities and services.''.

     SEC. 2806. EXTENSION OF ALTERNATIVE AUTHORITY FOR ACQUISITION 
                   AND IMPROVEMENT OF MILITARY HOUSING.

       Section 2885 of title 10, United States Code, is amended by 
     striking ``February 10, 2001'' and inserting ``December 31, 
     2004''.

     SEC. 2807. EXPANSION OF DEFINITION OF ARMORY TO INCLUDE 
                   READINESS CENTERS.

       (a) Definition.--Section 18232(3) of title 10, United 
     States Code, is amended--
       (1) in the first sentence, by striking ``The term `armory' 
     means'' and inserting ``The terms `armory' and `readiness 
     center' mean''; and
       (2) in the second sentence, by striking ``It includes'' and 
     inserting ``Such terms include''.
       (b) Conforming Amendments.--(1) Section 18232(2) of such 
     title is amended by striking ``armory or other structure'' 
     and inserting ``armory, readiness center, or other 
     structure''.
       (2) Section 18236(b) of such title by inserting ``or 
     readiness center'' after ``armory''.
        Subtitle B--Real Property and Facilities Administration

     SEC. 2811. INCREASE IN THRESHOLD FOR NOTICE AND WAIT 
                   REQUIREMENTS FOR REAL PROPERTY TRANSACTIONS.

       (a) Increased Threshold.--Section 2662 of title 10, United 
     States Code, is amended by striking ``$200,000'' each place 
     it appears and inserting ``$500,000''.
       (b) Reference to Simplified Acquisition Threshold.--
     Subsection (b) of such section is amended by striking ``under 
     section 2304(g) of this title'' and inserting ``specified in 
     section 4(11) of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 403(11)),''.

     SEC. 2812. ENHANCEMENT OF AUTHORITY OF MILITARY DEPARTMENTS 
                   TO LEASE NON-EXCESS PROPERTY.

       (a) Property Available for Lease.--Subsection (a) of 
     section 2667 of title 10, United States Code, is amended--
       (1) by inserting ``and'' at the end of paragraph (1);
       (2) by striking paragraph (2); and
       (3) by redesignating paragraph (3) as paragraph (2).
       (b) Acceptance of In-Kind Consideration.--Such section is 
     further amended--
       (1) in subsection (b)(5)--
       (A) by striking ``improvement, maintenance, protection, 
     repair, or restoration,'' and inserting ``alteration, repair, 
     or improvement,''; and
       (B) by striking ``, or of the entire unit or installation 
     where a substantial part of it is leased,'';
       (2) by transferring subsection (c) to the end of the 
     section and redesignating such subsection, as so transferred, 
     as subsection (i);
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c)(1) In addition to any in-kind consideration accepted 
     under subsection (b)(5), in-kind consideration accepted with 
     respect to a lease under this section may include the 
     following:
       ``(A) Maintenance, protection, alteration, repair, 
     improvement, or restoration (including environmental 
     restoration) of property or facilities under the control of 
     the Secretary concerned.
       ``(B) Construction of new facilities for the Secretary 
     concerned.
       ``(C) Provision of facilities for use by the Secretary 
     concerned.
       ``(D) Facilities operation support for the Secretary 
     concerned.
       ``(E) Provision of such other services relating to 
     activities that will occur on the leased property as the 
     Secretary concerned considers appropriate.
       ``(2) In-kind consideration under paragraph (1) may be 
     accepted at any property or facilities under the control of 
     the Secretary concerned that are selected for that purpose by 
     the Secretary concerned.
       ``(3) Sections 2662 and 2802 of this title shall not apply 
     to any new facilities whose construction is accepted as in-
     kind consideration under this subsection.
       ``(4) In the case of a lease for which all or part of the 
     consideration proposed to be accepted by the Secretary 
     concerned under this subsection is in-kind consideration with 
     a value in excess of $500,000, the Secretary concerned may 
     not enter into the lease until 30 days after the date on 
     which a report on the facts of the lease is submitted to the 
     congressional defense committees.''; and
       (4) in subsection (f)--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraph (5) as paragraph (4).
       (c) Use of Proceeds.--Subsection (d)(1) of such section is 
     amended to read as follows:
       ``(d)(1)(A) The Secretary of a military department shall 
     deposit in a special account in the Treasury established for 
     such military department the following:
       ``(i) All money rentals received pursuant to leases entered 
     into by that Secretary under this section.
       ``(ii) All proceeds received pursuant to the granting of 
     easements by that Secretary under sections 2668 and 2669 of 
     this title.
       ``(iii) All proceeds received by that Secretary from 
     authorizing the temporary use of other property under the 
     control of that military department.
       ``(B) Subparagraph (A) does not apply to the following 
     proceeds:
       ``(i) Amounts paid for utilities and services furnished 
     lessees by the Secretary of a military department pursuant to 
     leases entered into under this section.
       ``(ii) Money rentals referred to in paragraph (4) or (5).
       ``(C) Subject to subparagraphs (D) and (E), the proceeds 
     deposited in the special account of a military department 
     pursuant to subparagraph (A) shall be available to the 
     Secretary of that military department, in such amounts as 
     provided in appropriation Acts, for the following:
       ``(i) Maintenance, protection, alteration, repair, 
     improvement, or restoration (including environmental 
     restoration) of property or facilities.

[[Page 21476]]

       ``(ii) Construction or acquisition of new facilities.
       ``(iii) Lease of facilities.
       ``(iv) Facilities operation support.
       ``(D) At least 50 percent of the proceeds deposited in the 
     special account of a military department under subparagraph 
     (A) shall be available for activities described in 
     subparagraph (C) only at the military installation where the 
     proceeds were derived.
       ``(E) The Secretary concerned may not expend under 
     subparagraph (C) an amount in excess of $500,000 at a single 
     installation until 30 days after the date on which a report 
     on the facts of the proposed expenditure is submitted to the 
     congressional defense committees.''.
       (d) Congressional Notification.--Subsection (d)(3) of such 
     section is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``As part'' and all that follows through ``Secretary of 
     Defense'' and inserting ``Not later than March 15 each year, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report which''; and
       (2) in subparagraph (A), by striking ``request'' and 
     inserting ``report''.
       (e) Definitions.--Subsection (h) of such section is amended 
     to read as follows:
       ``(h) In this section:
       ``(1) The term `congressional defense committees' means:
       ``(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 term `base closure law' means the following:
       ``(A) Section 2687 of this title.
       ``(B) 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).
       ``(C) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       ``(3) The term `military installation' has the meaning 
     given such term in section 2687(e)(1) of this title.''.
       (f) Conforming Amendments.--(1) Section 2668 of such title 
     is amended by adding at the end the following new subsection:
       ``(e) Subsection (d) of section 2667 of this title shall 
     apply with respect to proceeds received by the Secretary of a 
     military department in connection with an easement granted 
     under this section in the same manner as such subsection 
     applies to money rentals received pursuant to leases entered 
     into by that Secretary under such section.''.
       (2) Section 2669 of such title is amended by adding at the 
     end the following new subsection:
       ``(e) Subsection (d) of section 2667 of this title shall 
     apply with respect to proceeds received by the Secretary of a 
     military department in connection with an easement granted 
     under this section in the same manner as such subsection 
     applies to money rentals received pursuant to leases entered 
     into by that Secretary under such section.''.

     SEC. 2813. CONVEYANCE AUTHORITY REGARDING UTILITY SYSTEMS OF 
                   MILITARY DEPARTMENTS.

       (a) Selection of Conveyee.--Subsection (b) of section 2688 
     of title 10, United States Code, is amended--
       (1) by inserting ``(1)'' before ``If more than one''; and
       (2) by adding at the end the following new paragraphs:
       ``(2) Notwithstanding paragraph (1), the Secretary 
     concerned may use procedures other than competitive 
     procedures, but only in accordance with subsections (c) 
     through (f) of section 2304 of this title, to select the 
     conveyee of a utility system (or part of a utility system) 
     under subsection (a).
       ``(3) With respect to the solicitation process used in 
     connection with the conveyance of a utility system (or part 
     of a utility system) under subsection (a), the Secretary 
     concerned shall ensure that the process is conducted in a 
     manner consistent with the laws and regulations of the State 
     in which the utility system is located to the extent 
     necessary to ensure that all interested regulated and 
     unregulated utility companies and other interested entities 
     receive an opportunity to acquire and operate the utility 
     system to be conveyed.''.
       (b) Applicability of Regulatory Requirements.--Subsection 
     (f) of such section is amended--
       (1) by inserting ``(1)'' before ``The Secretary''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary concerned shall require in any contract 
     for the conveyance of a utility system (or part of a utility 
     system) under subsection (a) that the conveyee manage and 
     operate the utility system in a manner consistent with 
     applicable Federal and State regulations pertaining to 
     health, safety, fire, and environmental requirements.''.

     SEC. 2814. PERMANENT CONVEYANCE AUTHORITY TO IMPROVE PROPERTY 
                   MANAGEMENT.

       Section 203(p)(1) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 484(p)(1)) is 
     amended by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) The Administrator may exercise the authority under 
     subparagraph (A) with respect to such surplus real and 
     related property needed by the transferee or grantee for--
       ``(i) law enforcement purposes, as determined by the 
     Attorney General; or
       ``(ii) emergency management response purposes, including 
     fire and rescue services, as determined by the Director of 
     the Federal Emergency Management Agency.''.
            Subtitle C--Defense Base Closure and Realignment

     SEC. 2821. SCOPE OF AGREEMENTS TO TRANSFER PROPERTY TO 
                   REDEVELOPMENT AUTHORITIES WITHOUT CONSIDERATION 
                   UNDER THE BASE CLOSURE LAWS.

       (a) 1990 Law.--Section 2905(b)(4)(B)(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. 2687 note) is amended by 
     striking ``the transfer'' and inserting ``the initial 
     transfer of property''.
       (b) 1988 Law.--Section 204(b)(4)(B)(i) of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
     striking ``the transfer'' and inserting ``the initial 
     transfer of property''.
                      Subtitle D--Land Conveyances
                        PART I--ARMY CONVEYANCES

     SEC. 2831. TRANSFER OF JURISDICTION, ROCK ISLAND ARSENAL, 
                   ILLINOIS.

       (a) Transfer Authorized.--The Secretary of the Army may 
     transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of Veterans Affairs a parcel of 
     real property, including any improvements thereon, consisting 
     of approximately 23 acres and comprising a portion of the 
     Rock Island Arsenal, Illinois.
       (b) Use of Land.--The Secretary of Veterans Affairs shall 
     include the real property transferred under subsection (a) in 
     the Rock Island National Cemetery and use the transferred 
     property as a national cemetery under chapter 24 of title 38, 
     United States Code.
       (c) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under this 
     section shall be determined by a survey satisfactory to the 
     Secretary of the Army. The cost of the survey shall be borne 
     by the Secretary of Veterans Affairs.
       (d) Additional Terms and Conditions.--The Secretary of the 
     Army may require such additional terms and conditions in 
     connection with the transfer under this section as the 
     Secretary of the Army considers appropriate to protect the 
     interests of the United States.

     SEC. 2832. LAND CONVEYANCE, ARMY RESERVE CENTER, GALESBURG, 
                   ILLINOIS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Knox County, Illinois (in 
     this section referred to as the ``County''), all right, 
     title, and interest of the United States in and to a parcel 
     of real property, including any improvements thereon, in 
     Galesburg, Illinois, consisting of approximately 4.65 acres 
     and containing an Army Reserve Center for the purpose of 
     permitting the County to use the parcel for municipal office 
     space.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the County.
       (c) 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. 2833. LAND CONVEYANCE, CHARLES MELVIN PRICE SUPPORT 
                   CENTER, ILLINOIS.

       (a) Conveyance Authorized.--(1) The Secretary of the Army 
     may convey to the Tri-City Regional Port District of Granite 
     City, Illinois (in this section referred to as the ``Port 
     District''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, consisting of approximately 752 acres 
     and known as the Charles Melvin Price Support Center, for the 
     purpose of permitting the Port District to use the parcel for 
     development of a port facility and for other public purposes.
       (2) The property to be conveyed under paragraph (1) shall 
     include 158 units of military family housing at the Charles 
     Melvin Price Support Center for the purpose of permitting the 
     Port District to use the housing to provide affordable 
     housing, but only if the Port District agrees to provide 
     members of the Armed Forces first priority in leasing the 
     housing at a rental rate not to exceed the member's basic 
     allowance for housing.
       (3) The Secretary of the Army may include as part of the 
     conveyance under paragraph (1) personal property of the Army 
     at the Charles Melvin Price Support Center that the Secretary 
     of Transportation recommends is appropriate for the 
     development or operation of the port facility and the 
     Secretary of the Army agrees is excess to the needs of the 
     Army.
       (b) Interim Lease.--Until such time as the real property 
     described in subsection (a) is conveyed by deed, the 
     Secretary of the Army may lease the property to the Port 
     District.
       (c) Consideration.--(1) The conveyance under subsection (a) 
     shall be made without consideration as a public benefit 
     conveyance for port development if the Secretary of the Army 
     determines that the Port District satisfies the criteria 
     specified in section 203(q) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 484(q)) and 
     regulations prescribed to implement such section. If the 
     Secretary determines that the Port District fails to qualify 
     for a public benefit conveyance, but still desires to acquire 
     the property, the Port District shall pay to the United 
     States an amount equal to the fair

[[Page 21477]]

     market value of the property to be conveyed. The fair market 
     value of the property shall be determined by the Secretary of 
     the Army.
       (2) The Secretary of the Army may accept as consideration 
     for a lease of the property under subsection (b) an amount 
     that is less than fair market value if the Secretary 
     determines that the public interest will be served as a 
     result of the lease.
       (d) Army Reserve Activities.--(1) Notwithstanding the total 
     acreage of the parcel authorized for conveyance under 
     subsection (a), the Secretary of the Army may retain up to 50 
     acres of the parcel for use by the Army Reserve. The acreage 
     selected for retention shall be mutually agreeable to the 
     Secretary and the Port District.
       (2) At such time as the Secretary of the Army determines 
     that the property retained under this subsection is no longer 
     needed for Army Reserve activities, the Secretary shall 
     convey the property to the Port District. The consideration 
     for the conveyance shall be determined in the manner provided 
     in subsection (c).
       (e) Federal Lease of Facilities.--(1) As a condition for 
     the conveyance under subsection (a), the Secretary of the 
     Army may require that the Port District lease to the 
     Department of Defense or any other Federal agency facilities 
     for use by the agency on the property being conveyed. Any 
     lease under this subsection shall be made under terms and 
     conditions satisfactory to the Secretary and the Port 
     District.
       (2) The agency leasing a facility under this subsection 
     shall provide for the maintenance of the facility or pay the 
     Port District to maintain the facility. Maintenance of the 
     leased facilities performed by the Port District shall be to 
     the reasonable satisfaction of the United States, or as 
     required by all applicable Federal, State, and local laws and 
     ordinances.
       (3) At the end of a lease under this subsection, the 
     facility covered by the lease shall revert to the Port 
     District.
       (f) Flood Control Easement.--The Port District shall grant 
     to the Secretary of the Army an easement on the property 
     conveyed under subsection (a) for the purpose of permitting 
     the Secretary to implement and maintain flood control 
     projects. The Secretary of the Army, acting through the Corps 
     of Engineers, shall be responsible for the maintenance of any 
     flood control project built on the property pursuant to the 
     easement.
       (g) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary of the Army and the Port District. The cost of such 
     survey shall be borne by the Port District.
       (h) Additional Terms.--The Secretary of the Army may 
     require such additional terms and conditions in connection 
     with the conveyance as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2834. LAND CONVEYANCE, FORT RILEY, KANSAS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the State of Kansas (in 
     this section referred to as the ``State''), all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 70 acres at Fort Riley Military Reservation, 
     Fort Riley, Kansas. The preferred site is adjacent to the 
     Fort Riley Military Reservation boundary, along the north 
     side of Huebner Road across from the First Territorial 
     Capitol of Kansas Historical Site Museum.
       (b) Conditions of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the conditions that--
       (1) the State use the property conveyed solely for purposes 
     of establishing and maintaining a State-operated veterans 
     cemetery; and
       (2) all costs associated with the conveyance, including the 
     cost of relocating water and electric utilities should the 
     Secretary determine that such relocations are necessary, be 
     borne by the State.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary and the Director of the Kansas Commission on 
     Veterans Affairs.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance required by subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2835. LAND CONVEYANCE, FORT POLK, LOUISIANA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the State of Louisiana (in 
     this section referred to as the ``State''), all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 200 acres at Fort Polk, Louisiana, for the 
     purpose of permitting the State to establish a State-run 
     cemetery for veterans.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the State.
       (c) 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. 2836. LAND CONVEYANCE, ARMY RESERVE CENTER, WINONA, 
                   MINNESOTA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Winona State University 
     Foundation of Winona, Minnesota (in this section referred to 
     as the ``Foundation''), all right, title, and interest of the 
     United States in and to a parcel of real property, including 
     any improvements thereon, in Winona, Minnesota, containing an 
     Army Reserve Center for the purpose of permitting the 
     Foundation to use the parcel for educational purposes.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Foundation.
       (c) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2837. LAND CONVEYANCE, FORT DIX, NEW JERSEY.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to Pemberton Township, New 
     Jersey (in this section referred to as the ``Township''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property at Fort Dix, New Jersey, consisting 
     of approximately 2 acres and containing a parking lot 
     inadvertently constructed on the parcel by the Township.
       (b) Conditions of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the conditions 
     that--
       (1) the Township accept the property as is; and
       (2) the Township assume responsibility for any 
     environmental restoration or remediation required with 
     respect to the property under applicable law.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Township.
       (d) 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. 2838. LAND CONVEYANCE, NIKE SITE 43, ELRAMA, 
                   PENNSYLVANIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Board of Supervisors of 
     Union Township, Pennsylvania (in this section referred to as 
     the ``Township''), all right, title, and interest of the 
     United States in and to a parcel of real property, including 
     any improvements thereon, in Elrama, Pennsylvania, consisting 
     of approximately 160 acres, which is known as Nike Site 43 
     and was more recently used by the Pennsylvania Army National 
     Guard, for the purpose of permitting the Township to use the 
     parcel for municipal storage and other public purposes.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Township.
       (c) 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. 2839. LAND CONVEYANCE, ARMY RESERVE LOCAL TRAINING 
                   CENTER, CHATTANOOGA, TENNESSEE.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Medal of Honor Museum, 
     Inc., a nonprofit corporation organized in the State of 
     Tennessee (in this section referred to as the 
     ``Corporation''), all right, title, and interest of the 
     United States in and to a parcel of real property, including 
     any improvements thereon, consisting of approximately 15 
     acres at the Army Reserve Local Training Center located on 
     Bonny Oaks Drive, Chattanooga, Tennessee, for the purpose of 
     permitting the Corporation to develop and use the parcel as a 
     museum and for other educational purposes.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Corporation.
       (c) 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. 2840. LAND EXCHANGE, FORT HOOD, TEXAS.

       (a) Exchange Authorized.--The Secretary of the Army may 
     convey to the City of Copperas Cove, Texas (in this section 
     referred to as the ``City''), all right, title, and interest 
     of the United States in and to a parcel of real property, 
     including any improvements thereon, consisting of 
     approximately 100 acres at Fort Hood, Texas, in exchange for 
     the City's conveyance to the Secretary of all right, title, 
     and interest of the City in and to one or more parcels of 
     real property that are acceptable to the Secretary and 
     consist of a total of approximately 300 acres.

[[Page 21478]]

       (b) Description of Property.--The exact acreage and legal 
     description of the parcels of real property to be exchanged 
     under subsection (a) shall be determined by surveys 
     satisfactory to the Secretary. The cost of the surveys shall 
     be borne by the City.
       (c) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the exchange under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2841. LAND CONVEYANCE, FORT PICKETT, VIRGINIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Commonwealth of 
     Virginia (in this section referred to as the 
     ``Commonwealth''), all right, title, and interest of the 
     United States in and to a parcel of real property, including 
     any improvements thereon, consisting of approximately 700 
     acres at Fort Pickett, Virginia, for the purpose of 
     permitting the Commonwealth to develop and operate a public 
     safety training facility.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Commonwealth.
       (c) 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. 2842. LAND CONVEYANCE, FORT LAWTON, WASHINGTON.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the City of Seattle, 
     Washington (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to the 
     real property at Fort Lawton, Washington, consisting of Area 
     500 and Government Way from 36th Avenue to Area 500, for 
     purposes of the inclusion of the property in Discovery Park, 
     Seattle, Washington.
       (b) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the City.
       (c) 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. 2843. LAND CONVEYANCE, VANCOUVER BARRACKS, WASHINGTON.

       (a) Conveyance of West Barracks Authorized.--The Secretary 
     of the Army may convey, without consideration, to the City of 
     Vancouver, Washington (in this section referred to as the 
     ``City''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, encompassing 19 structures at Vancouver 
     Barracks, Washington, which are identified by the Army using 
     numbers between 602 and 676, and are known as the west 
     barracks.
       (b) Purpose.--The purpose of the conveyance authorized by 
     subsection (a) shall be to include the property described in 
     that subsection in the Vancouver National Historic Reserve, 
     Washington.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the City.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance authorized by subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

                       PART II--NAVY CONVEYANCES

     SEC. 2846. MODIFICATION OF LAND CONVEYANCE, MARINE CORPS AIR 
                   STATION, EL TORO, CALIFORNIA.

       (a) Use of Consideration.--Subsection (a)(2) of section 
     2811 of the Military Construction Authorization Act for 
     Fiscal Years 1990 and 1991 (division B of Public Law 101-189; 
     103 Stat. 1650) is amended by striking ``of additional 
     military family housing units at Marine Corps Air Station, 
     Tustin, California.'' and inserting ``and repair of roads and 
     development of Aerial Port of Embarkation facilities at 
     Marine Corps Air Station, Miramar, California.''.
       (b) Conforming Amendment.--The section heading of such 
     section is amended by striking ``, AND CONSTRUCTION OF FAMILY 
     HOUSING AT MARINE CORPS AIR STATION, TUSTIN, CALIFORNIA''.

     SEC. 2847. MODIFICATION OF AUTHORITY FOR OXNARD HARBOR 
                   DISTRICT, PORT HUENEME, CALIFORNIA, TO USE 
                   CERTAIN NAVY PROPERTY.

       (a) Additional Restrictions on Joint Use.--Subsection (c) 
     of section 2843 of the Military Construction Authorization 
     Act for Fiscal Year 1995 (division B of Public Law 103-337; 
     108 Stat. 3067) is amended to read as follows:
       ``(c) Restrictions on Use.--The District's use of the 
     property covered by an agreement under subsection (a) is 
     subject to the following conditions:
       ``(1) The District shall suspend operations under the 
     agreement upon notification by the commanding officer of the 
     Center that the property is needed to support mission 
     essential naval vessel support requirements or Navy 
     contingency operations, including combat missions, natural 
     disasters, and humanitarian missions.
       ``(2) The District shall use the property covered by the 
     agreement in a manner consistent with Navy operations at the 
     Center, including cooperating with the Navy for the purpose 
     of assisting the Navy to meet its through-put requirements at 
     the Center for the expeditious movement of military cargo.
       ``(3) The commanding officer of the Center may require the 
     District to remove any of its personal property at the Center 
     that the commanding officer determines may interfere with 
     military operations at the Center. If the District cannot 
     expeditiously remove the property, the commanding officer may 
     provide for the removal of the property at District 
     expense.''.
       (b) Consideration.--Subsection (d) of such section is 
     amended to read as follows:
       ``(d) Consideration.--(1) As consideration for the use of 
     the property covered by an agreement under subsection (a), 
     the District shall pay to the Navy an amount that is mutually 
     agreeable to the parties to the agreement, taking into 
     account the nature and extent of the District's use of the 
     property.
       ``(2) The Secretary may accept in-kind consideration under 
     paragraph (1), including consideration in the form of--
       ``(A) the District's maintenance, preservation, 
     improvement, protection, repair, or restoration of all or any 
     portion of the property covered by the agreement;
       ``(B) the construction of new facilities, the modification 
     of existing facilities, or the replacement of facilities 
     vacated by the Navy on account of the agreement; and
       ``(C) covering the cost of relocation of the operations of 
     the Navy from the vacated facilities to the replacement 
     facilities.
       ``(3) All cash consideration received under paragraph (1) 
     shall be deposited in the special account in the Treasury 
     established for the Navy under section 2667(d) of title 10, 
     United States Code. The amounts deposited in the special 
     account pursuant to this paragraph shall be available, as 
     provided in appropriation Acts, for general supervision, 
     administration, overhead expenses, and Center operations and 
     for the maintenance preservation, improvement, protection, 
     repair, or restoration of property at the Center.''.
       (c) Conforming Amendments.--Such section is further 
     amended--
       (1) by striking subsection (f); and
       (2) by redesignating subsections (g) and (h) as subsections 
     (f) and (g), respectively.

     SEC. 2848. TRANSFER OF JURISDICTION, MARINE CORPS AIR 
                   STATION, MIRAMAR, CALIFORNIA.

       (a) Transfer Authorized.--The Secretary of the Navy may 
     transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of the Interior a parcel of 
     real property, including any improvements thereon, consisting 
     of approximately 250 acres and known as the Teacup Parcel, 
     which comprises a portion of the Marine Corps Air Station, 
     Miramar, California.
       (b) Use of Land.--The Secretary of the Interior shall 
     include the real property transferred under subsection (a) in 
     the Vernal Pool Unit of the San Diego National Wildlife 
     Refuge and administer the property for the conservation of 
     fish and wildlife. All current and future military aviation 
     and related activities at the Marine Corps Air Station, 
     Miramar, are deemed to be compatible with the refuge purposes 
     for which the property is transferred, and with any secondary 
     uses that may be established on the transferred property.
       (c) Condition on Transfer.--The transfer authorized under 
     subsection (a) shall be subject to the condition that the 
     Secretary of the Interior make the transferred property 
     available to the Secretary of the Navy for any habitat 
     restoration or preservation project that may be required for 
     mitigation of military activities occurring at the Marine 
     Corps Air Station, Miramar, unless the Secretary of the 
     Interior determines that the project will adversely affect 
     the property's sensitive wildlife and habitat resource 
     values.
       (d) Legal Description.--The exact acreage and legal 
     description of the real property to be transferred under this 
     section shall be determined by a survey satisfactory to the 
     Secretary of the Navy. The cost of the survey shall be borne 
     by the Secretary of the Interior.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Navy may require such additional terms and conditions in 
     connection with the transfer under this section as the 
     Secretary of the Navy considers appropriate to protect the 
     interests of the United States.

     SEC. 2849. LAND EXCHANGE, MARINE CORPS RECRUIT DEPOT, SAN 
                   DIEGO, CALIFORNIA.

       (a) Exchange Authorized.--The Secretary of the Navy may 
     convey to the San Diego Unified Port District of San Diego, 
     California (in this section referred to as the ``Port 
     District''), all right, title, and interest of the United 
     States in and to three parcels of real property, including 
     any improvements thereon, consisting of approximately 44.5 
     acres and comprising a portion of the Marine Corps Recruit 
     Depot, San Diego, California, in exchange for the Port 
     District's--
       (1) conveyance to the Secretary of all right, title, and 
     interest of Port District in and to a parcel of real property 
     that is acceptable to the Secretary and contiguous to the 
     Marine Corps Recruit Depot; and
       (2) construction of suitable replacement facilities and 
     necessary supporting structures on the parcel or other 
     property comprising the Marine Corps Recruit Depot, as 
     determined necessary by the Secretary.

[[Page 21479]]

       (b) Time for Conveyance.--The Secretary may not make the 
     conveyance to the Port District authorized by subsection (a) 
     until the Secretary determines that the replacement 
     facilities have been constructed and are ready for occupancy.
       (c) Administrative Expenses.--The Port District shall 
     reimburse the Secretary for administrative expenses incurred 
     by the Secretary in carrying out the exchange under 
     subsection (a), including expenses related to the planning, 
     design, survey, environmental compliance, and supervision and 
     inspection of construction of the replacement facilities. 
     Section 2695(c) of title 10, United States Code, shall apply 
     to the amounts received by the Secretary.
       (d) Construction Schedule.--The Port District shall 
     construct the replacement facilitates pursuant to such 
     schedule and in such a manner so as to not interrupt or 
     adversely affect the capability of the Marine Corps Recruit 
     Depot to accomplish its mission.
       (e) Description of Property.--The exact acreage and legal 
     description of the parcels of real property to be exchanged 
     under subsection (a) shall be determined by surveys 
     satisfactory to the Secretary. The cost of the surveys shall 
     be borne by the Port District.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the exchange under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2850. LEASE OF PROPERTY, NAVAL AIR STATION, PENSACOLA, 
                   FLORIDA.

       (a) Authority To Lease.--The Secretary of the Navy may 
     lease, without consideration, to the Naval Aviation Museum 
     Foundation (in this section referred to as the 
     ``Foundation'') real property improvements constructed by the 
     Foundation at the National Museum of Naval Aviation at Naval 
     Air Station, Pensacola, Florida, for the purpose of 
     permitting the Foundation to operate a National Flight 
     Academy to encourage and assist American young people to 
     develop an interest in naval aviation and to preserve and 
     enhance the image and heritage of naval aviation.
       (b) Construction.--The Foundation shall be solely 
     responsible for the design and construction of the real 
     property improvements referred to in subsection (a). Upon 
     completion, the improvements shall be donated to and become 
     the property of the United States, subject to the terms of 
     the lease under subsection (a).
       (c) Term of Lease.--(1) The lease authorized by subsection 
     (a) may be for a term of up to 50 years, with an option to 
     renew for an additional 50 years.
       (2) In the event that the National Flight Academy ceases 
     operation for a period in excess of 1 year during the 
     leasehold period, or any extension thereof, the lease shall 
     immediately terminate without cost or future liability to the 
     United States.
       (d) Use by Navy.--The Secretary may use all or a portion of 
     the leased property when the National Flight Academy is not 
     in session or whenever the use of the property would not 
     conflict with operation of the Academy. The Foundation shall 
     permit such use at no cost to the Navy.
       (e) Maintenance and Repair.--The Foundation shall be solely 
     responsible during the leasehold period, and any extension 
     thereof, for the operation, maintenance, and repair or 
     replacement of the real property improvements authorized for 
     lease under this section.
       (f) Assistance.--(1) Subject to subsection (e), the 
     Secretary may assist the Foundation in implementing the 
     National Flight Academy by furnishing facilities, utilities, 
     maintenance, and other services within the boundaries of 
     Naval Air Station, Pensacola. The Secretary may require the 
     Foundation to reimburse the Secretary for the facilities, 
     utilities, maintenance, or other services so provided or may 
     provide the facilities, utilities, maintenance, or other 
     services without reimbursement by the Foundation.
       (2) Any assistance provided the Foundation pursuant to 
     paragraph (1) may be terminated by the Secretary without 
     notice, cause, or liability to the United States.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the lease under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2851. LAND CONVEYANCE, NAVAL RESERVE CENTER, TAMPA, 
                   FLORIDA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the Tampa Port Authority of Tampa, Florida (in this 
     section referred to as the ``Port Authority''), all right, 
     title, and interest of the United States in and to a parcel 
     of real property, including any improvements thereon, 
     consisting of approximately 2.18 acres and comprising the 
     Naval Reserve Center, Tampa, Florida, for the purpose of 
     permitting the Port Authority to use the parcel to facilitate 
     the expansion of the Port of Tampa.
       (b) Conditions of Conveyance.--The conveyance authorized 
     under subsection (a) shall be subject to the following 
     conditions:
       (1) The Port Authority will accept the Naval Reserve Center 
     as is.
       (2) The Port Authority will provide a replacement facility 
     for the Naval Reserve Center on a site of comparable size and 
     consisting of comparable improvements on port property or 
     other public land acceptable to the Secretary. In the event 
     that a federally owned site acceptable to the Secretary is 
     not available for the construction of the replacement 
     facility, the Port Authority will provide a site for the 
     replacement facility acceptable to the Secretary and convey 
     it in fee title to the United States.
       (3) The Port Authority will procure all necessary funding 
     and the planning and design necessary to construct a 
     replacement facility that is fully operational and satisfies 
     the Base Facilities Requirements plan, as provided by the 
     Naval Reserve.
       (4) The Port Authority will bear all reasonable costs that 
     the Navy may incur in the relocating to the replacement 
     facility.
       (c) Time for Conveyance.--The Secretary may not make the 
     conveyance authorized under subsection (a) until all of the 
     conditions specified in subsection (b) have been met to the 
     satisfaction of the Secretary.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Port Authority.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2852. MODIFICATION OF LAND CONVEYANCE, DEFENSE FUEL 
                   SUPPLY POINT, CASCO BAY, MAINE.

       Section 2839 of the Military Construction Authorization Act 
     for Fiscal Year 1995 (division B of Public Law 103-337; 108 
     Stat. 3065) 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) Replacement of Removed Electric Utility Service.--(1) 
     The Secretary of Defense shall replace the electric utility 
     service removed during the course of environmental 
     remediation carried out with respect to the property to be 
     conveyed under subsection (a), including the procurement and 
     installation of electrical cables, switch cabinets, and 
     transformers associated with the service.
       ``(2) As part of the replacement of the electric utility 
     service under paragraph (1), the Secretary of Defense may, at 
     the request of the Town, improve the electric utility service 
     and install telecommunications service. The Secretary shall 
     determine, in consultation with the Town, the additional 
     costs that would be associated with the improvement of the 
     electric utility service and the installation of 
     telecommunications service under this paragraph, and the Town 
     shall be responsible for the payment of such costs.''.

     SEC. 2853. LAND CONVEYANCE, NAVAL COMPUTER AND 
                   TELECOMMUNICATIONS STATION, CUTLER, MAINE.

       (a) 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 a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 263 acres located in Washington County, Maine, 
     and known as the Naval Computer and Telecommunications 
     Station, Cutler, Maine.
       (b) Reimbursement for Environmental and Other 
     Assessments.--(1) The Secretary may require the recipient of 
     the property conveyed under this section to reimburse the 
     Secretary for the costs incurred by the Secretary for any 
     environmental assessments and other studies and analyses 
     carried out by the Secretary with respect to the property to 
     be conveyed under this section before the conveyance of the 
     property under this section.
       (2) The amount of any reimbursement required under 
     paragraph (1) shall be determined by the Secretary and may 
     not exceed the cost of the assessments, studies, and analyses 
     for which reimbursement is required under that paragraph.
       (3) Section 2695(c) of title 10, United States Code, shall 
     apply to the amounts received by the Secretary.
       (c) Lease of Property Pending Conveyance.--(1) Pending the 
     conveyance by deed of the property authorized to be conveyed 
     by subsection (a), the Secretary may enter into one or more 
     leases of the property.
       (2) The Secretary shall deposit any amounts paid under a 
     lease under paragraph (1) in the appropriation or account 
     providing funds for the protection, maintenance, or repair of 
     the property, or for the provision of utility services for 
     the property. Amounts so deposited shall be merged with funds 
     in the appropriation or account in which deposited, and shall 
     be available for the same purposes, and subject to the same 
     conditions and limitations, as the funds with which merged.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     recipient of the property.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2854. MODIFICATION OF LAND CONVEYANCE AUTHORITY, FORMER 
                   NAVAL TRAINING CENTER, BAINBRIDGE, CECIL 
                   COUNTY, MARYLAND.

       Section 1 of Public Law 99-596 (100 Stat. 3349) is 
     amended--

[[Page 21480]]

       (1) in subsection (a), by striking ``subsections (b) 
     through (f)'' and inserting ``subsections (b) through (e)'';
       (2) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Consideration.--(1) In the event of the transfer of 
     the property under subsection (a) to the State of Maryland, 
     the transfer shall be with consideration or without 
     consideration from the State of Maryland, at the election of 
     the Secretary.
       ``(2) If the Secretary elects to receive consideration from 
     the State of Maryland under paragraph (1), the Secretary may 
     reduce the amount of consideration to be received from the 
     State of Maryland under that paragraph by an amount equal to 
     the cost, estimated as of the time of the transfer of the 
     property under this section, of the restoration of the 
     historic buildings on the property. The total amount of the 
     reduction of consideration under this paragraph may not 
     exceed $500,000.'';
       (3) by striking subsection (d); and
       (4) by redesignating subsections (e) and (f) as subsections 
     (d) and (e), respectively.

     SEC. 2855. LAND CONVEYANCE, MARINE CORPS BASE, CAMP LEJEUNE, 
                   NORTH CAROLINA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the City of Jacksonville, North Carolina (in this 
     section referred to as the ``City''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including any improvements thereon, that is 
     currently leased to Norfolk Southern Corporation and consists 
     of approximately 50 acres, known as the railroad right-of-
     way, lying within the City between Highway 24 and Highway 17, 
     at the Marine Corps Base, Camp Lejeune, North Carolina, for 
     the purpose of permitting the City to develop the parcel for 
     initial use as a bike/green way trail.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the City shall reimburse the Secretary 
     (in such amounts as the Secretary may determine) for the 
     expenses incurred by the Secretary in making the conveyance, 
     including costs related to planning, design, surveys, 
     environmental assessment and compliance, supervision and 
     inspection of construction, severing and realigning utility 
     systems, and other prudent and necessary actions. Section 
     2695(c) of title 10, United States Code, shall apply to the 
     amounts received by the Secretary.
       (c) Condition of Conveyance.--The Secretary may retain such 
     easements, rights-of-way, and other interests in the property 
     to be conveyed under subsection (a) and impose such 
     restrictions on the use of the conveyed property as the 
     Secretary considers necessary to ensure the effective 
     security, maintenance, and operations of the Marine Corps 
     Base, Camp Lejeune, North Carolina, and to protect human 
     health and the environment.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2856. LAND EXCHANGE, NAVAL AIR RESERVE CENTER, COLUMBUS, 
                   OHIO.

       (a) Exchange Authorized.--The Secretary of the Navy may 
     convey to the Rickenbacker Port Authority of Columbus, Ohio 
     (in this section referred to as the ``Authority''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including any improvements thereon, 
     consisting of approximately 24 acres comprising the civilian 
     facilities of the Naval Air Reserve at Rickenbacker 
     International Airport in Franklin County, Ohio, in exchange 
     for the Authority's conveyance to the Secretary of all right, 
     title, and interest of the Authority in and to a parcel of 
     real property consisting of approximately 10 to 15 acres 
     acceptable to the Secretary at Rickenbacker International 
     Airport.
       (b) Use of Acquired Property.--The Secretary shall use the 
     real property acquired from the Authority in the exchange as 
     the site for a replacement facility that will house both the 
     Naval Air Reserve Center at Rickenbacker International 
     Airport and the Naval and Marine Corps Reserve Center 
     currently located in Columbus, Ohio.
       (c) Time for Conveyance.--The Secretary may not make the 
     conveyance to the Authority authorized by subsection (a) 
     until the Secretary determines that the replacement facility 
     described in subsection (b) has been constructed and is ready 
     for occupancy.
       (d) Description of Property.--The exact acreage and legal 
     description of the parcels of real property to be exchanged 
     under subsection (a) shall be determined by surveys 
     satisfactory to the Secretary. The cost of the surveys shall 
     be borne by the Authority.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the exchange under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2857. LAND CONVEYANCE, NAVAL STATION, BREMERTON, 
                   WASHINGTON.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the City of Bremerton, Washington (in this section 
     referred to as the ``City''), all right, title, and interest 
     of the United States in and to a parcel of real property, 
     including any improvements thereon, consisting of 
     approximately 45.8 acres and comprising the former East Park 
     Transient Family Accommodations, which was an off-site 
     housing facility for Naval Station, Bremerton, Washington.
       (b) Consideration.--(1) The conveyance under subsection (a) 
     may be made without consideration to the extent the real 
     property to be conveyed will be used by the City, directly or 
     through an agreement with a public or private entity, for 
     public health, public safety, education, affordable housing, 
     or public recreation.
       (2) If the City intends to use a portion of the conveyed 
     property for a purpose not specified in paragraph (1), the 
     City shall pay to the United States an amount equal to the 
     fair market value of that portion of the property. The fair 
     market value shall be determined by an appraisal acceptable 
     to the Secretary.
       (c) Administrative Expenses.--The City shall reimburse the 
     Secretary for administrative expenses incurred by the 
     Secretary in carrying out the conveyance under subsection 
     (a), including expenses related to planning, design, survey, 
     environmental compliance, and other prudent and necessary 
     actions. Section 2695(c) of title 10, United States Code, 
     shall apply to the amounts received by the Secretary.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

                    PART III--AIR FORCE CONVEYANCES

     SEC. 2861. LAND CONVEYANCE, LOS ANGELES AIR FORCE BASE, 
                   CALIFORNIA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, by sale or lease upon such terms as the Secretary 
     considers appropriate, all or any portion of the following 
     parcels of real property, including any improvements thereon, 
     at Los Angeles Air Force Base, California:
       (1) Approximately 42 acres in El Segundo, California, 
     commonly known as Area A.
       (2) Approximately 52 acres in El Segundo, California, 
     commonly known as Area B.
       (3) Approximately 13 acres in Hawthorne, California, 
     commonly known as the Lawndale Annex.
       (4) Approximately 3.7 acres in Sun Valley, California, 
     commonly known as the Armed Forces Radio and Television 
     Service Broadcast Center.
       (b) Consideration.--As consideration for the conveyance of 
     real property under subsection (a), the recipient of the 
     property shall provide for the design and construction on 
     real property acceptable to the Secretary of one or more 
     facilities to consolidate the mission and support functions 
     at Los Angeles Air Force Base. Any such facility must comply 
     with the seismic and safety design standards for Los Angeles 
     County, California, in effect at the time the Secretary takes 
     possession of the facility.
       (c) Leaseback Authority.--If the fair market value of a 
     facility to be provided as consideration for the conveyance 
     of real property under subsection (a) exceeds the fair market 
     value of the conveyed property, the Secretary may enter into 
     a lease for the facility for a period not to exceed 10 years. 
     Rental payments under the lease shall be established at the 
     rate necessary to permit the lessor to recover, by the end of 
     the lease term, the difference between the fair market value 
     of a facility and the fair market value of the conveyed 
     property. At the end of the lease, all right, title, and 
     interest in the facility shall vest in the United States.
       (d) Appraisal of Property.--The Secretary shall obtain an 
     appraisal of the fair market value of all property and 
     facilities to be sold, leased, or acquired under this 
     section. An appraisal shall be made by a qualified appraiser 
     familiar with the type of property to be appraised. The 
     Secretary shall consider the appraisals in determining 
     whether a proposed conveyance accomplishes the purpose of 
     this section and is in the interest of the United States. 
     Appraisal reports shall not be released outside of the 
     Federal Government, other than to the other party to a 
     conveyance.
       (e) Description of Property.--The exact acreage and legal 
     description of real property to be conveyed under subsection 
     (a) or acquired under subsection (b) shall be determined by a 
     survey satisfactory to the Secretary. The cost of the survey 
     shall be borne by the recipient of the property.
       (f) Exemption.--Section 2696 of title 10, United States 
     Code, does not apply to the conveyance authorized by 
     subsection (a).
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with a conveyance under subsection (a) or a lease under 
     subsection (c) as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2862. LAND CONVEYANCE, POINT ARENA AIR FORCE STATION, 
                   CALIFORNIA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to Mendocino County, 
     California (in this section referred to as the ``County''), 
     all right, title, and interest of the United States in and to 
     a parcel of real property, including any improvements 
     thereon, consisting of approximately

[[Page 21481]]

     82 acres at the Point Arena Air Force Station, California, 
     for the purpose of permitting the County to use the parcel 
     for municipal and other public purposes.
       (b) Conditions of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     County--
       (1) use the conveyed property, directly or through an 
     agreement with a public or private entity, for municipal and 
     other public purposes;
       (2) convey the property to an appropriate public or private 
     entity that will use the conveyed property for such purposes; 
     or
       (3) convey the property by sale or exchange and--
       (A) if conveyed by exchange, use the property acquired in 
     the exchange for such purposes; or
       (B) if conveyed by sale, use the proceeds to acquire 
     property that will be used for such purposes.
       (c) Consideration.--If the Secretary determines at any time 
     that the County, or a public or private entity to which the 
     property is reconveyed as authorized by paragraph (2) of 
     subsection (b), has failed to comply with the conditions 
     specified in such subsection, the County shall pay the United 
     States an amount equal to the fair market value of the 
     property conveyed under subsection (a), as determined by an 
     appraisal satisfactory to the Secretary.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the County.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2863. LAND CONVEYANCE, LOWRY AIR FORCE BASE, COLORADO.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, or lease upon such terms 
     as the Secretary considers appropriate, to the Lowry 
     Redevelopment Authority (in this section referred to as the 
     ``Authority'') all right, title, and interest of the United 
     States in and to seven parcels of real property, including 
     any improvements thereon, consisting of approximately 23 
     acres at the former Lowry Air Force Base, Colorado, for the 
     purpose of permitting the Authority to use the property in 
     furtherance of economic development and other public 
     purposes.
       (b) Description of Property.--The exact acreage and legal 
     description of real property to be conveyed or leased under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Authority.
       (c) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with a conveyance or lease under subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2864. LAND CONVEYANCE, WRIGHT PATTERSON AIR FORCE BASE, 
                   OHIO.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to Greene County, Ohio (in 
     this section referred to as the ``County''), all right, 
     title, and interest of the United States in and to a parcel 
     of real property, including any improvements thereon, 
     consisting of approximately 92 acres comprising the 
     communications test annex at Wright Patterson Air Force Base, 
     Ohio, for the purpose of permitting the County to use the 
     parcel for recreational purposes.
       (b) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the County.
       (c) 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. 2865. MODIFICATION OF LAND CONVEYANCE, ELLSWORTH AIR 
                   FORCE BASE, SOUTH DAKOTA.

       (a) Change in Recipient.--Subsection (a) of section 2863 of 
     the Military Construction Authorization Act for Fiscal Year 
     1998 (division B of Public Law 105-85; 111 Stat. 2010) is 
     amended by striking ``Greater Box Elder Area Economic 
     Development Corporation, Box Elder, South Dakota (in this 
     section referred to as the `Corporation')'' and inserting 
     ``West River Foundation for Economic and Community 
     Development, Sturgis, South Dakota (in this section referred 
     to as the `Foundation')''.
       (b) Conforming Amendments.--Such section is further amended 
     by striking ``Corporation'' each place it appears in 
     subsections (c) and (e) and inserting ``Foundation''.

     SEC. 2866. LAND CONVEYANCE, MUKILTEO TANK FARM, EVERETT, 
                   WASHINGTON.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey, without consideration, to the Port of Everett, 
     Washington (in this section referred to as the ``Port''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including any improvements thereon, 
     consisting of approximately 22 acres and known as the 
     Mukilteo Tank Farm for the purpose of permitting the Port to 
     use the parcel for the development and operation of a port 
     facility and for other public purposes.
       (b) Personal Property.--The Secretary of the Air Force may 
     include as part of the conveyance authorized by subsection 
     (a) any personal property at the Mukilteo Tank Farm that is 
     excess to the needs of the Air Force if the Secretary of 
     Transportation determines that such personal property is 
     appropriate for the development or operation of the Mukilteo 
     Tank Farm as a port facility.
       (c) Interim Lease.--(1) Until such time as the real 
     property described in subsection (a) is conveyed by deed, the 
     Secretary of the Air Force may lease all or part of the real 
     property to the Port if the Secretary determines that the 
     real property is suitable for lease and the lease of the 
     property under this subsection will not interfere with any 
     environmental remediation activities or schedules under 
     applicable law or agreements.
       (2) The determination under paragraph (1) whether the lease 
     of the real property will interfere with environmental 
     remediation activities or schedules referred to in that 
     paragraph shall be based upon an environmental baseline 
     survey conducted in accordance with applicable Air Force 
     regulations and policy.
       (3) Except as provided by paragraph (4), as consideration 
     for the lease under this subsection, the Port shall pay the 
     Secretary an amount equal to the fair market of the lease, as 
     determined by the Secretary.
       (4) The amount of consideration paid by the Port for the 
     lease under this subsection may be an amount, as determined 
     by the Secretary, less than the fair market value of the 
     lease if the Secretary determines that--
       (A) the public interest will be served by an amount of 
     consideration for the lease that is less than the fair market 
     value of the lease; and
       (B) payment of an amount equal to the fair market value of 
     the lease is unobtainable.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary of the Air Force and the Port.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Air Force, in consultation with the Secretary of 
     Transportation, may require such additional terms and 
     conditions in connection with the conveyance under subsection 
     (a) as the Secretary of the Air Force considers appropriate 
     to protect the interests of the United States.

                       PART IV--OTHER CONVEYANCES

     SEC. 2871. LAND CONVEYANCE, ARMY AND AIR FORCE EXCHANGE 
                   SERVICE PROPERTY, FARMERS BRANCH, TEXAS.

       (a) Conveyance Authorized.--The Secretary of Defense may 
     authorize the Army and Air Force Exchange Service, which is a 
     nonappropriated fund instrumentality of the United States, to 
     sell all right, title, and interest of the United States in 
     and to a parcel of real property, including improvements 
     thereon, that is located at 2727 LBJ Freeway in Farmers 
     Branch, Texas.
       (b) Consideration.--As consideration for conveyance under 
     subsection (a), the purchaser shall pay, in a single lump sum 
     payment, an amount equal to the fair market value of the real 
     property conveyed, as determined by the Secretary. The 
     payment shall be handled in the manner provided in section 
     204(c) of the Federal Property and Administrative Services 
     Act of 1949 (40 U.S.C. 485(c)).
       (c) Congressional Report.--Within 30 days after the sale of 
     the property under subsection (a), the Secretary shall submit 
     to Congress a report detailing the particulars of the sale.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the purchaser.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2872. LAND CONVEYANCE, FORMER NATIONAL GROUND 
                   INTELLIGENCE CENTER, CHARLOTTESVILLE, VIRGINIA.

       (a) Conveyance Authorized.--The Administrator of General 
     Services may convey, without consideration, to the City of 
     Charlottesville, Virginia (in this section referred to as the 
     ``City''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, formerly occupied by the National 
     Ground Intelligence Center and known as the Jefferson Street 
     Property, for the purpose of permitting the City to use the 
     parcel, directly or through an agreement with a public or 
     private entity, for economic development purposes.
       (b) Authority To Convey Without Consideration.--The 
     conveyance authorized by subsection (a) may be made without 
     consideration if the Administrator determines that conveyance 
     on that basis would be in the best interests of the United 
     States.
       (c) Reversionary Interest.--During the five-year period 
     beginning on the date the Administrator makes the conveyance 
     authorized by subsection (a), if the Administrator determines 
     that the conveyed real property is not being used in 
     accordance with the purpose specified in such subsection, all 
     right, title, and interest in and to the property, including 
     any improvements thereon, may upon the election of the 
     Administrator revert to the United States, and upon such 
     reversion the United States shall have the right of immediate 
     entry onto the property.

[[Page 21482]]

       (d) Limitation on Certain Subsequent Conveyances.--(1) 
     Subject to paragraph (2), if at any time after the 
     Administrator makes the conveyance authorized by subsection 
     (a) the City conveys any portion of the parcel conveyed under 
     that subsection to a private entity, the City shall pay to 
     the United States an amount equal to--
       (A) the fair market value (as determined by the 
     Administrator) of the portion conveyed at the time of the 
     conveyance; less
       (B) the cost of any improvements to the property made by 
     the City.
       (2) Paragraph (1) applies to a conveyance described in such 
     paragraph only if the Administrator makes the conveyance 
     authorized by subsection (a) without consideration.
       (3) The Administrator shall deposit any amounts paid the 
     United States under this subsection into the fund established 
     by section 210(f) of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 490(f)). Any amounts so 
     deposited shall be available to the Administrator for real 
     property management and related activities as provided for 
     under paragraph (2) of such section.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Administrator. The cost of the survey shall be borne 
     by the City.
       (f) Additional Terms and Conditions.--The Administrator may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Administrator 
     considers appropriate to protect the interests of the United 
     States.
                       Subtitle E--Other Matters

     SEC. 2881. RELATION OF EASEMENT AUTHORITY TO LEASED PARKLAND, 
                   MARINE CORPS BASE, CAMP PENDLETON, CALIFORNIA.

       Section 2851 of the Military Construction Authorization Act 
     for Fiscal Year 1999 (division B of Public Law 105-261; 112 
     Stat. 2219) is amended by adding at the end the following new 
     subsection:
       ``(f) Exemption for Certain Leased Lands.--(1) Section 303 
     of title 49, and section 138 of title 23, United States Code, 
     shall not apply to any approval by the Secretary of 
     Transportation of the use by State Route 241 of parkland 
     within Camp Pendleton that is leased by the State of 
     California, where the lease reserved to the United States the 
     right to establish rights-of-way.
       ``(2) The Agency shall be responsible for the 
     implementation of any measures required by the Secretary of 
     Transportation to mitigate the impact of the Agency's use of 
     parkland within Camp Pendleton for State Route 241. With the 
     exception of those mitigation measures directly related to 
     park functions, the measures shall be located outside the 
     boundaries of Camp Pendleton. The required mitigation 
     measures related to park functions shall be implemented in 
     accordance with the terms of the lease referred to in 
     paragraph (1).''.

     SEC. 2882. EXTENSION OF DEMONSTRATION PROJECT FOR PURCHASE OF 
                   FIRE, SECURITY, POLICE, PUBLIC WORKS, AND 
                   UTILITY SERVICES FROM LOCAL GOVERNMENT 
                   AGENCIES.

       Section 816(c) of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2820), as 
     added by section 2873 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 2225), is amended by striking ``2000'' and 
     inserting ``2001''.

     SEC. 2883. ACCEPTANCE AND USE OF GIFTS FOR CONSTRUCTION OF 
                   THIRD BUILDING AT UNITED STATES AIR FORCE 
                   MUSEUM, WRIGHT-PATTERSON AIR FORCE BASE, OHIO.

       (a) Acceptance Authorized.--The Secretary of the Air Force 
     may accept from the Air Force Museum Foundation, a private 
     nonprofit foundation, gifts in the form of cash, Treasury 
     instruments, or comparable United States Government 
     securities for the purpose of paying the costs of design and 
     construction of a third building for the United States Air 
     Force Museum at Wright-Patterson Air Force Base, Ohio. The 
     terms of the gift may specify that all or a part of the 
     amount of the gift be utilized solely for purposes of the 
     design and construction of a particular portion of the 
     building.
       (b) Deposit in Escrow Account.--The Secretary, acting 
     through the Comptroller of the Air Force Materiel Command, 
     shall deposit the amount of any cash, instruments, or 
     securities accepted as a gift under subsection (a) in an 
     escrow account established for that purpose.
       (c) Investment.--Amounts in the escrow account under 
     subsection (b) not required to meet current requirements of 
     the account shall be invested in public debt securities with 
     maturities suitable to the needs of the account, as 
     determined by the Comptroller of the Air Force Materiel 
     Command, and bearing interest at rates that take into 
     consideration current market yields on outstanding marketable 
     obligations of the United States of comparable maturities. 
     The income on such investments shall be credited to and form 
     a part of the account.
       (d) Utilization.--(1) Amounts in the escrow account under 
     subsection (b), including any income on investments of such 
     amounts under subsection (c), that are attributable to a 
     particular portion of the building described in subsection 
     (a) shall be utilized by the Comptroller of the Air Force 
     Materiel Command to pay the costs of the design and 
     construction of such portion of the building, including 
     progress payments for such design and construction.
       (2) Subject to paragraph (3), amounts shall be payable 
     under paragraph (1) upon receipt by the Comptroller of the 
     Air Force Materiel Command of a notification from an 
     appropriate officer or employee of the Corps of Engineers 
     that such amounts are required for the timely payment of an 
     invoice or claim for the performance of design or 
     construction activities for which such amounts are payable 
     under paragraph (1).
       (3) The Comptroller of the Air Force Materiel Command 
     shall, to the maximum extent practicable consistent with good 
     business practice, limit payment of amounts from the account 
     in order to maximize the return on investment of amounts in 
     the account.
       (e) Limitation on Contracts.--The Corps of Engineers may 
     not enter into a contract for the design or construction of a 
     particular portion of the building described in subsection 
     (a) until amounts in the escrow account under subsection (b), 
     including any income on investments of such amounts under 
     subsection (c), that are attributable to such portion of the 
     building are sufficient to cover the amount of such contract.
       (f) Liquidation of Escrow Account.--Upon final payment of 
     all invoices and claims associated with the design and 
     construction of the building described in subsection (a), the 
     Secretary of the Air Force shall terminate the escrow account 
     under subsection (b). Any amounts in the account upon final 
     payment of invoices and claims shall be available to the 
     Secretary for such purposes as the Secretary considers 
     appropriate.

     SEC. 2884. DEVELOPMENT OF MARINE CORPS HERITAGE CENTER AT 
                   MARINE CORPS BASE, QUANTICO, VIRGINIA.

       (a) Authority To Enter into Joint Venture for 
     Development.--The Secretary of the Navy may enter into a 
     joint venture with the Marine Corps Heritage Foundation, a 
     not-for-profit entity, for the design and construction of a 
     multipurpose facility to be used for historical displays for 
     public viewing, curation, and storage of artifacts, research 
     facilities, classrooms, offices, and associated activities 
     consistent with the mission of the Marine Corps University. 
     The facility shall be known as the Marine Corps Heritage 
     Center.
       (b) Authority To Accept Certain Land.--(1) The Secretary 
     may, if the Secretary determines it to be necessary for the 
     facility described in subsection (a), accept without 
     compensation any portion of the land known as Locust Shade 
     Park which is now offered by the Park Authority of the County 
     of Prince William, Virginia, as a potential site for the 
     facility.
       (2) The Park Authority may convey the land described in 
     paragraph (1) to the Secretary under this section without 
     regard to any limitation on its use, or requirement for its 
     replacement upon conveyance, under section 6(f)(3) of the 
     Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-
     8(f)(3)) or under any other provision of law.
       (c) Design and Construction.--For each phase of development 
     of the facility described in subsection (a), the Secretary 
     may--
       (1) permit the Marine Corps Heritage Foundation to contract 
     for the design, construction, or both of such phase of 
     development; or
       (2) accept funds from the Marine Corps Heritage Foundation 
     for the design, construction, or both of such phase of 
     development.
       (d) Acceptance Authority.--Upon completion of construction 
     of any phase of development of the facility described in 
     subsection (a) by the Marine Corps Heritage Foundation to the 
     satisfaction of the Secretary, and the satisfaction of any 
     financial obligations incident thereto by the Marine Corps 
     Heritage Foundation, the facility shall become the property 
     of the Department of the Navy with all right, title, and 
     interest in and to facility being in the United States.
       (e) Lease of Facility.--(1) The Secretary may lease, under 
     such terms and conditions as the Secretary considers 
     appropriate for the joint venture authorized by subsection 
     (a), portions of the facility developed under that subsection 
     to the Marine Corps Heritage Foundation for use in generating 
     revenue for activities of the facility and for such 
     administrative purposes as may be necessary for support of 
     the facility.
       (2) The amount of consideration paid the Secretary by the 
     Marine Corps Heritage Foundation for the lease under 
     paragraph (1) may not exceed an amount equal to the actual 
     cost (as determined by the Secretary) of the operation of the 
     facility.
       (3) Notwithstanding any other provision of law, the 
     Secretary shall use amounts paid under paragraph (2) to cover 
     the costs of operation of the facility.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the joint venture authorized by subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2885. ACTIVITIES RELATING TO THE GREENBELT AT FALLON 
                   NAVAL AIR STATION, NEVADA.

       (a) In General.--The Secretary of the Navy shall, in 
     consultation with the Secretary of the Army acting through 
     the Chief of Engineers, carry out appropriate activities 
     after examination of the potential environmental and flight 
     safety ramifications for irrigation that has been eliminated, 
     or will be eliminated, for the greenbelt at Fallon Naval Air 
     Station, Nevada. Any activities carried out under the 
     preceding sentence shall be consistent with aircrew safety at 
     Fallon Naval Air Station.

[[Page 21483]]

       (b) Authorization of Appropriations.--There is hereby 
     authorized to be appropriated for operation and maintenance 
     for the Navy such sums as may be necessary to carry out the 
     activities required by subsection (a).

     SEC. 2886. ESTABLISHMENT OF WORLD WAR II MEMORIAL ON GUAM.

       (a) Establishment Required.--The Secretary of Defense shall 
     establish on Federal lands near the Fena Caves in Guam a 
     suitable memorial intended to honor those Guamanian civilians 
     who were killed during the occupation of Guam during World 
     War II and to commemorate the liberation of Guam by the 
     United States Armed Forces in 1944.
       (b) Maintenance of Memorial.--The Secretary of Defense 
     shall be responsible for the maintenance of the memorial 
     established pursuant to subsection (a).
       (c) Consultation.--In designing and building the memorial 
     and selecting the specific location for the memorial, the 
     Secretary of Defense shall consult with the American Battle 
     Monuments Commission established under chapter 21 of title 
     36, United States Code.

     SEC. 2887. NAMING OF ARMY MISSILE TESTING RANGE AT KWAJALEIN 
                   ATOLL AS THE RONALD REAGAN BALLISTIC MISSILE 
                   DEFENSE TEST SITE AT KWAJALEIN ATOLL.

       The United States Army missile testing range located at 
     Kwajalein Atoll in the Marshall Islands shall after the date 
     of the enactment of this Act be known and designated as the 
     ``Ronald Reagan Ballistic Missile Defense Test Site at 
     Kwajalein Atoll''. Any reference to that range in any law, 
     regulation, map, document, record, or other paper of the 
     United States shall be considered to be a reference to the 
     Ronald Reagan Ballistic Missile Defense Test Site at 
     Kwajalein Atoll.

     SEC. 2888. DESIGNATION OF BUILDING AT FORT BELVOIR, VIRGINIA, 
                   IN HONOR OF ANDREW T. MCNAMARA.

       The building at 8725 John J. Kingman Road, Fort Belvoir, 
     Virginia, shall be known and designated as the ``Andrew T. 
     McNamara Building''. Any reference to that building in any 
     law, regulation, map, document, record, or other paper of the 
     United States shall be considered to be a reference to the 
     Andrew T. McNamara Building.

     SEC. 2889. DESIGNATION OF BALBOA NAVAL HOSPITAL, SAN DIEGO, 
                   CALIFORNIA, IN HONOR OF BOB WILSON, A FORMER 
                   MEMBER OF THE HOUSE OF REPRESENTATIVES.

       The Balboa Naval Hospital in San Diego, California, shall 
     be known and designated as the ``Bob Wilson Naval Hospital''. 
     Any reference to the Balboa Naval Hospital in any law, 
     regulation, map, document, record, or other paper of the 
     United States shall be considered to be a reference to the 
     Bob Wilson Naval Hospital.

     SEC. 2890. SENSE OF CONGRESS REGARDING IMPORTANCE OF 
                   EXPANSION OF NATIONAL TRAINING CENTER, FORT 
                   IRWIN, CALIFORNIA.

       (a) Findings.--Congress makes the following findings:
       (1) The National Training Center at Fort Irwin, California, 
     is the Army's premier warfare training center.
       (2) The National Training Center was cited by General 
     Norman Schwarzkopf as being instrumental to the success of 
     the allied victory in the Persian Gulf conflict.
       (3) The National Training Center gives a military unit the 
     opportunity to use high-tech equipment and confront realistic 
     opposing forces in order to accurately discover the unit's 
     strengths and weaknesses.
       (4) The current size of the National Training Center is 
     insufficient in light of the advanced equipment and 
     technology required for modern warfare training.
       (5) The expansion of the National Training Center to 
     include additional lands would permit military units and 
     members of the Armed Forces to adequately prepare for future 
     conflicts and various warfare scenarios they may encounter 
     throughout the world.
       (6) Additional lands for the expansion of the National 
     Training Center are presently available in the California 
     desert.
       (7) The expansion of the National Training Center is a top 
     priority of the Army and the Office of the Secretary of 
     Defense.
       (b) Sense of Congress.--It is the sense of Congress that 
     the prompt expansion of the National Training Center is vital 
     to the national security interests of the United States.

     SEC. 2891. SENSE OF CONGRESS REGARDING LAND TRANSFERS AT 
                   MELROSE RANGE, NEW MEXICO, AND YAKIMA TRAINING 
                   CENTER, WASHINGTON.

       (a) Findings.--Congress makes the following findings:
       (1) The Secretary of the Air Force seeks the transfer of 
     6,713 acres of public domain land within the Melrose Range, 
     New Mexico, from the Department of the Interior to the 
     Department of the Air Force for the continued use of these 
     lands as a military range.
       (2) The Secretary of the Army seeks the transfer of 6,640 
     acres of public domain land within the Yakima Training 
     Center, Washington, from the Department of the Interior to 
     the Department of the Army for military training purposes.
       (3) The transfers provide the Department of the Air Force 
     and the Department of the Army with complete land management 
     control of these public domain lands to allow for effective 
     land management, minimize safety concerns, and ensure 
     meaningful training.
       (4) The Department of the Interior concurs with the land 
     transfers at Melrose Range and Yakima Training Center.
       (b) Sense of Congress.--It is the sense of Congress that 
     the land transfers at Melrose Range, New Mexico, and Yakima 
     Training Center, Washington, will support military training, 
     safety, and land management concerns on the lands subject to 
     transfer.
 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 general plant 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. Transfers of defense environmental management funds.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Funding for termination costs of River Protection Project, 
              Richland, Washington.
Sec. 3132. Enhanced cooperation between National Nuclear Security 
              Administration and Ballistic Missile Defense 
              Organization.
Sec. 3133. Reprogramming of funds available for infrastructure upgrades 
              or maintenance in certain accounts of the National 
              Nuclear Security Administration.
Sec. 3134. Adjustment of composite theoretical performance levels for 
              post-shipment verification reports on advanced 
              supercomputer sales to certain foreign nations.
Sec. 3135. Modification of counterintelligence polygraph program.
Sec. 3136. Employee incentives for employees at closure project 
              facilities.
Sec. 3137. Continuation of processing, treatment, and disposition of 
              legacy nuclear materials.
Sec. 3138. Contingent limitation on use of certain funds pending 
              certifications of compliance with Formerly Utilized Sites 
              Remedial Action Program funding prohibition.
Sec. 3139. Conceptual design for Subsurface Geosciences Laboratory at 
              Idaho National Engineering and Environmental Laboratory, 
              Idaho Falls, Idaho.
Sec. 3140. Report on National Ignition Facility, Lawrence Livermore 
              National Laboratory, Livermore, California.
Sec. 3141. River Protection Project, Richland, Washington.
Sec. 3142. Report on tank waste remediation system, Hanford 
              Reservation, Richland, Washington.

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

Sec. 3151. Term of office of person first appointed as Under Secretary 
              for Nuclear Security of the Department of Energy.
Sec. 3152. Membership of Under Secretary for Nuclear Security on the 
              Joint Nuclear Weapons Council.
Sec. 3153. Organization plan for field offices of the National Nuclear 
              Security Administration.
Sec. 3154. Required contents of future-years nuclear security program.
Sec. 3155. Future-years nuclear security program for fiscal year 2001.
Sec. 3156. Engineering and manufacturing research, development, and 
              demonstration by plant managers of certain nuclear 
              weapons production plants.
Sec. 3157. Prohibition on individuals engaging in concurrent service or 
              duties within National Nuclear Security Administration 
              and outside that Administration but within Department of 
              Energy.
Sec. 3158. Annual plan for obligation of funds of the National Nuclear 
              Security Administration.
Sec. 3159. Authority to reorganize National Nuclear Security 
              Administration.

       Subtitle E--National Laboratories Partnership Improvement

Sec. 3161. Technology Infrastructure Pilot Program.
Sec. 3162. Report on small business participation in National Nuclear 
              Security Administration activities.
Sec. 3163. Study and report related to improving mission effectiveness, 
              partnerships, and technology transfer at national 
              security laboratories and nuclear weapons production 
              facilities.

[[Page 21484]]

Sec. 3164. Report on effectiveness of National Nuclear Security 
              Administration technology development partnerships with 
              non-Federal entities.
Sec. 3165. Definitions.

    Subtitle F--Matters Relating to Defense Nuclear Nonproliferation

Sec. 3171. Annual report on status of Nuclear Materials Protection, 
              Control, and Accounting Program.
Sec. 3172. Nuclear Cities Initiative.
Sec. 3173. Department of Energy nonproliferation monitoring.
Sec. 3174. Sense of Congress on the need for coordination of 
              nonproliferation programs.
Sec. 3175. Limitation on use of funds for International Nuclear Safety 
              Program.

                       Subtitle G--Other Matters

Sec. 3191. Extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3192. Biennial report containing update on nuclear test readiness 
              postures.
Sec. 3193. Frequency of reports on inadvertent releases of Restricted 
              Data and Formerly Restricted Data.
Sec. 3194. Form of certifications regarding the safety or reliability 
              of the nuclear weapons stockpile.
Sec. 3195. Authority to provide certificate of commendation to 
              Department of Energy and contractor employees for 
              exemplary service in stockpile stewardship and security.
Sec. 3196. Cooperative research and development agreements for 
              government-owned, contractor-operated laboratories.
Sec. 3197. Office of Arctic Energy.
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2001 for the activities 
     of the National Nuclear Security Administration in carrying 
     out programs necessary for national security in the amount of 
     $6,422,356,000, to be allocated as follows:
       (1) Weapons activities.--For weapons activities, 
     $4,840,289,000, to be allocated as follows:
       (A) For stewardship, $4,505,545,000, to be allocated as 
     follows:
       (i) For directed stockpile work, $862,603,000.
       (ii) For campaigns, $2,054,014,000, to be allocated as 
     follows:

       (I) For operation and maintenance, $1,639,682,000.
       (II) For construction, $414,332,000, to be allocated as 
     follows:

       Project 01-D-101, distributed information systems 
     laboratory, Sandia National Laboratories, Livermore, 
     California, $2,300,000.
       Project 00-D-103, terascale simulation facility, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $5,000,000.
       Project 00-D-105, strategic computing complex, Los Alamos 
     National Laboratory, Los Alamos, New Mexico, $56,000,000.
       Project 00-D-107, joint computational engineering 
     laboratory, Sandia National Laboratories, Albuquerque, New 
     Mexico, $6,700,000.
       Project 98-D-125, tritium extraction facility, Savannah 
     River Plant, Aiken, South Carolina, $75,000,000.
       Project 98-D-126, accelerator production of tritium, 
     various locations, $25,000,000.
       Project 97-D-102, dual-axis radiographic hydrotest 
     facility, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $35,232,000.
       Project 96-D-111, national ignition facility (NIF), 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $209,100,000.
       (iii) For readiness in technical base and facilities, 
     $1,588,928,000, to be allocated as follows:

       (I) For operation and maintenance, $1,429,087,000.
       (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), $159,841,000, to be allocated as follows:

       Project 01-D-103, preliminary project design and 
     engineering, various locations, $14,500,000.
       Project 01-D-124, highly enriched uranium (HEU) materials 
     storage facility, Y-12 Plant, Oak Ridge, Tennessee, 
     $17,800,000.
       Project 01-D-126, weapons evaluation test laboratory, 
     Pantex Plant, Amarillo, Texas, $3,000,000.
       Project 99-D-103, isotope sciences facilities, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $5,000,000.
       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, $5,200,000.
       Project 99-D-108, renovate existing roadways, Nevada Test 
     Site, Nevada, $2,000,000.
       Project 99-D-125, replace boilers and controls, Kansas City 
     Plant, Kansas City, Missouri, $13,000,000.
       Project 99-D-127, stockpile management restructuring 
     initiative, Kansas City plant, Kansas City, Missouri, 
     $23,765,000.
       Project 99-D-128, stockpile management restructuring 
     initiative, Pantex Plant, Amarillo, Texas, $4,998,000.
       Project 99-D-132, stockpile management restructuring 
     initiative, nuclear material safeguards and security upgrades 
     project, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $18,043,000.
       Project 98-D-123, stockpile management restructuring 
     initiative, tritium facility modernization and consolidation, 
     Savannah River Plant, Aiken, South Carolina, $30,767,000.
       Project 97-D-123, structural upgrades, Kansas City Plant, 
     Kansas City, Missouri, $2,918,000.
       Project 95-D-102, chemistry and metallurgy research (CMR) 
     upgrades project, Los Alamos National Laboratory, Los Alamos, 
     New Mexico, $13,337,000.
       Project 88-D-123, security enhancements, Pantex Plant, 
     Amarillo, Texas, $2,713,000.
       (B) For secure transportation asset, $115,673,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $79,357,000.
       (ii) For program direction, $36,316,000.
       (C) For program direction, $219,071,000.
       (2) Defense nuclear nonproliferation.--For other nuclear 
     security activities, $877,467,000, to be allocated as 
     follows:
       (A) For nonproliferation and verification research and 
     development, $252,990,000, to be allocated as follows:
       (i) For operation and maintenance, $245,990,000.
       (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), $7,000,000, to be allocated as follows:

       Project 00-D-192, nonproliferation and international 
     security center (NISC), Los Alamos National Laboratory, Los 
     Alamos, New Mexico, $7,000,000.

       (B) For arms control, $320,560,000, to be allocated as 
     follows:
       (i) For arms control operations, $285,370,000.
       (ii) For highly enriched uranium transparency 
     implementation, $15,190,000.
       (iii) For international nuclear safety, $20,000,000.
       (C) For fissile materials control and disposition, 
     $252,449,000, to be allocated as follows:
       (i) For operation and maintenance, $175,517,000.
       (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), $76,932,000, to be allocated as follows:

       Project 01-D-407, highly enriched uranium blend-down, 
     Savannah River Site, Aiken, South Carolina, $27,932,000.
       Project 00-D-142, immobilization and associated processing 
     facility (Title I and II design), Savannah River Site, Aiken, 
     South Carolina, $3,000,000.
       Project 99-D-141, pit disassembly and conversion facility 
     (Title I and II design), Savannah River Site, Aiken, South 
     Carolina, $20,000,000.
       Project 99-D-143, mixed oxide fuel fabrication facility 
     (Title I and II design), Savannah River Site, Aiken, South 
     Carolina, $26,000,000.

       (D) For program direction, $51,468,000.
       (3) Naval reactors.--For naval reactors, $694,600,000, to 
     be allocated as follows:
       (A) For naval reactors development, $673,200,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $644,500,000.
       (ii) For general plant projects, $11,400,000.
       (iii) 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), $17,300,000, to be allocated as follows:

       Project 01-D-200, major office replacement building, 
     Schenectady, New York, $1,300,000.

       Project 90-N-102, expended core facility dry cell project, 
     Naval Reactors Facility, Idaho, $16,000,000.

       (B) For program direction, $21,400,000.
       (4) Office of Administrator for Nuclear Security.--For the 
     Office of the Administrator for Nuclear Security, for program 
     direction, $10,000,000.

     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 2001 for environmental restoration and 
     waste management activities in carrying out programs 
     necessary for national security in the amount of 
     $6,058,009,000, 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), $1,082,297,000
       (2) Site/project completion.--For site completion and 
     project completion in carrying out environmental management 
     activities necessary for national security programs, 
     $941,719,000, to be allocated as follows:
       (A) For operation and maintenance, $900,175,000.
       (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), 
     $41,544,000, to be allocated as follows:
       Project 01-D-402, Intec cathodic protection system 
     expansion, Idaho National Engineering and Environmental 
     Laboratory, Idaho Falls, Idaho, $500,000.
       Project 99-D-402, tank farm support services, F&H areas, 
     Savannah River Site, Aiken, South Carolina, $7,714,000.
       Project 99-D-404, health physics instrumentation 
     laboratory, Idaho National Engineering

[[Page 21485]]

     and Environmental Laboratory, Idaho Falls, Idaho, $4,300,000.
       Project 98-D-453, plutonium stabilization and handling 
     system for plutonium finishing plant, Richland, Washington, 
     $1,690,000.
       Project 97-D-470, regulatory monitoring and bioassay 
     laboratory, Savannah River Site, Aiken, South Carolina, 
     $3,949,000.
       Project 96-D-471, chlorofluorocarbon heating, ventilation, 
     and air conditioning and chiller retrofit, Savannah River 
     Site, Aiken, South Carolina, $12,512,000.
       Project 92-D-140, F&H canyon exhaust upgrades, Savannah 
     River Site, Aiken, South Carolina, $8,879,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $2,000,000.
       (3) Post-2006 completion.--For post-2006 completion in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs, 
     $3,432,457,000, to be allocated as follows:
       (A) For operation and maintenance, $2,691,106,000.
       (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), 
     $27,212,000, to be allocated as follows:I26  Project 93-D-
     187, high-level waste removal from filled waste tanks, 
     Savannah River Site, Aiken, South Carolina, $27,212,000.
       (C) For the Office of River Protection in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs, $714,139,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $309,619,000.
       (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), $404,520,000, to be allocated as follows:

       Project 01-D-416, Tank Waste Remediation System 
     privatization phase I, Richland, Washington, $332,000,000.
       Project 01-D-403, immobilized high-level waste interim 
     storage facility, Richland, Washington, $1,300,000.
       Project 99-D-403, privatization phase I infrastructure 
     support, Richland, Washington, $7,812,000.
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $46,023,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $17,385,000.

       (4) Science and technology development.--For science and 
     technology development in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs, $246,548,000.
       (5) Program direction.--For program direction in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs, $354,988,000.
       (b) Adjustment.--The total amount authorized to be 
     appropriated by subsection (a) is the sum of the amounts 
     authorized to be appropriated by paragraphs (1) through (5) 
     of that subsection, reduced by $84,317,000, to be derived 
     from offsets and use of prior year balances.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 2001 
     for other defense activities in carrying out programs 
     necessary for national security in the amount of 
     $543,822,000, to be allocated as follows:
       (1) Intelligence.--For intelligence, $38,059,000, to be 
     allocated as follows:
       (A) For operation and maintenance, $36,059,000.
       (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), 
     $2,000,000, to be allocated as follows:
       Project 01-D-800, Sensitive compartmented information 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $2,000,000.
       (2) Counterintelligence.--For counterintelligence, 
     $45,200,000.
       (3) Security and emergency operations.--For security and 
     emergency operations, $284,076,000, to be allocated as 
     follows:
       (A) For nuclear safeguards and security, $124,409,000.
       (B) For security investigations, $33,000,000.
       (C) For emergency management, $37,300,000.
       (D) For program direction, $89,367,000.
       (4) Independent oversight and performance assurance.--For 
     independent oversight and performance assurance, $14,937,000.
       (5) Environment, safety, and health.--For the Office of 
     Environment, Safety, and Health, $134,050,000, to be 
     allocated as follows:
       (A) For environment, safety, and health (defense), 
     $86,446,000.
       (B) For the Energy Employees Occupational Illness 
     Compensation initiative, $25,000,000.
       (C) For program direction, $22,604,000.
       (6) Worker and community transition assistance.--For worker 
     and community transition assistance, $24,500,000, to be 
     allocated as follows:
       (A) For worker and community transition, $21,500,000.
       (B) For program direction, $3,000,000.
       (7) Office of hearings and appeals.--For the Office of 
     Hearings and Appeals, $3,000,000.
       (b) Adjustments.--The amount authorized to be appropriated 
     pursuant to subsection (a)(3)(B) is reduced by $20,000,000 to 
     reflect an offset provided by user organizations for security 
     investigations.

     SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

       (a) In General.--Funds are hereby authorized to be 
     appropriated to the Department of Energy for fiscal year 2001 
     for privatization initiatives in carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs in the amount of $90,092,000, to 
     be allocated as follows:
       Project 98-PVT-2, spent nuclear fuel dry storage, Idaho 
     Falls, Idaho, $25,092,000.
       Project 97-PVT-2, advanced mixed waste treatment project 
     Idaho Falls, Idaho, $65,000,000.
       (b) Explanation of Adjustment.--The amount authorized to be 
     appropriated pursuant to subsection (a) is the sum of the 
     amounts authorized to be appropriated for the projects in 
     that subsection reduced by $90,092,000 for use of prior year 
     balances of funds for defense environmental management 
     privatization.

     SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2001 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 $112,000,000.
                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) $ 1,000,000 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 GENERAL PLANT PROJECTS.

       (a) In General.--The Secretary of Energy may carry out any 
     construction project under the general plant projects 
     authorized by this title if the total estimated cost of the 
     construction project does not exceed $5,000,000.
       (b) Report to Congress.--If, at any time during the 
     construction of any general plant project authorized by this 
     title, the estimated cost of the project is revised because 
     of unforeseen cost variations and the revised cost of the 
     project exceeds $5,000,000, the Secretary shall immediately 
     furnish a report to the congressional defense committees 
     explaining the reasons for the cost variation.

     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 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.
       (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.

[[Page 21486]]

       (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 section 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 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 and construction design 
     under sections 3101, 3102, and 3103, 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 
     2002.

     SEC. 3129. TRANSFERS 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) Only one transfer may be made to or 
     from any program or project under subsection (a) in a fiscal 
     year.
       (2) The amount transferred to or from a program or project 
     under subsection (a) may not exceed $5,000,000 in a fiscal 
     year.
       (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.
       (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, 2000, and ending on September 30, 2001.
   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. FUNDING FOR TERMINATION COSTS OF RIVER PROTECTION 
                   PROJECT, RICHLAND, WASHINGTON.

       The Secretary of Energy may not use appropriated funds to 
     establish a reserve for the payment of any costs of 
     termination of any contract relating to the River Protection 
     Project, Richland, Washington (as designated by section 
     3141), that is terminated after the date of the enactment of 
     this Act. Such costs may be paid from--
       (1) appropriations originally available for the performance 
     of the contract concerned;
       (2) appropriations currently available for privatization 
     initiatives in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs, and not otherwise obligated; or
       (3) funds appropriated specifically for the payment of such 
     costs.

     SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION AND BALLISTIC MISSILE 
                   DEFENSE ORGANIZATION.

       (a) Jointly Funded Projects.--The Secretary of Energy and 
     the Secretary of Defense shall modify the memorandum of 
     understanding for the use of the national laboratories for 
     ballistic missile defense programs, entered into under 
     section 3131 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2034; 10 
     U.S.C. 2431 note), to provide for jointly funded projects.
       (b) Requirements for Projects.--The projects referred to in 
     subsection (a) shall--
       (1) be carried out by the National Nuclear Security 
     Administration and the Ballistic Missile Defense 
     Organization; and
       (2) contribute to sustaining--
       (A) the expertise necessary for the viability of such 
     laboratories; and
       (B) the capabilities required to sustain the nuclear 
     stockpile.
       (c) Participation by NNSA in Certain BMDO Activities.--The 
     Administrator for Nuclear Security and the Director of the 
     Ballistic Missile Defense Organization shall implement 
     mechanisms that increase the cooperative relationship between 
     those organizations. Those mechanisms may include 
     participation by personnel of the National Nuclear Security 
     Administration in the following activities of the Ballistic 
     Missile Defense Organization:
       (1) Peer reviews of technical efforts.
       (2) Activities of so-called ``red teams''.

     SEC. 3133. REPROGRAMMING OF FUNDS AVAILABLE FOR 
                   INFRASTRUCTURE UPGRADES OR MAINTENANCE IN 
                   CERTAIN ACCOUNTS OF THE NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION.

       (a) Limitation.--(1) Except as provided in paragraph (2), 
     the Secretary of Energy may not use amounts appropriated or 
     otherwise made available to the Secretary for fiscal year 
     2001 for the purpose of infrastructure upgrades or 
     maintenance in an account specified in subsection (b) for any 
     other purpose.
       (2) Paragraph (1) does not apply to a particular amount for 
     the purpose of a particular infrastructure upgrade or 
     maintenance project if the Secretary--
       (A) determines that that project is not needed by reason of 
     a change to, or cancellation of, a

[[Page 21487]]

     program for which that project was intended to be used; and
       (B) submits to the congressional defense committees the 
     report referred to in subsection (c) and a period of 45 days 
     elapses after the date on which such committees receive such 
     report.
       (b) Covered Accounts.--An account referred to in subsection 
     (a) is any Construction account or Readiness in Technical 
     Base and Facilities account within any National Nuclear 
     Security Administration budget account.
       (c) Report.--(1) The report referred to in subsection 
     (a)(2)(B) is a report containing a full and complete 
     statement of--
       (A) the determination of the Secretary under subsection 
     (a)(2)(A); and
       (B) the action proposed to be taken with the particular 
     amount concerned and the facts and circumstances relied upon 
     in support of such proposed action.
       (2) In the computation of the 45-day period under 
     subsection (a)(2)(B), there shall be excluded any day on 
     which either House of Congress is not in session because of 
     an adjournment of more than three days to a day certain.
       (d) Coordination With General Reprogramming Report.--If the 
     Secretary, in accordance with this section, submits a report 
     referred to in subsection (c) for the use of a particular 
     amount, that report shall be treated, for purposes of section 
     3121, as the report referred to in subsection (b) of that 
     section for that use of that amount.

     SEC. 3134. ADJUSTMENT OF COMPOSITE THEORETICAL PERFORMANCE 
                   LEVELS FOR POST-SHIPMENT VERIFICATION REPORTS 
                   ON ADVANCED SUPERCOMPUTER SALES TO CERTAIN 
                   FOREIGN NATIONS.

       Section 3157 of the National Defense Authorization Act for 
     Fiscal Year 1998 (50 U.S.C. App. 2404 note) is amended by 
     adding at the end the following new subsection:
       ``(e) Adjustment of Performance Levels.--Whenever a new 
     composite theoretical performance level is established under 
     section 1211(d), that level shall apply for the purposes of 
     subsection (a) of this section in lieu of the level set forth 
     in subsection (a).''.

     SEC. 3135. MODIFICATION OF COUNTERINTELLIGENCE POLYGRAPH 
                   PROGRAM.

       (a) Covered Persons.--Subsection (b) of 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; 113 Stat. 941; 42 U.S.C. 
     7383h) is amended to read as follows:
       ``(b) Covered Persons.--(1) Subject to paragraph (2), for 
     purposes of this section, a covered person is one of the 
     following:
       ``(A) An officer or employee of the Department.
       ``(B) An expert or consultant under contract to the 
     Department.
       ``(C) An officer or employee of a contractor of the 
     Department.
       ``(D) An individual assigned or detailed to the Department.
       ``(E) An applicant for a position in the Department.
       ``(2) A person described in paragraph (1) is a covered 
     person for purposes of this section only if the position of 
     the person, or for which the person is applying, under that 
     paragraph is a position in one of the categories of positions 
     listed in section 709.4(a) of title 10, Code of Federal 
     Regulations.''.
       (b) High-Risk Programs.--Subsection (c) of that section is 
     amended to read as follows:
       ``(c) High-Risk Programs.--For purposes of this section, 
     high-risk programs are the following:
       ``(1) Programs using information known as Sensitive 
     Compartmented Information.
       ``(2) The programs known as Special Access Programs and 
     Personnel Security and Assurance Programs.
       ``(3) Any other program or position category specified in 
     section 709.4(a) of title 10, Code of Federal Regulations.''.
       (c) Authority To Waive Examination Requirement.--Subsection 
     (d) of that section is amended--
       (1) by inserting ``(1)'' before ``The Secretary''; and
       (2) by adding at the end the following new paragraphs:
       ``(2) Subject to paragraph (3), the Secretary may, after 
     consultation with appropriate security personnel, waive the 
     applicability of paragraph (1) to a covered person--
       ``(A) if--
       ``(i) the Secretary determines that the waiver is important 
     to the national security interests of the United States;
       ``(ii) the covered person has an active security clearance; 
     and
       ``(iii) the covered person acknowledges in a signed writing 
     that the capacity of the covered person to perform duties 
     under a high-risk program after the expiration of the waiver 
     is conditional upon meeting the requirements of paragraph (1) 
     within the effective period of the waiver;
       ``(B) if another Federal agency certifies to the Secretary 
     that the covered person has completed successfully a full-
     scope or counterintelligence-scope polygraph examination 
     during the 5-year period ending on the date of the 
     certification; or
       ``(C) if the Secretary determines, after consultation with 
     the covered person and appropriate medical personnel, that 
     the treatment of a medical or psychological condition of the 
     covered person should preclude the administration of the 
     examination.
       ``(3)(A) The Secretary may not commence the exercise of the 
     authority under paragraph (2) to waive the applicability of 
     paragraph (1) to any covered persons until 15 days after the 
     date on which the Secretary submits to the appropriate 
     committees of Congress a report setting forth the criteria to 
     be used by the Secretary for determining when a waiver under 
     paragraph (2)(A) is important to the national security 
     interests of the United States. The criteria shall not 
     include the need to maintain the scientific vitality of the 
     laboratory. The criteria shall include an assessment of 
     counterintelligence risks and programmatic impacts.
       ``(B) Any waiver under paragraph (2)(A) shall be effective 
     for not more than 120 days, and a person who is subject to a 
     waiver under paragraph (2)(A) may not ever be subject to 
     another waiver under paragraph (2)(A).
       ``(C) Any waiver under paragraph (2)(C) shall be effective 
     for the duration of the treatment on which such waiver is 
     based.
       ``(4) The Secretary shall submit to the appropriate 
     committees of Congress on a semi-annual basis a report on any 
     determinations made under paragraph (2)(A) during the 6-month 
     period ending on the date of such report. The report shall 
     include a national security justification for each waiver 
     resulting from such determinations.
       ``(5) In this subsection, the term `appropriate committees 
     of Congress' means the following:
       ``(A) The Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate.
       ``(B) The Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.
       ``(6) It is the sense of Congress that the waiver authority 
     in paragraph (2) not be used by the Secretary to exempt from 
     the applicability of paragraph (1) any covered persons in the 
     highest risk categories, such as persons who have access to 
     the most sensitive weapons design information and other 
     highly sensitive programs, including special access programs.
       ``(7) The authority under paragraph (2) to waive the 
     applicability of paragraph (1) to a covered person shall 
     expire on September 30, 2002.''.
       (d) Scope of Counterintelligence Polygraph Examination.--
     Subsection (f) of that section is amended--
       (1) by inserting ``terrorism,'' after ``sabotage,''; and
       (2) by inserting ``deliberate damage to or malicious misuse 
     of a United States Government information or defense 
     system,'' before ``and''.

     SEC. 3136. EMPLOYEE INCENTIVES FOR EMPLOYEES AT CLOSURE 
                   PROJECT FACILITIES.

       (a) Authority to Provide Incentives.--Notwithstanding any 
     other provision of law, the Secretary of Energy may provide 
     to any eligible employee of the Department of Energy one or 
     more of the incentives described in subsection (d).
       (b) Eligible Employees.--An individual is an eligible 
     employee of the Department of Energy for purposes of this 
     section if the individual--
       (1) has worked continuously at a closure facility for at 
     least two years;
       (2) is an employee (as that term is defined in section 
     2105(a) of title 5, United States Code);
       (3) has a fully satisfactory or equivalent performance 
     rating during the most recent performance period and is not 
     subject to an adverse notice regarding conduct; and
       (4) meets any other requirement or condition under 
     subsection (d) for the incentive which is provided the 
     employee under this section.
       (c) Closure Facility Defined.--For purposes of this 
     section, the term ``closure facility'' means a Department of 
     Energy facility at which the Secretary is carrying out a 
     closure project selected under section 3143 of the National 
     Defense Authorization Act for Fiscal Year 1997 (42 U.S.C. 
     7274n).
       (d) Incentives.--The incentives that the Secretary may 
     provide under this section are the following:
       (1) The right to accumulate annual leave provided by 
     section 6303 of title 5, United States Code, for use in 
     succeeding years until it totals not more than 90 days, or 
     not more than 720 hours based on a standard work week, at the 
     beginning of the first full biweekly pay period, or 
     corresponding period for an employee who is not paid on the 
     basis of biweekly pay periods, occurring in a year, except 
     that--
       (A) any annual leave that remains unused when an employee 
     transfers to a position in a department or agency of the 
     Federal Government shall be liquidated upon the transfer by 
     payment to the employee of a lump sum for leave in excess of 
     30 days, or in excess of 240 hours based on a standard work 
     week; and
       (B) upon separation from service, annual leave accumulated 
     under this paragraph shall be treated as any other 
     accumulated annual leave is treated.
       (2) The right to be paid a retention allowance in a lump 
     sum in compliance with paragraphs (1) and (2) of section 
     5754(b) of title 5, United States Code, if the employee meets 
     the requirements of section 5754(a) of that title, except 
     that the retention allowance may exceed 25 percent, but may 
     not be more than 30 percent, of the employee's rate of basic 
     pay.
       (e) Agreement.--An eligible employee of the Department of 
     Energy provided an incentive under this section shall enter 
     into an agreement with the Secretary to remain employed at 
     the closure facility at which the employee is employed as of 
     the date of the agreement until a specific date or for a 
     specific period of time.
       (f) Violation of Agreement.--(1) Except as provided under 
     paragraph (3), an eligible employee of the Department of 
     Energy who violates an agreement under subsection (e), or is

[[Page 21488]]

     dismissed for cause, shall forfeit eligibility for any 
     incentives under this section as of the date of the violation 
     or dismissal, as the case may be.
       (2) Except as provided under paragraph (3), an eligible 
     employee of the Department of Energy who is paid a retention 
     allowance under subsection (d)(2) and who violates an 
     agreement under subsection (e), or is dismissed for cause, 
     before the end of the period or date of employment agreed 
     upon under such agreement shall refund to the United States 
     an amount that bears the same ratio to the aggregate amount 
     so paid to or received by the employee as the unserved part 
     of such employment bears to the total period of employment 
     agreed upon under such agreement.
       (3) The Secretary may waive the applicability of paragraph 
     (1) or (2) to an employee otherwise covered by such paragraph 
     if the Secretary determines that there is good and sufficient 
     reason for the waiver.
       (g) Report.--The Secretary shall include in each report on 
     a closure project under section 3143(h) of the National 
     Defense Authorization Act for Fiscal Year 1997 a report on 
     the incentives, if any, provided under this section with 
     respect to the project for the period covered by such report.
       (h) Authority With Respect to Health Coverage.--Section 
     8905a(d)(5)(A) of title 5, United States Code (as added by 
     section 1106 of the Veterans Millennium Health Care and 
     Benefits Act (Public Law 106-117; 113 Stat. 1598)), is 
     amended by inserting after ``readjustment'' the following: 
     ``, or a voluntary or involuntary separation from a 
     Department of Energy position at a Department of Energy 
     facility at which the Secretary is carrying out a closure 
     project selected under section 3143 of the National Defense 
     Authorization Act for Fiscal Year 1997 (42 U.S.C. 7274n)''.
       (i) Authority With Respect to Voluntary Separations.--(1) 
     The Secretary may--
       (A) separate from service any employee at a Department of 
     Energy facility at which the Secretary is carrying out a 
     closure project selected under section 3143 of the National 
     Defense Authorization Act for Fiscal Year 1997 (42 U.S.C. 
     7274n) who volunteers to be separated under this subparagraph 
     even though the employee is not otherwise subject to 
     separation due to a reduction in force; and
       (B) for each employee voluntarily separated under 
     subparagraph (A), retain an employee in a similar position 
     who would otherwise be separated due to a reduction in force.
       (2) The separation of an employee under paragraph (1)(A) 
     shall be treated as an involuntary separation due to a 
     reduction in force.
       (3) An employee with critical knowledge and skills (as 
     defined by the Secretary) may not participate in a voluntary 
     separation under paragraph (1)(A) if the Secretary determines 
     that such participation would impair the performance of the 
     mission of the Department of Energy.
       (j) Termination.--The authority to provide incentives under 
     this section terminates on March 31, 2007.

     SEC. 3137. CONTINUATION OF PROCESSING, TREATMENT, AND 
                   DISPOSITION OF LEGACY NUCLEAR MATERIALS.

       (a) Continuation.--The Secretary of Energy shall continue 
     operations and maintain a high state of readiness at the F-
     canyon and H-canyon facilities at the Savannah River Site, 
     Aiken, South Carolina, and shall provide technical staff 
     necessary to operate and so maintain such facilities.
       (b) Limitation on Use of Funds for Decommissioning of F-
     Canyon Facility.--No amounts authorized to be appropriated or 
     otherwise made available for the Department of Energy by this 
     or any other Act may be obligated or expended for purposes of 
     commencing the decommissioning of the F-canyon facility at 
     the Savannah River Site until the Secretary and the Defense 
     Nuclear Facilities Safety Board jointly submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives the 
     following:
       (1) A certification that all materials present in the F-
     canyon facility as of the date of the certification are 
     safely stabilized.
       (2) A certification whether or not the requirements 
     applicable to the F-canyon facility to meet the future needs 
     of the United States for fissile materials disposition can be 
     met through full use of the H-canyon facility at the Savannah 
     River Site.
       (3) If the certification required by paragraph (2) is that 
     such requirements cannot be met through such use of the H-
     canyon facility--
       (A) an identification by the Secretary of each such 
     requirement that cannot be met through such use of the H-
     canyon facility; and
       (B) for each requirement identified in subparagraph (A), 
     the reasons why that requirement cannot be met through such 
     use of the H-canyon facility and a description of the 
     alternative capability for fissile materials disposition that 
     is needed to meet that requirement.
       (c) Plan for Transfer of Long-Term Chemical Separation 
     Activities.--Not later than February 15, 2001, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a plan for the transfer of all long-term 
     chemical separation activities at the Savannah River Site 
     from the F-canyon facility to the H-canyon facility 
     commencing in fiscal year 2002.

     SEC. 3138. CONTINGENT LIMITATION ON USE OF CERTAIN FUNDS 
                   PENDING CERTIFICATIONS OF COMPLIANCE WITH 
                   FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM 
                   FUNDING PROHIBITION.

       (a) Contingent Limitation on Availability of Funds for 
     Certain Travel Expenses.--Effective November 1, 2001, but 
     subject to subsection (b), no funds authorized to be 
     appropriated or otherwise made available by this or any other 
     Act for the Department of Energy or the Department of the 
     Army may be obligated or expended for travel by--
       (1) the Secretary of Energy or any officer or employee of 
     the Office of the Secretary of Energy; or
       (2) the Chief of Engineers.
       (b) Effective Date.--The limitation in subsection (a) shall 
     not take effect if before November 1, 2001, both of the 
     following certifications are submitted to the congressional 
     defense committees:
       (1) A certification by the Secretary of Energy that the 
     Department of Energy is in compliance with the requirements 
     of section 3131 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 925; 10 U.S.C. 
     2701 note).
       (2) A certification by the Chief of Engineers that the 
     Corps of Engineers is in compliance with the requirements of 
     that section.
       (c) Termination.--If the limitation in subsection (a) takes 
     effect, the limitation shall cease to be in effect when both 
     certifications referred to in subsection (b) have been 
     submitted to the congressional defense committees.

     SEC. 3139. CONCEPTUAL DESIGN FOR SUBSURFACE GEOSCIENCES 
                   LABORATORY AT IDAHO NATIONAL ENGINEERING AND 
                   ENVIRONMENTAL LABORATORY, IDAHO FALLS, IDAHO.

       (a) Authorization.--Of the amounts authorized to be 
     appropriated by paragraphs (2) and (3) of section 3102(a), 
     not more than $400,000 may be available to the Secretary of 
     Energy for purposes of carrying out a conceptual design for a 
     Subsurface Geosciences Laboratory at Idaho National 
     Engineering and Environmental Laboratory, Idaho Falls, Idaho.
       (b) Limitation.--None of the funds authorized to be 
     appropriated by subsection (a) may be obligated until 60 days 
     after the date on which the Secretary submits the report 
     required by subsection (c).
       (c) Report.--The Secretary of Energy shall submit to the 
     congressional defense committees a report on the proposed 
     Subsurface Geosciences Laboratory. The report shall include 
     the following:
       (1) Whether there is a need to conduct mesoscale 
     experiments to meet long-term clean-up requirements at 
     Department of Energy sites.
       (2) The possibility of using or modifying an existing 
     structure or facility to house a new capability for 
     conducting mesoscale experiments.
       (3) The estimated construction cost of the facility.
       (4) The estimated annual operating cost of the facility.
       (5) How the facility will use, integrate, and support the 
     technical expertise, capabilities, and requirements at other 
     Department of Energy and non-Department of Energy facilities.
       (6) An analysis of costs, savings, and benefits which are 
     unique to the Idaho National Engineering and Environmental 
     Laboratory.

     SEC. 3140. REPORT ON NATIONAL IGNITION FACILITY, LAWRENCE 
                   LIVERMORE NATIONAL LABORATORY, LIVERMORE, 
                   CALIFORNIA.

       (a) New Baseline.--(1) Not more than 50 percent of the 
     funds available for the national ignition facility (Project 
     96-D-111) may be obligated or expended until the 
     Administrator for Nuclear Security submits to the Committees 
     on Armed Services of the Senate and House of Representatives 
     a report setting forth a new baseline plan for the completion 
     of the national ignition facility.
       (2) The report shall include--
       (A) the funding required for completion of the facility, 
     set forth in detail, year by year; and
       (B) projected dates for the completion of program 
     milestones, including the date on which the first laser beams 
     are expected to become operational.
       (b) Comptroller General Review of NIF Program.--(1) The 
     Comptroller General shall conduct a thorough review of the 
     national ignition facility program.
       (2) Not later than March 31, 2001, the Comptroller General 
     shall submit to the Committees on Armed Services of the 
     Senate and House of Representatives a report on the review 
     conducted under paragraph (1). The report shall include the 
     following:
       (A) An analysis of--
       (i) the role of the national ignition facility in ensuring 
     the safety and reliability of the nuclear stockpile of the 
     United States;
       (ii) the relationship of the national ignition facility 
     program to other significant programs to sustain the nuclear 
     stockpile of the United States; and
       (iii) the potential effect of delays in the national 
     ignition facility program, and of a failure to complete 
     significant program objectives of the program, on the other 
     significant programs to sustain the nuclear stockpile of the 
     United States, such as the Accelerated Strategic Computing 
     Initiative Program.
       (B) A detailed description and analysis of the funds spent 
     as of the date of the report on the national ignition 
     facility program.
       (C) An assessment whether the new baseline plan for the 
     national ignition facility program submitted under subsection 
     (a) includes clear goals for that program, adequate and 
     sustainable funding, and achievable milestones for that 
     program.

[[Page 21489]]



     SEC. 3141. RIVER PROTECTION PROJECT, RICHLAND, WASHINGTON.

       (a) Redesignation of Project.--The tank waste remediation 
     system environmental project, Richland, Washington, including 
     all programs relating to the retrieval and treatment of tank 
     waste at the site at Hanford, Washington, under the 
     management of the Office of River Protection, shall be known 
     and designated as the ``River Protection Project''. Any 
     reference to that project in any law, regulation, map, 
     document, record, or other paper of the United States shall 
     be considered to be a reference to the River Protection 
     Project.
       (b) Management and Responsibility of Office of River 
     Protection.--Subsection (b) of section 3139 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261; 112 Stat. 2250) is amended--
       (1) in paragraph (2), by striking ``managing all aspects of 
     the'' and all that follows through the period and inserting 
     ``managing, consistent with the policy direction established 
     by the Department, all aspects of the River Protection 
     Project, Richland, Washington.''; and
       (2) by adding at the end the following new paragraph:
       ``(3)(A) The Assistant Secretary of Energy for 
     Environmental Management shall delegate in writing 
     responsibility for the management of the River Protection 
     Project, Richland, Washington, to the head of the Office.
       ``(B) Such delegation shall include, at a minimum, 
     authorities for contracting, financial management, safety, 
     and general program management that are equivalent to the 
     authorities of managers of other operations offices of the 
     Department of Energy.
       ``(C) The head of the Office shall, to the maximum extent 
     possible, coordinate all activities of the Office with the 
     manager of the Richland Operations Office of the Department 
     of Energy.''.
       (c) Department Responsibilities.--Subsection (c) of such 
     section is amended--
       (1) by striking ``manager'' and inserting ``head''; and
       (2) by striking ``to manage'' and all that follows through 
     the period and inserting ``to carry out the responsibilities 
     specified in subsection (b)(2).''.
       (d) Reporting to Congress.--Subsection (d) of such section 
     is amended to read as follows:
       ``(d) Report.--The Assistant Secretary of Energy for 
     Environmental Management shall submit to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives, not later than 30 
     days after the date of the enactment of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001, a 
     copy of the delegation of authority required by subsection 
     (b)(3).''.

     SEC. 3142. REPORT ON TANK WASTE REMEDIATION SYSTEM, HANFORD 
                   RESERVATION, RICHLAND, WASHINGTON.

       Not later than December 15, 2000, the Secretary of Energy 
     shall submit to Congress a report on the Tank Waste 
     Remediation System project, Hanford Reservation, Richland, 
     Washington. The report shall include the following:
       (1) A proposed plan for processing and stabilizing all 
     nuclear waste located in the Hanford Tank Farm.
       (2) A proposed schedule for carrying out that proposed 
     plan.
       (3) The total estimated cost of carrying out that proposed 
     plan.
       (4) A description of any alternative options to that 
     proposed plan and a description of the costs and benefits of 
     each such option.
       (5) A description of the volumes and characteristics of any 
     wastes or materials that are not to be treated during phase 
     1(B) of the project.
       (6) A plan for developing, demonstrating, and implementing 
     advanced vitrification system technologies that can be used 
     to treat and stabilize any out-of-specification wastes or 
     materials (such as polychlorinated biphenyls) that cannot be 
     treated and stabilized with the technologies that are to be 
     used during phase 1(B) of the project.
Subtitle D--Matters Relating to Management of National Nuclear Security 
                             Administration

     SEC. 3151. TERM OF OFFICE OF PERSON FIRST APPOINTED AS UNDER 
                   SECRETARY FOR NUCLEAR SECURITY OF THE 
                   DEPARTMENT OF ENERGY.

       (a) Length of Term.--The term of office as Under Secretary 
     for Nuclear Security of the Department of Energy of the 
     person first appointed to that position shall be three years.
       (b) Exclusive Reasons for Removal.--The exclusive reasons 
     for removal from office as Under Secretary for Nuclear 
     Security of the person described in subsection (a) shall be 
     inefficiency, neglect of duty, or malfeasance in office.
       (c) Position Described.--The position of Under Secretary 
     for Nuclear Security of the Department of Energy referred to 
     in this section is the position established by subsection (c) 
     of section 202 of the Department of Energy Organization Act 
     (42 U.S.C. 7132), as added by section 3202 of the National 
     Nuclear Security Administration Act (title XXXII of Public 
     Law 106-65; 113 Stat. 954).

     SEC. 3152. MEMBERSHIP OF UNDER SECRETARY FOR NUCLEAR SECURITY 
                   ON THE JOINT NUCLEAR WEAPONS COUNCIL.

       (a) Membership.--Section 179 of title 10, United States 
     Code, is amended--
       (1) in subsection (a), by striking paragraph (3) and 
     inserting the following new paragraph (3):
       ``(3) The Under Secretary for Nuclear Security of the 
     Department of Energy.''; and
       (2) in subsection (b)(2), by striking ``the representative 
     designated under subsection (a)(3)'' and inserting ``the 
     Under Secretary for Nuclear Security of the Department of 
     Energy''.
       (b) Conforming Amendment.--Section 3212 of the National 
     Nuclear Security Administration Act (title XXXII of Public 
     Law 106-65; 113 Stat. 957; 50 U.S.C. 2402) is amended by 
     adding at the end the following new subsection:
       ``(e) Membership on Joint Nuclear Weapons Council.--The 
     Administrator serves as a member of the Joint Nuclear Weapons 
     Council under section 179 of title 10, United States Code.''.

     SEC. 3153. ORGANIZATION PLAN FOR FIELD OFFICES OF THE 
                   NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Plan Required.--Not later than May 1, 2001, the 
     Administrator for Nuclear Security shall submit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives a plan for 
     assigning roles and responsibilities to and among the 
     headquarters and field organizational units of the National 
     Nuclear Security Administration.
       (b) Plan Elements.--The plan shall include the following:
       (1) A general description of the organizational structure 
     of the administrative functions of the National Nuclear 
     Security Administration under the plan, including the 
     authorities and responsibilities to be vested in the units of 
     the headquarters, operations offices, and area offices of the 
     Administration.
       (2) A description of any downsizing, elimination, or 
     consolidation of units of the headquarters, operations 
     offices, and area offices of the Administration that may be 
     necessary to enhance the efficiency of the Administration.
       (3) A description of the modifications of staffing levels 
     of the headquarters, operations offices, and area offices of 
     the Administration, including any reductions in force, 
     employment of additional personnel, or realignments of 
     personnel, that are necessary to implement the plan.
       (4) A schedule for the implementation of the plan.
       (c) Included Facilities.--The plan shall address any 
     administrative units in the National Nuclear Security 
     Administration, including units in and under the following:
       (1) The Department of Energy Headquarters, Washington, 
     District of Columbia, metropolitan area.
       (2) The Albuquerque Operations Office, Albuquerque, New 
     Mexico.
       (3) The Nevada Operations Office, Las Vegas, Nevada.
       (4) The Oak Ridge Operations Office, Oak Ridge, Tennessee.
       (5) The Oakland Operations Office, Oakland, California.
       (6) The Savannah River Operations Office, Aiken, South 
     Carolina.
       (7) The Los Alamos Area Office, Los Alamos, New Mexico.
       (8) The Kirtland Area Office, Albuquerque, New Mexico.
       (9) The Amarillo Area Office, Amarillo, Texas.
       (10) The Kansas City Area Office, Kansas City, Missouri.

     SEC. 3154. REQUIRED CONTENTS OF FUTURE-YEARS NUCLEAR SECURITY 
                   PROGRAM.

       (a) Contents Required.--Subsection (b) of section 3253 of 
     the National Nuclear Security Administration Act (title XXXII 
     of Public Law 106-65; 113 Stat. 966; 50 U.S.C. 2453) is 
     amended--
       (1) by striking paragraph (1);
       (2) by redesignating paragraph (2) as paragraph (4); and
       (3) by inserting before paragraph (4) (as redesignated by 
     paragraph (2)) the following new paragraphs:
       ``(1) A detailed description of the program elements (and 
     the projects, activities, and construction projects 
     associated with each such program element) during the 
     applicable five-fiscal year period for at least each of the 
     following:
       ``(A) For defense programs--
       ``(i) directed stockpile work;
       ``(ii) campaigns;
       ``(iii) readiness in technical base and facilities; and
       ``(iv) secure transportation asset.
       ``(B) For defense nuclear nonproliferation--
       ``(i) nonproliferation and verification, research, and 
     development;
       ``(ii) arms control; and
       ``(iii) fissile materials disposition.
       ``(C) For naval reactors, naval reactors operations and 
     maintenance.
       ``(2) A statement of proposed budget authority, estimated 
     expenditures, and proposed appropriations necessary to 
     support each program element specified pursuant to paragraph 
     (1).
       ``(3) A detailed description of how the funds identified 
     for each program element specified pursuant to paragraph (1) 
     in the budget for the Administration for each fiscal year 
     during that five-fiscal year period will help ensure that the 
     nuclear weapons stockpile is safe and reliable, as determined 
     in accordance with the criteria established under section 
     3158 of the Strom Thurmond National Defense Authorization Act 
     for Fiscal Year 1999 (42 U.S.C. 2121 note).''.
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) by striking subsection (c);
       (2) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively; and
       (3) in subsection (d), as so redesignated, by striking 
     ``subsection (d)'' and inserting ``subsection (c)''.

[[Page 21490]]



     SEC. 3155. FUTURE-YEARS NUCLEAR SECURITY PROGRAM FOR FISCAL 
                   YEAR 2001.

       (a) Program Required.--(1) Without regard to any future-
     years nuclear security program submitted before the date of 
     the enactment of this Act, the Administrator for Nuclear 
     Security shall submit to the congressional defense committees 
     a future-years nuclear security program (including associated 
     annexes) for fiscal year 2001 and the five succeeding fiscal 
     years.
       (2) The program shall reflect the estimated expenditures 
     and proposed appropriations included in the budget for fiscal 
     year 2001 that was submitted to Congress under section 
     1105(a) of title 31, United States Code.
       (b) Program Detail.--The level of detail of the program 
     submitted under subsection (a) shall be equivalent to the 
     level of detail in the Project Baseline Summary system of the 
     Department of Energy, if practicable, but in no event below 
     the following:
       (1) In the case of directed stockpile work, detail as 
     follows:
       (A) Stockpile research and development.
       (B) Stockpile maintenance.
       (C) Stockpile evaluation.
       (D) Dismantlement and disposal.
       (E) Production support.
       (F) Field engineering, training, and manuals.
       (2) In the case of campaigns, detail as follows:
       (A) Primary certification.
       (B) Dynamic materials properties.
       (C) Advanced radiography.
       (D) Secondary certification and nuclear system margins.
       (E) Enhanced surety.
       (F) Weapons system engineering certification.
       (G) Certification in hostile environments.
       (H) Enhanced surveillance.
       (I) Advanced design and production technologies.
       (J) Inertial confinement fusion (ICF) ignition and high 
     yield.
       (K) Defense computing and modeling.
       (L) Pit manufacturing readiness.
       (M) Secondary readiness.
       (N) High explosive readiness.
       (O) Nonnuclear readiness.
       (P) Materials readiness.
       (Q) Tritium readiness.
       (3) In the case of readiness in technical base and 
     facilities, detail as follows:
       (A) Operation of facilities.
       (B) Program readiness.
       (C) Special projects.
       (D) Materials recycle and recovery.
       (E) Containers.
       (F) Storage.
       (4) In the case of secure transportation assets, detail as 
     follows:
       (A) Operation and maintenance.
       (B) Program direction relating to transportation.
       (5) Program direction.
       (6) Construction (listed by project number).
       (7) In the case of safeguards and security, detail as 
     follows:
       (A) Operation and maintenance.
       (B) Construction.
       (c) Deadline for Submittal.--The future-years nuclear 
     security program required by subsection (a) shall be 
     submitted not later than November 1, 2000.
       (d) Limitation on Use of Funds Pending Submittal.--Not more 
     than 65 percent of the funds appropriated pursuant to the 
     authorization of appropriations in section 3101(a)(1)(C) or 
     otherwise made available made available to the Department of 
     Energy for fiscal year 2001 for program direction in carrying 
     out weapons activities may be obligated or expended until 45 
     days after the date on which the Administrator for Nuclear 
     Security submits to the congressional defense committees the 
     program required by subsection (a).

     SEC. 3156. ENGINEERING AND MANUFACTURING RESEARCH, 
                   DEVELOPMENT, AND DEMONSTRATION BY PLANT 
                   MANAGERS OF CERTAIN NUCLEAR WEAPONS PRODUCTION 
                   PLANTS.

       (a) Authority for Programs at Nuclear Weapons Productions 
     Facilities.--The Administrator for Nuclear Security shall 
     authorize the head of each nuclear weapons production 
     facility to establish an Engineering and Manufacturing 
     Research, Development, and Demonstration Program under this 
     section.
       (b) Projects and Activities.--The projects and activities 
     carried out through the program at a nuclear weapons 
     production facility under this section shall support 
     innovative or high-risk design and manufacturing concepts and 
     technologies with potentially high payoff for the nuclear 
     weapons complex. Those projects and activities may include--
       (1) replacement of obsolete or aging design and 
     manufacturing technologies;
       (2) development of innovative agile manufacturing 
     techniques and processes; and
       (3) training, recruitment, or retention of essential 
     personnel in critical engineering and manufacturing 
     disciplines.
       (c) Funding.--The Administrator may authorize the head of 
     each nuclear weapons production facility to obligate up to 
     $3,000,000 of funds within the Advanced Design and Production 
     Technologies Campaign available for such facility during 
     fiscal year 2001 to carry out projects and activities of the 
     program under this section at that facility.
       (d) Report.--The Administrator for Nuclear Security shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives, not later than September 15, 2001, a report 
     describing, for each nuclear weapons production facility, 
     each project or activity for which funds were obligated under 
     the program, the criteria used in the selection of each such 
     project or activity, the potential benefits of each such 
     project or activity, and the Administrator's recommendation 
     concerning whether the program should be continued.
       (e) Definition.--For purposes of this section, the term 
     ``nuclear weapons production facility'' has the meaning given 
     that term in section 3281(2) of the National Nuclear Security 
     Administration Act (title XXXII of Public Law 106-65; 113 
     Stat. 968; 50 U.S.C. 2471(2)).

     SEC. 3157. PROHIBITION ON INDIVIDUALS ENGAGING IN CONCURRENT 
                   SERVICE OR DUTIES WITHIN NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION AND OUTSIDE THAT 
                   ADMINISTRATION BUT WITHIN DEPARTMENT OF ENERGY.

       Section 3213 of the National Nuclear Security 
     Administration Act (title XXXII of Public Law 106-65; 113 
     Stat. 958; 50 U.S.C. 2403) is amended--
       (1) in subsection (a), by striking ``Administration,'' and 
     all that follows through ``function of the'';
       (2) in subsection (b), by striking ``, in carrying out any 
     function of the Administration,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Prohibition on Dual Office Holding.--Except in 
     accordance with sections 3212(a)(2) and 3216(a)(1):
       ``(1) An individual may not concurrently hold or carry out 
     the responsibilities of--
       ``(A) a position within the Administration; and
       ``(B) a position within the Department of Energy not within 
     the Administration.
       ``(2) No funds appropriated or otherwise made available for 
     any fiscal year may be used to pay, to an individual who 
     concurrently holds or carries out the responsibilities of a 
     position specified in paragraph (1)(A) and a position 
     specified in paragraph (1)(B), the basic pay, salary, or 
     other compensation relating to any such position.''.

     SEC. 3158. ANNUAL PLAN FOR OBLIGATION OF FUNDS OF THE 
                   NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Plan Required.--Section 3252 of the National Nuclear 
     Security Administration Act (title XXXII of Public Law 106-
     65; 113 Stat. 966; 50 U.S.C. 2452) is amended--
       (1) by inserting ``(a) Procedures Required.--'' before 
     ``The Administrator shall''; and
       (2) by adding at the end the following new subsections:
       ``(b) Annual Plan for Obligation of Funds.--(1) Each year, 
     the Administrator shall prepare a plan for the obligation of 
     the amounts that, in the President's budget submitted to 
     Congress that year under section 1105(a) of title 31, United 
     States Code, are proposed to be appropriated for the 
     Administration for the fiscal year that begins in that year 
     (in this section referred to as the `budget year') and the 
     two succeeding fiscal years.
       ``(2) For each program element and construction line item 
     of the Administration, the plan shall provide the goal of the 
     Administration for the obligation of those amounts for that 
     element or item for each fiscal year of the plan, expressed 
     as a percentage of the total amount proposed to be 
     appropriated in that budget for that element or item.
       ``(c) Submission of Plan and Report.--The Administrator 
     shall submit to Congress each year, at or about the time that 
     the President's budget is submitted to Congress under section 
     1105(a) of title 31, United States Code, each of the 
     following:
       ``(1) The plan required by subsection (b) prepared with 
     respect to that budget.
       ``(2) A report on the plans prepared with respect to the 
     preceding years' budgets, which shall include, for each goal 
     provided in those plans--
       ``(A) the assessment of the Administrator as to whether or 
     not that goal was met; and
       ``(B) if that assessment is that the goal was not met--
       ``(i) the reasons why that goal was not met; and
       ``(ii) the plan of the Administrator for meeting or, if 
     necessary, adjusting that goal.''.
       (b) Effective Date of Requirement to Assess Prior Plan.--
     The first report submitted under paragraph (2) of subsection 
     (c) of such section (as added by subsection (a)) shall be the 
     report on the plan prepared with respect to the budget 
     submitted in calendar year 2001.
       (c) GAO Report.--Not later than March 15, 2001, the 
     Comptroller General shall submit to the congressional defense 
     committees an assessment of the adequacy of the planning, 
     programming, and budgeting processes of the National Nuclear 
     Security Administration.

     SEC. 3159. AUTHORITY TO REORGANIZE NATIONAL NUCLEAR SECURITY 
                   ADMINISTRATION.

       (a) Reorganization Authority.--Section 3212 of the National 
     Nuclear Security Administration Act (title XXXII of Public 
     Law 106-65; 113 Stat. 957; 50 U.S.C. 2402) is amended by 
     adding at the end the following new subsection:
       ``(e) Reorganization Authority.--Except as provided by 
     subsections (b) and (c) of section 3291:
       ``(1) The Administrator may establish, abolish, alter, 
     consolidate, or discontinue any organizational unit or 
     component of the Administration, or transfer any function of 
     the Administration.
       ``(2) Such authority does not apply to the abolition of 
     organizational units or components established by law or the 
     transfer of functions

[[Page 21491]]

     vested by law in any organizational unit or component.''.
       (b) Conforming Amendments.--Section 643 of the Department 
     of Energy Organization Act (42 U.S.C. 7253) is amended--
       (1) by striking ``The Secretary'' and inserting ``(a) 
     Except as provided in subsection (b), the Secretary''; and
       (2) by adding at the end the following new subsection:
       ``(b) The authority of the Secretary under subsection (a) 
     does not apply to the National Nuclear Security 
     Administration. The corresponding authority that applies to 
     the Administration is set forth in section 3212(e) of the 
     National Nuclear Security Administration Act.''.
       Subtitle E--National Laboratories Partnership Improvement

     SEC. 3161. TECHNOLOGY INFRASTRUCTURE PILOT PROGRAM.

       (a) Establishment.--The Administrator for Nuclear Security 
     shall establish a Technology Infrastructure Pilot Program in 
     accordance with this section.
       (b) Purpose.--The purpose of the program shall be to 
     explore new methods of collaboration and improvements in the 
     management and effectiveness of collaborative programs 
     carried out by the national security laboratories and nuclear 
     weapons production facilities in partnership with private 
     industry and institutions of higher education and to improve 
     the ability of those laboratories and facilities to support 
     missions of the Administration.
       (c) Funding.--(1) Except as provided in paragraph (2), 
     funding shall be available for the pilot program only to the 
     extent of specific authorizations and appropriations enacted 
     after the date of the enactment of this Act.
       (2) From amounts available in fiscal years 2001 and 2002 
     for technology partnership programs of the Administration, 
     the Administrator may allocate to carry out the pilot program 
     not more than $5,000,000.
       (d) Project Requirements.--A project may not be approved 
     for the pilot program unless the project meets the following 
     requirements:
       (1) The participants in the project include--
       (A) a national security laboratory or nuclear weapons 
     production facility; and
       (B) one or more of the following:
       (i) A business.
       (ii) An institution of higher education.
       (iii) A nonprofit institution.
       (iv) An agency of a State, local, or tribal government.
       (2)(A) Not less than 50 percent of the costs of the project 
     are to be provided by non-Federal sources.
       (B)(i) The calculation of the amount of the costs of the 
     project provided by non-Federal sources shall include cash, 
     personnel, services, equipment, and other resources expended 
     on the project.
       (ii) No funds or other resources expended before the start 
     of the project or outside the project's scope of work may be 
     credited toward the costs provided by non-Federal sources to 
     the project.
       (3) The project (other than in the case of a project under 
     which the participating laboratory or facility receives 
     funding under this section) shall be competitively selected 
     by that laboratory or facility using procedures determined to 
     be appropriate by the Administrator.
       (4) No Federal funds shall be made available under this 
     section for--
       (A) construction; or
       (B) any project for more than five years.
       (e) Selection Criteria.--(1) The projects selected for the 
     pilot program shall--
       (A) stimulate the development of technology expertise and 
     capabilities in private industry and institutions of higher 
     education that can support the nuclear weapons and nuclear 
     nonproliferation missions of the national security 
     laboratories and nuclear weapons production facilities on a 
     continuing basis;
       (B) improve the ability of those laboratories and 
     facilities benefit from commercial research, technology, 
     products, processes, and services that can support the 
     nuclear weapons and nuclear nonproliferation missions of 
     those laboratories and facilities on a continuing basis; and
       (C) encourage the exchange of scientific and technological 
     expertise between those laboratories and facilities and--
       (i) institutions of higher education;
       (ii) technology-related business concerns;
       (iii) nonprofit institutions; and
       (iv) agencies of State, tribal, or local governments;
     that can support the missions of those laboratories and 
     facilities.
       (2) The Administrator may authorize the provision of 
     Federal funds for a project under this section only if the 
     director of the laboratory or facility managing the project 
     determines that the project is likely to improve the ability 
     of that laboratory or facility to achieve technical success 
     in meeting nuclear weapons and nuclear nonproliferation 
     missions of the Administration.
       (3) The Administrator shall require the director of the 
     laboratory or facility to consider the following criteria in 
     selecting a project to receive Federal funds:
       (A) The potential of the project to succeed, based on its 
     technical merit, team members, management approach, 
     resources, and project plan.
       (B) The potential of the project to promote the development 
     of a commercially sustainable technology, determined by 
     considering whether the project will derive sufficient demand 
     for its products or services from the private sector to 
     support the nuclear weapons and nuclear nonproliferation 
     missions of the participating laboratory or facility on a 
     continuing basis.
       (C) The potential of the project to promote the use of 
     commercial research, technology, products, processes, and 
     services by the participating laboratory or facility to 
     achieve its nuclear weapons and nuclear nonproliferation 
     missions.
       (D) The commitment shown by non-Federal organizations to 
     the project, based primarily on the nature and amount of the 
     financial and other resources they will risk on the project.
       (E) The extent to which the project involves a wide variety 
     and number of institutions of higher education, nonprofit 
     institutions, and technology-related business concerns that 
     can support the nuclear weapons and nuclear nonproliferation 
     missions of the participating laboratory or facility on a 
     continuing basis and that will make substantive contributions 
     to achieving the goals of the project.
       (F) The extent of participation in the project by agencies 
     of State, tribal, or local governments that will make 
     substantive contributions to achieving the goals of the 
     project.
       (G) The extent to which the project focuses on promoting 
     the development of technology-related business concerns that 
     are small business concerns or involves small business 
     concerns substantively in the project.
       (f) Implementation Plan.--No funds may be allocated for the 
     pilot program until 30 days after the date on which the 
     Administrator submits to the congressional defense committees 
     a plan for the implementation of the pilot program. The plan 
     shall, at a minimum--
       (1) identify the national security laboratories and nuclear 
     weapons production facilities that have been designated by 
     the Administrator to participate in the pilot program; and
       (2) with respect to each laboratory or facility identified 
     under paragraph (1)--
       (A) identify the businesses, institutions of higher 
     education, nonprofit institutions, and agencies of State, 
     local, or tribal government that are expected to participate 
     in the pilot program at that laboratory or facility;
       (B) identify the technology areas to be addressed by the 
     pilot program at that laboratory or facility and the manner 
     in which the pilot program will support high-priority 
     missions of that laboratory or facility on a continuing 
     basis; and
       (C) describe the management controls that have been put 
     into place to ensure that the pilot program as conducted at 
     that laboratory or facility is conducted in a cost-effective 
     manner consistent with the objectives of the pilot program.
       (g) Report on Implementation.--(1) Not later than February 
     1, 2002, the Administrator shall submit to the congressional 
     defense committees a report on the implementation and 
     management of the pilot program. The report shall take into 
     consideration the results of the pilot program to date and 
     the views of the directors of the participating laboratories 
     and facilities. The report shall include any recommendations 
     the Administrator may have concerning the future of the pilot 
     program.
       (2) Not later than 30 days after the date on which the 
     Administrator submits the report required by paragraph (1), 
     the Comptroller General shall submit to the congressional 
     defense committees a report containing the Comptroller 
     General's assessment of that report.

     SEC. 3162. REPORT ON SMALL BUSINESS PARTICIPATION IN NATIONAL 
                   NUCLEAR SECURITY ADMINISTRATION ACTIVITIES.

       (a) Report Required.--Not later than February 15, 2001, the 
     Administrator for Nuclear Security shall submit to the 
     congressional defense committees a report on small business 
     participation in the activities of the National Nuclear 
     Security Administration.
       (b) Contents of Report.--The report shall include the 
     following:
       (1) A description of the scope and nature of the efforts of 
     the National Nuclear Security Administration as of the date 
     of the enactment of this Act to encourage or increase 
     participation of small business concerns in procurements, 
     collaborative research, technology licensing, and technology 
     transfer activities carried out by the national security 
     laboratories or nuclear weapons production facilities.
       (2) An assessment of the effectiveness of those efforts in 
     securing products and services of value to those laboratories 
     and facilities.
       (3) Recommendations on how to improve those efforts.
       (4) An identification of legislative changes required to 
     implement those recommendations.

     SEC. 3163. STUDY AND REPORT RELATED TO IMPROVING MISSION 
                   EFFECTIVENESS, PARTNERSHIPS, AND TECHNOLOGY 
                   TRANSFER AT NATIONAL SECURITY LABORATORIES AND 
                   NUCLEAR WEAPONS PRODUCTION FACILITIES.

       (a) Study and Report Required.--The Secretary of Energy 
     shall direct the Secretary of Energy Advisory Board to study 
     and to submit to the Secretary not later than one year after 
     the date of the enactment of this Act a report regarding the 
     following topics:
       (1) The advantages and disadvantages of providing the 
     Administrator for Nuclear Security with authority, 
     notwithstanding the limitations otherwise imposed by the 
     Federal Acquisition Regulation, to enter into transactions 
     with public agencies, private organizations, or individuals 
     on terms the Administrator considers appropriate to the 
     furtherance of basic, applied, and advanced research 
     functions. The Advisory Board shall consider, in its 
     assessment of this

[[Page 21492]]

     authority, the management history of the Department of Energy 
     and the effect of this authority on the National Nuclear 
     Security Administration's use of contractors to operate the 
     national security laboratories.
       (2) The advantages and disadvantages of establishing and 
     implementing policies and procedures to facilitate the 
     transfer of scientific, technical, and professional personnel 
     among national security laboratories and nuclear weapons 
     production facilities.
       (3) The advantages and disadvantages of making changes in--
       (A) the indemnification requirements for patents or other 
     intellectual property licensed from a national security 
     laboratory or nuclear weapons production facility;
       (B) the royalty and fee schedules and types of compensation 
     that may be used for patents or other intellectual property 
     licensed to a small business concern from a national security 
     laboratory or nuclear weapons production facility;
       (C) the licensing procedures and requirements for patents 
     and other intellectual property;
       (D) the rights given to a small business concern that has 
     licensed a patent or other intellectual property from a 
     national security laboratory or nuclear weapons production 
     facility to bring suit against third parties infringing such 
     intellectual property;
       (E) the advance funding requirements for a small business 
     concern funding a project at a national security laboratory 
     or nuclear weapons production facility through a funds-in 
     agreement;
       (F) the intellectual property rights allocated to a 
     business when it is funding a project at a national security 
     laboratory or nuclear weapons production facility through a 
     funds-in agreement; and
       (G) policies on royalty payments to inventors employed by a 
     contractor operating a national security laboratory or 
     nuclear weapons production facility, including those for 
     inventions made under a funds-in agreement.
       (b) Definition of Funds-In Agreement.--For the purposes of 
     this section, the term ``funds-in agreement'' means a 
     contract between the Department and a non-Federal 
     organization under which that organization pays the 
     Department to provide a service or material not otherwise 
     available in the domestic private sector.
       (c) Submission to Congress.--Not later than one month after 
     receiving the report under subsection (a), the Secretary 
     shall submit to Congress that report, along with the 
     Secretary's recommendations for action and proposals for 
     legislation to implement the recommendations.

     SEC. 3164. REPORT ON EFFECTIVENESS OF NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION TECHNOLOGY DEVELOPMENT 
                   PARTNERSHIPS WITH NON-FEDERAL ENTITIES.

       (a) Report Required.--The Administrator for Nuclear 
     Security shall submit to Congress, not later than March 1, 
     2001, a report on the efficiency and effectiveness with which 
     the National Nuclear Security Administration and its 
     laboratories and facilities carry out technology development 
     activities in partnership with non-Federal entities, 
     including cooperative research and development agreements. 
     The report shall include an examination of the following 
     matters with respect to the carrying out of those activities:
       (1) Funding sources available to and used by the 
     Administration.
       (2) Types of legal instruments used by the Administration, 
     and the extent to which they are used.
       (3) Procedures used for selection of participants.
       (4) Intellectual property licensing and royalty provisions.
       (5) New technologies developed.
       (6) The extent to which those new technologies have--
       (A) commercial utility; and
       (B) utility to the nuclear weapons and nuclear 
     nonproliferation missions of the Administration.
       (b) Additional Requirements for Cooperative Research and 
     Development Agreements.--(1) The report required by 
     subsection (a) shall include a section providing the 
     following with respect to cooperative research and 
     development agreements:
       (A) An assessment of the advantages and disadvantages of 
     such agreements.
       (B) Any recommendations of the Administrator regarding the 
     use of such agreements by the Administration in the future, 
     including any appropriate funding levels.
       (C) Any recommendations of the Administrator regarding 
     legislation to make such agreements more effective in 
     supporting the Administration's core nuclear weapons and 
     nuclear non-proliferation missions.
       (2) In this subsection, the term ``cooperative research and 
     development agreement'' has the meaning given such term in 
     section 12(d)(1) of the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3710a(d)(1)).
       (c) GAO Review.--The Comptroller General shall submit to 
     Congress, within 30 days after the submission of the report 
     required by subsection (a), a report containing the 
     Comptroller General's assessment of that report.

     SEC. 3165. DEFINITIONS.

       For purposes of this subtitle, the terms ``national 
     security laboratory'' and ``nuclear weapons production 
     facility'' have the meanings given such terms in section 3281 
     of the National Nuclear Security Administration Act (title 
     XXXII of Public Law 106-65; 113 Stat. 968; 50 U.S.C. 2471).
    Subtitle F--Matters Relating to Defense Nuclear Nonproliferation

     SEC. 3171. ANNUAL REPORT ON STATUS OF NUCLEAR MATERIALS 
                   PROTECTION, CONTROL, AND ACCOUNTING PROGRAM.

       (a) Report Required.--Not later than January 1 of each 
     year, the Secretary of Energy shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     status of efforts during the preceding fiscal year under the 
     Nuclear Materials Protection, Control, and Accounting Program 
     of the Department of Energy to secure weapons-usable nuclear 
     materials in Russia that have been identified as being at 
     risk for theft or diversion.
       (b) Contents.--Each report under subsection (a) shall 
     include the following:
       (1) The number of buildings, including building locations, 
     that received complete and integrated materials protection, 
     control, and accounting systems for nuclear materials 
     described in subsection (a) during the year covered by such 
     report.
       (2) The amounts of highly enriched uranium and plutonium in 
     Russia that have been secured under systems described in 
     paragraph (1) as of the date of such report.
       (3) The amount of nuclear materials described in subsection 
     (a) that continues to require securing under systems 
     described in paragraph (1) as of the date of such report.
       (4) A plan for actions to secure the nuclear materials 
     identified in paragraph (3) under systems described in 
     paragraph (1), including an estimate of the cost of such 
     actions.
       (5) The amounts expended through the fiscal year preceding 
     the date of such report to secure nuclear materials described 
     in subsection (a) under systems described in paragraph (1), 
     set forth by total amount and by amount per fiscal year.
       (c) Limitation on Use of Certain Funds.--(1) No amounts 
     authorized to be appropriated for the Department of Energy by 
     this Act or any other Act for purposes of the Nuclear 
     Materials Protection, Control, and Accounting Program may be 
     obligated or expended after September 30, 2000, for any 
     project under the program at a site controlled by the Russian 
     Ministry of Atomic Energy (MINATOM) in Russia until the 
     Secretary submits to the Committee on Armed Services of the 
     Senate and the Committee on Armed Services of the House of 
     Representatives a report on the access policy established 
     with respect to such project, including a certification that 
     the access policy has been implemented.
       (2) The access policy with respect to a project under this 
     subsection shall--
       (A) permit appropriate determinations by United States 
     officials regarding security requirements, including security 
     upgrades, for the project; and
       (B) ensure verification by United States officials that 
     Department of Energy assistance at the project is being used 
     for the purposes intended.

     SEC. 3172. NUCLEAR CITIES INITIATIVE.

       (a) In General.--(1) The Secretary of Energy may, in 
     accordance with the provisions of this section, expand and 
     enhance the activities of the Department of Energy under the 
     Nuclear Cities Initiative.
       (2) In this section, the term ``Nuclear Cities Initiative'' 
     means the initiative arising pursuant to the joint statement 
     dated July 24, 1998, signed by the Vice President of the 
     United States and the Prime Minister of the Russian 
     Federation and the agreement dated September 22, 1998, 
     between the United States and the Russian Federation.
       (b) Funding for Fiscal Year 2001.--There is hereby 
     authorized to be appropriated for the Department of Energy 
     for fiscal year 2001 $30,000,000 for purposes of the Nuclear 
     Cities Initiative.
       (c) Limitation Pending Submission of Agreement.--No amount 
     authorized to be appropriated or otherwise made available for 
     the Department of Energy for fiscal year 2001 for the Nuclear 
     Cities Initiative may be obligated or expended to provide 
     assistance under the Initiative for more than three nuclear 
     cities in Russia and two serial production facilities in 
     Russia until 30 days after the date on which the Secretary of 
     Energy submits to the Committee on Armed Services of the 
     Senate and the Committee on Armed Services of the House of 
     Representatives a copy of a written agreement between the 
     United States Government and the Government of the Russian 
     Federation which provides that Russia will close some of its 
     facilities engaged in nuclear weapons assembly and 
     disassembly work.
       (d) Limitation Pending Implementation of Project Review 
     Procedures.--(1) Not more than $8,750,000 of the amounts 
     referred to in subsection (b) may be obligated or expended 
     for purposes of the Initiative until the Secretary of Energy 
     establishes and implements project review procedures for 
     projects under the Initiative and submits to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     project review procedures so established and implemented.
       (2) The project review procedures established under 
     paragraph (1) shall ensure that any scientific, technical, or 
     commercial project initiated under the Initiative--
       (A) will not enhance the military or weapons of mass 
     destruction capabilities of Russia;
       (B) will not result in the inadvertent transfer or 
     utilization of products or activities under such project for 
     military purposes;
       (C) will be commercially viable; and

[[Page 21493]]

       (D) will be carried out in conjunction with an appropriate 
     commercial, industrial, or nonprofit entity as partner.
       (e) Limitation Pending Certification and Report.--No amount 
     in excess of $17,500,000 authorized to be appropriated for 
     the Department of Energy for fiscal year 2001 for the Nuclear 
     Cities Initiative may be obligated or expended for purposes 
     of providing assistance under the Initiative until 30 days 
     after the date on which the Secretary of Energy submits to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     the following:
       (1) A copy of the written agreement between the United 
     States and the Russian Federation which provides that Russia 
     will close some of its facilities engaged in nuclear weapons 
     assembly and disassembly work within five years of the date 
     of the agreement in exchange for receiving assistance through 
     the Initiative.
       (2) A certification by the Secretary--
       (A) that project review procedures for all projects under 
     the Initiative have been established and are being 
     implemented; and
       (B) that those procedures will ensure that any scientific, 
     technical, or commercial project initiated under the 
     Initiative--
       (i) will not enhance the military or weapons of mass 
     destruction capabilities of Russia;
       (ii) will not result in the inadvertent transfer or 
     utilization of products or activities under such project for 
     military purposes;
       (iii) will be commercially viable within three years after 
     the date of the initiation of the project; and
       (iv) will be carried out in conjunction with an appropriate 
     commercial, industrial, or other nonprofit entity as partner.
       (3) A report setting forth the following:
       (A) A description of the project review procedures process.
       (B) A list of the projects under the Initiative that have 
     been reviewed under such project review procedures.
       (C) A description for each project listed under 
     subparagraph (B) of the purpose, expected life-cycle costs, 
     out-year budget costs, participants, commercial viability, 
     expected time for income generation, and number of Russian 
     jobs created.
       (f) Plan for Restructuring the Russian Nuclear Complex.--
     (1) The President, acting through the Secretary of Energy, is 
     urged to enter into discussions with the Russian Federation 
     for purposes of the development by the Russian Federation of 
     a plan to restructure the Russian nuclear complex in order to 
     meet changes in the national security requirements of Russia 
     by 2010.
       (2) The plan under paragraph (1) should include the 
     following:
       (A) Mechanisms to consolidate the nuclear weapons 
     production capacity in Russia to a capacity that is 
     consistent with the obligations of Russia under current and 
     future arms control agreements.
       (B) Mechanisms to increase transparency regarding the 
     restructuring of the Russian nuclear complex and weapons-
     surplus nuclear materials inventories in Russia to the levels 
     of transparency for such matters in the United States, 
     including the participation of Department of Energy officials 
     with expertise in transparency of such matters.
       (C) Measurable milestones that will permit the United 
     States and the Russian Federation to monitor progress under 
     the plan.
       (g) Encouragement of Careers in Nonproliferation.--(1) In 
     carrying out actions under this section, the Secretary of 
     Energy may carry out a program to encourage students in the 
     United States and in the Russian Federation to pursue careers 
     in areas relating to nonproliferation.
       (2) Of the amounts made available under the Initiative for 
     fiscal year 2001 in excess of $17,500,000, up to $2,000,000 
     shall be available for purposes of the program under 
     paragraph (1).
       (3) The Administrator for Nuclear Security shall notify the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives before any 
     funds are expended pursuant to paragraph (2). Any such 
     notification shall include--
       (A) an identification of the amount to be expended under 
     paragraph (2) during fiscal year 2001;
       (B) the recipients of the funds; and
       (C) specific information on the activities that will be 
     conducted using those funds.
       (h) Definitions.--In this section:
       (1) The term ``nuclear city'' means any of the closed 
     nuclear cities within the complex of the Russian Ministry of 
     Atomic Energy as follows:
       (A) Sarov (Arzamas-16).
       (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) Zheleznogorsk (Krasnoyarsk-26).
       (J) Zelenogorsk (Krasnoyarsk-45).
       (2) The term ``Russian nuclear complex'' means all of the 
     nuclear cities.
       (3) The term ``serial production facilities'' means the 
     facilities in Russia that are located at the following 
     cities:
       (A) Avangard.
       (B) Lesnoy (Sverdlovsk-45).
       (C) Trechgornyy (Zlatoust-36).
       (D) Zarechnyy (Penza-19).

     SEC. 3173. DEPARTMENT OF ENERGY NONPROLIFERATION MONITORING.

       (a) Report Required.--Not later than March 1, 2001, the 
     Secretary of Energy shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on the efforts of the 
     Department of Energy to ensure adequate oversight and 
     accountability of the Department's nonproliferation programs 
     in Russia and the potential costs and effects of the use of 
     on-the-ground monitoring for the Department's significant 
     nonproliferation programs in Russia. The report shall include 
     the following:
       (1) A detailed discussion of the current management and 
     oversight mechanisms used to ensure that Federal funds are 
     expended for the intended purposes of those programs and that 
     the projects are achieving their intended objectives.
       (2) An evaluation of whether those mechanisms are adequate.
       (3) A discussion of whether there is a need for additional 
     employees of the Department, or of contractors of the 
     Department, to be stationed in Russia, or to visit 
     nonproliferation project sites in Russia on a regular basis, 
     to monitor the programs carried out at those sites, and an 
     estimate of the practical considerations and costs of such 
     monitoring.
       (4) An identification of each nonproliferation program and 
     each site at which an employee referred to in paragraph (3) 
     would be placed to monitor that program.
       (5) A description of the costs associated with continued 
     on-the-ground monitoring of those programs, including the 
     costs associated with placing those employees in Russia.
       (6) Recommendations regarding the most cost-effective 
     option for the Department to pursue to ensure that Federal 
     funds for those programs are expended for the intended 
     purposes of those programs.
       (7) Any recommendations of the Secretary for further 
     improvements in the oversight and accountability of those 
     programs, including any proposed legislation.
       (b) GAO Report.--Not later than April 15, 2001, the 
     Comptroller General shall submit to the committees referred 
     to in subsection (a) a report setting forth the assessment of 
     the Comptroller General concerning the information contained 
     in the report required by that subsection.

     SEC. 3174. SENSE OF CONGRESS ON THE NEED FOR COORDINATION OF 
                   NONPROLIFERATION PROGRAMS.

       It is the sense of Congress that there should be clear and 
     effective coordination among--
       (1) the Nuclear Cities Initiative;
       (2) the Initiatives for Proliferation Prevention program;
       (3) the Cooperative Threat Reduction programs;
       (4) the Nuclear Materials Protection, Control, and 
     Accounting Program; and
       (5) the International Science and Technology Center 
     program.

     SEC. 3175. LIMITATION ON USE OF FUNDS FOR INTERNATIONAL 
                   NUCLEAR SAFETY PROGRAM.

       Amounts authorized to be appropriated or otherwise made 
     available by this title for the Department of Energy for 
     fiscal year 2001 for the International Nuclear Safety Program 
     in the former Soviet Union and Eastern Europe shall be 
     available only for purposes of reactor safety upgrades and 
     training relating to nuclear operator and reactor safety.
                       Subtitle G--Other Matters

     SEC. 3191. EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN 
                   SCIENTIFIC, ENGINEERING, AND TECHNICAL 
                   PERSONNEL.

       Section 3161(c)(1) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 42 U.S.C. 7231 
     note) is amended by striking ``September 30, 2000'' and 
     inserting ``September 30, 2002''.

     SEC. 3192. BIENNIAL REPORT CONTAINING UPDATE ON NUCLEAR TEST 
                   READINESS POSTURES.

       Section 3152 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 623) is 
     amended--
       (1) by inserting ``(a) Report.--'' before ``Not later than 
     February 15, 1996,''; and
       (2) by adding at the end the following:
       ``(b) Biennial Update Report.--(1) Not later than February 
     15 of each odd-numbered year, the Secretary shall submit to 
     the congressional defense committees a report containing an 
     update of the report required under subsection (a), as 
     updated by any report previously submitted under this 
     paragraph.
       ``(2) Each report under paragraph (1) shall include, as of 
     the date of such report, the following:
       ``(A) A list and description of the workforce skills and 
     capabilities that are essential to carry out underground 
     nuclear tests at the Nevada Test Site.
       ``(B) A list and description of the infrastructure and 
     physical plant that are essential to carry out underground 
     nuclear tests at the Nevada Test Site.
       ``(C) A description of the readiness status of the skills 
     and capabilities described in subparagraph (A) and of the 
     infrastructure and physical plant described in subparagraph 
     (B).
       ``(3) Each report under paragraph (1) shall be submitted in 
     unclassified form, but may include a classified annex.''.

     SEC. 3193. FREQUENCY OF REPORTS ON INADVERTENT RELEASES OF 
                   RESTRICTED DATA AND FORMERLY RESTRICTED DATA.

       (a) Frequency of Reports.--Section 3161(f)(2) of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999

[[Page 21494]]

     (Public Law 105-261; 112 Stat. 2261; 50 U.S.C. 435 note) is 
     amended to read as follows:
       ``(2) The Secretary of Energy shall, on a quarterly basis, 
     submit a report to the committees and Assistant to the 
     President specified in subsection (d). The report shall state 
     whether any inadvertent releases described in paragraph (1) 
     occurred during the immediately preceding quarter and, if so, 
     shall identify each such release.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     apply with respect to inadvertent releases of Restricted Data 
     and Formerly Restricted Data that are discovered on or after 
     the date of the enactment of this Act.

     SEC. 3194. FORM OF CERTIFICATIONS REGARDING THE SAFETY OR 
                   RELIABILITY OF THE NUCLEAR WEAPONS STOCKPILE.

       Any certification submitted to the President by the 
     Secretary of Defense or the Secretary of Energy regarding 
     confidence in the safety or reliability of a nuclear weapon 
     type in the United States nuclear weapons stockpile shall be 
     submitted in classified form only.

     SEC. 3195. AUTHORITY TO PROVIDE CERTIFICATE OF COMMENDATION 
                   TO DEPARTMENT OF ENERGY AND CONTRACTOR 
                   EMPLOYEES FOR EXEMPLARY SERVICE IN STOCKPILE 
                   STEWARDSHIP AND SECURITY.

       (a) Authority To Present Certificate of Commendation.--The 
     Secretary of Energy may present a certificate of commendation 
     to any current or former employee of the Department of 
     Energy, and any current or former employee of a Department 
     contractor, whose service to the Department in matters 
     relating to stockpile stewardship and security assisted the 
     Department in furthering the national security interests of 
     the United States.
       (b) Certificate.--The certificate of commendation presented 
     to a current or former employee under subsection (a) shall 
     include an appropriate citation of the service of the current 
     or former employee described in that subsection, including a 
     citation for dedication, intellect, and sacrifice in 
     furthering the national security interests of the United 
     States by maintaining a strong, safe, and viable United 
     States nuclear deterrent during the Cold War or thereafter.
       (c) Department of Energy Defined.--For purposes of this 
     section, the term ``Department of Energy'' includes any 
     predecessor agency of the Department of Energy.

     SEC. 3196. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS 
                   FOR GOVERNMENT-OWNED, CONTRACTOR-OPERATED 
                   LABORATORIES.

       (a) Strategic Plans.--Subsection (a) of section 12 of the 
     Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
     3710a) is amended by striking ``joint work statement,'' and 
     inserting ``joint work statement or, if permitted by the 
     agency, in an agency-approved annual strategic plan,''.
       (b) Experimental Federal Waivers.--Subsection (b) of that 
     section is amended by adding at the end the following new 
     paragraph:
       ``(6)(A) In the case of a laboratory that is part of the 
     National Nuclear Security Administration, a designated 
     official of that Administration may waive any license 
     retained by the Government under paragraph (1)(A), (2), or 
     (3)(D), in whole or in part and according to negotiated terms 
     and conditions, if the designated official finds that the 
     retention of the license by the Government would 
     substantially inhibit the commercialization of an invention 
     that would otherwise serve an important national security 
     mission.
       ``(B) The authority to grant a waiver under subparagraph 
     (A) shall expire on the date that is five years after the 
     date of the enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001. The expiration under 
     the preceding sentence of authority to grant a waiver under 
     subparagraph (A) shall not affect any waiver granted under 
     that subparagraph before the expiration of such authority.
       ``(C) Not later than February 15 of each year, the 
     Administrator for Nuclear Security shall submit to Congress a 
     report on any waivers granted under this paragraph during the 
     preceding year.''.
       (c) Time Required for Approval.--Subsection (c)(5) of that 
     section is amended--
       (1) by striking subparagraph (C);
       (2) by redesignating subparagraph (D) as subparagraph (C); 
     and
       (3) in subparagraph (C), as so redesignated--
       (A) in clause (i)--
       (i) by striking ``with a small business firm''; and
       (ii) by inserting ``if'' after ``statement''; and
       (B) by adding at the end the following new clauses:
       ``(iv) Any agency that has contracted with a non-Federal 
     entity to operate a laboratory may develop and provide to 
     such laboratory one or more model cooperative research and 
     development agreements for purposes of standardizing 
     practices and procedures, resolving common legal issues, and 
     enabling review of cooperative research and development 
     agreements to be carried out in a routine and prompt manner.
       ``(v) A Federal agency may waive the requirements of clause 
     (i) or (ii) under such circumstances as the agency considers 
     appropriate.''.

     SEC. 3197. OFFICE OF ARCTIC ENERGY.

       (a) Establishment.--The Secretary of Energy may establish 
     within the Department of Energy an Office of Arctic Energy.
       (b) Purposes.--The purposes of such office shall be as 
     follows:
       (1) To promote research, development, and deployment of 
     electric power technology that is cost-effective and 
     especially well suited to meet the needs of rural and remote 
     regions of the United States, especially where permafrost is 
     present or located nearby.
       (2) To promote research, development, and deployment in 
     such regions of--
       (A) enhanced oil recovery technology, including heavy oil 
     recovery, reinjection of carbon, and extended reach drilling 
     technologies;
       (B) gas-to-liquids technology and liquified natural gas 
     (including associated transportation systems);
       (C) small hydroelectric facilities, river turbines, and 
     tidal power;
       (D) natural gas hydrates, coal bed methane, and shallow bed 
     natural gas; and
       (E) alternative energy, including wind, geothermal, and 
     fuel cells.
       (c) Location.--The Secretary shall locate such office at a 
     university with expertise and experience in the matters 
     specified in subsection (b).
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

     SEC. 3201. AUTHORIZATION.

         There are authorized to be appropriated for fiscal year 
     2001, $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. Authorized uses of stockpile funds.
Sec. 3302. Increased receipts under prior disposal authority.
Sec. 3303. Disposal of titanium.

     SEC. 3301. AUTHORIZED USES OF STOCKPILE FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     2001, the National Defense Stockpile Manager may obligate up 
     to $71,000,000 of the funds in the National Defense Stockpile 
     Transaction Fund established under subsection (a) of section 
     9 of the Strategic and Critical Materials Stock Piling Act 
     (50 U.S.C. 98h) for the authorized uses of such funds under 
     subsection (b)(2) of such section, including the disposal of 
     hazardous materials that are environmentally sensitive.
       (b) Additional Obligations.--The National Defense Stockpile 
     Manager may obligate amounts in excess of the amount 
     specified in subsection (a) if the National Defense Stockpile 
     Manager notifies Congress that extraordinary or emergency 
     conditions necessitate the additional obligations. The 
     National Defense Stockpile Manager may make the additional 
     obligations described in the notification after the end of 
     the 45-day period beginning on the date on which Congress 
     receives the notification.
       (c) Limitations.--The authorities provided by this section 
     shall be subject to such limitations as may be provided in 
     appropriations Acts.

     SEC. 3302. INCREASED RECEIPTS UNDER PRIOR DISPOSAL AUTHORITY.

       Section 3303(a)(4) of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 2263; 50 U.S.C. 98d note) is amended by striking 
     ``$590,000,000'' and inserting ``$720,000,000''.

     SEC. 3303. DISPOSAL OF TITANIUM.

       (a) Disposal Required.--Notwithstanding any other provision 
     of law, the President shall, by September 30, 2010, dispose 
     of 30,000 short tons of titanium contained in the National 
     Defense Stockpile.
       (b) Treatment of Receipts.--Notwithstanding section 9 of 
     the Strategic and Critical Materials Stock Piling Act (50 
     U.S.C. 98h), of the funds received as a result of the 
     disposal of titanium under subsection (a), $6,000,000 shall 
     be transferred to the American Battle Monuments Commission 
     for deposit in the fund established under section 2113 of 
     title 36, United States Code, for the World War II memorial 
     authorized by section 1 of Public Law 103-32 (107 Stat. 90), 
     and the remainder shall be deposited into the Treasury as 
     miscellaneous receipts.
       (c) World War II Memorial.--(1) The amount transferred to 
     the American Battle Monuments Commission under subsection (b) 
     shall be used to complete all necessary requirements for the 
     design of, ground breaking for, construction of, maintenance 
     of, and dedication of the World War II memorial. The 
     Commission shall determine how the amount shall be 
     apportioned among such purposes.
       (2) Any funds not necessary for the purposes set forth in 
     paragraph (1) shall be transferred to and deposited in the 
     general fund of the Treasury.
       (d) 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 materials 
     in the National Defense Stockpile.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES
Sec. 3401. Minimum price of petroleum sold from certain naval petroleum 
              reserves.
Sec. 3402. Repeal of authority to contract for cooperative or unit 
              plans affecting naval petroleum reserve numbered 1.
Sec. 3403. Disposal of Oil Shale Reserve Numbered 2.

     SEC. 3401. MINIMUM PRICE OF PETROLEUM SOLD FROM CERTAIN NAVAL 
                   PETROLEUM RESERVES.

       Section 7430(b)(2) of title 10, United States Code, is 
     amended--
       (1) in the matter before subparagraph (A), by striking 
     ``Naval Petroleum Reserves Numbered 1,

[[Page 21495]]

     2, and 3'' and inserting ``Naval Petroleum Reserves Numbered 
     2 and 3''; and
       (2) in subparagraph (A), by striking ``90 percent of''.

     SEC. 3402. REPEAL OF AUTHORITY TO CONTRACT FOR COOPERATIVE OR 
                   UNIT PLANS AFFECTING NAVAL PETROLEUM RESERVE 
                   NUMBERED 1.

       (a) Repeal.--Section 7426 of title 10, United States Code, 
     is repealed.
       (b) Conforming and Clerical Amendments.--(1) Section 7425 
     of such title is amended by striking ``for--'' and all that 
     follows through ``he may acquire'' and inserting ``for 
     exchanges of land or agreements for conservation authorized 
     by section 7424 of this title, the Secretary may acquire''.
       (2) Section 7428 of such title is amended by striking ``, 
     except a plan authorized by section 7426 of this title,''.
       (3) The table of sections at the beginning of chapter 641 
     of such title is amended by striking the item relating to 
     section 7426.
       (c) Savings Provision.--The repeal of section 7426 of title 
     10, United States Code, shall not affect the validity of 
     contracts that are in effect under such section on the day 
     before the date of the enactment of this Act. No such 
     contract may be extended or renewed on or after the date of 
     the enactment of this Act.

     SEC. 3403. DISPOSAL OF OIL SHALE RESERVE 
                   NUMBERED 2.

       (a) Transfer to Indian Tribe.--Section 3405 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (10 U.S.C. 7420 note; Public Law 105-261) is amended to 
     read as follows:

     ``SEC. 3405. DISPOSAL OF OIL SHALE RESERVE 
                   NUMBERED 2.

       ``(a) Definitions.--In this section:
       ``(1) NOSR-2.--The term `NOSR-2' means Oil Shale Reserve 
     Numbered 2, as identified on a map on file in the Office of 
     the Secretary of the Interior.
       ``(2) Moab site.--The term `Moab site' means the Moab 
     uranium milling site located approximately three miles 
     northwest of Moab, Utah, and identified in the Final 
     Environmental Impact Statement issued by the Nuclear 
     Regulatory Commission in March 1996 in conjunction with 
     Source Materials License No. SUA-917.
       ``(3) Map.--The term ``map'' means the map depicting the 
     boundaries of NOSR-2, to be kept on file and available for 
     public inspection in the offices of the Department of the 
     Interior.
       ``(4) Tribe.--The term `Tribe' means the Ute Indian Tribe 
     of the Uintah and Ouray Indian Reservation.
       ``(5) Trustee.--The term `Trustee' means the Trustee of the 
     Moab Mill Reclamation Trust.
       ``(b) Conveyance.--(1) Except as provided in paragraph (2) 
     and subsection (e), all right, title, and interest of the 
     United States in and to all Federal lands within the exterior 
     boundaries of NOSR-2 (including surface and mineral rights) 
     are hereby conveyed to the Tribe in fee simple. The Secretary 
     of Energy shall execute and file in the appropriate office a 
     deed or other instrument effectuating the conveyance made by 
     this section.
       ``(2) The conveyance under paragraph (1) does not include 
     the following:
       ``(A) The portion of the bed of Green River contained 
     entirely within NOSR-2, as depicted on the map.
       ``(B) The land (including surface and mineral rights) to 
     the west of the Green River within NOSR-2, as depicted on the 
     map.
       ``(C) A \1/4\ mile scenic easement on the east side of the 
     Green River within NOSR-2.
       ``(c) Conditions on Conveyance.--(1) The conveyance under 
     subsection (b) is subject to valid existing rights in effect 
     on the day before the date of the enactment of the Floyd D. 
     Spence National Defense Authorization Act for Fiscal Year 
     2001.
       ``(2) On completion of the conveyance under subsection (b), 
     the United States relinquishes all management authority over 
     the conveyed land, including tribal activities conducted on 
     the land.
       ``(3) The land conveyed to the Tribe under subsection (b) 
     shall not revert to the United States for management in trust 
     status.
       ``(4) The reservation of the easement under subsection 
     (b)(2)(C) shall not affect the right of the Tribe to use and 
     maintain access to the Green River through the use of the 
     road within the easement, as depicted on the map.
       ``(5) Each withdrawal that applies to NOSR-2 and that is in 
     effect on the date of the enactment of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 is 
     revoked to the extent that the withdrawal applies to NOSR-2.
       ``(6) Notwithstanding that the land conveyed to the Tribe 
     under subsection (b) shall not be part of the reservation of 
     the Tribe, such land shall be deemed to be part of the 
     reservation of the Tribe for the purposes of criminal and 
     civil jurisdiction.
       ``(d) Administration of Unconveyed Land and Interests in 
     Land.--(1) The land and interests in land excluded by 
     subparagraphs (A) and (B) of subsection (b)(2) from 
     conveyance under subsection (b) shall be administered by the 
     Secretary of the Interior in accordance with the Federal Land 
     Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.).
       ``(2) Not later than three years after the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, the Secretary of the 
     Interior shall submit to Congress a land use plan for the 
     management of the land and interests in land referred to in 
     paragraph (1).
       ``(3) There are authorized to be appropriated to the 
     Secretary of the Interior such sums as are necessary to carry 
     out this subsection.
       ``(e) Royalty.--(1) Notwithstanding the conveyance under 
     subsection (b), the United States retains a nine percent 
     royalty interest in the value of any oil, gas, other 
     hydrocarbons, and all other minerals that are produced, 
     saved, and sold from the conveyed land during the period 
     beginning on the date of the conveyance and ending on the 
     date the Secretary of Energy releases the royalty interest 
     under subsection (i).
       ``(2) The royalty payments shall be made by the Tribe or 
     its designee to the Secretary of Energy during the period 
     that the oil, gas, hydrocarbons, or minerals are being 
     produced, saved, sold, or extracted. The Secretary of Energy 
     shall retain and use the payments in the manner provided in 
     subsection (i)(3).
       ``(3) The royalty interest retained by the United States 
     under this subsection does not include any development, 
     production, marketing, and operating expenses.
       ``(4) The Tribe shall submit to the Secretary of Energy and 
     to Congress an annual report on resource development and 
     other activities of the Tribe concerning the conveyance under 
     subsection (b).
       ``(5) Not later than five years after the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, and every five years 
     thereafter, the Tribe shall obtain an audit of all resource 
     development activities of the Tribe concerning the conveyance 
     under subsection (b), as provided under chapter 75 of title 
     31, United States Code. The results of each audit under this 
     paragraph shall be included in the next annual report 
     submitted under paragraph (4).
       ``(f) River Management.--(1) The Tribe shall manage, under 
     Tribal jurisdiction and in accordance with ordinances adopted 
     by the Tribe, land of the Tribe that is adjacent to, and 
     within \1/4\ mile of, the Green River in a manner that--
       ``(A) maintains the protected status of the land; and
       ``(B) is consistent with the government-to-government 
     agreement and in the memorandum of understanding dated 
     February 11, 2000, as agreed to by the Tribe and the 
     Secretary of the Interior.
       ``(2) An ordinance referred to in paragraph (1) shall not 
     impair, limit, or otherwise restrict the management and use 
     of any land that is not owned, controlled, or subject to the 
     jurisdiction of the Tribe.
       ``(3) An ordinance adopted by the Tribe and referenced in 
     the government-to-government agreement may not be repealed or 
     amended without the written approval of both the Tribe and 
     the Secretary of the Interior.
       ``(g) Plant Species.--(1) In accordance with a government-
     to-government agreement between the Tribe and the Secretary 
     of the Interior, in a manner consistent with levels of legal 
     protection in effect on the date of the enactment of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001, the Tribe shall protect, under ordinances adopted 
     by the Tribe, any plant species that is--
       ``(A) listed as an endangered species or threatened species 
     under section 4 of the Endangered Species Act of 1973 (16 
     U.S.C. 1533); and
       ``(B) located or found on the NOSR-2 land conveyed to the 
     Tribe.
       ``(2) The protection described in paragraph (1) shall be 
     performed solely under tribal jurisdiction.
       ``(h) Horses.--(1) The Tribe shall manage, protect, and 
     assert control over any horse not owned by the Tribe or 
     tribal members that is located or found on the NOSR-2 land 
     conveyed to the Tribe in a manner that is consistent with 
     Federal law governing the management, protection, and control 
     of horses in effect on the date of the enactment of the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001.
       ``(2) The management, control, and protection of horses 
     described in paragraph (1) shall be performed solely--
       ``(A) under tribal jurisdiction; and
       ``(B) in accordance with a government-to-government 
     agreement between the Tribe and the Secretary of the 
     Interior.
       ``(i) Remedial Action at Moab Site.--(1)(A) The Secretary 
     of Energy shall prepare a plan for remediation, including 
     ground water restoration, of the Moab site in accordance with 
     title I of the Uranium Mill Tailings Radiation Control Act of 
     1978 (42 U.S.C. 7911 et seq.). The Secretary of Energy shall 
     enter into arrangements with the National Academy of Sciences 
     to obtain the technical advice, assistance, and 
     recommendations of the National Academy of Sciences in 
     objectively evaluating the costs, benefits, and risks 
     associated with various remediation alternatives, including 
     removal or treatment of radioactive or other hazardous 
     materials at the site, ground water restoration, and long-
     term management of residual contaminants. If the Secretary 
     prepares a remediation plan that is not consistent with the 
     recommendations of the National Academy of Sciences, the 
     Secretary shall submit to Congress a report explaining the 
     reasons for deviation from the National Academy of Sciences' 
     recommendations.
       ``(B) The remediation plan required by subparagraph (A) 
     shall be completed not later than one year after the date of 
     the enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, and the Secretary of 
     Energy shall commence remedial action at the Moab site as 
     soon as practicable after the completion of the plan.

[[Page 21496]]

       ``(C) The license for the materials at the Moab site issued 
     by the Nuclear Regulatory Commission shall terminate one year 
     after the date of the enactment of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001, 
     unless the Secretary of Energy determines that the license 
     may be terminated earlier. Until the license is terminated, 
     the Trustee, subject to the availability of funds 
     appropriated specifically for a purpose described in clauses 
     (i) through (iii) or made available by the Trustee from the 
     Moab Mill Reclamation Trust, may carry out--
       ``(i) interim measures to reduce or eliminate localized 
     high ammonia concentrations in the Colorado River, identified 
     by the United States Geological Survey in a report dated 
     March 27, 2000;
       ``(ii) activities to dewater the mill tailings at the Moab 
     site; and
       ``(iii) other activities related to the Moab site, subject 
     to the authority of the Nuclear Regulatory Commission and in 
     consultation with the Secretary of Energy.
       ``(D) As part of the remediation plan for the Moab site 
     required by subparagraph (A), the Secretary of Energy shall 
     develop, in consultation with the Trustee, the Nuclear 
     Regulatory Commission, and the State of Utah, an efficient 
     and legal means for transferring all responsibilities and 
     title to the Moab site and all the materials therein from the 
     Trustee to the Department of Energy.
       ``(2) The Secretary of Energy shall limit the amounts 
     expended in carrying out the remedial action under paragraph 
     (1) to--
       ``(A) amounts specifically appropriated for the remedial 
     action in an appropriation Act; and
       ``(B) other amounts made available for the remedial action 
     under this subsection.
       ``(3)(A) The royalty payments received by the Secretary of 
     Energy under subsection (e) shall be available to the 
     Secretary, without further appropriation, to carry out the 
     remedial action under paragraph (1) until such time as the 
     Secretary determines that all costs incurred by the United 
     States to carry out the remedial action (other than costs 
     associated with long-term monitoring) have been paid.
       ``(B) Upon making the determination referred to in 
     subparagraph (A), the Secretary of Energy shall transfer all 
     remaining royalty amounts to the general fund of the Treasury 
     and release to the Tribe the royalty interest retained by the 
     United States under subsection (e).
       ``(4)(A) Funds made available to the Department of Energy 
     for national security activities shall not be used to carry 
     out the remedial action under paragraph (1), except that the 
     Secretary of Energy may use such funds for program direction 
     directly related to the remedial action.
       ``(B) There are authorized to be appropriated to the 
     Secretary of Energy to carry out the remedial action under 
     paragraph (1) such sums as are necessary.
       ``(5) If the Moab site is sold after the date on which the 
     Secretary of Energy completes the remedial action under 
     paragraph (1), the seller shall pay to the Secretary of 
     Energy, for deposit in the general fund of the Treasury, the 
     portion of the sale price that the Secretary determines 
     resulted from the enhancement of the value of the Moab site 
     as a result of the remedial action. The enhanced value of the 
     Moab site shall be equal to the difference between--
       ``(A) the fair market value of the Moab site on the date of 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, based on information 
     available on that date; and
       ``(B) the fair market value of the Moab site, as appraised 
     on completion of the remedial action.''.
       (b) Uranium Mill Tailings.--Section 102 of the Uranium Mill 
     Tailings Radiation Control Act of 1978 (42 U.S.C. 7912) is 
     amended by adding at the end the following new subsection:
       ``(f) Designation of Moab Site as Processing Site.--
       ``(1) Designation.--Notwithstanding any other provision of 
     law, the Moab uranium milling site (referred to in this 
     subsection as the `Moab site') located approximately three 
     miles northwest of Moab, Utah, and identified in the Final 
     Environmental Impact Statement issued by the Nuclear 
     Regulatory Commission in March 1996 in conjunction with 
     Source Materials License No. SUA-917, is designated as a 
     processing site.
       ``(2) Applicability.--This title applies to the Moab site 
     in the same manner and to the same extent as to other 
     processing sites designated under subsection (a), except 
     that--
       ``(A) sections 103, 104(b), 107(a), 112(a), and 115(a) of 
     this title shall not apply; and
       ``(B) a reference in this title to the date of the 
     enactment of this Act shall be treated as a reference to the 
     date of the enactment of this subsection.
       ``(3) Remediation.--Subject to the availability of 
     appropriations for this purpose, the Secretary shall conduct 
     remediation at the Moab site in a safe and environmentally 
     sound manner that takes into consideration the remedial 
     action plan prepared pursuant to section 3405(i) of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (10 U.S.C. 7420 note; Public Law 105-261), including--
       ``(A) ground water restoration; and
       ``(B) the removal, to a site in the State of Utah, for 
     permanent disposition and any necessary stabilization, of 
     residual radioactive material and other contaminated material 
     from the Moab site and the floodplain of the Colorado 
     River.''.
       (c) Conforming Amendment.--Section 3406 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (10 U.S.C. 7420 note; Public Law 105-261) is amended by 
     adding at the end the following new subsection:
       ``(f) Oil Shale Reserve Numbered 2.--This section does not 
     apply to the transfer of Oil Shale Reserve Numbered 2 under 
     section 3405.''.
                  TITLE XXXV--MARITIME ADMINISTRATION
Sec. 3501. Authorization of appropriations for fiscal year 2001.
Sec. 3502. Scrapping of National Defense Reserve Fleet vessels.
Sec. 3503. Authority to convey National Defense Reserve Fleet vessel, 
              GLACIER.
Sec. 3504. Maritime intermodal research.
Sec. 3505. Maritime research and technology development.
Sec. 3506. Reporting of administered and oversight funds.

     SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                   2001.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2001, to be available without fiscal year limitation if 
     so provided in appropriations Acts, for the use of the 
     Department of Transportation for the Maritime Administration 
     as follows:
       (1) For expenses necessary for operations and training 
     activities, $94,260,000.
       (2) For expenses under the loan guarantee program 
     authorized by title XI of the Merchant Marine Act, 1936 (46 
     App. U.S.C. 1271 et seq.), $54,179,000, of which--
       (A) $50,000,000 is for the cost (as defined in section 
     502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661a(5))) of loan guarantees under the program; and
       (B) $4,179,000 is for administrative expenses related to 
     loan guarantee commitments under the program.

     SEC. 3502. SCRAPPING OF NATIONAL DEFENSE RESERVE FLEET 
                   VESSELS.

       (a) Extension of Scrapping Authority Under National 
     Maritime Heritage Act of 1994.--Section 6(c)(1) of the 
     National Maritime Heritage Act of 1994 (16 U.S.C. 5405(c)(1)) 
     is amended--
       (1) in subparagraph (A) by striking ``2001'' and inserting 
     ``2006''; and
       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) in the manner that provides the best value to the 
     Government, except in any case in which obtaining the best 
     value would require towing a vessel and such towing poses a 
     serious threat to the environment; and''.
       (b) Selection of Scrapping Facilities.--The Secretary of 
     Transportation may scrap obsolete vessels pursuant to section 
     6(c)(1) of the National Maritime Heritage Act of 1994 (16 
     U.S.C. 5405(c)(1)) through qualified scrapping facilities, 
     using the most expeditious scrapping methodology and location 
     practicable. Scrapping facilities shall be selected under 
     that section on a best value basis consistent with the 
     Federal Acquisition Regulation, as in effect on the date of 
     the enactment of this Act, without any predisposition toward 
     foreign or domestic facilities taking into consideration, 
     among other things, the ability of facilities to scrap 
     vessels--
       (1) at least cost to the Government;
       (2) in a timely manner;
       (3) giving consideration to worker safety and the 
     environment; and
       (4) in a manner that minimizes the geographic distance that 
     a vessel must be towed when towing a vessel poses a serious 
     threat to the environment.
       (c) Limitation on Scrapping Before Program.--
       (1) In general.--Until the report required by subsection 
     (d)(1) is transmitted to the congressional committees 
     referred to in that subsection, the Secretary may not proceed 
     with the scrapping of any vessel in the National Defense 
     Reserve Fleet except the following:
       (A) DONNER.
       (B) EXPORT COMMERCE.
       (C) BUILDER.
       (D) ALBERT E. WATTS.
       (E) WAYNE VICTORY.
       (F) MORMACDAWN.
       (G) MORMACMOON.
       (H) SANTA ELENA.
       (I) SANTA ISABEL.
       (J) SANTA CRUZ.
       (K) PROTECTOR.
       (L) LAUDERDALE.
       (N) PVT. FRED C. MURPHY.
       (M) BEAUJOLAIS.
       (O) MEACHAM.
       (P) NEACO.
       (Q) WABASH.
       (R) NEMASKET.
       (S) MIRFAK.
       (T) GEN. ALEX M. PATCH.
       (U) ARTHUR M. HUDDELL.
       (V) WASHINGTON.
       (W) SUFFOLK COUNTY.
       (X) CRANDALL.
       (Y) CRILLEY.
       (Z) RIGEL.
       (AA) VEGA.
       (BB) COMPASS ISLAND.
       (CC) EXPORT CHALLENGER.
       (DD) PRESERVER.
       (EE) MARINE FIDDLER.
       (FF) WOOD COUNTY.
       (GG) CATAWBA VICTORY.
       (HH) GEN. NELSON M. WALKER.
       (II) LORAIN COUNTY.
       (JJ) LYNCH.
       (KK) MISSION SANTA YNEZ.
       (LL) CALOOSAHATCHEE.
       (MM) CANISTEO.
       (2) Prioritization.--The Secretary shall exercise 
     discretion to prioritize for scrapping those vessels 
     identified in paragraph (1) that pose the most immediate 
     threat to the environment.

[[Page 21497]]

       (d) Scrapping Program for Obsolete National Defense Reserve 
     Fleet Vessels.--
       (1) Development of program; report.--The Secretary of 
     Transportation, in consultation with the Secretary of the 
     Navy and the Administrator of the Environmental Protection 
     Agency, shall within 6 months after the date of the enactment 
     of this Act--
       (A) develop a program for the scrapping of obsolete 
     National Defense Reserve Fleet vessels; and
       (B) submit a report on the program to the Committee on 
     Transportation and Infrastructure and the Committee on 
     Resources of the House of Representatives, the Committee on 
     Commerce, Science, and Transportation of the Senate, and the 
     Committees on Armed Services of the House of Representatives 
     and the Senate.
       (2) Contents of report.--The report shall include 
     information concerning the initial determination of scrapping 
     capacity, both domestically and abroad, appropriate proposed 
     regulations to implement the program, funding and staffing 
     requirements, milestone dates for the disposal of each 
     obsolete vessel, and longterm cost estimates for the program.
       (3) Alternatives.--In developing the program, the Secretary 
     of Transportation, in consultation with the Secretary of the 
     Navy and the Administrator of the Environmental Protection 
     Agency, shall consider all alternatives and available 
     information, including--
       (A) alternative scrapping sites;
       (B) vessel donations;
       (C) sinking of vessels in deep water;
       (D) sinking vessels for development of artificial reefs;
       (E) sales of vessels before they become obsolete;
       (F) results from the Navy Ship Disposal Program under 
     section 8124 of the Department of Defense Appropriations Act, 
     1999; and
       (G) the Report of the Department of Defense's Interagency 
     Panel on Ship Scrapping issued in April 1998.
       (e) Report.--Not later than 1 year after the date of the 
     enactment of this Act, and every 6 months thereafter, the 
     Secretary of Transportation, in coordination with the 
     Secretary of the Navy, shall report to the Committee on 
     Transportation and Infrastructure and the Committee on 
     Resources of the House of Representatives, the Committee on 
     Commerce, Science, and Transportation of the Senate, and the 
     Committees on Armed Services of the House of Representatives 
     and the Senate on the progress of the vessel scrapping 
     program developed under subsection (d)(1) and on the progress 
     of any other scrapping of obsolete Government-owned vessels.
       (f) Presidential Recommendation.--The President shall 
     transmit with the report required by subsection (d)(1) a 
     recommendation on--
       (1) whether it is necessary to amend the Toxic Substances 
     Control Act (15 U.S.C. 2601 et seq.) or any other 
     environmental statute or regulatory requirements relevant to 
     the disposal of vessels described in section 6(c)(2) of the 
     National Maritime Heritage Act of 1994 (16 U.S.C. 5405(c)(2)) 
     by September 30, 2006; and
       (2) any proposed changes to those requirements to carry out 
     such disposals.

     SEC. 3503. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET 
                   VESSEL, GLACIER.

       (a) Authority To Convey.--The Secretary of Transportation 
     (in this section referred to as ``the Secretary'') may, 
     subject to subsection (b), convey all right, title, and 
     interest of the United States Government in and to the vessel 
     in the National Defense Reserve Fleet that was formerly the 
     U.S.S. GLACIER (United States official number AGB-4) to the 
     Glacier Society, Inc., a corporation established under the 
     laws of the State of Connecticut that is located in 
     Bridgeport, Connecticut (in this section referred to as the 
     ``recipient'').
       (b) Terms of Conveyance.--
       (1) Required conditions.--The Secretary may not convey a 
     vessel under this section unless the recipient--
       (A) agrees to use the vessel for the purpose of a monument 
     to the accomplishments of members of the Armed Forces of the 
     United States, civilians, scientists, and diplomats in 
     exploration of the Arctic and the Antarctic;
       (B) agrees that the vessel will not be used for commercial 
     purposes;
       (C) agrees to make the vessel available to the Government 
     if the Secretary requires use of the vessel by the Government 
     for war or national emergency;
       (D) agrees to hold the Government harmless for any claims 
     arising from exposure to asbestos, polychlorinated biphenyls, 
     or lead paint after the conveyance of the vessel, except for 
     claims arising from use of the vessel by the Government 
     pursuant to the agreement under subparagraph (C); and
       (E) provides sufficient evidence to the Secretary that it 
     has available for use to restore the vessel, in the form of 
     cash, liquid assets, or a written loan commitment, financial 
     resources of at least $100,000.
       (2) Delivery of vessel.--If the Secretary conveys the 
     vessel under this section, the Secretary shall deliver the 
     vessel--
       (A) at the place where the vessel is located on the date of 
     conveyance;
       (B) in its condition on that date; and
       (C) at no cost to the United States Government.
       (3) Additional terms.--The Secretary may require such 
     additional terms in connection with the conveyance authorized 
     by this section as the Secretary considers appropriate.
       (c) Other Unneeded Equipment.--If the Secretary conveys the 
     vessel under this section, the Secretary may also convey to 
     the recipient any unneeded equipment from other vessels in 
     the National Defense Reserve Fleet or Government storage 
     facilities for use to restore the vessel to museum quality or 
     to its original configuration (or both).
       (d) Retention of Vessel in NDRF.--The Secretary shall 
     retain in the National Defense Reserve Fleet the vessel 
     authorized to be conveyed under this section until the 
     earlier of--
       (1) 2 years after the date of the enactment of this Act; or
       (2) the date of the conveyance of the vessel under this 
     section.

     SEC. 3504. MARITIME INTERMODAL RESEARCH.

       Section 8 of Public Law 101-115 (46 U.S.C. App. 1121-2) is 
     amended by adding at the end thereof the following:
       ``(f) University Transportation Research Funds.--
       ``(1) In general.--The Secretary may make a grant under 
     section 5505 of title 49, United States Code, to an institute 
     designated under subsection (a) for maritime and maritime 
     intermodal research under that section as if the institute 
     were a university transportation center.
       ``(2) Advice and consultation of marad.--In making a grant 
     under the authority of paragraph (1), the Secretary, through 
     the Research and Special Programs Administration, shall 
     advise the Maritime Administration concerning the 
     availability of funds for the grants, and consult with the 
     Administration on the making of the grants.''.

     SEC. 3505. MARITIME RESEARCH AND TECHNOLOGY DEVELOPMENT.

       (a) In General.--The Secretary of Transportation shall 
     conduct a study of maritime research and technology 
     development, and report its findings and conclusions, 
     together with any recommendations it finds appropriate, to 
     the Congress within 9 months after the date of enactment of 
     this Act.
       (b) Required Areas of Study.--The Secretary shall include 
     the following items in the report required by subsection (a):
       (1) The approximate dollar values appropriated by the 
     Congress for each of the 5 fiscal years ending before the 
     study is commenced for each of the following modes of 
     transportation:
       (A) Highway.
       (B) Rail.
       (C) Aviation.
       (D) Public transit.
       (E) Maritime.
       (2) A description of how Federal funds appropriated for 
     research in the different transportation modes are utilized.
       (3) A summary and description of current research and 
     technology development funds appropriated for each of those 
     fiscal years for maritime research initiatives, with separate 
     categories for funds provided to the Coast Guard for marine 
     safety research purposes.
       (4) A description of cooperative mechanisms that could be 
     used to attract and leverage non-federal investments in 
     United States maritime research and technology development 
     and application programs, including the potential for the 
     creation of maritime transportation research centers and the 
     benefits of cooperating with existing surface transportation 
     research centers.
       (5) Proposals for research and technology development 
     funding to facilitate the evolution of Maritime 
     Transportation System.
       (c) Authorization of Appropriations.--Of the amounts 
     authorized to be appropriated under section 3401 for 
     operations and training, $100,000 is authorized to carry out 
     this section.

     SEC. 3506. REPORTING OF ADMINISTERED AND OVERSIGHT FUNDS.

       The Maritime Administration, in its annual report to the 
     Congress under section 208 of the Merchant Marine Act, 1936 
     (46 U.S.C. App. 1118), and in its annual budget estimate 
     submitted to the Congress, shall state separately the amount, 
     source, intended use, and nature of any funds (other than 
     funds appropriated to the Administration or to the Secretary 
     of Transportation for use by the Administration) 
     administered, or subject to oversight, by the Administration.
TITLE XXXVI--ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION PROGRAM
Sec. 3601. Short title.
Sec. 3602. Findings; sense of Congress.

Subtitle A--Establishment of Compensation Program and Compensation Fund

Sec. 3611. Establishment of Energy Employees Occupational Illness 
              Compensation Program.
Sec. 3612. Establishment of Energy Employees Occupational Illness 
              Compensation Fund.
Sec. 3613. Legislative proposal.
Sec. 3614. Authorization of appropriations.

                   Subtitle B--Program Administration

Sec. 3621. Definitions for program administration.
Sec. 3622. Expansion of list of beryllium vendors.
Sec. 3623. Exposure in the performance of duty.
Sec. 3624. Advisory Board on Radiation and Worker Health.
Sec. 3625. Responsibilities of Secretary of Health and Human Services.
Sec. 3626. Designation of additional members of Special Exposure 
              Cohort.
Sec. 3627. Separate treatment of chronic silicosis.
Sec. 3628. Compensation and benefits to be provided.

[[Page 21498]]

Sec. 3629. Medical benefits.
Sec. 3630. Separate treatment of certain uranium employees.
Sec. 3631. Assistance for claimants and potential claimants.

Subtitle C--Treatment, Coordination, and Forfeiture of Compensation and 
                                Benefits

Sec. 3641. Offset for certain payments.
Sec. 3642. Subrogation of the United States.
Sec. 3643. Payment in full settlement of claims.
Sec. 3644. Exclusivity of remedy against the United States and against 
              contractors and subcontractors.
Sec. 3645. Election of remedy for beryllium employees and atomic 
              weapons employees.
Sec. 3646. Certification of treatment of payments under other laws.
Sec. 3647. Claims not assignable or transferable; choice of remedies.
Sec. 3648. Attorney fees.
Sec. 3649. Certain claims not affected by awards of damages.
Sec. 3650. Forfeiture of benefits by convicted felons.
Sec. 3651. Coordination with other Federal radiation compensation laws.

   Subtitle D--Assistance in State Workers' Compensation Proceedings

Sec. 3661. Agreements with States.

     SEC. 3601. SHORT TITLE.

       This title may be cited as the ``Energy Employees 
     Occupational Illness Compensation Program Act of 2000''.

     SEC. 3602. FINDINGS; SENSE OF CONGRESS.

       (a) Findings.--The Congress finds the following:
       (1) Since World War II, Federal nuclear activities have 
     been explicitly recognized under Federal law as activities 
     that are ultra-hazardous. Nuclear weapons production and 
     testing have involved unique dangers, including potential 
     catastrophic nuclear accidents that private insurance 
     carriers have not covered and recurring exposures to 
     radioactive substances and beryllium that, even in small 
     amounts, can cause medical harm.
       (2) Since the inception of the nuclear weapons program and 
     for several decades afterwards, a large number of nuclear 
     weapons workers at sites of the Department of Energy and at 
     sites of vendors who supplied the Cold War effort were put at 
     risk without their knowledge and consent for reasons that, 
     documents reveal, were driven by fears of adverse publicity, 
     liability, and employee demands for hazardous duty pay.
       (3) Many previously secret records have documented 
     unmonitored exposures to radiation and beryllium and 
     continuing problems at these sites across the Nation, at 
     which the Department of Energy and its predecessor agencies 
     have been, since World War II, self-regulating with respect 
     to nuclear safety and occupational safety and health. No 
     other hazardous Federal activity has been permitted to be 
     carried out under such sweeping powers of self-regulation.
       (4) The policy of the Department of Energy has been to 
     litigate occupational illness claims, which has deterred 
     workers from filing workers' compensation claims and has 
     imposed major financial burdens for such employees who have 
     sought compensation. Contractors of the Department have been 
     held harmless and the employees have been denied workers' 
     compensation coverage for occupational disease.
       (5) Over the past 20 years, more than two dozen scientific 
     findings have emerged that indicate that certain of such 
     employees are experiencing increased risks of dying from 
     cancer and non-malignant diseases. Several of these studies 
     have also established a correlation between excess diseases 
     and exposure to radiation and beryllium.
       (6) While linking exposure to occupational hazards with the 
     development of occupational disease is sometimes difficult, 
     scientific evidence supports the conclusion that occupational 
     exposure to dust particles or vapor of beryllium can cause 
     beryllium sensitivity and chronic beryllium disease. 
     Furthermore, studies indicate than 98 percent of radiation-
     induced cancers within the nuclear weapons complex have 
     occurred at dose levels below existing maximum safe 
     thresholds.
       (7) Existing information indicates that State workers' 
     compensation programs do not provide a uniform means of 
     ensuring adequate compensation for the types of occupational 
     illnesses and diseases that relate to the employees at those 
     sites.
       (8) To ensure fairness and equity, the civilian men and 
     women who, over the past 50 years, have performed duties 
     uniquely related to the nuclear weapons production and 
     testing programs of the Department of Energy and its 
     predecessor agencies should have efficient, uniform, and 
     adequate compensation for beryllium-related health conditions 
     and radiation-related health conditions.
       (9) On April 12, 2000, the Secretary of Energy announced 
     that the Administration intended to seek compensation for 
     individuals with a broad range of work-related illnesses 
     throughout the Department of Energy's nuclear weapons 
     complex.
       (10) However, as of October 2, 2000, the Administration has 
     failed to provide Congress with the necessary legislative and 
     budget proposals to enact the promised compensation program.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) a program should be established to provide compensation 
     to covered employees;
       (2) a fund for payment of such compensation should be 
     established on the books of the Treasury;
       (3) payments from that fund should be made only after--
       (A) the identification of employees of the Department of 
     Energy (including its predecessor agencies), and of 
     contractors of the Department, who may be members of the 
     group of covered employees;
       (B) the establishment of a process to receive and 
     administer claims for compensation for disability or death of 
     covered employees;
       (C) the submittal by the President of a legislative 
     proposal for compensation of such employees that includes the 
     estimated annual budget resources for that compensation; and
       (D) consideration by the Congress of the legislative 
     proposal submitted by the President; and
       (4) payments from that fund should commence not later than 
     fiscal year 2002.
Subtitle A--Establishment of Compensation Program and Compensation Fund

     SEC. 3611. ESTABLISHMENT OF ENERGY EMPLOYEES OCCUPATIONAL 
                   ILLNESS COMPENSATION PROGRAM.

       (a) Program Established.--There is hereby established a 
     program to be known as the ``Energy Employees Occupational 
     Illness Compensation Program'' (in this title referred to as 
     the ``compensation program''). The President shall carry out 
     the compensation program through one or more Federal agencies 
     or officials, as designated by the President.
       (b) Purpose of Program.--The purpose of the compensation 
     program is to provide for timely, uniform, and adequate 
     compensation of covered employees and, where applicable, 
     survivors of such employees, suffering from illnesses 
     incurred by such employees in the performance of duty for the 
     Department of Energy and certain of its contractors and 
     subcontractors.
       (c) Eligibility for Compensation.--The eligibility of 
     covered employees for compensation under the compensation 
     program shall be determined in accordance with the provisions 
     of subtitle B as may be modified by a law enacted after the 
     date of the submittal of the proposal for legislation 
     required by section 3613.

     SEC. 3612. ESTABLISHMENT OF ENERGY EMPLOYEES OCCUPATIONAL 
                   ILLNESS COMPENSATION FUND.

       (a) Establishment.--There is hereby established on the 
     books of the Treasury a fund to be known as the ``Energy 
     Employees Occupational Illness Compensation Fund'' (in this 
     title referred to as the ``compensation fund'').
       (b) Amounts in Compensation Fund.--The compensation fund 
     shall consist of the following amounts:
       (1) Amounts appropriated to the compensation fund pursuant 
     to the authorization of appropriations in section 3614(b).
       (2) Amounts transferred to the compensation fund under 
     subsection (c).
       (c) Financing of Compensation Fund.--Upon the exhaustion of 
     amounts in the compensation fund attributable to the 
     authorization of appropriations in section 3614(b), the 
     Secretary of the Treasury shall transfer directly to the 
     compensation fund from the General Fund of the Treasury, 
     without further appropriation, such amounts as are further 
     necessary to carry out the compensation program.
       (d) Use of Compensation Fund.--Subject to subsection (e), 
     amounts in the compensation fund shall be used to carry out 
     the compensation program.
       (e) Administrative Costs Not Paid From Compensation Fund.--
     No cost incurred in carrying out the compensation program, or 
     in administering the compensation fund, shall be paid from 
     the compensation fund or set off against or otherwise 
     deducted from any payment to any individual under the 
     compensation program.
       (f) Investment of Amounts in Compensation Fund.--Amounts in 
     the compensation fund shall be invested in accordance with 
     section 9702 of title 31, United States Code, and any 
     interest on, and proceeds from, any such investment shall be 
     credited to and become a part of the compensation fund.

     SEC. 3613. LEGISLATIVE PROPOSAL.

       (a) Legislative Proposal Required.--Not later than March 
     15, 2001, the President shall submit to Congress a proposal 
     for legislation to implement the compensation program. The 
     proposal for legislation shall include, at a minimum, the 
     specific recommendations (including draft legislation) of the 
     President for the following:
       (1) The types of compensation and benefits, including lost 
     wages, medical benefits, and any lump-sum settlement 
     payments, to be provided under the compensation program.
       (2) Any adjustments or modifications necessary to 
     appropriately administer the compensation program under 
     subtitle B.
       (3) Whether to expand the compensation program to include 
     other illnesses associated with exposure to toxic substances.
       (4) Whether to expand the class of individuals who are 
     members of the Special Exposure Cohort (as defined in section 
     3621(14)).
       (b) Assessment of Potential Covered Employees and Required 
     Amounts.--The President shall include with the proposal for 
     legislation under subsection (a) the following:
       (1) An estimate of the number of covered employees that the 
     President determines were exposed in the performance of duty.
       (2) An estimate, for each fiscal year of the compensation 
     program, of the amounts to be required for compensation and 
     benefits anticipated to be provided in such fiscal year under 
     the compensation program.

     SEC. 3614. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Pursuant to the authorization of 
     appropriations in section 3103(a),

[[Page 21499]]

     $25,000,000 may be used for purposes of carrying out this 
     title.
       (b) Compensation Fund.--There is hereby authorized to be 
     appropriated $250,000,000 to the Energy Employees 
     Occupational Illness Compensation Fund established by section 
     3612.
                   Subtitle B--Program Administration

     SEC. 3621. DEFINITIONS FOR PROGRAM ADMINISTRATION.

       In this title:
       (1) The term ``covered employee'' means any of the 
     following:
       (A) A covered beryllium employee.
       (B) A covered employee with cancer.
       (C) To the extent provided in section 3627, a covered 
     employee with chronic silicosis (as defined in that section).
       (2) The term ``atomic weapon'' has the meaning given that 
     term in section 11 d. of the Atomic Energy Act of 1954 (42 
     U.S.C. 2014(d)).
       (3) The term ``atomic weapons employee'' means an 
     individual employed by an atomic weapons employer during a 
     period when the employer was processing or producing, for the 
     use by the United States, material that emitted radiation and 
     was used in the production of an atomic weapon, excluding 
     uranium mining and milling.
       (4) The term ``atomic weapons employer'' means an entity, 
     other than the United States, that--
       (A) processed or produced, for use by the United States, 
     material that emitted radiation and was used in the 
     production of an atomic weapon, excluding uranium mining and 
     milling; and
       (B) is designated by the Secretary of Energy as an atomic 
     weapons employer for purposes of the compensation program.
       (5) The term ``atomic weapons employer facility'' means a 
     facility, owned by an atomic weapons employer, that is or was 
     used to process or produce, for use by the United States, 
     material that emitted radiation and was used in the 
     production of an atomic weapon, excluding uranium mining or 
     milling.
       (6) The term ``beryllium vendor'' means any of the 
     following:
       (A) Atomics International.
       (B) Brush Wellman, Incorporated, and its predecessor, Brush 
     Beryllium Company.
       (C) General Atomics.
       (D) General Electric Company.
       (E) NGK Metals Corporation and its predecessors, Kawecki-
     Berylco, Cabot Corporation, BerylCo, and Beryllium 
     Corporation of America.
       (F) Nuclear Materials and Equipment Corporation.
       (G) StarMet Corporation and its predecessor, Nuclear 
     Metals, Incorporated.
       (H) Wyman Gordan, Incorporated.
       (I) Any other vendor, processor, or producer of beryllium 
     or related products designated as a beryllium vendor for 
     purposes of the compensation program under section 3622.
       (7) The term ``covered beryllium employee'' means the 
     following, if and only if the employee is determined to have 
     been exposed to beryllium in the performance of duty in 
     accordance with section 3623(a):
       (A) A current or former employee (as that term is defined 
     in section 8101(1) of title 5, United States Code) who may 
     have been exposed to beryllium at a Department of Energy 
     facility or at a facility owned, operated, or occupied by a 
     beryllium vendor.
       (B) A current or former employee of--
       (i) any entity that contracted with the Department of 
     Energy to provide management and operation, management and 
     integration, or environmental remediation of a Department of 
     Energy facility; or
       (ii) any contractor or subcontractor that provided 
     services, including construction and maintenance, at such a 
     facility.
       (C) A current or former employee of a beryllium vendor, or 
     of a contractor or subcontractor of a beryllium vendor, 
     during a period when the vendor was engaged in activities 
     related to the production or processing of beryllium for sale 
     to, or use by, the Department of Energy.
       (8) The term ``covered beryllium illness'' means any of the 
     following:
       (A) Beryllium sensitivity as established by an abnormal 
     beryllium lymphocyte proliferation test performed on either 
     blood or lung lavage cells.
       (B) Established chronic beryllium disease.
       (C) Any injury, illness, impairment, or disability 
     sustained as a consequence of a covered beryllium illness 
     referred to in subparagraph (A) or (B).
       (9) The term ``covered employee with cancer'' means any of 
     the following:
       (A) An individual with a specified cancer who is a member 
     of the Special Exposure Cohort, if and only if that 
     individual contracted that specified cancer after beginning 
     employment at a Department of Energy facility (in the case of 
     a Department of Energy employee or Department of Energy 
     contractor employee) or at an atomic weapons employer 
     facility (in the case of an atomic weapons employee).
       (B)(i) An individual with cancer specified in subclause 
     (I), (II), or (III) of clause (ii), if and only if that 
     individual is determined to have sustained that cancer in the 
     performance of duty in accordance with section 3623(b).
       (ii) Clause (i) applies to any of the following:
       (I) A Department of Energy employee who contracted that 
     cancer after beginning employment at a Department of Energy 
     facility.
       (II) A Department of Energy contractor employee who 
     contracted that cancer after beginning employment at a 
     Department of Energy facility.
       (III) An atomic weapons employee who contracted that cancer 
     after beginning employment at an atomic weapons employer 
     facility.
       (10) The term ``Department of Energy'' includes the 
     predecessor agencies of the Department of Energy, including 
     the Manhattan Engineering District.
       (11) The term ``Department of Energy contractor employee'' 
     means any of the following:
       (A) An individual who is or was in residence at a 
     Department of Energy facility as a researcher for one or more 
     periods aggregating at least 24 months.
       (B) An individual who is or was employed at a Department of 
     Energy facility by--
       (i) an entity that contracted with the Department of Energy 
     to provide management and operating, management and 
     integration, or environmental remediation at the facility; or
       (ii) a contractor or subcontractor that provided services, 
     including construction and maintenance, at the facility.
       (12) The term ``Department of Energy facility'' means any 
     building, structure, or premise, including the grounds upon 
     which such building, structure, or premise is located--
       (A) in which operations are, or have been, conducted by, or 
     on behalf of, the Department of Energy (except for buildings, 
     structures, premises, grounds, or operations covered by 
     Executive Order No. 12344, dated February 1, 1982 (42 U.S.C. 
     7158 note), pertaining to the Naval Nuclear Propulsion 
     Program); and
       (B) with regard to which the Department of Energy has or 
     had--
       (i) a proprietary interest; or
       (ii) entered into a contract with an entity to provide 
     management and operation, management and integration, 
     environmental remediation services, construction, or 
     maintenance services.
       (13) The term ``established chronic beryllium disease'' 
     means chronic beryllium disease as established by the 
     following:
       (A) For diagnoses on or after January 1, 1993, beryllium 
     sensitivity (as established in accordance with paragraph 
     (8)(A)), together with lung pathology consistent with chronic 
     beryllium disease, including--
       (i) a lung biopsy showing granulomas or a lymphocytic 
     process consistent with chronic beryllium disease;
       (ii) a computerized axial tomography scan showing changes 
     consistent with chronic beryllium disease; or
       (iii) pulmonary function or exercise testing showing 
     pulmonary deficits consistent with chronic beryllium disease.
       (B) For diagnoses before January 1, 1993, the presence of--
       (i) occupational or environmental history, or epidemiologic 
     evidence of beryllium exposure; and
       (ii) any three of the following criteria:

       (I) Characteristic chest radiographic (or computed 
     tomography (CT)) abnormalities.
       (II) Restrictive or obstructive lung physiology testing or 
     diffusing lung capacity defect.
       (III) Lung pathology consistent with chronic beryllium 
     disease.
       (IV) Clinical course consistent with a chronic respiratory 
     disorder.
       (V) Immunologic tests showing beryllium sensitivity (skin 
     patch test or beryllium blood test preferred).

       (14) The term ``member of the Special Exposure Cohort'' 
     means a Department of Energy employee, Department of Energy 
     contractor employee, or atomic weapons employee who meets any 
     of the following requirements:
       (A) The employee was so employed for a number of work days 
     aggregating at least 250 work days before February 1, 1992, 
     at a gaseous diffusion plant located in Paducah, Kentucky, 
     Portsmouth, Ohio, or Oak Ridge, Tennessee, and, during such 
     employment--
       (i) was monitored through the use of dosimetry badges for 
     exposure at the plant of the external parts of employee's 
     body to radiation; or
       (ii) worked in a job that had exposures comparable to a job 
     that is or was monitored through the use of dosimetry badges.
       (B) The employee was so employed before January 1, 1974, by 
     the Department of Energy or a Department of Energy contractor 
     or subcontractor on Amchitka Island, Alaska, and was exposed 
     to ionizing radiation in the performance of duty related to 
     the Long Shot, Milrow, or Cannikin underground nuclear tests.
       (C)(i) Subject to clause (ii), the employee is an 
     individual designated as a member of the Special Exposure 
     Cohort by the President for purposes of the compensation 
     program under section 3626.
       (ii) A designation under clause (i) shall, unless Congress 
     otherwise provides, take effect on the date that is 180 days 
     after the date on which the President submits to Congress a 
     report identifying the individuals covered by the designation 
     and describing the criteria used in designating those 
     individuals.
       (15) The term ``occupational illness'' means a covered 
     beryllium illness, cancer referred to in section 3621(9)(B), 
     specified cancer, or chronic silicosis, as the case may be.
       (16) The term ``radiation'' means ionizing radiation in the 
     form of--
       (A) alpha particles;
       (B) beta particles;
       (C) neutrons;
       (D) gamma rays; or
       (E) accelerated ions or subatomic particles from 
     accelerator machines.
       (17) The term ``specified cancer'' means any of the 
     following:
       (A) A specified disease, as that term is defined in section 
     4(b)(2) of the Radiation Exposure Compensation Act (42 U.S.C. 
     2210 note).

[[Page 21500]]

       (B) Bone cancer.
       (18) The term ``survivor'' means any individual or 
     individuals eligible to receive compensation pursuant to 
     section 8133 of title 5, United States Code.

     SEC. 3622. EXPANSION OF LIST OF BERYLLIUM VENDORS.

       Not later than December 31, 2002, the President may, in 
     consultation with the Secretary of Energy, designate as a 
     beryllium vendor for purposes of section 3621(6) any vendor, 
     processor, or producer of beryllium or related products not 
     previously listed under or designated for purposes of such 
     section 3621(6) if the President finds that such vendor, 
     processor, or producer has been engaged in activities related 
     to the production or processing of beryllium for sale to, or 
     use by, the Department of Energy in a manner similar to the 
     entities listed in such section 3621(6).

     SEC. 3623. EXPOSURE IN THE PERFORMANCE OF DUTY.

       (a) Beryllium.--A covered beryllium employee shall, in the 
     absence of substantial evidence to the contrary, be 
     determined to have been exposed to beryllium in the 
     performance of duty for the purposes of the compensation 
     program if, and only if, the covered beryllium employee was--
       (1) employed at a Department of Energy facility; or
       (2) present at a Department of Energy facility, or a 
     facility owned and operated by a beryllium vendor, because of 
     employment by the United States, a beryllium vendor, or a 
     contractor or subcontractor of the Department of Energy;
     during a period when beryllium dust, particles, or vapor may 
     have been present at such facility.
       (b) Cancer.--An individual with cancer specified in 
     subclause (I), (II), or (III) of section 3621(9)(B)(ii) shall 
     be determined to have sustained that cancer in the 
     performance of duty for purposes of the compensation program 
     if, and only if, the cancer specified in that subclause was 
     at least as likely as not related to employment at the 
     facility specified in that subclause, as determined in 
     accordance with the guidelines established under subsection 
     (c).
       (c) Guidelines.--(1) For purposes of the compensation 
     program, the President shall by regulation establish 
     guidelines for making the determinations required by 
     subsection (b).
       (2) The President shall establish such guidelines after 
     technical review by the Advisory Board on Radiation and 
     Worker Health under section 3624.
       (3) Such guidelines shall--
       (A) be based on the radiation dose received by the employee 
     (or a group of employees performing similar work) at such 
     facility and the upper 99 percent confidence interval of the 
     probability of causation in the radioepidemiological tables 
     published under section 7(b) of the Orphan Drug Act (42 
     U.S.C. 241 note), as such tables may be updated under section 
     7(b)(3) of such Act from time to time;
       (B) incorporate the methods established under subsection 
     (d); and
       (C) take into consideration the type of cancer, past 
     health-related activities (such as smoking), information on 
     the risk of developing a radiation-related cancer from 
     workplace exposure, and other relevant factors.
       (d) Methods for Radiation Dose Reconstructions.--(1) The 
     President shall, through any Federal agency (other than the 
     Department of Energy) or official (other than the Secretary 
     of Energy or any other official within the Department of 
     Energy) that the President may designate, establish by 
     regulation methods for arriving at reasonable estimates of 
     the radiation doses received by an individual specified in 
     subparagraph (B) of section 3621(9) at a facility specified 
     in that subparagraph by each of the following employees:
       (A) An employee who was not monitored for exposure to 
     radiation at such facility.
       (B) An employee who was monitored inadequately for exposure 
     to radiation at such facility.
       (C) An employee whose records of exposure to radiation at 
     such facility are missing or incomplete.
       (2) The President shall establish an independent review 
     process using the Advisory Board on Radiation and Worker 
     Health to--
       (A) assess the methods established under paragraph (1); and
       (B) verify a reasonable sample of the doses established 
     under paragraph (1).
       (e) Information on Radiation Doses.--(1) The Secretary of 
     Energy shall provide, to each covered employee with cancer 
     specified in section 3621(9)(B), information specifying the 
     estimated radiation dose of that employee during each 
     employment specified in section 3621(9)(B), whether 
     established by a dosimetry reading, by a method established 
     under subsection (d), or by both a dosimetry reading and such 
     method.
       (2) The Secretary of Health and Human Services and the 
     Secretary of Energy shall each make available to researchers 
     and the general public information on the assumptions, 
     methodology, and data used in establishing radiation doses 
     under subsection (d). The actions taken under this paragraph 
     shall be consistent with the protection of private medical 
     records.

     SEC. 3624. ADVISORY BOARD ON RADIATION AND WORKER HEALTH.

       (a) Establishment.--(1) Not later than 120 days after the 
     date of the enactment of this Act, the President shall 
     establish and appoint an Advisory Board on Radiation and 
     Worker Health (in this section referred to as the ``Board'').
       (2) The President shall make appointments to the Board in 
     consultation with organizations with expertise on worker 
     health issues in order to ensure that the membership of the 
     Board reflects a balance of scientific, medical, and worker 
     perspectives.
       (3) The President shall designate a Chair for the Board 
     from among its members.
       (b) Duties.--The Board shall advise the President on--
       (1) the development of guidelines under section 3623(c);
       (2) the scientific validity and quality of dose estimation 
     and reconstruction efforts being performed for purposes of 
     the compensation program; and
       (3) such other matters related to radiation and worker 
     health in Department of Energy facilities as the President 
     considers appropriate.
       (c) Staff.--(1) The President shall appoint a staff to 
     facilitate the work of the Board. The staff shall be headed 
     by a Director who shall be appointed under subchapter VIII of 
     chapter 33 of title 5, United States Code.
       (2) The President may accept as staff of the Board 
     personnel on detail from other Federal agencies. The detail 
     of personnel under this paragraph may be on a nonreimbursable 
     basis.
       (d) Expenses.--Members of the Board, other than full-time 
     employees of the United States, while attending meetings of 
     the Board or while otherwise serving at the request of the 
     President, while serving away from their homes or regular 
     places of business, shall be allowed travel and meal 
     expenses, including per diem in lieu of subsistence, as 
     authorized by section 5703 of title 5, United States Code, 
     for individuals in the Government serving without pay.

     SEC. 3625. RESPONSIBILITIES OF SECRETARY OF HEALTH AND HUMAN 
                   SERVICES.

       The Secretary of Health and Human Services shall carry out 
     that Secretary's responsibilities with respect to the 
     compensation program with the assistance of the Director of 
     the National Institute for Occupational Safety and Health.

     SEC. 3626. DESIGNATION OF ADDITIONAL MEMBERS OF SPECIAL 
                   EXPOSURE COHORT.

       (a) Advice on Additional Members.--(1) The Advisory Board 
     on Radiation and Worker Health under section 3624 shall 
     advise the President whether there is a class of employees at 
     any Department of Energy facility who likely were exposed to 
     radiation at that facility but for whom it is not feasible to 
     estimate with sufficient accuracy the radiation dose they 
     received.
       (2) The advice of the Advisory Board on Radiation and 
     Worker Health under paragraph (1) shall be based on exposure 
     assessments by radiation health professionals, information 
     provided by the Department of Energy, and such other 
     information as the Advisory Board considers appropriate.
       (3) The President shall request advice under paragraph (1) 
     after consideration of petitions by classes of employees 
     described in that paragraph for such advice. The President 
     shall consider such petitions pursuant to procedures 
     established by the President.
       (b) Designation of Additional Members.--Subject to the 
     provisions of section 3621(14)(C), the members of a class of 
     employees at a Department of Energy facility may be treated 
     as members of the Special Exposure Cohort for purposes of the 
     compensation program if the President, upon recommendation of 
     the Advisory Board on Radiation and Worker Health, determines 
     that--
       (1) it is not feasible to estimate with sufficient accuracy 
     the radiation dose that the class received; and
       (2) there is a reasonable likelihood that such radiation 
     dose may have endangered the health of members of the class.
       (c) Access to Information.--The Secretary of Energy shall 
     provide, in accordance with law, the Secretary of Health and 
     Human Services and the members and staff of the Advisory 
     Board on Radiation and Worker Health access to relevant 
     information on worker exposures, including access to 
     Restricted Data (as defined in section 11 y. of the Atomic 
     Energy Act of 1954 (42 U.S.C. 2014(y)).

     SEC. 3627. SEPARATE TREATMENT OF CHRONIC SILICOSIS.

       (a) Sense of Congress.--The Congress finds that employees 
     who worked in Department of Energy test sites and later 
     contracted chronic silicosis should also be considered for 
     inclusion in the compensation program. Recognizing that 
     chronic silicosis resulting from exposure to silica is not a 
     condition unique to the nuclear weapons industry, it is not 
     the intent of Congress with this title to establish a 
     precedent on the question of chronic silicosis as a 
     compensable occupational disease. Consequently, it is the 
     sense of Congress that a further determination by the 
     President is appropriate before these workers are included in 
     the compensation program.
       (b) Certification by President.--A covered employee with 
     chronic silicosis shall be treated as a covered employee (as 
     defined in section 3621(1)) for the purposes of the 
     compensation program required by section 3611 unless the 
     President submits to Congress not later than 180 days after 
     the date of the enactment of this Act the certification of 
     the President that there is insufficient basis to include 
     such employees. The President shall submit with the 
     certification any recommendations about the compensation 
     program with respect to covered employees with chronic 
     silicosis as the President considers appropriate.
       (c) Exposure to Silica in the Performance of Duty.--A 
     covered employee shall, in the absence of substantial 
     evidence to the contrary, be determined to have been exposed 
     to silica in the performance of duty for the purposes of the 
     compensation program if, and only if, the employee was 
     present for a number of work days

[[Page 21501]]

     aggregating at least 250 work days during the mining of 
     tunnels at a Department of Energy facility located in Nevada 
     or Alaska for tests or experiments related to an atomic 
     weapon.
       (d) Covered Employee With Chronic Silicosis.--For purposes 
     of this title, the term ``covered employee with chronic 
     silicosis'' means a Department of Energy employee, or a 
     Department of Energy contractor employee, with chronic 
     silicosis who was exposed to silica in the performance of 
     duty as determined under subsection (c).
       (e) Chronic Silicosis.--For purposes of this title, the 
     term ``chronic silicosis'' means a non-malignant lung disease 
     if--
       (1) the initial occupational exposure to silica dust 
     preceded the onset of silicosis by at least 10 years; and
       (2) a written diagnosis of silicosis is made by a medical 
     doctor and is accompanied by--
       (A) a chest radiograph, interpreted by an individual 
     certified by the National Institute for Occupational Safety 
     and Health as a B reader, classifying the existence of 
     pneumoconioses of category 1/1 or higher;
       (B) results from a computer assisted tomograph or other 
     imaging technique that are consistent with silicosis; or
       (C) lung biopsy findings consistent with silicosis.

     SEC. 3628. COMPENSATION AND BENEFITS TO BE PROVIDED.

       (a) Compensation Provided.--(1) Except as provided in 
     paragraph (2), a covered employee, or the survivor of that 
     covered employee if the employee is deceased, shall receive 
     compensation for the disability or death of that employee 
     from that employee's occupational illness in the amount of 
     $150,000.
       (2) A covered employee shall, to the extent that employee's 
     occupational illness is established beryllium sensitivity, 
     receive beryllium sensitivity monitoring under subsection (c) 
     in lieu of compensation under paragraph (1).
       (b) Medical Benefits.--A covered employee shall receive 
     medical benefits under section 3629 for that employee's 
     occupational illness.
       (c) Beryllium Sensitivity Monitoring.--An individual 
     receiving beryllium sensitivity monitoring under this 
     subsection shall receive the following:
       (1) A thorough medical examination to confirm the nature 
     and extent of the individual's established beryllium 
     sensitivity.
       (2) Regular medical examinations thereafter to determine 
     whether that individual has developed established chronic 
     beryllium disease.
       (d) Payment from Compensation Fund.--The compensation 
     provided under this section, when authorized or approved by 
     the President, shall be paid from the compensation fund 
     established under section 3612.
       (e) Survivors.--(1) Subject to the provisions of this 
     section, if a covered employee dies before the effective date 
     specified in subsection (f), whether or not the death is a 
     result of that employee's occupational illness, a survivor of 
     that employee may, on behalf of that survivor and any other 
     survivors of that employee, receive the compensation provided 
     for under this section.
       (2) The right to receive compensation under this section 
     shall be afforded to survivors in the same order of 
     precedence as that set forth in section 8109 of title 5, 
     United States Code.
       (f) Effective Date.--This section shall take effect on July 
     31, 2001, unless Congress otherwise provides in an Act 
     enacted before that date.

     SEC. 3629. MEDICAL BENEFITS.

       (a) Medical Benefits Provided.--The United States shall 
     furnish, to an individual receiving medical benefits under 
     this section for an illness, the services, appliances, and 
     supplies prescribed or recommended by a qualified physician 
     for that illness, which the President considers likely to 
     cure, give relief, or reduce the degree or the period of that 
     illness.
       (b) Persons Furnishing Benefits.--(1) These services, 
     appliances, and supplies shall be furnished by or on the 
     order of United States medical officers and hospitals, or, at 
     the individual's option, by or on the order of physicians and 
     hospitals designated or approved by the President.
       (2) The individual may initially select a physician to 
     provide medical services, appliances, and supplies under this 
     section in accordance with such regulations and instructions 
     as the President considers necessary.
       (c) Transportation and Expenses.--The individual may be 
     furnished necessary and reasonable transportation and 
     expenses incident to the securing of such services, 
     appliances, and supplies.
       (d) Commencement of Benefits.--An individual receiving 
     benefits under this section shall be furnished those benefits 
     as of the date on which that individual submitted the claim 
     for those benefits in accordance with this title.
       (e) Payment from Compensation Fund.--The benefits provided 
     under this section, when authorized or approved by the 
     President, shall be paid from the compensation fund 
     established under section 3612.
       (f) Effective Date.--This section shall take effect on July 
     31, 2001, unless Congress otherwise provides in an Act 
     enacted before that date.

     SEC. 3630. SEPARATE TREATMENT OF CERTAIN URANIUM EMPLOYEES.

       (a) Compensation Provided.--An individual who receives, or 
     has received, $100,000 under section 5 of the Radiation 
     Exposure Compensation Act (42 U.S.C. 2210 note) for a claim 
     made under that Act (hereinafter in this section referred to 
     as a ``covered uranium employee''), or the survivor of that 
     covered uranium employee if the employee is deceased, shall 
     receive compensation under this section in the amount of 
     $50,000.
       (b) Medical Benefits.--A covered uranium employee shall 
     receive medical benefits under section 3629 for the illness 
     for which that employee received $100,000 under section 5 of 
     that Act.
       (c) Coordination With RECA.--The compensation and benefits 
     provided in subsections (a) and (b) are separate from any 
     compensation or benefits provided under that Act.
       (d) Payment from Compensation Fund.--The compensation 
     provided under this section, when authorized or approved by 
     the President, shall be paid from the compensation fund 
     established under section 3612.
       (e) Survivors.--(1) Subject to the provisions of this 
     section, if a covered uranium employee dies before the 
     effective date specified in subsection (g), whether or not 
     the death is a result of the illness specified in subsection 
     (b), a survivor of that employee may, on behalf of that 
     survivor and any other survivors of that employee, receive 
     the compensation provided for under this section.
       (2) The right to receive compensation under this section 
     shall be afforded to survivors in the same order of 
     precedence as that set forth in section 8109 of title 5, 
     United States Code.
       (f) Procedures Required.--The President shall establish 
     procedures to identify and notify each covered uranium 
     employee, or the survivor of that covered uranium employee if 
     that employee is deceased, of the availability of 
     compensation and benefits under this section.
       (g) Effective Date.--This section shall take effect on July 
     31, 2001, unless Congress otherwise provides in an Act 
     enacted before that date.

     SEC. 3631. ASSISTANCE FOR CLAIMANTS AND POTENTIAL CLAIMANTS.

       (a) Assistance for Claimants.--The President shall, upon 
     the receipt of a request for assistance from a claimant under 
     the compensation program, provide assistance to the claimant 
     in connection with the claim, including--
       (1) assistance in securing medical testing and diagnostic 
     services necessary to establish the existence of a covered 
     beryllium illness, chronic silicosis, or cancer; and
       (2) such other assistance as may be required to develop 
     facts pertinent to the claim.
       (b) Assistance for Potential Claimants.--The President 
     shall take appropriate actions to inform and assist covered 
     employees who are potential claimants under the compensation 
     program, and other potential claimants under the compensation 
     program, of the availability of compensation under the 
     compensation program, including actions to--
       (1) ensure the ready availability, in paper and electronic 
     format, of forms necessary for making claims;
       (2) provide such covered employees and other potential 
     claimants with information and other support necessary for 
     making claims, including--
       (A) medical protocols for medical testing and diagnosis to 
     establish the existence of a covered beryllium illness, 
     chronic silicosis, or cancer; and
       (B) lists of vendors approved for providing laboratory 
     services related to such medical testing and diagnosis; and
       (3) provide such additional assistance to such covered 
     employees and other potential claimants as may be required 
     for the development of facts pertinent to a claim.
       (c) Information From Beryllium Vendors and Other 
     Contractors.--As part of the assistance program provided 
     under subsections (a) and (b), and as permitted by law, the 
     Secretary of Energy shall, upon the request of the President, 
     require a beryllium vendor or other Department of Energy 
     contractor or subcontractor to provide information relevant 
     to a claim or potential claim under the compensation program 
     to the President.
Subtitle C--Treatment, Coordination, and Forfeiture of Compensation and 
                                Benefits

     SEC. 3641. OFFSET FOR CERTAIN PAYMENTS.

       A payment of compensation to an individual, or to a 
     survivor of that individual, under subtitle B shall be offset 
     by the amount of any payment made pursuant to a final award 
     or settlement on a claim (other than a claim for worker's 
     compensation), against any person, that is based on injuries 
     incurred by that individual on account of the exposure of a 
     covered beryllium employee, covered employee with cancer, 
     covered employee with chronic silicosis (as defined in 
     section 3627), or covered uranium employee (as defined in 
     section 3630), while so employed, to beryllium, radiation, 
     silica, or radiation, respectively.

     SEC. 3642. SUBROGATION OF THE UNITED STATES.

       Upon payment of compensation under subtitle B, the United 
     States is subrogated for the amount of the payment to a right 
     or claim that the individual to whom the payment was made may 
     have against any person on account of injuries referred to in 
     section 3641.

     SEC. 3643. PAYMENT IN FULL SETTLEMENT OF CLAIMS.

       The acceptance by an individual of payment of compensation 
     under subtitle B with respect to a covered employee shall be 
     in full satisfaction of all claims of or on behalf of that 
     individual against the United States, against a Department of 
     Energy contractor or subcontractor, beryllium vendor, or 
     atomic weapons employer, or against any person with respect 
     to that person's performance of a contract with the United 
     States,

[[Page 21502]]

     that arise out of an exposure referred to in section 3641.

     SEC. 3644. EXCLUSIVITY OF REMEDY AGAINST THE UNITED STATES 
                   AND AGAINST CONTRACTORS AND SUBCONTRACTORS.

       (a) In General.--The liability of the United States or an 
     instrumentality of the United States under this title with 
     respect to a cancer (including a specified cancer), chronic 
     silicosis, covered beryllium illness, or death related 
     thereto of a covered employee is exclusive and instead of all 
     other liability--
       (1) of--
       (A) the United States;
       (B) any instrumentality of the United States;
       (C) a contractor that contracted with the Department of 
     Energy to provide management and operation, management and 
     integration, or environmental remediation of a Department of 
     Energy facility (in its capacity as a contractor);
       (D) a subcontractor that provided services, including 
     construction, at a Department of Energy facility (in its 
     capacity as a subcontractor); and
       (E) an employee, agent, or assign of an entity specified in 
     subparagraphs (A) through (D);
       (2) to--
       (A) the covered employee;
       (B) the covered employee's legal representative, spouse, 
     dependents, survivors and next of kin; and
       (C) any other person, including any third party as to whom 
     the covered employee, or the covered employee's legal 
     representative, spouse, dependents, survivors, or next of 
     kin, has a cause of action relating to the cancer (including 
     a specified cancer), chronic silicosis, covered beryllium 
     illness, or death, otherwise entitled to recover damages from 
     the United States, the instrumentality, the contractor, the 
     subcontractor, or the employee, agent, or assign of one of 
     them;

     because of the cancer (including a specified cancer), chronic 
     silicosis, covered beryllium illness, or death in any 
     proceeding or action including a direct judicial proceeding, 
     a civil action, a proceeding in admiralty, or a proceeding 
     under a tort liability statute or the common law.
       (b) Applicability.--This section applies to all cases filed 
     on or after the date of the enactment of this Act.
       (c) Workers' Compensation.--This section does not apply to 
     an administrative or judicial proceeding under a State or 
     Federal workers' compensation law.

     SEC. 3645. ELECTION OF REMEDY FOR BERYLLIUM EMPLOYEES AND 
                   ATOMIC WEAPONS EMPLOYEES.

       (a) Election to File Suit.--If a tort case is filed after 
     the date of the enactment of this Act, alleging a claim 
     referred to in section 3643 against a beryllium vendor or 
     atomic weapons employer, the plaintiff shall not be eligible 
     for compensation or benefits under subtitle B unless the 
     plaintiff files such case within the applicable time limits 
     in subsection (b).
       (b) Applicable Time Limits.--A case described in subsection 
     (a) shall be filed not later than the later of--
       (1) the date that is 30 months after the date of the 
     enactment of this Act; or
       (2) the date that is 30 months after the date the plaintiff 
     first becomes aware that an illness covered by subtitle B of 
     a covered employee may be connected to the exposure of the 
     covered employee in the performance of duty.
       (c) Dismissal of Claims.--Unless a case filed under 
     subsection (a) is dismissed prior to the time limits in 
     subsection (b), the plaintiff shall not be eligible for 
     compensation under subtitle B.
       (d) Dismissal of Pending Suit.--If a tort case was filed on 
     or before the date of the enactment of this Act, alleging a 
     claim referred to in section 3643 against a beryllium vendor 
     or atomic weapons employer, the plaintiff shall not be 
     eligible for compensation or benefits under subtitle B unless 
     the plaintiff dismisses such case not later than December 31, 
     2003.
       (e) Workers' Compensation.--This section does not apply to 
     an administrative or judicial proceeding under a State or 
     Federal workers' compensation law.

     SEC. 3646. CERTIFICATION OF TREATMENT OF PAYMENTS UNDER OTHER 
                   LAWS.

       Compensation or benefits provided to an individual under 
     subtitle B--
       (1) shall be treated for purposes of the internal revenue 
     laws of the United States as damages for human suffering; and
       (2) shall not be included as income or resources for 
     purposes of determining eligibility to receive benefits 
     described in section 3803(c)(2)(C) of title 31, United States 
     Code, or the amount of such benefits.

     SEC. 3647. CLAIMS NOT ASSIGNABLE OR TRANSFERABLE; CHOICE OF 
                   REMEDIES.

       (a) Claims Not Assignable or Transferable.--No claim 
     cognizable under subtitle B shall be assignable or 
     transferable.
       (b) Choice of Remedies.--No individual may receive more 
     than one payment of compensation under subtitle B.

     SEC. 3648. ATTORNEY FEES.

       (a) General Rule.--Notwithstanding any contract, the 
     representative of an individual may not receive, for services 
     rendered in connection with the claim of an individual under 
     subtitle B, more than that percentage specified in subsection 
     (b) of a payment made under subtitle B on such claim.
       (b) Applicable Percentage Limitations.--The percentage 
     referred to in subsection (a) is--
       (1) 2 percent for the filing of an initial claim; and
       (2) 10 percent with respect to any claim with respect to 
     which a representative has made a contract for services 
     before the date of the enactment of this Act.
       (c) Penalty.--Any such representative who violates this 
     section shall be fined not more than $5,000.

     SEC. 3649. CERTAIN CLAIMS NOT AFFECTED BY AWARDS OF DAMAGES.

       A payment under subtitle B shall not be considered as any 
     form of compensation or reimbursement for a loss for purposes 
     of imposing liability on any individual receiving such 
     payment, on the basis of such receipt, to repay any insurance 
     carrier for insurance payments, or to repay any person on 
     account of worker's compensation payments; and a payment 
     under subtitle B shall not affect any claim against an 
     insurance carrier with respect to insurance or against any 
     person with respect to worker's compensation.

     SEC. 3650. FORFEITURE OF BENEFITS BY CONVICTED FELONS.

       (a) Forfeiture of Compensation.--Any individual convicted 
     of a violation of section 1920 of title 18, United States 
     Code, or any other Federal or State criminal statute relating 
     to fraud in the application for or receipt of any benefit 
     under subtitle B or under any other Federal or State workers' 
     compensation law, shall forfeit (as of the date of such 
     conviction) any entitlement to any compensation or benefit 
     under subtitle B such individual would otherwise be awarded 
     for any injury, illness or death covered by subtitle B for 
     which the time of injury was on or before the date of the 
     conviction.
       (b) Information.--Notwithstanding section 552a of title 5, 
     United States Code, or any other Federal or State law, an 
     agency of the United States, a State, or a political 
     subdivision of a State shall make available to the President, 
     upon written request from the President and if the President 
     requires the information to carry out this section, the names 
     and Social Security account numbers of individuals confined, 
     for conviction of a felony, in a jail, prison, or other penal 
     institution or correctional facility under the jurisdiction 
     of that agency.

     SEC. 3651. COORDINATION WITH OTHER FEDERAL RADIATION 
                   COMPENSATION LAWS.

       Except in accordance with section 3630, an individual may 
     not receive compensation or benefits under the compensation 
     program for cancer and also receive compensation under the 
     Radiation Exposure Compensation Act (42 U.S.C. 2210 note) or 
     section 1112(c) of title 38, United States Code.
   Subtitle D--Assistance in State Workers' Compensation Proceedings

     SEC. 3661. AGREEMENTS WITH STATES.

       (a) Agreements Authorized.--The Secretary of Energy 
     (hereinafter in this section referred to as the 
     ``Secretary'') may enter into agreements with the chief 
     executive officer of a State to provide assistance to a 
     Department of Energy contractor employee in filing a claim 
     under the appropriate State workers' compensation system.
       (b) Procedure.--Pursuant to agreements under subsection 
     (a), the Secretary may--
       (1) establish procedures under which an individual may 
     submit an application for review and assistance under this 
     section; and
       (2) review an application submitted under this section and 
     determine whether the applicant submitted reasonable evidence 
     that--
       (A) the application was filed by or on behalf of a 
     Department of Energy contractor employee or employee's 
     estate; and
       (B) the illness or death of the Department of Energy 
     contractor employee may have been related to employment at a 
     Department of Energy facility.
       (c) Submittal of Applications to Panels.--If provided in an 
     agreement under subsection (a), and if the Secretary 
     determines that the applicant submitted reasonable evidence 
     under subsection (b)(2), the Secretary shall submit the 
     application to a physicians panel established under 
     subsection (d). The Secretary shall assist the employee in 
     obtaining additional evidence within the control of the 
     Department of Energy and relevant to the panel's 
     deliberations.
       (d) Composition and Operation of Panels.--(1) The Secretary 
     shall inform the Secretary of Health and Human Services of 
     the number of physicians panels the Secretary has determined 
     to be appropriate to administer this section, the number of 
     physicians needed for each panel, and the area of 
     jurisdiction of each panel. The Secretary may determine to 
     have only one panel.
       (2)(A) The Secretary of Health and Human Services shall 
     appoint panel members with experience and competency in 
     diagnosing occupational illnesses under section 3109 of title 
     5, United States Code.
       (B) Each member of a panel shall be paid at the rate of pay 
     payable for level III of the Executive Schedule for each day 
     (including travel time) the member is engaged in the work of 
     a panel.
       (3) A panel shall review an application submitted to it by 
     the Secretary and determine, under guidelines established by 
     the Secretary, by regulation, whether the illness or death 
     that is the subject of the application arose out of and in 
     the course of employment by the Department of Energy and 
     exposure to a toxic substance at a Department of Energy 
     facility.
       (4) At the request of a panel, the Secretary and a 
     contractor who employed a Department of Energy contractor 
     employee shall provide additional information relevant to the 
     panel's deliberations. A panel may consult specialists in 
     relevant fields as it determines necessary.

[[Page 21503]]

       (5) Once a panel has made a determination under paragraph 
     (3), it shall report to the Secretary its determination and 
     the basis for the determination.
       (6) A panel established under this subsection shall not be 
     subject to the Federal Advisory Committee Act (5 U.S.C. 
     App.).
       (e) Assistance.--If provided in an agreement under 
     subsection (a)--
       (1) the Secretary shall review a panel's determination made 
     under subsection (d), information the panel considered in 
     reaching its determination, any relevant new information not 
     reasonably available at the time of the panel's 
     deliberations, and the basis for the panel's determination;
       (2) as a result of the review under paragraph (1), the 
     Secretary shall accept the panel's determination in the 
     absence of significant evidence to the contrary; and
       (3) if the panel has made a positive determination under 
     subsection (d) and the Secretary accepts the determination 
     under paragraph (2), or the panel has made a negative 
     determination under subsection (d) and the Secretary finds 
     significant evidence to the contrary--
       (A) the Secretary shall assist the applicant to file a 
     claim under the appropriate State workers' compensation 
     system based on the health condition that was the subject of 
     the determination;
       (B) the Secretary thereafter--
       (i) may not contest such claim;
       (ii) may not contest an award made regarding such claim; 
     and
       (iii) may, to the extent permitted by law, direct the 
     Department of Energy contractor who employed the applicant 
     not to contest such claim or such award,

     unless the Secretary finds significant new evidence to 
     justify such contest; and
       (C) any costs of contesting a claim or an award regarding 
     the claim incurred by the contractor who employed the 
     Department of Energy contractor employee who is the subject 
     of the claim shall not be an allowable cost under a 
     Department of Energy contract.
       (f) Information.--At the request of the Secretary, a 
     contractor who employed a Department of Energy contractor 
     employee shall make available to the Secretary and the 
     employee information relevant to deliberations under this 
     section.
       (g) GAO Report.--Not later than February 1, 2002, the 
     Comptroller General shall submit to Congress a report on the 
     implementation by the Department of Energy of the provisions 
     of this section and of the effectiveness of the program under 
     this section in assisting Department of Energy contractor 
     employees in obtaining compensation for occupational illness.
       Following is explanatory language on H.R. 5408, as 
     introduced on October 6, 2000.
       References in the following to a provision of the 
     conference agreement refer to that provision in H.R. 5408.

                 Summary Statement of Conference Action

       The conferees recommend authorization for the Department of 
     Defense for procurement, research, and development, test and 
     evaluation, operation and maintenance, working capital funds, 
     military construction and family housing, weapons programs of 
     the Department of Energy, and the civil defense that have 
     budget authority implications of $309.9 billion.

                    Summary Table of Authorizations

       The defense authorization act provides authorizations for 
     appropriations but does not generally provide budget 
     authority. Budget authority is provided in appropriations 
     acts.
       In order to relate the conference recommendations to the 
     Budget Resolution, matter in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the defense function are 
     authorized permanently or, in certain instances, authorized 
     in other annual legislation. In addition, this authorization 
     bill would establish personnel levels and include a number of 
     legislative provisions affecting military compensation.
       The following table summarizes authorizations included in 
     the bill for fiscal year 2001 and, in addition, summarizes 
     the implications of the conference action for the budget 
     totals for national defense (budget function 050).

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                    Congressional Defense Committees

       The term ``congressional defense committees'' is often used 
     in this statement of managers. It means the Defense 
     Authorization and Appropriations Committee of the Senate and 
     House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

     Procurement Overview
       The budget request for fiscal year 2001 included an 
     authorization of $60,563.4 million for Procurement in the 
     Department of Defense.
       The House bill would authorize $62,593.1 million.
       The Senate amendment would authorize $63,560.6 million.
       The conferees recommended an authorization of $63,166.6 
     million. The conference agreement reflects reductions 
     reflected in the fiscal year 2001 Department of Defense 
     Appropriations Act (Public Law 106-259). Unless noted 
     explicitly in the statement of managers, all changes are made 
     without prejudice.

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[[Page 21511]]

     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $1,323.3 million for Aircraft Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $1,542.8 million.
       The Senate amendment would authorize $1,749.7 million.
       The conferees recommended an authorization of $1,550.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice. 

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     UH-60 Blackhawk
       The budget request included $81.2 million to procure six 
     UH-60L Blackhawk helicopters for the Army National Guard 
     (ARNG).
       The House bill would authorize an increase of $27.9 million 
     to procure an additional three UH-60L Blackhawks, $40.2 
     million to procure three UH-60Q medical evacuation 
     helicopters, and $3.0 million to procure two Firehawk 
     conversion kits, a total increase of $71.1 million to meet 
     additional UH-60 Blackhawk requirements for the ARNG.
       The Senate amendment would authorize an increase of $196.3 
     million to procure an additional 20 UH-60L Blackhawk aircraft 
     identified on the Army's unfunded requirements list.
       The conferees agree to authorize $179.4 million for 16 UH-
     60L aircraft for the reserve components and $26.8 million for 
     two UH-60Q aircraft for the ARNG, a total authorization of 
     $206.2 million for UH-60 Blackhawk helicopters.
     TH-67 training helicopter
       The budget request included no funding for TH-67 training 
     helicopter requirements.
       The House bill would authorize an increase of $24.0 million 
     to procure 19 TH-67 training helicopters.
       The Senate amendment would authorize an increase of $35.0 
     million to procure 19 TH-67 aircraft.
       The conferees agree to authorize an increase of $24.0 
     million to procure 19 TH-67 aircraft.
     Longbow
       The budget request included $744.8 million for AH-64 Apache 
     Longbow modifications.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $141.1 
     million for Apache recapitalization requirements.
       The conferees agree to authorize an increase of $17.5 
     million, a total authorization of $762.3 million to address 
     AH-64 Apache recapitalization requirements.
     AH-64 modifications
       The budget request included $18.5 million for AH-64 
     modifications, but included no funding to continue 
     procurement of the oil debris detection system (ODDS) or the 
     vibration management enhancement program (VMEP).
       The House bill would authorize an increase of $5.0 million 
     to continue procurement of ODDS and $7.0 million for the 
     procurement of VMEP for the Army National Guard (ARNG) AH-64 
     fleet, a total increase of $12.0 million to meet outstanding 
     AH-64 modification requirements.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million for ODDS, $5.0 million for VMEP for the ARNG AH-64 
     fleet, and $7.5 million to support critical component 
     upgrades, as identified in the Army's unfunded requirements 
     list, a total authorization of $36.0 million to address AH-64 
     modification requirements.
     UH-60 modifications
       The budget request included $3.0 million for UH-60 
     modifications.
       The House bill would authorize an increase of $9.0 million 
     for extended range fuel system modifications for Army 
     National Guard (ARNG) UH-60 Blackhawks.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $6.0 
     million for UH-60 modifications, including $3.0 million for 
     extended range fuel system modifications and $3.0 million for 
     Firehawk kits, both for the ARNG.
     Aircraft Survivability Equipment (ASE)
       The budget request contained no funding for the procurement 
     of Aircraft Survivability Equipment (ASE).
       The House bill would authorize an increase of $8.0 million 
     to upgrade the Aircraft Survivability Equipment Trainer 
     (ASET) IV systems with current IR SAM threat simulators.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $10.0 
     million for aircraft survivability equipment. Of this amount, 
     $4.0 million is for ASET IV systems upgrades and $6.0 million 
     is for laser detection kits.
     Aircrew integrated systems
       The budget request included $3.5 million for aircrew 
     integrated system equipment requirements.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.9 
     million for aircrew integrated systems to procure 12,640 
     advanced laser eye protection visors.
       The conferees agree to authorize an increase of $2.4 
     million for aircrew laser eye protection requirements, a 
     total authorization of $5.9 million for aircrew system 
     equipment requirements.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $1,295.7 million for Missile Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $1,367.7 million.
       The Senate amendment would authorize $1,382.3 million.
       The conferees recommended an authorization of $1,320.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Army tactical missile system
       The budget request included $15.0 million for Army tactical 
     missile system (ATACMS) fielding and production line 
     shutdown.
       The House bill would authorize an increase of $10.0 million 
     for the procurement of 51 ATACMS Block IV missiles.
       The Senate amendment would authorize an increase of $77.4 
     million to procure 100 ATACMS block IA missiles.
       The conferees agree to authorize an increase of $83.0 
     million, of which $6.0 million is for ATACMS block IV 
     missiles and $77.0 million is to procure 100 ATACMS block IA 
     missiles, a total authorization of $98.0 million.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $1,874.6 million for Weapons and Tracked 
     Combat Vehicles Procurement, Army in the Department of 
     Defense.
       The House bill would authorize $2,167.9 million.
       The Senate amendment would authorize $2,115.1 million.
       The conferees recommended an authorization of $2,436.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21520]]

     Bradley base sustainment
       The budget request included $359.4 million for the 
     procurement of Bradley A3 fighting vehicle upgrades, of which 
     $6.1 million was included for fielding Army National Guard 
     (ARNG) A2 Operation Desert Storm (ODS) variants.
       The House bill would authorize an increase of $81.3 million 
     for upgrading an additional 65 Bradley A0 vehicles to the 
     A2ODS variant for ARNG.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $72.3 
     million for ARNG Bradley A2ODS conversions.
     Improved recovery vehicle
       The budget request included $68.4 million to procure 
     improved recovery vehicles (IRVs) but included no funding for 
     the procurement of IRVs for the Army Reserve.
       The House bill would authorize an increase of $8.3 million 
     for additional M88A2 IRV upgrades for the Army Reserve.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $6.0 
     million for additional M88A2 IRV upgrades for the Army 
     Reserve, a total authorization of $74.4 million.
     Heavy assault bridge system modifications
       The budget request included no funding to continue 
     procurement of the heavy assault bridge system (HAB).
       The House bill would authorize an increase of $59.2 million 
     for 12 vehicles and an increase of $13.1 million in advanced 
     procurement for fiscal year 2002 to maintain HAB production.
       The Senate amendment would authorize an increase of $77.0 
     million to restore the Wolverine heavy assault bridge program 
     and a corresponding decrease of $15.2 million to the AVLB 
     SLEP program.
       The conferees agree to authorize an increase of $77.0 
     million for the heavy assault bridge program, a total 
     authorization of $77.0 million. Accordingly, the conferees 
     expect the Secretary of the Army to budget for the HAB 
     through the future years defense program.
     Army Transformation
       The budget request included $537.1 million, sufficient 
     funds to procure equipment and to field the first interim 
     brigade combat team as part of the Army transformation 
     initiative.
       The House bill and Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a total increase of $600.0 
     million for the Army transformation initiative, which 
     includes:
       (1) $100.0 million for medium armored vehicle procurement;
       (2) $300.0 million for medium armored vehicles for a second 
     interim brigade combat team; and
       (3) $200.0 million for other support equipment for a second 
     interim brigade combat team.
     Machine gun, squad automatic weapon
       The budget request included no funding for the squad 
     automatic weapon (SAW).
       The House bill would authorize an increase of $18.3 million 
     to complete the procurement of the M249 SAW system.
       The Senate amendment would authorize an increase of $18.3 
     million to procure 4,280 weapons and complete the acquisition 
     of the SAW system.
       The conferees agree to authorize an increase of $17.0 
     million for the procurement of 4,280 weapons and complete the 
     acquisition of the SAW system, a total authorization of $17.0 
     million.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $1,131.3 million for Ammunition Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $1,199.3 million.
       The Senate amendment would authorize $1,224.3 million.
       The conferees recommended an authorization of $1,179.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     155MM Sense and Destroy Armor Munition M898
       The budget request included $14.9 million for the Sense and 
     Destroy Armor Munition.
       The House bill and the Senate amendment would authorize the 
     budget request for this program.
       Consistent with the outcome of the Department of Defense 
     Appropriations Act, 2001 (Public Law 106-259), the conferees 
     agree to authorize a decrease of $14.9 million for this 
     program.
       If the Secretary of the Army determines that it is 
     important for the Army to continue this program, the 
     conferees encourage the Secretary to submit a reprogramming 
     request.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $3,795.9 million for Other Procurement, Army 
     in the Department of Defense.
       The House bill would authorize $4,095.3 million.
       The Senate amendment would authorize $4,027.2 million.
       The conferees recommended an authorization of $4,235.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21533]]

     Tactical trailers/dolly sets
       The budget request included no funding for tactical 
     trailers and dolly sets.
       The House bill would authorize an increase of $3.8 million 
     for heavy tactical vehicle requirements for Army National 
     Guard (ARNG) multiple launch rocket system (MLRS) battalion 
     conversions.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.8 
     million for heavy expanded mobility ammunition trailers for 
     ARNG MLRS battalion conversions.
     High mobility multipurpose-wheeled vehicle
       The budget request included $110.7 million for 1,002 A2 
     model high mobility multipurpose-wheeled vehicle (HMMWVA2s), 
     which incorporates upgraded electrical, braking, engine and 
     transmission improvements, as well as a 15-year corrosion 
     prevention program, but included no funding for HMMWVs to 
     fill critical shortages in Army Reserve combat support and 
     combat service support units.
       The House bill would authorize an increase of $5.0 million 
     for 100 Army Reserve HMMWVA2s.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million for the procurement of 60 HMMWVA2s for the Army 
     Reserve, a total authorization of $113.7 million for 1,062 
     HMMWVs.
     Family of medium tactical vehicles
       The budget request included $438.3 million to procure 
     family of medium tactical vehicle (FMTV) trucks to replace an 
     aging fleet of medium trucks found in the Army today.
       The House bill would authorize an increase of $35.0 million 
     for additional Army Reserve trucks.
       The Senate amendment would authorize an increase of $43.0 
     million to procure additional FMTV trucks necessary to 
     accelerate the fielding of these trucks to reserve component 
     units.
       The conferees agree to authorize an increase of $37.3 
     million to procure additional FMTV trucks for the reserve 
     components, a total authorization of $475.6 million.
     Fire trucks and associated firefighting equipment
       The budget request included $14.8 million for fire trucks 
     and associated firefighting equipment.
       The House bill would authorize an increase of $1.2 million 
     for heavy expanded mobility tactical truck (HEMTT) fire 
     trucks for the Army Reserve.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $1.2 
     million for procurement of additional HEMTT fire trucks for 
     the Army Reserve, a total authorization of $16.0 million.
     M915/M916 line haul truck tractor
       The budget request included $43.0 million for M915A3 line 
     haul tractors, of which $3.4 million was included for M915A3s 
     for the Army Reserve.
       The House bill would authorize an increase of $1.6 million 
     for the procurement of 12 additional upgraded M915A3 tractors 
     for the Army Reserve.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $1.0 
     million for the procurement of additional upgraded M915A3 
     tractors for the Army Reserve, a total authorization of $44.0 
     million.
     Weapons of Mass Destruction Civil Support Teams
       The budget request included $76.4 million to sustain 27 
     Weapons of Mass Destruction Civil Support Teams (WMD-CSTs).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $25.0 
     million for the WMD-CST program. This funding would establish 
     five additional WMD-CSTs and provide additional equipment for 
     the WMD-CST program, as follows: $3.2 million in military 
     personnel; $7.5 million in Operations and Maintenance, Army; 
     $1.8 million in Contamination Avoidance, Chemical Biological 
     Defense Program, Procurement, Defense-Wide; and $12.5 million 
     in Special Purpose Vehicles, Other Procurement, Army. Of the 
     amounts included in the categories specified, $4.0 million of 
     the $12.5 million in Special Purpose Vehicles, Other 
     Procurement, Army would be for the purchase of two additional 
     Unified Command Suites (UCS) and Mobile Analytical Labs 
     (MALS) and for the purchase of 35 tactical mobility systems 
     for use by the WMD-CSTs. The remainder of the funding would 
     be for the five additional WMD-CSTs.
       The conferees agree to authorize an increase of $15.7 
     million for the establishment of five additional WMD-CSTs, as 
     follows: $3.2 million in military personnel; $5.9 million in 
     Operations and Maintenance, Army; $900,000 in Contamination 
     Avoidance, Chemical Biological Defense Program, Procurement, 
     Defense-Wide; and $5.7 million in Special Purpose Vehicles, 
     Other Procurement, Army.
     Army data distribution system
       The budget request included $32.7 million for Army data 
     distribution system (ADDS) requirements.
       The House bill would authorize an increase of $18.5 million 
     to procure Enhanced Position Reporting System (EPLRS) radios 
     for an Army National Guard (ARNG) enhanced brigade.
       The Senate amendment would authorize an increase of $5.3 
     million to support EPLRS software development requirements 
     and $27.3 million to procure 634 EPLRS systems and accelerate 
     efforts to meet the Army acquisition objective for this 
     system, a total increase of $32.6 million.
       The conferees agree to authorize an increase of $37.5 
     million for ADDS requirements, including $24.2 million for 
     the procurement of EPLRS to be allocated according to Army 
     priorities, $8.0 million for ARNG EPLRS, and $5.3 million for 
     EPLRS software development, a total authorization of $70.2 
     million for ADDS requirements.
     Single channel ground and airborne radio systems family
       The budget request included $18.3 million for the 
     procurement and the fielding of airborne single channel 
     ground and airborne radio systems (SINCGARS), but included no 
     funding to procure SINCGARS advanced system improvement 
     program (ASIP) radios for the Army National Guard (ARNG).
       The House bill would authorize an increase of $30.7 million 
     to procure SINCGARS ASIP radios for one ARNG division.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $20.0 
     million for ARNG requirements and $10.0 million for active 
     Army requirements, a total authorization of $48.3 million for 
     the procurement of SINCGARS.
     Area common user system modification program
       The budget request included $114.0 million for area common 
     user system (ACUS) modification program requirements.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $60.0 
     million to procure 27 down-sized communications switches and 
     229 high mobility DGM assemblages (HMDA) devices and an 
     increase of $14.0 million to accelerate the fielding of 2,901 
     TS-21 Blackjack secure facsimile machines.
       The conferees agree to authorize an increase of $60.0 
     million for ACUS, a total authorization of $174.0 million. Of 
     this amount, $51.0 million is for down-sized communications 
     switches and HMDA equipment and $9.0 million is for TS-21 
     Blackjack secure facsimile machines.
     Night vision devices
       The budget request included $34.1 million for Army night 
     vision devices, of which $29.5 million was included for AN/
     PVS-7 night vision goggles. However, no funding was included 
     for third generation, 25 millimeter (mm) image 
     intensification tube upgrades.
       The House bill would authorize an increase of $12.0 million 
     for AN/PVS-7 night vision goggles. Of this amount, $400,000 
     would be used to procure goggles for Army Reserve combat 
     support units and $8.4 million would be used to procure third 
     generation, 25mm image intensification tube upgrades.
       The Senate amendment would authorize an increase of $48.0 
     million for the procurement of night vision devices, as 
     follows:
       (1) an increase of $18.1 million to procure 5,000 AN/PEQ-2A 
     and 10,000 AN/PAC-4C target pointer/aiming lights;
       (2) an increase of $14.9 million to procure 18,600 AN/PVS-7 
     night vision binoculars; and
       (3) an increase of $15.0 million to procure 25mm image 
     intensification tubes for AN/PVS-4 and AN/TVS-5 night vision 
     weapon scopes.
       The conferees agree to authorize an increase of $32.0 
     million for night vision devices, as follows:
       (1) an increase of $8.0 million to procure AN/PVS-7;
       (2) an increase of $6.0 million to procure 25mm image 
     intensification tubes;
       (3) an increase of $15.0 million to procure AN/PEQ-2A and 
     AN/PAC-4C; and
       (4) an increase of $3.0 million to procure miniature 
     eyesafe lasers.
     Combat identification/aiming light
       The budget request included $8.0 million for combat 
     identification/aiming light requirements.
       The House bill would authorize an increase of $3.0 million 
     for combat identification/aiming light engineering and 
     manufacturing development requirements.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million to support outstanding combat identification/aiming 
     light requirements.
     Standard integrated command post system
       The budget request included $36.0 million to procure 
     standard integrated command post systems (SICPS), of which 
     $1.3 million was included for modular command post system 
     (MCPS) tents.
       The House bill would authorize an increase of $2.0 million 
     and $3.0 million respectively, to procure MCPS for active and 
     Army National Guard units.
       The Senate amendment would authorize an increase of $17.5 
     million to procure additional SICPS.

[[Page 21534]]

       The conferees agree to authorize an increase of $11.5 
     million, a total authorization of $47.5 million for SICPS/
     MCPS procurement. 
     Automated data processing equipment
       The budget request included $172.1 million for procurement 
     of automated data processing equipment (ADPE), of which 
     $485,000 was included for automatic identification technology 
     (AIT).
       The House bill would authorize an increase of $6.0 million 
     for maintenance AIT implementation.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.0 
     million for Army National Guard distance learning courseware 
     and an increase of $4.0 million for maintenance AIT 
     implementation, a total authorization of $180.1 million for 
     ADPE.
     Ribbon bridge
       The budget request included $15.7 million for ribbon bridge 
     equipment but included no funding to procure this equipment 
     for Army National Guard (ARNG) multi-role bridge companies 
     (MRBC).
       The House bill would authorize an increase of $27.0 million 
     to accelerate the fielding of two ARNG MRBC.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $14.5 
     million to procure ribbon bridge equipment for reserve 
     component requirements, a total authorization of $30.2 
     million.
     Laundries, showers, and latrines
       The budget request included $12.6 million to procure the 
     laundry advanced system (LADS).
       The House bill would authorize an increase of $9.0 million 
     to accelerate procurement of LADS.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.0 
     million for LADS, a total authorization of $16.6 million.
     Combat support medical
       The budget request included $31.6 million to procure 
     deployable medical systems and field medical equipment, but 
     included no funding for rapid intravenous (IV) infusion pumps 
     or for life support trauma and transport (LSTAT) units. The 
     budget request also contained $6.3 million in PE 64807A, but 
     included no funds for LSTAT.
       The House bill would authorize an increase of $18.0 million 
     for the procurement of combat support medical, as follows:
       (1) an increase of $8.0 million to procure rapid IV 
     infusion pumps;
       (2) an increase of $6.0 million to begin procurement of 
     LSTAT units; and
       (3) an increase of $4.0 million in PE64807A for development 
     of expanded LSTAT capabilities.
       The Senate amendment would authorize an increase of $6.0 
     million for rapid IV pumps.
       The conferees agree to authorize an increase of $5.0 
     million for rapid IV pumps, a total authorization of $36.6 
     million for combat support medical equipment.
     Roller, vibratory, self-propelled
       The budget request included $4.7 million for self-propelled 
     vibratory roller systems.
       The House bill would authorize an increase of $7.0 million 
     to procure 96 additional vibratory self-propelled rollers, 
     including $3.0 million for active Army units and $4.0 million 
     for Army Reserve units.
       The Senate amendment would authorize an increase of $5.0 
     million to procure 80 vehicles necessary to meet the 
     requirements of Army engineer units.
       The conferees agree to authorize an increase of $4.0 
     million for Army Reserve units and an increase of $3.0 
     million for active component units, a total authorization of 
     $11.7 million for the procurement of roller, vibratory, self-
     propelled vehicles.
     Hydraulic excavator
       The budget request included $8.3 million for procurement of 
     hydraulic excavator (HYEX) equipment.
       The House bill would authorize an increase of $2.3 million 
     for 13 additional Type I HYEX systems for the Army Reserve.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $1.5 
     million for the procurement of HYEX systems for the Army 
     Reserve, a total authorization of $9.8 million.
     Deployable universal combat earth mover
       The budget request included $14.1 million to procure 
     deployable universal combat earth mover (DEUCE) equipment.
       The House bill would authorize an increase of $10.2 million 
     to begin fielding DEUCE systems for the Army's interim 
     brigade.
       The Senate amendment would authorize an increase of $7.0 
     million to procure 18 DEUCE vehicles.
       The conferees agree to authorize an increase of $10.2 
     million for the procurement of 30 additional DEUCE vehicles, 
     a total authorization of $24.3 million.
     Construction equipment service life extension program
       The budget request included $2.0 million for service life 
     extensions to various types of construction equipment, but 
     included no funding to conduct an Army National Guard (ARNG) 
     D-7 dozer and Army Reserve heavy grader and scraper service 
     life extension program (SLEP).
       The House bill would authorize an increase of $10.0 
     million, of which $5.0 million is for an ARNG D-7 dozer SLEP 
     and $5.0 million is for an Army Reserve heavy scraper and 
     grader SLEP.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $10.0 
     million, of which $5.0 million is for an ARNG D-7 dozer SLEP 
     and $5.0 million is for an Army Reserve heavy scraper and 
     grader SLEP, a total authorization of $12.0 million.
     Small tug
       The budget request included no funding to procure small 
     tugs for the Army to tow general cargo barges in harbors, 
     inland waterways and along coastlines.
       The House bill would authorize an increase of $9.0 million 
     to accelerate procurement of three vessels towards completion 
     of the requirement of 15 small tugs.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $9.0 
     million for the procurement of three vessels towards 
     completion of the requirement of 15 small tugs.
     Combat training center instrumentation support
       The budget request included $81.8 million for combat 
     training center support, but included no funding for either 
     the Army National Guard (ARNG) deployable force-on-force 
     instrumented range system (DFIRST) or the multi-purpose range 
     complex-heavy (MPRC-H).
       The House bill would authorize an increase of $3.2 million 
     for MPRC-H targetry electronic upgrades and $10.5 million for 
     three additional DFIRST systems to continue force-on-force 
     simulation-based training at regional training centers, a 
     total increase of $12.7 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $11.6 
     million for combat training centers. Of this amount, $9.6 
     million would be for additional DFIRST systems for the ARNG 
     and $2.0 million would be for MPRC-H upgrades, a total 
     authorization of $93.4 million.
     Nonsystem training devices
       The budget request included $91.9 million for procurement 
     of training device and range modernization requirements.
       The House bill would authorize an increase of $8.0 million 
     to procure 30 engagement skills trainer (EST) 2000 systems 
     and an increase of $9.0 million for the first increment of a 
     three-year Abrams full-crew interactive skills trainer (A-
     FIST) XXI conversion program, both for the Army National 
     Guard (ARNG), a total increase of $17.0 million for non-
     system training devices.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $9.0 
     million for the procurement of training device and range 
     modernization requirements. Of this amount, $5.0 million 
     would be for the procurement of ARNG EST 2000 systems and 
     $4.0 million would be for the first increment of a three year 
     ARNG A-FIST XXI conversion program, a total authorization of 
     $100.9 million.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $1,003.5 million for Chemical Agents and 
     Munitions Destruction, Army.
       The House bill would authorize no funding for Chemical 
     Agents and Munitions Destruction, Army, but would transfer 
     the authorization of $877.1 million for Chemical Agents and 
     Munitions Destruction, Defense.
       The Senate amendment would authorize no funding for 
     Chemical Agents and Munitions Destruction, Army but would 
     transfer the authorization of $1,003.5 million for Chemical 
     Agents and Munitions Destruction, Defense.
       The conferees agree to authorize $980.1 million for 
     Chemical Agents and Munitions Destruction, Army. Unless noted 
     explicitly in the conference agreement, all changes are made 
     without prejudice.

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[[Page 21536]]

     Chemical Agents and Munitions Destruction, Army
       The budget request for the Army included $1.0 billion for 
     Chemical Agents and Munitions Destruction, Army.
       The House bill would authorize no funding for Chemical 
     Agents and Munitions Destruction, Army, but contained a 
     provision (sec. 106) that would authorize $877.1 million for 
     Chemical Agents and Munitions Destruction, Defense, for 
     destruction of the lethal chemical agents and munitions 
     stockpile pursuant to section 1412 of the Department of 
     Defense Authorization Act for Fiscal Year 1986 (Public Law 
     99-45) and destruction of chemical warfare materiel not 
     covered by section 1412 of the Act, a decrease of $126.4 
     million.
       The Senate amendment would authorize no funding for 
     Chemical Agents and Munitions Destruction, Army, but 
     contained a provision (sec. 106) that would authorize $1.0 
     billion for Chemical Agents and Munitions Destruction, 
     Defense.
       The conferees agree to authorize $980.1 million for 
     Chemical Agents and Munitions Destruction, Army, including 
     $274.4 million for research and development, $105.7 million 
     for procurement, and $600.0 million for operations and 
     maintenance.
       Section 1521(f) of title 50, United States Code, requires 
     that funding for the chemical agents and munitions 
     destruction program, including funds for military 
     construction projects, shall be set forth in the budget of 
     the Department of Defense as a separate account, and shall 
     not be included in the budget accounts for any military 
     department. The conferees expect that the Secretary of 
     Defense will comply with these requirements in any future 
     budget request for the chemical agents and munitions 
     destruction program.
       The conferees recognize that uncertainties in program 
     requirements and execution create the potential for 
     additional funding requirements that may have to be addressed 
     during fiscal year 2001. The conferees encourage the 
     Secretary to identify requirements for additional funds that 
     may be required in fiscal year 2001 to ensure execution of 
     the program and to make appropriate recommendations for 
     reprogramming or other actions necessary to provide those 
     funds at the earliest opportunity.
       Chemical stockpile emergency preparedness project
       The budget request for the chemical agents and munitions 
     destruction program included $600,000 in procurement funds 
     for minor equipment replacement and $66.7 million for 
     chemical stockpile emergency preparedness program (CSEPP) 
     operations and maintenance. The conferees note that funds 
     provided for CSEPP in fiscal years 1999 and 2000 were subject 
     to a decrease of approximately nine percent and eight 
     percent, respectively, as a pro-rata share of the decrease to 
     the chemical agents and munitions destruction account. 
     Because of the potential impact of such reductions on the 
     safety of those living and working near or on the chemical 
     stockpile storage and destructions sites, the conferees 
     direct that funding for CSEPP shall be at the requested 
     level.
       Non-stockpile chemical materiel project
       The House report accompanying H.R. 4205 (H. Rept. 106-616) 
     noted that an independent assessment of the non-stockpile 
     project had raised several issues with respect to the project 
     and recommended examination of project schedule and cost 
     risks to quantify the potential risks, ultimate costs, and 
     time required to complete the project. The report expressed 
     the belief that these issues must be addressed before 
     proceeding further with development and acquisition of 
     integrated transportable treatment systems for non-stockpile 
     chemical materiel. The conferees note that following 
     submission of the fiscal year 2001 budget request, the 
     project manager for chemical demilitarization, conducted a 
     major review of the non-stockpile project, rebaselined the 
     current project, and is considering the results of on-going 
     analysis and non-stockpile cost containment efforts that 
     could result in significant further changes to the project 
     that would have both cost and schedule implications. The 
     conferees direct that these issues, and planned and 
     recommended changes to the non-stockpile chemical materiel 
     project, schedule, and funding requirements be addressed in 
     an addendum to the fiscal year 2000 annual report to Congress 
     on the chemical demilitarization program to be submitted with 
     the fiscal year 2002 budget request.
       Destruction of non-stockpile chemical materiel in stockpile 
           facilities
       Section 141 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65) amended subsection 
     1412(c) of the National Defense Authorization Act for Fiscal 
     Year 1986 (Public Law 99-45) to allow non-stockpile chemical 
     agents, munitions, or related materials specifically 
     designated by the Secretary of Defense to be destroyed at 
     stockpile facilities if the affected states have issued the 
     appropriate permits. In the statement of managers 
     accompanying the National Defense Authorization Act for 
     Fiscal Year 2000, the conferees stated the expectation that 
     site specific decisions relative to the issue of such permits 
     would be arrived at in accordance with review processes that 
     permit the views of the local jurisdictions to be considered.
       The conferees note that federal, state, and local 
     environmental laws and regulations require the Army to obtain 
     permits for construction and the conduct of operations at 
     each of the chemical weapons destruction facilities that are 
     specific to the particular disposal site and the proposed 
     chemical destruction operations to be conducted at the site. 
     The conferees also note that established procedures for the 
     review and approval of such statements, assessments, and 
     permits provide for periods of public review and comment, and 
     opportunities for consideration of the views of the local 
     jurisdictions.
       The conferees further note that the Environmental 
     Protection Agency has delegated to the individual states the 
     authority to administer and enforce the hazardous waste 
     disposal requirements relative to those sites, and 
     consequently decisions to approve permits required for the 
     construction and operation of the chemical stockpile 
     demilitarization facilities and for destruction of non-
     stockpile material are reserved to the states in which those 
     sites are located. The conferees reiterate that it is the 
     intent of Congress that the views of local jurisdictions in 
     which the sites are located are a major factor to be 
     considered in the permit and review process and in any 
     decision by state authorities regarding such permits.
       Overview
       The budget request for fiscal year 2001 included an 
     authorization of $7,963.9 million for Aircraft Procurement, 
     Navy in the Department of Defense.
       The House bill would authorize $8,205.8 million.
       The Senate amendment would authorize $8,686.0 million.
       The conferees recommended an authorization of $8,394.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     F/A-18E/F aircraft
       The budget request included $2.819 billion for the 
     procurement of 42 F/A-18E/F aircraft on a multiyear contract.
       The House bill would authorize a decrease of $205.8 
     million, a total authorization of $2.613 billion for the 
     procurement of 39 F/A-18E/F aircraft.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize a decrease of $13.0 
     million due to production engineering support cost growth, a 
     total authorization of $2.806 billion for the procurement of 
     42 F/A-18E/F aircraft.
     SH-60R helicopter
       The budget request included $162.3 million for the 
     procurement of four remanufactured SH-60R helicopters, 
     including the airborne low frequency sonar system (ALFS).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $82.1 
     million for the procurement of three additional 
     remanufactured SH-60R helicopters and an increase of $6.0 
     million for ALFS, a total increase of $88.1 million.
       The conferees agree to authorize an increase of $47.3 
     million, as follows:
       (1) an increase of $52.4 million for the procurement of two 
     additional remanufactured SH-60R helicopters;
       (2) an increase of $4.9 million for ALFS;
       (3) a decrease of $5.0 million due to cost growth in non-
     recurring items; and
       (4) a decrease of $5.0 million due to avionics support 
     equipment that can be deferred.
     UC-35 aircraft
       The budget request included no funding for the procurement 
     of UC-35 medium range operational support aircraft.
       The House bill would authorize an increase of $15.2 million 
     for the procurement of two UC-35 aircraft.
       The Senate amendment would authorize an identical increase.
       The conferees agree to authorize an increase of $7.6 
     million for the procurement of one UC-35 aircraft for the 
     Marine Corps.
     F-18 series modifications
       The budget request included $212.6 million for F-18 
     modifications.
       The House bill would authorize an increase of $103.7 
     million for F-18 modifications, as follows:
       (1) an increase of $86.9 million to procure additional ECP-
     583 upgrade kits for Marine Corps F/A-18A active and reserve 
     component aircraft;
       (2) an increase of $31.0 million to procure ECP-560 upgrade 
     kits for Naval Reserve F/A-18A aircraft;
       (3) an increase of $9.6 million to procure advanced 
     targeting forward-looking infrared (ATFLIR) pods for the 
     Marine Corps Reserve F/A-18 aircraft; and
       (4) a decrease of $23.8 million due to test results of the 
     advanced tactical airborne reconnaissance system (ATARS).
       The Senate amendment would authorize an increase of $46.0 
     million to upgrade F/A-18A aircraft with ECP-583.
       The conferees agree to authorize an increase of $51.6 
     million for F-18 modifications, as follows:
       (1) $46.0 million for ECP-583 for the Marine Corps active 
     and reserve components;
       (2) $7.0 million for ATFLIR for the Marine Corps Reserve;
       (3) $3.0 million for tactical aircraft moving map 
     capability (TAMMAC); and
       (4) a decrease of $4.4 million for premature ATFLIR 
     modifications and installation equipment.
     AH-1 series modifications
       The budget request included $9.8 million for Marine Corps 
     AH-1 aircraft modifications.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.0 
     million to procure four night targeting systems (NTS) for 
     reserve component AH-1 series aircraft.
       The conferees agree to authorize an increase of $4.0 
     million to procure four night targeting systems for AH-1 
     aircraft.
     H-53 series modifications
       The budget request included $19.9 million for Marine Corps 
     H-53 aircraft modification requirements.
       The House bill would authorize an increase of $15.0 million 
     for AN/AAQ-29 forward looking infrared (FLIR) system 
     modifications. Of this amount, $12.4 million would be for 
     modifying active component H-53 aircraft and $2.6 million 
     would be for modifying Marine Corps Reserve H-53 aircraft.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $1.8 
     million, a total authorization of $21.7 million for AN/AAQ-29 
     FLIR modifications for Marine Corps Reserve aircraft.
     H-1 series modifications
       The budget request included $2.6 million for Marine Corps 
     H-1 aircraft requirements.
       The House bill would authorize an increase of $17.5 million 
     for the H-1 reclamation and conversion program.
       The Senate amendment would authorize an increase of $27.5 
     million for H-1 aircraft requirements. Of this amount, $10.0 
     million would be for thermal imaging systems for fielded 
     aircraft to support flight operations at night and $17.5 
     million would be for the H-1 reclamation and conversion 
     program.
       The conferees agree to authorize a total of $15.6 million 
     for H-1 series aircraft requirements. This includes an 
     increase of $7.0 million for thermal imaging systems and an 
     increase of $6.0 million for the H-1 reclamation and 
     conversion program.
     EP-3 aircraft modifications
       The budget request included $25.8 million for modifications 
     to the EP-3 aircraft.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $25.3 
     million to reflect funds that were provided for EP-3 
     modifications to the Department of Defense in the Emergency 
     Supplemental Act, 2000 (division B of Public Law 106-246), a 
     total authorization of $533,000.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $1,434.3 million for Weapons Procurement, 
     Navy in the Department of Defense.
       The House bill would authorize $1,562.3 million.
       The Senate amendment would authorize $1,540.0 million.
       The conferees recommended an authorization of $1,443.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Trident II advance procurement
       The budget request included $28.8 million for Trident II 
     advance procurement.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $19.3 
     million for Trident II advance procurement, a total 
     authorization of $9.5 million.
       The conferees note that a significant part of the budget 
     request was for the purchase of missile parts that will not 
     be needed until the later years of the current Future Years 
     Defense Program. However, the conferees are aware that the 
     supplier base for the Trident II ballistic missile program is 
     rapidly declining and that certain suppliers may no longer be 
     available in the outyears. Therefore, the conferees direct 
     the Secretary of the Navy to evaluate the Trident II supplier 
     base to determine if any additional advance procurement funds 
     are required in fiscal year 2001. If the Secretary determines 
     that additional advance procurement funds are necessary 
     during fiscal year 2001 to purchase parts that will not be 
     available in subsequent years, the conferees invite the 
     Secretary to seek a reprogramming for this purpose.
     Drones and decoys
       The budget request included no funding for drones and 
     decoys.
       The House bill would authorize an increase of $10.0 million 
     for aerial targets for the procurement of improved tactical 
     air-launched decoys (ITALDs).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $10.0 million in drones 
     and decoys for the procurement of ITALDs.
     Weapons industrial facilities
       The budget request included $21.3 million for various 
     activities at government-owned and contractor-operated 
     weapons industrial facilities.
       The House bill would authorize a decrease of $1.0 million 
     for weapons industrial facilities.
       The Senate amendment would authorize an increase of $7.7 
     million to accelerate the facilities restoration program at 
     the Allegany Ballistics Laboratory.
       The conferees agree to authorize an increase of $7.7 
     million for the facilities restoration program at the 
     Allegany Ballistics Laboratory.
     Mark 48 advanced capability torpedo modifications
       The budget request included $16.4 million for Mark 48 
     advanced capability (ADCAP) torpedo modifications.
       The House bill would authorize a decrease of $1.0 million 
     for Mark 48 ADCAP torpedo.
       The Senate amendment would authorize an increase of $2.0 
     million for Mark 48 ADCAP modifications to field improved 
     capability for littoral operations in the submarine fleet as 
     soon as possible.
       The conferees agree to authorize an increase of $2.0 
     million for Mark 48 ADCAP modifications.
     Close-in weapons system modifications
       The budget request included $964,000 for modifications to 
     the close-in weapons system (CIWS) for surface ships.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $30.0 
     million for the procurement and modification of CIWS mounts 
     to the block 1B configuration.
       The conferees agree to authorize an increase of $25.0 
     million for CIWS block 1B modifications.
     Gun mount modifications
       The budget request included $4.8 million for the 
     procurement and installation of modifications to surface ship 
     gun mounts.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $30.0 
     million for the procurement of modifications to five inch 54 
     caliber guns for surface ships.
       The conferees agree to authorize an increase of $25.0 
     million for modifications to five inch 54 caliber guns for 
     surface ships.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $429.6 million for Ammunition Procurement, 
     Navy and Marine Corps in the Department of Defense.
       The House bill would authorize $481.3 million.
       The Senate amendment would authorize $500.7 million.
       The conferees recommended an authorization of $487.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21546]]

     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $12,296.9 million for Shipbuilding and 
     Conversion, Navy in the Department of Defense.
       The House bill would authorize $11,982.0 million.
       The Senate amendment would authorize $12,900.1 million.
       The conferees recommended an authorization of $12,826.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21549]]

     DDG-51 destroyers
       The budget request included $2.7 billion for the 
     procurement of three Arleigh Burke-class DDG-51 destroyers.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees note recent developments that indicate basic 
     construction cost growth for DDG-51 destroyers. Therefore, 
     the conferees agree to authorize a decrease of $10.0 million 
     for the procurement of three DDG-51 destroyers.
     LHD-8 advance procurement
       The Future Year Defense Program (FYDP) accompanying the 
     budget request included LHD-8 advance procurement in fiscal 
     year 2004 and full funding in fiscal year 2005.
       The House bill would authorize an increase of $10.0 million 
     for advance procurement of LHD-8.
       The Senate amendment would authorize an increase of $460.0 
     million to continue the advance procurement and advance 
     construction of components for the LHD-8 amphibious ship.
       The conferees agree to authorize an increase of $460.0 
     million to continue the advance procurement and advance 
     construction of components for the LHD-8 amphibious ship.
     Ship outfitting
       The budget request included $301.1 million for outfitting 
     new construction ships with initial on board repair parts and 
     equipage.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to a $10.0 million decrease for ship 
     outfitting resulting from recent adjustments to the LPD-17 
     procurement.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $3,334.6 million for Other Procurement, Navy 
     in the Department of Defense.
       The House bill would authorize $3,432.0 million.
       The Senate amendment would authorize $3,378.3 million.
       The conferees recommended an authorization of $3,380.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21558]]

     Surveillance and security for military sealift ships
       The budget request included no funding for thermal imaging 
     surveillance and security for military sealift ships.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.0 
     million for thermal imaging surveillance and security 
     procurement and installation on Military Sealift Command 
     (MSC) ships.
       The conferees agree to authorize an increase of $4.0 
     million for thermal imaging surveillance and security 
     procurement and installation on MSC ships.
     AN/WSN-7 inertial navigation system
       The budget request included $7.3 million for procurement of 
     AN/WSN-7 ring laser inertial navigation systems.
       The House bill would authorize an increase of $12.0 million 
     for AN/WSN-7 navigation sets.
       The Senate amendment would authorize an increase of $7.0 
     million for the procurement and installation of additional 
     AN/WSN-7 navigation sets.
       The conferees agree to authorize an increase of $10.0 
     million for the procurement and installation of additional 
     AN/WSN-7 navigation sets.
     Integrated condition assessment system
       The budget request included $11.3 million for the 
     integrated condition assessment system (ICAS) for ships. The 
     ICAS is a system that electronically monitors the operating 
     parameters of machinery and electronic systems, thus reducing 
     man-hours spent taking readings on equipment.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.0 
     million for procurement and installation of ICAS equipment 
     for surface ships.
       The conferees agree to authorize an increase of $4.0 
     million for procurement and installation of ICAS equipment 
     for surface ships.
     AN/SPS-73(V) surface search radar
       The budget request included no funding for procurement and 
     installation of AN/SPS-73(V) surface search radars which 
     would replace a number of aging radars on surface ships with 
     one radar.
       The House bill would authorize an increase of $14.0 million 
     for the procurement and installation of AN/SPS-73(V) radars.
       The Senate amendment would authorize an increase of $8.0 
     million for the procurement and installation of AN/SPS-73(V) 
     radars.
       The conferees agree to authorize an increase of $14.0 
     million for the procurement and installation of AN/SPS-73(V) 
     radars.
     Nuclear attack submarine acoustics
       The budget request included $106.6 million for nuclear 
     attack submarine (SSN) acoustics but included no funding for 
     the refurbishment and upgrade of TB-23 submarine towed 
     arrays.
       The House bill would authorize an increase of $8.0 million 
     to sustain the TB-23 array refurbishment and upgrade program.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $6.0 
     million for the TB-23 array refurbishment and upgrades.
       Conferees note that the Navy intends to upgrade all 
     submarine towed acoustics arrays with the TB-29A array 
     beginning in fiscal year 2002 but at a rate that will require 
     the TB-23 array to remain in service for at least the next 
     decade.
     Sonar support equipment
       The budget request included no funding for sonar support 
     equipment and included no funding for surface sonar windows 
     and domes.
       The House bill would authorize an increase of $5.0 million 
     in undersea warfare support equipment to complete development 
     of production tooling and fabrication of the first production 
     sonar dome with a new material system.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million for completing development and validation of a new 
     sonar dome material fabrication process including production 
     tooling and fabrication of the first production sonar dome.
     Shipboard indications and warnings exploit
       The budget request included $61.5 million for shipboard 
     equipment to exploit indications and warnings (IW) from 
     sources outside the ship.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $500,000 for 
     shipboard IW exploit due to recent contract savings.
     Side-scanning sonar for forward deployed minesweepers
       The budget request included no funding for side-scanning 
     sonar for forward deployed minesweepers.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.0 
     million for the procurement and installation of a side-
     scanning sonar in a forward deployed minesweeper to enhance 
     the ability to detect and classify bottom mines.
       The conferees agree to authorize an increase of $4.0 
     million for the procurement and installation of a commercial 
     off-the-shelf side-scanning sonar in a forward deployed 
     minesweeper.
     Shallow water mine countermeasures
       The budget request included $16.9 million for shallow water 
     mine countermeasures equipment.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $500,000 for 
     shallow water mine countermeasures due to recent contract 
     savings.
     Other training equipment
       The budget request included $21.4 million for other 
     training equipment, including $16.4 million for the 
     procurement of equipment to support battle force tactical 
     training (BFTT) programs.
       The House bill would authorize an increase of $4.0 million 
     to upgrade the BFTT system in order to provide an air traffic 
     control (ATC) training capability for aircraft carrier crews.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.0 
     million to upgrade the BFTT system for ATC training aboard 
     aircraft carriers.
     Joint tactical terminal
       The budget request included $32,000 for program support for 
     tactical terminals including the joint tactical terminal 
     (JTT).
       The House bill would authorize an increase of $6.0 million 
     for procurement and installation of additional JTT.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $6.0 
     million for procurement and installation of additional JTT.
     Joint engineering data management and information control 
         system
       The budget request included no funding for the joint 
     engineering data management and information control system 
     (JEDMICS), the designated Department of Defense standard 
     system for management, control and storage of engineering 
     drawings.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.0 
     million for procurement, integration and accreditation 
     surveys to ensure JEDMICS is fully compliant with the joint 
     technical data environment.
       The conferees agree to authorize an increase of $4.0 
     million for procurement, integration and accreditation 
     surveys to ensure JEDMICS is fully compliant with the joint 
     technical data environment.
       The conferees note that this system is designed as an open, 
     client-server architecture and is nearing full deployment for 
     global access to the data in its repositories. However, the 
     JEDMICS data available is not fully accessible to all clients 
     using the joint technical data environment.
     Naval shore communications equipment
       The budget request included $176.1 million for procurement 
     and installation of naval shore communications equipment.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $10.0 
     million for naval shore communications equipment as a result 
     of budgeting for redundant systems.
     Sonobuoys
       The budget request included $49.5 million for the 
     procurement of sonobuoys, including AN/SSQ-36, AN/SSQ-53E, 
     AN/SSQ-57, AN/SSQ-62E, AN/SSQ-77, AN/SSQ-101, and Signal 
     Underwater Sound (SUS) buoys.
       The House bill would authorize an increase of $18.0 million 
     to address the sonobuoy shortfall, including $3.0 million for 
     the AN/SSQ-53E, $5.0 million for the AN/SSQ-62E, and $10.0 
     million for the AN/SSQ-77.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million for non-beam forming passive sonobuoys and an 
     increase of $3.0 million for the AN/SSQ-62 (DICASS) sonobuoy.
     Weapons range support equipment
       The budget request included $15.1 million for weapons range 
     support equipment, including $2.7 million for procurement of 
     ten underwater acoustic telemetry modems, $1.2 million for a 
     Gulf of Mexico portable mine warfare range, and no funding to 
     procure mobile remote emitter simulator (MRES) systems.
       The House bill would authorize an increase of $7.5 million 
     for the procurement and installation of one MRES system.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $7.5 
     million for MRES, a decrease of $2.7 million for underwater 
     acoustic telemetry modems, and a decrease of $1.2 million for 
     Gulf of Mexico mine warfare range.
     Rolling airframe guided missile launcher
       The budget request included $37.3 million for procurement 
     and installation of rolling airframe (RAM) guided missile 
     launchers.

[[Page 21559]]

       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $500,000 for 
     procurement and installation of RAM launchers as a result of 
     recent contract savings.
     Cruiser smart ship
       The budget request included $47.9 million for programs 
     referred to as ``smart ship'' programs. Of this amount, $22.5 
     million would be for smart ship equipment procurement and 
     logistics for Ticonderoga-class cruisers.
       The House bill would authorize the budget request.
       The Senate bill would authorize a decrease of $17.5 million 
     for procurement of smart ship equipment.
       The conferees agree to authorize a decrease of $10.0 
     million for procurement of smart ship equipment.
     NULKA anti-ship missile decoy system
       The budget request included $33.8 million for procurement 
     and installation of the NULKA anti-ship missile decoy 
     program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $4.3 
     million for the procurement of NULKA launcher systems and 
     decoys to outfit the fleet with this key self-defense 
     equipment and an increase of $4.3 million in the Navy 
     operations and maintenance account for critical training on 
     the NULKA system.
       The conferees agree to authorize an increase of $4.3 
     million for the procurement of NULKA launcher systems and 
     decoys and an increase of $4.3 million in the Navy operations 
     and maintenance account for critical training on the NULKA 
     system, a proven decoy for anti-ship missiles.
     SSN combat control systems
       The budget request included $20.9 million nuclear fast 
     attack submarine (SSN) combat control systems.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $1.3 million 
     for AN/BSG-1 weapons launching system as a result of an 
     operational testing delay.
     Civil engineering support equipment
       The budget request included $10.5 million for light and 
     medium duty tactical equipment used mostly by the Naval 
     Construction Force (NCF), Maritime Prepositioning Force 
     (MPF), Naval Beach Group (NBG), and other special operating 
     units.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $10.0 
     million for the procurement of civil engineering support 
     equipment for the NCF.
       The conferees agree to authorize an increase of $10.0 
     million for the procurement of civil engineering support 
     equipment for the NCF.
     Education support equipment
       The budget request included $2.1 million for the virtual 
     recruiting program which utilizes computer-based recruiting 
     kiosks.
       The House bill would authorize an increase of $2.0 million 
     for procurement of 150 armed forces recruiting kiosks.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.0 
     million for procurement of 150 armed forces recruiting 
     kiosks.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $1,171.9 million for Marine Corps 
     Procurement, Navy in the Department of Defense.
       The House bill would authorize $1,254.7 million.
       The Senate amendment would authorize $1,191.0 million.
       The conferees recommended an authorization of $1,212.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Communications and electronic infrastructure support
       The budget request included $80.6 million for Marine Corps 
     communications and electronic infrastructure support 
     requirements.
       The House bill would authorize an increase of $2.0 million 
     for common end-user equipment requirements for the Marine 
     Corps Reserve in another line.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.0 
     million for common end-user equipment requirements for the 
     Marine Corps Reserve, a total authorization of $82.6 million 
     for communications and electronic infrastructure support.
     Night vision equipment
       The budget request included $14.4 million for Marine Corps 
     night vision equipment.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.7 
     million for improved night/day fire-control observation 
     devices (INOD) for Marine Corps ground forces and an increase 
     of $2.0 million to procure M203 tilting brackets.
       The conferees agree to authorize an increase of $2.0 
     million for INOD systems to support improvements to Marine 
     Corps fire control requirements and an increase of $2.0 
     million for M203 tilting brackets.
     Radio systems
       The budget request included $3.1 million for Marine Corps 
     radio system requirements.
       The House bill would authorize an increase of $12.0 million 
     for tactical handheld radios.
       The Senate amendment would authorize an increase of $6.4 
     million for additional enhanced position location reporting 
     system (EPLRS) equipment.
       The conferees agree to authorize an increase of $13.4 
     million for a total authorization of $16.5 million. Of this 
     amount, $7.0 million is for tactical handheld radio 
     requirements and $6.4 million is for EPLRS.
     5/4 ton truck high mobility multipurpose wheeled vehicles
       The budget request included $124.4 million for Marine Corps 
     high mobility multipurpose wheeled vehicles (HMMWV).
       The House bill would authorize an increase of $23.0 million 
     for HMMWVA2 vehicles.
       The Senate amendment would authorize an increase of $2.0 
     million for additional HMMWV's necessary to field recruiter 
     vehicle requirements.
       The conferees agree to authorize an increase of $15.0 
     million for HMMWVA2 vehicles for the Marine Corps.
     Material handling equipment
       The budget request included $36.3 million for material 
     handling equipment requirements.
       The House bill would authorize an increase of $12.1 million 
     for D-7G bulldozer and scraper remanufacture requirements.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $12.1 
     million for D-7G bulldozer and scraper remanufacture 
     requirements.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $9,539.6 million for Aircraft Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $10,267.2 million.
       The Senate amendment would authorize $9,966.3 million.
       The conferees recommended an authorization of $9,923.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     F-16C aircraft
       The budget request included no funding for the procurement 
     of F-16C aircraft.
       The House bill would authorize an increase of $51.7 million 
     for the procurement of three block 50/52 F-16C aircraft, and 
     would require the Department to combine $24.0 million of 
     advance procurement funds appropriated in fiscal year 2000 
     for this purpose. The House report accompanying H.R. 4205 (H. 
     Rept. 106-616) directed the Secretary of the Air Force to 
     assign block 40 or later F-16 aircraft to Air National Guard 
     fighter units whose capabilities have been downgraded as a 
     result of the substitution of older block F-16 aircraft.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $51.7 
     million for the procurement of two F-16 block 50/52 aircraft, 
     recognizing that the fiscal year 2000 funds were rescinded. 
     The conferees agree to accept the Air Force proposal to 
     upgrade the capability of Air National Guard fighter units, 
     whose capabilities have been downgraded, with F-16C block 30 
     or better aircraft equipped with advanced targeting pods. The 
     conferees understand that these advanced targeting pods are 
     necessary to enable the aircraft to accomplish precision 
     strike missions. The conferees expect the Air Force will 
     provide an adequate number of these advanced targeting pods 
     for Air National Guard units to support peacetime training 
     and, when tasked, operational deployments.
     C-17 aircraft
       The budget request included $2.212 billion for the 
     procurement of 12 C-17 aircraft under a multi-year program.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $41.0 
     million in response to an Air Force request for transfer to 
     advance procurement, a total authorization of $2.171 billion.
     C-17 advance procurement
       The budget request included $266.8 million for advance 
     procurement for the C-17 multi-year program.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees agree to authorize a decrease of $9.0 
     million, as follows:
       (1) an increase of $41.0 million transferred from the C-17 
     aircraft program; and
       (2) a decrease of $50.0 million due to a revision of 
     advance procurement funding requirements.
     EC-130J aircraft
       The budget request included no funding for the procurement 
     of the EC-130J aircraft.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $90.0 
     million for the procurement of one EC-130J aircraft.
       The conferees agree to authorize $90.0 million for the 
     procurement of one EC-130J aircraft. The conferees expect the 
     Department of the Air Force to utilize these funds in the 
     most effective manner for EC-130 fleet modernization in the 
     event that EC-130J procurement contract savings for this 
     aircraft materialize.
     B-52 aircraft modifications
       The budget request included $8.4 million for modifications 
     to the B-52 aircraft.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $12.0 
     million for improved electronic countermeasures.
       The conferees agree to authorize an increase of $9.0 
     million for improved electronic countermeasures for the B-52 
     aircraft, a total authorization of $17.4 million.
     A-10 aircraft integrated flight and fire control computer
       The budget request included $33.9 million for modifications 
     to the A-10 aircraft, but included no funding for procurement 
     of the integrated flight and fire control computer (IFFCC).
       The House bill would authorize an increase of $6.8 million 
     for IFFCCs and an increase of $8.6 million for situational 
     awareness data link (SADL) upgrades for Air National Guard 
     aircraft, a total increase of $15.4 million.
       The Senate amendment would authorize an increase of $11.2 
     million for the procurement of IFFCCs.
       The conferees agree to authorize an increase of $6.8 
     million for A-10 IFFCCs, a total authorization of $40.7 
     million.
     F-15 modifications
       The budget request included $258.2 million for F-15 
     modifications.
       The House bill would authorize an increase of $100.0 
     million for F-15 modifications, as follows:
       (1) an increase of $70.0 million for upgrading F-15 engines 
     from the F100-PW-100 to the F100-PW-220E configuration for 
     the Air National Guard; and
       (2) an increase of $30.0 million to integrate the BOL 
     countermeasure dispenser system on Air National Guard (ANG) 
     F-15A and F-15B aircraft.
       The Senate amendment would authorize an increase of $74.9 
     million, as follows:
       (1) an increase of $48.0 million for additional F-15 engine 
     upgrades; and
       (2) an increase of $26.9 million for the procurement of BOL 
     systems and countermeasures for the F-15 aircraft.
       The conferees agree to authorize an increase of $52.0 
     million for F-15 modifications, as follows:
       (1) an increase of $36.0 million for F-15 engine upgrades 
     to the F100-PW-220E configuration;
       (2) an increase of $26.4 million for the procurement of BOL 
     systems and countermeasures for integration on ANG F-15A and 
     F-15B aircraft; and
       (3) a decrease of $10.4 million due to delays and technical 
     problems with the ALQ-135.
     F-16 aircraft modifications
       The budget request included $248.8 million for 
     modifications to the F-16 aircraft.
       The House bill would authorize an increase of $49.3 
     million, for F-16 modifications, as follows:
       (1) an increase of $25.0 million to procure additional F-16 
     precision targeting pods for the Air National Guard;
       (2) an increase of $12.3 million to accelerate the 
     procurement of ALE-50 towed decoy pylons; and
       (3) an increase of $12.0 million to improve reliability and 
     reduce costs for the F-16 airborne video tape recorder.
       The Senate amendment would authorize an increase of $119.5 
     million for F-16 modifications, as follows:
       (1) an increase of $16.5 million for the procurement of the 
     digital terrain system;
       (2) an increase of $34.0 million for the procurement of 
     precision targeting pods; and
       (3) an increase of $69.0 million for the retrofit of Air 
     National Guard block 42 F-16 aircraft with F100-PW-229 
     engines.
       The conferees agree to authorize an increase of $56.7 
     million for F-16 aircraft modifications, as follows:
       (1) an increase of $12.0 million for the procurement of 
     digital terrain systems;
       (2) an increase of $48.7 million for the retrofit of Air 
     National Guard block 42 F-16 aircraft with F100-PW-229 
     engines; and
       (3) a decrease of $4.0 due to delays with the Joint Helmet 
     Mounted Cueing System.
     Defense airborne reconnaissance program modifications
       The budget request included $165.5 million for the defense 
     airborne reconnaissance program (DARP) for modifying various 
     reconnaissance aircraft, including the RC-135 and U-2 
     aircraft.
       The House bill would consolidate all RC-135 DARP items in 
     this funding line, and transfer U-2 DARP items to the DARP 
     aircraft support equipment funding line. The House bill would 
     also authorize an increase of $78.2 million for DARP 
     modifications, as follows:
       (1) an increase of $44.0 million to convert two C-135 
     aircraft into RC-135 training aircraft configurations;
       (2) an increase of $9.0 million for a motion-capable 
     operational flight trainer;
       (3) an increase of $28.4 million for equipment associated 
     with meeting the requirements of global air traffic 
     management (GATM);
       (4) an increase of $10.0 million for the theater airborne 
     warning system (TAWS);
       (5) an increase of $5.1 million for RC-135 modifications 
     transferred from the DARP aircraft support equipment line; 
     and
       (6) a decrease of $18.3 million for U-2 modifications 
     transferred to the DARP aircraft support equipment line for 
     consolidation.
       The Senate amendment would authorize an increase of $3.0 
     million for the procurement of Senior Year electro-optic 
     reconnaissance system (SYERS) equipment for the U-2 aircraft.
       The conferees agree to consolidate all RC-135 aircraft DARP 
     modifications in this line and transfer U-2 aircraft DARP 
     modifications to the DARP aircraft support equipment line. 
     The conferees acknowledge that funds for the RC-135 
     operational flight trainer were provided in the Emergency 
     Supplemental Act, 2000 (division B of Public Law 106-246). 
     The conferees agree to a decrease of $13.2 million for RC-135 
     DARP for a total authorization of $152.3 million, as follows:
       (1) an increase of $5.1 million for transfer of RC-135 
     aircraft DARP modifications from DARP aircraft support 
     equipment; and
       (2) a decrease of $18.3 million for transfer of U-2 
     aircraft DARP modifications to the DARP aircraft support 
     equipment DARP line for consolidation.
     Other aircraft modifications
       The budget request included $28.2 million for other 
     aircraft modifications.
       The House bill would authorize an increase of $7.0 million 
     for light weight environmentally sealed parachute assemblies 
     and an increase of $20.6 million for the situational 
     awareness data link (SADL) for Air National Guard (ANG) A-10, 
     C-130, and C-135 aircraft.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.5 
     million for the ANG SADL for A-10, C-130, and C-135 aircraft, 
     a total authorization of $33.7 million for other aircraft 
     modifications.
     Defense airborne reconnaissance program aircraft support 
         equipment
       The budget request included $98.4 million for the defense 
     airborne reconnaissance program for modifying various 
     reconnaissance aircraft, including U-2 and RC-135 aircraft.

[[Page 21570]]

       The House bill would consolidate all U-2 DARP items in this 
     funding line, and transfer all RC-135 DARP items to the DARP 
     modification funding line. The House bill would authorize an 
     increase of $30.2 million for DARP, as follows:
       (1) an increase of $3.0 million for the procurement of 
     additional Senior Year electro-optic reconnaissance system 
     (SYERS) equipment;
       (2) an increase of $4.0 million for procurement of 
     additional joint signals intelligence avionics family (JSAF) 
     equipment;
       (3) an increase of $10.0 million to convert one U-2S 
     aircraft to a U-2ST trainer aircraft configuration;
       (4) an increase of $18.3 million for U-2 aircraft DARP 
     modifications transferred from elsewhere, consisting of 
     increases of $9.9 million for a power upgrades and $8.4 
     million for dual data links; and
       (5) a decrease of $5.1 million due to the transfer of RC-
     135 aircraft modifications to the DARP modifications funding 
     line.
       The Senate amendment would authorize an increase of $8.0 
     million in DARP aircraft support equipment for JSAF, 
     specifically the U-2, and an increase of $3.0 million for 
     SYERS, specifically the U-2 in the DARP modifications line.
       The conferees agree to authorize a decrease of $87.3 
     million in DARP aircraft support equipment, as follows:
       (1) an increase of $3.0 million for SYERS equipment;
       (2) an increase of $8.0 million for JSAF;
       (3) an increase of $18.3 million for U-2 aircraft DARP 
     modifications transferred from elsewhere, consisting of 
     increases of $9.9 million for power upgrades and $8.4 million 
     for dual data links;
       (4) a decrease of $5.1 million for transfer of RC-135 
     aircraft modifications to the DARP modifications line; and
       (5) a decrease of $111.6 million for U-2 DARP 
     modifications. These funds were provided in the Emergency 
     Supplemental Act, 2000 (division B of Public Law 106-246). 
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $638.8 million for Ammunition Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $638.8 million.
       The Senate amendment would authorize $666.8 million.
       The conferees recommended an authorization of $646.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21573]]

     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $3,061.7 million for Missile Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $3,046.7 million.
       The Senate amendment would authorize $3,008.0 million.
       The conferees recommended an authorization of $2,863.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21576]]

     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $7,699.1 million for Other Procurement, Air 
     Force in the Department of Defense.
       The House bill would authorize $7,869.9 million.
       The Senate amendment would authorize $7,717.5 million.
       The conferees recommended an authorization of $7,711.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21582]]

     Intelligence communications equipment
       The budget request included $5.5 million for intelligence 
     communications equipment.
       The House bill would authorize an increase of $5.0 million 
     for Eagle Vision and an increase of $4.0 million for secure 
     terminal equipment.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $9.0 
     million in intelligence communications equipment, including 
     an increase of $5.0 million for Eagle Vision and $4.0 million 
     for secure terminal equipment, a total authorization of $14.5 
     million.
     Combat training ranges
       The budget request included $26.0 million for the 
     procurement of equipment for combat training ranges, of which 
     $18.4 million is for advanced threat upgrades.
       The House bill would authorize an increase of $1.0 million 
     for the advanced message-oriented data security module 
     (AMODSM).
       The Senate amendment would authorize an increase of $20.0 
     million to procure additional advanced threat emitters for 
     combat training ranges.
       The conferees agree to authorize an increase of $20.0 
     million to procure additional advanced threat emitters for 
     combat training ranges, a total authorization of $46.0 
     million.
     Items less than $5.0 million
       The budget request included $6.7 million for the 
     procurement of items less than $5.0 million.
       The House bill would authorize $7.0 million in other 
     aircraft modifications for the procurement of lightweight 
     environmentally-sealed parachute assemblies (LESPAs).
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million for the procurement of LESPAs, a total authorization 
     of $9.7 million.
     Overview
       The budget request for fiscal year 2001 included an 
     authorization of $2,275.3 million for Defense-wide 
     Procurement in the Department of Defense.
       The House bill would authorize $2,309.1 million.
       The Senate amendment would authorize $2,210.5 million.
       The conferees recommended an authorization of $2,278.4 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     MH-60 aerial refueling probes and 200 gallon fuel tanks
       The budget request included $68.5 million for Procurement, 
     Defense-wide, Special Operations Forces (SOF) rotary wing 
     upgrades, but included no funding to continue the effort to 
     upgrade the entire MH-60 fleet with aerial refueling probes 
     and new, internal fuel tanks.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $18.9 
     million to procure and install the aerial refueling probes 
     and 200 gallon fuel tanks required to complete the upgrade of 
     the SOF MH-60 fleet.
       The conferees agree to authorize an increase of $10.0 
     million in Procurement, Defense-wide, for SOF rotary wing 
     upgrades for the purpose of procuring and installing aerial 
     refueling probes and 200 gallon fuel tanks to continue the 
     upgrade of the SOF MH-60 fleet.
     Special operations forces small arms and support equipment
       The budget request included $11.8 million for Procurement, 
     Defense-wide, Special Operations Forces (SOF) small arms and 
     support equipment, but included no funding to continue the 
     procurement of SOF body armor load carriage systems (BALCS), 
     the modular integrated communications helmet (MICH), or the 
     SOF peculiar modifications to the M-4 carbine (SOPMOD).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $21.7 
     million to procure approximately half of the equipment 
     required to fully equip all SOF operators.
       The conferees agree to authorize an increase of $12.4 
     million in Procurement, Defense-wide, SOF small arms and 
     support equipment, including $4.9 million for BALCS, $2.5 
     million for MICH, and $5.0 million for SOPMOD.

                       ITEMS OF SPECIAL INTEREST

     Air Mobility Command
       The conferees are aware that regional commanders in chief 
     (CINCs) continue to highlight a requirement for improved 
     strategic lift capabilities, which remains the most 
     compelling deficiency that our CINCs face in meeting their 
     responsibility to execute the National Military Strategy. The 
     conferees are also concerned to note the recent statements 
     that confirm our total airlift capability is insufficient to 
     execute the National Military Strategy. The conferees note 
     that the Joint Chiefs of Staff Mobility Requirements Study of 
     Fiscal Year 2005 (MRS-05) will not take into account certain 
     fact-of-life changes in airlift requirements, specifically 
     the transformation by the Army. The conferees direct the 
     Secretary of the Air Force to deliver an analysis to the 
     congressional defense committees by March 15, 2001. This 
     analysis should use MRS-05 results and fiscal year 2000 
     readiness statistics for the C-141, C-5, and C-17 fleets. The 
     analysis should determine readiness levels that are required 
     to execute the National Military Strategy, and should explore 
     alternatives to existing aircraft stationing plans for both 
     active and reserve component airlift forces that are 
     available to support existing lift requirements.
     Intelligence, surveillance and reconnaissance programs
       It is clear to the conferees that the Department of Defense 
     (DoD) will place increasing reliance upon intelligence, 
     surveillance and reconnaissance (ISR) programs in future 
     operations. Experience in supporting DoD operations, 
     including recent experience in the Balkans, has shown that 
     relatively small numbers of ISR forces will be in high demand 
     to provide information superiority. DoD has identified this 
     information superiority as a ``critical enabler'' in the 
     ongoing transformation of the Department.
       The Department has identified shortages of some of these 
     ``high demand/low density'' assets in various reports. The 
     conferees are also aware that the Department has conducted 
     and has underway studies on various pieces of the ISR puzzle, 
     many at request of Congress.
       The various reports of ``lessons learned'' from Kosovo 
     operations, the fiscal year 2001 budget request, and the 
     unfunded priority lists for fiscal year 2001 identified some 
     specific fixes to specific problems. What is less clear is 
     whether the Department, in view of these ``lessons learned'', 
     has attempted to provide an overarching vision for ISR 
     forces, to include sustaining and modernizing the current 
     force, and improving ISR capabilities in the future.
       Therefore, the conferees direct the Secretary of Defense to 
     provide an analysis concurrent with the submission of the 
     fiscal year 2002 budget request, that:
       (1) evaluates the current ISR capability and forces;
       (2) identifies those ISR capabilities and forces that need 
     to be sustained and modernized;
       (3) enumerates those capabilities that need to be created 
     or enhanced to ensure that ISR forces can contribute to 
     achieving the information superiority for the transformed 
     military forces; and
       (4) itemizes how the budget and the Future Years Defense 
     Program supports these needs.
     LPD-17 amphibious ships
       The budget request included $1.5 billion for procurement of 
     two San Antonio-class LPD-17 amphibious ships: LPD-21 and 
     LPD-22. In addition, the budget request included $20.7 
     million for advance procurement for two San Antonio-class 
     LPD-17 amphibious ships.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees fully support the LPD-17 program and 
     recognize the requirement to deliver these ships to the Navy 
     and Marine Corps as soon as possible to support a key element 
     of split amphibious ready group operations and the Marine 
     Corps operational maneuver from the sea (OMFTS) concept.
       Concerns regarding LPD-17 first ship design completion 
     prior to transition to production led to congressional 
     reassessment of the LPD-17 procurement request. The 
     reassessment centered on the question of whether delays in 
     the start of production of the lead ship would translate into 
     schedule delays for subsequent ships, LPD-21 and LPD-22. This 
     reassessment, in light of overall national defense budget 
     realities, led to a shift in appropriations procurement 
     strategy for LPD-21 and LPD-22.
       However, subsequent to passage of the Department of Defense 
     Appropriations Act for Fiscal Year 2001, the following 
     significant actions occurred which led authorization 
     conferees to conduct a further review of the progress of the 
     LPD-17 program:
       (1) The Navy commenced full rate construction of the lead 
     ship, LPD-17, based on an extensive Production Readiness 
     Review;
       (2) Unprecedented levels of design completion were achieved 
     prior commencing full production of LPD-17; and
       (3) The Secretary of the Navy stated that fiscal year 2001 
     full funding for the LPD-21 and LPD-22 will permit the Navy 
     to execute construction on schedule due to the achievement of 
     75 percent total ship design completion and 95 percent 
     individual ship unit design completion prior to initial 
     construction.
       Based on this new information regarding significant program 
     actions, the conferees agree to authorize the budget request.
       The conferees expect the Navy to submit budget requests 
     that include full funding for future San Antonio-class LPD-17 
     ships and adequate advance procurement to ensure that 
     production continues at an efficient level and without 
     interruption.
       The conferees note with concern the adverse impact that 
     reducing ship procurement has on the requirement for annual 
     investment of $10.0 to $12.0 billion for ship construction 
     necessary to maintain a Naval force structure of 300 ships. 
     Therefore, the conferees support appropriation of additional 
     procurement funds for LPD-17 in fiscal year 2001 should 
     additional appropriations for the Department of Defense 
     become available.
     Multipurpose individual munition
       The conferees believe the capabilities represented by the 
     multipurpose individual munition (MPIM) system are critical 
     to future requirements associated with the national military 
     strategy. The conferees are concerned with recent actions 
     taken by the Secretary of the Army to begin termination of 
     the MPIM program after a significant investment and an 
     extensive research and development effort. The Army has noted 
     that the system has not met specified weight requirements and 
     has historically suffered from technical and performance 
     difficulties. While the conferees believe that most of the 
     technical issues can be resolved, weapon system weight 
     appears to be the compelling reason for program termination. 
     The conferees believe, however, in light of the fact there is 
     no other system in the inventory to fulfill MPIM 
     requirements, no clarity on the final weight alternatives, 
     and no program exists to meet these requirements, the Army 
     should not terminate the MPIM program until these facts are 
     reviewed.
       The conferees agree with Army requirements documents that 
     suggest there are clear and compelling needs to field a 
     system, such as MPIM, to support soldiers for either combat 
     or peacekeeping missions. Therefore, the conferees expect the 
     Secretary of the Army to conduct a final, thorough review of 
     the status of this program, alternatives to the status quo, 
     and provide a plan to the congressional defense committees, 
     no later than January 30, 2001, on how these requirements 
     will be met as soon as practicable.
     Shipbuilding overview
       The conferees note that on June 26, 2000, the Secretary of 
     Defense delivered to Congress the long-range shipbuilding 
     report required by section 1013 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65).
       The conferees agree that the report provides a framework 
     for discussion of new ship construction plans necessary to 
     maintain the number of ships required to carry out the 
     national security strategy through fiscal year 2030. The 
     report of the Secretary concludes that a steady state 
     building rate of 8.7 ships annually is required to maintain 
     at least 306 ships. The Secretary's report states that, ``. . 
     . the annual funding required to sustain the force . . . will 
     require an average of $14 billion per year.'' The report of 
     the Secretary also acknowledges the discrepancy between: (1) 
     the requirement to buy 8.7 new construction ships annually to 
     maintain at

[[Page 21588]]

     least 306 ships; and (2) according to the Secretary's report, 
     ``. . . the President's Budget for FY 2001-2005 which funds 
     an average of 7.8 ships.''
       The conferees note two deficiencies in the report of the 
     Secretary. Consistent with the 1999 attack submarine study 
     developed by the Chairman of the Joint Chiefs of Staff, the 
     report of the Secretary uses a larger nuclear attack 
     submarine (SSN) force structure of 55 SSNs, versus the 
     original Quadrennial Defense Review (QDR) goal of 50 SSNs. 
     However, the shipbuilding plan in the report does not achieve 
     a force level of 18 Virginia-class SSNs that the CJCS report 
     states is required in fiscal year 2015 to counter the 
     technologically pacing threat. The shipbuilding plan in the 
     report would only provide 16 Virginia-class submarines by 
     fiscal year 2015.
       The second flaw in the report of the Secretary is its 
     supposition that a delay in required annual investments is 
     possible due to the size of the fleet and the average age of 
     the ships in the fleet.
       The Secretary's report fails to assess the risks associated 
     with having to ramp-up to a higher level of investment later 
     in the planning period. The report discusses risks associated 
     with deviation from the long-range shipbuilding plan, but 
     focuses primarily on the shipbuilding industrial base. There 
     is no discussion of the risks associated with pursuing the 
     shipbuilding plan's uneven investment strategy, particularly 
     a plan that defers near-term investment and requires that the 
     Navy double the annual shipbuilding procurement rate by 
     fiscal year 2013 just to support the currently envisioned 
     force structure. Whereas the report acknowledges that there 
     may be additional future requirements for ships (i.e. for 
     ballistic missile defense and sea-based land attack), it does 
     not include an evaluation of the risks of not including the 
     additional ships in the shipbuilding plan.
       The conferees are concerned with the gap between the 
     requirement stated in the long-range shipbuilding plan and 
     the ships included in recent budget requests submitted to 
     Congress by the President. Unfortunately, the Secretary's 
     long-range shipbuilding report does not provide a clear plan 
     to maintain the force structure recommended in the report, 
     required to carry out the national security strategy. The 
     conferees expect the Secretary of Defense to address these 
     concerns in the fiscal year 2002 budget request.

                     LEGISLATIVE PROVISIONS ADOPTED

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 101-106)
       The House bill contained provisions (secs. 101-107) that 
     would authorize the recommended fiscal year 2001 funding 
     levels for procurement for the Army, Navy, and Marine Corps, 
     Air Force, Defense-Wide Activities, Defense Inspector 
     General, Chemical Demilitarization Program, and the Defense 
     Health Program.
       The Senate amendment contained similar provisions.
       The conference agreement includes these provisions.

                       Subtitle B--Army Programs

     Multiyear procurement authority (sec. 111)
       The House bill contained a provision (sec. 111) that would 
     authorize the Secretary of the Army to enter into a multiyear 
     procurement contract for the M2A3 Bradley fighting vehicle, 
     the UH-60 Blackhawk helicopter, and, acting as executive 
     agent for the Department of the Navy, the CH-60 Knighthawk 
     helicopter.
       The Senate amendment contained a similar provision (sec. 
     111).
       The Senate recedes.
       The conferees agree that the Secretary of the Army shall 
     certify that the M2A3 Bradley fighting vehicle has 
     successfully completed the initial operational test and 
     evaluation and milestone III review prior to awarding the 
     multiyear contract.
       Increase in limitation on number of bunker defeat munitions 
     that may be acquired (sec. 112)
       The House bill contained a provision (sec. 112) that would 
     amend section 116 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337) to increase the 
     quantity of bunker defeat munitions by 2,500 that the Army is 
     authorized to procure.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reports and limitations relating to Army transformation (sec. 
         113)
       The Senate amendment contained a provision (sec. 112) that 
     would require the Secretary of the Army to provide reports on 
     the process associated with the development of an objective 
     force and the fielding of an interim force for the Army 
     transformation initiative. The provision also required the 
     Secretary of the Army to conduct a comparative evaluation of 
     interim armored vehicles (IAV) to be selected for the 
     fielding of interim brigade combat teams (IBCT) with 
     equipment already in the Army inventory.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of the Army to conduct an evaluation, as described 
     in the conference agreement, at a level to be determined in 
     conjunction with the Director of Operational Test and 
     Evaluation prior to the obligation of funding for a third 
     IBCT.
       The conferees strongly support efforts designed by the 
     Chief of Staff of the Army to transform the service into a 
     lighter, more lethal, and survivable force able to deal 
     effectively with the wide range of national security 
     challenges that will face our nation in the 21st Century. The 
     conferees look forward to receiving a well-defined road map 
     that lays out the course of the Army transformation 
     initiative through fiscal year 2012. The conferees continue 
     to be concerned about the level of funding provided to the 
     Army by the Department of Defense in support of the 
     transformation initiative. The conferees do not understand 
     how the Secretary of Defense can assert his support for the 
     Army initiative while providing inadequate funding to 
     facilitate the transformation process.
       The conferees would expect the evaluation called for in the 
     conference agreement to illustrate differences in 
     capabilities that new IAVs may provide when compared to 
     vehicles the Army currently has fielded. The conferees expect 
     the Army to provide a plan to conduct a comparative 
     evaluation, which will be subject to the approval of the 
     Director of Operational Test and Evaluation prior to 
     execution.
       The conferees understand the IBCT force is designed to 
     operate across the full spectrum of conflict. Current Army 
     plans call for the first IBCT to be evaluated at the Joint 
     Readiness Training Center in a range of environments largely 
     focused on low intensity conflict and peacekeeping. The 
     conferees believe it is important that the Army also plan and 
     conduct an operational evaluation of these forces in a high 
     intensity conflict environment. The Chief of Staff of the 
     Army has highlighted a critical requirement for a new force 
     that is able to quickly deploy with greater lethality and 
     survivability than our light forces possessed during 
     Operation Desert Shield when the 82nd Airborne Division was 
     quickly deployed in response to Iraqi forces moving south 
     toward Saudi Arabia. An operational evaluation of IBCTs in 
     this type of an environment would facilitate an understanding 
     of the overall capabilities that these forces possess to meet 
     this type of challenge. The conferees, therefore, direct the 
     Army to evaluate the capabilities of IBCTs in a high 
     intensity combat environment and provide a report on the 
     demonstrated combat capabilities these forces possess.

                        Subtitle C-Navy Programs

     CVNX-1 nuclear aircraft carrier program (sec. 121)
       The budget request included $21.9 million for advance 
     procurement and advance construction of long lead time 
     components for CVNX-1.
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the budget request, authorize the Secretary 
     of the Navy to procure the nuclear aircraft carrier 
     designated CVNX-1, and to enter into a contract for the 
     advance procurement and advance construction of that ship.
       The House bill contained no similar provision.
       The House recedes.
     Arleigh Burke class destroyer program (sec. 122)
       The House bill contained a provision (sec. 124) that would 
     authorize an extension of the existing multiyear procurement 
     contract for the DDG-51 destroyer program through fiscal year 
     2005. The provision would also authorize the procurement of 
     three ships per year through fiscal year 2001 and the 
     procurement of up to three ships per year from fiscal year 
     2002 through 2005.
       The Senate amendment contained a provision (sec. 122) that 
     would authorize an increase of $143.2 million in advance 
     procurement for DDG-51. In addition, the provision would 
     provide the following: (1) authorize the Secretary of the 
     Navy to extend the 1997 multiyear contract to include the 
     fiscal year 2004 and fiscal year 2005 DDG-51 procurements; 
     (2) express the sense of Congress that the most economical 
     rate for procurement is three ships per year; and (3) direct 
     the Secretary to update the Arleigh Burke (DDG-51) Class 
     Industrial Base Study of 1993 and further direct the 
     Comptroller General to review the update performed by the 
     Secretary.
       The House recedes with an amendment that would authorize an 
     increase of $100.0 million in advance procurement for DDG-51.
     Virginia class submarine program (sec. 123)
       The budget request included $1,711.2 million for the 
     Virginia class submarine program including the procurement of 
     material in economic order quantities when cost savings are 
     achievable.
       The House bill contained a provision (sec. 122) that would 
     authorize the Navy to enter into a contract for the 
     procurement of five Virginia class submarines during fiscal 
     years 2003 through 2006.
       The Senate amendment contained a similar provision (sec. 
     123) which would authorize the budget request and would 
     require the Secretary of Defense to submit a fast attack 
     submarine force structure report to the congressional defense 
     committees.
       The House recedes with an amendment that would authorize 
     $1,706.2 million for Virginia class submarines, including the 
     procurement of material in economic order quantities when 
     cost savings are achievable.

[[Page 21589]]


     Limitation during fiscal year 2001 on changes in submarine 
         force structure (sec. 124)
       The House bill contained a provision (sec. 121) that would 
     prohibit the retirement of any Los Angeles-class nuclear 
     powered attack submarine with less than 30 years of active 
     commissioned service. This provision would also require the 
     President to report to Congress on the submarine force 
     structure required to support the national military strategy 
     and the acquisition and overhaul requirements necessary to 
     achieve and maintain such a force.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit to 
     fiscal year 2001 the prohibition on retirement of Los 
     Angeles-class submarines and would extend the prohibition on 
     fiscal year 2001 retirements to Ohio-class submarines.
     ADC(X) ship program (sec. 125)
       The Senate amendment contained a provision (sec. 124) that 
     would authorize the Secretary of the Navy to procure ADC(X)-
     class ships using the contracting authority that is most cost 
     effective.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Refueling and complex overhaul program of the U.S.S. Dwight 
         D. Eisenhower (sec. 126)
       The budget request included $703.4 million to commence the 
     overhaul of CVN-69.
       The House bill would authorize the budget request.
       The Senate amendment contained a provision (sec. 125) that 
     would authorize the budget request and authorize the 
     Secretary of the Navy to enter into a contract and commence 
     overhaul of the U.S.S. Dwight D. Eisenhower (CVN-69) nuclear 
     aircraft carrier during fiscal year 2001.
       The House recedes with an amendment that would authorize 
     $698.4 million for CVN-69 overhaul.
     Analysis of certain shipbuilding programs (sec. 127)
       The House bill contained a provision (sec. 125) that would 
     require an economic analysis of procurement mechanisms for 
     funding large aviation-capable naval vessels.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would broaden the 
     reporting requirement to include various vessel classes and 
     additional considerations other than economic issues in 
     evaluating funding mechanisms.
     Helicopter support of FFG-7 frigates during fiscal year 2001 
         (sec. 128)
       The House bill contained a provision (sec. 123) that would 
     require the Secretary of the Navy to configure and equip the 
     Naval Reserve FFG-7 Flight I and II frigates remaining in 
     active service with the complete organic weapon system for 
     those vessels as specified in the operational requirements 
     document of the Navy and to retain operational assets 
     integral to the FFG-7 weapons system in their current 
     locations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to operate one squadron of SH-2G aircraft in the 
     Navy in fiscal year 2001. The conferees direct that the Navy 
     fully man and equip the SH-2G aircraft in a manner consistent 
     with normal fleet operations.
     V-22 cockpit aircraft voice and flight data recorders (sec. 
         129)
       The House bill contained a provision (sec. 1037) that would 
     require the Secretary of Defense to require all V-22 aircraft 
     to be equipped with state-of-the-art cockpit voice and flight 
     data recorders.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees recommend that appropriate measures be taken 
     to ensure that the design, integration, and use of these 
     recorders take into account the security of potentially 
     sensitive tactical information.

                     Subtitle D--Air Force Programs

     Annual Report on the B-2 bomber (sec. 131)
       The House bill contained a provision (sec. 131) that would 
     require the Secretary of Defense to provide an annual report 
     on the operational status and technology insertion plans for 
     the B-2 bomber and would repeal the requirement for an annual 
     report on B-2 production contained in section 112 of the 
     National Defense Authorization Act for Fiscal Years 1990 and 
     1991 (Public Law 101-189).
       The Senate amendment contained a provision (sec. 131) that 
     would repeal the requirement for an annual report on B-2 
     production contained in section 112 of the National Defense 
     Authorization Act for Fiscal Years 1990 and 1991.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to provide an annual report on: (1) the 
     capability of the B-2 bomber to carry out assigned missions; 
     (2) ongoing and planned technology efforts to improve B-2 
     capabilities; (3) new technologies to meet any expanded 
     threats; and (4) a fiscally-phased program for each of these 
     technology efforts in three funding scenarios. The funding 
     scenarios include the President's budget, the President's 
     budget plus funding for the Department of Defense unfunded 
     priority list, and maximum executable funding consistent with 
     the need to maintain the B-2 in an operationally ready 
     status. The provision would also repeal the requirement for 
     an annual report on B-2 production contained in section 112 
     of the National Defense Authorization Act for Fiscal Years 
     1990 and 1991.
     Report on modernization of Air National Guard F-16A units 
         (sec. 132)
       The Senate amendment contained a provision (sec. 1070) that 
     would express the sense of the Senate that certain Air 
     National Guard units were flying F-16A aircraft without the 
     upgrades that would allow them to be effectively deployed to 
     contingency theaters of operation, and that the Air Force 
     should provide a plan to Congress on how these units could be 
     modernized.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of the Air Force to submit a report to Congress on 
     how Air National Guard units flying F-16A aircraft will be 
     modernized and upgraded.

                       Subtitle E--Joint Programs

     Study of final assembly and checkout alternatives for the 
         joint strike fighter program (sec. 141)
       The House bill contained a provision (sec. 141) that would 
     require the Secretary of Defense to provide a report on 
     various production alternatives for the joint strike fighter.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would defer 
     submission of the report until after the ongoing competition 
     for the engineering and manufacturing development phase of 
     the joint strike fighter program is completed.

                 Subtitle F--Chemical Demilitarization

     Pueblo Chemical Depot chemical agent ammunitions destruction 
         technologies (sec. 151)
       The Senate amendment contained a provision (sec. 141) that 
     would provide for the destruction of the stockpile of lethal 
     chemical agents at the Pueblo Chemical Depot, Colorado, 
     either by incineration or by any technology demonstrated by 
     the Assembled Chemical Weapons Assessment on, or before, May 
     1, 2000.
       The House bill contained no similar provision.
       The House recedes.
     Report on assessment of need for Federal economic assistance 
         for communities impacted by chemical demilitarization 
         activities (sec. 152)
       The conferees agree to include a provision that would 
     direct the Secretary of Defense to submit, by April 1, 2001, 
     a report to the Armed Services Committees of the Senate and 
     the House of Representatives on the assessment of the need 
     for community economic assistance as a result of chemical 
     weapons stockpile demilitarization activities.
     Prohibition against disposal of non-stockpile chemical 
         warfare material at Anniston chemical stockpile disposal 
         facility (sec. 153)
       The conferees note that Section 141 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) 
     authorized the destruction of non-stockpile chemical agents, 
     munitions, or related materials specifically designated by 
     the Secretary of Defense at chemical stockpile disposal 
     facilities if the states in which those facilities reside 
     have issued the appropriate permits.
       The conferees agree to a provision that would prohibit use 
     of the chemical stockpile disposal facility at Anniston, 
     Alabama, for disposal of non-stockpile chemical warfare 
     material that is not currently stored on the Anniston Army 
     Depot.

                   LEGISLATIVE PROVISIONS NOT ADOPTED

     AGM-65 modifications
       The budget request included $2.0 million to convert 200 
     AGM-65G missiles to the AGM-65K configuration.
       The House bill would authorize an increase of $5.0 million 
     for the conversion to both the AGM-65H and K configurations, 
     of which some missiles would be procured for Air National 
     Guard pilot training.
       The Senate amendment contained a provision (sec. 132) that 
     would authorize an increase of $2.1 million for AGM-65 
     modifications.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $4.0 
     million for AGM-65 modifications, a total authorization of 
     $6.0 million for the active and reserve components.
     Anti-personnel obstacle breaching system
       The Senate amendment contained a provision (sec. 127) that 
     would provide $4.0 million for the procurement of the anti-
     personnel obstacle breaching system.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $4.0 million in the 
     Procurement Marine Corps Ammunition account for the purchase 
     of the anti-personnel obstacle breaching system.

[[Page 21590]]


     C-135 modifications
       The budget request included $328.2 million for C-135 
     modifications.
       The House bill contained a provision (sec. 132) that would 
     authorize an increase of $52.0 million for reengining two KC-
     135 aircraft for the Air Force Reserve Command. The House 
     bill would also authorize an increase of $6.0 million for the 
     situational awareness data link (SADL).
       The Senate amendment contained no similar provision, and 
     would authorize the budget request.
       The House recedes on the provision.
       The conferees agree to authorize an increase of $52.0 
     million for reengining two KC-135 aircraft for the Air Force 
     Reserve Command, a total authorization of $380.2 million for 
     C-135 modifications.
     Integrated bridge system for Naval systems special warfare 
         rigid inflatable boats and high-speed assault craft
       The Senate amendment contained a provision (sec. 142) that 
     would authorize an increase of $7.0 million in Procurement, 
     Defense-wide for the purpose of procuring and installing an 
     integrated bridge system (IBS) for Special Operations Forces 
     (SOF), Naval special warfare rigid inflatable boats and high-
     speed assault craft.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $4.0 
     million in Procurement, Defense-wide, SOF combatant craft 
     systems for the procurement and installation of IBS on SOF 
     combatant watercraft.
     Rapid intravenous infusion pumps
       The budget request included no funding for rapid 
     intravenous infusion pumps.
       The House bill included an increase of $8.0 million to 
     procure rapid intravenous infusion pumps.
       The Senate amendment contained a provision (sec. 113) that 
     would authorize an increase of $6.0 million to procure rapid 
     intravenous infusion pumps.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $5.0 
     million for rapid intravenous infusion pumps.
     Remanufactured AV-8B aircraft
       The budget request included $282.1 million for the 
     procurement of 10 remanufactured AV-8B aircraft.
       The House bill would authorize the budget request.
       The Senate amendment contained a provision (sec. 126) that 
     would authorize an increase of $92.0 million for the 
     procurement of four AV-8B aircraft.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $35.6 
     million for AV-8B aircraft, as follows:
       (1) an increase of $52.0 million for the procurement of two 
     additional remanufactured AV-8B aircraft;
       (2) a decrease of $12.0 million for non-recurring cost; and
       (3) a decrease of $4.4 million for cost growth in 
     production engineering support.

         Title II--Research, Development, Test, and Evaluation

     Research, Development, Test, and Evaluation Overview
       The budget request for fiscal year 2001 contained an 
     authorization of $37,862.4 million for Research and 
     Development in the Department of Defense.
       The House bill would authorize $39,309.2 million.
       The Senate amendment would authorize $39,330.8 million.
       The conferees recommended an authorization of $38,936.7 
     million. The conference agreement reflects reductions 
     reflected in the fiscal year 2001 Department of Defense 
     Appropriations Act (Public Law 106-259). Unless noted 
     explicitly in the statement of managers, all changes are made 
     without prejudice.

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     Overview
       The budget request for fiscal year 2001 contained an 
     authorization of $5,260.3 million for Army, Research and 
     Development in the Department of Defense.
       The House bill would authorize $5,500.2 million.
       The Senate amendment would authorize $5,501.4 million.
       The conferees recommended an authorization of $5,568.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Tactical High Energy Laser
       The budget request included no funding to complete 
     development and testing of the Tactical High Energy Laser 
     (THEL) program.
       The House bill would authorize $5.0 million in PE 63308A 
     for mobile THEL development.
       The Senate amendment would authorize $15.0 million in PE 
     63308A to support continued THEL testing and deployment 
     preparation activities.
       The conferees agree to authorize $15.0 million in PE 63308A 
     to support continued THEL development and testing.
       The conferees note that the current THEL configuration 
     lacks the mobility to be a truly effective operational 
     system. Therefore, the conferees agree that, of the funds 
     authorized to be appropriated for THEL, up to $5.0 million 
     may be made available to evaluate and develop technologies 
     that would support eventual development of a mobile THEL 
     system.
     Emergency preparedness training
       The budget request included no funding in PE 23610A for 
     domestic preparedness against weapons of mass destruction.
       The House bill would authorize an increase of $3.0 million 
     in PE 23610A to continue the development for Selected Reserve 
     component forces of training programs for response to, and 
     management of, the consequences of potential terrorism 
     involving weapons of mass destruction.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $3.0 
     million in PE 23610A.
     High energy laser research and development
       The budget request included no funding in defense-wide 
     science and technology accounts for high energy laser (HEL) 
     research and development, no funding in PE 62307A for solid 
     state laser research, $10.5 million in PE 62605F for solid 
     state laser research, no funding in the Navy science and 
     technology accounts for solid state laser research, no 
     funding in PE 62111N for free electron laser (FEL) research, 
     and $14.5 million in PE 65803A for the High Energy Laser 
     System Test Facility (HELSTF).
       The House bill included approval of the Department of 
     Defense Laser Master Plan of March 24, 2000, and emphasized 
     greater attention to, and priority for, HEL research and 
     development (R&D) investments. Consequently, the House bill 
     would authorize $10.0 million in PE 61108D and $25.0 million 
     in PE 62890D8Z for HEL research and development, an increase 
     of $10.0 million in PE 62307A for solid state laser research, 
     the budget request in PE 62605F, an increase of $5.0 million 
     in PE 62111N for FEL development, and an increase of $5.0 
     million in PE 65803A for research and development activities 
     at HELSTF.
       The Senate bill would authorize the budget request in PE 
     62307A, the budget request in PE 65803A for HELSTF, an 
     increase of $5.0 million in PE 62111N for FEL development, 
     the budget request in PE 62605F, and no funding in defense-
     wide science and technology accounts for HEL research and 
     development. As described elsewhere in this report, the 
     Senate bill also included approval of the Department of 
     Defense Laser Master plan.
       The conferees agree to authorize $30.0 million in PE 
     62890D8Z for HEL research and development, the budget request 
     in PE 62307A, the budget request in PE 62605F, an increase of 
     $5.0 million in PE 62111N for FEL development, an increase of 
     $13.0 million in PE 65803A at HELSTF, of which $10.0 million 
     is for solid state laser research and $3.0 million is for 
     research and development activity at HELSTF. The conferees, 
     as described elsewhere in this report, endorse the 
     implementation of the management plan developed by the 
     Secretary of Defense and submitted to Congress on March 24, 
     2000. The conferees continue to support service management of 
     laser programs, but recognize the central role of the Office 
     of the Secretary of Defense in developing and implementing an 
     overall strategy to manage laser research effectively.
       Funding actions related to the Tactical High Energy Laser, 
     the Airborne Laser, and Space Based Laser are described 
     elsewhere in this report.
     Advanced tank armament system
       The budget request included $118.1 million for advanced 
     tank armament system research and development requirements.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $40.0 
     million to support Army transformation initiative test and 
     evaluation requirements.
       The conferees agree to authorize an increase of $150.0 
     million for Army transformation research and development 
     requirements.
     Defense manufacturing technology program
       The budget request contained a total of $149.1 million for 
     the Department of Defense manufacturing technology (ManTech) 
     program, including $29.3 million in PE 78045A for the Army 
     ManTech program, $59.6 million in PE 78011N for the Navy 
     program, $53.1 million in PE 78011F for the Air Force 
     program, and $7.1 million in PE 78011S for the Defense 
     Logistics Agency's ManTech program.
       The House bill would authorize an increase of $10.0 in PE 
     78045A for the Army manufacturing technology program, an 
     increase of 10.0 million for the Navy ManTech program, and an 
     increase of $4.5 million in PE 78011F in the Air Force 
     program.
       The Senate would authorize the budget request.
       The conferees agree to authorize an increase of $10.0 
     million in PE 78045A for the Army ManTech program, an 
     increase of $10.0 million in PE 78011N for the Navy ManTech 
     program, and an increase of $3.8 million in PE 78011F for the 
     Air Force ManTech program, as recommended in the House report 
     accompanying H.R. 4205 (H. Rept. 106-616).
       Section 217 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65) established as the 
     overall purpose of the Department of Defense ManTech program 
     the development and application of advanced manufacturing 
     technologies and processes to reduce acquisition and support 
     costs, and manufacturing and repair cycle times for defense 
     weapons systems. Section 217 emphasized the program's focus 
     on the development and application of advanced manufacturing 
     technology and processes that are essential to national 
     defense, including repair and re-manufacturing operations, in 
     support of systems commands, depots, air logistics centers, 
     and shipyards. Section 217 also required the participation of 
     the prospective users of the technology in the establishment 
     of requirements for, and the periodic review of advanced 
     manufacturing technologies or processes. Finally, Section 217 
     also included the requirement for an assessment of program 
     effectiveness, cost sharing, and technology and process 
     implementation plans in the annual update of the program's 
     five-year plan. In the statement of managers accompanying the 
     Strom Thurmond National Defense Authorization Act for Fiscal 
     Year 1999 (H. Rept. 105-736), the conferees expressed the 
     expectation that additional funds provided for the 
     manufacturing technology program would be awarded using 
     competitive procedures established by the military 
     departments for their respective manufacturing technology 
     programs.
       The conferees direct the Comptroller General to conduct an 
     assessment of the implementation of the manufacturing 
     technology program within the Department of Defense with 
     regard to the achievement of the goals established for the 
     program and execution of the program in accordance with the 
     provisions of the public law and the intent of Congress, as 
     stated in the statement of manager's language with regard to 
     competitive award procedures. The conferees direct the 
     Comptroller General to submit the results of that assessment 
     to the congressional defense committees by March 31, 2001.
     Overview
       The budget request for fiscal year 2001 contained an 
     authorization of $8,476.7 million for Navy, Research and 
     Development in the Department of Defense.
       The House bill would authorize $8,834.5 million.
       The Senate amendment would authorize $8,665.9 million.
       The conferees recommended an authorization of $8,715.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Biodegradable polymers
       The budget request included no funding for biodegradable 
     polymers (PE 62121N).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $1.25 
     million in PE 62121N to aid in the development of polymer 
     membrane methods for treating graywater (kitchen, shower, and 
     cleaning solution), blackwater (sewage), and bilge water 
     (oily contaminants) to acceptable levels prior to shipboard 
     release.
       The conferees agree to authorize an increase of $1.25 
     million in PE 62121N for biodegradable polymers.
     Torpedoes and unmanned undersea vehicles
       The budget request included $35.0 million in PE 62633N for 
     undersea warfare weapons technology development.
       The House bill and the Senate amendment would authorize the 
     budget request for improvements to torpedoes and unmanned 
     undersea vehicles.
       The conferees agree to an increase of $2.0 million in PE 
     62633N for development of improvements for current and future 
     torpedoes and unmanned undersea vehicles.
     DP-2 thrust vectoring system proof-of-concept demonstration
       The budget request included $39.7 million in PE 63217N for 
     air systems and weapons advanced technology development and 
     $9.0 million for NATO research and development. The budget 
     request did not include funds for continuation of the DP-2 
     thrust vectoring system proof-of-concept demonstration. The 
     budget request did include $6.4 million for the vectoring 
     extremely short takeoff and landing (ESTOL) control tailless 
     operation research (VECTOR) program, an international 
     cooperative research program between the United States and 
     the Federal Republic of Germany, as follows: $4.1 million in 
     PE 63217N and $2.3 million in PE 63790N.
       The House bill would authorize an increase of $9.5 million 
     in PE 63217N to continue the DP-2 development program leading 
     to a proof-of-concept demonstration of a one-half scale 
     flight test vehicle.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.5 
     million for DP-2 demonstration in PE 63790N.
       The conferees direct the Secretary of the Navy to provide 
     an assessment of the program progress, plans and funding 
     requirements for completion of the flight-test demonstration 
     to the congressional defense committees with the submission 
     of the fiscal year 2002 budget request.
       The conferees are aware that a funding shortfall has 
     developed in the VECTOR program. Given the cooperative nature 
     of this program, along with the substantial benefits to 
     future carrier aviation development, the conferees urge the 
     Secretary of the Navy to review the program funding 
     deficiencies and, if necessary, request a reprogramming 
     action.
     Virtual test bed for reconfigurable ship
       The budget request included no funding for a virtual test 
     bed for a reconfigurable ship.
       The House bill would authorize an increase of $3.0 million 
     in PE 63508N for a virtual test bed for advanced electrical 
     ship systems.
       The Senate amendment would authorize an increase of $2.0 
     million in PE 63508N for a virtual test bed for a 
     reconfigurable ship.
       The conferees agree to authorize an increase of $2.0 
     million in PE 63508N for a virtual test bed for a 
     reconfigurable ship, as recommended in the House report 
     accompanying H.R. 4205 (H. Rept. 106-616) and the Senate 
     report accompanying S. 2549 (S. Rept. 106-292).
     Fleet health technology and occupational lung disease
       The budget request included $10.1 million in PE 63706N for 
     medical development, including $4.8 million for the fleet 
     health technology program.
       The House bill would authorize an increase of $3.0 million 
     in PE 63706N, including $500,000 to establish an occupational 
     lung disease assessment program to determine if the incidence 
     of sarcoidosis among naval personnel could be attributable to 
     service aboard Navy ships. The House bill also noted and 
     expressed concern about the reduction in the Department of 
     the Navy's fleet health technology program from previous 
     years' funding levels and in the priority given to the 
     medical and occupational health and safety of Navy and Marine 
     Corps personnel.
       The Senate amendment would authorize the budget request.
       The conferees note that recent developments of immune 
     therapies by investigators at the Naval Medical Research 
     Center have been shown to prevent the rejection of 
     transplants without the need for continuous immunosuppressive 
     drugs. The ability to transplant massive tissue segments 
     without rejection could revolutionize the treatment of combat 
     casualties who suffer significant tissue loss or organ damage 
     from blast, missile fragments, or burns. Results obtained 
     from testing in the laboratory show promise and the Chief of 
     Naval Research has initiated a program to capitalize on these 
     newly developed methods of treatment. The conferees believe 
     that the further development of these therapies and 
     confirmation of these therapies in definitive clinical trials 
     could have profound effects upon the treatment of combat 
     casualties and of civilians with organ failure.
       The conferees agree to authorize an increase of $3.0 
     million in PE 63706N for fleet health technology for the 
     Navy's program for the development of new immune strategies 
     and procedures for tissue transplantation for the treatment 
     of combat casualties with massive tissue loss.
       The conferees also agree to authorize an increase of 
     $500,000 in PE 63738D for the conduct of the occupational 
     lung disease assessment as discussed in the House report 
     accompanying H.R. 4205 (H. Rept. 106-616).
     Common towed array
       The budget request included $113.3 million in PE 63561N for 
     advanced submarine systems development, including $4.5 
     million for the development of advanced towed array 
     technology for submarines and surface ships.
       The House bill would authorize an increase of $10.2 million 
     in PE 63561N to accelerate the development and demonstration 
     of advanced towed array systems for surface ships and 
     submarines. The House report accompanying H.R. 4205 (H. Rept. 
     106-616) indicated that these additional funds were to be 
     particularly focused on developing multiple-line and fiber 
     optic affordable towed array technology that could result in 
     high gain, volumetric towed arrays with significantly 
     improved sonar system performance for both submarines and 
     surface vessels.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $6.0 
     million in PE 63561N to accelerate the development and 
     demonstration of advanced towed array systems for surface 
     ships and submarines. The conferees agree that these funds 
     are not being designated for a specific program effort or 
     contractor program, but that the Navy should use the 
     additional funds to continue the efforts as described in the 
     House report accompanying H.R. 4205 (H. Rept. 106-616).
     Advanced land attack missile
       The budget request included $19.8 million for research and 
     development of the advanced land attack missile (ALAM) in PE 
     63795N.
       The House bill and the Senate amendment would authorize the 
     budget request.
       The conferees note that the House report accompanying H.R. 
     1401 (H. Rept. 106-162) directed the Secretary of the Navy to 
     report to the congressional defense committees the program 
     plan and funding requirements for development of an advanced 
     land attack missile (ALAM) system for the DD-21 land attack 
     destroyer and other Naval combatants with the submission of 
     the fiscal year 2001 budget request. The conferees also note 
     the letter from the Under Secretary of Defense (Acquisition 
     and Technology) to the Chairman, House Armed Services 
     Committee, dated August 25, 1999, which stated that the Navy 
     would pursue a multi-team industry competition for 
     development of ALAM, and the Milestone 0 Acquisition Decision 
     Memorandum, dated February 22, 2000, that designated the ALAM 
     as a major defense acquisition program. The conferees further 
     note that the Navy's ALAM program plan and funding included 
     in the fiscal year 2001 budget request provide for completion 
     of an ALAM analysis of alternatives and entry into the 
     program risk and reduction phase in fiscal year 2001, 
     competition and early prototyping by three to four 
     contractors leading to an ALAM down-select/''fly-off'' by the 
     end of fiscal year 2003, engineering and manufacturing 
     development, initial procurement, and delivery of the ALAM 
     system to the fleet in early fiscal year 2009 for the DD-21 
     Zumwalt-class destroyer.
       The conferees agree to authorize a decrease of $10.8 
     million in PE 63795N for ALAM based on information made 
     available to the conferees subsequent to passage of the House 
     bill and the Senate amendment. The conferees place a high 
     priority on completing the analysis of alternatives to 
     determine the appropriate course of action for providing 
     Naval fire support. The conferees direct the Secretary of the 
     Navy to report to the congressional defense committees 
     concurrent with the submission of the fiscal year 2002 budget 
     request on recommended revisions to the ALAM program plan and 
     the funding required to deploy a system as soon as 
     technically feasible.
     Joint strike fighter
       The budget request included $131.6 million in PE 63800N and 
     $129.5 million in PE 63800F to complete the demonstration and 
     validation (DEMVAL) phase for the joint strike fighter (JSF) 
     program. The budget request also included $296.0 million in 
     PE 64800N and $299.5 million in PE 64800F to initiate the 
     engineering and manufacturing development (EMD) phase for the 
     JSF.
       The House bill would authorize the budget request and 
     contained several provisions related to JSF discussed 
     elsewhere in this conference agreement.
       The Senate amendment would authorize an increase of $212.1 
     million in PE 63800N and an increase of $212.1 million in PE 
     63800F to extend the DEMVAL phase. The Senate amendment would 
     also authorize a decrease of all funding requested for the 
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[[Page 21614]]

     million in PE 64800N and $299.5 million in PE 64800F, due to 
     slips in program schedule. The Senate amendment contained a 
     JSF provision discussed elsewhere in this conference 
     agreement.
       The conferees agree to authorize an overall decrease of 
     $168.0 million in the JSF program, as follows:
       (1) an increase of $111.5 million in PE 63800N;
       (2) an increase of $113.5 million in PE 63800F;
       (3) a decrease of $194.7 million in PE 64800N; and
       (4) a decrease of $198.3 million in PE 64800F.
       The conferees remain concerned about the readiness of the 
     JSF program to enter the EMD phase, and note that significant 
     delays in the schedule, particularly the flight program for 
     the short take-off, vertical landing (STOVL) variant of the 
     JSF, further increase the technical risk for entry into the 
     EMD phase. A JSF provision discussed elsewhere in this 
     conference agreement addresses conferee concerns surrounding 
     the technical risk of premature entry into EMD.
       The conferees are also concerned about the apparent pattern 
     of additional contractor funding required to sustain the 
     current DEMVAL activities of the program. Since the JSF 
     program is potentially one of the largest acquisition 
     programs in the Department of Defense, both competing 
     contractors in this winner-take-all competition realize the 
     significance of winner selection. However, the conferees are 
     opposed to the requirement for industry to make additional, 
     unreimbursed investments in the JSF program beyond existing 
     contractual agreements. The conferees view the additional 
     DEMVAL funding as necessary to provide for the execution of 
     those projects presented in the budget request on the 
     extended schedule. The conferees expect that risk mitigation 
     projects, including the alternate engine, will be funded to 
     the levels presented in the budget request.
     Nonlethal research and technologies
       The budget request included no funding for nonlethal 
     research and technologies in PE 63851M.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $8.0 
     million for nonlethal research and technologies in PE 63851M.
       The conferees agree to authorize an increase of $4.0 
     million in PE 63851M. Of the increased amount, $2.0 million 
     will be used to develop a program in nonlethal environmental 
     effects and remediation as recommended in the Senate report 
     accompanying S. 2549 (S. Rept. 106-292).
     Power node control centers
       The budget request included no funding for power node 
     control centers (PNCC) for integrating shipboard power 
     functions such as switching, conversion, distribution, and 
     system operation and protection.
       The House bill would authorize an increase of $3.0 million 
     in PE 63508N for PNCC.
       The Senate amendment would authorize an increase of $3.0 
     million in PE 64300N for PNCC.
       The conferees agree to authorize an increase of $3.0 
     million in PE 64300N for PNCC.
     Advanced food service technology
       The budget request included no funding for research and 
     development of technologies that could lead to manpower 
     reductions resulting from altering food service operations on 
     ships.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $2.0 
     million in PE 64300N for advanced food service technology 
     testing.
       The conferees agree to authorize a an increase of $2.0 
     million in PE 64307N for advanced food service technology 
     testing.
     F-14 tactical reconnaissance
       The budget request included $1.2 million for operational 
     systems development of the F-14 aircraft.
       The House bill would authorize an increase of $7.0 million 
     in aircraft procurement for the integration and demonstration 
     of a commercial synthetic aperture radar (SAR) in the F-14 
     tactical airborne reconnaissance pod system (TARPS). This 
     demonstration was intended to mitigate the risk associated 
     with the development of a SAR capability for the shared 
     airborne reconnaissance program (SHARP).
       The Senate amendment would authorize an increase of $9.0 
     million in PE 25667N for a similar purpose.
       The conferees agree to authorize an increase of $9.0 
     million in PE 25677N to demonstrate the military utility of a 
     tactical SAR reconnaissance capability by modifying and 
     integrating non-developmental SAR technology into the F-14 
     TARPS.
       The conferees note that this effort is specifically 
     intended to mitigate the risk associated with providing an 
     all-weather capability for SHARP. The conferees agree that 
     these funds are not being designated for a specific 
     contractor's program. The conferees also agree that, if the 
     technology proves attractive during the risk mitigation 
     program, the Navy should select SAR technology for the SHARP 
     application using appropriate competitive procedures.
     Marine Corps ground combat/supporting arms systems
       The budget request included $22.1 million for Marine Corps 
     ground combat and supporting arms systems research and 
     development requirements.
       The House bill would authorize an increase of $17.3 million 
     in PE 63635M to support efforts by the Marine Corps to 
     evaluate the potential that the high mobility artillery 
     rocket system (HIMARS) might have to meet critical Marine 
     Corps fire support requirements.
       The Senate amendment would authorize an identical increase.
       The conferees agree to authorize an increase of $17.3 
     million in PE 26623M to support Marine Corps plans to 
     evaluate the ability of HIMARS to address deficiencies in 
     organic fire support for Marine Corps forces ashore.
     Tactical unmanned aerial vehicles
       The budget request included $113.1 million for tactical 
     unmanned aerial vehicles (TUAVs).
       The House bill would authorize an increase of $1.0 million 
     for the joint operational test bed (JOTB), and an increase of 
     $7.0 million for TUAV multi-function, self-aligned gate array 
     (MSAG) technology.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $1.0 
     million for the JOTB and an increase of $7.0 million for TUAV 
     MSAG technology, a total authorization of $121.1 million in 
     PE 35204N.
       The conferees note that the Joint Forces Command is tasked 
     with ensuring interoperability among military forces. The 
     conferees are aware that the Joint Requirements Oversight 
     Council endorsed the tactical control system (TCS) to provide 
     this interoperability among unmmanned aerial vehicles (UAVs), 
     and that the Joint Forces Command has recently established 
     the JOTB to develop this capability, using a TCS and two 
     Predator UAVs. The conferees strongly support UAV 
     interoperability, the establishment of the JOTB, and the use 
     of TCS and Predator UAVs to achieve this goal.
       The conferees are also encouraged by results of MSAG 
     antenna technology testing, and reaffirm their support for 
     the ongoing MSAG advanced concept technology demonstration 
     (ACTD). The JROC approved this ACTD based on the 
     recommendation of the operational commanders in chief, who 
     rated the MSAG effort number one of twelve candidates. The 
     conferees are aware that the Navy may consider withdrawing 
     its sponsorship of the ACTD. The conferees believe that the 
     MSAG ACTD program should move forward. The conferees direct 
     the Secretary of Defense to ensure that no change in the ACTD 
     content or schedule will be effected by a change in 
     sponsorship of the program.
     Overview
       The budget request for fiscal year 2001 contained an 
     authorization of $13,685.6 million for Air Force, Research 
     and Development in the Department of Defense.
       The House bill would authorize $13,677.1 million.
       The Senate amendment would authorize $13,897.3 million.
       The conferees recommended an authorization of $13,779.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     XSS-10 micro-satellite technology demonstration
       The budget request included no funding to complete and 
     launch the XSS-10 micro-satellite technology demonstration.
       The House bill would authorize the budget request.
       The Senate amendment would authorize $12.0 million in PE 
     63401F to complete, launch, and operate the XSS-10 technology 
     demonstration satellite.
       The conferees agree to authorize $8.0 million in PE 62602F 
     to complete the XSS-10 technology demonstration satellite. 
     The conferees are aware that additional funds may be required 
     to fully fund the launch and operation of the XSS-10. 
     Therefore, the conferees direct the Secretary of the Air 
     Force to reallocate the funds to complete the XSS-10 
     satellite and support its launch and operation from within 
     funds authorized to be appropriated in PE 62601F and PE 
     63401F, as necessary.
     Specialty aerospace metals
       The budget request included $72.8 million for PE 62102F for 
     applied research, $21.7 million in PE 63112F for advanced 
     development of materials technologies for aerospace systems, 
     and $53.1 million in PE 78011F for the Air Force's 
     manufacturing technology program. The budget request included 
     $57.7 million in 62601F for space technology.
       The House bill would authorize a total increase of $15.0 
     million as follows: $5.25 million in PE 62102F; $5.25 million 
     in PE 63112F; and $4.5 million in PE 78011F to establish an 
     integrated program for the development and demonstration of 
     special aerospace materials and materials manufacturing 
     processes. The House bill would also encourage the Secretary 
     of the Air Force to establish a continuing program for 
     special aerospace metals and alloys as an integral part of 
     the Air Force's science and technology and manufacturing 
     technology programs.
       The Senate amendment would authorize an increase of $3.0 
     million in PE 62601F for the aluminum aerostructures 
     initiative.
       The conferees agree to authorize an increase of $1.8 
     million in PE 62601F for the aluminum aerostructures and an 
     increase of $12.8 million for aerospace specialty metals, of 
     which $1.2 million would be used for the aluminum 
     aerostructures initiative. The $12.8 million would be 
     distributed as follows: $4.5 million in PE 62102F; $4.5 
     million in PE 63112F; and, $3.8 million in PE 78011F.
       The conferees note the continuing need for advances in 
     special aerospace metals and metal alloys for aircraft and 
     space vehicle structures, propulsion, components, and weapon 
     systems. Both the Navy and the Air Force are seeking access 
     to materials that are lightweight, high strength, high 
     performance, and capable of withstanding the stressing 
     environments that are experienced by aerospace systems, and 
     for the development and optimization of manufacturing 
     processes for these materials. The conferees support the Air 
     Force's efforts to develop and demonstrate a methodology for 
     producing advanced aluminum aerostructures generating 
     improved affordability, maintainability, and enhanced 
     performance of current and future Air Force systems within 
     the Advanced Aluminum Aerostructures initiative.
       The conferees request that the Secretary of the Air Force 
     assess requirements for advanced special aerospace metals and 
     alloys and to report to the congressional defense committees 
     on the plan for meeting those requirements with the 
     submission of the fiscal year 2002 budget request.
     Space-based radar
       The budget request included $129.0 million for the 
     Discoverer II space-based radar (SBR) program.
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $30.0 million for 
     continued SBR risk reduction and technology development.
       The conferees strongly support an effort to develop the 
     technologies and operational concepts that could enable 
     deployment of an SBR system to perform ground moving target 
     indications (GMTI), digital terrain elevation data (DTED) 
     collection, and synthetic aperture radar (SAR) imaging. The 
     conferees believe that such a system may offer a cost-
     effective way to provide valuable new technical capabilities 
     while complementing, and perhaps replacing, the capabilities 
     of other existing systems. The conferees believe that the 
     Secretary of Defense should evaluate options for eventual 
     development and deployment of an operational SBR system. In 
     addition, the conferees believe that the Air Force, U.S. 
     Space Command, the Defense Advanced Research Projects Agency, 
     and the National Reconnaissance Office should continue to 
     work together to mature the necessary technologies, conduct 
     an analysis of alternatives, and develop operational concepts 
     to provide better information for this evaluation and to 
     support a potential deployment.
       Therefore, the conferees direct the Secretary of Defense to 
     prepare an SBR roadmap to guide this overall effort. The 
     roadmap should address several concerns: (1) the operational 
     requirements for space-based GMTI, DTED, and SAR 
     capabilities; (2) the relationship of an SBR system to other 
     current and planned air and space-based assets that might 
     provide such capabilities; (3) the technologies needed to 
     enable an affordable and operationally effective SBR system; 
     and (4) if a requirement for an SBR system is established, 
     whether a space-based technology demonstrator would be cost-
     beneficial prior to an SBR system acquisition. The conferees 
     direct the Secretary to submit a report to the congressional 
     defense committees on the SBR roadmap by May 1, 2001.
     Space maneuver vehicle
       The budget request included no funding for the Space 
     Maneuver Vehicle (SMV).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $15.0 
     million in PE 63401F for the SMV program.
       The conferees agree to authorize an increase of $6.5 
     million in PE 63401F for acquisition of the ``second tail 
     number'' X-40B demonstrator.
       The conferees note that SMV development has been funded 
     through congressional increases and are disappointed at the 
     failure of the Secretary of the Air Force to request funding 
     or provide efficient management for this program, 
     notwithstanding repeated statements by Air Force and U.S. 
     Space Command leaders indicating the importance of this 
     program. The conferees urge the Air Force to request funding 
     in future budget requests to support expeditious development.
       The conferees also note that the full benefit of the 
     Military Spaceplane concept, including the SMV, will not be 
     realized without a low-cost reusable lower stage booster. The 
     conferees direct the Secretary of the Air Force to provide a 
     report to the congressional defense committees by April 1, 
     2001, on concepts, critical development paths, and 
     applications for such a booster, and how it could fit into an 
     overall Military Spaceplane system.
     Space Based Laser program
       The budget request included $137.7 million for the Space 
     Based Laser (SBL) program, $63.2 million in the Air Force 
     budget and $74.5 million in the Ballistic Missile Defense 
     Organization budget.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $30.0 
     million in PE 63876F to support acceleration of the SBL 
     Integrated Flight Experiment (IFX) and the SBL integrated 
     test facility.
       The conferees agree to authorize an increase of $10.0 
     million in PE 63876F to support acceleration of the IFX and 
     the integrated test facility.
     Electronic warfare development
       The budget request included $58.2 million in PE 64270F for 
     electronic warfare development.
       The House bill would authorize an increase of $17.7 million 
     in PE 64270F to continue development of the precision 
     location and identification (PLAID) program, and an increase 
     of $7.0 million in PE 64270F to increase the suitability of 
     the miniature air-launched decoy (MALD) for operational use.
       The Senate amendment contained a provision (sec. 226) that 
     would authorize an increase of $8.0 million in PE 64270F for 
     continued development of PLAID.
       The Senate recedes on the provision.
       The conferees agree to authorize a decrease of $8.6 million 
     in PE 64270F, a total authorization of $49.6 million in 
     electronic warfare development, as follows:
       (1) an increase of $10.0 million for PLAID;
       (2) an increase of $1.2 million for MALD; and
       (3) a decrease of $19.8 million to reflect reapplication of 
     prior year funds available due to Air Force withdrawal from 
     the common missile warning system (CMWS) program.
     Satellite control network
       The budget request included $58.6 million in PE 35110F for 
     satellite control network research and development.
       The House bill would authorize the budget request and would 
     require that $1.5 million be used for the Space Battlelab to 
     evaluate the utility of commercial antenna networks for 
     satellite control.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request without 
     the restriction contained in the House bill.
       The conferees direct the Secretary of the Air Force to 
     conduct an evaluation of commercial technologies and services 
     relevant to modernization of the satellite control network. 
     The conferees believe that commercial technology may offer 
     significant possibilities for modernizing the network, 
     including its antennas, in a cost effective manner. The 
     conferees direct the Secretary of the Air Force to submit a 
     report on his evaluation to the congressional defense 
     committees by April 1, 2001.
     Manned reconnaissance systems
       The budget request included no funding in PE 35207F for 
     manned reconnaissance systems.
       The House bill would authorize an increase of $2.0 million 
     to complete a multi-link antenna system demonstration program 
     on RC-135 aircraft.

[[Page 21626]]

       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $9.5 
     million to demonstrate the potential to integrate the data 
     from an offboard intelligence sensor controlled by RC-135 
     Combat Sent aircraft into the Combat Sent processing system. 
     This concept would involve adapting the expeditionary common 
     automatic recovery system (ECARS) to control and precisely 
     position the offboard platform to technically extend the 
     reach of the Combat Sent aircraft into denied areas during a 
     conflict. This concept would also provide for the safe, 
     unassisted recovery of the offboard sensor. Since this data 
     can be critical to responding to emerging threats during high 
     intensity operations, the conferees believe that this effort 
     should be supported.
     Overview
       The budget request for fiscal year 2001 contained an 
     authorization of $10,238.2 million for Defense-Wide, Research 
     and Development in the Department of Defense.
       The House bill would authorize $11,077.8 million.
       The Senate amendment would authorize $11,043.1 million.
       The conferees recommended an authorization of $10,681.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 21636]]

     Chemical and Biological Defense Program
       The budget request included $835.8 million for the Chemical 
     and Biological Defense Program (CBDP), including $473.9 
     million for procurement and $361.9 million for research and 
     development.
       The House bill would authorize an increase of $4.5 million 
     in PE 61384BP, including $3.0 million for chemical and 
     biological defense basic research and $1.5 million for 
     chemical agent detection via optical computing; and $5.0 
     million in PE 62384BP for chemical and biological defense 
     applied research.
       The Senate amendment would authorize increases for the 
     following chemical and biological defense program activities: 
     $2.0 million for chemical agent detection via optical 
     computing and $3.0 million for thin film technology in PE 
     61384BP; $8.0 million to accelerate development of a light-
     weight, man portable hybrid sensor using thin film technology 
     in PE 62384BP; $2.7 million for the chemical-biological 
     individual sampler, $6.4 million for the consequence 
     management information system, $3.5 million for the 
     evaluation of advanced materials that contain reactive 
     technologies to be added to textiles for protection against 
     chemical and biological warfare agents, and $8.5 million for 
     the Small Unit Biological Detector in PE 63384BP; $2.1 
     million for a next generation anthrax vaccine in PE 64384BP; 
     $2.5 million for the procurement of thirteen enhanced 
     nuclear, biological, and chemical (NBC) kits; and $1.8 
     million for the procurement of equipment in support of 
     Weapons of Mass Destruction, Civil Support Teams (WMD-CST).
       The conferees agree to authorize an increase for the 
     following chemical and biological defense program activities: 
     $6.7 million in PE 61384BP for chemical and biological 
     defense basic research, including $3.0 million for chemical 
     and biological defense, $2.0 million for chemical agent 
     detection via optical computing, and $1.7 million for thin 
     film technology in PE 61384BP; $4.8 million in PE 62384BP for 
     a hybrid sensor suite using thin film technology; and $9.55 
     million in PE 63384BP, including $2.0 million for the 
     chemical and biological individual sampler, $4.0 million for 
     the consequence management information system, $2.8 million 
     for evaluation of advanced materials containing reactive 
     materials that may be added to textiles for protection 
     against chemical and biological warfare agents, $750,000 for 
     the small unit biological detector, and $1.0 million for 
     second generation anthrax vaccine development. The conferees 
     also agree to authorize increases of $2.5 million for 
     procurement of NBC Defense Enhancement kits for Marine 
     Expeditionary Units and $900,000 for procurement of equipment 
     for Weapons of Mass Destruction, Civil Support Teams.
       The conferees support initiatives for research, 
     development, and demonstration of advanced chemical and 
     biological defense technologies and systems. The conferees 
     note, however, the growing tendency to fund individual 
     chemical and biological defense projects directly within the 
     budget accounts of the military services. The conferees 
     emphasize that this practice violates the intent and purpose 
     of Congress in establishing the consolidated chemical and 
     biological defense program. The conferees direct the Under 
     Secretary of Defense (Acquisition, Technology, and Logistics) 
     to ensure that such initiatives compete for funding within 
     the appropriate program elements of the joint chemical and 
     biological defense program and the Defense Advanced Research 
     Projects Agency's biological defense program on the basis of 
     technical merit and the anticipated ability of the technology 
     or system to meet joint and service unique needs.
     Nuclear sustainment and counterproliferation technologies
       The budget request included $230.9 million in PE 62715BR 
     for nuclear sustainment and counterproliferation 
     technologies, including $60.7 million for weapons effects 
     technologies.
       The House bill would authorize an increase of $3.0 million 
     for thermionics for space powered systems and a decrease of 
     $20.0 million to adjust for program growth in PE 62715BR.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $2.5 
     million for thermionics for space powered systems and a 
     decrease of $21.0 million to adjust for program growth in PE 
     62715BR.
       The conferees note that partnerships between universities, 
     government laboratories, and industry accelerate the testing, 
     development, and fielding of blast mitigation technologies 
     for protection of U.S. missions and military installations 
     abroad. The conferees strongly support such partnerships and 
     encourage the Defense Threat Reduction Agency to continue to 
     provide funding for this important initiative.
     Blast mitigation testing
       The budget request included $10.0 million in PE 63122D for 
     blast mitigation testing.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $3.0 
     million in PE 63122D for blast mitigation testing.
       The conferees agree to authorize an increase of $3.0 
     million in PE 63122D to accelerate the testing and 
     certification of blast mitigation effects technology.
       The conferees note these funds would allow the Department 
     of Defense to accelerate the testing and analysis of building 
     components and improve building design standards and 
     guidelines for use in new construction applications.
     Chemical and biological detectors
       The budget request included $300,000 in PE 63122D to 
     continue to develop aerogel and fiber optic based 
     technologies for chemical and biological collector and 
     detector prototypes.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 63122D for aerogel and fiber optic based 
     technologies for chemical and biological collector and 
     detector prototypes.
       The conferees agree to authorize an increase of $3.0 
     million in PE 63122D for aerogel and fiber optic based 
     technologies for chemical and biological collector and 
     detector prototypes.
     Facial recognition access control technology
       The budget request included no funding in PE 63122D for 
     facial recognition access control technology.
       The House bill would authorize an increase of $4.0 million 
     in PE 63122D for facial recognition access control 
     technology.
       The Senate amendment would authorize an increase of $2.0 
     million in PE 63122D for facial recognition access control 
     technology.
       The conferees agree to authorize an increase of $2.0 
     million in PE 63122D for facial recognition access control 
     technology.
       The conferees note these funds will be used to further the 
     efforts of the Department of Defense to develop, test and 
     evaluate this surveillance, identification, and access 
     control technology, and allow prototype development and 
     testing.
     Technologies for detection and transport of pollutants 
         attributable to live-fire activities
       The budget request included $9.0 million for research, 
     development, testing, and evaluation (RDT&E) related to the 
     environmental remediation of unexploded ordnance (UXO), $5.0 
     million in PE 63716D for development of UXO technology 
     through the Strategic Environmental Research and Development 
     Program (SERDP) and $4.0 million in PE 63851D for 
     demonstration/validation through the Environmental Security 
     Technology Certification Program (ESTCP).
       The House bill would authorize $3.0 million within SERDP 
     for the Texas Regional Institute for Environmental Studies 
     (TRIES).
       The Senate amendment contained a provision (sec. 222) that 
     would authorize an increase of $5.0 million in SERDP (PE 
     63716D) for the development of technologies to map the 
     presence and transport of constituents related to live-fire 
     activities. The Senate amendment would also authorize an 
     increase of $10.0 million in ESTCP (PE 63851D) for 
     demonstration/validation of UXO remediation technology.
       The Senate recedes on the provision.
       The conferees agree to authorize $2.0 million within SERDP 
     (PE 63716D) for TRIES. The conferees also agree to authorize 
     an increase of $4.0 million for ESTCP (PE 63851D) and $4.0 
     million for SERDP (PE 63716D) to conduct RDT&E activities 
     that will begin to address the full range of issues 
     associated with the detection and remediation of constituents 
     attributable to military live-fire training activities that 
     impact a variety of hydrogeological areas.
       The Department of Defense (DOD) has informed the conferees 
     that its potential liability for remediation of unexploded 
     ordnance may exceed $100.0 billion. It is evident to the 
     conferees that increased emphasis in this area is essential.
       Specifically, the conferees expect that the increased 
     funding will be used for the research, development, and 
     demonstration/validation of viable, cost effective 
     technologies to detect, analyze, and map the presence and 
     transport of live-fire constituents. Demonstration/validation 
     of these technologies shall to the extent practicable be 
     conducted at sites where detection and possible remediation 
     of live-fire constituents is underway. Such efforts will help 
     the military departments meet the extraordinary environmental 
     detection and remediation challenges at active, inactive, 
     closed, transferred, and transferring ranges. Performance 
     measures shall be established for all technologies developed 
     with these additional funds to facilitate implementation and 
     utilization by the DOD.
     Weapons of mass destruction attack-effects-response 
         assessment capability at U.S. Joint Forces Command
       The budget request included $56.971 million in PE 63832D 
     for the Joint Wargaming Simulation Management Office.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $5.0 
     million in PE 63832D for the development and installation of 
     a weapon of mass destruction attack-effects-response 
     assessment capability for the Joint Task Forces-Civil Support 
     that was recently established as part of the U.S. Joint 
     Forces Command (USJFCOM). This program will allow USJFCOM, 
     along with government

[[Page 21637]]

     agencies, state, and local authorities, to model chemical, 
     biological or radiological incidents from the initial 
     detection of the attack and initial effects through the 
     medical response to the incident in an integrated, 
     interoperable manner.
       The conferees agree to authorize an increase of $3.0 
     million in PE 63832D for the development and installation of 
     a weapon of mass destruction attack-effects-response 
     assessment capability at USJFCOM.
     Ballistic Missile Defense Organization funding and 
         programmatic guidance
       The budget request included approximately $4.5 billion for 
     the Ballistic Missile Defense Organization (BMDO), including 
     Procurement, Research, Development, Test and Evaluation 
     (RDT&E) and military construction.
       The House bill would authorize an increase of $669.6 
     million in RDT&E funding for BMDO, including transfers of 
     funds from the Air Force for the Space Based Infrared System 
     (SBIRS) Low and the Airborne Laser Program.
       The Senate amendment would authorize an increase of $240.0 
     million in RDT&E funding for BMDO.
       The conferees agree to authorize an overall increase of 
     $264.1 million for BMDO RDT&E, as specified below. The 
     conferee's recommendations for BMDO military construction are 
     provided elsewhere in this conference agreement. The 
     conferees' recommendations regarding the Airborne Laser and 
     SBIRS-Low programs are also provided elsewhere in this 
     conference agreement.


                           support technology

       The conferees continue to support BMDO's efforts in the 
     area of wide bandgap electronic materials and devices. To 
     support this important technology effort, the conferees 
     recommend an increase of $2.0 million in PE 62173C and an 
     increase of $10.0 million in PE 63173C.
       The conferees continue to support the Atmospheric 
     Interceptor Technology (AIT) program to develop advanced 
     interceptor kill vehicle technologies. The conferees 
     recommend an increase of $9.0 million in PE 63173C to support 
     the AIT program.
       The conferees have supported BMDO's efforts to evaluate 
     innovative and low-cost launch technologies. The conferees 
     recommend an increase of $6.5 million in PE 63173C to support 
     low cost launch technology, including the Excalibur concept. 
     The conferees also agree to authorize an increase of $6.5 
     million in the Air Force budget (PE 63401F) for low cost 
     launch, including the Scorpius concept.
       The conferees note that the Director of BMDO has identified 
     a need for additional funding to develop robust adaptive 
     algorithms to counter evolving and off-nominal ballistic 
     missile threats. The conferees recommend an increase of $2.8 
     million in PE 63173C to support such algorithm development.
       The conferees remain concerned that funding for innovative 
     ballistic missile defense technology projects continues to be 
     insufficient to support BMDO's future needs. The conferees 
     recommend that the Director of BMDO identify funds throughout 
     the Future Years Defense Program sufficient to support a 
     technology program that hedges against rapidly evolving 
     missile threats.


                        national missile defense

       The budget request included approximately $1.8 billion for 
     the National Missile Defense (NMD) program, including 
     Procurement and RDT&E. The conferees note that the Director 
     of BMDO has identified a number of areas in which additional 
     funds could be utilized to enhance risk reduction and testing 
     activities. The Director identified $129.0 million in 
     critical risk reduction unfunded requirements. Therefore, the 
     conferees recommend an increase of $129.0 million in PE 
     63871C for NMD risk reduction.
       The conferees understand that BMDO is considering entering 
     into a competition for the NMD X-band ground-based radars 
     (GBR) that would be deployed following the initial deployment 
     of the GBR site in Alaska. The conferees direct the Director 
     of BMDO to conduct an analysis of the advantages and 
     disadvantages of a competitive approach to follow-on GBR 
     development and deployment, and provide a report to the 
     congressional defense committees by April 1, 2001. The 
     conferees also agree to authorize an increase of $6.0 million 
     in PE 63871C to support initial technology development and 
     evaluation for the NMD capability-2 (C-2) radar.
       The conferees are concerned by potential delays in the NMD 
     program associated with the development of the ground-based 
     interceptor (GBI) booster. The conferees believe that BMDO 
     should evaluate options for reducing technical and schedule 
     risks associated with the GBI, including the development of a 
     backup booster option involving proven technologies. The 
     conferees direct the Director of BMDO to submit a report to 
     the congressional defense committees by April 1, 2001, on 
     plans for mitigating the booster problems.


                           navy theater wide

       The conferees continue to support the Navy Theater Wide 
     (NTW) program and urge the Secretary of Defense to accelerate 
     this important program to the extent permitted by the pace of 
     technological development. The conferees agree to authorize 
     an overall increase of $80.0 million in PE 63868C to 
     accelerate the NTW program and to begin work on an advanced 
     technology kill vehicle. Of this amount, the conferees agree 
     to authorize the use of $65.0 million for acceleration of the 
     Standard Missile-3 (SM-3) and to support continuation of NTW 
     radar competition.
       The conferees believe that BMDO should immediately begin to 
     define and develop the necessary technology for the SM-3 
     block II kill vehicle. The conferees agree to authorize an 
     increase of $15.0 million in PE 63868C to support the 
     development of advanced NTW kill vehicle concepts employing 
     light-weight non-toxic pumped-propulsion and active/passive 
     sensor technology.
       The conferees are concerned that the Navy has relied on 
     congressional increases in the NTW program to support 
     development of radar technologies and systems to support the 
     ballistic missile defense mission. The conferees note that 
     neither the Navy nor BMDO has budgeted for Navy missile 
     defense radar requirements, as identified in the Navy's radar 
     roadmap. The conferees believe that acceleration of the NTW 
     program may be problematic unless these requirements are 
     clearly defined. Such efforts are too important to remain 
     unfunded in upcoming budget requests. The conferees believe 
     that radar upgrades are primarily a Navy responsibility 
     because they must be thoroughly integrated across the range 
     of Navy missions, and that such upgrades cannot be funded 
     exclusively through BMDO or through congressional increases. 
     The conferees direct the Secretary of Defense to define the 
     appropriate management and funding responsibilities between 
     the Navy and BMDO regarding the development and acquisition 
     of radars that support the Navy ballistic missile defense 
     mission, and to ensure that appropriate funds are requested 
     to support these activities.


                   Medium Extended Air Defense System

       The budget request included $63.2 million for the Medium 
     Extended Air Defense System (MEADS). The conferees recommend 
     a decrease of $9.7 million in PE 63869C due to growth in the 
     MEADS program.


                        BMD Technical Operations

       The conferees continue to support BMDO's effort to develop 
     a theater missile defense surrogate target based on a liquid 
     fuel engine. The conferees agree to authorize an increase of 
     $2.5 million in PE 63874C to continue this effort.
       The conferees continue to support the Army Space and 
     Missile Defense Command's Advanced Research Center (ARC) and 
     agree to authorize an increase of $6.0 million in PE 63874C 
     in support of the ARC.
       The conferees support BMDO's efforts to improve missile 
     defense technologies and capabilities against advanced 
     theater ballistic missile threats. One promising area of 
     research is in optical data and sensor fusion for detection 
     and discrimination of advanced threats, missile plumes, and 
     penetration aids using advanced image processing and optical 
     discrimination algorithms. The conferees agree to authorize 
     an increase of $3.0 million in PE 63874C for BMDO to continue 
     this work.
       BMDO has succeeded in employing wide-band information 
     technologies to link geographically dispersed radar and 
     missile hardware-in-the-loop test facilities to improve 
     ground testing of theater missile defense systems and 
     increase the probability of successful flight testing. The 
     conferees believe that this approach can be used in other 
     areas, including battle management and command, control, 
     communications, and intelligence (C3I). Therefore, the 
     conferees agree to authorize an increase of $9.0 million in 
     PE 63874C to support continued development of a wide-band 
     information infrastructure for BMDO.


                   International Cooperative Programs

       The budget request included $117.0 million for BMDO 
     International Cooperative Programs, including $81.2 million 
     for Israeli Cooperative Projects and $35.8 million for the 
     Russian-American Observation Satellites (RAMOS) program.
       The conferees acknowledge that the budget request included 
     $45.0 million to support continued acquisition of the Arrow 
     Third Battery. The conferees agree to authorize an increase 
     of $8.0 million in PE 63875C to initiate the Arrow System 
     Improvement Plan.
     Defense imagery and mapping program
       The budget request included $75.0 million in PE 35102BQ.
       The House bill would authorize an increase of $22.0 million 
     in PE 35102BQ: $4.0 million for Rome Laboratory moving target 
     exploitation efforts; $3.0 million for the National 
     Technology Alliance and the National Imagery and Mapping 
     Agency (NIMA) Viewer development; and $15.0 million for the 
     Geo-Synthetic Aperture Radar (GeoSAR) program.
       The Senate amendment would authorize an increase of $7.0 
     million in PE 35102BQ: $5.0 for the NIMA Viewer; and $2.0 
     million for the ``Smart Maps'' initiative.
       The conferees agree to authorize an increase of $20.0 
     million in PE 35102BQ: $3.0 million for the development of a 
     Commercial Mapping and Visualization Toolkit, which includes 
     the NIMA Viewer concept; $15.0 million for the GeoSAR 
     program; and $2.0 million for the ``Smart Maps'' initiative.

[[Page 21638]]

       The conferees agree that the mapping and visualization 
     toolkit development funds are not being designated for a 
     specific contractor program, but that NIMA should use the 
     additional funds to continue efforts to upgrade its 
     commercial mapping and visualization toolkit, and give 
     appropriate consideration to competitive commercial sources 
     for conducting this work.
     Special operations tactical systems development
       The budget request included $133.5 million for special 
     operations tactical systems development in PE11644BB. The 
     budget request did not include funding to continue the 
     development of many programs, including the MC-130 autonomous 
     landing guidance system, the CV-22 terrain following radar 
     upgrades, or the advanced lightweight grenade launcher.
       The House bill would authorize an increase of $14.2 million 
     in PE 11644BB, as follows: $9.2 million for the CV-22 terrain 
     following radar improvements; and, $5.0 million for continued 
     development of the MC-130 autonomous landing guidance system.
       The Senate amendment would authorize an increase of $5.6 
     million in PE 11648BB, Special Operations Forces operational 
     enhancements, for the purpose of continuing research and 
     development of the advanced lightweight grenade launcher.
       The conferees agree to authorize an increase of $13.3 
     million in PE 11644BB, special operations tactical systems 
     development to be distributed as follows: $4.5 million for 
     the MC-130 autonomous landing guidance system; $6.0 million 
     for the CV-22 terrain following radar upgrades; and, $2.8 
     million for the advanced lightweight grenade launcher.
       The conferees also understand that there may be slippage in 
     the CV-22 post initial operational capability block 10 
     changes. Additionally, the C-130 engine infrared suppression 
     program has been canceled due to higher priority 
     requirements. Therefore, the conferees agree to a reduction 
     of $3.0 million for the CV-22 block 10 changes and a 
     reduction of $5.0 million for the C-130 engine infrared 
     suppression program.


                       ITEMS OF SPECIAL INTEREST

     Common imagery processor
       The House report accompanying H.R. 4392, the Intelligence 
     Authorization Act for Fiscal Year 2001 (H. Rept. 106-620), 
     would direct that, of the amounts appropriated pursuant to 
     that Act in PE 35208F and PE 35208N for the distributed 
     common ground system (DCGS), no more than 25 percent could be 
     obligated or expended until the Department of Defense submits 
     a plan to the congressional defense and intelligence 
     committees that details how the common imagery processor 
     (CIP) will be integrated into the Navy imagery system (NAVIS) 
     and how the NAVIS funcionality could be incorporated into the 
     common imagery ground/surface system (CIGSS) structure.
       The conferees agree that the Department should take full 
     advantage of functions and capabilities already owned by the 
     government. In general, the conferees do not support 
     expenditure of funds to recreate existing capabilities absent 
     compelling arguments. In this light, the conferees believe 
     there is potential for integrating capabilities of the CIP, 
     NAVIS, and CIGSS.
       Therefore, the conferees direct the Assistant Secretary of 
     Defense for Command, Contol, Communications, and 
     Intelligence, in consultation with the Director, National 
     Imagery and Mapping Agency, to submit a plan to the 
     congressional defense and intelligence agencies by March 15, 
     2001, which outlines an appropriate path for migrating 
     tactical imagery programs, including the CIP, NAVIS, and 
     CIGSS, to integrated solutions within the CIGSS architecture.
     Defense Space Reconnaissance Program
       The Defense Space Reconnaissance Program (DSRP) has served 
     an important role in providing direct interactions between 
     the National Reconnaissance Office (NRO) and operational 
     military commanders and other elements of the Department of 
     Defense. In recent years, however, the DSRP has become a less 
     uniquely effective entity as overt NRO support to the 
     military has increased and reduced classification barriers 
     have greatly increased military customer knowledge of space-
     based systems. In fact, the NRO now maintains a Military 
     Support Division, directed by a general officer tasked to 
     interact directly with the military customers of the NRO.
       The conferees understand that the Director of the NRO has 
     recently recommended that the DSRP be reestablished as the 
     budgetary mechanism for defense augmentation of NRO programs 
     to meet tactical military needs. The conferees believe that 
     this proposal merits careful consideration.
       At the same time, the conferees believe that the Secretary 
     of Defense needs to evaluate the overall role of the NRO in 
     supporting tactical military forces. The conferees believe 
     that the following issues must be addressed as part of an 
     overall review of space intelligence support to the 
     warfighter: (1) the appropriate role for the NRO to play in 
     supporting military operations and exercises, such that the 
     NRO does not duplicate unnecessarily the responsibilities and 
     capabilities of organizations, such as the National Imagery 
     and Mapping Agency, the National Security Agency, or U.S. 
     Space Command that are specifically tasked to support their 
     various military customers; (2) whether some or all of the 
     funds and responsibilities currently included in the NRP, the 
     DSRP, and the service Tactical Exploitation of National 
     Capabilities (TENCAP) programs for supporting military 
     operations and exercises should be consolidated; (3) whether 
     a revitalized DSRP would be the best mechanism for giving the 
     Unified Commands a role in determining future space 
     intelligence and reconnaissance capability requirements and 
     raising the visibility of space reconnaissance matters within 
     the Department of Defense program planning and resource 
     allocation process; and (4) the role of a revitalized DSRP in 
     funding NRO system developments to satisfy unique military or 
     service requirements.
       The conferees direct the Secretary of Defense to provide 
     the congressional defense and intelligence committees a 
     report by May 1, 2001, on his assessment and recommendations 
     regarding these matters.
     Future scout and cavalry system
       The conferees have strongly supported the Army's future 
     scout and cavalry system (FSCS) development effort in a joint 
     program with the United Kingdom and are concerned to note 
     actions taken by the Army to eliminate funding for the FSCS 
     engineering and manufacturing development phase. As a result, 
     funding for the Advanced Technology Demonstration (ATD) phase 
     was eliminated in the fiscal year 2001 Department of Defense 
     Appropriations Conference Report. The conferees note the Army 
     has recently developed a plan to include FSCS technologies 
     within its transformation efforts and recognize the FSCS ATD 
     will provide a basis to evaluate the integration of land-
     system technologies through a platform demonstration. The 
     conferees believe the FSCS program is well positioned to 
     develop leap-ahead technologies for future land systems and 
     support Army intentions to request reprogramming authority 
     necessary to carry this program through the ATD phase of the 
     development effort.
     Modernized hellfire/common missile
       The budget request included $5.0 million for the modernized 
     Hellfire program to explore risk reduction opportunities. The 
     conferees understand the Army is considering the possibility 
     of moving toward a common chemical energy missile and that 
     the modernized Hellfire program would serve as the baseline 
     for this effort. The conferees fully support the Army's goal 
     to reduce the different types of anti-tank missile systems in 
     its future tactical inventory. However, this goal was not 
     supported by a request for funds in the fiscal year 2001 
     budget. Therefore, the conferees direct the Army to ensure 
     that fiscal year 2001 funds for the modernized Hellfire are 
     used, in part, to initiate a program definition study to 
     determine the potential of a common ground and air-to-ground 
     missile. Furthermore, the conferees expect the Army to begin 
     funding this effort in the fiscal year 2002 budget 
     submission.
     National Imagery and Mapping Agency pre-acquisition 
         activities
       Congress has repeatedly addressed the critical need to 
     conduct thorough and effective pre-acquisition activities 
     before embarking on a path to make the necessary improvements 
     to the National Imagery and Mapping Agency's (NIMA) tasking, 
     processing, exploitation, and dissemination (TPED) 
     capabilities. The conferees agree that NIMA needs to conduct 
     comprehensive pre-acquisition activities and will require 
     substantial additional funds for this purpose.
       The conferees believe that these pre-acquisition activities 
     should accomplish several goals: (1) to apply new information 
     technology and modern business practices across the imagery 
     and geospatial enterprise, to include such concepts as 
     federated management and migrating legacy systems based on 
     proprietary software to an open systems architecture; (2) to 
     develop a realistic program plan and acquisition strategy 
     related to the role of NIMA, its oversight mechanisms, and 
     its contractors, including the use of an overarching systems 
     integration contract (perhaps along the lines of the National 
     Missile Defense Lead Systems Integrator contract), unless the 
     Department of Defense (DOD) can demonstrate that it would be 
     more efficient and effective for the government to retain the 
     integration role; (3) to develop a realistic plan to manage 
     the transition of the current systems and personnel of the 
     United States Imagery and Geospatial Information System 
     (USIGS) to the new, modern architecture; (4) to ensure that 
     all imagery and geospatial systems within DOD and other 
     intelligence community agencies (including tactical programs, 
     airborne systems, and commercial capabilities) are 
     incorporated into an integrated imagery TPED architecture; 
     and (5) to provide appropriate basis for migrating the TPED 
     architecture from an imagery and geospatial TPED architecture 
     to one capable of processing intelligence of multiple types 
     (a so-called ``MULTI-INT'' architecture).
       The conferees understand that the plan of the NIMA Director 
     is to consider all options for TPED, to include making 
     significant changes to the current architecture. The 
     conferees agree that the review should be thorough, and that 
     NIMA should retain only those previous architectural efforts 
     and program planning that withstand fresh scrutiny. The 
     conferees do not intend for NIMA

[[Page 21639]]

     to delay progress in important ongoing activities (including 
     such programs as NIMA libraries and softcopy exploitation, 
     now in the fielding phase) while the pre-acquisition effort 
     is underway.
       The conferees believe that direct and personal involvement 
     by the Deputy Secretary of Defense and the Director of 
     Central Intelligence (DCI) are necessary to ensure that the 
     large resource investment to correct TPED deficiencies is 
     properly managed and adequately supported by all DOD and 
     Intelligence Community components. Therefore, the conferees 
     request the Deputy Secretary and the DCI to direct all 
     subordinate departments, agencies, and organizations to fully 
     support NIMA TPED pre-acquisition activities. This must 
     include providing overall guidance, developing concepts and 
     system technical interfaces, and organizing and training 
     intelligence providers and customers to maximize the imagery 
     TPED functions. As noted above, the scope of this effort 
     clearly must involve all imagery and geospatial information 
     systems, including open-source systems. It should also 
     include: all collection systems (spacecraft, aircraft, 
     unmanned aerial vehicles, etc.); all tasking, data, storage, 
     processing, exploitation, analysis, dissemination (including 
     communications) and collaboration systems; and all databases 
     and the specific interfaces. In short, this pre-acquisition 
     effort should refine and define the end-to-end information 
     management processes for U.S. imagery and geospatial data 
     systems so that intelligence can be provided to all customers 
     at all levels.
       The conferees expect that the policy and programmatic 
     knowledge gained and the system-level specifications that 
     result from the pre-acquisition activity will be used to 
     focus NIMA's TPED development and acquisition efforts. The 
     conferees expect the Deputy Secretary of Defense and the DCI 
     to develop a realistic TPED transition plan with rigorous 
     cost assessments and to submit that plan to Congress 
     concurrent with future budget requests.
       The conferees recognize that the fiscal year 2001 budget 
     request and the Future Years Defense Program (FYDP) reflected 
     additional resources to satisfy TPED requirements. This 
     reflects the first firm commitment by the Deputy Secretary of 
     Defense that the Department would provide additional 
     resources to support TPED modernization. Although the 
     conferees recognize that better funding estimates will result 
     from the pre-acquisition activities addressed above, the 
     administration must continue near- and long-term efforts to 
     identify funding commitments in the fiscal year 2002 budget 
     request and the FYDP that match the critical requirements in 
     this area.
       In the near-term, the conferees believe that the Department 
     should take a number of steps to ensure the TPED efforts 
     begin efficiently and promptly. These actions should include 
     the following:
       (1) NIMA should establish a focused, capable, and empowered 
     program office that:
       (a) remains separate from ongoing acquisition efforts;
       (b) reports directly to the NIMA corporate acquisition 
     executive for the Director of NIMA; and
       (c) maintains clear and agreed upon relationships with the 
     management oversight staffs, partnering program offices, and 
     customers.
       (2) NIMA should modify the current TPED study contracts as 
     necessary to develop or to assist the Department in 
     developing the following:
       (a) a NIMA enterprise-wide 2005-era vision for the imagery 
     TPED architecture, as modernized by new information 
     management technology and business practices;
       (b) a 2005-era concept of operations for all products, 
     services, and business operations;
       (c) a range of architectural approaches for a 2005-era 
     USIGS that would account for current and near-term systems, 
     and that are designed to facilitate transition from the 
     current architecture;
       (d) an acquisition strategy and program plan that clearly 
     outlines program management, including the role of the NIMA 
     program office and use of a systems integrator, contracts for 
     advisory and assistance services (CAAS), and federally funded 
     research and development centers;
       (e) a source selection strategy;
       (f) draft interface control documents, interagency 
     memoranda, and one or more requests for proposal (as 
     determined by the acquisition strategy) with all reference 
     documents, to include statements of objectives, requirements, 
     and operational concepts;
       (g) a draft transition plan for all segments of the imagery 
     and geospatial architecture, both internal and external to 
     NIMA; and
       (h) cost estimates and budget profiles for complete life 
     cycle costs.
       (3) NIMA's plan to achieve the actions in item (2) above 
     shall be reviewed by the Assistant Secretary of Defense for 
     Command, Control, Communications, and Intelligence, and the 
     Deputy Director of Central Intelligence for Community 
     Management.
       The conferees direct the Secretary of Defense, in 
     coordination with the DCI, to take these actions by February 
     1, 2001, and submit a report by that date to the 
     congressional defense and intelligence committees that 
     describes the implementation of these actions.
     Nuclear Detonation Detection System
       The conferees note that the Nuclear Detonation (NUDET) 
     Detection System (NDS) Electromagnetic Pulse (EMP) V sensors 
     are currently scheduled to fly on the next generation Global 
     Positioning System (GPS) Block IIF satellites. These sensors 
     support the mission areas of Integrated Tactical Warning and 
     Attack Assessment (ITWAAA), Treaty Monitoring, and Nuclear 
     Force Management (NFM). The conferees recognize that these 
     sensors are necessary to providing the Commander in Chief of 
     U.S. Strategic Command with the robust battle damage 
     assessment capability required to adequately advise the 
     National Command Authority during Single Integrated 
     Operations Plan (SIOP) execution. In addition, these sensors 
     are critical for arms control monitoring and verification.
       Therefore, the conferees support efforts to procure the NDS 
     EMP V sensors in time to fly on the first GPS IIF satellites. 
     The conferees direct the Secretary of the Air Force to ensure 
     that there is no loss in sensor coverage.
     Radar technology insertion program
       The conferees understand that the Air Force recently 
     conducted a review of the Joint Surveillance and Target 
     Attack Radar System (JSTARS) acquisition program, and 
     confirmed the requirement for the Radar Technology Insertion 
     Program (RTIP). Conferees note that RTIP capability will 
     offer a major enhancement to the current JSTARS fleet and 
     strongly urge the Air Force to install RTIP into any JSTARS 
     aircraft produced after RTIP goes into production.
     Space launch ranges
       The conferees are concerned that continuing to vest the Air 
     Force with sole fiscal responsibility for the space launch 
     ranges is increasingly problematic. The conferees note that 
     several recent congressional hearings and governmental 
     studies indicate that: (1) the Air Force is transitioning to 
     use of commercial launch services and the commercial launch 
     industry is, and will remain, the predominant user of these 
     ranges; (2) because it does not recover the costs of its 
     management, operation, and modernization of the ranges, the 
     Air Force provides a substantial subsidy to the commercial 
     launch industry, which is less justifiable as the commercial 
     launch industry matures; (3) the Air Force has done an 
     inadequate job of maintaining and modernizing the ranges, and 
     inadequate funding for the ranges is causing equipment to 
     become outdated; and (4) the commercial launch industry does 
     not believe that the Air Force manages the ranges 
     efficiently, often leading to costly launch delays.
       The conferees urge the Secretary of Defense to give 
     consideration to expanding the sources of funding for range 
     modernization, maintenance, and operations and to transition 
     responsibility for range management, modernization, 
     maintenance, and operations from the Air Force to joint 
     responsibility between a combination of the Air Force, other 
     state and federal agencies, and the commercial sector. The 
     conferees believe that such approaches may offer the 
     opportunities to improve both military and commercial launch 
     capabilities.


                     LEGISLATIVE PROVISIONS ADOPTED

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 201-202)
       The House bill contained provisions (secs. 201-202) that 
     would authorize the recommended fiscal year 2001 funding 
     levels for all research, development, test, and evaluation 
     accounts.
       The Senate amendment contained similar provisions.
       The conference agreement includes these provisions.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Management of Space-Based Infrared System-Low (sec. 211)
       The House bill contained a provision (sec. 212) that would 
     transfer during fiscal year 2001 the management authority 
     over the Space-Based Infrared System (SBIRS) Low program from 
     the Air Force to the Ballistic Missile Defense Organization 
     (BMDO).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delay the 
     transfer of the SBIRS-Low program to BMDO until fiscal year 
     2002.
     Joint strike fighter program (sec. 212)
       The House bill contained a provision (sec. 213) that would 
     require the Secretary of Defense to certify to the 
     congressional defense committees that the joint strike 
     fighter (JSF) is technologically mature enough prior to 
     allowing the JSF program to enter the engineering and 
     manufacturing development (EMD) phase.
       The Senate amendment contained a provision (sec. 215) that 
     would require a report from the Secretary of Defense on the 
     technical exit criteria for the JSF to enter EMD and on the 
     impact of any changes the Department of Defense had made to 
     the acquisition strategy. The Senate amendment would also 
     provide a waiver of an amount of funds from the transfer 
     authority ceiling in the event the Department decided to 
     reprogram funds within the JSF program to support EMD 
     activities.

[[Page 21640]]

       The House recedes with an amendment that would require the 
     Secretary of Defense to provide a report on the technical 
     exit criteria for the JSF to enter EMD. The provision would 
     require that, prior to entering EMD, the Secretary of Defense 
     would have to certify to the congressional defense committees 
     that the technical exit criteria have been met, that key 
     technologies are sufficiently mature, and that the short 
     takeoff and vertical landing variant of the design selected 
     for EMD has accumulated at least 20 flight test hours. The 
     provision would also provide a waiver of transfer authority 
     ceiling in the event the Department were to decide that it 
     needed to reprogram funds within the JSF program.
     Fiscal year 2002 joint field experiment (sec. 213)
       The Senate amendment contained a provision (sec. 211) that 
     would require the Secretary of Defense to plan in fiscal year 
     2001, and execute in fiscal year 2002, a major joint field 
     experiment. This experiment would include elements from all 
     military services and special operations forces that 
     represent equipment, organizations, and concepts intended to 
     counter threats to U.S. national security in the year 2010 
     and beyond.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to submit to the congressional defense committees 
     by March 1, 2001, a report on the concept plan for this joint 
     field experiment that includes: (1) the objectives of the 
     experiment; (2) participating forces; (3) experiment schedule 
     and location(s); (4) funding requirements for each 
     participating joint command, defense agency, and service 
     component; and (5) identified shortfalls in funding required 
     for the experiment that are not included in the fiscal year 
     2002 budget request for each of the participating joint 
     commands, defense agencies, and service components.
       The conferees agree to authorize an increase of $2.0 
     million in PE 63727N to facilitate the planning in fiscal 
     year 2001 of this major joint field experiment to be executed 
     in fiscal year 2002.
     Nuclear aircraft carrier design and production modeling (sec. 
         214)
       The budget request included $38.3 million in PE 64567N for 
     aircraft carrier contract design. The budget request did not 
     include funds specifically designated for converting nuclear 
     aircraft carrier designs to a three-dimensional, computer-
     based system.
       The House bill would authorize $5.0 million of the budget 
     request to begin development of an aircraft carrier design 
     product model for the CVNX.
       The Senate amendment contained a provision (sec. 212) that 
     would authorize an increase of $10.0 million in PE 64567N to 
     develop an electronic product model of the CVNX-1 and 
     applicable sections of CVN-77 nuclear aircraft carrier 
     design. The Senate amendment would also direct the Navy to 
     provide an analysis of the potential costs and benefits of 
     extending this product model effort for use in supporting the 
     Nimitz-class ships in the fleet.
       The House recedes with an amendment that would authorize an 
     increase of $8.0 million in PE 64567N to develop an 
     electronic product model of the CVNX-1 and applicable 
     sections of CVN-77. The amendment would also require the 
     Secretary of the Navy to provide a report on the cost 
     effectiveness of converting design data to an electronic form 
     and developing a three-dimensional design product model for 
     the CVNX class aircraft carrier.
     DD-21 class destroyer program (sec. 215)
       The Senate amendment contained a provision (sec. 213) that 
     would authorize the Secretary of the Navy to pursue a 
     technology insertion approach to DD-21 that would commence 
     construction of the first DD-21 in fiscal year 2004 followed 
     by a fiscal year 2009 delivery. The provision would also 
     express the sense of Congress that there are compelling 
     reasons to commence DD-21 construction in fiscal year 2004 
     followed by sequential construction of DD-21 destroyers until 
     a total of 32 are built. The provision would further direct 
     the Secretary of Defense and the Secretary of the Navy to 
     submit certain reports on DD-21.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Limitation on Russian American Observation Satellites program 
         (sec. 216)
       The Senate amendment contained a provision (sec. 219) that 
     would prohibit the expenditure or obligation of funds for the 
     Russian American Observation Satellites (RAMOS) program until 
     30 days after the Secretary of Defense submits to Congress a 
     report concerning the protection of advanced military 
     technology that may be associated with the RAMOS program.
       The House bill contained no similar provision.
       The House recedes.
     Joint Biological Defense Program (sec. 217)
       The Senate amendment contained a provision (sec. 220) that 
     would prohibit the obligation of funds to procure the vaccine 
     for the biological agent anthrax until the Secretary of 
     Defense makes a notification and delivers a report to the 
     congressional defense committees.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish 
     permissible actions related to the obligation of funds to 
     procure the anthrax vaccine and would require the Secretary 
     to report within seven days to the Congress all obligations 
     in connection with the qualified procurement of anthrax 
     vaccine with a value greater than $5.0 million.
       The conferees note that the anthrax virus is only one of 
     several biological agents Department of Defense officials 
     have testified could pose a threat to military personnel. The 
     conferees are concerned that the myriad issues associated 
     with the production and acquisition of the anthrax vaccine 
     may also apply to other biological warfare defense vaccine 
     research, development, and procurement programs. It is 
     incumbent on the Secretary to develop a plan, including 
     milestones, for modernizing all vaccines used or anticipated 
     to be used to immunize military personnel against biological 
     agents. In the development of that plan, the Secretary should 
     take such action, including procuring vaccines from more than 
     one manufacturer, if necessary or appropriate, to ensure 
     military personnel immunization policies and plans can be 
     effectively implemented.
       Section 1703 of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160) required the Secretary 
     of Defense to report annually on the status and plans of 
     chemical and biological defense research, development and 
     procurement programs. In the report to be submitted in 
     calendar year 2001 and the subsequent three reports, the 
     costs incurred by, and payments made to, each contractor or 
     other entity engaged in the production, storage, 
     distribution, or marketing of the anthrax vaccine 
     administered by the Department of Defense should be provided. 
     In the report to be submitted in calendar year 2001, the 
     following information should be included: (1) an estimate and 
     update of the life cycle costs of the anthrax vaccination 
     program; (2) a description of the anthrax vaccine acquisition 
     strategy; (3) an assessment of government requirements 
     (defense and non-defense) for the anthrax vaccine; (4) an 
     assessment of the financial and manufacturing ability of the 
     manufacturer of the anthrax vaccine to meet government 
     requirements; and (5) a description of any activity related 
     to any anthrax vaccine license with significant implications 
     for the Department of Defense.
     Report on biological warfare defense vaccine research and 
         development programs (sec. 218)
       The Senate amendment contained a provision (sec. 221) that 
     would direct the Secretary of Defense to report on the 
     Department of Defense (DOD) program to develop and procure 
     vaccines for biological warfare agents no later than February 
     1, 2001. The provision would require the Secretary to develop 
     a design for a government-owned, contractor-operated (GOCO) 
     vaccine production facility and provide a determination on 
     the utility of such a facility to support civilian vaccine 
     production, and an analysis of possible vaccine production 
     for international use.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     requirements of the report to include an estimated 
     establishment cost and schedule for the GOCO facility, and an 
     evaluation of the non-military use of such a facility on the 
     production of vaccines for U.S. Armed Forces.
     Cost limitations applicable to F-22 aircraft program (sec. 
         219)
       The Senate amendment contained a provision (sec. 214) that 
     would provide one percent relief on the engineering and 
     manufacturing (EMD) development cost cap for the F-22 
     aircraft if the funds are required for testing, as certified 
     by the Director of Operational Test and Evaluation (DOT&E) 
     and the Undersecretary of Defense for Acquisition, 
     Technology, and Logistics (USD AT&L).
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide one 
     and one half percent relief on the EMD cost cap for the F-22 
     aircraft program, if the use of these funds is required for 
     testing, as certified by DOT&E after consultation with USD 
     AT&L. The amendment would also reestablish the EMD and 
     production cost caps, as established by section 217 of the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85).
     Unmanned advanced capability combat aircraft and ground 
         combat vehicles (sec. 220)
       The Senate amendment contained a provision (sec. 217) that 
     would establish an initiative to promote the use of unmanned 
     combat systems and technologies with the goal that, within 10 
     years, one-third of U.S. military operational deep strike 
     aircraft will be unmanned and, within 15 years, one-third of 
     all ground combat vehicles will be unmanned. The Senate 
     amendment would authorize $200.0 million in research, 
     development, test and evaluation in PE 62702E to accelerate 
     the technologies that will lead to the development and 
     fielding of remotely controlled air combat vehicles by 2010 
     and remotely controlled ground combat vehicles by 2015.

[[Page 21641]]

       The House bill contained no similar provision.
       The House recedes with an amendment.
       The conferees support the need to strengthen Army, Navy, 
     and Air Force efforts to exploit the significant potential of 
     unmanned combat aircraft and ground vehicles to effectively 
     accomplish many critical combat missions while avoiding risk 
     to aircraft and ground vehicle crews. The amendment reaffirms 
     the goal established in section 217 of the Senate amendment 
     of developing and fielding advanced capability unmanned 
     combat aircraft and ground vehicles such that one-third of 
     the operational deep strike aircraft in the year 2010 and 
     one-third of the ground combat vehicles acquired through the 
     Army's future combat system development program by the year 
     2015 could be unmanned.
       The conferees direct the Secretary of Defense to submit a 
     report to the congressional defense committees that describes 
     the development and demonstration efforts of the services 
     together with the Defense Advanced Research Projects Agency 
     (DARPA) that will be required to support the established 
     goals. The report shall be submitted in conjunction with the 
     fiscal year 2002 budget request and will include the 
     acquisition strategy required to achieve the established 
     goals, including necessary funding, analysis of alternatives, 
     and potential contributions to, or impacts to current and 
     planned deep strike combat aircraft and ground combat 
     vehicles.
       The conferees recommend that efforts to develop and to 
     demonstrate unmanned combat aircraft and ground combat 
     vehicles should be focused initially on the highest risk 
     mission areas. For aircraft, this mission area is defined as 
     those early entry deep strike missions for suppression of 
     enemy air defenses and other highest priority targets. The 
     amendment also addresses commonality between the Air Force 
     and Navy programs. The conferees expect that significant air 
     vehicle systems commonality and interoperability between the 
     Navy and Air Force variants is achievable, specifically in 
     the areas of electronics, avionics, datalinks, and operating 
     stations. The conferees also recognize the importance of low 
     observable (LO) designs in future systems. To that end, Air 
     Force should proceed with development of air vehicle three 
     and validate the LO design of the unmanned combat air vehicle 
     (UCAV) system. Accordingly, the Navy should fully explore the 
     advantages of LO technology in their design of the unmanned 
     combat air vehicle (UCAV-N) system.
       In its analysis of alternatives, the Navy should examine a 
     force of 10 to 20 UCAVs per carrier airwing. For ground 
     combat vehicles, the capabilities currently anticipated for 
     the Army's new objective force currently under development in 
     collaboration with DARPA offer the most appropriate focus for 
     application of unmanned vehicle capability.
       To accelerate efforts toward achieving these aggressive 
     goals, the conferees authorize an increase of $100.0 million 
     in PE 62702E, as follows: $50.0 million for the Air Force's 
     UCAV program; $25.0 million for the Navy's UCAV-N program; 
     and, $25.0 million for the Army-DARPA joint program on the 
     Future Combat System (FCS). The conferees expect DARPA and 
     the services to work the additional funding, 
     responsibilities, and timelines into the existing memorandum 
     of agreements for these three programs.
       The conferees recognize that an increase of $46.0 million 
     is authorized in PE 63005A for enabling technologies for the 
     FCS, as noted elsewhere in this report. The request for the 
     additional funds came from the Department of the Army's 
     unfunded priority list. The conferees note that the Army 
     transformation program hinges on the success of FCS as it is 
     the centerpiece of the service's new ground warfare strategy. 
     The conferees urge the Department to fully fund this critical 
     program in the future.
     Global Hawk high altitude endurance unmanned aerial vehicle 
         (sec. 221)
       The Senate amendment contained a provision (sec. 216) that 
     would require a demonstration of the Global Hawk high 
     altitude endurance unmanned aerial vehicle (HAE UAV) in a 
     counter-drug surveillance scenario.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to initiate this demonstration no later 
     than March 1, 2001. The provision would also direct the 
     Secretary to conduct the demonstration and the parallel radar 
     development effort using funds authorized to be appropriated 
     for Drug Interdiction and Counter-drug Activities, Defense.
     Army space control technology development (sec. 222)
       The Senate amendment contained a provision (sec. 218) that 
     would authorize $20.0 million for the Kinetic Energy Anti-
     Satellite (KE-ASAT) program, $5.0 million for other Army 
     space control technology development, and prohibit the 
     obligation of funds for other Army space control technology 
     until funds for the KE-ASAT program have been released to the 
     KE-ASAT program manager.
       The House bill contained no similar provision.
       The House recedes with an amendment that would specify 
     that, of the funds authorized to be appropriated for Army 
     space control technology development, $3.0 million shall be 
     available for the KE-ASAT program.

                  Subtitle C-Ballistic Missile Defense

     Funding for fiscal year 2001 (sec. 231)
       The House bill contained a provision (sec. 231) that would 
     authorize funds for the National Missile Defense Program, 
     including funds for the Space-Based Infrared System (SBIRS)-
     Low program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     funds for the National Missile Defense program, but not the 
     SBIRS-Low program. Matters related to SBIRS-Low are addressed 
     elsewhere in this report.
     Reports on ballistic missile threat posed by North Korea 
         (sec. 232)
       The House bill contained a provision (sec. 233) that would 
     require that, not later than two weeks after the next flight 
     test by North Korea of a long-range ballistic missile, or 60 
     days after enactment of this Act, the President shall submit 
     to Congress a report on the North Korean ballistic missile 
     threat to the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that, not later than two weeks after the next flight test by 
     North Korea of a long-range ballistic missile, the President 
     shall submit to Congress a report on the North Korean 
     ballistic missile threat to the United States.
     Plan to modify ballistic missile defense architecture (sec. 
         233)
       The House bill contained a provision (sec. 234) that would 
     require the Director of the Ballistic Missile Defense 
     Organization to develop a plan to adapt ballistic missile 
     defense systems and architectures to counter threats to the 
     United States, U.S. Armed Forces deployed outside the United 
     States, and other U.S. national security interests that are 
     posed by ballistic missiles with ranges of 1,500 to 2,500 
     miles.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Management of Airborne Laser program (sec. 234)
       The House bill contained a provision (sec. 235) that would 
     designate the Airborne Laser (ABL) program as a program 
     element of the ballistic missile defense program managed by 
     the Ballistic Missile Defense Organization (BMDO).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Air Force to obtain the approval of the 
     Director of BMDO before making any change to the ABL funding 
     profile, schedule, or technical requirements, and for the 
     Director of BMDO, in coordination with the Secretary of the 
     Air Force, to submit a report to the congressional defense 
     committees on the role of the ABL in current U.S. missile 
     defense architecture.
       As addressed elsewhere in this conference agreement, the 
     conferees recommend a funding increase of $85.0 million for 
     the ABL program, the amount needed in fiscal year 2001 to 
     keep the Program Definition and Risk Reduction aircraft on 
     schedule to conduct the first lethal demonstration during 
     fiscal year 2003. The conferees direct the Secretary of the 
     Air Force to spend these additional fiscal year 2001 funds 
     consistent with the fiscal year 2000 program plan. Absent the 
     development of technical problems, the conferees believe that 
     the ABL program should remain on schedule for a lethal 
     demonstration in fiscal year 2003 and initial operational 
     capability in fiscal year 2008.

                 Subtitle D--High Energy Laser Programs

     High energy laser programs (secs. 241-250)
       The House bill contained a provision (sec. 211) that would 
     authorize funding for high energy laser (HEL) research and 
     development, and would require the Secretary of Defense to 
     designate a senior civilian official in the Office of the 
     Secretary of Defense (OSD) to oversee, coordinate, 
     prioritize, and conduct planning and programming for the HEL 
     programs. The provision would also express a sense of 
     Congress concerning the appropriate funding levels for HEL 
     research and development, require the establishment of a 
     memorandum of agreement between the Secretary of Defense and 
     the Administrator of the National Nuclear Security 
     Administration to conduct joint laser research programs, and 
     establish certain reporting requirements.
       The Senate amendment contained a similar provision (sec. 
     917) that would authorize funding for HEL programs, require 
     the Secretary of Defense to implement the organizational 
     recommendations included in the High Energy Laser Master Plan 
     of March 24, 2000, and require other actions related to the 
     management of HEL.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to implement the recommendations 
     included in the High Energy Laser Master Plan recommendations 
     and would address other matters related to HEL program 
     funding and

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     management. The amendment would also require the Secretary of 
     Defense, in consultation with the Deputy Undersecretary of 
     Defense for Science and Technology, to evaluate whether to 
     include other directed energy science and technology programs 
     in the new high energy laser management structure.

                       Subtitle E--Other Matters

     Reports on mobile offshore base concept and potential use for 
         certain purposes of technologies associated with that 
         concept (sec. 251)
       The Senate amendment contained a provision (sec. 241) that 
     would require the Secretary of Defense to submit a report on 
     the mobile offshore base that would contain a cost-benefit 
     analysis for the base and a recommendation on whether a 
     program should be established, with lead service designation 
     and schedule.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require an 
     additional report from the Secretary of the Navy on the 
     potential application and feasibility of using existing 
     technologies, including those associated with the mobile 
     offshore base concept, to a sea-based platform for support of 
     naval aviation training. This report should be viewed as a 
     matter totally disassociated with the potential requirement 
     for a mobile offshore base, with the exception of potential 
     sharing of technologies.
     Air Force science and technology planning (sec. 252)
       The Senate amendment contained a provision (sec. 242) that 
     would require the Secretary of the Air Force to submit a 
     report to the congressional defense committees on the long-
     term challenges and short-term objectives of the Air Force 
     science and technology (S&T) program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would strike the 
     reporting requirement for the Air Force, clarify the planning 
     requirement, and require the Comptroller General to report on 
     the results of the review and an assessment regarding the 
     extent to which the review was conducted in compliance with 
     the requirements of this section.
     Enhancement of authorities regarding education partnerships 
         for purposes of encouraging scientific study (sec. 253)
       The Senate amendment contained a provision (sec. 243) that 
     would amend section 2194 of title 10, United States Code, to 
     enhance authorities relating to education partnerships to 
     encourage scientific study.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     types of property eligible for transfer under the authorities 
     of this provision.
     Recognition of those individuals instrumental to naval 
         research efforts during the period from before World War 
         II through the end of the Cold War (sec. 254)
       The House bill contained a provision (section 241) that 
     would recognize those individuals instrumental in the 
     establishment and conduct of oceanographic and scientific 
     research partnerships between the Federal Government and 
     academic institutions during the period beginning before 
     World War II and continuing through the end of the Cold War, 
     support efforts by the Secretary of the Navy and the Chief of 
     Naval Research to honor those individuals, and express 
     appreciation for the ongoing efforts of the Office of Naval 
     Research to support oceanographic and scientific research and 
     the development of researchers in scientific fields related 
     to the missions of the Navy and the Marine Corps.
       The Senate amendment contained no similar provision.
       The Senate recedes.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Acoustic mine detection technology
       The Senate amendment contained a provision (sec. 223) that 
     would authorize an increase of $2.5 million in PE 62712A for 
     research in acoustic mine detection.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $2.5 
     million in PE 62712A for research in acoustic mine detection, 
     as noted elsewhere in this conference report.
     Additional authorization for weathering and corrosion 
         technology for aircraft surfaces and parts
       The Senate amendment contained a provision (sec. 203) that 
     would authorize an increase of $1.5 million in PE 62102F for 
     weathering and corrosion technology for aircraft surfaces and 
     parts.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $1.0 
     million in PE 62102F for research, development, test, and 
     evaluation technologies and processes to address weathering 
     and corrosion of aircraft surfaces and parts, as noted 
     elsewhere in this report.
       The conferees direct that all applicable competitive 
     procedures be used in the award of contracts or other 
     agreements under this program and that cost sharing be used 
     to the maximum extent practicable.
     Air logistics technology
       The Senate amendment contained a provision (sec. 225) that 
     would authorize an increase of $300,000 in PE 63712S for air 
     logistics technology.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $300,000 in 
     PE 63712S for air logistics technology, as noted elsewhere in 
     this conference report.
     Ammunition risk analysis research
       The Senate amendment contained a provision (sec. 229) that 
     would authorize an increase of $5.0 million in PE 63104D for 
     research in ammunition risk analysis.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $5.0 
     million in PE 63104D for research in ammunition risk 
     analysis, as noted elsewhere in this conference report.
     Funding for comparisons of medium armored vehicles
       The Senate amendment contained a provision (sec. 230) that 
     would authorize an increase of $40.0 million to support a 
     comparative evaluation by the Army of medium armored combat 
     vehicles.
       The House bill contained no similar provision.
       The Senate recedes.
     Joint technology information center initiative
       The Senate amendment contained a provision (sec. 228) that 
     would authorize $20.0 million for the Joint Technology 
     Information Center Initiative.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $20.0 million in Research, 
     Development, Test and Evaluation, Defensewide, for the Joint 
     Technology Information Center initiative.
     Navy information technology center and human resource 
         enterprise strategy
       The budget request included $15.3 million in PE 65013N for 
     information technology development.
       The House bill would authorize the budget request.
       The Senate amendment contained a provision (sec. 227) that 
     would authorize an increase of $5.0 million in PE 65013N for 
     the Navy's single integrated human resources strategy 
     (SIHRS).
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $8.0 
     million in PE 65013N for the business process re-engineering 
     of Navy legacy systems through the SIHRS.
     Sense of Congress concerning commitment to deployment of 
         National Missile Defense System
       The House bill contained a provision (sec. 232) that would:
       (1) reaffirm the policy of the United States declared in 
     the National Missile Defense (NMD) Act of 1999 (Public Law 
     106-38); (2) find that an effective NMD system is 
     technologically feasible; (3) find that hostile ``rogue'' 
     nations are capable of posing missile threats to the United 
     States sufficient to justify deployment of an NMD system; and 
     (4) express the sense of Congress that the action of the 
     President in signing the NMD Act of 1999 entails a commitment 
     by the President to execute the policy declared in that Act.
       The Senate amendment contained no similar provision.
       The House recedes.
     Technology for mounted maneuver forces
       The Senate amendment contained a provision (sec. 224) that 
     would authorize an increase of $5.0 million in PE 65326A to 
     test and evaluate future operational technologies for use by 
     mounted maneuver forces.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $3.5 
     million in PE 65326A to test and evaluate future operational 
     technologies for use by mounted maneuver forces, as noted 
     elsewhere in this conference report.

                  Title III--Operation and Maintenance

     Overview
       The budget request for fiscal year 2001 contained an 
     authorization of $108,746.1 million for Operation and 
     Maintenance in the Department of Defense and $1,154.4 for 
     Working Capital Fund Accounts in fiscal year 2001.
       The House bill would authorize $109,415.5 million for 
     Operation and Maintenance and $1,503.4 for Working Capital 
     Fund Accounts.
       The Senate amendment would authorize $108,904.7 million for 
     Operation and Maintenance and $1,154.4 for Working Capital 
     Fund Accounts.
       The conferees recommended an authorization of $109,750.2 
     million for Operation and Maintenance and $1,154.4 for 
     Working Capital Fund Accounts for fiscal year 2001. The 
     conference agreement reflects reductions reflected in the 
     fiscal year 2001 Department of Defense Appropriations Act 
     (Public Law 106-

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     259). Unless noted explicitly in the statement of managers, 
     all changes are made without prejudice.

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     Battlefield Mobility Enhancement System
       The budget request included no funding for the battlefield 
     mobility enhancement system know as Military Gator (M-Gator).
       The House bill would authorize $9.3 million for M-Gator.
       The Senate amendment would authorize $10.0 million for M-
     Gator.
       The conferees agree to authorize $3.0 million for M-Gator. 
     The conferees commend the Department of the Army and, 
     specifically, the XVIII Airborne Corps for their efforts in 
     acquiring the M-Gator battlefield mobility enhancement 
     system. The conferees note that these efforts substantially 
     shortened the acquisition process for this system by using a 
     commercial off-the-shelf vehicle and thereby resisted the 
     oft-repeated mistake of excessive modifications and 
     militarizations, saving both time and money. The conferees 
     understand that it took the Army only three years from the 
     execution of the operational needs statement to the initial 
     fielding of the M-Gator. The conferees are also pleased to 
     note that M-Gators are currently available for world-wide 
     deployment by the 82nd and 101st Airborne Divisions and, 
     within available funding, will soon be available in the 10th 
     Mountain Division in New York and the 25th Infantry Division 
     in Hawaii.
     Cultural and historic activities
       The budget request included $300,000 for the Legacy 
     Resource Management Program.
       The House bill would authorize an increase of $6.5 million 
     in the Legacy program.
       The Senate amendment would authorize an increase of $6.1 
     million in the Legacy program for the recovery and 
     preservation of three Civil War vessels: the H.L. Hunley, a 
     Civil War submarine; the U.S.S. Monitor, a Civil War ironclad 
     warship; and the C.S.S. Alabama, a Civil War commerce raider.
       The conferees agree to authorize an increase of $6.5 
     million in the Legacy program. The conferees direct the 
     Secretary of Defense and the Secretary of the Navy to use the 
     additional Legacy funds to accomplish the following: (1) To 
     raise the H.L. Hunley, recover other remaining artifacts, and 
     conduct related preservation activities; (2) to make 
     preparations for the turret recovery of the U.S.S. Monitor 
     and recover other remaining artifacts, including two cannons; 
     and (3) to survey and recover the artifacts of the C.S.S. 
     Alabama, including the aft pivot gun and the lifting screw. 
     The conferees further direct that, not later than April 1, 
     2001, the Secretary of Defense shall submit to the 
     congressional defense committees a report that completely 
     describes all prior and current use of Legacy funds and 
     relevant state funds, and the status of recovery and 
     preservation activities related to the H.L. Hunley, the 
     U.S.S. Monitor, and the C.S.S. Alabama.
     MOCAS enhancements
       The budget request included $1.1 billion for the Defense 
     Logistics Agency.
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $1.2 
     million for improvements to the Mechanization of Contract 
     Administration Service (MOCAS) System. The increase in 
     funding is necessary for the development of a query tool, 
     enhanced shared data warehouse, and other improvements to 
     bring the MOCAS system in compliance with other provisions in 
     the Act.
       The House bill contained no similar provision and would 
     authorize the budget request.
       The conferees agree to authorize an increase of $1.0 
     million for these purposes for the Defense Finance and 
     Accounting Service.


                       ITEMS OF SPECIAL INTEREST

     Funding for Formerly Used Defense Sites and the Conway 
         Bombing and Gunnery Range, Horry County, South Carolina
       The Department of Defense (DOD) is responsible for cleaning 
     up properties that it formerly owned, leased, possessed, or 
     operated, known as Formerly Used Defense Sites (FUDS). The 
     Army is the executive agent for the FUDS program, and the 
     U.S. Army Corps of Engineers (Corps) manages and executes 
     actual remediation activities. Because DOD no longer owns or 
     uses the FUDS properties, a Corps district commander is given 
     direct oversight responsibility for execution of 
     environmental restoration projects.
       There are about 9,302 properties identified for inclusion 
     in the FUDS program, hundreds of which could be categorized 
     as former ranges. Unfortunately, there are significant 
     funding shortfalls within the FUDS program, which makes it 
     difficult to execute much needed remediation projects at 
     these sites. In an effort to address this problem, the 
     Department of Defense Appropriations Act, 2001 (Public Law 
     106-259) included an increase of $45.0 million for FUDS 
     remediation. Although these additional funds should 
     facilitate further remediation activities on FUDS properties, 
     there remains a funding shortfall that must be 
     comprehensively addressed through the Department of Defense 
     budget process. The conferees direct the Secretary of Defense 
     to work cooperatively with the Secretary of the Army to 
     resolve effectively the funding shortfall in the FUDS 
     program.
       The conferees are particularly concerned about the lack of 
     focus and support for remediation of former military ranges. 
     Specifically, the conferees have been informed of potential 
     safety and environmental issues at the former Conway Bombing 
     and Gunnery Range (Range III), Horry County, South Carolina. 
     The conferees encourage the Secretary of the Army to move 
     forward with remediation at such ranges in accordance with 
     existing Department of Army policy.
     United States Army marksmanship program
       The conferees believe that international marksmanship 
     competitions are an excellent opportunity to showcase the 
     skills of U.S. military personnel in a sport that many 
     countries see as a paradigm of military preparedness.
       The conferees note that since 1956, the United States Army 
     Marksmanship Unit, including active and reserve participants, 
     have made a significant contribution to the success of U.S. 
     marksmanship teams. Since the 1988 Olympic Games, reserve 
     component participation on the Department of Defense (DOD) 
     contingent on U.S. shooting teams has averaged nearly one 
     half of all DOD team members. The conferees urge the 
     Secretary of Defense to review the current Army Marksmanship 
     program in order to maintain adequate opportunities for 
     reserve component personnel to participate in future 
     international marksmanship events.
     Water quality issues at installations in Kaiserslautern, 
         Germany
       The conferees are concerned about contamination at 
     approximately 36 locations recently identified on, or near, 
     military installations supporting the missions of the U.S. 
     Army and the U.S. Air Force in the area of Kaiserslautern, 
     Germany. The conferees recognize the effort of the 
     Secretaries of the Army and the Air Force to work 
     cooperatively with local German authorities to resolve 
     matters relating to environmental contamination of the water 
     supply that supports the military installations and civilians 
     in the area of Kaiserslautern, Germany. The conferees direct 
     the Secretaries of the Army and Air Force to assess jointly 
     the nature and extent of the water contamination issue, and 
     develop a plan for the completion of remediation and 
     restoration, to include related costs. The conferees direct 
     the secretaries concerned to submit their findings and 
     recommendations concurrent with the submission of the budget 
     request for fiscal year 2002.


                     LEGISLATIVE PROVISIONS ADOPTED

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 301-302)
       The House bill contained provisions (secs. 301-302) that 
     would authorize the recommended fiscal year 2001 funding 
     levels for all operations and maintenance and working capital 
     fund accounts.
       The Senate amendment contained similar provisions.
       The conference agreement includes these provisions.
     Armed Forces Retirement Home (sec. 303)
       The House bill contained a provision (sec. 303) that would 
     authorize $69,832,000 from the Armed Forces Retirement Home 
     Trust Fund to be appropriated for the operation of the Armed 
     Forces Retirement Homes.
       The Senate amendment contained an identical provision (sec. 
     303).
       The conference agreement includes this provision.
     Transfer from National Defense Stockpile Transaction Fund 
         (sec. 304)
       The House bill contained a provision (sec. 304) that would 
     authorize the Secretary of Defense to transfer not more than 
     $150.0 million from the amounts received from sales in the 
     National Defense Stockpile Transaction Fund to the operations 
     and maintenance accounts of the military services.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Joint warfighting capabilities assessment teams (sec. 305)
       The Senate amendment contained a provision (sec. 312) that 
     would authorize $4.0 million in operation and maintenance for 
     defense-wide activities for the Joint Staff be made available 
     for the sole purpose of improving the performance of the 
     joint warfighting capabilities assessment teams of the Joint 
     Requirements Oversight Council.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                  Subtitle B--Environmental Provisions

     Establishment of additional environmental restoration account 
         and use of accounts for operation and monitoring of 
         environmental remedies (sec. 311)
       The Senate amendment contained a provision (sec. 341) that 
     would amend section 2703 of title 10, United States Code, to 
     designate an account for formerly used defense sites within 
     the Environmental Restoration Account (ERA), and to ensure 
     that all site closeout activities would be funded by an 
     appropriate ERA.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Certain environmental restoration activities (sec. 312)
       The House bill contained a provision (sec. 313) that would 
     authorize the Secretary of

[[Page 21673]]

     Defense or the secretaries of the military departments to use 
     funds available in the environmental restoration accounts 
     (ERA), pursuant to section 2703 of title 10, United States 
     Code, to permanently relocate facilities. The authorization 
     would be subject to secretarial determination that permanent 
     relocation was the most cost effective environmental 
     restoration option and would sunset in three years. The 
     provision would also limit the total funds available to five 
     percent of the funds deposited in an ERA for a fiscal year.
       The Senate amendment contained a similar provision (sec. 
     346), but made the authorization contingent upon a 
     secretary's written determination that such permanent 
     relocation is part of a response action that: (1) has the 
     support of the affected community; (2) has the approval of 
     relevant regulatory agencies; and (3) is the most cost 
     effective response action available. The authority would 
     terminate after September 30, 2003, and be subject to a five 
     percent funding cap within each fiscal year for the funds 
     available under section 2703. The secretary concerned would 
     also be required to provide an annual report to the 
     congressional defense committees on each response action for 
     which there has been a written determination made under this 
     provision.
       The Senate recedes with a technical amendment.
       The conferees expect the Department of Defense to use this 
     authority judiciously, and to ensure that funds are used only 
     for legitimate environmental restoration priorities. 
     Moreover, the conferees intend that this provision will allow 
     for a flexible approach to environmental restoration at 
     certain formerly used defense sites where progress has been 
     slow.
     Annual reports under Strategic Environmental Research and 
         Development Program (sec. 313)
       The Senate amendment contained a provision (sec. 343) that 
     would modify the current reporting requirement for the 
     Science Advisory Board to allow for its inclusion in the 
     annual report for the Strategic Environmental Research and 
     Development Program.
       The House bill contained no similar provision.
       The House recedes.
     Payment of fines and penalties for environmental compliance 
         at Fort Wainwright, Alaska (sec. 314)
       The Senate amendment contained a provision (sec. 342) that 
     would require the Secretary of Defense or the secretaries of 
     the military departments to seek congressional authorization 
     prior to paying any fine or penalty imposed by a Federal 
     agency for an environmental compliance violation if the fine 
     or penalty amount agreed to is $1.5 million or more. 
     Supplemental environmental projects carried out as part of 
     fine or penalty for amounts $1.5 million or more and agreed 
     to after the enactment of this Act would also require 
     specific authorization by law.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense or the Secretary of the Army to pay 
     no more than $2.0 million in settlement for a $16.07 million 
     notice of violation issued on March 5, 1999, by the 
     Administrator of the Environmental Protection Agency at Fort 
     Wainwright, Alaska.
       The conferees note that a number of questions have been 
     raised about the manner in which environmental compliance 
     fines and penalties are assessed by state and federal 
     enforcement authorities. Therefore, the conferees direct the 
     Secretary of Defense to submit a report to the congressional 
     defense committees no later than March 1, 2002, that includes 
     an analysis of all environmental compliance fines and 
     penalties assessed and imposed at military facilities during 
     fiscal years 1995 through 2001. The analysis shall address 
     the criteria or methodology used by enforcement authorities 
     in initially assessing the amount of each fine and penalty. 
     Any current or historical trends regarding the use of such 
     criteria or methodology shall be identified.
     Payment of fines or penalties imposed for environmental 
         compliance violations at other Department of Defense 
         facilities (sec. 315)
       The House bill contained a provision (sec. 311) that would 
     authorize the payment of certain fines and penalties, or to 
     carry out supplemental environmental projects in accordance 
     with section 8149 of the Department of Defense Appropriations 
     Act for Fiscal Year 2000. The Secretary of the Army would be 
     specifically authorized to pay following supplemental 
     environmental projects carried out in satisfaction of an 
     assessed fine or penalty: (1) $993,000 for Walter Reed Army 
     Medical Center, Washington, D.C.; (2) $377,250 for Fort 
     Campbell, Kentucky; (3) $20,701 for Fort Gordon, Georgia; (4) 
     $78,500 for Pueblo Chemical Depot, Colorado; (5) $20,000 for 
     Deseret Chemical Depot, Utah. The Secretary of the Navy would 
     be specifically authorized to pay the following fines and 
     penalties: (1) $108,000 for Allegany Ballistics Laboratory, 
     West Virginia; and (2) $5,000 for Naval Air Station, Corpus 
     Christi, Texas.
       The Senate amendment contained a similar provision (sec. 
     344) that would authorize an additional fine of $7,975 for 
     Fort Sam Houston, Texas.
       The House recedes with an amendment that would authorize an 
     additional fine of $1,650 imposed at Quantico, Virginia.
       The conferees are pleased with the Army's most recent 
     efforts to reduce the level of fines and penalties received.
     Reimbursement for certain costs in connection with the former 
         Nansemond Ordnance Depot Site, Suffolk, Virginia (sec. 
         316)
       The Senate amendment contained a provision (sec. 345) that 
     would authorize the Secretary of Defense to pay not more than 
     $98,210 from the Environmental Restoration, Formerly Used 
     Defense Sites Account to reimburse the Nansemond Ordnance 
     Depot Site Special Account of the Hazardous Substance 
     Superfund, established by the Internal Revenue Code of 1986 
     (26 U.S.C. 9507). The reimbursement would be for oversight 
     costs incurred by the U.S. Environmental Protection Agency 
     (EPA) on a time critical removal action at the Former 
     Nansemond Ordnance Depot performed by the Department of 
     Defense (DOD) under the Comprehensive Environmental Response, 
     Compensation and Liability Act (CERCLA) (42 U.S.C. 9601 et 
     seq.) and the Defense Environmental Restoration Program (10 
     U.S.C. 2701 et seq.).
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct the Department of Defense and the 
     military departments to continue to seek congressional 
     authorization prior to reimbursing EPA for any oversight 
     costs incurred at environmental restoration sites where the 
     DOD or the military departments have incurred liability under 
     CERCLA.
     Necessity of military low-level flight training to protect 
         national security and enhance military readiness (sec. 
         317)
       The House bill contained a provision (sec. 312) that would 
     mandate that any environmental impact statement completed, as 
     of the date of the enactment of this Act, for each special 
     use airspace designated by a military department for the 
     performance of low-level training flights satisfy all future 
     requirements of the National Environmental Policy Act of 1969 
     (NEPA) (42 U.S.C. 4321 et seq.).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide, 
     consistent with existing law, that NEPA does not require a 
     programmatic, nation-wide environmental impact statement for 
     low level flight training as a precondition to the use of any 
     airspace by a military department for the performance of low-
     level training flights.
     Ship disposal project (sec. 318)
       The Senate amendment contained a provision (sec. 347) that 
     would direct the Secretary of the Navy to continue to carry 
     out a ship disposal project in fiscal year 2001 and to use 
     competitive contracting procedures to award task orders 
     within the ship disposal project. The provision would also 
     direct the Secretary to submit, not later than December 31, 
     2000, a report to the congressional defense committees on the 
     ship disposal project.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Defense Environmental Security Corporate Information 
         Management Program (sec. 319)
       The Senate amendment contained a provision (sec. 348) that 
     would direct the Secretary of Defense to submit, not later 
     than 60 days after the date of the enactment of this Act, a 
     report to the congressional defense committees on the Defense 
     Environmental Security Corporate Information Management 
     (DESCIM) Program. The report would contain specific 
     recommendations regarding the future mission of the DESCIM 
     Program and address issues of concern within the Department 
     of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Chief Information Officer of the Department of Defense (DOD) 
     to ensure management and oversight of the DESCIM program 
     consistent with: the Clinger-Cohen Act of 1996 (42 U.S.C. 
     1401 et seq.); section 331(a) of the National Defense 
     Authorization Act for Fiscal Year 1999 (10 U.S.C. 2223); DOD 
     Directives 5000.1, 5000.2-R, 5237.1; and all other statutes, 
     directives, regulations, and management controls that are 
     applicable to investments in information technology and 
     related services.
       The conferees remain concerned about evidence of 
     mismanagement of the DESCIM program. The conferees note the 
     nominal return on an investment of about $100.0 million.
     Report on Plasma Energy Pyrolysis System (sec. 320)
       The Senate amendment contained a provision (sec. 349) that 
     would require the Secretary of the Army to submit, not later 
     than October 1, 2000, a report to the congressional defense 
     committees that includes the Army's analysis and 
     recommendations regarding future applications for both phases 
     of the Plasma Energy Pyrolysis System (PEPS) technology (PE 
     62720A).

[[Page 21674]]

       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     date for submission of the report to February 1, 2001.
     Sense of Congress regarding environmental restoration of 
         former defense manufacturing site, Santa Clarita, 
         California (sec. 321)
       The House bill contained a provision (sec. 314) that would 
     express the sense of Congress that every effort should be 
     made to apply all known public and private sector innovative 
     technologies to restore the Santa Clarita site to productive 
     use.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would strike the 
     original findings.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

     Use of appropriated funds to cover operating expenses of 
         commissary stores (sec. 331)
       The House bill contained a provision (sec. 321) that would 
     authorize the Defense Commissary Agency to use appropriated 
     funds to cover expenses of operating stores and central 
     product processing facilities.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Adjustment of sales prices of commissary store goods and 
         services to cover certain expenses (sec. 332)
       The House bill contained a provision (sec. 322) that would 
     require the Defense Commissary Agency to adjust prices of 
     goods and services to cover losses from shrinkage, spoilage, 
     and pilferage, as well as the cost of first destination 
     transportation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Use of surcharges for construction and improvement of 
         commissary stores (sec. 333)
       The House bill contained a provision (sec. 323) that would 
     authorize the Secretary of Defense to use proceeds solely 
     from the commissary surcharge for acquisition, construction, 
     conversion, expansion, improvement, repair, maintenance, and 
     equipping commissaries or to cover environmental evaluation 
     and construction costs, including surveys and similar 
     expenses related to commissary construction.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Inclusion of magazines and other periodicals as an authorized 
         commissary merchandise category (sec. 334)
       The House bill contained a provision (sec. 324) that would 
     add magazines and other periodicals as an authorized 
     merchandise category for sale in commissaries.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of Defense to promulgate 
     policy guidance that would limit the display of magazines and 
     other periodicals in commissaries to the immediate area of 
     the checkout lanes.
     Use of most economical distribution method for distilled 
         spirits (sec. 335)
       The House bill contained a provision (sec. 325) that would 
     authorize military exchanges to use private distributors to 
     distribute distilled spirits in those cases in which such an 
     option is determined to be the most cost-effective means of 
     distribution.
       The Senate amendment contained an identical provision (sec 
     369).
       The conference agreement includes this provision.
     Report on effects of availability of slot machines on United 
         States military installations overseas (sec. 336)
       The House bill contained a provision (sec. 326) that would 
     require the Secretary of Defense to submit to the Congress, 
     not later than March 31, 2001, a report evaluating the effect 
     of the ready availability of slot machines as a morale, 
     welfare and recreation activity on United States military 
     installations overseas on members of the armed forces, their 
     dependents, and others who use the slot machines.
       The Senate amendment contained no similar provision.
       The Senate recedes.

        Subtitle D--Department of Defense Industrial Facilities

     Designation of Centers of Industrial and Technical Excellence 
         and public-private partnerships to increase utilization 
         of such centers (sec. 341)
       The Senate amendment contained a provision (sec. 332) that 
     would amend section 2474 of title 10, United States Code, to 
     devolve the authority to designate the depot-level activities 
     of the Department of Defense and the military departments to 
     the respective secretaries of the military departments, 
     including the arsenals and ammunition plants of the U.S. 
     Army. The provision would also expand the activities 
     authorized to be conducted at these centers by employees of 
     the center, the private sector, or other entities outside the 
     Department of Defense, to include the performance of work 
     under contract, or subcontract, in any of the core 
     competencies of the center; the performance of other depot-
     level maintenance and repair related to the core competencies 
     at the center; or other work by the private sector that is 
     not related to the core competencies of the center that 
     requires the use of any facility or equipment of the center 
     that are not fully utilized by a military department for its 
     own production and maintenance requirements. The full costs 
     of work performed by the employees of the center under 
     contract from the private sector must be charged to the 
     contract. Any revenues generated, by rents or through other 
     mechanisms, by private sector use of facilities and equipment 
     at these centers would be available to offset the costs of 
     facility operations, maintenance, and environmental 
     restoration at the center where the leased property is 
     located. The provision would also include a loan guarantee 
     program to encourage the private sector to participate in the 
     public-private partnerships established in the centers.
       The House bill contained no similar provision.
       The House recedes with an amendment that would not include 
     ammunition plants or arsenals under section 2474. The 
     amendment would also authorize, rather than require, the 
     secretary of a military department to allow centers to enter 
     into public-private partnerships. Furthermore, the amendment 
     would limit the work conducted at a center to work that is 
     related to the core competencies of the center. Finally, 
     rather than authorize a new loan guarantee program, the 
     amendment would require the Secretary of Defense to provide 
     the Congress with a report on the extent to which a loan 
     guarantee program modeled after the loan guarantee program in 
     the Armament Retooling and Manufacturing Support Program 
     would help to achieve the objectives of section 2474.
     Unutilized and underutilized plant-capacity costs of United 
         States arsenals (sec. 342)
       The Senate amendment contained a provision (sec. 335) that 
     would prohibit the inclusion of the cost of unutilized or 
     under utilized plant capacity in the evaluation of bids for 
     the contracting of the arsenal to provide a good or service 
     to a U.S. Government organization.
       The House bill had no similar provision.
       The House recedes with a technical amendment.
     Arsenal support program initiative (sec. 343)
       The House bill contained a provision (sec. 113) that would 
     extend the Armament Retooling and Manufacturing Support 
     (ARMS) program by one year and authorize the Army 
     manufacturing arsenals to take part in the program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish a 
     separate two year arsenal support demonstration program with 
     authorities similar to those provided by the ARMS program.
     Codification and improvement of armament retooling and 
         manufacturing support programs (sec. 344)
       The Senate amendment contained a provision (sec. 331) that 
     would amend Part IV of subtitle B of title 10, United States 
     Code, to make certain changes and codify the Armament 
     Retooling and Manufacturing Support (ARMS) Initiative. The 
     provision would expand the objectives of the program to 
     include a reduction of the cost of ownership and/or disposal 
     of ammunition plants, to enhance best business practices, and 
     foster cooperation with the private sector at these 
     facilities. The provision would also make it easier for non-
     federal entities to use excess capacity at these facilities, 
     and offset the costs to the Federal Government of ownership 
     by allowing revenues generated through private sector use to 
     be applied to overhead and production costs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would not further 
     expand the use of the ARMS program to excess facilities or 
     allow an ARMS facility to use contracts, leases, or other 
     agreements for activities not traditionally associated with 
     the ARMS program, unless approved by the Secretary of the 
     Army.

     Subtitle E--Performance of Functions by Private-Sector Sources

     Inclusion of additional information in reports to Congress 
         required before conversion of commercial or industrial 
         type functions to contractor performance (sec. 351)
       The House bill contained a provision (sec. 331) that would 
     require the Secretary of Defense to provide the Congress with 
     additional information before converting commercial or 
     industrial functions to contractor performance. The 
     additional information would include a certification that 
     funds are specifically budgeted for conversion analysis, the 
     date on which the analysis was initiated, and the number of 
     Department of Defense civilians that would be adversely 
     affected by the proposed conversion.
       The Senate amendment contained a similar provision (sec. 
     366(b)).
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to identify the funding source for the 
     conversion analysis and the number of Department of Defense 
     civilians who will be terminated

[[Page 21675]]

     or otherwise affected by the proposed conversion. The 
     amendment would also require the Secretary to include the 
     estimated economic impact of the change and a certification 
     that the factors considered in the examinations performed, 
     and the decisions made, did not include any predetermined 
     personnel constraint or limitation in terms of man-years, end 
     strength, full-time equivalent positions, or maximum number 
     of employees.
     Effects of outsourcing on overhead costs of Centers of 
         Industrial and Technical Excellence and Army ammunition 
         plants (sec. 352)
       The Senate amendment contained a provision (sec. 333) that 
     would require the Secretary of Defense to submit a report to 
     Congress 30 days prior to entering into a contract that would 
     result in moving workload performed by 50 or more employees 
     from a center or ammunition plant. The report should describe 
     the impact of any reduction in workload at a center or 
     ammunition plant as a result of a contract and describe the 
     overhead costs of that facility.
       The House bill contained no similar provision.
       The House recedes with an amendment that would increase the 
     waiting period from 30 to 60 days.
     Consolidation, restructuring, or re-engineering of Department 
         of Defense organizations, functions, or activities (sec. 
         353)
       The House bill contained a provision (sec. 364) that would 
     prohibit the Secretary of Defense from initiating manpower 
     reductions at organizations or activities, or within 
     functions, that are commercial, commercial exempt from 
     competition, military essential, or inherently governmental 
     until the Secretary submits a report to Congress outlining 
     the elements to be analyzed, the location and a description 
     of the elements, the number of civilian or military personnel 
     that would be affected, the cost of performance, and a 
     certification that the decision is not the result of 
     predetermined constraints or limitations on Department of 
     Defense personnel. The provision would also require the 
     Secretary of Defense to submit to the Armed Services 
     Committees of the Senate and the House of Representatives a 
     report on any decision on consolidation or re-engineering if 
     such action would eliminate 11 or more positions. The 
     provision would also require the Comptroller General to 
     review and to audit the findings of the Secretary of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to provide annually to Congress the 
     Department's Strategic Sourcing Plan. The provision would 
     also require that the Secretary of Defense provide a report 
     to Congress outlining the results of the analysis performed 
     for those elements when an action would result in a manpower 
     reduction affecting 50 or more personnel. The Secretary could 
     not implement the results of the analysis until 30 days after 
     providing the Congress with the required report. This 
     provision would not apply to the transfer of military units 
     between locations.
     Monitoring of savings resulting from workforce reductions as 
         part of conversion of functions to performance by private 
         sector or other strategic sourcing initiatives (sec. 354)
       The Senate amendment contained a provision (sec. 366) that 
     would require the Secretary of Defense to establish a system 
     for monitoring the performance of functions of the Department 
     of Defense that are performed by 50 or more employees of the 
     Department and have been subjected to a review to determine 
     whether the function should be performed by federal employees 
     or a private sector workforce. The provision would also 
     establish three performance measures, including the costs 
     incurred, the savings derived, and the value of the 
     performance by the selected workforce measured against the 
     costs of the performance of the workload by the workforce at 
     the beginning of the review. The provision would also require 
     the Secretary of Defense to provide to the Congress with an 
     annual report that outlines the results of the performance 
     reviews conducted over the previous years.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     report provided by the Secretary of Defense to the Congress 
     regarding the results of past performance reviews to include 
     those reviews conducted over the previous five years. The 
     report would compare the costs to perform the function before 
     and after the review, and the anticipated savings from the 
     review to the actual savings realized.
     Performance of emergency response functions at chemical 
         weapons storage installations (sec. 355)
       The Senate amendment contained a provision (sec. 364) that 
     would prohibit the Secretary of the Army from converting to 
     contractor performance the emergency response functions of 
     any chemical weapons storage installation currently performed 
     by U.S. Government employees until the Secretary provides a 
     certification to the Committees on Armed Services of the 
     Senate and the House of Representatives.
       The House bill contained no similar provision.
       The House recedes with an amendment that reiterates the 
     responsibility of the Secretary to enforce section 2465 of 
     title 10, United States Code.
     Suspension of reorganization or relocation of Naval Audit 
         Service (sec. 356)
       The Senate amendment contained a provision (sec. 367) that 
     would require the Secretary of the Navy to provide the 
     congressional defense committees a report outlining the plans 
     and justification for the reorganization of the Naval Audit 
     service 60 days before consolidating the functions of the 
     service currently performed at its primary East and West 
     Coast locations to Washington, DC.
       The House bill contained no similar provision.
       The report accompanying H.R. 4205 (House Report 106-616) 
     directed the Secretary to wait 180 days before consolidating 
     all activities in Washington.
       The House recedes with an amendment that would require the 
     Secretary to wait 180 days before proceeding with the 
     consolidation.

                Subtitle F--Defense Dependents Education

     Eligibility of dependents of American Red Cross employees for 
         enrollment in Department of Defense domestic dependent 
         schools in Puerto Rico (sec. 361)
       The House bill contained a provision (sec. 342) that would 
     authorize the Secretary of Defense to permit the dependents 
     of certain American Red Cross employees in Puerto Rico to 
     enroll in Department of Defense Domestic Dependent Schools.
       The Senate amendment contained a similar provision (sec. 
     1053).
       The Senate recedes with a clarifying amendment.
     Assistance to local educational agencies that benefit 
         dependents of members of the armed forces and Department 
         of Defense civilian employees (sec. 362)
       The House bill contained a provision (sec. 341) that would 
     authorize $35.0 million for educational assistance to local 
     educational agencies where the standard for the minimum level 
     of education within the state could not be maintained because 
     of the large number of military connected students.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Impact aid for children with severe disabilities (sec. 363)
       The Senate amendment contained a provision (sec. 311) that 
     would authorize $20.0 million in Operation and Maintenance, 
     Defense-wide activities for impact aid payments for children 
     with disabilities under section 8003(d) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(d)).
       The House bill contained no similar provision.
       The House recedes with an amendment that would, effective 
     October 1, 2001, establish a formula under which the 
     Secretary of Defense would distribute funds, if appropriated 
     for that purpose, for impact aid for disabled children.
     Assistance for maintenance, repair, and renovation of school 
         facilities that serve dependents of members of the Armed 
         Forces and Department of Defense civilian employees (sec. 
         364)
       The Senate amendment contained a provision (sec. 379) that 
     would authorize the Secretary of Defense to make a grant to 
     an eligible local educational agency to assist the agency in 
     maintenance, repair, and renovation projects.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     authorization to fiscal year 2001.

                 Subtitle G--Military Readiness Issues

     Measuring cannibalization of parts, supplies, and equipment 
         under readiness reporting system (sec. 371)
       The House bill contained a provision (sec. 351) that would 
     amend section 117 of title 10, United States Code, to include 
     equipment cannibalization rates in the quarterly readiness 
     reports to Congress. The provision would also require the 
     monthly readiness report to include a description of the 
     funding proposed in the President's budget request to address 
     each deficiency in readiness identified during the joint 
     readiness review conducted for the first quarter of the 
     current fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 117 of title 10, United States Code, to include 
     cannibalization rates. The requirement for the Secretary of 
     Defense to outline the funding proposed in the President's 
     budget request to address each deficiency in readiness 
     identified during the joint readiness review is addressed 
     elsewhere in this conference agreement.
     Reporting requirements regarding transfers from high-priority 
         readiness appropriations (sec. 372)
       The House bill contained a provision (sec. 352) that would 
     include Combat Enhancement Forces and Combat Communications 
     as high priority appropriations to be included

[[Page 21676]]

     in reports required by section 483 of title 10, United States 
     Code, and require that other appropriations involved in 
     transfers to, or transfers from, high priority accounts be 
     identified in those same reports. The provision would also 
     strike the termination date for this report.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Effects of worldwide contingency operations on readiness of 
         military aircraft and equipment (sec. 373)
       The Senate amendment contained a provision (sec. 361) that 
     would require the Secretary of Defense to submit a report to 
     Congress on the effects of worldwide contingency operations 
     on the aircraft of the Navy, Marine Corps, and Air Force, and 
     the ground equipment of the Army and Marine Corps. The report 
     shall include the assessment of the Secretary of the effects 
     of such operations on the ability of the Department of 
     Defense to maintain a high level of readiness.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include the 
     effect that contingency operations are having on the 
     readiness of the aircraft and the ground equipment of each of 
     the military services.
     Identification of requirements to reduce backlog in 
         maintenance and repair of defense facilities (sec. 374)
       The House bill contained a provision (sec. 353) that would 
     require the Secretary of Defense to develop and annually 
     update a strategic plan for the reduction of the backlog in 
     real property maintenance.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to identify the funds necessary to reduce the 
     backlog of real property maintenance and report that 
     requirement to the Congress.
     New methodology for preparing budget requests to satisfy Army 
         readiness requirements (sec. 375)
       The Senate amendment contained a provision (sec. 362) that 
     would require the Secretary of the Army to develop a new 
     methodology to be used in preparing a budget request that 
     more accurately reflects the Army's requirements. This 
     methodology should be based on the level of training required 
     to maintain essential readiness, the cost of conducting such 
     training, and the cost of all other Army operations, 
     including the cost of meeting its infrastructure 
     requirements. This methodology should be used in the 
     preparation of the fiscal year 2002 budget request.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Review of AH-64 aircraft program (sec. 376)
       The Senate amendment contained a provision (sec. 378) that 
     would require the Comptroller General to conduct a study of 
     the Army's AH-64 aircraft program to determine if the 
     readiness of the program is adversely affected by lack of 
     funding for modern parts, upgrades, and technical support.
       The House bill contained no similar provision.
       The House recedes.
     Report on Air Force spare and repair parts program for C-5 
         (sec. 377)
       The Senate amendment contained a provision (sec. 1027) that 
     would require the Secretary of the Air Force to submit a 
     report to the congressional defense committees on the overall 
     status of the spare and repair parts program of the Air Force 
     for the C-5 aircraft.
       The House amendment contained no similar provision.
       The House recedes.

                       Subtitle H--Other Matters

     Annual report on public sale of certain military equipment 
         identified on United States Munitions List (sec. 381)
       The House bill contained a provision (sec. 362) that would 
     require the Secretary of Defense to provide an annual report 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives identifying each public sale 
     conducted by a military department or defense agency of 
     military items that are identified on the United States 
     Munitions List 22 C.F.R. 121.1, and assigned a 
     demilitarization code of B or its equivalent.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Resale of armor-piercing ammunition disposed of by the Army 
         (sec. 382)
       The Senate amendment contained a provision (sec. 370) that 
     would require the Secretary of the Army to ensure that excess 
     armor-piercing ammunition that is not transferred to law 
     enforcement or other governmental agencies or made available 
     for foreign military sales, is not sold to the public. The 
     requirement would not apply to the non-armor-piercing 
     components of that ammunition, but such components could not 
     be used to produce armor-piercing ammunition for sale to 
     civilian purchasers.
       The House had no similar provision.
       The House recedes.
     Reimbursement by civil air carriers for support provided at 
         Johnston Atoll (sec. 383)
       The Senate amendment contained a provision (sec. 373) that 
     would authorize the Secretary of the Air Force to require 
     reimbursement by a civil air carrier for support provided by 
     the United States to that carrier at Johnston Atoll that is 
     either requested by the carrier, or determined to be 
     necessary to accommodate the carrier's use of Johnston Atoll. 
     The reimbursement shall be equal to the actual costs incurred 
     by the United States, and shall be credited to either Air 
     Force operation and maintenance accounts or to the Army 
     chemical demilitarization accounts.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Travel by Reserves on military aircraft (sec. 384)
       The Senate amendment contained a provision (sec. 692) that 
     would authorize reservists traveling to a place of annual 
     training or inactive duty training to travel space-required 
     on military aircraft between the member's home and the place 
     of such duty or training, and would make reservists eligible 
     for space- available travel on military aircraft for travel 
     outside the United States.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the space-required travel in conjunction with training or 
     reserve duty is both to and from their home, and that would 
     not permit reservists to use space-available travel on 
     military aircraft.
     Overseas airlift service on Civil Reserve Air Fleet aircraft 
         (sec. 385)
       The Senate amendment contained a provision (sec. 376) that 
     would amend section 41106 of title 49, United States Code, to 
     require that the Department of Defense (DOD) procure 
     transportation from air carriers with aircraft in the Civil 
     Reserve Air Fleet for travel from a place in the United 
     States to a place outside the United States, and to the 
     extent practicable, between two locations outside the United 
     States.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Additions to plan for ensuring visibility over all in-transit 
         end items and secondary items (sec. 386)
       The Senate amendment contained a provision (sec. 363) that 
     would amend section 349 of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 1999 (Public Law 
     105-261) by including specific requirements for monitoring 
     and measuring implementation of the plan to ensure visibility 
     over in-transit inventory items. The requirements would 
     include the assignment of oversight responsibility for each 
     action required to address weaknesses in the controls over 
     in-transit items, a description of the resources required for 
     oversight, and an estimate of the annual cost of oversight.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Reauthorization of pilot program for acceptance and use of 
         landing fees charged for use of domestic military 
         airfields by civil aircraft (sec. 387)
       The Senate amendment contained a provision (sec. 372) that 
     would extend through fiscal year 2010 the authority of the 
     service secretary concerned to accept payments for the use of 
     domestic military and shared use airfields by civil aircraft 
     and to use those payments for the operation and maintenance 
     of the airfield.
       The House bill contained no similar provision.
       The House recedes.
     Extension of authority to sell certain aircraft for use in 
         wildfire suppression (sec. 388)
       The Senate amendment contained a provision (sec. 375) that 
     would extend through fiscal year 2005 the authority of the 
     Secretary of Defense to sell excess aircraft and spare parts 
     to persons or entities that contract with the Federal 
     Government for the delivery of fire retardant by air in order 
     to suppress wildfires.
       The House bill contained no similar provision.
       The House recedes.
     Damage to aviation facilities caused by alkali silica 
         reactivity (sec. 389)
       The Senate amendment contained a provision (sec. 371) that 
     would require the Secretary of Defense to test the use of 
     lithium salts to preserve runway integrity and provide the 
     congressional defense committees with a report outlining its 
     success in mitigating the impact of alkali silica reactivity 
     (ASR).
       The House bill contained no similar provision.
       The House recedes with an amendment that would require a 
     pilot program to review the problems of ASR at 
     environmentally diverse facilities of the military services.
     Demonstration project to increase reserve component internet 
         access and services in rural communities (sec. 390)
       The Senate amendment contained a provision (sec. 314) that 
     would authorize a demonstration project for the National 
     Guard to

[[Page 21677]]

     provide internet access to government offices in rural areas.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the National Guard to provide internet access to Guard and 
     other military reserve offices in rural areas. The provision 
     would also require the Secretary of the Army to provide the 
     congressional defense committees with a report and 
     recommendations regarding the expansion of this demonstration 
     project to other offices.
     Additional conditions on implementation of Defense Joint 
         Accounting System (sec. 391)
       The Senate amendment contained a provision (sec. 380) that 
     would postpone the milestone III decision to field the 
     Defense Joint Accounting System (DJAS) until the Secretary of 
     Defense conducts an analysis of the requirement for the DJAS 
     and certifies to Congress that this warrants deployment.
       The House bill amendment contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to outline more specifically the need 
     for the System.
       The conferees note that this provision would supercede the 
     direction provided by House report accompanying H.R.4204 (H. 
     Rept. 106-616).
     Report on Defense Travel System (sec. 392)
       The Senate amendment contained a provision (sec. 377) that 
     would require the Secretary of Defense to submit a report on 
     the development, fielding, schedule, and potential cost 
     savings expected to result from the deployment of the Defense 
     Travel System.
       The House bill contained no similar provision.
       The House recedes with an amendment that would strike the 
     limitation on the use of funds for this system. The conferees 
     direct the Secretary of Defense to submit a prior 
     notification reprogramming to the congressional defense 
     committees before the transfer of any funds for this program.
     Review of Department of Defense costs of maintaining 
         historical properties (sec. 393)
       The Senate amendment contained a provision (sec. 374) that 
     would require the Comptroller General to conduct a review of 
     the annual costs incurred by the Department of Defense in 
     complying with the requirements of the National Historic 
     Preservation Act (NHPA) (16 U.S.C. 470 et seq.). The 
     provision would require the Comptroller General to provide 
     the congressional defense committees with a report of the 
     results of the review, including the projected costs of 
     maintaining these properties over the next 10 years, an 
     analysis of maintaining only those properties which 
     originally qualified as historic properties when the NHPA was 
     first enacted, the accounts used for paying the costs to 
     comply with the NHPA, and the identity of all properties that 
     must be maintained in order to comply with the NHPA.
       The House bill contained no similar provision
       The House recedes.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Authority to ensure demilitarization of significant military 
         equipment formerly owned by the Department of Defense
       The House bill contained a provision (sec. 361) that would 
     authorize the Secretary of Defense to require the owner of 
     significant military equipment formerly owned by the 
     Department of Defense to demilitarize that equipment or 
     return it to the Department of Defense for demilitarization.
       The Senate amendment had no similar provision.
       The House recedes.
       The conferees note that although the provision intended to 
     address congressional concerns regarding the release of un-
     demilitarized military equipment to the public by the 
     Department of Defense, the provision could have serious 
     unintended consequences for legitimate owners of former 
     military equipment, such as museums and ceremonial display 
     organizations. The conferees direct the Secretary of Defense 
     to reassess its approach for the recovery of un-demilitarized 
     military equipment in a way that will not affect legitimate 
     owners of former military equipment.
     Close-in weapon system overhauls
       The Senate amendment contained a provision (sec. 319) that 
     would provide $391.8 million for weapons maintenance 
     including $10.0 million for close-in weapon system overhauls.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $10.0 million in the 
     operation and maintenance account of the Navy for overhauls 
     of the close-in weapon system.
     Industrial mobilization capacity at government-owned, 
         government-operated army ammunition facilities and 
         arsenals
       The Senate amendment contained a provision (sec. 318) that 
     would provide $51.28 million to fund the cost of maintaining 
     the industrial mobilization capacity at Army ammunition 
     facilities and arsenals.
       The House bill contained no similar provision.
       The Senate recedes.
     Investment of commissary trust revolving fund
       The Senate amendment contained a provision (sec. 368) that 
     would authorize the Secretary of Defense to invest a portion 
     of the Commissary Trust Revolving Fund in public debt 
     securities.
       The House bill contained no similar provision.
       The Senate recedes.
     MK-45 overhaul
       The Senate amendment contained a provision (sec. 317) that 
     would authorize the expenditure of $12.0 million for the 
     overhaul of MK-45 five inch guns.
       The House bill had no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $12.0 million for the 
     overhaul of these guns in the Navy's operation and 
     maintenance account.
     Mounted urban combat training site, Fort Knox
       The Senate amendment contained a provision (sec. 316) that 
     would authorize the expenditure of $4.0 million for training 
     range upgrades at the mounted urban combat training site, 
     Fort Knox, Kentucky.
       The House bill had no similar provision.
       The Senate recedes.
     National Guard assistance for certain youth and charitable 
         organizations
       The House bill contained a provision (sec. 365) that would 
     amend section 508 of title 32, United States Code, to include 
     other youth or charitable organizations designated by the 
     Secretary of Defense among those organizations eligible to 
     receive assistance from the National Guard.
       The Senate amendment contained no similar provision.
       The House recedes.
     Notice of use of radio frequency spectrum by a system 
         entering engineering and manufacturing development
       The Senate bill contained a provision (sec. 365) that would 
     require the Secretary of Defense to submit a report to the 
     congressional defense committees before a new weapon system 
     is acquired that would outline the frequency that the system 
     will use. The report would also include a statement of 
     whether the Department is designated as the primary user of 
     that frequency and, if not, the unique technical 
     characteristics that make it necessary to use that particular 
     frequency, and a description of the protections that the 
     Department of Defense has been given to ensure that it will 
     not incur costs as a result of current or future interference 
     from other users of that particular frequency.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees are concerned that in the past the Department 
     of Defense has pursued the development of weapons systems 
     utilizing portions of the radio frequency spectrum that are 
     not designated for military use. This can lead to unintended 
     interference between that system and a commercial system 
     licensed to use the same frequency. This interference could 
     then result in operational constraints, or expensive redesign 
     of the weapon system.
       The conferees note that the Department of Defense is 
     implementing new procedures that are designed to ensure 
     adequate coordination of the military services' efforts to 
     develop new systems so that past problems with frequency 
     interference do not take place. The conferees direct the 
     Comptroller General to review these procedures and their 
     implementation and provide the Armed Services Committees of 
     the Senate and the House of Representatives with a report 
     outlining the extent to which they will prevent interference 
     that would result in operational constraints or expensive 
     redesigns.
     Revision of authority to waive limitation on performance of 
         depot-level maintenance
       The Senate bill contained a provision (sec. 334) that would 
     amend section 2466 of title 10, United States Code, to 
     require the President of the United States, rather than the 
     secretary of the respective military department, to waive the 
     50 percent depot maintenance requirement for reasons of 
     national security.
       The House amendment contained no similar provision.
       The Senate recedes.
       The conferees are concerned that the Secretary of the Air 
     Force has not taken the actions necessary to ensure the Air 
     Force complies with the requirement contained in section 2466 
     of title 10, United States Code, that 50 percent of all depot 
     maintenance funds of a military department be spent on depot 
     maintenance services provided by employees of the Federal 
     Government. The conferees believe that this requirement is 
     essential to maintain the core maintenance capability 
     necessary to preserve a ready and controlled source of repair 
     and maintenance.
     Spectrum data base upgrades
       The Senate amendment contained a provision (sec. 320) that 
     would provide a decrease of $10.0 million for spectrum data 
     base upgrades.
       The House bill contained no similar provision.
       The Senate recedes.

[[Page 21678]]


     Use of humanitarian and civic assistance funding for pay and 
         allowances of special operations command reserves 
         furnishing demining training and related assistance as 
         humanitarian assistance
       The Senate bill contained a provision (sec. 322) that would 
     authorize pay and allowances from within funds for the 
     overseas humanitarian, disaster, and civic assistance 
     account, for reserve members of the Special Operations 
     Command when these reservists perform humanitarian demining 
     activities.
       The House amendment contained no similar provision.
       The Senate recedes.
     Weatherproofing of facilities at Keesler Air Force Base
       The Senate amendment contained a provision (sec. 313) that 
     would authorize the expenditure of $2.8 million for the 
     weatherproofing of facilities at Keesler Air Force Base.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize $2.8 million in the Air 
     Force operation and maintenance account for the 
     weatherproofing of these facilities.

              Title IV--Military Personnel Authorizations


                       ITEMS OF SPECIAL INTEREST

     Funding for Army Reserve Individual Mobilization Augmentees
       The conferees are aware that projected fiscal year 2001 
     funding shortfalls within the Army Reserve have required that 
     limitations be placed on the number of days that Individual 
     Mobilization Augmentees (IMA) may serve on active duty. The 
     conferees are also aware that many Army Reserve IMAs serve 
     extended training tours in active component staffs and units, 
     and that the imposed limits will significantly reduce, in 
     some cases by as much half, the amount of support that IMAs 
     may provide to the active Army. Believing that IMAs provide 
     significant, critical support to the active Army, the 
     conferees strongly urge the Secretary of the Army to address 
     the funding shortfall expeditiously, either by transferring 
     active military personnel funding to reserve personnel 
     accounts, or by other means the Secretary considers 
     appropriate.


                     LEGISLATIVE PROVISIONS ADOPTED

                       Subtitle A--Active Forces

     End strengths for active forces (sec. 401)
       The House bill contained a provision (sec. 401) that would 
     authorize active duty end strengths for fiscal year 2001, as 
     shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army.........................................................          480,000          480,000          480,000
Navy.........................................................          372,037          372,000          372,642
Marine Corps.................................................          172,518          172,600          172,600
Air Force....................................................          360,877          357,000          357,000
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained a similar provision (sec. 
     401) that would authorize active duty end strengths for 
     fiscal year 2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army.........................................................          480,000          480,000          480,000
Navy.........................................................          372,037          372,000          372,000
Marine Corps.................................................          172,518          172,600          172,600
Air Force....................................................          360,877          357,000          357,000
----------------------------------------------------------------------------------------------------------------

       The Senate recedes.
     Revision in permanent end strength minimum levels (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     revise the active duty end strength floors to reflect the end 
     strengths in the budget request.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Adjustment to end strength flexibility authority (sec. 403)
       The House bill contained a provision (sec. 403) that would 
     authorize the secretary of a military department to reduce 
     active duty end strength below the floors when the authorized 
     end strength is equal to or higher than the minimum end 
     strength level.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle B--Reserve Forces

     End strengths for Selected Reserve (sec. 411)
       The House bill contained a provision (sec. 411) that would 
     authorize Selected Reserve end strengths for fiscal year 
     2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................          350,000          350,000          350,706
Army Reserve.................................................          205,000          205,000          205,300
Navy Reserve.................................................           90,288           88,900           88,900
Marine Corps Reserve.........................................           39,624           39,500           39,558
Air National Guard of the United States......................          106,678          108,000          108,000
Air Force Reserve............................................           73,708           74,300           74,358
Coast Guard Reserve..........................................            8,000            8,000            8,000
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained a similar provision (sec. 
     411) that would authorize Selected Reserve end strengths for 
     fiscal year 2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................          350,000          350,000          350,088
Army Reserve.................................................          205,000          205,000          205,000
Navy Reserve.................................................           90,288           88,900           88,900
Marine Corps Reserve.........................................           39,624           39,500           39,558
Air National Guard of the United States......................          106,678          108,000          108,022
Air Force Reserve............................................           73,708           74,300           74,300
Coast Guard Reserve..........................................            8,000            8,000            8,500
----------------------------------------------------------------------------------------------------------------

       The House recedes with an amendment that would authorize 
     Selected Reserve end strengths for fiscal year 2001, as shown 
     below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................          350,000          350,000          350,526
Army Reserve.................................................          205,000          205,000          205,300
Navy Reserve.................................................           90,288           88,900           88,900
Marine Corps Reserve.........................................           39,624           39,500           39,558
Air National Guard of the United States......................          106,678          108,000          108,022
Air Force Reserve............................................           73,708           74,300           74,358
Coast Guard Reserve..........................................            8,000            8,000            8,000
----------------------------------------------------------------------------------------------------------------

     End strengths for Reserves on active duty in support of the 
         reserves (sec. 412)
       The House bill contained a provision (sec. 412) that would 
     authorize end strengths for reserves on active duty in 
     support of the reserves for fiscal year 2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................           22,430           22,448           23,154
Army Reserve.................................................           12,804           12,806           13,106
Navy Reserve.................................................           15,010           14,649           14,649
Marine Corps Reserve.........................................            2,272            2,203            2,261
Air National Guard of the United States......................           11,157           11,148           11,148
Air Force Reserve............................................            1,134            1,278            1,336
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained a similar provision (sec. 
     412) that would authorize end strengths for reserves on 
     active duty in support of the reserves for fiscal year 2001, 
     as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................           22,430           22,448           22,974
Army Reserve.................................................           12,804           12,806           12,806
Navy Reserve.................................................           15,010           14,649           14,649
Marine Corps Reserve.........................................            2,272            2,203            2,261
Air National Guard of the United States......................           11,157           11,148           11,170
Air Force Reserve............................................            1,134            1,278            1,278
----------------------------------------------------------------------------------------------------------------

       The Senate recedes with an amendment that would authorize 
     end strengths for reserves on active duty in support of the 
     reserves for fiscal year 2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................           22,430           22,448           22,974
Army Reserve.................................................           12,804           12,806           13,106
Navy Reserve.................................................           15,010           14,649           14,649
Marine Corps Reserve.........................................            2,272            2,203            2,261
Air National Guard of the United States......................           11,157           11,148           11,170
Air Force Reserve............................................            1,134            1,278            1,336
----------------------------------------------------------------------------------------------------------------

     End strengths for military technicians (dual status) (sec. 
         413)
       The House bill contained a provision (sec. 413) that would 
     authorize the minimum level of dual status technician end 
     strength for fiscal year 2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................           23,125           22,357           23,392
Army Reserve.................................................            6,474            5,271            5,921
Air National Guard of the United States......................           22,247           22,221           22,247
Air Force Reserve............................................            9,785            9,733            9,785
----------------------------------------------------------------------------------------------------------------

       The Senate amendment contained a similar provision (sec. 
     413) that would authorize the minimum level of dual status 
     technician end strength for fiscal year 2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................           23,125           22,357           24,728
Army Reserve.................................................            6,474            5,271            5,249
Air National Guard of the United States......................           22,247           22,221           22,221
Air Force Reserve............................................            9,785            9,733            9,733
----------------------------------------------------------------------------------------------------------------

       The House recedes with an amendment that would authorize 
     the minimum level of dual status technician end strength for 
     fiscal year 2001, as shown below:

[[Page 21679]]



----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................           23,125           22,357           23,128
Army Reserve.................................................            6,474            5,271            5,921
Air National Guard of the United States......................           22,247           22,221           22,247
Air Force Reserve............................................            9,785            9,733            9,785
----------------------------------------------------------------------------------------------------------------

     Fiscal year 2001 limitation on non-dual status technicians 
         (sec. 414)
       The Senate amendment contained a provision (sec. 414) that 
     would establish numerical limits on the number of non-dual 
     status technicians who may be employed in the Department of 
     Defense as of September 30, 2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................            1,180            1,600            1,600
Army Reserve.................................................            1,295            1,195            1,195
Air National Guard of the United States......................              342              326              326
Air Force Reserve............................................                0                0                0
----------------------------------------------------------------------------------------------------------------

       The House bill contained no similar amendment.
       The House recedes with an amendment that would establish 
     numerical limits on the number of non-dual status technicians 
     who may be employed in the Department of Defense as of 
     September 30, 2001, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                     2000                              2001
                                                                authorization    2001  request    recommendation
----------------------------------------------------------------------------------------------------------------
Army National Guard of the United States.....................            1,180            1,600            1,600
Army Reserve.................................................            1,295            1,195            1,195
Air National Guard of the United States......................              342              326              326
Air Force Reserve............................................                0                0               10
----------------------------------------------------------------------------------------------------------------

     Increase in numbers of members in certain grades authorized 
         to be on active duty in support of the Reserves (sec. 
         415)
       The House bill contained a provision (sec. 414) that would 
     increase the control grades for reserves serving on active 
     duty or on full-time national guard duty in support of the 
     reserves. The provision would authorize 20 additional 
     colonels, 82 additional lieutenant colonels, 38 additional 
     majors, 97 additional E-9s and 90 additional E-8s in the Air 
     Force and 76 additional colonels, 219 additional lieutenant 
     colonels, 178 additional majors, 221 additional E-9s and 373 
     additional E-8s in the Army.
       The Senate amendment contained a similar provision (sec. 
     415) that would authorize 20 additional colonels, 131 
     additional lieutenant colonels, 107 additional majors, 96 
     additional E-9s and 61 additional E-8s in the Air Force and 
     73 additional colonels, 163 additional lieutenant colonels, 8 
     additional majors, 17 additional E-9s and 83 additional E-8s 
     in the Army.
       The House recedes with an amendment that would authorize 20 
     additional colonels, 75 additional lieutenant colonels, 88 
     additional majors, 97 additional E-9s, and 76 additional E-8s 
     in the Air Force and 58 additional colonels, 148 additional 
     lieutenant colonels, 89 additional majors, 119 additional E-
     9s and 228 additional E-8s in the Army.
       The conferees are concerned with the piecemeal manner in 
     which the reserve components are requesting increases to the 
     control grade limits. This is the third consecutive year in 
     which control grade tables for reserve officers on active 
     duty in support of the reserves have been adjusted. The 
     conferees strongly support the initiative in the House report 
     accompanying H.R. 4205, (H. Rept. 106-616) to require a 
     comprehensive approach to determining the appropriate control 
     grade limits for each of the reserve components. Therefore, 
     the conferees direct the Secretary of Defense to study the 
     requirements and force structure of the reserves on active 
     duty in support of the reserves and to recommend a permanent 
     solution for managing grade structure for these officers. In 
     conducting the study, the Secretary of Defense shall include 
     the following areas:
       (1) the grade structure authorized for the active duty 
     forces and rationale for why the grade structure for reserves 
     on active duty in support of the reserves should be 
     different;
       (2) explain any differences between required force 
     structure and authorized force structure for the controlled 
     grades;
       (3) the need for independent grade limits for each reserve 
     component;
       (4) the potential for repealing the current grade tables in 
     favor of a system that would manage grades based on the grade 
     authorized for the position occupied by a service member; and
       (5) the current mix within each reserve component of 
     traditional reservists, dual status technicians, active 
     component service members and reservists on active duty in 
     support of the reserves in each controlled grade and how that 
     mix for each component might change over time under the 
     Secretary's recommended solution.
       The conferees direct that the Secretary of Defense submit a 
     report of findings and recommendations to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     not later than March 31, 2001.

       Subtitle C--Other Matters Relating to Personnel Strengths

     Authority for Secretary of Defense to suspend certain 
         personnel strength limitations during war or national 
         emergency (sec. 421)
       The House bill contained a provision (sec. 501) that would 
     authorize the Secretary of Defense to suspend, in time of war 
     or national emergency, the limits on the number of personnel 
     serving in certain grades.
       Senate amendment contained a similar provision (sec. 421).
       Senate recedes with a clarifying amendment.
     Exclusion from active component end strengths of certain 
         reserve component members on active duty in support of 
         the combatant commands (sec. 422)
       The Senate amendment contained a provision (sec. 422) that 
     would exempt a number, limited to not more than two-tenths of 
     one percent of the active duty end strength of the service 
     concerned, of reserve component members on active duty 
     performing special work in support of the armed forces and 
     the combatant commands from counting against the active 
     component end strengths.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     exemption to reserve component personnel below the grade of 
     brigadier general, or in the case of the Navy, rear admiral 
     (lower half) who perform active duty for special work in the 
     combatant commands and would limit the active duty time that 
     could be exempted to not more than 270 days.
     Exclusion of Army and Air Force medical and dental officers 
         from limitation on strengths of reserve comissioned 
         officers in grades below brigadier general (sec. 423)
       The House bill contained a provision (sec. 512) that would 
     exempt medical and dental officers from the calculation of 
     the number of officers in each grade authorized to serve in 
     an active status in a reserve component and would make the 
     procedures for calculating the number of officers serving in 
     controlled grades for the reserve components consistent with 
     the procedures used for the active component.
       The Senate amendment contained a similar provision (sec. 
     423).
       The Senate recedes with a clarifying amendment.
     Authority for temporary increases in number of reserve 
         component personnel serving on active duty or full-time 
         national guard duty in certain grades (sec. 424)
       The House bill contained a provision (sec. 515) that would 
     authorize the Secretary of Defense to increase the number of 
     reserve members serving on active duty in support of the 
     reserves in certain senior grades by the same percentage the 
     Secretary is authorized to increase end strength of that 
     force by section 115 of title 10, United States Code.
       The Senate amendment contained a similar provision (sec. 
     424).
       The House recedes with a clarifying amendment.

              Subtitle D--Authorization of Appropriations

     Authorization of appropriations for military personnel (sec. 
         431)
       The House bill contained a provision (sec. 421) that would 
     authorize $75,801,666,000 to be appropriated to the 
     Department of Defense for military personnel.
       The Senate amendment contained a provision (sec. 431) that 
     would authorize $75,632,266,000 to be appropriated to the 
     Department of Defense for military personnel.
       The Senate recedes.
       The conferees provide the following itemization of the 
     increases and decreases from the President's budget request 
     related to the military personnel accounts. These increases 
     and decreases do not include the additional funds included in 
     the Emergency Supplemental Act, 2000 (division B of Public 
     Law 106-246), which is authorized elsewhere in this 
     conference agreement.

                       MILITARY PERSONNEL ACCOUNTS
                         [Additions in millions]
------------------------------------------------------------------------
                                                              Conference
                                                              agreement
------------------------------------------------------------------------
                    Active End Strength
Navy:
    Add Recruiters (500)...................................         15.0
    USS Houston (142)......................................          3.5
 
                      RC End Strength
Army National Guard:
    Add AGR's (General Increase)...........................         14.5
    Add AGR's (WMD CS Teams)...............................          2.0
Army Reserve Add AGR's (General Increase)..................         10.0
Air National Guard AGR's (WMD CS Teams)....................          1.2
Air Force Reserve:
    Add AGR Recruiters (50)................................          1.7
    Add Red Horse AGR's (8)................................          0.4
USMC Reserve Add AR's (58).................................          1.9
 
                        Compensation
 
Restructuring of basic pay tables for certain enlisted              88.0
 members...................................................
Accelerate Buydown of Out-of-Pocket Housing Costs..........         25.0
Increase Minimum Dislocation Allowance.....................          6.0
Family subsistence supplemental allowance for low-income
 members 5.0...............................................
Revision of enlistment bonus authority.....................         10.0
Equity in computation of BAH for junior enlisted members...         10.0
Authorization of BAH for members w/out dependents on sea            30.0
 duty......................................................
Retention bonus for members qualified in a critical                 10.0
 military skill............................................

[[Page 21680]]

 
Participation in Thrift Savings Plan.......................          1.0
Determinations of income-eligibility for special                     3.0
 supplemental food program.................................
Special duty assignment pay for enlisted members...........         25.0
Entitlement of Reserves not on active duty to special duty           8.0
 assignment pay............................................
Authorization of special pay and accession bonus for                 4.0
 pharmacy officers.........................................
Separation pay for twice passed-over officers..............         15.0
Reimburse Pet Quarantine Fees..............................          1.0
 
                         Retirement
 
Increase maximum number of reserve retirement points.......          4.0
Recruiting & Retention.....................................  ...........
Army Enlistment/Reenlistment Bonuses.......................         20.0
Army Reserve College First.................................          5.0
Navy Enlistment/Reenlistment Bonuses.......................         20.0
USMC:
    Enlistment Bonus.......................................          2.0
    Selective Reenlistment Bonus...........................          4.0
    College Fund...........................................          4.4
Air Force:
    Selective Reenlistment Bonus...........................         29.0
    College-to-USAF Enl. Program...........................          6.0
AF Reserve AGR Pilot Retention Bonus.......................          3.8
 
                        Other Issues
 
Army Reserve funeral honors................................          2.7
Naval Reserve:
    Reserve Annual Training................................          2.4
    Reserve ADT (CINC Support).............................         13.4
    Reserve ADT (Schools)..................................          3.0
    ADSW (Voluntary Support)...............................          1.0
    Inactive Duty for Training Travel......................          1.5
USMC Reserve Active Duty for Special Work..................          3.0
                                                            ------------
      Total Increases to Military Personnel Accounts.......        416.4
------------------------------------------------------------------------


                       MILITARY PERSONNEL ACCOUNTS
               [Reductions in end strength underexecution]
------------------------------------------------------------------------
                                                              Conference
                                                              agreement
------------------------------------------------------------------------
Army.......................................................         68.8
US Marine Corps............................................         15.0
Air Force..................................................         51.7
US Marine Corps Reserve....................................          0.7
Air National Guard.........................................          0.9
Unemployment Compensation:
    Army...................................................          2.1
    Navy...................................................          1.4
    US Marine Corps........................................          0.7
    Air Force..............................................          0.6
Permanent Change of Station
    Navy...................................................          2.0
    Army Reserve...........................................          2.5
 
                           Other
Air Force..................................................          8.7
Army Reserve...............................................          2.1
 
                Foreign Currency Fluctuation
Army.......................................................        117.0
Navy.......................................................         35.0
US Marine Corps............................................          9.6
Air Force..................................................         97.6
                                                            ------------
      Total Reductions Military Personnel..................        416.4
------------------------------------------------------------------------

                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Temporary exemption of Director of the National Security 
         Agency from limitations on number of Air Force officers 
         above major general
       The Senate amendment contained a provision (sec. 425) that 
     would temporarily exempt the Air Force officer serving as the 
     Director of the National Security Agency from the limitations 
     on the number of Air Force officers authorized to serve on 
     active duty in grades above major general.
       The House bill contained no similar amendment.
       The Senate recedes.

                   Title V--Military Personnel Policy


                     LEGISLATIVE PROVISIONS ADOPTED

                  Subtitle A-Officer Personnel Policy

     Eligibility of Army and Air Force reserve colonels and 
         brigadier generals for position vacancy promotions (sec. 
         501)
       The Senate amendment contained a provision (sec. 501) that 
     would authorize the Secretary of the Army to use a single 
     selection board to recommend Army Reserve colonels and 
     brigadier generals for assignment to vacancy positions and to 
     recommend colonels and brigadier generals for promotion.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend 
     similar authority to the Secretary of the Air Force.
     Flexibility in establishing promotion zones for Coast Guard 
         Reserve officers (sec. 502)
       The Senate amendment contained a provision (sec. 502) that 
     would authorize the Secretary of Transportation the same 
     flexibility as secretaries of the military departments to 
     establish promotion zones for the reserve officers based on 
     service need.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Time for release of reports of officer promotion selection 
         boards (sec. 503)
       The Senate amendment contained a provision (sec. 503) that 
     would authorize the Secretary of Defense to make public the 
     names of officers recommended for promotion by a selection 
     board prior to approval of the recommendation of the board by 
     the President.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Clarification of requirements for composition of active-duty 
         list selection boards when reserve officers are under 
         consideration (sec. 504)
       The House bill contained a provision (sec. 505) that would 
     amend section 612 of title 10, United States Code, to specify 
     that reserve officers serving on active duty may be appointed 
     to serve on promotion boards even though they are not on the 
     active-duty list.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority to issue posthumous commissions in case of members 
         dying before official recommendation for appointment or 
         promotion is approved by Secretary concerned (sec. 505)
       The House bill contained a provision (sec. 502) that would 
     clarify that the secretary concerned may confer posthumous 
     commissions in cases where military members die prior to 
     approval of an official recommendation for appointment or 
     promotion.
       The Senate amendment contained a similar provision (sec. 
     504).
       The Senate recedes.
     Technical corrections relating to retired grade rule for Army 
         and Air Force officers (sec. 506)
       The House bill contained a provision (sec. 503) that would 
     eliminate conflicting provisions regarding the time-in-grade 
     requirement to retire at the current grade held by a reserve 
     component officer.
       The Senate amendment contained a similar provision (sec. 
     509).
       The House recedes.
     Grade of chiefs of reserve components and directors of 
         National Guard components (sec. 507)
       The Senate amendment contained a provision (sec. 510) that 
     would require the secretaries of the military departments to, 
     within 90 days of enactment of this Act, increase the grade 
     of the Chief of Army Reserve, Chief of Naval Reserve, Chief 
     of Air Force Reserve, Director of Army National Guard and 
     Director of Air National Guard to lieutenant general or, in 
     the case of the Navy, vice admiral.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include the 
     Commander, Marine Forces Reserve, would retain the 
     requirements in current law that the reserve component chiefs 
     be joint qualified while extending the time period in which 
     the Secretary of Defense may waive the joint qualification 
     requirement by one year through fiscal year 2003, would 
     require the reserve component chief to be appointed to a 
     three-star grade within 12 months of enactment, and would 
     amend section 525b, title 10, United States Code, to increase 
     the current limit on the number of officers that may serve on 
     active duty in grades above major general or, in the case of 
     the Navy, rear admiral, while maintaining the limit on the 
     number of general and flag officers.
     Revision to rules for entitlement to separation pay for 
         regular and reserve officers (sec. 508)
       The House bill contained a provision (sec. 517) that would 
     clarify that the separation of a reserve officer on active 
     duty who was not selected for promotion twice to the same 
     grade and who subsequently declines selective continuation 
     shall be considered subject to involuntary separation and 
     eligible for separation pay.
       The Senate amendment contained a provision (sec. 573) that 
     would make an officer who has twice failed selection for 
     promotion to the next higher grade and who was offered the 
     opportunity to continue on active duty, and who declines this 
     offer, ineligible to receive involuntary separation pay.
       The Senate recedes with an amendment that would make any 
     officer who twice fails selection for promotion to the next 
     higher grade, and is offered the opportunity to continue on 
     active duty until the earliest point of eligibility for 
     retirement and declines this offer ineligible to receive 
     separation pay. Any officer who twice fails selection for 
     promotion to the next higher grade, is offered selective 
     continuation for a period that would not permit him to serve 
     until eligible for retirement, and subsequently declines this 
     offer would be eligible for separation pay.

             Subtitle B--Reserve Component Personnel Policy

     Exemption from active-duty list for reserve officers on 
         active duty for a period of three years or less (sec. 
         521)
       The House bill contained a provision (sec. 511) that would 
     exclude certain reserve component officers serving on active 
     duty for periods of three years or less from the active duty 
     list for promotion purposes.
       The Senate amendment contained a similar provision (sec. 
     505).
       The Senate recedes.
     Termination of application requirement for consideration of 
         officers for continuation on the reserve active-status 
         list (sec. 522)
       The House bill contained a provision (sec. 513) that would 
     terminate the requirement that a reserve officer apply for 
     continuation on the reserve active-status list.
       The Senate amendment contained a similar provision (sec. 
     508).
       The House recedes.
     Authority to retain Air Force reserve officers in all medical 
         specialties until specified age (sec. 523)
       The House bill contained a provision (sec. 514) that would 
     authorize the Secretary of

[[Page 21681]]

     the Air Force to extend the service of medical service corps 
     and biomedical sciences officers to age 67.
       The Senate amendment contained a similar provision (sec. 
     507).
       The Senate recedes with a clarifying amendment.
     Authority for provision of legal services to reserve 
         component members following release from active duty 
         (sec. 524)
       The House bill contained a provision (sec. 516) that would 
     authorize legal services assistance to reservists, who serve 
     on active duty for more than 29 days, and their dependents 
     for a period not to exceed twice the length of time served on 
     active duty.
       The Senate amendment contained a similar provision (sec. 
     695).
       The House recedes with a clarifying amendment.
     Extension of involuntary civil service retirement date for 
         certain reserve technicians (sec. 525)
       The House bill contained a provision (sec. 518) that would 
     authorize the secretaries of the military departments to 
     retain certain non-dual status reserve technicians until age 
     60.
       The Senate amendment contained no similar amendment.
       The Senate recedes with a clarifying amendment.

                   Subtitle C--Education and Training

     Eligibility of children of reserves for presidential 
         appointment to service academies (sec. 531)
       The Senate amendment contained a provision (sec. 541) that 
     would make the children of members of the reserve components 
     and retired or retirement-eligible reservists eligible for 
     presidential appointments to the service academies on the 
     same basis as children of active duty or retired active duty 
     personnel.
       The House bill contained no similar provision.
       The House recedes.
     Selection of foreign students to receive instruction at 
         service academies (sec. 532)
       The Senate amendment contained a provision (sec. 542) that 
     would require the secretaries of the military departments to 
     give priority consideration among foreign students applying 
     for admission to the service academies to those who have a 
     national service obligation upon graduation from the academy.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Revision of college tuition assistance program for members of 
         Marine Corps Platoon Leaders Class program (sec. 533)
       The House bill contained a provision (sec. 521) that would 
     authorize the use of the Marine Corps Platoon Leaders Class 
     tuition assistance program for the purpose of providing 
     educational assistance, to include legal training to 
     commissioned officers participating in the Platoon Leaders 
     Class program.
       The Senate amendment contained a provision (sec. 544) that 
     would authorize members of the Marine Corps Platoon Leaders 
     Class to continue to receive tuition assistance while in 
     pursuit of an undergraduate degree. The Senate amendment also 
     contained a related provision (sec. 604) that would clarify 
     that the limitation on credible service computation as a 
     result of accepting tuition assistance applies only to 
     service as an enlisted member and not as a commissioned 
     officer.
       The House recedes with an amendment that would combine the 
     three provisions.
     Review of allocation of Junior Reserve Officers Training 
         Corps units among the services (sec. 534)
       The House bill contained a provision (sec. 522) that would 
     require the Secretary of Defense to review and redistribute 
     the current service Junior Reserve Officers Training Corps 
     allocations for fiscal years 2001 through 2006 to ensure the 
     most efficient and effective allocation of the 3,500 
     authorized programs.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority for Naval Postgraduate School to enroll certain 
         defense industry civilians in specified programs relating 
         to defense product development (sec. 535)
       The House bill contained a provision (sec. 523) that would 
     authorize the Secretary of the Navy to enroll up to ten 
     defense-industry civilians at any one time at the Naval 
     Postgraduate School in a defense product development 
     curriculum leading to the award of a masters degree.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

           Subtitle D--Decorations, Awards, and Commendations

     Limitation on award of Bronze Star to members in receipt of 
         Imminent Danger Pay (sec. 541)
       The conference agreement includes a provision that would 
     limit the award of the Bronze Star Medal to members of the 
     armed forces who are eligible to receive Imminent Danger Pay 
     at the time of the events for which the medal is awarded.
     Consideration of proposals for posthumous or honorary 
         promotions or appointments of members or former members 
         of the armed forces and other qualified persons (sec. 
         542)
       The House bill contained a provision (sec. 533) that would 
     authorize members of Congress to request that the secretary 
     of a military department review a proposal for posthumous or 
     honorary promotion, or appointment of a member or former 
     member of the armed forces or other person. The secretary of 
     the military department would review the request on the 
     merits and provide the Committees on Armed Services of the 
     Senate and the House of Representatives and the member of 
     Congress who initiated the request written notice of one of 
     the following determinations:
       (1) the request for appointment or promotion does not 
     warrant approval;
       (2) the request for appointment or promotion warrants 
     approval on the merits and authorization in law is required 
     and recommended;
       (3) the request for appointment or promotion warrants 
     approval on the merits and has been recommended to the 
     President as an exception to policy; and
       (4) the request for appointment or promotion warrants 
     approval on the merits and authorization in law is required, 
     but not recommended.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Waiver of time limitations for award of certain decorations 
         to certain persons (sec. 543)
       The House bill contained a provision (sec. 534) that would 
     waive the statutory time limitations for the award of the 
     Distinguished Flying Cross to individuals recommended by the 
     secretaries of the military departments.
       The Senate amendment contained a similar provision (sec. 
     572).
       The House recedes.
     Addition of certain information to markers on graves 
         containing remains of certain unknowns from the U.S.S. 
         Arizona who died in the Japanese attack on Pearl Harbor 
         on December 7, 1941 (sec. 544)
       The House bill contained a provision (sec. 535) that would 
     require the Secretary of the Army, based on a review of 
     existing information related to the interment of unknown 
     casualties from the U.S.S. Arizona, to provide the Secretary 
     of Veterans Affairs with information to be added to the 
     inscriptions on the grave markers of those unknowns who are 
     interred at the National Memorial Cemetery of the Pacific in 
     Honolulu, Hawaii.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress on the court-martial conviction of Captain 
         Charles Butler McVay, commander of the U.S.S. 
         Indianapolis, and on the courageous service of the crew 
         of that vessel (sec. 545)
       The House bill contained a provision (sec. 536) that would 
     express the sense of Congress that the commander of the 
     U.S.S. Indianapolis, (then Captain) Charles Butler McVay, 
     III, was not culpable for the sinking of his ship and that 
     the President should award the Presidential Unit Citation to 
     the final crew of the U.S.S. Indianapolis for courage and 
     fortitude after the torpedo attack.
       The Senate amendment contained a provision (sec. 575) that 
     would express the sense of Congress that, on the basis of 
     facts presented in a public hearing conducted by the 
     Committee on Armed Services of the Senate on September 14, 
     1999, the American people should now recognize Captain 
     McVay's lack of culpability for the loss of the U.S.S. 
     Indianapolis and the lives of the men who died as a result of 
     the sinking; that Captain McVay's military record now reflect 
     that he is exonerated for the loss of his ship and crew; and 
     that Congress strongly encourages the Secretary of the Navy 
     to award a Navy Unit Commendation to the U.S.S. Indianapolis 
     and its final crew.
       The House recedes with a clarifying amendment.
     Posthumous advancement on retired list of Rear Admiral 
         Husband E. Kimmel and Major General Walter C. Short, 
         senior officers in command in Hawaii on December 7, 1941 
         (sec. 546)
       The House bill contained a provision (sec. 537) that would 
     request the President to advance Rear Admiral (Retired) 
     Husband E. Kimmel, U.S. Navy, to admiral and Major General 
     (Retired) Walter C. Short, U.S. Army, to lieutenant general 
     on the retired list with no increase in compensation or 
     benefits. The provision would also express the sense of 
     Congress that both officers were professional and competent 
     and the losses incurred during the attack on Pearl Harbor 
     were not the result of dereliction in the performance of 
     duties in the case of either officer.
       The Senate amendment contained a similar provision (sec. 
     576).
       The Senate recedes with a clarifying amendment.
     Commendation of citizens of Remy, France, for World War II 
         actions (sec. 547)
       The House bill contained a provision (sec. 538) that would 
     commend the bravery and

[[Page 21682]]

     honor of the citizens of Remy, France, for their action to 
     bury Lieutenant Houston Braly, 364th Fighter Group, during 
     World War II. The provision would also recognize the efforts 
     of the surviving members of the 364th Fighter Group to raise 
     funds to restore the stained glass windows of Remy's 13th 
     century church that were destroyed during World War II.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority for award of the medal of honor to William H. 
         Pitsenbarger for valor during the Vietnam War (sec. 548)
       The conferees included a provision that would waive the 
     statutory time limits and authorize the President to 
     posthumously award the Medal of Honor to William H. 
     Pitsenbarger of Piqua, Ohio, for valor during the Vietnam 
     War.

       Subtitle E--Military Justice and Legal Assistance Matters

     Recognition by states of military testamentary instruments 
         (sec. 551)
       The House bill contained a provision (sec. 541) that would 
     amend chapter 53 of title 10, United States Code, to exempt a 
     military testamentary instrument from any requirement of 
     form, formality, or recording before probate under the laws 
     of a state, and would provide that such an instrument has the 
     same legal effect as a testamentary instrument prepared and 
     executed in accordance with the laws of the state in which it 
     is presented for probate. The provision would define 
     ``military testamentary instrument'' and would establish 
     requirements for the execution of such an instrument.
       The Senate amendment contained an identical provision (sec. 
     574).
       The conference agreement includes this provision.
     Policy concerning rights of individuals whose names have been 
         entered into Department of Defense official criminal 
         investigative reports (sec. 552)
       The House bill contained a provision (sec. 542) that would 
     require the Department of Defense to apply the ``probable 
     cause'' standard before ``titling'' or designating a person 
     as a suspect in any official report or in a central index. 
     The provision would also require the Secretary of Defense to 
     establish a uniform standard for removal of a person's name 
     from an official report and any central index if it is 
     subsequently determined that there is not probable cause to 
     believe that that person committed the crime.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Defense to establish policy that creates a 
     uniform process that affords individuals titled in criminal 
     investigative reports or indexed in a central index an 
     opportunity to obtain a review of such actions. If it is 
     determined that an entry was made contrary to Department of 
     Defense requirements, the name and identifying information of 
     the person would be expunged from these records.
       The conferees direct the Secretary of Defense to: (1) 
     review policies and procedures addressing the degree of 
     evidence or information that must exist before titling and 
     indexing occurs, to include the weight, if any, given to 
     initial allegations; (2) review the sufficiency of training 
     provided to individuals with access to the Defense Clearance 
     and Investigative Index (DCII) regarding the significance of 
     criminal investigative entries in the DCII; (3) review the 
     use of criminal investigative data in the DCII to determine 
     if it is being used properly and examine the adequacy of 
     available sanctions for those who improperly use such 
     information; and (4) provide other pertinent information 
     discovered in the review process. The Secretary shall submit 
     a report, with findings and recommendations, to the 
     congressional defense committees by April 1, 2001.
     Limitation on secretarial authority to grant clemency for 
         military prisoners serving sentence of confinement for 
         life without eligibility for parole (sec. 553)
       The House bill contained a provision (sec. 544) that would 
     amend Article 74 of the Uniform Code of Military Justice (10 
     U.S.C. 874) to prohibit the secretary concerned from 
     remitting or suspending that part of a court-martial sentence 
     that extended to confinement for life without eligibility for 
     parole, and would make conforming and clarifying amendments 
     to other provisions of the Uniform Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     authority of the secretary concerned to remit or suspend such 
     a sentence to situations in which the person had served at 
     least 20 years confinement. Such authority could not be 
     redelegated.
     Authority for civilian special agents of the military 
         department criminal investigative organizations to 
         execute warrants and make arrests (sec. 554)
       The House bill contained a provision (sec. 545) that would 
     amend chapter 373 of title 10, United States Code, to 
     authorize the secretaries of the military departments to 
     grant the authority to execute and serve warrants and make 
     arrests to the civilian special agents of their respective 
     military criminal investigative organizations, subject to 
     certain guidelines.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Requirement for verbatim record in certain special court-
         martial cases (sec. 555)
       The Senate amendment contained a provision (sec. 577) that 
     would amend Article 54 of the Uniform Code of Military 
     Justice (10 U.S.C. 854) to require that a verbatim record of 
     trial be prepared in each special court-martial in which the 
     sentence adjudged includes a bad-conduct discharge, 
     confinement for more than six months, or forfeiture of pay 
     for more than six months.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Commemoration of the fiftieth anniversary of the Uniform Code 
         of Military Justice (sec. 556)
       The Senate amendment contained a provision (sec. 1051) that 
     would request the President to issue a proclamation 
     commemorating the fiftieth anniversary of the Uniform Code of 
     Military Justice, which was enacted May 5, 1950, and call 
     upon the Department of Defense, the armed forces, and the 
     United States Court of Appeals for the Armed Forces to 
     commemorate the occasion in a suitable manner.
       The House bill contained no similar provision.
       The House recedes.

               Subtitle F--Matters Relating to Recruiting

     Army recruiting pilot programs (sec. 561)
       The Senate amendment contained a provision (sec. 551) that 
     would require the Secretary of the Army to conduct three 
     distinct five-year pilot programs to assess their 
     effectiveness for creating enhanced opportunities for 
     recruiters and to improve the effectiveness of Army 
     recruiting programs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would reduce the 
     scope of the civilian contract recruiter pilot program and 
     would require recruiters assigned to vocational schools and 
     community colleges to be assigned those duties as their 
     primary responsibility.
     Enhancement of recruitment market research and advertising 
         programs (sec. 562)
       The Senate amendment contained a provision (sec. 552) that 
     would direct the Secretary of Defense to take the necessary 
     actions to enhance joint and service recruiting and 
     advertising programs through an aggressive market research 
     program, and would waive certain requirements of the 
     Paperwork Reduction Act to enhance the flexibility of the 
     Secretary of Defense and the military services to react to 
     changes in the recruiting market.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Access to secondary schools for military recruiting purposes 
         (sec. 563)
       The Senate amendment contained a provision (sec. 553) that 
     would, effective July 1, 2002, require local educational 
     agencies to provide military recruiters access to secondary 
     schools on the same basis as colleges, universities, and 
     private sector employers, unless the governing body of the 
     local educational agency acts by majority vote to deny access 
     to military recruiters. The provision would also establish a 
     process to ensure that secondary schools provide military 
     recruiters access to the campus, directories, and student 
     lists on the same basis as that afforded colleges, 
     universities, and private sector employers. The provision 
     would require the relevant military service to send a senior 
     official to meet with the local educational agency within 120 
     days of a military recruiter being denied access. If the 
     secondary school continues to deny access to military 
     recruiters the Secretary of Defense shall, within 60 days, 
     communicate with the governor of the state requesting 
     assistance in restoring access for military recruiters. A 
     copy of this correspondence shall be provided to the 
     Secretary of Education. If, one year after the date of the 
     transmittal of the letter from the Secretary of Defense, the 
     local educational agency continues to deny access to at least 
     two of the armed forces, the Secretary of Defense shall 
     notify the Committees on Armed Services of the Senate and the 
     House of Representatives, and the members of the House of 
     Representatives and the Senate who represent the district or 
     districts in which the local educational agency operates.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     definition of the senior official who shall visit schools 
     that deny access to include colonels, or in the case of the 
     Navy, Captains, and would make other technical changes.
     Pilot program to enhance military recruiting by improving 
         military awareness of school counselors and educators 
         (sec. 564)
       The House bill contained a provision (sec. 555) that would 
     require the Secretary of Defense to conduct a three-year 
     pilot program

[[Page 21683]]

     to improve communications with student counselors and 
     educators by providing funding, assistance, and information 
     to an existing interactive internet site designed to provide 
     information and services to employees of local educational 
     agencies and institutions of higher learning.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Subtitle G--Other Matters

     Extension to end of calendar year of expiration date for 
         certain force drawdown transition authorities (sec. 571)
       The House bill contained a provision (sec. 504) that would 
     extend the expiration date of the current drawdown transition 
     authorities through December 31, 2001.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Voluntary separation incentive (sec. 572)
       The House bill contained a provision (sec. 506) that would 
     authorize service members who simultaneously receive retired 
     pay and voluntary separation incentive pay to terminate their 
     eligibility for the voluntary separation incentive pay and 
     would permit the retired member to reimburse the government 
     for the amount of the voluntary separation incentive pay 
     received without concurrently increasing the amount of the 
     voluntary separation incentive pay that is owed.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Congressional review period for assignment of women to duty 
         on submarines and for any proposed reconfiguration or 
         design of submarines to accommodate female crew members 
         (sec. 573)
       The House bill contained a provision (sec. 507) that would 
     require the Secretary of Defense to provide Congress written 
     notification and wait until 120 days of continuous 
     legislative session pass prior to implementating any policy 
     change affecting the current male-only assignment policy for 
     submarines and prior to the expenditure of any funds to 
     reconfigure or design a submarine to accommodate the 
     assignment of female crew members.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     required waiting period between notification of Congress and 
     the implementation of any policy change with regard to the 
     assignment of females to submarines or expenditure of funds 
     for design or reconfiguration of a submarine to accommodate 
     females to 30 days in which both the House of Representatives 
     and the Senate are in session.
     Management and per diem requirements for members subject to 
         lengthy or numerous deployments (sec. 574)
       The Senate amendment contained a provision (sec. 578) that 
     would amend section 586 of the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65) to change the 
     requirement for an officer in the grade of general or admiral 
     to approve deployments of personnel who would be away from 
     home more than 200 of the past 365 days to require that the 
     designated component commander for the member's armed force 
     approve deployments of personnel who would be away from home 
     more than 200 of the past 365 days; to change the point at 
     which the high-deployment per diem allowance would be paid 
     from 251 days or more of the preceding 365 days to 501 days 
     or more of the preceding 730 days. The provision would also 
     require the Secretary of Defense to submit a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives not later than March 31, 2002, on the 
     administration of this provision and make recommendations for 
     revision, as the Secretary deems appropriate.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     point at which the high deployment per diem allowance would 
     be paid from 501 days or more of the preceding 730 days to 
     401 days or more of the preceding 730 days.
       The conferees strongly support the position of the 
     Department of Defense that any high deployment per diem 
     payments should be made from the operations and maintenance 
     accounts. The conferees believe that deploying service 
     members in excess of 400 days in any 730 day period cannot be 
     attributable to any factor other than operational necessity. 
     As such, high deployment per diem is an operational cost and 
     must be paid from the operations and maintenance accounts.
     Pay in lieu of allowance for funeral honors duty (sec. 575)
       The House bill contained a provision (sec. 551) that would 
     authorize a reserve component member assigned to a funeral 
     honors detail for the funeral of a veteran to be compensated 
     at the same rate as the member would be compensated for 
     participating in inactive-duty training.
       The Senate amendment contained a similar provision (sec. 
     603).
       The House recedes with a clarifying amendment.
     Test of ability of reserve component intelligence units and 
         personnel to meet current and emerging defense 
         intelligence needs (sec. 576)
       The House bill contained a provision (sec. 552) that would 
     require the Secretary of Defense to conduct a three-year test 
     to determine the most effective peacetime structure and 
     operational employment of reserve component intelligence 
     assets for meeting future Department of Defense peacetime 
     operational intelligence requirements and to establish a 
     means of coordinating the transition of the peacetime 
     operational support network into wartime requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     National Guard Challenge Program (sec. 577)
       The House bill contained a provision (sec. 553) that would 
     authorize the head of a federal agency or department to 
     provide funds to the Secretary of Defense to support the 
     National Guard Challenge Program and would allow the 
     Secretary of Defense to expend those funds notwithstanding 
     the $62.5 million limit in defense funding established by 
     section 509(b) of title 32, United States Code. The provision 
     would also require the Secretary of Defense to establish 
     regulations for the Challenge Program.
       The Senate amendment contained a provision (sec. 910) that 
     would transfer oversight responsibility for the National 
     Guard Challenge Program from the Chief of the National Guard 
     Bureau to the Secretary of Defense, and would amend the 
     limitation on federal funding for the National Guard 
     Challenge Program to only Department of Defense funding.
       The Senate recedes with an amendment that would combine the 
     two provisions.
       The conferees note that the intent of the transfer of 
     responsibility for the National Guard Challenge Program to 
     the Secretary of Defense is to reaffirm the role of the 
     Secretary of Defense to establish policy for and oversight of 
     the operation of Department of Defense programs. It is not 
     the intent of the conferees that the National Guard Bureau 
     should lose its ability to administer this highly successful 
     program. Rather, the intent is that there be increased 
     oversight and direction by the Secretary of Defense.
     Study of use of civilian contractor pilots for operational 
         support missions (sec. 578)
       The House bill contained a provision (sec. 554) that would 
     require the Secretary of Defense to study the feasibility and 
     cost of using civilian contractor personnel as pilots and 
     other aircrew members to fly government aircraft performing 
     non-combat operational support missions world-wide.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reimbursement for expenses incurred by members in connection 
         with cancellation of leave on short notice (sec. 579)
       The House bill contained a provision (sec. 556) that would 
     authorize the service secretaries to reimburse members for 
     travel expenses when leave is canceled within 48 hours of 
     commencing due to mission requirements of a contingency 
     operation.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Authority for award of the Medal of Honor
       The House bill contained a provision (sec. 531) that would 
     waive the statutory time limitations for the award of the 
     Medal of Honor to Andrew J. Smith for valor during the Battle 
     of Honey Hill in South Carolina. The House bill also 
     contained a provision (sec. 532) that would waive the 
     statutory time limitations for the award of the Medal of 
     Honor to Ed W. Freeman for valor during the battle of the 
     IaDrang Valley in the Republic of Vietnam.
       The Senate amendment contained a provision (sec. 571) that 
     would waive the statutory time limits and authorize the 
     President to award the Medal of Honor to Ed W. Freeman of 
     Idaho for valor during the Vietnam Conflict; to James K. 
     Okubo of Detroit, Michigan for valor during World War II; and 
     to Andrew J. Smith of Massachusetts for valor during the 
     Civil War.
       The conferees note that Public Law 106-223, enacted on June 
     21, 2000, waived the statutory time limits and authorized the 
     President to award the Medal of Honor to Ed W. Freeman of 
     Idaho for valor during the Vietnam Conflict; to James K. 
     Okubo of Detroit, Michigan, for valor during World War II; 
     and to Andrew J. Smith of Massachusetts for valor during the 
     Civil War. The conferees recede from their respective 
     provisions.
     Collection and use of deoxyribonucleic acid identification 
         information from violent and sexual offenders in the 
         armed forces
       The House bill contained a provision (sec. 543) that would 
     require the secretaries of the military departments to 
     collect a deoxyribonucleic acid (DNA) sample from each member 
     of the armed forces who is, or has been, convicted of a 
     violent or sexual offense. The provision would further 
     require the Secretary of Defense to analyze each

[[Page 21684]]

     sample and furnish the results of each analysis to the 
     Federal Bureau of Investigation (FBI) for use in the Combined 
     DNA Index System.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recognize that the collection and indexing of 
     samples, as proposed in this provision, has merit, but 
     believe that this matter would be better addressed by general 
     legislation with government-wide application.
     Contingent exemption from limitation on number of Air Force 
         officers serving on active duty in grades above major 
         general
       The Senate amendment contained a provision (sec. 511) that 
     would exempt an Air Force officer serving in the grade of 
     Lieutenant General or General from the limitations on the 
     number of Air Force officers serving on active duty in grades 
     above major general when either the Commander-in-Chief, 
     United States Transportation Command, or the Commander-in-
     Chief, United States Space Command, is an officer from a 
     service other than the Air Force.
       The House bill contained no similar provision.
       The Senate recedes.
     Joint Officer Management
       The Senate amendment contained provisions (sec. 521-527) 
     that would streamline the designation and management of joint 
     speciality officers by simplifying the requirements for 
     designation as a joint speciality officer, requiring Joint 
     Professional Military Education to be conducted in residence 
     and by establishing promotion objectives for joint speciality 
     officers.
       The House bill contained no similar provision.
       The Senate recedes.
     Military Voting Rights Act of 2000
       The Senate bill contained provisions (sec. 561-563) that 
     would amend the Soldiers' and Sailors' Civil Relief Act of 
     1940 (50 U.S.C. App. 501) to preclude a military member from 
     losing a claim to state residency for the purpose of voting 
     in federal and state elections because of absence due to 
     military orders, and would also amend the Uniformed and 
     Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff) to 
     require each state to permit absent military voters to use 
     absentee registration procedures and to vote by absentee 
     ballot in elections for states and local offices, in addition 
     to federal offices, as provided in current law.
       The House amendment contained no similar provision.
       The Senate recedes.
     Preparation, participation, and conduct of athletic 
         competitions and small arms competitions by the National 
         Guard and members of the National Guard
       The Senate amendment contained a provision (sec. 580) that 
     would permit National Guard units and personnel to prepare 
     for, participate in, and conduct athletic competitions and 
     small arms competitions.
       The House bill contained no similar provision.
       The Senate recedes.
     Repeal of contingent funding increase for Junior Reserve 
         Officers Training Corps
       The Senate amendment contained a provision (sec. 543) that 
     would repeal the requirement that any amount in excess of 
     $62,500,000 appropriated for the National Guard Challenge 
     Program be made available for the Junior Reserve Officers 
     Training Corps.
       The House bill contained no similar provision.
       The Senate recedes.
     Review of actions of selection boards
       The Senate amendment contained a provision (sec. 506) that 
     would authorize the secretary concerned to correct a military 
     personnel record in accordance with a recommendation made by 
     a special board. The remedy could be restoration to active 
     duty or status, if the person was separated, retired, or 
     transferred to the retired or inactive reserve as the result 
     of a recommendation made by a selection board; or the person 
     could elect to receive back pay and allowances in lieu of 
     restoration. If a special board did not recommend the 
     correction, the action of the original selection board would 
     be considered as final. The secretaries concerned shall 
     prescribe regulations to carry out this provision, which 
     would be subject to the approval of the Secretary of Defense.
       The provision would require exhaustion of a person's 
     administrative remedies within the military department 
     concerned before the person could obtain relief in a judicial 
     proceeding. The provision would not limit the jurisdiction of 
     any federal court to determine the validity of any statute, 
     regulation, or policy, and also would not limit the 
     secretaries' authority to correct military records through 
     boards for the correction of military records under section 
     1552 of title 10, United States Code.
       The provision would also amend section 628 of title 10, 
     United States Code, the statute dealing with promotion 
     special selection boards, to require exhaustion of a person's 
     remedies before a special selection board before relief could 
     be obtained in a judicial proceeding.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees believe that, while such an approach may have 
     merit, this issue requires further study.

           Title VI-Compensation and Other Personnel Benefits


                     LEGISLATIVE PROVISIONS ADOPTED

                     Subtitle A--Pay and Allowances

     Increase in basic pay for fiscal year 2001 (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     waive section 1009 of title 37, United States Code, and 
     increase the rates of basic pay for members of the uniformed 
     services by 3.7 percent, effective January 1, 2001.
       The Senate amendment contained a similar provision (sec. 
     601).
       The House recedes.
     Additional restructuring of basic pay rates for enlisted 
         members (sec. 602)
       The Senate amendment contained a provision (sec. 610A) that 
     would, effective October 1, 2000, restructure the basic pay 
     tables for enlisted members in grades E-5, E-6, and E-7 to 
     increase the basic pay rates for members in these grades.
       The House bill contained no similar provision.
       The House recedes with an amendment that would, effective 
     July 1, 2001, restructure the basic pay tables for enlisted 
     members in grades E-5, E-6, and E-7 to increase the basic pay 
     rates for members in these grades, and would authorize the 
     Secretary of Defense to, on a one-time basis, adjust the 
     basic pay tables for enlisted members to increase the rate of 
     basic pay. The Secretary of Defense would be required to 
     submit a legislative proposal incorporating any adjustments 
     with the fiscal year 2002 legislative proposals. In the event 
     the Secretary of Defense elects not to use the one-time 
     authority to adjust the basic pay tables for other enlisted 
     members, the increases for enlisted members in grades E-5 
     through E-7 would be effective July 1, 2001.
     Revised method for calculation of basic allowance for 
         subsistence (sec. 603)
       The House bill contained a provision (sec. 602) that would 
     repeal the basic allowance for subsistence transition 
     program, effective October 1, 2001, and establish a process 
     for increasing the basic allowance for subsistence rate in 
     effect by the amount of the increase in food costs, as 
     determined by the Department of Agriculture.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Family subsistence supplemental allowance for low-income 
         members of the Armed Forces (sec. 604)
       The House bill contained a provision (sec. 603) that would 
     authorize the Secretary of Defense to establish a five-year 
     program to pay members determined to be qualified for food 
     stamps using the same gross income standards used by state 
     officials to determine food stamp eligibility, except that 
     the value of the member's basic allowance for housing will be 
     included even if the member resides in government housing, a 
     monthly amount not to exceed $500 per month, to supplement 
     the basic allowance for subsistence.
       The Senate amendment contained a provision (sec. 610) that 
     would authorize, for a five-year period, a special 
     subsistence allowance of $180 per month payable to enlisted 
     personnel in grades E-5 and below who demonstrate eligibility 
     for food stamps.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to establish a five-year program to pay 
     members determined to be qualified for food stamps.
     Basic allowance for housing (sec. 605)
       The House bill contained a provision (sec. 604) that would 
     repeal the requirement that service members pay 15 percent of 
     housing costs out-of-pocket and would authorize the Secretary 
     of Defense to increase the basic allowance for housing to 
     eliminate out-of-pocket expenses for service members by 
     fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     605). The Senate amendment also contained a provision (sec. 
     610B) that would permit service members who make a low-cost 
     or no-cost permanent change of station move, while remaining 
     in the same quarters occupied during their previous 
     assignment, eligible for the higher of the basic allowance 
     for housing rate from the previous permanent station or the 
     new permanent station.
       The Senate recedes with an amendment that would combine the 
     provisions.
     Additional amount available for fiscal year 2001 increase in 
         basic allowance for housing inside the United States 
         (sec. 606)
       The House bill contained a provision (sec. 610) that would 
     increase the funding available for the basic allowance for 
     housing by $30.0 million in order to reduce the out-of-pocket 
     costs by an additional one-half of one percent.
       The Senate amendment contained no similar provision.
       The Senate recedes.

[[Page 21685]]


     Equitable treatment of junior enlisted members in computation 
         of basic allowance for housing (sec. 607)
       The House bill contained a provision (sec. 605) that would 
     establish a single housing rate for members in grades E-1 
     through E-4 with dependents and would increase the basic 
     allowance for housing rate to members above the rate 
     previously paid to members in grade E-4.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Eligibility of members in grade E-4 to receive basic 
         allowance for housing while on sea duty (sec. 608)
       The House bill contained a provision (sec. 606) that would, 
     effective October 1, 2001, authorize the payment of the basic 
     allowance for housing to members serving in the grade of E-4, 
     without dependents, who are assigned to sea duty in ships.
       The Senate amendment contained a similar provision (sec. 
     606), that would be effective upon enactment of this Act.
       The House recedes.
     Personal money allowance for senior enlisted members of the 
         armed forces (sec. 609)
       The House bill contained a provision (sec. 607) that would 
     authorize a $2,000 per year personal money allowance to 
     senior enlisted members in each of the armed forces.
       The Senate amendment contained a similar provision (sec. 
     607).
       The Senate recedes.
     Increased uniform allowances for officers (sec. 610)
       The House bill contained a provision (sec. 608) that would 
     increase the one-time initial uniform allowance paid to 
     officers from $200 to $400 and the one-time additional 
     uniform allowance paid to officers from $100 to $200.
       The Senate amendment contained a similar provision (sec. 
     608).
       The House recedes with a clarifying amendment.
     Cabinet-level authority to prescribe requirements and 
         allowance for clothing of enlisted members (sec. 611)
       The Senate amendment contained a provision (sec. 609) that 
     would authorize the Secretary of Defense, and the Secretary 
     of Transportation with respect to the Coast Guard when it is 
     not operating as a service of the Navy, to prescribe the 
     clothing to be furnished annually to enlisted members and to 
     establish the amount of the cash allowance paid when the 
     prescribed clothing is not provided.
       The House bill contained no similar provision.
       The House recedes.
     Increase in monthly subsistence allowance for members of 
         precommissioning programs (sec. 612)
       The House bill contained a provision (sec. 609) that would, 
     effective October 1, 2001, increase the minimum stipend paid 
     to senior Reserve Officers Training Corps (ROTC) cadets to 
     $250 per month, would establish the maximum monthly stipend 
     as $600 per month, and would provide the Secretary of Defense 
     the authority to establish a tiered-stipend system in order 
     to permit the monthly stipend to increase as the involvement 
     of the cadet in ROTC increases.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would, effective 
     October 1, 2001, establish the pay rates for cadets and 
     midshipmen at the service academies at 35 percent of the 
     basic pay of an O-1 with less that two years of service and 
     would increase the maximum monthly ROTC stipend to $674.

           Subtitle B--Bonuses and Special and Incentive Pays

     Extension of certain bonuses and special pay authorities for 
         reserve forces (sec. 621)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for the special pay for health care 
     professionals who serve in the selected reserve in critically 
     short wartime specialities, the selected reserve reenlistment 
     bonus, the selected reserve enlistment bonus, special pay for 
     enlisted members of the selected reserve assigned to certain 
     high priority units, the selected reserve affiliation bonus, 
     the ready reserve enlistment and reenlistment bonus, and the 
     prior service enlistment bonus until December 31, 2001. The 
     provision would also extend the authority for repayment of 
     educational loans for certain health care professionals who 
     serve in the selected reserve until January 1, 2002.
       The Senate amendment contained an identical provision (sec. 
     611).
       The conference agreement includes this provision.
     Extension of certain bonuses and special pay authorities for 
         nurse officer candidates, registered nurses, and nurse 
         anesthetists (sec. 622)
       The House bill contained a provision (sec. 612) that would 
     extend the authority for the nurse officer candidate 
     accession program, the accession bonus for registered nurses, 
     and the incentive pay for nurse anesthetists until December 
     31, 2001.
       The Senate amendment contained an identical provision (sec. 
     612).
       The conference agreement includes this provision.
     Extension of authorities relating to payment of other bonuses 
         and special pays (sec. 623)
       The House bill contained a provision (sec. 613) that would 
     extend the authority for the aviation officer retention 
     bonus, reenlistment bonus for active members, special pay for 
     nuclear qualified officers extending the period of active 
     service, nuclear career accession bonus, and the nuclear 
     career annual incentive bonus to December 31, 2001, and would 
     extend the enlistment bonus for persons with critical skills 
     and the Army enlistment bonus to September 30, 2001.
       The Senate amendment contained a similar provision (sec. 
     613).
       The Senate recedes with an amendment that would remove the 
     references to the enlistment bonus for persons with critical 
     skills and the Army enlistment bonus in favor of a 
     consolidated enlistment bonus addressed elsewhere in this 
     conference agreement.
     Revision of enlistment bonus authority (sec. 624)
       The House bill contained a provision (sec. 618) that would 
     consolidate existing bonus authorities and establish a 
     maximum amount of $20,000 that may be paid to any enlistee.
       The Senate amendment contained a similar provision (sec. 
     621).
       The Senate recedes with a clarifying amendment.
     Consistency of authorities for special pay for reserve 
         medical and dental officers (sec. 625)
       The House bill contained a provision (sec. 614) that would 
     clarify that reserve medical and dental officers are paid 
     special pay in a consistent manner.
       The Senate amendment contained similar provision (sec. 
     614).
       The Senate recedes with a clarifying amendment.
     Elimination of required congressional notification before 
         implementation of certain special pay authority (sec. 
         626)
       The House bill contained a provision (sec. 620) that would 
     eliminate the requirement for the secretary concerned to 
     notify the Congress of the intent to pay special pay to 
     optometrists and nurse anesthetists.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Special pay for physician assistants of the Coast Guard (sec. 
         627)
       The House bill contained a provision (sec. 615) that would 
     extend the authority to pay special pay currently provided to 
     physician assistants in the military departments to physician 
     assistants in the Coast Guard.
       The Senate amendment contained a similar provision (sec. 
     615).
       The House recedes.
     Authorization of special pay and accession bonus for pharmacy 
         officers (sec. 628)
       The Senate amendment contained a provision (sec. 616) that 
     would authorize the secretary of a military department, or in 
     the case of the Public Health Service, the Secretary of 
     Health and Human Services, to pay a special pay and an 
     accession bonus for pharmacy officers.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Correction of references to Air Force veterinarians (sec. 
         629)
       The Senate amendment contained a provision (sec. 617) that 
     would clarify that the special pay for board certified 
     veterinarians in the armed forces and the Public Health 
     Service includes Air Force biomedical sciences officers who 
     hold a degree in veterinary medicine.
       The House bill contained no similar provision.
       The House recedes.
     Career sea pay (sec. 630)
       The House bill contained a provision (sec. 617) that would 
     authorize the secretary of a military department to establish 
     the rates of career sea pay up to a limit of $750 per month 
     and would increase the maximum career sea pay premium pay 
     from $100 per month to $350 per month for consecutive or 
     cumulative duty at sea.
       The Senate amendment contained a similar provision (sec. 
     619).
       The House recedes with a clarifying amendment.
     Increased maximum rate of special duty assignment pay (sec. 
         631)
       The House bill contained a provision (sec. 616) that would, 
     effective October 1, 2001, increase the limit on special duty 
     assignment pay from $275 per month to $600 per month.
       The Senate amendment contained a similar provision (sec. 
     620) that would be effective October 1, 2000.
       The House recedes.
     Entitlement of members of the National Guard and other 
         reserves not on active duty to receive special duty 
         assignment pay (sec. 632)
       The Senate amendment contained a provision (sec. 622) that 
     would authorize members of the Selected Reserve who are not 
     on active duty to receive special duty assignment pay.
       The House bill contained no similar provision.

[[Page 21686]]

       The House recedes with an amendment that would limit the 
     amount of special duty assignment pay for members of the 
     Selected Reserve not on active duty to one day of pay for 
     each drill period in which the reserve member successfully 
     participates each month.
     Authorization of retention bonus for members of the armed 
         forces qualified in a critical military skill (sec. 633)
       The House bill contained a provision (sec. 619) that would, 
     effective 90 days after the Secretary of Defense notifies 
     Congress of the details of the implementation plan, establish 
     a retention bonus, providing payments up to $200,000 over a 
     career, for members qualified in a critical military skill. 
     The authority for this bonus would expire on December 31, 
     2001.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Entitlement of active duty officers of the Public Health 
         Service Corps to special pays and bonuses of health 
         professional officers of the armed forces (sec. 634)
       The Senate amendment contained a provision (sec. 618) that 
     would make the special pays and bonuses for active duty 
     officers of the Public Health Service Corps equal to those of 
     health professional officers of the armed forces.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Subtitle C--Travel and Transportation Allowances
     Advance payments for temporary lodging of members and 
         dependents (sec. 641)
       The House bill contained a provision (sec. 631) that would 
     authorize advance payment of temporary lodging and living 
     expenses incident to permanent changes in station.
       The Senate amendment contained a similar provision (sec. 
     631).
       The Senate recedes.
     Additional transportation allowance regarding baggage and 
         household effects (sec. 642)
       The House bill contained a provision (sec. 632) that would 
     authorize the secretary concerned to reimburse a member for 
     mandatory pet quarantine fees for household pets up to a 
     maximum of $275 when the fees are incident to a permanent 
     change of station.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Incentive for shipping and storing household goods in less 
         than average weights (sec. 643)
       The Senate amendment contained a provision (sec. 632) that 
     would authorize the secretary concerned to pay a service 
     member a share of the amount of savings resulting from the 
     service member shipping or storing a lower household good or 
     baggage weight than the average weight shipped or stored by 
     members of the same grade and dependent status.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to develop regulations for this program 
     in order to ensure that members of one service do not receive 
     a benefit for which members of another service may not be 
     eligible.
     Equitable dislocation allowances for junior enlisted members 
         (sec. 644)
       The House bill contained a provision (sec. 633) that would 
     require the Secretary of Defense to increase the amount of 
     dislocation allowance paid to service members with dependents 
     in pay grades E-1 through E-4 to the amount paid to service 
     members in pay grade E-5.
       The Senate amendment contained no similar amendment.
       The Senate recedes.
     Authority to reimburse military recruiters, senior ROTC 
         cadre, and Military Entrance Processing personnel for 
         certain parking expenses (sec. 645)
       The House bill contained a provision (sec. 634) that would 
     authorize the Secretary of Defense to reimburse service 
     members and civilian employees for expenses incurred in 
     parking their privately owned vehicles at their duty 
     locations if they are assigned to duty as a recruiter, with a 
     military entrance processing facility or with a Senior 
     Reserve Officer Training Corps detachment.
       The Senate amendment contained a similar provision (sec. 
     661).
       The House recedes with an amendment that would make the 
     provision effective October 1, 2001.
     Expansion of funded student travel for dependents (sec. 646)
       The House bill contained a provision (sec. 635) that would 
     authorize funded student travel payments to be made for 
     dependents pursuing graduate and vocational education 
     programs in addition to secondary and undergraduate education 
     programs.
       The Senate amendment contained a similar provision (sec. 
     633).
       The Senate recedes.

          Subtitle D--Retirement and Survivor Benefit Matters

     Exception to high-36 month retired pay computation for 
         members retired following a disciplinary reduction in 
         grade (sec. 651)
       The Senate amendment contained a provision (sec. 641) that 
     would require the computation of retired pay for military 
     personnel who retire following a reduction in grade be based 
     on basic pay of the grade held at the time of retirement 
     rather than the average of the highest three years of basic 
     pay.
       The House bill contained no similar provision.
       The House recedes.
     Increase in maximum number of reserve retirement points that 
         may be credited in any year (sec. 652)
       The House bill contained a provision (sec. 641) that would 
     increase, from 70 to 90, the maximum number of days in any 
     one year that a reservist may accrue as credit toward 
     retirement benefits.
       The Senate amendment contained a similar provision (sec. 
     694).
       The Senate recedes with a clarifying amendment.
     Retirement from active reserve service after regular 
         retirement (sec. 653)
       The Senate amendment contained a provision (sec. 644) that 
     would permit a retired active component service member who 
     later serves, and is promoted in an active reserve position, 
     to retire as a member of the retired reserve at the higher 
     grade.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Same treatment for federal judges as for other federal 
         officials regarding payment of military retired pay (sec. 
         654)
       The Senate amendment contained a provision (sec. 645) that 
     would amend section 371 of title 28, United States Code, to 
     ensure that federal judges appointed under Article III of the 
     Constitution are treated the same as other federal officials 
     with regard to reduction in military retired pay.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Reserve Component Survivor Benefit Plan spousal consent 
         requirement (sec. 655)
       The House bill contained a provision (sec. 642) that would 
     require retirement-eligible reservists to obtain the 
     concurrence of their spouses before making a decision to 
     decline or defer participation in the Reserve Component 
     Survivor Benefit Plan or to select a level of participation 
     that is less than the maximum available or to select coverage 
     for a child but not the spouse.
       The Senate amendment contained a similar provision (sec. 
     642).
       The Senate recedes with a clarifying amendment.
     Sense of Congress on increasing Survivor Benefit Plan 
         annuities for surviving spouses age 62 or older (sec. 
         656)
       The Senate amendment contained a provision (sec. 646) that 
     would express the sense of Congress that legislation should 
     be enacted that increases the minimum basic annuities 
     provided under the Survivor Benefit Plan for surviving 
     spouses of members of the uniformed services who are 62 years 
     of age or older.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Revision to special compensation authority to repeal 
         exclusion of uniformed services retirees in receipt of 
         disability retired pay (sec. 657)
       The conferees included a provision that would, effective 
     October 1, 2001, make former members of the uniformed 
     services retired for disability under chapter 61 of title 10, 
     United States Code, eligible to receive the special 
     compensation for severely disabled uniformed services 
     retirees authorized by section 658 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65).

                       Subtitle E--Other Matters

     Participation in Thrift Savings Plan (sec. 661)
       The House bill contained a provision (sec. 651) that would 
     authorize active duty and reserve members of the uniformed 
     services to deposit up to five percent of their basic pay, 
     before tax, each month in the Thrift Savings Plan now 
     available for federal civil service employees.
       The Senate amendment contained a similar provision (sec. 
     643) that would amend section 663 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) to 
     establish the effective date for offering the Thrift Savings 
     Plan to active and reserve component military personnel, 
     effective not later than 180 days after the date of enactment 
     of this Act, and would eliminate the requirement for the 
     President to identify the mandatory spending offsets that are 
     currently provided in the Concurrent Resolution on the Budget 
     for Fiscal Year 2001.
       The House recedes with an amendment that would permit the 
     Secretary of Defense, with the advice of the Thrift Board, to 
     delay the effective date for both the active and reserve 
     component participation by 180 days and require that 
     Committees on Armed Services of the Senate and the House of 
     Representatives be notified of any delay.

[[Page 21687]]


     Determinations of income eligibility for special supplemental 
         food program (sec. 662)
       The Senate amendment contained a provision (sec. 669) that 
     would exclude the basic allowance for housing when computing 
     eligibility for the special supplemental food program for 
     service members assigned outside the United States. The 
     special supplemental food program is similar to the Women, 
     Infants, and Children program in the United States.
       The House bill contained no similar provision.
       The House recedes.
     Billeting services for reserve members traveling for 
         inactive-duty training (sec. 663)
       The Senate amendment contained a provision (sec. 693) that 
     would require the Secretary of Defense to promulgate 
     regulations that would authorize reservists traveling to 
     inactive-duty training at a location more than 50 miles from 
     their residence to be eligible for billeting in Department of 
     Defense facilities on the same basis as active duty personnel 
     traveling for official purposes.
       The House bill contained no similar provision.
       The House recedes.
     Settlement of claims for payments for unused accrued leave 
         and for retired pay (sec. 664)
       The Senate amendment contained a provision (sec. 663) that 
     would authorize the Secretary of Defense to settle claims for 
     unused accrued leave and to waive time limitations for filing 
     claims for payments for unused accrued leave and for retired 
     pay.
       The House bill contained no similar provision.
       The House recedes.
     Additional benefits and protections for personnel incurring 
         injury, illness, or disease in the performance of funeral 
         honors duty (sec. 665)
       The Senate amendment contained a provision (sec. 668) that 
     would authorize the payment of incapacitation pay for 
     reservists who incur an injury, illness, or disease in the 
     performance of funeral honors duties.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Authority for extension of deadline for filing claims 
         associated with capture and interment of certain persons 
         by North Vietnam (sec. 666)
       The Senate amendment contained a provision (sec. 662) that 
     would extend the time limitation for certain Vietnamese 
     Commandos, or their survivors, to file claims when the 
     Secretary of Defense determines that such an extension is 
     necessary to prevent an injustice or that a failure to file 
     within the time frame is due to excusable neglect.
       The House bill contained no similar provision
       The House recedes with a clarifying amendment.
     Back pay for members of the Navy and Marine Corps selected 
         for promotion while interned as prisoners of war during 
         World War II (sec. 667)
       The Senate amendment contained a provision (sec. 673) that 
     would authorize the payment of back pay for former members of 
     the Navy and Marine Corps who were unable to compete for 
     promotion while interned as prisoners of war during World War 
     II.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     payments to former members or their spouses.
     Sense of Congress concerning funding for reserve components 
         (sec. 668)
       The Senate amendment contained a provision (sec. 691) that 
     would express the sense of Congress that it is in the 
     national interest for the President to provide funds for the 
     reserve components of the armed forces that are sufficient to 
     ensure that the reserve components meet requirements 
     specified in the National Military Strategy.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Authority to pay gratuity to certain veterans of Bataan and 
         Corregidor
       The Senate amendment contained a provision (sec. 665) that 
     would authorize the Secretary of Veterans Affairs to pay a 
     $20,000 gratuity to a veteran or to the surviving spouse of a 
     veteran who served at Bataan or Corregidor, was captured and 
     held as a prisoner of war, and was required to perform slave 
     labor during World War II.
       The House bill contained no similar provision.
       The Senate recedes.
     Benefits for members not transporting personal motor vehicles 
         overseas
       The Senate amendment contained a provision (sec. 634) that 
     would authorize the secretary concerned to pay a service 
     member a share of the amount of savings that accrue when an 
     authorized member elects not to ship a personal vehicle 
     overseas at government expense and would limit the amount 
     payable to store a personal vehicle in lieu of shipment to an 
     amount equal to the cost that would have been incurred by 
     shipping the vehicle overseas and back.
       The House bill contained no similar provision.
       The Senate recedes.
     Computation of survivor benefits
       The Senate amendment contained a provision (sec. 650) that 
     would reduce the amount of the offset from a survivor benefit 
     annuity when the surviving spouse becomes eligible for social 
     security benefits based on the contributions of the deceased 
     service member.
       The House bill contained no similar provision.
       The Senate recedes.
     Concurrent payment of retired pay and compensation for 
         retired members with service-connected disabilities
       The Senate amendment contained a provision (sec. 666) that 
     would permit the concurrent payment of military retired pay 
     and disability compensation from the Department of Veterans 
     Affairs for retired service members with service-connected 
     disabilities.
       The House bill contained no similar provision.
       The Senate recedes.
     Concurrent payment to surviving spouses of Disability and 
         Indemnity Compensation and annuities under Survivor 
         Benefit Plan
       The Senate amendment contained a provision (sec. 652) that 
     would permit the concurrent payment of Disability and 
     Indemnity Compensation and Survivor Benefit Plan annuities to 
     surviving spouses of deceased service members.
       The House bill contained no similar provision.
       The Senate recedes.
     Effective date of disability retirement for members dying in 
         civilian medical facilities
       The House bill contained a provision (sec. 643) that would 
     authorize the secretary concerned to specify a date and time 
     of death, other than that determined by the attending 
     physician, for a member who dies in a civilian medical 
     facility solely for the purpose of allowing a member to 
     retire as if disabled.
       The Senate amendment contained no similar provision.
       The House recedes.
     Eligibility of certain members of the Individual Ready 
         Reserve for Servicemembers' Group Life Insurance
       The Senate amendment contained a provision (sec. 664) that 
     would authorize volunteers for assignment to a category in 
     the Individual Ready Reserve that is subject to involuntary 
     recall to active duty to participate in the Servicemembers' 
     Group Life Insurance program.
       The House bill contained no similar provision.
       The Senate recedes.
     Equitable application of early retirement eligibility 
         requirements to military reserve technicians
       The Senate amendment contained a provision (sec. 651) that 
     would modify the early retirement eligibility requirements 
     for all military technicians from a combination of 50 years 
     of age and 25 years of service to 25 years of service or 50 
     years of age and 20 years of service.
       The House bill contained no similar provision.
       The Senate recedes.
     Family coverage under Servicemembers' Group Life Insurance
       The Senate amendment contained a provision (sec. 648) that 
     would, at no cost to the government, extend life insurance 
     coverage under the Servicemembers' Group Life Insurance to 
     family members.
       The House bill contained no similar provision.
       The Senate recedes.
     Fees paid by residents of the Armed Forces Retirement Home
       The Senate amendment contained a provision (sec. 649) that 
     would modify the fee structure paid by residents of the Armed 
     Forces Retirement Home.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees are aware of the financial difficulties of 
     the Armed Forces Retirement Home and have received a number 
     of complaints from residents about the fee structure and 
     conditions at the homes. The conferees direct the Secretary 
     of Defense, in consultation with the Armed Forces Retirement 
     Home Board, to review the current and future financial status 
     of the Armed Forces Retirement Home, to include the current 
     fee structure. The Secretary of Defense shall submit a report 
     not later than March 30, 2001, to the Committees on Armed 
     Services of the Senate and the House of Representatives on 
     the results of this review and any recommendations for 
     changing the current fees or operations of the Armed Forces 
     Retirement Home.
     Recognition of members of the Alaska Territorial Guard as 
         veterans
       The Senate amendment contained a provision (sec. 671) that 
     would prospectively recognize certain former members of the 
     Alaska Territorial Guard as veterans.
       The House bill contained no similar provision.
       The Senate recedes.
     Survivor benefit plan annuities for survivors of all members 
         who die on active duty
       The Senate amendment contained a provision (sec. 647) that 
     would entitle a surviving

[[Page 21688]]

     spouse of a member who dies while on active duty to a 
     Survivor Benefit Plan annuity.
       The House bill contained no similar provision.
       The Senate recedes.
     Travel by reservists on military aircraft to and from 
         locations outside the continental United States for 
         inactive-duty training
       The Senate amendment contained a provision (sec. 667) that 
     would permit reservists who live outside the continental 
     United States attending drills or annual training in the 
     United States to travel space-required on military aircraft.
       The House bill contained no similar provision.
       The Senate recedes.

                    Title VII-Health Care Provisions


                     LEGISLATIVE PROVISIONS ADOPTED

                    Subtitle A-Health Care Services

     Provision of domiciliary and custodial care for CHAMPUS 
         beneficiaries and certain former CHAMPUS beneficiaries 
         (sec. 701)
       The House bill contained a provision (sec. 703) that would 
     authorize the Secretary of Defense to reimburse certain 
     former Civilian Health and Medical Program of the Uniformed 
     Services (CHAMPUS) beneficiaries for costs incurred for 
     custodial or domiciliary care services during a period of 
     temporary ineligibility for such services under CHAMPUS. The 
     provision authorized a maximum expenditure of $100.0 million 
     for the program.
       The Senate amendment contained a provision (sec. 732) that 
     would cap the program at $100.0 million per year and would 
     grandfather those that participated in the Department of 
     Defense home health care demonstration to allow their 
     continued participation in the case management program, 
     without regard to age.
       The House recedes with an amendment that would incorporate 
     the reimbursement provision in the House bill and direct the 
     Comptroller General to report on the effectiveness of the 
     existing coordination of the basic TRICARE program with the 
     program for persons with disabilities and the individual case 
     management program, as they relate to meeting the health care 
     needs of disabled dependents of active duty military members.
     Chiropractic health care for members on active duty (sec. 
         702)
       The House bill contained a provision (sec. 737) that would 
     require the Secretary of Defense to submit to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives a plan to phase in, over a period of five 
     years, permanent chiropractic services for all active duty 
     service personnel. The provision would also require the 
     Secretary of Defense to continue to provide the same level of 
     chiropractic health care services and benefits during fiscal 
     year 2001 as were provided during fiscal year 2000.
       The Senate amendment contained a provision (sec. 737) that 
     would make permanent the provision of chiropractic health 
     care services to military health care system beneficiaries 
     who enroll in TRICARE Prime. The provision would direct the 
     Secretary of Defense to develop and implement a plan to make 
     available chiropractic services using a primary care manager 
     model and would continue services at existing demonstration 
     sites until TRICARE Prime enrollees at those sites would have 
     access under the new provision.
       The Senate recedes with a technical amendment.
     School-required physical examinations for certain minor 
         dependents (sec. 703)
       The Senate amendment contained a provision (sec. 734) that 
     would direct the Secretary of Defense to provide eligible 
     dependents, between the ages of 5 years and 12 years, a 
     physical examination when such an examination is required by 
     a school in connection with the enrollment in that school. 
     TRICARE Prime enrollees would require no copayment. Enrollees 
     in TRICARE options other than Prime would pay appropriate 
     cost shares.
       The House bill contained no similar provision.
       The House recedes.
     Two-year extension of dental and medical benefits for 
         surviving dependents of certain deceased members (sec. 
         704)
       The Senate amendment contained a provision (sec. 735) that 
     would extend the medical and dental benefits for surviving 
     dependents of certain deceased members from one year to three 
     years.
       The House bill contained no similar provision.
       The House recedes.
     Two-year extension of authority for use of contract 
         physicians at military entrance processing stations and 
         elsewhere outside medical treatment facilities (sec. 705)
       The House bill contained a provision (sec. 701) that would 
     extend for two years, the authority of the Secretary of 
     Defense to contract with physicians to provide health care 
     and new-recruit examination services at military entrance 
     processing stations and other locations.
       The Senate amendment contained a similar provision (sec. 
     736).
       The Senate recedes.
     Medical and dental care for medal of honor recipients (sec. 
         706)
       The House bill contained a provision (sec. 702) that would 
     extend life-time medical and dental care, to be provided by 
     the Department of Defense, to medal of honor recipients and 
     their dependents.
       The Senate amendment contained a similar provision (sec. 
     733).
       The House recedes with a clarifying amendment.

                     Subtitle B-Senior Health Care

     Implementation of TRICARE senior pharmacy program (sec. 711)
       The House bill contained a provision (sec. 721) that would 
     authorize the establishment of the TRICARE Senior Pharmacy 
     Program. The program would provide Medicare eligible military 
     retirees and their eligible family members the same pharmacy 
     benefit as is currently available to other military health 
     care beneficiaries through the TRICARE preferred provider and 
     fee-for-services options commonly referred to as TRICARE 
     Extra and TRICARE Standard. The House authorized an increase 
     of $94.0 million to the Defense Health Program to fund this 
     requirement.
       The Senate amendment contained a provision (sec. 731) that 
     would authorize a specific pharmacy benefit for eligible 
     beneficiaries of the military health care system, including 
     those eligible for Medicare. The provision would authorize a 
     national mail order program and a retail pharmacy network.
       The Senate recedes with an amendment that would grandfather 
     all participants of the Base Realignment and Closure pharmacy 
     benefit program.
     Conditions for eligibility for CHAMPUS and TRICARE upon the 
         attainment of age 65; expansion and modification of 
         medicare subvention project (sec. 712)
       The House bill contained a provision (sec. 725) that would 
     extend the Medicare subvention, or TRICARE Senior Prime, 
     program nationwide and would make the program permanent.
       The Senate amendment contained a provision (sec. 701) that 
     would extend TRICARE/CHAMPUS eligibility to all military 
     retirees and their dependents, regardless of age.
       The House recedes with an amendment that would extend the 
     Medicare subvention program one year and would extend 
     permanent TRICARE/CHAMPUS eligibility to all military 
     retirees and their dependents, regardless of age.
       The conferees note that continuation of the Medicare 
     subvention program beyond the extended termination date would 
     be contingent upon the Secretaries of Defense and Health and 
     Human Services jointly developing and implementing program 
     terms and conditions that are fair and equitable to both 
     agencies, providing a report to the Congress, and a 
     subsequent act of Congress.
       The conferees recognize that the Department of Defense has 
     provided some level of health care services to the senior 
     population and would not expect reimbursement for that level 
     of effort. The conferees believe the administrative costs and 
     costs of resources expended during the process of approving a 
     military treatment facility as a subvention site should be 
     included when the Secretaries of Defense and Health and Human 
     Services jointly develop the terms of a new subvention 
     agreement.
       While extending TRICARE/CHAMPUS eligibility to Medicare-
     eligible beneficiaries, the conferees direct the Secretary of 
     Defense to refrain from using deductibles and copayments, in 
     recognition of their participation in Medicare Part B as a 
     condition of participation. The conferees urge the Secretary 
     of Defense to implement, wherever reasonable, primary care 
     impanelment programs patterned on the ``MacDill-65'' program 
     which provide opportunities for senior retirees to establish 
     a relationship with a military primary care provider while 
     still taking full advantage of the added benefits under this 
     provision.
       The conferees also recognize that the ability of the 
     Secretary of Defense to prepare reliable budget estimates is 
     seriously compromised by the lack of any beneficiary 
     enrollment requirements. With the addition of this 
     significant TRICARE benefit for senior military retirees and 
     their dependents, all retired military personnel will now 
     have access to comprehensive health care services, no matter 
     where they live. Therefore, the conferees direct the 
     Secretary of Defense to submit a plan for universal, 
     continuous enrollment of all eligible beneficiaries beginning 
     in fiscal year 2002. Through the enrollment system, 
     beneficiaries would select the component of the military 
     health care system through which they would seek their health 
     care services. The conferees expect the period of required 
     enrollment would not exceed one year and some provision would 
     be made for individual exceptions based on unforeseen 
     circumstances. As the enrollment plan is being developed, the 
     conferees encourage the Secretary of Defense to seek the 
     views of affected beneficiary groups. Their views should be 
     included in the final report. The required report shall be 
     submitted to the Committees on Armed Services of the Senate 
     and the House of Representatives not later than March 30, 
     2001.

[[Page 21689]]


     Accrual funding for health care for Medicare-eligible 
         retirees and dependents (sec. 713)
       The conferees included a provision that would establish an 
     accrual funding mechanism to finance, on an actuarially sound 
     basis, liabilities of the Department of Defense under 
     Department of Defense retiree health care programs for 
     Medicare-eligible beneficiaries.
       The conferees direct the Secretary of Defense to conduct a 
     study using an independent entity to develop strategies for 
     determining the periodicity and amount of payments from the 
     Department of Defense Medicare-Eligible Retiree Health Care 
     Fund under section 1113 of title 10, United States Code (as 
     added by section 713). The conferees direct the Secretary of 
     Defense to report to the Committees on Armed Services of the 
     Senate and House of Representatives, not later than February 
     8, 2001, on the results of the study, including any 
     recommendations and, if appropriate, legislative provisions 
     necessary to implement the accrual funding mechanism.

                       Subtitle C-TRICARE Program

     Improvement of access to health care under the TRICARE 
         program (sec. 721)
       The House bill contained a provision (sec. 739) that would 
     eliminate the requirement to obtain non-availability 
     statements under any new contract for those beneficiaries 
     participating in TRICARE standard.
       The Senate amendment contained a similar provision (sec. 
     714).
       The Senate recedes with a technical amendment.
     Additional beneficiaries under TRICARE prime remote program 
         in the continental United States (sec. 722)
       The House bill contained a provision (sec. 711) that would 
     repeal the requirement for co-payments by family members of 
     active duty military members under TRICARE Prime Remote and 
     would require the same access and claims processing standards 
     as would be available under TRICARE Prime. The provision 
     would also extend the program to all uniformed service 
     personnel and their immediate family members, as defined in 
     section 101 of title 10, United States Code.
       The Senate amendment contained an identical provision (sec. 
     711).
       The conference agreement includes this provision.
     Modernization of TRICARE business practices and increase of 
         use of military treatment facilities (sec. 723)
       The House bill contained a provision (sec. 713) that would 
     require managers for the Department of Defense TRICARE 
     program to implement improvements in business practices by 
     the end of fiscal year 2001, and would require the Secretary 
     of Defense to submit a plan for improvement by March 15, 
     2001. The provision would also authorize an increase of 
     $134.5 million for the Defense Health Program to be used 
     solely for the purpose of maximizing the use of military 
     treatment facilities.
       The Senate amendment contained a similar provision (sec. 
     713).
       The Senate recedes with a clarifying amendment.
       The conferees note that the Emergency Supplemental Act, 
     2000 (division B of Public Law 106-246) included $695.0 
     million for improvements in TRICARE for fiscal years 2000 and 
     2001. The conferees direct that $134.5 million of these funds 
     be used for maximizing the use of military treatment 
     facilities by improving the efficiency of health care 
     operations in such facilities.
       The conferees note that resource sharing initiatives are 
     achieving significant savings by recapturing services in the 
     direct care system. Savings can range from $1.25-$5.00 for 
     every dollar expended. The conferees direct the Secretary of 
     Defense to utilize the additional funds provided by this 
     provision to achieve comparable savings.
       The conferees understand that requirements for additional 
     support staff are dynamic and require a flexible approach to 
     ensure full utilization of military treatment facilities. The 
     conferees direct the Secretary of Defense to develop a 
     flexible mechanism to acquire additional support staff, as 
     needed. Further, the conferees direct the Secretary of 
     Defense to include, as part of the plan for improving TRICARE 
     business practices, a methodology for the cost-effective use 
     of additional support staff.
     Extension of TRICARE managed care support contracts (sec. 
         724)
       The Senate amendment contained a provision (sec. 579) that 
     would provide authority to extend TRICARE managed care 
     support contracts in effect or in final stages of acquisition 
     to be extended up to four years.
       The House bill contained no similar provision.
       The House recedes.
     Report on protections against health care providers seeking 
         direct reimbursement from members of the uniformed 
         services (sec. 725)
       The House bill contained a provision (sec. 719) that would 
     require the Secretary of Defense to provide a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on ways to discourage or prohibit TRICARE 
     health care providers from seeking inappropriate direct 
     reimbursement from military service members or their families 
     for eligible health care services.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Voluntary termination of enrollment in TRICARE retiree dental 
         program (sec. 726)
       The House bill contained a provision (sec. 720) that would 
     authorize the Secretary of Defense to permit retirees who 
     enrolled in the Department of Defense Retiree Dental Program 
     to disenroll from the program under certain circumstances.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees recognize the necessity of a termination of 
     enrollment appeal process and direct the Secretary to ensure 
     appropriate dental expertise is included in such procedures. 
     Additionally, the conferees note the importance of making 
     available a dental benefit for retirees overseas and direct 
     the Secretary of Defense to explore expansion of this 
     program.
     Claims processing improvements (sec. 727)
       The House bill contained a provision (sec. 714) that would 
     require the Secretary of Defense to implement several changes 
     to the TRICARE claims process system.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Prior authorizations for certain referrals and 
         nonavailability-of-health-care statements (sec. 728)
       The House bill contained a provision (sec. 715) that would 
     prohibit the Secretary of Defense from requiring any TRICARE 
     managed care support contractors to establish prior approval 
     requirements among network providers.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees do not intend that this provision would in 
     any way interfere with the relationship between the primary 
     care provider and his or her patients or the requirement that 
     patients enrolled under TRICARE Prime be referred for 
     specialty care by their primary care providers. Rather, the 
     conferees intend that the Department of Defense would, in new 
     managed care support contracts, eliminate the requirement for 
     TRICARE primary care providers to seek authorization before 
     making a referral to a specialist who is part of a managed 
     care support contractor's network of providers.

                   Subtitle D--Demonstration Projects

     Demonstration project for expanded access to mental health 
         counselors (sec. 731)
       The House bill contained a provision (sec. 704) that would 
     direct the Secretary of Defense to conduct a demonstration 
     project to determine the effect of increasing access to 
     certified professional mental health counselors by removing 
     the requirement for physician referral prior to engaging a 
     counselor under the TRICARE program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Teleradiology demonstration project (sec. 732)
       The House bill contained a provision (sec. 705) that would 
     direct the Secretary of Defense to implement a teleradiology 
     demonstration project for the purpose of increasing the 
     efficiency of operations and coordination between outlying 
     clinics and a major military medical facility.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add an 
     additional test site.
     Health care management demonstration program (sec. 733)
       The Senate amendment contained a provision (sec. 740) that 
     would direct the Secretary of Defense to conduct a test of 
     two models to improve health care delivery in the Defense 
     Health Program: one for studying alternative delivery 
     policies, processes, organizations, technologies; and another 
     for studying long-term disease management.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

   Subtitle E--Joint Initiatives With Department of Veterans Affairs

     VA-DOD sharing agreements for health services (sec. 741)
       The House bill contained a provision (sec. 738) that would 
     require the Secretary of Defense to give full force and 
     effect to any sharing agreement entered into between the 
     Veterans Health Administration and the Department of Defense 
     treatment facilities. The provision would also require the 
     Secretary of Defense to review all sharing agreements.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Processes for patient safety in military and veterans health 
         care systems (sec. 742)
       The House bill contained a provision (sec. 733) that would 
     require the Secretary of Defense to implement a system of 
     indicators,

[[Page 21690]]

     standards, and protocols necessary to track patient safety.
       The Senate amendment contained a provision (sec. 721) that 
     would direct enhanced cooperation between the Department of 
     Defense and Department of Veterans Affairs in the area of 
     patient safety.
       The House recedes with a technical amendment.
     Cooperation in developing pharmaceutical identification 
         technology (sec. 743)
       The House bill contained a provision (sec. 734) that would 
     require the Secretary of Defense to implement a 
     pharmaceutical bar code identification program to improve the 
     safety of Department of Defense pharmacy programs.
       The Senate amendment contained a provision (sec. 722) that 
     would direct the Secretary of Defense and the Secretary of 
     Veterans Affairs to develop jointly a plan to bar code pills 
     and to explore a bar code capability for the mail order 
     pharmacy program.
       The House recedes with a technical amendment.

                       Subtitle F--Other Matters

     Management of anthrax vaccine immunization program (sec. 751)
       The House bill contained a provision (sec. 735) that would 
     strengthen congressional oversight of the Department of 
     Defense Anthrax Vaccine Immunization Program (AVIP). The 
     provision would require the Secretary of Defense to implement 
     several initiatives to strengthen oversight of the program 
     including: requiring the Secretary to track and report 
     separations resulting from refusal to participate in the 
     program; requiring guidance for emergency essential civilian 
     personnel who are participating in AVIP; requiring the 
     Secretary of Defense to put uniform medical and 
     administrative exemptions into regulation; improving 
     monitoring of adverse reactions; development of a plan for 
     modernizing all-force protection immunizations; and requiring 
     reports on financial and overall program management.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the procurement components of the provision and would focus 
     on the administration of the AVIP.
     Elimination of copayments for immediate family (sec. 752)
       The House bill contained a provision (sec. 712) that would 
     repeal the requirement for co-payments by family members of 
     active duty military members enrolled in TRICARE Prime.
       The Senate amendment contained a similar provision (sec. 
     712).
       The House recedes with a clarifying amendment.
       The conferees expect the Department of Defense to ensure 
     that implementation of this provision would not impose 
     additional costs on managed care support contractors. 
     Further, it is not the intent of the conferees to eliminate 
     copayments for pharmaceutical benefits under the mail order 
     pharmacy program or such similar cost shares. The conferees 
     expect implementation within 180 days after enactment of this 
     Act.
     Medical informatics (sec. 753)
       The Senate amendment contained a provision (sec. 723) that 
     would direct the Secretary of Defense to include two 
     additional sections in the medical informatics report 
     required by section 723 of the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65). The provision 
     would also direct that, from within the resources of the 
     Defense Health Program, $64.0 million be expended on a 
     computerized patient record system, and $9.0 million be 
     expended on an integrated pharmacy system in fiscal year 
     2001.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Patient care reporting and management system (sec. 754)
       The Senate amendment contained a provision (sec. 739) that 
     would direct the Secretary of Defense to implement a patient 
     care reporting and management system in the military health 
     system to identify, track, and report on errors and safety 
     problems.
       The House bill contained no similar provision.
       The House recedes.
     Augmentation of Army medical department by detailing reserve 
         officers of the Public Health Service (sec. 755)
       The Senate amendment contained a provision (sec. 742) that 
     would authorize the Secretary of the Army and the Secretary 
     of Health and Human Services to enter into an agreement to 
     conduct a program under which officers of the Public Health 
     Service Corps Inactive Reserve may be detailed to augment the 
     Army Medical Department, subject to existing statutory 
     authorities.
       The House bill contained no similar provision.
       The House recedes.
     Privacy of Department of Defense medical records (sec. 756)
       The Senate amendment contained a provision (sec. 744) that 
     would direct the Secretary of Defense to create a blue ribbon 
     advisory panel on Department of Defense policies regarding 
     the privacy of medical records for beneficiaries of the 
     military health care system.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of Defense to report to Congress on a comprehensive 
     plan to improve privacy protections for Department of Defense 
     medical records, consistent with the Health Insurance 
     Portability and Accountability Act of 1996. The conferees 
     further direct the Secretary of Defense to issue interim 
     regulations to expedite implementation of this provision and 
     allow for reasonable use of medical records for certain 
     circumstances including, but not limited to, national 
     security, law enforcement, patient treatment, and payment for 
     health care services.
     Authority to establish special locality-based reimbursement 
         rates; reports (sec. 757)
       The House bill contained a provision (sec. 716) that would 
     authorize the Secretary of Defense to establish higher rates 
     for reimbursement for services in some localities under 
     certain conditions.
       The Senate amendment contained a provision (sec. 715) that 
     would enhance access to TRICARE in rural states by increasing 
     the maximum allowable charge by physicians in rural areas.
       The Senate recedes with a clarifying amendment.
       The conferees intend that the Department of Defense focus 
     on resolving provider participation issues, particularly in 
     rural areas, where limited numbers of health care providers 
     present extreme difficulties in accessing care.
     Reimbursement for certain travel expenses (sec. 758)
       The House bill contained a provision (sec. 717) that would 
     authorize the Secretary of Defense to reimburse TRICARE 
     beneficiaries for their reasonable expenses incurred while 
     traveling to a referral more than 100 miles from the location 
     at which they normally receive their primary care services.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reduction of cap on payments (sec. 759)
       The House bill contained a provision (sec. 718) that would 
     reduce the maximum amount retired TRICARE beneficiaries could 
     pay under TRICARE to $3,000 per family. The House bill 
     authorized an increase in the Defense Health Program of $32.0 
     million for this purpose.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Training in health care management and administration (sec. 
         760)
       The House bill contained a provision (sec. 731) that would 
     require the Secretary of Defense to provide a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the continued implementation of section 
     715 of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106). The provision would increase the 
     number of senior management positions requiring professional 
     management and administrative experience.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees direct the Secretary of Defense to ensure 
     that senior managers involved in leading and managing the 
     Department of Defense complex health care delivery program 
     are provided all possible professional management and 
     administrative opportunities to increase their ability to 
     succeed in this dynamic environment.
     Study on feasibility of sharing biomedical research facility 
         (sec. 761)
       The House bill contained a provision (sec. 736) that would 
     require the Secretary of the Army to conduct a study on the 
     feasibility of a military medical center sharing a biomedical 
     research facility with the Department of Veterans Affairs and 
     an academic institution to make more efficient use of funding 
     for biomedical research.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add an 
     additional site for such a demonstration.
     Study on comparability of coverage for physical, speech, and 
         occupational therapies (sec. 762)
       The House bill contained a provision (sec. 740) that would 
     direct the Secretary of Defense to conduct a study comparing 
     coverage and reimbursement for covered beneficiaries for 
     physical, speech, and occupational therapies under the 
     TRICARE program and the Civilian Health and Medical Program 
     of the Uniformed Services to coverage and reimbursement for 
     such therapies by insurers under Medicare and the Federal 
     Employees Health Benefits Program.
       The Senate amendment contained no similar provision.
       The Senate recedes.

[[Page 21691]]




                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Extended coverage under the Federal Employees Health Benefits 
         Program
       The House bill contained a provision (sec. 723) that would 
     extend the period of the Federal Employees Health Benefits 
     Program demonstration for one year and would require the 
     Secretary of Defense to take actions to encourage 
     participation in the program to its full authorized 
     enrollment level.
       The Senate amendment contained no similar provision.
       The House recedes.
     Extension of TRICARE senior supplement program
       The House bill contained a provision (sec. 724) that would 
     extend the period of the TRICARE Senior Supplement Program 
     for one year.
       The Senate amendment contained no similar provision.
       The House recedes.
     Service areas of transferees of former uniformed services 
         treatment facilities
       The Senate amendment contained a provision (sec. 743) that 
     would expand the service areas of former uniformed services 
     treatment facilities.
       The House bill contained no similar provision.
       The Senate recedes.
     Study of accrual financing for health care for military 
         retirees
       The House bill contained a provision (sec. 732) that would 
     direct the Secretary of Defense to conduct a study on the 
     feasibility and desirability of financing the military health 
     care program for uniformed services retirees on an accrual 
     basis.
       The Senate amendment contained a similar provision (sec. 
     741).
       The conferees adopted an accrual funding provision 
     elsewhere in this conference agreement.
     Study of accrual financing for health care for retirees of 
         the uniformed services
       The House bill contained a provision (sec. 732) that would 
     require the Secretary of Defense to conduct a study on the 
     feasibility and desirability of financing the military health 
     care program for uniformed services retirees on an accrual 
     basis.
       The Senate amendment contained a similar provision (sec. 
     741).
       The House recedes with a technical amendment.
     Study on health care options for medicare-eligible military 
         retirees
       The House bill contained a provision (sec. 722) that would 
     require the Secretary of Defense to conduct a study on 
     alternatives for providing continued health care benefits for 
     Medicare-eligible military retirees.
       The Senate amendment contained no similar provision.
       The House recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters


                       ITEMS OF SPECIAL INTEREST

     Acquisition programs at the National Security Agency
       The Senate report accompanying S. 2549 (S. Rept. 106-292) 
     would direct the National Security Agency (NSA) and the 
     Department of Defense to manage the ongoing NSA modernization 
     effort as though it were a major defense acquisition program, 
     as defined in section 2430 of title 10, United States Code.
       The House report accompanying H.R. 4205 (H. Rept. 106-616) 
     contained no such direction.
       The conferees agree that there is a need to improve the 
     acquisition management and oversight processes to ensure 
     sufficient structure, accountability, and visibility for the 
     vital NSA modernization efforts. However, the conferees are 
     not convinced that the DOD acquisition model is sufficiently 
     flexible and timely to allow the NSA to deliver the necessary 
     capabilities against the rapidly changing threat environment.
       The conferees understand that representatives from the 
     Intelligence Community (IC), the NSA, and the Office of the 
     Secretary of Defense have jointly begun to define a formal 
     plan to improve oversight of the NSA acquisition efforts, and 
     that an interim oversight board has been used to review a 
     major NSA acquisition program. The conferees understand that 
     the IC and the DOD jointly intend to create a streamlined 
     acquisition management and oversight process that will 
     improve DOD and IC oversight of the NSA Acquisition process.
       The conferees agree to allow some time for this new plan to 
     achieve the objectives of providing sufficient structure, 
     accountability, and visibility for the very important 
     modernization efforts underway within NSA. The conferees take 
     this position with the understanding that DOD and the IC will 
     implement oversight procedures that will achieve several 
     objectives: (1) aid the Director of NSA in the effort to 
     accomplish fundamental financial and acquisition management 
     reforms within the agency; (2) improve the linkage between 
     the development of requirements and the acquisition process; 
     (3) ensure that internal NSA acquisition processes comply 
     with DOD and IC policy and with best practices; (4) improve 
     the linkage across agencies for end-to-end performance; and 
     (5) allow the Director to have sufficient flexibility to 
     deliver urgently needed capability.
       The conferees direct the Director of NSA, the Director of 
     Central Intelligence, and the Secretary of Defense to provide 
     the Congress with a report, concurrent with the budget 
     request for fiscal year 2002, that outlines the oversight 
     plan, including the changes the plan will make in the 
     acquisition process. If implementation of this oversight plan 
     fails to demonstrate a review mechanism that meets these 
     objectives, the conferees may insist on requiring that NSA 
     manage its programs as major defense acquisition programs in 
     the future.


                     LEGISLATIVE PROVISIONS ADOPTED

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     Department of Defense acquisition pilot programs (sec. 801)
       The House bill contained a provision (sec. 801) that would 
     amend the Federal Acquisition Streamlining Act of 1994 
     (Public Law 103-355) to extend until fiscal year 2005 certain 
     acquisition pilot programs and to require a report on the 
     pilot programs.
       The Senate amendment contained a provision (sec. 806) that 
     would extend this authority through October 1, 2007.
       The House recedes with an amendment that would add the 500 
     pound Joint Direct Attack Munition to the original pilot 
     program and include a reporting requirement.
     Multiyear services contracts (sec. 802)
       The House bill contained a provision (sec. 808) that would 
     amend section 2306b of title 10, United State Code, to 
     clarify that this section applies to the multiyear 
     procurement of services, as well as to the multiyear 
     procurement of property.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would insert a 
     new section in title 10, United States Code, that would 
     clarify the authority to enter into multiyear contracts for 
     the acquisition of services. The conferees direct the 
     Secretary of Defense to provide to the congressional defense 
     committees, not later than February 1, 2001, a report that 
     contains information comparable to that required by section 
     2306b(l)(4) for each multiyear service contact and each 
     extension of an existing multiyear service contract entered 
     into, or planned to be entered into, during the current or 
     preceding year.
     Clarification and extension of authority to carry out certain 
         prototype projects (sec. 803)
       The House bill contained a provision (sec. 805) that would 
     amend section 845 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160), to extend for 
     three years the authority of the Defense Advanced Research 
     Projects Agency, the military departments, and other 
     officials designated by the Secretary of Defense to carry out 
     prototype projects using transactions other than contracts, 
     cooperative agreements, and grants, which must be executed in 
     accordance with statutes or regulations applicable to 
     contracts.
       The Senate amendment contained a provision (sec. 807) that 
     would extend for three years the other transaction prototype 
     authority, identify appropriate uses of this authority to 
     include cost sharing arrangements and the participation of 
     nontraditional defense contractors, and establish a pilot 
     program for the transition to follow-on production contracts 
     for prototypes developed under the section 845 authority.
       The House recedes with an amendment to modify the 
     circumstances under which section 845 authority can be used 
     and to strike the pilot program for the transition to follow-
     on production contracts for prototypes developed under the 
     section 845 authority.
       The conferees note the recommendations contained in the 
     report of the Comptroller General ``Acquisition Reform: DOD's 
     Guidance on Using Section 845 Agreements Could be Improved'' 
     (GAO/NSIAD -00-33, dated April 2000), that the Secretary of 
     Defense provide updated guidance that lays out the conditions 
     for using section 845 agreements and provides a framework to 
     tailor the terms and conditions appropriate for each 
     agreement. The General Accounting Office (GAO) recommended 
     that the Secretary should establish and require the use of a 
     set of metrics, including the number of commercial firms 
     participating in section 845 agreements, which are measurable 
     and directly related to the agreement's use. The GAO also 
     recommended that these requirements should be in place in 
     time to assist in the deliberations on whether to extend the 
     authority past September 30, 2001. The conferees further note 
     that the Department of Defense (DOD) concurred with the need 
     for revised guidance to help determine when section 845 
     agreements should be used, and that the Department planned to 
     issue an updated guide by April 2000. The conferees direct 
     the Secretary of Defense to issue the revised DOD guidelines 
     for using section 845 agreements within 90 days of the 
     enactment of this Act.
     Clarification of authority of Comptroller General to review 
         records of participants in certain prototype projects 
         (sec. 804)
       The Senate amendment contained a provision (sec. 808) that 
     would clarify the audit access of the Comptroller General 
     over other transaction prototype authority agreements for 
     those contractors who have only done

[[Page 21692]]

     business with the government under other transaction 
     authority or through cooperative agreements.
       The House bill contained no similar provision.
       The House recedes.
     Extension of time period of limitation on procurement of ball 
         bearings and roller bearings (sec. 805)
       The House bill contained a provision (sec. 807) that would 
     amend section 2534 of title 10, United States Code, to extend 
     the limitations on the procurement of ball bearings and 
     roller bearings. This provision would also extend the 
     limitations on the procurement of naval valves for another 
     three fiscal years, and authorize limitations on the 
     procurement of polyacrylonitrile based carbon fiber (PAN 
     carbon fiber) for the next three fiscal years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     limitations on the procurement of ball bearings and roller 
     bearings to October 1, 2005. The conferees note that the 
     domestic source restriction on PAN carbon fiber was first 
     instituted in the 1980s after the Department of Defense 
     determined that it was overly dependent on foreign industry 
     for PAN carbon fibers. The conferees determined that a 
     legislative restriction was unnecessary, because the 
     Department of Defense has extended by three years the 
     regulatory domestic source restriction on PAN based carbon 
     fibers.
     Reporting requirements relating to multiyear contracts (sec. 
         806)
       The Senate amendment contained a provision (sec. 802) that 
     would clarify the multiyear reporting requirements required 
     by section 2306b of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     require an annual report that addresses all multiyear 
     contracts, regardless of the dollar value, and require a 
     separate report prior to entering into a multiyear contract 
     or extension above $500.0 million if the information required 
     by section 2306b, for the contract or extension was not 
     included in the annual report required by this provision.
     Eligibility of small business concerns owned and controlled 
         by women for assistance under the mentor-protege program 
         (sec. 807)
       The Senate amendment contained a provision (sec. 809) that 
     would add small business concerns owned and controlled by 
     women to the list of entities that are eligible to 
     participate in the pilot mentor-protege program established 
     by section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510).
       The House bill contained no similar provision.
       The House recedes.
     Qualifications required for employment and assignment in 
         contracting positions (sec. 808)
       The Senate amendment contained a provision (sec. 811) that 
     would require a baccalaureate degree and 24 semester credit 
     hours in business disciplines for new entrants into the GS-
     1102 occupational series and for contracting officers above 
     the simplified acquisition threshold.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Revision of authority for solutions-based contracting pilot 
         program (sec. 809)
       The Senate amendment contained a provision (sec. 815) that 
     would amend section 5312 of the Clinger-Cohen Act (divisions 
     D and E of the National Defense Authorization Act for Fiscal 
     Year 1996 [Public Law 104-106]) to remove detailed statutory 
     requirements concerning the development of a pilot plan to 
     include elimination of the direct participation of private 
     information technology specialists as part of a public-
     private working group.
       The House bill contained no similar provision.
       The House recedes.
     Procurement notice of contracting opportunities through 
         electronic means (sec. 810)
       The Senate amendment contained a provision (sec. 818) that 
     would allow electronic postings of solicitations through the 
     single government-wide point of entry designated in the 
     Federal Acquisition Regulations.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                   Subtitle B--Information Technology

     Acquisition and management of information technology (sec. 
         811)
       The House bill contained a provision (sec. 363) that would 
     require that for the next three fiscal years all mission 
     essential and mission critical information technology systems 
     be registered with the Chief Information Officer of the 
     Department of Defense (DOD). The House bill also contained a 
     provision (sec. 806) that would require that in each of the 
     next three fiscal years the Department of Defense Chief 
     Information Officer certify that each major automated 
     information system is in compliance with the Clinger-Cohen 
     Act of 1996 (divisions D and E of Public Law 104-106) prior 
     to granting milestone approval.
       The Senate amendment contained a provision (sec. 803) with 
     similar registration and approval requirements. The provision 
     would also require the Chief Information Officers of the DOD 
     and the military services to maintain a consolidated 
     inventory of DOD mission critical and mission essential 
     information systems, to identify interfaces between these and 
     other information systems, and to maintain contingency plans 
     for responding to a disruption in the operation of any of 
     these information systems. The Senate provision included 
     similar requirements to the House provisions.
       The Senate recedes with an amendment that would establish 
     registration and approval requirements to enhance the 
     management and oversight of information technology 
     acquisitions.
     Tracking and management of information technology purchases 
         (sec. 812)
       The Senate amendment contained a provision (sec. 804) that 
     would require the Secretary of Defense and the secretaries of 
     the military departments to administer an automated system to 
     track and manage purchases of information technology products 
     and services in excess of the simplified acquisition 
     threshold.
       The House bill contained no similar provision.
       The House recedes with an amendment requiring the Secretary 
     of Defense to provide for the collection of data on purchases 
     of information technology.
       The conferees understand that the requirements of this 
     section will be met through the incorporation of the new data 
     elements into the Defense Contract Action Data System which 
     is the DOD data collection system for reporting contract 
     actions to the Federal Procurement Data System.
     Appropriate use of requirements regarding experience and 
         education of contractor personnel in the procurement of 
         information technology services (sec. 813)
       The Senate amendment contained a provision (sec. 816) that 
     would limit the circumstances in which bid solicitations for 
     contracts of information technology services set forth 
     minimum contractor personnel requirements for contract award 
     eligibility.
       The House bill contained no similar provision.
       The House recedes with an amendment that would preclude in 
     the bid solicitation for any contract of information 
     technology services, minimum requirements for contractor 
     personnel unless: (1) the contracting officer first 
     determines that the needs of the agency cannot be met without 
     such requirement; or (2) the needs of the agency require the 
     use of a type of contract other than a performance-based 
     contract.
     Navy-Marine Corps Intranet (sec. 814)
       The House bill contained a provision (sec. 332) that would 
     prohibit the Department of the Navy from using fiscal year 
     2001 funds for payment of a long-term contract for 
     comprehensive end-to-end shore based information services, 
     known as the Navy Marine Corps Intranet (NMCI), until 
     supporting documentation is provided to Congress.
       The Senate amendment contained a similar provision (sec. 
     810) that would require the Secretary of the Navy to submit a 
     report to Congress before beginning performance of the NMCI 
     contract. The Senate amendment would also require that the 
     Marine Corps, the naval shipyards, and the naval aviation 
     depots be excluded from the performance of the contract in 
     the first year; the program be developed incrementally; the 
     impact on federal employees be mitigated; and the program be 
     implemented in accordance with the requirements of the 
     Clinger-Cohen Act of 1996, and applicable regulations and 
     directives.
       The House recedes with an amendment that would prohibit the 
     Department of Navy to obligate or expend funds on NMCI until 
     the Comptroller of the Department of Defense and the Director 
     of the Office of Management and Budget (OMB) have reviewed 
     and commented on the Department of Navy's June 30, 2000, and 
     July 15, 2000, reports to the Congress; and the Secretary of 
     the Navy and the Chief of Naval Operations have submitted a 
     joint certification to Congress that they have reviewed the 
     business case for the contract, reviewed OMB and Department 
     of Defense Comptroller comments, and have determined that 
     implementation of the contract is in the best interest of the 
     Department of the Navy. The amendment would also require 
     additional certifications by the DOD Comptroller, the 
     Secretary of the Navy, and Chief of Naval Operations before 
     more than 15 percent of the planned total number of work 
     stations could be provided under the NMCI program.
       The conferees recognize the need to upgrade the Navy's 
     shore based information infrastructure, but remain concerned 
     about affordability and effective management oversight of the 
     program. To reduce risk in the program, the conferees direct 
     the Secretary of Navy to ensure that contract management 
     organization and procedures are in place before a contract is 
     awarded, service level

[[Page 21693]]

     agreements are fully defined in the contract, requirements 
     are validated for information technology services requested, 
     a comprehensive funding transition plan and schedule, which 
     includes complete and comprehensive cost estimates, are 
     developed, a system for tracking NMCI costs and benefits is 
     established, outcome-oriented performance measures beyond 
     those in the service-level agreements are established, 
     oversight and reporting responsibilities (both within the 
     Navy and DOD) over the NMCI program are finalized, and 
     measures of success are defined for the first increment of 
     the program.
       The conferees direct the Comptroller General to review the 
     Department of Navy's June 30, 2000, and July 15, 2000, 
     reports to Congress on the NMCI. The Comptroller General 
     shall report to the Committees on Armed Services of the 
     Senate and House of Representatives, the Secretary of Navy, 
     and the Chief of Naval Operations on the risks that face the 
     Navy on the NMCI program and recommend actions to mitigate 
     such risks no later than 30 days after the enactment of this 
     Act.
     Sense of Congress regarding information technology systems 
         for guard and reserve components (sec. 815)
       The House bill contained a provision (sec. 1040) that would 
     express the sense of Congress regarding information 
     technology systems.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

             Subtitle C--Other Acquisition-Related Matters

     Improvements in procurements of services (sec. 821)
       The Senate amendment contained a provision (sec. 801) that 
     would improve the procurement of services by establishing: 
     (1) a governmentwide preference for performance based service 
     contracting; (2) a Department of Defense Center of Excellence 
     for service contracts; and (3) an incentive for the use of 
     performance-based service contracts within the Department of 
     Defense by treating performance based service contracts or 
     performance based service task orders under $5.0 million as 
     commercial items and thereby authorizing the use of 
     simplified commercial procedures under Part 12 of the Federal 
     Acquisition Regulations.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Financial analysis of use of dual rate for quantifying 
         overhead costs at army ammunition plants (sec. 822)
       The Senate amendment contained a provision (sec. 813) that 
     would require the Secretary of the Army to conduct a 
     financial analysis of the benefits and costs of permitting 
     the use of dual overhead rates at Department of Army 
     government-owned facilities as a means of encouraging 
     commercial use of these facilities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     scope of the financial analysis to Department of Army 
     ammunition facilities.
     Repeal of prohibition on use of Department of Defense funds 
         for the procurement of nuclear-capable shipyard crane 
         from a foreign source (sec. 823)
       The Senate amendment contained a provision (sec. 143) that 
     would strike section 8093(d) of the Department of Defense 
     Appropriations Act, 2000 (Public Law 106-79) relating to the 
     prohibition on the use of Department of Defense funds to 
     procure a nuclear-capable shipyard crane from a foreign 
     source.
       The House bill contained no similar provision.
       The House recedes.
     Extension of waiver period for live-fire survivability 
         testing for MH-47E and MH-60K helicopter modifications 
         programs (sec. 824)
       The House bill contained a provision (sec. 804) that would 
     amend section 142 of the National Defense Authorization Act 
     for Fiscal Year 1993 (Public Law 102-484) to authorize the 
     Secretary of Defense to waive the survivability testing 
     requirements contained in section 2366 of title 10, United 
     States Code, for the MH-47E and MH-60K helicopters prior to 
     full materiel release of those systems.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Compliance with existing law regarding purchases of equipment 
         and products (sec. 825)
       The House bill contained a provision (sec. 813) that would 
     limit funds to be expended by an entity of the Department of 
     Defense (DOD) unless the entity agrees to comply with the Buy 
     America Act, express the sense of Congress stating that DOD 
     should only purchase American-made equipment and products, 
     and require the Secretary of Defense to determine whether a 
     person should be debarred from federal contracting if that 
     person has been convicted of fraudulent use of ``Made in 
     America'' labels.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would strike the 
     limitation on funding and express the sense of Congress that 
     DOD should fully comply with the Buy America Act and section 
     2533, title 10, United State Code, regarding determinations 
     of public interest under the Buy American Act.
     Requirement to disregard certain agreements in awarding 
         contracts for the purchase of firearms or ammunition 
         (sec. 826)
       The House bill contained a provision (sec. 810) that would 
     prohibit the Department of Defense from using a preference 
     for the procurement of items from a marketer or vendor of 
     firearms or ammunition that has entered into an agreement to 
     abide by a designated code of conduct, operating practice, or 
     product design.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

                    Subtitle D--Studies and Reports

     Study on impact of foreign sourcing of systems on long-term 
         military readiness and related industrial infrastructure 
         (sec. 831)
       The House bill contained a provision (sec. 809) that would 
     require the Secretary of Defense to study and provide a 
     report to Congress on whether parts, components, and 
     materials of certain systems are obtained through domestic 
     sources or from foreign sources, and the impact on military 
     readiness of purchasing such items from foreign sources.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     scope and requirements of the study.
     Study of policies and procedures for transfer of commercial 
         activities (sec. 832)
       The Senate amendment contained a provision (sec. 817) that 
     would require the Comptroller General to convene a panel to 
     study rules and procedures for public-private competitions 
     for the performance of government commercial activities.
       The House bill contained no similar provision.
       The House recedes with an amendment that clarifies the 
     scope and timing of the study.
     Study and report on practice of contract bundling in military 
         construction contracts (sec. 833)
       The House bill contained a provision (sec. 811) that would 
     would require the Comptroller General to study the use 
     ``contract bundling'' in military construction contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Requirement to conduct study on contract bundling (sec. 834)
       The House bill contained a provision (sec. 812) that would 
     require the Secretary of Defense to conduct a comprehensive 
     study of contract bundling by the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would strike the 
     requirement for the establishment of a contracting data base 
     and require that the study review the effect of contract 
     bundling on historically underutilized business zones.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Management of acquisition of mission-essential software for 
         major defense acquisition programs
       The House bill contained a provision (sec. 803) that would 
     require the Under Secretary of Defense for Acquisition, 
     Technology, and Logistics to designate a Director of Mission-
     Essential Software Management.
       Senate amendment contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of Defense to report to 
     Congress by March 1, 2001, on: (1) the roles of the 
     Undersecretary of Defense for Acquisition and Technology and 
     the Chief Information Officer of the Department of Defense 
     (DOD) in developing, managing, and reviewing policies 
     regarding the procurement of mission-essential software; and 
     (2) the amount of funds for information technology and 
     software used to support Department of Defense weapon 
     systems.
     Repeal of requirement for contractor assurances regarding the 
         completeness, accuracy, and contractual sufficiency of 
         technical data provided by contractor
       The Senate amendment contained a provision (sec. 805) that 
     would eliminate the requirement for contractors providing 
     technical data to the government to furnish written 
     assurances that the technical data is complete, accurate, and 
     satisfies the requirements of the contract.
       The House bill contained no similar provision.
       The Senate recedes.
     Revision of the organization and authority of the cost 
         accounting standards board
       The Senate amendment contained a provision (sec. 814) that 
     would modify the composition of the cost accounting standards 
     (CAS) board and provide CAS waiver authority for firm fixed 
     price contracts for which the requirement to provide cost or 
     pricing data was waived.
       The House bill contained no similar provision.

[[Page 21694]]

       The Senate recedes.
     Technical data rights for items developed exclusively at 
         private expense
       The House bill contained a provision (sec. 802) that would 
     amend section 2320 of title 10, United States Code, by 
     modifying the circumstances under which a contractor would be 
     considered responsive to a solicitation.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that section 2320 of title 10, United 
     States Code, establishes the statutory basis for regulations 
     governing rights in technical data under Department of 
     Defense contracts. This provision establishes the basic rule 
     that the government has unlimited rights to technical data 
     developed exclusively with federal funds; the government does 
     not generally have rights in technical data established 
     exclusively at private expense; and rights to data developed 
     in part with federal funds and in part at private expense are 
     negotiable. When the government purchases an item developed 
     exclusively at private expense, however, section 2320 
     reserves the government's limited right to technical data 
     that `` * * * is necessary for operation, maintenance, 
     installation, or training (other than detailed manufacturing 
     or process data).''
       Department of Defense officials have noted that it is 
     increasingly common that commercially-developed systems or 
     components are either returned to the manufacturer for repair 
     or discarded. In such cases, these officials state, the 
     government does not need technical data, and the insistence 
     that contractors provide such data could discourage 
     commercial companies from doing business with the government.
       The conferees believes that this concern is based upon a 
     misreading of the statute. Section 2320 requires contractors 
     to provide only technical data that ``is necessary'' for 
     operation, maintenance, installation, or training. This 
     requirement provides executive branch officials with the 
     flexibility to determine what data, if any, is necessary for 
     these limited purposes. If, in view of the manner in which 
     the system or component will be used, no data is necessary 
     for these purposes, the government should not require the 
     seller to provide any such data. The conferees direct the 
     Department to review the regulations implementing section 
     2320 and adopt any changes that may be necessary to clarify 
     this point.

      Title IX--Department of Defense Organization and Management


                     LEGISLATIVE PROVISIONS ADOPTED

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

     Overall supervision of Department of Defense activities for 
         combating terrorism (sec. 901)
       The Senate amendment contained a provision (sec. 902) that 
     would designate the Assistant Secretary of Defense for 
     Special Operations and Low-Intensity Conflict (ASD-SOLIC) as 
     the principal civilian advisor to the Secretary of Defense 
     on, and the principal official within the senior management 
     of the Department of Defense (DOD) (after the Secretary and 
     Deputy Secretary of Defense) responsible for, combating 
     terrorism. The ASD-SOLIC would provide overall direction and 
     supervision for policy, program planning and execution, and 
     allocation and use of resources for the activities of the 
     Department of Defense for combating terrorism, including 
     antiterrorism activities, counterterrorism activities, 
     terrorism consequence management activities, and terrorism-
     related intelligence support activities.
       The House bill contained no similar provision.
       The House recedes with an amendment that provides the 
     Secretary with the discretion to designate any one of the 
     assistant secretaries with the overall supervision of the 
     Department's combating terrorism activities. The amendment 
     specifies that should the Secretary designate an assistant 
     secretary other than ASD-SOLIC, then the responsibilities of 
     the ASD-SOLIC related to combating terrorism shall be 
     exercised subject to this provision.
     Change of title of certain positions in the Headquarters, 
         Marine Corps (sec. 902)
       The House bill contained a provision (sec. 901) that would 
     abolish the positions of Chief of Staff and Deputy and 
     Assistant Chiefs of Staff from Headquarters, Marine Corps, 
     and would authorize five Deputy Commandant positions within 
     Headquarters, Marine Corps.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Clarification of scope of Inspector General authorities under 
         military whistleblower law (sec. 903)
       The House bill contained a provision (sec. 903) that would 
     clarify the responsibilities of inspectors general under 
     section 1034 of title 10, United States Code, and would also 
     clarify that the provisions of this statute applied to any 
     officer of the armed forces or civilian employee of the 
     Department of Defense assigned or detailed to serve as an 
     Inspector General at any level in the Department.
       The Senate amendment contained a similar provision (sec. 
     905).
       The Senate recedes.
     Policy to ensure conduct of science and technology programs 
         so as to foster the transition of science and technology 
         to higher levels of research, development, test, and 
         evaluation (sec. 904)
       The Senate amendment contained a provision (sec. 914) that 
     would clarify the duties of the Chief of Naval Research to 
     stress the responsibility for transition of science and 
     technology to higher levels of research, development, test 
     and evaluation (RDT&E).
       The House bill contained no similar provision.
       The House recedes with an amendment that would emphasize 
     the role in fostering the transition of science and 
     technology to higher levels for all of the officers currently 
     assigned such duties: the Undersecretary of Defense for 
     Acquisition, Technology and Logistics, the secretaries of the 
     military departments, and directors of defense agencies with 
     assigned research, development, test, and evaluation. The 
     provision would also specifically address the role of the 
     Chief of Naval Research relative to assigned duties relating 
     to basic and applied research and advanced technology 
     development as provided in section 5022 of Title 10, United 
     States Code. By transition to higher levels of RDT&E, the 
     conferees intend to include the following: transition of 
     technology to higher budget categories of RDT&E to useful 
     application in industry to operational military techniques; 
     to accessing, retaining, training and educating military and 
     civilian members of the Department of Defense; to procurement 
     and to other applications that improve the effectiveness or 
     reduce the cost of equipment or operations within the 
     Department.
       The conferees are concerned that the percentage of 
     technology initiatives incorporated into acquisition programs 
     continues to be low. In some cases, this transition problem 
     may be attributable to the rapid pace of technological 
     developments and the comparatively slow pace of the 
     acquisition system. However, there also appears to be a 
     communication problem between the science and technology 
     community and the acquisition community in all three 
     services. The conferees believe that a strong commitment to 
     technology transition is needed in both communities to ensure 
     the successful incorporation of technology developments into 
     weapon systems.
     Additional components of Chairman of the Joint Chiefs of 
         Staff annual report on combatant command requirements 
         (sec. 905)
       The Senate amendment contained a provision (sec. 1021) that 
     would amend section 153 of title 10, United States Code, to 
     require the Chairman of the Joint Chiefs to include within 
     his report to Congress on the readiness requirements of the 
     combatant commanders information on the extent to which those 
     requirements are addressed in the Future Years Defense 
     Program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend the 
     date of the report to February 1 of each year, and would 
     require the identification of the extent to which the Future 
     Years Defense Program includes funds to address the 
     capability shortfalls identified during the Joint Readiness 
     Review conducted during the first quarter of the fiscal year.

             Subtitle B--Department of Defense Organization

     Western Hemisphere Institute for Security Cooperation (sec. 
         911)
       The House bill contained a provision (sec. 908) that would 
     amend Chapter 108 of Title 10, United States Code, 
     authorizing the Army to operate the U.S. Army School of the 
     Americas and would authorize the Secretary of Defense to 
     operate a Defense Institute for Hemispheric Security 
     Cooperation. The institute would be operated for the purpose 
     of providing professional education and training in defense 
     and security matters to military, law enforcement and 
     civilian personnel of nations of the Western Hemisphere. The 
     curricula of the institute would include a minimum of eight 
     hours of instruction per student in human rights, the rule of 
     law, due process, civilian control of the military, and the 
     role of the military in a democratic society. There would be 
     a board of visitors to oversee the activities and curricula 
     of the institute and the board would submit an annual report 
     to the Secretary of Defense and, in turn, to Congress.
       The Senate amendment contained a provision (sec. 1204) that 
     would amend Chapter 108 of Title 10, United States Code, 
     authorizing the Army to operate the U.S. Army School of the 
     Americas and would authorize the Secretary of Defense to 
     operate a Western Hemisphere Institute for Professional 
     Education and Training. The institute would be operated for 
     the purpose of providing professional education and training 
     to military, law enforcement and civilian personnel of the 
     Western Hemisphere in areas such as leadership development, 
     counterdrug operations, peace support operations, and 
     disaster relief. The curricula of the institution would 
     include, at a minimum, eight hours of instruction relating to 
     human rights, the rule of law, due process, civilian control 
     of the military, and the role of the military in a democratic 
     society. There would be a board

[[Page 21695]]

     of visitors, including four members of Congress and six 
     members from academia, the religious community, and the human 
     rights community, to review the institute's curricula and 
     instruction. The board would submit an annual report to the 
     Secretary of Defense. The Secretary of Defense would submit 
     an annual report, in coordination with the Secretary of State 
     and the heads of other agencies, to Congress detailing the 
     activities of the institute during the previous calendar 
     year.
       The House recedes with an amendment that would name the 
     institute the Western Hemisphere Institute for Security 
     Cooperation; modify the composition of the board of visitors 
     to include the Chairman and Ranking Members of the Armed 
     Services Committees of the Senate and the House of 
     Representatives, or their designees; modify the role of the 
     Secretary of State with regard to the selection of the 
     institute's foreign students; and require the Secretary of 
     Defense to consult only with the Secretary of State in the 
     preparation of the annual report.
     Department of Defense regional centers for security studies 
         (sec. 912)
       The House bill contained a provision (sec. 909) that would 
     amend title 10, United States Code, to consolidate various 
     authorities that currently exist regarding the operation of 
     Department of Defense (DOD) regional centers for security 
     studies. The provision would also require congressional 
     notification of an intent to establish additional regional 
     centers and an annual report to Congress by the Secretary of 
     Defense on the status, objectives, and operations of the 
     regional centers.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the consolidation requirement and expand the annual report 
     section by requiring that budgetary and international 
     participation information be included in the report. The 
     amendment would also require the first annual report to 
     include any recommendation for legislation that the Secretary 
     considers appropriate for the operation of DOD regional 
     centers.
       The conferees note their intent to address next year the 
     full range of issues identified by the Department, taking 
     into account the information contained in the report required 
     by this section.
     Change in name of Armed Forces Staff College to Joint Forces 
         Staff College (sec. 913)
       The House bill contained a provision (sec. 910) that would 
     amend section 2165 of title 10, United States Code, to change 
     the name of the Armed Forces Staff College to Joint Forces 
     Staff College.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Special authority for administration of Navy Fisher Houses 
         (sec. 914)
       The Senate amendment contained a provision (sec. 908) that 
     would clarify the degree to which the Navy Fisher Houses may 
     be provided common support equivalent to category B community 
     support activities and would permit the current general 
     schedule employees to continue to serve until they leave 
     those positions.
       The House bill contained no similar provision.
       The House recedes.
     Supervisory control of Armed Forces Retirement Home Board by 
         Secretary of Defense (sec. 915)
       The Senate amendment contained a provision (sec. 911) that 
     would require the Armed Forces Retirement Home Board to be 
     subject to the authority, direction, and control of the 
     Secretary of Defense on the performance of its 
     responsibilities, and would give the Secretary of Defense 
     authority over appointment and terms of board members, and 
     would make the Chairman of the Retirement Home Board 
     responsible to the Secretary of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish 
     the effective date for the provision as the date on which the 
     Secretary of Defense increases the monthly contribution of 
     enlisted and warrant officer personnel from $0.50 to $1.00 
     per month.
     Semiannual report on the Joint Requirements Oversight Council 
         reform initiative (sec. 916)
       The Senate amendment contained a provision (sec. 1022) that 
     would require the Chairman of the Joint Chiefs of Staff to 
     submit a semiannual report to the congressional defense 
     committees on specific activities of the Joint Requirements 
     Oversight Council.
       The House bill contained no similar provision.
       The House recedes with an amendment that would terminate 
     the requirement for this report upon submission of a fifth 
     and final report no later than March 1, 2003. The amendment 
     would establish reporting periods and specific dates for the 
     submission of the required reports and clarifies specific 
     reporting requirements.
     Comptroller General review of operations of Defense Logistics 
         Agency (sec. 917)
       The Senate bill contained a provision (sec. 1025) that 
     would require the Comptroller General to conduct a review of 
     all the functions of the Defense Logistics Agency to assess 
     their efficiency, their effectiveness in meeting customer 
     needs, their ability to adopt best business practices, and to 
     identify alternative approaches for improving the agency's 
     operations.
       The House amendment had no similar provision.
       The House recedes.
     Comptroller General review of operations of Defense 
         Information Systems Agency (sec. 918)
       The Senate amendment contained a provision (sec. 1026) that 
     would require the Comptroller General to conduct a 
     comprehensive review of the operations of the Defense 
     Information Systems Agency and make such recommendations that 
     the Comptroller General determines would improve the support 
     that this agency provides to the military services.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                    Subtitle C--Information Security

     Institute for Defense Computer Security and Information 
         Protection (sec. 921)
       The Senate amendment contained a provision (sec. 1041) that 
     would require the Secretary of Defense to establish an 
     Institute for Defense Computer Security and Information 
     Protection to conduct research and technology development in 
     the area of information assurance and to facilitate the 
     exchange of information regarding cyberthreats, technology, 
     tools, and other relevant issues. The provision would also 
     authorize $10.0 million for the Institute.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     $5.0 million for the Institute.
     Information security scholarship program (sec. 922)
       The Senate amendment contained a provision (sec. 1042) that 
     would amend Part III of subtitle A of title 10, United States 
     Code, by establishing an Information Security Scholarship 
     Program. The program would authorize the Secretary of Defense 
     to award grants to institutions of higher education to 
     establish or improve programs in information security and to 
     provide financial assistance to persons pursuing a 
     baccalaureate or advanced degree in information assurance. 
     Grant recipients would incur a government service commitment 
     commensurate with the educational benefit, as determined by 
     the Secretary. The provision would also authorize $20.0 
     million to support the program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary to utilize the scholarship program to support 
     associate degrees or certification programs in information 
     security, in addition to baccalaureate or advanced degrees, 
     and would authorize $15.0 million to support the program.

                          Subtitle D--Reports

     Date of submittal of reports on shortfalls in equipment 
         procurement and military construction for reserve 
         components in future-years defense programs (sec. 931)
       The Senate amendment contained a provision (sec. 1024) that 
     would amend section 10543 of title 10, United States Code, to 
     specify that the report required by the section be submitted 
     not later than 15 days after the date on which the President 
     submits to Congress the budget for a fiscal year.
       The House bill contained no similar provision.
       The House recedes.
     Report on number of personnel assigned to legislative liaison 
         functions (sec. 932)
       The House bill contained a provision (sec. 904) that would 
     require the Secretary of Defense to provide to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives, not later than December 1, 2000, a report 
     identifying all personnel assigned to legislative affairs and 
     legislative liaison functions throughout the military 
     departments and all defense agencies.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Joint report on establishment of national collaborative 
         information analysis capability (sec. 933)
       The House bill contained a provision (sec. 905) that would: 
     (1) require the Secretary of Defense and the Director of 
     Central Intelligence to prepare a joint report assessing 
     alternatives for the establishment of a national 
     collaborative information analysis capability; (2) require 
     the Secretary of Defense to complete the data mining, 
     profiling, and analysis capability of the Army's Land 
     Information Warfare Activity; and (3) restrict funds to 
     establish, support, or implement a data mining and analysis 
     capability until such a capability is specifically authorized 
     by law.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) 
     require the Secretary of Defense and the Director of Central 
     Intelligence to prepare a joint report assessing alternatives 
     for the establishment of a national collaborative information 
     analysis capability; and (2) require the Secretary of Defense 
     to complete the data mining, profiling,

[[Page 21696]]

     and analysis capability of the Army's Land Information 
     Warfare Activity. The amendment would not restrict funds, but 
     would require the Secretary to make appropriate use of such 
     capability to provide support to appropriate national defense 
     components.
     Network centric warfare (sec. 934)
       The House bill contained a provision (sec. 907) that would 
     require the Secretary of Defense to submit a report to the 
     congressional defense committees outlining the efforts of the 
     Department to define and integrate network centric warfare 
     concepts into its vision for future military operations.
       The Senate amendment contained a similar provision (sec. 
     906) that would require the Secretary of Defense to submit 
     three reports: (1) a report on the implementation of network 
     centric warfare principles; (2) a study on the use of joint 
     experimentation for developing network centric warfare 
     concepts; and (3) a report on science and technology programs 
     to support network centric warfare concepts.
       The House recedes with an amendment that would establish a 
     requirement for the Secretary of Defense to submit two 
     reports: (1) a report on implementation of network centric 
     warfare principles; and (2) a study on the use of joint 
     experimentation for developing network centric warfare 
     concepts. The amendment would further clarify specific 
     elements of the information to be included in the reports.
     Report on Air Force Institute of Technology (sec. 935)
       The Senate amendment contained a provision (sec. 915) that 
     would amend Part III of subtitle D of title 10, United States 
     Code, to codify the Air Force Institute of Technology and 
     provide a sense of the Senate that the Air Force should 
     review the organizational structure and operations of the 
     institute.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of the Air Force to submit a report to the 
     Committee on Armed Services of the Senate and the House of 
     Representatives on the roles and missions, organizational 
     structure, funding, and operations of the Air Force Institute 
     of Technology as projected through 2010.

                       Subtitle E--Other Matters

     Flexibility in implementation of limitation on major 
         Department of Defense headquarters activities personnel 
         (sec. 941)
       The Senate amendment contained a provision (sec. 901) that 
     would repeal the requirement to reduce the number of 
     personnel assigned to major Department of Defense 
     headquarters activities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 130a of title 10, United States Code, to give the 
     Secretary of Defense the discretion to reduce the required 
     personnel reductions in major Department of Defense 
     headquarters by a cumulative total of 7.5 percent following a 
     certification to Congress that execution of the current 15 
     percent reductions would adversely impact National Security.
     Consolidation of certain Navy gift funds (sec. 942)
       The Senate amendment contained a provision (sec. 912) that 
     would authorize the Secretary of the Navy to transfer all 
     amounts in the Naval Historical Center Fund to the Department 
     of the Navy General Gift Fund and to close the Naval 
     Historical Fund. The provision would authorize the Secretary 
     of the Navy to transfer all amounts in the United States 
     Naval Academy Museum Fund to the gift fund maintained for the 
     benefit and use of the United States Naval Academy and to 
     close the United States Naval Academy Museum fund.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Temporary authority to dispose of a gift previously accepted 
         for the Naval Academy (sec. 943)
       The Senate amendment contained a provision (sec. 913) that 
     would authorize the Naval Academy to, during fiscal year 2001 
     and at the request of the donor, transfer a gift previously 
     given to the Naval Academy Gift Fund to another entity.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Defense acquisition workforce
       The House bill contained a provision (sec. 902) that would 
     require the Secretary of Defense to implement 13,000 
     reductions in the Department of Defense acquisition workforce 
     in fiscal year 2001 and would direct the Secretary of Defense 
     to provide a report containing an implementation plan for re-
     shaping, recruiting, and sustaining the Department's 
     acquisition workforce and any changes in statutory 
     authorities that the Secretary deems necessary.
       The Senate amendment contained a provision (sec. 812) that 
     would establish a moratorium on further cuts in the 
     acquisition workforce for three years and require a report on 
     the sufficiency of the acquisition and support workforce of 
     the Department of Defense.
       The conference agreement does not include this provision.
     National Defense Panel 2001
       The Senate amendment contained a provision (sec. 903) that 
     would require the Secretary of Defense to establish a non-
     partisan, independent panel to be known as the National 
     Defense Panel 2001, to accompany the Quadrennial Defense 
     Review being conducted in 2001.
       The House bill contained no similar provision.
       The Senate recedes.
     Quadrennial National Defense Panel
       The Senate amendment contained a provision (sec. 904) that 
     would amend title 10, United States Code, to require that the 
     Secretary of Defense establish, on a recurring basis, every 
     four years in the year preceding the inauguration of a 
     President, a non-partisan, independent panel to be known as 
     the National Defense Panel to complement the Quadrennial 
     Defense Review.
       The House bill contained no similar provision.
       The Senate recedes.

                      Title X--General Provisions


                     legislative provisions adopted

                     Subtitle A--Financial Matters

     Transfer authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     provide the reprogramming authority for the transfer of 
     authorized funds made available in Division A of this Act.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Incorporation of classified annex (sec. 1002)
       The House bill contained a provision (sec. 1002) that would 
     incorporate the classified annex prepared by the Committee on 
     Armed Services into this Act.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment that would 
     provide that the classified annex prepared by the committee 
     of conference be incorporated into this Act.
     Authorization of emergency supplemental appropriations for 
         fiscal year 2000 (sec. 1003)
       The House bill contained a provision (sec. 1003) that would 
     authorize the emergency supplemental appropriations enacted 
     in the 2000 Supplemental Appropriations and Rescissions Act 
     (Public Law 106-246) or in title IX of the Department of 
     Defense Appropriations Act, 2001 (Public Law 106-259). The 
     supplemental provided funding for fiscal year 2000 expenses 
     related to military operations in Kosovo, drug interdiction 
     and counter-drug activities, and natural disasters
       The Senate amendment contained a similar provision.
       The House recedes with a technical amendment.
     United States contribution to NATO common-funded budgets in 
         fiscal year 2001 (sec. 1004)
       The Senate amendment contained a provision (sec. 1003) that 
     would authorize the U.S. contribution to NATO common-funded 
     budgets for fiscal year 2001, including the use of unexpended 
     balances from prior years. The resolution of ratification for 
     the Protocols to the North Atlantic Treaty of 1949 on the 
     Accession of Poland, Hungary and the Czech Republic contained 
     a provision (section 3(2)(c)(ii)) requiring a specific 
     authorization for U.S. payments to the common-funded budgets 
     of NATO for each fiscal year, beginning in fiscal year 1999, 
     that payments exceed the fiscal year 1998 total.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Limitation on funds for Bosnia and Kosovo peacekeeping 
         operations for fiscal year 2001 (sec. 1005)
       The House bill contained a provision (sec. 1005) that would 
     limit the amount of funds authorized to be appropriated for 
     incremental costs of the armed forces for peacekeeping 
     operations in Bosnia and Kosovo in fiscal year 2001 to the 
     amounts contained in the budget request: $1,387.8 million for 
     Bosnia and $1,650.4 million for Kosovo. The provision would 
     authorize the President to waive the limitation after 
     submitting to Congress: (1) a written certification that the 
     waiver is necessary in the national security interests of the 
     United States and that the exercise of the waiver will not 
     adversely affect the readiness of U.S. military forces; (2) a 
     report setting forth the reasons for the waiver, to include a 
     discussion of the impact of U.S. military involvement in 
     Balkan peacekeeping operations on U.S. military readiness; 
     and (3) a supplemental appropriations request for the 
     Department of Defense for the additional fiscal year 2001 
     costs associated with U.S. military participation in or 
     support for peacekeeping operations in Bosnia and Kosovo.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

[[Page 21697]]


     Requirement for prompt payment of contract vouchers (sec. 
         1006)
       The Senate amendment contained a provision (sec. 1005) that 
     would require the Secretary of Defense to reduce the backlog 
     of vouchers to be paid by the Defense Finance and Accounting 
     Service to five percent or less of the total Mechanization of 
     Contract Administration Service vouchers received. The 
     provision would further require the Secretary of Defense to 
     submit a report to Congress for any month in which the five 
     percent goal is not met. The House bill contained no similar 
     provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to continue to report to Congress for 
     the next four years.
     Plan for the prompt recording of obligations of funds for 
         contractual transactions (sec. 1007)
       The Senate amendment contained a provision (sec. 1007) that 
     would require the Secretary of Defense to submit a plan 
     concerning the timely posting of obligations uniformly 
     throughout the Department of Defense.
       The House bill contained no similar provisions.
       The House recedes with a technical and clarifying 
     amendment.
     Electronic submission and processing of claims for contract 
         payments (sec. 1008)
       The Senate amendment contained a provision (sec. 1008) that 
     would require the Secretary of Defense to submit a plan to 
     the congressional defense committees by March 31, 2001, for 
     the electronic submission of contract supporting 
     transactions, such as invoices, receiving reports, and 
     certifications. The provision would also require the 
     Secretary to carry out this plan without establishing a 
     specific deadline.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide for 
     a waiver in cases where the Secretary determines that the 
     requirement for using electronic means for submitting claims 
     for a particular type of contracts is unduly burdensome and 
     establishes an implementation date of June 30, 2001, that may 
     be waived until October 1, 2002.
     Administrative offsets for overpayment of transportation 
         costs (sec. 1009)
       The Senate amendment contained a provision (sec. 1009) that 
     would provide a streamlined offset procedure for amounts 
     overpaid for transportation services that are below the 
     simplified acquisition threshold of $100,000. The amounts 
     offset would be credited to the appropriation or accounts 
     that funded the transportation service.
       The House bill contained no similar provision.
       The House recedes with an amendment that would ensure an 
     appeals process in cases where the vendor challenges the 
     amount of the administrative offset.
     Interest penalties for late payments of interim payments due 
         under Government service contracts (sec. 1010)
       The Senate amendment contained a provision (sec. 1010A) 
     that would require the payment of interest on vouchers for 
     service received and not paid for more than 30 days.
       The House bill contained no similar provision.
       The House recedes with a technical and clarifying 
     amendment.

                Subtitle B--Naval Vessels and Shipyards

     Revisions to national defense features program (sec. 1011)
       The House bill contained a provision (sec. 1011) that would 
     amend section 2218 of title 10, United States Code, to permit 
     the payment to a vessel operator, as consideration for making 
     a vessel available to the government, on such terms as the 
     Secretary of Defense or the secretary of a military 
     department and the operator agree, in an amount equal to the 
     cost of maintaining the vessel in a four day reduced 
     operating status (ROS-4) condition in the ready reserve fleet 
     for a period of 25 years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     notification to Congress 90 days prior to entering into a 
     contract for national defense features authorized by this 
     provision.
     Sense of Congress on the naming of the CVN-77 aircraft 
         carrier (sec. 1012)
       The Senate amendment contained a provision (sec. 1058) that 
     would express a sense of Congress that the President 
     designate the final Nimitz-class aircraft carrier, CVN-77, as 
     the U.S.S. Lexington.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Authority to transfer naval vessels to certain foreign 
         countries (sec. 1013)
       The Senate amendment contained a provision (sec. 1201) that 
     would authorize the Secretary of the Navy to transfer to 
     various countries on a combined lease-sale basis the 
     following: four Kidd-class destroyers and four Oliver Hazard 
     Perry-class frigates; and, on a grant basis, two Thomaston-
     class dock landing ships, four Garcia-class frigates, one 
     Dixie-class destroyer tender, and two Knox-class frigates. 
     Any expense incurred by the United States in connection with 
     these transfers would be charged to the recipient. The 
     provision would also: (1) direct that, to the maximum extent 
     possible, the Secretary of the Navy shall require, as a 
     condition of transfer, that repair and refurbishment 
     associated with the transfer be accomplished in a shipyard 
     located in the United States; and (2) stipulate that the 
     authority to transfer these vessels will expire at the end of 
     a two-year period that begins on the date of enactment of the 
     National Defense Authorization Act for Fiscal Year 2001.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the President to transfer to various countries the following: 
     four Oliver Hazard Perry-class frigates on a combined lease-
     sale basis; and, on a grant basis, two Thomaston-class dock 
     landing ships, four Garcia-class frigates, and two Knox-class 
     frigates.
     Authority to consent to retransfer of alternative former 
         naval vessel by Government of Greece (sec. 1014)
       The Senate amendment contained a provision (sec. 1212) that 
     would provide authority for the retransfer of ex-LST 325 or 
     any other former U.S. LST that is excess to the needs of the 
     government of Greece.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                  Subtitle C--Counter-Drug Activities

       The budget request for drug interdiction and other counter-
     drug activities of the Department of Defense (DOD) included 
     approximately $1,070.1 million for fiscal year 2001: $836.3 
     million for the central transfer account, $155.9 million 
     within the operating budgets of the military services for 
     authorized counter-drug operations, and $76.8 million in the 
     military construction account (division B of this Act) for 
     infrastructure improvements at the forward operating 
     locations.
       The conferees recommend the following fiscal year 2001 
     budget for the Department's counter-drug activities.


Drug interdiction & counter-drug activities, operations and maintenance 
                        & military construction

         [In millions of dollars; may not add due to rounding]

Fiscal Year 2001 Counter-drug Request..........................$1,070.1
  Goal 1 (Dependent Demand Reduction)..............................22.7
  Goal 2 (Support to DLEAs)........................................89.9
  Goal 3 (DOD Personnel Demand Reduction)..........................74.0
  Goal 4 (Drug Interdiction--TZ/SWB)..............................447.4
  Goal 5 (Supply Reduction).......................................435.9
Increases:
  Caper Focus.......................................................6.0
  Puerto Rico ROTHR Security........................................1.0
  Southwest Border Fence............................................5.0
  Tethered Aerostat................................................10.0
  National Guard Counter-drug Activities...........................25.0
  Global Hawk......................................................18.0
  Other counter-narcotics activities...............................23.1
Decreases:
  Air National Guard Fighter Counter-Drug Operations................5.0
  Carribean Law Enforcement Support.................................3.0
  Patrol Coastal Upgrades...........................................3.0
  Mexico Counter-Drug Support.......................................3.0
  Plan Colombia....................................................41.4
  Forward Operating Locations(division B)..........................76.8
Emergency Supplemental Appropriations Act, 2000 (division B of 
    Public Law 106-246                                            270.6
  Forward Operating Locations.....................................116.5
  Plan Colombia...................................................154.1
Fiscal Year 2001 Counter-drug Funding...........................1,026.0
     National Guard counter-drug activities
       The conferees agree to authorize an increase of $25.0 
     million for the counter-drug activities of the National Guard 
     including regional counter-drug training operations such as 
     the Regional Counter-Drug Training Academy, and the Northeast 
     Counter-Drug Training Center.
     Global Hawk
       The conferees agree to authorize $18.0 million for the 
     concept demonstration of the Global Hawk unmanned aerial 
     vehicle in a counter-drug role as required in title II this 
     bill.
     Other
       The conferees agree to authorize $23.1 million for 
     additional high-value counter-narcotics activities of the 
     Department of Defense.
     Caribbean law enforcement support
       The budget request included $6.7 million for assistance to 
     law enforcement agencies of

[[Page 21698]]

     Carribean nations. The conferees agree to authorize a 
     decrease of $3.0 million for this activity. The conferees 
     expect the Department of State to provide support for this 
     activity in the future.
     Plan Colombia
       The conferees agree to authorize a decrease of $41.4 
     million for Plan Colombia to reflect the fact that these 
     funds were provided through the Emergency Supplemental 
     Appropriations Act, 2000 (division B of Public Law 106-246).
     Forward operating locations
       The conferees agree to authorize a decrease of $76.8 
     million, as indicated in division B of this Act, for forward 
     operating locations to reflect the fact that these funds were 
     provided through the Emergency Supplemental Appropriations 
     Act, 2000 (division B of Public Law 106-246).
     Extension of authority to provide additional support for 
         counter-drug activities of Colombia (sec. 1021)
       The Senate amendment contained a provision (sec. 1011) that 
     would extend through fiscal year 2006 the authority for the 
     Department of Defense to provide counter-drug assistance to 
     the Government of Colombia. The provision would also increase 
     the level of resources authorized to be expended through this 
     authority to $40.0 million each fiscal year.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the extension of the current program for Colombia through 
     fiscal year 2006.
     Report on Department of Defense expenditures to support 
         foreign counter-drug activities (sec. 1022)
       The House bill contained a provision (sec. 1021) that would 
     require the Secretary of Defense to provide the congressional 
     defense committees with a report that details the expenditure 
     of funds by the Secretary during fiscal year 2000 in direct 
     or indirect support of the counter-drug activities of foreign 
     governments.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Recommendations on expansion of support for counter-drug 
         activities (sec. 1023)
       The Senate amendment contained a provision (sec. 1012) that 
     would require the Secretary of Defense to provide a report to 
     the Committees on Armed Services of the Senate and House of 
     Representatives that would outline the Secretary's 
     recommendations on expanding the Department of Defense 
     counter-drug authorities under section 1033 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85).
       The House bill contained no similar provision.
       The House recedes.
     Review of riverine counter-drug program (sec. 1024)
       The Senate amendment contained a provision (sec. 1013) that 
     would require the Secretary of Defense, acting through the 
     Assistant Secretary of Defense for Special Operations and Low 
     Intensity Conflict, to review the riverine counter-drug 
     program and provide a report to Congress on the results of 
     that review. The report should include an assessment of the 
     effectiveness of the program for each country receiving 
     support and a recommendation regarding which of the armed 
     forces, units of the armed forces, or other organizations 
     within the Department of Defense should be responsible for 
     managing the program.
       The House bill contained no similar provision.
       The House recedes.
     Report on tethered aerostat radar system (sec. 1025)
       The House bill contained a provision (sec. 1022) that would 
     require the Secretary of Defense, in consultation with the 
     Commissioner of Customs, to provide Congress with a report on 
     the status of the tethered aerostat radar system used to 
     conduct counter-drug detection and monitoring, and border 
     security and air sovereignty operations.
       The Senate amendment contained a provision (sec. 315) that 
     would authorize $33.0 million for continued operation and 
     standardization of the tethered aerostat radar system.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to consult with the Secretary of the 
     Treasury in the preparation of the report.
       The conferees also agree to authorize an increase of $10.0 
     million for this program in the central transfer account, and 
     an increase of $8.5 million for this program in title III of 
     this Act.
     Sense of Congress regarding use of the armed forces for 
         counter-drug and counter-terrorism activities (sec. 1026)
       The House bill contained a provision (sec. 1041) that would 
     authorize the use of military personnel to assist the 
     Immigration and Naturalization Service and the Customs 
     Service in preventing the entry of terrorists, drug 
     traffickers, weapons of mass destruction, illegal narcotics 
     and related items into the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the President, as provided for under 
     current law, should be able to use military personnel to 
     assist law enforcement agencies in preventing the entry of 
     terrorists, drug traffickers, weapons of mass destruction, 
     illegal narcotics and related items into the United States. 
     This provision would not supercede section 375 of title 10, 
     United States Code, which specifically prohibits ``direct 
     participation by a member of the Army, Navy, Air Force, or 
     Marine Corps in a search, seizure, arrest, or other similar 
     activity,'' or section 1385 of title 18, United States Code, 
     which specifically prohibits the use of the military to 
     execute the laws.
       The conferees note that sections 373 and 374 of title 10, 
     United States Code, allow the Secretary of Defense to make 
     military personnel available to train, advise, and assist 
     federal, state, and local civilian law enforcement agencies 
     through the operation of equipment in support of enforcement 
     activities, including counter-terrorism and counter-
     narcotics.

         Subtitle D--Counterterrorism and Domestic Preparedness

     Preparedness of military installation first responders for 
         incidents involving weapons of mass destruction (sec. 
         1031)
       The Senate amendment contained a provision (sec. 1023) that 
     would direct, not later than 90 days after the date of 
     enactment of this act, the Secretary of Defense to submit to 
     Congress a report on the program of the Department of Defense 
     (DOD) to ensure the preparedness of DOD first responders for 
     incidents involving weapons of mass destruction on military 
     installations. The provision would direct the Secretary to 
     include within the report the following: (1) a detailed 
     description of the program; (2) the schedule and costs 
     associated with the implementation of the program; (3) how 
     the program is being coordinated with first responders in the 
     communities in the localities of the installations; (4) and 
     the plan for promoting the interoperability of the equipment 
     used by first responders on DOD installations with the 
     equipment used by the first responders in the local 
     communities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     report to include a description of deficiencies in the 
     preparedness of DOD installations to respond to a weapon of 
     mass destruction incident and the plans of the Department to 
     correct those deficiencies.
     Additional weapons of mass destruction civil support teams 
         (sec. 1032)
       The House bill contained a provision (sec. 1038) that would 
     authorize the Secretary of Defense to establish up to five 
     additional Weapons of Mass Destruction Civil Support Teams 
     (WMD-CSTs) (for a total of 32), to the extent that sources of 
     funding for such additional teams are identified.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment specifying that the 
     Secretary shall establish five additional WMD-CSTs (for a 
     total of 32). The amendment also would remove language 
     stating that the Secretary shall establish the teams only to 
     the extent that sources of funding are identified. The 
     conferees note that $15.7 million is authorized, as noted 
     elsewhere in this report, to fund the five additional WMD-
     CSTs.
     Authority to provide loan guarantees to improve domestic 
         preparedness to combat cyberterrorism (sec. 1033)
       The House bill contained a provision (sec. 1036) that would 
     authorize the Secretary of Defense, subject to 
     appropriations, to guarantee the repayment of loans, up to 
     $10.0 million with respect to all borrowers, for qualified 
     commercial firms to improve their information security in 
     ways that improve the information assurance of the Department 
     of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     that the Secretary of Defense can contract out to a private 
     entity for administration of the loan guarantee program, but 
     not for the guarantees themselves.
     Report on the status of domestic preparedness against the 
         threat of biological terrorism (sec. 1034)
       The Senate amendment contained a provision (sec. 1028) that 
     would require the President to prepare a report on the status 
     of domestic preparedness against the threat of biological 
     terrorism. The report shall be delivered to the Congress not 
     later than March 31, 2001.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to prepare, in consultation with the 
     Director of Central Intelligence, an intelligence estimate 
     assessing the threat to the United States posed by a 
     terrorist using a biological weapon. The intelligence 
     estimate will also include an assessment of the relative 
     consequences of a biological terrorist attack compared to 
     attacks using other types of weapons. The Secretary shall 
     submit the intelligence estimate to Congress not later than 
     March 1, 2001.

[[Page 21699]]


     Report on strategy, policies, and programs to combat domestic 
         terrorism (sec. 1035)
       The conferees continue to be concerned about the threat of 
     domestic terrorism, particularly involving the use of weapons 
     of mass destruction (WMD), and the ability of the Federal 
     Government to counter this threat. The conferees note that 
     the Comptroller General has published a series of reports on 
     federal programs to combat domestic terrorism, documenting 
     the progress and problems in organizing and preparing to 
     respond to a domestic terrorist incident.
       The conferees agree to a provision that would require the 
     Comptroller General to provide an updated report to Congress, 
     not later than 180 days after enactment of this Act, on 
     federal strategy, policy and programs to combat domestic 
     terrorism. The conferees direct the Comptroller General to 
     include in the report on combating domestic terrorism a 
     discussion of the following issues: lead agency 
     responsibility for crisis and consequence management; 
     adequacy of existing plans formulated by the various federal 
     agencies; threat and risk assessments; command and control 
     structures; exercises, including a thorough assessment of the 
     recent Top Official Exercise 2000; cyberterrorism; and 
     research and development efforts of new technologies.

                      Subtitle E--Strategic Forces

     Revised nuclear posture review (sec. 1041)
       The Senate amendment contained a provision (sec. 1015) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of Energy, to conduct a comprehensive review of 
     the nuclear posture of the United States for the next 5 to 10 
     years.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees direct the Secretary of Defense, in 
     conducting the revised nuclear posture review, to consult 
     with the Secretary of Energy only on those matters that 
     relate to the nuclear weapons stockpile. The conferees urge 
     the Secretary of Defense to consider, in conducting the 
     revised nuclear posture review, the results of the report on 
     strategic stability under START III, as required by section 
     1503 of the National Defense Authorization Act for Fiscal 
     Year 2000 (Public Law 106-65).
     Plan for the long-term sustainment and modernization of 
         United States strategic nuclear forces (sec. 1042)
       The Senate amendment contained a provision (sec. 1016) that 
     would require the Secretary of Defense, in consultation with 
     the Secretary of Energy, to develop a long-range plan for the 
     sustainment and modernization of United States strategic 
     nuclear forces to counter emerging threats and to satisfy the 
     evolving requirements of deterrence.
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of Defense, in preparing 
     the plan, to consult with the Secretary of Energy only on 
     those matters that relate to the nuclear weapons stockpile.
     Modification of scope of waiver authority for limitation on 
         retirement or dismantlement of strategic nuclear delivery 
         systems (sec. 1043)
       The Senate amendment contained a provision (sec. 1017) that 
     would: (1) amend section 1302(b) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85) to 
     clarify that the waiver contained in that section applies to 
     all of the strategic nuclear delivery systems specified in 
     section 1302(a); and (2) following completion of a new 
     nuclear posture review, allow the President to waive the 
     limitation on retirement or dismantlement of strategic 
     nuclear delivery systems if the President determines that it 
     is in the national security interests of the United States to 
     do so.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 1302(b) of the National Defense Authorization Act for 
     Fiscal Year 1998 to modify the waiver contained in that 
     section to apply to all of the strategic nuclear delivery 
     systems specified in section 1302(a).
     Report on the defeat of hardened and deeply buried targets 
         (sec. 1044)
       The Senate amendment contained a provision (sec. 1018) that 
     would require the Secretaries of Defense and Energy to assess 
     requirements and options for defeating hardened and deeply 
     buried targets. The provision would expressly authorize the 
     Department of Energy (DOE) to conduct any limited research 
     and development that may be necessary to complete such 
     assessments.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that a recent legal interpretation of 
     existing law raised questions regarding whether DOE could 
     participate in or otherwise support certain Department of 
     Defense (DOD) studies and options assessments for defeating 
     hardened and deeply buried targets. This expressly allows DOE 
     to assist DOD with a review of these targets and the options 
     for defeating such targets. The conferees believe that DOE 
     should provide information and other assistance required to 
     help DOD make informed decisions on whether: (1) to proceed 
     with a new method of defeating hardened and deeply buried 
     targets; and (2) to seek any necessary modifications to 
     existing law.
       The conferees are concerned that the ability to defeat 
     hardened and deeply buried targets will continue to be a 
     significant challenge for the foreseeable future.
     Sense of Congress on the maintenance of the Strategic Nuclear 
         Triad (sec. 1045)
       The Senate amendment contained a provision (sec. 1019) that 
     would express a sense of the Senate that, in light of the 
     potential for further arms control agreements with the 
     Russian Federation limiting strategic forces: (1) it is in 
     the national interest of the United States to maintain a 
     robust and balanced triad of strategic nuclear delivery 
     systems; and (2) reductions to U.S. conventional bomber 
     capability are not in the national interest of the United 
     States.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express a 
     sense of Congress on this matter.

            Subtitle F--Miscellaneous Reporting Requirements

     Management review of working-capital fund activities (sec. 
         1051)
       The Senate amendment contained a provision (sec. 1030) that 
     would require the Comptroller General to review working-
     capital fund activities and identify potential process or 
     policies that would result in more efficient and economical 
     operations of those activities.
       The House bill amendment contained no similar provision.
       The House recedes.
     Report on submarine rescue support vessels (sec. 1052)
       The Senate amendment contained a provision (sec. 1031) that 
     would require the Secretary of the Navy to report on the plan 
     for providing submarine rescue support vessels through fiscal 
     year 2007.
       The House bill contained no similar provision.
       The House recedes.
     Report on Federal Government progress in developing 
         information assurance strategies (sec. 1053)
       The Senate amendment contained a provision (sec. 1032) that 
     would require the Federal Government to report on the status 
     of implementation of information assurance strategies 
     outlined in Presidential Decision Directive Number 63 and the 
     roles and responsibilities of the Department of Defense in 
     defending against attacks on the critical infrastructure of 
     the United States.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment on the scope, 
     timing, and requirements of the information reported to 
     Congress.
     Department of Defense process for decisionmaking in cases of 
         false claims (sec. 1054)
       The Senate amendment contained a provision (sec. 1065) that 
     would require the Secretary of Defense to submit to Congress 
     a report describing the policies and procedures for 
     Department of Defense decisionmaking under the Civil False 
     Claims Act (31 U.S.C. 3729 et seq.) and any changes made in 
     the policies and procedures since January 1, 2000.
       The House bill contained no similar provision.
       The House recedes with an amendment requiring that the 
     report also address the manner in which the policies and 
     procedures have been implemented.

           Subtitle G--Government Information Security Reform

     Government information security reform (secs. 1061-1065)
       The Senate amendment contained a series of provisions 
     (secs. 1401-1405) that would provide for reform of federal 
     information security practices.
       The House bill contained no similar provision.
       The House recedes with an amendment that would simplify 
     audit and evaluation requirements and would clarify the roles 
     and responsibilities of the Department of Defense (DOD).
       The amendment would establish a new subchapter of title 44, 
     United States Code, addressing the responsibilities of the 
     Office of Management and Budget (OMB) and federal agencies in 
     the area of information security. This new subchapter would 
     remain in effect for two years after the effective date of 
     the provision. The amendment would provide specific guidance 
     on the responsibilities of certain agencies including the 
     DOD. The amendment would also address the relationship 
     between the defense information assurance program established 
     under section 2224, title 10, United States Code, and the 
     government-wide information security program.
       The conferees note that the conference agreement would 
     provide the DOD authority to implement its own information 
     assurance policy in accordance with the requirements of 
     section 2224, title 10, United States Code. The amendment 
     would require the Director of OMB to delegate policy and 
     oversight authority with regard to national security systems, 
     classified systems, and other critical

[[Page 21700]]

     information systems of the Department of Defense and 
     Intelligence Community to the Secretary of Defense, the 
     Director of Central Intelligence, and, if designated by the 
     President, an additional agency head. These agencies would be 
     directed to develop their own information security policies, 
     principles, standards, and guidelines. For the DOD, these 
     policies, principles, standards and guidelines would be 
     required to cover the full range of information assurance 
     issues addressed in section 2224 of title 10, United States 
     Code.

                      Subtitle H--Security Matters

     Limitation on granting of security clearances (sec. 1071)
       The Senate amendment contained a provision (sec. 1074) that 
     would prohibit any officer, employee, or contractor of the 
     Department of Defense, or any member of the armed forces, 
     from receiving a security clearance if that person: (1) has 
     been convicted in any court within the United States and 
     sentenced to imprisonment for a term exceeding 1 year; (2) is 
     an unlawful user of, or addicted to any controlled substance; 
     (3) is currently mentally incompetent; or (4) has been 
     discharged from the armed forces under dishonorable 
     conditions.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense or the secretaries of the military 
     departments to waive this provision in meritorious cases for 
     persons who would otherwise be prohibited from receiving a 
     security clearance.
     Process for prioritizing background investigations for 
         security clearances for Department of Defense personnel 
         and defense contractor personnel (sec. 1072)
       The Senate amendment contained a provision (sec. 1043) that 
     would require the Secretary of Defense to establish a process 
     for prioritizing background investigations for security 
     clearances for Department of Defense personnel.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to establish a process for prioritizing 
     background investigations for security clearances for 
     Department of Defense personnel and contractors of the 
     Department of Defense.
     Authority to withhold certain sensitive information from 
         public disclosure (sec. 1073)
       The Senate amendment contained a provision (sec. 1044) that 
     would authorize the Secretary of Defense, the Secretary of 
     Transportation, and the Secretary of Energy to withhold from 
     public disclosure otherwise authorized by law sensitive 
     information provided by a foreign government or an 
     international organization which is itself protecting the 
     information from disclosure. The provision would not 
     authorize the withholding of information from Congress or, 
     except in the case of foreign intelligence or 
     counterintelligence activities, the Comptroller General.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Expansion of authority to exempt geodetic products of the 
         Department of Defense from public disclosure (sec. 1074)
       The Senate amendment contained a provision (sec. 916) that 
     would expand the authority of the Secretary of Defense to 
     exempt geodetic products from public disclosure.
       The House bill contained no similar provision.
       The House recedes.
     Expenditures for declassification activities (sec. 1075)
       The House bill contained a provision (sec. 1035) that 
     would: (1) Clarify section 230 of Title 10, United States 
     Code; (2) limit the amount of funds expended during fiscal 
     year 2001 by the Department of Defense to carry out 
     declassification activities; and (3) prohibit the Department 
     of Defense, as part of a special search, from being required 
     to compile records that have already been declassified.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Enhanced access to criminal history record information for 
         national security and other purposes (sec. 1076)
       The Senate amendment contained a provision (sec. 1057) that 
     would amend section 9101 of title 5, United States Code, to 
     provide expanded access to criminal history information by 
     the Department of Defense and certain other executive 
     departments and agencies. The provision would expand the 
     authority to cover acceptance or retention in the armed 
     forces, and appointment, retention, or assignment to a 
     position of public trust or a critical employee. It would 
     also authorize the Federal Government to obtain the 
     information through the use of common identifiers, such as 
     names, and would prohibit states and localities from 
     conditioning the provision of such information on 
     indemnification agreements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would strike the 
     authorization of the use of common identifiers and the 
     prohibition on the requirement of indemnification agreements, 
     and would repeal a superseded provision of law.
     Two-year extension of authority to engage in commercial 
         activities as security for intelligence collection 
         activities (sec. 1077)
       The Senate amendment contained a provision (sec. 1071) that 
     would extend the authority provided by section 431(a) of 
     Title 10, United States Code, by two years.
       The House bill contained no similar provision.
       The House recedes.
     Coordination of nuclear weapons secrecy policies and 
         consideration of health of workers at former Department 
         of Defense nuclear facilities (sec. 1078)
       The Senate amendment contained a provision (sec. 1077) that 
     would: (1) Require the Secretary of Defense, in consultation 
     with the Secretary of Energy, to ensure that secrecy policies 
     do not prevent or discourage employees at former nuclear 
     weapons facilities who may have been exposed to radioactive 
     or other hazardous substances from discussing such exposures 
     with appropriate health care providers; and (2) seek to 
     identify individuals who are or were employed at sites that 
     no longer store, assemble, disassemble, or maintain nuclear 
     weapons, and, upon determination that such individuals may 
     have been exposed to radioactive or hazardous substances, 
     notify such individuals about any such exposure, including an 
     explanation of how employees can discuss exposures with 
     health care providers.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that the Department of Defense operates 
     a number of sites not engaged in the manufacture or storage 
     of nuclear weapons that may nonetheless have exposed workers 
     to hazardous substances. The conferees agree that the 
     Secretary of Defense shall address in the review and 
     notifications described in this provision workers exposed to 
     radioactive or other hazardous materials at all such 
     facilities where secrecy policies may otherwise pose an 
     obstacle to seeking medical advice and treatment.

                       Subtitle I--Other Matters

     Funds for administrative expenses under Defense Export Loan 
         Guarantee program (sec. 1081)
       The House bill contained a provision (sec. 1031) that would 
     amend section 2540c of title 10, United States Code, to 
     provide authority to the Secretary of Defense to fund 
     administrative expenses under the Defense Export Loan 
     Guarantee (DELG) Program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to submit to the Congress a report on 
     the operation of the DELG Program and a determination as to 
     which Defense Department agency, office, or other activity 
     should administer, manage, and oversee the loan guarantee 
     program. The conferees direct the Secretary to submit the 
     report and determination to Congress prior to providing funds 
     for DELG Program administrative expenses.
       The conferees note that during four years of loan program 
     operations, the Secretary has provided limited, ad hoc 
     resources to implement the program. The conferees urge the 
     Secretary to take such actions as directed so as to utilize 
     expeditiously the authority to fund administrative expenses 
     for the DELG Program.
     Transit pass program Department of Defense personnel in poor 
         air quality areas (sec. 1082)
       The Senate amendment contained a provision (sec. 1055) that 
     would direct the Secretary of Defense to, within 180 days of 
     enactment of this Act, implement the transit pass program 
     authorized in section 7905 of title 5, United States Code, in 
     any area in the United States that does not meet the revised 
     national ambient air quality standards under section 109 of 
     the Clean Air Act (42 U.S.C. 7409).
       The House bill contained no similar provision.
       The House recedes.
     Transfer of Vietnam-era TA-4 aircraft to a non-profit 
         foundation (sec. 1083)
       The House bill contained a provision (sec. 1033) that would 
     authorize the transfer of an excess TA-4 aircraft to the non-
     profit Collings Foundation at no cost to the government.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the Collings Foundation demilitarize the aircraft within 
     one year.
     Transfer of 19th century cannon to museum (sec. 1084)
       The House bill contained a provision (sec. 1034) that would 
     authorize the Secretary of the Army to convey to the 
     Cannonball House Museum in Macon, Georgia, a 12-pound 
     Napoleon cannon with historical ties to the City of Macon.
       The Senate amendment contained a similar provision (sec. 
     1059).

[[Page 21701]]

       The Senate recedes with a clarifying amendment.
     Fees for providing historical information to the public (sec. 
         1085)
       The Senate amendment contained a provision (sec. 1056) that 
     would authorize the secretaries of the military departments 
     to charge the public fees for providing historical 
     information from the services historical centers or agencies. 
     These fees could be retained by the military departments to 
     defray the costs of responding to requests for such 
     information. The fees charged pursuant to this section could 
     not exceed the costs of providing the information, and would 
     not apply to requests from members of the armed forces or 
     federal employees made in the course of their duties, or to 
     requests under the Freedom of Information Act (5 U.S.C. 552).
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct the Comptroller General to provide a 
     report to the Committees on Armed Services of the Senate and 
     House of Representatives one year after the implementation of 
     this provision by the military departments. The report should 
     provide data on the fees collected for such information, and 
     compare those sums with the actual costs to each military 
     department of responding to such requests.
     Grants to American Red Cross for Armed Forces emergency 
         services (sec. 1086)
       The Senate amendment contained a provision (sec. 1054) that 
     would authorize the Secretary of Defense to make a grant to 
     the American Red Cross up to $9.4 million in each of fiscal 
     years 2001, 2002, and 2003. Such a grant could not be made 
     until the American Red Cross certifies that it will expend, 
     for the Armed Forces Emergency Services, an amount from non-
     federal sources that equals or exceeds the amount of the 
     grant.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Technical and clerical amendments (sec. 1087)
       The House bill contained a provision (sec. 1032) that would 
     make various technical and clerical amendments to existing 
     law.
       The Senate amendment contained similar provisions (secs. 
     602 and 1052).
       The Senate recedes with an amendment that would combine the 
     provisions.
     Maximum size of parcel post packages transported overseas for 
         Armed Forces post offices (sec. 1088)
       The Senate amendment contained a provision (sec. 1060) that 
     would increase the authorized size of packages permitted to 
     be mailed to eligible patrons of military post offices 
     overseas to conform with those of the United States Postal 
     Service.
       The House bill contained no similar provision.
       The House recedes.
     Sense of Congress regarding tax treatment of members 
         receiving special pay for duty subject to hostile fire or 
         imminent danger (sec. 1089)
       The Senate amendment contained a provision (sec. 1064) that 
     would express a sense of the Senate that members of the armed 
     forces who receive special pay for duty subject to hostile 
     fire or imminent danger should receive the same tax treatment 
     as members serving in combat zones.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that tax treatment should be the same for 
     special pay for duty subject to hostile for imminent danger 
     and combat zone pay.
     Organization and management of the civil air patrol (sec. 
         1090)
       The House bill contained a provision (sec. 906) that would 
     codify the agreement recently reached between the Secretary 
     of the Air Force and the leadership of the Civil Air Patrol 
     regarding the Civil Air Patrol's status as a volunteer 
     civilian auxiliary of the Air Force.
       The Senate amendment contained a similar provision.
       The Senate recedes with an amendment that would not allow 
     contract employees of the Air Force to commit federal 
     resources in support of the Civil Air Patrol.
       The amendment would also not require a minimum salary for 
     these contract employees.
     Additional duties for the Commission to Assess United States 
         National Security Space Management and Organization (sec. 
         1091)
       The Senate amendment contained a provision (sec. 907) that 
     would amend section 1622 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) to 
     specify additional duties for the Commission to Assess United 
     States National Security Space Management and Organization.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Commission on the future of the United States aerospace 
         industry (sec. 1092)
       The House bill contained a provision (sec. 1039) that would 
     require the President to establish a commission to assess the 
     future of the U.S. aerospace industry and to recommend 
     actions to be taken by the Federal Government to support the 
     ability of the U.S. aerospace industry to remain robust in 
     the future.
       The Senate amendment contained a similar provision (sec. 
     1061).
       The House recedes with an amendment that would clarify the 
     scope and requirements of the study. The conferees intend for 
     the commission to provide guidance and insight to the next 
     Administration as early as possible. Accordingly, the 
     commission should plan to submit an interim report to the 
     administration and the Congress outlining the areas the 
     commission proposes to review and any preliminary findings.
     Drug addiction treatment (sec. 1093)
       The conference agreement includes a provision that would 
     permit certain physicians to prescribe certain narcotic drugs 
     to assist in combating heroin addiction.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Annual OMB/CBO joint report on scoring budget outlays
       The Senate amendment contained a provision (sec. 1004) that 
     would make minor administrative changes to the joint annual 
     Office of Management and Budget/Congressional Budget Office 
     (OMB/CBO) report on the scoring of budget outlays.
       The House bill amendment contained no similar provision.
       The Senate recedes.
     Authority to provide headstones or markers for marked graves 
         or otherwise commemorate certain individuals
       The Senate amendment contained a provision (sec. 1067) that 
     would require the Secretary of Veterans Affairs to, upon 
     request, provide a headstone or marker for the marked or 
     unmarked grave of the individual or at some other area 
     appropriate for the purpose of commemorating the individual.
       The House bill contained no similar provision.
       The Senate recedes.
     Breast cancer stamp extension
       The Senate amendment contained a provision (sec. 1073) that 
     would extend by two years the authorization for the breast 
     cancer semipostal stamp.
       The House bill contained no similar provision.
       The Senate recedes.
     Comprehensive study and support for criminal investigations 
         and prosecutions by state and local law enforcement 
         officials
       The Senate amendment contained a provision (sec. 1068) that 
     would require the Comptroller General to collect data and 
     conduct a study of comparative treatment of hate crimes in 
     jurisdictions having laws dealing specifically with such 
     crimes and those having no such laws, and to submit a report 
     to Congress. The provision would further authorize the 
     Attorney General, upon request and where special 
     circumstances existed, to provide assistance in the criminal 
     investigation or prosecution of any hate crime. The Attorney 
     General would be further authorized to make grants to states 
     and localities to assist them in the investigation and 
     prosecution of hate crimes.
       The House bill contained no similar provision.
       The Senate recedes.
     Local Law Enforcement Enhancement Act of 2000
       The Senate amendment contained several provisions (sec. 
     1501-1510) that would constitute the ``Local Law Enforcement 
     Act of 2000.'' The Attorney General, at the request of a 
     state or Indian tribe law enforcement official, could provide 
     assistance in the investigation or prosecution of certain 
     hate crimes. The Attorney General could also award grants to 
     state, local, and Indian tribe law enforcement officials to 
     assist with the investigation and prosecution of such crimes. 
     Chapter 13 of title 18, United States Code, would be amended 
     to establish a substantive federal prohibition of certain 
     specific hate crime acts. No prosecution could be undertaken 
     under this provision without certification from the Attorney 
     General or certain other officials of the Department of 
     Justice.
       The House bill contained no similar provision.
       The Senate recedes.
     Plan to ensure compliance with financial management 
         requirements
       The House bill contained a provision (sec. 1006) that would 
     require the Secretary of Defense to submit to the Congress a 
     plan to ensure compliance by the Department of Defense, not 
     later than October 1, 2001, with all statutory and regulatory 
     financial management requirements.
       The Senate amendment contained no similar provision.
       The House recedes.
     Protection of operational files of the Defense Intelligence 
         Agency
       The Senate amendment contained a provision (sec. 1045) that 
     would authorize the Secretary of Defense to withhold from 
     public disclosure the operational files of the Defense 
     Intelligence Agency (DIA). These files would be protected 
     from disclosure to the

[[Page 21702]]

     same extent as provided for under section 701 of the National 
     Security Act of 1947 (50 U.S.C. 431). The provision would 
     also make applicable to these files the decennial review of 
     provisions of section 702 of that Act (50 U.S.C. 432), with 
     the Secretary exercising the authority granted to the 
     Director of Central Intelligence under that section.
       The House bill contained no similar provision.
       The Senate recedes.
     Repeal of certain provisions shifting outlays from one fiscal 
         year to another
       The House bill contained a provision (sec. 1004), that 
     would repeal two provisions of the Department of Defense 
     Appropriations Act for Fiscal Year 2000 (Public Law 106-79) 
     concerning the Prompt Payment Act and the shifting of pay 
     days for federal employees. The conferees note that similar 
     provisions were enacted into law in the Emergency 
     Supplemental Appropriations Act, 2000 (Public Law 106-246).
       The Senate amendment contained similar provisions (secs. 
     1006 and 1010).
       The House and Senate recede.
     Report to the Congress regarding extent and severity of child 
         poverty
       The Senate amendment contained a provision (sec. 1062) that 
     would require the Secretary of Health and Human Services to, 
     not later than June 1, 2001, report to the Congress on the 
     extent and severity of child poverty in the United States.
       The House bill contained no similar provision.
       The Senate recedes.
     Sense of the Senate concerning long-term economic development 
         aid for communities rebuilding from hurricane Floyd
       The Senate amendment contained a provision (sec. 1066) that 
     would express the sense of the Senate that additional 
     community and regional development funding should be 
     appropriated to assist communities in need of long-term 
     economic development aid as a result of damage suffered by 
     Hurricane Floyd.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that additional economic assistance for 
     the victims of natural disasters was provided in the 
     Emergency Supplemental Act, 2000 (Public Law 106-246).

           Title XI--Department of Defense Civilian Personnel


                     LEGISLATIVE PROVISIONS ADOPTED

          Subtitle A--Civilian Personnel Management Generally

     Employment and compensation of employees for temporary 
         organizations established by law or executive order (sec. 
         1101)
       The House bill contained a provision (sec. 1101) that would 
     provide legislative and executive agencies the flexibility to 
     use a streamlined process to hire and pay employees for 
     temporary organizations established by law or executive 
     order.
       The Senate amendment contained a similar provision (sec. 
     1106).
       The House recedes with an amendment that would limit the 
     term of the management flexibility to three years, would 
     designate the head of the temporary activity as the 
     appointing authority for the temporary employees, and would 
     limit the health and life insurance benefits to the same 
     benefit as that afforded other temporary civil service 
     employees.
     Assistive technology accommodations program (sec. 1102)
       The Senate amendment contained a provision (sec. 1101) that 
     would authorize the Secretary of Defense to expand the 
     Computer/Electronic Accommodations Program to provide 
     assistive technology services to any department or agency of 
     the Federal Government.
       The House bill contained no similar provision.
       The House recedes with an amendment that would restore the 
     funding for this program to the Defense Health Program.
     Extension of authority for voluntary separations in 
         reductions in force (sec. 1103)
       The House bill contained a provision (sec. 1104) that would 
     extend, until September 30, 2005, the authority of the 
     Secretary of Defense to allow certain civilian employees to 
     volunteer for separation under reduction in force procedures 
     even though those employees would not otherwise be subject to 
     separation.
       The Senate amendment contained a similar provision (sec. 
     1107).
       The House recedes.
     Electronic maintenance of performance appraisal systems (sec. 
         1104)
       The Senate amendment contained a provision (sec. 1108) that 
     would authorize the head of an executive branch agency to 
     administer and to maintain the performance appraisal system 
     electronically.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Study on civilian personnel services (sec. 1105)
       The Senate amendment contained a provision (sec. 1112) that 
     would require the Secretary of Defense to establish a four-
     year public-private competition pilot program to assess the 
     extent to which the effectiveness and efficiency of providing 
     civilian personnel services could be increased by conducting 
     competitions for the performance of such services between the 
     public and private sectors.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to study whether civilian personnel 
     services could be enhanced by public-private competition and 
     report to the Committees on Armed Services of the Senate and 
     the House of Representatives, and include, if appropriate, a 
     proposal for a demonstration program that would test such a 
     concept.

              Subtitle B--Demonstration and Pilot Programs

     Pilot program for reengineering the equal employment 
         opportunity complaint process (sec. 1111)
       The House bill contained a provision (sec. 1106) that would 
     authorize the Secretary of the Navy to carry out a five-year 
     pilot program to demonstrate improved processes for the 
     resolution of equal employment opportunity complaints.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to conduct a three-year pilot program to 
     demonstrate improved processes for the resolution of equal 
     employment opportunity complaints in a minimum of one 
     military department and two defense agencies, and would 
     require a report to the Committees on Armed Services of the 
     Senate and the House of Representatives not later than two 
     years after initiation of the pilot program.
     Work safety demonstration program (sec. 1112)
       The Senate amendment contained a provision (sec. 1105) that 
     would direct the Secretary of Defense to conduct a two-year 
     work safety demonstration program in which private sector 
     work safety models would be used to determine whether the 
     work safety record of civilian employees of Department of 
     Defense can be improved.
       The House bill contained no similar provision.
       The House recedes.
     Extension, expansion, and revision of authority for 
         experimental personnel program for scientific and 
         technical personnel (sec. 1113)
       The Senate amendment contained a provision (sec. 1113) that 
     would extend, expand, and revise the authority for the 
     experimental civilian personnel program for scientific and 
     technical personnel previously authorized in section 1101 of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65) to expand the number of positions in the 
     Defense Advanced Research Projects Agency from 20 to 40 and 
     would extend the authority to the military departments for 
     use in the defense laboratories, the National Imagery and 
     Mapping Agency, and the National Security Agency.
       The House bill contained no similar provision.
       The House recedes.
     Clarification of personnel management authority under 
         personnel demonstration project (sec. 1114)
       The Senate amendment contained a provision (sec. 1114) that 
     would provide direct hiring authority to the defense 
     laboratory directors to appoint individuals and fix their 
     compensation without the review or approval of any official 
     or agency other than the Under Secretary of Defense for 
     Acquisition, Technology and Logistics.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to establish and to operate 
     demonstration programs in the defense laboratories without 
     the review or approval of the Office of Personnel Management 
     and would raise the limit on compensation that may be 
     provided to laboratory employees under a demonstration 
     project. The amendment would authorize the Secretary of 
     Defense to appoint individuals and fix their compensation 
     without the review or approval of the Office of Personnel 
     Management or any other outside official or agency.
       The conferees believe that this is the single most 
     important step the Secretary of Defense could take to enable 
     the defense laboratories to compete with the private sector 
     for scientific talent, and that the applicable requirements 
     could adequately be addressed through after-the-fact review. 
     The conferees urge the Secretary of Defense to provide the 
     laboratory directors with direct hiring authority, as 
     authorized by this section.

                   Subtitle C--Educational Assistance

     Restructuring the restriction on degree training (sec. 1121)
       The House bill contained a provision (sec. 1102) that would 
     authorize the Secretary of Defense to pay tuition for a 
     civilian employee to obtain an academic degree if that degree 
     training occurs at an accredited institution and is part of a 
     planned Department of Defense professional development 
     program.
       The Senate amendment contained a similar provision (sec. 
     1118).
       The Senate recedes.
     Student loan repayment programs (sec. 1122)
       The Senate amendment contained a provision (sec. 1069) that 
     would require the Director of the Office of Personnel 
     Management

[[Page 21703]]

     to, not later than 240 days after enactment of this Act, 
     issue regulations that would implement the student loan 
     repayment program, would eliminate the restriction on 
     repayment of student loans to professional, technical, or 
     administrative personnel, and would include federal student 
     loan repayment programs established since enactment of 
     earlier statutory authority.
       The House bill contained no similar provision.
       The House recedes.
     Extension of authority for tuition reimbursement and training 
         for civilian employees in the defense acquisition 
         workforce (sec. 1123)
       The House bill contained a provision (sec. 1103) that would 
     extend the ``shortage of personnel'' designation for 
     qualified civilian acquisition personnel of the Department of 
     Defense until September 30, 2005, in order to permit such 
     personnel to qualify for reimbursement of expenses for 
     training and tuition.
       The Senate amendment contained a similar provision (sec. 
     1104).
       The House recedes.

                       Subtitle D-Other Benefits

     Additional special pay for foreign language proficiency 
         beneficial for United States national security interests 
         (sec. 1131)
       The Senate amendment contained a provision (sec. 1102) that 
     would authorize the Secretary of Defense to provide 
     additional pay for civilian employees who maintain a foreign 
     language proficiency determined to be beneficial for national 
     security interests.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     additional pay for maintaining proficiency in a foreign 
     language to those who agree to deploy to an area in which the 
     foreign language is determined to be critical to the national 
     security interests.
     Approval authority for cash awards in excess of $10,000 (sec. 
         1132)
       The Senate amendment contained a provision (sec. 1109) that 
     would authorize the Secretary of Defense to grant a cash 
     award up to the maximum of $25,000 without seeking approval 
     from the Office of Personnel Management.
       The House bill contained no similar provision.
       The House recedes.
     Leave for crews of certain vessels (sec. 1133)
       The Senate amendment contained a provision (sec. 1110) that 
     would authorize the Military Sealift Command to pay civil 
     service mariners, in an extended leave status, a lump-sum 
     equal to the difference between their pay at a temporary 
     promotion rate and their lower permanent grade rates.
       The House bill contained no similar provision.
       The House recedes.
     Life insurance for emergency essential Department of Defense 
         employees (sec. 1134)
       The Senate amendment contained a provision (sec. 1111) that 
     would authorize civilian employees designated by the 
     Secretary of Defense as emergency essential and subject to 
     being deployed to combat areas to elect to participate in the 
     Federal Employees Group Life Insurance program.
       The House bill contained no similar provision.
       The House recedes.

              Subtitle E--Intelligence Civilian Personnel

     Expansion of defense civilian intelligence personnel system 
         positions (sec. 1141)
       The House bill contained a provision (sec. 1105) that would 
     authorize the Secretary of Defense to create positions within 
     the defense civilian intelligence personnel system outside 
     the designated intelligence components of the Department of 
     Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increase in number of positions authorized for the Defense 
         Intelligence Senior Executive Service (sec. 1142)
       The Senate amendment contained a provision (sec. 1103) that 
     would increase, by 25, the number of positions authorized for 
     the defense intelligence senior executive service.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that the 25 additional positions are 
     authorized for the entire defense intelligence community and 
     are not intended to be allocated to any single agency within 
     the defense intelligence community. The conferees direct the 
     Secretary of Defense to report to the Committees on Armed 
     Services of the Senate and the House of Representatives, not 
     later than March 15, 2001, on how the additional senior 
     executive service positions are allocated within the defense 
     intelligence community.

  Subtitle F--Voluntary Separation Incentive Pay and Early Retirement 
                               Authority

     Voluntary separation incentive pay and early retirement 
         authority (secs. 1151-1153)
       The House bill contained a provision (sec. 1107) that would 
     provide temporary authority to the Secretary of the Air Force 
     to use voluntary separation incentives and voluntary early 
     retirement authority for restructuring the work force to 
     separate up to 1000 civilian employees during each calendar 
     year through December 31, 2003.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     temporary authority to the Secretary of Defense to use 
     voluntary separation incentives and voluntary early 
     retirement authority for workforce restructuring to meet 
     mission needs, achieve one or more strength reductions, 
     correct skill imbalances or reduce the number of high-grade, 
     managerial, or supervisory positions. The temporary authority 
     to use the voluntary separation incentives in fiscal year 
     2001 is limited to 1000 employees. The temporary authority to 
     use voluntary separation incentives and the voluntary early 
     retirement authority in each of fiscal years 2002 and 2003 is 
     limited to 4000 employees. The Secretary of Defense may only 
     carry out these programs in fiscal years 2002 and 2003 with 
     respect to workforce restructuring to the extent provided in 
     a law enacted by the 107th Congress.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Department of Defense employee voluntary early retirement 
         authority
       The Senate amendment contained a provision (sec. 1117) that 
     would revise the authority for using voluntary early 
     retirement authority within the Department of Defense to 
     include restructuring of the workforce.
       The House bill contained no similar provision.
       The Senate recedes.
     Extension of authority for voluntary separations in 
         reductions in force
       The Senate amendment contained a provision (sec. 1115) that 
     would extend the authority for voluntary separations during 
     reduction in force actions.
       The House bill contained no similar provision.
       The Senate recedes.
     Extension, revision, and expansion of authorities for use of 
         voluntary separation incentive pay and voluntary early 
         retirement
       The Senate amendment contained a provision (sec. 1116) that 
     would extend the authority for voluntary separation incentive 
     pay and voluntary early retirement through September 30, 
     2005, and would revise the authority for using the voluntary 
     separation incentive pay within the Department of Defense to 
     include restructuring of the workforce.
       The House bill contained no similar provision.
       The Senate recedes.
     Strategic plan
       The Senate amendment contained a provision (sec. 1119) that 
     would require the Secretary of Defense to submit a strategic 
     plan to the congressional defense committees not later than 
     six months after enactment of this Act and before exercising 
     any of the authorities for workforce restructuring.
       The House bill contained no similar provision.
       The Senate recedes.

              Title XII--Matters Relating to Other Nations


                     LEGISLATIVE PROVISIONS ADOPTED

               Subtitle A-Matters Related to Arms Control

     Support of United Nations-sponsored efforts to inspect and 
         monitor Iraqi weapons activities (sec. 1201)
       The House bill contained a provision (sec. 1201) that would 
     extend, through fiscal year 2001, the authority of the 
     Department of Defense to support United Nations-sponsored 
     inspection and monitoring efforts to ensure full Iraqi 
     compliance with its international obligations to destroy its 
     weapons of mass destruction and associated delivery systems. 
     The provision would limit the assistance that could be 
     provided by the Secretary of Defense to $15.0 million for 
     fiscal year 2001.
       The Senate amendment contained an identical provision (sec. 
     1202).
       The conference agreement includes this provision.
     Support of consultations on Arab and Israeli arms control and 
         regional security issues (sec. 1202)
       The Senate amendment contained a provision (sec. 1211) that 
     would authorize up to $1.0 million from Defense-wide 
     Operation and Maintenance accounts for the support of 
     programs to promote informal, region-wide consultations among 
     Arab, Israeli, and U.S. officials and experts on arms control 
     and security issues concerning the Middle East region.
       The House bill contained no similar provision.
       The House recedes with an amendment that would expand the 
     scope of the programs to include formal consultations.
     Furnishing of nuclear test monitoring equipment to foreign 
         governments (sec. 1203)
       The Senate amendment contained a provision (sec. 1206) that 
     would authorize the Secretary of Defense to accept 
     contributions from a foreign government or other entities for 
     the development, procurement, installation, operation, 
     repair, or maintenance of equipment for monitoring nuclear 
     test explosions, and to loan or convey nuclear test 
     monitoring equipment to a foreign government, subject to a 
     required agreement.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to convey or to provide nuclear test

[[Page 21704]]

     monitoring equipment to a foreign government, subject to a 
     required agreement.
       The conferees believe that section 2608 of title 10, United 
     States Code, already permits the Secretary of Defense to 
     accept and to use contributions for purposes specified in the 
     Senate amendment. Therefore, the conferees do not believe 
     that additional authority is required. If the Secretary, in 
     consultation with the Office of Management and Budget, 
     determines that additional authority is required, the 
     conferees are willing to reevaluate this matter in the 
     future.
     Additional matters for annual report on transfers of 
         militarily sensitive technology to countries and entities 
         of concern (sec. 1204)
       The Senate amendment contained a provision (sec. 1075) that 
     would require that the annual report required by section 1402 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65) on transfers of militarily sensitive 
     technology to countries of concern include a description of 
     actions taken on recommendations of inspectors general 
     contained in previous annual reports.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

              Subtitle B--Matters Relating to the Balkans

       Annual report assessing effect of continued operations in 
     the Balkans region on readiness to execute the national 
     military strategy (sec. 1211)
       The House bill contained a provision (sec. 1202) that would 
     amend section 1035 of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65) to make the report 
     on the readiness impact of U.S. military operations in the 
     Balkans an annual report.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would sunset the 
     reporting requirement upon termination of U.S. military 
     activities in the Balkans.
     Situation in the Balkans (sec. 1212)
       The House bill contained a provision (sec. 1203) that would 
     require the President to establish, not later than May 31, 
     2001, militarily significant benchmarks for conditions that 
     would achieve a sustainable peace in Kosovo and ultimately 
     allow for the withdrawal of the U.S. military presence in 
     Kosovo. In developing those benchmarks, the Congress would 
     urge the President to seek the concurrence of North Atlantic 
     Treaty Organization (NATO) member nations. The provision 
     would also require the President to develop a comprehensive 
     political-military strategy for addressing the political, 
     economic, humanitarian and military issues in the Balkans, 
     and to establish near-term, mid-term and long-term objectives 
     in the region. Finally, the provision would require the 
     President to submit semiannual reports, beginning no later 
     than June 30, 2001, on the progress being made in developing 
     and implementing a comprehensive political-military strategy, 
     and the progress being made in achieving the conditions 
     established by the benchmarks.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     President to submit a single semiannual report on the 
     progress made in achieving both the benchmarks for Kosovo and 
     the benchmarks for Bosnia, as required by section 7 of the 
     1998 Supplemental Appropriations and Rescissions Act (Public 
     Law 105-174), and would make other technical modifications.
     Semiannual report on Kosovo peacekeeping (sec. 1213)
       The House bill contained a provision (sec. 1205) that would 
     prohibit the use of Department of Defense funds for the 
     continued deployment of U.S. ground combat troops in Kosovo 
     after April 1, 2001, unless the President certifies to the 
     Congress, prior to April 1, 2001, that the European 
     Commission, the member nations of the European Union (EU), 
     and the European member nations of the North Atlantic Treaty 
     Organization (NATO) have provided specific amounts and types 
     of assistance to the peacekeeping operations in Kosovo. The 
     provision would also require the President to submit to the 
     Congress, not later than April 30, 2001, a plan for the 
     withdrawal of U.S. ground combat troops from Kosovo, if the 
     President does not make the required certification; and 
     submit a report to the Congress detailing the commitments and 
     contributions of various European nations and organizations 
     and the United Nations to the peacekeeping operations in 
     Kosovo.
       The Senate amendment contained a similar provision (sec. 
     1205) that would require a biannual report from the President 
     to the Congress detailing the commitments and contributions 
     of various European nations and organizations and the United 
     Nations to the peacekeeping operations in Kosovo.
       The House recedes.
       The conferees note that, since congressional action focused 
     attention on this issue earlier this year, European nations 
     and organizations have made progress in providing the 
     assistance and personnel they have pledged to peacekeeping 
     operations in Kosovo. While more needs to be done by the 
     Europeans in providing needed resources to the international 
     community's operations, the conferees recognize that the pace 
     of the civil implementation effort in Kosovo has improved 
     since the beginning of the year. The conferees remain 
     concerned, however, that U.S. troops, and the troops of other 
     nations serving in Kosovo continue to perform a variety of 
     non-military missions to compensate for remaining shortfalls 
     in the civil implementation effort. In recognition of the 
     fact that the United States bore the major share of the 
     military burden for the air war on behalf of Kosovo, European 
     nations agreed to pay the major share of the burden to secure 
     the peace. The conferees believe that the Europeans must 
     fulfill that commitment. The report required by this 
     provision will provide the Congress with the information 
     necessary, on a regular basis, to evaluate the performance of 
     the nations and organizations covered by this provision in 
     fulfilling their commitments regarding Kosovo. It is the 
     intention of the conferees to pursue legislative options in 
     the future if those commitments are not fulfilled.

Subtitle C--North Atlantic Treaty Organization and United States Forces 
                               in Europe

     NATO fair burdensharing (sec. 1221)
       The House bill contained a provision (sec. 1206) that would 
     require the Secretary of Defense to submit a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the costs to the United States of 
     Operation Allied Force conducted against the Federal Republic 
     of Yugoslavia. The report would include: (1) the costs of 
     ordnance expended, fuel consumed, and personnel; (2) the 
     estimated cost of the reduced service life of U.S. weapons 
     systems which participated in the operation; and (3) whether 
     and how the United States is being compensated by other NATO 
     member nations for the costs of Operation Allied Force. The 
     provision also would require a report from the Secretary 
     whenever NATO undertakes a future military operation with the 
     participation of the United States. The report would include: 
     (1) how the costs of that operation are to be equitably 
     distributed among the NATO member nations; or (2) how the 
     United States is to be compensated by other NATO member 
     nations, if the costs are borne disproportionately by the 
     United States. The report would be due 30 days after the 
     beginning of a military operation, or later, if the Secretary 
     determines that such a delay is necessary to avoid an undue 
     burden to ongoing operations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) delete 
     the requirement for the Secretary to report on whether and 
     how the United States is being compensated by other NATO 
     nations for the costs of Operation Allied Force; (2) change 
     the reporting requirement on future NATO military operations 
     to apply to all NATO operations, and to include information 
     on the contributions to that operation made by each of the 
     member nations of NATO and the contributions that each member 
     nation of NATO makes or has pledged to make during any 
     follow-on operation; and, (3) require the report on future 
     operations to be submitted not later than 90 days after the 
     completion of the military operation.
     Repeal of restriction preventing cooperative airlift support 
         through acquisition and cross-servicing agreements (sec. 
         1222)
       The Senate amendment contained a provision (sec. 1203) that 
     would amend section 2350c of title 10, United States Code, to 
     repeal the restriction that authorizes the Secretary of 
     Defense to enter into military airlift agreements with allied 
     countries only under the authority of section 2350c.
       The House bill contained no similar provision.
       The House recedes.
     GAO study on the benefits and costs of the United States 
         military engagement in Europe (sec. 1223)
       The House bill contained a provision (sec. 1207) that would 
     require the Comptroller General to conduct a study assessing 
     the value to the United States and its national security 
     interests gained from the engagement of U.S. Armed Forces in 
     Europe and from military strategies used to shape the 
     international security environment in Europe. The study would 
     include an assessment of a number of issues related to the 
     U.S. military presence in Europe and the contributions made 
     by the European allies of the United States. The report would 
     be submitted to the Committees on Armed Services of the 
     Senate and House of Representatives not later than March 1, 
     2001.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would change the 
     report to a study of the benefits and costs of U.S. military 
     engagement in Europe and change the date for the submission 
     of the report to December 1, 2001.

                        Subtitle D-Other Matters

     Joint data exchange center with Russian Federation on early 
         warning systems and notification of ballistic missile 
         launches (sec. 1231)
       The Senate amendment contained a provision (sec. 1213) that 
     would authorize the Secretary of Defense to establish, in 
     conjunction

[[Page 21705]]

     with the Government of the Russian Federation, a United 
     States-Russian Federation joint center for the exchange of 
     data from early warning systems and for notification of 
     missile launches.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) 
     authorize the Secretary of Defense to establish a U.S.-
     Russian Federation joint center for the exchange of data from 
     early warning systems and for notification of missile 
     launches; (2) require that the Secretary submit a report to 
     the Armed Services Committees of the Senate and the House of 
     Representatives on plans for the joint data exchange center; 
     and (3) prohibit the obligation of more than $4.0 million of 
     fiscal year 2001 funds for establishment of the joint data 
     exchange center until 30 days after the date on which the 
     Secretary submits a copy of a written agreement between the 
     United States and Russia providing the details of the cost-
     sharing arrangement required in the Memorandum of Agreement 
     of June 4, 2000.
     Report on sharing and exchange of ballistic missile launch 
         early warning data (sec. 1232)
       The Senate amendment contained a provision (sec. 1029) that 
     would require the Secretary of Defense to report on the 
     feasibility and advisability of establishing a center at 
     which missile launch early warning data from the United 
     States and other nations would be made available to nations 
     concerned with the launch of ballistic missiles.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to report on current and planned 
     activities of the Department of Defense with respect to the 
     sharing and exchange with other countries of early warning 
     data concerning ballistic missile launches. The report shall 
     include the Secretary's assessment of the benefits and risks 
     of sharing such data with other countries on a bilateral or 
     multilateral basis.
     Annual report of Communist Chinese military companies 
         operating in the United States (sec. 1233)
       The House bill contained a provision (sec. 1208) that would 
     express the sense of Congress that the Secretary of Defense 
     has not complied with requirements of section 1237 of the 
     Strom Thurmond National Defense Act for Fiscal Year 1999 
     (Public Law 105-261) to publish and update a list of 
     Communist Chinese military companies operating in the United 
     States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the sense of Congress and would amend section 1237 to require 
     the Secretary to report on, rather than publish, a list of 
     Communist Chinese military companies operating in the United 
     States. The Secretary would be directed to submit that report 
     to the following: the Committee on Armed Services of the 
     House of Representatives; the Committee on Armed Services of 
     the Senate; the Secretary of State; the Secretary of the 
     Treasury; the Attorney General; the Secretary of Commerce; 
     the Secretary of Energy; and the Director of Central 
     Intelligence.
     Adjustment of composite theoretical performance levels of 
         high performance computers (sec. 1234)
       The House bill contained a provision (sec. 1209) that would 
     amend section 1211 of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85) to limit to 60 days, 
     excluding days when the Congress is not in session because of 
     an adjournment sine die, the time period for congressional 
     review of a presidential change to the export control levels 
     for high performance computers prior to that change going 
     into effect.
       The Senate amendment contained an identical provision (sec. 
     1214).
       The conference agreement includes this provision.
       The conferees believe that the administration needs to 
     adequately assess the national security implications of 
     commercial technological diffusion before new export levels 
     are proposed. For that reason, the conferees direct the 
     Secretary of Defense and the Director for Central 
     Intelligence to jointly submit to Congress, not later than 
     April 1, 2001, a report on the national security implications 
     of trends in the research and development, manufacture, use, 
     and proliferation of information technology in the commercial 
     sector.
       The report shall include a discussion of the following 
     matters: (1) whether commercially available information 
     technology has been or could be used for military and 
     intelligence purposes by foreign nations and terrorist 
     organizations, and the threats that such uses could pose to 
     U.S. national security interests; (2) the advisability of 
     inserting commercially available information technology as 
     components into U.S. weapons systems, together with a 
     discussion of the challenges associated with doing so; (3) 
     whether the United States has the ability to control the 
     proliferation of commercially available information 
     technology effectively through unilateral or multilateral 
     export control regimes; and (4) the identification of 
     critical commercially available information technologies and 
     associated knowledge for which unilateral, multilateral, or 
     alternative export controls may be needed in the preservation 
     of U.S. national security interests. The report should also 
     consider the advisability of establishing a center to assess 
     the military utility of commercially available information 
     technology produced by both U.S. and foreign commercial 
     sectors.
     Increased authority to provide healthcare services as 
         humanitarian and civic assistance (sec. 1235)
       The Senate amendment contained a provision (sec. 321) that 
     would allow under-served areas, as well as rural areas, to 
     receive medical, dental, and veterinary services through the 
     humanitarian and civic assistance program.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that this increased authority is to be 
     used in conjunction with authorized U.S. military operations 
     in furtherance of U.S. security interests and the expansion 
     of the operational readiness skills of the armed forces, and 
     shall be carried out at no additional cost to the Department 
     of Defense.
     Sense of Congress regarding the use of children as soldiers 
         (sec. 1236)
       The Senate amendment contained a provision (sec. 1210) that 
     would express the sense of Congress that the use of children 
     as soldiers by governmental and non-governmental armed forces 
     should be condemned worldwide, the optional protocol is a 
     critical first step in ending the use of children as 
     soldiers, that the President should consult closely with the 
     Senate with the objective of building support for the 
     optional protocol, that the President and Congress should 
     work together to enact a law that establishes a fund for the 
     rehabilitation and reintegration into society of child 
     soldiers, and that the Secretaries of the Departments of 
     State and Defense should undertake all possible efforts to 
     persuade and encourage other governments to ratify and 
     endorse the optional protocol on the use of child soldiers.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Sense of Congress regarding undersea rescue and recovery 
         (sec. 1237)
       The conferees agree to a provision that would express the 
     sympathy of the Congress and of the American people to the 
     people of the Russian Federation over the death of the 
     crewmen of the submarine Kursk. The provision urges the 
     President of the United States and the President of the 
     Russian Federation, in coordination with the leaders of other 
     maritime nations, to cooperate in establishing a plan for 
     response, rescue, and recovery of the crew of undersea 
     vessels involved in undersea accidents or incidents.
     United States-China Security Review Commission (sec. 1238)
       The Senate amendment contained a provision (sec. 1076) that 
     would amend The Trade Deficit Review Commission Act to 
     establish a 12-member commission, the United States-China 
     Security Review Commission, to monitor and assess the 
     national security implications of the evolving bilateral 
     trade and economic relationship between the United States and 
     the People's Republic of China. The commission would be 
     established on the framework of the Trade Deficit Review 
     Commission, which is scheduled to complete its work by the 
     end of this year, and would issue an annual report.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish a 
     free-standing United States-China Security Review Commission 
     to review the national security implications of trade and 
     economic ties between the United States and the People's 
     Republic of China. The amendment would facilitate the 
     assumption by the United States-China Security Review 
     Commission of its duties regarding the review by providing 
     for the transfer to that commission of staff, materials, and 
     infrastructure of the Trade Deficit Review Commission that 
     are appropriate for the review after the submittal of the 
     final report of the Trade Deficit Review Commission. The 
     amendment would also provide that the members of the Trade 
     Deficit Review Commission, as of the date of the enactment of 
     this Act, shall serve as members of the United States-China 
     Security Review Commission until such time as members are 
     appointed.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Limitation on number of military personnel in Colombia
       The House bill contained a provision (sec. 1204) that would 
     establish a limit of 500 on the number of U.S. military 
     personnel authorized to be on duty in the Republic of 
     Colombia at any time. The limit would not apply to military 
     personnel deployed to Colombia for the purpose of rescuing or 
     retrieving U.S. Government personnel, military personnel 
     attached to the U.S. Embassy, military personnel engaged in 
     relief operations, or nonoperational transient military 
     personnel.
       The Senate amendment contained no similar provision.

[[Page 21706]]

       The House recedes.
     Prohibition on assumption by United States Government of 
         liability for nuclear accidents in North Korea
       The House bill contained a provision (sec. 1210) that would 
     prohibit the President or any department, agency, or 
     instrumentality of the U.S. Government from using the 
     authority of Public Law 85-804 (50 U.S.C. 1431) or any other 
     provision of law to enter into any contract or arrangement 
     which would impose liability on the U.S. Government for 
     nuclear accidents occurring in North Korea.
       The Senate amendment contained no similar provision.
       The House recedes.

  Title XIII--Cooperative Threat Reduction With States of the Former 
                              Soviet Union


                     LEGISLATIVE PROVISIONS ADOPTED

     Specification of cooperative threat reduction programs and 
         funds (sec. 1301)
       The House bill contained a provision (sec. 1301) that would 
     define Cooperative Threat Reduction (CTR) programs and 
     Department of Defense funding for CTR programs, and make 
     fiscal year 2001 CTR funds available for obligation for three 
     fiscal years.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Funding allocations (sec. 1302)
       The budget request included $458.4 million for the 
     Cooperative Threat Reduction (CTR) Program.
       The House bill contained a provision (sec. 1302) that would 
     authorize $443.4 million for the CTR Program for fiscal year 
     2001, a $15.0 million decrease. The provision would increase 
     funding for strategic nuclear arms elimination projects in 
     Russia and Ukraine, decrease funding for defense and military 
     contacts, and deny funding, pursuant to the prohibition 
     contained in section 1305 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65), 
     for activities related to a chemical weapons destruction 
     facility in Russia.
       The Senate amendment would authorize the budget request.
       The Senate recedes with an amendment that would authorize 
     $443.4 million for CTR programs to include: $177.8 million 
     for strategic offensive arms elimination in Russia; $29.1 
     million for strategic nuclear arms elimination in Ukraine; 
     $9.3 million for warhead dismantlement processing in Russia; 
     $14.0 million for weapons transportation security in Russia; 
     $57.4 million for planning, design, and construction of the 
     storage facility for Russian fissile materials; $89.7 million 
     for weapons storage security in Russia; $32.1 million for the 
     elimination of the production of weapons grade plutonium at 
     Russian reactors; $12.0 million for biological weapons 
     proliferation prevention activities in the former Soviet 
     Union; $13.0 million for other assessments and administrative 
     support, and $9.0 million for defense and military contacts.
     Prohibition on use of funds for elimination of conventional 
         weapons (sec. 1303)
       The House bill contained a provision (sec. 1303) that would 
     prohibit the use of Cooperative Threat Reduction (CTR) funds 
     to be used for the elimination of conventional weapons or 
     delivery vehicles primarily intended to deliver such weapons.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees continue to believe that the CTR program 
     should remain focused on eliminating the threat posed by 
     weapons of mass destruction and their delivery vehicles in 
     the former Soviet Union. The conferees are concerned by 
     indications that the Department of Defense may be considering 
     using CTR funds for the elimination of delivery systems 
     primarily intended to deliver conventional weapons, and note 
     that such actions would be prohibited by this section.
     Limitations on use of funds for fissile material storage 
         facility (sec. 1304)
       The House bill contained a provision (sec. 1304) that would 
     limit the use of fiscal year 2001 Cooperative Threat 
     Reduction funds for construction, design, or planning of a 
     second wing for the Mayak fissile material storage facility 
     until 15 days after the date that the Secretary of Defense 
     submits to Congress notification that Russia and the United 
     States have signed a written transparency agreement that 
     provides that the material stored at the facility is of 
     weapons origin. The provision also establishes a funding cap 
     for the first wing of the facility of not more than $412.6 
     million.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
       The conferees agree to establish a funding cap for the 
     first wing of the facility because of continuing concerns 
     over the ability and willingness of Russia to pay its share 
     of the costs, and the previous agreement of the Department of 
     Defense to absorb additional costs without prior 
     congressional consultation.
     Limitation on use of funds to support warhead dismantlement 
         processing (sec. 1305)
       The House bill contained a provision (sec. 1307) that would 
     limit fiscal year 2001 funds for warhead dismantlement 
     processing in Russia until 15 days after the date that the 
     Secretary of Defense submits to Congress notification that 
     the United States has reached an agreement with Russia, 
     providing for appropriate transparency measures regarding 
     assistance by the United States with respect to such 
     processing.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Agreement on nuclear weapons storage sites (sec. 1306)
       The House bill contained a provision (sec. 1308) that would 
     direct the Secretary of Defense to seek to enter into an 
     agreement with Russia regarding procedures to allow the 
     United States appropriate access to nuclear weapons storage 
     sites for which assistance under Cooperative Threat Reduction 
     programs is provided.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Limitation on use of funds for construction of fossil fuel 
         energy plants; report (sec. 1307)
       The House bill contained a provision (sec. 1309) that would 
     prevent Cooperative Threat Reduction (CTR) funds from being 
     used for the construction of a fossil fuel energy plant.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that prevents fiscal 
     year 2001 CTR funds from being used for the construction of a 
     fossil fuel energy plant intended to provide power to local 
     communities already receiving power from nuclear energy 
     plants that produce plutonium. The amendment also would 
     require a report to Congress, no later than 60 days after 
     enactment of this Act, detailing options for assisting Russia 
     in the development of alternative energy sources to the three 
     plutonium production reactors remaining in operation in 
     Russia.
     Reports on activities and assistance under cooperative threat 
         reduction programs (sec. 1308)
       The Senate amendment contained a provision (sec. 1207) that 
     would consolidate several annual reporting requirements 
     concerning the Cooperative Threat Reduction (CTR) program. 
     The consolidated report would include: (1) an estimate of the 
     total amount required to be expended to achieve the 
     objectives of the program; (2) a description of a five year 
     plan; (3) a description of the program activities carried out 
     during the previous fiscal year; (4) a description of the 
     audits and examinations conducted by the program to account 
     for and ensure that the assistance is being used for its 
     intended purpose; and (5) a current description of the 
     tactical nuclear weapons arsenal of Russia. The first report 
     would be submitted to Congress not later than the first 
     Monday in February 2002. Also contained in the annual report 
     would be a requirement for the Comptroller General of the 
     United States to conduct an annual assessment of the 
     information provided in the consolidated CTR report. The 
     assessment would be due 60 days after the date on which the 
     annual report is submitted to Congress.
       The House bill contained a provision (sec. 1305) that would 
     limit not more than 10 percent of fiscal year 2001 
     Cooperative Threat Reduction (CTR) funds from being expended 
     or obligated until the Department of Defense submits to 
     Congress an updated version of the CTR multiyear plan for 
     fiscal year 2001, and another provision (sec. 1306) that 
     would require the first report on Russian nonstrategic 
     nuclear arms to be submitted to Congress not later than 
     October 1, 2000.
       The House recedes with an amendment that would add the 
     provisions from the House bill to the CTR consolidated 
     report, require the first consolidated report to be due on 
     February 5, 2001, and narrow the scope of the Comptroller 
     General's assessment to a review of the five year plan and 
     the audits and examinations information in the annual report. 
     This assessment would be submitted to Congress not later than 
     90 days after the date the CTR annual report is submitted to 
     Congress, with the first Comptroller General's assessment 
     submitted in 2001.
       The conferees note that there have been repeated delays in 
     the submission of the CTR reports to the Congress. The 
     conferees expect that consolidating CTR reporting 
     requirements into one annual report will facilitate the 
     Department's ability to meet the congressionally mandated due 
     date each year. The conferees believe that meeting this 
     deadline provides the Congress with critical programmatic 
     information crucial to the oversight of the CTR program. 
     Failure to meet such deadlines impedes congressional 
     oversight and is of great concern to the conferees. In light 
     of this concern, the conferees expect the Department to meet 
     the CTR report requirements and deadline, and agree that 
     noncompliance may warrant future legislative measures to 
     limit funding obligations and expenditures until such time as 
     the necessary information is provided to the Congress.
     Russian chemical weapons elimination (sec. 1309)
       The Senate amendment contained a provision (sec. 1208) that 
     would amend the prohibition contained in section 1305 of the 
     National Defense Authorization Act for Fiscal

[[Page 21707]]

     Year 2000 (Public Law 106-65) to limit fiscal year 2000 
     Cooperative Threat Reduction (CTR) funds, and funds 
     appropriated after the date of enactment, from being 
     obligated or expended to construct the Shchuch'ye chemical 
     weapons destruction facility in Russia until 30 days after 
     the Secretary of Defense certifies in writing to the Armed 
     Services Committees of the Senate and the House of 
     Representatives that for that fiscal year four specific 
     criteria have been met. These criteria are: (1) that the 
     government of Russia has agreed to provide at least $25.0 
     million annually for the construction, support, and operation 
     of the facility; (2) that Russia has agreed to utilize this 
     facility to destroy the remaining four stockpiles of nerve 
     agents located throughout Russia; (3) that the United States 
     has obtained multiyear commitments from the international 
     community for the support of social infrastructure projects 
     for Shchuch'ye; and (4) that Russia has agreed to destroy its 
     chemical weapons production facilities at Volgograd and 
     Novocheboksark.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express 
     support for international assistance, when practicable, to 
     assist Russia in eliminating its chemical weapons stockpile 
     in accordance with Russia's obligations under the Chemical 
     Weapons Convention. The amendment would also require that the 
     Secretary of Defense submit a report to the Armed Services 
     Committees of the Senate and the House of Representatives 
     that identifies: (1) the amount of money spent by Russia for 
     chemical weapons elimination during fiscal year 2000; (2) the 
     assistance being provided by the international community for 
     the safe storage and elimination of Russia's stockpile of 
     nerve agents, including those at Shchuch'ye; (3) the 
     countries providing the assistance; and (4) the value of the 
     assistance that the international community has already 
     provided and has committed for this purpose.
       The conferees agree not to repeal or amend the existing 
     prohibition contained in Public Law 106-65 on funding for the 
     chemical weapons destruction facility in Russia. The 
     conferees believe the international community should take a 
     more active role in assisting Russia with its chemical 
     weapons elimination efforts. The conferees will continue to 
     monitor progress in the effort to reduce and eliminate the 
     threat from Russia's chemical weapons, including the 
     participation of the international community in this effort. 
     The conferees note that there are a number of options 
     available within the CTR Program to advance U.S. threat 
     reduction and nonproliferation objectives, including 
     assisting Russia in its efforts to secure and eliminate its 
     chemical weapons stockpiles. The conferees note the 
     availability of prior-year funds that may be used to support 
     this effort.
     Limitation on use of funds for elimination of weapons grade 
         plutonium program (sec. 1310)
       The Senate amendment contained a provision (sec. 1209) that 
     would prevent more than 50 percent of fiscal year 2001 
     Cooperative Threat Reduction (CTR) funds from being obligated 
     or expended until 30 days after the Secretary of Defense 
     submits to Congress a report on an agreement between the 
     United States and Russia regarding a new option selected for 
     the shut down or conversion of the reactors in the 
     elimination of weapons grade plutonium program in Russia. The 
     report must also contain the new date when such reactors will 
     cease production of weapons grade plutonium and any cost 
     sharing arrangements between Russia and the United States in 
     undertaking the activities in this program.
       The House bill contained no similar provision.
       The House recedes.
     Report on audits of Cooperative Threat Reduction programs 
         (sec. 1311)
       The House bill contained a provision (sec. 1310) that would 
     direct the Comptroller General to submit to Congress a report 
     not later than March 31, 2001, examining the procedures and 
     mechanisms with respect to audits by the Department of 
     Defense of the use of funds for Cooperative Threat Reduction 
     programs.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Limitation on use of funds for prevention of biological 
         weapons proliferation in Russia
       The House bill contained a provision (sec. 1311) that would 
     limit Cooperative Threat Reduction funds from being obligated 
     or expended for the prevention of proliferation of biological 
     weapons in Russia until the President submits to Congress the 
     report on the Expanded Threat Reduction Initiative required 
     by section 1309 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65). This report was due 
     March 31, 2000.
       The Senate amendment contained no similar provision.
       The House recedes.

 Title XIV--Commission to Assess the Threat to the United States from 
                   Electromagnetic Pulse (EMP) Attack


                     LEGISLATIVE PROVISIONS ADOPTED

     Commission to assess the threat to the United States from 
         electromagnetic pulse (EMP) attack (secs. 1401-1409)
       The House bill contained a provision (secs. 1401-1409) that 
     would establish a Commission to Assess the Threat to the 
     United States from Electromagnetic Pulse (EMP) Attack.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to submit a report to Congress 
     commenting on the Commission's findings and conclusions, 
     describing the political-military scenarios that could 
     possibly lead to an EMP attack against the United States, 
     evaluating the relative likelihood of an EMP attack against 
     the United States compared to other threats involving nuclear 
     weapons, and explaining the actions intended to implement the 
     recommendations of the Commission and the reasons for doing 
     so.

    Title XV--Navy Activities on The Island of Vieques, Puerto Rico


                     LEGISLATIVE PROVISIONS ADOPTED

     Navy activities on the island of Vieques, Puerto Rico (secs. 
         1501-1508)
       The House bill contained a provision (sec. 1501) that would 
     convey the Navy property, comprising the Naval Ammunition 
     Support Detachment, on the western side of the Island of 
     Vieques, Puerto Rico, except the communication and radar 
     sites, to the Commonwealth of Puerto Rico under the terms of 
     the agreement between the President and the Governor of 
     Puerto Rico.
       The Senate amendment contained provisions (secs. 1301-1308) 
     that would support the agreement reached between the 
     President and the Governor of Puerto Rico intended to restore 
     relations between the people of Vieques and the Navy, and to 
     provide for the continuation of live fire training on the 
     Island of Vieques. Specifically, the Senate bill would 
     authorize $40.0 million for infrastructure and other economic 
     projects on the Island of Vieques, and would require the 
     President to conduct a referendum on Vieques to determine 
     whether the people of Vieques approve or disapprove of the 
     continuation of live-fire military training on the island. 
     The conservation zones on the western side of the island, 
     containing seven endangered and threatened species, would be 
     transferred to the Secretary of Interior to be administered 
     as wildlife refuges. If the people of Vieques approve the 
     continuation of live-fire training, the provision would 
     authorize an additional $50.0 million in economic aid for the 
     island. If the people of Vieques disapprove the continuation 
     of live-fire training, the provision would require the Navy 
     and Marine Corps to cease all training operations on the 
     Island of Vieques by May 1, 2003; to terminate any operations 
     at Roosevelt Roads related to the use of training ranges on 
     Vieques, to reduce other defense activities at Roosevelt 
     Roads to levels necessary for national security reasons, and 
     to transfer all Navy property on the eastern side of the 
     Island of Vieques to the Secretary of the Interior. The 
     Secretary of Interior would be required to retain the 
     transferred properties subject to further congressional 
     action regarding disposition.
       The conferees remain concerned about the lack of live-fire 
     access to the Naval training facility on the Island of 
     Vieques, and the related negative consequences for Navy and 
     Marine Corps readiness. In testimony before the Congress, the 
     Chairman of the Joint Chiefs of Staff, along with the Chief 
     of Naval Operations and the Commandant of the Marine Corps, 
     stated that Vieques provides integrated live-fire training 
     ``. . . critical to our readiness.'' The Secretary of the 
     Navy also testified that ``. . . only by providing this 
     preparation can we fairly ask our service members to put 
     their lives at risk.'' The concern of the Joint Chiefs of 
     Staff were reinforced by operational commanders including the 
     Commander of the Sixth Fleet of the Navy who stated that the 
     loss of Vieques would ``cost American lives.''
       The House recedes.
       The conferees agree to include provisions that would 
     support the agreement reached between the President and the 
     Governor of Puerto Rico regarding the future of Navy live-
     fire military training on Vieques. The conferees agree to 
     authorize $40.0 million in immediate economic assistance for 
     the Municipality of Vieques.
       The conferees would specifically include a provision that 
     would transfer, with certain exceptions, the land comprising 
     the Navy Ammunition Support Detachment to the Municipality of 
     Vieques. The property would be administered, managed, and 
     controlled by the Municipality of Vieques in a manner that is 
     determined to be most advantageous to the majority of the 
     residents of Vieques. The relocatable over-the-horizon radar 
     site, the telecommunications equipment site on Mount Pirata, 
     and any easements or rights-of-way associated with these 
     sites would be exempted from transfer and retained by the 
     Navy.
       The conservation zones on the land comprising the Navy 
     Ammunition Support Detachment would be transferred to the 
     Secretary of Interior to be administered and

[[Page 21708]]

     managed by the Secretary as a wildlife refuge through a 
     cooperative agreement among the Commonwealth of Puerto Rico, 
     the Puerto Rico Conservation Trust, and the Secretary of 
     Interior. Property adjacent to these wildlife refuge areas 
     could be included in the cooperative agreement, however, such 
     areas would not exceed 800 acres. If the cooperative 
     agreement is not completed before the required transfer date, 
     the Secretary of Interior should begin the administration and 
     management of the land as wildlife refuges.
       Given the importance of the Navy training range to national 
     security and the unique circumstances of the people of 
     Vieques, the conferees would also include a provision that 
     would require a binding referendum by the people of Vieques 
     to determine if the range should remain available for live-
     fire training. The referendum would require that the 
     residents of Vieques vote on the future of live-fire training 
     at the Navy range on Vieques. The vote would take place on 
     May 1, 2001, or 270 days before or after that date. The 
     conferees would authorize the referendum, despite remaining 
     reservations regarding the propriety of such an action, and 
     would also do so with the clear expectation that this 
     represents a unique circumstance, and such local referenda 
     should not be used to determine the status of national 
     security assets.
       The conferees agree to authorize an additional $50.0 
     million to provide economic assistance to the people of 
     Vieques if there is a vote in favor of continued live-fire 
     training at the Navy range.
       If the people of Vieques disapprove continued live-fire 
     training, or the Chief of Naval Operations and the Commandant 
     of the Marine Corps jointly submit to the congressional 
     defense committees a certification that the range is no 
     longer needed for training by the Navy and the Marine Corps, 
     all Navy owned land on the eastern side of the island, with 
     the exception of the live-fire area, would be transferred to 
     the Secretary of Interior to be administered and managed as a 
     wildlife refuge. The live impact area would be administered 
     as a wilderness area with no public access permitted.
       Finally, the conferees would also include a provision that 
     would impose a moratorium on new construction at Fort 
     Buchanan pending a determination that such construction would 
     be required despite the potential for relocation to Roosevelt 
     Roads. Reserve component and nonappropriated fund facilities 
     would not be included in the moratorium.
       The conferees recognize and appreciate the sacrifice made 
     by the people of Vieques and other communities located near 
     U.S. military training installations, which have ensured the 
     readiness of U.S. military forces. The conferees remain 
     concerned that future training may be jeopardized as a result 
     of historically poor relations with the people of Vieques, 
     and the tragic accident which resulted in the death of a 
     civilian employee of the Navy. The conferees hope that the 
     Navy and the people of Vieques will successfully develop and 
     sustain a cooperative relationship for the future.

                 Title XVI--Veterans Education Benefits


                     LEGISLATIVE PROVISIONS ADOPTED

     Additional opportunity for certain VEAP participants to 
         enroll in basic educational assistance under Montgomery 
         G.I. Bill (sec. 1601)
       The Senate amendment contained a provision (sec. 683) that 
     would authorize the secretary of a military department to, as 
     a recruiting or retention incentive, permit a service member 
     who was previously eligible for the Veterans Educational 
     Assistance Program (VEAP) or who did not elect to participate 
     in the Montgomery G.I. Bill to enroll in the Montgomery G.I. 
     Bill educational benefit program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would, during a 
     one-year period following enactment, permit individuals who 
     were previously enrolled in VEAP to enroll in the Montgomery 
     G.I. Bill program after paying a premium not to exceed 
     $2,700.
     Modification of authority to pay tuition for off-duty 
         training and education (sec. 1602)
       The Senate amendment contained a provision (sec. 684) that 
     would authorize the secretary of a military department to pay 
     up to 100 percent of the charges of an educational 
     institution for the tuition or expenses of a service member 
     enrolled in an off-duty educational program and would permit 
     service members to use their Montgomery G.I. Bill educational 
     benefit to pay any portion of the charges that are not paid 
     by the secretary of the military department.
       The House bill contained no similar provision.
       The House recedes.
     Clarification of Department of Veterans Affairs duty to 
         assist (sec. 1611)
       The Senate amendment contained a provision (sec. 672) that 
     would clarify the responsibility of the Secretary of Veterans 
     Affairs to assist claimants in developing all facts pertinent 
     to a claim for benefits.
       The House bill contained no similar provision.
       The House recedes.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Modification of time for use by certain members of the 
         Selected Reserve of entitlement to educational assistance
       The Senate amendment contained a provision (sec. 670) that 
     would extend the time frame in which members of the Selected 
     Reserve could use their educational benefits.
       The House bill contained no similar provision.
       The Senate recedes.
     Modification of time for use by certain members of Selected 
         Reserve of entitlement to certain educational assistance
       The Senate amendment contained a provision (sec. 685) that 
     would extend the period in which members of the Selected 
     Reserve may use their Reserve Montgomery G.I. Bill benefits 
     to five years after they separate from the reserves.
       The House bill contained no similar provision.
       The Senate recedes.
     Short title
       The Senate amendment contained a provision (sec. 681) that 
     would establish the subtitle, ``Helping Our Professionals 
     Educationally (HOPE) Act of 2000.''
       The House bill contained no similar provision.
       The Senate recedes.
     Transfer of entitlement to educational assistance by certain 
         members of the armed forces
       The Senate amendment contained a provision (sec. 682) that 
     would authorize the secretary of a military department, as a 
     recruiting or retention incentive, to permit a service member 
     to transfer their entitlement to the basic educational 
     benefit under the Montgomery G.I. Bill, in whole or in part, 
     to their dependents.
       The House bill contained no similar provision.
       The Senate recedes.

                 Title XVII--Assistance to Firefighters


                     LEGISLATIVE PROVISIONS ADOPTED

     Assistance to Firefighters (secs. 1701-1707)
       The Senate amendment contained a provision (sec. 1072) that 
     would authorize a six-year, $3.1 billion competitive federal 
     grant program to provide assistance to local firefighting 
     departments for the purpose of protecting the health and 
     safety of the public and firefighting personnel, including 
     volunteers and emergency medical service personnel, against 
     fire and fire-related hazards. The provision would authorize 
     grant funds to be used for various firefighting related 
     activities including the hiring of additional personnel, the 
     training of personnel, the procurement of vehicles and other 
     equipment, certification of fire inspectors, and similar 
     activities. A 10 percent matching requirement of non-federal 
     funds under this program would be required. The Director of 
     the Federal Emergency Management Agency (FEMA) would be 
     responsible for the administration of the program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize a 
     series of provisions (secs. 1701-1707) to provide assistance 
     to local firefighting departments.
       The amendment would authorize a two-year, $400.0 million 
     competitive grant program to provide assistance to local 
     firefighting departments. Each grant could not exceed 
     $750,000. In order for a grant applicant to receive funds, 
     the applicant would have to demonstrate a financial need for 
     the assistance; outline the costs and benefits of public 
     safety in relation to the use of the assistance; and agree to 
     provide information to the National Fire Incident Reporting 
     System. There would be a 30 percent matching requirement of 
     non-federal funds under this program for fire departments 
     that serve more than 50,000 people, and a 10 percent matching 
     requirement of non-federal funds for fire departments that 
     serve 50,000 people or less. The Director of FEMA would be 
     required to ensure that communities protected by volunteer 
     firefighters receive grant funding that at least reflects a 
     proportionate share, as compared to the U.S. population as a 
     whole. The Director of FEMA would also be required to submit 
     a report to Congress that provides the current role and 
     activities associated with the fire services, the adequacy of 
     current funding, and a needs assessment to identify 
     shortfalls. The Director of FEMA would consult with the chief 
     executive of a state when making a direct grant.
       The amendment would also include a two-year, $30.0 million 
     program to provide assistance to state foresters or 
     equivalent state officials for firefighting activities. The 
     Secretary of Agriculture would be responsible for the 
     administration of this program. The Secretary of Agriculture 
     would be required to submit a report to Congress on the 
     results of the assistance provided under this program.
       The amendment would further authorize a two-year, $30.0 
     million competitive grant program to hospitals that serve as 
     regional burn centers, to safety organizations that conduct 
     burn safety programs to assist burn prevention programs, to 
     programs that augment existing burn prevention programs, or 
     to other entities that provide after-burn treatment and 
     counseling for burn victims. The Director of FEMA would be 
     responsible

[[Page 21709]]

     for the administration of the program. The Director would be 
     required to submit a report to Congress on the results of the 
     assistance provided under this aspect of the grant program.
       The amendment would also require the Secretary of Health 
     and Human Services, in consultation with the Secretary of 
     Labor, to conduct a study regarding the prevalence of 
     hepatitis C among emergency response employees of the United 
     States. The Secretary of Health and Human Services, in 
     consultation with the Secretary of Labor, would also be 
     authorized to make grants to qualifying local governments 
     that are qualified to carry out demonstration projects that 
     train employees to minimize the risk of hepatitis C 
     infection, and to test and treat employees for the disease.
       The amendment would further require the Secretary of 
     Defense, in consultation with the Attorney General and the 
     Secretary of Commerce, to conduct an engineering study to 
     identify any portions of the 138-144 megahertz band that the 
     Department of Defense can share with public safety radio 
     services in various geographic regions of the United States. 
     The study would include recommended measures necessary to 
     prevent harmful interference between the Department of 
     Defense systems and the public safety systems, and a 
     reasonable schedule for the sharing of frequencies, provided 
     such sharing can be accomplished without causing 
     interference. The Secretary of Commerce and the Chairman of 
     the Federal Communications Commission would also be required 
     to submit a report to Congress on alternative frequencies 
     that are, or could be made, available for use by public 
     safety systems.
       The amendment would authorize the Secretary of Defense to 
     transfer excess personal property of the Department of 
     Defense to firefighting agencies if the property is 
     determined to be suitable for use in providing fire and 
     emergency medical services. The property would have to be 
     drawn from existing stocks of the Department of Defense and 
     made without cost to the Department. The recipient 
     firefighting department would accept the property on an as-
     is, where-is basis and cover all costs of the transfer of the 
     property.
       Finally, the amendment would require the establishment of a 
     task force to identify defense technologies and equipment 
     that could be readily put to use by fire service and 
     emergency response personnel, and could be transferred to 
     fire departments. The task force would consist of a 
     representative from the Department of Defense and each of the 
     seven organizations representing various views in 
     firefighting.

                        Title XVIII--Impact Aid


                     LEGISLATIVE PROVISIONS ADOPTED

     Impact Aid Reauthorization Act of 2000 (secs. 1801-1818)
       The conference agreement includes provisions that would 
     amend the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7701) to extend the authority for, and to restructure, 
     assistance programs for local educational agencies impacted 
     by federal presence. The provisions would make adjustments to 
     the impact aid program to accommodate military housing 
     privatization initiatives and would restructure the formula 
     to increase impact aid to schools serving military children. 
     Other provisions would hold school districts harmless in 
     cases where military children have been temporarily relocated 
     to off-base housing while on-base housing is renovated and 
     would provide additional support to school districts required 
     to support privatized military housing areas constructed on 
     non-federal land. The provisions would accelerate payment of 
     impact aid to the most severely effected school districts and 
     would authorize the Secretary of Education to provide grants 
     to school districts to renovate and repair schools with the 
     greatest need. The provisions would also establish a minimum 
     funding level for small, poor school districts.
     Overview
       The budget request for fiscal year 2001 included 
     $8,033,908,000 for military construction and family housing.
       The House bill would authorize $8,433,908,000 for military 
     construction and family housing.
       The Senate amendment would provide $8,463,908,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $8,821,172,000 for military construction and family housing, 
     including general reductions and revised economic 
     assumptions.

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[[Page 21729]]



          FY 2001 BRAC MILITARY CONSTRUCTION PROJECTS--AIR FORCE: BRAC IV CONSTRUCTION, FISCAL YEAR 2001
                                             [Dollars in Thousands]
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location           Description             Amount
----------------------------------------------------------------------------------------------------------------
Texas....................................  Fort Sam Houston...........  Defense Reutilization and         12,800
                                                                         Marketing Organization
                                                                         Complex.
Total Air Force-BRAC IV Construction.....  ...........................  ...........................       12,800
----------------------------------------------------------------------------------------------------------------

                            Title XXI--Army

     Overview
       The House bill would authorize $1,824,640,000 for Army 
     military construction and family housing programs for fiscal 
     year 2001.
       The Senate amendment would authorize $1,978,295,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $1,925,344,000 for Army military construction and family 
     housing for fiscal year 2001.
       The conferees agree to the following reductions: $635,000, 
     which represents the combination of savings from adjustment 
     to foreign currency rates for military construction outside 
     the United States; and $19,911,000, which represents the 
     combination of savings from adjustment to foreign currency 
     rates for military family housing construction and military 
     family housing support outside the United States. The 
     reductions shall not cancel any military construction 
     authorized by title XXI of this Act.


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorized Army construction and land acquisition projects 
         (sec. 2101)
       The House bill contained a provision (sec. 2101) that would 
     authorize Army construction projects for fiscal year 2001. 
     The authorized amounts are listed on an installation-by-
     installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Family housing (sec. 2102)
       The House bill included a provision (sec. 2102) that would 
     authorize new construction and planning and design of family 
     housing units for the Army for fiscal year 2001. The 
     authorized amounts are listed on an installation-by-
     installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2103)
       The House bill contained a provision (sec. 2103) that would 
     authorize improvements to existing units of family housing 
     for fiscal year 2001.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Authorization of appropriations, Army (sec. 2104)
       The House bill contained a provision (sec. 2104) that would 
     authorize specific appropriations for each line item 
     contained in the Army's budget for fiscal year 2001. This 
     section would also provide an overall limit on the amount the 
     Army may spend on military construction projects.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Modification of authority to carry out certain fiscal year 
         2000 projects (sec. 2105)
       The Senate amendment contained a provision (sec. 2105) that 
     would amend section 2101 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65) to make technical corrections in the funding 
     authorization for Fort Stewart, Georgia, and Fort Riley, 
     Kansas. The provision would also amend section 2104 of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65) to provide for an increase 
     in the amount authorized for appropriation for unspecified 
     minor construction from $9.5 million to $14.6 million. The 
     provision would also make certain conforming changes.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 2101 of the Military Construction Authorization Act 
     for Fiscal Year 2000 (division B of Public Law 106-65) to 
     provide for an increase in the amount authorized for CONUS 
     Various due to a change in scope.
     Modification of authority to carry out certain fiscal year 
         1999 projects (sec. 2106)
       The House bill contained a provision (sec. 2105) would 
     amend section 2101 of the Military Construction Authorization 
     Act for Fiscal Year 1999 (division B of Public Law 105-261) 
     to provide for an increase in the amount authorized for the 
     construction of a railhead facility at Fort Hood, Texas.
       The Senate amendment contained a similar provision (sec. 
     2106) that would amend section 2101 of the Military 
     Construction Act for Fiscal Year 1999 (division B of Public 
     Law 105-261) to increase the amount authorized for the 
     construction of a barracks project at Fort Riley, Kansas, 
     from $41.0 million to $44.5 million, and a railhead facility 
     at Fort Hood, Texas, from $32.5 million to $45.3 million. The 
     provision would also make certain technical corrections.
       The House recedes with a technical amendment.
     Modification of authority to carry out fiscal year 1998 
         project (sec. 2107)
       The Senate amendment contained a provision (sec. 2107) that 
     would amend section 2101 of the Military Construction Act for 
     Fiscal Year 1998 (division B of Public Law 105-85) to provide 
     an increase in the amount authorized for the construction of 
     a barracks project at Hunter Army Airfield, Fort Stewart, 
     Georgia, from $54.0 million to $57.5 million. The provision 
     would also make certain technical corrections.
       The House bill contained no similar provision.
       The House recedes.
     Authority to accept funds for realignment of certain military 
         construction project, Fort Campbell, Kentucky (sec. 2108)
       The Senate amendment contained a provision (sec. 2108) that 
     would authorize the Secretary of the Army to accept funds 
     from the Federal Highway Administration (FHA) or the 
     Commonwealth of Kentucky to fund the additional costs 
     associated with the realignment of a rail connector military 
     construction project at Fort Campbell, Kentucky, authorized 
     by section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 1997 (division B of Public Law 104-210). 
     The provision would authorize the Secretary to use the funds 
     received from the FHA or the Commonwealth in the same manner 
     as funds authorized and appropriated for the rail connector 
     project. The provision would also specify that the costs 
     associated with realignment include, but are not limited to, 
     redesign costs, additional construction costs, additional 
     costs due to construction delays related to the realignment, 
     and additional real estate costs.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                            Title XXII--Navy

     Overview
       The House bill would authorize $2,187,673,000 for Navy 
     military construction and family housing programs for fiscal 
     year 2001.
       The Senate amendment would authorize $2,095,163,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $2,227,995,000 for Navy military construction and family 
     housing for fiscal year 2001.
       The conferees agree to general reductions of $20,000,000 in 
     the authorization of appropriations for the Navy military 
     construction and military family housing accounts. The 
     reductions are to be offset by savings from favorable bids, 
     reduction in overhead costs, and cancellation of projects due 
     to force structure changes. The conferees further agree to a 
     reductions of $2,889,000, which represents the combination of 
     savings from adjustment to foreign currency rates for 
     military construction outside the United States and 
     $1,071,000, which represents the combination of savings from 
     adjustment to foreign currency rates for military family 
     housing support outside the United States. The general 
     reductions shall not cancel any military construction 
     authorized by title XXII of this Act.


                       ITEMS OF SPECIAL INTEREST

     Improvements to military family housing, Navy
       The conferees recommend that, within authorized amounts for 
     improvements to military family housing and facilities, the 
     Secretary of the Navy execute the following projects: 
     $9,030,000 for Whole House Revitalization (98 units) at 
     Marine Corps Base, Camp Pendleton, California; and $500,000 
     for Whole House Revitalization (one unit) at the 8th and I 
     Marine Corps Barracks, District of Columbia.


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorized Navy construction and land acquisition projects 
         (sec. 2201)
       The House bill contained a provision (sec. 2201) that would 
     authorize Navy construction projects for fiscal year 2001. 
     The authorized amounts are listed on an installation-by-
     installation basis.

[[Page 21730]]

       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Family housing (sec. 2202)
       The House bill contained a provision (sec. 2202) that would 
     authorize new construction and planning and design of family 
     housing units for the Navy for fiscal year 2001. The 
     authorized amounts are listed on an installation-by-
     installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2203)
       The House contained a provision (sec. 2203) that would 
     authorize improvements to existing units of family housing 
     for fiscal year 2001. The authorized amounts are listed on an 
     installation-by-installation basis.
       The Senate bill amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Authorization of appropriations, Navy (sec. 2204)
       The House bill contained a provision (sec. 2204) that would 
     authorize specific appropriations for each line item in the 
     Navy's budget for fiscal year 2001. This provision would also 
     provide an overall limit on the amount the Navy may spend on 
     military construction projects.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Modification of authority to carry out fiscal year 1997 
         project at Marine Corps Combat Development Command, 
         Quantico, Virginia (sec. 2205)
       The House bill contained a provision (sec. 2205) that would 
     modify the authorized use of funds authorized for 
     appropriation for fiscal year 1997 for a military 
     construction project at Marine Corps Command Development 
     Command, Quantico, Virginia. The provision would permit the 
     use of previously authorized funds to carry out a military 
     construction project involving infrastructure development at 
     that installation.
       The Senate amendment contained a similar provision (sec. 
     2205).
       The House recedes with a technical amendment.

                         Title XXIII--Air Force

     Overview
       The House bill would authorize $1,766,136,000 for Air Force 
     military construction and family housing programs for fiscal 
     year 2001.
       The Senate amendment would authorize $1,851,909,000 for 
     this purpose.
       The conferees recommend authorization of appropriations of 
     $1,943,069,000 for Air Force military construction and family 
     housing for fiscal year 2001.
       The conferees agree to a $12,231,000 reduction which 
     represents the combination of savings from adjustment to 
     foreign currency rates for military family housing 
     construction and military family housing support outside the 
     United States. The reduction shall not cancel any military 
     construction authorized by title XXIII of this Act.


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorized Air Force construction and land acquisition 
         projects (sec. 2301)
       The House bill contained a provision (sec. 2301) that would 
     authorize Air Force construction projects for fiscal year 
     2001. The authorized amounts are listed on an installation-
     by-installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Family housing (sec. 2302)
       The House bill contained a provision (sec. 2302) that would 
     authorize new construction and planning and design of family 
     housing units for the Air Force for fiscal year 2001.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Improvements to military family housing units (sec. 2303)
       The House bill contained a provision (sec. 2303) that would 
     authorize improvements to existing units of family housing 
     for fiscal year 2001.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
     Authorization of appropriations, Air Force (sec. 2304)
       The House bill contained a provision (sec. 2304) that would 
     authorize specific appropriations for each line item in the 
     Air Force budget for fiscal year 2001. This provision would 
     also provide an overall limit on the amount the Air Force may 
     spend on military construction projects.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.

                      Title XXIV--Defense Agencies

     Overview
       The House bill would authorize $860,390,000 for Defense 
     Agencies military construction and family housing programs 
     for fiscal year 2001. The bill would also authorize 
     $1,174,369,000 for base closure activities.
       The Senate amendment would authorize $736,884,000 for 
     Defense Agencies military construction and family housing 
     programs for fiscal year 2001. The amendment would also 
     authorize $1,174,369,000 for base closure activities.
       The conferees recommend authorization of appropriations of 
     $859,533,000 for Defense Agencies military construction and 
     family housing for fiscal year 2001. The conferees also 
     recommend authorization of appropriations of $1,024,369,000 
     for base closure activities.
       The conferees agree to a general reduction of $20,000,000 
     in the authorization of appropriations for the chemical 
     demilitarization program. The reduction represents the 
     combination of project savings in military construction for 
     chemical demilitarization resulting from favorable bids, 
     reduced overhead charges, and cancellations due to force 
     structure changes. The conferees do not intend this reduction 
     to interfere with timely compliance with the Chemical Weapons 
     Convention. The conferees further agree to a reduction of 
     $7,115,000, which represents the combination of savings from 
     adjustment to foreign currency rates for military 
     construction outside the United States. The reductions shall 
     not cancel any military construction projects authorized by 
     title XXIV of this Act.


                       ITEMS OF SPECIAL INTEREST

     Military construction projects, Manta Air Base, Ecuador
       The conferees agree, upon certification by the Secretary of 
     Defense that sufficient aircraft will be scheduled to operate 
     out of the Manta Air Base, Ecuador, to justify construction 
     of projects at that facility, funds that have been authorized 
     and appropriated shall be made available for the construction 
     of large aerial surveillance aircraft related facilities, 
     visiting officers' quarters, visiting airmen quarters, and 
     dining facilities at Manta, Ecuador.


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorized Defense Agencies construction and land acquisition 
         projects (sec. 2401)
       The House bill contained a provision (sec. 2401) that would 
     authorize defense agencies construction projects for fiscal 
     year 2001. The authorized amounts are listed on an 
     installation-by-installation basis.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The authorized amounts are listed on an installation-by-
     installation basis. The state list contained in this report 
     is intended to be the binding list of the specific projects 
     authorized at each location.
     Energy conservation projects (sec. 2402)
       The Senate amendment contained a provision (sec. 2402) that 
     would authorize the Secretary of Defense to carry out energy 
     conservation projects.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     for appropriation $15.0 million to carry out energy 
     conservation projects.
     Authorization of appropriations, Defense Agencies (sec. 2403)
       The House bill contained a provision (sec. 2402) that would 
     authorize specific appropriations for each line item in the 
     Defense Agencies budgets for fiscal year 2001. This provision 
     would also provide an overall limit on the amount the Defense 
     Agencies may spend on military construction projects.
       The Senate amendment contained a similar provision (sec. 
     2403).
       The conference agreement includes a similar provision.
     Modification of authority to carry out certain fiscal year 
         1990 project (sec. 2404)
       The Senate amendment contained a provision (sec. 2404) that 
     would amend section 2401 of the Military Construction Act for 
     Fiscal Year 1990 and 1991 (division B of Public Law 101-189), 
     as amended by section 2407 of the Military Construction 
     Authorization Act for Fiscal Year 1999 (division B of Public 
     Law

[[Page 21731]]

     103-261) to provide for an increase in the amount authorized 
     for the construction of the Portsmouth Naval Hospital, 
     Virginia, from $342,854,000 to $351,354,000.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

     Overview
       The House bill would authorize $177,500,000 for the U.S. 
     contribution to the NATO Security Investment Program for 
     fiscal year 2001.
       The Senate amendment would authorize $190,000,000 for this 
     purpose.
       The conferees agree to authorize $172,000,000 for the U.S. 
     contribution to the NATO Security Investment Program.


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorized NATO construction and land acquisition projects 
         (sec. 2501)
       The House bill contained a provision (sec. 2501) that would 
     authorize the Secretary of Defense to make contributions to 
     the North Atlantic Treaty Organization Security Investment 
     Program in an amount equal to the sum of the amount 
     specifically authorized in section 2502 of the House bill and 
     the amount of recoupment due to the United States for 
     construction previously financed by the United States.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Authorization of appropriations, NATO (sec. 2502)
       The House bill contained a provision (sec. 2502) that would 
     authorize appropriations of $177,500,000 as the United States 
     contribution to the North Atlantic Treaty Organization (NATO) 
     Security Investment Program.
       The Senate amendment would authorize $190,000,000 for this 
     purpose.
       The conferees agree to authorize $172,000,000 for the 
     United States contribution to the NATO Security Investment 
     Program.

            Title XXVI--Guard and Reserve Forces Facilities

     Overview
       The House bill would authorize $443,200,000 for military 
     construction and land acquisition for fiscal year 2001 for 
     the Guard and Reserve components.
       The Senate amendment would authorize $508,146,000 for this 
     purpose.
       The conferees recommend authorization of appropriations of 
     $668,862,000 for military construction and land acquisition 
     for fiscal year 2001. This authorization would be distributed 
     as follows:

Army National Guard........................................$266,531,000
Air National Guard..........................................194,929,000
Army Reserve................................................108,738,000
Naval and Marine Corps Reserve...............................62,073,000
Air Force Reserve............................................36,591,000
                                                       ________________
                                                       
    Total...................................................668,862,000


                       ITEMS OF SPECIAL INTEREST

     Support for Weapons of Mass Destruction Civil Support Teams
       The conferees included $25.0 million for Unspecified Minor 
     Construction, Army National Guard, to support the activation 
     of the Weapons of Mass Destruction Civil Support Teams. 
     Although these teams are to be assigned to locations that 
     have existing facilities to accommodate their needs, the 
     conferees understand that the Army National Guard has 
     identified a requirement of approximately $31.0 million for 
     the renovation of facilities to accommodate these teams. The 
     conferees are aware that the military construction program 
     for the reserve components is underfunded and that this 
     requirement would place an additional burden on an already 
     constrained military construction program for the Army 
     National Guard. The conferees agree to authorize additional 
     funds for this purpose on a one-time basis and direct the 
     Secretary of the Army to provide a report on the expenditure 
     of these funds not later than October 1, 2001.


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorized Guard and Reserve construction and land 
         acquisition projects (sec. 2601)
       The House bill contained a provision (sec. 2601) that would 
     authorize appropriations for military construction for the 
     guard and reserve by service component for fiscal year 2002.
       The Senate amendment contained a similar provision.
       The conference agreement includes a similar provision.
       The state list contained in this report is intended to be 
     the binding list of specific projects authorized at each 
     location.
     Authority to contribute to construction of airport tower, 
         Cheyenne Airport, Cheyenne, Wyoming (sec. 2602)
       The Senate amendment contained a provision (sec. 2602) that 
     would authorize $1,450,000 for a contribution by the Air 
     National Guard to construction of a new airport tower at 
     Cheyenne Airport, Cheyenne, Wyoming.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of the Air Force to contribute to the Cheyenne 
     Airport Authority, consistent with applicable agreements, up 
     to $1,450,000 from the funds authorized for appropriation in 
     section 2601 to provide for the construction of an airport 
     tower, at Cheyenne Airport, Cheyenne, Wyoming, in support of 
     the Air National Guard mission.

        Title XXVII--Expiration and Extension of Authorizations


                     Legislative Provisions Adopted

     Expiration of authorizations and amounts required to be 
         specified by law (sec. 2701)
       The House bill contained a provision (sec. 2701) that would 
     provide that authorizations for military construction 
     projects, repair of real property, land acquisition, family 
     housing projects and facilities, contributions to the North 
     Atlantic Treaty Organization Security Investment Program, and 
     guard and reserve projects will expire on October 1, 2003, or 
     the date of enactment of an Act authorizing funds for 
     military construction for fiscal year 2004, whichever is 
     later. This expiration would not apply to authorizations for 
     which appropriated funds have been obligated before October 
     1, 2003, or the date of enactment of an Act authorizing funds 
     for these projects, whichever is later.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Extension of authorizations of certain fiscal year 1998 
         projects (sec. 2702)
       The House bill contained a provision (sec. 2702) that would 
     provide for selected extension of certain fiscal year 1998 
     military construction authorizations until October 1, 2001, 
     or the date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 2002, whichever is 
     later.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.
     Extension of authorizations of certain fiscal year 1997 
         projects (sec. 2703)
       The House bill contained a provision (sec. 2703) that would 
     provide for selected extension of certain fiscal year 1997 
     military construction authorizations until October 1, 2001, 
     or the date of the enactment of the Act authorizing funds for 
     military construction for fiscal year 2002, whichever is 
     later.
       The Senate amendment contained a similar provision.
       The House recedes with a technical amendment.
     Effective date (sec. 2704)
       The House bill contained a provision (sec. 2704) that would 
     provide that Titles XXI, XXII, XXIII, XXIV, XV, and XXVI of 
     this bill shall take effect on October 1, 2000, or the date 
     of the enactment of this Act, whichever is later.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.

                    Title XXVIII--General Provisions

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

     Joint use military construction projects (sec. 2801)
       The Senate amendment contained a provision (sec. 2801) that 
     would express the sense of Congress that the Secretary of 
     Defense, when preparing the budget request, should identify 
     military construction projects suitable for joint use, 
     specify in the budget request joint use military construction 
     projects, and give priority to joint use military 
     construction projects. The provision would also direct the 
     Secretary to include in the budget request a certification by 
     each secretary concerned that the service screened each 
     construction project in the budget request for the 
     feasibility for joint use. The provision would further 
     require the Secretary of Defense to submit, not later than 
     September 30 of each year, a report that included the number 
     of military construction projects evaluated for joint use 
     construction, when the project could be executed, and a list 
     of the military construction projects determined to be 
     feasible for joint use. The provision would also make certain 
     conforming changes.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to implement the program requirement by 
     fiscal year 2003. The amendment would also eliminate the 
     requirement that the Secretary of Defense conduct an annual 
     evaluation.
     Exclusion of certain costs from determination of 
         applicability of limitation on use of funds for 
         improvement of family housing (sec. 2802)
       The Senate amendment contained a provision (sec. 2802) that 
     would amend section 2825 of title 10, United States Code, to 
     authorize the secretary concerned to exclude certain costs 
     from the application of the limitation on the use of funds 
     for improvement of military family housing units. The 
     specific costs that would be excluded are the installation, 
     maintenance, and repair of communications, security, or anti-
     terrorism equipment required by the occupant in the 
     performance of

[[Page 21732]]

     his duties. The provision would also exclude the cost of 
     repairing or replacing the exterior of the unit or units if 
     such repair or replacement is necessary to meet historic 
     preservation standards.
       The House bill contained no similar provision.
       The House recedes with an amendment that would exclude only 
     those costs associated with the installation, maintenance, 
     and repair of communications, security, or anti-terrorism 
     equipment required by the occupant in the performance of his 
     duties.
     Revision of space limitations for military family housing 
         (sec. 2803)
       The House bill contained a provision (sec. 2801) that would 
     amend section 2826 of title 10, United States Code, to 
     require the secretary concerned to ensure that the room 
     patterns and floor areas of military family housing units 
     constructed, acquired, or improved by the secretary shall be 
     generally comparable to those available in the locality of 
     the military installation on which such military family 
     housing units are located.
       The Senate amendment contained a similar provision (sec. 
     2803).
       The House recedes with a technical amendment.
     Modification of lease authority for high-cost military family 
         housing (sec. 2804)
       The House bill contained a provision (sec. 2802) that would 
     amend section 2828 of title 10, United States Code, to modify 
     the authorized terms of leasing for military family housing 
     to support the United States Southern Command in Miami, 
     Florida.
       The Senate amendment contained a provision (sec. 2804) that 
     would amend section 2828 of title 10, United States Code, to 
     eliminate the $60,000 per year limitation on the lease of an 
     individual housing unit and to authorize the Secretary of the 
     Army to enter into leases for eight housing units in the 
     Miami area for no more than five years. The provision would 
     further amend section 2828 to authorize the Secretary 
     concerned to adjust the maximum cost authorized for family 
     housing leases based on the percentage that the national 
     average monthly cost of housing differ during the two 
     preceding fiscal years. The provision would authorize the 
     Secretary of the Army to adjust the maximum amount of the 
     eight family housing unit leases in the Miami area by the 
     percent the annual average cost of housing for the Miami 
     Military Housing Area exceeds the annual average cost for the 
     same region for the fiscal year preceding the fiscal year.
       The House recedes with a technical amendment.
     Provision of utilities and services under alternative 
         authority for acquisition and improvement of military 
         housing (sec. 2805)
       The Senate amendment contained a provision (sec. 2806) that 
     would amend section 2872 of title 10, United States Code, to 
     authorize the service secretaries to provide utilities and 
     services to privatized housing units located on a military 
     installation on a reimbursable basis. The payments received 
     for such services would be credited to the appropriate 
     account or working capital fund from which the cost of 
     furnishing the utilities and services are paid.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     list of covered utilities and services.
     Extension of alternative authority for acquisition and 
         improvement of military housing (sec. 2806)
       The House bill contained a provision (sec. 2803) that would 
     amend section 2885 of title 10, United States Code, to extend 
     the authorities contained in subchapter 169 of title 10, 
     United States Code, for an additional five-year period to 
     2006.
       The Senate amendment contained a provision (sec. 2807) that 
     would amend section 2885 of title 10, United States Code, to 
     extend the authorities contained in subchapter 169 of title 
     10, United States Code, for an additional three-year period.
       The House recedes with an amendment that would extend the 
     authorities contained in subchapter 169 of title 10, United 
     States Code, to December 31, 2004.
     Expansion of definition of armory to include readiness 
         centers (sec. 2807)
       The House bill contained a provision (sec. 2804) that would 
     amend section 18232 of title 10, United States Code, to 
     clarify that the term ``readiness center'' shall have the 
     same meaning as the term ``armory.''
       The Senate amendment contained a similar provision (sec. 
     2808).
       The Senate recedes with a technical amendment.

        Subtitle B--Real Property and Facilities Administration

     Increase in threshold for notice and wait requirements for 
         real property transactions (sec. 2811)
       The House bill contained a provision (sec. 2811) that would 
     amend section 2662 of title 10, United States Code, to 
     increase the threshold for notice and wait requirements for 
     real property transactions from $200,000 to $500,000.
       The Senate amendment contained a similar provision (sec. 
     2811).
       The Senate recedes.
     Enhancement of authority of military departments to lease 
         non-excess property (sec. 2812)
       The House bill contained a provision (sec. 2812) that would 
     amend section 2667 of title 10, United States, to modify the 
     permissible forms of consideration received by the secretary 
     concerned for the lease of non-excess real property under the 
     control of the secretary.
       The Senate amendment contained a provision (sec. 2812) that 
     would amend section 2667 of title 10, United States Code, to 
     authorize the secretary concerned to lease facilities that 
     are under the control of that department and that are not 
     excess to the needs of that department. The secretary 
     concerned would be authorized to accept as compensation for 
     the leases, either payment in-kind or cash. The provision 
     would further authorize the secretary concerned to use cash 
     proceeds from leases for maintenance, protection, alteration, 
     repair, improvements or restoration of property or 
     facilities, construction or acquisition of new facilities, 
     lease facilities, and facilities support. The provision would 
     authorize the secretary concerned to construct or acquire 
     facilities in excess of $500,000 only after submission of a 
     report on the facts of the construction or acquisition of 
     such facilities to the congressional defense committees and 
     passage of a waits 30-day waiting period. The provision would 
     also authorize the secretary concerned to indemnify the 
     leasee from any claim for personal injury or property damage, 
     that results from the release of hazardous substance, 
     pollutants or contaminants, petroleum, or unexploded ordnance 
     as a result of Department of Defense activities on the 
     military installation at which the leased property is 
     located.
       The Senate recedes with an amendment that would include the 
     construction of new facilities as in-kind consideration and 
     authorize the secretary concerned to use funds received from 
     money rentals for the construction or acquisition of new 
     facilities. The amendment would impose a notice and wait 
     requirement for any new construction or acquisition of new 
     facilities exceeding $500,000. The amendment would also not 
     include a requirement for a certification by the Comptroller 
     General prior to secretarial acceptance of in-kind 
     consideration or money rentals.
     Conveyance authority regarding utility systems of military 
         departments (sec. 2813)
       The House bill contained a provision (sec. 2813) that would 
     amend section 2688 of title 10, United States Code, to 
     require the secretary concerned to comply with the 
     competition requirements of section 2304 of title 10, United 
     States Code, in the conveyance of utility system 
     infrastructure. The provision would also require that the 
     secretary concerned carry out a conveyance or award only if 
     he determines that the conveyance or award complies with 
     State laws, regulations, rulings, and policies governing the 
     provision of utility systems.
       The Senate amendment contained a provision (sec. 2813) that 
     would amend section 2688 of title 10, United States Code, to 
     clarify that the secretary concerned may use procedures other 
     than competitive procedures only under the circumstances 
     specified in section 2304 (c) through (f) of title 10, United 
     States Code.
       The House recedes with an amendment that would require the 
     secretary concerned to structure the solicitation process for 
     the privatization of utility systems on military 
     installations in such a manner that would allow, to the 
     maximum extent possible, all interested regulated and 
     unregulated entities the opportunity to acquire and operate 
     utility systems on military installations regardless of 
     franchise rights in the area of the installation concerned. 
     The amendment would also direct the secretary concerned to 
     require the conveyee or awardee of the utility system to 
     manage and operate the utility system consistent with federal 
     and state regulations pertaining to health safety, fire, and 
     environmental requirements.
     Permanent conveyance authority to improve property management 
         (sec. 2814)
       The Senate amendment contained a provision (sec. 1063) that 
     would extend the authority of the Administrator of the 
     General Services Administration to convey surplus property to 
     local governments for law enforcement purposes until December 
     2002.
       The House bill amendment contained no similar provision.
       The House recedes with an amendment that would make 
     permanent the authority of the Administrator of the General 
     Services Administration to convey surplus property to local 
     governments for law enforcement purposes.

            Subtitle C--Defense Base Closure and Realignment

       Scope of agreements to transfer property to redevelopment 
     authorities without consideration under the base closure laws 
     (sec. 2821)
       The Senate amendment contained a provision (sec. 2821) that 
     would amend section 2905 of the Department of Defense Base 
     Closure and Realignment Act of 1990 (part A of title XXIX of 
     Public Law 101-510) and section 204 of the Defense 
     Authorization Amendments and Base Closure Realignment Act 
     (title II of Public Law 100-526) to clarify that the seven-
     year period to account for the proceeds from

[[Page 21733]]

     any sale or lease of property received by the redevelopment 
     authority begins with the date of the initial transfer of 
     property.
       The House bill contained no similar provision.
       The House recedes.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

     Transfer of jurisdiction, Rock Island Arsenal, Illinois (sec. 
         2831)
       The House bill contained a provision (sec. 2831) that would 
     authorize the transfer of, and exchange of jurisdiction on, a 
     parcel of real property with improvements consisting of 
     approximately 23 acres at Rock Island Arsenal, Illinois, 
     between the Secretary of the Army and the Secretary of 
     Veterans' Affairs. The parcel is to be incorporated into the 
     Rock Island National Cemetery.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Army Reserve Center, Galesburg, Illinois 
         (sec. 2832)
       The House bill contained a provision (sec. 2832) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 4.65 acres in Galesburg, 
     Illinois, to Knox County, Illinois.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Charles Melvin Price Support Center, 
         Illinois (sec. 2833)
       The House bill contained a provision (sec. 2839) that would 
     authorize the Secretary of the Army to convey a parcel of 
     real property with improvements consisting of approximately 
     752 acres to the Tri-City Regional Port District of Granite 
     City, Illinois. As consideration for the conveyance, the 
     Secretary shall determine if the Port District satisfies the 
     criteria to qualify for a public benefit conveyance. If the 
     public interest is served, the Secretary may accept an amount 
     less than fair market value for a lease of the property. The 
     cost of any surveys necessary for the conveyance would be 
     borne by the Port District.
       The Senate amendment contained a similar provision (sec. 
     2831).
       The Senate recedes with an amendment that would authorize 
     the Secretary of the Army to require as a condition for the 
     conveyance that the Port District lease to the Department of 
     Defense or any other federal agency facilities on the 
     property to be conveyed. The amendment would also make 
     certain technical corrections.
     Land conveyance, Fort Riley, Kansas (sec. 2834)
       The House bill contained a provision (sec. 2841) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, approximately 70 acres of real property at the 
     Fort Riley Military Reservation, Fort Riley, Kansas, to the 
     State of Kansas. The purpose of the conveyance would be to 
     establish a State-operated veterans cemetery. All costs 
     associated with the conveyance would be borne by the State. 
     The provision would waive the screening requirement under 
     section 2696 of title 10, United States Code.
       The Senate amendment contained a similar provision (sec. 
     2836).
       The House recedes with a technical amendment.
     Land conveyance, Fort Polk, Louisiana (sec. 2835)
       The House bill contained a provision (sec. 2834) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 200 acres at Fort Polk, 
     Louisiana, to the State of Louisiana. The property is to be 
     used for the establishment of a State-run veterans' cemetery. 
     The cost of any surveys necessary for the conveyance would be 
     borne by the Commission.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Army Reserve Center, Winona, Minnesota (sec. 
         2836)
       The House bill contained a provision (sec. 2833) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements to 
     Winona State University Foundation. The property is to be 
     used for educational purposes. The cost of any surveys 
     necessary for the conveyance would be borne by the 
     Foundation.
       The Senate amendment contained an identical provision (sec. 
     2837).
       The conference agreement includes this provision.
     Land conveyance, Fort Dix, New Jersey (sec. 2837)
       The House bill contained a provision (sec. 2836) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately two acres and containing a 
     parking lot in advertently constructed on the parcel, at Fort 
     Dix, New Jersey, to Pemberton Township, New Jersey.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Nike Site 43, Elrama, Pennsylvania (sec. 
         2838)
       The House bill contained a provision (sec. 2837) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 160 acres in Elmara, 
     Pennsylvania, to the Board of Supervisors of Union Township, 
     Pennsylvania. The parcel is to be used for municipal and 
     other public purposes. The cost of any surveys necessary for 
     the conveyance would be borne by the Township.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land exchange, Army Reserve Local Training Center, 
         Chattanooga, Tennessee (sec. 2839)
       The House bill contained a provision (sec. 2840) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 15 acres at the Army Reserve 
     Local Training Center, Chattanooga, Tennessee, to the Medal 
     of Honor Museum, Inc., Chattanooga, Tennessee. The parcel is 
     to be used as a museum and for other educational purposes. 
     The cost of any surveys necessary for the conveyance would be 
     borne by the Corporation.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Land exchange, Fort Hood, Texas (sec. 2840)
       The House bill contained a provision (sec. 2838) that would 
     authorize the Secretary of the Army to convey a parcel of 
     real property with improvements, consisting of approximately 
     100 acres at Fort Hood, Texas, to the City of Copperas Cove, 
     Texas. As consideration for the conveyance, the City would 
     convey one or more parcels of real property, consisting of 
     approximately 300 acres, to the Secretary. The cost of any 
     surveys necessary for the conveyances would be borne by the 
     City.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Fort Pickett, Virginia (sec. 2841)
       The House bill contained a provision (sec. 2835) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 700 acres, at Fort Pickett, 
     Virginia, to the Commonwealth of Virginia. The property is to 
     be used for the development and operation of a public safety 
     training facility. The cost of any surveys necessary for the 
     conveyance would be borne by the Commonwealth.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Fort Lawton, Washington (sec. 2842)
       The Senate amendment contained a provision (sec. 2834) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property at Fort Lawton, 
     Washington, consisting of Area 500 and Government Way from 
     36th Avenue to Area 500 to the City of Seattle, Washington. 
     The property is to be used for inclusion in Discovery Park, 
     Seattle, Washington.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Vancouver Barracks, Washington (sec. 2843)
       The House bill contained a provision (sec. 2842) that would 
     authorize the Secretary of the Army to convey, without 
     consideration, to the City of Vancouver, Washington, two 
     parcels of real property, including any improvements, at 
     Vancouver Barracks, Washington, known as East and West 
     Barracks.
       The Senate amendment contained a provision (sec. 2835) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, to the City of Vancouver, Washington, a parcel 
     of real property, including any improvements, at Vancouver 
     Barracks, Washington, known as the West Barracks.
       The House recedes.

                       Part II--Navy Conveyances

     Modification of land conveyance, Marine Corps Air Station, El 
         Toro, California (sec. 2846)
       The House bill contained a provision (sec. 2852) that would 
     amend section 2811 of the National Defense Authorization Act 
     for Fiscal Years 1990 and 1991 (Public Law 101-189) to modify 
     the permissible uses of funds received by the Secretary of 
     the Navy.
       The Senate amendment contained a similar provision (sec. 
     2851).
       The House recedes with a technical amendment.
     Modification of authority for Oxnard Harbor District, Port 
         Hueneme, California, to use certain Navy property (sec. 
         2847)
       The House bill contained a provision (sec. 2851) that would 
     amend section 2843 of the Military Construction Authorization 
     Act for Fiscal Year 1995 (division B of Public Law 103-337) 
     to clarify the restrictions on the use of real property under 
     the jurisdiction of the Secretary of the Navy by the Oxnard 
     Harbor District, Port Hueneme, California. This provision 
     would also clarify the forms of consideration that the 
     District shall pay to the Secretary for the use of the 
     property.
       The Senate amendment contained an identical provision (sec. 
     2855).

[[Page 21734]]

       The conference agreement includes this provision.
     Transfer of jurisdiction, Marine Corps Air Station, Miramar, 
         California (sec. 2848)
       The House bill contained a provision (sec. 2853) that would 
     authorize the transfer of, and exchange of jurisdiction on, a 
     parcel of real property with improvements, consisting of 
     approximately 250 acres at Marine Corps Air Station, Miramar, 
     California, between the Secretary of the Navy and the 
     Secretary of the Interior. The parcel is to be incorporated 
     into the Vernal Pool Unit of the San Diego National Wildlife 
     Refuge.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land exchange, Marine Corps Recruit Depot, San Diego, 
         California (sec. 2849)
       The House bill contained a provision (sec. 2856) that would 
     authorize the Secretary of the Navy to convey a parcel of 
     real property with improvements, consisting of approximately 
     44.5 acres at Marine Corps Recruit Depot, San Diego, 
     California, to the San Diego Unified Port District. As 
     consideration for the conveyance, the Port District would 
     convey to the Secretary a parcel of real property contiguous 
     to the installation and would construct suitable replacement 
     facilities and necessary supporting structures, as determined 
     by the Secretary.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Lease of property, Naval Air Station, Pensacola, Florida 
         (sec. 2850)
       The House bill contained a provision (sec. 2855) that would 
     authorize the Secretary of the Navy to lease real property 
     improvements to be designed and constructed by the Naval 
     Aviation Museum Foundation at the National Museum of Naval 
     Aviation at Naval Air Station, Pensacola, Florida, to the 
     Foundation for a period up to 50 years, with an option to 
     renew for an additional 50 years. The improvements are to be 
     used for the development and operation of a National Flight 
     Academy. As a condition for the lease, the Foundation would 
     make the property available at no cost to the Secretary under 
     certain specified conditions. This section would also 
     authorize the Secretary to provide assistance to the 
     Foundation in the form services on a reimbursable basis.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Naval Reserve Center, Tampa, Florida (sec. 
         2851)
       The House bill contained a provision (sec. 2858) that would 
     authorize the Secretary of the Navy to convey a parcel of 
     real property with improvements, consisting of approximately 
     2.18 acres and comprising the Naval Reserve Center, Tampa, 
     Florida, to the Tampa Port Authority. As consideration for 
     the conveyance, the Port Authority would be required to 
     provide a replacement facility and to bear all reasonable 
     costs incurred during the relocation. The cost of any surveys 
     necessary for the conveyance would be borne by the Port 
     Authority.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of land conveyance, Defense Fuel Supply Point, 
         Casco Bay, Maine (sec. 2852)
       The Senate amendment contained a provision (sec. 2852) that 
     would amend section 2839 of the Military Construction 
     Authorization Act for Fiscal Year 1995 (division B of Public 
     Law 103-337) to authorize the Secretary of Defense to replace 
     electric utility service removed during environmental 
     remediation at Defense Fuel Supply Point, Casco Bay, Maine. 
     The provision would also authorize the Secretary, in 
     consultation with the community, to improve the utility 
     services and install telecommunications service, provided the 
     community funds the cost of the improvements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     Secretary of Defense to use funds available from Operations 
     and Maintenance, Defense-Wide to replace the electric utility 
     service.
     Land conveyance, Naval Computer and Telecommunications 
         Station, Cutler, Maine (sec. 2853)
       The Senate amendment contained a provision (sec. 2854) that 
     would authorize the Secretary of the Navy to convey, without 
     consideration, a parcel of real property with improvements 
     consisting of approximately 263 acres known as the Naval 
     Computer and Telecommunications Station, Cutler, Maine, to 
     the State of Maine, any political subdivision of the State of 
     Maine, or any tax-supported agency in the State of Maine. The 
     provision would authorize the Secretary to lease the property 
     to the recipient pending the conveyance of the deed and would 
     authorize the Secretary to require the recipient of the 
     property to reimburse the cost of any environmental 
     assessment or other studies required with respect to the 
     conveyance of the property paid by the Secretary.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Modification of land conveyance authority, former Naval 
         Training Center, Bainbridge, Cecil County, Maryland (sec. 
         2854)
       The Senate amendment contained a provision (sec. 2853) that 
     would amend section 1 of an Act to convey land in Cecil 
     County, Maryland (Public Law 99-596) to authorize the 
     Secretary of the Navy to reduce the amount of consideration 
     received from the State of Maryland by an amount equal to the 
     cost of restoring the historic buildings on the property. The 
     total amount of the reduction would not exceed $500,000.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Marine Corps Base, Camp Lejeune, North 
         Carolina (sec. 2855)
       The Senate amendment contained a provision (sec. 2856) that 
     would authorize the Secretary of the Navy to convey a parcel 
     of real property with improvements consisting of 
     approximately 50 acres known as the railroad right-of-way 
     located between Highway 24 and Highway 17 at Marine Corps 
     Base, Camp Lejeune, North Carolina, to the City of 
     Jacksonville, North Carolina. The parcel is to be used for a 
     bike/green way trail. The city would reimburse the Secretary 
     for the costs incurred in carrying out the conveyance.
       The House bill contained no similar provision.
       The House recedes with clarifying amendment.
     Land exchange, Naval Air Reserve Center, Columbus, Ohio (sec. 
         2856)
       The House bill contained a provision (sec. 2857) that would 
     authorize the Secretary of the Navy to convey a parcel of 
     real property with improvements, consisting of approximately 
     24 acres comprising the Naval Air Reserve Center at 
     Rickenbacker International Airport, Ohio, to the Rickenbacker 
     Port Authority of Columbus, Ohio. As consideration for the 
     conveyance, the Authority would convey to the Secretary a 
     parcel of real property consisting of approximately 15 acres. 
     This section would require the Secretary to utilize the 
     property conveyed by the Authority as the site for a joint 
     reserve center for units associated with the Naval Air 
     Reserve Center at the Airport and the Naval and Marine Corps 
     Reserve Center currently located in Columbus, Ohio. The cost 
     of any survey necessary for the exchange would be borne by 
     the Authority.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Naval Station, Bremerton, Washington (sec. 
         2857)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Navy to convey a parcel of 
     real property with improvements consisting of approximately 
     45.8 acres and comprising the former East Park Transient 
     Family Accommodations, Naval Station, Bremerton, Washington, 
     to the City of Bremerton, Washington. The property would be 
     used for public benefit purposes. The conveyance would be 
     without consideration except in the event the City uses the 
     property for other purposes. In such an event, the City would 
     pay fair market value, as determined by an appraisal 
     acceptable to the Secretary. The City would be required to 
     reimburse the Secretary for any administrative expenses 
     incurred in carrying out the conveyance.

                    Part III--Air Force Conveyances

     Land conveyance, Los Angeles Air Force Base, California (sec. 
         2861)
       The House bill contained a provision (sec. 2863) that would 
     authorize the Secretary of the Air Force to convey on terms 
     the Secretary considers appropriate, any or all portions of 
     four parcels of real property with improvements, totaling 
     approximately 111 acres at Los Angeles Air Force Base, 
     California. As consideration for the conveyance, the 
     recipient shall provide for the design and construction, 
     acceptable to the Secretary, of one or more facilities to 
     consolidate the mission and support functions at the 
     installation. Any such facilities would comply with specified 
     seismic and safety standards. The provision would also 
     authorize the Secretary to enter into a lease for the 
     facility for a period not to exceed 10 years in the event the 
     fair market value of a facility provided as consideration for 
     the conveyance exceeds the fair market value of the conveyed 
     property. Rental payments under the lease would be 
     established at the rate necessary for the lessor to recover, 
     by the end of the lease term, the difference between the fair 
     market value of the facility and the fair market value of the 
     conveyed property. The cost of any surveys necessary for the 
     conveyance would be borne by the recipient.
       The Senate amendment contained an identical provision (sec. 
     2862).
       The conference agreement includes this provision.
     Land conveyance, Point Arena Air Force Station, California 
         (sec. 2862)
       The House bill contained a provision (sec. 2862) that would 
     authorize the Secretary of the Air Force to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 82 acres at the Point Arena Air 
     Force Station,

[[Page 21735]]

     California, to Mendocino County, California. The property is 
     to be used for municipal and other public purposes. The cost 
     of any surveys necessary for the conveyance would be borne by 
     the County.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     condition of conveyance to authorize Mendocino County to 
     reconvey the property without consideration only for public 
     benefit purposes.
     Land conveyance, Lowry Air Force Base, Colorado (sec. 2863)
       The House bill contained a provision (sec. 2864) that would 
     authorize the Secretary of the Air Force to convey, without 
     consideration, or lease, under such terms as he considers 
     appropriate, to the Lowry Redevelopment Authority 
     approximately 23 acres at the former Lowry Air Force Base, 
     Colorado. The purpose of the conveyance would be for economic 
     development and other public purposes.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Wright Patterson Air Force Base, Ohio (sec. 
         2864)
       The House bill contained a provision (sec. 2861) that would 
     authorize the Secretary of the Air Force to convey, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 92 acres at Wright Patterson Air 
     Force Base, Ohio, to Greene County, Ohio. The property is to 
     be used for recreational purposes. The cost of any surveys 
     necessary for the conveyance would be borne by the County.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of land conveyance, Ellsworth Air Force Base, 
         South Dakota (sec. 2865)
       The Senate amendment contained a provision (sec. 2861) that 
     would amend section 2863 of the Military Construction 
     Authorization Act for Fiscal Year 1998 (division B of Public 
     Law 105-85) to modify the recipient of the property from the 
     Greater Box Elder Economic Development Corporation to the 
     West River Foundation for Economic and Community Development, 
     Sturgis, South Dakota.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Mukilteo Tank Farm, Everett, Washington 
         (sec. 2866)
       The Senate amendment contained a provision (sec. 2863) that 
     would authorize the Secretary of the Air Force to convey, 
     without consideration, a parcel of real property with 
     improvements consisting of approximately 22 acres, known as 
     the Mukilteo Tank Farm, to the Port of Everett, Washington. 
     The parcel is to be used for the development and operation of 
     a port facility. The provision would authorize the Secretary 
     to convey personal property, excess to the needs of the Air 
     Force, in the event the Secretary of Transportation 
     determines it is appropriate for the development or operation 
     of the tank farm as a port facility. The provision would also 
     authorize the Secretary to provide an interim lease to the 
     Port for the facility until transferred by deed.
       The House bill contained no similar provision.
       The House recedes.

                       Part IV--Other Conveyances

     Land conveyance, Army and Air Force Exchange Service 
         property, Farmers Branch, Texas (sec. 2871)
       The House bill contained a provision (sec. 2871) that would 
     authorize the Secretary of Defense to permit the Army and Air 
     Force Exchange Service to sell a parcel of real property with 
     improvements in Farmers Branch, Texas, for an amount equal to 
     the fair market value of the parcel. The provision would also 
     require the payment by the purchaser to be handled in the 
     manner provided by section 485 of title 40, United States 
     Code. The cost of any surveys necessary for the sale would be 
     borne by the purchaser.
       The Senate amendment contained a similar provision (sec. 
     2871).
       The Senate recedes with a technical amendment.
     Land conveyance, former National Ground Intelligence Center, 
         Charlottesville, Virginia (sec. 2872)
       The Senate amendment contained a provision (sec. 2881) that 
     would authorize the Administrator of the General Services to 
     convey, without consideration, a parcel of real property 
     formerly occupied by the National Ground Intelligence Center, 
     known as the Jefferson Street property, to the City of 
     Charlottesville, Virginia. The conveyance would be for 
     economic purposes. The provision would include a five-year 
     reversionary clause and waive certain property management 
     laws.
       The House bill contained no similar provision.
       The House recedes with an amendment that would specify the 
     conditions that would apply to the reconveyance of the 
     property by the City.

                       Subtitle E--Other Matters

     Relation of easement authority to leased parkland, Marine 
         Corps Base, Camp Pendleton, California (sec. 2881)
       The House bill contained a provision (sec. 2881) that would 
     amend section 2851 of the Military Construction Authorization 
     Act for Fiscal Year 1999 (division B of Public Law 105-261) 
     to exempt certain lands located within Marine Corps Base, 
     Camp Pendleton, California, and leased by the State of 
     California for use as a restricted access highway from the 
     requirements of section 303 of title 49 and section 138 of 
     title 23, United States Code. This section would also require 
     the Foothill/Eastern Transportation Agency to be responsible 
     for the implementation of any mitigation measures required by 
     the Secretary of Transportation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Extension of demonstration project for purchase of fire, 
         security, police, public works, and utility services from 
         local government agencies (sec. 2882)
       The House bill contained a provision (sec. 2882) that would 
     amend section 816 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337), as amended, to 
     extend the period under which a demonstration project is 
     authorized for the purchase of fire, security, police, public 
     works, and utility services from local government at 
     specified locations in Monterey, California.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     period under which the demonstration project is authorized 
     for one year.
       The conferees note the multiple extensions of this 
     authority. However, the conferees are aware that both the 
     Secretary of the Army and the Secretary of the Navy are in 
     the process of implementing a pilot program. The conferees 
     expect both services to demonstrate success prior to any 
     further extension of these authorities.
     Acceptance and use of gifts for construction of third 
         building at United States Air Force Museum, Wright-
         Patterson Air Force Base, Ohio (sec. 2883)
       The Senate amendment contained a provision (sec. 2892) that 
     would authorize the Secretary of the Air Force to accept 
     funds provided by the Air Forces Museum Foundation to support 
     the construction of a third building for the United States 
     Air Force Museum at Wright-Patterson Air Force Base, Ohio. 
     The provision would direct that any funds not needed to meet 
     current requirements would be invested in public debt 
     securities as determined by the Comptroller of the Air Force 
     Material Command. The proceeds of investments would be used 
     for construction. Upon completion of the project the escrow 
     would be closed and any funds remaining in the account could 
     be used by the Secretary of the Air Force as he or she 
     considers appropriate.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Development of Marine Corps Heritage Center at Marine Corps 
         Base, Quantico, Virginia (sec. 2884)
       The Senate amendment contained a provision (sec. 2893) that 
     would authorize the Secretary of the Navy to enter into a 
     joint venture with the Marine Corps Heritage Foundation for 
     the design and construction of the Marine Corps Heritage 
     Center. The provision would also authorize the Secretary to 
     accept, without compensation, a parcel of real property, 
     known as Locust Shade Park, from the County of Prince 
     William, Virginia. The provision would also exempt the County 
     from the requirement to provide replacement property, as 
     required under section 6 of the Land and Water Conservation 
     Fund Act of 1965. Upon completion of construction and the 
     satisfaction of any financial obligations incurred by the 
     Marine Corps Heritage Foundation, the Center would become the 
     property of the Department of the Navy. The provision would 
     further authorize the Secretary to lease the Center to the 
     Heritage Foundation for revenue generating purposes. As 
     compensation, the Foundation would pay the Secretary an 
     amount equal to the cost of operating the facility.
       The House bill contained no similar provision.
       The House recedes.
     Activities relating to the greenbelt at Fallon Naval Air 
         Station, Nevada (sec. 2885)
       The Senate amendment contained a provision (sec. 2894) that 
     would require the Secretary of the Navy, in consultation with 
     the Secretary of the Army acting through the Chief of 
     Engineers, to carry out appropriate activities after 
     examination of the potential environmental and flight safety 
     ramifications of eliminating irrigation in the greenbelt at 
     Fallon Naval Air Station, Nevada.
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct the Secretary of Navy to carry out all 
     appropriate activities consistent with current legal 
     requirements.

[[Page 21736]]


     Establishment of World War II Memorial on Guam (sec. 2886)
       The House bill contained a provision (sec. 2883) that would 
     authorize the Secretary of Defense, in consultation with the 
     American Battle Monuments Commission, to establish a suitable 
     memorial on federal property near the Fena Caves in Guam to 
     honor those civilians killed during the occupation of Guam 
     during World War II and to commemorate the liberation of Guam 
     by the Armed Forces of the United States in 1944.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees expect the Secretary to establish a memorial 
     that requires minimal maintenance.
     Naming of Army Missile Testing Range at Kwajalein Atoll as 
         the Ronald Reagan Ballistic Missile Defense Test Site at 
         Kwajalein Atoll (sec. 2887)
       The House bill contained a provision (sec. 2884) that would 
     designate the missile testing range at Kwajalein Atoll as the 
     Ronald Reagan Ballistic Defense Test Site at Kwajalein Atoll.
       The Senate amendment contained an identical provision (sec. 
     2891).
       The conference agreement includes this provision.
     Designation of Building at Fort Belvoir, Virginia, in honor 
         of Andrew T. McNamara (sec. 2888)
       The House bill contained a provision (sec. 2885) that would 
     designate a building at Fort Belvoir, Virginia, as the Andrew 
     T. McNamara Building.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Designation of Balboa Naval Hospital, San Diego, California, 
         in honor of Bob Wilson, a former member of the House of 
         Representatives (sec. 2889)
       The House bill contained a provision (sec. 2886) that would 
     redesignate the Balboa Naval Hospital, San Diego, California, 
     as the Bob Wilson Naval Hospital.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress regarding importance of expansion of 
         National Training Center, Fort Irwin, California (sec. 
         2890)
       The House bill contained a provision (sec. 2887) that would 
     express a sense of Congress that the prompt expansion of the 
     National Training Center is vital to the national security 
     interests of the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Sense of Congress regarding land transfers at Melrose Range, 
         New Mexico, and Yakima Training Center, Washington (sec. 
         2891)
       The Senate amendment contained a provision (sec. 2895) that 
     would express a sense of Congress that the land transfers at 
     Melrose Range, New Mexico, and Yakima Training Center, 
     Washington, will support military training, safety, and land 
     management concerns on the lands subject to transfer.
       The House bill contained no similar provision.
       The House recedes.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Applicability of competition policy to alternative authority 
         for acquisition and improvement of military family 
         housing
       The Senate amendment contained a provision (sec. 2805) that 
     would amend subchapter IV of chapter 169 of title 10, United 
     States Code, to require that the secretary concerned use 
     competitive procedures when exercising the alternative 
     authorities for the acquisition and improvement of military 
     housing. The secretary concerned could waive competitive 
     procedures if he determines competition would be inconsistent 
     with the public interest and notifies the Congress in writing 
     of such determination not less than 30 days before entering 
     the agreement.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note the innovative approaches undertaken by 
     the service secretaries in execution of the alternative 
     authorities for the acquisition and improvement of military 
     housing. The conferees remain strongly supportive of these 
     authorities and believe competition in the private 
     marketplace has resulted in a number of successful 
     procurements after an early period of difficulty in program 
     implementation. While supportive of a variety of innovative 
     options to construct and acquire military housing under these 
     authorities, the conferees were concerned that a methodology 
     considered by the Secretary of the Air Force in the 
     determination of the awardee of the housing privatization 
     project at Patrick Air Force Base, Florida, appeared to be 
     noncompetitive and to delegate the selection process to the 
     private sector. The conferees are aware that the Secretary 
     has subsequently directed a change in the solicitation 
     process. The conferees reiterate that the use of competitive 
     procedures should apply when exercising the alternative 
     authorities for the acquisition and improvement of military 
     housing, regardless of the process that may be used.
     Land conveyance, Colonel Harold E. Steele Army Reserve Center 
         and Maintenance Shop, Pittsburgh, Pennsylvania
       The Senate amendment contained a provision (sec. 2833) that 
     would authorize the Secretary of the Army to convey, at fair 
     market value, a parcel of real property, with improvements, 
     located at 6482 Aurelia Street in Pittsburgh, Pennsylvania, 
     and containing the Colonel Harold E. Steele Army Reserve 
     Center and Maintenance Shop to the Ellis School, Pittsburgh, 
     Pennsylvania. The cost of any survey necessary for the 
     conveyance would be borne by the Ellis School.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Secretary of the Army and the 
     Ellis School are in the process of negotiating a land 
     exchange under the authority provided by section 18233 of 
     title 10, United States Code. The conferees urge the 
     Secretary to complete the exchange as soon as practical and 
     on an equitable basis.
     Land conveyance, Lieutenant General Malcolm Hay Army Reserve 
         Center, Pittsburgh, Pennsylvania
       The Senate amendment contained a provision (sec. 2832) that 
     would authorize the Secretary of the Army to convey, at fair 
     market value, a parcel of real property, with improvements, 
     located at 950 Saw Mill Run Boulevard in Pittsburgh, 
     Pennsylvania, and containing the Lieutenant General Malcolm 
     Hay Army Reserve Center to the City of Pittsburgh, 
     Pennsylvania. The cost of any surveys necessary for the 
     conveyance would be borne by the City.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Secretary of the Army and the 
     City of Pittsburgh are in the process of negotiating a land 
     exchange under the authority provided by section 18233 of 
     title 10, United States Code. The conferees urge the 
     Secretary to complete the exchange as soon as practical and 
     on an equitable basis.
     Lease of property, Marine Corps Air Station, Miramar, 
         California
       The House bill contained a provision (sec. 2854) that would 
     authorize the Secretary of the Navy to lease, without 
     consideration, a parcel of real property with improvements, 
     consisting of approximately 44 acres and known as the Hickman 
     Field, to the City of San Diego, California, for a period not 
     to exceed five years. The lease would be subject to the 
     condition that the City maintain the property at no cost to 
     the United States, make the property available to the 
     existing tenant at no cost, and use the property solely for 
     recreational purposes. The cost of any survey necessary for 
     the lease would be borne by the City.
       The Senate amendment contained no similar provision.
       The House recedes.

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

      Title XXXI--Department of Energy National Security Programs

     Overview
       Title XXXI authorizes appropriations for the atomic energy 
     defense activities of the Department of Energy for fiscal 
     year 2001, including: the purchase, construction, and 
     acquisition of plant and capital equipment; research and 
     development; nuclear weapons; naval nuclear propulsion; 
     environmental restoration and waste management; operating 
     expenses; and other expenses necessary to carry out the 
     purposes of the Department of Energy Organization Act (Public 
     Law 95-91). The title would authorize appropriations in six 
     categories: national nuclear security administration; defense 
     environmental restoration and waste management; defense 
     environmental management privatization; other defense 
     activities; and defense nuclear waste disposal.
       The budget request included for the atomic energy defense 
     activities totaled $13.2 billion, an 8.3 percent increase 
     over the adjusted fiscal year 2000 level. Of the total amount 
     requested: $4.6 billion would be for weapons activities; $1.6 
     billion would be for other nuclear security activities; $4.6 
     billion would be for defense environmental restoration and 
     waste management activities; $1.1 billion would be for 
     defense facility closure projects; $540.1 million would be 
     for defense environmental management privatization; $555.1 
     million would be for other defense activities; $112.0 million 
     would be for defense nuclear waste disposal; $17.0 million 
     would be for a Department of Energy Employees Compensation 
     Initiative; and $140.0 million would be for the formerly 
     utilized sites remedial action program.
       The conferees agree to authorize $13.1 billion for atomic 
     energy defense activities, a decrease of $118.7 million to 
     the budget request. The conferees agree to authorize $6.4 
     billion for the national nuclear security administration 
     (NNSA), an increase of $244.7 million of the amount 
     authorized for the NNSA: $4.8 billion would be for weapons 
     activities, an increase of $246.3 million; $877.5 million 
     would be for defense nuclear nonproliferation, a decrease of 
     $28.6 million; and

[[Page 21737]]

     $694.6 million would be for naval reactors, an increase of 
     $17.0 million. The conferees agree to authorize $6.0 billion 
     for defense environmental restoration and waste management 
     activities, an increase of $1.4 billion. Of the amount 
     authorized for environmental management activities: $1.1 
     billion would be for closure projects, the amount of the 
     request; $941.7 million would be for site and project 
     completion, a decrease of $29.2 million; $3.4 billion would 
     be for post fiscal year 2006 completion, an increase of 
     $324.0 million; $246.5 million would be for technology 
     development, an increase of $50.0 million; and $355.0 million 
     would be for program direction, a decrease of $4.9 million. 
     The conferees agree to authorize $91.0 million for defense 
     environmental management privatization projects, a decrease 
     of $450.0 million. The conferees agree to authorize $523.8 
     million for other defense activities, a decrease of $31.3 
     million. Of the amount authorized for other defense 
     activities: $38.1 million would be for the Office of 
     Intelligence, the amount of the request; $45.2 million would 
     be for the Office of Counterintelligence, the amount of the 
     budget request; $284.1 million would be for the Office of 
     Security and Emergency Operations, a decrease of $56.3 
     million; $14.9 million would be for independent oversight and 
     performance assurance, the amount of the request; $134.1 
     million would be for environment, safety and health-defense, 
     an increase of $25.0 million; $24.5 million would be for the 
     Office of Worker and Community Transition, the amount of the 
     budget request; and $3.0 million would be for the Office of 
     Hearings and Appeals, the amount of the budget request. The 
     conferees agree to authorize $112.0 million for defense 
     nuclear waste disposal, the amount of the budget request. The 
     conferees agree to authorize no funding for the formerly 
     utilized sites remedial action program, a decrease of $140.0 
     million, and agree to authorize no funding for the Department 
     of Energy Employees Compensation Initiative, a decrease of 
     $17.0 million.
       The following table summarizes the budget request and the 
     conferees recommendations:

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                       ITEMS OF SPECIAL INTEREST

     Report on authorities and limitations in general recurring 
         provisions
       The conferees direct the Secretary of Energy, in 
     consultation with the Administrator for Nuclear Security and 
     the Assistant Secretary for Environmental Management, to 
     submit to the Committees on Armed Services of the Senate and 
     House of Representatives, not later than January 15, 2001, a 
     report on the effect, advantages, and disadvantages of the 
     authorities granted and limitations imposed in sections 3121 
     through 3129 of this Act.


                     LEGISLATIVE PROVISIONS ADOPTED

         Subtitle A--National Security Programs Authorizations

     National Nuclear Security Administration (sec. 3101)
       The budget request included $6.2 billion for activities of 
     the Department of Energy (DOE) National Nuclear Security 
     Administration (NNSA).
       The House bill contained a provision (sec. 3101) that would 
     authorize $6.3 billion for activities of the NNSA, an 
     increase of $91.8 million.
       The Senate amendment contained a similar provision (sec. 
     3101) that would authorize $6.3 billion for activities of the 
     NNSA, an increase of $124.7 million.
       The conferees agree to authorize $6.4 billion for 
     activities of the NNSA, an increase of $244.7 million.
     Weapons activities
       The budget request included $4.6 billion for weapons 
     activities, including: $836.6 million for directed stockpile 
     work; $1.0 billion for campaigns; $2.0 billion for readiness 
     in technical base and facilities; $115.7 million for secure 
     transportation asset; $414.2 million for construction; and 
     $224.1 million for program direction.
       The House bill would authorize $4.7 billion for weapons 
     activities, an increase of $83.8 million. The amount 
     authorized is for the following activities: $856.6 million 
     for directed stockpile work; $2.1 billion for campaigns; $1.4 
     billion for readiness in technical base and facilities; 
     $115.7 million for secure transportation asset; $159.8 
     million for construction; and $216.9 million for program 
     direction.
       The Senate amendment would authorize $4.7 billion for 
     weapons activities, an increase of $153.8 million. The amount 
     authorized is for the following activities: $842.6 million 
     for directed stockpile work; $1.5 billion for campaigns; $1.5 
     billion for readiness in technical base and facilities; 
     $115.7 million for secure transportation asset; $588.2 
     million for construction; and $221.6 million for program 
     direction.
       The conferees agree to authorize $4.8 billion for weapons 
     activities, an increase of $246.3 million. The amount 
     authorized is for the following activities: $862.6 million 
     for directed stockpile work, an increase of $26.0 million; 
     $2.1 billion for campaigns, an increase of $749.8 million; 
     $1.6 billion for readiness in technical base and facilities, 
     a decrease of $524.5 million; $115.7 million for secure 
     transportation asset, the amount of the budget request; and 
     $219.1 million for program direction, a decrease of $5.0 
     million.
       Directed stockpile work
       In the directed stockpile work account, the conferees agree 
     to authorize: an increase of $6.0 million for a cooperative 
     research effort with the Department of Defense regarding 
     defeating hard and deeply buried targets; an increase of $5.0 
     million for life extension and repairs for the B-61 warhead 
     and other directed stockpile work at the Kansas City Plant; 
     an increase of $4.0 million for life extension and repairs 
     for the B-61 and W-76 warheads and other directed stockpile 
     work at the Y-12 Plant; an increase of $5.0 million for 
     radiographic inspection of nuclear weapons components and 
     assemblies, vacuum chamber inspection activities, testing in 
     the accelerated aging unit, and other stockpile evaluation 
     activities at the Pantex plant; and an increase of $6.0 
     million for quality evaluation and certification activities 
     and joint test assemblies at the Y-12 plant.
       Campaigns
       In the campaigns account, the conferees agree to authorize: 
     an increase of $15.0 million for the pit manufacturing 
     readiness campaign to begin conceptual design activities for 
     a pit production facility adequate to meet future national 
     security needs; an increase of $477.1 million for the defense 
     computing and modeling campaign to reflect the consolidation 
     of all defense computing and modeling activities into a 
     single program line item; an increase of $144.7 million to 
     reflect the consolidation of all inertial confinement fusion 
     activities into a single program line item; an increase of 
     $10.0 million for joint Department of Defense-NNSA high 
     energy laser research; an increase of $135.0 million for the 
     National Ignition Facility construction, which includes a 
     transfer of $40.0 million from the inertial confinement 
     fusion ignition and high yield campaign operations and 
     maintenance account; an increase of $3.0 million to complete 
     the American Textiles Partnership (AMTEX) project; an 
     increase of $25.0 million for continued preliminary design 
     and engineering development activities in the accelerator 
     production of tritium project (98-D-126); a decrease of $20.0 
     million to the defense computing and modeling campaign to 
     reflect delays in acquisition of the 100-trillion-operations-
     per-second computer platform and to slow the rate of growth 
     in the Visual Interactive Environment Weapon Simulation 
     (VIEWS) and university partnership programs; and the budget 
     request of $32.1 million for the University of Rochester's 
     Laboratory for Laser Energetics.
       Readiness in technical base and facilities
       In the readiness in technical base and facilities account, 
     the conferees agree to authorize: an increase of $56.3 
     million to reflect the movement of the nuclear emergency 
     search team and accident response group from the other 
     defense activities emergency management account to the 
     weapons activities account; an increase of $20.0 million for 
     the Kansas City Plant to continue advanced manufacturing, 
     modernization, infrastructure enhancement, and skills 
     retention efforts; an increase of $13.0 million for the 
     Pantex Plant for infrastructure improvements; an increase of 
     $8.0 million for the Y-12 Plant for infrastructure 
     improvements; a decrease of $144.7 million to reflect the 
     transfer of inertial confinement fusion activities to the 
     inertial confinement fusion ignition and high yield campaign 
     account; and a decrease of $477.1 million to reflect the 
     transfer of computing and modeling activities to the defense 
     computing and modeling campaign account.
       Of the funds available for directed stockpile work, the 
     conferees agree to authorize $5.0 million for a cooperative 
     program with the Defense Threat Reduction Agency to re-
     establish a vigorous nuclear weapon effects test capability. 
     The program shall emphasize the need to invest in all 
     elements of nuclear weapon effects technologies, including 
     basic phenomenology, analysis and modeling, radiation effects 
     simulation, and hardening technologies.
       The conferees recommend that the fiscal year 2002 budget 
     request include a separate program element for the operation 
     of each NNSA facility, rather than one consolidated facility 
     operations program element.
       Construction
       In the construction account, the conferees agree to 
     authorize no funding. The conferees transferred all 
     construction projects to the campaigns and readiness in 
     technical base and facilities accounts. The conferees direct 
     the Administrator to submit an NNSA budget request in fiscal 
     year 2002 that reflects the alignment of construction 
     projects with associated program elements.
       Program direction
       In the program direction account, the conferees agree to 
     authorize a decrease of $5.0 million.
       The conferees direct that the proposed decrease be achieved 
     through the reorganization and realignment of headquarters 
     and field office roles and responsibilities. The conferees 
     believe that the performance of the Office of Defense 
     Programs will be improved by eliminating duplicative efforts 
     and by streamlining management control of DOE weapons 
     activities.
       The conferees continue to believe that the Office of 
     Defense Programs is overstaffed. The conferees note that 
     several independent assessments of the organizational 
     structure of the Office of Defense Programs, dating back as 
     far as calendar year 1997, have also concluded that the 
     Office of Defense Programs would benefit from a realignment 
     of headquarters and field organization personnel. The 
     conferees expect the Department to utilize the authority to 
     make the voluntary separation incentive payments authorized 
     in the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65) to fully implement the realignment 
     recommendations described in the calendar year 1997 report by 
     the Institute for Defense Analysis. The conferees encourage 
     the Administrator to make effective use of this authority to 
     establish up to 300 excepted service positions in the 
     Administration provided in section 3241 of the National 
     Defense Authorization Act for Fiscal Year 2000 (P.L. 106-65). 
     The conferees believe that this authority will be a valuable 
     tool to provide NNSA with personnel competent to manage 
     technically complex projects.
       Budget structure for Office of the Deputy Administrator for 
           Defense Programs
       The conferees commend the Office of Defense Programs for 
     establishing a more detailed and transparent budget 
     structure. The conferees continue to believe that this new 
     budget structure will greatly enhance the effectiveness of 
     these programs and instill a higher degree of budgetary 
     discipline in the Office of Defense Programs. The conferees 
     further believe that the new budget structure will also 
     assist Congress in assessing the degree of integration among 
     varied experiments, simulation, research, and weapons 
     assessments activities carried out at DOE weapons 
     laboratories and production plants. The conferees direct that 
     future budget requests for weapons activities clearly 
     identify the funding required for each campaign and each 
     program under the directed stockpile work and the readiness 
     in technical base and facilities accounts.
       National Ignition Facility
       The conferees remain disappointed at the management, 
     schedule, and budget difficulties experienced by the NIF 
     program, but are

[[Page 21751]]

     convinced of the significance of the project in sustaining 
     the U.S. nuclear stockpile. The conferees believe that recent 
     improvements in program management justify the increase for 
     NIF construction.
       Nuclear Emergency Search Team
       The conferees note that the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106) requires that 
     the Nuclear Emergency Search Team (NEST) remain a program 
     function within the Office of Military Applications under the 
     Office of Defense Programs. The conferees have transferred 
     NEST funding from the Department of Energy Other Defense 
     Activities account to the NNSA to reflect this requirement.
       Accelerated Strategic Computing Initiative
       The conferees note that the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65) expressed 
     concern about the rate of growth in the Advanced Strategic 
     Computing Initiative (ASCI) and Strategic Computing accounts. 
     The conferees believe that the rate of growth for the NNSA 
     defense computing and modeling campaign remains very high and 
     that such funding increases have not been adequately 
     justified. The conferees encourage the Administrator for 
     Nuclear Security to properly align resources for ASCI and 
     other computing and modeling activities with other 
     experimental tools required to sustain the U.S. nuclear 
     stockpile.
       Plutonium pit production
       The conferees are aware that the November 8, 1999, report 
     of the Panel to Assess the Reliability, Safety, and Security 
     of the U.S. Nuclear Stockpile stated that its ``paramount 
     concern'' with the DOE stockpile stewardship program ``. . . 
     is the need to begin work now on an adequate plutonium pit 
     production manufacturing capability.'' The conferees endorse 
     this finding and direct the Secretary of Energy to begin 
     conceptual design activities for a pit production facility 
     with a capacity adequate to meet future national security 
     needs immediately.
       Accelerator Production of Tritium
       The conferees are concerned about proposals to fund 
     continued APT design activities in the Office of Nuclear 
     Energy, Science and Technology. In order to maintain clear 
     lines of authority, the conferees believe that programs with 
     direct relevance to the core missions of NNSA should be 
     managed and funded by NNSA.
     Defense Nuclear Nonproliferation
       The budget request included $906.0 million for defense 
     nuclear nonproliferation and fissile materials disposition, 
     including: $233.0 million for nonproliferation verification 
     research and development; $408.1 million for arms control; 
     $213.5 million for fissile materials disposition; and $51.5 
     million for program direction.
       The House bill would authorize $914.0 million for defense 
     nuclear nonproliferation, an increase of $8.0 million. The 
     amount authorized is for the following activities: $233.0 
     million for nonproliferation verification research and 
     development; $408.1 million for arms control; $221.5 million 
     for fissile materials disposition; and $51.5 million for 
     program direction.
       The Senate amendment would authorize $859.5 million for 
     defense nuclear nonproliferation, a decrease of $46.5 
     million. The amount authorized is for the following 
     activities: $263.0 million for nonproliferation verification 
     research and development; $320.6 million for arms control; 
     $224.5 million for fissile materials disposition; and $51.5 
     million for program direction.
       The conferees agree to authorize $877.5 million for defense 
     nuclear nonproliferation, a decrease of $28.6 million. The 
     amount authorized is for the following activities: $253.0 
     million for nonproliferation verification research and 
     development, an increase of $20.0 million; $320.6 million for 
     arms control, a decrease of $87.5 million; $252.4 million for 
     fissile materials disposition, an increase of $29.0 million; 
     and $51.5 million for program direction, the amount of the 
     budget request.
       The conferees note that the Department of Energy Defense 
     Nuclear Nonproliferation Program was formerly known as the 
     nonproliferation and national security account during fiscal 
     year 2000. Because DOE did not request these funds under 
     separate budget accounts, as required by section 3251 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65), the conferees have renamed and 
     consolidated these activities into a single account. The 
     conferees further note that the request included separate 
     program direction accounts for the Office of Nonproliferation 
     and Office of Fissile Materials Disposition. The conferees 
     established a single defense nuclear nonproliferation 
     account.
       Nonproliferation verification research and development
       In the nonproliferation verification research and 
     development account the conferees agree to authorize an 
     increase of $20.0 million for detecting and deterring weapons 
     of mass destruction proliferation, monitoring nuclear 
     explosions, detecting and responding to chemical and 
     biological weapons attacks, and conducting evaluations of the 
     technical capabilities of other geographic areas that pose a 
     threat to U.S. National Security because of the potential for 
     development and delivery of weapons of mass destruction.
       Arms control
       In the arms control account the conferees agree to 
     authorize an increase of $12.5 million for the Nuclear Cities 
     Initiative. The conferees would authorize no funding for the 
     long-term nonproliferation program for Russia.
       Fissile materials control and disposition
       In the fissile materials control and disposition account, 
     the conferees agree to authorize an increase of $11.0 million 
     to accelerate design activities for the mixed oxide fuel 
     fabrication facility.
     Naval Reactors
       The budget request included $677.6 million for naval 
     reactors.
       The House bill would authorize $677.6 million for naval 
     reactors, the amount of the request.
       The Senate amendment would authorize $695.0 million for 
     naval reactors, an increase of $17.4 million.
       The conferees agree to authorize $694.6 million for naval 
     reactors, an increase of $17.0 million for expedited 
     decommissioning and decontamination activities at surplus 
     facilities.
     Office of the Administrator
       The conferees agree to authorize $10.0 million for the 
     Office of the Administrator, an increase of $10.0 million. 
     The conferees note that the budget request did not include 
     funding for the Office of the Administrator. The conferees 
     direct that future budget requests include a separate budget 
     line for the administrative activities of the Office of the 
     Administrator.
     Safeguards and security activities
       The conferees note that DOE has proposed a budget amendment 
     that would consolidate all safeguards and security funds into 
     a single program to be managed by the Office of Security and 
     Emergency Operations. The conferees do not support this 
     proposal. The conferees direct that all funds authorized for 
     safeguards and security activities pursuant to this section 
     be managed exclusively by NNSA employees or NNSA contractor 
     employees. Consistent with the National Nuclear Security 
     Administration Act (Title 32 of Public Law 106-65; 113 Stat. 
     957; 50 U.S.C. 2402) the Administrator for Nuclear Security 
     is not authorized to transfer or delegate responsibility for 
     any safeguards and security activities of the NNSA to any 
     employee or office outside the NNSA.
     Defense environmental restoration and waste management (sec. 
         3102)
       The budget request included $4.6 billion for environmental 
     management activities of the Department of Energy (DOE).
       The House bill contained a provision (sec. 3102) that would 
     authorize $4.6 billion for environmental management 
     activities, an increase of $40.0 million. The amount 
     authorized would be for the following activities: $1.0 
     billion for site and project completion, an increase of $40.0 
     million; $3.1 billion for post 2006 completion, the amount of 
     the budget request; $196.5 million for science and technology 
     development, the amount of the budget request; and $359.9 
     million for program direction, the amount of the budget 
     request.
       The Senate amendment contained a similar provision (sec. 
     3102) that would authorize $5.6 billion for environmental 
     management activities, including closure activities, a 
     decrease of $56.9 million. The amount authorized would be for 
     the following activities: $1.1 billion for closure projects, 
     the amount of the budget request; $930.9 million for site and 
     project completion, a decrease of $40.0 million; $3.2 billion 
     for post 2006 completion, an increase of $70.0 million; 
     $246.5 million for technology development, an increase of 
     $50.0 million; and $354.9 million for program direction, a 
     decrease of $5.0 million. The Senate provision would also 
     authorize a decrease of $132.0 million to account for 
     available uncosted, unobligated prior year funds and funds to 
     be deobligated from completed, prior year construction 
     projects.
       The conferees agree to authorize $6.0 billion for 
     environmental management activities, an increase of $1.4 
     billion. The amount authorized is for the following 
     activities: $1.1 billion for closure projects, the amount of 
     the budget request; $941.7 million for site and project 
     completion, a decrease of $29.2 million; $3.4 billion for 
     post 2006 completion, an increase of $324.0 million; $246.5 
     million for technology development, an increase of $50.0 
     million; and $355.0 million for program direction, a decrease 
     of $4.9 million.
       Post 2006 completion
       For post 2006 completion activities, the conferees agree to 
     authorize: an increase of $332.0 million to establish a new 
     construction line item for the Tank Waste Remediation System 
     Project; an increase of $10.0 million for the Columbia River 
     Corridor Initiative at the Hanford Site to continue reactor 
     decontamination and decommissioning activities; and a 
     decrease of $18.0 million to reflect the movement of the 
     Environmental Systems Research and Analysis Program into the 
     Science and Technology Development Account. The conferees 
     recommend full funding for the F-canyon and H-canyon 
     materials processing facilities.
       The conferees agreed to establish a separate sub-account 
     within the post 2006 completion account for the activities of 
     Office of

[[Page 21752]]

     River Protection. The conferees have consolidated all post 
     2006 completion construction projects that support operation 
     of the Hanford site tank farm into this sub-account, 
     including a new construction line item for the Tank Waste 
     Remediation System Project.
       Site and project completion
       For site and project completion activities, the conferees 
     agree to authorize: an increase of $11.0 million to 
     accelerate compliance with 94-1 requirements at the Savannah 
     River Site, including pre-operational activities to support 
     planned stabilization campaigns, acceleration of the 
     Americium/Curium stabilization project, and continued 
     operation of the HB-Line Phase I to process plutonium 
     residues; a decrease of $27.9 million to reflect the transfer 
     of the highly enriched (HEU) uranium blend-down project (01-
     D-407) to the National Nuclear Security Administration Office 
     of Fissile Materials Disposition; a decrease of $10.0 million 
     in operation and maintenance funds to reflect transfer of the 
     HEU blend-down project; and a decrease of $2.3 million to 
     reflect the movement of the Environmental Systems Research 
     and Analysis Program into the Science and Technology 
     Development account.
       Science and technology development
       For science and technology development activities, the 
     conferees agree to authorize: an increase of $50.0 million 
     for applied research and development activities. The amount 
     authorized reflects the consolidation of the Environmental 
     Systems Research and Analysis Program into the Science and 
     Technology Development Account.
       The conferees note that the cleanup and waste management 
     efforts of the Department will continue well into the 21st 
     Century with costs anticipated to exceed $150.0 billion and 
     much of the cleanup work scheduled to continue beyond fiscal 
     year 2030. DOE must make meaningful investments in innovative 
     science and technology in order to reduce costs, reduce 
     safety and health risks, and develop solutions to problems 
     for which there are currently no available or effective 
     technologies.
       Columbia River Corridor Initiative
       The conferees support the Columbia River Corridor 
     Initiative to accelerate cleanup along the Hanford Reach of 
     the Columbia River. The National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65) directed the 
     Assistant Secretary of Energy for Environmental Management to 
     establish a schedule by which the 100 square miles of the 
     Hanford site that adjoin the Columbia River could be cleaned 
     up on an accelerated schedule and proposed for removal from 
     the National Priorities List. The conferees note that this 
     schedule has not been submitted to Congress. The conferees 
     expect that this report will be provided not later than 
     November 1, 2000.
       Report on pilot program to use prior year unobligated 
           balances to accelerate cleanup of the Rocky Flats 
           Environmental Technology Site
       The conferees encourage the Secretary of Energy to use the 
     authority provided by section 3176 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) to 
     accelerate closure of the Rocky Flats Environmental 
     Technology Site.
       Safeguards and Security Activities
       The conferees direct that all funds authorized for 
     safeguards and security activities pursuant to this section 
     be managed exclusively by Office of Environmental Management 
     (EM) employees or EM contractor employees, and that such 
     activities not be transferred or delegated to any office 
     outside EM.
     Other defense activities (sec. 3103)
       The budget request included $555.1 million for other 
     defense activities.
       The House bill contained a provision (sec. 3103) that would 
     authorize $557.1 million for other defense activities, an 
     increase of $2.0 million.
       The Senate amendment contained a similar provision (sec. 
     3103) that would authorize $466.3 million for other defense 
     activities, a decrease of $88.8 million.
       The conferees agree to authorize $523.8 million for other 
     defense activities, a decrease of $31.3 million. The amount 
     authorized would be for the following activities: $38.1 
     million for the Office of Intelligence, the amount of the 
     budget request; $45.2 million for the Office of 
     Counterintelligence, the amount of the budget request; $284.1 
     million for the Office of Security and Emergency Operations, 
     a decrease of $56.3 million; $14.9 million for independent 
     oversight and performance assurance, the amount of the budget 
     request; $134.1 million for environment, safety and health-
     defense, an increase of $25.0 million; $24.5 million for the 
     Office of Worker and Community Transition, the amount of the 
     budget request; and $3.0 million for the Office of Hearings 
     and Appeals, the amount of the budget request.
       Office of Security and Emergency Operations
       The conferees agree to authorize a decrease of $56.3 
     million to the Office of Security and Emergency Operations 
     emergency management program to reflect movement of the 
     nuclear emergency search team to the weapons activities 
     account authorized in section 3101(a)(1) of this Act.
       Environment, safety and health-defense
       The conferees agree to authorize an increase of $25.0 
     million for environment, safety and health-defense to carry 
     out the administrative activities associated with the 
     establishment of an occupational illness compensation program 
     for Department of Energy (DOE) and DOE contractor employees 
     at the Department's defense nuclear facilities.
       The conferees note that DOE requested authorization to 
     begin making compensation payments in fiscal year 2001 with 
     Atomic Energy Defense funding. The conferees further note 
     that the Secretary of Energy has not submitted a 
     comprehensive legislative proposal to Congress to establish 
     such an employee compensation program. The conferees agree 
     not to authorize any such payments from Atomic Energy Defense 
     funding.
       Office of worker and community transition
       Of the funds available for worker and community transition 
     activities, the conferees agree to authorize $5.0 million to 
     support cleanup and infrastructure development at the Allied 
     General Nuclear Site immediately adjacent to the DOE Savannah 
     River Site.
       The conferees endorse DOE's decision to remove the 
     requirement that management and operating contracts at DOE 
     sites include provisions for conducting economic development 
     activities in the communities surrounding such sites. The 
     conferees encourage DOE contractors to continue to be good 
     corporate citizens by supporting community-based initiatives. 
     The conferees believe, however, that economic development 
     activities of DOE contractors should not be used as a measure 
     of performance or as a selection criteria for the award of 
     contracts.
     Defense environmental management privatization (sec. 3104)
       The budget request included $540.1 million for defense 
     environmental management privatization projects and the use 
     of $25.1 million from prior year, uncosted balances.
       The House bill contained a provision (sec. 3105) that would 
     authorize $284.1 million for defense environmental management 
     privatization projects, a decrease of $256.0 million. Of the 
     amount authorized: $194.0 million would be for the Tank Waste 
     Remediation System Project, phase I (Richland); $65.0 million 
     would be for the Advanced Mixed Waste Treatment project 
     (Idaho); and $25.1 million would be for spent nuclear fuel 
     dry storage (Idaho). The provision would authorize a decrease 
     of $25.1 million to reflect the use of prior year, uncosted 
     balances in the defense environmental management 
     privatization account.
       The Senate amendment contained a similar provision (sec. 
     3104) that would authorize $390.1 million for defense 
     environmental management privatization projects and would 
     authorize a decrease of $150.0 million to the Tank Waste 
     Remediation System (TWRS) Project. The provision would also 
     authorize a decrease of $25.1 million to reflect the use of 
     prior year, uncosted balances in the defense environmental 
     management privatization account.
       The conferees agree to authorize $90.1 million for defense 
     environmental management privatization projects, including 
     $65.0 million for the Advanced Mixed Waste Treatment project 
     (Idaho) and $25.1 million for spent nuclear fuel dry storage 
     (Idaho). The conferees agree to authorize a decrease of $90.1 
     million to reflect the use of prior year, uncosted balances 
     in the defense environmental management privatization 
     account.
       The conferees are deeply concerned with the status of the 
     TWRS project. The conferees note that the cost estimate for 
     the construction portion of this project increased from $3.2 
     billion to $6.4 billion, translating into a total estimated 
     project cost increase from $6.9 billion to over $15.2 billion 
     under the privatization approach. The conferees further 
     understand that these cost estimates were based on a project 
     design that is only 13 to 15 percent complete and, therefore, 
     subject to additional change.
       The conferees fully support the TWRS project and believe 
     that the technological approach proposed is viable and 
     realistic. The conferees also believe it is vitally important 
     that this project proceed to full scale construction provided 
     the Secretary of Energy has established a high degree of 
     confidence in the overall project cost and other facility 
     requirements. As a result, the conferees have moved the TWRS 
     project to the post 2006 completion account and recommend no 
     privatization funds for the project.
       In order to make the funds for termination liability 
     available for other purposes, the conferees have included a 
     separate provision in this Act that would prohibit the use of 
     appropriated funds to establish a reserve for contract 
     termination costs for the TWRS project.
     Defense nuclear waste disposal (sec. 3105)
       The budget request included $112.0 million for the 
     Department of Energy (DOE) fiscal year 2001 defense 
     contribution to the Defense Nuclear Waste Fund.
       The House bill contained a provision (sec. 3106) that would 
     authorize $112.0 million for the DOE fiscal year 2001 defense 
     contribution to the Defense Nuclear Waste Fund.
       The Senate amendment contained an identical provision (sec. 
     3106).

[[Page 21753]]

       The conference agreement includes this provision.

                Subtitle B--Recurring General Provisions

     Reprogramming (sec. 3121)
       The House bill contained a provision (sec. 3121) that would 
     prohibit the reprogramming of funds in excess of 110 percent 
     of the amount authorized for the program, or in excess of 
     $1.0 million above the amount authorized for the program, 
     until the Secretary of Energy submits a report to the 
     congressional defense committees and a period of 45 days has 
     elapsed after the date on which the report is received.
       The Senate bill contained a similar provision (sec. 3121) 
     that would prohibit the reprogramming of funds in excess of 
     110 percent of the amount authorized for the program, or in 
     excess of $1.0 million above the amount authorized for the 
     program, until the Secretary of Energy submits a report to 
     the congressional defense committees and a period of 30 days 
     has elapsed after the date on which the report is received.
       The House recedes.
     Limits on general plant projects (sec. 3122)
       The House bill contained a provision (sec. 3122) that would 
     authorize the Secretary of Energy to carry out any 
     construction project authorized under general plant projects 
     if the total estimated cost does not exceed $5.0 million. The 
     provision would require the Secretary to submit a report to 
     the congressional defense committees detailing the reasons 
     for the cost variation if the cost of the project is revised 
     to exceed $5.0 million.
       The Senate amendment contained an identical provision (sec. 
     3122).
       The conference agreement includes this provision.
     Limits on construction projects (sec. 3123)
       The House bill contained a provision (sec. 3123) that would 
     permit any construction project to be initiated and continued 
     only if the estimated cost for the project does not exceed 
     125 percent of the higher of the amount authorized for the 
     project or the most recent total estimated cost presented to 
     the Congress as justification for such project. The provision 
     would prohibit the Secretary of Energy from exceeding such 
     limits until 30 legislative days after the Secretary submits 
     to the congressional defense committees a detailed report 
     setting forth the reasons for the increase. This provision 
     would also specify that the 125 percent limitation would not 
     apply to projects estimated to cost under $5.0 million.
       The Senate amendment contained an identical provision (sec. 
     3123).
       The conference agreement includes this provision.
     Fund transfer authority (sec. 3124)
       The House bill contained a provision (sec. 3124) that would 
     permit funds authorized by this Act to be transferred to 
     other agencies of the government for performance of work for 
     which the funds were authorized and appropriated. The 
     provision would permit the merger of such transferred funds 
     with the authorized funds of the agency to which they are 
     transferred. The provision would also limit, to not more than 
     five percent of the account, the amount of funds authorized 
     by this Act that may be transferred between authorization 
     accounts within the Department of Energy.
       The Senate amendment contained an identical provision (sec. 
     3124).
       The conference agreement includes this provision.
     Authority for conceptual and construction design (sec. 3125)
       The House bill contained a provision (sec. 3125) that would 
     limit the authority of the Secretary of Energy to request 
     construction funding until the Secretary has completed a 
     conceptual design. This limitation would apply to 
     construction projects with a total estimated cost greater 
     than $5.0 million. If the estimated cost to prepare the 
     construction design exceeds $600,000, the provision would 
     require the Secretary to obtain a specific authorization to 
     obligate such funds. If the estimated cost to prepare the 
     conceptual design exceeds $3.0 million, the provision would 
     require the Secretary to request funds for the conceptual 
     design before requesting funds for construction. The 
     provision would also provide an exception to these 
     requirements in the case of an emergency.
       The Senate amendment contained an identical provision (sec. 
     3125).
       The conference agreement includes this provision.
     Authority for emergency planning, design, and construction 
         activities (sec. 3126)
       The House bill contained a provision (sec. 3126) that would 
     permit the Secretary of Energy to perform planning and design 
     with any funds available to the Department of Energy pursuant 
     to this title, including those funds authorized for advance 
     planning and construction design, whenever the Secretary 
     determines that the design must proceed expeditiously to 
     protect the public health and safety, to meet the needs of 
     national defense, or to protect property.
       The Senate amendment contained an identical provision (sec. 
     3126).
       The conference agreement includes this provision.
     Funds available for all national security programs of the 
         Department of Energy (sec. 3127)
       The Senate amendment contained a provision (sec. 3127) that 
     would authorize amounts for management and support activities 
     and for general plant projects to be made available for use 
     in connection with all national security programs of the 
     Department of Energy.
       The House bill contained no similar provision.
       The House recedes.
     Availability of funds (sec. 3128)
       The House bill contained a provision (sec. 3127) that would 
     authorize funds for operation and maintenance or for plant 
     projects and capital equipment within the Department of 
     Energy (DOE) national security programs until the later of 
     the following dates: October 1, 2003; or the date of 
     enactment of the Act that would authorize funds for such 
     activities in fiscal year 2004. The provision would also 
     authorize funds for program direction within DOE national 
     security programs until the later of the following dates: 
     October 1, 2001; or the date of enactment of the Act that 
     would authorize funds for program direction in fiscal year 
     2002.
       The Senate amendment contained a similar provision (sec. 
     3128) that would authorize funds for DOE national security 
     programs to remain available until expended, except for 
     program direction funds which would remain available until 
     the end of fiscal year 2003.
       The House recedes with an amendment that would authorize 
     funds for program direction until the end of fiscal year 
     2002.
       The conferees note that section 3152 of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-301) required that the National Nuclear Security 
     Administration submit a budget request that would include 
     funding authorization for a limited number of years. 
     Additional funding limitations for future budget requests are 
     addressed elsewhere in this conference agreement.
     Transfers of defense environmental management funds (sec. 
         3129)
       The House bill contained a provision (sec. 3128) that would 
     provide the manager of each field office of the Department of 
     Energy with limited authority to transfer up to $5.0 million 
     in fiscal year 2001 defense environmental management funds 
     from one program or project under the jurisdiction of the 
     office to another such program or project, including site 
     project and completion and post fiscal year 2006 completion 
     funds, once in a fiscal year.
       The Senate bill contained a similar provision (sec. 3129).
       The Senate recedes.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     Funding for termination costs of River Protection Project, 
         Richland, Washington (sec. 3131)
       The House bill contained a provision (sec. 3131) that would 
     prohibit the Secretary of Energy from using appropriated 
     funds to establish a reserve for the payment of termination 
     costs of contracts relating to the tank waste remediation 
     system at Richland, Washington, and would identify 
     alternatives to pay for these costs should the need arise.
       The Senate bill contained no similar provision.
       The Senate recedes with a technical amendment.
     Enhanced cooperation between National Nuclear Security 
         Administration and Ballistic Missile Defense Organization 
         (sec. 3132)
       The House bill contained a provision (sec. 3132) that would 
     establish the basis for expanded cooperation between the 
     Ballistic Missile Defense Organization and the National 
     Nuclear Security Administration.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Reprogramming of funds available for infrastructure upgrades 
         or maintenance in certain accounts of the National 
         Nuclear Security Administration (sec. 3133)
       The House bill contained a provision (sec. 3134) that would 
     prohibit the use of funds authorized to be appropriated for 
     the National Nuclear Security Administration for 
     infrastructure upgrades or maintenance in the readiness of 
     the technical base and facilities or construction accounts to 
     be used for any other purpose.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Adjustment of composite theoretical performance levels for 
         post-shipment verification reports on advanced 
         supercomputers sales to certain foreign nations (sec. 
         3134)
       The House bill contained a provision (sec. 3136) that would 
     conform the reporting levels to those established under 
     section 1211 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85) as they apply to the 
     Department of Energy report on sales by participants in the 
     Accelerated Strategic Computing Initiative.
       The Senate amendment contained an identical provision.
       The conference agreement includes this provision.

[[Page 21754]]


     Modification of counterintelligence polygraph program (sec. 
         3135)
       The Senate amendment contained a provision (sec. 3154) that 
     would amend section 3154 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65) by 
     authorizing the Secretary of Energy to waive the requirement 
     that certain Department of Energy (DOE) employees and DOE 
     contractor employees successfully pass a counterintelligence 
     polygraph exam before such employees can be granted access to 
     high-risk programs. The provision would allow the Secretary 
     to waive this requirement for any individual for a period not 
     to exceed 120 days, if the Secretary determines that: (1) 
     such a waiver is in the national security interests of the 
     United States; (2) the covered employee has been granted a 
     security clearance; and (3) the covered employee signs a 
     written acknowledgment that the employment is conditioned 
     upon successfully passing a counterintelligence polygraph 
     exam within 120 days of the date of signing such an 
     acknowledgment. The provision would also allow the Secretary 
     to waive this requirement for any individual who the 
     Secretary determines: (1) has completed successfully a full-
     scope counterintelligence polygraph exam while employed with 
     another federal agency; or (2) should not be examined because 
     of treatment for a medical or psychological condition.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary to waive polygraph requirements on a one-time 
     basis for any individual employee and would prohibit the 
     Secretary from using the need to maintain the scientific 
     viability of a DOE laboratory as a criteria for approving any 
     such waivers. The amendment would further require that 
     employees holding a sensitive compartmented information 
     clearance be subject to these requirements.
     Employee incentives for employees at closure project 
         facilities (sec. 3136)
       The House bill contained a provision (sec. 3137) that would 
     provide incentives for retention and separation of federal 
     employees at closure facilities of the Department of Energy 
     (DOE) established pursuant to section 3143 of the National 
     Defense Authorization Act for Fiscal Year 1997 (Public Law 
     104-106). Such incentives would include the accumulation of 
     annual leave up to 720 hours, lump sum retention allowances 
     of up to 30 percent of an employee's salary, freeze the cost 
     of and continue health benefits for employees who are either 
     voluntarily or involuntarily separated, and provide authority 
     for voluntary reductions in force. The authority would 
     terminate at a DOE site when closure is completed.
       The Senate amendment contained a similar provision (sec. 
     3155) that would provide similar incentives, including lump 
     sum retention allowances of up to 40 percent of an employee's 
     salary, authority to pay voluntary separation incentive 
     payments (also referred to as buyouts), and authority to make 
     temporary assignments of certain DOE employees to private 
     sector organizations, on a non-reimbursable basis. The 
     authority would terminate on September 23, 2001.
       The House recedes with an amendment that would provide the 
     following incentives: (1) the accumulation of annual leave up 
     to 720 hours; (2) lump sum retention allowances of up to 30 
     percent of an employee's salary; (3) freeze the cost of and 
     continue health benefits for employees who are either 
     voluntarily or involuntarily separated; and (4) provide 
     authority for voluntary reductions in force. The authority 
     would terminate on March 31, 2007.
     Continuation of processing, treatment, and disposition of 
         legacy nuclear materials (sec. 3137)
       The Senate amendment contained a provision (sec. 3151) that 
     would require the Secretary of Energy to maintain a high 
     state of readiness at the F-canyon and H-canyon facilities at 
     the Savannah River site. The provision would further prohibit 
     the use of funds to begin decommissioning activities at the 
     F-canyon facility, including studies and planning, until the 
     Defense Nuclear Facilities Safety Board and the Secretary of 
     Energy submit a report certifying that all materials 
     currently present in the facility are safely stabilized and 
     the requirements for the facility to meet future fissile 
     materials disposition needs can be fully met utilizing the H-
     canyon facility. The provision would require the Secretary to 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives a plan describing how all long-
     term chemical separations activities would be transferred 
     from the F-canyon facility to the H-canyon facility beginning 
     in fiscal year 2002. The report would be submitted not later 
     than February 15, 2001.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary to identify those fissile materials disposition 
     needs that will require an alternative capability, including 
     a description of the alternative capability and a 
     justification of why any such requirements cannot be carried 
     out at the H-canyon facility.
     Limitation on use of certain funds pending certifications of 
         compliance with Formerly Utilized Sites Remedial Action 
         Program funding prohibition (sec. 3138)
       The Senate amendment contained a provision (sec. 3152) that 
     would prohibit the use of any funds authorized or otherwise 
     made available to the Department of Energy by this or any 
     other Act for travel by the Secretary of Energy or any 
     employees of the Office of Secretary of Energy after March 1, 
     2001, unless or until the Secretary certifies to the 
     congressional defense committees that no Atomic Energy 
     Defense funds will be obligated or expended for treatment, 
     storage, or disposal activities at sites designated as 
     Formerly Utilized Site Remedial Action Program (FUSRAP) 
     sites.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     use of travel funds by the Secretary of Energy, any employee 
     of the Office of the Secretary, or the Chief of Engineers of 
     the Army Corps of Engineers after November 1, 2001, unless or 
     until the Secretary and Chief each certifies to the 
     congressional defense committees that no Atomic Energy 
     Defense funds will be obligated or expended for treatment, 
     storage, or disposal activities at FUSRAP sites.
       The conferees note that the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65) prohibits any 
     Atomic Energy Defense funds authorized or otherwise made 
     available to the Department of Energy for any fiscal year 
     after fiscal year 1999 from being obligated or expended to 
     conduct treatment, storage, or disposal activities at sites 
     designated as FUSRAP sites. The conferees continue to support 
     the cleanup of FUSRAP sites in an expeditious, cost-effective 
     manner. The conferees, however, do not support the use of 
     scarce Atomic Energy Defense funds for this purpose.
     Conceptual design for Subsurface Geosciences Laboratory at 
         Idaho National Engineering and Environmental Laboratory, 
         Idaho Falls, Idaho (sec. 3139)
       The Senate amendment contained a provision (sec. 3156) that 
     would authorize the Secretary of Energy to obligate up to 
     $400,000 to carry out conceptual design activities for a new 
     Subsurface Geoscience Facility Laboratory at the Idaho 
     National Engineering and Environmental Laboratory (INEEL), 
     Idaho Falls, Idaho. The provision would prohibit obligation 
     of the funds until 60 days after the Secretary submits a 
     report to the congressional defense committees identifying: 
     (1) the need to conduct mesoscale experiments to meet long-
     term Department of Energy (DOE) cleanup requirements; (2) the 
     possibility of utilizing existing structures to house such a 
     new facility; (3) the estimated construction costs of the 
     facility; (4) the estimated annual operating costs of the 
     facility; (5) how the facility would utilize the capabilities 
     of other DOE and non-DOE sites; and (6) an analysis of costs, 
     savings, and benefits that are unique to INEEL.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Report on National Ignition Facility, Lawrence Livermore 
         National Laboratory, Livermore, California (sec. 3140)
       The Senate amendment contained a provision (sec. 3158) that 
     would require the Secretary of Energy to submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report setting forth a revised cost and 
     schedule baseline for completion of the National Ignition 
     Facility (NIF) in Livermore, California. The provision would 
     prohibit the obligation of more than 50 percent of the funds 
     available for NIF until the report is submitted. The 
     provision would further require that the Comptroller General 
     report not later than March 31, 2001, to the Committees on 
     Armed Services of the Senate and House of Representatives on: 
     (1) the relationship of NIF to other elements of the 
     Department of Energy nuclear weapons program; (2) the 
     potential impacts if completion of the NIF were to be 
     delayed; (3) a detailed description and analysis of the funds 
     spent on NIF to date; and (4) an assessment of whether 
     Lawrence Livermore National Laboratory has established a 
     revised baseline for NIF that has achievable goals and 
     milestones.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     River Protection Project, Richland, Washington (sec. 3141)
       The House bill contained a provision (sec. 3135) that would 
     rename the tank waste remediation project at the Department 
     of Energy's (DOE) Hanford Site as the River Protection 
     Project.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Assistant Secretary of Energy for Environmental Management to 
     delegate, in writing, responsibility for management of the 
     Office of River Protection (ORP) to the manager of that 
     office. The delegation would include authority for 
     contracting, financial management, safety, and general 
     program management that are

[[Page 21755]]

     equivalent to those vested in other operations office 
     managers. The ORP manager would, to the maximum extent 
     possible, be required to coordinate all ORP activities with 
     the manager of the DOE Richland Operations Office.
       The conferees note that section 3139 of the National 
     Defense Authorization Act for Fiscal Year 1999 (Public Law 
     105-261) made the manager of the Office of River Protection 
     responsible for managing all aspects of this critical cleanup 
     program. The conferees expect the Assistant Secretary to 
     comply with the requirement for a written delegation of 
     authority as expeditiously as possible. The conferees further 
     expect that the Assistant Secretary will be provided with 
     sufficient personnel and other resources to manage the tank 
     waste program in an efficient and streamlined manner.
     Report on tank waste remediation system, Hanford Reservation, 
         Richland, Washington (sec. 3142)
       The Senate amendment contained a provision (sec. 3157) that 
     would authorize an increase of $150.0 million to carry out an 
     accelerated cleanup and waste management program at the 
     Hanford Site in Richland, Washington. The provision would 
     also require the Secretary of Energy to submit a report to 
     Congress not later than December 15, 2000, on the Tank Waste 
     Remediation System (TWRS) project, including: (1) a proposed 
     plan for processing and stabilizing all nuclear wastes 
     located in the Hanford Tank Farm; (2) a proposed schedule for 
     carrying out the plan; (3) the total estimated cost of 
     carrying out the plan; and (4) a description of any 
     alternative options to the proposed plan and description of 
     the costs and benefits of each such option.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     report to include the following additional items: (1) a 
     description of the volumes and characteristics of those 
     wastes or materials that are not intended to be treated 
     during Phase 1(B) of the project and (2) a plan for 
     developing, demonstrating, and implementing advanced 
     vitrification system technologies that might be required to 
     safely treat and stabilize any out of specification wastes or 
     materials, such as polychlorinated biphenyls, that cannot be 
     treated and stabilized with the technologies proposed to be 
     utilized during Phase 1(B) of the project.

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

     Term of office of person first appointed as Under Secretary 
         for Nuclear Security of the Department of Energy (sec. 
         3151)
       The Senate amendment contained a provision (sec. 3131) that 
     would establish a fixed term of office for the first 
     individual appointed as the Under Secretary for Nuclear 
     Security at the Department of Energy. The individual would be 
     subject to removal by the President only for inefficiency, 
     neglect of duty, or malfeasance in office.
       The House bill contained no similar provision.
       The House recedes.
     Membership of Under Secretary for Nuclear Security on the 
         Joint Nuclear Weapons Council (sec. 3152)
       The Senate amendment contained a provision (sec. 3132) that 
     would designate the Under Secretary for Nuclear Security of 
     the Department of Energy (DOE) to serve as the DOE 
     representative on the Joint Nuclear Weapons Council.
       The House bill contained no similar provision.
       The House recedes.
     Organization plan for field offices of the National Nuclear 
         Security Administration (sec. 3153)
       The Senate amendment contained a provision (sec. 3135) that 
     would require the Under Secretary for Nuclear Security of the 
     Department of Energy to develop an appropriate staffing and 
     organization plan to carry out the activities of the National 
     Nuclear Security Administration (NNSA). The plan would 
     identify: (1) the roles and responsibilities to be assigned 
     to each NNSA field organizational unit and the NNSA 
     headquarters organization; (2) any modifications, downsizing, 
     eliminations, or consolidations of NNSA headquarters and 
     field organization units; (3) any modifications to 
     headquarters and field office staffing levels that the Under 
     Secretary determines are necessary to implement the plan; and 
     (4) a schedule by which the plan could be implemented. The 
     plan would be submitted to the congressional defense 
     committees not later than March 1, 2001.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Under Secretary to submit the plan not later than May 1, 
     2001.
     Required contents of future-years nuclear security program 
         (sec. 3154)
       The House bill contained a provision (sec. 3133) that would 
     make certain findings that the budget submission for fiscal 
     year 2001 to Congress does not comply with requirements 
     imposed by sections 3251 and 3253 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65); 
     would establish requirements for the content of the future 
     years nuclear security program to be submitted annually by 
     the Administrator of the National Nuclear Security 
     Administration (NNSA) pursuant to section 3253; and would 
     prohibit the obligation of more than 50 percent of funds 
     authorized for appropriation for program direction within 
     NNSA until 30 days after the Administrator provides Congress 
     with the required future years nuclear security program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would remove the 
     restriction on use of program direction funds.
     Future-years nuclear security program for fiscal year 2001 
         (sec. 3155)
       The Senate amendment contained a provision (sec. 3136) that 
     would require the Under Secretary for Nuclear Security to 
     submit a future-years nuclear security program plan that 
     would contain the estimated expenditures necessary to support 
     the programs, projects, and activities of the National 
     Nuclear Security Administration (NNSA). The report would be 
     submitted to Congress not later than November 1, 2000.
       The House contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees note that the Secretary of Energy was 
     required by section 3135 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201) 
     and section 3253 of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65) to provide a five-
     year budget plan, and that the Secretary failed to comply 
     with such requirements. The conferees further note that the 
     Secretary of Defense provides such future year budget data to 
     Congress concurrent with the submission of the budget 
     request. The conferees believe that such a plan will provide 
     an important planning tool for the Secretary, the 
     Administrator, and the Congress, and would serve as a 
     baseline upon which the congressional defense committees can 
     better evaluate succeeding budget submissions.
       The conferees are aware that DOE submitted a future years 
     nuclear security program plan to the Office of Management and 
     Budget as part of its fiscal year 2001 budget request. The 
     conferees believe that this plan will meet the requirements 
     of this provision.
     Engineering and manufacturing research, development, and 
         demonstration by plant managers of certain nuclear 
         weapons production plants (sec. 3156)
       The Senate amendment contained a provision (sec. 3175) that 
     would authorize the Secretary of Energy to establish a Plant 
     Manager Research, Development, and Demonstration (PMRDD) 
     program to support innovative engineering and systems 
     activities at the nuclear weapons production plants. The 
     program would be limited to the Y-12 plant in Oak Ridge, 
     Tennessee, the Kansas City plant in Kansas City, Missouri, 
     and the Pantex plant in Amarillo, Texas. The program would be 
     authorized at a level not to exceed two percent of the funds 
     available for weapons activities at such plants.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Administrator of the National Nuclear Security Administration 
     to authorize the head of each nuclear weapons production 
     plant to establish a PMRDD program and would allow the 
     Administrator to authorize the head of each production plant 
     to obligate up to $3.0 million per year from those funds 
     available in the Advanced Design and Production Technologies 
     Campaign in fiscal year 2001 to carry out the program.
       The conferees anticipate that this program would be used to 
     explore viable tools and techniques for understanding and 
     replacing sunset technologies and for developing more agile 
     manufacturing techniques. The conferees believe the creation 
     of this program will support recommendations for addressing 
     workforce problems at the production plants identified by the 
     Commission on Retaining Nuclear Weapons Expertise (also known 
     as the Chiles Commission) by assisting with recruiting and 
     retention of outstanding engineers and craftsmen.
     Prohibition on individuals engaging in concurrent service or 
         duties within National Nuclear Security Administration 
         and outside that Administration but within Department of 
         Energy (sec. 3157)
       The Senate amendment contained a provision (sec. 3134) that 
     would prohibit the use of any funds authorized to be 
     appropriated or otherwise made available to the Department of 
     Energy (DOE) after fiscal year 2000 to pay the basic pay of 
     an officer or employee of DOE who: (1) serves concurrently in 
     a position in the National Nuclear Security Administration 
     (NNSA) and a position outside the NNSA; or (2) performs 
     concurrently the duties of a position in the NNSA and the 
     duties of a position outside the NNSA.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     practice of dual office holding.
       The conferees recognize that NNSA may benefit from the 
     unique skills of personnel in other federal agencies, other 
     DOE entities

[[Page 21756]]

     not within NNSA, and private entities. The conferees believe 
     that the assignment of detailees with such expertise to the 
     NNSA on an occasional and temporary basis is acceptable, 
     provided that the specific arrangements for detailee 
     assignment to NNSA are consistent with the terms of this 
     provision.
     Annual plan for obligation of funds of the National Nuclear 
         Security Administration (sec. 3158)
       The conference agreement includes a provision that would 
     require the Administrator of the National Nuclear Security 
     Administration (NNSA) to submit a plan for obligation of 
     amounts requested for each program element and construction 
     line item expressed as percentage of the requested amounts in 
     the annual budget and the two succeeding fiscal years; and an 
     assessment as to whether the NNSA had met the goals of prior 
     year obligation plans and any plan for corrective actions 
     that might be needed. The amendment would also require an 
     assessment by the Comptroller General concerning the adequacy 
     of the NNSA planning, programming, and budgeting process.
       The conferees are disappointed that the Department of 
     Energy failed to comply with section 3152 of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65), which required the NNSA to forward a budget with 
     funding available for a limited number of years.
     Authority to reorganize National Nuclear Security 
         Administration (sec. 3159)
       The Senate amendment contained a provision (sec. 3133) that 
     would limit the authority of the Secretary of Energy to 
     reorganize, abolish, alter, consolidate, or discontinue any 
     organizational unit or component of the National Nuclear 
     Security Administration (NNSA).
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Administrator to reorganize, abolish, alter, consolidate, 
     or discontinue any organizational unit or component of the 
     NNSA.

       Subtitle E--National Laboratories Partnership Improvement

     Technology Infrastructure Pilot Program (sec. 3161)
       The Senate amendment contained a provision (section 3163) 
     that would authorize the Secretary of Energy to obligate up 
     to $10.0 million per year for a three-year period to 
     establish the Technology Infrastructure Pilot Program. The 
     pilot program would promote establishment of technology 
     partnership clusters in the vicinity of certain DOE 
     laboratories and plants. The provision would authorize each 
     such DOE site to expend available funds to carry out 
     cooperative activities with local businesses, universities, 
     research organizations, or state, local, and tribal 
     governments.
       The House had no similar provision.
       The House recedes with an amendment that would authorize 
     the Administrator of the National Nuclear Security 
     Administration (NNSA) to obligate up to $5.0 million during 
     fiscal years 2001 and 2002 to carry out the pilot program.
       The conferees are concerned that technology partnerships 
     within the Office of Defense Programs have not been well 
     managed in the past nor have they resulted in significant 
     return on investment. Nevertheless, the conferees recognize 
     that public-private collaborations may, if properly focused 
     and managed, result in the development of commercially viable 
     technologies that support the core nuclear weapons and 
     nuclear nonproliferation missions of the NNSA. The Technology 
     Infrastructure Pilot Program will allow the NNSA laboratories 
     and facilities to explore new ways to collaborate with 
     private entities in research, training, and shared facilities 
     to enhance these core NNSA missions. The conferees note that 
     technology networks of this kind have proven successful in 
     the private sector. The conferees further note that the 
     provision would not preclude the possibility of subsequent 
     authorizations in appropriate circumstances.
     Report on small business participation in National Nuclear 
         Security Administration activities (sec. 3162)
       The Senate amendment contained a provision (sec. 3164) that 
     would require each laboratory to establish a small business 
     advocacy and assistance program to increase the participation 
     of small businesses in all contracting aspects of the 
     laboratory. The provision would also require each laboratory 
     to establish a small business assistance program to help 
     local small businesses obtain more subcontracts at the 
     laboratory and improve the commercial value of their products 
     and services.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Administrator of the National Nuclear Security Administration 
     (NNSA) to report to the congressional defense committees not 
     later than February 15, 2001, regarding the effectiveness of 
     NNSA small business programs, recommendations on how to 
     improve them, and any legislative changes required to 
     implement such improvements.
     Study and report related to improving mission effectiveness, 
         partnerships, and technology transfer at national 
         security laboratories and nuclear weapons production 
         facilities (sec. 3163)
       The Senate amendment contained a provision (sec. 3166) that 
     would require the Secretary to direct the Laboratory 
     Operations Board to study and to report on the possible 
     benefits of and need for policies and procedures to 
     facilitate the transfer of scientific, technical, and 
     professional personnel among national security laboratories 
     and facilities. The Board would be required to report on the 
     possible benefits of and need for changes in the following: 
     (1) the indemnification requirements for patents or other 
     intellectual property licensed from a laboratory or facility; 
     (2) the royalty and fee schedules and types of compensation 
     that may be used for patents or other intellectual property 
     licensed to a small business concern from a National 
     Laboratory or facility; (3) the licensing procedures and 
     requirements for patents and other intellectual property, 
     including preferences for small businesses started by former 
     laboratory or facility employees who invented the patented 
     technology or other intellectual property; (4) the 
     infringement and protections available to small businesses 
     that have received patents or other intellectual property 
     from a laboratory or facility; (5) the advance funding 
     requirements for a small business that funds a project at a 
     laboratory or facility through a Funds-In-Agreement; (6) the 
     intellectual property rights allocated to a business that 
     funds a project at a laboratory or facility through a Funds-
     In-Agreement; and (7) the policies on royalty payments to 
     inventors employed by a contractor-operated laboratory or 
     facility, including those for inventions made under a Funds-
     In-Agreement.
       The Board would be required to report to the Secretary not 
     later than one year after the date of enactment of this Act. 
     The Secretary would be required to transmit the report to 
     Congress not later than one month after receiving the report 
     of the board concurrent with the submission of the report of 
     the Secretary shall provide recommendations regarding 
     appropriate action and legislative proposals.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Energy Advisory Board to prepare and to submit 
     the report related to the national security laboratories and 
     facilities. The amendment would also require the report to 
     include the advantages and disadvantages of providing the 
     Administrator of the National Nuclear Security Administration 
     with special contracting authority, such as ``other 
     transactions'' authority.
     Report on effectiveness of National Nuclear Security 
         Administration technology development partnerships with 
         non-Federal entities (sec. 3164)
       The Senate amendment contained a provision (sec. 3137) that 
     would establish funding goals for cooperative research and 
     development agreements (CRADAs) of the National Nuclear 
     Security Administration (NNSA) and require that such CRADAs 
     be consistent with and support the missions of the National 
     Nuclear Security Administration. The provision would 
     establish a goal of obligating 0.5 percent of NNSA funds 
     available during fiscal years 2001 and 2002 for CRADAs, or 
     similar cooperative, cost-shared research partnerships with 
     non-federal organizations. The provision would further 
     require the Administrator of the NNSA to submit a report to 
     the congressional defense committees setting forth a 
     recommendation as to the appropriate future percentage goals. 
     The provision would require that the Administrator report to 
     Congress annually on whether the goals of this provision have 
     been met in the successive fiscal year. The provision would 
     require the Administrator to describe the actions necessary 
     to achieve such goals and provide any legislative changes 
     recommended to achieve them, if the goals have not been met.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Administrator to submit to Congress a report on the 
     efficiency and effectiveness with which the NNSA and its 
     laboratories and facilities carry out cooperative technology 
     development activities with non-federal entities, including 
     appropriate funding levels for such cooperative activities.
     Definitions (sec. 3165)
       The Senate amendment contained a provision (sec. 3162) that 
     would define the terms referenced in subtitle E of this Act.
       The House bill contained no similar provision.
       The House recedes with an amendment that would define the 
     terms ``national security laboratory'' and ``nuclear weapons 
     production facility'' as they are defined in section 3281 of 
     the National Nuclear Security Administration Act (Public Law 
     106-65).

    Subtitle F--Matters Relating to Defense Nuclear Nonproliferation

     Matters Relating to Defense Nuclear Nonproliferation (secs. 
         3171-3175)
       The Senate amendment contained a provision (sec. 3153) that 
     would: (1) require an annual report and limit funding for the 
     program until an access policy is established

[[Page 21757]]

     and implemented by the Secretary for the Nuclear Materials 
     Protection, Control, and Accounting Program; (2) establish 
     programmatic management criteria and conditions on funds for 
     the Nuclear Cities Initiative (NCI); and (3) require that 
     funds for the International Nuclear Safety Program be used 
     only for reactor safety upgrades and training for reactor 
     operators participating in the program. The Senate amendment 
     also contained provisions (sec. 3191-3195) that would expand 
     the NCI by authorizing $30.0 million for fiscal year 2001, 
     require an agreement that provides that Russia will close 
     some of its facilities engaged in nuclear weapons assembly 
     and disassembly work within five years in exchange for 
     participating in the NCI, establish additional programmatic 
     criteria, authorize the Secretary of Energy to encourage 
     careers in nonproliferation, and express the sense of 
     Congress on the need for establishing a national coordinator 
     for nonproliferation.
       The House bill contained no similar provision.
       The House recedes with a technical amendment regarding the 
     International Nuclear Safety Program. The amendment would 
     also: (1) Authorize $30.0 million for fiscal year 2001 for 
     the NCI; (2) prohibit the obligation or expenditure of funds 
     for more than three nuclear cities in Russia and two serial 
     production facilities until 30 days after the Secretary 
     submits to the Committees on Armed Services of the Senate and 
     House of Representatives a copy of a written agreement that 
     provides that Russia will close some of its facilities 
     engaged in nuclear weapons assembly and disassembly work; and 
     (3) limit not more than $8.7 million from being expended or 
     obligated until the Secretary establishes and implements 
     project review procedures for projects under the NCI and 
     submits to the Armed Services Committees of the Senate and 
     the House of Representatives a report on the project review 
     procedures established and implemented. The amendment would 
     also prohibit amounts in excess of $17.5 million from being 
     obligated or expended until 30 days after the Secretary 
     submits a report to the Armed Services Committees of the 
     Senate and the House of Representatives that includes: (1) a 
     copy of a written agreement that provides that Russia will 
     close some of its facilities engaged in nuclear weapons 
     assembly and disassembly work within five years in exchange 
     for participation in the NCI; (2) a certification by the 
     Secretary that project review procedures have been 
     established and are being implemented and that any 
     scientific, technical, or commercial projects carried out 
     under the NCI will meet specific nonproliferation objectives 
     and be commercially viable in three years; (3) a description 
     of the project review procedures process; (4) a list of the 
     projects that have undergone review; and (5) detailed 
     descriptions for each NCI project regarding project 
     management costs, budgets, commercial viability, income 
     generation, and the number of Russian jobs created. The 
     amendment would also urge the President to discuss with the 
     Russian Federation the development of a plan for 
     restructuring the Russian nuclear weapons complex, and would 
     authorize $2.0 million for the Secretary to encourage Russian 
     and U.S. students to pursue nonproliferation careers. The 
     funds for nonproliferation careers may only be obligated and 
     expended after conditions are met for fiscal year 2001 funds 
     in excess of $17.5 million, and after the Administrator for 
     Nuclear Security provides prior notification to Congress that 
     these funds will be expended. Finally, the House amendment 
     expresses the sense of Congress on the need for effective and 
     clear coordination of U.S.-Russian nonproliferation programs.
       The conferees believe that the Department should support 
     projects that have the greatest potential for 
     commercialization in the near term through the rapid creation 
     of Russian jobs in the closed cities.
       In addition, the conferees agree to include a provision 
     that would direct the Secretary to submit to the Armed 
     Services Committees of the Senate and the House of 
     Representatives not later than March 1, 2001, a report on the 
     Department's recent and planned efforts to ensure adequate 
     oversight and accountability of its nonproliferation programs 
     in Russia, and the potential costs and impacts of on-the-
     ground monitoring. The conferees further direct the 
     Comptroller General to conduct a review of the information 
     contained in the Secretary's report to assess the information 
     and provide the Congress with a report of the Comptroller 
     General's assessment not later than April 15, 2001. The 
     conferees are interested in ensuring that the Department of 
     Energy has adequate assurance that federal funds expended in 
     Russia for nonproliferation programs are being expended for 
     the purposes for which they are intended, as exemplified in 
     the legislative provision on access for the Materials 
     Protection, Control, and Accounting program.

                       Subtitle G--Other Matters

     Extension of authority for appointment of certain scientific, 
         engineering, and technical personnel (sec. 3191)
       The Senate amendment contained a provision (sec. 3171) that 
     would extend the authority of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337) 
     related to excepted service hiring for up to 200 positions.
       The House bill contained no similar provision.
       The House recedes.
     Biennial report containing update on nuclear test readiness 
         postures (sec. 3192)
       The Senate amendment contained a provision (sec. 3172) that 
     would require the Secretary of Energy to update the nuclear 
     test readiness report required by section 3152 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106) on a biennial basis. The Secretary would 
     be required to submit the first updated report to the 
     congressional defense committees not later than February 15, 
     2001. The reports would include a listing and description of 
     those workforce skills and capabilities that are essential to 
     carry out the missions of the site, a listing and description 
     of the required infrastructure and physical plant that are 
     essential to carry out the missions of the site, and an 
     assessment of the readiness status of the workforce and 
     infrastructure. The report would be submitted in unclassified 
     form, but could include a classified annex.
       The House bill contained no similar provision.
       The House recedes.
     Frequency of reports on inadvertent releases of restricted 
         data and formerly restricted data (sec. 3193)
       The Senate amendment contained a provision (sec. 3173) that 
     would amend section 3161 of the Strom Thurmond National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65) to require the Secretary of Energy to report 
     inadvertent releases of restricted data and formerly 
     restricted data on a quarterly basis rather than 30 days 
     after any such release.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     make the quarterly report mandatory, regardless of whether 
     there is a reportable incident during the period by the 
     report.
     Form of certifications regarding the safety or reliability of 
         the nuclear weapons stockpile (sec. 3194)
       The Senate amendment contained a provision (sec. 3174) that 
     would require the annual certification to the President 
     regarding the safety and reliability of the U.S. nuclear 
     stockpile be submitted in classified form.
       The House bill contained no similar provision.
       The House recedes.
     Authority to provide certificate of commendation to 
         Department of Energy and contractor employees for 
         exemplary service in stockpile stewardship and security 
         (sec. 3195)
       The Senate amendment contained a provision (sec. 3177) that 
     would authorize the Secretary of Energy to award a 
     certificate of commendation for meritorious service to 
     current and former employees of the Department of Energy 
     (DOE), and current and former contractor employees who worked 
     in programs related to stewardship of the Nation's nuclear 
     weapons stockpile.
       The House bill contained no similar provision.
       The House recedes.
       The conferees note that the dedication, intellect, and hard 
     work of the scientists and craftsmen employed at DOE 
     laboratories and manufacturing plants are essential to 
     maintaining a credible U.S. nuclear deterrent. The conferees 
     further note that former scientists and craftsmen at DOE 
     laboratories, plants, and materials production sites were 
     instrumental in ensuring the security of the United States 
     during the Cold War. The conferees included this provision to 
     recognize the contributions of former employees at these 
     facilities and to highlight the Nation's continued reliance 
     on the capabilities of the skilled workers at DOE weapons 
     laboratories and manufacturing plants. The conferees commend 
     these individuals for their continued service to the Nation 
     and for the peace that they have helped to preserve.
     Cooperative research and development agreements for 
         government-owned, contractor-operated laboratories (sec. 
         3196)
       The Senate amendment contained a provision (sec. 3176) that 
     would amend the Stevenson-Wydler Technology Innovation Act of 
     1980 (15 U.S.C. 3710) to streamline the approval process for 
     cooperative research and development agreements (CRADA) at 
     government-owned, contractor-operated (GOCO) facilities by 
     authorizing federal agencies to substitute an annual 
     strategic plan for individual joint work statements. The 
     provision would, for a period of five years after the date of 
     enactment of this Act, authorize the waiver of any license 
     retained by the government if the retention of that license 
     would inhibit commercialization of an invention that would 
     otherwise serve an important federal mission. The provision 
     would further streamline the CRADA process for GOCO 
     facilities by authorizing federal agencies to permit routine 
     CRADAs to be negotiated and signed by GOCO employees.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     applicability of the license waiver provision to the 
     activities of

[[Page 21758]]

     the National Nuclear Security Administration laboratories, 
     and would require a report on all license waivers.
     Office of Arctic Energy (sec. 3197)
       The Senate amendment contained a provision (sec. 3169) that 
     would establish the Office of Arctic Energy Research.
       The House bill contained no similar provision.
       The House recedes with an amendment that would provide the 
     Secretary of Energy with discretionary authority to establish 
     the Office of Arctic Energy Research.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Conformance with National Nuclear Security Administration 
         organizational structure
       The Senate amendment contained a provision (sec. 3168) that 
     would require the Secretary of Energy to carry out the 
     requirements of Subtitle E of this Act, consistent with title 
     32 of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65).
       The House bill contained no similar provision.
       The Senate recedes.
     Construction of National Nuclear Security Administration 
         Operations Office Complex
       The Senate amendment contained a provision (sec. 3138) that 
     would authorize the Administrator of the National Nuclear 
     Security Administration (NNSA) to begin design and 
     construction of a new operations office complex at the 
     Department of Energy Albuquerque Operations Office located at 
     Kirtland Air Force Base, New Mexico. The authority would have 
     to be carried out in accordance with a Department of Energy 
     feasibility study that would examine the design and 
     construction of the office complex using one or more energy 
     savings performance contracts, consistent with Title VIII of 
     the National Energy Policy Conservation Act (42 U.S.C. 8287 
     et seq.). Construction costs would be derived from energy 
     savings and ancillary operation and maintenance savings that 
     result from replacing the current office complex with the 
     proposed complex.
       The Administrator could not begin conceptual design and 
     construction until the later of: (1) 30 days after the date 
     on which the Administrator submits to Congress the NNSA field 
     organization plan required by a provision included elsewhere 
     in this conference agreement; or (2) the date on which the 
     Administrator certifies to Congress that the design and 
     construction of the complex is consistent with the NNSA field 
     organization plan and the feasibility study.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Administrator may seek future 
     congressional authorization for design and construction of a 
     new office complex at the Albuquerque Operations Office.
     Energy employees compensation initiative
       The budget request included $17.0 million for establishment 
     of an energy employees compensation fund.
       The Senate amendment contained a provision (sec. 3105) that 
     would authorize $17.0 million for the establishment of an 
     energy employees compensation fund to compensate Department 
     of Energy (DOE) contractor employees that have proven health 
     or other medical problems that are directly related to their 
     employment at a DOE nuclear facility.
       The House bill contained no similar provision.
       The Senate recedes.
     Environmental management closure projects
       The House bill contained a provision (sec. 3104) that would 
     authorize $1.0 billion for environmental management closure 
     projects, the amount of the request.
       The Senate amendment contained no similar provision.
       The House recedes.
     Other transactions
       The Senate amendment contained a provision (sec. 3167) that 
     would authorize the Secretary of Energy to permit the award 
     contracts on a non-competitive basis, commonly known as 
     ``other transactions'' authority.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that a report on ``other transactions'' 
     authority is required elsewhere in this conference agreement.
     Sense of the Congress regarding compensation and health care 
         for personnel of the Department of Energy and its 
         contractors and vendors who have sustained beryllium, 
         silica, and radiation-related injury
       The House bill contained a provision (sec. 3138) that would 
     express the sense of the Congress that there is sufficient 
     information available to Congress to warrant enactment of 
     legislation regrading personnel of the Department of Energy 
     and its contractors and vendors who have sustained beryllium, 
     silica, and radiation-related injury.
       The Senate amendment contained no similar provision.
       The House recedes.
     Short title
       The Senate amendment contained a provision (sec. 3161) that 
     would cite the subtitle E of the National Defense 
     Authorization Act for Fiscal Year 2001 as the National 
     Laboratories Partnership Improvement Act of 1999.
       The House bill contained no similar provision.
       The Senate recedes.
     Technology partnerships ombudsman
       The Senate amendment contained a provision (sec. 3165) that 
     would require each laboratory to establish a technology 
     partnership ombudsman to resolve complaints from outside 
     organizations regarding patents, technology licenses, and 
     other issues.
       The House bill contained no similar provision.
       The Senate recedes.

          Title XXXII--Defense Nuclear Facilities Safety Board


                     LEGISLATIVE PROVISIONS ADOPTED

     Defense Nuclear Facilities Safety Board (sec. 3201)
       The budget request included $18.5 million for the Defense 
     Nuclear Facilities Safety Board (DNFSB).
       The House bill contained a provision (sec. 3201) that would 
     authorize $17.0 million for the DNFSB, a decrease of $1.5 
     million.
       The Senate amendment contained a similar provision (sec. 
     3201) that would authorize for the DNFSB the budget request.
       The House recedes.
       The conferees note that the National Nuclear Security 
     Administration Act (Public Law 106-65), which established the 
     National Nuclear Security Administration (NNSA) within the 
     Department of Energy (DOE), did not repeal or amend the 
     requirements of the Atomic Energy Act of 1954 (42 U.S.C. 
     2011). The conferees further note that the independent 
     oversight authority of the DNFSB related to health and safety 
     matters at DOE and NNSA defense nuclear facilities was not 
     changed by the National Nuclear Security Administration Act.
       The conferees note that the DNFSB is an independent 
     technical body that continually assesses safety issues at DOE 
     facilities and submits formal safety findings and 
     recommendations to the Secretary of Energy, the Assistant 
     Secretary of Energy for Environment, Safety and Health, and 
     Congress. As such, the conferees believe that the DNFSB is a 
     cost-effective means of ensuring continuous improvement of 
     the safety culture at DOE nuclear facilities.

                Title XXXIII--National Defense Stockpile


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorized uses of stockpile funds (sec. 3301)
       The Senate amendment contained a provision (sec. 3401) that 
     would authorize the stockpile manager to obligate $75.0 
     million from the National Defense Stockpile Transfer Fund 
     during fiscal year 2001 for the authorized uses of funds 
     under section 9(b)(2) of the Strategic and Critical Materials 
     Stock Piling Act (50 U.S.C. 98h).
     The House amendment contained a similar provision (sec. 
         3301).
       The Senate recedes with an amendment that would authorize 
     $71.0 million.
     Increased receipts under prior disposal authority (sec. 3302)
       The Senate amendment contained a provision (sec. 3402) that 
     would increase, by $30.0 million, the amount of revenues that 
     could be achieved through the sale of unneeded materials from 
     the national defense stockpile.
       The House bill contained no similar provision.
       The House recedes with an amendment that would increase, by 
     $130.0 million, the amount of revenues that could be achieved 
     through the sale of unneeded materials from the national 
     defense stockpile.
     Disposal of titanium (sec. 3303)
       The House bill contained a provision (sec. 3302) that would 
     authorize the Secretary of Defense to make available to the 
     military services the titanium sponge in the National Defense 
     Stockpile for use as government furnished material in the 
     production of military equipment.
       The Senate amendment contained a provision (sec. 3403) that 
     would require the sale of all remaining titanium in the 
     National Defense Stockpile within ten years. The initial $6.0 
     million worth of revenues generated from the sale would be 
     used for the construction, dedication, and related activities 
     of the World War II Memorial, and the remainder used to 
     defray the costs of health care benefit improvements for 
     retired military personnel.
       The House recedes with an amendment that would require the 
     sale of $48.0 million of titanium in the National Defense 
     Stockpile within ten years. The initial $6.0 million worth of 
     revenues generated from the sale would be used for the 
     construction, dedication, and related activities of the World 
     War II Memorial, and the remainder to be deposited in the 
     General Fund of the Treasury.
       The conferees believe that with over 1,000 World War II 
     veterans dying each year, it is important to finish 
     construction and dedication of the World War II Memorial as 
     soon as possible in order to recognize the men and women who 
     served during that war. The conferees further believe that, 
     although nothing could compensate for the sacrifices that 
     were made by these veterans, this memorial will demonstrate 
     the appreciation of a grateful nation to those who fought to 
     preserve liberty and freedom for all U.S. citizens and 
     millions of others throughout the world.

[[Page 21759]]



                 Title XXXIV--Naval Petroleum Reserves


                     LEGISLATIVE PROVISIONS ADOPTED

     Minimum price of petroleum sold from certain naval petroleum 
         reserves (sec. 3401)
       The Senate amendment contained a provision (sec. 3301) that 
     would repeal the authority for the Secretary of Energy to 
     sell oil from the naval petroleum reserves for less than full 
     market value.
       The House bill contained no similar provision.
       The House recedes.
     Repeal of authority to contract for cooperative or unit plans 
         affecting Naval Petroleum Reserve Numbered 1 (sec. 3402)
       The Senate amendment contained a provision (sec. 3302) that 
     would amend section 7426 of title 10, United States Code, to 
     repeal the requirement for the United States to contract for 
     cooperative or unit plans in the administration of the Naval 
     Petroleum Reserve Numbered 1 at Elk Hills.
       The House amendment contained no similar provision.
       The House recedes with a technical amendment.
     Disposal of Oil Shale Reserve Numbered 2 (sec. 3403)
       The Senate amendment contained a provision (sec. 3303) that 
     would authorize the conveyance of the Naval Oil Shale 
     Reserve-Numbered 2 (NOSR-2), to the Ute Indian Tribe of the 
     Uintah and Ouray Indian Reservation in Utah with the 
     exception of a small parcel to be transferred to the 
     Department of the Interior. The provision would also require 
     the United States to retain a nine percent share of the 
     revenues from the development of any minerals on the land 
     after it is transferred. The provision would further require 
     the environmental remediation and restoration of the uranium 
     mill tailings site in Moab, Utah. The nine percent share of 
     the revenues generated from the mineral development at the 
     NOSR-2 would be available for the cleanup of the tailings 
     site together with any funds specifically appropriated for 
     this purpose.
       The House bill contained no similar provision.
       The House recedes with an amendment that would retain nine 
     percent of the revenues from the mineral development of NOSR-
     2 until such time as the cleanup costs of the government for 
     the tailings site have been recovered. The amendment would 
     further require the Secretary of Energy to enter into an 
     arrangement with the National Academy of Sciences to assist 
     the Secretary of Energy in the preparation of a remediation 
     plan that objectively evaluates the costs, benefits, and 
     risks associated with various remediation alternatives for 
     the cleanup of the tailings site.
       The conferees understand that the remedial plan proposed by 
     the Secretary of Energy will be prepared in accordance with 
     title I of the Uranium Mill Tailings Radiation Control Act of 
     1978 (42 U.S.C., 7901). The conferees expect that as part of 
     the remediation plan, the Secretary of Energy will develop a 
     strategy for transferring the legal responsibilities and 
     title to the Moab site, from the present Moab site Trustee to 
     the Department of Energy, and that the Secretary of Energy 
     will consult with the Trustee and with the beneficiaries of 
     the trust, the Nuclear Regulatory Commission and the State of 
     Utah, in developing the plan for the transition of 
     responsibilities.

                  Title XXXV--Maritime Administration


                     LEGISLATIVE PROVISIONS ADOPTED

     Authorization of appropriations for fiscal year 2001 (sec. 
         3501)
       The budget request included $86.4 million for the Maritime 
     Administration.
       The House bill contained a provision (sec. 3401) that would 
     authorize an increase of $61.9 million for the Maritime 
     Administration. Of the funds authorized, $94.2 million would 
     be for operations and training programs, $50.0 million would 
     be for the cost as defined in section 502 of the Federal 
     Credit Reform Act of 1990, of loan guarantees authorized by 
     title XI of the Merchant Marine Act, 1936, as amended (46 
     App. U.S.C. 1271 et seq.), and $4.2 million would be for 
     administrative expenses related to providing those loan 
     guarantees.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     $94.3 million for operations and training programs, $50.0 
     million for the cost as defined in section 502 of the Federal 
     Credit Reform Act of 1990, of loan guarantees authorized by 
     title XI of the Merchant Marine Act, 1936, as amended (46 
     App. U.S.C. 1271 et seq.), and $4.2 million for 
     administrative expenses related to providing those loan 
     guarantees.
     Scrapping of National Defense Reserve Fleet vessels (sec. 
         3502)
       The House bill contained a provision (sec. 3402) that would 
     amend section 6(c)(1)(A) of the National Maritime Heritage 
     Act of 1994 (16 U.S.C. 5405(c)(1)(A)) to authorize an 
     extension of the period for disposal of obsolete vessels in 
     the National Defense Reserve Fleet (NDRF). The provision 
     would also direct that the obsolete vessels be scrapped 
     outside the United States to the maximum extent possible.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the requirement to maximize financial returns on the sale of 
     its obsolete vessels, as mandated by section 6(c)(1) of the 
     National Maritime Heritage Act of 1994 (16 U.S.C. 
     5405(c)(1)). Under this provision, the Secretary of 
     Transportation would only proceed with the scrapping of the 
     NDRF vessels listed in the provision, and no others, until 
     the report on the scrapping program has been transmitted to 
     the appropriate congressional committees.
       The provision would also direct the Secretary of 
     Transportation, in consultation with the Secretary of the 
     Navy and the Administrator of the Environmental Protection 
     Agency, to develop a program within six months of the 
     enactment of this Act to scrap obsolete NDRF vessels. The 
     Secretary of Transportation would then have to submit a 
     report to the Congress that describes the program. The 
     conferees direct the Secretary of Transportation, based on 
     concurrence of the Secretary of the Navy, to include in that 
     report a description of how the Maritime Administration 
     proposes to fund the disposal of obsolete NDRF vessels in the 
     future years. An additional report on the progress of 
     scrapping obsolete NDRF vessels would be required one year 
     after the date of the enactment of this Act, and every six 
     months thereafter.
       In the selection of qualified foreign or domestic scrapping 
     facilities, the provision would require a best value 
     determination, consistent with the Federal Acquisition 
     Regulations (FAR), including the provisions relevant to past 
     performance, and taking into consideration the ability of 
     facilities to scrap vessels: (1) at least cost to the Federal 
     Government; (2) in a timely manner; (3) giving consideration 
     to worker safety and the environment; and (4) in a manner 
     that minimizes the geographic distance that a vessel must be 
     towed when towing a vessel poses a serious threat to the 
     environment. The provision would also require the President 
     to make a recommendation to the Congress regarding whether it 
     is necessary to amend the Toxic Substances Control Act (15 
     U.S.C. 2601 et seq.) or any other environmental statute or 
     regulatory requirement relevant to the disposal of vessels 
     described in section 6(c)(2) of the National Maritime 
     Heritage Act of 1994 (16 U.S.C. 5405(c)(2)) and to recommend 
     any proposed statutory or regulatory changes.
       The conferees direct the administration, in the course of 
     preparing the President's recommendation to Congress, to 
     address directly the issues that impede the disposal of 
     aging, obsolete NDRF vessels. The conferees believe that the 
     public interest is not well served by continued inaction in 
     this matter. Close cooperation by the Secretary of 
     Transportation, the Secretary of the Navy, and the 
     Administrator of the Environmental Protection Agency will be 
     critical in developing a successful ship disposal program 
     that prevents these vessels from becoming a serious threat to 
     the environment.
     Authority to convey National Defense Reserve Fleet vessel, 
         Glacier (sec. 3503)
       The House bill contained a provision (sec. 3403) that would 
     authorize the Secretary of Transportation to convey, at no 
     cost to the government, a surplus National Defense Reserve 
     Fleet vessel, to the Glacier Society for use as a museum.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Maritime intermodal research (sec. 3504)
       The conferees agree to include a provision that would 
     authorize the Secretary of Transportation to make grants to 
     National Maritime Enhancement Institutes, as if they were 
     University Transportation Centers, for maritime and maritime 
     intermodal research.
     Maritime research and technology development (sec. 3505)
       The conferees agree to include a provision that would 
     authorize $100,000 for the Secretary of Transportation to 
     provide a report on the status of maritime research and 
     development and to include in the report information on prior 
     year funding for research and development on various modes of 
     transportation.
     Reporting of administered and oversight funds (sec. 3506)
       The conferees agree to include a provision that would 
     require the Maritime Administration to report to Congress the 
     amount, source, and intended use of funds (other than funds 
     appropriated for the Maritime Administration or the Secretary 
     of Transportation for use by the Maritime Administration) 
     administered by the Maritime Administration.
       The conferees note that it is not the practice of the 
     defense authorization conference to adopt provisions relating 
     to the Maritime Administration that have not passed either 
     the House of Representatives or the Senate. The conferees 
     understand that provisions relating to the authorization of 
     the Maritime Administration and national security aspects of 
     the Merchant Marine, including financial assistance for the 
     construction and operation of vessels, maintenance of the 
     U.S.

[[Page 21760]]

     shipbuilding and ship repair industrial base, cabotage, and 
     cargo preference, will normally be considered by committees 
     of conference for inclusion in future conference reports if 
     these provisions have first been passed in either the House 
     of Representatives or the Senate.


                   LEGISLATIVE PROVISIONS NOT ADOPTED

     Authority to convey offshore drill rig Ocean Star
       The House bill contained a provision (sec. 3404) that would 
     authorize the Secretary of Transportation to convey the 
     offshore drill, Ocean Star, to the Offshore Rig Museum, Inc., 
     a non-profit corporation.
       The Senate amendment contained no similar provision.
       The House recedes.

Title XXXVI--Energy Employees Occupational Illness Compensation Program

       The Senate amendment contained provisions (secs. 3501-3544) 
     that would enact the Energy Employees Occupational Illness 
     Compensation Act of 2000. The provision would establish a 
     compensation program for Department of Energy (DOE) employees 
     and DOE contractor employees who were injured due to exposure 
     to radiation, beryllium, or silica while working at a DOE 
     defense nuclear facility or nuclear weapons testing site.
       The House bill contained no similar title.
       The House recedes with an amendment that would establish 
     the Energy Employees Occupational Illness Compensation 
     Program.


                     LEGISLATIVE PROVISIONS ADOPTED

     Short title (sec. 3601)
       The conferees agree to include a provision that would 
     designate the short title of the title as the Energy 
     Employees Occupational Illness Compensation Act of 2000.
     Findings; sense of Congress (sec. 3602)
       The conferees agree to include a provision that would 
     establish several findings and express the sense of Congress 
     regarding personnel of the Department of Energy and its 
     contractors and vendors who have sustained illnesses due to 
     exposure to radiation, beryllium, and silica as a result of 
     their employment with DOE.

Subtitle A--Establishment of Compensation Program and Compensation Fund

     Establishment of Energy Employees Occupational Illness 
         Compensation Program (sec. 3611)
       The conferees agree to include a provision that would 
     establish the Energy Employees Occupational Illness 
     Compensation Program. The program would provide timely, 
     uniform, and adequate compensation to certain DOE, DOE 
     contractor, and DOE vendor employees who were injured from 
     exposure to radiation, beryllium, or silica while working in 
     DOE nuclear weapons-related programs and, where applicable, 
     their survivors.
     Establishment of Energy Employees Occupational Illness 
         Compensation Fund (sec. 3612)
       The conferees agree to include a provision that would 
     establish the Energy Employees Occupational Illness 
     Compensation Fund. The provision would also require the 
     Secretary of the Treasury to transfer to the Fund from the 
     general fund of the Treasury the amounts necessary to pay 
     compensation under this title once amounts appropriated for 
     the Fund have been exhausted. Such payments would be 
     considered as mandatory funding without requiring any 
     additional authorization or appropriation. The provision 
     would further require that no administrative costs for 
     carrying out the program be paid out of the Fund.
     Legislative proposal (sec. 3613)
       The conferees agree to include a provision that would 
     require the President to submit, not later than March 15, 
     2001, a legislative proposal to implement the compensation 
     program under this title. The proposal would include, at a 
     minimum, the following elements: (1) the types of 
     compensation to be provided to covered employees; (2) any 
     adjustments or modifications necessary to administer the 
     program; (3) whether to expand the program to include other 
     illnesses associated with exposure to toxic substances; and 
     (4) whether to expand the special exposure cohort to include 
     new classes of employees.
     Authorization of appropriations (sec. 3614)
       The conferees agree to include a provision that would 
     authorize $25.0 million for the purposes of carrying out the 
     administrative requirements of this title and $250.0 million 
     for the Energy Employees Occupational Illness Compensation 
     Fund.

                   Subtitle B--Program Administration

     Definitions for program administration (sec. 3621)
       The conferees agree to include a provision that would 
     define the terms and criteria used in this title.
     Expansion of list of beryllium vendors (sec. 3622)
       The conferees agree to include a provision that would 
     authorize the President, in consultation with the Secretary 
     of Energy, to designate additional beryllium vendors. Such 
     designations would be required to be made not later than 
     December 31, 2002.
     Exposure in the performance of duty (sec. 3623)
       The conferees agree to include a provision that would 
     specify the criteria for determining whether a covered 
     beryllium employee or a covered employee with cancer was 
     exposed in the performance of duty.
       The conferees prohibit the designation of the Department of 
     Energy as the lead agency for establishing regulations for 
     dose reconstruction under this provision. The conferees 
     expect the Secretary to provide information in the possession 
     of DOE and its contractors related to radiation exposures, 
     but direct the President to select another agency to 
     establish regulations required by this provision.
     Advisory Board on Radiation and Worker Health (sec. 3624)
       The conferees agree to include a provision that would 
     establish the Advisory Board on Radiation and Worker Health. 
     The President would appoint members of the Board in 
     consultation with organizations with expertise on worker 
     health issues. The Board would advise the President on 
     matters relating to this title, including dose reconstruction 
     and eligibility guidelines for radiation compensation.
     Responsibilities of Secretary of Health and Human Services 
         (sec. 3625)
       The conferees agree to include a provision that would 
     require the Secretary of Health and Human Services to carry 
     out the Secretary's responsibilities under this title with 
     the assistance of the National Institute of Occupational 
     Safety and Health.
     Designation of additional members of Special Exposure Cohort 
         (sec. 3626)
       The conferees agree to include a provision that would 
     establish a process by which the President, upon 
     recommendation of the Advisory Board on Radiation and Worker 
     Health, could designate additional classes of employees at 
     DOE facilities as members of the special exposure cohort 180 
     days after the President submits a report to Congress that 
     would identify the class and criteria that have been used to 
     justify their inclusion in the cohort. A class of employees 
     would be permitted to be added if the President determines 
     that: (1) it is not feasible to estimate with sufficient 
     accuracy the radiation dose that the class received; and (2) 
     there is a reasonable likelihood that the radiation dose may 
     have endangered the health of members of the class.
     Separate treatment of chronic silicosis (sec. 3627)
       The conferees agree to include a provision that would 
     express the sense of Congress that further determination by 
     the President is appropriate before employees who were 
     exposed to silica are included in a comprehensive 
     compensation program. The provision would include DOE 
     employees who are diagnosed with silicosis in the program 
     unless the President submits a certification to Congress 
     within 180 days after the enactment of this Act that there is 
     an insufficient basis to include such employees in the 
     program. An employee would be included in the program only if 
     the employee worked at a covered DOE facility for an 
     aggregate of 250 work days.
     Compensation and benefits to be provided (sec. 3628)
       The conferees agree to include a provision that would 
     establish an entitlement for compensation for covered 
     employees, or the survivor of a covered employee if the 
     employee is deceased, consisting of a $150,000 lump sum 
     payment. In addition, the provision would establish, for a 
     covered employee, an entitlement for reimbursement of 
     prospective medical expenses related to a covered illness. 
     Employees with beryllium sensitivity would receive medical 
     monitoring only. All such compensation would be paid from the 
     Energy Employees Occupational Illness Compensation Fund. The 
     effective date of this provision would be July 31, 2001, 
     unless the Congress provides otherwise in an Act enacted 
     before that date.
     Medical benefits (sec. 3629)
       The conferees agree to include a provision that would 
     define those medical services, appliances, supplies, and 
     other related benefits to be provided.
     Separate treatment of certain uranium employees (sec. 3630)
       The conferees agree to include a provision that would 
     establish an additional entitlement for certain uranium 
     miners, millers, and transporters, or the survivor of any 
     such employee if the employee is deceased, who receives, or 
     has received, payment of a claim under the Radiation Exposure 
     Compensation Act (42 U.S.C. 2210 note). The additional 
     payment would consist of: (1) a $50,000 lump sum payment; and 
     (2) reimbursement of prospective medical expenses related to 
     the covered illness. All such compensation would be paid from 
     the Energy Employees Occupational Illness Compensation Fund. 
     The effective date of this provision would be July 31, 2001, 
     unless the Congress provides otherwise in an Act enacted 
     before that date. The provision would further require the 
     President to establish procedures to identify and notify each 
     eligible individual under this section.
     Assistance for claimants and potential claimants (sec. 3631)
       The conferees agree to include a provision that would 
     require the President to provide to all claimants under this 
     title the following: (1) assistance in securing medical 
     testing and diagnostic services for covered illnesses; and 
     (2) assistance in preparing claims. The President would also 
     be required

[[Page 21761]]

     to take appropriate action to inform potential claimants of 
     the availability of compensation under this title.

Subtitle C--Treatment, Coordination, and Forfeiture of Compensation and 
                                Benefits

     Offset for certain payments (sec. 3641)
       The conferees agree to include a provision that would 
     require any payment of compensation under this title to be 
     offset by the amount of any other award or settlement of a 
     claim, other than workers' compensation, that is based on the 
     same injury.
     Subrogation of the United States (sec. 3642)
       The conferees agree to include a provision that would 
     subrogate any payment of compensation under this title to a 
     right or claim of the covered employee against any other 
     party for the same injury.
     Payment in full settlement of claims (sec. 3643)
       The conferees agree to include a provision that would 
     specify that acceptance of payment under this title would be 
     in full settlement of all claims against the United States, a 
     DOE contractor or subcontractor, beryllium vendor, or atomic 
     weapons employer for the covered illness.
     Exclusivity of remedy against the United States and against 
         contractors and subcontractors (sec. 3644)
       The conferees agree to include a provision that would 
     specify the liabilities of the United States for future 
     claims related to covered illnesses.
     Election of remedy for beryllium employees and atomic weapons 
         employees (sec. 3645)
       The conferees agree to include a provision that would allow 
     covered beryllium and atomic weapons employees to elect a 
     remedy for a covered illness. A covered employee could elect 
     to file suit or to file a claim under this provision, if the 
     election is made not later than the later of: (1) the date 
     that is 30 months after the date of enactment of this Act; or 
     (2) 30 months after the date the employee first becomes aware 
     of an illness that may have been sustained in the performance 
     of duty. The provision would provide that any currently filed 
     tort case must be dismissed by December 31, 2003, in order 
     for an individual to be eligible for compensation under this 
     title.
     Certification of treatment of payments under other laws (sec. 
         3646)
       The conferees agree to include a provision that would 
     specify that compensation or benefits provided to an 
     individual under the compensation program would be tax exempt 
     and would not affect the eligibility of that individual for 
     federal assistance programs.
     Claims not assignable or transferrable; choice of remedies 
         (sec. 3647)
       The conferees agree to include a provision that would 
     specify that claims under the compensation program are not 
     assignable or transferable. The provision would also specify 
     that no individual may receive more than one payment of 
     compensation under the program. This would not preclude 
     payment of both lump sum and medical benefits to a covered 
     individual.
     Attorney fees (sec. 3648)
       The conferees agree to include a provision that would limit 
     the payment of fees to an attorney of a claimant to two 
     percent for filing of an initial claim.
     Certain claims not affected by awards of damages (sec. 3649)
       The conferees agree to include a provision that would 
     ensure that a payment under the compensation program shall 
     not be considered as any form of compensation or 
     reimbursement for a loss for purposes of imposing liability 
     on any individual receiving such payment, on the basis of 
     such receipt, to repay any insurance carrier for insurance 
     payments, or to repay any person on account of workers' 
     compensation payments. A payment under the compensation 
     program shall not affect any claim against an insurance 
     carrier with respect to insurance or against any person with 
     respect to worker's compensation.
     Forfeiture of benefits by convicted felons (sec. 3650)
       The conferees agree to include a provision that would 
     require forfeiture of entitlement to any compensation or 
     benefit under the compensation program by any individual 
     convicted of a violation of section 1920 of title 18, United 
     States Code, or any other federal or state criminal statute 
     relating to fraud in the application for or receipt of any 
     benefit under this program or any federal or state workers' 
     compensation law.
     Coordination with other Federal radiation compensation laws 
         (sec. 3651)
       The conferees agree to include a provision that would 
     prevent an individual from receiving compensation or benefits 
     under the compensation program for cancer and also receive 
     compensation under the Radiation Exposure Compensation Act 
     (section 2210 of title 42, United States Code) or section 
     1112(c) of title 38, United States Code, except as provided 
     in this title.

   Subtitle D--Assistance in State Workers' Compensation Proceedings

     Agreements with States (sec. 3661)
       The conferees agree to include a provision that would 
     authorize the Secretary of Energy to enter into agreements 
     with states to assist DOE contractor employees in filing a 
     claim under the appropriate state workers' compensation 
     system for illnesses related to exposure to other toxic 
     chemicals. The provision would also establish procedures for 
     such DOE assistance.
       The Secretary of Energy would review and submit 
     applications to an independent physician panel appointed by 
     the Secretary of Health and Human Services. The panel would 
     determine whether the illness or death that is the subject of 
     the application arose as a result of exposure to a toxic 
     substance at a DOE facility. The Secretary would be required 
     to accept the panel's determination in the absence of 
     significant evidence to the contrary. If the Secretary makes 
     a positive determination, the Secretary would be required to 
     assist the applicant in filing a claim under the appropriate 
     state workers' compensation system. The Secretary would not 
     contest the claim and would direct any relevant contractor 
     not to contest the claim. The contractor's cost of fighting 
     the claim would not be an allowable cost under a DOE 
     contract.
       Not later than February 1, 2002, the Comptroller General 
     would be required to submit a report to Congress that would 
     evaluate the Department's implementation of this provision 
     and effectiveness in achieving compensation for employees 
     with occupational illnesses.
     Joel Hefley,
     Jim Saxton,
     Steve Buyer,
     Tillie K. Fowler,
     John M. McHugh,
     James M. Talent,
     Terry Everett,
     Roscoe G. Bartlett,
     From the Committee on Armed Services, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Floyd Spence,
     Bob Stump,
     Duncan Hunter,
     John R. Kasich,
     James V. Hansen,
     Curt Weldon,
     Howard ``Buck'' McKeon,
     J.C. Watts, Jr.,
     Mac Thornberry,
     John N. Hostettler,
     Saxby Chambliss,
     Ike Skelton,
     Norman Sisisky,
     John Spratt,
     Solomon P. Ortiz,
     Owen B. Pickett,
     Lane Evans,
     Gene Taylor,
     Neil Abercrombie,
     Martin T. Meehan,
     Robert A. Underwood,
     Thomas Allen,
     Vic Snyder,
     James H. Maloney,
     Mike McIntyre,
     Ellen O. Tauscher,
     Mike Thompson,
     Provided that Mr. Kuykendall is appointed in lieu of Mr. 
     Kasich for consideration of section 2863 of the House bill, 
     and section 2862 of the Senate amendment, and modifications 
     committed to conference:
     Steven T. Kuykendall,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Porter J. Goss,
     Jerry Lewis,
     Julian C. Dixon,
     From the Committee on Commerce, for consideration of sections 
     601, 725, and 1501 of the House bill, and sections 342, 601, 
     618, 701, 1073, 1402, 2812, 3131, 3133, 3134, 3138, 3152, 
     3154, 3155, 3167-3169, 3171, 3201, and 3301-3303 of the 
     Senate amendment, and modifications committed to conference:
     Tom Bliley,
     Joe Barton,
     John D. Dingell,
     Provided that Mr. Bilirakis is appointed in lieu of Mr. 
     Barton of Texas for consideration of sections 601 and 725 of 
     the House bill, and sections 601, 618, 701, and 1073 of the 
     Senate amendment, and modifications committed to conference:
     Mike Bilirakis,
     Provided that Mr. Oxley is appointed in lieu of Mr. Barton of 
     Texas for consideration of section 1501 of the House bill, 
     and sections 342 and 2812 of the Senate amendment, and 
     modifications committed to conference:
     Michael G. Oxley,
     From the Committee on Education and the Workforce, for 
     consideration of sections 341, 342, 504, and 1106 of the 
     House bill, and sections 311, 379, 553, 669, 1053, and title 
     XXXV of the Senate amendment, and modifications committed to 
     conference:
     Bill Goodling,
     Van Hilleary,
     Patsy T. Mink,
     From the Committee on Government Reform, for consideration of 
     sections 518, 651, 801, 906, 1101-1104, 1106, 1107, and 3137 
     of the House bill, and sections 643, 651, 801, 806, 810, 814-
     816, 1010A, 1044, 1045, 1057, 1063, 1069, 1073, 1101, 1102, 
     1104, and 1106-1118, title XIV, and sections 2871, 2881, 
     3155, and 3171 of the Senate amendment, and modifications 
     committed to conference:
     Dan Burton,

[[Page 21762]]

     Joe Scarborough,
     Henry A. Waxman,
     Provided that Mr. Horn is appointed in lieu of Mr. 
     Scarborough for consideration of section 801 of the House 
     bill, and sections 801, 806, 810, 814-816, 1010A, 1044, 1045, 
     1057, 1063, and 1101, title XIV, and sections 2871 and 2881 
     of the Senate amendment, and modifications committed to 
     conference:
     Stephen Horn,
     Provided that Mr. McHugh is appointed in lieu of Mr. 
     Scarborough for consideration of section 1073 of the Senate 
     amendment, and modifications committed to conference:
     John M. McHugh,
     From the Committee on House Administration, for consideration 
     of sections 561-563 of the Senate amendment, and 
     modifications committed to conference:
     William M. Thomas,
     John Boehner,
     Steny H. Hoyer,
     From the Committee on International Relations, for 
     consideration of sections 1201, 1205, 1209, and 1210, title 
     XIII, and section 3136 of the House bill, and sections, 1011, 
     1201-1203, 1206, 1208, 1209, 1212, 1214, 3178, and 3198 of 
     the Senate amendment, and modifications committed to 
     conference:
     Bill Goodling,
     From the Committee on the Judiciary, for consideration of 
     sections 543 and 906 of the House bill, and sections 506, 
     645, 663, 668, 909, 1068, and 1106, title XV, and title XXXV 
     of the Senate amendment, and modifications committed to 
     conference:
     Henry Hyde,
     Charles T. Canady,
     From the Committee on Resources, for consideration of 
     sections 312, 601, 1501, 2853, 2883, and 3402 of the House 
     bill, and sections 601 and 1059, title XIII, and sections 
     2871, 2893, and 3303 of the Senate amendment, and 
     modifications committed to conference:
     Dan Young,
     Billy Tauzin,
     From the Committee on Transportation and Infrastructure, for 
     consideration of sections 601, 2839, and 2881 of the House 
     bill, and sections 502, 601, and 1072 of the Senate 
     amendment, and modifications committed to conference:
     Bud Shuster,
     Wayne T. Gilchrest,
     Brian Baird,
     Provided that Mr. Pascrell is appointed in lieu of Mr. Baird 
     for consideration of section 1072 of the Senate amendment, 
     and modifications committed to conference:
     Bill Pascrell, Jr.,
     From the Committee on Veterans' Affairs, for consideration of 
     sections 535, 738, and 2831 of the House bill, and sections 
     561-563, 648, 664-666, 671, 672, 682-684, 721, 722, and 1067 
     of the Senate amendment, and modifications committed to 
     conference:
     Michael Bilirakis,
     Jack Quinn,
     Corrine Brown,
     From the Committee on Ways and Means, for consideration of 
     section 725 of the House bill, and section 701 of the Senate 
     amendment, and modifications committed to conference:
     William M. Thomas,
                                Managers on the Part of the House.

     John W. Warner,
     Strom Thurmond,
     John McCain,
     Bob Smith,
     James Inhofe,
     Rick Santorum,
     Olympia J. Snowe,
     Pat Roberts,
     Wayne Allard,
     Tim Hutchinson,
     Jeff Sessions,
     Carl Levin,
     Edward Kennedy,
     Jeff Bingaman,
     Robert C. Byrd,
     Chuck Robb,
     Joe Lieberman,
     Max Cleland,
     Mary L. Landrieu,
     Jack Reed,
     Managers on the Part of the Senate.

                          ____________________